August 8, 2025 • 41 mins
On today’s episode of Simply Money presented by Allworth Financial, Bob and Brian dig into why more countries are pushing retirement later—and what that signals for your financial future. You’ve built a nest egg, maybe refinanced your home, maxed out your retirement accounts… but have you thought about when to retire? With governments around the globe delaying official retirement ages, is longevity becoming your most important asset? Bob and Brian break it all down, including whether this global trend should influence your own retirement timeline.
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Episode Transcript
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Speaker 1 (00:00):
Listening and the entire world is watching check in at
the top of the hour fifty five krs the talk station.
Speaker 2 (00:14):
Tonight.
Speaker 1 (00:15):
Why more countries are pushing retirement dates out even later
and what it signals potentially for your financial future. You're
listening to Simply Money, presented by all Worth Financial on
Bob Sponseller along with Brian James.
Speaker 2 (00:27):
So you built a nest egg, maybe.
Speaker 1 (00:29):
Refinance your home, maxed out those retirement accounts.
Speaker 2 (00:32):
But what about timing.
Speaker 1 (00:34):
It used to be work forty years, get the gold watch,
retire around sixty five. Now others around the world are
working later. Maybe it's worth asking should you work later too, Brian,
I'm restraining myself right off the bat on a couple
of these things. But let's get into this topic. We're
talking about what others around the world are doing, governments
(00:57):
and countries around the whole issue of retirement dates.
Speaker 2 (01:01):
Yeah.
Speaker 3 (01:01):
So, I think the one thing that a lot of
places didn't really account for, a lot of countries did
an account for, and especially this one, is longevity. Right,
So how long are people going to live when these
programs and things were set up way back when they
were based off of a shorter life expectancies and that
started coming back around to bite the different pension systems.
We see it here right. One of the reasons that
companies have spent the last thirty forty years getting rid
(01:23):
of pensions and dumping it into four h one K
type arrangements is to get out from under the burden
of needing to pay for somebody for thirty forty years
after the last time they sat at their desk and
actually perform some kind of service for that company. So
what's happening around the world. So France, Germany, Canada, Japan,
everybody is increasing the official retirement age or you know,
(01:44):
modifying their pension systems to reflect that reality longer lifespans. Specifically,
France raised its age from sixty two to sixty four.
You might remember that there were protests and things kind
of exploded over there when that happened. And in so
Denmark too. The Denmark is now moving their state pension
age from sixty seven to seventy. By twenty forty. China
is shifting their retirement ages as well, men from sixty
(02:05):
to sixty three. This is interestingau they have a difference
there women up to fifty eight, and that's gonna be
phased in starting January twenty twenty five. The United States
has had a history of this too. We have moved
ages on social security and things like that in during
my career, but it's been a very, very long time.
I don't remember when that was, but it was in
the late nineties when I first started, they moved the
ages forward, so we haven't been as proactive with it.
(02:27):
But the same demographic trans exist here well.
Speaker 1 (02:31):
In the World Economic Forum has something called the Organization
for Economic Cooperation and Development, and I guess that's a
long winded way of saying they get a bunch of
people in a room from all over the world and
try to plan out the economy for all of us,
and they predict by the mid twenty sixties, average effective
(02:52):
retirement ages will climb by about two years worldwide. Brian,
I don't need a think tank to come up with
why this is happening. Let's face it, people are living longer,
and globally, folks are having fewer children. So when you
have a pay as you go pension system like social
Security and you have people living longer and being healthier,
(03:16):
the math's not going to work. So adjustments are going
to have to be made. What am I missing here?
Speaker 3 (03:21):
Nothing?
Speaker 2 (03:21):
I mean, that is the problem. You hit it right
there on the head.
Speaker 3 (03:24):
The math on't math is really the as the kids
say these days. And then I think, what makes social
security our own homegrown pension plan a little more, a
little more susceptible to this is the fact that you know,
we talk about this all the time. The reason that
people have a debate over when am I going to
turn my social securities bigot on? Everybody wants to max
it out for obvious reasons. How can I maximize my
(03:45):
social security? And the reason we look at that is
because every year you don't turn it on. Let's say
you've hit age sixty two. Now you're in the window.
You can take it as early as sixty two and
get the lowest check you'll ever see, or you can
wait till seventy and take the biggest check you have
you'll ever see. That's not that question, not as obvious
as it seems, by the way, But the math there
basically says, every year you ignore it, it will go
(04:06):
up by eight percent. That is not a number that
is indexed to inflation. It does not change. It has
been in concrete eight percent increases every single year. You
don't sign up for it. And that was set in
concrete in the forties and fifties, back when we were
just in a different environment and longevity wasn't a problem.
But now we've got people. Back then, the life expectancy
might have been fifteen twenty years past retirement. Therefore, that
(04:29):
eight percent didn't really come home to rust. But remember
how compounding works. We love eight percent compounding when it
comes to our four to one case. When it comes
to our public pension, which we all have to pay
taxes for. Now we have to account for an extra
ten to fifteen, even twenty years on top because people
can be retired and on Social Security literally for forty years,
so we have every year we have more coming out
of the system than is flowing in, which is why
(04:51):
the expectation of social security will quote unquote the trust
fund will run out. I hate that headline, but that's
what they say. Trust fund will run out in the
early twenty thirty That it doesn't mean it's going to
go to zero, and be super clear about that. What
it means is that we won't have a surplus anymore.
If we will simply be functioning off of what goes
into the system off of your and my pay stubs.
Out of that fight a section on the top half,
(05:13):
and so that that's something we have to worry about.
But at the same time, there's no change can be
made to that. It's not gonna be fixed without some
kind of sacrifice by somebody. We're either going to pay
more taxes now, or we're going to reduce our benefits.
Are more likely a combination of both, and there are
thousands of ways that could come to bebop.
Speaker 1 (05:27):
Yeah, And going back to some of these numbers, some
of the data and again this World Economic Forum study,
they're saying that workers per retiree are projected to fall
from about four to just over two by twenty fifty.
So that's half the number of workers economically supporting the pension,
you know, whatever you want to call it, social security
(05:50):
or whatever name they have for in other countries. We're
going to have half as many workers supporting that pension
system as we do today by twenty fifty.
Speaker 2 (05:58):
That's a significant change.
Speaker 1 (06:00):
In the United States, the average labor force exit age
is already creeping up about four and ten. Workers now
expect to work past the age of sixty five. That's
a dramatic rise from just one in ten just thirty
years ago, and nearly two and ten Americans over age
sixty five are still employed today, nearly double from three
(06:22):
decades ago. You're listening to Simply Money presented by Allwood
Financial on Bob Sponseller along with Brian James. Brian, let's
get into some of the challenges here with these policy gaps,
and we've talked about this before. The United States is
just you know, in my opinion, just kicking the can
down the road in the need to address this so
(06:43):
we don't have this overnight drop of twenty to thirty
percent of Social Security benefits in twenty thirty three or
twenty thirty five or whenever we go on this fully
pay as you go system. Let's get into some of
the challenges and things we should actually be doing to
get ourselves in a position to make sure we don't
(07:04):
have a negative impact on our retirement irrespective of whatever
the government does or doesn't do.
Speaker 3 (07:10):
Yeah, so this is something to be paying attention to.
So we are we're in a situation now we just
get here's some of the reasons, right, It's not just
the longevity it's also you know what a stuff costs nowadays.
So for example, if we look at homeowners age sixty
five to seventy nine, way back in nineteen eighty nine,
only about twenty four percent of people still had a
mortgage at that age. In twenty twenty two, the last
(07:31):
time the study happened that I'm looking at, that percentage
went to forty one percent. So of course people are
a longevity is one thing. Living longer is one thing,
but another thing entirely is what does it cost to live?
So people who obviously we would all like to have
a paid off house and that kind of thing, but
to get there it just takes longer because houses cost more,
interest rates are higher now and so that that is
something that this hangs around a lot longer. So I
(07:54):
think the real goal here to deal with this is,
first off, figure out where you are. What does it
cost you to be you right now on a monthly basis.
This is huge most people worry about, well, so scary
is gonna go away and all these scary things. That's fine,
What does it mean to you? What do you know
where you are right now? And can you calculate the
actual financial impact that that's going to have. And I've
found that very educational for people to go through that process.
(08:17):
And it's not to say that it's always a happy result,
but it's usually not nearly as scary as what they
think because they've simply never done the math.
Speaker 1 (08:25):
Yeah, and you have to factor in, you know, and
we've talked about this, i think earlier this week. Some
people just rationalize not doing the planning and the savings, saying, well,
there's no way I'm going to live to be ninety
two or ninety four, and my spouse isn't going to either,
you know, because Uncle Joe or Grandpaul Fred died when
they were seventy seven, and I'm going to plan on
doing the same. And that's not reality in my opinion.
(08:48):
That's a rationalization in a lot of cases. So you've
got to factor in increase longevity, which can be a
good thing if your retirement plan is well funded and
you stay healthy.
Speaker 2 (09:00):
And then the other thing that we.
Speaker 1 (09:01):
Always stress test our retirement plans for is the worst
case scenario, what happens if social Security benefits drop twenty
or twenty five percent, you know, ten years from now.
Let's make sure that plan is viable and sustainable in
the event that government benefits i e. Social Security drop
a little bit. So you've got to have a plan.
You got to look at different contingencies and make sure
(09:23):
each family out there is comfortable and feel secure with
what they've got to with what they have in place.
You can't just sit back and assume that the government
is going to take care of all this, because in
most cases they can't and they won't.
Speaker 3 (09:41):
Yeah, so let's talk about that, because you use the
term kick the can, and I've said that in my
office to people just about every meeting, as we're talking
about questions of well, what are we going to do
with this? If this changes? Yes, can the government fix it?
Of course, government can do whatever it wants. Is the
government going to be willing to That's the problem because,
like I said before, there's no way to fix this
without some kind of sacrifice being involved. So the person
(10:03):
who's gonna every change that comes through legally has a
person attached to it. Somebody drives the bill, somebody will
permanently have their name attached to an attempt to either
lower benefits on retirees or raise taxes on workers. Both
of those are obviously a sacrifice. So if I'm a
politician and I would like a chance at being reelected,
it is really, really, really super scary right now for
(10:25):
me to go out there and be that guy that says, hey,
you need to sacrifice. American people have not been great
at that over years. Maybe you go back to World
War Two and when the last time we were really
able to come together and make sacrifices for the better
of the whole. Ever since then, it's been a full
steam ahead, Let's make as much money as we can.
And I got yours, and that's kind of where I
got mine. That's kind of where we are right now.
(10:45):
And you know, so didn't think about this. We're not
the only country associated with this. What happened in France,
so President Macrone raised the national retirement age there from
sixty two to sixty four. And this is in twenty
twenty three. Millions of people took to the streets. This
was the jackets, transportation shut down, Trash piled up all
over in Paris. It was just chaos. It wasn't that
they were upset more about working two years, two more years.
(11:08):
They were just upset that the decision was made without
a parliamentary vote. So, in other words, France had the
same problem. Nobody pushed a bill forward or whatever they
call it in France to do this. The president basically
just said, you know what, this is broken and it's
not gonna get fixed unless we just tear the band
aid off and do it. And that's what he did,
which triggered a lot of social unrest. Though. So and
that was over age sixty four. Here, we have already
(11:30):
pushed that four retirement agents and states to sixty seven,
although you can sign up for so security a little
bit earlier than that. But anyway, I would anticipate a
lot of pushback when this happens, even if it's good
for us in the long run.
Speaker 1 (11:42):
Yeah, what we don't want to get into is we
do not want to get into the situation here in
the United States where the social security benefits system gets
changed in an emergency order, you know, via executive order.
To your point about France, I mean, we Congress has
to do their job, and the sooner they do it
do it the better.
Speaker 2 (12:01):
Yeah.
Speaker 1 (12:02):
So, all right, here's the all Worth advice. Longevity is
an opportunity. If your financial house is in order, working
longer can be a strategic asset too, not a burden.
The key here is to have a plan in place
and monitor it on an ongoing basis. Speaking of longevity,
we're going to break down some of the nuances of
(12:22):
long term care insurance that'd even savvy investors often miss.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC the talk station.
Speaker 2 (12:34):
They be rich, we call them every day millionaire.
Speaker 1 (12:37):
Every day listen to Dave Ramsey.
Speaker 4 (12:40):
They typically say one of the things that turned their
life around was when they started looking at purchasing something rich.
People ask how much broke people and I've been both
brother okay broke? People ask how much down and how
much a month?
Speaker 3 (12:57):
Tonight at seven oh six started asking how on fifty
five DRZ talkstation.
Speaker 5 (13:04):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 1 (13:23):
You're listening to Simply Money, presented by all Worth Financial
on Bob spon Seller along with Brian James. If you
can't listen to Simply Money every night, subscribe and get
our daily podcast. You can listen the following morning during
your commute or at the gym or whatever else you
do in the evenings where you might want a little
bit of financial advice, just search Simply Money on the
iHeart app or wherever you find your podcasts. Straight Ahead
(13:46):
at six forty three, it's our ever popular Ask the
Advisors segment, where nuanced advice meets real life wealth decisions.
We talk a lot about risk in retirement, market risk, inflation,
risk taxes, but there's one that often flies under the radar,
the cost of needing long term care. And just because
(14:08):
you might have looked into insurance in the past, or
might even have a policy that's fifteen twenty years old,
that doesn't mean you understand what you're really getting or
what you actually own today. Let's jump into this topic, Brian,
because it is coming up more and more and more.
I don't know about you, but I'm running into this
(14:28):
often now with folks in their mid to late eighties
and and their children.
Speaker 2 (14:34):
It's an important topic to cover.
Speaker 3 (14:36):
Yea and especially earlier in retirement. This doesn't mean you
should rush out and buy long term caricters because we're
talking about it, but there are a lot of topics
out there that sometimes we just need to plan a
seed and make sure that the basics are there and
we start thinking about it so that when the time
actually comes, it won't be the first time you've started
learning about these kinds of things. So and really speaking
to those of you who might be in that kind
of weird middle zone where you too much money to
(14:57):
qualify for Medicaid, which is that's the that's in the
headlines a lot lately. That's what we provide for people
who don't have a lot of resources to cover their healthcare,
but at the same time also not wealthy enough to
self ensure, meaning you've just got enough to pay for
whatever comes down the pike. And so that is where
that middle zone there. That's where long term care insurance
can make some sense. But there's some things that people
(15:18):
often miss. That's what we want to talk about today.
First off, it's not just nursing homes. We instantly think,
as soon as I'm thinking long term care, that's a
nursing home. Well that's yes, that's of course part of it.
But a lot of policies actually cover in home care.
As matter of fact, the insurance companies prefer it because
in the long run it's cheaper. People are happier and
healthier when they're in their own environments, and so you know,
sending a nurse or somebody there to kind of help
(15:39):
them through the day can be a lot a lot
better for everybody all around. Also, assisted living moving into
a facility that you're still pretty much independent, but at
the same time there's medical staff on site. There even
adult daycare somewhere you would go once a day and
come home at night. So if your goal is to
stay in your home longer, long term care insurance can
cover those things if you pick the right house.
Speaker 1 (16:01):
All right, I want to jump in with a couple
of things here. You talked about folks that are in
that middle zone, and Brian, you know, this is the
unfortunate situation that I find, you know, in doing retirement
planning for well over thirty years now, you've got the
folks that you know they're in danger or running out
of money, and and they're they're the ones that are
in danger of having to need to qualify for Medicaid.
(16:23):
And then you've got the folks that have way more
than enough money to self ensure, they're not worried about
this cost because if they need long term care coverage,
their lifestyle economically really isn't going to change in terms
of how much money is spent, you know, every month.
It's those folks in the middle, and that's where things
get challenging because if folks are just trying to get
(16:45):
enough money saved to retire, and their retirement income need
or want is about half of what it would be
if one of the two spouses goes on any kind
of long term care situation. That's the challenge because you
can make people borderline insurance poor by having a buy
long term care insurance. And there's the conundrum, what happens
(17:08):
if you don't get it, you know, in the worst
case scenario happens.
Speaker 2 (17:11):
That's where it's really critical.
Speaker 1 (17:14):
To sit out and look at the pros and cons
of even doing insurance the other thing, you know, and
I'm finding this. I have found this for the last
ten fifteen years, where I've had clients actually use this
stuff or need some type of care.
Speaker 2 (17:28):
I mean, the claims the claims data.
Speaker 1 (17:30):
Bears this app well over eighty percent of all claims
for long term care coverage or for in home care.
People want to stay in their home, and understandably so,
so remember that when you're looking at this stuff, everybody
wants to stay in their home if possible. It's about
getting the right type of assistance at the right price
(17:53):
to make sure staying in your home is economically feasible,
and most importantly, keeping people in that process and not
burning out or overburdening loved ones. So we've got some
assistance coming in.
Speaker 3 (18:07):
Yeah, So let's talk about some of the things that
do trip people up when we're looking at what our
solutions might be for this. So, first off, Medicare does
not cover it. There's Medicaid, which is which will cover
because that assumes you really don't have enough resources to
support yourself. That's what Medicaid is, or the dagen Medicare
does not cover it. So I want to say that
a couple of times Medicare does not cover long term care.
(18:27):
So it might cover like a rehab stay. It'll give
you thirty days after some kind of major medical procedure,
but that is limited and it is temporary, so you
can't rely on the government for that. Premiums do go
up even after you buy. You know, I think back
to thirty years ago when I believe it was General
Electric was a last or maybe it John Handtock. It
don't matter, It doesn't matter anymore. But anyway, somebody was
(18:48):
so proud of the fact that they had never ever
ever raised their premiums. That was in the history of
the company, and that was their big marketing tagline. Well
then all of a sudden they realized that they too
had missed priced the risk and weren't able to cover
the things that they had taken on.
Speaker 1 (19:00):
So these General Worth policies, yeah, these gener Worth policies.
Speaker 2 (19:04):
And this is no slam on General Electric.
Speaker 1 (19:06):
I mean they, I think wisely divested themselves be again.
Speaker 3 (19:09):
And need it so nobody remembers that Genworth is General Electric.
Speaker 1 (19:12):
But Brian, I'm having people every two to four years
or getting these letters in the mail saying, hey, if
you want to keep what you have, great, but the
premiums are going up fifteen to twenty percent. I mean,
this is happening, and I know a lot of our
listeners out there have experienced this happening.
Speaker 2 (19:28):
It's real.
Speaker 1 (19:29):
And because twenty five thirty years ago, when these policies
first came out, there was not a lot of underwriting
history on these things, and they were too inexpensively priced
based on the claims data.
Speaker 2 (19:41):
So you know, it's.
Speaker 1 (19:42):
Dollars in dollars out from an insurance company standpoint, they
got to make a little bit of profit. But if
they pay way more out in claims than they're taking
in in premiums, they obviously go out of business and
then nobody gets their their benefits.
Speaker 2 (19:54):
So that's a real situation that has been happening to people.
I didn't mean to interrupt.
Speaker 3 (20:00):
Okay, So and this is something to look at. Now
if you wait, you might not qualify. So early sixties,
even late fifties, that's the good window there. There are
policies out there that will let you share benefits with
a spouse. You can pay with hell savings accounts. And
there's also something called a hybrid policy that will offer
a death benefit. There's so lots of moving parts to
look at there.
Speaker 2 (20:17):
Here's the all Worth advice.
Speaker 1 (20:18):
Long term care insurance is more complicated, but it's also
more flexible than most people realize. Understand the fine print.
Now get out in front of this so that you're
not caught off guard later next why the next few
years could present a once in a generation opportunity to
keep more of what you've worked hard and earned. You're
(20:38):
listening to Simply Money, presented by all Worth Financial on
fifty five KRC, the talk station.
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Speaker 1 (21:07):
You're listening to Simple Money present by all Worth Financial.
I'm Bob Sponsorer along with Brian James, Markets fluctuate and
tax laws of all investors are navigating a financial environment
that demands more foresight and examination than ever for those
with significant wealth. These shifts don't just impact annual tax filings.
(21:29):
They carry long term implications for investment outcomes, retirement readiness,
and legacy planning. Brian, let's get into some of the
complexities here. What's going on and what should we be
thinking about as we juggle all these balls in the
air about tax efficiency, investment returns, and making sure we
don't run out of money.
Speaker 2 (21:49):
In retirement.
Speaker 3 (21:50):
Well, that's what it's all about, isn't it, Bob, Just
not letting the bucket run dry. So yeah, lots of
moving parts. People have to think about that they didn't
used to. Because you're a higher earner, there's just more
moving parts to all this. You often hit hit your
deductions and your credit limits faster. And the capital gains
income tax management. The capital gain is one of the
biggest drivers of tax exposure. If I own, if I
(22:12):
bought something for ten and I sold it for twenty,
that means I made ten bucks a share on it
or whatever that is. That means the I r S
gets a chunk of it too, in the form of
capital gains.
Speaker 2 (22:20):
And a lot of.
Speaker 3 (22:20):
Cases, if I'm a you know, if I'm a high earner,
then i may be in a situation where I've now
got a concentrated stock position. This is where we know
locally it's a lot of Procter and Gamble people and
Kroger people who have been there, you know, spend twenty
thirty years at those large fortune five hundred companies. A
lot of the compensation is made up of stock grants
and or options. That means you end it with the
giant pile of it. And there's risk in that we
(22:42):
don't have to look too far and that there's nothing
wrong with Proctor, Gamble, Kroger and all that, But there
are plenty of Life is littered with lots of companies
with terrifying stories about how they evaporated, even if it's
in the short term. I was just having a conversation
with somebody last week who's in this exact situation. Procter
and Gamble is, you know, goes through these waves of
laying off people and that kind of thing. So everybody
has to start thinking about what they want to do
(23:03):
and what winds up happening. Is they all remember the
Dirk Yager years from the early two thousand when Dirk
Yager was installed as the CEO. He came up with
his Millennium two thousand plan or whatever it was, and
the market insta hated it and took away about fifty
percent of the value of Procter and Gamble in a
matter of about six weeks. And that can happen. You know,
if you make the stock market mad, the hert is
(23:24):
going to stampede and take your retirement with it. Procter
and gambled itself obviously is in fine condition today and
it came back roaring and better than ever. But if
you were somebody who wanted to retire from P ANDNG
in two thousand and one, two thousand and two when
that happened, that probably changed your life because you had
so much tied up. And again that has nothing to
do with P ANDNG being a bad company, But the
market can smack anything around in the relatively short term.
Speaker 1 (23:47):
Yeah, And that's the unfortunate thing. And we're not calling
a doomsday scenario for Procter and Gamble, a great company,
well run company. But the unfortunate thing, Brian, is these
kind of what i'll call black Swan type of events.
They usually only happen about twenty every twenty to twenty
five years. And the generation that experienced that is way past,
(24:08):
you know, gone and retired, and the folks that are
retiring today don't remember that those days twenty to twenty
five years ago. And history doesn't always repeat itself, but
it often rhymes. And that's where you got to stay,
you know, you got to remember too much of any
one thing can blow up on you, no matter how
well managed or how well intentioned people are and that
(24:29):
get you know, there's ways to get around this. As
far as this over concentration thing, you can stage it
in over time. You can put collar strategies in place,
you can direct index. There's a lot of things you
can do to you know, responsibly and tax efficiently, unwind
a concentrated a concentrated position in anyone's stock and to
(24:51):
say nothing of some of the charitable you know, opportunities
out there with donor advised funds, charitable remainder trust.
Speaker 2 (24:57):
There's a lot of things you can do out there.
Speaker 1 (25:00):
Let's get into a state in gift tax exemption planning.
I mean, I know, with the the new bill that
just got passed, that took a lot of uncertainty out
of there as far as you know, making permanent the
large unified credit which will now be up to you
almost fifteen million.
Speaker 2 (25:15):
Dollars per person.
Speaker 1 (25:17):
But there are some things that you got to plan around,
you know, in that regard to right, Brian, you.
Speaker 3 (25:21):
Know, one of the most impactful provisions for these high
network families, that is the preservation of the pretty high
historically speaking, the relatively high federal estate and gift tax exemptions.
Those are going to increase to fifteen million dollars per person.
In other words, what I'm saying to you out there,
dear listener, is that don't worry about a state taxes
unless you yourself individually own more than fifteen million dollars
(25:43):
worth of assets. I mean thirty million dollars for a
for a married couple, if titled properly. That's its own
radio segment. We'll leave that there for now. But state
taxes are not an issue. There was the threat that
it might come back where this all comes from. As
President George Bush the second a long time ago started
the process of increasing how much was being passed through,
and I believe it would used to be six hundred
(26:05):
thousand dollars. Anything above that, which is not that hard
of a level to get to anymore, anything above that
was deemed with the state taxes. But now that number
is fifteen million. So state taxes are not a thing anymore.
That could have gone away, But those were extended and
actually increased as a result of the Big beautiful Bill
and so forth. So other things out there. In your
vocable life insurance trust, that's a way to keep life
(26:26):
insurance proceeds out of your estate and you can also
apply valuation discounts. If you've got a business or real
estate interest, there are ways that the tax laws will
allow you to affect that valuation to make it a
little more different than here's what it is. If I
if I sold it on the open market, it's worth this.
But there are different things you can take advantage of
the tax code, if you'll understand all that properly.
Speaker 1 (26:47):
All right, those are some of the kind of what
off unique strategies out there. But I want to talk
about what most people should be doing, and Brian, what
we do every day and we run into this situation
with almost everybody we work with, and that's doing just
good old proactive cash flow and tax planning.
Speaker 2 (27:04):
What do I mean by that?
Speaker 1 (27:06):
During that window between when you retire and when required
minimum distributions kick in, examine whether, if or when and
how much ROTH conversions makes sense for you, factoring in
how that's going to impact your overall tax strategy. You
dovetail that with your social security claiming strategy. How to
take some capital gains. There's a lot of things you
(27:28):
can do there if you do some planning and get
with a good CPA financial advisor or in the best
case scenario, a combination of both of them working together.
Here's the all Worth advice. A flexible strategy that aligns
with your goals and adapts to policy changes can help
reduce risk, boost after tax returns, and preserve more of
(27:49):
your wealth. Coming up next, we are tackling the real
questions that listeners are asking, maybe even ones you've been
wondering about yourself. You're listening to Simply Money, presented by
all Worth Financial on fifty five KRC, the talk station.
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Speaker 1 (28:46):
You're listening to Simply Money, present up by all Worth financial.
I'm Bob Sponsller along with Brian James. Do you have
a financial question you'd like for us to answer. There's
a red button you can click while you're listening to
the show right there on the iHeart app. Simply record
your question uestion and it will come straight to us.
Speaking of questions, Brian, let's hear from Brad and mount
lookoup in Mountains.
Speaker 3 (29:07):
Please explain what the survivor penalty is? Yeah, Brad, great question.
So that's that's something that has come up that comes
up all the time. We're talking about taxes and what
happens after you lose a spouse and all of a
sudden you have to switch from married set aside all
the emotional that goes of that, you also have to
insult injury switch from married filing jointly to single. So
(29:29):
the reason this is the thing is because the income
thresholds for the tax brackets are much lower for single filers.
Right when I hear the word lower and taxes, I
usually get a good feeling, but this is a bad one.
Speaker 5 (29:38):
Me.
Speaker 3 (29:38):
What that means is that if you hit the thresholds
sooner because they're lower, that meets your taxes go up. Quicker,
so the survivor can get pushed into a high tax bracket.
You also lose the one standard deduction, and so that
the standard deduction in twenty twenty five is around fourteen
six versus twenty nine to two for joint filers over
sixty five. That's the problem. Single person may get taxed
a little more on the Social Security kicks in a
(30:00):
little sooner because of again, because of the way all
this math works. So again, this is really the way
to avoid this. You can't change the tax brackets, they
are what they are, but control what you can control.
This is where roth conversions come in. If you have
a significant pile of money and a pre tax IRA,
you might look at paying taxes on then now pulling
that taxation forward so that your rmds will be reduced.
(30:22):
You can also, if it's a concern of draining your
own estate and therefore taking it away from your kids
life insurance, might make some sense to create an estate
at your death to offset some of that. And Joe,
just make sure you this all starts with what we
always say, Bob. This all starts with knowing where you
are in the first place. So understand where your situation
is now, then you can look at what if Heaven
forbid I lose my spouse. Let's move on to Joe
(30:43):
and Blue Ash, who has a question about, Hey, go
figure it roth conversion.
Speaker 1 (30:46):
How do you balance roth conversions with staying under Medicare
premium cliffs? Great question, Joe. Let's talk about what these
Medicare premium cliffs are. There's something called IRMA, and I'm
not going to get into it's a big long acronym,
but if basically means what Joe's asking about. If you
have too much earned income, you pay more in premium
on your Medicare. So what we do, what it sits
(31:09):
with is what we talk about all the time, developing
an income strategy and along with that a Wroth conversion strategy.
So when you layer in things like a potential Wroth
conversion along with maybe pension, social Security, other income you've
got coming in, we want to make sure we walk
right up to that line where you take advantage of
(31:31):
the great opportunities that Wroth conversions give you, but don't
cross over that line from an income standpoint and start
to irrevocably drive up your Medicare premiums. There's some great
there are some great tools out there that help us
do that. We sit down and do that with every client.
I know a lot of good CPAs are doing that
as well. But again it comes down to the difference
(31:53):
between tax preparation, which is what eighty to ninety percent
of people just do. They just mail in all their
stuff and wait for the answer to come back from
their CPA versus proactive tax planning where you sit down
and run some actual scenarios on if I do this,
what happens over here, and you balance it out and
(32:13):
you maximize your income strategy.
Speaker 2 (32:15):
All right, let's hear from Laura and Villa Hills.
Speaker 3 (32:18):
I've got a concentrated stock position from a former employer.
What's the best way to onwine that without triggering a
huge tax bill. Well, congratulations, Laura, this is a good
problem to have. Concentrated stock means just that I got
a lot of my networth tied up in a stock
that is mostly because of an employment or perhaps you
own the company or whatever. But so then the risk there.
(32:38):
If it's a concentrated stock position, that usually implies that
the thing did pretty well, So congratulations, it must have
grown a lot. But that also means that there's usually
capital gains in the mix here, so that's usually the concern.
If it is a position that is not inside of
a retirement plan, not an IRA, not a four oh
one K, nothing like that, then it's exposed to capital
gains taxes, which actually are slightly more favorable than income taxes.
(33:00):
But taxes are still taxes. So what do we do
about that? Well, the first thing I would look at
is if you are some of the easier things to handle,
If you are already charitably inclined, then you might look
at if you write checks to a church or you know,
some five oh one C three type organization every single year,
then first off, you may have lost your deduction on
that a few years ago twenty seventeen when the Tax
(33:20):
Cuts and Jobs Act increased the standard deduction and therefore
losing the deduction or just getting it for free basically.
So that's a case where you might donate some of
that stock, just donate the shares. If you do that
donation of appreciated shares, then you will you're passing the
gain on to an entity that doesn't pay taxes. Anyway,
you get the deduction for the full dollar amount whatever
(33:41):
it was worth. A day you donated it that five
oh one C three will turn around and immediately sell
it and you use it for whatever their purposes are.
They will not pay to capital gains. So as matter
of fact, I run across people all the time that
are writing checks to these organizations, which to me is
a waste of everybody's you know, tax dollars, because they
could simply give the share is five 'LLENTC three gets
the same amount of money and no sacrifice, but really
(34:03):
by anybody. But if that's not what you have in mind,
then you're going to be looking at something called an
exchange fund or a swap fund. This is where if
I have a big pile of PNG, I can band
together with people who have a bunch of Kroger, or
a bunch of IBM, or a bunch of Apple and Video,
whatever it is. We all throw our shares into a pile,
and then we each take a proportionate share of the
resulting pile of stuff. This is not a sale. It's
(34:26):
not nearly as simply as I'm making it right now.
It's not a sale, so it doesn't trigger taxes. But
I do have now I have a representation of a
lot of different companies. It's a way to spread that
risk out.
Speaker 2 (34:34):
So those are two.
Speaker 3 (34:35):
You're either charitab being inclined or you want to spread
out of diversification, and sometimes both of those can help.
Bill and Mason is retired and has got some questions
about rm ds.
Speaker 2 (34:44):
My wife and I are retired and we don't need
our rm vs to live on.
Speaker 3 (34:48):
What's the smartest options for putting our money to work?
Speaker 1 (34:52):
Well, Bill, I obviously don't know whether you're retired and
not yes yet at RMD age or whether you're already
at RMD So the answer is slightly different depending on
what situation you're in.
Speaker 2 (35:04):
So let's briefly cover both.
Speaker 1 (35:06):
If you're tired and not yet at that RMD age,
there's where the opportunity is and a big one. You know,
you just retired, your income is lower, and you've got
an opportunity to do these Wroth conversions that we've been
talking about. You know, you sit down and sketch that
out and try to get as much money moved into
wroth IRA's at the lowest possible tax rate. You can.
Speaker 2 (35:28):
Wonderful strategy there.
Speaker 1 (35:30):
If you're already at r m D age and I
run into this a lot with folks that are in
their late seventies and are still writing checks to their church.
If you're charitably inclined, you tie to your church. You
give other money to other you know, ministries or other charities.
A lot of people are still making cash gifts where
they could be taking IRA money beginning at age seventy
(35:52):
and a half and diverting that IRA money directly to charity.
And if you do that, the amount of that charitable
gift does not even hit your ten forty and is
not even counted as taxable income. You don't get a
deduction for that gift. But it's even better, the rmd
does not hit your tax returns taxable income. So that's
(36:14):
those are two scenarios you can look at. And then
if worst case scenario, if you don't need the rm ds,
you've maxed out what you want to give to charity,
you just convert whatever is left in those rmds over
to a taxable investment account. Because you brought up keeping
that money you know, working for you and putting it
to work, put it in a taxable, tax efficient brokerage
(36:35):
fund and let it grow long term for your kids
and grand kids. Coming up next why you could be
eating your retirement, literally eating it one mimosa brunch at
a time. You're listening to Simply Money, presented by all
Worth Financial on fifty five KRC the talk station.
Speaker 2 (36:51):
We've been taking you back to school all summer. It
sounds like a high school term paper.
Speaker 3 (36:57):
They got a little more.
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Fifty five KRC the station liable information and of course
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News that affects you at the top end to bottom
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Speaker 1 (37:15):
You're listening to Simply Money because I have by all
With Financial on Bob Spon seller.
Speaker 2 (37:18):
Along with Brian James. So get this Brian.
Speaker 1 (37:21):
MarketWatch recently published an article that got our attention. If
a couple spends one hundred dollars a day eating out,
or just fifty dollars a person over the course of
forty years, which is you know, which is I guess
a long but not out of the question retirement shold.
Now they'll have spent nearly two million dollars just on
(37:44):
restaurant meals uh, something to keep an eye on here.
Two million dollars is a lot of money, Brian, and
that can make or break the viability of one's retirement plan.
Speaker 3 (37:55):
Yeah, and that that one hundred bucks a day eating out.
That used to sound like a lot. Remember when one
hundred dollar meal that you were celebrating somebody's birthday or
graduation or whatever. It was a big deal. But now
you know, if I'm eating lunch and dinner out there,
and I'm a married couple, well then that's fifty bucks apiece.
That's twenty five bucks apiece per meal. Well, that's that's
lunch at Skyline, love my skyline. But that's where that's
about where they are now. And so again that all
(38:18):
sneaks up, and that's two million dollars, right, this is
the problem with the snowball and so forth. That's before
you factor in the tip if that's a thing, and
maybe that extra glass of wine and all that stuff.
You know, where there's two million dollars, that's a nest
egg for a lot of people. So again, one hundred
bucks a day eating out over forty years is going
to add up a lot. So you can apply this
to a lot of different things, but different expenses that
(38:39):
maybe you can seem to be fairly innocuous but end
up sneaking up on us. So if you've done the
right things and you built up a solid nestick, it's
probably not a major concern. It's more of an expensive hobby.
I think.
Speaker 1 (38:52):
Yeah, I think the key here, and we can make
fun of, you know, one hundred dollars skyline bill and
eating out and all that. But I think the point
we're trying to make here is is when you examine
your retirement budget, what you're actually going to spend or
want to spend. And what I what I always tell people, Brian,
is I don't need to know how much you spend
on a pack of gum or something like that, but
(39:15):
numbers that start to add up to, you know, in
the hundreds of dollars per month, it's worth taking a
look at, especially if you're on the margins in the
area being able to viably retire, and say, hey, are
there things that we can trim back on just a
little bit without ruining our life and taking all the
fun out of our life as opposed to just letting
(39:37):
it rip, do whatever we want and hoping it.
Speaker 2 (39:39):
Works out in the end. That's really what we're talking
about here, Brian.
Speaker 3 (39:43):
Yeah, and again this is not at all about stop
doing you know, I always tell my clients everybody comes
in wanting to build a retirement plan, and most people
who have built something are relatively frugal people to begin with.
So they'll walk in and they'll say, we're gonna build
a vestable garden in the backyard. We're gonna eat out
of that, and we're never gonna leave the house. And
I always say, no, you're not. If you were going
to do that, you'd have done it already. That sounds awful,
and it sounds like a terrible retirement. I just keep
(40:04):
working if that's your plan. So let's not start there.
Let's figure out what you do now. If eating out
is a social thing, if that's an important thing, that's
important stuff. It is not. We're not on this planets
to stare at a growing pile of money. We are
here to enjoy each other's company and help out where
we can, and so on and so forth. So understand
what your life is like and then build your financial
plan around that.
Speaker 1 (40:24):
Yeah, if you really love eating out and you want
to keep doing that, great, Maybe just trim back from
having four paid movie subscriptions or streaming services to maybe two.
There's always a way to skin the cat. Here here's
the all Worth advice. You've saved well don't. You don't
need to skip the stake, just maybe skip the third course.
Thanks for listening. You've been listening to Simply Money, presented
(40:46):
by all Worth Financial on fifty five KRC, The Talk Station.
Speaker 2 (40:51):
News when it Happens, Breaking news tonight. We are coming
to you live news when you need it. You're going
to want to listen to this news expected.
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We've never quite seen anything like this, cheaping you up
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Speaker 3 (41:05):
This is gonna be quite in the event today.
Speaker 1 (41:07):
And you're gonna want to make sure you leave the
house extra early.
Speaker 2 (41:09):
Globally, nationally, everywhere in between.
Speaker 5 (41:12):
I don't know what I would do without it.
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Fifty five KRC, The Talk Station,
Listening and the entire world is watching check in at
the top of the hour fifty five krs the talk station.
Speaker 2 (00:14):
Tonight.
Speaker 1 (00:15):
Why more countries are pushing retirement dates out even later
and what it signals potentially for your financial future. You're
listening to Simply Money, presented by all Worth Financial on
Bob Sponseller along with Brian James.
Speaker 2 (00:27):
So you built a nest egg, maybe.
Speaker 1 (00:29):
Refinance your home, maxed out those retirement accounts.
Speaker 2 (00:32):
But what about timing.
Speaker 1 (00:34):
It used to be work forty years, get the gold watch,
retire around sixty five. Now others around the world are
working later. Maybe it's worth asking should you work later too, Brian,
I'm restraining myself right off the bat on a couple
of these things. But let's get into this topic. We're
talking about what others around the world are doing, governments
(00:57):
and countries around the whole issue of retirement dates.
Speaker 2 (01:01):
Yeah.
Speaker 3 (01:01):
So, I think the one thing that a lot of
places didn't really account for, a lot of countries did
an account for, and especially this one, is longevity. Right,
So how long are people going to live when these
programs and things were set up way back when they
were based off of a shorter life expectancies and that
started coming back around to bite the different pension systems.
We see it here right. One of the reasons that
companies have spent the last thirty forty years getting rid
(01:23):
of pensions and dumping it into four h one K
type arrangements is to get out from under the burden
of needing to pay for somebody for thirty forty years
after the last time they sat at their desk and
actually perform some kind of service for that company. So
what's happening around the world. So France, Germany, Canada, Japan,
everybody is increasing the official retirement age or you know,
(01:44):
modifying their pension systems to reflect that reality longer lifespans. Specifically,
France raised its age from sixty two to sixty four.
You might remember that there were protests and things kind
of exploded over there when that happened. And in so
Denmark too. The Denmark is now moving their state pension
age from sixty seven to seventy. By twenty forty. China
is shifting their retirement ages as well, men from sixty
(02:05):
to sixty three. This is interestingau they have a difference
there women up to fifty eight, and that's gonna be
phased in starting January twenty twenty five. The United States
has had a history of this too. We have moved
ages on social security and things like that in during
my career, but it's been a very, very long time.
I don't remember when that was, but it was in
the late nineties when I first started, they moved the
ages forward, so we haven't been as proactive with it.
(02:27):
But the same demographic trans exist here well.
Speaker 1 (02:31):
In the World Economic Forum has something called the Organization
for Economic Cooperation and Development, and I guess that's a
long winded way of saying they get a bunch of
people in a room from all over the world and
try to plan out the economy for all of us,
and they predict by the mid twenty sixties, average effective
(02:52):
retirement ages will climb by about two years worldwide. Brian,
I don't need a think tank to come up with
why this is happening. Let's face it, people are living longer,
and globally, folks are having fewer children. So when you
have a pay as you go pension system like social
Security and you have people living longer and being healthier,
(03:16):
the math's not going to work. So adjustments are going
to have to be made. What am I missing here?
Speaker 3 (03:21):
Nothing?
Speaker 2 (03:21):
I mean, that is the problem. You hit it right
there on the head.
Speaker 3 (03:24):
The math on't math is really the as the kids
say these days. And then I think, what makes social
security our own homegrown pension plan a little more, a
little more susceptible to this is the fact that you know,
we talk about this all the time. The reason that
people have a debate over when am I going to
turn my social securities bigot on? Everybody wants to max
it out for obvious reasons. How can I maximize my
(03:45):
social security? And the reason we look at that is
because every year you don't turn it on. Let's say
you've hit age sixty two. Now you're in the window.
You can take it as early as sixty two and
get the lowest check you'll ever see, or you can
wait till seventy and take the biggest check you have
you'll ever see. That's not that question, not as obvious
as it seems, by the way, But the math there
basically says, every year you ignore it, it will go
(04:06):
up by eight percent. That is not a number that
is indexed to inflation. It does not change. It has
been in concrete eight percent increases every single year. You
don't sign up for it. And that was set in
concrete in the forties and fifties, back when we were
just in a different environment and longevity wasn't a problem.
But now we've got people. Back then, the life expectancy
might have been fifteen twenty years past retirement. Therefore, that
(04:29):
eight percent didn't really come home to rust. But remember
how compounding works. We love eight percent compounding when it
comes to our four to one case. When it comes
to our public pension, which we all have to pay
taxes for. Now we have to account for an extra
ten to fifteen, even twenty years on top because people
can be retired and on Social Security literally for forty years,
so we have every year we have more coming out
of the system than is flowing in, which is why
(04:51):
the expectation of social security will quote unquote the trust
fund will run out. I hate that headline, but that's
what they say. Trust fund will run out in the
early twenty thirty That it doesn't mean it's going to
go to zero, and be super clear about that. What
it means is that we won't have a surplus anymore.
If we will simply be functioning off of what goes
into the system off of your and my pay stubs.
Out of that fight a section on the top half,
(05:13):
and so that that's something we have to worry about.
But at the same time, there's no change can be
made to that. It's not gonna be fixed without some
kind of sacrifice by somebody. We're either going to pay
more taxes now, or we're going to reduce our benefits.
Are more likely a combination of both, and there are
thousands of ways that could come to bebop.
Speaker 1 (05:27):
Yeah, And going back to some of these numbers, some
of the data and again this World Economic Forum study,
they're saying that workers per retiree are projected to fall
from about four to just over two by twenty fifty.
So that's half the number of workers economically supporting the pension,
you know, whatever you want to call it, social security
(05:50):
or whatever name they have for in other countries. We're
going to have half as many workers supporting that pension
system as we do today by twenty fifty.
Speaker 2 (05:58):
That's a significant change.
Speaker 1 (06:00):
In the United States, the average labor force exit age
is already creeping up about four and ten. Workers now
expect to work past the age of sixty five. That's
a dramatic rise from just one in ten just thirty
years ago, and nearly two and ten Americans over age
sixty five are still employed today, nearly double from three
(06:22):
decades ago. You're listening to Simply Money presented by Allwood
Financial on Bob Sponseller along with Brian James. Brian, let's
get into some of the challenges here with these policy gaps,
and we've talked about this before. The United States is
just you know, in my opinion, just kicking the can
down the road in the need to address this so
(06:43):
we don't have this overnight drop of twenty to thirty
percent of Social Security benefits in twenty thirty three or
twenty thirty five or whenever we go on this fully
pay as you go system. Let's get into some of
the challenges and things we should actually be doing to
get ourselves in a position to make sure we don't
(07:04):
have a negative impact on our retirement irrespective of whatever
the government does or doesn't do.
Speaker 3 (07:10):
Yeah, so this is something to be paying attention to.
So we are we're in a situation now we just
get here's some of the reasons, right, It's not just
the longevity it's also you know what a stuff costs nowadays.
So for example, if we look at homeowners age sixty
five to seventy nine, way back in nineteen eighty nine,
only about twenty four percent of people still had a
mortgage at that age. In twenty twenty two, the last
(07:31):
time the study happened that I'm looking at, that percentage
went to forty one percent. So of course people are
a longevity is one thing. Living longer is one thing,
but another thing entirely is what does it cost to live?
So people who obviously we would all like to have
a paid off house and that kind of thing, but
to get there it just takes longer because houses cost more,
interest rates are higher now and so that that is
something that this hangs around a lot longer. So I
(07:54):
think the real goal here to deal with this is,
first off, figure out where you are. What does it
cost you to be you right now on a monthly basis.
This is huge most people worry about, well, so scary
is gonna go away and all these scary things. That's fine,
What does it mean to you? What do you know
where you are right now? And can you calculate the
actual financial impact that that's going to have. And I've
found that very educational for people to go through that process.
(08:17):
And it's not to say that it's always a happy result,
but it's usually not nearly as scary as what they
think because they've simply never done the math.
Speaker 1 (08:25):
Yeah, and you have to factor in, you know, and
we've talked about this, i think earlier this week. Some
people just rationalize not doing the planning and the savings, saying, well,
there's no way I'm going to live to be ninety
two or ninety four, and my spouse isn't going to either,
you know, because Uncle Joe or Grandpaul Fred died when
they were seventy seven, and I'm going to plan on
doing the same. And that's not reality in my opinion.
(08:48):
That's a rationalization in a lot of cases. So you've
got to factor in increase longevity, which can be a
good thing if your retirement plan is well funded and
you stay healthy.
Speaker 2 (09:00):
And then the other thing that we.
Speaker 1 (09:01):
Always stress test our retirement plans for is the worst
case scenario, what happens if social Security benefits drop twenty
or twenty five percent, you know, ten years from now.
Let's make sure that plan is viable and sustainable in
the event that government benefits i e. Social Security drop
a little bit. So you've got to have a plan.
You got to look at different contingencies and make sure
(09:23):
each family out there is comfortable and feel secure with
what they've got to with what they have in place.
You can't just sit back and assume that the government
is going to take care of all this, because in
most cases they can't and they won't.
Speaker 3 (09:41):
Yeah, so let's talk about that, because you use the
term kick the can, and I've said that in my
office to people just about every meeting, as we're talking
about questions of well, what are we going to do
with this? If this changes? Yes, can the government fix it?
Of course, government can do whatever it wants. Is the
government going to be willing to That's the problem because,
like I said before, there's no way to fix this
without some kind of sacrifice being involved. So the person
(10:03):
who's gonna every change that comes through legally has a
person attached to it. Somebody drives the bill, somebody will
permanently have their name attached to an attempt to either
lower benefits on retirees or raise taxes on workers. Both
of those are obviously a sacrifice. So if I'm a
politician and I would like a chance at being reelected,
it is really, really, really super scary right now for
(10:25):
me to go out there and be that guy that says, hey,
you need to sacrifice. American people have not been great
at that over years. Maybe you go back to World
War Two and when the last time we were really
able to come together and make sacrifices for the better
of the whole. Ever since then, it's been a full
steam ahead, Let's make as much money as we can.
And I got yours, and that's kind of where I
got mine. That's kind of where we are right now.
(10:45):
And you know, so didn't think about this. We're not
the only country associated with this. What happened in France,
so President Macrone raised the national retirement age there from
sixty two to sixty four. And this is in twenty
twenty three. Millions of people took to the streets. This
was the jackets, transportation shut down, Trash piled up all
over in Paris. It was just chaos. It wasn't that
they were upset more about working two years, two more years.
(11:08):
They were just upset that the decision was made without
a parliamentary vote. So, in other words, France had the
same problem. Nobody pushed a bill forward or whatever they
call it in France to do this. The president basically
just said, you know what, this is broken and it's
not gonna get fixed unless we just tear the band
aid off and do it. And that's what he did,
which triggered a lot of social unrest. Though. So and
that was over age sixty four. Here, we have already
(11:30):
pushed that four retirement agents and states to sixty seven,
although you can sign up for so security a little
bit earlier than that. But anyway, I would anticipate a
lot of pushback when this happens, even if it's good
for us in the long run.
Speaker 1 (11:42):
Yeah, what we don't want to get into is we
do not want to get into the situation here in
the United States where the social security benefits system gets
changed in an emergency order, you know, via executive order.
To your point about France, I mean, we Congress has
to do their job, and the sooner they do it
do it the better.
Speaker 2 (12:01):
Yeah.
Speaker 1 (12:02):
So, all right, here's the all Worth advice. Longevity is
an opportunity. If your financial house is in order, working
longer can be a strategic asset too, not a burden.
The key here is to have a plan in place
and monitor it on an ongoing basis. Speaking of longevity,
we're going to break down some of the nuances of
(12:22):
long term care insurance that'd even savvy investors often miss.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC the talk station.
Speaker 2 (12:34):
They be rich, we call them every day millionaire.
Speaker 1 (12:37):
Every day listen to Dave Ramsey.
Speaker 4 (12:40):
They typically say one of the things that turned their
life around was when they started looking at purchasing something rich.
People ask how much broke people and I've been both
brother okay broke? People ask how much down and how
much a month?
Speaker 3 (12:57):
Tonight at seven oh six started asking how on fifty
five DRZ talkstation.
Speaker 5 (13:04):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 1 (13:23):
You're listening to Simply Money, presented by all Worth Financial
on Bob spon Seller along with Brian James. If you
can't listen to Simply Money every night, subscribe and get
our daily podcast. You can listen the following morning during
your commute or at the gym or whatever else you
do in the evenings where you might want a little
bit of financial advice, just search Simply Money on the
iHeart app or wherever you find your podcasts. Straight Ahead
(13:46):
at six forty three, it's our ever popular Ask the
Advisors segment, where nuanced advice meets real life wealth decisions.
We talk a lot about risk in retirement, market risk, inflation,
risk taxes, but there's one that often flies under the radar,
the cost of needing long term care. And just because
(14:08):
you might have looked into insurance in the past, or
might even have a policy that's fifteen twenty years old,
that doesn't mean you understand what you're really getting or
what you actually own today. Let's jump into this topic, Brian,
because it is coming up more and more and more.
I don't know about you, but I'm running into this
(14:28):
often now with folks in their mid to late eighties
and and their children.
Speaker 2 (14:34):
It's an important topic to cover.
Speaker 3 (14:36):
Yea and especially earlier in retirement. This doesn't mean you
should rush out and buy long term caricters because we're
talking about it, but there are a lot of topics
out there that sometimes we just need to plan a
seed and make sure that the basics are there and
we start thinking about it so that when the time
actually comes, it won't be the first time you've started
learning about these kinds of things. So and really speaking
to those of you who might be in that kind
of weird middle zone where you too much money to
(14:57):
qualify for Medicaid, which is that's the that's in the
headlines a lot lately. That's what we provide for people
who don't have a lot of resources to cover their healthcare,
but at the same time also not wealthy enough to
self ensure, meaning you've just got enough to pay for
whatever comes down the pike. And so that is where
that middle zone there. That's where long term care insurance
can make some sense. But there's some things that people
(15:18):
often miss. That's what we want to talk about today.
First off, it's not just nursing homes. We instantly think,
as soon as I'm thinking long term care, that's a
nursing home. Well that's yes, that's of course part of it.
But a lot of policies actually cover in home care.
As matter of fact, the insurance companies prefer it because
in the long run it's cheaper. People are happier and
healthier when they're in their own environments, and so you know,
sending a nurse or somebody there to kind of help
(15:39):
them through the day can be a lot a lot
better for everybody all around. Also, assisted living moving into
a facility that you're still pretty much independent, but at
the same time there's medical staff on site. There even
adult daycare somewhere you would go once a day and
come home at night. So if your goal is to
stay in your home longer, long term care insurance can
cover those things if you pick the right house.
Speaker 1 (16:01):
All right, I want to jump in with a couple
of things here. You talked about folks that are in
that middle zone, and Brian, you know, this is the
unfortunate situation that I find, you know, in doing retirement
planning for well over thirty years now, you've got the
folks that you know they're in danger or running out
of money, and and they're they're the ones that are
in danger of having to need to qualify for Medicaid.
(16:23):
And then you've got the folks that have way more
than enough money to self ensure, they're not worried about
this cost because if they need long term care coverage,
their lifestyle economically really isn't going to change in terms
of how much money is spent, you know, every month.
It's those folks in the middle, and that's where things
get challenging because if folks are just trying to get
(16:45):
enough money saved to retire, and their retirement income need
or want is about half of what it would be
if one of the two spouses goes on any kind
of long term care situation. That's the challenge because you
can make people borderline insurance poor by having a buy
long term care insurance. And there's the conundrum, what happens
(17:08):
if you don't get it, you know, in the worst
case scenario happens.
Speaker 2 (17:11):
That's where it's really critical.
Speaker 1 (17:14):
To sit out and look at the pros and cons
of even doing insurance the other thing, you know, and
I'm finding this. I have found this for the last
ten fifteen years, where I've had clients actually use this
stuff or need some type of care.
Speaker 2 (17:28):
I mean, the claims the claims data.
Speaker 1 (17:30):
Bears this app well over eighty percent of all claims
for long term care coverage or for in home care.
People want to stay in their home, and understandably so,
so remember that when you're looking at this stuff, everybody
wants to stay in their home if possible. It's about
getting the right type of assistance at the right price
(17:53):
to make sure staying in your home is economically feasible,
and most importantly, keeping people in that process and not
burning out or overburdening loved ones. So we've got some
assistance coming in.
Speaker 3 (18:07):
Yeah, So let's talk about some of the things that
do trip people up when we're looking at what our
solutions might be for this. So, first off, Medicare does
not cover it. There's Medicaid, which is which will cover
because that assumes you really don't have enough resources to
support yourself. That's what Medicaid is, or the dagen Medicare
does not cover it. So I want to say that
a couple of times Medicare does not cover long term care.
(18:27):
So it might cover like a rehab stay. It'll give
you thirty days after some kind of major medical procedure,
but that is limited and it is temporary, so you
can't rely on the government for that. Premiums do go
up even after you buy. You know, I think back
to thirty years ago when I believe it was General
Electric was a last or maybe it John Handtock. It
don't matter, It doesn't matter anymore. But anyway, somebody was
(18:48):
so proud of the fact that they had never ever
ever raised their premiums. That was in the history of
the company, and that was their big marketing tagline. Well
then all of a sudden they realized that they too
had missed priced the risk and weren't able to cover
the things that they had taken on.
Speaker 1 (19:00):
So these General Worth policies, yeah, these gener Worth policies.
Speaker 2 (19:04):
And this is no slam on General Electric.
Speaker 1 (19:06):
I mean they, I think wisely divested themselves be again.
Speaker 3 (19:09):
And need it so nobody remembers that Genworth is General Electric.
Speaker 1 (19:12):
But Brian, I'm having people every two to four years
or getting these letters in the mail saying, hey, if
you want to keep what you have, great, but the
premiums are going up fifteen to twenty percent. I mean,
this is happening, and I know a lot of our
listeners out there have experienced this happening.
Speaker 2 (19:28):
It's real.
Speaker 1 (19:29):
And because twenty five thirty years ago, when these policies
first came out, there was not a lot of underwriting
history on these things, and they were too inexpensively priced
based on the claims data.
Speaker 2 (19:41):
So you know, it's.
Speaker 1 (19:42):
Dollars in dollars out from an insurance company standpoint, they
got to make a little bit of profit. But if
they pay way more out in claims than they're taking
in in premiums, they obviously go out of business and
then nobody gets their their benefits.
Speaker 2 (19:54):
So that's a real situation that has been happening to people.
I didn't mean to interrupt.
Speaker 3 (20:00):
Okay, So and this is something to look at. Now
if you wait, you might not qualify. So early sixties,
even late fifties, that's the good window there. There are
policies out there that will let you share benefits with
a spouse. You can pay with hell savings accounts. And
there's also something called a hybrid policy that will offer
a death benefit. There's so lots of moving parts to
look at there.
Speaker 2 (20:17):
Here's the all Worth advice.
Speaker 1 (20:18):
Long term care insurance is more complicated, but it's also
more flexible than most people realize. Understand the fine print.
Now get out in front of this so that you're
not caught off guard later next why the next few
years could present a once in a generation opportunity to
keep more of what you've worked hard and earned. You're
(20:38):
listening to Simply Money, presented by all Worth Financial on
fifty five KRC, the talk station.
Speaker 3 (20:44):
Every hour direct information.
Speaker 1 (20:46):
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Is something in our city, happening in our hometown? Check
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Speaker 3 (20:53):
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Speaker 1 (21:07):
You're listening to Simple Money present by all Worth Financial.
I'm Bob Sponsorer along with Brian James, Markets fluctuate and
tax laws of all investors are navigating a financial environment
that demands more foresight and examination than ever for those
with significant wealth. These shifts don't just impact annual tax filings.
(21:29):
They carry long term implications for investment outcomes, retirement readiness,
and legacy planning. Brian, let's get into some of the
complexities here. What's going on and what should we be
thinking about as we juggle all these balls in the
air about tax efficiency, investment returns, and making sure we
don't run out of money.
Speaker 2 (21:49):
In retirement.
Speaker 3 (21:50):
Well, that's what it's all about, isn't it, Bob, Just
not letting the bucket run dry. So yeah, lots of
moving parts. People have to think about that they didn't
used to. Because you're a higher earner, there's just more
moving parts to all this. You often hit hit your
deductions and your credit limits faster. And the capital gains
income tax management. The capital gain is one of the
biggest drivers of tax exposure. If I own, if I
(22:12):
bought something for ten and I sold it for twenty,
that means I made ten bucks a share on it
or whatever that is. That means the I r S
gets a chunk of it too, in the form of
capital gains.
Speaker 2 (22:20):
And a lot of.
Speaker 3 (22:20):
Cases, if I'm a you know, if I'm a high earner,
then i may be in a situation where I've now
got a concentrated stock position. This is where we know
locally it's a lot of Procter and Gamble people and
Kroger people who have been there, you know, spend twenty
thirty years at those large fortune five hundred companies. A
lot of the compensation is made up of stock grants
and or options. That means you end it with the
giant pile of it. And there's risk in that we
(22:42):
don't have to look too far and that there's nothing
wrong with Proctor, Gamble, Kroger and all that, But there
are plenty of Life is littered with lots of companies
with terrifying stories about how they evaporated, even if it's
in the short term. I was just having a conversation
with somebody last week who's in this exact situation. Procter
and Gamble is, you know, goes through these waves of
laying off people and that kind of thing. So everybody
has to start thinking about what they want to do
(23:03):
and what winds up happening. Is they all remember the
Dirk Yager years from the early two thousand when Dirk
Yager was installed as the CEO. He came up with
his Millennium two thousand plan or whatever it was, and
the market insta hated it and took away about fifty
percent of the value of Procter and Gamble in a
matter of about six weeks. And that can happen. You know,
if you make the stock market mad, the hert is
(23:24):
going to stampede and take your retirement with it. Procter
and gambled itself obviously is in fine condition today and
it came back roaring and better than ever. But if
you were somebody who wanted to retire from P ANDNG
in two thousand and one, two thousand and two when
that happened, that probably changed your life because you had
so much tied up. And again that has nothing to
do with P ANDNG being a bad company, But the
market can smack anything around in the relatively short term.
Speaker 1 (23:47):
Yeah, And that's the unfortunate thing. And we're not calling
a doomsday scenario for Procter and Gamble, a great company,
well run company. But the unfortunate thing, Brian, is these
kind of what i'll call black Swan type of events.
They usually only happen about twenty every twenty to twenty
five years. And the generation that experienced that is way past,
(24:08):
you know, gone and retired, and the folks that are
retiring today don't remember that those days twenty to twenty
five years ago. And history doesn't always repeat itself, but
it often rhymes. And that's where you got to stay,
you know, you got to remember too much of any
one thing can blow up on you, no matter how
well managed or how well intentioned people are and that
(24:29):
get you know, there's ways to get around this. As
far as this over concentration thing, you can stage it
in over time. You can put collar strategies in place,
you can direct index. There's a lot of things you
can do to you know, responsibly and tax efficiently, unwind
a concentrated a concentrated position in anyone's stock and to
(24:51):
say nothing of some of the charitable you know, opportunities
out there with donor advised funds, charitable remainder trust.
Speaker 2 (24:57):
There's a lot of things you can do out there.
Speaker 1 (25:00):
Let's get into a state in gift tax exemption planning.
I mean, I know, with the the new bill that
just got passed, that took a lot of uncertainty out
of there as far as you know, making permanent the
large unified credit which will now be up to you
almost fifteen million.
Speaker 2 (25:15):
Dollars per person.
Speaker 1 (25:17):
But there are some things that you got to plan around,
you know, in that regard to right, Brian, you.
Speaker 3 (25:21):
Know, one of the most impactful provisions for these high
network families, that is the preservation of the pretty high
historically speaking, the relatively high federal estate and gift tax exemptions.
Those are going to increase to fifteen million dollars per person.
In other words, what I'm saying to you out there,
dear listener, is that don't worry about a state taxes
unless you yourself individually own more than fifteen million dollars
(25:43):
worth of assets. I mean thirty million dollars for a
for a married couple, if titled properly. That's its own
radio segment. We'll leave that there for now. But state
taxes are not an issue. There was the threat that
it might come back where this all comes from. As
President George Bush the second a long time ago started
the process of increasing how much was being passed through,
and I believe it would used to be six hundred
(26:05):
thousand dollars. Anything above that, which is not that hard
of a level to get to anymore, anything above that
was deemed with the state taxes. But now that number
is fifteen million. So state taxes are not a thing anymore.
That could have gone away, But those were extended and
actually increased as a result of the Big beautiful Bill
and so forth. So other things out there. In your
vocable life insurance trust, that's a way to keep life
(26:26):
insurance proceeds out of your estate and you can also
apply valuation discounts. If you've got a business or real
estate interest, there are ways that the tax laws will
allow you to affect that valuation to make it a
little more different than here's what it is. If I
if I sold it on the open market, it's worth this.
But there are different things you can take advantage of
the tax code, if you'll understand all that properly.
Speaker 1 (26:47):
All right, those are some of the kind of what
off unique strategies out there. But I want to talk
about what most people should be doing, and Brian, what
we do every day and we run into this situation
with almost everybody we work with, and that's doing just
good old proactive cash flow and tax planning.
Speaker 2 (27:04):
What do I mean by that?
Speaker 1 (27:06):
During that window between when you retire and when required
minimum distributions kick in, examine whether, if or when and
how much ROTH conversions makes sense for you, factoring in
how that's going to impact your overall tax strategy. You
dovetail that with your social security claiming strategy. How to
take some capital gains. There's a lot of things you
(27:28):
can do there if you do some planning and get
with a good CPA financial advisor or in the best
case scenario, a combination of both of them working together.
Here's the all Worth advice. A flexible strategy that aligns
with your goals and adapts to policy changes can help
reduce risk, boost after tax returns, and preserve more of
(27:49):
your wealth. Coming up next, we are tackling the real
questions that listeners are asking, maybe even ones you've been
wondering about yourself. You're listening to Simply Money, presented by
all Worth Financial on fifty five KRC, the talk station.
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I always tune in to stay updated for everyone, and
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Speaker 1 (28:46):
You're listening to Simply Money, present up by all Worth financial.
I'm Bob Sponsller along with Brian James. Do you have
a financial question you'd like for us to answer. There's
a red button you can click while you're listening to
the show right there on the iHeart app. Simply record
your question uestion and it will come straight to us.
Speaking of questions, Brian, let's hear from Brad and mount
lookoup in Mountains.
Speaker 3 (29:07):
Please explain what the survivor penalty is? Yeah, Brad, great question.
So that's that's something that has come up that comes
up all the time. We're talking about taxes and what
happens after you lose a spouse and all of a
sudden you have to switch from married set aside all
the emotional that goes of that, you also have to
insult injury switch from married filing jointly to single. So
(29:29):
the reason this is the thing is because the income
thresholds for the tax brackets are much lower for single filers.
Right when I hear the word lower and taxes, I
usually get a good feeling, but this is a bad one.
Speaker 5 (29:38):
Me.
Speaker 3 (29:38):
What that means is that if you hit the thresholds
sooner because they're lower, that meets your taxes go up. Quicker,
so the survivor can get pushed into a high tax bracket.
You also lose the one standard deduction, and so that
the standard deduction in twenty twenty five is around fourteen
six versus twenty nine to two for joint filers over
sixty five. That's the problem. Single person may get taxed
a little more on the Social Security kicks in a
(30:00):
little sooner because of again, because of the way all
this math works. So again, this is really the way
to avoid this. You can't change the tax brackets, they
are what they are, but control what you can control.
This is where roth conversions come in. If you have
a significant pile of money and a pre tax IRA,
you might look at paying taxes on then now pulling
that taxation forward so that your rmds will be reduced.
(30:22):
You can also, if it's a concern of draining your
own estate and therefore taking it away from your kids
life insurance, might make some sense to create an estate
at your death to offset some of that. And Joe,
just make sure you this all starts with what we
always say, Bob. This all starts with knowing where you
are in the first place. So understand where your situation
is now, then you can look at what if Heaven
forbid I lose my spouse. Let's move on to Joe
(30:43):
and Blue Ash, who has a question about, Hey, go
figure it roth conversion.
Speaker 1 (30:46):
How do you balance roth conversions with staying under Medicare
premium cliffs? Great question, Joe. Let's talk about what these
Medicare premium cliffs are. There's something called IRMA, and I'm
not going to get into it's a big long acronym,
but if basically means what Joe's asking about. If you
have too much earned income, you pay more in premium
on your Medicare. So what we do, what it sits
(31:09):
with is what we talk about all the time, developing
an income strategy and along with that a Wroth conversion strategy.
So when you layer in things like a potential Wroth
conversion along with maybe pension, social Security, other income you've
got coming in, we want to make sure we walk
right up to that line where you take advantage of
(31:31):
the great opportunities that Wroth conversions give you, but don't
cross over that line from an income standpoint and start
to irrevocably drive up your Medicare premiums. There's some great
there are some great tools out there that help us
do that. We sit down and do that with every client.
I know a lot of good CPAs are doing that
as well. But again it comes down to the difference
(31:53):
between tax preparation, which is what eighty to ninety percent
of people just do. They just mail in all their
stuff and wait for the answer to come back from
their CPA versus proactive tax planning where you sit down
and run some actual scenarios on if I do this,
what happens over here, and you balance it out and
(32:13):
you maximize your income strategy.
Speaker 2 (32:15):
All right, let's hear from Laura and Villa Hills.
Speaker 3 (32:18):
I've got a concentrated stock position from a former employer.
What's the best way to onwine that without triggering a
huge tax bill. Well, congratulations, Laura, this is a good
problem to have. Concentrated stock means just that I got
a lot of my networth tied up in a stock
that is mostly because of an employment or perhaps you
own the company or whatever. But so then the risk there.
(32:38):
If it's a concentrated stock position, that usually implies that
the thing did pretty well, So congratulations, it must have
grown a lot. But that also means that there's usually
capital gains in the mix here, so that's usually the concern.
If it is a position that is not inside of
a retirement plan, not an IRA, not a four oh
one K, nothing like that, then it's exposed to capital
gains taxes, which actually are slightly more favorable than income taxes.
(33:00):
But taxes are still taxes. So what do we do
about that? Well, the first thing I would look at
is if you are some of the easier things to handle,
If you are already charitably inclined, then you might look
at if you write checks to a church or you know,
some five oh one C three type organization every single year,
then first off, you may have lost your deduction on
that a few years ago twenty seventeen when the Tax
(33:20):
Cuts and Jobs Act increased the standard deduction and therefore
losing the deduction or just getting it for free basically.
So that's a case where you might donate some of
that stock, just donate the shares. If you do that
donation of appreciated shares, then you will you're passing the
gain on to an entity that doesn't pay taxes. Anyway,
you get the deduction for the full dollar amount whatever
(33:41):
it was worth. A day you donated it that five
oh one C three will turn around and immediately sell
it and you use it for whatever their purposes are.
They will not pay to capital gains. So as matter
of fact, I run across people all the time that
are writing checks to these organizations, which to me is
a waste of everybody's you know, tax dollars, because they
could simply give the share is five 'LLENTC three gets
the same amount of money and no sacrifice, but really
(34:03):
by anybody. But if that's not what you have in mind,
then you're going to be looking at something called an
exchange fund or a swap fund. This is where if
I have a big pile of PNG, I can band
together with people who have a bunch of Kroger, or
a bunch of IBM, or a bunch of Apple and Video,
whatever it is. We all throw our shares into a pile,
and then we each take a proportionate share of the
resulting pile of stuff. This is not a sale. It's
(34:26):
not nearly as simply as I'm making it right now.
It's not a sale, so it doesn't trigger taxes. But
I do have now I have a representation of a
lot of different companies. It's a way to spread that
risk out.
Speaker 2 (34:34):
So those are two.
Speaker 3 (34:35):
You're either charitab being inclined or you want to spread
out of diversification, and sometimes both of those can help.
Bill and Mason is retired and has got some questions
about rm ds.
Speaker 2 (34:44):
My wife and I are retired and we don't need
our rm vs to live on.
Speaker 3 (34:48):
What's the smartest options for putting our money to work?
Speaker 1 (34:52):
Well, Bill, I obviously don't know whether you're retired and
not yes yet at RMD age or whether you're already
at RMD So the answer is slightly different depending on
what situation you're in.
Speaker 2 (35:04):
So let's briefly cover both.
Speaker 1 (35:06):
If you're tired and not yet at that RMD age,
there's where the opportunity is and a big one. You know,
you just retired, your income is lower, and you've got
an opportunity to do these Wroth conversions that we've been
talking about. You know, you sit down and sketch that
out and try to get as much money moved into
wroth IRA's at the lowest possible tax rate. You can.
Speaker 2 (35:28):
Wonderful strategy there.
Speaker 1 (35:30):
If you're already at r m D age and I
run into this a lot with folks that are in
their late seventies and are still writing checks to their church.
If you're charitably inclined, you tie to your church. You
give other money to other you know, ministries or other charities.
A lot of people are still making cash gifts where
they could be taking IRA money beginning at age seventy
(35:52):
and a half and diverting that IRA money directly to charity.
And if you do that, the amount of that charitable
gift does not even hit your ten forty and is
not even counted as taxable income. You don't get a
deduction for that gift. But it's even better, the rmd
does not hit your tax returns taxable income. So that's
(36:14):
those are two scenarios you can look at. And then
if worst case scenario, if you don't need the rm ds,
you've maxed out what you want to give to charity,
you just convert whatever is left in those rmds over
to a taxable investment account. Because you brought up keeping
that money you know, working for you and putting it
to work, put it in a taxable, tax efficient brokerage
(36:35):
fund and let it grow long term for your kids
and grand kids. Coming up next why you could be
eating your retirement, literally eating it one mimosa brunch at
a time. You're listening to Simply Money, presented by all
Worth Financial on fifty five KRC the talk station.
Speaker 2 (36:51):
We've been taking you back to school all summer. It
sounds like a high school term paper.
Speaker 3 (36:57):
They got a little more.
Speaker 1 (36:58):
Fifty five KRC the station liable information and of course
not just one sided view.
Speaker 2 (37:04):
News that affects you at the top end to bottom
of the hour.
Speaker 3 (37:07):
Fifty five KRZ the talkstation.
Speaker 1 (37:15):
You're listening to Simply Money because I have by all
With Financial on Bob Spon seller.
Speaker 2 (37:18):
Along with Brian James. So get this Brian.
Speaker 1 (37:21):
MarketWatch recently published an article that got our attention. If
a couple spends one hundred dollars a day eating out,
or just fifty dollars a person over the course of
forty years, which is you know, which is I guess
a long but not out of the question retirement shold.
Now they'll have spent nearly two million dollars just on
(37:44):
restaurant meals uh, something to keep an eye on here.
Two million dollars is a lot of money, Brian, and
that can make or break the viability of one's retirement plan.
Speaker 3 (37:55):
Yeah, and that that one hundred bucks a day eating out.
That used to sound like a lot. Remember when one
hundred dollar meal that you were celebrating somebody's birthday or
graduation or whatever. It was a big deal. But now
you know, if I'm eating lunch and dinner out there,
and I'm a married couple, well then that's fifty bucks apiece.
That's twenty five bucks apiece per meal. Well, that's that's
lunch at Skyline, love my skyline. But that's where that's
about where they are now. And so again that all
(38:18):
sneaks up, and that's two million dollars, right, this is
the problem with the snowball and so forth. That's before
you factor in the tip if that's a thing, and
maybe that extra glass of wine and all that stuff.
You know, where there's two million dollars, that's a nest
egg for a lot of people. So again, one hundred
bucks a day eating out over forty years is going
to add up a lot. So you can apply this
to a lot of different things, but different expenses that
(38:39):
maybe you can seem to be fairly innocuous but end
up sneaking up on us. So if you've done the
right things and you built up a solid nestick, it's
probably not a major concern. It's more of an expensive hobby.
I think.
Speaker 1 (38:52):
Yeah, I think the key here, and we can make
fun of, you know, one hundred dollars skyline bill and
eating out and all that. But I think the point
we're trying to make here is is when you examine
your retirement budget, what you're actually going to spend or
want to spend. And what I what I always tell people, Brian,
is I don't need to know how much you spend
on a pack of gum or something like that, but
(39:15):
numbers that start to add up to, you know, in
the hundreds of dollars per month, it's worth taking a
look at, especially if you're on the margins in the
area being able to viably retire, and say, hey, are
there things that we can trim back on just a
little bit without ruining our life and taking all the
fun out of our life as opposed to just letting
(39:37):
it rip, do whatever we want and hoping it.
Speaker 2 (39:39):
Works out in the end. That's really what we're talking
about here, Brian.
Speaker 3 (39:43):
Yeah, and again this is not at all about stop
doing you know, I always tell my clients everybody comes
in wanting to build a retirement plan, and most people
who have built something are relatively frugal people to begin with.
So they'll walk in and they'll say, we're gonna build
a vestable garden in the backyard. We're gonna eat out
of that, and we're never gonna leave the house. And
I always say, no, you're not. If you were going
to do that, you'd have done it already. That sounds awful,
and it sounds like a terrible retirement. I just keep
(40:04):
working if that's your plan. So let's not start there.
Let's figure out what you do now. If eating out
is a social thing, if that's an important thing, that's
important stuff. It is not. We're not on this planets
to stare at a growing pile of money. We are
here to enjoy each other's company and help out where
we can, and so on and so forth. So understand
what your life is like and then build your financial
plan around that.
Speaker 1 (40:24):
Yeah, if you really love eating out and you want
to keep doing that, great, Maybe just trim back from
having four paid movie subscriptions or streaming services to maybe two.
There's always a way to skin the cat. Here here's
the all Worth advice. You've saved well don't. You don't
need to skip the stake, just maybe skip the third course.
Thanks for listening. You've been listening to Simply Money, presented
(40:46):
by all Worth Financial on fifty five KRC, The Talk Station.
Speaker 2 (40:51):
News when it Happens, Breaking news tonight. We are coming
to you live news when you need it. You're going
to want to listen to this news expected.
Speaker 1 (41:01):
We've never quite seen anything like this, cheaping you up
to date on what's happening.
Speaker 3 (41:05):
This is gonna be quite in the event today.
Speaker 1 (41:07):
And you're gonna want to make sure you leave the
house extra early.
Speaker 2 (41:09):
Globally, nationally, everywhere in between.
Speaker 5 (41:12):
I don't know what I would do without it.
Speaker 3 (41:14):
Fifty five KRC, The Talk Station,
Simply Money News
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