Episode Transcript
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Speaker 1 (00:00):
For some pless I'm not going to hide behind the
talk about it.
Speaker 2 (00:02):
It's all programmed to create chaos.
Speaker 1 (00:05):
Fifty five kr tonight.
Speaker 3 (00:13):
Some strategies to help keep you sane when you're stressing
about money.
Speaker 4 (00:18):
Plus, we are answering a lot of your questions and
much more. You're listening to simply money presented by all
Worth Financially, I mean you Wagner along with steve'sproback in
for Steve Ruby.
Speaker 3 (00:28):
Okay, I don't think I need to tell anyone this.
Speaker 4 (00:30):
That money can be a major source of stress in
your dress.
Speaker 2 (00:34):
Stress over money, I know? Ever experienced that?
Speaker 3 (00:38):
Oh it can reck It's.
Speaker 2 (00:40):
More like stressover lack of money.
Speaker 4 (00:42):
Yeah, yeah, well, and I think you can feel like
you're all set with money and then something happens, right,
someone loses a job, an unexpected medical expense.
Speaker 3 (00:50):
Comes, and how are we going to pay for this bill?
You know, whatever it is. We were if something from
my son's school.
Speaker 4 (00:56):
Over the weekend, my husband was talking to someone who
had been laid off while ago, and he was just
talking about how stressful it was to find a new job.
Speaker 3 (01:03):
And he was saying, this stress on our marriage, right
has just.
Speaker 4 (01:07):
Been so hard and so for anyone who was done,
I can't imagine anyone getting to the age of thirty, forty,
fifty sixty without having some kind of money stress at
some point in your life, right, you know, how.
Speaker 3 (01:20):
Do you keep things in check? How do you keep
things under control the best that you can?
Speaker 2 (01:25):
Well, you know you don't always, is the short answer.
And as I've gotten to know you over the years,
you grew up in a very different environment than I did.
Your your parents. You weren't wealthy, no question about that,
but your parents' money was openly discussed. Yeah, and it
was a tool that your parents taught you from an
(01:46):
early age what to do, what not to do. My
parents were always broke, and you know, it was always
a big stress point over you know, what bill can
we pay? Which ones do we have to put off
this month? I don't think they ever had a saving account.
And there's a lot of people, I think out there
that can relate to this. Yeah, it's a problem. And
you know, we we take a look at a lot
(02:08):
of surveys, we get a lot of information and data points,
and it's no surprise to me that, according to bankrate
dot com, half of US adults said money has a
very negative impact on their mental health. I get that completely.
Speaker 4 (02:24):
You know, what I think is really interesting about that
those deve is that so many people get used to
whatever that feels like, that's stress, that they're almost afraid
to do something about it to get the stress out
of their lives, like they would be too painful of
the process of digging out of that credit card debt
or whatever that looks like.
Speaker 3 (02:41):
So I think first it's like, hey, acknowledging the situation.
Speaker 4 (02:44):
That you're in in the way that it makes you feel,
and then deciding I'm going to take some steps to
try and get this under control.
Speaker 2 (02:52):
Well, and okay, what are those steps? I mean, the
sound basic. We can talk about it. We'll just build
an emergency fund. If you're not paying your bills, you
don't have the ability to build up an emergency fund.
And if you're trying to pay off credit card debt.
The reason you may have gotten into credit card debt
is because your income is not matching your expenses. And
(03:14):
maybe your expenses are legitimate. Maybe you're not going out
to dinner every night of the week. Maybe it's because
you need a breaks on the car. You didn't save
up money for that, and oh my goodness, it won't
be paid off this month because I threw it on
visa and next month is looking pretty diceal. So it
is a big stress issue for a lot of people.
(03:35):
And one of the other things bankery dot Com came
up with is sixty percent more than half of the
people out there that we're surveying, they're having trouble just
meeting day to day expenses, I mean, just normal stuff,
never mind the surprises. How do you build up an
emergency fund if you can't meet the normal expenses, never
mind the surprises.
Speaker 4 (03:56):
This is one of the first conversations I have with
someone when they walk into my office. Was talking to
someone yesterday who was talking about the fact that she
was pulling out of her driveway and got an unexpected
call from her CPA telling her that she owed a
major amount of money, and she was actually saying that
it was difficult for her to even figure out how
(04:17):
to put the car and park. It was so overwhelming
this news from out of nowhere. And part of the
problem and why it was overwhelming is because that emergency
fund wasn't there. So when you get this call, it's like,
what am I going to do. Where am I going
to get this money? So agreed, emergency fund is the
first step that you take in order to combat some
of this stress, right, It can reduce.
Speaker 2 (04:40):
A lot of that stress once you have I'll argue
that a little bit. I think if you're carrying a
balance on your credit card, that's step number one, because
you can have a ten thousand dollars emergency fund. But
if you've got ten thousand dollars and balances on one
or more credit cards, you don't have an emergency fund.
And I have a family member that years ago I
(05:02):
helped threw an issue like this, and a lot of
people that have balances built up on credit cards, they're
in denial of the total amount because they can't wrap
their heads around I really owe fifteen thousand dollars on
this credit card or ten thousand dollars. And you know,
if you're just looking at well, I can make that
(05:22):
minimum payment. I can meet the forty dollars minimum payment
or the eighty dollars minimum payment. I'm getting fined just by.
And if I meet the minimum payment, I can go
ahead and put some money in savings and do what
these people on the radio are telling me. About No,
you cannot deny how much credit card dbate you've got,
And in my opinion, step number one is put a
(05:42):
plan together to attack your credit card debt because if
you keep doing the same thing time after time, the
outcome is not going to change.
Speaker 3 (05:50):
Yeah, I can get behind that.
Speaker 4 (05:51):
You're listening to Simply Money presented by all Worth Financial
I Memi Wagner along with Steevesprovac.
Speaker 3 (05:55):
This is the stress show.
Speaker 2 (05:57):
Feeling stress from talking about it's.
Speaker 3 (06:00):
What can you control?
Speaker 4 (06:02):
You can't control the inevitable things that they come from
left field, that you weren't expecting, that are costly, but you.
Speaker 3 (06:07):
Can control how you deal with them.
Speaker 4 (06:10):
In one of those things is yeah, don't have that
overwhelming credit cards that have that emergency fund in place.
And then I'm gonna tell you the next step is
you walk up up to the mirror and you take
a good look at yourself and you ask, how do
I deal with spending and saving? Are you someone who
when you get stressed goes shopping buy stuff online that
you don't need? Do you have that kind of yolo?
(06:31):
You only live once? You know thought, but you know
that's fun and all the vacations and all the concerts
and all the things you do now, but that yolo
self that's living right now, your future self, You're gonna
hate it, you know, because there's not going to be
any money there that you've saved.
Speaker 3 (06:46):
And so figuring out I love the fifty to thirty
twenty role.
Speaker 4 (06:50):
This is, you know, the money that's coming in, fifty
percent goes to your needs, right, This is you know,
your your rent or your mortgage and your groceries.
Speaker 1 (07:00):
Yes, yes, yes, you need to do this. Yeah.
Speaker 4 (07:02):
And the next thing is the twenty percent of this
is saving. Man, If you are saving twenty percent from
the time you're graduating from college and get that first
job until you retire.
Speaker 3 (07:12):
I mean, you don't ever have to listen to this
show because you're right, you're.
Speaker 4 (07:16):
Never going to need any of this and you're going
to be smooth sailing every step of the way. And
then thirty percent of that is the ones, the fun stuff.
And I'm going to tell you this, sometimes the needs
rite during inflation they become more than fifty percent, or
sometimes that the savings, right, but you can't give on
those two things that thirty percent goes once.
Speaker 3 (07:36):
That's where the give room is.
Speaker 2 (07:38):
I'm glad you brought up inflation, because if you do shopping,
which I'm not allowed to do for obvious, or you're
banned from.
Speaker 3 (07:45):
The grocery store, buyer wife, I don't stick to the list.
Speaker 2 (07:48):
My wife has been sick the last couple of days,
so I've gone to Kroger or myself unsupervised. Not pretty
pretty last twenty feet that's out there for me.
Speaker 3 (08:01):
You have a freezer full of Do you have a
freezer full of ice cream right now? And a pantry
full of candy bars?
Speaker 2 (08:07):
How do you have a key to the house?
Speaker 5 (08:08):
Oh?
Speaker 3 (08:09):
I know you I know, you know.
Speaker 2 (08:11):
The reason I want to talk about inflation is this
same study said, it's not just okay, you know, let's
let's take a look at where the stress is. You know,
it is it? This area? Is it? You know? Paying
for rent? Inflation is the number one concern of consumers
right now in whether or not they're stressed out by
(08:32):
their ability or inability to pay the bills by more
than two times. Any other concern, Yeah, interest rates, Yeah,
that's a concern keeping my job keeping study income, Yeah,
that's a concern. Inflation number one because the people that
are just getting by and again I grew up this way.
The people that are just getting by all of a sudden,
they're paying more for staples, for for you know, just food,
(08:56):
and their bill that used to be fifty dollars is
eighty dollars And they weren't saving thirty before prices went up,
so that's thirty dollars they can't spend somewhere else, maybe
on gas or something else that they need to do.
So inflation is really crushing the middle and lower income
class out there.
Speaker 4 (09:14):
And I think a lot of people too think, okay,
I know my risk tolerance, right, But you often figure
this out when markets are up, and it's like, oh,
give me all the stock exposure in the world, right, Nah,
I ask yourself, Okay, how am I going to feel
when markets are down ten percent? How did I do
during the pandemic, when markets were in a free fall
in early twenty twenty, How did I deal with that?
And you know, it's interesting someone came into my office
(09:36):
last week who said, you know, I've dialed back a
lot lately my risk exposure.
Speaker 3 (09:43):
But when I looked at the totality.
Speaker 4 (09:44):
And in someone who has money in seven different places, right,
when I put it all together, it wasn't the risk
tolerance at all that he thought he had. And so
I think that's something that that you've got to think
about there is not only what is my risk tolerance,
but really looking at that portfolio and saying is that
adequately reflect that well?
Speaker 2 (10:04):
And you're talking about putting together a strategy for investing
in a panic. I mean, if you are approaching retirement
and you've got nowhere near the amount saved up that
you want or feel you should have saved up, you
might do something rash and take on more risks than
your care. Hitting the lottery is not a financial plan.
(10:25):
You know, you've got to watch yourself out there. And Okay,
if you're getting up and closer to retirement and you're
not where you want to be, well dial expectations down
of how you're going to live in retirement. But you
know you always want to invest within your risk Alish,
I'm going to add one more thing amy an umbrella policy,
and I'm not talking about for you know, rain, but
(10:48):
you know we're the biggest concern as you start to
get your financial act together, is something coming out of
the blue and just wiping out what you've been working
on and that could be a guy that you hired
to trim some limbs that falls out of the tree
and sues you, and it turns out he wasn't bonded
like he told you, he wasn't insured like he told you.
(11:09):
And now all of a sudden that you're getting a
summons in the mail and you're worried about are they
going to take my houseware? Are they going to do this? Yeah,
for less than four hundred dollars a year, you can
get for most people, you can get a million dollar
umbrella policy, which means, okay, that's the insurance company going
(11:30):
to bat for you, their lawyer is going to bat
for you, and they will pay up to a million dollars.
You can get two million, you can get three million
dollars worth. It's a very, very relatively cheap way to
just take away that last concern of will this wipe
me out if something goes bad. It's a really important
part of any financial plan, and unfortunately a lot of
(11:51):
people have not heard about umbrella policies. You want to
make your insurance agency say hey, do I have an
umbrella policy? How much is it? Do I need it?
And yeah, most likely if you don't have it. They're
going to recommend, yet you probably should and it might
need to be bad as much as your net worth.
Speaker 3 (12:09):
Yeah, it's funny that you bring up the umbrella policy.
Speaker 4 (12:11):
I did an event for women several months ago called
Wine Women in Wealth, and one of my dear friends
came and they are as buttoned up financially as anyone
can be.
Speaker 2 (12:19):
Right.
Speaker 4 (12:20):
They are very open, transparent, They've got clear goals, and
so I thought, well, she's going to come and she
may not learn a thing. The first thing she did
when she got home was purchased an umbrella policy.
Speaker 5 (12:30):
Right.
Speaker 4 (12:30):
I mean, there's neighborhood kids that play on their property
with their son. Anything can go wrong, and it's something
they had never considered. But now that she's aware of that,
you know possibility of something. This is a great way
to protect yourself and talk about cutting down on stress
when something really stressful could come your way.
Speaker 3 (12:46):
This is incredible help with that. Here's the all Worth advice.
Speaker 4 (12:49):
If you want less financial stress, you've got a plan ahead.
It's going to make your financial life a whole lot easier.
Coming up next, something you need to make sure you
are prepared for.
Speaker 3 (12:59):
It's important. We're going to talk about it next.
Speaker 4 (13:02):
You're listening to Simply Money, presented by all Worth Financial
here in fifty five KRC the talk station KARC an
iHeartRadio station.
Speaker 6 (13:09):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 3 (13:29):
You're listening to Simply Money presented by all Worth Financial.
I Meani Wagner along with Steve Sprovak.
Speaker 4 (13:34):
If you can't listen to our show every night, you
don't have to miss a thing.
Speaker 3 (13:37):
We've got a daily podcast for you. It's Simply Money.
Speaker 4 (13:40):
Just search it on the iHeart app or wherever you
find your podcast.
Speaker 3 (13:44):
Coming up at six forty three.
Speaker 4 (13:45):
We got lots of questions from you this week about
roth IRA's for one k's, does it make sense to
retire overseas and a lot more. It's time to ask
the advisor and just a few minutes, you know, I think, honestly,
if there was a theme to the show, Steve, it
would be financial stress and what you can do about it.
I'm actually glad that we're tackling this because on a
day to day basis, it's not what's happening on Wall
(14:08):
Street that makes the most difference in your home.
Speaker 3 (14:10):
It's these kinds of stressors.
Speaker 4 (14:11):
That can really, really kind of tear at the fabric
of your life. And I got to say, one of
those things is, Man, the cost of healthcare when you
are working. I don't think most of us have any
idea how much our employer is paying right for their
part of our health insurance. Oh yeah, but when we
get close to retirement, it's a different ballgame.
Speaker 2 (14:32):
I remember sitting down with some employees at a company
we had a contract with to provide financial help for
and they were complaining because their premiums went up like
ten dollars a month to forty dollars. You know, this
is crazy. You know what's going on around here? Do
you know what the average person pays for health insurance?
(14:54):
I had to go. I retired in December and had
to buy my own health insurance until I hit Medicare,
which next week, and so okay, I found out what
the company was paying, which was about ninety five percent
of the premium, even though I was still paying a
pretty good chunk out of my paycheck. And if I
had kept that going, it would have been under it's
(15:17):
called cobra, where you have the same plan except you
pay the entire cost and your guaranteed acceptance int it.
I wound up moving on to the exchanges and buying privately,
and it was still sixteen hundred dollars a month for
health insurance for this eight month period. I mean, most
people have no clue that's what health insurance costs for
somebody who's not covered by an employer. And guess what,
(15:40):
when you're retired, just because you're on Medicare doesn't mean
oh okay, well I guess everything's covered now. Far from it?
Speaker 4 (15:46):
Well, and I think yeah, And I think for anyone
who knows your story, they could be listening and be like, well,
maybe Steve's insurance would be a little more because he
had a you know, a heart concern, heart issue a
few years ago.
Speaker 3 (15:55):
Oh no, here are the numbers.
Speaker 4 (15:57):
Right Fidelity has done this recent ur and says a
sixty five year old who is retiring today, one person
right can expect to pay out of pocket about one
hundred and sixty five thousand dollars over.
Speaker 3 (16:08):
The course of your retirement.
Speaker 4 (16:10):
For someone who's super healthy, it's like, no, that's not
going to happen to me.
Speaker 3 (16:14):
But who knows what's going to happen.
Speaker 4 (16:15):
Down the road, what kind of proscriptions specialists? And I
think also there's this terrible surprise for a lot of
people of like, wait a second, I thought when I
got to sixty five, Medicare had this right, Like Steve,
you're talking about bridging the gap before you turn sixty five.
By the way, happy early birthday to you turning sixty
five over the.
Speaker 2 (16:35):
Wee gainul Saturday. I'm just trying to get through today.
I'm not so optimistic to say, yeah, I turned sixty
five Saturday. I want to get through today.
Speaker 4 (16:44):
All right, Well, assuming we get there to sixty five
this weekend, you know, Okay, you've made it to that
Medicare age.
Speaker 3 (16:50):
Great, that isn't free. It's still not free.
Speaker 5 (16:54):
No.
Speaker 2 (16:54):
And here's by the way, you mentioned one hundred and
sixty five thousand dollars over the course of your life
if you retired sixty five, Well guess what for a
married couple and multiplied by two three hundred and thirty
thousand dollars, how are you feeling about that half a
million dollar four oh one k? Now if three hundred
and thirty thousand is going towards just health costs, here's
(17:16):
a breakdown. I mean, you're probably going to draw Social
Security when you retire. Well. Medicare costs this year about
one hundred and seventy five bucks a month. Okay. That
means the twenty five hundred dollars you were going to
get from Social Security isn't twenty five hundred, it's twenty
three to twenty five because that one seventy five comes
directly out of Social Security before you get that money.
(17:38):
Part V. Most people take a drug benefit, not MUNCH,
but there's a fifty five dollars cost there. And if
you don't have medic Gap, which is the cover it's
a private insurance policy that you buy. You see all
the commercials between October and December for changing plans. If
you buy a meda gap policy, which most people should,
(17:59):
it's usual about an one fifty a month or so.
That adds up to that one hundred and sixty five
thousand dollars number. And guess what that doesn't None of
these numbers include a nursing home. If you wind up
in a nursing home that's even more money because Medicare
does not pay for a nursing home.
Speaker 4 (18:15):
I'm sitting here listening to you thinking to chang to chang,
to chang. Right with every additional cost that's adding up,
you can see how you can quickly get to that
one hundred and sixty five thousand dollars figure that seems
so astronomical before. I mean this alphabet soup of all
these different parts of Medicare and figuring out what's the
best fit for you. And I also want to throw
this in right here and say your open enrollment a period.
(18:38):
Once you get on Medicare becomes incredibly important. So if
you're someone who for years and years and years just
kept the same insurance through your workplace, these policies change
year to year.
Speaker 3 (18:49):
What's covered and in your situation changes. Maybe this year
you got put on a new medication.
Speaker 4 (18:53):
Or there's a different kind of specialist you have to see.
Look at these policies every year to figure out which
one makes the most sense to you.
Speaker 3 (19:01):
It may not be the same one year.
Speaker 2 (19:02):
Here, Yeah, review your investments at least once here, review
your health insurance coverage and By the way, if these
numbers are upsetting to you, hopefully you still have a
little bit of time you can put some money away,
increase your four oh one K contributions, or do your
favorite thing, the health savings account.
Speaker 4 (19:19):
I was just gonna say, I can't believe we haven't
talked about this if a high deductible health care plan
makes sense for you, and I would also say if
you have a large emergency fund where I think you've
got the most value Because at HSA is triple tax advantage.
Money goes in tax free, grows tax free, you take
it out for qualified medical expenses again tax free.
Speaker 3 (19:38):
Nothing else like it.
Speaker 4 (19:40):
And if you can let that money grow right, it
goes into an HSA and is invested for years, and
then you pay the medical expenses out of pocket as
you go. Was won't work for everyone, but man, when
it does, then you have a pile of money there
for those health care expenses in retirement.
Speaker 3 (19:55):
Here's the all Worth advice.
Speaker 4 (19:56):
You've got a plan ahead for health care cost later
in life. If you don't, you could get stuck with
massive bills that could just wreck your retirement. Coming up next,
talking about dealing with financial stress when it comes to
all parts of your life?
Speaker 2 (20:10):
Right?
Speaker 3 (20:10):
What can you do to get things under control?
Speaker 4 (20:13):
You're listening to Simply Money, presented by all Worth Financial
here on fifty five KRC the talk station.
Speaker 1 (20:18):
The most important election. Democrats call it chaos and division
lain weird. Republicans call it I put America First.
Speaker 3 (20:27):
We call it news staying updated on the election.
Speaker 1 (20:31):
Fifty five krs the talk station.
Speaker 3 (20:35):
See an iHeartRadio station.
Speaker 4 (20:41):
You're listening to Simply Money, presented by all Worth Financial,
I mean Wagner.
Speaker 3 (20:45):
When you are stressed about money, right.
Speaker 4 (20:48):
Just periods of time when there's a lot of financial
stress in your life, do you ever think about how
far reaching the impact of that is.
Speaker 3 (20:55):
Does it impact you at work? You might be surprised
by the answer.
Speaker 4 (20:59):
Joining us night is our good friend Al Riddick from
Game Time Budgeting talking to us about the fact that
employee financial wellness actually has a huge impact on all
of us.
Speaker 3 (21:10):
Let's get into this outum so.
Speaker 5 (21:11):
Yes, miss Amy. First of all, when you think about
financial stress, it can occur in two different arenas, on
the job and inside your home. But first let's tackle
how it looks on the job. So if you come
to work, financially stressed, obviously you're going to be less focused.
So there are a number of people listening to my
voice right now that have the types of jobs where
(21:34):
you definitely need to be focused at engaged so that
you can take care of certain projects and meet dead lives.
In addition to that, when you have financial stress, it
can impact the attitude that you bring to work, So,
believe it or not, when you're financially stressed, you can
impact morale inside your business unit, or inside your team,
(21:57):
or even on the floor that you work on. And
let's throw out one more Amy. When you have financial stress,
a lot of times people will start looking for a
job that pays more money because they're thinking that if
they just made I don't know, an extra ten thousand
per year, or let's say extra two or three dollars
per hour, we tend to think that that's going to
(22:19):
solve our financial problems. But both you and I know, Amy,
making more money can sometimes compound financial problems if you
don't have the correct mindset, behaviors, and systems in place
so that you can live a more fiscally fit financial life.
Speaker 3 (22:37):
And let's talk about that out.
Speaker 4 (22:39):
How do we get to the point where we can
have those systems in place. What does that look like
to the point where this financial stress isn't following us
to work and following us back home again when we're
dealing with our spouses and our children. How do we
get ourselves set up where our financial life is just
that and it's a healthy one.
Speaker 5 (23:00):
So we're gonna start at a place where you might
not expect, Amy, I call it peeling the onion. Right,
So let's talk about myself. For example, I'm nothing more
than a larger version of who I was when I
was a child. Hopefully I have attained a certain level
of maturity, right. However, there are certain behaviors that I
(23:22):
may have observed growing up around my parents, whether it
was something that was taught to me through an action
or something that was taught to me through verbal instruction. So,
as we age in life and become adults, a lot
of the times we don't take a step back to
realize how we develop certain beliefs and behaviors. Now, unfortunately, Amy,
(23:44):
a lot of these beliefs and behaviors are not correct,
meaning that they are not inducive to a financial life
that someone might be proud of.
Speaker 3 (23:55):
Right, yeah, we've carried them with us all these years.
Speaker 5 (23:58):
Right, Oh, with our questions first, let's start there. But
just to bring things up to date, one of the
best things I think people could ever do is to
take a look at where their money has gone in
the past. So how does that look? I dare the
listeners right now to pull out your most recent credit
card statement, or even take a look at your checking
(24:18):
account statement, and just go down line by line to
have an account of all of the financial decisions that
you made. Now, some things you may be surprised by,
meaning that you're shocked that you're spending so much money
in a particular area, but you'll also be pleasantly surprised
by the fact you can easily identify opportunities to make
(24:41):
the gap between income and spending as wide as possible.
Is that making sense so far? Amy?
Speaker 2 (24:47):
Yeah?
Speaker 3 (24:47):
Absolutely?
Speaker 5 (24:48):
So. Can I throw out one more thing? Yeah, So
when it comes to these systems, I'll just throw out
one as an example, like my wife and I because
our house is paid off. Of course, we don't have
the luxury of escrowing the real estate taxes or property taxes, right, so,
because I know, and let's just make the math easy
So let's just say our property taxes are six thousand
(25:09):
dollars per year, right, So in our monthly budget, it's
a lot easier just to transfer five hundred dollars a
month to a savings account strictly put in place to
pay real estate taxes than it is to wait thirty
days before that big deal is due and then to
try to come up with the money. So that is
(25:29):
one of the small systems. And I call that the
rule of twelve. By the way, It just makes it
easier to manage cash flow because I think we're probably
similar in this sense, Amy, both you and I. We
like to have fun in life, right, so we do
in time being stressed out about money when you don't
have to be.
Speaker 4 (25:50):
Well, you know, I like that rule of twelve, and
I think it actually works in a number of ways.
Speaker 2 (25:55):
Right.
Speaker 4 (25:55):
You're talking about saving for major expenses that happen once
a year, right, putting that money aside.
Speaker 3 (26:00):
But I also think we can easily.
Speaker 4 (26:01):
Look at something like one more streaming service, right and say, oh,
it's only ten dollars a year, twenty dollars a year
or a month, right, and that's not a lot.
Speaker 3 (26:12):
Okay, But what is that.
Speaker 4 (26:13):
Over the course of a year, one hundred and twenty,
over the course of year two hundred and forty, over
the course of a year. You know, you add a
bunch of those up, and all of a sudden, it's
one thousand dollars over the course of a year for.
Speaker 3 (26:22):
Something that you've got nothing to show for.
Speaker 4 (26:24):
And so I always, when I'm talking to my kids
about things, will say, hey, think about this over the
course of an entire year. How much you're going to
spend Do you value this thing enough to do it?
So sometimes I think, yeah, it's just kind of turning
those mindsets upside down in getting yourself to a point
where you're thinking in a really smart, healthy way about money.
(26:45):
And I want to also ask you when you think
about work and your salary. So many people when they're
looking at a new job, all they're thinking about is
what's that paycheck?
Speaker 3 (26:55):
What's that paycheck?
Speaker 4 (26:57):
But you say, there's benefits there that many people aren't
taking advantage of that they need to or should be.
Speaker 3 (27:03):
Let's talk about that.
Speaker 5 (27:05):
Yeah, So I'll give you a quick example. So my
wife is employed at a major consumer products company. Okay,
as a part of their benefit package, if you just
get one physical per year with your blood work, and
then maybe take like an online course about making your
life better. Can you believe you can make up to
three hundred dollars right? Yeah, And I'm like, this is
(27:29):
easy money. So in addition to that, many years ago
they added something new to the benefit package, so you
can actually pay a very small amount for access to
legal services. So, like I said, way back in the day,
when we were getting our trust prepared, we got it
done for an extremely low amount of money, but it
(27:52):
was done in a very professional way that met all
of our needs. In addition to that, first of all,
Amy I have to say, most people don't read their
employee benefit package word for words, which is said, but
you more than likely your employer, if they are large enough,
they probably have relationships with various vendors who supply goods
(28:14):
and services to you and that you can get at
a discount. So it's kind of like you're throwing away
money as well. But it's funny when we just talk
about those benefit packages. I wish more people would read
them because there are a lot of services that you
have access to you that could enhance your life at
a lower cost than if you were to just go
(28:35):
buy it off the general market, so to speak.
Speaker 4 (28:38):
Well, you know, we always joke that people spend more
time planning their vacations and they do understanding their flour
and k and how it works, or understanding their company benefits.
But if you think about it this way, if you
fully understand the company benefits and you are taking full
advantage of everything you can, you're saving yourself money.
Speaker 3 (28:55):
So that that next trip right is much more affordable.
Speaker 4 (28:59):
Because you're not setting that money on things that you
could be saving on that your company might help you
in that way.
Speaker 3 (29:04):
So I love that way of thinking about things definitely.
Speaker 5 (29:08):
And as you know, saving is a beautiful thing amy
because when you save money, you put yourself in a
better position to make financial decisions that pay off for
years to come, whether that's putting more money in your
retirement plan or just be a better preparer for life emergencies.
Speaker 4 (29:25):
We always appreciate your perspective on financial stress, financial wellness,
how to take the best advantage of all of those
benefits in your package. Make sure you're paying attention that's
already from game time budgeting. You're listening to simply money
presented by all Worth Financial here in fifty five KOC
the talk station.
Speaker 1 (29:43):
I want to talk because everyone wants to talk.
Speaker 4 (29:48):
I want to talk.
Speaker 1 (29:49):
Thank you for taking my call, taking calls. I want
to talk, and this is the place to do it.
Speaker 5 (29:56):
To make my head explode, here's what nobody's talking about.
Speaker 1 (29:59):
I wanted to to that.
Speaker 2 (30:00):
Conversation to stand up, shirt scramming, first time collar and
I love your show.
Speaker 1 (30:05):
Fifty five KARC divers Station is what we need to
set at Argument the talk station.
Speaker 2 (30:12):
Listen to Shared Brown.
Speaker 1 (30:14):
Your opinions are welcome to here.
Speaker 3 (30:16):
Why do we keep letting thousands of people come over
and do nothing about it? My family's safety is at risk.
Speaker 1 (30:21):
Fifty five KRC the Talk station.
Speaker 4 (30:30):
You're listening to simply Money because I'm I all worth financial,
I mean me Wagner along with Steve Skrovac. Are you
happy with your net worth? Or does your net worth
make you happy? We're going to look what many of
us think is just enough money to have to make
us happy. If you have a financial question you want
us to answer, you need a little help with it,
There's a red button you can click them while you're
(30:50):
listening to the show. It's right there on the iHeart app.
We're recording your question and it's coming straight to us.
We've got questions tonight. First one comes from Shannon, who
lives in Pendleton County. I'm changing jobs and want to
roll over my Wroth four o one K to my
roth Ira.
Speaker 3 (31:04):
How does the five year rule work in a situation
like this?
Speaker 2 (31:08):
Boy, I can't pully it works against you? It does?
And can the government make some of these things any
more complicated? I'm almost afraid to say that because the
answer is sure they could. There's a five year rule
in wroth four oh one k's roth IRA's. Basically the
government says, we want this money put away for five
(31:29):
years before you're going to take the money out and
not have to pay tax on it, which is a
huge incentive to have a roth Ira or Wroth four
oh one K. If it's been put away for five
years and you're fifty nine and a half or older,
the money most likely will be tax free on distributions.
Great way to pay for a car or something like that.
(31:49):
But man, they make it complicated. If you roll money
out of a four oh one k, a Roth four
oh one K that you might have had for twenty
years at your company and roll it into a roth eye.
Guess what, that five year starts all over again. The
five year rule starts all over. And if you take
money out a year after rolling it over into roth
(32:09):
diray from your wroth four to oh one k, you're
going to host some tax on that. It's a ridiculous rule,
It really.
Speaker 3 (32:15):
Is, so understand.
Speaker 4 (32:16):
Yeah, that is like the clock resets when you do that,
rollover to January first of that year, and you've got
five years until you can touch that money. You know,
a lot of people are talking about roth conversions right now,
right with who's going to be president and not knowing
what's going to happen with tax brackets in the future.
You know, make sure you're taking this into account if
you are considering a Roth conversion, because if you need
(32:37):
that money in the next five years, this may not
work for you.
Speaker 2 (32:40):
Yeah, before you do anything with a Roth conversion rollover,
talk to an account and please because the rules are
complex and you want to know what the ramifications are
before you sign the paperwork.
Speaker 4 (32:51):
Yeah.
Speaker 3 (32:51):
Next question from Nick in Oakley.
Speaker 4 (32:54):
We've recently started discussing the possibility of moving overseas to
England for retirement. What are some of the financial hurdles
we might face if we decide to do this.
Speaker 2 (33:04):
Yeah, you know, it's kind of neat to think about
moving to a different country in retirement. I know somebody
really well that went to Costa Rica Amy and she
absolutely loves it down there. But guess what, Medicare doesn't
pay for your health expenses in a foreign country. That's
the biggest thing she learned right off the bat. There's
always different rules between different countries on income requirement for
(33:28):
partial residency or expat expat residency, but the big one is,
or one of the big ones is, certainly, wow, Medicare
doesn't cover me. I guess I have to buy private
health insurance or go to a local hospital and sign
up with their plan health.
Speaker 3 (33:43):
And I think they're just the whole healthcare system in general.
Right is a consideration?
Speaker 2 (33:47):
Right?
Speaker 4 (33:47):
We get used to American hospitals and the American system
and wherever it is that you go. And I'm one
of those people when I travel, I start to think,
what would it be like to live here?
Speaker 2 (33:56):
Right?
Speaker 3 (33:57):
Happens to me every time? And is you a closer
to you time? And then it's like, could we retire here?
But you've really got to think about.
Speaker 4 (34:04):
Okay, we're here for a week or ten days and
we're on the beach and this is so much fun.
Speaker 3 (34:08):
But what does real life look like here?
Speaker 4 (34:11):
And I would also say, just beyond the healthcare expenses
and things like that, also go for a month first,
rents an airbnb or something and really live there before
you commit to moving your life out of the country.
Speaker 2 (34:25):
I'll tell you the other big concern that this woman
that went Costa Rica learned very quickly. Moving money overseas
is not a piece of cake. It's not like transferring
from your money market to your checking account to pay
a bill. It's a process, and you're going to be
subject to money laundering rules and requirements. You'll have to
sign some additional paperwork. There are only certain banks that
(34:45):
can do it. It is not easy to get chunks
of money from the US to a foreign country on
a regular basis. Yeah, it can be complex, so look
into everything before you decide. Hey, I just one year lease.
I'm not sure how it works, but I'm going to
give it a shot.
Speaker 4 (35:03):
I want to quickly get to this next question because
it's a version of when we hear all the time,
this is don and cleeves.
Speaker 2 (35:10):
We just inherited some Kroger stock from my aunt who
worked there for a long time and never sold a share.
Do we have to pay taxes on it?
Speaker 1 (35:17):
And how do we know if we should keep it
or sell it?
Speaker 4 (35:20):
So the good news about inheriting stock is the way
the system is set up, you inherit it on a
stepped up basis, meaning just for simple terms, say your
aunt bought that Kroger stock for a dollar a share
right and by the time you inherited it, by the
time she passed away on the day of her death,
it was at ten dollars. If you decide to sell it,
(35:41):
you don't have to pay the gains from that dollar
of when she bought it. It becomes a stepped up
basis of the ten dollars at the time of inheriting it,
and then it becomes a look at your entire portfolio.
Speaker 2 (35:52):
You know.
Speaker 4 (35:52):
One thing that we sometimes worry about is are we
have too much of our portfolio in an individual stock?
Speaker 3 (35:58):
Are we too concentrated? But if you do, you'll like Kroger,
and Kroger makes sense for your portfolio. Maybe you hold
it for a while. That can work too.
Speaker 2 (36:05):
I think if you just ask yourself, if I had,
let's say, inherited one hundred thousand dollars of Kroger stock,
if I had one hundred thousand dollars in my savings account,
would I go out and put that money into Kroger.
If the answer is no, you probably want to sell
it and diversify into you know, just the S and
P five hundred or or you know, a balanced portfolio.
But you know, if that's the case, just realize that
(36:28):
inheritances are not in almost every case taxed, so you
get by Scott free on that. And that stepped up
basis means okay, if you sell it for the same
price that it was at on the date of your
aunt's death, guess what, no tax? Nice?
Speaker 3 (36:41):
Yeah.
Speaker 4 (36:42):
Coming next, we're talking about net worth and its relationship
to your happiness. You're listening to Simply Money presented by
all Worth Financial here in fifty five KRC, the talk
station the path to the White House.
Speaker 1 (36:54):
You get to win their votes the most important election.
Speaker 2 (36:57):
Democrats callage chaos and division plain weird.
Speaker 1 (37:01):
Republicans call it America First.
Speaker 4 (37:03):
Tamila Harris is destroying the American dream.
Speaker 1 (37:06):
We call it news. The information in real time. Another
news update at the top of the hour. Staying updated
on the election, what happens next?
Speaker 3 (37:15):
Understand what's happening, really happening.
Speaker 1 (37:17):
Happens here this November fifty five KRC, the talkstation.
Speaker 4 (37:23):
That next month, I have to choose between groceries for
my kids or gas for my car.
Speaker 1 (37:28):
Talk about it here fifty five KRC, the talk station.
Speaker 4 (37:35):
I've been listening to simply Money presently all Worth Financial,
I mean you Wagner along.
Speaker 3 (37:39):
With Steve Sprovac.
Speaker 4 (37:41):
When it comes to money, can it buy you happiness? Well,
there is a financial advice website called card Rates that
found that Americans actually put a dollar amount on Hey,
if I have this amount of liquid net worth, I
think I'd be pretty happy.
Speaker 2 (37:59):
It might not be able to buy you happiness, but
I've been totally can rent you happiness? But that's a
different survey. No, and this surprised me. This survey said
the average American said, you know what, if I had
a liquid net worth in other words, money and four
oh one k's and savings, that was around the two
hundred thousand dollars range. I think I'm covered. That scares
(38:21):
me because that doesn't go real far. And I'm not
just saying, you know, you buy yachts, and you know,
second third homes and all that kind of No, if
you have two hundred thousand dollars rule of four percent
at the most, you can draw eight thousand dollars a
year off that seven hundred and fifty bucks a month
on top of social Security. It's not a lot of money.
And if you have to go out and buy a car,
(38:42):
which you will in retirement at some point, what's that
forty to fifty grand for something halfway decent that's going
to last you a while? Okay, well, now you're down
one hundred and fifty thousand and four percent of that's
a lot less than seven to fifty a month. I
would shoot your site and set your sits a little
bit higher than two hundred thousand.
Speaker 4 (39:00):
Well, I guess the only thing I can surmise from
this is feeling like you have two hundred thousand dollars
gives a sense of peace of like if.
Speaker 3 (39:07):
An emergency were to come up. But to your point,
once you have to start drawing on that money.
Speaker 4 (39:13):
You know, it becomes a completely different reality because what
you're looking at is your sources of income, right for
most of us, there's not even a pension there, it's
just social security. And then beyond that, right, what it
takes to live off of every month?
Speaker 3 (39:25):
How do you fill that gap? It's you fill it
with what you have saved and is that enough? And
so I don't know. Maybe happiness looks.
Speaker 4 (39:32):
Different when you're in your working years than it does
when you're retired. I know that this study looked at
people between eighteen and forty three. I think probably this
number would be a lot different for people in retirement.
Speaker 2 (39:43):
Oh yeah, yeah. I think if you talk to the
average retiree or somebody within five years or so a retirement,
they'd say, maybe add a zero to that. Okay, it
sounds a million, two million dollars. Sounds like a ton
of money, and it is. But that's really what I
think should be the average person's target from the day
they start working. How do you get there? Well, you
(40:03):
mentioned it earlier. If you can put ten percent of
your money into four oh one k from day one,
you should get there. You should get way past there,
as a matter of fact. But if you're fifty five
and just starting a four to oh one k, it
might be impossible. And you got to just set expectations lower. Here.
Speaker 3 (40:20):
I think is interesting about this research.
Speaker 4 (40:22):
Gen Z said they need a million dollars to be happy,
and like, you know what, my daughter who just love
for college.
Speaker 3 (40:29):
She's in gen Z.
Speaker 4 (40:30):
These kids are bombarded with messages on social media all
the time. You need this, You need that. It doesn't
surprise me that they think a million dollars. But man,
you know, I think this number is very individual for
each of us. And another set of research that I've
seen is that if you can buy things that save
you time that you don't enjoy doing, there's also happiness
(40:51):
in that. Thanks for listening tonight. You've been listening to
Simply Money, presented by all Worth Financial. Here in fifty
five krs the talk station.
Speaker 2 (40:58):
Trump Camalaris is liberal elected Paul or Harris.
Speaker 3 (41:02):
I know Donald Trump's tice.
Speaker 1 (41:04):
Some choices aren't difficult when you look at how bad
they are. You say, you know, I like Trump, but
now I really like Trump because we don't want to
go back. When you have common sense coverage Decision twenty
twenty four.
Speaker 5 (41:20):
If nation got a cancer up happens.
Speaker 1 (41:22):
Here, you have a choice to make fifty five krs
the talk station. You know out of all the things
we can do to
For some pless I'm not going to hide behind the
talk about it.
Speaker 2 (00:02):
It's all programmed to create chaos.
Speaker 1 (00:05):
Fifty five kr tonight.
Speaker 3 (00:13):
Some strategies to help keep you sane when you're stressing
about money.
Speaker 4 (00:18):
Plus, we are answering a lot of your questions and
much more. You're listening to simply money presented by all
Worth Financially, I mean you Wagner along with steve'sproback in
for Steve Ruby.
Speaker 3 (00:28):
Okay, I don't think I need to tell anyone this.
Speaker 4 (00:30):
That money can be a major source of stress in
your dress.
Speaker 2 (00:34):
Stress over money, I know? Ever experienced that?
Speaker 3 (00:38):
Oh it can reck It's.
Speaker 2 (00:40):
More like stressover lack of money.
Speaker 4 (00:42):
Yeah, yeah, well, and I think you can feel like
you're all set with money and then something happens, right,
someone loses a job, an unexpected medical expense.
Speaker 3 (00:50):
Comes, and how are we going to pay for this bill?
You know, whatever it is. We were if something from
my son's school.
Speaker 4 (00:56):
Over the weekend, my husband was talking to someone who
had been laid off while ago, and he was just
talking about how stressful it was to find a new job.
Speaker 3 (01:03):
And he was saying, this stress on our marriage, right
has just.
Speaker 4 (01:07):
Been so hard and so for anyone who was done,
I can't imagine anyone getting to the age of thirty, forty,
fifty sixty without having some kind of money stress at
some point in your life, right, you know, how.
Speaker 3 (01:20):
Do you keep things in check? How do you keep
things under control the best that you can?
Speaker 2 (01:25):
Well, you know you don't always, is the short answer.
And as I've gotten to know you over the years,
you grew up in a very different environment than I did.
Your your parents. You weren't wealthy, no question about that,
but your parents' money was openly discussed. Yeah, and it
was a tool that your parents taught you from an
(01:46):
early age what to do, what not to do. My
parents were always broke, and you know, it was always
a big stress point over you know, what bill can
we pay? Which ones do we have to put off
this month? I don't think they ever had a saving account.
And there's a lot of people, I think out there
that can relate to this. Yeah, it's a problem. And
you know, we we take a look at a lot
(02:08):
of surveys, we get a lot of information and data points,
and it's no surprise to me that, according to bankrate
dot com, half of US adults said money has a
very negative impact on their mental health. I get that completely.
Speaker 4 (02:24):
You know, what I think is really interesting about that
those deve is that so many people get used to
whatever that feels like, that's stress, that they're almost afraid
to do something about it to get the stress out
of their lives, like they would be too painful of
the process of digging out of that credit card debt
or whatever that looks like.
Speaker 3 (02:41):
So I think first it's like, hey, acknowledging the situation.
Speaker 4 (02:44):
That you're in in the way that it makes you feel,
and then deciding I'm going to take some steps to
try and get this under control.
Speaker 2 (02:52):
Well, and okay, what are those steps? I mean, the
sound basic. We can talk about it. We'll just build
an emergency fund. If you're not paying your bills, you
don't have the ability to build up an emergency fund.
And if you're trying to pay off credit card debt.
The reason you may have gotten into credit card debt
is because your income is not matching your expenses. And
(03:14):
maybe your expenses are legitimate. Maybe you're not going out
to dinner every night of the week. Maybe it's because
you need a breaks on the car. You didn't save
up money for that, and oh my goodness, it won't
be paid off this month because I threw it on
visa and next month is looking pretty diceal. So it
is a big stress issue for a lot of people.
(03:35):
And one of the other things bankery dot Com came
up with is sixty percent more than half of the
people out there that we're surveying, they're having trouble just
meeting day to day expenses, I mean, just normal stuff,
never mind the surprises. How do you build up an
emergency fund if you can't meet the normal expenses, never
mind the surprises.
Speaker 4 (03:56):
This is one of the first conversations I have with
someone when they walk into my office. Was talking to
someone yesterday who was talking about the fact that she
was pulling out of her driveway and got an unexpected
call from her CPA telling her that she owed a
major amount of money, and she was actually saying that
it was difficult for her to even figure out how
(04:17):
to put the car and park. It was so overwhelming
this news from out of nowhere. And part of the
problem and why it was overwhelming is because that emergency
fund wasn't there. So when you get this call, it's like,
what am I going to do. Where am I going
to get this money? So agreed, emergency fund is the
first step that you take in order to combat some
of this stress, right, It can reduce.
Speaker 2 (04:40):
A lot of that stress once you have I'll argue
that a little bit. I think if you're carrying a
balance on your credit card, that's step number one, because
you can have a ten thousand dollars emergency fund. But
if you've got ten thousand dollars and balances on one
or more credit cards, you don't have an emergency fund.
And I have a family member that years ago I
(05:02):
helped threw an issue like this, and a lot of
people that have balances built up on credit cards, they're
in denial of the total amount because they can't wrap
their heads around I really owe fifteen thousand dollars on
this credit card or ten thousand dollars. And you know,
if you're just looking at well, I can make that
(05:22):
minimum payment. I can meet the forty dollars minimum payment
or the eighty dollars minimum payment. I'm getting fined just by.
And if I meet the minimum payment, I can go
ahead and put some money in savings and do what
these people on the radio are telling me. About No,
you cannot deny how much credit card dbate you've got,
And in my opinion, step number one is put a
(05:42):
plan together to attack your credit card debt because if
you keep doing the same thing time after time, the
outcome is not going to change.
Speaker 3 (05:50):
Yeah, I can get behind that.
Speaker 4 (05:51):
You're listening to Simply Money presented by all Worth Financial
I Memi Wagner along with Steevesprovac.
Speaker 3 (05:55):
This is the stress show.
Speaker 2 (05:57):
Feeling stress from talking about it's.
Speaker 3 (06:00):
What can you control?
Speaker 4 (06:02):
You can't control the inevitable things that they come from
left field, that you weren't expecting, that are costly, but you.
Speaker 3 (06:07):
Can control how you deal with them.
Speaker 4 (06:10):
In one of those things is yeah, don't have that
overwhelming credit cards that have that emergency fund in place.
And then I'm gonna tell you the next step is
you walk up up to the mirror and you take
a good look at yourself and you ask, how do
I deal with spending and saving? Are you someone who
when you get stressed goes shopping buy stuff online that
you don't need? Do you have that kind of yolo?
(06:31):
You only live once? You know thought, but you know
that's fun and all the vacations and all the concerts
and all the things you do now, but that yolo
self that's living right now, your future self, You're gonna
hate it, you know, because there's not going to be
any money there that you've saved.
Speaker 3 (06:46):
And so figuring out I love the fifty to thirty
twenty role.
Speaker 4 (06:50):
This is, you know, the money that's coming in, fifty
percent goes to your needs, right, This is you know,
your your rent or your mortgage and your groceries.
Speaker 1 (07:00):
Yes, yes, yes, you need to do this. Yeah.
Speaker 4 (07:02):
And the next thing is the twenty percent of this
is saving. Man, If you are saving twenty percent from
the time you're graduating from college and get that first
job until you retire.
Speaker 3 (07:12):
I mean, you don't ever have to listen to this
show because you're right, you're.
Speaker 4 (07:16):
Never going to need any of this and you're going
to be smooth sailing every step of the way. And
then thirty percent of that is the ones, the fun stuff.
And I'm going to tell you this, sometimes the needs
rite during inflation they become more than fifty percent, or
sometimes that the savings, right, but you can't give on
those two things that thirty percent goes once.
Speaker 3 (07:36):
That's where the give room is.
Speaker 2 (07:38):
I'm glad you brought up inflation, because if you do shopping,
which I'm not allowed to do for obvious, or you're
banned from.
Speaker 3 (07:45):
The grocery store, buyer wife, I don't stick to the list.
Speaker 2 (07:48):
My wife has been sick the last couple of days,
so I've gone to Kroger or myself unsupervised. Not pretty
pretty last twenty feet that's out there for me.
Speaker 3 (08:01):
You have a freezer full of Do you have a
freezer full of ice cream right now? And a pantry
full of candy bars?
Speaker 2 (08:07):
How do you have a key to the house?
Speaker 5 (08:08):
Oh?
Speaker 3 (08:09):
I know you I know, you know.
Speaker 2 (08:11):
The reason I want to talk about inflation is this
same study said, it's not just okay, you know, let's
let's take a look at where the stress is. You know,
it is it? This area? Is it? You know? Paying
for rent? Inflation is the number one concern of consumers
right now in whether or not they're stressed out by
(08:32):
their ability or inability to pay the bills by more
than two times. Any other concern, Yeah, interest rates, Yeah,
that's a concern keeping my job keeping study income, Yeah,
that's a concern. Inflation number one because the people that
are just getting by and again I grew up this way.
The people that are just getting by all of a sudden,
they're paying more for staples, for for you know, just food,
(08:56):
and their bill that used to be fifty dollars is
eighty dollars And they weren't saving thirty before prices went up,
so that's thirty dollars they can't spend somewhere else, maybe
on gas or something else that they need to do.
So inflation is really crushing the middle and lower income
class out there.
Speaker 4 (09:14):
And I think a lot of people too think, okay,
I know my risk tolerance, right, But you often figure
this out when markets are up, and it's like, oh,
give me all the stock exposure in the world, right, Nah,
I ask yourself, Okay, how am I going to feel
when markets are down ten percent? How did I do
during the pandemic, when markets were in a free fall
in early twenty twenty, How did I deal with that?
And you know, it's interesting someone came into my office
(09:36):
last week who said, you know, I've dialed back a
lot lately my risk exposure.
Speaker 3 (09:43):
But when I looked at the totality.
Speaker 4 (09:44):
And in someone who has money in seven different places, right,
when I put it all together, it wasn't the risk
tolerance at all that he thought he had. And so
I think that's something that that you've got to think
about there is not only what is my risk tolerance,
but really looking at that portfolio and saying is that
adequately reflect that well?
Speaker 2 (10:04):
And you're talking about putting together a strategy for investing
in a panic. I mean, if you are approaching retirement
and you've got nowhere near the amount saved up that
you want or feel you should have saved up, you
might do something rash and take on more risks than
your care. Hitting the lottery is not a financial plan.
(10:25):
You know, you've got to watch yourself out there. And Okay,
if you're getting up and closer to retirement and you're
not where you want to be, well dial expectations down
of how you're going to live in retirement. But you
know you always want to invest within your risk Alish,
I'm going to add one more thing amy an umbrella policy,
and I'm not talking about for you know, rain, but
(10:48):
you know we're the biggest concern as you start to
get your financial act together, is something coming out of
the blue and just wiping out what you've been working
on and that could be a guy that you hired
to trim some limbs that falls out of the tree
and sues you, and it turns out he wasn't bonded
like he told you, he wasn't insured like he told you.
(11:09):
And now all of a sudden that you're getting a
summons in the mail and you're worried about are they
going to take my houseware? Are they going to do this? Yeah,
for less than four hundred dollars a year, you can
get for most people, you can get a million dollar
umbrella policy, which means, okay, that's the insurance company going
(11:30):
to bat for you, their lawyer is going to bat
for you, and they will pay up to a million dollars.
You can get two million, you can get three million
dollars worth. It's a very, very relatively cheap way to
just take away that last concern of will this wipe
me out if something goes bad. It's a really important
part of any financial plan, and unfortunately a lot of
(11:51):
people have not heard about umbrella policies. You want to
make your insurance agency say hey, do I have an
umbrella policy? How much is it? Do I need it?
And yeah, most likely if you don't have it. They're
going to recommend, yet you probably should and it might
need to be bad as much as your net worth.
Speaker 3 (12:09):
Yeah, it's funny that you bring up the umbrella policy.
Speaker 4 (12:11):
I did an event for women several months ago called
Wine Women in Wealth, and one of my dear friends
came and they are as buttoned up financially as anyone
can be.
Speaker 2 (12:19):
Right.
Speaker 4 (12:20):
They are very open, transparent, They've got clear goals, and
so I thought, well, she's going to come and she
may not learn a thing. The first thing she did
when she got home was purchased an umbrella policy.
Speaker 5 (12:30):
Right.
Speaker 4 (12:30):
I mean, there's neighborhood kids that play on their property
with their son. Anything can go wrong, and it's something
they had never considered. But now that she's aware of that,
you know possibility of something. This is a great way
to protect yourself and talk about cutting down on stress
when something really stressful could come your way.
Speaker 3 (12:46):
This is incredible help with that. Here's the all Worth advice.
Speaker 4 (12:49):
If you want less financial stress, you've got a plan ahead.
It's going to make your financial life a whole lot easier.
Coming up next, something you need to make sure you
are prepared for.
Speaker 3 (12:59):
It's important. We're going to talk about it next.
Speaker 4 (13:02):
You're listening to Simply Money, presented by all Worth Financial
here in fifty five KRC the talk station KARC an
iHeartRadio station.
Speaker 6 (13:09):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 3 (13:29):
You're listening to Simply Money presented by all Worth Financial.
I Meani Wagner along with Steve Sprovak.
Speaker 4 (13:34):
If you can't listen to our show every night, you
don't have to miss a thing.
Speaker 3 (13:37):
We've got a daily podcast for you. It's Simply Money.
Speaker 4 (13:40):
Just search it on the iHeart app or wherever you
find your podcast.
Speaker 3 (13:44):
Coming up at six forty three.
Speaker 4 (13:45):
We got lots of questions from you this week about
roth IRA's for one k's, does it make sense to
retire overseas and a lot more. It's time to ask
the advisor and just a few minutes, you know, I think, honestly,
if there was a theme to the show, Steve, it
would be financial stress and what you can do about it.
I'm actually glad that we're tackling this because on a
day to day basis, it's not what's happening on Wall
(14:08):
Street that makes the most difference in your home.
Speaker 3 (14:10):
It's these kinds of stressors.
Speaker 4 (14:11):
That can really, really kind of tear at the fabric
of your life. And I got to say, one of
those things is, Man, the cost of healthcare when you
are working. I don't think most of us have any
idea how much our employer is paying right for their
part of our health insurance. Oh yeah, but when we
get close to retirement, it's a different ballgame.
Speaker 2 (14:32):
I remember sitting down with some employees at a company
we had a contract with to provide financial help for
and they were complaining because their premiums went up like
ten dollars a month to forty dollars. You know, this
is crazy. You know what's going on around here? Do
you know what the average person pays for health insurance?
(14:54):
I had to go. I retired in December and had
to buy my own health insurance until I hit Medicare,
which next week, and so okay, I found out what
the company was paying, which was about ninety five percent
of the premium, even though I was still paying a
pretty good chunk out of my paycheck. And if I
had kept that going, it would have been under it's
(15:17):
called cobra, where you have the same plan except you
pay the entire cost and your guaranteed acceptance int it.
I wound up moving on to the exchanges and buying privately,
and it was still sixteen hundred dollars a month for
health insurance for this eight month period. I mean, most
people have no clue that's what health insurance costs for
somebody who's not covered by an employer. And guess what,
(15:40):
when you're retired, just because you're on Medicare doesn't mean
oh okay, well I guess everything's covered now. Far from it?
Speaker 4 (15:46):
Well, and I think yeah, And I think for anyone
who knows your story, they could be listening and be like, well,
maybe Steve's insurance would be a little more because he
had a you know, a heart concern, heart issue a
few years ago.
Speaker 3 (15:55):
Oh no, here are the numbers.
Speaker 4 (15:57):
Right Fidelity has done this recent ur and says a
sixty five year old who is retiring today, one person
right can expect to pay out of pocket about one
hundred and sixty five thousand dollars over.
Speaker 3 (16:08):
The course of your retirement.
Speaker 4 (16:10):
For someone who's super healthy, it's like, no, that's not
going to happen to me.
Speaker 3 (16:14):
But who knows what's going to happen.
Speaker 4 (16:15):
Down the road, what kind of proscriptions specialists? And I
think also there's this terrible surprise for a lot of
people of like, wait a second, I thought when I
got to sixty five, Medicare had this right, Like Steve,
you're talking about bridging the gap before you turn sixty five.
By the way, happy early birthday to you turning sixty
five over the.
Speaker 2 (16:35):
Wee gainul Saturday. I'm just trying to get through today.
I'm not so optimistic to say, yeah, I turned sixty
five Saturday. I want to get through today.
Speaker 4 (16:44):
All right, Well, assuming we get there to sixty five
this weekend, you know, Okay, you've made it to that
Medicare age.
Speaker 3 (16:50):
Great, that isn't free. It's still not free.
Speaker 5 (16:54):
No.
Speaker 2 (16:54):
And here's by the way, you mentioned one hundred and
sixty five thousand dollars over the course of your life
if you retired sixty five, Well guess what for a
married couple and multiplied by two three hundred and thirty
thousand dollars, how are you feeling about that half a
million dollar four oh one k? Now if three hundred
and thirty thousand is going towards just health costs, here's
(17:16):
a breakdown. I mean, you're probably going to draw Social
Security when you retire. Well. Medicare costs this year about
one hundred and seventy five bucks a month. Okay. That
means the twenty five hundred dollars you were going to
get from Social Security isn't twenty five hundred, it's twenty
three to twenty five because that one seventy five comes
directly out of Social Security before you get that money.
(17:38):
Part V. Most people take a drug benefit, not MUNCH,
but there's a fifty five dollars cost there. And if
you don't have medic Gap, which is the cover it's
a private insurance policy that you buy. You see all
the commercials between October and December for changing plans. If
you buy a meda gap policy, which most people should,
(17:59):
it's usual about an one fifty a month or so.
That adds up to that one hundred and sixty five
thousand dollars number. And guess what that doesn't None of
these numbers include a nursing home. If you wind up
in a nursing home that's even more money because Medicare
does not pay for a nursing home.
Speaker 4 (18:15):
I'm sitting here listening to you thinking to chang to chang,
to chang. Right with every additional cost that's adding up,
you can see how you can quickly get to that
one hundred and sixty five thousand dollars figure that seems
so astronomical before. I mean this alphabet soup of all
these different parts of Medicare and figuring out what's the
best fit for you. And I also want to throw
this in right here and say your open enrollment a period.
(18:38):
Once you get on Medicare becomes incredibly important. So if
you're someone who for years and years and years just
kept the same insurance through your workplace, these policies change
year to year.
Speaker 3 (18:49):
What's covered and in your situation changes. Maybe this year
you got put on a new medication.
Speaker 4 (18:53):
Or there's a different kind of specialist you have to see.
Look at these policies every year to figure out which
one makes the most sense to you.
Speaker 3 (19:01):
It may not be the same one year.
Speaker 2 (19:02):
Here, Yeah, review your investments at least once here, review
your health insurance coverage and By the way, if these
numbers are upsetting to you, hopefully you still have a
little bit of time you can put some money away,
increase your four oh one K contributions, or do your
favorite thing, the health savings account.
Speaker 4 (19:19):
I was just gonna say, I can't believe we haven't
talked about this if a high deductible health care plan
makes sense for you, and I would also say if
you have a large emergency fund where I think you've
got the most value Because at HSA is triple tax advantage.
Money goes in tax free, grows tax free, you take
it out for qualified medical expenses again tax free.
Speaker 3 (19:38):
Nothing else like it.
Speaker 4 (19:40):
And if you can let that money grow right, it
goes into an HSA and is invested for years, and
then you pay the medical expenses out of pocket as
you go. Was won't work for everyone, but man, when
it does, then you have a pile of money there
for those health care expenses in retirement.
Speaker 3 (19:55):
Here's the all Worth advice.
Speaker 4 (19:56):
You've got a plan ahead for health care cost later
in life. If you don't, you could get stuck with
massive bills that could just wreck your retirement. Coming up next,
talking about dealing with financial stress when it comes to
all parts of your life?
Speaker 2 (20:10):
Right?
Speaker 3 (20:10):
What can you do to get things under control?
Speaker 4 (20:13):
You're listening to Simply Money, presented by all Worth Financial
here on fifty five KRC the talk station.
Speaker 1 (20:18):
The most important election. Democrats call it chaos and division
lain weird. Republicans call it I put America First.
Speaker 3 (20:27):
We call it news staying updated on the election.
Speaker 1 (20:31):
Fifty five krs the talk station.
Speaker 3 (20:35):
See an iHeartRadio station.
Speaker 4 (20:41):
You're listening to Simply Money, presented by all Worth Financial,
I mean Wagner.
Speaker 3 (20:45):
When you are stressed about money, right.
Speaker 4 (20:48):
Just periods of time when there's a lot of financial
stress in your life, do you ever think about how
far reaching the impact of that is.
Speaker 3 (20:55):
Does it impact you at work? You might be surprised
by the answer.
Speaker 4 (20:59):
Joining us night is our good friend Al Riddick from
Game Time Budgeting talking to us about the fact that
employee financial wellness actually has a huge impact on all
of us.
Speaker 3 (21:10):
Let's get into this outum so.
Speaker 5 (21:11):
Yes, miss Amy. First of all, when you think about
financial stress, it can occur in two different arenas, on
the job and inside your home. But first let's tackle
how it looks on the job. So if you come
to work, financially stressed, obviously you're going to be less focused.
So there are a number of people listening to my
voice right now that have the types of jobs where
(21:34):
you definitely need to be focused at engaged so that
you can take care of certain projects and meet dead lives.
In addition to that, when you have financial stress, it
can impact the attitude that you bring to work, So,
believe it or not, when you're financially stressed, you can
impact morale inside your business unit, or inside your team,
(21:57):
or even on the floor that you work on. And
let's throw out one more Amy. When you have financial stress,
a lot of times people will start looking for a
job that pays more money because they're thinking that if
they just made I don't know, an extra ten thousand
per year, or let's say extra two or three dollars
per hour, we tend to think that that's going to
(22:19):
solve our financial problems. But both you and I know, Amy,
making more money can sometimes compound financial problems if you
don't have the correct mindset, behaviors, and systems in place
so that you can live a more fiscally fit financial life.
Speaker 3 (22:37):
And let's talk about that out.
Speaker 4 (22:39):
How do we get to the point where we can
have those systems in place. What does that look like
to the point where this financial stress isn't following us
to work and following us back home again when we're
dealing with our spouses and our children. How do we
get ourselves set up where our financial life is just
that and it's a healthy one.
Speaker 5 (23:00):
So we're gonna start at a place where you might
not expect, Amy, I call it peeling the onion. Right,
So let's talk about myself. For example, I'm nothing more
than a larger version of who I was when I
was a child. Hopefully I have attained a certain level
of maturity, right. However, there are certain behaviors that I
(23:22):
may have observed growing up around my parents, whether it
was something that was taught to me through an action
or something that was taught to me through verbal instruction. So,
as we age in life and become adults, a lot
of the times we don't take a step back to
realize how we develop certain beliefs and behaviors. Now, unfortunately, Amy,
(23:44):
a lot of these beliefs and behaviors are not correct,
meaning that they are not inducive to a financial life
that someone might be proud of.
Speaker 3 (23:55):
Right, yeah, we've carried them with us all these years.
Speaker 5 (23:58):
Right, Oh, with our questions first, let's start there. But
just to bring things up to date, one of the
best things I think people could ever do is to
take a look at where their money has gone in
the past. So how does that look? I dare the
listeners right now to pull out your most recent credit
card statement, or even take a look at your checking
(24:18):
account statement, and just go down line by line to
have an account of all of the financial decisions that
you made. Now, some things you may be surprised by,
meaning that you're shocked that you're spending so much money
in a particular area, but you'll also be pleasantly surprised
by the fact you can easily identify opportunities to make
(24:41):
the gap between income and spending as wide as possible.
Is that making sense so far? Amy?
Speaker 2 (24:47):
Yeah?
Speaker 3 (24:47):
Absolutely?
Speaker 5 (24:48):
So. Can I throw out one more thing? Yeah, So
when it comes to these systems, I'll just throw out
one as an example, like my wife and I because
our house is paid off. Of course, we don't have
the luxury of escrowing the real estate taxes or property taxes, right, so,
because I know, and let's just make the math easy
So let's just say our property taxes are six thousand
(25:09):
dollars per year, right, So in our monthly budget, it's
a lot easier just to transfer five hundred dollars a
month to a savings account strictly put in place to
pay real estate taxes than it is to wait thirty
days before that big deal is due and then to
try to come up with the money. So that is
(25:29):
one of the small systems. And I call that the
rule of twelve. By the way, It just makes it
easier to manage cash flow because I think we're probably
similar in this sense, Amy, both you and I. We
like to have fun in life, right, so we do
in time being stressed out about money when you don't
have to be.
Speaker 4 (25:50):
Well, you know, I like that rule of twelve, and
I think it actually works in a number of ways.
Speaker 2 (25:55):
Right.
Speaker 4 (25:55):
You're talking about saving for major expenses that happen once
a year, right, putting that money aside.
Speaker 3 (26:00):
But I also think we can easily.
Speaker 4 (26:01):
Look at something like one more streaming service, right and say, oh,
it's only ten dollars a year, twenty dollars a year
or a month, right, and that's not a lot.
Speaker 3 (26:12):
Okay, But what is that.
Speaker 4 (26:13):
Over the course of a year, one hundred and twenty,
over the course of year two hundred and forty, over
the course of a year. You know, you add a
bunch of those up, and all of a sudden, it's
one thousand dollars over the course of a year for.
Speaker 3 (26:22):
Something that you've got nothing to show for.
Speaker 4 (26:24):
And so I always, when I'm talking to my kids
about things, will say, hey, think about this over the
course of an entire year. How much you're going to
spend Do you value this thing enough to do it?
So sometimes I think, yeah, it's just kind of turning
those mindsets upside down in getting yourself to a point
where you're thinking in a really smart, healthy way about money.
(26:45):
And I want to also ask you when you think
about work and your salary. So many people when they're
looking at a new job, all they're thinking about is
what's that paycheck?
Speaker 3 (26:55):
What's that paycheck?
Speaker 4 (26:57):
But you say, there's benefits there that many people aren't
taking advantage of that they need to or should be.
Speaker 3 (27:03):
Let's talk about that.
Speaker 5 (27:05):
Yeah, So I'll give you a quick example. So my
wife is employed at a major consumer products company. Okay,
as a part of their benefit package, if you just
get one physical per year with your blood work, and
then maybe take like an online course about making your
life better. Can you believe you can make up to
three hundred dollars right? Yeah, And I'm like, this is
(27:29):
easy money. So in addition to that, many years ago
they added something new to the benefit package, so you
can actually pay a very small amount for access to
legal services. So, like I said, way back in the day,
when we were getting our trust prepared, we got it
done for an extremely low amount of money, but it
(27:52):
was done in a very professional way that met all
of our needs. In addition to that, first of all,
Amy I have to say, most people don't read their
employee benefit package word for words, which is said, but
you more than likely your employer, if they are large enough,
they probably have relationships with various vendors who supply goods
(28:14):
and services to you and that you can get at
a discount. So it's kind of like you're throwing away
money as well. But it's funny when we just talk
about those benefit packages. I wish more people would read
them because there are a lot of services that you
have access to you that could enhance your life at
a lower cost than if you were to just go
(28:35):
buy it off the general market, so to speak.
Speaker 4 (28:38):
Well, you know, we always joke that people spend more
time planning their vacations and they do understanding their flour
and k and how it works, or understanding their company benefits.
But if you think about it this way, if you
fully understand the company benefits and you are taking full
advantage of everything you can, you're saving yourself money.
Speaker 3 (28:55):
So that that next trip right is much more affordable.
Speaker 4 (28:59):
Because you're not setting that money on things that you
could be saving on that your company might help you
in that way.
Speaker 3 (29:04):
So I love that way of thinking about things definitely.
Speaker 5 (29:08):
And as you know, saving is a beautiful thing amy
because when you save money, you put yourself in a
better position to make financial decisions that pay off for
years to come, whether that's putting more money in your
retirement plan or just be a better preparer for life emergencies.
Speaker 4 (29:25):
We always appreciate your perspective on financial stress, financial wellness,
how to take the best advantage of all of those
benefits in your package. Make sure you're paying attention that's
already from game time budgeting. You're listening to simply money
presented by all Worth Financial here in fifty five KOC
the talk station.
Speaker 1 (29:43):
I want to talk because everyone wants to talk.
Speaker 4 (29:48):
I want to talk.
Speaker 1 (29:49):
Thank you for taking my call, taking calls. I want
to talk, and this is the place to do it.
Speaker 5 (29:56):
To make my head explode, here's what nobody's talking about.
Speaker 1 (29:59):
I wanted to to that.
Speaker 2 (30:00):
Conversation to stand up, shirt scramming, first time collar and
I love your show.
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Fifty five KARC divers Station is what we need to
set at Argument the talk station.
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Listen to Shared Brown.
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Your opinions are welcome to here.
Speaker 3 (30:16):
Why do we keep letting thousands of people come over
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Speaker 1 (30:21):
Fifty five KRC the Talk station.
Speaker 4 (30:30):
You're listening to simply Money because I'm I all worth financial,
I mean me Wagner along with Steve Skrovac. Are you
happy with your net worth? Or does your net worth
make you happy? We're going to look what many of
us think is just enough money to have to make
us happy. If you have a financial question you want
us to answer, you need a little help with it,
There's a red button you can click them while you're
(30:50):
listening to the show. It's right there on the iHeart app.
We're recording your question and it's coming straight to us.
We've got questions tonight. First one comes from Shannon, who
lives in Pendleton County. I'm changing jobs and want to
roll over my Wroth four o one K to my
roth Ira.
Speaker 3 (31:04):
How does the five year rule work in a situation
like this?
Speaker 2 (31:08):
Boy, I can't pully it works against you? It does?
And can the government make some of these things any
more complicated? I'm almost afraid to say that because the
answer is sure they could. There's a five year rule
in wroth four oh one k's roth IRA's. Basically the
government says, we want this money put away for five
(31:29):
years before you're going to take the money out and
not have to pay tax on it, which is a
huge incentive to have a roth Ira or Wroth four
oh one K. If it's been put away for five
years and you're fifty nine and a half or older,
the money most likely will be tax free on distributions.
Great way to pay for a car or something like that.
(31:49):
But man, they make it complicated. If you roll money
out of a four oh one k, a Roth four
oh one K that you might have had for twenty
years at your company and roll it into a roth eye.
Guess what, that five year starts all over again. The
five year rule starts all over. And if you take
money out a year after rolling it over into roth
(32:09):
diray from your wroth four to oh one k, you're
going to host some tax on that. It's a ridiculous rule,
It really.
Speaker 3 (32:15):
Is, so understand.
Speaker 4 (32:16):
Yeah, that is like the clock resets when you do that,
rollover to January first of that year, and you've got
five years until you can touch that money. You know,
a lot of people are talking about roth conversions right now,
right with who's going to be president and not knowing
what's going to happen with tax brackets in the future.
You know, make sure you're taking this into account if
you are considering a Roth conversion, because if you need
(32:37):
that money in the next five years, this may not
work for you.
Speaker 2 (32:40):
Yeah, before you do anything with a Roth conversion rollover,
talk to an account and please because the rules are
complex and you want to know what the ramifications are
before you sign the paperwork.
Speaker 4 (32:51):
Yeah.
Speaker 3 (32:51):
Next question from Nick in Oakley.
Speaker 4 (32:54):
We've recently started discussing the possibility of moving overseas to
England for retirement. What are some of the financial hurdles
we might face if we decide to do this.
Speaker 2 (33:04):
Yeah, you know, it's kind of neat to think about
moving to a different country in retirement. I know somebody
really well that went to Costa Rica Amy and she
absolutely loves it down there. But guess what, Medicare doesn't
pay for your health expenses in a foreign country. That's
the biggest thing she learned right off the bat. There's
always different rules between different countries on income requirement for
(33:28):
partial residency or expat expat residency, but the big one is,
or one of the big ones is, certainly, wow, Medicare
doesn't cover me. I guess I have to buy private
health insurance or go to a local hospital and sign
up with their plan health.
Speaker 3 (33:43):
And I think they're just the whole healthcare system in general.
Right is a consideration?
Speaker 2 (33:47):
Right?
Speaker 4 (33:47):
We get used to American hospitals and the American system
and wherever it is that you go. And I'm one
of those people when I travel, I start to think,
what would it be like to live here?
Speaker 2 (33:56):
Right?
Speaker 3 (33:57):
Happens to me every time? And is you a closer
to you time? And then it's like, could we retire here?
But you've really got to think about.
Speaker 4 (34:04):
Okay, we're here for a week or ten days and
we're on the beach and this is so much fun.
Speaker 3 (34:08):
But what does real life look like here?
Speaker 4 (34:11):
And I would also say, just beyond the healthcare expenses
and things like that, also go for a month first,
rents an airbnb or something and really live there before
you commit to moving your life out of the country.
Speaker 2 (34:25):
I'll tell you the other big concern that this woman
that went Costa Rica learned very quickly. Moving money overseas
is not a piece of cake. It's not like transferring
from your money market to your checking account to pay
a bill. It's a process, and you're going to be
subject to money laundering rules and requirements. You'll have to
sign some additional paperwork. There are only certain banks that
(34:45):
can do it. It is not easy to get chunks
of money from the US to a foreign country on
a regular basis. Yeah, it can be complex, so look
into everything before you decide. Hey, I just one year lease.
I'm not sure how it works, but I'm going to
give it a shot.
Speaker 4 (35:03):
I want to quickly get to this next question because
it's a version of when we hear all the time,
this is don and cleeves.
Speaker 2 (35:10):
We just inherited some Kroger stock from my aunt who
worked there for a long time and never sold a share.
Do we have to pay taxes on it?
Speaker 1 (35:17):
And how do we know if we should keep it
or sell it?
Speaker 4 (35:20):
So the good news about inheriting stock is the way
the system is set up, you inherit it on a
stepped up basis, meaning just for simple terms, say your
aunt bought that Kroger stock for a dollar a share
right and by the time you inherited it, by the
time she passed away on the day of her death,
it was at ten dollars. If you decide to sell it,
(35:41):
you don't have to pay the gains from that dollar
of when she bought it. It becomes a stepped up
basis of the ten dollars at the time of inheriting it,
and then it becomes a look at your entire portfolio.
Speaker 2 (35:52):
You know.
Speaker 4 (35:52):
One thing that we sometimes worry about is are we
have too much of our portfolio in an individual stock?
Speaker 3 (35:58):
Are we too concentrated? But if you do, you'll like Kroger,
and Kroger makes sense for your portfolio. Maybe you hold
it for a while. That can work too.
Speaker 2 (36:05):
I think if you just ask yourself, if I had,
let's say, inherited one hundred thousand dollars of Kroger stock,
if I had one hundred thousand dollars in my savings account,
would I go out and put that money into Kroger.
If the answer is no, you probably want to sell
it and diversify into you know, just the S and
P five hundred or or you know, a balanced portfolio.
But you know, if that's the case, just realize that
(36:28):
inheritances are not in almost every case taxed, so you
get by Scott free on that. And that stepped up
basis means okay, if you sell it for the same
price that it was at on the date of your
aunt's death, guess what, no tax? Nice?
Speaker 3 (36:41):
Yeah.
Speaker 4 (36:42):
Coming next, we're talking about net worth and its relationship
to your happiness. You're listening to Simply Money presented by
all Worth Financial here in fifty five KRC, the talk
station the path to the White House.
Speaker 1 (36:54):
You get to win their votes the most important election.
Speaker 2 (36:57):
Democrats callage chaos and division plain weird.
Speaker 1 (37:01):
Republicans call it America First.
Speaker 4 (37:03):
Tamila Harris is destroying the American dream.
Speaker 1 (37:06):
We call it news. The information in real time. Another
news update at the top of the hour. Staying updated
on the election, what happens next?
Speaker 3 (37:15):
Understand what's happening, really happening.
Speaker 1 (37:17):
Happens here this November fifty five KRC, the talkstation.
Speaker 4 (37:23):
That next month, I have to choose between groceries for
my kids or gas for my car.
Speaker 1 (37:28):
Talk about it here fifty five KRC, the talk station.
Speaker 4 (37:35):
I've been listening to simply Money presently all Worth Financial,
I mean you Wagner along.
Speaker 3 (37:39):
With Steve Sprovac.
Speaker 4 (37:41):
When it comes to money, can it buy you happiness? Well,
there is a financial advice website called card Rates that
found that Americans actually put a dollar amount on Hey,
if I have this amount of liquid net worth, I
think I'd be pretty happy.
Speaker 2 (37:59):
It might not be able to buy you happiness, but
I've been totally can rent you happiness? But that's a
different survey. No, and this surprised me. This survey said
the average American said, you know what, if I had
a liquid net worth in other words, money and four
oh one k's and savings, that was around the two
hundred thousand dollars range. I think I'm covered. That scares
(38:21):
me because that doesn't go real far. And I'm not
just saying, you know, you buy yachts, and you know,
second third homes and all that kind of No, if
you have two hundred thousand dollars rule of four percent
at the most, you can draw eight thousand dollars a
year off that seven hundred and fifty bucks a month
on top of social Security. It's not a lot of money.
And if you have to go out and buy a car,
(38:42):
which you will in retirement at some point, what's that
forty to fifty grand for something halfway decent that's going
to last you a while? Okay, well, now you're down
one hundred and fifty thousand and four percent of that's
a lot less than seven to fifty a month. I
would shoot your site and set your sits a little
bit higher than two hundred thousand.
Speaker 4 (39:00):
Well, I guess the only thing I can surmise from
this is feeling like you have two hundred thousand dollars
gives a sense of peace of like if.
Speaker 3 (39:07):
An emergency were to come up. But to your point,
once you have to start drawing on that money.
Speaker 4 (39:13):
You know, it becomes a completely different reality because what
you're looking at is your sources of income, right for
most of us, there's not even a pension there, it's
just social security. And then beyond that, right, what it
takes to live off of every month?
Speaker 3 (39:25):
How do you fill that gap? It's you fill it
with what you have saved and is that enough? And
so I don't know. Maybe happiness looks.
Speaker 4 (39:32):
Different when you're in your working years than it does
when you're retired. I know that this study looked at
people between eighteen and forty three. I think probably this
number would be a lot different for people in retirement.
Speaker 2 (39:43):
Oh yeah, yeah. I think if you talk to the
average retiree or somebody within five years or so a retirement,
they'd say, maybe add a zero to that. Okay, it
sounds a million, two million dollars. Sounds like a ton
of money, and it is. But that's really what I
think should be the average person's target from the day
they start working. How do you get there? Well, you
(40:03):
mentioned it earlier. If you can put ten percent of
your money into four oh one k from day one,
you should get there. You should get way past there,
as a matter of fact. But if you're fifty five
and just starting a four to oh one k, it
might be impossible. And you got to just set expectations lower. Here.
Speaker 3 (40:20):
I think is interesting about this research.
Speaker 4 (40:22):
Gen Z said they need a million dollars to be happy,
and like, you know what, my daughter who just love
for college.
Speaker 3 (40:29):
She's in gen Z.
Speaker 4 (40:30):
These kids are bombarded with messages on social media all
the time. You need this, You need that. It doesn't
surprise me that they think a million dollars. But man,
you know, I think this number is very individual for
each of us. And another set of research that I've
seen is that if you can buy things that save
you time that you don't enjoy doing, there's also happiness
(40:51):
in that. Thanks for listening tonight. You've been listening to
Simply Money, presented by all Worth Financial. Here in fifty
five krs the talk station.
Speaker 2 (40:58):
Trump Camalaris is liberal elected Paul or Harris.
Speaker 3 (41:02):
I know Donald Trump's tice.
Speaker 1 (41:04):
Some choices aren't difficult when you look at how bad
they are. You say, you know, I like Trump, but
now I really like Trump because we don't want to
go back. When you have common sense coverage Decision twenty
twenty four.
Speaker 5 (41:20):
If nation got a cancer up happens.
Speaker 1 (41:22):
Here, you have a choice to make fifty five krs
the talk station. You know out of all the things
we can do to
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