Episode Transcript
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Speaker 1 (00:00):
Location, happening in our hometown.
Speaker 2 (00:04):
When it happens, it happens here.
Speaker 1 (00:06):
What is happening here?
Speaker 2 (00:08):
Fifty five krs the talk station.
Speaker 1 (00:17):
Tonight, the so called Big Beautiful Bill passes. Why the
four to one k is just one part of an
overall retirement plan and more. You're listening to Simply Money,
presented by all Worth Financial on Bob Sponseller along with
Brian James Well. Brian, Following weeks of debate and pontificating
and speech giving, the President's Big Beautiful Bill made it
(00:38):
through Congress this morning. Let's remind you every one of
the highlights of this bill. And before we get into that,
we also got some other breaking news this morning. We
got a trade deal with the Vietnam. I think we've
got one with the UK. We're hearing rumors of a
trade deal coming down the pike with India. President's been
(00:59):
pretty pretty busy here. Let's walk through this tax bill, Brian.
Speaker 3 (01:04):
Great so lots of moving parts. This tax bill is
obviously one of the biggest ones that we've frankly ever seen,
and there's a lot of stuff going on inside of it.
Nine hundred pages worth of riveting reading. If you wanted
to partake of that. So first thing, the very first
thing is the goal is to make the original Tax
Cuts and Jobs Act from twenty seventeen. Those tax cuts
(01:27):
are now permanent. We've talked about those pretty much almost
it seems like almost weekly ever since those went into
place in twenty seventeen. Because there was a sunset that
was going to happen in December of this year, meaning
in twenty twenty six, it all went back to the
way it was. So the very first thing it's going
to do is put those back in place, make them permanent.
And in addition, this bill is going to offer a
(01:47):
twenty five thousand dollars deduction on tips and deductions for
overtime pay of twelve and a half thousand per individual
or twenty five thousand per married couple. It's going to
be fascinating, Bob, to see exactly how people find creative ways,
as Americans tend to do, to suddenly label certain income
it's now tips, it's now overtime, and that kind of thing.
I'm really kind of looking forward to the crazy stories
(02:08):
we're gonna hear about that.
Speaker 1 (02:09):
Frankly, Yeah, among many things here, the good thing about
this bill is we finally get some certainty with regard
to tax policy. For example, I was hearing estimates earlier
this morning from some folks that run numbers on this stuff.
If if we had allowed the corporate tax rate, for example,
to jump back up to thirty five percent, that would
have been almost an immediate eighteen percent ding on corporate earnings,
(02:31):
and that would have really disrupted the stock market. So,
you know, as we all know, the stock market loves certainty.
It sounds like we're getting some certainty. And let's face it,
passage of this tax bill has already been priced into
the markets. So I don't think this is a market
moving event. I just think it's kind of a sigh
of relief that at least for now, we've got some
(02:52):
certainty with regard to tax policy.
Speaker 3 (02:54):
Yeah, and then as we're as we're speaking these words,
futures are up. It looks like another, you know, so
far knock one quiet day with the market just going
up a little bit, and this has been we've been
on a bit of a run for this. So, like
you said, the it's not the headlines that are really
driving it. It's the it's it's the fact that it
does seem that we are on a path. We kind
of can see the fog is lifting, really, and that's
(03:15):
really what the market hates. It hates when it can't
see around the corner and it can't see where the
boogeyman is. That's what happens whenever the market panics, like
we saw in early April when all the panic was
over these tariffs. Are these tariff's going to stay around forever?
What's the percent is going to be in which countries
are going to we're going to pick on next? And
all that. That seems to settled down. As you mentioned,
We've got some trade deals apparently in place too, and
(03:36):
so the market is settling down, which is that's a
good thing. Nice to have that.
Speaker 1 (03:39):
Well, some other news we got this morning is we
got a jobs report for June and the US added
one hundred and forty seven thousand jobs. That's above the
estimate of one hundred and ten thousand jobs. That also
kicked the unemployment rate down from four point two percent
to four point one percent. I think this is another
data point, Brian, that probably is going to result in
(04:00):
the FED being on hold at least for July, because
the job number was good they're not going to be
in any hurry to drop interest rates, at least in
my opinion based on that job's number.
Speaker 3 (04:11):
Yeah, because these are signs of an economy that is
still stable. Despite some of the headlines we've seen in
some of the vitriol coming out of DC, the economy
underneath this is still fairly stable. And I can speak
from you know, the the and you probably can't too
bot from the conversations we have with clients every day.
People are I don't know, I'm not even sure if
cautiously optimistic is a word anymore, but that's kind of
(04:33):
what it feels like in terms of despite all the chaos,
despite all the crazy, our phones have been relatively quiet.
So I think your average quiet person out there remains quiet.
They're just not in panic mode despite the you know,
the rhetoric we're getting from our politicians and our media,
who again get compensated for keeping us all terrified and angry.
Speaker 1 (04:52):
Yeah, this tax bill, the child tax credit permanently increases
from twenty two hundred to twenty two hundred dollars for
twenty twenty five, and they're saying they're gonna peg that
future raise in the child's tax credit to inflation. So
that's something that's again permanent the bill.
Speaker 3 (05:13):
Before we move on. I think, I think, Bob, I
think that's a huge topic because that's not something we
do very often. All the time. We slap a number
on something and then we don't account for inflation in
these laws, and ten years later we wonder why something
looks funny.
Speaker 1 (05:26):
You know.
Speaker 3 (05:26):
Look, I look directly at Social Security for that. It
was the nineteen forties where they slapped an eight percent
increase on Social Security going up and now, you know,
eighty ninety years into the future, now we've got problems
that the math doesn't work. So I'm glad to occasionally
see that we do tie things to inflation.
Speaker 1 (05:42):
Yeah. Another thing in this bill that it does allow
taxpayers to deduct up to ten thousand dollars on automobile
loan interest through twenty twenty eight, as long as those
vehicles include US assembled cars, pickup trucks, and motorcycles. That's
a good thing. Yeah, well, let's call that an end though,
is the seventy five hundred dollars tax credit. And again
(06:05):
we talk about this all the time. A credit is
way more valuable than a deduction. The seventy five hundred
dollars credit that drivers of evs have been getting. That's
going to come to an end. And I think that's
why our good friend Elon Musk doesn't like this bill.
There's some other reasons he doesn't like it.
Speaker 3 (06:24):
But right, and one point I want to bring up
about that, Bob, is that this is if you think
about what this is, this is far more this. This
has got far less to do with saving tax payers money.
That's kind of what it looks like on its face.
It's it's a big, big new deduction. I can get cool,
I can save money. But really what it is it's
about driving driving demand for US assembled vehicles. That's really
(06:44):
what this is about. And that's why it is it is.
It's not comparing them side by side. A ten thousand
dollars deduction is not as good as a seventy five
hundred dollars credit. The math isn't going to work if
they if they put this in as a credit, we
simply won't, you know, we won't be able to be
profitable on this as a country. So but that the
driving let's not lose sight of the fact that the
driving demand here is to create demand for US produced vehicles,
(07:05):
which is a good thing.
Speaker 1 (07:06):
Well, in most gas powered vehicles, let's face it, they're
way more affordable to the average American than an EV vehicle.
So you know, this ten thousand dollars deduction is going
to come as more of a benefit to more Americans
than that EV credit. But you know, we don't want
to harp too much on this, Brian. Let's get into
how this is projected to impact the national debt.
Speaker 3 (07:27):
Yeah, so obviously lots of experts weighing in with opinions,
and they generally expect the law, this law to significantly
increase the national debt rel relative to the current law,
and that's because we're basically pulling out the funding mechanism
for things that we're still going to have to pay for.
You know, I would really love to hear that DOJE
has actually done some things and they were going to
have that big receipts wall, and that just seems to
(07:49):
kind of have disappeared. And I'm not hearing any headlines
out of this saying that we are saving. The headlines
are more about how we're going to lower taxes, not
so much how we're somehow going to get out from
under the the payments that we have to make over
the next you know, several decades with regard to to
the overall budget. So the Committee for a Responsible Federal
Budget citing the Congressional Budget Office, that's the group that
(08:11):
kind of keeps score of all these things. But they
estimate that that's going to add three point nine trillion
dollars to this debt over a decade. That's that's I'm
not thrilled with it, Bob. I'm gonna be honest. I
feel like we're focused too much on the short term
gain and not the long term pain. But that's been
the American way for decades. We simply haven't had anybody
who's been willing to pick up a bullhorn and talk
(08:31):
to us like adults in a very loud manner, you know. Unfortunately,
we've been kind of buying the sizzle and not the
stake on this.
Speaker 1 (08:39):
Yeah, And I think the way at least the Republicans
are rationalizing some of this is they wanted to get
this tax bill done, and they are at least claiming
they're gonna come back later on this year and talk
about more cuts to the budget. Getting back to some
of those Doge recommendations that you talked about. But yeah,
people make promises all the time. Let's see what actually
(08:59):
comes down the pike here in the days, weeks and
months to come. You're listening to simply Money presented by
all Worth Financial on Bob Sponseller along with Brian James. Brian,
let's get into a little bit of the details on
this trade deal with Vietnam. Uh, the US is going
to apply a twenty percent duty on Vietnamese imports, and
that's sharply below the initial forty six percent rate that
(09:23):
President Trump had opposed in early April. Meanwhile, US imports
to Vietnam are not going to be subject to tariffs
as well. So this is a good thing. We're allowed
to sell US made stuff into Vietnam. And I think
the other thing is as it relates to China, China
had been kind of backdooring, you know, a back door
(09:44):
way around their tariffs, you know, by shipping things to
Vietnam and then Vietnam shipping them to the US. And
this trade deal puts a puts a into some of that,
you know, the forty percent duty on products that originally
came from any other country. But we're sent to Vietnam
for final shipment to US, that's gonna stay in place,
(10:06):
So a little progress on that front. Bran.
Speaker 3 (10:09):
Yeah, and that's an idea known as trans shipping. Well,
if you're gonna charge me a tariff then to import
directly from my country, then I'm gonna dump it in
somebody else who can be kind of a middleman, and
we'll figure out a way to pay them and keep
moving forward but avoid the overall sheriffs at the highest level.
So Vietnam is one of the few countries that did
strike a trade deal director with White House. While the
(10:30):
clock is ticking down on Trump's ninety day temporary reprieve
that we've been that seems to be the thing, the
step we always take during these So, you know, the
more deals we get like this, hopefully the more other
countries will come to the table and be wanting to
put something down in writing and kind of move on
from this whole all this chaos.
Speaker 1 (10:47):
Yeah, I think it'll be important for us to get
something done with the EU, something permanent done with China,
and then obviously Canada and Mexico. So we'll see what
happens here all right. Coming up next, the blind spot
in millions of American households that could cost your family everything.
You're listening to Simply Money, presented by all Worth Financial
(11:08):
on fifty five KRC, the talk Station, Mark Levin.
Speaker 4 (11:13):
Yes, there are certain issues that matter to us all
that are not addressed as we would wish in this bill.
But there are many, many, very important provisions in this
bill that must be enacted.
Speaker 1 (11:21):
There are Medicaid issues.
Speaker 4 (11:22):
We don't want to legal aliens getting medicaid and we
don't want able bodied men and women who refuse to
put in twenty hours a week getting medicaid either.
Speaker 1 (11:30):
That's not what medicaid was ever for.
Speaker 4 (11:32):
Donald Trump has done everything humanly possible to get the
very best Billy can. We can sit here and twill
our thumbs and whine about it, but this.
Speaker 2 (11:40):
Is where we are. This is what we had.
Speaker 5 (11:42):
Mark Levin tonight at ten o six on fifty five
KRS The talk station Tonight at ten o six on
fifty five KRS, the talk station.
Speaker 6 (11:54):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intent 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 1 (12:13):
You're listening to Simply Money, presented by all Worth Financial
Bob Sponsorer along with Brian James. If you can't listen
to Simply Money every night, subscribe and get our daily podcast.
Just search Simply Money on the iHeart app or wherever
you find your podcasts. Is your four oh one K
the best place to store your money? We're gonna explore
(12:34):
that coming up next at six point forty three. All right, Brian,
here's a scary thought. Nearly half of all Americans have
no life insurance, and for that half that do a
lot of them are dangerously under insured. Let's get into
some of those numbers.
Speaker 3 (12:52):
Well, this is important because obviously, you know, if somebody
in your family relies on your income, spouse, kids, or
you know, whoever else is counting on you to get
out of bed and go to work every day, you know,
let alone, whatever debt you'd be leaving behind and financial expenses.
You know, everybody needs to have some kind of protection
in place. Lots of people just avoid this conversation because
it's stressful. I don't want to I don't want to
(13:14):
think about this. I don't want to think about losing
somebody I care about. But I can tell you what
is far more stressful than these these kind of sometimes
awkward conversations is actually living through it, you know, having
had a lot of clients that you know, not everybody
gets to call their shot. We don't always get to,
you know, kind of have things work out the way
we want. So making sure that your your kids and
your family are in a good spot, obviously is extremely important.
(13:36):
So for most people, Bob, the employer provided life insurance.
That's usually a part of this, but there's some moving
parts of this. It's usual that's only usually going to
give you one or two times your salary, unless you've
chosen more. Oftentimes you've have the ability to pick up
to say five times your salary, which you got to
pay a premium for it, you know, So if you're
making a hundred thousand dollars a year, that's probably a
decent benefit. But at the same time, if you're if
(13:58):
you're a forty year old and you've got young kids
who are going to go to college someday hopefully, and
you've also got maybe a mortgage in the mix, then
some ax of your salary is probably not nearly enough
because we got a lot of years of inflation building
on top of those expenses.
Speaker 1 (14:14):
Well, here's where I'm going to get on my soapbox
for a minute, Brian, because you know, for anybody, and
this is for people that are in their late twenties,
early thirties, had their first kid, got married, and for
those that don't listen to the show that are that
age parents out there that have kids that age. This
is a pretty simple thing to take care of. And
I'll just say it's a basic part of being a
(14:36):
responsible adult, meaning it is not very expensive at all
to go out and get a big slug of thirty
year convertible term insurance protecting your insurability, buy a million,
two million dollars worth of coverage, and make sure that
you've covered your mortgage debt, the cost of your kids
(14:57):
going to college and everything else you do. Pass away early. Again,
this is just the basic part of being a responsible
parent and young adult, and it's not that hard and
it's not that expensive to do.
Speaker 3 (15:11):
Yeah, Bob, I'm gonna drag you off course slightly here
for a second. Go for it. It just occurred to me
based on a conversation with a client a few days ago.
So I've come to be informed that Fifth Third, that
venerable old bank that we all know and love that's
based here in Cincinnati, right on Fountain Square, the living
room of Cincinnati. Uh, fifth Third has put some rules
in place, really really limiting the whole work from home option. Basically,
(15:33):
they're they're I think they're effectively causing a full scale
return to office type of situation. I don't know. I
don't know everything about it, but I know how it
affected one of my clients. One of my clients had
moved out and when this became clear, uh, moved a
home that they really loved and out in the kind
of out in the country a few hours away as
kind of a baby step into retirement. When now all
of a sudden, they've been informed that their their their
(15:53):
job is gonna be eliminated unless they return, and then
their life situation. They're gonna be fine, that's not what
it's about. But they're not getting to call their shop.
And it occurred to me if this is happening to
other people at Fifth Third who are relying on their
employer based life insurance, well you get that severance package
that might be an okay package, But remember your life
insurance just went poof if that's all you have. So
if you are a younger person and you're affected by this,
(16:16):
then you should really really make sure that shortly after
you understand that severance package, you need to make sure
that you have insurance coverage in the background. And I
would go ahead and get something independent of any kind
of employer, use the employer as a supplement, not the
other way around. Some kind of term insurance that covers
your actual needs, and then use the employer again as
a supplement.
Speaker 1 (16:35):
Yeah, great point. Another thing that comes up all the time.
And Brian, I've seen this for years and years and years,
and I run into it all the time. You know,
as soon as somebody has a job, people figure out
that you make a paycheck, along comes a commission based
life insurance salesman to sell you, you know, one hundred, two
(16:56):
hundred thousand dollars worth of whole life insurance. And while
all that's fine, the reason they're selling you that whole
life insurance is they're making a big fat commission to
do it. And what we find is these couples don't
need one hundred or two hundred thousand dollars of insurance.
They need a million or two million dollars of insurance.
And you can get that job done much cheaper and
(17:18):
much more efficiently by again going out and doing a
twenty to thirty year level term policy that is convertible
to permitted insurance if you need to convert it down
the road. I've had more conversations than I care to
count about that whole topic. And that's just a watch
out out there. Watch out for the people that are
just trying to hit a sales quota by making you
(17:41):
feel like you've checked the insurance box when you walk
away from that whole transaction, a lot poor and way
under insured.
Speaker 3 (17:49):
Yeah, and I would tackle on it that. A lot
of times these sales pitches come along with and I'm
not basking insurance. Insurance is an extremely important tool for
the right job. But a lot of times these sales
pitches come along with concept that this can be a
quote unquote super wroth ira from you one stop shopping,
You get cash value increase, you get tax free distributions,
and you get death benefit. What else could we need?
Speaker 1 (18:10):
What else?
Speaker 3 (18:11):
What more can you ask for?
Speaker 1 (18:12):
Right?
Speaker 3 (18:12):
It's all wrapped into one package. Well, the problem with
this is there's really only work in our beneficial if
you have the ability to put an enormous amount of
money into them. There are places, there are situations where
this makes sense. These types of strategies, taking loans against
the death benefit and making sure you die with it
in place. Right, these are all the things that don't
come in the sales pitch. But if you're somebody who
(18:33):
is being pitched the idea that you're in your mid
twenties and you got somebody for this, usually how it goes, right, Bob,
you got somebody who went to college with who is
working for an insurance company, and all of a sudden they,
instead of a regular wroth IRA and an index mutual
fund or something, they're telling you you need whole life insurance. Meanwhile,
you don't have kids in a family and those other
kinds of things. Yet your seven thousand bucks is going
to be far better off at a straight up wroth
IRA than it is inside a cash value life insurance policy.
(18:55):
On the other hand, you own a business generate, it's
lots of cash flow. You can afford to put away
two three hundred thousand dollars a year, that is a
very different situation. That can be a very valid solution,
but those are extremely different situations.
Speaker 1 (19:07):
Well, in terms of calculating how much insurance you need
and for how long you need it, that's where a
good financial plan comes into play. Where we're layering on
insurance needs, retirement savings needs, making sure you're taking advantage
of your four to one K match, taking advantage of
raw iras, all the tools out there that can hopefully
get to you to a point where by the time
(19:29):
you get to your late fifties early sixties, you're able
to self insure because you've put away enough money for
retirement so that you don't need life insurance anymore to
you know, cover the stuff that you need life insurance
for when you're in your twenties or thirties. Well, what
does that all require? An actual financial plan, and any
good fiduciary can sit down and map this out for you.
(19:51):
So you're buying the right kind of insurance for the
right number of years at the right cost, and you're
allocating all of your dollars appropriately so you're not insurance
poor and underfunding your retirement plan.
Speaker 3 (20:04):
Yeah, and I think tie the death benefit to the
timing of the needs. You can pinpoint the day your
mortgage is going to be gone. You can roughly pinpoint
the day the kids are going to get through college.
The harder one is income replacement for a spouse. That's
a little tougher to get to, but again that's where
financial plan can help you to the math.
Speaker 1 (20:20):
Here's the all Worth advice. Be careful when buying life insurance.
There are policies out there that are more about paying
big commissions to salespeople than actually protecting your family. Make
sure the coverage fits your needs, not theirs. Coming up next,
our real estate expert Michelle Sloan is in to talk
about protecting our home and saving a few bucks in
(20:41):
the process. You're listening to Simply Money, presented by all
Worth Financial on fifty five KRC, the Talk station.
Speaker 2 (20:49):
This is no small matter. Big things are happening. These
are big events.
Speaker 7 (20:53):
Some might even say check in for the latest on
every big story, the one Big Beautiful Bill. Fifty five KRC,
the talk station, texting en rules you.
Speaker 2 (21:05):
I have KRC, an iHeartRadio station.
Speaker 1 (21:13):
You're listening to Simply Money, presented by all Worth Financial
on Bob Sponsler along with Brian James joined tonight by
our real estate expert, Michelle Sloan, owner of Remax Time. Michelle,
thanks as always for making time for us, and we're
going to talk about protecting your home from the summer
heat and just overall home protection. And you got something
(21:35):
you like to call a home protection checklist. Walk us
through what we ought to be doing this summer as homeowners.
Speaker 3 (21:42):
Michelle, you know what, you.
Speaker 8 (21:43):
Don't think about the heat as much as protecting your
home from the winter elements, which we often talk about.
But in the summer, there are things that you should
be doing as a homeowner to protect your investment, and
your home is your biggest investment. You want to start
with the exterior, the structure of your home. Make sure
(22:05):
that and we've had a few weeks in June, expect
more of this to come anytime. The heat can be
so unbearable and the humidity in our homes, high humidity
in the Cincinnati market really does affect our homes on
the inside and the outside, and so you want to
(22:25):
protect your home. You want to inspect your shingles on
your roof, make sure you're not seeing any curling or
cracking or blistering. You want to make sure that your
sighting is not warping. And now some people will put
there and this is something that I see quite often.
If you have a grill on the outside of your
home and you set it next to your sighting, what's
(22:48):
going to happen. It's going to melt, and so that's
a problem. Now, granted, most often the heat is not
going to get as hot as a grill, but at
the same time, it's the same premise. There's different sides
of our house. I know in the front of my
home we get that afternoon sun. My front door feels
(23:11):
like it's on fire if you try to touch it.
So that kind of heat, that intense heat, really does
affect your home. And you want to be looking at
your entire structure to make sure there's no damage as
a result of it, because if there is, you want
there are some things that you can do. The one
thing and then I'll let I'll let you get in
a question. I promise I want you to look at
(23:34):
in your lower level, if you have a basement or
a crawl space. There are always cracks. There are natural
cracks in concrete. But if you see those cracks separate
because we have a long period of heavy rains or
heavy drought, which may happen as well, you may see
some of those cracks in your foundation. Expand this. This
(23:59):
is a test that I can give you, that I
think is the best advice that I can give you
is put a little marker, mark the space.
Speaker 9 (24:07):
And note how big.
Speaker 8 (24:10):
That crack is now, today, tonight, tomorrow, and then go
back and check it. If there's no change, you're good
because if there's no change, you probably don't have water
in your lower level. You haven't had any breach in
your foundation. But don't be afraid to mark on your walls.
Put a piece of tape on that and market and
(24:31):
put Okay, it's this big today. If that changes later
this summer or next year, you're going to know that
it's changed, and you may need to talk to somebody
about taking a look at your foundation and making sure
that again that's the foundation of your property, the foundation
of your investment.
Speaker 3 (24:50):
Okay, Michelle, I want to pivot a little bit because
I've had a lot of conversations lately with people who
are talking about selling their homes. Maybe they're retired now
it's time to downsize, and that kind of thing. The
the thing that stops him is, oh, we got to
start getting quotes. We know we got to put some
money into this. And I'm their financial planner. I go, okay,
we got an expense coming up. What do we think
that is? Well, I have no idea. I haven't got
any quotes yet. I just know it's going to be expensive.
(25:10):
So that the cycle is that that tax two or
three years onto somebody's plan because they drag their feet
on fixing these things. So how can somebody prioritize one
of the things that really need to be done, Like
do I need to replace my you know, my original
builder windows from twenty years ago and put some more
upgraded ones in. Does that affect the obviously it makes
it more saleable, But I'm not going to get that
money back. What are the things I can do where
(25:31):
I can be reasonably confident I'm going to get the
money back in the shorter run.
Speaker 9 (25:35):
Well, the couple of things.
Speaker 8 (25:36):
If you're talking about windows, if you have windows that
are original to the home thirty years old, as long
as you don't have as long as here here's the thing.
As long as you have good calking around the exterior
of the windows, and you don't have any of those
air gaps. As long as the seals on those windows
(25:57):
have not been compromised, you don't have any windows. You
can make repairs. Now, you're right, You're probably not gonna
spend twenty thousand dollars or more getting new windows in
your home prior to selling. That's not one of those
things that we do. But the best thing that you
can do, honestly is talk to your real estate agent
because I'm gonna go through the hall.
Speaker 3 (26:19):
That's what I'm doing. We're doing that right now, weren't.
Speaker 8 (26:20):
We know it's good, it's really good. But I'm going
to help you prioritize. We're gonna look at the cosmetic stuff.
We're going to look at the leaks that are happening.
Those have to be fixed. If you have any leaks,
air gaps, things of that nature. That type of maintenance
absolutely should be done. Must be done because it's gonna
come up in a home inspection. You're gonna want to
(26:43):
do those home maintenance items that I harp on all
the time. If you haven't had your HVAC checked cleaned
service in the last ten years, and I've seen this,
I've seen some people when they pull out they don't
even know they have an air filter in their furnace
or the VAC system and I pull it out and
it is so clogged. You know, the efficiency there is
(27:06):
right out the window. And so you want to make
sure that your major mechanicals are working properly as far
as windows are concerned.
Speaker 9 (27:14):
Fix what you can fix, and.
Speaker 8 (27:17):
At that point, if you're ready to sell, you know
you're just going to have to You're not going to
spend that kind of money. So I always say, if
you spend five thousand dollars to fix up your home,
you are likely to get about ten thousand dollars back
in value if you're focusing on the right items. And
some of those right items are again making sure that
(27:39):
your roof is in good condition. Roof is a big one.
Roof is huge. Just patching a roof. I would actually
say that if your roof is at the end of
its life and maybe you have some shingles missing, replacing
your roof, while it's a big expense, you will get
your return on that investment because you are going to
(28:00):
have insurance companies don't want to ensure.
Speaker 9 (28:04):
A roof that is old.
Speaker 8 (28:06):
There's just there's a lot that goes into the roof,
so I would focus and prioritize a roof over windows.
Speaker 9 (28:13):
Does that help?
Speaker 3 (28:15):
Yes, very helpful.
Speaker 1 (28:15):
Appreciate that, all right, Michelle, I want to talk about
every homeowner's favorite topic, and that's mold. You've talked about
heat and humidity and leaky roofs and cracks in the basements.
Where do you tend to find that the first first
appearance of mold happens. Is it still in the basement
or oftentimes is it behind that melted vinyl sighting, or
(28:38):
is it up in the attic? What do you tend
to find when you actually go through homes?
Speaker 9 (28:42):
You know, that's interesting.
Speaker 8 (28:43):
I do think that most of our homes in Cincinnati
are going to find mold issues in the lower level
most likely. And so it depends on the type of
home that you have. If you have a block foundation,
or you know, some of our older homes have even
stone foundations. If there's not enough airflow down in that
(29:04):
lower level you are ten, you will tend to have mold.
It will smell a little musty, you know. I've got that.
I've got the nose like a dog when I go
into people's homes, I'm like Ooh, we have some issues
to take care of. The nice thing is everybody hears
the word mold and they freak out and they think
it's going to be twenty thousand dollars or more. I
(29:26):
would have always ask you to step back and realize
that safety is the number one priority in your home
and having mold can cause illnesses, and so you want
to have a nice, clean, dry home.
Speaker 9 (29:42):
A dehumidifier.
Speaker 8 (29:44):
Sometimes people put that dehumidifier in, especially when we have
the high humidity.
Speaker 9 (29:49):
And run it all the time. That's not a bad thing,
that's a good thing.
Speaker 8 (29:53):
And so if you have a buyer that comes in
and says, why A, you're running that humidifier all the time,
because my basement is just naturally and again that's the word,
it's just naturally a little bit damp. And so I'm
making sure that I'm getting ahead of this problem ahead
of time.
Speaker 1 (30:10):
Sounds great? All right? Great stuff is always from our
real estate expert, Michelle Sloan, owner of Remax Time. Thanks Michelle.
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC the talk station.
Speaker 2 (30:24):
This story he seeks peace and Iran should take that
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From what's happening on the ground we devastated the Iranian
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To what's happening at NATO. Allen Weld is in big Top.
The world is listening.
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And the entire world is watching.
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Check in at the top of the hour. The corrects
we face are too serious. Fifty five krs.
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The talk station his Ryan tem Us here with siins
are welcome to here.
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I do think he is too old to run in
twenty twenty five.
Speaker 1 (31:00):
Fifty five krs.
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The talkstation.
Speaker 1 (31:07):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob sponsorller along with Brian James. Do you have
a financial question for us? There's a red button you
can click while you're listening to the show right there
on the iHeart app. Simply record your question and it'll
come straight to us. There's a recent headline out there
that we came across and it did spark our interests.
(31:27):
Quote four to oh one k's weren't built for today's economy.
That almost makes me chuckle. Brian. It comes from a
recent Barons article, and while the article is focused on
gen z and younger investors who, let's face it, they
do navigate gig work and they job hop often. It
does raise a bigger, more important question for every investor.
(31:51):
Is your four to oh one K actually the best
place to put your money or is it just the
default option. Let's get into that a little bit, Brian,
because there's a lot of moving art scare that are
worth talking about.
Speaker 3 (32:01):
Yeah, so, so a little bit of history. First of all,
where'd the four oh one K from? It hasn't come from.
It hasn't always been in existence. So the four oh
one K was introduced in the early nineteen eighties, and
this is back when pensions were kind of ruled the roost.
You know, your grandparents, your great grandparents most likely worked
in some organization that offered them a pension. Meaning when
you retire, we'll do some math based off of how
many years you worked and how much you earned and
(32:23):
so forth, and then we will give you a calculated
amount every month for the rest of your life. Well
over time, as we as the United States became more
business friendly, really starting in the eighties with the Reagan administration,
it became evident that pensions were extremely expensive because you
were basically burdening yourself as a business with somebody's entire
remaining lifetime versus just worrying about them while they're working
(32:44):
for you. And so slowly pensions started to get phased out.
They were replaced with four oh one k's and basically
meaning you can save your own dollars and we'll give
you incentive to do that by throwing more on top
of it, and you getting too invest in the market,
and it's all tax to fered and so forth. So
this removed the burden from the employer and put it
on the employee to make sure they're managing their four
oh one case properly. So that's kind of how we
(33:05):
got here. So what does work well? Before we go
bashing four a one care, there are obviously some good
things about It's easy, right, I get paid every week,
every couple weeks, every month or whatever. That's easy. All
I'd had to do is pick a percentage that works
for my budget and it just happens in the background.
I get tax deferred growth. I'm not going to pay
any taxes on this until I pull the money out.
And even nowadays I have a raw option where I
(33:25):
could choose to pay taxes. Now let it grow tax
free and then pull it out tax free. That's pretty cool.
In addition, of course, as we mentioned, there's an employer match.
Sometimes that's profit sharing. Sometimes it's a you know, a
percentage match. You put in, you put in three percent,
we'll match at one hundred percent. Sometimes it's more than that.
And plus it's the it's the best thing going in
terms of the dollar amounts that you can put in.
So the max for everybody here in twenty twenty five
(33:47):
is twenty three thousand for everybody under the son who
can fog a mere If you're fifty or older, you
get to throw in another seventy five hundred dollars in
the form of a catchup. So we're not bashing four
oh one k's. But there are some some pieces to
this where maybe some changes are perhaps appropriate.
Speaker 1 (34:05):
Well, and I'm speaking to younger folks out there, and
I've told this story a couple times, but I go
back to win my oar middle son, who got a
pretty good job with a nice paycheck and a four
to one K plan. It took me. I had to
track him down for darn near a year, Brian, just
to get him to participate in the four to oh
one K. And the big emphasis I was putting there
(34:27):
on there was you're walking past that fifty percent match.
It's free money. It's free money. And finally even my
own son could understand what free money meant, and he
finally signed up and contributed up to the matching amount,
and he's been shocked at how quickly and by how
much the money has accumulated. So to all the young
(34:49):
folks out there that don't think it matters to get
started in your twenties, late twenties, or you gotta get
involved in this thing at least up to the level
of the company match, Brian, talk about after you get
to that level, what should folks be thinking about those
younger folks that are saving You know, when you compare
Wroth Ira versus four o one K, or just use
(35:11):
the Wroth four oh one K, what are you telling
folks that are in that younger generation.
Speaker 3 (35:15):
Yeah, and let's not lose sight of the mean goal here.
The mean goal is savings here. So first of all,
start with how much can I afford to put away
and then after that figure out where it should go.
So ideally love to see people at ten percent want
to see double digits there if you can afford that
at all. If you can get to twenty percent and
make your budget, you know, work without over decades, you're
going to be rock solid fine if you can do
(35:35):
that for a long time. But ten percent is a
good a good place to start. Once you've figured out
how to float your boat with your paying your bills
and putting moneyway, then you can worry about whether I
should do traditional versus roth Should I do the four
oh one K? Should I?
Speaker 4 (35:48):
You know?
Speaker 3 (35:48):
Should I?
Speaker 2 (35:48):
Not?
Speaker 1 (35:49):
So?
Speaker 3 (35:49):
What you'll see in a lot of blogs and things
out there that provide financial advice to younger people, the
general rule of thumb is throw you throw your money
into your four o one K up to your match,
and then then switch to an ira, traditional ira or
wroth iray. There are income limitations for those. You have
to be careful. You might run into it. You might
hit a ceiling in an ira sooner than you do
(36:10):
in your four oh one K. And once you've maxed
out the roth ira or the traditional ira, then come
back to your four o one k. Keep put money
on the time, and I don't really argue with that.
If you're somebody who you understand the investment world and
you want to take more control than a four to
one K will allow you, because four oh one ks
by their very nature have to be kind of simple, right,
because we're basically giving everybody under the sun, who you know,
(36:31):
maybe that doesn't have that much investment experience and isn't
that interested in learning. Well, you're asking them to take
control their entire retirement nest egg and make good investment decisions.
And how often, Bob, do we see it where somebody
made some bad decisions long long ago, or worse, no
decision and the whole thing sat in cash. So there
are some risk there too, But we want to make
sure that everybody regardless, just make sure you're doing it.
(36:52):
Get the money going in there, then you can worry
about the exact right structure for where you think you
need to be.
Speaker 1 (36:58):
Yeah, And in the minute or so we got left
with this segment, I think let's get into what some
of the downfalls potentially are to putting all your eggs
in that four oh one K basket. And this is
for people that are just deferring taxes, deferring taxes, putting
it all in four to one K, it does limit
your flexibility down the road in terms of income planning.
(37:20):
So I think the point that article is making. You know,
don't put yourself in a situation where you can unintentionally
jump tax brackets during retirement because all your money is
in the four to one K as opposed to having
some in taxable accounts some in rowth accounts. Have an
opportunity to mix and match your income sources as you
(37:41):
head into retirement. Here's the all Worth advice. The four
to one K is a great tool, but it's not
the only one in the tool shed. Coming up next,
we've got Brian's bottom line where he's going to spend
a little time educating us on long term care planning.
You're listening to Simply Money presented by all Work Financial
on fifty five KRC, the talk station.
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You're listening to simply money presented by all words financial arm.
Bob sponsor along with Brian James, and it's time for
Brian's bottom line. Brian lay it on us about some
long term care thoughts today.
Speaker 3 (39:01):
It's Abob. I like to use these little segments we
do where it's basically, what have Brian and Bob been
up to this week? And this week for whatever reason,
with all my clients, I've been talking about long term care.
It's just a subject that has come up a lot.
So long term care is the definition of it is
help with your activities of daily living. This will come
up when you do your research bathing, dressing, eating, can
I get out of bed and so forth. It's not
necessarily just nursing homes. This can happen in home setting
(39:25):
and assisted living, skilled nursing facilities, and not just for
the elderly. Necessarily, about forty percent of people receiving long
term care are underage sixty five. Accidents, chronic illness, heaven
forbid that the big ones, Parkinson's, Alzheimer's, those can hit
anybody at any time. And obviously we're talking about this
because there's a financial cost to it. As of twenty
twenty four, the average annual cost of a nursing home,
(39:47):
a private nursing home meaning a nice place that you
can be comfortable in about one hundred and fifteen thousand dollars.
If you're taking in home care, that's about sixty two
thousand dollars a year. And the artist formerly known as
General Electric now Worth. They project these numbers to double
by twenty forty five if these trends stay in place.
And here's a big whopper of a detail. Some people
don't know. Medicare do not does not cover long term care.
(40:11):
Medicare will only pick up about the first thirty days.
Medicare is what we all get when we're sixty five.
Those of us are eligible, which is, you know, unless
you're on a pension or something like that, federal pension.
But the Medicaid that's for the indigen it's in the
headlines a lot lately. That's for if you've got no
other options when you've spent down everything. Medicaid will help
you out with that. But regardless, the reason I want
to talk about this today is there is a lot
(40:33):
of people ask the question, and I want to give
some dollar amounts. If you want to buy long term
care insurance to transfer this risk, then you're looking at
probably about maybe a five six thousand dollars expense on
an annual basis for an individual person, double that for
a married couple. That's for a policy that will cover
pretty much most of the cost and have inflation built in.
So obviously that's a pretty significant chunk. And I don't
(40:54):
believe there are any insurance companies anymore who can claim
to not have raised their premiums. One of my favorite
things to do, though, is we run across somebody who's
got an old cash value life insurance policy with a
big pile of money in it. Sometimes we can re
route those and just redeploy it. I don't need death
benefit anymore, but I might need long term care, so
you can potentially do that in a tax free manner,
(41:15):
move the money from one to the other so lots
of opportunities. It doesn't always have to be write a
check every year for long term care for the rest
of your life. All right, good stuff as always, Brian,
thanks for listening.
Speaker 1 (41:24):
You've been listening to Simply Money, presented by all Worth
Financial on fifty five KRC the Talk station.
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Speaker 1 (00:17):
Tonight, the so called Big Beautiful Bill passes. Why the
four to one k is just one part of an
overall retirement plan and more. You're listening to Simply Money,
presented by all Worth Financial on Bob Sponseller along with
Brian James Well. Brian, Following weeks of debate and pontificating
and speech giving, the President's Big Beautiful Bill made it
(00:38):
through Congress this morning. Let's remind you every one of
the highlights of this bill. And before we get into that,
we also got some other breaking news this morning. We
got a trade deal with the Vietnam. I think we've
got one with the UK. We're hearing rumors of a
trade deal coming down the pike with India. President's been
(00:59):
pretty pretty busy here. Let's walk through this tax bill, Brian.
Speaker 3 (01:04):
Great so lots of moving parts. This tax bill is
obviously one of the biggest ones that we've frankly ever seen,
and there's a lot of stuff going on inside of it.
Nine hundred pages worth of riveting reading. If you wanted
to partake of that. So first thing, the very first
thing is the goal is to make the original Tax
Cuts and Jobs Act from twenty seventeen. Those tax cuts
(01:27):
are now permanent. We've talked about those pretty much almost
it seems like almost weekly ever since those went into
place in twenty seventeen. Because there was a sunset that
was going to happen in December of this year, meaning
in twenty twenty six, it all went back to the
way it was. So the very first thing it's going
to do is put those back in place, make them permanent.
And in addition, this bill is going to offer a
(01:47):
twenty five thousand dollars deduction on tips and deductions for
overtime pay of twelve and a half thousand per individual
or twenty five thousand per married couple. It's going to
be fascinating, Bob, to see exactly how people find creative ways,
as Americans tend to do, to suddenly label certain income
it's now tips, it's now overtime, and that kind of thing.
I'm really kind of looking forward to the crazy stories
(02:08):
we're gonna hear about that.
Speaker 1 (02:09):
Frankly, Yeah, among many things here, the good thing about
this bill is we finally get some certainty with regard
to tax policy. For example, I was hearing estimates earlier
this morning from some folks that run numbers on this stuff.
If if we had allowed the corporate tax rate, for example,
to jump back up to thirty five percent, that would
have been almost an immediate eighteen percent ding on corporate earnings,
(02:31):
and that would have really disrupted the stock market. So,
you know, as we all know, the stock market loves certainty.
It sounds like we're getting some certainty. And let's face it,
passage of this tax bill has already been priced into
the markets. So I don't think this is a market
moving event. I just think it's kind of a sigh
of relief that at least for now, we've got some
(02:52):
certainty with regard to tax policy.
Speaker 3 (02:54):
Yeah, and then as we're as we're speaking these words,
futures are up. It looks like another, you know, so
far knock one quiet day with the market just going
up a little bit, and this has been we've been
on a bit of a run for this. So, like
you said, the it's not the headlines that are really
driving it. It's the it's it's the fact that it
does seem that we are on a path. We kind
of can see the fog is lifting, really, and that's
(03:15):
really what the market hates. It hates when it can't
see around the corner and it can't see where the
boogeyman is. That's what happens whenever the market panics, like
we saw in early April when all the panic was
over these tariffs. Are these tariff's going to stay around forever?
What's the percent is going to be in which countries
are going to we're going to pick on next? And
all that. That seems to settled down. As you mentioned,
We've got some trade deals apparently in place too, and
(03:36):
so the market is settling down, which is that's a
good thing. Nice to have that.
Speaker 1 (03:39):
Well, some other news we got this morning is we
got a jobs report for June and the US added
one hundred and forty seven thousand jobs. That's above the
estimate of one hundred and ten thousand jobs. That also
kicked the unemployment rate down from four point two percent
to four point one percent. I think this is another
data point, Brian, that probably is going to result in
(04:00):
the FED being on hold at least for July, because
the job number was good they're not going to be
in any hurry to drop interest rates, at least in
my opinion based on that job's number.
Speaker 3 (04:11):
Yeah, because these are signs of an economy that is
still stable. Despite some of the headlines we've seen in
some of the vitriol coming out of DC, the economy
underneath this is still fairly stable. And I can speak
from you know, the the and you probably can't too
bot from the conversations we have with clients every day.
People are I don't know, I'm not even sure if
cautiously optimistic is a word anymore, but that's kind of
(04:33):
what it feels like in terms of despite all the chaos,
despite all the crazy, our phones have been relatively quiet.
So I think your average quiet person out there remains quiet.
They're just not in panic mode despite the you know,
the rhetoric we're getting from our politicians and our media,
who again get compensated for keeping us all terrified and angry.
Speaker 1 (04:52):
Yeah, this tax bill, the child tax credit permanently increases
from twenty two hundred to twenty two hundred dollars for
twenty twenty five, and they're saying they're gonna peg that
future raise in the child's tax credit to inflation. So
that's something that's again permanent the bill.
Speaker 3 (05:13):
Before we move on. I think, I think, Bob, I
think that's a huge topic because that's not something we
do very often. All the time. We slap a number
on something and then we don't account for inflation in
these laws, and ten years later we wonder why something
looks funny.
Speaker 1 (05:26):
You know.
Speaker 3 (05:26):
Look, I look directly at Social Security for that. It
was the nineteen forties where they slapped an eight percent
increase on Social Security going up and now, you know,
eighty ninety years into the future, now we've got problems
that the math doesn't work. So I'm glad to occasionally
see that we do tie things to inflation.
Speaker 1 (05:42):
Yeah. Another thing in this bill that it does allow
taxpayers to deduct up to ten thousand dollars on automobile
loan interest through twenty twenty eight, as long as those
vehicles include US assembled cars, pickup trucks, and motorcycles. That's
a good thing. Yeah, well, let's call that an end though,
is the seventy five hundred dollars tax credit. And again
(06:05):
we talk about this all the time. A credit is
way more valuable than a deduction. The seventy five hundred
dollars credit that drivers of evs have been getting. That's
going to come to an end. And I think that's
why our good friend Elon Musk doesn't like this bill.
There's some other reasons he doesn't like it.
Speaker 3 (06:24):
But right, and one point I want to bring up
about that, Bob, is that this is if you think
about what this is, this is far more this. This
has got far less to do with saving tax payers money.
That's kind of what it looks like on its face.
It's it's a big, big new deduction. I can get cool,
I can save money. But really what it is it's
about driving driving demand for US assembled vehicles. That's really
(06:44):
what this is about. And that's why it is it is.
It's not comparing them side by side. A ten thousand
dollars deduction is not as good as a seventy five
hundred dollars credit. The math isn't going to work if
they if they put this in as a credit, we
simply won't, you know, we won't be able to be
profitable on this as a country. So but that the
driving let's not lose sight of the fact that the
driving demand here is to create demand for US produced vehicles,
(07:05):
which is a good thing.
Speaker 1 (07:06):
Well, in most gas powered vehicles, let's face it, they're
way more affordable to the average American than an EV vehicle.
So you know, this ten thousand dollars deduction is going
to come as more of a benefit to more Americans
than that EV credit. But you know, we don't want
to harp too much on this, Brian. Let's get into
how this is projected to impact the national debt.
Speaker 3 (07:27):
Yeah, so obviously lots of experts weighing in with opinions,
and they generally expect the law, this law to significantly
increase the national debt rel relative to the current law,
and that's because we're basically pulling out the funding mechanism
for things that we're still going to have to pay for.
You know, I would really love to hear that DOJE
has actually done some things and they were going to
have that big receipts wall, and that just seems to
(07:49):
kind of have disappeared. And I'm not hearing any headlines
out of this saying that we are saving. The headlines
are more about how we're going to lower taxes, not
so much how we're somehow going to get out from
under the the payments that we have to make over
the next you know, several decades with regard to to
the overall budget. So the Committee for a Responsible Federal
Budget citing the Congressional Budget Office, that's the group that
(08:11):
kind of keeps score of all these things. But they
estimate that that's going to add three point nine trillion
dollars to this debt over a decade. That's that's I'm
not thrilled with it, Bob. I'm gonna be honest. I
feel like we're focused too much on the short term
gain and not the long term pain. But that's been
the American way for decades. We simply haven't had anybody
who's been willing to pick up a bullhorn and talk
(08:31):
to us like adults in a very loud manner, you know. Unfortunately,
we've been kind of buying the sizzle and not the
stake on this.
Speaker 1 (08:39):
Yeah, And I think the way at least the Republicans
are rationalizing some of this is they wanted to get
this tax bill done, and they are at least claiming
they're gonna come back later on this year and talk
about more cuts to the budget. Getting back to some
of those Doge recommendations that you talked about. But yeah,
people make promises all the time. Let's see what actually
(08:59):
comes down the pike here in the days, weeks and
months to come. You're listening to simply Money presented by
all Worth Financial on Bob Sponseller along with Brian James. Brian,
let's get into a little bit of the details on
this trade deal with Vietnam. Uh, the US is going
to apply a twenty percent duty on Vietnamese imports, and
that's sharply below the initial forty six percent rate that
(09:23):
President Trump had opposed in early April. Meanwhile, US imports
to Vietnam are not going to be subject to tariffs
as well. So this is a good thing. We're allowed
to sell US made stuff into Vietnam. And I think
the other thing is as it relates to China, China
had been kind of backdooring, you know, a back door
(09:44):
way around their tariffs, you know, by shipping things to
Vietnam and then Vietnam shipping them to the US. And
this trade deal puts a puts a into some of that,
you know, the forty percent duty on products that originally
came from any other country. But we're sent to Vietnam
for final shipment to US, that's gonna stay in place,
(10:06):
So a little progress on that front. Bran.
Speaker 3 (10:09):
Yeah, and that's an idea known as trans shipping. Well,
if you're gonna charge me a tariff then to import
directly from my country, then I'm gonna dump it in
somebody else who can be kind of a middleman, and
we'll figure out a way to pay them and keep
moving forward but avoid the overall sheriffs at the highest level.
So Vietnam is one of the few countries that did
strike a trade deal director with White House. While the
(10:30):
clock is ticking down on Trump's ninety day temporary reprieve
that we've been that seems to be the thing, the
step we always take during these So, you know, the
more deals we get like this, hopefully the more other
countries will come to the table and be wanting to
put something down in writing and kind of move on
from this whole all this chaos.
Speaker 1 (10:47):
Yeah, I think it'll be important for us to get
something done with the EU, something permanent done with China,
and then obviously Canada and Mexico. So we'll see what
happens here all right. Coming up next, the blind spot
in millions of American households that could cost your family everything.
You're listening to Simply Money, presented by all Worth Financial
(11:08):
on fifty five KRC, the talk Station, Mark Levin.
Speaker 4 (11:13):
Yes, there are certain issues that matter to us all
that are not addressed as we would wish in this bill.
But there are many, many, very important provisions in this
bill that must be enacted.
Speaker 1 (11:21):
There are Medicaid issues.
Speaker 4 (11:22):
We don't want to legal aliens getting medicaid and we
don't want able bodied men and women who refuse to
put in twenty hours a week getting medicaid either.
Speaker 1 (11:30):
That's not what medicaid was ever for.
Speaker 4 (11:32):
Donald Trump has done everything humanly possible to get the
very best Billy can. We can sit here and twill
our thumbs and whine about it, but this.
Speaker 2 (11:40):
Is where we are. This is what we had.
Speaker 5 (11:42):
Mark Levin tonight at ten o six on fifty five
KRS The talk station Tonight at ten o six on
fifty five KRS, the talk station.
Speaker 6 (11:54):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intent 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 1 (12:13):
You're listening to Simply Money, presented by all Worth Financial
Bob Sponsorer along with Brian James. If you can't listen
to Simply Money every night, subscribe and get our daily podcast.
Just search Simply Money on the iHeart app or wherever
you find your podcasts. Is your four oh one K
the best place to store your money? We're gonna explore
(12:34):
that coming up next at six point forty three. All right, Brian,
here's a scary thought. Nearly half of all Americans have
no life insurance, and for that half that do a
lot of them are dangerously under insured. Let's get into
some of those numbers.
Speaker 3 (12:52):
Well, this is important because obviously, you know, if somebody
in your family relies on your income, spouse, kids, or
you know, whoever else is counting on you to get
out of bed and go to work every day, you know,
let alone, whatever debt you'd be leaving behind and financial expenses.
You know, everybody needs to have some kind of protection
in place. Lots of people just avoid this conversation because
it's stressful. I don't want to I don't want to
(13:14):
think about this. I don't want to think about losing
somebody I care about. But I can tell you what
is far more stressful than these these kind of sometimes
awkward conversations is actually living through it, you know, having
had a lot of clients that you know, not everybody
gets to call their shot. We don't always get to,
you know, kind of have things work out the way
we want. So making sure that your your kids and
your family are in a good spot, obviously is extremely important.
(13:36):
So for most people, Bob, the employer provided life insurance.
That's usually a part of this, but there's some moving
parts of this. It's usual that's only usually going to
give you one or two times your salary, unless you've
chosen more. Oftentimes you've have the ability to pick up
to say five times your salary, which you got to
pay a premium for it, you know, So if you're
making a hundred thousand dollars a year, that's probably a
decent benefit. But at the same time, if you're if
(13:58):
you're a forty year old and you've got young kids
who are going to go to college someday hopefully, and
you've also got maybe a mortgage in the mix, then
some ax of your salary is probably not nearly enough
because we got a lot of years of inflation building
on top of those expenses.
Speaker 1 (14:14):
Well, here's where I'm going to get on my soapbox
for a minute, Brian, because you know, for anybody, and
this is for people that are in their late twenties,
early thirties, had their first kid, got married, and for
those that don't listen to the show that are that
age parents out there that have kids that age. This
is a pretty simple thing to take care of. And
I'll just say it's a basic part of being a
(14:36):
responsible adult, meaning it is not very expensive at all
to go out and get a big slug of thirty
year convertible term insurance protecting your insurability, buy a million,
two million dollars worth of coverage, and make sure that
you've covered your mortgage debt, the cost of your kids
(14:57):
going to college and everything else you do. Pass away early. Again,
this is just the basic part of being a responsible
parent and young adult, and it's not that hard and
it's not that expensive to do.
Speaker 3 (15:11):
Yeah, Bob, I'm gonna drag you off course slightly here
for a second. Go for it. It just occurred to me
based on a conversation with a client a few days ago.
So I've come to be informed that Fifth Third, that
venerable old bank that we all know and love that's
based here in Cincinnati, right on Fountain Square, the living
room of Cincinnati. Uh, fifth Third has put some rules
in place, really really limiting the whole work from home option. Basically,
(15:33):
they're they're I think they're effectively causing a full scale
return to office type of situation. I don't know. I
don't know everything about it, but I know how it
affected one of my clients. One of my clients had
moved out and when this became clear, uh, moved a
home that they really loved and out in the kind
of out in the country a few hours away as
kind of a baby step into retirement. When now all
of a sudden, they've been informed that their their their
(15:53):
job is gonna be eliminated unless they return, and then
their life situation. They're gonna be fine, that's not what
it's about. But they're not getting to call their shop.
And it occurred to me if this is happening to
other people at Fifth Third who are relying on their
employer based life insurance, well you get that severance package
that might be an okay package, But remember your life
insurance just went poof if that's all you have. So
if you are a younger person and you're affected by this,
(16:16):
then you should really really make sure that shortly after
you understand that severance package, you need to make sure
that you have insurance coverage in the background. And I
would go ahead and get something independent of any kind
of employer, use the employer as a supplement, not the
other way around. Some kind of term insurance that covers
your actual needs, and then use the employer again as
a supplement.
Speaker 1 (16:35):
Yeah, great point. Another thing that comes up all the time.
And Brian, I've seen this for years and years and years,
and I run into it all the time. You know,
as soon as somebody has a job, people figure out
that you make a paycheck, along comes a commission based
life insurance salesman to sell you, you know, one hundred, two
(16:56):
hundred thousand dollars worth of whole life insurance. And while
all that's fine, the reason they're selling you that whole
life insurance is they're making a big fat commission to
do it. And what we find is these couples don't
need one hundred or two hundred thousand dollars of insurance.
They need a million or two million dollars of insurance.
And you can get that job done much cheaper and
(17:18):
much more efficiently by again going out and doing a
twenty to thirty year level term policy that is convertible
to permitted insurance if you need to convert it down
the road. I've had more conversations than I care to
count about that whole topic. And that's just a watch
out out there. Watch out for the people that are
just trying to hit a sales quota by making you
(17:41):
feel like you've checked the insurance box when you walk
away from that whole transaction, a lot poor and way
under insured.
Speaker 3 (17:49):
Yeah, and I would tackle on it that. A lot
of times these sales pitches come along with and I'm
not basking insurance. Insurance is an extremely important tool for
the right job. But a lot of times these sales
pitches come along with concept that this can be a
quote unquote super wroth ira from you one stop shopping,
You get cash value increase, you get tax free distributions,
and you get death benefit. What else could we need?
Speaker 1 (18:10):
What else?
Speaker 3 (18:11):
What more can you ask for?
Speaker 1 (18:12):
Right?
Speaker 3 (18:12):
It's all wrapped into one package. Well, the problem with
this is there's really only work in our beneficial if
you have the ability to put an enormous amount of
money into them. There are places, there are situations where
this makes sense. These types of strategies, taking loans against
the death benefit and making sure you die with it
in place. Right, these are all the things that don't
come in the sales pitch. But if you're somebody who
(18:33):
is being pitched the idea that you're in your mid
twenties and you got somebody for this, usually how it goes, right, Bob,
you got somebody who went to college with who is
working for an insurance company, and all of a sudden they,
instead of a regular wroth IRA and an index mutual
fund or something, they're telling you you need whole life insurance. Meanwhile,
you don't have kids in a family and those other
kinds of things. Yet your seven thousand bucks is going
to be far better off at a straight up wroth
IRA than it is inside a cash value life insurance policy.
(18:55):
On the other hand, you own a business generate, it's
lots of cash flow. You can afford to put away
two three hundred thousand dollars a year, that is a
very different situation. That can be a very valid solution,
but those are extremely different situations.
Speaker 1 (19:07):
Well, in terms of calculating how much insurance you need
and for how long you need it, that's where a
good financial plan comes into play. Where we're layering on
insurance needs, retirement savings needs, making sure you're taking advantage
of your four to one K match, taking advantage of
raw iras, all the tools out there that can hopefully
get to you to a point where by the time
(19:29):
you get to your late fifties early sixties, you're able
to self insure because you've put away enough money for
retirement so that you don't need life insurance anymore to
you know, cover the stuff that you need life insurance
for when you're in your twenties or thirties. Well, what
does that all require? An actual financial plan, and any
good fiduciary can sit down and map this out for you.
(19:51):
So you're buying the right kind of insurance for the
right number of years at the right cost, and you're
allocating all of your dollars appropriately so you're not insurance
poor and underfunding your retirement plan.
Speaker 3 (20:04):
Yeah, and I think tie the death benefit to the
timing of the needs. You can pinpoint the day your
mortgage is going to be gone. You can roughly pinpoint
the day the kids are going to get through college.
The harder one is income replacement for a spouse. That's
a little tougher to get to, but again that's where
financial plan can help you to the math.
Speaker 1 (20:20):
Here's the all Worth advice. Be careful when buying life insurance.
There are policies out there that are more about paying
big commissions to salespeople than actually protecting your family. Make
sure the coverage fits your needs, not theirs. Coming up next,
our real estate expert Michelle Sloan is in to talk
about protecting our home and saving a few bucks in
(20:41):
the process. You're listening to Simply Money, presented by all
Worth Financial on fifty five KRC, the Talk station.
Speaker 2 (20:49):
This is no small matter. Big things are happening. These
are big events.
Speaker 7 (20:53):
Some might even say check in for the latest on
every big story, the one Big Beautiful Bill. Fifty five KRC,
the talk station, texting en rules you.
Speaker 2 (21:05):
I have KRC, an iHeartRadio station.
Speaker 1 (21:13):
You're listening to Simply Money, presented by all Worth Financial
on Bob Sponsler along with Brian James joined tonight by
our real estate expert, Michelle Sloan, owner of Remax Time. Michelle,
thanks as always for making time for us, and we're
going to talk about protecting your home from the summer
heat and just overall home protection. And you got something
(21:35):
you like to call a home protection checklist. Walk us
through what we ought to be doing this summer as homeowners.
Speaker 3 (21:42):
Michelle, you know what, you.
Speaker 8 (21:43):
Don't think about the heat as much as protecting your
home from the winter elements, which we often talk about.
But in the summer, there are things that you should
be doing as a homeowner to protect your investment, and
your home is your biggest investment. You want to start
with the exterior, the structure of your home. Make sure
(22:05):
that and we've had a few weeks in June, expect
more of this to come anytime. The heat can be
so unbearable and the humidity in our homes, high humidity
in the Cincinnati market really does affect our homes on
the inside and the outside, and so you want to
(22:25):
protect your home. You want to inspect your shingles on
your roof, make sure you're not seeing any curling or
cracking or blistering. You want to make sure that your
sighting is not warping. And now some people will put
there and this is something that I see quite often.
If you have a grill on the outside of your
home and you set it next to your sighting, what's
(22:48):
going to happen. It's going to melt, and so that's
a problem. Now, granted, most often the heat is not
going to get as hot as a grill, but at
the same time, it's the same premise. There's different sides
of our house. I know in the front of my
home we get that afternoon sun. My front door feels
(23:11):
like it's on fire if you try to touch it.
So that kind of heat, that intense heat, really does
affect your home. And you want to be looking at
your entire structure to make sure there's no damage as
a result of it, because if there is, you want
there are some things that you can do. The one
thing and then I'll let I'll let you get in
a question. I promise I want you to look at
(23:34):
in your lower level, if you have a basement or
a crawl space. There are always cracks. There are natural
cracks in concrete. But if you see those cracks separate
because we have a long period of heavy rains or
heavy drought, which may happen as well, you may see
some of those cracks in your foundation. Expand this. This
(23:59):
is a test that I can give you, that I
think is the best advice that I can give you
is put a little marker, mark the space.
Speaker 9 (24:07):
And note how big.
Speaker 8 (24:10):
That crack is now, today, tonight, tomorrow, and then go
back and check it. If there's no change, you're good
because if there's no change, you probably don't have water
in your lower level. You haven't had any breach in
your foundation. But don't be afraid to mark on your walls.
Put a piece of tape on that and market and
(24:31):
put Okay, it's this big today. If that changes later
this summer or next year, you're going to know that
it's changed, and you may need to talk to somebody
about taking a look at your foundation and making sure
that again that's the foundation of your property, the foundation
of your investment.
Speaker 3 (24:50):
Okay, Michelle, I want to pivot a little bit because
I've had a lot of conversations lately with people who
are talking about selling their homes. Maybe they're retired now
it's time to downsize, and that kind of thing. The
the thing that stops him is, oh, we got to
start getting quotes. We know we got to put some
money into this. And I'm their financial planner. I go, okay,
we got an expense coming up. What do we think
that is? Well, I have no idea. I haven't got
any quotes yet. I just know it's going to be expensive.
(25:10):
So that the cycle is that that tax two or
three years onto somebody's plan because they drag their feet
on fixing these things. So how can somebody prioritize one
of the things that really need to be done, Like
do I need to replace my you know, my original
builder windows from twenty years ago and put some more
upgraded ones in. Does that affect the obviously it makes
it more saleable, But I'm not going to get that
money back. What are the things I can do where
(25:31):
I can be reasonably confident I'm going to get the
money back in the shorter run.
Speaker 9 (25:35):
Well, the couple of things.
Speaker 8 (25:36):
If you're talking about windows, if you have windows that
are original to the home thirty years old, as long
as you don't have as long as here here's the thing.
As long as you have good calking around the exterior
of the windows, and you don't have any of those
air gaps. As long as the seals on those windows
(25:57):
have not been compromised, you don't have any windows. You
can make repairs. Now, you're right, You're probably not gonna
spend twenty thousand dollars or more getting new windows in
your home prior to selling. That's not one of those
things that we do. But the best thing that you
can do, honestly is talk to your real estate agent
because I'm gonna go through the hall.
Speaker 3 (26:19):
That's what I'm doing. We're doing that right now, weren't.
Speaker 8 (26:20):
We know it's good, it's really good. But I'm going
to help you prioritize. We're gonna look at the cosmetic stuff.
We're going to look at the leaks that are happening.
Those have to be fixed. If you have any leaks,
air gaps, things of that nature. That type of maintenance
absolutely should be done. Must be done because it's gonna
come up in a home inspection. You're gonna want to
(26:43):
do those home maintenance items that I harp on all
the time. If you haven't had your HVAC checked cleaned
service in the last ten years, and I've seen this,
I've seen some people when they pull out they don't
even know they have an air filter in their furnace
or the VAC system and I pull it out and
it is so clogged. You know, the efficiency there is
(27:06):
right out the window. And so you want to make
sure that your major mechanicals are working properly as far
as windows are concerned.
Speaker 9 (27:14):
Fix what you can fix, and.
Speaker 8 (27:17):
At that point, if you're ready to sell, you know
you're just going to have to You're not going to
spend that kind of money. So I always say, if
you spend five thousand dollars to fix up your home,
you are likely to get about ten thousand dollars back
in value if you're focusing on the right items. And
some of those right items are again making sure that
(27:39):
your roof is in good condition. Roof is a big one.
Roof is huge. Just patching a roof. I would actually
say that if your roof is at the end of
its life and maybe you have some shingles missing, replacing
your roof, while it's a big expense, you will get
your return on that investment because you are going to
(28:00):
have insurance companies don't want to ensure.
Speaker 9 (28:04):
A roof that is old.
Speaker 8 (28:06):
There's just there's a lot that goes into the roof,
so I would focus and prioritize a roof over windows.
Speaker 9 (28:13):
Does that help?
Speaker 3 (28:15):
Yes, very helpful.
Speaker 1 (28:15):
Appreciate that, all right, Michelle, I want to talk about
every homeowner's favorite topic, and that's mold. You've talked about
heat and humidity and leaky roofs and cracks in the basements.
Where do you tend to find that the first first
appearance of mold happens. Is it still in the basement
or oftentimes is it behind that melted vinyl sighting, or
(28:38):
is it up in the attic? What do you tend
to find when you actually go through homes?
Speaker 9 (28:42):
You know, that's interesting.
Speaker 8 (28:43):
I do think that most of our homes in Cincinnati
are going to find mold issues in the lower level
most likely. And so it depends on the type of
home that you have. If you have a block foundation,
or you know, some of our older homes have even
stone foundations. If there's not enough airflow down in that
(29:04):
lower level you are ten, you will tend to have mold.
It will smell a little musty, you know. I've got that.
I've got the nose like a dog when I go
into people's homes, I'm like Ooh, we have some issues
to take care of. The nice thing is everybody hears
the word mold and they freak out and they think
it's going to be twenty thousand dollars or more. I
(29:26):
would have always ask you to step back and realize
that safety is the number one priority in your home
and having mold can cause illnesses, and so you want
to have a nice, clean, dry home.
Speaker 9 (29:42):
A dehumidifier.
Speaker 8 (29:44):
Sometimes people put that dehumidifier in, especially when we have
the high humidity.
Speaker 9 (29:49):
And run it all the time. That's not a bad thing,
that's a good thing.
Speaker 8 (29:53):
And so if you have a buyer that comes in
and says, why A, you're running that humidifier all the time,
because my basement is just naturally and again that's the word,
it's just naturally a little bit damp. And so I'm
making sure that I'm getting ahead of this problem ahead
of time.
Speaker 1 (30:10):
Sounds great? All right? Great stuff is always from our
real estate expert, Michelle Sloan, owner of Remax Time. Thanks Michelle.
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC the talk station.
Speaker 2 (30:24):
This story he seeks peace and Iran should take that
path is changing by the minute.
Speaker 9 (30:31):
They don't know what the they're doing.
Speaker 7 (30:33):
From what's happening on the ground we devastated the Iranian
nuclear program.
Speaker 2 (30:38):
To what's happening at NATO. Allen Weld is in big Top.
The world is listening.
Speaker 9 (30:43):
And the entire world is watching.
Speaker 2 (30:46):
Check in at the top of the hour. The corrects
we face are too serious. Fifty five krs.
Speaker 5 (30:52):
The talk station his Ryan tem Us here with siins
are welcome to here.
Speaker 9 (30:56):
I do think he is too old to run in
twenty twenty five.
Speaker 1 (31:00):
Fifty five krs.
Speaker 2 (31:02):
The talkstation.
Speaker 1 (31:07):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob sponsorller along with Brian James. Do you have
a financial question for us? There's a red button you
can click while you're listening to the show right there
on the iHeart app. Simply record your question and it'll
come straight to us. There's a recent headline out there
that we came across and it did spark our interests.
(31:27):
Quote four to oh one k's weren't built for today's economy.
That almost makes me chuckle. Brian. It comes from a
recent Barons article, and while the article is focused on
gen z and younger investors who, let's face it, they
do navigate gig work and they job hop often. It
does raise a bigger, more important question for every investor.
(31:51):
Is your four to oh one K actually the best
place to put your money or is it just the
default option. Let's get into that a little bit, Brian,
because there's a lot of moving art scare that are
worth talking about.
Speaker 3 (32:01):
Yeah, so, so a little bit of history. First of all,
where'd the four oh one K from? It hasn't come from.
It hasn't always been in existence. So the four oh
one K was introduced in the early nineteen eighties, and
this is back when pensions were kind of ruled the roost.
You know, your grandparents, your great grandparents most likely worked
in some organization that offered them a pension. Meaning when
you retire, we'll do some math based off of how
many years you worked and how much you earned and
(32:23):
so forth, and then we will give you a calculated
amount every month for the rest of your life. Well
over time, as we as the United States became more
business friendly, really starting in the eighties with the Reagan administration,
it became evident that pensions were extremely expensive because you
were basically burdening yourself as a business with somebody's entire
remaining lifetime versus just worrying about them while they're working
(32:44):
for you. And so slowly pensions started to get phased out.
They were replaced with four oh one k's and basically
meaning you can save your own dollars and we'll give
you incentive to do that by throwing more on top
of it, and you getting too invest in the market,
and it's all tax to fered and so forth. So
this removed the burden from the employer and put it
on the employee to make sure they're managing their four
oh one case properly. So that's kind of how we
(33:05):
got here. So what does work well? Before we go
bashing four a one care, there are obviously some good
things about It's easy, right, I get paid every week,
every couple weeks, every month or whatever. That's easy. All
I'd had to do is pick a percentage that works
for my budget and it just happens in the background.
I get tax deferred growth. I'm not going to pay
any taxes on this until I pull the money out.
And even nowadays I have a raw option where I
(33:25):
could choose to pay taxes. Now let it grow tax
free and then pull it out tax free. That's pretty cool.
In addition, of course, as we mentioned, there's an employer match.
Sometimes that's profit sharing. Sometimes it's a you know, a
percentage match. You put in, you put in three percent,
we'll match at one hundred percent. Sometimes it's more than that.
And plus it's the it's the best thing going in
terms of the dollar amounts that you can put in.
So the max for everybody here in twenty twenty five
(33:47):
is twenty three thousand for everybody under the son who
can fog a mere If you're fifty or older, you
get to throw in another seventy five hundred dollars in
the form of a catchup. So we're not bashing four
oh one k's. But there are some some pieces to
this where maybe some changes are perhaps appropriate.
Speaker 1 (34:05):
Well, and I'm speaking to younger folks out there, and
I've told this story a couple times, but I go
back to win my oar middle son, who got a
pretty good job with a nice paycheck and a four
to one K plan. It took me. I had to
track him down for darn near a year, Brian, just
to get him to participate in the four to oh
one K. And the big emphasis I was putting there
(34:27):
on there was you're walking past that fifty percent match.
It's free money. It's free money. And finally even my
own son could understand what free money meant, and he
finally signed up and contributed up to the matching amount,
and he's been shocked at how quickly and by how
much the money has accumulated. So to all the young
(34:49):
folks out there that don't think it matters to get
started in your twenties, late twenties, or you gotta get
involved in this thing at least up to the level
of the company match, Brian, talk about after you get
to that level, what should folks be thinking about those
younger folks that are saving You know, when you compare
Wroth Ira versus four o one K, or just use
(35:11):
the Wroth four oh one K, what are you telling
folks that are in that younger generation.
Speaker 3 (35:15):
Yeah, and let's not lose sight of the mean goal here.
The mean goal is savings here. So first of all,
start with how much can I afford to put away
and then after that figure out where it should go.
So ideally love to see people at ten percent want
to see double digits there if you can afford that
at all. If you can get to twenty percent and
make your budget, you know, work without over decades, you're
going to be rock solid fine if you can do
(35:35):
that for a long time. But ten percent is a
good a good place to start. Once you've figured out
how to float your boat with your paying your bills
and putting moneyway, then you can worry about whether I
should do traditional versus roth Should I do the four
oh one K? Should I?
Speaker 4 (35:48):
You know?
Speaker 3 (35:48):
Should I?
Speaker 2 (35:48):
Not?
Speaker 1 (35:49):
So?
Speaker 3 (35:49):
What you'll see in a lot of blogs and things
out there that provide financial advice to younger people, the
general rule of thumb is throw you throw your money
into your four o one K up to your match,
and then then switch to an ira, traditional ira or
wroth iray. There are income limitations for those. You have
to be careful. You might run into it. You might
hit a ceiling in an ira sooner than you do
(36:10):
in your four oh one K. And once you've maxed
out the roth ira or the traditional ira, then come
back to your four o one k. Keep put money
on the time, and I don't really argue with that.
If you're somebody who you understand the investment world and
you want to take more control than a four to
one K will allow you, because four oh one ks
by their very nature have to be kind of simple, right,
because we're basically giving everybody under the sun, who you know,
(36:31):
maybe that doesn't have that much investment experience and isn't
that interested in learning. Well, you're asking them to take
control their entire retirement nest egg and make good investment decisions.
And how often, Bob, do we see it where somebody
made some bad decisions long long ago, or worse, no
decision and the whole thing sat in cash. So there
are some risk there too, But we want to make
sure that everybody regardless, just make sure you're doing it.
(36:52):
Get the money going in there, then you can worry
about the exact right structure for where you think you
need to be.
Speaker 1 (36:58):
Yeah, And in the minute or so we got left
with this segment, I think let's get into what some
of the downfalls potentially are to putting all your eggs
in that four oh one K basket. And this is
for people that are just deferring taxes, deferring taxes, putting
it all in four to one K, it does limit
your flexibility down the road in terms of income planning.
(37:20):
So I think the point that article is making. You know,
don't put yourself in a situation where you can unintentionally
jump tax brackets during retirement because all your money is
in the four to one K as opposed to having
some in taxable accounts some in rowth accounts. Have an
opportunity to mix and match your income sources as you
(37:41):
head into retirement. Here's the all Worth advice. The four
to one K is a great tool, but it's not
the only one in the tool shed. Coming up next,
we've got Brian's bottom line where he's going to spend
a little time educating us on long term care planning.
You're listening to Simply Money presented by all Work Financial
on fifty five KRC, the talk station.
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You're listening to simply money presented by all words financial arm.
Bob sponsor along with Brian James, and it's time for
Brian's bottom line. Brian lay it on us about some
long term care thoughts today.
Speaker 3 (39:01):
It's Abob. I like to use these little segments we
do where it's basically, what have Brian and Bob been
up to this week? And this week for whatever reason,
with all my clients, I've been talking about long term care.
It's just a subject that has come up a lot.
So long term care is the definition of it is
help with your activities of daily living. This will come
up when you do your research bathing, dressing, eating, can
I get out of bed and so forth. It's not
necessarily just nursing homes. This can happen in home setting
(39:25):
and assisted living, skilled nursing facilities, and not just for
the elderly. Necessarily, about forty percent of people receiving long
term care are underage sixty five. Accidents, chronic illness, heaven
forbid that the big ones, Parkinson's, Alzheimer's, those can hit
anybody at any time. And obviously we're talking about this
because there's a financial cost to it. As of twenty
twenty four, the average annual cost of a nursing home,
(39:47):
a private nursing home meaning a nice place that you
can be comfortable in about one hundred and fifteen thousand dollars.
If you're taking in home care, that's about sixty two
thousand dollars a year. And the artist formerly known as
General Electric now Worth. They project these numbers to double
by twenty forty five if these trends stay in place.
And here's a big whopper of a detail. Some people
don't know. Medicare do not does not cover long term care.
(40:11):
Medicare will only pick up about the first thirty days.
Medicare is what we all get when we're sixty five.
Those of us are eligible, which is, you know, unless
you're on a pension or something like that, federal pension.
But the Medicaid that's for the indigen it's in the
headlines a lot lately. That's for if you've got no
other options when you've spent down everything. Medicaid will help
you out with that. But regardless, the reason I want
to talk about this today is there is a lot
(40:33):
of people ask the question, and I want to give
some dollar amounts. If you want to buy long term
care insurance to transfer this risk, then you're looking at
probably about maybe a five six thousand dollars expense on
an annual basis for an individual person, double that for
a married couple. That's for a policy that will cover
pretty much most of the cost and have inflation built in.
So obviously that's a pretty significant chunk. And I don't
(40:54):
believe there are any insurance companies anymore who can claim
to not have raised their premiums. One of my favorite
things to do, though, is we run across somebody who's
got an old cash value life insurance policy with a
big pile of money in it. Sometimes we can re
route those and just redeploy it. I don't need death
benefit anymore, but I might need long term care, so
you can potentially do that in a tax free manner,
(41:15):
move the money from one to the other so lots
of opportunities. It doesn't always have to be write a
check every year for long term care for the rest
of your life. All right, good stuff as always, Brian,
thanks for listening.
Speaker 1 (41:24):
You've been listening to Simply Money, presented by all Worth
Financial on fifty five KRC the Talk station.
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Mm hmm
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