August 7, 2025 • 42 mins
Is crypto finally growing up? On today’s Simply Money podcast presented by Allworth Financial, Bob and Brian look at whether the rise of regulation and adoption means it’s here to stay — or still too risky. Plus, if you're thinking about retiring soon, here's how to start shifting your investments to get ready.
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Episode Transcript
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Speaker 1 (00:00):
And this is why I feel you and I we
have a special relationship.
Speaker 2 (00:04):
Really, I don't deal well with Washington.
Speaker 1 (00:06):
I don't deal well with cliques, social circles, and I
don't deal well with the media. Just being honest with you.
When I come on this program and do my own research.
We talk about independent media. I am independent from independent media.
In other words, I do as I wish to do.
I do what I do.
Speaker 3 (00:23):
Tonight at ten oh six on fifty five KRZ, the
talk station.
Speaker 4 (00:35):
Tonight, how to treat your investments if retirement is in
the near future. But first, its Crypto no longer the
wild West. You're listening to Simple Money, presented by all
Worth Financial on Bob Sponseller along with Brian James Well.
For years crypto has been like this wild child, unregulated, volatile,
(00:55):
full of overnight millionaires and just as many horror stories.
Speaker 2 (01:00):
Is crypto growing up? Brian? So you know, is crypto
is a thing?
Speaker 1 (01:06):
Right?
Speaker 5 (01:06):
It is a real thing. It's not going to go away.
This is not like the beanie baby craze of the
late nineties. I remember having a discussion once with the
woman who was debating between mutual funds for her IRA
or pulling all the money out and buying beanie babies.
Speaker 2 (01:17):
And I said, ma'am, you should go deep on.
Speaker 5 (01:18):
Beanie babies, because I don't really want to work with
you if that's where your brain is. I didn't really
say that, but that's what I was thinking. Any case,
this is not you know that those are just silly
examples of stuff that people get wound up about things.
And it was sixteenth sixteen hundreds, it was tulips, and
it was real estate in the early eighties and oil
and gas partnerships and all this, so there's always something
out there. Crypto is a bit different. So for a
(01:38):
long time it's been it's been this unregulated thing. We
just kind of let happen, and we hear all the
stories about the overnight millionaires. We never talk about the
people who lose a bunch of money because that's no fun.
We like the sexy stories. So the phrase floating around
Wall Street right now, Bob, is crypto summer. Not so
much in the idea of price euphoria, but more in
the sense that this finally maybe again exiting adolescents and
(02:01):
kind of getting gaining a little more, a little more
respect in terms of being an actual financial tool that
people use. So between the development of these real world
blockchain uses, right, that's a word that's part of the
current lexicon. Now lots of industries have done something with
the blockchain. Doesn't necessarily mean that's just the technology behind it,
doesn't mean they're investing in cryptocurrency. Just means that you're
using similar technology to accomplish things.
Speaker 2 (02:22):
On their own.
Speaker 5 (02:23):
New stable coin frameworks, which which stable coins are things
that are tied generally to the US dollar, So there's
at least some rationale rational behavior, although in recent years
even those have had their kind of crazy ups and
downs etf approvals by the Security Exchange Commission, Meaning now
there's investment products and things like mutual funds that that
(02:44):
you can invest in. So could there be signs that
this might be a legit long term asset class. Well,
the first thing I think of is we call it
crypto anymoy we do only even call it cryptocurrency.
Speaker 2 (02:54):
So while I do believe that crypto.
Speaker 5 (02:56):
Is the thing and it's going to go forward right
now as we're sitting here right now talk about it
is not a currency and it hasn't been since the start.
Very briefly, there were companies out there that accepted cryptocurrency
and bitcoin at least for payment for their products and services,
and twenty fourteen, Microsoft did it for a little while,
and they suspended it in twenty eighteen and really never
got back to it because and Tesla did the same thing.
(03:19):
This was early twenty twenty one for direct purchases of
their vehicles. They stopped in May of twenty twenty one. Basically,
the concern was Elon Musk said, well, this is going
to create a lot of environmental problems because of bitcoin
mining and so forth. Realistically, though, Bob, it was because
when you are a company that sells a legit product
and service, that means you have accounts receivable. People owe
(03:39):
you money. If that's termed in US dollars, then you're fine.
You can tell the stock market what you're expecting. If
it's termed in a cryptocurrency that is worth half what
it was yesterday and twice as much as tomorrow, then
that is not something that the stock market likes. So
you can't have your accounts receivable bouncing around that much.
But in any case, there's a lot of moving here
in this space.
Speaker 4 (03:58):
All right, Let's back up one step here and talk
about the word blockchain. You know, I listened to an
article this morning from the current SEC commission or talking
about blockchain and the crypto industry is really gung ho
right now. You know, you talked about a crypto summer.
They want to get crypto and a bunch of stuff
(04:18):
trading on the blockchain to make it more mainstream. Talk
about what that means, Brian, What does it mean to
put crypto and other things on the blockchain as a
vehicle to train and exchange things.
Speaker 5 (04:32):
Now, the blockchain is nothing more than a than a
ledger that lives on every computer that's associated with all this.
That means if you're an individual person, you have a
representation of it on whatever device you're using. If you
are a big financial institution, you have the same representation.
The whole point of it is if everybody has a
copy of where these dollars, where these these these cryptocurrencies are,
(04:54):
and how many there are, then that means nobody can
really be too secretive about it. Now we don't necessarily
know who owns, but we know how many are out
there and where they are located.
Speaker 2 (05:03):
So that is the blockchain.
Speaker 5 (05:04):
The idea of putting a copy of each of each
of these sort of inventories on every device in the
universe that is participating in these types of systems. So
that's probably where things can get a little more revolutionary. Well,
how can we take advantage of that technology, and the
idea being that this is what takes it out of
the hands of the banks, because it is a it's
a the it's sort of a custodian of sorts, meaning
(05:26):
that everybody has a little bit of it in their
own corner of the world, versus a bank that is
the custodian, and we'll only report on what it has
because there are there are risks, There are stories out
there we don't need to get into today, but plenty
of plenty of points over history or financial institutions kind
of cook the books a little bit and made up things,
you know. I think back to Enron, for example, which
had all of those weird little backdoor partnerships. Some of
(05:48):
them are on the balance sheets, some of them were not.
If we're using a blockchain type of a structure, that
can't happen, So that provides a little more transparency. Now,
this is not yet out there in the universe where
I would say the average person can really rely eye
on it.
Speaker 2 (06:00):
But it's where we're heading.
Speaker 5 (06:01):
It's where we're going in terms of being able to
keep track of financial information, to keep things hopefully a
little more fair, definitely a little more transparent.
Speaker 4 (06:08):
Well, I know, bitcoin and ethereum are already traded on
sec regulated ets. You can buy and sell that stuff.
You know, you don't have to have a coin based
wallet to do it. You can now trade this stuff
through regular channels. That's already in place. Now we're talking about,
you know, members of Congress are talking about something called
the Genius Act, legislation that establishes a regulatory framework for
(06:34):
stable coins. Talk about what this Genius Act is and
really what that could mean if we take the next
step you know forward here in quote unquote normalizing you know,
crypto on the blockchain.
Speaker 2 (06:49):
So the Genius Act we were talking about before, this
is legislation that's going to give up provider regulatory framework
for stable coins. And again, those are the ones that
are are tied directly to the US dollar.
Speaker 5 (07:00):
The US dollars we're sitting here right now is still
the currency of choice for the rest of the world.
Whether they like that or not, is not necessarily what
we're talking about today, But we are still the chosen
currency for the rest of the world, and so the
Genius Act puts a regulatory framework around that UH and
so that that tying to the US dollar makes them
a more secure investment than any of these other cryptocurrencies
that aren't there. So the Act is going to establish
(07:21):
guidelines for banks in any of these other financial institutions
that issue these stable coins, and some safeguards for safe
stable coin holders. Now, this is going to be different
than you know, your your I'm not sure there's going
to be that many YouTube influencers talking about stable coins.
It's a little different than that speculative side right now,
I think we associate the UH, the the speculative nature
of crypto with its entire utility. Remember, cryptocurrency is supposed
(07:44):
to be when it was originally thrown out there, it
was supposed to be a medium of exchange for goods
and services, just like any other crypto or just get
any of the currency. It has not played out that way.
So but but the goal of this Genius Act we
want to keep we want to kind of keep make
sure that we have a better track of again focusing
on the stable coins, not necessarily that those coins and
(08:04):
all the weird stuff that's out there purely for speculative purposes,
but making sure that we have a good structure where
average people can invest and trust it a little more
than our current situation.
Speaker 4 (08:15):
You're listening to Simply Money, presented by all Worth Financial
lumbob sponseller along with Brian James. I think it's a
good time to point out here that not all crypto
is created equal. There are thousands of digital currencies out
there right now, many of which have little use case,
no transparency whatsoever. And we're created just kind of as
(08:36):
short term hype. But the maturity of this space isn't
happening evenly either. And I think another reminder is crypto
is not a business. It's just a medium of exchange.
It doesn't produce any earnings, it doesn't pay dividends, it
doesn't make any products, no differently from paper US currency.
Speaker 2 (08:57):
By the way, its value.
Speaker 4 (08:59):
Is just based on what someone else will pay for it,
you know, pure supply and demand, right Brian.
Speaker 5 (09:05):
Yeah, And when when I wind up talking about crypto,
and it's almost always because a client's child has gotten
into it and has either done really well or has
gone the opposite direction on them. And that's their biggest
concerns are, well, what is this stuff? And is this
something I should have in my portfolio? Should I be
worried about my kid dabbling? And so on and so forth.
And my answer there is it's not yet at a
(09:28):
stage where where we feel it plays a role yet.
Speaker 2 (09:31):
In a financial plan.
Speaker 5 (09:32):
I don't think we'll always be there for you know,
I'm not discounting it forevery because there is actual utility
to this versus some of those other goofy things I
was talking about earlier, like beanie babies.
Speaker 2 (09:40):
Crypto has the utility. It serves a purpose.
Speaker 5 (09:41):
It can be used in a way as an efficient
way to transfer money for the purchase of goods and services. However,
it's not being used that way right now. It is
a speculative asset.
Speaker 2 (09:51):
That's why. That's why teenagers and.
Speaker 5 (09:52):
YouTube influencers are are all over it, and so so
the answer there, should I be worried about my kid,
just make sure that your kid understands, you know, the
these these kind of crazes come and go with a
speculative nature.
Speaker 2 (10:04):
And I'm only referring to that side of it a
speculative nature.
Speaker 5 (10:06):
Eventually he is gonna hit a crescendo and back off,
Maybe not anytime soon, as lots of people start to
figure this out. But you can be on both sides
of it. If you're on the wrong side of some
obscure currency that everybody likes until they don't, then you're
gonna leave a lot of money on the table.
Speaker 2 (10:19):
So I think where this this is. Sometimes I do go.
Speaker 5 (10:22):
On and Reddit and I read those Wall Street Bets
comments and things like that, and it reminds me of
why I have a job as a financial planner. But
there are people out there that just revel and how
much money they lost in something. That's all great, but
make sure you have your make sure your ship floats
before you get into these types of things, and don't
assume it's gonna be the the answered all your problems.
Speaker 4 (10:39):
All right, Well, Brian, let's talk now to the regular
old person out there or couple trying to plan for
their retirement, you know, building a diversified, well constructed portfolio
and financial plan like we always talk about, does crypto
belong in a portfolio like that? And how much is enough?
The right amount? You know, how much is too much.
(11:01):
I will never forget the talk I heard just in
March of this year from the chief strategist at JP Morgan,
where he stood on a platform in front of hundreds
of people and basically called Bitcoin in ethereum a fraud.
Speaker 2 (11:16):
And you do not hear too many of these kind.
Speaker 4 (11:19):
Of people talk about anything in that black and white
of a term, because you risk alienating and upsetting a
lot of people. But he he was convinced that this
stuff is nonsense. So what say you as far as
does this stuff even belong in a portfolio at all?
Speaker 2 (11:38):
You know, I forget about.
Speaker 4 (11:39):
Day training and trying to create money out of thin
air in five or ten minutes.
Speaker 2 (11:44):
That that's a whole different game.
Speaker 4 (11:45):
I'm talking about buy and hold, you know, allocation strategy
for regular old retirees. Do you think this has a
place in a portfolio right now? In twenty twenty five, you, you.
Speaker 5 (11:55):
And I were did that same talk, and I remember
we heard it, and I followed him for my entire
career because he's just a really really sharp guy, and
he's moved around a couple of places, super smart guy,
and I love his Irish accent. But I remember hearing
him say that, and you and I were a different
tables looked at each other, go.
Speaker 2 (12:08):
Does he really just say that? Does that really wear?
Speaker 1 (12:10):
Well?
Speaker 2 (12:10):
Okay, cool?
Speaker 5 (12:10):
Yeah, But what he's really referring to again, it's that utility.
What does crypto do? It kind of goes back to
a little bit of the Internet companies from the age
where you didn't have to make a profit. You just
had to have a cool story and a sexy logo
and a cool website from thirty years ago, and you
can make bazillions of dollars because that was all it
took to attract investors. I think that's the stage where
we are with crypto again. Just like those Internet companies,
(12:32):
they became some of them became real things, and they're
the ones we talk about today. Other ones are ancient
relics of a time gone by. Crypto is going to
go through that same stat somebody's gonna come out of winner.
There's gonna be several winners, and there's gonna be a
heck of a lot of losers. Make sure you're on
the right side, is it part of your portfolio, wouldn't
go any more than ten percent, and be prepared to
learn a lot about it.
Speaker 2 (12:50):
Here's the all Worth Advice.
Speaker 4 (12:51):
Crypto may be maturing, but it's still not a core
asset yet. Use it carefully, sparingly, and always with your
eyes wide open. Coming up next, there's a decent chance
that you or someone you know will live past the
age of ninety. We're going to talk about what that
means for your savings, your lifestyle, and your long term plan.
(13:12):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the Talk.
Speaker 6 (13:17):
Station 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 4 (13:43):
You're listening to Simply Money, presented by all Worth Financial
on bob'sponseller along with Brian James. If you're close to
or already in retirement, what should you actually do with
your investments?
Speaker 2 (13:54):
Right now?
Speaker 4 (13:55):
We've got a practical checklist tailored for retirement success in
uncertain times, and that's coming up straight ahead at six
forty three. It used to be that retirement planning was
built around the assumption that you'd live to I don't know,
eighty five years old or so. But according to a
new report, most people or more people, I should say
(14:15):
more people are living well into their nineties and some
even past the age of one hundred, and that changes
the entire game.
Speaker 2 (14:23):
Brian, Yeah, that's right.
Speaker 5 (14:25):
So this is a report coming from JP Morgan, their
Annual Guide to Retirement. So this fastest growing age group
is in America's people over age eighty five. Yes, I
said eighty five. That is the fastest growing age group.
If you think about how this stuff works over over
a lifetime. What we're talking about here is health in
health technology and medical breakthroughs just keeping people around longer.
(14:46):
So living to one hundred is no longer nearly as
rare as it used to be. I'm not sure what
Willard Scott's going to do if he can't talk to
people that are over a hundred, because there's just too
many of them to to keep up with.
Speaker 2 (14:56):
If he's still doing that.
Speaker 5 (14:58):
So a sixty five year old couple today, there's a
fifty percent chance that at least one of them lives
past ninety two, and more people are making it to
one hundred than ever before. That is super great news
for your health, but it sometimes it's going to make
the math a little less efficiently. But I will say
I always have when I do financial plans, you probably
see the same thing, Bob. What we'll tell people, Look,
I'm planning for you to live out to your early
(15:18):
mid to early nineties at least. And everybody says this
is when we get the list of all the aunts
and uncles and when they died, and my parents had
this problems, I'm not going to live past eighty two.
Well that's great, except for that's not the risk. You've
got plenty of money to die early. I'm worried about
you outliving your assets. So we are going to assume
that you live a little bit longer than you might
think anyway, just because that's the safest way to do it.
(15:38):
So remember we're talking about thirty years. If you're re
tired sixty five and you go to ninety five, that's
thirty years of retirement. That's fifty percent of the life
you will have already lived by that point. And that's longer.
It could even be longer than you spent during your
working career. If you're not using the correct life expectancy.
You could very well run out of money just at
the time it becomes most stressful when you have the
least ability to go out and get a job and
(16:00):
work and create income of that kind of thing.
Speaker 4 (16:03):
Yeah, Brian, I have similar conversations to the one you
talked about. You know, occasionally you'll have someone come in
and I look at this as a rationalization for not
either not saving enough to prepare for retirement or rationalizing
spending too much. And when we stress test and run
the plan and it shows them running out of money
potentially at age eighty one, you know, you'll occasionally have
(16:26):
someone say, well.
Speaker 2 (16:27):
That's not going to happen to me.
Speaker 4 (16:28):
You know, my aunt's like you said, aunts, uncles, parents,
they didn't live past age seventy nine. And if you
don't plan for that longer term life expectancy, and we're
talking about here's some major longevity risks like rising healthcare
costs and inflation, which people don't factor in, you're setting
people up for failure. And then you're getting into where
(16:50):
you're being dependent on loved ones, kids, grandkids to take
care of you. And I know for most people that's
not a situation that they want to find themselves in.
So I agree, Brian. Every plan I bill, we're looking
at ninety four ninety five on average, again, just to
make sure we've stressed tests that plan against all different
(17:12):
scenarios to make sure folks don't run out of money.
And we talk about, you know, just average healthcare costs.
I mean, I think we got into this yesterday. You know,
one hundred and seventy five thousand dollars or so per person.
That's just regular healthcare costs, not counting the long term
care need. You got to factor that into that plan
(17:32):
on top of living potentially into your nineties.
Speaker 2 (17:35):
Yeah, let me dig into that, Bob a little bit.
Speaker 5 (17:36):
That that one hundred and seventy one thousand dollars number,
that that what we're talking about there is what are
the costs for Medicare premiums?
Speaker 2 (17:43):
What are the costs for a supplemental.
Speaker 5 (17:44):
Policy, because that's a choice you would make, but most
people do Medicare will get about eighty percent of your
health care costs. If you choose to do a supplemental
and everybody should at least learn about it, then that's
going to catch the other twenty percent. There's also Medicare
advantage gets a little more complicated that kind of thing,
But in any case, that's where that one hundred and
seventy thousand dollars figure comes from. And if you divide
that by thirty years worth of retirement, it's only about
(18:05):
fifty five hundred dollars or so per year, and double
that for a married couple. That's what we bake into
our plans when we create them. But that's what people
should expect. And if you think about that, do the
quick math. Half of that is the medicare premiums themselves,
and then the rest of it is a stuff that's
maybe a little more controllable copays and those kinds of things.
But we still need to have that separate budget out there.
And then we talk about long term care that is
(18:28):
not included in those figures. That's going to be an
extra three hundred fifty thousand dollars should it come up
for you.
Speaker 4 (18:34):
Yeah, And another thing I want to touch on here
is inflation. We find a lot of times people are
just too conservatively invested. They've got too much money sitting
in cash and low yielding assets, again not factoring in
the high probability that this money is going to need
the last thirty to thirty five years, not fifteen to
(18:56):
twenty years, and you've got to have a little growth
left in that portfolio. I mean, that's easy to do
if you take on a little bit of volatility on
a responsible basis. Make sure your retirement portfolio is growing
at a rate to outpace inflation so that money lasts longer.
Brian talk about a couple other things that we should
(19:16):
be doing to plan for longer life expectancy.
Speaker 5 (19:20):
Yeah, so that the one thing you might consider is
can we create some protected income streams?
Speaker 1 (19:24):
Right?
Speaker 5 (19:24):
Some of the stuff you may not have had control
over what I would already put in this category. If
you happen to have a pension, it's a rare thing nowadays.
If you happen to have a pension, then that's an
income stream. Make sure you're maximizing your ability to get
social Security and coordinating with a spouse.
Speaker 2 (19:37):
If you're married, maybe you turn yours on now and
I turn mine on later.
Speaker 5 (19:41):
That way we'll benefit a little bit from both sides
current cash inflow as well as some increases on one
of the other, and maybe vice versa or whatever. But
if you for a more high net worth family, if
there's more resources floating around there, look around, get think
differently about about your portfolio. You may have been growth oriented,
accumulation staged oriented for the for the you know, the
earlier part of your life. Look for structured income vehicles
(20:03):
or possibly layer layering in some buffer ttfs, which are
which are more about bringing in the growth but also
kind of mitigating the bumps of the market against you
can kind of preserve the principle that will someday generate
income for you to retire off of.
Speaker 2 (20:16):
Here's the all Worth advice.
Speaker 4 (20:18):
Living longer is a gift, but it comes with planning responsibly.
Your money needs to go the distance. Coming up next,
the newest way scammers are trying to rip you off.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the talk station we call them
every day Millionaire, every day listen to Dave Ramsey Rich.
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And how much a month? With days eight seven, start
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Summer is here in the heat is on. Stay cool
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You Center.
Speaker 3 (20:56):
The five soldiers shot at Fort Stewart in Georgia are
all in stable condition and expected to recover. Brigadier General
John Lubis said soldiers were able to subdue the suspect, but.
Speaker 5 (21:07):
I know that his soldiers in the area that witnessed
the shooting immediately and without hesitation, tackled.
Speaker 2 (21:15):
The soldiers subdued him that allowed law enforcement to then
take him into custody.
Speaker 3 (21:19):
Lubis identified the shooter as Sergeant Cornelius Radford. A meeting
between President Trump and Russian President Putin will reportedly take
place as early as next week. Trump plans to meet
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President Zelenski together. The president has been pushing to end
the fighting. President Trump is unveiling a one hundred billion
(21:41):
dollar investment from Apple. The iPhone maker will invest in
US manufacturing to increase domestic production and avoid tariffs. Apple
has now pledged six hundred billion dollars in investments. I'm
Brian Shuck.
Speaker 7 (21:55):
This is fifty five KARC and iHeartRadio station.
Speaker 4 (22:01):
You're listening to Simply Money, presented by Allworth Financial on
Bob Sponseller, along with Brian James, joined tonight by our
good friend Josile Erlik from the Greater Cincinnati Better Business Bureau. Josile,
thanks for making time for us tonight, and I know
you've got a lot of good updated information to share
with us about scams that are out there.
Speaker 7 (22:23):
Oh, there were so many to pick from. It's really unfortunate.
But scammers impersonating the government, including the Federal Trade Commission,
is nothing new.
Speaker 8 (22:33):
But here's a new twist.
Speaker 7 (22:35):
Scammers are now calling themselves FTC agents, and they're giving
you fake badge numbers and fake ID cards, all to
convince you that they are who they say they are. Now,
just so we're clear, the FTC does not have agents.
These scams usually start with somebody reaching out about a
supposed urgent problem. Maybe it's a computer pop up saying
(22:57):
you have a virus and you need to call it support.
Speaker 8 (23:00):
We've all heard.
Speaker 7 (23:01):
About that scam, or someone claiming to be Amazon or
your bank insisting there's something wrong with your account. They
might even say your identity has been stolen or somebody's
trying to take money out of your account. Once they've
got your attention with these critical issues, they transfer you
to this alleged FTC agent to supposedly help you resolve
(23:21):
the issue.
Speaker 8 (23:22):
Now.
Speaker 7 (23:22):
That person may give you proof that they're from the FTC,
like that picture of an ID with a badge number,
both of which are fake. This agent may even try
to enlist your help to catch the bad guys as
a way to gain your trust. Their ultimate goal, though,
is to convince you to give them access to your money.
That is something you don't want to fall for now.
(23:46):
Along the same lines as the FTC scam, we've talked
before about the jury duty scam, where some official calls
you to say you have a warrant out for your
arrest for not showing up for jury duty, but if
you pay the fine, it'll all go away. Well, the
other day, one of my associates was called by one
of these guys, so she decided to play along, And
(24:06):
I just wanted to tell your listeners exactly how this
went down with her and how easy it is for
somebody to get caught up in a scam like this.
She got a call from both a sergeant and a
lieutenant alleging she had a federal warrant out for her
arrest for not showing up for grand jury summons. These
(24:27):
guys even knew her home address and said she'd signed
for the summons, then never showed up, which resulted in
the federal arrest warrant. Oddly enough, they couldn't give her
a copy of the alleged signed summons, as, according to
the scammers, this was an active investigation. They said she
now had two felony warrants for her arrest and needed
(24:47):
to post bond of more than fifteen thousand dollars to
avoid jail time, and if she didn't post the bond,
she'd have to pay one hundred and fifteen thousand dollars
for her failure to appear. They also told her she
was under a gag order not to say this, not
to share this active case with anybody else, meaning don't
tell anybody who might convince you that you are being scammed.
(25:10):
Here's the interesting part. She was supposed to meet this
bondsman at a gas station to make this fifteen thousand
dollars bond payment.
Speaker 8 (25:19):
Can you believe it?
Speaker 2 (25:20):
Now?
Speaker 7 (25:21):
This is how this is how nicement our government is.
They told her, since this was a federal court case,
and in lieu of her having to drive all the
way to Washington, d C.
Speaker 8 (25:30):
To pay the bond.
Speaker 7 (25:32):
Our government conveniently offers roving bail bondsmen.
Speaker 8 (25:36):
Isn't that fabulous? Now?
Speaker 7 (25:38):
They told her once she paid the bond, a date
would be set for pre trial and sentencing. These guys
were so convincing, and they lead with one scare tactic
after another. They also told her if she even set
foot on any government property, she was going to be arrested, booked,
and jailed immediately, which means don't involve the police, who
(25:59):
may tell you you're being scammed.
Speaker 8 (26:01):
They even texted.
Speaker 7 (26:02):
Her a picture of the alleged signed and notarized arrest
warrant from the US District Court. Now, this is a
great example of how somebody can get caught up in
a scam. These guys are good at what they do,
and in the heat of the moment, when they're coming
at you rapid fire with scare tactics, when you think
you're cut off from discussing with your friends and family
(26:23):
and you're afraid to go to the police, it's easy
to believe what you're being told.
Speaker 2 (26:28):
Yeah, those are some scary stories.
Speaker 5 (26:30):
It does seem easier to get to people when we
bring the government into it, because people are terrified of
hearing directly from any government agency.
Speaker 2 (26:38):
Another one I'm hearing a lot about is the DMV.
Speaker 5 (26:40):
There's a lot of texting things going around, and I
hear that from my own clients, and that has happened in
my own family. I've got I bet if I look
at my spam folder, I've got some myself.
Speaker 2 (26:48):
Right now. I've gotten you. I've gotten five of them
in the last six weeks.
Speaker 5 (26:51):
Brian, Well, knowing you, Bob, those could be legit, you
might want to head down to the DMV.
Speaker 2 (26:56):
I'm getting the DMV and being arrested. I got a
lot going on in my life.
Speaker 4 (27:00):
You'll tell us about the tell us about the DMV stuff.
Speaker 8 (27:06):
Well, I got you both beat.
Speaker 7 (27:07):
There was one week where I got three or four of.
Speaker 8 (27:09):
These a day.
Speaker 7 (27:10):
So the text says, if you don't pay, they're going
to report you to the DMV violation database, whatever that
might be. They're going to suspend your vehicle registration, They're
going to suspend your driving privileges. You could be prosecuted
and your credit square will be affected.
Speaker 8 (27:24):
Now they've got you coming and going.
Speaker 7 (27:25):
With anything that you might be afraid of there, including
not being able to drive.
Speaker 8 (27:30):
In another version of the scam.
Speaker 7 (27:32):
The text comes from a toll company like Easy Paths,
and they want you to pay for an unpaid.
Speaker 8 (27:36):
Toll or you're going to be subject.
Speaker 7 (27:38):
To the same penalties the exact same verbiage in that text.
In both scenarios, they demand immediate payment via the link
they provide, or you're going to get your license suspended
or have further legal action. Interestingly, both versions have a
note reply why, like you see on a text to
confirm that you have a doctor's appointment or whatever and
you're going to be there.
Speaker 8 (27:59):
They have reply why.
Speaker 7 (28:01):
Of course, reply why means that it's just confirming to
the scammers that they have an active phone number and
your number was now going to be passed around as
fodder for a whole host of other text related scams. Now,
the newest scam naming the DMV, is tied to your
real ID, and this is how that scam works. You
get a text or email from somebody who says they're
(28:21):
from the DMV or sometimes the Department of Homeland Security.
They say you can skip the line and.
Speaker 8 (28:27):
Expedite your application for a real ID.
Speaker 7 (28:29):
You just have to click a link to share your
information or pay a fee it's a phishing scam just
to steal your money or your personal information. The only
way to get a real ID is by going to
the DMV in person. You cannot submit an application online
or by mail, and nobody can expedite the process.
Speaker 8 (28:48):
One final thing is the texting scams.
Speaker 7 (28:51):
From the USPS or any delivery service. They tell you
that you have a package missing. It's out for delivery.
We have a address, you name it. That text message
will say click a link to fix the problem.
Speaker 8 (29:05):
That is a scam. Scammers want you to click the
link in their message.
Speaker 7 (29:09):
To do it will take them take you to a
bogus website that looks exactly like the USPS website or
the delivery website. Clicking the link may install malware on
your phone or whatever device you're using, giving scammers access
to all the information you have stored on that device.
(29:29):
If you think a text is about a real delivery,
don't go to the website given. Go to the actual
website where you ordered the product from and find the
tracking information there.
Speaker 4 (29:41):
All right, Wow, a ton of stuff to be thinking
about today. And I don't know about you, Brian. This
is infuriating to me to just know that all this
is going on out there. But Joe Cial, thank you
to you and your team for being out there, you know, studying,
monitoring all this stuff and bringing it to our attention today.
Speaker 2 (30:00):
Really appreciate all the great advice.
Speaker 4 (30:02):
If you're listening to Simply Money, presented by all Worth
Financial on fifty five KRC, the Talk station, the natural
world develops slowly.
Speaker 6 (30:13):
Forming over the course of millennia.
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In our world developments. We have a developing situation happened fast.
The latest developments, today's developments. This is just developing out
of the Middle East. Check their ability to develop a
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what's developing? Quite a striking development now right now it's developing.
Speaker 7 (30:35):
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Speaker 4 (30:56):
You're listening to Simply Money, presented by all Worth Financial.
Bob Spond Seller Law with Brian James. Do you have
a financial question you'd like for us to tackle. There's
a red button you can click on while you're listening
to the show right there on the good Old iHeart app.
Simply record your question and it will come straight to us.
If you're staring at your retirement portfolio wondering whether to buy,
(31:19):
sell or hold, you're not alone. This year has been
quite a roller coaster so far, and when you're no
longer contributing to your four one K or just about
to start drawing from it, that volatility quickly feels very personal.
Speaker 2 (31:35):
Brian.
Speaker 4 (31:35):
Let's get into some of the challenges here for folks transition,
transitioning into retirement and the things that we need to
be looking at. You know, when we turn that pile
of money into an income distribution strategy.
Speaker 5 (31:50):
Sequence of return risk, Bob, that's really where That's a
thing that retirees face early on. Whether it happens or
not to them, obviously, that's a matter of what the
universe wants to do to us on a daily basis.
But sequence of return risk isn't something that we think
about when we're saving, or it doesn't really matter when
I'm saving.
Speaker 2 (32:08):
I'm young.
Speaker 5 (32:08):
I'm twenty thirty years old, and I'm putting money in
my four oh one. Okay, the market's gonna go up,
it's going to go down. I don't really care when,
because I've got such a long frame of such a
long period of time. But when I retire, that nest
egg that I've spent the better part of my life
building will play some role in producing income for me
to live off of. Maybe I'm going to push it
to the back end of retirement and lean on my
other sources of income for a little while, or maybe
(32:30):
I need to tap into it right away. That's different
by every individual that we do a financial plan for,
but sequence of return risk simply means when does the
market do what. The worst thing that can happen to
anybody in retirement is if we know, for example, take
anybody who retired in twenty twenty one, the immediate thing
that they were faced with was twenty twenty two, which,
believe it or not, was one of the we don't
(32:50):
think of it this way, but it was one of
the five worst years that we've ever had in the
stock market. So if you retired in twenty twenty one,
the first thing your nest egg did was take a
giant step down. That's a problem. It doesn't have to
be a ship sinker, but it can happen to anyone.
So you want to kind of make sure that when
you're doing your financial plan, build something that you can
kind of consider what I call the hunky dory scenario.
In other words, nothing bad ever happens again, and we
(33:12):
get an average of I don't know, five to six
maybe seven percent rate of return?
Speaker 2 (33:15):
How does it look?
Speaker 5 (33:16):
And then right side by side with that, you can
do a stress test, which basically means, let's take twenty
percent of my assets and make them go poof and
then run all the numbers again.
Speaker 2 (33:25):
Now, am I okay?
Speaker 5 (33:26):
If your plan is still successful with that, then you
are able. Then that indicates that you are indeed able
to handle sequence of return risks. We can't control it
the dangerous part, Bob. So for those retirees in twenty
twenty one who have had to face twenty twenty two
because the universe selected them, they were very, very tempted
to I'm retired.
Speaker 2 (33:44):
Now I've got to protect, protect, protect.
Speaker 5 (33:45):
Therefore, I'm going to take my assets out of the
market because the market is now scary.
Speaker 2 (33:50):
The market didn't change. You did.
Speaker 5 (33:51):
The market's still doing the same thing that has always done.
You can't try to time it that way and be protect.
If you will lock in those losses and you miss
out on the twenty three and twenty four that would
have giving you all that money back, and then.
Speaker 4 (34:01):
Some yeah, a couple things just to react to you
what you laid out there. I mean, I think this
sequence of return risk is often new. It's something people
don't consider as they head into retirement.
Speaker 2 (34:11):
And here's why.
Speaker 4 (34:12):
When you're in that accumulation phase, you really don't care
what the market does volatility wise on a year to
year basis. All you care about is what's my average
rate of return over the long term? And am I
amassing enough money when you turn that into a monthly paycheck.
You know, this is where volatility can really eat into
(34:33):
your portfolio if you've got everything in stocks or you
don't have a plan. And you know, Brian, I love
the bucket approach. I mean, last time I checked, the
market goes up even in any kind of major market
downturn ninety four percent of the time over any three
(34:53):
year holding period, the market's up.
Speaker 2 (34:55):
What do I mean by that?
Speaker 4 (34:57):
You can eliminate a lot of this sequence return risk
by just getting some money out of harm's way, meaning
one to three years worth of living expenses or cash
flow needs. Get it out of the market all together
and have it at more conservative investments, and that way
people have the peace of mind of knowing, hey, I
got my three year you know nut covered here. I
(35:20):
don't need to worry about, you know, any short term
market volatility because I've got some money out of harm's way.
I think the other thing sometimes people don't think about
is what they're actually planning to spend. This has been
one of the most surprising things that I've run into
in my career is and I'm talking about people with
a lot of money, with high income people, when you
(35:41):
ask them what they actually need to spend or want
to spend in retirement, they haven't thought about it because
they just live off they've been living off that very
high paycheck and that it really hasn't dawned on them
that that paycheck's going to go away. And now you know,
not that we need to budget down to the level
of know how many packs of gum you buy per month,
(36:02):
but you at least need to have some round numbers
of what your spending is going to be, because that
can surprise some folks if they don't do any planning.
Speaker 5 (36:10):
Yeah, and and honestly, I think one of the things
I talked to my clients about. And there's people out
there who are in this situation. The market is essentially
we're a little bit below the all time high that
we had in February, but we've gotten back the initial
terror related panic that bottomed in early April. We're kind
of back to where we were before that. So if
you are somebody who's in this situation, if what Bob
just said resonated, hey, we got it. We wanted to,
(36:32):
you know, put fifty thousand dollars into the kitchen, or
we need to buy a car or whatever. We know
there's some there's money, there's a need for spending coming
up soon. Well, you know what, now is the time
to go ahead and carve those assets out because it
will be far more important that need is coming up
no matter what. Right, you know, you're gonna have to
spend the dollars for whatever the thing is. And that's
just life. So you want to take it when it's
the most advantageous time. Guess what that time is. Now
(36:54):
the money is there, and take it. And then I
would also say it would be a good idea to
think to the next one, and is there another something
coming up in the next two or three years that
we should be planning for differently. Now is the time
to carve that out and take and make hay while
the sun shines, because sooner or later the market's going
to go the opposite direction. You'll still have that expense,
but then you'll have to take the loss.
Speaker 2 (37:16):
Yeah.
Speaker 4 (37:16):
Again, working with an advisor who really understands this. Converting
people from pre retirement to retirement makes a huge difference,
and sit down and do the work in advance so
you don't have surprises coming down the road. Here's the
all Worth advice in retirement. Market volatility isn't just noise.
It's an opportunity to fine tune your income strategy and
(37:37):
stay on track for the long haul. Coming up next
Brian's bottom line, where he gets into some long term
care planning. You're listening to Simply Money presented by all
Worth Financial on fifty five KRC the talk station Mark Levin.
Speaker 1 (37:52):
Let me Teyson, the Internet is breeding evil, breeding evil,
and TikTok is the main culprit. And I don't know
what's happening TikTok. 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.
Since a private company, the company needs to clean it
up because this is crazy when the communist Chinese and
all the crap that people put on this stuff.
Speaker 2 (38:15):
Mark Levin tonight at ten oh six on fifty five
krs the talkstation. Have you been notified that your subsidy
for Obama.
Speaker 7 (38:23):
That next month I have to choose between groceries for
my kids or gas for my car.
Speaker 2 (38:27):
Talk about it here fifty five KRC the talk station.
Speaker 4 (38:36):
You're listening to Simply Money, which is i'd a by
all Worth Financial Lumbob sponsorer along with Brian James. And
it's time for Brian's bottom Line where he shares some
wisdom about long term care. And this is a guy
that's been dealing with clients for almost thirty years. Brian
can't wait to hear what you have to share with
us today. So, Bob, this comes from some meetings I've
had very very recently. Obviously, long term care is it.
Speaker 5 (38:59):
Can be the boogeyman, and when it comes to financial
planning because it's an expensive it's an expensive proposition for
people to have to face. So let's throw some numbers
out just so we know exactly what we're shooting at.
Speaker 2 (39:08):
Long term care where, of course we're talking about end
of life type.
Speaker 5 (39:12):
Care where you need a little extra help, can no
longer really be independent and trying to make you Comfort'm
not quite hospice, we're not talking about that. We're talking
about you know, those last few years there. But so
just cost wise, what we're thinking, what we're looking at
in this area, it's about one hundred and fifteen thousand
dollars somewhere in that neighborhood, one fifteen, one hundred and
twenty per year for a stay in a nice long
(39:35):
term care facility. The average stay for end of life
care is two and a half to three years. So
put differently, I need about three hundred and fifty thousand
dollars to cover my long term care needs.
Speaker 2 (39:45):
And people hear.
Speaker 5 (39:46):
That they in they kind of freak out a little bit,
don't they, Bob, because they all go, well, that's three
hundred and fifty thousand, that's an extra hundred something per year.
Oh my gosh, I already have to spend all of
these things. Well, the first thing we want to look
at is that expense. Yes, it's as that's a fat one,
there's no doubt about it. But it's gonna replace a
lot of the things that you're budgeting for now. When
we do long term care planning, we're usually in the
(40:07):
picture of health in our sixties, maybe early seventies, just
talking about what's the what is the risk, what will
the impact be.
Speaker 2 (40:12):
But when we get.
Speaker 5 (40:13):
There, we're in our late eighties, early nineties. Well, at
this point, Bob, the travel is done. We're not buying
cars anymore. A lot of the expenses that you're paying
to the nursing home are things you won't have to
do anymore. You're not going to the grocery store, you're
not paying the electric bills so much anymore. Perhaps you're
gonna maintain the house, maybe you won't. But it's not
one hundred and fifteen thousand dollars on top of all
(40:33):
of your current expenses. A lot of it will will
replace some things, and you can rearrange your finances so
it's not just a straight new expense you have to
deal with. In addition, you'll have insurance. Insurance is gonna
cover a lot of the things out there. These are
all the decisions we should look at before we consider
buying long term care insurance.
Speaker 2 (40:50):
Matter of fact, that's to be honest.
Speaker 5 (40:51):
Nowadays, that's rarely a solution that we actually employ because
a lot of people out there are in a good
position where they actually if you look at the dollars
you'll have left over, if you've got a solid financial
plan now and it gets to grow for another twenty
twenty five, maybe even thirty years spending how young you are,
then you may have enough. You probably do have enough
in that case to go ahead and self insure. But again,
don't go down the rabbit hole of all of my
(41:13):
long term care expenses are going to be new and
layered right on top of my existing living expenses.
Speaker 2 (41:18):
That's just not the case, and so.
Speaker 5 (41:19):
We don't want anybody getting too worried about that.
Speaker 2 (41:22):
It's important to look at the math, but don't get
too panicked.
Speaker 4 (41:25):
Yeah, if I hear you correctly, I'm saying, hey, do
not panic here, but just take a look at the numbers.
Make sure things are going to work for you. All right,
good stuff, Thanks for listening. Tune in tomorrow we will
talk about the one hundred billion dollar.
Speaker 2 (41:37):
Investment that has us sounding some alarms.
Speaker 4 (41:40):
You've been listening to simply money, presented by all Worth
Financial on fifty five KRC, The Talk Station.
Speaker 3 (41:46):
The threat of Iran, the end of the Twelve Day War,
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I gotta get Israel to calm down now.
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We're on the verge, a real piece in the Middle East.
And your latest opinions we should not be involved. We
have to be involved. Trust what President Trump is doing.
They don't want peace.
Speaker 8 (42:02):
It will never end.
Speaker 5 (42:03):
You're about It's a constantly changing narrative.
Speaker 7 (42:06):
More news out of the Middle East, talk about it.
Speaker 2 (42:08):
I have thoughts and questions. There's a lot of news
in the world right now. How our team is always
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Considering It ten to thirty
And this is why I feel you and I we
have a special relationship.
Speaker 2 (00:04):
Really, I don't deal well with Washington.
Speaker 1 (00:06):
I don't deal well with cliques, social circles, and I
don't deal well with the media. Just being honest with you.
When I come on this program and do my own research.
We talk about independent media. I am independent from independent media.
In other words, I do as I wish to do.
I do what I do.
Speaker 3 (00:23):
Tonight at ten oh six on fifty five KRZ, the
talk station.
Speaker 4 (00:35):
Tonight, how to treat your investments if retirement is in
the near future. But first, its Crypto no longer the
wild West. You're listening to Simple Money, presented by all
Worth Financial on Bob Sponseller along with Brian James Well.
For years crypto has been like this wild child, unregulated, volatile,
(00:55):
full of overnight millionaires and just as many horror stories.
Speaker 2 (01:00):
Is crypto growing up? Brian? So you know, is crypto
is a thing?
Speaker 1 (01:06):
Right?
Speaker 5 (01:06):
It is a real thing. It's not going to go away.
This is not like the beanie baby craze of the
late nineties. I remember having a discussion once with the
woman who was debating between mutual funds for her IRA
or pulling all the money out and buying beanie babies.
Speaker 2 (01:17):
And I said, ma'am, you should go deep on.
Speaker 5 (01:18):
Beanie babies, because I don't really want to work with
you if that's where your brain is. I didn't really
say that, but that's what I was thinking. Any case,
this is not you know that those are just silly
examples of stuff that people get wound up about things.
And it was sixteenth sixteen hundreds, it was tulips, and
it was real estate in the early eighties and oil
and gas partnerships and all this, so there's always something
out there. Crypto is a bit different. So for a
(01:38):
long time it's been it's been this unregulated thing. We
just kind of let happen, and we hear all the
stories about the overnight millionaires. We never talk about the
people who lose a bunch of money because that's no fun.
We like the sexy stories. So the phrase floating around
Wall Street right now, Bob, is crypto summer. Not so
much in the idea of price euphoria, but more in
the sense that this finally maybe again exiting adolescents and
(02:01):
kind of getting gaining a little more, a little more
respect in terms of being an actual financial tool that
people use. So between the development of these real world
blockchain uses, right, that's a word that's part of the
current lexicon. Now lots of industries have done something with
the blockchain. Doesn't necessarily mean that's just the technology behind it,
doesn't mean they're investing in cryptocurrency. Just means that you're
using similar technology to accomplish things.
Speaker 2 (02:22):
On their own.
Speaker 5 (02:23):
New stable coin frameworks, which which stable coins are things
that are tied generally to the US dollar, So there's
at least some rationale rational behavior, although in recent years
even those have had their kind of crazy ups and
downs etf approvals by the Security Exchange Commission, Meaning now
there's investment products and things like mutual funds that that
(02:44):
you can invest in. So could there be signs that
this might be a legit long term asset class. Well,
the first thing I think of is we call it
crypto anymoy we do only even call it cryptocurrency.
Speaker 2 (02:54):
So while I do believe that crypto.
Speaker 5 (02:56):
Is the thing and it's going to go forward right
now as we're sitting here right now talk about it
is not a currency and it hasn't been since the start.
Very briefly, there were companies out there that accepted cryptocurrency
and bitcoin at least for payment for their products and services,
and twenty fourteen, Microsoft did it for a little while,
and they suspended it in twenty eighteen and really never
got back to it because and Tesla did the same thing.
(03:19):
This was early twenty twenty one for direct purchases of
their vehicles. They stopped in May of twenty twenty one. Basically,
the concern was Elon Musk said, well, this is going
to create a lot of environmental problems because of bitcoin
mining and so forth. Realistically, though, Bob, it was because
when you are a company that sells a legit product
and service, that means you have accounts receivable. People owe
(03:39):
you money. If that's termed in US dollars, then you're fine.
You can tell the stock market what you're expecting. If
it's termed in a cryptocurrency that is worth half what
it was yesterday and twice as much as tomorrow, then
that is not something that the stock market likes. So
you can't have your accounts receivable bouncing around that much.
But in any case, there's a lot of moving here
in this space.
Speaker 4 (03:58):
All right, Let's back up one step here and talk
about the word blockchain. You know, I listened to an
article this morning from the current SEC commission or talking
about blockchain and the crypto industry is really gung ho
right now. You know, you talked about a crypto summer.
They want to get crypto and a bunch of stuff
(04:18):
trading on the blockchain to make it more mainstream. Talk
about what that means, Brian, What does it mean to
put crypto and other things on the blockchain as a
vehicle to train and exchange things.
Speaker 5 (04:32):
Now, the blockchain is nothing more than a than a
ledger that lives on every computer that's associated with all this.
That means if you're an individual person, you have a
representation of it on whatever device you're using. If you
are a big financial institution, you have the same representation.
The whole point of it is if everybody has a
copy of where these dollars, where these these these cryptocurrencies are,
(04:54):
and how many there are, then that means nobody can
really be too secretive about it. Now we don't necessarily
know who owns, but we know how many are out
there and where they are located.
Speaker 2 (05:03):
So that is the blockchain.
Speaker 5 (05:04):
The idea of putting a copy of each of each
of these sort of inventories on every device in the
universe that is participating in these types of systems. So
that's probably where things can get a little more revolutionary. Well,
how can we take advantage of that technology, and the
idea being that this is what takes it out of
the hands of the banks, because it is a it's
a the it's sort of a custodian of sorts, meaning
(05:26):
that everybody has a little bit of it in their
own corner of the world, versus a bank that is
the custodian, and we'll only report on what it has
because there are there are risks, There are stories out
there we don't need to get into today, but plenty
of plenty of points over history or financial institutions kind
of cook the books a little bit and made up things,
you know. I think back to Enron, for example, which
had all of those weird little backdoor partnerships. Some of
(05:48):
them are on the balance sheets, some of them were not.
If we're using a blockchain type of a structure, that
can't happen, So that provides a little more transparency. Now,
this is not yet out there in the universe where
I would say the average person can really rely eye
on it.
Speaker 2 (06:00):
But it's where we're heading.
Speaker 5 (06:01):
It's where we're going in terms of being able to
keep track of financial information, to keep things hopefully a
little more fair, definitely a little more transparent.
Speaker 4 (06:08):
Well, I know, bitcoin and ethereum are already traded on
sec regulated ets. You can buy and sell that stuff.
You know, you don't have to have a coin based
wallet to do it. You can now trade this stuff
through regular channels. That's already in place. Now we're talking about,
you know, members of Congress are talking about something called
the Genius Act, legislation that establishes a regulatory framework for
(06:34):
stable coins. Talk about what this Genius Act is and
really what that could mean if we take the next
step you know forward here in quote unquote normalizing you know,
crypto on the blockchain.
Speaker 2 (06:49):
So the Genius Act we were talking about before, this
is legislation that's going to give up provider regulatory framework
for stable coins. And again, those are the ones that
are are tied directly to the US dollar.
Speaker 5 (07:00):
The US dollars we're sitting here right now is still
the currency of choice for the rest of the world.
Whether they like that or not, is not necessarily what
we're talking about today, But we are still the chosen
currency for the rest of the world, and so the
Genius Act puts a regulatory framework around that UH and
so that that tying to the US dollar makes them
a more secure investment than any of these other cryptocurrencies
that aren't there. So the Act is going to establish
(07:21):
guidelines for banks in any of these other financial institutions
that issue these stable coins, and some safeguards for safe
stable coin holders. Now, this is going to be different
than you know, your your I'm not sure there's going
to be that many YouTube influencers talking about stable coins.
It's a little different than that speculative side right now,
I think we associate the UH, the the speculative nature
of crypto with its entire utility. Remember, cryptocurrency is supposed
(07:44):
to be when it was originally thrown out there, it
was supposed to be a medium of exchange for goods
and services, just like any other crypto or just get
any of the currency. It has not played out that way.
So but but the goal of this Genius Act we
want to keep we want to kind of keep make
sure that we have a better track of again focusing
on the stable coins, not necessarily that those coins and
(08:04):
all the weird stuff that's out there purely for speculative purposes,
but making sure that we have a good structure where
average people can invest and trust it a little more
than our current situation.
Speaker 4 (08:15):
You're listening to Simply Money, presented by all Worth Financial
lumbob sponseller along with Brian James. I think it's a
good time to point out here that not all crypto
is created equal. There are thousands of digital currencies out
there right now, many of which have little use case,
no transparency whatsoever. And we're created just kind of as
(08:36):
short term hype. But the maturity of this space isn't
happening evenly either. And I think another reminder is crypto
is not a business. It's just a medium of exchange.
It doesn't produce any earnings, it doesn't pay dividends, it
doesn't make any products, no differently from paper US currency.
Speaker 2 (08:57):
By the way, its value.
Speaker 4 (08:59):
Is just based on what someone else will pay for it,
you know, pure supply and demand, right Brian.
Speaker 5 (09:05):
Yeah, And when when I wind up talking about crypto,
and it's almost always because a client's child has gotten
into it and has either done really well or has
gone the opposite direction on them. And that's their biggest
concerns are, well, what is this stuff? And is this
something I should have in my portfolio? Should I be
worried about my kid dabbling? And so on and so forth.
And my answer there is it's not yet at a
(09:28):
stage where where we feel it plays a role yet.
Speaker 2 (09:31):
In a financial plan.
Speaker 5 (09:32):
I don't think we'll always be there for you know,
I'm not discounting it forevery because there is actual utility
to this versus some of those other goofy things I
was talking about earlier, like beanie babies.
Speaker 2 (09:40):
Crypto has the utility. It serves a purpose.
Speaker 5 (09:41):
It can be used in a way as an efficient
way to transfer money for the purchase of goods and services. However,
it's not being used that way right now. It is
a speculative asset.
Speaker 2 (09:51):
That's why. That's why teenagers and.
Speaker 5 (09:52):
YouTube influencers are are all over it, and so so
the answer there, should I be worried about my kid,
just make sure that your kid understands, you know, the
these these kind of crazes come and go with a
speculative nature.
Speaker 2 (10:04):
And I'm only referring to that side of it a
speculative nature.
Speaker 5 (10:06):
Eventually he is gonna hit a crescendo and back off,
Maybe not anytime soon, as lots of people start to
figure this out. But you can be on both sides
of it. If you're on the wrong side of some
obscure currency that everybody likes until they don't, then you're
gonna leave a lot of money on the table.
Speaker 2 (10:19):
So I think where this this is. Sometimes I do go.
Speaker 5 (10:22):
On and Reddit and I read those Wall Street Bets
comments and things like that, and it reminds me of
why I have a job as a financial planner. But
there are people out there that just revel and how
much money they lost in something. That's all great, but
make sure you have your make sure your ship floats
before you get into these types of things, and don't
assume it's gonna be the the answered all your problems.
Speaker 4 (10:39):
All right, Well, Brian, let's talk now to the regular
old person out there or couple trying to plan for
their retirement, you know, building a diversified, well constructed portfolio
and financial plan like we always talk about, does crypto
belong in a portfolio like that? And how much is enough?
The right amount? You know, how much is too much.
(11:01):
I will never forget the talk I heard just in
March of this year from the chief strategist at JP Morgan,
where he stood on a platform in front of hundreds
of people and basically called Bitcoin in ethereum a fraud.
Speaker 2 (11:16):
And you do not hear too many of these kind.
Speaker 4 (11:19):
Of people talk about anything in that black and white
of a term, because you risk alienating and upsetting a
lot of people. But he he was convinced that this
stuff is nonsense. So what say you as far as
does this stuff even belong in a portfolio at all?
Speaker 2 (11:38):
You know, I forget about.
Speaker 4 (11:39):
Day training and trying to create money out of thin
air in five or ten minutes.
Speaker 2 (11:44):
That that's a whole different game.
Speaker 4 (11:45):
I'm talking about buy and hold, you know, allocation strategy
for regular old retirees. Do you think this has a
place in a portfolio right now? In twenty twenty five, you, you.
Speaker 5 (11:55):
And I were did that same talk, and I remember
we heard it, and I followed him for my entire
career because he's just a really really sharp guy, and
he's moved around a couple of places, super smart guy,
and I love his Irish accent. But I remember hearing
him say that, and you and I were a different
tables looked at each other, go.
Speaker 2 (12:08):
Does he really just say that? Does that really wear?
Speaker 1 (12:10):
Well?
Speaker 2 (12:10):
Okay, cool?
Speaker 5 (12:10):
Yeah, But what he's really referring to again, it's that utility.
What does crypto do? It kind of goes back to
a little bit of the Internet companies from the age
where you didn't have to make a profit. You just
had to have a cool story and a sexy logo
and a cool website from thirty years ago, and you
can make bazillions of dollars because that was all it
took to attract investors. I think that's the stage where
we are with crypto again. Just like those Internet companies,
(12:32):
they became some of them became real things, and they're
the ones we talk about today. Other ones are ancient
relics of a time gone by. Crypto is going to
go through that same stat somebody's gonna come out of winner.
There's gonna be several winners, and there's gonna be a
heck of a lot of losers. Make sure you're on
the right side, is it part of your portfolio, wouldn't
go any more than ten percent, and be prepared to
learn a lot about it.
Speaker 2 (12:50):
Here's the all Worth Advice.
Speaker 4 (12:51):
Crypto may be maturing, but it's still not a core
asset yet. Use it carefully, sparingly, and always with your
eyes wide open. Coming up next, there's a decent chance
that you or someone you know will live past the
age of ninety. We're going to talk about what that
means for your savings, your lifestyle, and your long term plan.
(13:12):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the Talk.
Speaker 6 (13:17):
Station 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 4 (13:43):
You're listening to Simply Money, presented by all Worth Financial
on bob'sponseller along with Brian James. If you're close to
or already in retirement, what should you actually do with
your investments?
Speaker 2 (13:54):
Right now?
Speaker 4 (13:55):
We've got a practical checklist tailored for retirement success in
uncertain times, and that's coming up straight ahead at six
forty three. It used to be that retirement planning was
built around the assumption that you'd live to I don't know,
eighty five years old or so. But according to a
new report, most people or more people, I should say
(14:15):
more people are living well into their nineties and some
even past the age of one hundred, and that changes
the entire game.
Speaker 2 (14:23):
Brian, Yeah, that's right.
Speaker 5 (14:25):
So this is a report coming from JP Morgan, their
Annual Guide to Retirement. So this fastest growing age group
is in America's people over age eighty five. Yes, I
said eighty five. That is the fastest growing age group.
If you think about how this stuff works over over
a lifetime. What we're talking about here is health in
health technology and medical breakthroughs just keeping people around longer.
(14:46):
So living to one hundred is no longer nearly as
rare as it used to be. I'm not sure what
Willard Scott's going to do if he can't talk to
people that are over a hundred, because there's just too
many of them to to keep up with.
Speaker 2 (14:56):
If he's still doing that.
Speaker 5 (14:58):
So a sixty five year old couple today, there's a
fifty percent chance that at least one of them lives
past ninety two, and more people are making it to
one hundred than ever before. That is super great news
for your health, but it sometimes it's going to make
the math a little less efficiently. But I will say
I always have when I do financial plans, you probably
see the same thing, Bob. What we'll tell people, Look,
I'm planning for you to live out to your early
(15:18):
mid to early nineties at least. And everybody says this
is when we get the list of all the aunts
and uncles and when they died, and my parents had
this problems, I'm not going to live past eighty two.
Well that's great, except for that's not the risk. You've
got plenty of money to die early. I'm worried about
you outliving your assets. So we are going to assume
that you live a little bit longer than you might
think anyway, just because that's the safest way to do it.
(15:38):
So remember we're talking about thirty years. If you're re
tired sixty five and you go to ninety five, that's
thirty years of retirement. That's fifty percent of the life
you will have already lived by that point. And that's longer.
It could even be longer than you spent during your
working career. If you're not using the correct life expectancy.
You could very well run out of money just at
the time it becomes most stressful when you have the
least ability to go out and get a job and
(16:00):
work and create income of that kind of thing.
Speaker 4 (16:03):
Yeah, Brian, I have similar conversations to the one you
talked about. You know, occasionally you'll have someone come in
and I look at this as a rationalization for not
either not saving enough to prepare for retirement or rationalizing
spending too much. And when we stress test and run
the plan and it shows them running out of money
potentially at age eighty one, you know, you'll occasionally have
(16:26):
someone say, well.
Speaker 2 (16:27):
That's not going to happen to me.
Speaker 4 (16:28):
You know, my aunt's like you said, aunts, uncles, parents,
they didn't live past age seventy nine. And if you
don't plan for that longer term life expectancy, and we're
talking about here's some major longevity risks like rising healthcare
costs and inflation, which people don't factor in, you're setting
people up for failure. And then you're getting into where
(16:50):
you're being dependent on loved ones, kids, grandkids to take
care of you. And I know for most people that's
not a situation that they want to find themselves in.
So I agree, Brian. Every plan I bill, we're looking
at ninety four ninety five on average, again, just to
make sure we've stressed tests that plan against all different
(17:12):
scenarios to make sure folks don't run out of money.
And we talk about, you know, just average healthcare costs.
I mean, I think we got into this yesterday. You know,
one hundred and seventy five thousand dollars or so per person.
That's just regular healthcare costs, not counting the long term
care need. You got to factor that into that plan
(17:32):
on top of living potentially into your nineties.
Speaker 2 (17:35):
Yeah, let me dig into that, Bob a little bit.
Speaker 5 (17:36):
That that one hundred and seventy one thousand dollars number,
that that what we're talking about there is what are
the costs for Medicare premiums?
Speaker 2 (17:43):
What are the costs for a supplemental.
Speaker 5 (17:44):
Policy, because that's a choice you would make, but most
people do Medicare will get about eighty percent of your
health care costs. If you choose to do a supplemental
and everybody should at least learn about it, then that's
going to catch the other twenty percent. There's also Medicare
advantage gets a little more complicated that kind of thing,
But in any case, that's where that one hundred and
seventy thousand dollars figure comes from. And if you divide
that by thirty years worth of retirement, it's only about
(18:05):
fifty five hundred dollars or so per year, and double
that for a married couple. That's what we bake into
our plans when we create them. But that's what people
should expect. And if you think about that, do the
quick math. Half of that is the medicare premiums themselves,
and then the rest of it is a stuff that's
maybe a little more controllable copays and those kinds of things.
But we still need to have that separate budget out there.
And then we talk about long term care that is
(18:28):
not included in those figures. That's going to be an
extra three hundred fifty thousand dollars should it come up
for you.
Speaker 4 (18:34):
Yeah, And another thing I want to touch on here
is inflation. We find a lot of times people are
just too conservatively invested. They've got too much money sitting
in cash and low yielding assets, again not factoring in
the high probability that this money is going to need
the last thirty to thirty five years, not fifteen to
(18:56):
twenty years, and you've got to have a little growth
left in that portfolio. I mean, that's easy to do
if you take on a little bit of volatility on
a responsible basis. Make sure your retirement portfolio is growing
at a rate to outpace inflation so that money lasts longer.
Brian talk about a couple other things that we should
(19:16):
be doing to plan for longer life expectancy.
Speaker 5 (19:20):
Yeah, so that the one thing you might consider is
can we create some protected income streams?
Speaker 1 (19:24):
Right?
Speaker 5 (19:24):
Some of the stuff you may not have had control
over what I would already put in this category. If
you happen to have a pension, it's a rare thing nowadays.
If you happen to have a pension, then that's an
income stream. Make sure you're maximizing your ability to get
social Security and coordinating with a spouse.
Speaker 2 (19:37):
If you're married, maybe you turn yours on now and
I turn mine on later.
Speaker 5 (19:41):
That way we'll benefit a little bit from both sides
current cash inflow as well as some increases on one
of the other, and maybe vice versa or whatever. But
if you for a more high net worth family, if
there's more resources floating around there, look around, get think
differently about about your portfolio. You may have been growth oriented,
accumulation staged oriented for the for the you know, the
earlier part of your life. Look for structured income vehicles
(20:03):
or possibly layer layering in some buffer ttfs, which are
which are more about bringing in the growth but also
kind of mitigating the bumps of the market against you
can kind of preserve the principle that will someday generate
income for you to retire off of.
Speaker 2 (20:16):
Here's the all Worth advice.
Speaker 4 (20:18):
Living longer is a gift, but it comes with planning responsibly.
Your money needs to go the distance. Coming up next,
the newest way scammers are trying to rip you off.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the talk station we call them
every day Millionaire, every day listen to Dave Ramsey Rich.
Speaker 2 (20:39):
People ask how much broke? People ask how much down?
And how much a month? With days eight seven, start
asking how much on fifty five KRC the talk station.
Summer is here in the heat is on. Stay cool
with heavy on the globe from the fifty five KRC
You Center.
Speaker 3 (20:56):
The five soldiers shot at Fort Stewart in Georgia are
all in stable condition and expected to recover. Brigadier General
John Lubis said soldiers were able to subdue the suspect, but.
Speaker 5 (21:07):
I know that his soldiers in the area that witnessed
the shooting immediately and without hesitation, tackled.
Speaker 2 (21:15):
The soldiers subdued him that allowed law enforcement to then
take him into custody.
Speaker 3 (21:19):
Lubis identified the shooter as Sergeant Cornelius Radford. A meeting
between President Trump and Russian President Putin will reportedly take
place as early as next week. Trump plans to meet
with Putin first, and then with both Putin and Ukrainian
President Zelenski together. The president has been pushing to end
the fighting. President Trump is unveiling a one hundred billion
(21:41):
dollar investment from Apple. The iPhone maker will invest in
US manufacturing to increase domestic production and avoid tariffs. Apple
has now pledged six hundred billion dollars in investments. I'm
Brian Shuck.
Speaker 7 (21:55):
This is fifty five KARC and iHeartRadio station.
Speaker 4 (22:01):
You're listening to Simply Money, presented by Allworth Financial on
Bob Sponseller, along with Brian James, joined tonight by our
good friend Josile Erlik from the Greater Cincinnati Better Business Bureau. Josile,
thanks for making time for us tonight, and I know
you've got a lot of good updated information to share
with us about scams that are out there.
Speaker 7 (22:23):
Oh, there were so many to pick from. It's really unfortunate.
But scammers impersonating the government, including the Federal Trade Commission,
is nothing new.
Speaker 8 (22:33):
But here's a new twist.
Speaker 7 (22:35):
Scammers are now calling themselves FTC agents, and they're giving
you fake badge numbers and fake ID cards, all to
convince you that they are who they say they are. Now,
just so we're clear, the FTC does not have agents.
These scams usually start with somebody reaching out about a
supposed urgent problem. Maybe it's a computer pop up saying
(22:57):
you have a virus and you need to call it support.
Speaker 8 (23:00):
We've all heard.
Speaker 7 (23:01):
About that scam, or someone claiming to be Amazon or
your bank insisting there's something wrong with your account. They
might even say your identity has been stolen or somebody's
trying to take money out of your account. Once they've
got your attention with these critical issues, they transfer you
to this alleged FTC agent to supposedly help you resolve
(23:21):
the issue.
Speaker 8 (23:22):
Now.
Speaker 7 (23:22):
That person may give you proof that they're from the FTC,
like that picture of an ID with a badge number,
both of which are fake. This agent may even try
to enlist your help to catch the bad guys as
a way to gain your trust. Their ultimate goal, though,
is to convince you to give them access to your money.
That is something you don't want to fall for now.
(23:46):
Along the same lines as the FTC scam, we've talked
before about the jury duty scam, where some official calls
you to say you have a warrant out for your
arrest for not showing up for jury duty, but if
you pay the fine, it'll all go away. Well, the
other day, one of my associates was called by one
of these guys, so she decided to play along, And
(24:06):
I just wanted to tell your listeners exactly how this
went down with her and how easy it is for
somebody to get caught up in a scam like this.
She got a call from both a sergeant and a
lieutenant alleging she had a federal warrant out for her
arrest for not showing up for grand jury summons. These
(24:27):
guys even knew her home address and said she'd signed
for the summons, then never showed up, which resulted in
the federal arrest warrant. Oddly enough, they couldn't give her
a copy of the alleged signed summons, as, according to
the scammers, this was an active investigation. They said she
now had two felony warrants for her arrest and needed
(24:47):
to post bond of more than fifteen thousand dollars to
avoid jail time, and if she didn't post the bond,
she'd have to pay one hundred and fifteen thousand dollars
for her failure to appear. They also told her she
was under a gag order not to say this, not
to share this active case with anybody else, meaning don't
tell anybody who might convince you that you are being scammed.
(25:10):
Here's the interesting part. She was supposed to meet this
bondsman at a gas station to make this fifteen thousand
dollars bond payment.
Speaker 8 (25:19):
Can you believe it?
Speaker 2 (25:20):
Now?
Speaker 7 (25:21):
This is how this is how nicement our government is.
They told her, since this was a federal court case,
and in lieu of her having to drive all the
way to Washington, d C.
Speaker 8 (25:30):
To pay the bond.
Speaker 7 (25:32):
Our government conveniently offers roving bail bondsmen.
Speaker 8 (25:36):
Isn't that fabulous? Now?
Speaker 7 (25:38):
They told her once she paid the bond, a date
would be set for pre trial and sentencing. These guys
were so convincing, and they lead with one scare tactic
after another. They also told her if she even set
foot on any government property, she was going to be arrested, booked,
and jailed immediately, which means don't involve the police, who
(25:59):
may tell you you're being scammed.
Speaker 8 (26:01):
They even texted.
Speaker 7 (26:02):
Her a picture of the alleged signed and notarized arrest
warrant from the US District Court. Now, this is a
great example of how somebody can get caught up in
a scam. These guys are good at what they do,
and in the heat of the moment, when they're coming
at you rapid fire with scare tactics, when you think
you're cut off from discussing with your friends and family
(26:23):
and you're afraid to go to the police, it's easy
to believe what you're being told.
Speaker 2 (26:28):
Yeah, those are some scary stories.
Speaker 5 (26:30):
It does seem easier to get to people when we
bring the government into it, because people are terrified of
hearing directly from any government agency.
Speaker 2 (26:38):
Another one I'm hearing a lot about is the DMV.
Speaker 5 (26:40):
There's a lot of texting things going around, and I
hear that from my own clients, and that has happened in
my own family. I've got I bet if I look
at my spam folder, I've got some myself.
Speaker 2 (26:48):
Right now. I've gotten you. I've gotten five of them
in the last six weeks.
Speaker 5 (26:51):
Brian, Well, knowing you, Bob, those could be legit, you
might want to head down to the DMV.
Speaker 2 (26:56):
I'm getting the DMV and being arrested. I got a
lot going on in my life.
Speaker 4 (27:00):
You'll tell us about the tell us about the DMV stuff.
Speaker 8 (27:06):
Well, I got you both beat.
Speaker 7 (27:07):
There was one week where I got three or four of.
Speaker 8 (27:09):
These a day.
Speaker 7 (27:10):
So the text says, if you don't pay, they're going
to report you to the DMV violation database, whatever that
might be. They're going to suspend your vehicle registration, They're
going to suspend your driving privileges. You could be prosecuted
and your credit square will be affected.
Speaker 8 (27:24):
Now they've got you coming and going.
Speaker 7 (27:25):
With anything that you might be afraid of there, including
not being able to drive.
Speaker 8 (27:30):
In another version of the scam.
Speaker 7 (27:32):
The text comes from a toll company like Easy Paths,
and they want you to pay for an unpaid.
Speaker 8 (27:36):
Toll or you're going to be subject.
Speaker 7 (27:38):
To the same penalties the exact same verbiage in that text.
In both scenarios, they demand immediate payment via the link
they provide, or you're going to get your license suspended
or have further legal action. Interestingly, both versions have a
note reply why, like you see on a text to
confirm that you have a doctor's appointment or whatever and
you're going to be there.
Speaker 8 (27:59):
They have reply why.
Speaker 7 (28:01):
Of course, reply why means that it's just confirming to
the scammers that they have an active phone number and
your number was now going to be passed around as
fodder for a whole host of other text related scams. Now,
the newest scam naming the DMV, is tied to your
real ID, and this is how that scam works. You
get a text or email from somebody who says they're
(28:21):
from the DMV or sometimes the Department of Homeland Security.
They say you can skip the line and.
Speaker 8 (28:27):
Expedite your application for a real ID.
Speaker 7 (28:29):
You just have to click a link to share your
information or pay a fee it's a phishing scam just
to steal your money or your personal information. The only
way to get a real ID is by going to
the DMV in person. You cannot submit an application online
or by mail, and nobody can expedite the process.
Speaker 8 (28:48):
One final thing is the texting scams.
Speaker 7 (28:51):
From the USPS or any delivery service. They tell you
that you have a package missing. It's out for delivery.
We have a address, you name it. That text message
will say click a link to fix the problem.
Speaker 8 (29:05):
That is a scam. Scammers want you to click the
link in their message.
Speaker 7 (29:09):
To do it will take them take you to a
bogus website that looks exactly like the USPS website or
the delivery website. Clicking the link may install malware on
your phone or whatever device you're using, giving scammers access
to all the information you have stored on that device.
(29:29):
If you think a text is about a real delivery,
don't go to the website given. Go to the actual
website where you ordered the product from and find the
tracking information there.
Speaker 4 (29:41):
All right, Wow, a ton of stuff to be thinking
about today. And I don't know about you, Brian. This
is infuriating to me to just know that all this
is going on out there. But Joe Cial, thank you
to you and your team for being out there, you know, studying,
monitoring all this stuff and bringing it to our attention today.
Speaker 2 (30:00):
Really appreciate all the great advice.
Speaker 4 (30:02):
If you're listening to Simply Money, presented by all Worth
Financial on fifty five KRC, the Talk station, the natural
world develops slowly.
Speaker 6 (30:13):
Forming over the course of millennia.
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In our world developments. We have a developing situation happened fast.
The latest developments, today's developments. This is just developing out
of the Middle East. Check their ability to develop a
nuclear weapon. It's been neutralized, But for how long? For
what's developing? Quite a striking development now right now it's developing.
Speaker 7 (30:35):
Fifty five KRC the Talk station, fifty five KRC, Cincinnati,
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You're listening to Simply Money, presented by all Worth Financial.
Bob Spond Seller Law with Brian James. Do you have
a financial question you'd like for us to tackle. There's
a red button you can click on while you're listening
to the show right there on the good Old iHeart app.
Simply record your question and it will come straight to us.
If you're staring at your retirement portfolio wondering whether to buy,
(31:19):
sell or hold, you're not alone. This year has been
quite a roller coaster so far, and when you're no
longer contributing to your four one K or just about
to start drawing from it, that volatility quickly feels very personal.
Speaker 2 (31:35):
Brian.
Speaker 4 (31:35):
Let's get into some of the challenges here for folks transition,
transitioning into retirement and the things that we need to
be looking at. You know, when we turn that pile
of money into an income distribution strategy.
Speaker 5 (31:50):
Sequence of return risk, Bob, that's really where That's a
thing that retirees face early on. Whether it happens or
not to them, obviously, that's a matter of what the
universe wants to do to us on a daily basis.
But sequence of return risk isn't something that we think
about when we're saving, or it doesn't really matter when
I'm saving.
Speaker 2 (32:08):
I'm young.
Speaker 5 (32:08):
I'm twenty thirty years old, and I'm putting money in
my four oh one. Okay, the market's gonna go up,
it's going to go down. I don't really care when,
because I've got such a long frame of such a
long period of time. But when I retire, that nest
egg that I've spent the better part of my life
building will play some role in producing income for me
to live off of. Maybe I'm going to push it
to the back end of retirement and lean on my
other sources of income for a little while, or maybe
(32:30):
I need to tap into it right away. That's different
by every individual that we do a financial plan for,
but sequence of return risk simply means when does the
market do what. The worst thing that can happen to
anybody in retirement is if we know, for example, take
anybody who retired in twenty twenty one, the immediate thing
that they were faced with was twenty twenty two, which,
believe it or not, was one of the we don't
(32:50):
think of it this way, but it was one of
the five worst years that we've ever had in the
stock market. So if you retired in twenty twenty one,
the first thing your nest egg did was take a
giant step down. That's a problem. It doesn't have to
be a ship sinker, but it can happen to anyone.
So you want to kind of make sure that when
you're doing your financial plan, build something that you can
kind of consider what I call the hunky dory scenario.
In other words, nothing bad ever happens again, and we
(33:12):
get an average of I don't know, five to six
maybe seven percent rate of return?
Speaker 2 (33:15):
How does it look?
Speaker 5 (33:16):
And then right side by side with that, you can
do a stress test, which basically means, let's take twenty
percent of my assets and make them go poof and
then run all the numbers again.
Speaker 2 (33:25):
Now, am I okay?
Speaker 5 (33:26):
If your plan is still successful with that, then you
are able. Then that indicates that you are indeed able
to handle sequence of return risks. We can't control it
the dangerous part, Bob. So for those retirees in twenty
twenty one who have had to face twenty twenty two
because the universe selected them, they were very, very tempted
to I'm retired.
Speaker 2 (33:44):
Now I've got to protect, protect, protect.
Speaker 5 (33:45):
Therefore, I'm going to take my assets out of the
market because the market is now scary.
Speaker 2 (33:50):
The market didn't change. You did.
Speaker 5 (33:51):
The market's still doing the same thing that has always done.
You can't try to time it that way and be protect.
If you will lock in those losses and you miss
out on the twenty three and twenty four that would
have giving you all that money back, and then.
Speaker 4 (34:01):
Some yeah, a couple things just to react to you
what you laid out there. I mean, I think this
sequence of return risk is often new. It's something people
don't consider as they head into retirement.
Speaker 2 (34:11):
And here's why.
Speaker 4 (34:12):
When you're in that accumulation phase, you really don't care
what the market does volatility wise on a year to
year basis. All you care about is what's my average
rate of return over the long term? And am I
amassing enough money when you turn that into a monthly paycheck.
You know, this is where volatility can really eat into
(34:33):
your portfolio if you've got everything in stocks or you
don't have a plan. And you know, Brian, I love
the bucket approach. I mean, last time I checked, the
market goes up even in any kind of major market
downturn ninety four percent of the time over any three
(34:53):
year holding period, the market's up.
Speaker 2 (34:55):
What do I mean by that?
Speaker 4 (34:57):
You can eliminate a lot of this sequence return risk
by just getting some money out of harm's way, meaning
one to three years worth of living expenses or cash
flow needs. Get it out of the market all together
and have it at more conservative investments, and that way
people have the peace of mind of knowing, hey, I
got my three year you know nut covered here. I
(35:20):
don't need to worry about, you know, any short term
market volatility because I've got some money out of harm's way.
I think the other thing sometimes people don't think about
is what they're actually planning to spend. This has been
one of the most surprising things that I've run into
in my career is and I'm talking about people with
a lot of money, with high income people, when you
(35:41):
ask them what they actually need to spend or want
to spend in retirement, they haven't thought about it because
they just live off they've been living off that very
high paycheck and that it really hasn't dawned on them
that that paycheck's going to go away. And now you know,
not that we need to budget down to the level
of know how many packs of gum you buy per month,
(36:02):
but you at least need to have some round numbers
of what your spending is going to be, because that
can surprise some folks if they don't do any planning.
Speaker 5 (36:10):
Yeah, and and honestly, I think one of the things
I talked to my clients about. And there's people out
there who are in this situation. The market is essentially
we're a little bit below the all time high that
we had in February, but we've gotten back the initial
terror related panic that bottomed in early April. We're kind
of back to where we were before that. So if
you are somebody who's in this situation, if what Bob
just said resonated, hey, we got it. We wanted to,
(36:32):
you know, put fifty thousand dollars into the kitchen, or
we need to buy a car or whatever. We know
there's some there's money, there's a need for spending coming
up soon. Well, you know what, now is the time
to go ahead and carve those assets out because it
will be far more important that need is coming up
no matter what. Right, you know, you're gonna have to
spend the dollars for whatever the thing is. And that's
just life. So you want to take it when it's
the most advantageous time. Guess what that time is. Now
(36:54):
the money is there, and take it. And then I
would also say it would be a good idea to
think to the next one, and is there another something
coming up in the next two or three years that
we should be planning for differently. Now is the time
to carve that out and take and make hay while
the sun shines, because sooner or later the market's going
to go the opposite direction. You'll still have that expense,
but then you'll have to take the loss.
Speaker 2 (37:16):
Yeah.
Speaker 4 (37:16):
Again, working with an advisor who really understands this. Converting
people from pre retirement to retirement makes a huge difference,
and sit down and do the work in advance so
you don't have surprises coming down the road. Here's the
all Worth advice in retirement. Market volatility isn't just noise.
It's an opportunity to fine tune your income strategy and
(37:37):
stay on track for the long haul. Coming up next
Brian's bottom line, where he gets into some long term
care planning. You're listening to Simply Money presented by all
Worth Financial on fifty five KRC the talk station Mark Levin.
Speaker 1 (37:52):
Let me Teyson, the Internet is breeding evil, breeding evil,
and TikTok is the main culprit. And I don't know
what's happening TikTok. 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.
Since a private company, the company needs to clean it
up because this is crazy when the communist Chinese and
all the crap that people put on this stuff.
Speaker 2 (38:15):
Mark Levin tonight at ten oh six on fifty five
krs the talkstation. Have you been notified that your subsidy
for Obama.
Speaker 7 (38:23):
That next month I have to choose between groceries for
my kids or gas for my car.
Speaker 2 (38:27):
Talk about it here fifty five KRC the talk station.
Speaker 4 (38:36):
You're listening to Simply Money, which is i'd a by
all Worth Financial Lumbob sponsorer along with Brian James. And
it's time for Brian's bottom Line where he shares some
wisdom about long term care. And this is a guy
that's been dealing with clients for almost thirty years. Brian
can't wait to hear what you have to share with
us today. So, Bob, this comes from some meetings I've
had very very recently. Obviously, long term care is it.
Speaker 5 (38:59):
Can be the boogeyman, and when it comes to financial
planning because it's an expensive it's an expensive proposition for
people to have to face. So let's throw some numbers
out just so we know exactly what we're shooting at.
Speaker 2 (39:08):
Long term care where, of course we're talking about end
of life type.
Speaker 5 (39:12):
Care where you need a little extra help, can no
longer really be independent and trying to make you Comfort'm
not quite hospice, we're not talking about that. We're talking
about you know, those last few years there. But so
just cost wise, what we're thinking, what we're looking at
in this area, it's about one hundred and fifteen thousand
dollars somewhere in that neighborhood, one fifteen, one hundred and
twenty per year for a stay in a nice long
(39:35):
term care facility. The average stay for end of life
care is two and a half to three years. So
put differently, I need about three hundred and fifty thousand
dollars to cover my long term care needs.
Speaker 2 (39:45):
And people hear.
Speaker 5 (39:46):
That they in they kind of freak out a little bit,
don't they, Bob, because they all go, well, that's three
hundred and fifty thousand, that's an extra hundred something per year.
Oh my gosh, I already have to spend all of
these things. Well, the first thing we want to look
at is that expense. Yes, it's as that's a fat one,
there's no doubt about it. But it's gonna replace a
lot of the things that you're budgeting for now. When
we do long term care planning, we're usually in the
(40:07):
picture of health in our sixties, maybe early seventies, just
talking about what's the what is the risk, what will
the impact be.
Speaker 2 (40:12):
But when we get.
Speaker 5 (40:13):
There, we're in our late eighties, early nineties. Well, at
this point, Bob, the travel is done. We're not buying
cars anymore. A lot of the expenses that you're paying
to the nursing home are things you won't have to
do anymore. You're not going to the grocery store, you're
not paying the electric bills so much anymore. Perhaps you're
gonna maintain the house, maybe you won't. But it's not
one hundred and fifteen thousand dollars on top of all
(40:33):
of your current expenses. A lot of it will will
replace some things, and you can rearrange your finances so
it's not just a straight new expense you have to
deal with. In addition, you'll have insurance. Insurance is gonna
cover a lot of the things out there. These are
all the decisions we should look at before we consider
buying long term care insurance.
Speaker 2 (40:50):
Matter of fact, that's to be honest.
Speaker 5 (40:51):
Nowadays, that's rarely a solution that we actually employ because
a lot of people out there are in a good
position where they actually if you look at the dollars
you'll have left over, if you've got a solid financial
plan now and it gets to grow for another twenty
twenty five, maybe even thirty years spending how young you are,
then you may have enough. You probably do have enough
in that case to go ahead and self insure. But again,
don't go down the rabbit hole of all of my
(41:13):
long term care expenses are going to be new and
layered right on top of my existing living expenses.
Speaker 2 (41:18):
That's just not the case, and so.
Speaker 5 (41:19):
We don't want anybody getting too worried about that.
Speaker 2 (41:22):
It's important to look at the math, but don't get
too panicked.
Speaker 4 (41:25):
Yeah, if I hear you correctly, I'm saying, hey, do
not panic here, but just take a look at the numbers.
Make sure things are going to work for you. All right,
good stuff, Thanks for listening. Tune in tomorrow we will
talk about the one hundred billion dollar.
Speaker 2 (41:37):
Investment that has us sounding some alarms.
Speaker 4 (41:40):
You've been listening to simply money, presented by all Worth
Financial on fifty five KRC, The Talk Station.
Speaker 3 (41:46):
The threat of Iran, the end of the Twelve Day War,
to cease five, the latest news.
Speaker 1 (41:51):
I gotta get Israel to calm down now.
Speaker 2 (41:53):
We're on the verge, a real piece in the Middle East.
And your latest opinions we should not be involved. We
have to be involved. Trust what President Trump is doing.
They don't want peace.
Speaker 8 (42:02):
It will never end.
Speaker 5 (42:03):
You're about It's a constantly changing narrative.
Speaker 7 (42:06):
More news out of the Middle East, talk about it.
Speaker 2 (42:08):
I have thoughts and questions. There's a lot of news
in the world right now. How our team is always
here to answer your questions. Fifty five KRC, The Talk Station,
Considering It ten to thirty
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