August 1, 2025 • 41 mins
The U.S. economy grew more than expected last quarter—what does that mean for your investments and financial plan? On today’s episode of Simply Money presented by Allworth Financial, Bob and Brian dig into the latest GDP numbers and explain why the American consumer remains so resilient.
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Speaker 1 (00:01):
This free off is a the American Authentic Voices fifty
five krs the talk station.
Speaker 2 (00:16):
Tonight, the economy grows once again. What multimillionaires are doing
that you can do as well and more. You're listening
to Simply Money, presented by all Worth Financial on Bob
Sponsller along with Brian James. Well, Brian, if there's one
thing we can say about the American economy, it's that
it is so resilient. The storms that this economy has
(00:39):
weathered throughout time decades and decades at times have been major,
but the economy always rebounds and gets stronger. Case in point,
I mean, last night we had some great earnings from
uh Meta and from Microsoft It. You know, both had
great beats on the revenue side and earning side, and
(01:01):
it looks like they're finally starting to monetize and turn
into earnings those billions of dollars of investment into AI
that they've made. And I think that tide is eventually
gonna lift all boats here and the economy just zooms on. Brian,
why don't you take us through some of the second
quarter GDP numbers, which were you know, we hit it
(01:24):
out of the park in that area as well.
Speaker 3 (01:26):
Yeah, let's let's let's jump right in. When you got
happy news, why not focus on it. So gross domestic product,
remember what that is. It's basically the sum total of
all the goods and services that we produce in this country.
You get out of bed, you get in your card,
you go to work, and that generates a profit somehow,
some way in that gig, and so does everybody else
in the country. And therefore that is all of the
production that we create. Three percent for the April through
(01:50):
June period of three percent, that's the annualized pace that
we're on three percent, and that's adjusted for seasonality inflace
and everything, so that should be a pretty clean number.
Speaker 4 (01:58):
Seventy percent of that.
Speaker 3 (02:00):
Domestic product, Bob, comes from consumer spending, meaning you and
me and anybody else who's listening to us yammer on
about it. So we go out there, we spend money,
we live our lives, and that is seventy percent coming
from the consumer. The opposite of that would be government
spending and businesses themselves. This is important because if that
becomes if consumer spending were to dip, that basically would
(02:23):
mean that people are pulling back and getting conservative and
that is usually a sign that we may be on
the road for a recession. But right now all signs
are positive. It looks like we're kind of head of
the opposite direction.
Speaker 2 (02:34):
Well, in this report, this second quarter GDP report, I
think it's the first quarter that we can say at
least partially, if not significantly, includes some of the initial
tariff adjustments that the economy has had to make. Here
since President Trump's April second Liberation Day tariff announcement, where
a lot of people were really concerned we were going
(02:56):
to go into a deep recession and the economy was
going to fall out of bed. All that we're you
know this, this is real data coming in three percent
GDP growth with some of these tariffs. We got some
tariff news overnight. We got a deal with South Korea
and Pakistan. So the tariff deals continue to come through.
(03:16):
Over the last three months. The President has, as we
all know, been engaged in multiple rounds of saber rattling
and oftentimes intense negotiations, whether it be on social media,
regular media, or what have you, and it eventually gets done.
It's an ongoing negotiation process, and I think Brian, the
economy is reacting and reacting, well, we're not out of
(03:40):
the woods yet. We still got to get something done
with China. But Kevin Hassett, the National Economic Council Director,
set on CNBC yesterday, quote, the anti Trump story has
been that we're going to have a recession or a
depression because of the tariffs, which are going to jack
up prices and call consumers to run for the exits.
(04:02):
And he said, in fact, every single thing about this
GDP release has shown strength in the economy. Again, you know,
it's not all you know, smiles and giggles all the time.
But I think it's safe to say that the economy,
the American people, businesses are resilient in spite of what
comes out of Washington. And I think the news that
(04:23):
we got yesterday on multiple fronts, trade deals, corporate earnings,
signals exactly that the American people, American businesses work hard,
they're innovative, they adjust, and things keep moving along.
Speaker 3 (04:39):
Yeah, And I think it's important to look too at
the the the idea that Trump may not be your
cup of tea. Maybe things that he says and does
are you know, now there's there that's a whole other
radio show. But at the same time, the economic the
results that we are seeing are are positive. I mean,
I think that's the point we've been making all morning here.
So but this this goes for any presidents from any
(05:00):
flavor that you know, any background they might come from,
whatever beliefs they have. The market does not does not
care who is in office. So as always, as we
say all the time, if you're if you're frustrated with
some of the other things you're hearing, uh, don't forget
to look at the big picture, step back, vote at
the ballot box, not in your four oh one ca
If you don't like political leadership, that's one thing, that's
(05:21):
what that's why we have the right to vote. But
on the other hand, as Bob has been saying, the
American economy finds a way to clean its messes up
and move on.
Speaker 4 (05:30):
And we're still seeing that too. So it's also.
Speaker 2 (05:33):
Yeah, no, that's an excellent point to make, Brian, because
I can remember back when President Obama took office, when
President Biden took office, we had just as many people
worried for different reasons. You know, that the stock market
was going to winplode, and the economy was going to
go you know south and all that and and obviously
we had some really good markets during both of those
(05:54):
administrations as well. So yeah, we got to remind folks,
and yesterday is a great reminder. Our money is green,
it's not red, it's not blue. And yep, leave your
political biases, you know, at the curb when it comes
to managing your portfolio. Didn't mean to cut.
Speaker 3 (06:10):
You off there, Brian, No, you're just me. You're just
making my point that I think we both are in
the same place. I mean, we're in a good spot
with regard to where we are economically speaking. But people
do get very very, very very passionate. And this is
why it's so so important to understand market history and
what truly drives the market, what moves it up and down,
but more importantly, Bob, what doesn't move it up.
Speaker 2 (06:32):
Yet you're listening to Simple Money presented by all Worth
Financial on Bob spun Seller along with Brian James. Brian,
we did have a FED meeting yesterday as well.
Speaker 5 (06:41):
Oh yeah, walk us through what the Fed did and
didn't do yesterday.
Speaker 3 (06:47):
Well, the good news came out of the economy yesterday.
But if you are the president, then you're probably not
real thrilled because the Federal Reserve, as predicted, this was
not a shocker at all, did not lower interest rates.
President Trump super super once this and has for ten years.
It sounds like he thinks Trump our interest rates should
be at zero permanently, no matter what the we he talks.
But any case, Federal Reserve is going to standpat for
(07:08):
a while. They are comfortable. Drome Pal is comfortable with
where we are at. Maximum employment that is at target,
inflation is slightly above target. Obviously, we are well off
the crazy from a few years ago where we were
at nine percent inflation and everybody ran out to buy eybonds.
That's ancient history at this point. But he feels like
that there is enough, there's enough of a bumpiness there
(07:29):
on the inflationary side that we still need to kind
of move slowly with this now. The one thing that's interesting, though, Bob,
first time since nineteen ninety three, two Fed governor's voted
against him, and they voted against leaving rates alone. The
majority disagrees, so rates are going to stay the same
for now. Chair Powell says there's a long way to
go to figure out exactly what the impact of tariffs
(07:50):
is and as we've talked recently here, we are just
now getting to the point where companies are buying, are
reloading their inventory, their resources, and all that kind of
stuff raw materials based on current prices versus earlier this
year where they hit front loaded everything and bought a
lot of stuff before the tariffs came in. So I
think chair Pal is seeing that too, and he wants
to see he wants to see how those new costs
(08:13):
of stuff that was purchased after the tariffs were in place,
how was that going to infect consumer pricing and activity.
Speaker 2 (08:19):
Well, the adjustment that's been made here and was made quickly.
I mean, going into the FED announcement yesterday, stock and
bond markets were pricing in about a two thirds chance
of a rate cut in September. And after fedchair Pal
came out and spoke and kept talking about the risk
of tariffs, the odds of that September rate cut are
now fifty to fifty. That's what's priced into the market
(08:42):
as of today. So who knows what's going to happen.
My little opinion here, which no one really cares about,
is I think they got to quit looking at some
of this. I mean, I don't know if we're ever
going to get back to two percent inflation, Brian. But
I do know that people need to buy homes, and
we've got some big you know, whether you want to
talk about inflation in terms of CPI or not, We've
(09:04):
got a shortage of homes. We've got first time home
buyers that are trying to buy homes, and that's one
of the positives of maybe bumping these rates down a
little bit, at least to get that thirty year mortgage
down closer to six than seven. I think that would
help a lot of people out that aren't multimillionaires and
just watching their asset prices go up and up and up.
(09:25):
But that's just Bob's opinion.
Speaker 3 (09:28):
I think that's an important opinion just from the you know,
the standpoint of I mean, if you think about it,
a lot of people focus solely on, Wow, my mortgage
is a little high, and I just want to refinance
and go along with my life.
Speaker 4 (09:38):
But you may not be in this type of situation.
Speaker 3 (09:40):
But there's plenty of people out there who maybe can't
take that job of promotion that they got that requires
them to move to a different city or something like that,
because they're stuck in their house. Maybe they can't unload
their house, or or they can't afford or maybe it's
a three percent interest rate and they can't afford to
go up in terms of you know what the their
housing payment is going to be to move some and
(10:00):
then that trickles all the way down through. Now, now
there's a company out there that needs to promote somebody
is so that they can get more productivity and be
be an improved output. But at the same time they're
kind of stuck in the mud too. So this stuff
does trickle through and it has an impact on the
economy when people you know can't are stretched too thin.
Speaker 2 (10:17):
Well, yeah, and people that have multimillion dollar stock portfolios
and have paid off expensive homes, they're doing great right now.
I mean, asset prices are going up, no doubt about it.
It's the people that are trying to get started and
maybe work at two jobs and need to have a
place to live. I think that's where I'd like to
see things even And I'm not socialist by any stretch,
(10:40):
but I think cheaper money will help some of these folks,
you know, get into the homes that they that they
need and want. All right, coming up next. Millionaires, as
we just said, are multiplying. What are they doing with
their money and what you should learn from it as well.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KR see the talks dation from every
(11:01):
Day Millionaire Every day listen to Dave Ramsey.
Speaker 6 (11:05):
They typically say one of the things that turned their
life around was when they started looking at purchasing something rich.
People ask how much broke people and I've been both
brother okay broke. People ask how much down and how
much a month?
Speaker 2 (11:22):
Tonight at seven oh six, start asking how much On
fifty five r Z the talk station.
Speaker 7 (11:29):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 2 (11:49):
You're listening to Simply Money, presented by all Worth Financial
on Bob spun Seller along with Brian James. If you
can't listen to Simply Money every night, subscribe to get
our daily podcast. And if you think you're our friends
could use some financial advice or your kids or your grandkids,
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(12:10):
ahead of Sick forty three, a crash course in financial
lessons that matter for those sending their kids off to college.
All right, Brian, we've got a new milestone to talk
about in terms of American wealth, and the number of
millionaires in the United States has hit nearly twenty four million.
Of us. This isn't just CEOs and celebrities. This is
(12:32):
everyday Americans, folks who bought houses early in their life,
stuck with the market safe steadily, and we're disciplined, and
now on paper at least they're millionaires. It begs the question,
what are these people doing right? And how do you
protect and grow that wealth moving forward?
Speaker 3 (12:50):
So I remember when being a kid, the term millionaire
conjured up images and it was Scrooge McDuck and it
was the guy from the monopoly box, who when I
was really unconfused with the guy on the pringles can.
But that was a different problem. That's a Brian problem.
But anyway, it just meant something, you know, It's meant
something more, and it's good and we're not at all
implying that you know that being a millionaire is meaningless.
Speaker 4 (13:10):
That is not the case at all.
Speaker 3 (13:11):
There's a lot of people that unfortunately aren't aren't going
to be on that trajectory, never going to get there. However,
it used to be thrown around as a term if
if you hit this status, then you are golden. You've
got nothing to worry about. Well, there's a lot of
people out there who have. And I can speak from
direct experience this week and last week, and I'm sure
next week too. And Bob, I'm sure you see this
too of people that come out and I'm just for fun,
I've been asking him the question when we look at
(13:32):
the big picture, you've been working for twenty thirty years,
You've saved in your four o one, Hey, your house
is worth this, You've got your debt under control. Congratulation
mister and missus client, Do you feel like a millionaire?
And they always look at me like a nuts And
we have to kind of remind him, don't we that
you know you've got a lot more money than you
started with. And you know, if you go back to
twenty five year old you, and if you knew what
(13:54):
sixty year old you was going to have what would
you have said? And everybody says, well, I would have
thought I was bulletproof. But yet here we worrying that
it's not enough. So we're in a new environment now.
Speaker 2 (14:03):
Yeah, Brian, what I find anecdotally, as I just talk
to people and you know, meet with clients and what
have you, and I'm interested in your thoughts as well,
it falls into two camps. In my opinion, Those that
are maybe in their sixties or close to seventy, they
still they still think of a million dollars as that goal,
you know, and they're in their set and emotionally they've
(14:24):
always wanted to get to a million dollars and to
get the point the last point you just made, you know,
they feel like if they can get there, they're rich.
The younger folks starting out, they look at that million
dollars and say, there's no way in the world I
will ever get there. And I think the truth here
that we got to educate people on is a million
dollars really isn't that much money in terms of generating
(14:48):
a retirement income stream. In other words, if you follow
the you know, proverbial rules, you know, take out four
four and a half percent. You know, to live off
in retirement. You know that's only safe forty five thousand
dollars a year of income with keeping your principle in place.
On a million dollars. Most folks live and spend more
than forty five thousand dollars. I know they get Social
(15:09):
Security too, but for most people, that's not going to
get the job done. And I think that's why we
got to get off of this this round number that
we're worried about, and instead put together a financial plan
with your goals, your numbers, what you plan to do,
and make sure that you've got a plan set up
for your life, not what some media outlet says is
(15:32):
a lot of money.
Speaker 4 (15:32):
What's saying yet, Brian Bob.
Speaker 3 (15:34):
One of my all time favorite moments of being a
financial advisor was a couple of years ago one of
my favorite clients, he just had in his head. They
were close to two million dollars in net worth and
he just had in his head, I want to see
a piece of paper with my name on it that
says dollars signed two and a bunch of zeros.
Speaker 4 (15:49):
That was so important to him.
Speaker 3 (15:51):
We had already done the financial plan and he was
struggling with retirement and pulling the trigger and just being done,
but the plan was good.
Speaker 4 (15:56):
His wife wanted him out. There were sort of some
minor health.
Speaker 3 (16:00):
Problems maybe looming on the horizon, and some other things,
and so what we did was to get him over that.
We simply pointed out, hey, you're looking at your form
and k all your investments. Well, if you want to
see a piece of paper with your numb with your
name on it that says two million dollars, let's throw
your home equity in there. There there's two million dollars,
And now can you retire and make yourself and your
wife happy because we've got your piece of paper done.
And it was kind of a funny meeting, but he
(16:20):
did end up pulling the trigger after that, and they've
kind of calmed down. And then shortly after that the
market pushed him over two million anyway, so he kind
of in that case was able to eat to half
his cake and eat it too. But let's get back
to this report. So what does this actually mean? Where
where's all this coming from? Swiss Bank UBS also came
up with some numbers. Two About a tenth of American
adults are millionaires, and we're creating another thousand of them
(16:42):
every single year.
Speaker 4 (16:43):
So again it's it's not it. This is a good thing.
Speaker 3 (16:46):
It's just becoming a little more common. And where is
this coming from? Why is this happening? Well, a lot
of it has to do with inflation. Inflation pushes everything up,
including the value of your homes and your stocks.
Speaker 4 (16:57):
Think of it this way. Prices get higher.
Speaker 3 (16:58):
We don't really like that, but companies, frankly will take
advantage of that, and they'll they'll work out a way
to you know, kind of hide a little bit more
profit margin in that as well. I'm pretty sure that's
happened out there, just in the headlines we've been reading
over the past couple of years. But in any case,
that means companies are making more money that filters into
your four oh one k, your investments, and so forth.
Everything is more expensive. A million bucks today, of course,
(17:20):
doesn't go as far as it did in nineteen ninety five.
So in fact, that same million from nineteen ninety five
is worth more than two million in today's dollars. Or
put in other words, the new millionaire is actually a
double millionaire. You need to have two million dollars to
feel like a millionaire did in nineteen ninety five.
Speaker 2 (17:35):
If that makes any sense, yep, makes total sense. You're
listening to Simply Money, presented by all Worth Financial on
Bob Sponseller along with Brian James. So let's pivot to
what are these folks doing? What are the millionaires doing
that's different if anything, And I think I think they're
doing the things that we talk about all the time, Brian,
and I hope that's what I hope is encouraging to
(17:56):
folks out there. They're not doing anything revolutionary. They're just
doing the basics and doing it for a long time.
In other words, it's not about flashy investments, it's about
solid fundamentals. They view their net worth holistically. They're not
just watching their four to one K plan. They're managing
the total picture their real estate. They're taxable accounts even
(18:17):
a small business if they own one, and they're diversifying more.
A lot of millionaires we're finding have small parts of
their portfolios in investments outside the stock market. And another
big thing that might come as a surprise, they're doing
the good old emergency fund. They're building a solid cash reserve.
Millionaires tend to keep enough in cash to avoid panic
(18:39):
selling during market downturns ever heard that before, So they've
got dry powder to pounce on opportunities when prices drop. Brian,
what are some of the other things that you see
your clients doing well that you tell them to do
and they actually listen that enable them to get to
this point in their life.
Speaker 4 (18:59):
They avoid panic. That's a huge, huge thing.
Speaker 3 (19:02):
So I had a meeting with a client yesterday, and
I was not working with them in two thousand and eight.
They were elsewhere, but apparently had a bit of a
run in with their then financial advisor who may or
may not have been acting on the.
Speaker 2 (19:14):
Up and up.
Speaker 3 (19:15):
We're going to talk about fiduciary stuff later, but that
rattled them and the market, of course, hurt everybody in
two thousand and eight, and they went to cash on
the advisor's advice, went to cash in that that felt comfortable,
felt like a good idea at the time. But now
fast forward, what's seventeen years into the future, and I
have several clients in the situation that went to cash
back then because we weren't around to help them avoid
(19:37):
that panic. But in any case, that is millions of
dollars left on the table that they should have, but
because they tried to dodge the train and tried to
time the market. Timing the market is timing. Whether you're
doing it out of greed or fear, it's all the
same thing. You're still trying to guess the next thing
that's going to happen, and that's just not a recipe
for success.
Speaker 2 (19:54):
All right. One other thought that we want to share
here is from our good friend Warren Buffett, and this
is important, and it comes down to mindset and your
skill set. Mister Buffett always says the most inflation proof
asset you own is your skill set, whether that's certifications,
leadership training, building a business. You just got to keep
your mind sharp and always be looking for ways to grow,
(20:18):
have a positive mindset, keep moving forward, improve yourself and
those are things that no market correction can never take
away from you. Here's the all Worth advice, stay diversified,
stay discipline, and treat your skills as your most inflation
proof asset. Coming up next, a massive transfer of wealth
is about to take place. You're listening to Simply Money,
(20:39):
presented by all Worth Financial on fifty five KRC. The
talk station.
Speaker 8 (20:44):
This was a mess, a mess taking up today's mess
one big It's a mess.
Speaker 2 (20:50):
So you can start tomorrow off. Time to move on
with a clean slate.
Speaker 1 (20:54):
Time to start over, Brian Thomas.
Speaker 7 (20:56):
Tomorrow morning at five start fresh.
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I find fifty five.
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Eight fifty five KRC, Cincinnati, make us the number one
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Speaker 2 (21:17):
You're listening to simply Money, presented by all Worth Financial
on Bob Sponseller along with Brian James and estimated sixteen
trillion dollars is set to flow to younger Americans in
the next ten years, but most aren't ready for it.
And this is important to hear, not just for the
younger folks, but for the parents and grandparents out there listening,
(21:38):
who are actually the ones who are going to be
passing this money down to the next generation. Here's some
quick numbers. Surveys and analysts project seventy two to eighty
four trillion dollars in wealth transferring from baby boomers to
the younger generations by the middle of the century. That's
just twenty five years away. Most of that about seventy
(22:00):
two trillion dollars will go to airs and the rest
will go to charities. But the younger generations Brian, Gen
X millennials, gen Z, if they're expecting inherents sooner than
that surprise surprise, over half a millennials and four and
ten Gen Z folks think they're going to be getting
something sooner, way sooner, within the next five years. So
(22:21):
there's a little bit of a disconnect there in terms
of expectations and communications.
Speaker 4 (22:27):
Brian, Yeah, it can be a little dangerous. You know,
we don't know.
Speaker 3 (22:29):
This is just a survey, so we don't know any
individual stories behind these people other than they are members
of either Gen X millennials or Gen Z, so who knows.
Maybe they're simply saying, you know, mom and dad aren't
in great health, and I just know that the sooner
later is gonna you know, it's probably sooner rather than later.
Or they could be saying, you know what, I really
got to have it, or my ship is gonna sink.
That's a whole different story, but it can be whenever
we run across the situation where where clients have some
(22:52):
kind of inheritance. We know that's coming. Obviously, we don't
want it to happen anytime soon. We would certainly prefer
our preparing our parents to hang around as long as
they possibly can. But well, what I usually tell people
to kind of kind of prepare for that is, let's
not work it into the bake it into your plan.
But let's just know that if we are faced with
a decision where you know it might be a little
more aggressive to do the thing versus not to do
(23:13):
the thing, when we know there's some kind of parachute behind,
we can lean towards the slightly more aggressive side of
the decision.
Speaker 4 (23:18):
So anyway, but the.
Speaker 3 (23:21):
Issue here, what we're really talking about, is making sure
this stuff, these trillions of dollars, is prepared to move efficiently.
Speaker 4 (23:27):
Anyway.
Speaker 3 (23:27):
So there's an organization out there, Trust and Will, that
did a survey themselves. Eight and ten Americans believe a
state planning is important.
Speaker 4 (23:36):
That's not shocking people.
Speaker 3 (23:37):
Most people have a general idea that if we've got something,
I should probably make some kind of plans in case
I get hit by a bus. However, only three and
ten have a will that means put differently, seventy percent
of people that they survey don't even have a will
in place, and just one in ten of them has
a trust. I am a little less worried about the
trust thing. I think trust trust are valuable, but I
(23:59):
do not at all believe that everybody needs to have
a trust. If you've got a simple family situation, you're
comfortable with your kids inheriting money, you know I unexpected time,
you feel like they would handle it well. There aren't
complicated business structures or family partnerships or stuff like that
in the mix, and I think it's perfectly fine just
to make sure that everything has a beneficiary attached to it.
Speaker 4 (24:19):
You don't necessarily have to have a trust.
Speaker 3 (24:21):
However, if there's a divorce in the mix, or if
you're convinced that your kids might not be in the
best shape to handle money. There's a lot of reasons
that trusts are important, but I do not believe in
checking a box that's say you must have a trust,
will absolutely name beneficiaries on your accounts. Yes, everyone should
do those things. Simply a trust may be a necessity.
Speaker 4 (24:41):
What do you think about that, Bob?
Speaker 2 (24:42):
Well, on top of having all the documents in place,
and we talk about this often on this show. I mean,
we're always shocked at how many people come in here
and have legal documents in place, but have it looked
at their account beneficiaries and got their assets sided correctly
and all of that. But I think the thing we
also want to talk about in this segment is just
communication with your family, with your airs, meaning unexpected inheritance
(25:06):
without education, financial clarity, or emotional preparation can lead to
something we call sudden wealth syndrome. Think of winning the lottery, overspending, isolation,
poor decisions, and Brian, this is something that doesn't go
on nearly enough in my opinion. Family sitting down ahead
(25:27):
of time and sitting down with your kids and maybe grandkids,
even if they're part of your state plan, and just
having a discussion with them about what's likely to come
down the pike and when. I mean, we don't know
when we're going to die, but I think we got
to get our kids prepared to handle money. They need
to be financially educated and be up to speed on
(25:49):
how to properly handle wealth before they inherited inherited so
they don't make big, big, big mistakes after the day comes. Brian,
I find that these discussions aren't happening nearly enough. Do
you agree? Are you finding things different? What do you
think on this?
Speaker 3 (26:07):
Yeah, So I'm working on a case right now where
mom and dad both passed. We're elderly, but passed a
lot sooner than than anybody thought was going to happen.
And the adult children were fine, you know, weren't particularly
wealthy themselves beforehand. And then there's of course young kids
in the mix, and so.
Speaker 4 (26:25):
The the there's.
Speaker 3 (26:26):
A decent amount of assets that's changing hands. It's got
some moving parts to it, of course, as you know,
a lot of this stuff does. But I think the
the interesting thing to see is how this family, how
this young family is reacting to In the past, they've
always kind of been on defense, you know, just making
sure that ends meet, you know, and trying to just
keep things in balance and so forth. When now all
of a sudden they can go on offense. And it's
that sounds great, right, a few million dollars drops out
(26:47):
of the sky, All my problems are solved, My stress
will just magically evaporate. It's the opposite, Bob, because now
they're they're in an environment they've never been in before.
They've never been had the ability to go on offense
and look at things, as you know, in terms of
what's the best opportunity for me in terms or versus
how do I need to defend myself from some bad
thing that may happen?
Speaker 4 (27:07):
And that is extremely.
Speaker 3 (27:08):
Stressful because when you're faced with a lot of opportunities,
you got to figure out which one's the best and
what step you should take moving forward. That can be
stressful too, And so I think it's important to you know,
if you trust your family, give it, let them see
behind the curtain at some point when you feel the
time is right, help them understand what might be coming
their way so that it's not a cold water shock
when they're sitting at the table with an attorney settling
your estate exactly.
Speaker 2 (27:29):
Here's the all Worth Advice plan early, talk often, and
prepare financially and emotionally to turn that wealth transfer into
a truly lasting legacy. Coming up next, the financial talk
every parent and grandparent probably needs to have. You're listening
to Simply Money, presented by all Worth Financial on fifty
(27:49):
five KRC the talk station Mark Levin.
Speaker 10 (27:53):
Let me tell you the Internet is breeding evil, breeding evil.
Speaker 4 (27:57):
And TikTok is the main culprit.
Speaker 10 (28:00):
And I don't know what's happening with TikTok, but that
damn thing needs to be sold now, and it needs
to be cleaned up. And I don't want to hear
about free speech and everything else. It's a private company.
The company needs to clean it up because this is crazy,
which mean the communist Chinese and all the crap that
people put on this stuff.
Speaker 1 (28:16):
Mark Levin tonight at ten oh six on fifty five
KRS the talkstation.
Speaker 4 (28:23):
I do think he is too old to run.
Speaker 7 (28:25):
In twenty twenty.
Speaker 1 (28:26):
Four, fifty five KRC the talk station, you're listening to
Simply Money, presented by all Worth Financial Lumbob sponseller along
with Brian James.
Speaker 2 (28:39):
If you have a financial question you'd like for us
to answer, there's a red button you can click while
you're listening to the show right on the iHeart app.
Simply record your question and it will come straight to us.
All right, The dorms will soon be filling up again,
and with that, the tuition bills are arriving in the
mail if they have not arrived already. And while you're
(29:00):
busy figuring out how to pay for college. Here's a question.
A lot of families aren't asking are your kids and
grandkids financially ready for college?
Speaker 3 (29:10):
Brian, take us through this, So, Bob, I'm living personally
through this from both sides. So I'm working with the
organizations my old fraternity, and I am the financial advisor
for them, which means that makes me a landlord. Didn't
see that coming. But now I'm collecting rent and all
this other stuff. And I have a kid in college,
and so I am collecting rent and paying it. Not
benefiting from any of this at all because a volunteer,
(29:33):
but in any case, so now I'm talking to a
lot of college students about how important it is to
pay rent and how important it is to pay rent
on time.
Speaker 4 (29:40):
That's kind of a thing right now.
Speaker 2 (29:41):
With consuming so question, you're serving as basically the treasurer
for your fraternity now as a fully grown parent adult,
because I did that job at Miami University while I
was a member of the fraternity in college, I was
the treasurer. I collected the bills, I paid the bills.
Are they not trust seeing college kids to do that anymore? Oh?
Speaker 4 (30:03):
No, this this I did that role as well. We
in our situation.
Speaker 3 (30:07):
We need we need somebody to run the house corporation,
which is one thing, and we need somebody else to
worry about the you know, the other stuff, the social stuff.
But any case get into a crash, course of course,
and not only how my own kids think about money,
and they're they're in pretty decent shape because you know,
Dad has been a little obnoxious about it over the
past several years. But uh, you know, across the grand
swath of a lot of young people, uh you know,
the I don't think there's been a ton of experience
(30:29):
or a lot of dinner table conversations about how to.
Speaker 4 (30:31):
Kind of stay on top of things. So, uh so,
what are the things you should do well?
Speaker 3 (30:35):
Help your student figure out what the budget should be
before they get to campus.
Speaker 4 (30:39):
So we know some of the things are covered.
Speaker 3 (30:40):
You're going to be in a dorm, and the intuition
is all that stuff is in place, and your meal
plan and all that other fun stuff. But you're also
going to be in a new environment. And this is
really it's similar to when people retire. You don't know
what your lifestyle is going to be like until you've
lived it. If you're living in a cool, new town
where everything is walking distance, and it's your first time
out there, you know, exploring the world, getting out from
under mom and dad, You're probably gonna want to spend money.
(31:02):
That's no different than people who have retired and all
of a sudden they have a bunch of time. They
tend to spend a little more money too. It takes
a while to get the dust to settle, But that
doesn't mean we shouldn't attempt to put a budget in place.
Figure out, of course, you know the basics. What's what's
the basic amount of money you need to spend on
a monthly basis to keep yourself afloat. And then let's
figure out some kind of fudge factor for you know,
(31:24):
the fun stuff. You know what kind of You're gonna
go out to out to eat with your friends every
now and then, you're gonna join certain clubs. It's cool,
you're gonna need stuff from Amazon or whatever. Pay attention
to where that money goes, and then try to stick
to that weekly or or maybe a monthly cap just
something you can. Doesn't have to be perfect. We don't
need to be putting pennies and envelopes, but just have
eyeballs on it. Is super helpful. Another step is a
(31:46):
checking account, maybe even a credit card, but have a plan,
you know. I'm honestly I'm a big fan of younger
people getting credit cards early on Bob because it helps
them to pay attention. All of them come with a
cool app nowadays where you can watch and I've just
trained my kids just use their credit card for everything.
Pay it off every month, as matter of fact, go
into the credit card settings and go tell it to
(32:08):
pay off that balance every single month, and then just
watch the machine work. Swipe your card for your normal expenses,
look at it every day every other day, make sure
you recognize the charges that are hitting. And that will
do two things. It's gonna protect you from fraud, and
it's going to help you kind of understand how you're
spending if you're looking at it that often. But the
backstop is you've got money in your checking account that
(32:28):
you otherwise could use to pay for these bills, but
have it automatically pull that payment out. I think that
is a huge thing, and you're going to start to
get rewards on an early basis. Not to mention the
credit card the credit history that you were building up,
which will become important because one day it's going to
be your name on that apartment lease or mortgage and
not your parents.
Speaker 2 (32:47):
All right, Brian, I love the credit card idea and
the reward points and all that, but don't you think
you should also get your college kids a credit card
with a limit, meaning once they spend a certain amount,
that darn thing goes off. I mean, I my wife
are three sons. They're all out of college now, and
I kind of, you know, pass some edicts down from
(33:11):
on high and asked my wife to handle this. So
I didn't beat my head against the wall. But I
know what we put in place for I'm thinking of
one son in particular.
Speaker 5 (33:20):
Once, once he went to one too many concerts or
Amazon movies or whatever, that darn thing turned off, no
more spending, and that turned out to be a real
good governor switch for him and us. Do you recommend
that kind of approach?
Speaker 7 (33:36):
Oh?
Speaker 2 (33:36):
Absolutely.
Speaker 3 (33:36):
Guardrails are important, for sure. I'm not saying throw the
doors open. I'm just saying, because the opposite. I hear
the opposite a lot young people. Responsible young people sometimes
come out, come out of school, and come out of
wherever they're getting their information, thinking that credit cards are
absolutely evil and they want to pay cash for everything,
and to me, that's an extreme. It's gonna make life
more difficult anyway. And again, you're not building up credit.
(33:59):
So here's what I did with my kids, and this
worked out. I'm on the back end of this now,
so we're kind of seeing the benefits. My kids are
pretty financially responsible. They're pretty conservative anyway. I don't know
where they get that from, because that ain't me, but whatever,
maybe it comes from mom's side. But anyway, so we
name them as authorized users on our credit cards. In
that case, this is when they were young, twelve and
thirteen years old. A couple things though, Bob, See, there's
(34:20):
the reaction that this is what I'm talking about.
Speaker 2 (34:22):
First of all, to say, there is no way in
hell that I was going to allow that to happen.
But go on, yeah, they're not a no. This is
an age difference thing, and please educate me. I need
to be enlightened here.
Speaker 3 (34:34):
So first and foremost, if you're concerned like it sounds
like you are, you would have been in your situation.
I understand that every situation is different. You don't have
to tell the kids the card exists. You can shred
the darn thing as soon as it shows up in
the inbox. So, but the point is they will still
have credit. They're attached to your credit card. If you
have a good credit rating, that will filter its way
down to them because they were an authorized user on
(34:55):
a card that has a good credit rating behind it.
So we did this when my oldest was I don't
know if ten fourteen years old. She's now twenty three
and recently about a year ago, signed up for her
first big girl apartment and the credit check was not
a thing. And it was because she had had our
credit history kind of imported over to her, and she
now has her own credit card. She's paranoid, is I'll
get out? So she doesn't want she'll never overspend. I
(35:17):
just know that's her personality. It's not everybody. But again,
this was a huge benefit for our family. And so
now I've got the other two behind him, and then
once they understand how it works. Now I have armed
all three of them with a credit card, and I
just tell them, hey, on your way home, stop.
Speaker 4 (35:30):
At the grocery store and get this and use the
blue card.
Speaker 3 (35:32):
That way, I don't have to pay them back. I
can order them to do things for me. It's all
about me.
Speaker 2 (35:37):
Well, hey, but as I listened to you talk about this,
I think what you just described is probably what went
on with our kids as well. But my lovely wife
handled all of it because none of our kids had
any problems getting an apartment, least when they got out.
So I think she handled all this in the background
and just didn't tell me about it, which is which
is a good thing.
Speaker 4 (35:57):
That all your sacrifice, Carrie.
Speaker 2 (35:58):
Yeah, Amen, here's the all Worth advice. College is expensive,
but the real investment is in financial wisdom. Talk early,
talk often, and make sure your student leaves school with
a degree and some financial confidence. Coming up next, we've
got Brian's bottom line. He's going to fill in some
of the gaps here that we talked about earlier this
(36:19):
week about how the Big Beautiful Bill impacts Social Security taxes.
You're listening to Simply Money, presented by all Worth Financial
on fifty five krc the Talk station.
Speaker 4 (36:30):
This is no small matter and of course not just
one sided view.
Speaker 1 (36:34):
Use that affects you at the top end to bottom
of the hour fifty five KRZ the Talk station.
Speaker 2 (36:45):
You're listening to Simply Money. He's presented by all Worth Financial.
I'm Bob Sponsellur along with Brian James, and music can
only mean one thing. It's time for Brian's bottom line
and I'm anxious for this segment. We talked earlier in
the week and a couple times here about the big
beautiful bill and the so called credits or deductions coming
down the pike for Social Security, and we're gonna dive
(37:07):
into that in a little detail. Brian's actually gone out
and done the work and it's gonna give us a
little clarity, which is always good clarity. Tell us how
this is actually gonna work in the real world, Brian.
Speaker 3 (37:19):
That music vibe is rl burnside. Let's get this thing, Rowlan.
We're gonna talk about social Security here, so you do
you get it rolling every day.
Speaker 4 (37:27):
Already in there? What were we talking about? Social Security? Okay,
back to reality.
Speaker 3 (37:33):
So the one big, beautiful, big blah blah blah bill,
it had lots of moving parts. We're gonna be talking
about it an awful lot as we kind of discover
more things. And one of the things that came out
of it is a Social Security deduction. And it's gonna
take a little while for this to sink in in
terms of understanding how this impacts everybody, how to take
advantage of it, and so forth.
Speaker 4 (37:52):
That's what I'm want to talk about.
Speaker 2 (37:53):
A little bit.
Speaker 3 (37:54):
So new rules from tax here twenty twenty five to
twenty eight, taxpayers aged sixty five and above can deduct
up to six thousand dollars for a single single filer
or twelve thousand for MFJ married filing jointly, so of
your Social Security incomember. It's just it's just off of
that income, not your income from other sources. There's a
phase out though, of seventy five thousand dollars for an
(38:16):
individual one hundred and fifty thousand for adjusted gross. Now
at least for once, Bob, they made this easy. If
you're married, it's half if you're or if you're married
it's one hundred percent.
Speaker 4 (38:24):
If you're single, it's fifty percent.
Speaker 2 (38:25):
All right, But hey, not to take you off track,
but this is the big question I had the other night,
and you know that I wanted to get clarified. This
is not an itemized deduction. This is a deduction solely
for Social Security income right above certain income limits. Is
that what we're talking about?
Speaker 3 (38:40):
Correct, above the line well below certain income limits, it
may phase is out.
Speaker 2 (38:45):
Correct, Yeah, yeah, but it's the deduction is strictly for
Social Security income. Nothing else does not integrate with the
rest of your return, right, So really.
Speaker 3 (38:54):
I think the moving part is that we're we're worried about, Okay,
so how do I control my income so that I
can be sure that I that I can benefit from this?
Or remember if if you're somebody who if you're listening
to this, then you're you're usually somebody who has put
away a decent amount of money taking advantage of your
four one ks iras and all that.
Speaker 4 (39:11):
Other kind of stuff.
Speaker 3 (39:12):
And one thing that's going to sneak up on everybody
is RMD's required minimum distributions, so that this part will
so if you if you have a significant amount of
money in your IRA four to one case, then that
is going to eventually result in your required minimum distributions,
meaning you need to take out that required amount at
age seventy three or seventy five, depending on when you
(39:33):
were born. And so the way that this hasn't changed,
this is the way it's always been. So you're you're
going to be need to be taking about something like
four percent. Let's say that's roughly what the requirement is
that you need to take out. If that four percent
is going to push you above this these seventy and
fifty thousand dollars income limits based on your in your
filing status, then you will lose access to these benefits.
(39:55):
So what you want to make sure the way to
make sure that you can benefit from this one you've
hit requirement of distribution age is try to get your
iras and this may be hard for some people, try
to get your iras down to the two fifty maybe
three hundred and fifty thousand dollars range, which will hopefully
keep you below those seventy five, one hundred and fifty
thousand dollars limits so you can continue to benefit from that.
Speaker 2 (40:16):
So yet, perhaps yet another reason to really sit down
and take a look at these wroth conversions if that
you tire early between late fifties early sixties and when
you take Social Security, because that really amplifies the opportunity
here from a tax standpoint, Right.
Speaker 3 (40:31):
Brian, absolutely hit that window and keep your tax, keep
your income low, but use it up to make roth conversions.
Speaker 2 (40:38):
All right, sounds good? Hey, thanks for digging in digging
into this for all of us tonight, Brian, thanks for listening.
Everyone you've been listening to Simply Money, presented by all
Worth Financial on fifty five KRC, the Talk Station.
Speaker 8 (40:51):
How do you know what's true and not? In a
society where you can't believe your eyes or ears?
Speaker 2 (40:56):
If it's truth you seek.
Speaker 8 (40:58):
And you can't believe your polow Titians and you can't
believe your media you've come to, why would you believe me?
Maybe it's not the right place know how to seek
the truth, but it's a good starting point. The truth
is we have lost our mooring to the truth. The
Glenn Beck Program tomorrow night to do Pure Truth on
(41:19):
fifty five KARC, the Talk Station.
Speaker 4 (41:21):
If You're sin
This free off is a the American Authentic Voices fifty
five krs the talk station.
Speaker 2 (00:16):
Tonight, the economy grows once again. What multimillionaires are doing
that you can do as well and more. You're listening
to Simply Money, presented by all Worth Financial on Bob
Sponsller along with Brian James. Well, Brian, if there's one
thing we can say about the American economy, it's that
it is so resilient. The storms that this economy has
(00:39):
weathered throughout time decades and decades at times have been major,
but the economy always rebounds and gets stronger. Case in point,
I mean, last night we had some great earnings from
uh Meta and from Microsoft It. You know, both had
great beats on the revenue side and earning side, and
(01:01):
it looks like they're finally starting to monetize and turn
into earnings those billions of dollars of investment into AI
that they've made. And I think that tide is eventually
gonna lift all boats here and the economy just zooms on. Brian,
why don't you take us through some of the second
quarter GDP numbers, which were you know, we hit it
(01:24):
out of the park in that area as well.
Speaker 3 (01:26):
Yeah, let's let's let's jump right in. When you got
happy news, why not focus on it. So gross domestic product,
remember what that is. It's basically the sum total of
all the goods and services that we produce in this country.
You get out of bed, you get in your card,
you go to work, and that generates a profit somehow,
some way in that gig, and so does everybody else
in the country. And therefore that is all of the
production that we create. Three percent for the April through
(01:50):
June period of three percent, that's the annualized pace that
we're on three percent, and that's adjusted for seasonality inflace
and everything, so that should be a pretty clean number.
Speaker 4 (01:58):
Seventy percent of that.
Speaker 3 (02:00):
Domestic product, Bob, comes from consumer spending, meaning you and
me and anybody else who's listening to us yammer on
about it. So we go out there, we spend money,
we live our lives, and that is seventy percent coming
from the consumer. The opposite of that would be government
spending and businesses themselves. This is important because if that
becomes if consumer spending were to dip, that basically would
(02:23):
mean that people are pulling back and getting conservative and
that is usually a sign that we may be on
the road for a recession. But right now all signs
are positive. It looks like we're kind of head of
the opposite direction.
Speaker 2 (02:34):
Well, in this report, this second quarter GDP report, I
think it's the first quarter that we can say at
least partially, if not significantly, includes some of the initial
tariff adjustments that the economy has had to make. Here
since President Trump's April second Liberation Day tariff announcement, where
a lot of people were really concerned we were going
(02:56):
to go into a deep recession and the economy was
going to fall out of bed. All that we're you
know this, this is real data coming in three percent
GDP growth with some of these tariffs. We got some
tariff news overnight. We got a deal with South Korea
and Pakistan. So the tariff deals continue to come through.
(03:16):
Over the last three months. The President has, as we
all know, been engaged in multiple rounds of saber rattling
and oftentimes intense negotiations, whether it be on social media,
regular media, or what have you, and it eventually gets done.
It's an ongoing negotiation process, and I think Brian, the
economy is reacting and reacting, well, we're not out of
(03:40):
the woods yet. We still got to get something done
with China. But Kevin Hassett, the National Economic Council Director,
set on CNBC yesterday, quote, the anti Trump story has
been that we're going to have a recession or a
depression because of the tariffs, which are going to jack
up prices and call consumers to run for the exits.
(04:02):
And he said, in fact, every single thing about this
GDP release has shown strength in the economy. Again, you know,
it's not all you know, smiles and giggles all the time.
But I think it's safe to say that the economy,
the American people, businesses are resilient in spite of what
comes out of Washington. And I think the news that
(04:23):
we got yesterday on multiple fronts, trade deals, corporate earnings,
signals exactly that the American people, American businesses work hard,
they're innovative, they adjust, and things keep moving along.
Speaker 3 (04:39):
Yeah, And I think it's important to look too at
the the the idea that Trump may not be your
cup of tea. Maybe things that he says and does
are you know, now there's there that's a whole other
radio show. But at the same time, the economic the
results that we are seeing are are positive. I mean,
I think that's the point we've been making all morning here.
So but this this goes for any presidents from any
(05:00):
flavor that you know, any background they might come from,
whatever beliefs they have. The market does not does not
care who is in office. So as always, as we
say all the time, if you're if you're frustrated with
some of the other things you're hearing, uh, don't forget
to look at the big picture, step back, vote at
the ballot box, not in your four oh one ca
If you don't like political leadership, that's one thing, that's
(05:21):
what that's why we have the right to vote. But
on the other hand, as Bob has been saying, the
American economy finds a way to clean its messes up
and move on.
Speaker 4 (05:30):
And we're still seeing that too. So it's also.
Speaker 2 (05:33):
Yeah, no, that's an excellent point to make, Brian, because
I can remember back when President Obama took office, when
President Biden took office, we had just as many people
worried for different reasons. You know, that the stock market
was going to winplode, and the economy was going to
go you know south and all that and and obviously
we had some really good markets during both of those
(05:54):
administrations as well. So yeah, we got to remind folks,
and yesterday is a great reminder. Our money is green,
it's not red, it's not blue. And yep, leave your
political biases, you know, at the curb when it comes
to managing your portfolio. Didn't mean to cut.
Speaker 3 (06:10):
You off there, Brian, No, you're just me. You're just
making my point that I think we both are in
the same place. I mean, we're in a good spot
with regard to where we are economically speaking. But people
do get very very, very very passionate. And this is
why it's so so important to understand market history and
what truly drives the market, what moves it up and down,
but more importantly, Bob, what doesn't move it up.
Speaker 2 (06:32):
Yet you're listening to Simple Money presented by all Worth
Financial on Bob spun Seller along with Brian James. Brian,
we did have a FED meeting yesterday as well.
Speaker 5 (06:41):
Oh yeah, walk us through what the Fed did and
didn't do yesterday.
Speaker 3 (06:47):
Well, the good news came out of the economy yesterday.
But if you are the president, then you're probably not
real thrilled because the Federal Reserve, as predicted, this was
not a shocker at all, did not lower interest rates.
President Trump super super once this and has for ten years.
It sounds like he thinks Trump our interest rates should
be at zero permanently, no matter what the we he talks.
But any case, Federal Reserve is going to standpat for
(07:08):
a while. They are comfortable. Drome Pal is comfortable with
where we are at. Maximum employment that is at target,
inflation is slightly above target. Obviously, we are well off
the crazy from a few years ago where we were
at nine percent inflation and everybody ran out to buy eybonds.
That's ancient history at this point. But he feels like
that there is enough, there's enough of a bumpiness there
(07:29):
on the inflationary side that we still need to kind
of move slowly with this now. The one thing that's interesting, though, Bob,
first time since nineteen ninety three, two Fed governor's voted
against him, and they voted against leaving rates alone. The
majority disagrees, so rates are going to stay the same
for now. Chair Powell says there's a long way to
go to figure out exactly what the impact of tariffs
(07:50):
is and as we've talked recently here, we are just
now getting to the point where companies are buying, are
reloading their inventory, their resources, and all that kind of
stuff raw materials based on current prices versus earlier this
year where they hit front loaded everything and bought a
lot of stuff before the tariffs came in. So I
think chair Pal is seeing that too, and he wants
to see he wants to see how those new costs
(08:13):
of stuff that was purchased after the tariffs were in place,
how was that going to infect consumer pricing and activity.
Speaker 2 (08:19):
Well, the adjustment that's been made here and was made quickly.
I mean, going into the FED announcement yesterday, stock and
bond markets were pricing in about a two thirds chance
of a rate cut in September. And after fedchair Pal
came out and spoke and kept talking about the risk
of tariffs, the odds of that September rate cut are
now fifty to fifty. That's what's priced into the market
(08:42):
as of today. So who knows what's going to happen.
My little opinion here, which no one really cares about,
is I think they got to quit looking at some
of this. I mean, I don't know if we're ever
going to get back to two percent inflation, Brian. But
I do know that people need to buy homes, and
we've got some big you know, whether you want to
talk about inflation in terms of CPI or not, We've
(09:04):
got a shortage of homes. We've got first time home
buyers that are trying to buy homes, and that's one
of the positives of maybe bumping these rates down a
little bit, at least to get that thirty year mortgage
down closer to six than seven. I think that would
help a lot of people out that aren't multimillionaires and
just watching their asset prices go up and up and up.
(09:25):
But that's just Bob's opinion.
Speaker 3 (09:28):
I think that's an important opinion just from the you know,
the standpoint of I mean, if you think about it,
a lot of people focus solely on, Wow, my mortgage
is a little high, and I just want to refinance
and go along with my life.
Speaker 4 (09:38):
But you may not be in this type of situation.
Speaker 3 (09:40):
But there's plenty of people out there who maybe can't
take that job of promotion that they got that requires
them to move to a different city or something like that,
because they're stuck in their house. Maybe they can't unload
their house, or or they can't afford or maybe it's
a three percent interest rate and they can't afford to
go up in terms of you know what the their
housing payment is going to be to move some and
(10:00):
then that trickles all the way down through. Now, now
there's a company out there that needs to promote somebody
is so that they can get more productivity and be
be an improved output. But at the same time they're
kind of stuck in the mud too. So this stuff
does trickle through and it has an impact on the
economy when people you know can't are stretched too thin.
Speaker 2 (10:17):
Well, yeah, and people that have multimillion dollar stock portfolios
and have paid off expensive homes, they're doing great right now.
I mean, asset prices are going up, no doubt about it.
It's the people that are trying to get started and
maybe work at two jobs and need to have a
place to live. I think that's where I'd like to
see things even And I'm not socialist by any stretch,
(10:40):
but I think cheaper money will help some of these folks,
you know, get into the homes that they that they
need and want. All right, coming up next. Millionaires, as
we just said, are multiplying. What are they doing with
their money and what you should learn from it as well.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KR see the talks dation from every
(11:01):
Day Millionaire Every day listen to Dave Ramsey.
Speaker 6 (11:05):
They typically say one of the things that turned their
life around was when they started looking at purchasing something rich.
People ask how much broke people and I've been both
brother okay broke. People ask how much down and how
much a month?
Speaker 2 (11:22):
Tonight at seven oh six, start asking how much On
fifty five r Z the talk station.
Speaker 7 (11:29):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 2 (11:49):
You're listening to Simply Money, presented by all Worth Financial
on Bob spun Seller along with Brian James. If you
can't listen to Simply Money every night, subscribe to get
our daily podcast. And if you think you're our friends
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(12:10):
ahead of Sick forty three, a crash course in financial
lessons that matter for those sending their kids off to college.
All right, Brian, we've got a new milestone to talk
about in terms of American wealth, and the number of
millionaires in the United States has hit nearly twenty four million.
Of us. This isn't just CEOs and celebrities. This is
(12:32):
everyday Americans, folks who bought houses early in their life,
stuck with the market safe steadily, and we're disciplined, and
now on paper at least they're millionaires. It begs the question,
what are these people doing right? And how do you
protect and grow that wealth moving forward?
Speaker 3 (12:50):
So I remember when being a kid, the term millionaire
conjured up images and it was Scrooge McDuck and it
was the guy from the monopoly box, who when I
was really unconfused with the guy on the pringles can.
But that was a different problem. That's a Brian problem.
But anyway, it just meant something, you know, It's meant
something more, and it's good and we're not at all
implying that you know that being a millionaire is meaningless.
Speaker 4 (13:10):
That is not the case at all.
Speaker 3 (13:11):
There's a lot of people that unfortunately aren't aren't going
to be on that trajectory, never going to get there. However,
it used to be thrown around as a term if
if you hit this status, then you are golden. You've
got nothing to worry about. Well, there's a lot of
people out there who have. And I can speak from
direct experience this week and last week, and I'm sure
next week too. And Bob, I'm sure you see this
too of people that come out and I'm just for fun,
I've been asking him the question when we look at
(13:32):
the big picture, you've been working for twenty thirty years,
You've saved in your four o one, Hey, your house
is worth this, You've got your debt under control. Congratulation
mister and missus client, Do you feel like a millionaire?
And they always look at me like a nuts And
we have to kind of remind him, don't we that
you know you've got a lot more money than you
started with. And you know, if you go back to
twenty five year old you, and if you knew what
(13:54):
sixty year old you was going to have what would
you have said? And everybody says, well, I would have
thought I was bulletproof. But yet here we worrying that
it's not enough. So we're in a new environment now.
Speaker 2 (14:03):
Yeah, Brian, what I find anecdotally, as I just talk
to people and you know, meet with clients and what
have you, and I'm interested in your thoughts as well,
it falls into two camps. In my opinion, Those that
are maybe in their sixties or close to seventy, they
still they still think of a million dollars as that goal,
you know, and they're in their set and emotionally they've
(14:24):
always wanted to get to a million dollars and to
get the point the last point you just made, you know,
they feel like if they can get there, they're rich.
The younger folks starting out, they look at that million
dollars and say, there's no way in the world I
will ever get there. And I think the truth here
that we got to educate people on is a million
dollars really isn't that much money in terms of generating
(14:48):
a retirement income stream. In other words, if you follow
the you know, proverbial rules, you know, take out four
four and a half percent. You know, to live off
in retirement. You know that's only safe forty five thousand
dollars a year of income with keeping your principle in place.
On a million dollars. Most folks live and spend more
than forty five thousand dollars. I know they get Social
(15:09):
Security too, but for most people, that's not going to
get the job done. And I think that's why we
got to get off of this this round number that
we're worried about, and instead put together a financial plan
with your goals, your numbers, what you plan to do,
and make sure that you've got a plan set up
for your life, not what some media outlet says is
(15:32):
a lot of money.
Speaker 4 (15:32):
What's saying yet, Brian Bob.
Speaker 3 (15:34):
One of my all time favorite moments of being a
financial advisor was a couple of years ago one of
my favorite clients, he just had in his head. They
were close to two million dollars in net worth and
he just had in his head, I want to see
a piece of paper with my name on it that
says dollars signed two and a bunch of zeros.
Speaker 4 (15:49):
That was so important to him.
Speaker 3 (15:51):
We had already done the financial plan and he was
struggling with retirement and pulling the trigger and just being done,
but the plan was good.
Speaker 4 (15:56):
His wife wanted him out. There were sort of some
minor health.
Speaker 3 (16:00):
Problems maybe looming on the horizon, and some other things,
and so what we did was to get him over that.
We simply pointed out, hey, you're looking at your form
and k all your investments. Well, if you want to
see a piece of paper with your numb with your
name on it that says two million dollars, let's throw
your home equity in there. There there's two million dollars,
And now can you retire and make yourself and your
wife happy because we've got your piece of paper done.
And it was kind of a funny meeting, but he
(16:20):
did end up pulling the trigger after that, and they've
kind of calmed down. And then shortly after that the
market pushed him over two million anyway, so he kind
of in that case was able to eat to half
his cake and eat it too. But let's get back
to this report. So what does this actually mean? Where
where's all this coming from? Swiss Bank UBS also came
up with some numbers. Two About a tenth of American
adults are millionaires, and we're creating another thousand of them
(16:42):
every single year.
Speaker 4 (16:43):
So again it's it's not it. This is a good thing.
Speaker 3 (16:46):
It's just becoming a little more common. And where is
this coming from? Why is this happening? Well, a lot
of it has to do with inflation. Inflation pushes everything up,
including the value of your homes and your stocks.
Speaker 4 (16:57):
Think of it this way. Prices get higher.
Speaker 3 (16:58):
We don't really like that, but companies, frankly will take
advantage of that, and they'll they'll work out a way
to you know, kind of hide a little bit more
profit margin in that as well. I'm pretty sure that's
happened out there, just in the headlines we've been reading
over the past couple of years. But in any case,
that means companies are making more money that filters into
your four oh one k, your investments, and so forth.
Everything is more expensive. A million bucks today, of course,
(17:20):
doesn't go as far as it did in nineteen ninety five.
So in fact, that same million from nineteen ninety five
is worth more than two million in today's dollars. Or
put in other words, the new millionaire is actually a
double millionaire. You need to have two million dollars to
feel like a millionaire did in nineteen ninety five.
Speaker 2 (17:35):
If that makes any sense, yep, makes total sense. You're
listening to Simply Money, presented by all Worth Financial on
Bob Sponseller along with Brian James. So let's pivot to
what are these folks doing? What are the millionaires doing
that's different if anything, And I think I think they're
doing the things that we talk about all the time, Brian,
and I hope that's what I hope is encouraging to
(17:56):
folks out there. They're not doing anything revolutionary. They're just
doing the basics and doing it for a long time.
In other words, it's not about flashy investments, it's about
solid fundamentals. They view their net worth holistically. They're not
just watching their four to one K plan. They're managing
the total picture their real estate. They're taxable accounts even
(18:17):
a small business if they own one, and they're diversifying more.
A lot of millionaires we're finding have small parts of
their portfolios in investments outside the stock market. And another
big thing that might come as a surprise, they're doing
the good old emergency fund. They're building a solid cash reserve.
Millionaires tend to keep enough in cash to avoid panic
(18:39):
selling during market downturns ever heard that before, So they've
got dry powder to pounce on opportunities when prices drop. Brian,
what are some of the other things that you see
your clients doing well that you tell them to do
and they actually listen that enable them to get to
this point in their life.
Speaker 4 (18:59):
They avoid panic. That's a huge, huge thing.
Speaker 3 (19:02):
So I had a meeting with a client yesterday, and
I was not working with them in two thousand and eight.
They were elsewhere, but apparently had a bit of a
run in with their then financial advisor who may or
may not have been acting on the.
Speaker 2 (19:14):
Up and up.
Speaker 3 (19:15):
We're going to talk about fiduciary stuff later, but that
rattled them and the market, of course, hurt everybody in
two thousand and eight, and they went to cash on
the advisor's advice, went to cash in that that felt comfortable,
felt like a good idea at the time. But now
fast forward, what's seventeen years into the future, and I
have several clients in the situation that went to cash
back then because we weren't around to help them avoid
(19:37):
that panic. But in any case, that is millions of
dollars left on the table that they should have, but
because they tried to dodge the train and tried to
time the market. Timing the market is timing. Whether you're
doing it out of greed or fear, it's all the
same thing. You're still trying to guess the next thing
that's going to happen, and that's just not a recipe
for success.
Speaker 2 (19:54):
All right. One other thought that we want to share
here is from our good friend Warren Buffett, and this
is important, and it comes down to mindset and your
skill set. Mister Buffett always says the most inflation proof
asset you own is your skill set, whether that's certifications,
leadership training, building a business. You just got to keep
your mind sharp and always be looking for ways to grow,
(20:18):
have a positive mindset, keep moving forward, improve yourself and
those are things that no market correction can never take
away from you. Here's the all Worth advice, stay diversified,
stay discipline, and treat your skills as your most inflation
proof asset. Coming up next, a massive transfer of wealth
is about to take place. You're listening to Simply Money,
(20:39):
presented by all Worth Financial on fifty five KRC. The
talk station.
Speaker 8 (20:44):
This was a mess, a mess taking up today's mess
one big It's a mess.
Speaker 2 (20:50):
So you can start tomorrow off. Time to move on
with a clean slate.
Speaker 1 (20:54):
Time to start over, Brian Thomas.
Speaker 7 (20:56):
Tomorrow morning at five start fresh.
Speaker 4 (20:58):
I find fifty five.
Speaker 9 (21:00):
Eight fifty five KRC, Cincinnati, make us the number one
preset on your car radio and on the free knew
it improved, iHeartRadio ad free never sounded so good. Fifty
five KRC the talk station.
Speaker 2 (21:17):
You're listening to simply Money, presented by all Worth Financial
on Bob Sponseller along with Brian James and estimated sixteen
trillion dollars is set to flow to younger Americans in
the next ten years, but most aren't ready for it.
And this is important to hear, not just for the
younger folks, but for the parents and grandparents out there listening,
(21:38):
who are actually the ones who are going to be
passing this money down to the next generation. Here's some
quick numbers. Surveys and analysts project seventy two to eighty
four trillion dollars in wealth transferring from baby boomers to
the younger generations by the middle of the century. That's
just twenty five years away. Most of that about seventy
(22:00):
two trillion dollars will go to airs and the rest
will go to charities. But the younger generations Brian, Gen
X millennials, gen Z, if they're expecting inherents sooner than
that surprise surprise, over half a millennials and four and
ten Gen Z folks think they're going to be getting
something sooner, way sooner, within the next five years. So
(22:21):
there's a little bit of a disconnect there in terms
of expectations and communications.
Speaker 4 (22:27):
Brian, Yeah, it can be a little dangerous. You know,
we don't know.
Speaker 3 (22:29):
This is just a survey, so we don't know any
individual stories behind these people other than they are members
of either Gen X millennials or Gen Z, so who knows.
Maybe they're simply saying, you know, mom and dad aren't
in great health, and I just know that the sooner
later is gonna you know, it's probably sooner rather than later.
Or they could be saying, you know what, I really
got to have it, or my ship is gonna sink.
That's a whole different story, but it can be whenever
we run across the situation where where clients have some
(22:52):
kind of inheritance. We know that's coming. Obviously, we don't
want it to happen anytime soon. We would certainly prefer
our preparing our parents to hang around as long as
they possibly can. But well, what I usually tell people
to kind of kind of prepare for that is, let's
not work it into the bake it into your plan.
But let's just know that if we are faced with
a decision where you know it might be a little
more aggressive to do the thing versus not to do
(23:13):
the thing, when we know there's some kind of parachute behind,
we can lean towards the slightly more aggressive side of
the decision.
Speaker 4 (23:18):
So anyway, but the.
Speaker 3 (23:21):
Issue here, what we're really talking about, is making sure
this stuff, these trillions of dollars, is prepared to move efficiently.
Speaker 4 (23:27):
Anyway.
Speaker 3 (23:27):
So there's an organization out there, Trust and Will, that
did a survey themselves. Eight and ten Americans believe a
state planning is important.
Speaker 4 (23:36):
That's not shocking people.
Speaker 3 (23:37):
Most people have a general idea that if we've got something,
I should probably make some kind of plans in case
I get hit by a bus. However, only three and
ten have a will that means put differently, seventy percent
of people that they survey don't even have a will
in place, and just one in ten of them has
a trust. I am a little less worried about the
trust thing. I think trust trust are valuable, but I
(23:59):
do not at all believe that everybody needs to have
a trust. If you've got a simple family situation, you're
comfortable with your kids inheriting money, you know I unexpected time,
you feel like they would handle it well. There aren't
complicated business structures or family partnerships or stuff like that
in the mix, and I think it's perfectly fine just
to make sure that everything has a beneficiary attached to it.
Speaker 4 (24:19):
You don't necessarily have to have a trust.
Speaker 3 (24:21):
However, if there's a divorce in the mix, or if
you're convinced that your kids might not be in the
best shape to handle money. There's a lot of reasons
that trusts are important, but I do not believe in
checking a box that's say you must have a trust,
will absolutely name beneficiaries on your accounts. Yes, everyone should
do those things. Simply a trust may be a necessity.
Speaker 4 (24:41):
What do you think about that, Bob?
Speaker 2 (24:42):
Well, on top of having all the documents in place,
and we talk about this often on this show. I mean,
we're always shocked at how many people come in here
and have legal documents in place, but have it looked
at their account beneficiaries and got their assets sided correctly
and all of that. But I think the thing we
also want to talk about in this segment is just
communication with your family, with your airs, meaning unexpected inheritance
(25:06):
without education, financial clarity, or emotional preparation can lead to
something we call sudden wealth syndrome. Think of winning the lottery, overspending, isolation,
poor decisions, and Brian, this is something that doesn't go
on nearly enough in my opinion. Family sitting down ahead
(25:27):
of time and sitting down with your kids and maybe grandkids,
even if they're part of your state plan, and just
having a discussion with them about what's likely to come
down the pike and when. I mean, we don't know
when we're going to die, but I think we got
to get our kids prepared to handle money. They need
to be financially educated and be up to speed on
(25:49):
how to properly handle wealth before they inherited inherited so
they don't make big, big, big mistakes after the day comes. Brian,
I find that these discussions aren't happening nearly enough. Do
you agree? Are you finding things different? What do you
think on this?
Speaker 3 (26:07):
Yeah, So I'm working on a case right now where
mom and dad both passed. We're elderly, but passed a
lot sooner than than anybody thought was going to happen.
And the adult children were fine, you know, weren't particularly
wealthy themselves beforehand. And then there's of course young kids
in the mix, and so.
Speaker 4 (26:25):
The the there's.
Speaker 3 (26:26):
A decent amount of assets that's changing hands. It's got
some moving parts to it, of course, as you know,
a lot of this stuff does. But I think the
the interesting thing to see is how this family, how
this young family is reacting to In the past, they've
always kind of been on defense, you know, just making
sure that ends meet, you know, and trying to just
keep things in balance and so forth. When now all
of a sudden they can go on offense. And it's
that sounds great, right, a few million dollars drops out
(26:47):
of the sky, All my problems are solved, My stress
will just magically evaporate. It's the opposite, Bob, because now
they're they're in an environment they've never been in before.
They've never been had the ability to go on offense
and look at things, as you know, in terms of
what's the best opportunity for me in terms or versus
how do I need to defend myself from some bad
thing that may happen?
Speaker 4 (27:07):
And that is extremely.
Speaker 3 (27:08):
Stressful because when you're faced with a lot of opportunities,
you got to figure out which one's the best and
what step you should take moving forward. That can be
stressful too, And so I think it's important to you know,
if you trust your family, give it, let them see
behind the curtain at some point when you feel the
time is right, help them understand what might be coming
their way so that it's not a cold water shock
when they're sitting at the table with an attorney settling
your estate exactly.
Speaker 2 (27:29):
Here's the all Worth Advice plan early, talk often, and
prepare financially and emotionally to turn that wealth transfer into
a truly lasting legacy. Coming up next, the financial talk
every parent and grandparent probably needs to have. You're listening
to Simply Money, presented by all Worth Financial on fifty
(27:49):
five KRC the talk station Mark Levin.
Speaker 10 (27:53):
Let me tell you the Internet is breeding evil, breeding evil.
Speaker 4 (27:57):
And TikTok is the main culprit.
Speaker 10 (28:00):
And I don't know what's happening with TikTok, but that
damn thing needs to be sold now, and it needs
to be cleaned up. And I don't want to hear
about free speech and everything else. It's a private company.
The company needs to clean it up because this is crazy,
which mean the communist Chinese and all the crap that
people put on this stuff.
Speaker 1 (28:16):
Mark Levin tonight at ten oh six on fifty five
KRS the talkstation.
Speaker 4 (28:23):
I do think he is too old to run.
Speaker 7 (28:25):
In twenty twenty.
Speaker 1 (28:26):
Four, fifty five KRC the talk station, you're listening to
Simply Money, presented by all Worth Financial Lumbob sponseller along
with Brian James.
Speaker 2 (28:39):
If you have a financial question you'd like for us
to answer, there's a red button you can click while
you're listening to the show right on the iHeart app.
Simply record your question and it will come straight to us.
All right, The dorms will soon be filling up again,
and with that, the tuition bills are arriving in the
mail if they have not arrived already. And while you're
(29:00):
busy figuring out how to pay for college. Here's a question.
A lot of families aren't asking are your kids and
grandkids financially ready for college?
Speaker 3 (29:10):
Brian, take us through this, So, Bob, I'm living personally
through this from both sides. So I'm working with the
organizations my old fraternity, and I am the financial advisor
for them, which means that makes me a landlord. Didn't
see that coming. But now I'm collecting rent and all
this other stuff. And I have a kid in college,
and so I am collecting rent and paying it. Not
benefiting from any of this at all because a volunteer,
(29:33):
but in any case, so now I'm talking to a
lot of college students about how important it is to
pay rent and how important it is to pay rent
on time.
Speaker 4 (29:40):
That's kind of a thing right now.
Speaker 2 (29:41):
With consuming so question, you're serving as basically the treasurer
for your fraternity now as a fully grown parent adult,
because I did that job at Miami University while I
was a member of the fraternity in college, I was
the treasurer. I collected the bills, I paid the bills.
Are they not trust seeing college kids to do that anymore? Oh?
Speaker 4 (30:03):
No, this this I did that role as well. We
in our situation.
Speaker 3 (30:07):
We need we need somebody to run the house corporation,
which is one thing, and we need somebody else to
worry about the you know, the other stuff, the social stuff.
But any case get into a crash, course of course,
and not only how my own kids think about money,
and they're they're in pretty decent shape because you know,
Dad has been a little obnoxious about it over the
past several years. But uh, you know, across the grand
swath of a lot of young people, uh you know,
the I don't think there's been a ton of experience
(30:29):
or a lot of dinner table conversations about how to.
Speaker 4 (30:31):
Kind of stay on top of things. So, uh so,
what are the things you should do well?
Speaker 3 (30:35):
Help your student figure out what the budget should be
before they get to campus.
Speaker 4 (30:39):
So we know some of the things are covered.
Speaker 3 (30:40):
You're going to be in a dorm, and the intuition
is all that stuff is in place, and your meal
plan and all that other fun stuff. But you're also
going to be in a new environment. And this is
really it's similar to when people retire. You don't know
what your lifestyle is going to be like until you've
lived it. If you're living in a cool, new town
where everything is walking distance, and it's your first time
out there, you know, exploring the world, getting out from
under mom and dad, You're probably gonna want to spend money.
(31:02):
That's no different than people who have retired and all
of a sudden they have a bunch of time. They
tend to spend a little more money too. It takes
a while to get the dust to settle, But that
doesn't mean we shouldn't attempt to put a budget in place.
Figure out, of course, you know the basics. What's what's
the basic amount of money you need to spend on
a monthly basis to keep yourself afloat. And then let's
figure out some kind of fudge factor for you know,
(31:24):
the fun stuff. You know what kind of You're gonna
go out to out to eat with your friends every
now and then, you're gonna join certain clubs. It's cool,
you're gonna need stuff from Amazon or whatever. Pay attention
to where that money goes, and then try to stick
to that weekly or or maybe a monthly cap just
something you can. Doesn't have to be perfect. We don't
need to be putting pennies and envelopes, but just have
eyeballs on it. Is super helpful. Another step is a
(31:46):
checking account, maybe even a credit card, but have a plan,
you know. I'm honestly I'm a big fan of younger
people getting credit cards early on Bob because it helps
them to pay attention. All of them come with a
cool app nowadays where you can watch and I've just
trained my kids just use their credit card for everything.
Pay it off every month, as matter of fact, go
into the credit card settings and go tell it to
(32:08):
pay off that balance every single month, and then just
watch the machine work. Swipe your card for your normal expenses,
look at it every day every other day, make sure
you recognize the charges that are hitting. And that will
do two things. It's gonna protect you from fraud, and
it's going to help you kind of understand how you're
spending if you're looking at it that often. But the
backstop is you've got money in your checking account that
(32:28):
you otherwise could use to pay for these bills, but
have it automatically pull that payment out. I think that
is a huge thing, and you're going to start to
get rewards on an early basis. Not to mention the
credit card the credit history that you were building up,
which will become important because one day it's going to
be your name on that apartment lease or mortgage and
not your parents.
Speaker 2 (32:47):
All right, Brian, I love the credit card idea and
the reward points and all that, but don't you think
you should also get your college kids a credit card
with a limit, meaning once they spend a certain amount,
that darn thing goes off. I mean, I my wife
are three sons. They're all out of college now, and
I kind of, you know, pass some edicts down from
(33:11):
on high and asked my wife to handle this. So
I didn't beat my head against the wall. But I
know what we put in place for I'm thinking of
one son in particular.
Speaker 5 (33:20):
Once, once he went to one too many concerts or
Amazon movies or whatever, that darn thing turned off, no
more spending, and that turned out to be a real
good governor switch for him and us. Do you recommend
that kind of approach?
Speaker 7 (33:36):
Oh?
Speaker 2 (33:36):
Absolutely.
Speaker 3 (33:36):
Guardrails are important, for sure. I'm not saying throw the
doors open. I'm just saying, because the opposite. I hear
the opposite a lot young people. Responsible young people sometimes
come out, come out of school, and come out of
wherever they're getting their information, thinking that credit cards are
absolutely evil and they want to pay cash for everything,
and to me, that's an extreme. It's gonna make life
more difficult anyway. And again, you're not building up credit.
(33:59):
So here's what I did with my kids, and this
worked out. I'm on the back end of this now,
so we're kind of seeing the benefits. My kids are
pretty financially responsible. They're pretty conservative anyway. I don't know
where they get that from, because that ain't me, but whatever,
maybe it comes from mom's side. But anyway, so we
name them as authorized users on our credit cards. In
that case, this is when they were young, twelve and
thirteen years old. A couple things though, Bob, See, there's
(34:20):
the reaction that this is what I'm talking about.
Speaker 2 (34:22):
First of all, to say, there is no way in
hell that I was going to allow that to happen.
But go on, yeah, they're not a no. This is
an age difference thing, and please educate me. I need
to be enlightened here.
Speaker 3 (34:34):
So first and foremost, if you're concerned like it sounds
like you are, you would have been in your situation.
I understand that every situation is different. You don't have
to tell the kids the card exists. You can shred
the darn thing as soon as it shows up in
the inbox. So, but the point is they will still
have credit. They're attached to your credit card. If you
have a good credit rating, that will filter its way
down to them because they were an authorized user on
(34:55):
a card that has a good credit rating behind it.
So we did this when my oldest was I don't
know if ten fourteen years old. She's now twenty three
and recently about a year ago, signed up for her
first big girl apartment and the credit check was not
a thing. And it was because she had had our
credit history kind of imported over to her, and she
now has her own credit card. She's paranoid, is I'll
get out? So she doesn't want she'll never overspend. I
(35:17):
just know that's her personality. It's not everybody. But again,
this was a huge benefit for our family. And so
now I've got the other two behind him, and then
once they understand how it works. Now I have armed
all three of them with a credit card, and I
just tell them, hey, on your way home, stop.
Speaker 4 (35:30):
At the grocery store and get this and use the
blue card.
Speaker 3 (35:32):
That way, I don't have to pay them back. I
can order them to do things for me. It's all
about me.
Speaker 2 (35:37):
Well, hey, but as I listened to you talk about this,
I think what you just described is probably what went
on with our kids as well. But my lovely wife
handled all of it because none of our kids had
any problems getting an apartment, least when they got out.
So I think she handled all this in the background
and just didn't tell me about it, which is which
is a good thing.
Speaker 4 (35:57):
That all your sacrifice, Carrie.
Speaker 2 (35:58):
Yeah, Amen, here's the all Worth advice. College is expensive,
but the real investment is in financial wisdom. Talk early,
talk often, and make sure your student leaves school with
a degree and some financial confidence. Coming up next, we've
got Brian's bottom line. He's going to fill in some
of the gaps here that we talked about earlier this
(36:19):
week about how the Big Beautiful Bill impacts Social Security taxes.
You're listening to Simply Money, presented by all Worth Financial
on fifty five krc the Talk station.
Speaker 4 (36:30):
This is no small matter and of course not just
one sided view.
Speaker 1 (36:34):
Use that affects you at the top end to bottom
of the hour fifty five KRZ the Talk station.
Speaker 2 (36:45):
You're listening to Simply Money. He's presented by all Worth Financial.
I'm Bob Sponsellur along with Brian James, and music can
only mean one thing. It's time for Brian's bottom line
and I'm anxious for this segment. We talked earlier in
the week and a couple times here about the big
beautiful bill and the so called credits or deductions coming
down the pike for Social Security, and we're gonna dive
(37:07):
into that in a little detail. Brian's actually gone out
and done the work and it's gonna give us a
little clarity, which is always good clarity. Tell us how
this is actually gonna work in the real world, Brian.
Speaker 3 (37:19):
That music vibe is rl burnside. Let's get this thing, Rowlan.
We're gonna talk about social Security here, so you do
you get it rolling every day.
Speaker 4 (37:27):
Already in there? What were we talking about? Social Security? Okay,
back to reality.
Speaker 3 (37:33):
So the one big, beautiful, big blah blah blah bill,
it had lots of moving parts. We're gonna be talking
about it an awful lot as we kind of discover
more things. And one of the things that came out
of it is a Social Security deduction. And it's gonna
take a little while for this to sink in in
terms of understanding how this impacts everybody, how to take
advantage of it, and so forth.
Speaker 4 (37:52):
That's what I'm want to talk about.
Speaker 2 (37:53):
A little bit.
Speaker 3 (37:54):
So new rules from tax here twenty twenty five to
twenty eight, taxpayers aged sixty five and above can deduct
up to six thousand dollars for a single single filer
or twelve thousand for MFJ married filing jointly, so of
your Social Security incomember. It's just it's just off of
that income, not your income from other sources. There's a
phase out though, of seventy five thousand dollars for an
(38:16):
individual one hundred and fifty thousand for adjusted gross. Now
at least for once, Bob, they made this easy. If
you're married, it's half if you're or if you're married
it's one hundred percent.
Speaker 4 (38:24):
If you're single, it's fifty percent.
Speaker 2 (38:25):
All right, But hey, not to take you off track,
but this is the big question I had the other night,
and you know that I wanted to get clarified. This
is not an itemized deduction. This is a deduction solely
for Social Security income right above certain income limits. Is
that what we're talking about?
Speaker 3 (38:40):
Correct, above the line well below certain income limits, it
may phase is out.
Speaker 2 (38:45):
Correct, Yeah, yeah, but it's the deduction is strictly for
Social Security income. Nothing else does not integrate with the
rest of your return, right, So really.
Speaker 3 (38:54):
I think the moving part is that we're we're worried about, Okay,
so how do I control my income so that I
can be sure that I that I can benefit from this?
Or remember if if you're somebody who if you're listening
to this, then you're you're usually somebody who has put
away a decent amount of money taking advantage of your
four one ks iras and all that.
Speaker 4 (39:11):
Other kind of stuff.
Speaker 3 (39:12):
And one thing that's going to sneak up on everybody
is RMD's required minimum distributions, so that this part will
so if you if you have a significant amount of
money in your IRA four to one case, then that
is going to eventually result in your required minimum distributions,
meaning you need to take out that required amount at
age seventy three or seventy five, depending on when you
(39:33):
were born. And so the way that this hasn't changed,
this is the way it's always been. So you're you're
going to be need to be taking about something like
four percent. Let's say that's roughly what the requirement is
that you need to take out. If that four percent
is going to push you above this these seventy and
fifty thousand dollars income limits based on your in your
filing status, then you will lose access to these benefits.
(39:55):
So what you want to make sure the way to
make sure that you can benefit from this one you've
hit requirement of distribution age is try to get your
iras and this may be hard for some people, try
to get your iras down to the two fifty maybe
three hundred and fifty thousand dollars range, which will hopefully
keep you below those seventy five, one hundred and fifty
thousand dollars limits so you can continue to benefit from that.
Speaker 2 (40:16):
So yet, perhaps yet another reason to really sit down
and take a look at these wroth conversions if that
you tire early between late fifties early sixties and when
you take Social Security, because that really amplifies the opportunity
here from a tax standpoint, Right.
Speaker 3 (40:31):
Brian, absolutely hit that window and keep your tax, keep
your income low, but use it up to make roth conversions.
Speaker 2 (40:38):
All right, sounds good? Hey, thanks for digging in digging
into this for all of us tonight, Brian, thanks for listening.
Everyone you've been listening to Simply Money, presented by all
Worth Financial on fifty five KRC, the Talk Station.
Speaker 8 (40:51):
How do you know what's true and not? In a
society where you can't believe your eyes or ears?
Speaker 2 (40:56):
If it's truth you seek.
Speaker 8 (40:58):
And you can't believe your polow Titians and you can't
believe your media you've come to, why would you believe me?
Maybe it's not the right place know how to seek
the truth, but it's a good starting point. The truth
is we have lost our mooring to the truth. The
Glenn Beck Program tomorrow night to do Pure Truth on
(41:19):
fifty five KARC, the Talk Station.
Speaker 4 (41:21):
If You're sin
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