August 29, 2025 • 41 mins
Markets are up, Nvidia is booming, and Taylor and Travis are engaged — but what does any of that mean for your financial plan? On today’s episode of Simply Money presented by Allworth Financial, Bob and Brian cut through the noise to show why successful investors don’t chase fads or panic over headlines. From maximizing cash yields to making smart decisions about Roth conversions, inheritances, and even prenups, Bob and Brian explain how discipline and planning — not hype — are what protect and grow wealth.
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Episode Transcript
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Speaker 1 (00:00):
Mark Levin.
Speaker 2 (00:01):
This is why I feel you and I we have
a special relationship. I don't deal well with Washington. I
don't deal well with cliques. Just being honest with you.
Speaker 3 (00:08):
Tonight did ten oh six on fifty five KRC the
talk station.
Speaker 4 (00:18):
Tonight. The second quarter GDP number is out and the
impact one company, one company alone can have on an
entire stock market. You're listening to Simply Money because of
by all Worth Financial lumbob spun seller along with Brian James. Well, Brian,
we got the second quarter GDP number out, you know,
before the open today, and wow, what a revision upward
(00:39):
three point three percent growth in the second quarter versus
the estimates at just three percent. That's a ten percent beat.
You know. Andy Stadd will dig through all the numbers
for us and tell us what happened. But I'm just
seeing a sharp almost thirty percent drop in imports during
the second quarter. Can't imagine why that happened, but that
(01:01):
lifted US GDP growth, you know, by almost five percentage
points for the quarter, you know, over the first quarter.
Speaker 5 (01:07):
Yeah, so with obviously good headlines, enjoy some happy news
while you're drinking your coffee today. So that's a that's
a good, robust rebound following about a half a percent
contraction in Q one. Now, as I recall, the last
time we had a revision, it was downward. It was
a little negative, and that might have been employment numbers. Anyway,
I have a feeling we will not be hearing from
the President as passionately about this revision as we did
(01:27):
the last revision.
Speaker 4 (01:29):
You took the words out of my mouth. And I
know we joke around about this all the time, but
I doubt anyone in the US Commerce Department is going
to get fired today because the first squord good. Let's
just leave that right there, all right, Think of the
stock market like a small lake or a lake. A
small pebble, a smaller company barely makes any ripples, but
when a giant boulder, say a massive company like Navidia,
(01:53):
drops into that lake, it can send waves across the
entire surface, good or bad. Navidia really its second quarter
earnings report after the bell last night, and obviously the
entire financial ward was all ears. Brian walked us through
the numbers.
Speaker 5 (02:10):
Well, So we like catalysts in the stock market, and
AI has been this most recent catalyst for this latest
bull market we're in over these these last couple of years,
and in video is the face of it. In Vidia
is not a new company, by the way, they make
video cards. My kids were into video games way back when,
and I used to field dress computers and they were
just a video card company. Who would have known they've
become what they are now, So reason they're in the
(02:31):
headlines this morning. Bob Is sales in the July quarter
hit forty six point seven billion dollars. That's up fifty
six percent from a year ago, and that's about in
line with analyst estimates. Because, as we all know, all
that matters is were the analysts right? The resultyre irrelevant,
But anyway, hit revenue from their data center segment, which
is really what we're talking about here, not video games.
That includes sales of their most powerful chips which they
(02:53):
used to train and refine these AI models also up
fifty six percent to forty one billion, but slightly lower
than the forty one point four analysts had expected. So
analysts were wrong in that case. I think that's their fault,
not in Video's fault.
Speaker 4 (03:06):
Well, I'm one of those geeks that likes to look
at you know, get under the hood and look at
what actually happened here. And I'm I'm intrigued by this
H twenty chip story because back in April of twenty
twenty five, April of this year, the US Commerce Department
banned exports of that H twenty chip, their most you know,
Navidia's flagship, you know, highly advanced chip to China. They
(03:29):
banned sales of it citing national security, you know concerns.
But then in July the band was reversed. So as
I listened to this earnings report, you know, the second quarter,
there were very few, if any of these H twenty
chips sold to China. So, you know, the bullish case
on Navidia is it's game on now heading into the
(03:50):
third and fourth quarter, because now we can sell these
chips to China. But uh, President Trump and the US
Commerce Department says, that's fine, but you're gonna give us
fifteen percent of the revenue. So it's all part of
this behind the scenes stuff with China, you know, the
ongoing saga of trade negotiations, military negotiation. It's all that Navidia,
(04:12):
which makes up about eight and a half percent of
the S and P five hundred is flat in the
middle of all of this and why that's why it's
so interesting to follow. It's a huge company and has
huge impact on AI, you know, international negotiations, everything.
Speaker 5 (04:28):
Yeah, and the impact on AI what you're really saying, Bob,
what that really means is has huge, huge impact on
just about every industry under the sun, because everybody, every industry,
every company is at least mildly curious about whether they
can be using AI to make things more efficient, to
save money here and there. And Nvidia is in the
position they are because they have just this enormous lead.
They do control about eighty to ninety percent of the
(04:50):
AI chip market. And if we think, we want to
think about the competitors, right, if this is such a
great thing, if AI is such a great thing, then
who else is going to step in here and take
advantage of the propit that are apparently there to be made.
We heard that earlier earlier this year.
Speaker 4 (05:03):
With deep seek.
Speaker 5 (05:04):
Remember when deep Seak hit the headlines earlier this year
and was supposed to be a much more efficient way
of doing the same thing, getting better results with I
don't know, maybe twenty percent of the cost or something
like that. Well, it turned out, is they feel back
the layers. A lot of that was not exactly up
on the up and up, and China had their hands
in it, and all that Deep Seek is still an entity.
It is still doing its thing out there. There are
(05:26):
applications for it, but it's not what we thought it
was going to be when those headlines came out in January.
So at this point, yeah, and Vidia is the lead
here of this biggest industry here. So now we're also
seeing the benefits of fomo fear of missing out pushing
the stock up. People see a stock like in video,
they think, well, everybody else has it, and I keep
hearing about, you know, people of so and so made
a bunch of money in VideA. I don't want to
(05:46):
be the one left out. And the herd tends to
push the stock up just a little bit higher. So
if you find yourself susceptible to that, remember there's a
good chance you already own it. And video makes up
about eight percent of the S and P five hundred.
We've been talking about the difference which between cap weighted
and equal weighted S and P five hundred is cap weighted.
The bigger the company, the bigger it makes up of
the index and video is about eight percent, So you
(06:08):
may already own it. Don't kick yourself too hard.
Speaker 4 (06:11):
Well, most people probably do already own it. If you're
in any kind of S and P five hundred index
fund or growth mutual fund or growth ETF. I mean
you own a sliver of this, and quite frankly a
pretty big sliver. So you're already participating. And I think,
to Brian's point, this is now not the time to
back up the truck and overweight your whole portfolio to
(06:31):
Navidia just because you hear about it in the news
every other day. All right, you're listening to Simply Money,
presented by all Worth Financial. I'm Bob Sponsller along with
Brian James. Let's shift gears packed the good old Cracker Barrel.
Speaker 5 (06:44):
Oh yeah, to Bob.
Speaker 4 (06:46):
We talked about Cracker Barrel earlier this week, the logo
chains and all that. Cracker Barrel has now officially scrapped
its new minimalist logo and is reinstating the beloved old
time er mascot mascot following widespread backlash among the masses. Brian,
what's going on here?
Speaker 5 (07:07):
Well, so what's going on here? Is everything is political
these days. We can't really avoid that, and somehow a
change to a logo removing an old man from a
picture is apparently something that we get really wound up about.
But in any case, this is a it's a marketing decision,
so there is good reason for this. The company has
been the leadership of the company has been making changes
(07:29):
recently because customer traffic was down about the five points.
This goes back four or five years ago. Customer traffic
was down about sixteen percent, and twenty twenty compared to
twenty nineteen, that's not good, right, We want customers to
come in the store, not the stopped coming to the store.
So they started changing things around. They started changing the menu.
There were new new items to order from, and this
was just the latest iteration of something they started five
(07:51):
years ago. And the stock had actually been on a
decent run in response to this, same store sales were
up for a few years. So you wouldn't think a
logo just seems kind of natural. Modernized this a little bit,
so it doesn't look like the nineteen nineties anymore, and
you know, really not a big deal. Let's clean it up,
make it a little simpler. One of the one of
the headlines I saw was, you know what, this logo
with this cartoon of this little old man on it
(08:11):
doesn't look good on a smartphone. It's too busy, so
we need to simplify. Well, that makes logical sense, but
sure enough, that was enough to really honk a lot
of people off about changing changing things that work and
aren't broken and all that kind of thing. So they
have now backed off of it. I'm reminded, Bob of Dud.
Do you remember the Coke the new Coke Classic fiasco?
(08:32):
This is not unlike that, right, So this is the
Coke At least to me, Coke was still worse. Coke
actually changed their formula because they assumed people will follow
us because we are Coke, not because of the way
it tastes. And they were very very, very very wrong.
And if anybody who studied marketing in college has been
taken through that whole case study of how terrible of
(08:52):
an idea that was. That lasted about eleven weeks before
Coke relented and decided to go ahead and put Coke
Classic back on the market. Now there were two and
then they eventually they just quit making New Coke. This
lasted what a couple of days before crackerbil back down.
And again this had nothing to do with the product
that they put on people's tables. That's not it. It's just
a logo. But that's the environment that we're in right now.
(09:12):
So what this has done a little bit has sent
some alarm bells through the marketing industry, you know, the
graphic design industry, the logo design type industry. What can
we get away with? How do we improve things without
really spooking the herd somehow? So it's going to be
really interesting to see how that plays out in that industry.
Speaker 4 (09:28):
I think it'll play out fun. I mean, look this
whole Uncle Hershel themed you know he mentioned nineteen nineties
I'll say seventeen nineties themed, you know, logo with the
cracker with the actual barrel in Uncle Herschel. I think
this is just a key lesson in the hot Brian.
To me, it's marketing one O one. The hardest customer
(09:50):
to get back is the one you already had and
lost because you didn't listen to them. And I think
that's simply what happened here. You get you get a
bunch of young, fire up marketing people, that want to
change the world and do some revolutionary things. And to
your point, you know, the regular cracker barrel crowd is aging.
They're you know, and I'll put myself in that category.
(10:13):
I don't go there all the time, but I'm rapidly
entering into that age category that frequents cracker barrels on
road trips. You know, across America, we're all going to
be dead in twenty to twenty five years. And you
brought this up earlier in the week. You got to
do some things to make your brand and your stores
and your product relevant to bring in the next generation
of customers. I'm all about that, but you also got
(10:37):
to listen to the people that are coming in the
door now, paying the bills now. And to me, there's
a way to do both. Don't alienate your current customers
while growing your customer base. Where am I wrong here?
Speaker 5 (10:52):
So I don't think you're wrong, that's not really the case,
But I think it's just really hard, right, I mean they, Yeah,
who would have thought that something this simp would really
cause the backlash? I would have thought it was. There's
Uncle Herschel. Now we all know who Uncle Herschel is.
Here's what's going to happen, Bob. Their sales are gonna spike.
Coke had that happen too when Coke Classic came back.
People were reminded how much they liked it, and they
(11:12):
kind of felt like they won the battle, and they
went and bought more Coke. So in the long run,
despite it being an embarrassing story for Coke, in the
long run, they made money in it. I would bet
that now that we all know who Uncle Herschel is,
I'll bet the next thing you're going to see is
the return of that Uncle Herschel breakfast meal that hasn't
been on the menu in a while. I don't think
they're going to capitalize on this. They'll figure out how
to market it. But I don't blame them for trying,
(11:34):
because whatever happened to Fudruckers, whatever happened to Bennigan's, all
these restaurants that don't exist anymore, they can't stand pat
The road to restaurant success is paved with failures of
restaurants who didn't all keep things up to date. I
don't blame them for trying. Maybe a bit of a
misstep here, and we know there are always forces out
there who want to politicize absolutely anything they possibly can.
(11:55):
That's our new reality. So they're all going to have
to tap dance through that. Yeah, I agree.
Speaker 4 (12:00):
I think I think they should hire Brian James as
their new chief marketing officer to get him through this.
I mean, we saw the stock pop two and a
half percent. To me, this is kind of traded like
a meme stock, you know, to your point that you
brought up earlier in the week, a lot of political stuff,
you know, all the memes go out and social media.
This is a short term thing. Cracker Barrel will be fine.
(12:21):
They'll put a few healthier items on the menu and
everything will be great. As we told you the other day,
don't put all your eggs in one basket. That's the
all Worth advice here. And hopefully nobody backed up the
truck and bought Cracker Barrel or shorted Cracker Barrel on
any of this news coming out next take a look.
We take a look at why some investors are acting
(12:43):
like it's twenty twenty one not twenty twenty five. You're
listening to Simply Money presented by all Worth Financial on
fifty five KRC the talk station.
Speaker 1 (12:53):
It's one policy going to take our capital back. We're
taking it back after another. You burn a flag, you
get one year in jail. It goes on your record.
Speaker 3 (13:01):
Who knows what he'll check off next fifty five krc Dtopstation.
Speaker 6 (13:06):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 4 (13:25):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob Sponseller along with Brian James and Joe Strecker,
a producer. That's my kind of bumper music right there.
I love it all right. A million dollar inheritance, a
business sale on the horizon, and a listener wondering if
they have enough umbrella insurance. Your questions are answers coming
(13:46):
up in the Ask the Advisor segment at six forty three.
All right, Brian, We've talked for more than two years
about the advantage of parking your safe money in a
high yield savings account. It's been practically a no brainer now.
But did you know according to bank Rate one in
five people still aren't earning any interest on their cash.
(14:08):
This is shocking and somewhat disappointing.
Speaker 5 (14:10):
You know, there are there are not a lot of
things in a financial planning engagement when we sit down
with our clients and kind of put all the puzzle
pieces together. There's not a lot of things that are
black and white, right. Most things are pretty complicated decisions,
and we try to help them, you know, make the
right one by looking at the pros and cons of
each one. This ain't one of them.
Speaker 4 (14:28):
Right.
Speaker 5 (14:28):
If you are still sitting on a passbook savings account
at one of our esteemed large brick and mortar banks
here in this in this town, and you're earning ten
tenth of a percent or a quarter of a percent
or something, that's on you. So why would not people
not do this? There's a separate bank rate survey out here.
Consumers stick with the same bank account for decades even
if better rates are available elsewhere. That's been true for
(14:49):
a long time because it can be a hassle to move.
You gotta change your automatic payments in your direct deposit
and all that kind of stuff. But at the same
time that that has never been more painful of a
missed opportunity than it is right now. You should be
getting even as we're sitting here right now staring a
rate cut in the face, you should still be getting
three to four percent. And I think it'll still be
in that range here in September, when we get this
(15:10):
most likely raycut, we'll see. But in any case, that
is something to look into. That is one of the
things that when I run across the client in this situation,
I tell them this is something you go do today.
Give up in the brick and mortar. You don't need
Unis and maud in that branch at the end of
the street. Go find a different on more online FDIC
insured bank. Get yourself a better interest rate.
Speaker 4 (15:28):
Brian, I have had two conversations, two meetings about this
exact topic with existing clients this week, and we had
two entirely different results, depending on which bank they're dealing with.
Case number one, clients said to me, hey, I've got
money at Bank A. They've been paying me four and
a half percent, but that rate expires at the end
(15:49):
of August. And I told them, go back to the bank,
see what they're going to pay you. Beginning in September
if they keep it, you know, at four and a
half percent or close to it, stick with it, leave
it in there. They called, and the bank said, yep,
we'll leave it right there at about four and a
half percent for the next year. I said, wonderful bank
b said, no, we're going to drop it down too
(16:11):
point eight percent, which is shocking to me because we're
a triple dog.
Speaker 5 (16:16):
Dare you to move it to any other banage.
Speaker 4 (16:18):
Basically saying, please take this money and move it elsewhere,
And that's exactly what we did. So at my point
here is it pays to number one, pay attention and
be shop around a little bit because to your point, Brian,
you should be getting close to, if not a little
bit above four percent on FDIC insured cash, and if
you're not getting it, shop around and make sure you
(16:41):
do because it does make a difference.
Speaker 5 (16:43):
Yeah, and I would say, yes, we are probably entering
the market looks like it thinks we're entering a rate
declining environment, but that doesn't mean this opportunity goes away overnight.
There will still be better opportunities. You might be thinking
of the past, you know, really fifteen years where there
wasn't the money market rates were lightly higher than the
past BOW grades, but none of them were worth even
(17:03):
sniffing around. Well, that era ended about three or four
years ago, and we're still in it, so take advantage
you still can't.
Speaker 4 (17:10):
You're listening to simply Money, presented by all Worth Financial
Bob Sponsller along with Brian James. Brian, let's talk about
EYE bonds a little bit. I mean, I remember back
in twenty one and twenty two, when inflation spiked, I
bonds were the hottest thing in town. We had clients
move into them. We actually advocated for these things, and
things have changed a little bit since then.
Speaker 5 (17:31):
O MG, Bob, I bonds are so twenty twenty one,
you are so behind the times. We're going to talk
about these now. The reason we got excited about it.
EYE stands for inflation. The interest rate on these are
government savings bonds, no different really than your EE bonds
and H bonds and all that other stuff that we
haven't talked about in a very long time. But because
I bond's return was calculated off of inflation, they got
(17:52):
really pretty They were seven eight percent, sometimes even close
to ten percent for a very brief period of time there,
and so for retirees who were used to earning no
thing in their savings accounts but really wanted to guaranteed
it was. It was really like striking gold. Treasury Direct
is the government's website for this that most people hadn't
heard of until this happened in twenty twenty one. That
sight even crashed because so many people wanted to jump
into it. But those same eyebonds, if you hung on
(18:15):
to them, and I remember, we were never locking in
eyebonds for nine percent for thirty years or anything like that,
that wasn't a thing. The shine has kind of worn off.
Those same eyebonds, if you've left them alone, are now
around two point eight six percent, and that's what you're
getting until at least the end of October, and they'll
recalculate the rate at that point. So what do we
do if we have these things?
Speaker 4 (18:33):
Bob Well, I think it depends on everybody's individual situation
and what percentage of their portfolio they have in these things.
I'm always in the keep it simple camp wherever possible.
So if you've got I don't know, a small amount
ten fifteen, twenty thousand dollars sitting in these things at
two point eight six percent or whatever it is, and
(18:56):
they mature in October. Just leave the money there, let
it mature, but then be prepared to do something else
with that money. I mean others would say, hey, move it,
pay the penalty, get a higher rate of return. What
are your thoughts? Well.
Speaker 5 (19:11):
Thing to remember too, I don't think this is disagonizing
of a decision is these were never life changing. The
nine percent was eye popping, but remember that stuff works.
You can only buy ten thousand dollars worth of then
you could get up to fifteen thousand if you creatively
overpaid your taxes and use your tax refund to buy more.
This is not life changing money. We're talking at the
best nine hundred one thousand bucks of extra income for
(19:32):
a very small period of time. So don't agonize too
much about this stuff. It was a fun thing while
it lasted, but it was never going to change your life.
So focus more on what on your bigger picture, What
do you need your assets to do, and what's the
appropriate level of risks so you can either grow it
or preserve the capital depending on what you want.
Speaker 4 (19:48):
Yeah, and what we're really talking about here is if
you cash out of those things within the five year
holding period, you lose the last three months of interest.
That's why I say, you know, in most cases for
these small dollar amounts, just let it go, but pay
attention because you got to move this money somewhere else,
you know, because rates are too low. All right? Did
you hear Brian Travis and Taylor are engaged. Did you
(20:12):
know that? Yeah?
Speaker 5 (20:12):
I heard it once or twice or a thousand times.
Speaker 4 (20:15):
All right. When millions meet marriage, love is just the
beginning the financial planning. That's where things can get interesting,
and we'll talk about it next. You're listening to Simply Money,
presented by all Worth Financial on fifty five KARC, the
talk station.
Speaker 1 (20:29):
Every hour something is happening.
Speaker 6 (20:32):
I don't like.
Speaker 1 (20:33):
What's happening. Is something in our city, happening in our hometown.
Speaker 4 (20:36):
Check in all day, whenever and wherever a possible.
Speaker 3 (20:38):
It's always something, always will be fifty five KRC the
talk station.
Speaker 1 (20:45):
They were born RCI an iHeartRadio station.
Speaker 4 (20:53):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob sponseller along with Brian James. So the news
is officially out. Taylor Swift and Travis Kelcey are engaged.
Oh my god, Oh my god, Oh my god, Oh
my god, oh my god. Bob, oh stop, please stop,
make it stop.
Speaker 5 (21:10):
I'm gonna do that all day.
Speaker 4 (21:12):
But while everyone's focused on the six hundred and fifty
thousand dollars ring the proposal, maybe where they're registered, we
are financial nerds, so of course our first thought is,
how are these two going to handle the money? Show
me the money. It's a real world example of what
happens when two financially independent people, each with significant wealth,
(21:33):
even though Taylor's the billionaire in this situation, decide to
get married. Brian, let's run through the list. Maybe people
will pay attention now because we're talking about Taylor and Travis.
Speaker 5 (21:44):
Who cares about any of that stuff?
Speaker 4 (21:45):
Bob?
Speaker 5 (21:46):
What is her dress gonna look like? Let's talk about
the things that matter. I know this is what you
think about on your ride home every day. Now, so
we all would prefer to believe that love is enough
to put a marriage together. But this is gonna be
a really interesting situation. Whenever these types of unions happen,
there tends to be great stories for us financial planners
to talk about. We often hear this will be a
(22:07):
unique one, because obviously these are two pretty powerful people,
some of the most powerful we've kind of really ever seen,
getting together. But plenty of crazy stories for regarding state
planning and things like that from celebrities who did not
do any planning. So anyway, when you come to a
marriage with significant assets and a significant situation, a complicated
situation on both sides, first of all, you need to
(22:29):
know what that is. What do you own versus what
does your new spouse own? What do you owe? What
are the income streams? Do you already have any trust
to state plans or other existing obligations that are going
to dictate things. Or maybe, and this is the whopper, Bob,
maybe there's kids from a previous marriage. And the reason
that can be a little bit scary is because a
lot of times we might assume, you know that that
if I pass away, I hit by a bus, which
(22:50):
we don't assume that often enough anyway, and we don't
plan ahead. But if we assume that if that happens,
then magically my kids are gonna get everything. I've seen
situations where people have effectively accident only disinherited their kids
by just knee jerk naming their new spouse as their beneficiary. Well,
that effectively disinherits their kids. That new spouse may decide,
you know that, oh this the these kids should get
(23:12):
some of the money from their parent, but they don't
have to. That's that's a major assumption. So this is
where trusts and prenuptial agreements and all those kinds of
things come in.
Speaker 4 (23:20):
All right, speaking of the pre nup, the financial plan
no one wants to talk about. Have you ever helped
clients or advise clients to set up a pre nup?
I've got a couple stories, but I want to know
have you ever been involved in this and what I
have result?
Speaker 5 (23:34):
Yeah, I've I've there have been several situations where I've said, hey,
you really ought to look at this and figure out
And it's more about describing here's your situation. If you
do nothing, here's what's gonna happen. If that's what you want, cool,
go get it. If that doesn't make any sense, then
go talk to a lawyer today.
Speaker 4 (23:48):
All right, Well, I've got two I've got two situations
I can draw on. One ended up in an absolute
disaster and the other one was successful. And in both cases,
because you know, I was dealing with widow client. And
I had known them and I'd known their husbands who
passed away for years and years and years, and I
knew as soon as the widow talked to me about
(24:09):
her new boyfriend soon to be husband, YadA, YadA, YadA,
I knew that there were potential problems here. I could
just tell, and I advised, get a prenup, get a prenup,
get a prenup. One of them listened to me, and
one of them didn't, and the one that didn't ended up.
I mean, she started this relationship with about three and
(24:30):
a half to four million dollars and Brian, I am
not joking here. This woman today is borderline homeless, penniless
because she allowed a predatory relationship to come in and
just stripperr of everything. The other one, and both of
these second marriages ended up in divorce and ugly divorces.
(24:51):
By the way, the second one did listen, did get
a prenup, did protect you know, her assets, and she's
in great shape. So this stuff is really important on
the front end to talk about and make sure your
family and frankly yourself are protected in these second marriage
situations or first marriages in the case of you know
(25:12):
Taylor Swift and and you know travel.
Speaker 5 (25:16):
What excited I can't get the names. Yeah, now, these
are real situation. This is this is where it does
go wrong. And quite frankly, if your if your potential
new spouse is not willing to have this discussion, that's
a bit of a red flag for me.
Speaker 4 (25:29):
Right.
Speaker 5 (25:29):
We we all need to support each other and understand
the stresses that will come in a situation like this,
and if we can lay it all out in advance.
Speaker 4 (25:36):
Or if your new husband or potential new husband has
no money and has massive credit card bills, uh, that's
a small red flag as well.
Speaker 5 (25:46):
Yeah, you'll continue. Let me throw that story out. I
got I have a I have a great story for that.
And this is just kind of a cautionary tale. Had
a situation this is probably four or five years ago
where client came in, uh, in tears because her husband
had died. First of all, he was a client of
mine too, and that would that out of the blue.
He was on the younger end. But she found out,
unfortunately that he had run up eighty thousand dollars worth
of credit card debt betting the ponies. And this stuff
(26:08):
does happen in his real life situations, and she was
starting to get credit card calls from the credit card companies.
She had no obligation to pay those debts, right, she
did not know they exist. Her name was not on
those accounts. Just because she's married to a person with
debt does not make that her debt. However, that doesn't
stop the credit card company from chasing after you to
try to get you to write a check for it,
(26:29):
because most people assume, well, this is debt and it's
got my name and address on it, or my husband's name,
therefore it must be mine. So anyway, lots of things
to be concerned about there. Now we have wandered well
away from what Travis and Taylor are going to be
worried about. I'm pretty sure that that's not really going
to be a problem for them.
Speaker 4 (26:44):
Well, I mean, they're both in a situation where they
don't need the other person's money. So I mean, what
we deal with every day here in Cincinnati in the
real world is people that actually need their money to survive.
So I think the key here is communication and transparency.
And if you are going to go into either a
first or a second marriage, you got to understand what
(27:06):
the roles are gonna be from a financial standpoint, how
you're gonna communicate, how you're gonna commingle assets, if at all,
And just make sure everybody's walking into this with eyes
wide open so there are no you know, horrible surprises
down the road, because it can get very ugly, especially
in the second marriage situations where there's a lot of
(27:27):
money on the line. And let's face it, Brian, people
want to get married for a whole variety of reasons
and sometimes they don't think about money.
Speaker 5 (27:35):
That's exactly right. Got to make sure we understand all
the moving parts, and it's more, it's about more than
just love.
Speaker 4 (27:40):
All right, here's the all Worth advice. When two financially
successful people get married, the smartest thing they can do
is plan like a team, because love without clarity is
a risk no millionaire should take. All right, Sandy just
inherited a million dollar account, Marty's thinking about selling his business,
and Jim and Lisa to pass wealth to their kids.
(28:02):
What do they all have in common? Big financial questions
that we're gonna attempt to have answers to. Next you're
listening to simply money presented by all Worth Financial on
fifty five KRC, the talk station.
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Coach my daughter's softball team. I always tune in.
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I'm always driving.
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Talk STATIONRC.
Speaker 4 (28:50):
You're listening to Simply Money, presented by all Worth Financial
on Bob Sponseller along with Brian James. Do you have
a financial question you'd like for us to answer? There
is a red button you can click while you're listening
to the show right on the iHeart app. Simply record
your question and it will miraculously come straight to us.
All right, we're gonna leave things off with Sandy and Westwood. Brian.
(29:12):
Sandy says, we've just inherited a million dollar brokerage account
from my father. How do we figure out what to
keep versus what to sell without triggering a massive tax bill?
Speaker 5 (29:23):
A Hi, Sandy and Westwood. You just reminded me that
I haven't been over to that cool brewery over there
in that new little downtowny area of Westwood. I need
to get back over there. But anyway to your question,
you inherited a million dollar brokerage account. I want to
make sure we're using the right words, because these things
get thrown around all the time. I am interpreting inherited
to mean my father. Your father passed away and you
inherited this as a process of settling his estate. Sometimes
(29:46):
people say they inherited something, what they really mean is
this was given to me while my parent was still alive.
And there's an extreme important difference between these two. So
you're worried about a massive tax bill, where we assume
we're talking about some kind of taxable account. This is
not on an IRA. It's not a four toh one
k not kind of tax sheltered account. It's a taxable account.
If that is indeed the case, then I have good
(30:07):
news for you. You probably don't have much of a
bill at all, or at least not as much as
you think you might, because when you inherit a taxable
account in this manner, again, inherit not gift, then that
means the investments that are held in there, it's as
if you bought them on the day that your father
passed away. So if he bought this stuff thirty forty
years ago and it's got some kind of ridiculous gains
(30:27):
in it, well, congratulations. That all gets wiped out for
tax purposes and it becomes as if you bought it
on that day. Now, let's talk about the other side.
If you are indeed talking about a during life gift,
while he's still alive, he handed it to you. Now
you've inherited his cost basis. So if that is the case,
if he's still with us or was at the time
of the gift, then you will be obligated to pay
(30:48):
taxes on the gain of what he put between what
he paid for it and whatever you sell it for. Now,
the gift itself is not taxable. As soon as that
lands in your lap, you're not going to paying taxes
on that. But if you do exercise and sell, then
you'll be worded of capital gain. So I hope it's
the former, not the latter. Let's move on to Marty
and Terrace Park. Marty's going to be selling a business
in a couple of years, and he's wondering, when, you know,
(31:09):
knowing that that's on the horizon, when should he start
setting up structures Bob, like you know, donor advice fund,
family foundation? Should that be now? Should we wait? What
do you think?
Speaker 4 (31:17):
I think the discussions and the plannings should start now, Marty.
And you know, I'm assuming if you already have a business,
you probably have a good CPA. I would sit down
with him or her right now, and I would also
get a good fiduciary financial advisor to map out your
retirement and tax strategy, investment planning, and then in a
perfect world, which is what I love to see all
(31:38):
the time, we are partnering with the CPA. We're comparing ideas,
we are collaborating, and we're coming up with a well
thought out strategy in advance. A couple of things to
you know, make you aware of And I've lived through
this myself. So depending on whether you're dealing with an
S corporation or a C corporation, what kind of corporation
you have, there are different tax laws that dictate what
(32:01):
you can do in terms of avoiding capital gains taxes
ahead of time. You know, prior to selling the company.
So that's why you want to get with your CPA
right now. Let him or her know what's on your
mind here. You brought up things like donor advice, funds,
family foundations, you know, charitable remainder trust or another option.
All good things, But start getting your ducks in a
(32:22):
row before you even think about listing that business because
the structures make a big difference in your tax treatment.
You know that you ultimately get when it's time to
pull the trigger. Hope that helps get a CPA and
a good fiduciary financial advisor. And I think with a
two year runway, you should be in great shape if
you start to do a little planning now. All right,
(32:45):
Jim and Lisa and Mason say, we want to transfer
wealth to our kids gradually, but we're worried about spoiling
spoiling them. Are there strategies that let us provide support
now but still keep them motivated? Brian, what say you?
Speaker 5 (32:59):
Yeah? So this is it? Sounds like Jim and Lisa
you've built a pretty solid situation for yourselves. You didn't
kind of lead off your question with any worries about,
you know, stressing about how are we going to make
ends meet those kinds of things you're already talking about
transferring wealth. We don't know how old these kids are,
or frankly, how old Jim and Lae are, but we
know that they've they've apparently got enough that they want
to start thinking about what their kids are, not worried
(33:20):
about themselves anymore. How do we transition this to the
next level? What I would say, I'm going to start
by saying, because I've done this and it's been great
for our family, if your kids are mature enough and
old enough to handle it, and especially if they've noticed
that maybe they're they're fortunate, and when what they have
and what your family's lifestyle is, then I would say this,
that could be a really really good time to pull
(33:42):
back the curtain on the vault, show them what's in there,
and then more importantly, remind him how it got there.
I think that is a great way if they've perceived
that life is just easy, because by the time they
were old enough to pay attention, you might have gotten
your careers to a point where maybe you could kind
of slow down a little bit, versus when you were
in your early twenties and you know, really kind of
in the middle of the grind, but remind them that
(34:03):
what those times are like and that they're going to
start there too. But in terms of mechanical things, one
of my favorite things to do nowadays is I really
love the five twenty nine approach. And I know our
brains go to college. You might be thinking, I don't
want to tie it all down for college. I want flexibility.
Remember in twenty twenty four a new rule went into
place that said that up to thirty five thousand dollars
inside of five twenty nine, if it's not used for college,
(34:25):
can then become annual contributions to a wroth IRA for
those kids. So that's going through That will necessarily require
that it transferred to your kids gradually, but you can
get tax free growth and this this this gets you
around the income requirement, right, You don't have to have
an income requirement to fund a wrath So fund it now.
Maybe they're not even old enough to have any income,
(34:46):
but you're pre funding their roth IRA contributions well into
the future. So that's a fantastic way. And plus they
can't touch it up till the fifty nine and a half,
so you're not teeing them up for an easy life.
You know, as soon as they get out there on
their own, so great opportunity.
Speaker 4 (34:59):
You're no fun. Brian.
Speaker 5 (35:01):
I do my best.
Speaker 4 (35:01):
Bob.
Speaker 5 (35:03):
Let's see how much damage you can do for Sam
and Florence who says he's got about two million dollars
in iras and he's wondering about partial Wroth conversions. You
know that that's something they can bump them into a
higher tax bracket. But is that worth it?
Speaker 4 (35:17):
Well, I'm gonna give Sam our favorite answer. It depends,
you know, Meaning Sam, I think you gotta use some
good planning and software and maybe a good fiduciary advisor
to help you look into the future a little bit.
Here's what I mean, depending on what you plan to
spend you and your wife planning to spend in retirement,
what your various sources of income are, what your asset
(35:38):
base is. You know you mentioned the two million in iras.
What other stuff do you have? Factor in social Security?
Do you have any existing wroth accounts or taxable brokerage accounts?
My point here look at crafting an income strategy. At first, Blush.
I hate seeing people pay extra taxes in a high bracket.
Just to avoid taxes later. But if we can get
(36:01):
it in some cases it makes sense. But again, run
the numbers, look at what your taxes are likely to
be today and in the future when those rmds start,
and hopefully you can come up with a good strategy
to kind of do both get some money in that
wroth bucket and do it at a lower tax bracket.
All right, think life slows down after age sixty five
(36:24):
For one famous investor, that's exactly when things took off.
And we'll explain what made the difference and what it
could mean for the rest of us. You're listening to
Simply Money and presented by all words financial on fifty
five KARC, the talk station, Mark Levin.
Speaker 2 (36:41):
You know, America, we spend an awful lot of time
in this country responding to an unreality created by the
people who hate America, created by people who get sucked
into the narratives that are pushed out there each and
every day. And they're posting, and they're posting, and they're posting,
and then move on to the next thing and the
next thing.
Speaker 4 (37:00):
Actually, that's what the media enemy do.
Speaker 3 (37:02):
Mark Levin tonight at ten oh six on fifty five
KRC the talk station. Problem with socialism is that you
eventually run out of other people's money. Talk about it
here fifty five KRC the talk station.
Speaker 4 (37:20):
You're listening to Simply Money by all Worth Financial on
Bob Sponseller along with Brian James Well. Legendary investor Warren
Buffett turns ninety five years of age on Saturday, and
much of his wisdom is unmatched. And as we honor
the Oracle of Omaha, there's another nugget of wisdom we
want to talk about. He didn't stop working at sixty
(37:42):
five like many many people want to, or plan to,
or aspire to. Brian Warren Buffett's story is absolutely fascinating.
Talk about what this man has done post age sixty five.
Speaker 5 (37:56):
Yeah, that's really the headline here, isn't it. So in
August of nineteen ninety five, I've Warren Buffett turned sixty five,
So I feel like I've been around the block of
time or two. I'm sneaking up on thirty years in
this industry. But we're talking about when I was in college.
That's when he turned sixty five. And again that's when,
like you said, that's when most people just think they're
going to hang it up. At that time, his steak
in Berkshire Hathaway was valued about twelve billion dollars, and
(38:18):
if you translate that today, that's twenty five billion.
Speaker 4 (38:20):
Now.
Speaker 5 (38:20):
Those are solid dollars in there's solid dollars now. However,
what's absolutely staggering is what happened next. About ninety five
percent of his wealth that he's got now was created
after he turned sixty five. So fast forward to today,
that Berkshire steak has ballooned to about one hundred and
forty billion dollars. That translates to about thirty times growth
in the company's stock. That alone is ninety nine percent
(38:42):
of his net worth, just that particular steak, which didn't
occur again until after nineteen ninety five.
Speaker 4 (38:46):
So, Brian, is the all Worth advice therefore, to never
stop working, never retire, just keep working, keep piling up money,
keep finding investments that will double every three years. Is
that that's what we're telling people to.
Speaker 5 (38:59):
Dontil you are cold in the grave, right, rise and
grind even out of a coffin, is what we call that. No,
of course not, this is not this is what this is.
This is all Warren Buffett knows how to do. Obviously,
he's well known as being as a pretty strong family
man as well, so he certainly had his impact felt
in a lot of different places. This was just him.
(39:19):
But the point of all of this is most people,
a lot of people don't know when they have enough,
and that he was never about having enough. He gave
it all away not long ago, and then reinvented it
all again, and he's already told his grandchildren they're not
going to get much out of it, because that was
never his goal. But I have a conversations a lot,
and I'm sure you do with people who we realized
could have retired a couple of years ago, maybe earlier
than that, because they never sat down and looked at
(39:42):
the forest for the trees, because they were just so
fixated on whatever I have is not enough and it's
all going to go poof tomorrow. That is rarely the case.
Anybody who's listening to this show has gone and sought
out educational financial information and it is probably in better
shape than they've allowed themselves to be. And some of
you are listening right now and going, yeah, that could
be me. I want to hire now. But I've never
taken the time to look well do it.
Speaker 4 (40:03):
Yeah, having that purpose is the key. And in the
case of Warren Buffett, I mean, obviously the man has
a gift for creating wealth, but as importantly it's what
he's done with the wealth that has mattered. Since two
thousand and six, he's donated over sixty billion dollars worth
of Berkshire stock to charities like the Gates Foundation and
his own family foundations. He saw that as his purpose,
(40:25):
create wealth, but use that wealth to benefit others. And
I guess the message we're trying to send today there's
never you never need to feel like you're done doing that.
Find your purpose and just keep following through on that,
whatever it is, for as long as you can. You've
been listening to Simply Money presented by all Worth Financial
on fifty five KRC, the talk station News when it happens,
(40:50):
Breaking news Tonight, we are coming to.
Speaker 1 (40:52):
You live news when you need it. You're going to
want to listen to this news when you least expected.
Speaker 3 (40:58):
You've never quite seen anything like this, keeping you up
to date on what's happening.
Speaker 1 (41:02):
This is going to be quite the event tonight, and
you're gonna want to make sure you leave the house.
Speaker 3 (41:05):
Extra early, locally, nationally, everywhere in between. I don't know
what I would do without it.
Speaker 1 (41:11):
Fifty five KRC the talk station.
Speaker 5 (41:16):
It's former Bengal and Pro Football Hall of Fame or
Anthony Munos
Mark Levin.
Speaker 2 (00:01):
This is why I feel you and I we have
a special relationship. I don't deal well with Washington. I
don't deal well with cliques. Just being honest with you.
Speaker 3 (00:08):
Tonight did ten oh six on fifty five KRC the
talk station.
Speaker 4 (00:18):
Tonight. The second quarter GDP number is out and the
impact one company, one company alone can have on an
entire stock market. You're listening to Simply Money because of
by all Worth Financial lumbob spun seller along with Brian James. Well, Brian,
we got the second quarter GDP number out, you know,
before the open today, and wow, what a revision upward
(00:39):
three point three percent growth in the second quarter versus
the estimates at just three percent. That's a ten percent beat.
You know. Andy Stadd will dig through all the numbers
for us and tell us what happened. But I'm just
seeing a sharp almost thirty percent drop in imports during
the second quarter. Can't imagine why that happened, but that
(01:01):
lifted US GDP growth, you know, by almost five percentage
points for the quarter, you know, over the first quarter.
Speaker 5 (01:07):
Yeah, so with obviously good headlines, enjoy some happy news
while you're drinking your coffee today. So that's a that's
a good, robust rebound following about a half a percent
contraction in Q one. Now, as I recall, the last
time we had a revision, it was downward. It was
a little negative, and that might have been employment numbers. Anyway,
I have a feeling we will not be hearing from
the President as passionately about this revision as we did
(01:27):
the last revision.
Speaker 4 (01:29):
You took the words out of my mouth. And I
know we joke around about this all the time, but
I doubt anyone in the US Commerce Department is going
to get fired today because the first squord good. Let's
just leave that right there, all right, Think of the
stock market like a small lake or a lake. A
small pebble, a smaller company barely makes any ripples, but
when a giant boulder, say a massive company like Navidia,
(01:53):
drops into that lake, it can send waves across the
entire surface, good or bad. Navidia really its second quarter
earnings report after the bell last night, and obviously the
entire financial ward was all ears. Brian walked us through
the numbers.
Speaker 5 (02:10):
Well, So we like catalysts in the stock market, and
AI has been this most recent catalyst for this latest
bull market we're in over these these last couple of years,
and in video is the face of it. In Vidia
is not a new company, by the way, they make
video cards. My kids were into video games way back when,
and I used to field dress computers and they were
just a video card company. Who would have known they've
become what they are now, So reason they're in the
(02:31):
headlines this morning. Bob Is sales in the July quarter
hit forty six point seven billion dollars. That's up fifty
six percent from a year ago, and that's about in
line with analyst estimates. Because, as we all know, all
that matters is were the analysts right? The resultyre irrelevant,
But anyway, hit revenue from their data center segment, which
is really what we're talking about here, not video games.
That includes sales of their most powerful chips which they
(02:53):
used to train and refine these AI models also up
fifty six percent to forty one billion, but slightly lower
than the forty one point four analysts had expected. So
analysts were wrong in that case. I think that's their fault,
not in Video's fault.
Speaker 4 (03:06):
Well, I'm one of those geeks that likes to look
at you know, get under the hood and look at
what actually happened here. And I'm I'm intrigued by this
H twenty chip story because back in April of twenty
twenty five, April of this year, the US Commerce Department
banned exports of that H twenty chip, their most you know,
Navidia's flagship, you know, highly advanced chip to China. They
(03:29):
banned sales of it citing national security, you know concerns.
But then in July the band was reversed. So as
I listened to this earnings report, you know, the second quarter,
there were very few, if any of these H twenty
chips sold to China. So, you know, the bullish case
on Navidia is it's game on now heading into the
(03:50):
third and fourth quarter, because now we can sell these
chips to China. But uh, President Trump and the US
Commerce Department says, that's fine, but you're gonna give us
fifteen percent of the revenue. So it's all part of
this behind the scenes stuff with China, you know, the
ongoing saga of trade negotiations, military negotiation. It's all that Navidia,
(04:12):
which makes up about eight and a half percent of
the S and P five hundred is flat in the
middle of all of this and why that's why it's
so interesting to follow. It's a huge company and has
huge impact on AI, you know, international negotiations, everything.
Speaker 5 (04:28):
Yeah, and the impact on AI what you're really saying, Bob,
what that really means is has huge, huge impact on
just about every industry under the sun, because everybody, every industry,
every company is at least mildly curious about whether they
can be using AI to make things more efficient, to
save money here and there. And Nvidia is in the
position they are because they have just this enormous lead.
They do control about eighty to ninety percent of the
(04:50):
AI chip market. And if we think, we want to
think about the competitors, right, if this is such a
great thing, if AI is such a great thing, then
who else is going to step in here and take
advantage of the propit that are apparently there to be made.
We heard that earlier earlier this year.
Speaker 4 (05:03):
With deep seek.
Speaker 5 (05:04):
Remember when deep Seak hit the headlines earlier this year
and was supposed to be a much more efficient way
of doing the same thing, getting better results with I
don't know, maybe twenty percent of the cost or something
like that. Well, it turned out, is they feel back
the layers. A lot of that was not exactly up
on the up and up, and China had their hands
in it, and all that Deep Seek is still an entity.
It is still doing its thing out there. There are
(05:26):
applications for it, but it's not what we thought it
was going to be when those headlines came out in January.
So at this point, yeah, and Vidia is the lead
here of this biggest industry here. So now we're also
seeing the benefits of fomo fear of missing out pushing
the stock up. People see a stock like in video,
they think, well, everybody else has it, and I keep
hearing about, you know, people of so and so made
a bunch of money in VideA. I don't want to
(05:46):
be the one left out. And the herd tends to
push the stock up just a little bit higher. So
if you find yourself susceptible to that, remember there's a
good chance you already own it. And video makes up
about eight percent of the S and P five hundred.
We've been talking about the difference which between cap weighted
and equal weighted S and P five hundred is cap weighted.
The bigger the company, the bigger it makes up of
the index and video is about eight percent, So you
(06:08):
may already own it. Don't kick yourself too hard.
Speaker 4 (06:11):
Well, most people probably do already own it. If you're
in any kind of S and P five hundred index
fund or growth mutual fund or growth ETF. I mean
you own a sliver of this, and quite frankly a
pretty big sliver. So you're already participating. And I think,
to Brian's point, this is now not the time to
back up the truck and overweight your whole portfolio to
(06:31):
Navidia just because you hear about it in the news
every other day. All right, you're listening to Simply Money,
presented by all Worth Financial. I'm Bob Sponsller along with
Brian James. Let's shift gears packed the good old Cracker Barrel.
Speaker 5 (06:44):
Oh yeah, to Bob.
Speaker 4 (06:46):
We talked about Cracker Barrel earlier this week, the logo
chains and all that. Cracker Barrel has now officially scrapped
its new minimalist logo and is reinstating the beloved old
time er mascot mascot following widespread backlash among the masses. Brian,
what's going on here?
Speaker 5 (07:07):
Well, so what's going on here? Is everything is political
these days. We can't really avoid that, and somehow a
change to a logo removing an old man from a
picture is apparently something that we get really wound up about.
But in any case, this is a it's a marketing decision,
so there is good reason for this. The company has
been the leadership of the company has been making changes
(07:29):
recently because customer traffic was down about the five points.
This goes back four or five years ago. Customer traffic
was down about sixteen percent, and twenty twenty compared to
twenty nineteen, that's not good, right, We want customers to
come in the store, not the stopped coming to the store.
So they started changing things around. They started changing the menu.
There were new new items to order from, and this
was just the latest iteration of something they started five
(07:51):
years ago. And the stock had actually been on a
decent run in response to this, same store sales were
up for a few years. So you wouldn't think a
logo just seems kind of natural. Modernized this a little bit,
so it doesn't look like the nineteen nineties anymore, and
you know, really not a big deal. Let's clean it up,
make it a little simpler. One of the one of
the headlines I saw was, you know what, this logo
with this cartoon of this little old man on it
(08:11):
doesn't look good on a smartphone. It's too busy, so
we need to simplify. Well, that makes logical sense, but
sure enough, that was enough to really honk a lot
of people off about changing changing things that work and
aren't broken and all that kind of thing. So they
have now backed off of it. I'm reminded, Bob of Dud.
Do you remember the Coke the new Coke Classic fiasco?
(08:32):
This is not unlike that, right, So this is the
Coke At least to me, Coke was still worse. Coke
actually changed their formula because they assumed people will follow
us because we are Coke, not because of the way
it tastes. And they were very very, very very wrong.
And if anybody who studied marketing in college has been
taken through that whole case study of how terrible of
(08:52):
an idea that was. That lasted about eleven weeks before
Coke relented and decided to go ahead and put Coke
Classic back on the market. Now there were two and
then they eventually they just quit making New Coke. This
lasted what a couple of days before crackerbil back down.
And again this had nothing to do with the product
that they put on people's tables. That's not it. It's just
a logo. But that's the environment that we're in right now.
(09:12):
So what this has done a little bit has sent
some alarm bells through the marketing industry, you know, the
graphic design industry, the logo design type industry. What can
we get away with? How do we improve things without
really spooking the herd somehow? So it's going to be
really interesting to see how that plays out in that industry.
Speaker 4 (09:28):
I think it'll play out fun. I mean, look this
whole Uncle Hershel themed you know he mentioned nineteen nineties
I'll say seventeen nineties themed, you know, logo with the
cracker with the actual barrel in Uncle Herschel. I think
this is just a key lesson in the hot Brian.
To me, it's marketing one O one. The hardest customer
(09:50):
to get back is the one you already had and
lost because you didn't listen to them. And I think
that's simply what happened here. You get you get a
bunch of young, fire up marketing people, that want to
change the world and do some revolutionary things. And to
your point, you know, the regular cracker barrel crowd is aging.
They're you know, and I'll put myself in that category.
(10:13):
I don't go there all the time, but I'm rapidly
entering into that age category that frequents cracker barrels on
road trips. You know, across America, we're all going to
be dead in twenty to twenty five years. And you
brought this up earlier in the week. You got to
do some things to make your brand and your stores
and your product relevant to bring in the next generation
of customers. I'm all about that, but you also got
(10:37):
to listen to the people that are coming in the
door now, paying the bills now. And to me, there's
a way to do both. Don't alienate your current customers
while growing your customer base. Where am I wrong here?
Speaker 5 (10:52):
So I don't think you're wrong, that's not really the case,
But I think it's just really hard, right, I mean they, Yeah,
who would have thought that something this simp would really
cause the backlash? I would have thought it was. There's
Uncle Herschel. Now we all know who Uncle Herschel is.
Here's what's going to happen, Bob. Their sales are gonna spike.
Coke had that happen too when Coke Classic came back.
People were reminded how much they liked it, and they
(11:12):
kind of felt like they won the battle, and they
went and bought more Coke. So in the long run,
despite it being an embarrassing story for Coke, in the
long run, they made money in it. I would bet
that now that we all know who Uncle Herschel is,
I'll bet the next thing you're going to see is
the return of that Uncle Herschel breakfast meal that hasn't
been on the menu in a while. I don't think
they're going to capitalize on this. They'll figure out how
to market it. But I don't blame them for trying,
(11:34):
because whatever happened to Fudruckers, whatever happened to Bennigan's, all
these restaurants that don't exist anymore, they can't stand pat
The road to restaurant success is paved with failures of
restaurants who didn't all keep things up to date. I
don't blame them for trying. Maybe a bit of a
misstep here, and we know there are always forces out
there who want to politicize absolutely anything they possibly can.
(11:55):
That's our new reality. So they're all going to have
to tap dance through that. Yeah, I agree.
Speaker 4 (12:00):
I think I think they should hire Brian James as
their new chief marketing officer to get him through this.
I mean, we saw the stock pop two and a
half percent. To me, this is kind of traded like
a meme stock, you know, to your point that you
brought up earlier in the week, a lot of political stuff,
you know, all the memes go out and social media.
This is a short term thing. Cracker Barrel will be fine.
(12:21):
They'll put a few healthier items on the menu and
everything will be great. As we told you the other day,
don't put all your eggs in one basket. That's the
all Worth advice here. And hopefully nobody backed up the
truck and bought Cracker Barrel or shorted Cracker Barrel on
any of this news coming out next take a look.
We take a look at why some investors are acting
(12:43):
like it's twenty twenty one not twenty twenty five. You're
listening to Simply Money presented by all Worth Financial on
fifty five KRC the talk station.
Speaker 1 (12:53):
It's one policy going to take our capital back. We're
taking it back after another. You burn a flag, you
get one year in jail. It goes on your record.
Speaker 3 (13:01):
Who knows what he'll check off next fifty five krc Dtopstation.
Speaker 6 (13:06):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 4 (13:25):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob Sponseller along with Brian James and Joe Strecker,
a producer. That's my kind of bumper music right there.
I love it all right. A million dollar inheritance, a
business sale on the horizon, and a listener wondering if
they have enough umbrella insurance. Your questions are answers coming
(13:46):
up in the Ask the Advisor segment at six forty three.
All right, Brian, We've talked for more than two years
about the advantage of parking your safe money in a
high yield savings account. It's been practically a no brainer now.
But did you know according to bank Rate one in
five people still aren't earning any interest on their cash.
(14:08):
This is shocking and somewhat disappointing.
Speaker 5 (14:10):
You know, there are there are not a lot of
things in a financial planning engagement when we sit down
with our clients and kind of put all the puzzle
pieces together. There's not a lot of things that are
black and white, right. Most things are pretty complicated decisions,
and we try to help them, you know, make the
right one by looking at the pros and cons of
each one. This ain't one of them.
Speaker 4 (14:28):
Right.
Speaker 5 (14:28):
If you are still sitting on a passbook savings account
at one of our esteemed large brick and mortar banks
here in this in this town, and you're earning ten
tenth of a percent or a quarter of a percent
or something, that's on you. So why would not people
not do this? There's a separate bank rate survey out here.
Consumers stick with the same bank account for decades even
if better rates are available elsewhere. That's been true for
(14:49):
a long time because it can be a hassle to move.
You gotta change your automatic payments in your direct deposit
and all that kind of stuff. But at the same
time that that has never been more painful of a
missed opportunity than it is right now. You should be
getting even as we're sitting here right now staring a
rate cut in the face, you should still be getting
three to four percent. And I think it'll still be
in that range here in September, when we get this
(15:10):
most likely raycut, we'll see. But in any case, that
is something to look into. That is one of the
things that when I run across the client in this situation,
I tell them this is something you go do today.
Give up in the brick and mortar. You don't need
Unis and maud in that branch at the end of
the street. Go find a different on more online FDIC
insured bank. Get yourself a better interest rate.
Speaker 4 (15:28):
Brian, I have had two conversations, two meetings about this
exact topic with existing clients this week, and we had
two entirely different results, depending on which bank they're dealing with.
Case number one, clients said to me, hey, I've got
money at Bank A. They've been paying me four and
a half percent, but that rate expires at the end
(15:49):
of August. And I told them, go back to the bank,
see what they're going to pay you. Beginning in September
if they keep it, you know, at four and a
half percent or close to it, stick with it, leave
it in there. They called, and the bank said, yep,
we'll leave it right there at about four and a
half percent for the next year. I said, wonderful bank
b said, no, we're going to drop it down too
(16:11):
point eight percent, which is shocking to me because we're
a triple dog.
Speaker 5 (16:16):
Dare you to move it to any other banage.
Speaker 4 (16:18):
Basically saying, please take this money and move it elsewhere,
And that's exactly what we did. So at my point
here is it pays to number one, pay attention and
be shop around a little bit because to your point, Brian,
you should be getting close to, if not a little
bit above four percent on FDIC insured cash, and if
you're not getting it, shop around and make sure you
(16:41):
do because it does make a difference.
Speaker 5 (16:43):
Yeah, and I would say, yes, we are probably entering
the market looks like it thinks we're entering a rate
declining environment, but that doesn't mean this opportunity goes away overnight.
There will still be better opportunities. You might be thinking
of the past, you know, really fifteen years where there
wasn't the money market rates were lightly higher than the
past BOW grades, but none of them were worth even
(17:03):
sniffing around. Well, that era ended about three or four
years ago, and we're still in it, so take advantage
you still can't.
Speaker 4 (17:10):
You're listening to simply Money, presented by all Worth Financial
Bob Sponsller along with Brian James. Brian, let's talk about
EYE bonds a little bit. I mean, I remember back
in twenty one and twenty two, when inflation spiked, I
bonds were the hottest thing in town. We had clients
move into them. We actually advocated for these things, and
things have changed a little bit since then.
Speaker 5 (17:31):
O MG, Bob, I bonds are so twenty twenty one,
you are so behind the times. We're going to talk
about these now. The reason we got excited about it.
EYE stands for inflation. The interest rate on these are
government savings bonds, no different really than your EE bonds
and H bonds and all that other stuff that we
haven't talked about in a very long time. But because
I bond's return was calculated off of inflation, they got
(17:52):
really pretty They were seven eight percent, sometimes even close
to ten percent for a very brief period of time there,
and so for retirees who were used to earning no
thing in their savings accounts but really wanted to guaranteed
it was. It was really like striking gold. Treasury Direct
is the government's website for this that most people hadn't
heard of until this happened in twenty twenty one. That
sight even crashed because so many people wanted to jump
into it. But those same eyebonds, if you hung on
(18:15):
to them, and I remember, we were never locking in
eyebonds for nine percent for thirty years or anything like that,
that wasn't a thing. The shine has kind of worn off.
Those same eyebonds, if you've left them alone, are now
around two point eight six percent, and that's what you're
getting until at least the end of October, and they'll
recalculate the rate at that point. So what do we
do if we have these things?
Speaker 4 (18:33):
Bob Well, I think it depends on everybody's individual situation
and what percentage of their portfolio they have in these things.
I'm always in the keep it simple camp wherever possible.
So if you've got I don't know, a small amount
ten fifteen, twenty thousand dollars sitting in these things at
two point eight six percent or whatever it is, and
(18:56):
they mature in October. Just leave the money there, let
it mature, but then be prepared to do something else
with that money. I mean others would say, hey, move it,
pay the penalty, get a higher rate of return. What
are your thoughts? Well.
Speaker 5 (19:11):
Thing to remember too, I don't think this is disagonizing
of a decision is these were never life changing. The
nine percent was eye popping, but remember that stuff works.
You can only buy ten thousand dollars worth of then
you could get up to fifteen thousand if you creatively
overpaid your taxes and use your tax refund to buy more.
This is not life changing money. We're talking at the
best nine hundred one thousand bucks of extra income for
(19:32):
a very small period of time. So don't agonize too
much about this stuff. It was a fun thing while
it lasted, but it was never going to change your life.
So focus more on what on your bigger picture, What
do you need your assets to do, and what's the
appropriate level of risks so you can either grow it
or preserve the capital depending on what you want.
Speaker 4 (19:48):
Yeah, and what we're really talking about here is if
you cash out of those things within the five year
holding period, you lose the last three months of interest.
That's why I say, you know, in most cases for
these small dollar amounts, just let it go, but pay
attention because you got to move this money somewhere else,
you know, because rates are too low. All right? Did
you hear Brian Travis and Taylor are engaged. Did you
(20:12):
know that? Yeah?
Speaker 5 (20:12):
I heard it once or twice or a thousand times.
Speaker 4 (20:15):
All right. When millions meet marriage, love is just the
beginning the financial planning. That's where things can get interesting,
and we'll talk about it next. You're listening to Simply Money,
presented by all Worth Financial on fifty five KARC, the
talk station.
Speaker 1 (20:29):
Every hour something is happening.
Speaker 6 (20:32):
I don't like.
Speaker 1 (20:33):
What's happening. Is something in our city, happening in our hometown.
Speaker 4 (20:36):
Check in all day, whenever and wherever a possible.
Speaker 3 (20:38):
It's always something, always will be fifty five KRC the
talk station.
Speaker 1 (20:45):
They were born RCI an iHeartRadio station.
Speaker 4 (20:53):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob sponseller along with Brian James. So the news
is officially out. Taylor Swift and Travis Kelcey are engaged.
Oh my god, Oh my god, Oh my god, Oh
my god, oh my god. Bob, oh stop, please stop,
make it stop.
Speaker 5 (21:10):
I'm gonna do that all day.
Speaker 4 (21:12):
But while everyone's focused on the six hundred and fifty
thousand dollars ring the proposal, maybe where they're registered, we
are financial nerds, so of course our first thought is,
how are these two going to handle the money? Show
me the money. It's a real world example of what
happens when two financially independent people, each with significant wealth,
(21:33):
even though Taylor's the billionaire in this situation, decide to
get married. Brian, let's run through the list. Maybe people
will pay attention now because we're talking about Taylor and Travis.
Speaker 5 (21:44):
Who cares about any of that stuff?
Speaker 4 (21:45):
Bob?
Speaker 5 (21:46):
What is her dress gonna look like? Let's talk about
the things that matter. I know this is what you
think about on your ride home every day. Now, so
we all would prefer to believe that love is enough
to put a marriage together. But this is gonna be
a really interesting situation. Whenever these types of unions happen,
there tends to be great stories for us financial planners
to talk about. We often hear this will be a
(22:07):
unique one, because obviously these are two pretty powerful people,
some of the most powerful we've kind of really ever seen,
getting together. But plenty of crazy stories for regarding state
planning and things like that from celebrities who did not
do any planning. So anyway, when you come to a
marriage with significant assets and a significant situation, a complicated
situation on both sides, first of all, you need to
(22:29):
know what that is. What do you own versus what
does your new spouse own? What do you owe? What
are the income streams? Do you already have any trust
to state plans or other existing obligations that are going
to dictate things. Or maybe, and this is the whopper, Bob,
maybe there's kids from a previous marriage. And the reason
that can be a little bit scary is because a
lot of times we might assume, you know that that
if I pass away, I hit by a bus, which
(22:50):
we don't assume that often enough anyway, and we don't
plan ahead. But if we assume that if that happens,
then magically my kids are gonna get everything. I've seen
situations where people have effectively accident only disinherited their kids
by just knee jerk naming their new spouse as their beneficiary. Well,
that effectively disinherits their kids. That new spouse may decide,
you know that, oh this the these kids should get
(23:12):
some of the money from their parent, but they don't
have to. That's that's a major assumption. So this is
where trusts and prenuptial agreements and all those kinds of
things come in.
Speaker 4 (23:20):
All right, speaking of the pre nup, the financial plan
no one wants to talk about. Have you ever helped
clients or advise clients to set up a pre nup?
I've got a couple stories, but I want to know
have you ever been involved in this and what I
have result?
Speaker 5 (23:34):
Yeah, I've I've there have been several situations where I've said, hey,
you really ought to look at this and figure out
And it's more about describing here's your situation. If you
do nothing, here's what's gonna happen. If that's what you want, cool,
go get it. If that doesn't make any sense, then
go talk to a lawyer today.
Speaker 4 (23:48):
All right, Well, I've got two I've got two situations
I can draw on. One ended up in an absolute
disaster and the other one was successful. And in both cases,
because you know, I was dealing with widow client. And
I had known them and I'd known their husbands who
passed away for years and years and years, and I
knew as soon as the widow talked to me about
(24:09):
her new boyfriend soon to be husband, YadA, YadA, YadA,
I knew that there were potential problems here. I could
just tell, and I advised, get a prenup, get a prenup,
get a prenup. One of them listened to me, and
one of them didn't, and the one that didn't ended up.
I mean, she started this relationship with about three and
(24:30):
a half to four million dollars and Brian, I am
not joking here. This woman today is borderline homeless, penniless
because she allowed a predatory relationship to come in and
just stripperr of everything. The other one, and both of
these second marriages ended up in divorce and ugly divorces.
(24:51):
By the way, the second one did listen, did get
a prenup, did protect you know, her assets, and she's
in great shape. So this stuff is really important on
the front end to talk about and make sure your
family and frankly yourself are protected in these second marriage
situations or first marriages in the case of you know
(25:12):
Taylor Swift and and you know travel.
Speaker 5 (25:16):
What excited I can't get the names. Yeah, now, these
are real situation. This is this is where it does
go wrong. And quite frankly, if your if your potential
new spouse is not willing to have this discussion, that's
a bit of a red flag for me.
Speaker 4 (25:29):
Right.
Speaker 5 (25:29):
We we all need to support each other and understand
the stresses that will come in a situation like this,
and if we can lay it all out in advance.
Speaker 4 (25:36):
Or if your new husband or potential new husband has
no money and has massive credit card bills, uh, that's
a small red flag as well.
Speaker 5 (25:46):
Yeah, you'll continue. Let me throw that story out. I
got I have a I have a great story for that.
And this is just kind of a cautionary tale. Had
a situation this is probably four or five years ago
where client came in, uh, in tears because her husband
had died. First of all, he was a client of
mine too, and that would that out of the blue.
He was on the younger end. But she found out,
unfortunately that he had run up eighty thousand dollars worth
of credit card debt betting the ponies. And this stuff
(26:08):
does happen in his real life situations, and she was
starting to get credit card calls from the credit card companies.
She had no obligation to pay those debts, right, she
did not know they exist. Her name was not on
those accounts. Just because she's married to a person with
debt does not make that her debt. However, that doesn't
stop the credit card company from chasing after you to
try to get you to write a check for it,
(26:29):
because most people assume, well, this is debt and it's
got my name and address on it, or my husband's name,
therefore it must be mine. So anyway, lots of things
to be concerned about there. Now we have wandered well
away from what Travis and Taylor are going to be
worried about. I'm pretty sure that that's not really going
to be a problem for them.
Speaker 4 (26:44):
Well, I mean, they're both in a situation where they
don't need the other person's money. So I mean, what
we deal with every day here in Cincinnati in the
real world is people that actually need their money to survive.
So I think the key here is communication and transparency.
And if you are going to go into either a
first or a second marriage, you got to understand what
(27:06):
the roles are gonna be from a financial standpoint, how
you're gonna communicate, how you're gonna commingle assets, if at all,
And just make sure everybody's walking into this with eyes
wide open so there are no you know, horrible surprises
down the road, because it can get very ugly, especially
in the second marriage situations where there's a lot of
(27:27):
money on the line. And let's face it, Brian, people
want to get married for a whole variety of reasons
and sometimes they don't think about money.
Speaker 5 (27:35):
That's exactly right. Got to make sure we understand all
the moving parts, and it's more, it's about more than
just love.
Speaker 4 (27:40):
All right, here's the all Worth advice. When two financially
successful people get married, the smartest thing they can do
is plan like a team, because love without clarity is
a risk no millionaire should take. All right, Sandy just
inherited a million dollar account, Marty's thinking about selling his business,
and Jim and Lisa to pass wealth to their kids.
(28:02):
What do they all have in common? Big financial questions
that we're gonna attempt to have answers to. Next you're
listening to simply money presented by all Worth Financial on
fifty five KRC, the talk station.
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Speaker 4 (28:50):
You're listening to Simply Money, presented by all Worth Financial
on Bob Sponseller along with Brian James. Do you have
a financial question you'd like for us to answer? There
is a red button you can click while you're listening
to the show right on the iHeart app. Simply record
your question and it will miraculously come straight to us.
All right, we're gonna leave things off with Sandy and Westwood. Brian.
(29:12):
Sandy says, we've just inherited a million dollar brokerage account
from my father. How do we figure out what to
keep versus what to sell without triggering a massive tax bill?
Speaker 5 (29:23):
A Hi, Sandy and Westwood. You just reminded me that
I haven't been over to that cool brewery over there
in that new little downtowny area of Westwood. I need
to get back over there. But anyway to your question,
you inherited a million dollar brokerage account. I want to
make sure we're using the right words, because these things
get thrown around all the time. I am interpreting inherited
to mean my father. Your father passed away and you
inherited this as a process of settling his estate. Sometimes
(29:46):
people say they inherited something, what they really mean is
this was given to me while my parent was still alive.
And there's an extreme important difference between these two. So
you're worried about a massive tax bill, where we assume
we're talking about some kind of taxable account. This is
not on an IRA. It's not a four toh one
k not kind of tax sheltered account. It's a taxable account.
If that is indeed the case, then I have good
(30:07):
news for you. You probably don't have much of a
bill at all, or at least not as much as
you think you might, because when you inherit a taxable
account in this manner, again, inherit not gift, then that
means the investments that are held in there, it's as
if you bought them on the day that your father
passed away. So if he bought this stuff thirty forty
years ago and it's got some kind of ridiculous gains
(30:27):
in it, well, congratulations. That all gets wiped out for
tax purposes and it becomes as if you bought it
on that day. Now, let's talk about the other side.
If you are indeed talking about a during life gift,
while he's still alive, he handed it to you. Now
you've inherited his cost basis. So if that is the case,
if he's still with us or was at the time
of the gift, then you will be obligated to pay
(30:48):
taxes on the gain of what he put between what
he paid for it and whatever you sell it for. Now,
the gift itself is not taxable. As soon as that
lands in your lap, you're not going to paying taxes
on that. But if you do exercise and sell, then
you'll be worded of capital gain. So I hope it's
the former, not the latter. Let's move on to Marty
and Terrace Park. Marty's going to be selling a business
in a couple of years, and he's wondering, when, you know,
(31:09):
knowing that that's on the horizon, when should he start
setting up structures Bob, like you know, donor advice fund,
family foundation? Should that be now? Should we wait? What
do you think?
Speaker 4 (31:17):
I think the discussions and the plannings should start now, Marty.
And you know, I'm assuming if you already have a business,
you probably have a good CPA. I would sit down
with him or her right now, and I would also
get a good fiduciary financial advisor to map out your
retirement and tax strategy, investment planning, and then in a
perfect world, which is what I love to see all
(31:38):
the time, we are partnering with the CPA. We're comparing ideas,
we are collaborating, and we're coming up with a well
thought out strategy in advance. A couple of things to
you know, make you aware of And I've lived through
this myself. So depending on whether you're dealing with an
S corporation or a C corporation, what kind of corporation
you have, there are different tax laws that dictate what
(32:01):
you can do in terms of avoiding capital gains taxes
ahead of time. You know, prior to selling the company.
So that's why you want to get with your CPA
right now. Let him or her know what's on your
mind here. You brought up things like donor advice, funds,
family foundations, you know, charitable remainder trust or another option.
All good things, But start getting your ducks in a
(32:22):
row before you even think about listing that business because
the structures make a big difference in your tax treatment.
You know that you ultimately get when it's time to
pull the trigger. Hope that helps get a CPA and
a good fiduciary financial advisor. And I think with a
two year runway, you should be in great shape if
you start to do a little planning now. All right,
(32:45):
Jim and Lisa and Mason say, we want to transfer
wealth to our kids gradually, but we're worried about spoiling
spoiling them. Are there strategies that let us provide support
now but still keep them motivated? Brian, what say you?
Speaker 5 (32:59):
Yeah? So this is it? Sounds like Jim and Lisa
you've built a pretty solid situation for yourselves. You didn't
kind of lead off your question with any worries about,
you know, stressing about how are we going to make
ends meet those kinds of things you're already talking about
transferring wealth. We don't know how old these kids are,
or frankly, how old Jim and Lae are, but we
know that they've they've apparently got enough that they want
to start thinking about what their kids are, not worried
(33:20):
about themselves anymore. How do we transition this to the
next level? What I would say, I'm going to start
by saying, because I've done this and it's been great
for our family, if your kids are mature enough and
old enough to handle it, and especially if they've noticed
that maybe they're they're fortunate, and when what they have
and what your family's lifestyle is, then I would say this,
that could be a really really good time to pull
(33:42):
back the curtain on the vault, show them what's in there,
and then more importantly, remind him how it got there.
I think that is a great way if they've perceived
that life is just easy, because by the time they
were old enough to pay attention, you might have gotten
your careers to a point where maybe you could kind
of slow down a little bit, versus when you were
in your early twenties and you know, really kind of
in the middle of the grind, but remind them that
(34:03):
what those times are like and that they're going to
start there too. But in terms of mechanical things, one
of my favorite things to do nowadays is I really
love the five twenty nine approach. And I know our
brains go to college. You might be thinking, I don't
want to tie it all down for college. I want flexibility.
Remember in twenty twenty four a new rule went into
place that said that up to thirty five thousand dollars
inside of five twenty nine, if it's not used for college,
(34:25):
can then become annual contributions to a wroth IRA for
those kids. So that's going through That will necessarily require
that it transferred to your kids gradually, but you can
get tax free growth and this this this gets you
around the income requirement, right, You don't have to have
an income requirement to fund a wrath So fund it now.
Maybe they're not even old enough to have any income,
(34:46):
but you're pre funding their roth IRA contributions well into
the future. So that's a fantastic way. And plus they
can't touch it up till the fifty nine and a half,
so you're not teeing them up for an easy life.
You know, as soon as they get out there on
their own, so great opportunity.
Speaker 4 (34:59):
You're no fun. Brian.
Speaker 5 (35:01):
I do my best.
Speaker 4 (35:01):
Bob.
Speaker 5 (35:03):
Let's see how much damage you can do for Sam
and Florence who says he's got about two million dollars
in iras and he's wondering about partial Wroth conversions. You
know that that's something they can bump them into a
higher tax bracket. But is that worth it?
Speaker 4 (35:17):
Well, I'm gonna give Sam our favorite answer. It depends,
you know, Meaning Sam, I think you gotta use some
good planning and software and maybe a good fiduciary advisor
to help you look into the future a little bit.
Here's what I mean, depending on what you plan to
spend you and your wife planning to spend in retirement,
what your various sources of income are, what your asset
(35:38):
base is. You know you mentioned the two million in iras.
What other stuff do you have? Factor in social Security?
Do you have any existing wroth accounts or taxable brokerage accounts?
My point here look at crafting an income strategy. At first, Blush.
I hate seeing people pay extra taxes in a high bracket.
Just to avoid taxes later. But if we can get
(36:01):
it in some cases it makes sense. But again, run
the numbers, look at what your taxes are likely to
be today and in the future when those rmds start,
and hopefully you can come up with a good strategy
to kind of do both get some money in that
wroth bucket and do it at a lower tax bracket.
All right, think life slows down after age sixty five
(36:24):
For one famous investor, that's exactly when things took off.
And we'll explain what made the difference and what it
could mean for the rest of us. You're listening to
Simply Money and presented by all words financial on fifty
five KARC, the talk station, Mark Levin.
Speaker 2 (36:41):
You know, America, we spend an awful lot of time
in this country responding to an unreality created by the
people who hate America, created by people who get sucked
into the narratives that are pushed out there each and
every day. And they're posting, and they're posting, and they're posting,
and then move on to the next thing and the
next thing.
Speaker 4 (37:00):
Actually, that's what the media enemy do.
Speaker 3 (37:02):
Mark Levin tonight at ten oh six on fifty five
KRC the talk station. Problem with socialism is that you
eventually run out of other people's money. Talk about it
here fifty five KRC the talk station.
Speaker 4 (37:20):
You're listening to Simply Money by all Worth Financial on
Bob Sponseller along with Brian James Well. Legendary investor Warren
Buffett turns ninety five years of age on Saturday, and
much of his wisdom is unmatched. And as we honor
the Oracle of Omaha, there's another nugget of wisdom we
want to talk about. He didn't stop working at sixty
(37:42):
five like many many people want to, or plan to,
or aspire to. Brian Warren Buffett's story is absolutely fascinating.
Talk about what this man has done post age sixty five.
Speaker 5 (37:56):
Yeah, that's really the headline here, isn't it. So in
August of nineteen ninety five, I've Warren Buffett turned sixty five,
So I feel like I've been around the block of
time or two. I'm sneaking up on thirty years in
this industry. But we're talking about when I was in college.
That's when he turned sixty five. And again that's when,
like you said, that's when most people just think they're
going to hang it up. At that time, his steak
in Berkshire Hathaway was valued about twelve billion dollars, and
(38:18):
if you translate that today, that's twenty five billion.
Speaker 4 (38:20):
Now.
Speaker 5 (38:20):
Those are solid dollars in there's solid dollars now. However,
what's absolutely staggering is what happened next. About ninety five
percent of his wealth that he's got now was created
after he turned sixty five. So fast forward to today,
that Berkshire steak has ballooned to about one hundred and
forty billion dollars. That translates to about thirty times growth
in the company's stock. That alone is ninety nine percent
(38:42):
of his net worth, just that particular steak, which didn't
occur again until after nineteen ninety five.
Speaker 4 (38:46):
So, Brian, is the all Worth advice therefore, to never
stop working, never retire, just keep working, keep piling up money,
keep finding investments that will double every three years. Is
that that's what we're telling people to.
Speaker 5 (38:59):
Dontil you are cold in the grave, right, rise and
grind even out of a coffin, is what we call that. No,
of course not, this is not this is what this is.
This is all Warren Buffett knows how to do. Obviously,
he's well known as being as a pretty strong family
man as well, so he certainly had his impact felt
in a lot of different places. This was just him.
(39:19):
But the point of all of this is most people,
a lot of people don't know when they have enough,
and that he was never about having enough. He gave
it all away not long ago, and then reinvented it
all again, and he's already told his grandchildren they're not
going to get much out of it, because that was
never his goal. But I have a conversations a lot,
and I'm sure you do with people who we realized
could have retired a couple of years ago, maybe earlier
than that, because they never sat down and looked at
(39:42):
the forest for the trees, because they were just so
fixated on whatever I have is not enough and it's
all going to go poof tomorrow. That is rarely the case.
Anybody who's listening to this show has gone and sought
out educational financial information and it is probably in better
shape than they've allowed themselves to be. And some of
you are listening right now and going, yeah, that could
be me. I want to hire now. But I've never
taken the time to look well do it.
Speaker 4 (40:03):
Yeah, having that purpose is the key. And in the
case of Warren Buffett, I mean, obviously the man has
a gift for creating wealth, but as importantly it's what
he's done with the wealth that has mattered. Since two
thousand and six, he's donated over sixty billion dollars worth
of Berkshire stock to charities like the Gates Foundation and
his own family foundations. He saw that as his purpose,
(40:25):
create wealth, but use that wealth to benefit others. And
I guess the message we're trying to send today there's
never you never need to feel like you're done doing that.
Find your purpose and just keep following through on that,
whatever it is, for as long as you can. You've
been listening to Simply Money presented by all Worth Financial
on fifty five KRC, the talk station News when it happens,
(40:50):
Breaking news Tonight, we are coming to.
Speaker 1 (40:52):
You live news when you need it. You're going to
want to listen to this news when you least expected.
Speaker 3 (40:58):
You've never quite seen anything like this, keeping you up
to date on what's happening.
Speaker 1 (41:02):
This is going to be quite the event tonight, and
you're gonna want to make sure you leave the house.
Speaker 3 (41:05):
Extra early, locally, nationally, everywhere in between. I don't know
what I would do without it.
Speaker 1 (41:11):
Fifty five KRC the talk station.
Speaker 5 (41:16):
It's former Bengal and Pro Football Hall of Fame or
Anthony Munos
Simply Money News
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