August 19, 2025 • 40 mins
On today’s episode of Simply Money presented by Allworth Financial, Bob, Brian and Allworth Chief Investment Officer Andy Stout explain what investors can learn from Warren Buffett’s latest buy in UnitedHealth. They also break down strong retail sales numbers, what they say about consumer spending, and the potential inflationary hit from new semiconductor tariffs — plus how Intel’s massive Columbus project fits in. Finally, Bob and Brian tackle a new SEC ruling that shuts the door on ETF share classes of mutual funds and share what high-net-worth investors should be doing now to keep portfolios tax-efficient
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:09):
Tonight, one man can move an entire market and heads
up for those looking for a tax efficient portfolio and more.
You're listening to Simply Money, presented by all Worth Financial
on Bob's Fund Seller along with Brian James, joined tonight
by our all Worst Chief investment Officer.
Speaker 2 (00:28):
Andy Stout.
Speaker 1 (00:29):
And speaking of Andy, we often talk about the fact
that just a couple of companies can move the markets
at times, and specifically a couple of people who run
these companies or invest in these companies. And I could
think of no two bigger behemoths on Wall Street than
Warren Buffett and our own Andy Stout. Andy manages more
(00:51):
than thirty billion dollars of investments from right here in Cincinnati.
For all Worth, Andy, let's talk about what Warren Buffett
did late last week and how it led the Dow
Jones industrial lavage average to a record high.
Speaker 3 (01:05):
Yeah, we're seeing market highs on a pretty regular basis.
So it's a nice thing for investors if you happen
to be checking your if you happen to be checking
your four ow K every day, which we would argue
you probably shouldn't be checking every day, but it's it's
nice when we see these record highs, especially after the
volatility we had just a few months ago, and when
we look at what Warren Buffett did, and just from
(01:27):
just an announcement standpoint, he talked about a stake in
the United Health, which I don't know if you're aware
of this or not, but United Health has been getting
pounded lately.
Speaker 2 (01:36):
Uh. But when you have the Oracle of Omaha coming in.
Speaker 3 (01:40):
Saying, yeah, I have a sizable or a sizable but
I have a stake in the company, it tends to
give the broad market some confidence in there, because I mean,
he's the Oracle of Omaha. Now you could say he's
one of the most legendary investors of all time. You know,
he probably is right up there in the top five
(02:00):
of your most well known investors. And that really helped
him to give United Health a big boost, lifting stocks
and that saw, you know, really a lot of investors
having a good day.
Speaker 4 (02:15):
So yeah, I think one of the interesting things about
that they've got to bear in mind because you know,
everybody loves Warren Buffett and obviously he's one of the
most successful investors in the history of time, and so
I'm sure there's plenty of people out there who are
going who are wondering exactly what he sees in United Healthcare.
Speaker 2 (02:28):
He's a value investor. What he saw was.
Speaker 4 (02:30):
That it was was down about fifty percent when he
bought it in early August, and currently he's up about
ten to fifteen percent something like that, still down forty
percent for the year. But yeah, can you can you
talk a little bit about what what what he would
have seen in that? Why is that an important thing?
Speaker 3 (02:47):
Well, when you look at valuations like price to earnings ratio,
which tells you how much it cost to buy one
dollars worth of earnings from a stock when it gets
beaten down and it gets a lower or lower and lower,
that just tells you you're able to buy that one
dollar of earnings for a much cheaper amount than you
could have before. Now a lot of that you might
(03:10):
be thinking, well, the video has been doing so good,
but their PE ratio is you know through the roof,
same thing on some of these other mega tech stops.
And that's absolutely true. The thing to keep in mind, Brian,
it's also tied to what the expected earnings growth is.
So seeing a high PE ratio in one company isn't
necessarily the same as a high PE ratio on another company.
(03:31):
So if I had saw the PE ratio of Navidia
at the a United Health company, you know, that would
be really really concerning because United Health doesn't have the
same growth prospects that Navidia does. Now, you could easily
make an argument in the video's earnings are and valuations
are stretch And maybe maybe not what time will tell
(03:52):
on that one, but regardless, what Warren Buffett saw on
United Health was that there's definitely some value there because
you can get earnings from a pretty stable company. I
know they had a bit of a miss here a
couple of months ago, but when you look at where
they're at right now, I mean the investment thesis at
(04:12):
least that Warren Buffett sees and based on some of
the other things that a lot of people see out there,
you know they it still remains there.
Speaker 2 (04:21):
Yeah, Andy, I think this is just one example.
Speaker 1 (04:23):
I mean what what I think all three of us
have been talking about on this show now over the
last few weeks. I mean with the nasdac A record
highs and all this talk about AI and tech stocks,
you know, valuations can get a little ahead of themselves
at times and you forget about the rest of the
businesses and companies out there. And this is just one
example of the benefits from you know, buying low and
(04:44):
selling high sometimes and broadening out the diversification of your portfolio.
And Warren Buffett, I'm sure he did not buy United
Healthcare before it went down fifty percent, and there he
is jumping in and making a nice buy and moving
the stock.
Speaker 2 (04:59):
All right.
Speaker 1 (05:00):
While what Warren Buffett does is important, it's our spending
that makes up about seventy percent of gross domestic product.
Andy talk about the most recent resale retail sales report.
How's the consumer looking out there?
Speaker 3 (05:14):
You know, we saw a really good number last week
for the July retail sales where the headline number saw
a really positive spike at least on a month over
a month basis, gaining about half a percent and not easily,
well not easily, but that did top expectations for what
economists were looking for. They were they weren't looking for
(05:38):
something as strong as you know that, but you know
the reason that it was pretty much in a little
bit of a beat. I'll say, we also saw a
revision higher to the prior month, so it suggests that
we're starting at a starting the third quarter at a
much stronger footing than what economists have briefly thought. Now,
what really really matters from my perspective is that control
(06:00):
group retail sales or core retail sales.
Speaker 2 (06:02):
The thing about that is what it does.
Speaker 3 (06:04):
It excludes some very volatile areas like gasoline stations, food energy.
Speaker 2 (06:14):
And building materials.
Speaker 3 (06:15):
And what that showed and the reason I liked this,
by the way, Bob, is that it's a direct input
into that GDP calculation. And what we saw was that
also increased half a percent, and we also saw the
prior month revised higher. So it was really good start
for consumers out there on that broad picture. Now that
I will say, there was one i'll call a bit
of a concern, and that was the restaurant.
Speaker 2 (06:37):
And bar spending.
Speaker 3 (06:39):
What we saw there was an actual pullback, But I
also looking at the monthly data when this was released
last week, and it really was common to see a
negative month at restaurants and bars. When I say negative month,
I mean a decline compared to the prior month in
terms of total spending, but that could be followed by
a positive month. So there's lot of what I would
(07:00):
call a bit of a mean reversion. Over time, it
has still been trending higher, but it's not a commontacy.
One down month followed by an up month over the
past year. We've seen that three or four times, so
I'm not going to call this a trend by any
stretch of the imagination.
Speaker 2 (07:17):
But the big picture on.
Speaker 3 (07:19):
That retail sales was that the consumer is still spending
and as you knowed, that's about seventy percent of our economies.
Speaker 2 (07:24):
That's a really good thing.
Speaker 1 (07:26):
You're listening to Simple Money, presented by all Worth Financial
on Bob Sponseller along with Brian James, joined tonight by
our chief investment officer Andy Stout. Andy, it wouldn't be
a Monday update without a little talk about tariffs. We
see President Trump recently put out a declaration that semiconductor
tariffs could be coming soon.
Speaker 2 (07:46):
What's going on with that?
Speaker 3 (07:49):
Well, when I'm looking at what's going on from a
big picture, when it comes to you know, semi conductor.
Speaker 2 (07:54):
Tariffs or the overall.
Speaker 3 (07:58):
Trade environment, you know, it's fluid, it changes almost every day.
So when you see these headlines about semiconductor tariffs, you know,
possibly reaching three hundred percent. You know, it's certainly something
that makes you think, well, that can't be good, that
can't be good for prices. And when when you look
(08:19):
at this from from a big pick from an economic perspective,
you know, a lot of economists are estimating that the
average tarif rate might somewhere land when this is all
said and done, around eighteen percent. Now keep in mind,
when you go back to last year twenty twenty four,
our average tariff rate was around two point four percent,
(08:39):
So this is a material jumb then that's why you
see a lot of economists still thinking even though it
hasn't really happened. Yeah, but I mean we've saw in
the headlines last week where President Trump was talking about
the Goldman's sax economists as being completely wrong. But the
point is that a lot of these economists still see
inflation as a real risk from these terrorists because we
(09:00):
haven't really gotten to the point where we're seeing the
pass through rate from these tariffs hit the consumers. So
it hasn't happened yet, but it's still changing a lot.
Speaker 2 (09:10):
And you have to have the ability to enforce these traffs.
Speaker 3 (09:13):
So whether or not you see a three hundred percent
rate on tariffs for semiconductors happen or not happening, which
seems highly unlikely.
Speaker 2 (09:21):
By the way.
Speaker 3 (09:22):
The bigger picture is that it's very fluid, and when
you look at everything that's going on in the trade
and environment, you hear about deals and then you don't
know about the details of the deals. In the meantime,
you still have these terriff rates being applied out there,
and they're starting to be actually enforced now by the
(09:43):
ust R, the United States, the tariff or trade representatives.
That's being enforced now, and that's going to possibly have
some sort of inflation in your impulse and that's something
that the Federal Reserve is watching very closely.
Speaker 2 (09:58):
Yeah, that's interesting.
Speaker 4 (10:00):
One thing I've been paying attention to is we've almost
kind of forgotten about it, but there are two massive
intel plants going in somewhere southeast of Columbus that are
under construction, and that those were kicked off when it
became pretty clear that our future leadership, this is years ago,
was going to be focusing for more onshore semiconductor production
(10:21):
for really for national security reasons as well, in addition
to the idea that we really like more manufacturing at
home that got slowed down. It was supposed to open
this year, I believe twenty twenty five. It got slowed
down because Intel was going through some things. I wonder,
maybe I'm putting on the spot a little bit, but
I'm just curious if the threats of these semiconductor tariffs
are going to change Intel's decision to slow that down,
(10:43):
which they did because they want to do their own
financial restructure. But all of a sudden, it's going to
get more expensive, you know, to bring them on shore
from elsewhere. I wonder if that will drive things. Have
you heard anything new on that front.
Speaker 3 (10:54):
Well, it's in New Albany, Ohios, where Intel is looking
to build out, which is northeast a little bit northeast
of Columbus. And when you look at the construction, you know,
I have heard something about a few things about slowing
construction in Ohio when it comes to that. So I
(11:14):
think it's it's definitely behind schedule. I mean, it's like
a twenty eight billion dollar, you know, project or something
like that, and you know it is behind schedule and
it is slowing a bit. I don't think it's going
to stop or anything like that. But you know, I
think what you're seeing is from a bigger picture perspective,
is there's a lot of uncertainty out there. And when
you have this amount of uncertainty, and we actually saw
(11:35):
this in a survey last week from small businesses regarding
high levels of uncertainty, they delay these big strategic decisions
because they have this this real world optionality to decide
whether or not to wait or not wait, and oftentimes
is not. Oftentimes waiting is going to be more advantageous
because you don't know all the possible paths that may
(11:57):
come to fruition as just the economy evolves.
Speaker 1 (12:03):
All right, thanks as always for joining us tonight, Andy,
Could one of the sneakiest tax advantages in your portfolio
soon disappear? We'll talk about a new ruling from the
SEC coming up next. You're listening to Simply Money, presented
by all Worth Financial on fifty five KRC the Talk station.
Speaker 5 (12:20):
Allworth 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 (12:40):
You're listening to Simply Money presented by all Worth Financial
on Bobs.
Speaker 2 (12:43):
Fund Seller along with Brian James.
Speaker 1 (12:46):
Is there a right time to discuss the inheritance you
plan to leave your children and other family members. It's
one of the questions you actually asked us, and we
will answer it all straight ahead at six point forty three.
If you're an investor who likes to keep your tax
bill and check, and let's be honest, who doesn't, you
may have already benefited from one of the most tax
efficient tools on Wall Street, the exchange traded fund better
(13:10):
known as the ETF. But now there could be a
change to this strategy. Brian, Let's talk about what's currently
happening here, because this could impact some folks that own
mutual funds now and have owned them for years, or
also folks who had expected some changes coming down the
pike that aren't gonna happen.
Speaker 4 (13:29):
Yeah, let's define some terms first, Bob so so, Mutual
funds are one investment that own a bunch of different
things stocks or bonds underneath them.
Speaker 2 (13:36):
An ETF is the same thing.
Speaker 4 (13:37):
It stands for exchange traded fund, not to be confused
with EFT electronic funds transfer to very different and not
related to each other thing.
Speaker 2 (13:45):
So we're talking about ETFs.
Speaker 4 (13:47):
So mutual funds companies nowadays offer ETF share classes of
their existing funds. What it does, and ETF trades all
day every day, unlike a mutual fund, which is only
priced at the end of the day around four when
we know what the entire what the rest of the
market did those individual securities that make up that mutual fund.
So an ETF now, due to technology over the last
(14:07):
basically twenty thirty years, it's a lot more efficient to
be able to pull all those together and create something
that has the diversification benefits of a mutual fund, but
trades like a stock.
Speaker 2 (14:17):
That's the whole point.
Speaker 4 (14:18):
So Vanguard kind of pioneered this years ago, and investors
can choose between a traditional.
Speaker 2 (14:22):
Mutual fund or a tax efficient ETF.
Speaker 4 (14:25):
They're managed under the same umbrella, same strategy, same same managers,
just a different profile for taxes. What this really means
is that if you own an if you own a
mutual fund le he get an extreme example, if you
own a mutual fund and it has had Apple since
the beginning of time, then there is a massive capital
gain built up into that particular portion of the portfolio.
Speaker 2 (14:45):
If they choose to sell.
Speaker 4 (14:46):
Apple, then you even though you bought it last week,
you may have to pay taxes. You will have to
pay taxes on the entire gain. Going back to the
beginning of that purchase. For a mutual fund, in an ETF,
it's different. You own the shares of Apple inside that
fund the day that you or ETF was created, the
day that you bought it.
Speaker 2 (15:02):
That's the big difference.
Speaker 1 (15:03):
So what Vanguard did you know, Brian, is they got
out in front of this recognizing that people wanted some
more tax efficiency because folks you know that have owned
these shares for years and decades, you know, as a reminder,
and I think a lot of our listeners own this
stuff and they know this. They are painfully aware that
every year, sometime between October and the beginning of December,
(15:26):
you get a capital gains distribution, whether you sold anything
or not, you know, based on the point you just made.
It's all, you know, we mutually own these shares of stocks,
and everybody mutually participates in the tax exposure irrespective.
Speaker 2 (15:42):
Of how long you own the fund.
Speaker 1 (15:44):
And then Vanguard tried to get out in front of
this and mitigate it a little bit. Back in twenty twenty,
they actually had a patented approach saying we're gonna introduce
a new share class of our mutual fund and with
the tax treatment of ETFs, and but that pat expired
in twenty twenty three. Brian and I think a lot
of mutual fund companies were sitting there ready to go
(16:06):
here saying, hey, we're going to do exactly what Vanguard
has done, and for good reason. But you know, along
came the SEC with a final ruling and explain what
their ruling is.
Speaker 2 (16:17):
Yeah, So the SEC just ruled.
Speaker 4 (16:19):
That they're no longer going to approve ETF share classes
for mutual funds. So this is kind of big news
if you've been using ETFs as you as you're as
part of your strategy. The reason they're doing this, Bob,
is they're worried about some conflicts that they can harm
investors if a mutual fund exists in two worlds, the
ETF world and the more traditional mutual fund share class
cross subsidiation of costs. That means that cash based mutual
(16:41):
fund shareholders might eat trading costs that the ETF holders
benefit from just because of the way those two structures work.
In other words, if a mutual fund has to make
a major change, then that itself can cause activity that's
a major swing in the market of an individual security position,
and it would affect the et F share class differently
than the mutual fund even though they're both pursuing the
(17:03):
same thing. There's also a bit of drag on cash.
They're having to manage cash in both both those portfolios
to handle in kind redemptions, and that kind of forces
funds they have extra liquidity and putting this stuff in
two worlds will increase that risk for investors too. Also,
just voting and just overall fee disparities between the two
different that anyway, those are all the reasons that the
(17:23):
SEC says we can't do any of these. More so,
what's really changing. How are we going to see this?
Mutual funds can trigger capital gains when they move money around,
and again, like you just said, Bob, we need to
make sure that all this activity is beneficial to clients.
That's what the SEC is looking at.
Speaker 1 (17:39):
You're listening to simply money presented by all Worth Financial.
I'm Bob Sponseller along with Brian James Brian, let's break
this down, you know, just into Layman's terms. Here, what
should clients be doing in light of all this upcoming
news or in this case non news, and you know,
walk us through the things that we're constantly doing with
our clients to make sure that they're poor folio is
(18:00):
as tax efficient as possible, whether they own some mutual
funds that they've owned for twenty thirty forty years, or
whether they're completely in the ETF world.
Speaker 4 (18:11):
Yeah, so that's a thing we switched to ETFs a
long time ago for all the reasons we're talking about.
They're just a more efficient way to gain the to
gain the benefit of diversification, especially when we're talking we're
really talking about taxable accounts. When we talk about that,
it doesn't matter. The tax efficiency is irrelevant in an
IRA or a roth IRA because those are already sheltered
by definition. Doesn't matter what you do inside of it,
(18:32):
your taxes are not impacted in that tax here. So
what this really means for you if if you already own,
for say, a Vanguard ETF that is part that you
know as part of a mutual fund share class, then
nothing's going to change.
Speaker 2 (18:42):
Already grandfathered in that situation already exists.
Speaker 4 (18:45):
It's newer mutual fund companies that would very much like
to get their old funds into a new new chassis,
if you will. That's not going to be possible. If
you have a large taxable brokerage account. Like I said,
that's where this matters. You probably have already hopefully talked
to an advisor to maybe start to switch that to
direct indexing, which would be kind of that next evolution
of fish, tax efficient investing, tax loss harvesting, and using
(19:09):
individual securities versus ETFs. But so what this means to you, though,
is that the ETFs that are available to you may
not expand the way that you were hoping they would.
In terms of if you had mutual funds that you
preferred would be available in an ETF format, that's probably
not going.
Speaker 2 (19:25):
To happen at this point.
Speaker 1 (19:26):
Yeah, and then and then just a reminder here, you know,
irrespective of what your tax situation is, there's ways to
work around that you can embed these mutual funds into
a tax efficient strategy where you can unwind shares over time,
have some tax loss harvesting going on in the background
to make the tax bite a little less painful. There
(19:47):
are things you can do to transition fully into this
ETF world, which is a much more tax efficient place
you know to be. Here's the all Worth advice. The
SEC may have shut the door on new ETF shares,
but smart tax planning still lives on. Just make sure
your strategy evolves with the new rules. How old is
(20:07):
your Internet router? It's a question you should answer soon,
and we're going to explain why.
Speaker 2 (20:13):
Next.
Speaker 1 (20:14):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KARC.
Speaker 5 (20:18):
The talk station is fifty five KARC and iHeartRadio station.
Speaker 1 (20:30):
You're listening to Simply Money presented by all Worth Financial.
I'm Bob Sponsorer along with Brian James, joined tonight by
our tech and cybersecurity guru, mister Dave Hatter, and I
know this topic is something everyone out there.
Speaker 2 (20:44):
This applies to everyone.
Speaker 1 (20:46):
Dave, what are we going to cover tonight to help
keep our data and our money secure?
Speaker 6 (20:51):
Guys is always thanks for having me on, and this
is an important topic. It's a recent warning from the
FBI about small businesses and people homes. You know, generally
large corporations have nerds like me running around. They have
enterprise grades, security solutions, they have firewalls from folks like
Palo Alto and Cisco and Fortinet. But at home, many
(21:12):
people just have whatever came from the internet service provider.
Same with small businesses, or maybe they've gone out the
best buyer Walmart or somewhere and bought an off the
shelf Wi Fi router because they need more capabilities than
what you can get out of the thing that was
delivered by your Internet service provider. And the FBI is
warning that in many cases, like so much of the
tech that's out there, so much of our so called
(21:34):
Internet of things aka smart devices, you know, these things
have to be updated regularly, they have to be configured correctly,
and as they get older and go into life where
they're not getting software upgrades and more importantly, security patches
from the vendor, that creates a gigantic security hole. This
is the kind of thing tenfoil hat nuts like me
warn't about all the time. But I'm happy to see
(21:55):
that the FBI is now trying to get in front
of this and warning folks that if you have these
old or end of life devices, you know, anything that's
more than five or six years old, you should question
if it's ten years old or older, that's going to
be a significant concern. You need. You need to seriously
take a hard look at replacing these things. And the
good news is they're relatively inexpensive.
Speaker 1 (22:14):
All Right, Dave is somebody who grew up here in Cincinnati,
you know, using that old Green Hills mindset where I'm
gonna pinch every penny I can. You know a lot
of times I think to myself, and I know other
people think the same way. I do not want to
rent that router from Spectrum or you know, Ulti Fiber
or whatever. I'm just going to go buy my own
because it's going to save me a few bucks. Are
(22:35):
those the people you're really talking to right now, Those
people that went out and bought that router twenty years
ago and said, yep, I got my own router. I
feel great about not having to pay rental payments to
a cable company. Are those the people most at risk,
you know, in situations like the one you're talking about
right now.
Speaker 2 (22:53):
Most likely because if.
Speaker 6 (22:54):
You're essentially renting it from your internet service provider again
think you know, Spectrum, Ultify or whomever. And I'd also
point out. You know, there are so many different ways
to get online now. You know, in the old days,
you typically have to work with some sort of landline
based internet service provider. Now you have solutions like Starlink,
ount there and so forth. But at the end of
the day, the Wi Fi router. And this often gets
(23:16):
confusing for people because a lot of folks have two
different devices. You have the cable modem, if you have
something like Spectrum, which is a physical device that connects
you to their network, and then sometimes that will serve
also as a Wi Fi router. Sometimes you might have
a separate device that is then throwing up the Wi
Fi signal in your facility, your home, your small office
(23:38):
or whatever. This is a constant battle with my family,
Like the WiFi is down. I'm like, no, the WiFi
is not down. The internet connection is down. These are
two different things right now. Again, sometimes one device can
provide both. Most people have too. If you're working with
the internet service provider, you know they will occasionally replace
these things. Usually you're not going to have a device
(23:59):
that's a little but if you went out and bought
your own because you don't want to have that rental fee,
or you wanted extra capabilities. Yes, again if it's more
than five or six years old, and the FBI specifically
says in their PSA anything produced in twenty ten or earlier,
so you're talking to fifteen year old device. These things
have notorious security flaws. They're not getting updates from the vendors.
(24:20):
They're also missing a lot of more modern security features,
and that's one of the key things here. You can
go out and buy a high, relatively high end powerful
Wi Fi router for three hundred bucks or less that
will add an enormous amount of additional functionality and security
capabilities versus something that's even a couple of years old.
You know, there are new encryption standards for your Wi
(24:42):
Fi network, There are new Wi Fi standards that provide
better performance and better speed. So you know, by upgrading,
despite the fact that people don't want to spend money
and I get it, you also have to remember every
single thing you do online through that device is you know,
whether it's your banking, accessing your work networks, whatever you're
doing is going through that device, so ensuring its security
(25:05):
is very important for you, your business, your money, et cetera.
And you know, one quick piece of advice before amount
of time. Again, there's lots of new standards. You can
get much better performance, much better security, get software updates,
things like WPA three. That's that's the highest level of
encryption most home Wi Fi routers would support. You know,
(25:26):
you need to be turning on the highest level of
protection you can.
Speaker 2 (25:30):
And I would encourage folks.
Speaker 6 (25:31):
You know, if you don't have an earty friend like me,
you can talk to check out magazines online like c net,
Charlie Net, or zd Net, Ziff Davis Net, Tom's Guide,
PC Magazine, Consumer Reports. They have editors and experts that
vet these things right. So you can go out and say, well,
what's the best home Wi Fi router for twenty twenty
five on one of these sites, and they'll give you recommendations.
(25:55):
You know, do I want the cheapest one? Do I
want the most powerful one? Do I want the most
secure one? Do I care about gaming? There's all kinds
of great advice, and I also encourage people sign up.
Go to IC three dot gov Internet Crimecomplaint Center dot gov.
It's hosted by the FBI. They put out these public
service announcements. There's all kinds of useful information there, so
there's ample resources to help you figure this out. But
(26:17):
if you have a really old device, take the FBI's
advice and replace this, because you're setting yourself up for
disaster if you don't.
Speaker 4 (26:24):
Hey, Dave, is there besides it being old? Are there
things that the thing that my router could do?
Speaker 2 (26:29):
Well?
Speaker 4 (26:29):
I know that if it's behaving a certain way that
I maybe I should be paying more attention. You know,
obviously you know that there there are model numbers and
things we can look at too, but just in general,
should are there things I should watch for, just in
terms of normal performance?
Speaker 2 (26:42):
Yeah, that's a good question.
Speaker 6 (26:43):
You know. One of the reasons why they've put out
this PSA is, you know, for these really old routers,
it's not that hard for hackers to find these. There's
a search engine called Showdan specifically designed to find Internet
connected devices, so bad guys can go look up routers
that have known defects. They can infiltrate your router and
(27:03):
then they'll use it essentially as a proxy or for
other nefarious purposes, so they're they're routing they're bad activities
through your router, which also means you could get a
visit from the FBI. Someday if you look into that,
you'll find that has happened before.
Speaker 2 (27:16):
But yeah, if.
Speaker 6 (27:17):
It used to work fine and now it suddenly starts
to lose its connectivity, your speed goes to near zero,
it seems to overheat, or just suddenly starts acting weird.
I mean that could just be a sign that that's
getting old and tired, or it could be a sign
of some sort of infestation from some hackers somewhere. And again,
with these newer devices, they're much harder to hack. They're
(27:40):
getting the security patches from their vendors, they're much easier
to secure. You know, all the reasons why you should
really think about replacing anything that. Again, I would say
if it's five or six years old, you should take
a hard look at replacing it.
Speaker 4 (27:52):
Yeah, and I want to be clear too, this is
something I learned years ago about. We've hinted at a
couple times here, but just to say it a third time,
you do not have to rent devices from your internet
provider anymore than you have to rent a lawn sprinkler
from the water company. They can't control what you're connecting
to that connection, So you can be in full control
of this and save yourself a little money. At the
same time, Dave, I'm going to ask you a little
(28:14):
bit of a loaded question. Have we heard from the
ulti fibers and the spectrums of the world is from there?
Are they raising a flag on any of this? And
do you have any idea if they would bear any liability.
That's a lawyer question and none of us is one,
but I'm asking anyway.
Speaker 6 (28:28):
Yeah, I have not seen, like you know, I use
Spectrum at home. I have not seen any communication from
Spectrum in this regard. Now again, you know, they will
occasionally replace their equipment and so forth, and you know,
I would encourage people to your point to not rent
their equipment and go for some of the higher end
and relatively inexpensive. You know, if you spend three hundred
dollars on a fairly high end Wi Fi router and
(28:50):
you advertise that over five or six years, that's not
very much money to get a lot more security and
a lot better capability and probably a lot better performance
to boom.
Speaker 2 (28:59):
You know.
Speaker 6 (29:00):
All of that said, so, I haven't seen anything from
the Internet service providers in this region comment on this
particular FBI warning. I think it probably is really geared
more towards the people like you mentioned that have gone
out and bought their own equipment, perhaps a long time ago.
And you know, as far as the internet service provider
bearing any responsibility, yeah, I'm not an attorney, and I'm
(29:21):
sure if you read through their terms of service there's
indignification in there for anything that goes wrong using their service.
Speaker 2 (29:27):
So I kind of doubt it. But you know, I'm
not an attorney.
Speaker 6 (29:31):
And you know, could you get a class action lawsuit
together for people that have somehow been hacked because they
had old equipment and they weren't warned and it wasn't replaced.
Speaker 2 (29:40):
Maybe. Yeah.
Speaker 1 (29:41):
So bottom line is spending that investing that three hundred dollars,
like you said, advertized over six, seven, eight, ten years
is way less expensive than going through a dramatic, you know,
identity theft or fraud situation that could cost you hundreds,
if not thousands of dollars. Great stuff, as always from
our tech expert Dave Hatter. You're listening to Simply Money
(30:03):
presented by all Worth Financial on fifty five KARC the
talk station. You're listening to Simply Money presented by all
Worth Financial on Bob Sponsorer along with Brian James, do
(30:26):
you have a financial question for us? There is a
red button you could click while you're listening to the
show right there on the iHeart app. Simply record your
question and it will come straight to us. All right,
let's roll here the Ask the Advisor segment. Well, first
we have Brian and Mason.
Speaker 2 (30:45):
What does this smart withdrawal strategy look like for someone
with a three million dollars portfolio?
Speaker 4 (30:49):
Yeah, thanks for clicking that red button there, Brian. So
that's a great, great question, and you know, I wish
this is one of those things. Honestly that is job
security for me and Bob, because that is that is
a very very complicated question, important question everyone will face it.
It depends on the tax structure. So Brian, I would
ask you, is this money you said three million dollars?
Is this in a four oh one k is at ira?
Or perhaps you inherited it, maybe you sold a business
(31:11):
and it's exposed to taxes, which isn't a bad thing.
Everything's exposed to taxes, but there are differences between retirement
taxes and capital gains taxes, of course, so it depends
on what you need and when you need it. So
the ideal part of this is what I would suggest
is come up with with the some semblance of what
do you need in the next twelve to eighteen months
that ought to be placed in something that's pretty accessible
(31:32):
and not going to be affected by the headlines, and
then that then you'll be more confident in leaving the
rest of it invested over the longer haul. But maybe
come up with three buckets, a short term, medium term,
and a long term, and then you can look at
how those different things are taxed.
Speaker 1 (31:44):
All right, how about Robert and Florence, is there a
right time or way to talk to my airs about
what inheritance they might receive?
Speaker 2 (31:51):
Well, Robert, this is.
Speaker 1 (31:52):
A loaded question, but a great one because we talk
about it all the time on this show. Communicating with
your family is of the utmost in terms of timing.
I'll just give my answer as someone my wife and
I we have three adult sons, and we have not
shared any of this information, you know, with them yet.
We're a little bit young. They're a little bit young.
(32:12):
But I'd say the first thing to focus on before
you talk about inheritance, make sure your kids are equipped
to handle money well. Make sure that you're happy not
that you micro manage their life, but make sure you're
at least comfortable that they have financial plans of their own,
they're following those plans, they're being responsible with money, they're
(32:35):
not racking up a lot of debt. And then when
you get down the road a little bit, you know,
I think then when you know they're going to be
responsible with anything, you might leave them. I think you
could throw out some round numbers because I think if
they have some just broad numbers to work with, is
they're growing their family, it helps them sit down with
their advisor and do the same kind of planning that
(32:58):
you are doing. In terms of retirement. Hey, if I
know I got a little bit of money coming here,
well that might make some differences. And how I contribute
to ROTH versus regular four to one K, how I
fund kids college educations. So I again, I would say,
first thing is make sure they're handling money correctly or
know how to do so, and then broach the subject
(33:20):
not with guarantees, but broadly speaking, give them a range
of dollars that they're likely going to inherit. That's how
I plan to go about it with my own family.
Speaker 4 (33:30):
And now we'll move on we'll dig a little deeper
into the voicemail bag we have, Bill and blue Ash.
Speaker 1 (33:34):
I have heard that people in my situation can be
over insured or under insured depending on their stage life.
Speaker 2 (33:41):
How do I know if my insurance still makes sense? Yeah,
another great question.
Speaker 4 (33:46):
These are all things that we think of at three
o'clock in the morning when we're staring at the ceiling.
So so, Bill, I think the right way to approach
this is to figure out if something were to happen
to you or your spouse, and or your spouse you
know here in the short run, how much money would
need to range from the sky so that you're you're
whoever you're responsible for, Uh, can can continue the lifestyle?
A lot of times people, you know, we'll buy a
(34:07):
lot of insurance when the kids are young, but then
we hit a stage where where that's kind of over with.
So I always recommend term insurance for term needs. You
can calculate when the kids should be out of college,
assuming that's one of your goals, and you you already
have a piece of paper that shows the exact date
the mortgage goes away, so those are finite dates. You
can look at term insurance for those and then the
rest of it is really, uh, what kind of income
(34:28):
replacement do my dependence need if I am no longer
out there able to earn a salary. And again, you
may have already built up a nest egg that covers it.
If that's the case, you don't really need any more insurance. However,
if there's a gap there, that's where you might be
looking at a more permanent insurance type of a situation.
If there if there will always be a need, or
perhaps there's a there's a person in your life for
whom you are somewhat responsible who will always need some
(34:50):
financial support. Perhaps there's you know, some disabilities or something
like that that requires permanent insurance because you'll need you
will definitely need something to fall from the sky after
your death. But that that's These are all things to
make a situation unique.
Speaker 2 (35:01):
All right, let's hear from Ed and Amberley Village. I'm retired,
but my spouse is still working.
Speaker 4 (35:06):
How do you coordinate a financial plan on one person
is earning and the other one is it?
Speaker 2 (35:10):
Especially with taxes and healthcare in theemics.
Speaker 1 (35:14):
Well Ed, you hit on the two big factors taxes
and healthcare, and those are obviously extremely important things to cover,
and we want to, you know, take care of the
first things.
Speaker 2 (35:23):
First.
Speaker 1 (35:23):
You got to make sure that you've got healthcare coverage
for both of you, and hopefully you're in a situation
where your spouse is still working and you're retired. Hopefully
you can stay on her health care plan until she
retires and hopefully get that bridge built between you know,
now and being able to go on Medicare.
Speaker 2 (35:40):
So that's number one.
Speaker 1 (35:41):
You want to look at that and make sure there's
not any gaps there, you know, being in a situation
where you are potentially without health care coverage. And then
you brought up taxes, and that's where you can sit
down and run through Social Security claiming strategies, how that
impacts your Medicare premiums, What type of assets do you
have that are going to be able to replace one
(36:03):
or both spouse's income. There's a lot of moving parts there,
and I think a good fiduciary advisor can help you,
you know, kind of put the proverbial car up on
the rack, so to speak, and look at what those
potential income sources are, dovetail that with your tax strategy
and your healthcare needs, and then I think you got
a good plan heading into retirement.
Speaker 2 (36:23):
And quickly Diana and Milford has some questions about healthcare.
I've saved well, but Medicare still confuses me. How do
you plan for those costs so they don't sneak up
on you?
Speaker 4 (36:34):
Yeah, So this is where a financial plan comes in.
And I'll throw out a quick quick tip here. When
we build financial plans, we use data from the Medicare
organization themselves. For a single person, we estimate somewhere around
five to six thousand dollars per year in current dollars.
That will account for the Medicare premium, a supplemental policy premium,
and then an estimate of office visits and copays and
(36:54):
all those kinds of things. So about five thousand bucks
maybe ten to eleven for a married couple.
Speaker 1 (36:58):
Coming up next, we're going to hear Bryan's bottom line
where he's going to talk to talk to us about Hey,
why you might be working longer than you might need to.
Speaker 2 (37:07):
This will be great.
Speaker 1 (37:08):
You're listening to Simply Money presented by all Worth Financial
on fifty.
Speaker 2 (37:12):
Five KRC the talk station.
Speaker 6 (37:19):
Moment.
Speaker 1 (37:20):
You're listening to Simply Money presented by all Worth Financial.
I'm Bob sponsorer along with Brian James, and it's time
now for Brian's bottom line lay it on as Brian.
Speaker 2 (37:30):
Well, Bob, I had an attention getter.
Speaker 4 (37:31):
Recently went to a funeral of a client, and it
was kind of a sad situation, of course, as it
always is. But are some of my favorite people just
beyond the financial plan being an interesting thing to put together,
fun puzzle to work on, you know, just professionally speaking,
just fun people to sit around the table with and
solve these problems. But the gentleman who passed on, he
had worked until he was in his mid seventies, loved
(37:53):
what he did, just was highly respected and super enjoyed
his job and really just kind of wanted to get
every last minute out of it. And so he just
finally decided to retire. And unfortunately his wife came down
with some health problems and she was gone in six months,
and very recently I went to his funeral too. So sadly,
these this wonderful couple who have you know, their own
(38:13):
children and grandchildren in the neighborhood, didn't get to enjoy
all of that, with all the free time that they had,
and it just really really got me thinking about priorities.
And I have another meeting of coming up somebody I
haven't met yet, but who I can tell right away.
They've got way more money than they need from the
basic facts that I know about them, and they are
still so worried about running out of money.
Speaker 1 (38:35):
Well, Brian, let's go back to that first couple, because
I remember the day you were in the office. You know,
you had your suit on, ready to go to the funeral,
and I didn't know where you were headed, but I
knew you were headed someplace special, and I could tell
from talking to you that it was weighing heavy on
your heart and mind that day. What could that couple
maybe have done a little bit different, Sure, do the
plan earlier, figure out where you are, you know, And
(38:57):
here's another quick sort of a different couple.
Speaker 2 (38:59):
But the same idea.
Speaker 4 (39:00):
One of the saddest stories in my entire career was
a couple that came in here with They both had
old school pensions with inflation built in, and we did
the whole plan and they realized they could have retired
five or six years earlier. And there were tears. And
usually it's because you know, people cry over this stuff
because it's a relief.
Speaker 2 (39:17):
Oh, I finally made it. I get to run my
life the way I want.
Speaker 4 (39:20):
But it took me a few seconds to realize that
this lady was legit sad because she was not thinking
of all the freedom in the future. She was thinking
of what she had missed in the past because her
grandkids were now getting older and kind of doing their
own thing, and she could have easily taken the time
to spend with them, but never took a breath to
see what position she had put herself in. She simply
hid behind the fact that I just don't the position
(39:43):
of scarcity. There's never enough, never enough, never enough. Well,
she had more than enough and missed out well.
Speaker 1 (39:47):
As I listened to you share those stories, and they're
real stories in your life with your clients. I mean,
I think a lot of times people when they think
of coming to see their financial advisor, they're thinking, all, right,
what are these people are going to tell me that
I can do because I don't have enough money? When
in reality, a lot of times we're encouraging them about
all the things they can and should be doing to
(40:10):
really open up and give them that life of freedom
and joy. In those latter years that they've worked so
hard to earn. Thanks for listening. You've been listening to
Simply Money, presented by all Worth Financial on fifty five KRC,
the talk station
Tonight, one man can move an entire market and heads
up for those looking for a tax efficient portfolio and more.
You're listening to Simply Money, presented by all Worth Financial
on Bob's Fund Seller along with Brian James, joined tonight
by our all Worst Chief investment Officer.
Speaker 2 (00:28):
Andy Stout.
Speaker 1 (00:29):
And speaking of Andy, we often talk about the fact
that just a couple of companies can move the markets
at times, and specifically a couple of people who run
these companies or invest in these companies. And I could
think of no two bigger behemoths on Wall Street than
Warren Buffett and our own Andy Stout. Andy manages more
(00:51):
than thirty billion dollars of investments from right here in Cincinnati.
For all Worth, Andy, let's talk about what Warren Buffett
did late last week and how it led the Dow
Jones industrial lavage average to a record high.
Speaker 3 (01:05):
Yeah, we're seeing market highs on a pretty regular basis.
So it's a nice thing for investors if you happen
to be checking your if you happen to be checking
your four ow K every day, which we would argue
you probably shouldn't be checking every day, but it's it's
nice when we see these record highs, especially after the
volatility we had just a few months ago, and when
we look at what Warren Buffett did, and just from
(01:27):
just an announcement standpoint, he talked about a stake in
the United Health, which I don't know if you're aware
of this or not, but United Health has been getting
pounded lately.
Speaker 2 (01:36):
Uh. But when you have the Oracle of Omaha coming in.
Speaker 3 (01:40):
Saying, yeah, I have a sizable or a sizable but
I have a stake in the company, it tends to
give the broad market some confidence in there, because I mean,
he's the Oracle of Omaha. Now you could say he's
one of the most legendary investors of all time. You know,
he probably is right up there in the top five
(02:00):
of your most well known investors. And that really helped
him to give United Health a big boost, lifting stocks
and that saw, you know, really a lot of investors
having a good day.
Speaker 4 (02:15):
So yeah, I think one of the interesting things about
that they've got to bear in mind because you know,
everybody loves Warren Buffett and obviously he's one of the
most successful investors in the history of time, and so
I'm sure there's plenty of people out there who are
going who are wondering exactly what he sees in United Healthcare.
Speaker 2 (02:28):
He's a value investor. What he saw was.
Speaker 4 (02:30):
That it was was down about fifty percent when he
bought it in early August, and currently he's up about
ten to fifteen percent something like that, still down forty
percent for the year. But yeah, can you can you
talk a little bit about what what what he would
have seen in that? Why is that an important thing?
Speaker 3 (02:47):
Well, when you look at valuations like price to earnings ratio,
which tells you how much it cost to buy one
dollars worth of earnings from a stock when it gets
beaten down and it gets a lower or lower and lower,
that just tells you you're able to buy that one
dollar of earnings for a much cheaper amount than you
could have before. Now a lot of that you might
(03:10):
be thinking, well, the video has been doing so good,
but their PE ratio is you know through the roof,
same thing on some of these other mega tech stops.
And that's absolutely true. The thing to keep in mind, Brian,
it's also tied to what the expected earnings growth is.
So seeing a high PE ratio in one company isn't
necessarily the same as a high PE ratio on another company.
(03:31):
So if I had saw the PE ratio of Navidia
at the a United Health company, you know, that would
be really really concerning because United Health doesn't have the
same growth prospects that Navidia does. Now, you could easily
make an argument in the video's earnings are and valuations
are stretch And maybe maybe not what time will tell
(03:52):
on that one, but regardless, what Warren Buffett saw on
United Health was that there's definitely some value there because
you can get earnings from a pretty stable company. I
know they had a bit of a miss here a
couple of months ago, but when you look at where
they're at right now, I mean the investment thesis at
(04:12):
least that Warren Buffett sees and based on some of
the other things that a lot of people see out there,
you know they it still remains there.
Speaker 2 (04:21):
Yeah, Andy, I think this is just one example.
Speaker 1 (04:23):
I mean what what I think all three of us
have been talking about on this show now over the
last few weeks. I mean with the nasdac A record
highs and all this talk about AI and tech stocks,
you know, valuations can get a little ahead of themselves
at times and you forget about the rest of the
businesses and companies out there. And this is just one
example of the benefits from you know, buying low and
(04:44):
selling high sometimes and broadening out the diversification of your portfolio.
And Warren Buffett, I'm sure he did not buy United
Healthcare before it went down fifty percent, and there he
is jumping in and making a nice buy and moving
the stock.
Speaker 2 (04:59):
All right.
Speaker 1 (05:00):
While what Warren Buffett does is important, it's our spending
that makes up about seventy percent of gross domestic product.
Andy talk about the most recent resale retail sales report.
How's the consumer looking out there?
Speaker 3 (05:14):
You know, we saw a really good number last week
for the July retail sales where the headline number saw
a really positive spike at least on a month over
a month basis, gaining about half a percent and not easily,
well not easily, but that did top expectations for what
economists were looking for. They were they weren't looking for
(05:38):
something as strong as you know that, but you know
the reason that it was pretty much in a little
bit of a beat. I'll say, we also saw a
revision higher to the prior month, so it suggests that
we're starting at a starting the third quarter at a
much stronger footing than what economists have briefly thought. Now,
what really really matters from my perspective is that control
(06:00):
group retail sales or core retail sales.
Speaker 2 (06:02):
The thing about that is what it does.
Speaker 3 (06:04):
It excludes some very volatile areas like gasoline stations, food energy.
Speaker 2 (06:14):
And building materials.
Speaker 3 (06:15):
And what that showed and the reason I liked this,
by the way, Bob, is that it's a direct input
into that GDP calculation. And what we saw was that
also increased half a percent, and we also saw the
prior month revised higher. So it was really good start
for consumers out there on that broad picture. Now that
I will say, there was one i'll call a bit
of a concern, and that was the restaurant.
Speaker 2 (06:37):
And bar spending.
Speaker 3 (06:39):
What we saw there was an actual pullback, But I
also looking at the monthly data when this was released
last week, and it really was common to see a
negative month at restaurants and bars. When I say negative month,
I mean a decline compared to the prior month in
terms of total spending, but that could be followed by
a positive month. So there's lot of what I would
(07:00):
call a bit of a mean reversion. Over time, it
has still been trending higher, but it's not a commontacy.
One down month followed by an up month over the
past year. We've seen that three or four times, so
I'm not going to call this a trend by any
stretch of the imagination.
Speaker 2 (07:17):
But the big picture on.
Speaker 3 (07:19):
That retail sales was that the consumer is still spending
and as you knowed, that's about seventy percent of our economies.
Speaker 2 (07:24):
That's a really good thing.
Speaker 1 (07:26):
You're listening to Simple Money, presented by all Worth Financial
on Bob Sponseller along with Brian James, joined tonight by
our chief investment officer Andy Stout. Andy, it wouldn't be
a Monday update without a little talk about tariffs. We
see President Trump recently put out a declaration that semiconductor
tariffs could be coming soon.
Speaker 2 (07:46):
What's going on with that?
Speaker 3 (07:49):
Well, when I'm looking at what's going on from a
big picture, when it comes to you know, semi conductor.
Speaker 2 (07:54):
Tariffs or the overall.
Speaker 3 (07:58):
Trade environment, you know, it's fluid, it changes almost every day.
So when you see these headlines about semiconductor tariffs, you know,
possibly reaching three hundred percent. You know, it's certainly something
that makes you think, well, that can't be good, that
can't be good for prices. And when when you look
(08:19):
at this from from a big pick from an economic perspective,
you know, a lot of economists are estimating that the
average tarif rate might somewhere land when this is all
said and done, around eighteen percent. Now keep in mind,
when you go back to last year twenty twenty four,
our average tariff rate was around two point four percent,
(08:39):
So this is a material jumb then that's why you
see a lot of economists still thinking even though it
hasn't really happened. Yeah, but I mean we've saw in
the headlines last week where President Trump was talking about
the Goldman's sax economists as being completely wrong. But the
point is that a lot of these economists still see
inflation as a real risk from these terrorists because we
(09:00):
haven't really gotten to the point where we're seeing the
pass through rate from these tariffs hit the consumers. So
it hasn't happened yet, but it's still changing a lot.
Speaker 2 (09:10):
And you have to have the ability to enforce these traffs.
Speaker 3 (09:13):
So whether or not you see a three hundred percent
rate on tariffs for semiconductors happen or not happening, which
seems highly unlikely.
Speaker 2 (09:21):
By the way.
Speaker 3 (09:22):
The bigger picture is that it's very fluid, and when
you look at everything that's going on in the trade
and environment, you hear about deals and then you don't
know about the details of the deals. In the meantime,
you still have these terriff rates being applied out there,
and they're starting to be actually enforced now by the
(09:43):
ust R, the United States, the tariff or trade representatives.
That's being enforced now, and that's going to possibly have
some sort of inflation in your impulse and that's something
that the Federal Reserve is watching very closely.
Speaker 2 (09:58):
Yeah, that's interesting.
Speaker 4 (10:00):
One thing I've been paying attention to is we've almost
kind of forgotten about it, but there are two massive
intel plants going in somewhere southeast of Columbus that are
under construction, and that those were kicked off when it
became pretty clear that our future leadership, this is years ago,
was going to be focusing for more onshore semiconductor production
(10:21):
for really for national security reasons as well, in addition
to the idea that we really like more manufacturing at
home that got slowed down. It was supposed to open
this year, I believe twenty twenty five. It got slowed
down because Intel was going through some things. I wonder,
maybe I'm putting on the spot a little bit, but
I'm just curious if the threats of these semiconductor tariffs
are going to change Intel's decision to slow that down,
(10:43):
which they did because they want to do their own
financial restructure. But all of a sudden, it's going to
get more expensive, you know, to bring them on shore
from elsewhere. I wonder if that will drive things. Have
you heard anything new on that front.
Speaker 3 (10:54):
Well, it's in New Albany, Ohios, where Intel is looking
to build out, which is northeast a little bit northeast
of Columbus. And when you look at the construction, you know,
I have heard something about a few things about slowing
construction in Ohio when it comes to that. So I
(11:14):
think it's it's definitely behind schedule. I mean, it's like
a twenty eight billion dollar, you know, project or something
like that, and you know it is behind schedule and
it is slowing a bit. I don't think it's going
to stop or anything like that. But you know, I
think what you're seeing is from a bigger picture perspective,
is there's a lot of uncertainty out there. And when
you have this amount of uncertainty, and we actually saw
(11:35):
this in a survey last week from small businesses regarding
high levels of uncertainty, they delay these big strategic decisions
because they have this this real world optionality to decide
whether or not to wait or not wait, and oftentimes
is not. Oftentimes waiting is going to be more advantageous
because you don't know all the possible paths that may
(11:57):
come to fruition as just the economy evolves.
Speaker 1 (12:03):
All right, thanks as always for joining us tonight, Andy,
Could one of the sneakiest tax advantages in your portfolio
soon disappear? We'll talk about a new ruling from the
SEC coming up next. You're listening to Simply Money, presented
by all Worth Financial on fifty five KRC the Talk station.
Speaker 5 (12:20):
Allworth 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 (12:40):
You're listening to Simply Money presented by all Worth Financial
on Bobs.
Speaker 2 (12:43):
Fund Seller along with Brian James.
Speaker 1 (12:46):
Is there a right time to discuss the inheritance you
plan to leave your children and other family members. It's
one of the questions you actually asked us, and we
will answer it all straight ahead at six point forty three.
If you're an investor who likes to keep your tax
bill and check, and let's be honest, who doesn't, you
may have already benefited from one of the most tax
efficient tools on Wall Street, the exchange traded fund better
(13:10):
known as the ETF. But now there could be a
change to this strategy. Brian, Let's talk about what's currently
happening here, because this could impact some folks that own
mutual funds now and have owned them for years, or
also folks who had expected some changes coming down the
pike that aren't gonna happen.
Speaker 4 (13:29):
Yeah, let's define some terms first, Bob so so, Mutual
funds are one investment that own a bunch of different
things stocks or bonds underneath them.
Speaker 2 (13:36):
An ETF is the same thing.
Speaker 4 (13:37):
It stands for exchange traded fund, not to be confused
with EFT electronic funds transfer to very different and not
related to each other thing.
Speaker 2 (13:45):
So we're talking about ETFs.
Speaker 4 (13:47):
So mutual funds companies nowadays offer ETF share classes of
their existing funds. What it does, and ETF trades all
day every day, unlike a mutual fund, which is only
priced at the end of the day around four when
we know what the entire what the rest of the
market did those individual securities that make up that mutual fund.
So an ETF now, due to technology over the last
(14:07):
basically twenty thirty years, it's a lot more efficient to
be able to pull all those together and create something
that has the diversification benefits of a mutual fund, but
trades like a stock.
Speaker 2 (14:17):
That's the whole point.
Speaker 4 (14:18):
So Vanguard kind of pioneered this years ago, and investors
can choose between a traditional.
Speaker 2 (14:22):
Mutual fund or a tax efficient ETF.
Speaker 4 (14:25):
They're managed under the same umbrella, same strategy, same same managers,
just a different profile for taxes. What this really means
is that if you own an if you own a
mutual fund le he get an extreme example, if you
own a mutual fund and it has had Apple since
the beginning of time, then there is a massive capital
gain built up into that particular portion of the portfolio.
Speaker 2 (14:45):
If they choose to sell.
Speaker 4 (14:46):
Apple, then you even though you bought it last week,
you may have to pay taxes. You will have to
pay taxes on the entire gain. Going back to the
beginning of that purchase. For a mutual fund, in an ETF,
it's different. You own the shares of Apple inside that
fund the day that you or ETF was created, the
day that you bought it.
Speaker 2 (15:02):
That's the big difference.
Speaker 1 (15:03):
So what Vanguard did you know, Brian, is they got
out in front of this recognizing that people wanted some
more tax efficiency because folks you know that have owned
these shares for years and decades, you know, as a reminder,
and I think a lot of our listeners own this
stuff and they know this. They are painfully aware that
every year, sometime between October and the beginning of December,
(15:26):
you get a capital gains distribution, whether you sold anything
or not, you know, based on the point you just made.
It's all, you know, we mutually own these shares of stocks,
and everybody mutually participates in the tax exposure irrespective.
Speaker 2 (15:42):
Of how long you own the fund.
Speaker 1 (15:44):
And then Vanguard tried to get out in front of
this and mitigate it a little bit. Back in twenty twenty,
they actually had a patented approach saying we're gonna introduce
a new share class of our mutual fund and with
the tax treatment of ETFs, and but that pat expired
in twenty twenty three. Brian and I think a lot
of mutual fund companies were sitting there ready to go
(16:06):
here saying, hey, we're going to do exactly what Vanguard
has done, and for good reason. But you know, along
came the SEC with a final ruling and explain what
their ruling is.
Speaker 2 (16:17):
Yeah, So the SEC just ruled.
Speaker 4 (16:19):
That they're no longer going to approve ETF share classes
for mutual funds. So this is kind of big news
if you've been using ETFs as you as you're as
part of your strategy. The reason they're doing this, Bob,
is they're worried about some conflicts that they can harm
investors if a mutual fund exists in two worlds, the
ETF world and the more traditional mutual fund share class
cross subsidiation of costs. That means that cash based mutual
(16:41):
fund shareholders might eat trading costs that the ETF holders
benefit from just because of the way those two structures work.
In other words, if a mutual fund has to make
a major change, then that itself can cause activity that's
a major swing in the market of an individual security position,
and it would affect the et F share class differently
than the mutual fund even though they're both pursuing the
(17:03):
same thing. There's also a bit of drag on cash.
They're having to manage cash in both both those portfolios
to handle in kind redemptions, and that kind of forces
funds they have extra liquidity and putting this stuff in
two worlds will increase that risk for investors too. Also,
just voting and just overall fee disparities between the two
different that anyway, those are all the reasons that the
(17:23):
SEC says we can't do any of these. More so,
what's really changing. How are we going to see this?
Mutual funds can trigger capital gains when they move money around,
and again, like you just said, Bob, we need to
make sure that all this activity is beneficial to clients.
That's what the SEC is looking at.
Speaker 1 (17:39):
You're listening to simply money presented by all Worth Financial.
I'm Bob Sponseller along with Brian James Brian, let's break
this down, you know, just into Layman's terms. Here, what
should clients be doing in light of all this upcoming
news or in this case non news, and you know,
walk us through the things that we're constantly doing with
our clients to make sure that they're poor folio is
(18:00):
as tax efficient as possible, whether they own some mutual
funds that they've owned for twenty thirty forty years, or
whether they're completely in the ETF world.
Speaker 4 (18:11):
Yeah, so that's a thing we switched to ETFs a
long time ago for all the reasons we're talking about.
They're just a more efficient way to gain the to
gain the benefit of diversification, especially when we're talking we're
really talking about taxable accounts. When we talk about that,
it doesn't matter. The tax efficiency is irrelevant in an
IRA or a roth IRA because those are already sheltered
by definition. Doesn't matter what you do inside of it,
(18:32):
your taxes are not impacted in that tax here. So
what this really means for you if if you already own,
for say, a Vanguard ETF that is part that you
know as part of a mutual fund share class, then
nothing's going to change.
Speaker 2 (18:42):
Already grandfathered in that situation already exists.
Speaker 4 (18:45):
It's newer mutual fund companies that would very much like
to get their old funds into a new new chassis,
if you will. That's not going to be possible. If
you have a large taxable brokerage account. Like I said,
that's where this matters. You probably have already hopefully talked
to an advisor to maybe start to switch that to
direct indexing, which would be kind of that next evolution
of fish, tax efficient investing, tax loss harvesting, and using
(19:09):
individual securities versus ETFs. But so what this means to you, though,
is that the ETFs that are available to you may
not expand the way that you were hoping they would.
In terms of if you had mutual funds that you
preferred would be available in an ETF format, that's probably
not going.
Speaker 2 (19:25):
To happen at this point.
Speaker 1 (19:26):
Yeah, and then and then just a reminder here, you know,
irrespective of what your tax situation is, there's ways to
work around that you can embed these mutual funds into
a tax efficient strategy where you can unwind shares over time,
have some tax loss harvesting going on in the background
to make the tax bite a little less painful. There
(19:47):
are things you can do to transition fully into this
ETF world, which is a much more tax efficient place
you know to be. Here's the all Worth advice. The
SEC may have shut the door on new ETF shares,
but smart tax planning still lives on. Just make sure
your strategy evolves with the new rules. How old is
(20:07):
your Internet router? It's a question you should answer soon,
and we're going to explain why.
Speaker 2 (20:13):
Next.
Speaker 1 (20:14):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KARC.
Speaker 5 (20:18):
The talk station is fifty five KARC and iHeartRadio station.
Speaker 1 (20:30):
You're listening to Simply Money presented by all Worth Financial.
I'm Bob Sponsorer along with Brian James, joined tonight by
our tech and cybersecurity guru, mister Dave Hatter, and I
know this topic is something everyone out there.
Speaker 2 (20:44):
This applies to everyone.
Speaker 1 (20:46):
Dave, what are we going to cover tonight to help
keep our data and our money secure?
Speaker 6 (20:51):
Guys is always thanks for having me on, and this
is an important topic. It's a recent warning from the
FBI about small businesses and people homes. You know, generally
large corporations have nerds like me running around. They have
enterprise grades, security solutions, they have firewalls from folks like
Palo Alto and Cisco and Fortinet. But at home, many
(21:12):
people just have whatever came from the internet service provider.
Same with small businesses, or maybe they've gone out the
best buyer Walmart or somewhere and bought an off the
shelf Wi Fi router because they need more capabilities than
what you can get out of the thing that was
delivered by your Internet service provider. And the FBI is
warning that in many cases, like so much of the
tech that's out there, so much of our so called
(21:34):
Internet of things aka smart devices, you know, these things
have to be updated regularly, they have to be configured correctly,
and as they get older and go into life where
they're not getting software upgrades and more importantly, security patches
from the vendor, that creates a gigantic security hole. This
is the kind of thing tenfoil hat nuts like me
warn't about all the time. But I'm happy to see
(21:55):
that the FBI is now trying to get in front
of this and warning folks that if you have these
old or end of life devices, you know, anything that's
more than five or six years old, you should question
if it's ten years old or older, that's going to
be a significant concern. You need. You need to seriously
take a hard look at replacing these things. And the
good news is they're relatively inexpensive.
Speaker 1 (22:14):
All Right, Dave is somebody who grew up here in Cincinnati,
you know, using that old Green Hills mindset where I'm
gonna pinch every penny I can. You know a lot
of times I think to myself, and I know other
people think the same way. I do not want to
rent that router from Spectrum or you know, Ulti Fiber
or whatever. I'm just going to go buy my own
because it's going to save me a few bucks. Are
(22:35):
those the people you're really talking to right now, Those
people that went out and bought that router twenty years
ago and said, yep, I got my own router. I
feel great about not having to pay rental payments to
a cable company. Are those the people most at risk,
you know, in situations like the one you're talking about
right now.
Speaker 2 (22:53):
Most likely because if.
Speaker 6 (22:54):
You're essentially renting it from your internet service provider again
think you know, Spectrum, Ultify or whomever. And I'd also
point out. You know, there are so many different ways
to get online now. You know, in the old days,
you typically have to work with some sort of landline
based internet service provider. Now you have solutions like Starlink,
ount there and so forth. But at the end of
the day, the Wi Fi router. And this often gets
(23:16):
confusing for people because a lot of folks have two
different devices. You have the cable modem, if you have
something like Spectrum, which is a physical device that connects
you to their network, and then sometimes that will serve
also as a Wi Fi router. Sometimes you might have
a separate device that is then throwing up the Wi
Fi signal in your facility, your home, your small office
(23:38):
or whatever. This is a constant battle with my family,
Like the WiFi is down. I'm like, no, the WiFi
is not down. The internet connection is down. These are
two different things right now. Again, sometimes one device can
provide both. Most people have too. If you're working with
the internet service provider, you know they will occasionally replace
these things. Usually you're not going to have a device
(23:59):
that's a little but if you went out and bought
your own because you don't want to have that rental fee,
or you wanted extra capabilities. Yes, again if it's more
than five or six years old, and the FBI specifically
says in their PSA anything produced in twenty ten or earlier,
so you're talking to fifteen year old device. These things
have notorious security flaws. They're not getting updates from the vendors.
(24:20):
They're also missing a lot of more modern security features,
and that's one of the key things here. You can
go out and buy a high, relatively high end powerful
Wi Fi router for three hundred bucks or less that
will add an enormous amount of additional functionality and security
capabilities versus something that's even a couple of years old.
You know, there are new encryption standards for your Wi
(24:42):
Fi network, There are new Wi Fi standards that provide
better performance and better speed. So you know, by upgrading,
despite the fact that people don't want to spend money
and I get it, you also have to remember every
single thing you do online through that device is you know,
whether it's your banking, accessing your work networks, whatever you're
doing is going through that device, so ensuring its security
(25:05):
is very important for you, your business, your money, et cetera.
And you know, one quick piece of advice before amount
of time. Again, there's lots of new standards. You can
get much better performance, much better security, get software updates,
things like WPA three. That's that's the highest level of
encryption most home Wi Fi routers would support. You know,
(25:26):
you need to be turning on the highest level of
protection you can.
Speaker 2 (25:30):
And I would encourage folks.
Speaker 6 (25:31):
You know, if you don't have an earty friend like me,
you can talk to check out magazines online like c net,
Charlie Net, or zd Net, Ziff Davis Net, Tom's Guide,
PC Magazine, Consumer Reports. They have editors and experts that
vet these things right. So you can go out and say, well,
what's the best home Wi Fi router for twenty twenty
five on one of these sites, and they'll give you recommendations.
(25:55):
You know, do I want the cheapest one? Do I
want the most powerful one? Do I want the most
secure one? Do I care about gaming? There's all kinds
of great advice, and I also encourage people sign up.
Go to IC three dot gov Internet Crimecomplaint Center dot gov.
It's hosted by the FBI. They put out these public
service announcements. There's all kinds of useful information there, so
there's ample resources to help you figure this out. But
(26:17):
if you have a really old device, take the FBI's
advice and replace this, because you're setting yourself up for
disaster if you don't.
Speaker 4 (26:24):
Hey, Dave, is there besides it being old? Are there
things that the thing that my router could do?
Speaker 2 (26:29):
Well?
Speaker 4 (26:29):
I know that if it's behaving a certain way that
I maybe I should be paying more attention. You know,
obviously you know that there there are model numbers and
things we can look at too, but just in general,
should are there things I should watch for, just in
terms of normal performance?
Speaker 2 (26:42):
Yeah, that's a good question.
Speaker 6 (26:43):
You know. One of the reasons why they've put out
this PSA is, you know, for these really old routers,
it's not that hard for hackers to find these. There's
a search engine called Showdan specifically designed to find Internet
connected devices, so bad guys can go look up routers
that have known defects. They can infiltrate your router and
(27:03):
then they'll use it essentially as a proxy or for
other nefarious purposes, so they're they're routing they're bad activities
through your router, which also means you could get a
visit from the FBI. Someday if you look into that,
you'll find that has happened before.
Speaker 2 (27:16):
But yeah, if.
Speaker 6 (27:17):
It used to work fine and now it suddenly starts
to lose its connectivity, your speed goes to near zero,
it seems to overheat, or just suddenly starts acting weird.
I mean that could just be a sign that that's
getting old and tired, or it could be a sign
of some sort of infestation from some hackers somewhere. And again,
with these newer devices, they're much harder to hack. They're
(27:40):
getting the security patches from their vendors, they're much easier
to secure. You know, all the reasons why you should
really think about replacing anything that. Again, I would say
if it's five or six years old, you should take
a hard look at replacing it.
Speaker 4 (27:52):
Yeah, and I want to be clear too, this is
something I learned years ago about. We've hinted at a
couple times here, but just to say it a third time,
you do not have to rent devices from your internet
provider anymore than you have to rent a lawn sprinkler
from the water company. They can't control what you're connecting
to that connection, So you can be in full control
of this and save yourself a little money. At the
same time, Dave, I'm going to ask you a little
(28:14):
bit of a loaded question. Have we heard from the
ulti fibers and the spectrums of the world is from there?
Are they raising a flag on any of this? And
do you have any idea if they would bear any liability.
That's a lawyer question and none of us is one,
but I'm asking anyway.
Speaker 6 (28:28):
Yeah, I have not seen, like you know, I use
Spectrum at home. I have not seen any communication from
Spectrum in this regard. Now again, you know, they will
occasionally replace their equipment and so forth, and you know,
I would encourage people to your point to not rent
their equipment and go for some of the higher end
and relatively inexpensive. You know, if you spend three hundred
dollars on a fairly high end Wi Fi router and
(28:50):
you advertise that over five or six years, that's not
very much money to get a lot more security and
a lot better capability and probably a lot better performance
to boom.
Speaker 2 (28:59):
You know.
Speaker 6 (29:00):
All of that said, so, I haven't seen anything from
the Internet service providers in this region comment on this
particular FBI warning. I think it probably is really geared
more towards the people like you mentioned that have gone
out and bought their own equipment, perhaps a long time ago.
And you know, as far as the internet service provider
bearing any responsibility, yeah, I'm not an attorney, and I'm
(29:21):
sure if you read through their terms of service there's
indignification in there for anything that goes wrong using their service.
Speaker 2 (29:27):
So I kind of doubt it. But you know, I'm
not an attorney.
Speaker 6 (29:31):
And you know, could you get a class action lawsuit
together for people that have somehow been hacked because they
had old equipment and they weren't warned and it wasn't replaced.
Speaker 2 (29:40):
Maybe. Yeah.
Speaker 1 (29:41):
So bottom line is spending that investing that three hundred dollars,
like you said, advertized over six, seven, eight, ten years
is way less expensive than going through a dramatic, you know,
identity theft or fraud situation that could cost you hundreds,
if not thousands of dollars. Great stuff, as always from
our tech expert Dave Hatter. You're listening to Simply Money
(30:03):
presented by all Worth Financial on fifty five KARC the
talk station. You're listening to Simply Money presented by all
Worth Financial on Bob Sponsorer along with Brian James, do
(30:26):
you have a financial question for us? There is a
red button you could click while you're listening to the
show right there on the iHeart app. Simply record your
question and it will come straight to us. All right,
let's roll here the Ask the Advisor segment. Well, first
we have Brian and Mason.
Speaker 2 (30:45):
What does this smart withdrawal strategy look like for someone
with a three million dollars portfolio?
Speaker 4 (30:49):
Yeah, thanks for clicking that red button there, Brian. So
that's a great, great question, and you know, I wish
this is one of those things. Honestly that is job
security for me and Bob, because that is that is
a very very complicated question, important question everyone will face it.
It depends on the tax structure. So Brian, I would
ask you, is this money you said three million dollars?
Is this in a four oh one k is at ira?
Or perhaps you inherited it, maybe you sold a business
(31:11):
and it's exposed to taxes, which isn't a bad thing.
Everything's exposed to taxes, but there are differences between retirement
taxes and capital gains taxes, of course, so it depends
on what you need and when you need it. So
the ideal part of this is what I would suggest
is come up with with the some semblance of what
do you need in the next twelve to eighteen months
that ought to be placed in something that's pretty accessible
(31:32):
and not going to be affected by the headlines, and
then that then you'll be more confident in leaving the
rest of it invested over the longer haul. But maybe
come up with three buckets, a short term, medium term,
and a long term, and then you can look at
how those different things are taxed.
Speaker 1 (31:44):
All right, how about Robert and Florence, is there a
right time or way to talk to my airs about
what inheritance they might receive?
Speaker 2 (31:51):
Well, Robert, this is.
Speaker 1 (31:52):
A loaded question, but a great one because we talk
about it all the time on this show. Communicating with
your family is of the utmost in terms of timing.
I'll just give my answer as someone my wife and
I we have three adult sons, and we have not
shared any of this information, you know, with them yet.
We're a little bit young. They're a little bit young.
(32:12):
But I'd say the first thing to focus on before
you talk about inheritance, make sure your kids are equipped
to handle money well. Make sure that you're happy not
that you micro manage their life, but make sure you're
at least comfortable that they have financial plans of their own,
they're following those plans, they're being responsible with money, they're
(32:35):
not racking up a lot of debt. And then when
you get down the road a little bit, you know,
I think then when you know they're going to be
responsible with anything, you might leave them. I think you
could throw out some round numbers because I think if
they have some just broad numbers to work with, is
they're growing their family, it helps them sit down with
their advisor and do the same kind of planning that
(32:58):
you are doing. In terms of retirement. Hey, if I
know I got a little bit of money coming here,
well that might make some differences. And how I contribute
to ROTH versus regular four to one K, how I
fund kids college educations. So I again, I would say,
first thing is make sure they're handling money correctly or
know how to do so, and then broach the subject
(33:20):
not with guarantees, but broadly speaking, give them a range
of dollars that they're likely going to inherit. That's how
I plan to go about it with my own family.
Speaker 4 (33:30):
And now we'll move on we'll dig a little deeper
into the voicemail bag we have, Bill and blue Ash.
Speaker 1 (33:34):
I have heard that people in my situation can be
over insured or under insured depending on their stage life.
Speaker 2 (33:41):
How do I know if my insurance still makes sense? Yeah,
another great question.
Speaker 4 (33:46):
These are all things that we think of at three
o'clock in the morning when we're staring at the ceiling.
So so, Bill, I think the right way to approach
this is to figure out if something were to happen
to you or your spouse, and or your spouse you
know here in the short run, how much money would
need to range from the sky so that you're you're
whoever you're responsible for, Uh, can can continue the lifestyle?
A lot of times people, you know, we'll buy a
(34:07):
lot of insurance when the kids are young, but then
we hit a stage where where that's kind of over with.
So I always recommend term insurance for term needs. You
can calculate when the kids should be out of college,
assuming that's one of your goals, and you you already
have a piece of paper that shows the exact date
the mortgage goes away, so those are finite dates. You
can look at term insurance for those and then the
rest of it is really, uh, what kind of income
(34:28):
replacement do my dependence need if I am no longer
out there able to earn a salary. And again, you
may have already built up a nest egg that covers it.
If that's the case, you don't really need any more insurance. However,
if there's a gap there, that's where you might be
looking at a more permanent insurance type of a situation.
If there if there will always be a need, or
perhaps there's a there's a person in your life for
whom you are somewhat responsible who will always need some
(34:50):
financial support. Perhaps there's you know, some disabilities or something
like that that requires permanent insurance because you'll need you
will definitely need something to fall from the sky after
your death. But that that's These are all things to
make a situation unique.
Speaker 2 (35:01):
All right, let's hear from Ed and Amberley Village. I'm retired,
but my spouse is still working.
Speaker 4 (35:06):
How do you coordinate a financial plan on one person
is earning and the other one is it?
Speaker 2 (35:10):
Especially with taxes and healthcare in theemics.
Speaker 1 (35:14):
Well Ed, you hit on the two big factors taxes
and healthcare, and those are obviously extremely important things to cover,
and we want to, you know, take care of the
first things.
Speaker 2 (35:23):
First.
Speaker 1 (35:23):
You got to make sure that you've got healthcare coverage
for both of you, and hopefully you're in a situation
where your spouse is still working and you're retired. Hopefully
you can stay on her health care plan until she
retires and hopefully get that bridge built between you know,
now and being able to go on Medicare.
Speaker 2 (35:40):
So that's number one.
Speaker 1 (35:41):
You want to look at that and make sure there's
not any gaps there, you know, being in a situation
where you are potentially without health care coverage. And then
you brought up taxes, and that's where you can sit
down and run through Social Security claiming strategies, how that
impacts your Medicare premiums, What type of assets do you
have that are going to be able to replace one
(36:03):
or both spouse's income. There's a lot of moving parts there,
and I think a good fiduciary advisor can help you,
you know, kind of put the proverbial car up on
the rack, so to speak, and look at what those
potential income sources are, dovetail that with your tax strategy
and your healthcare needs, and then I think you got
a good plan heading into retirement.
Speaker 2 (36:23):
And quickly Diana and Milford has some questions about healthcare.
I've saved well, but Medicare still confuses me. How do
you plan for those costs so they don't sneak up
on you?
Speaker 4 (36:34):
Yeah, So this is where a financial plan comes in.
And I'll throw out a quick quick tip here. When
we build financial plans, we use data from the Medicare
organization themselves. For a single person, we estimate somewhere around
five to six thousand dollars per year in current dollars.
That will account for the Medicare premium, a supplemental policy premium,
and then an estimate of office visits and copays and
(36:54):
all those kinds of things. So about five thousand bucks
maybe ten to eleven for a married couple.
Speaker 1 (36:58):
Coming up next, we're going to hear Bryan's bottom line
where he's going to talk to talk to us about Hey,
why you might be working longer than you might need to.
Speaker 2 (37:07):
This will be great.
Speaker 1 (37:08):
You're listening to Simply Money presented by all Worth Financial
on fifty.
Speaker 2 (37:12):
Five KRC the talk station.
Speaker 6 (37:19):
Moment.
Speaker 1 (37:20):
You're listening to Simply Money presented by all Worth Financial.
I'm Bob sponsorer along with Brian James, and it's time
now for Brian's bottom line lay it on as Brian.
Speaker 2 (37:30):
Well, Bob, I had an attention getter.
Speaker 4 (37:31):
Recently went to a funeral of a client, and it
was kind of a sad situation, of course, as it
always is. But are some of my favorite people just
beyond the financial plan being an interesting thing to put together,
fun puzzle to work on, you know, just professionally speaking,
just fun people to sit around the table with and
solve these problems. But the gentleman who passed on, he
had worked until he was in his mid seventies, loved
(37:53):
what he did, just was highly respected and super enjoyed
his job and really just kind of wanted to get
every last minute out of it. And so he just
finally decided to retire. And unfortunately his wife came down
with some health problems and she was gone in six months,
and very recently I went to his funeral too. So sadly,
these this wonderful couple who have you know, their own
(38:13):
children and grandchildren in the neighborhood, didn't get to enjoy
all of that, with all the free time that they had,
and it just really really got me thinking about priorities.
And I have another meeting of coming up somebody I
haven't met yet, but who I can tell right away.
They've got way more money than they need from the
basic facts that I know about them, and they are
still so worried about running out of money.
Speaker 1 (38:35):
Well, Brian, let's go back to that first couple, because
I remember the day you were in the office. You know,
you had your suit on, ready to go to the funeral,
and I didn't know where you were headed, but I
knew you were headed someplace special, and I could tell
from talking to you that it was weighing heavy on
your heart and mind that day. What could that couple
maybe have done a little bit different, Sure, do the
plan earlier, figure out where you are, you know, And
(38:57):
here's another quick sort of a different couple.
Speaker 2 (38:59):
But the same idea.
Speaker 4 (39:00):
One of the saddest stories in my entire career was
a couple that came in here with They both had
old school pensions with inflation built in, and we did
the whole plan and they realized they could have retired
five or six years earlier. And there were tears. And
usually it's because you know, people cry over this stuff
because it's a relief.
Speaker 2 (39:17):
Oh, I finally made it. I get to run my
life the way I want.
Speaker 4 (39:20):
But it took me a few seconds to realize that
this lady was legit sad because she was not thinking
of all the freedom in the future. She was thinking
of what she had missed in the past because her
grandkids were now getting older and kind of doing their
own thing, and she could have easily taken the time
to spend with them, but never took a breath to
see what position she had put herself in. She simply
hid behind the fact that I just don't the position
(39:43):
of scarcity. There's never enough, never enough, never enough. Well,
she had more than enough and missed out well.
Speaker 1 (39:47):
As I listened to you share those stories, and they're
real stories in your life with your clients. I mean,
I think a lot of times people when they think
of coming to see their financial advisor, they're thinking, all, right,
what are these people are going to tell me that
I can do because I don't have enough money? When
in reality, a lot of times we're encouraging them about
all the things they can and should be doing to
(40:10):
really open up and give them that life of freedom
and joy. In those latter years that they've worked so
hard to earn. Thanks for listening. You've been listening to
Simply Money, presented by all Worth Financial on fifty five KRC,
the talk station
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