September 5, 2025 • 40 mins
Success brings rewards—but also hidden risks that can derail your financial future. On this episode of Simply Money presented by Allworth Financial, Bob and Brian explore how high-net-worth families can spot these risks before they become problems. Plus, strategies to potentially land in the coveted 0% capital gains tax bracket, and smart moves you can make now to protect your wealth and lifestyle.
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Speaker 1 (00:00):
You need when you need it. I like to keep
it form.
Speaker 2 (00:03):
Going to stay up today fifty.
Speaker 1 (00:04):
Five krs the talk station.
Speaker 3 (00:12):
Tonight, The hidden risks of success, how to wind up
in the zero percent capital games bracket and more. You're
listening to Simply Money, presented by all Worth Financial on
Bob spun Seller along with Brian James. So you spend
your life building something, working long hours, saving investing, playing
by the rules, and then just when you think you've
(00:34):
made it, something blindsided you. And it's not the market,
inflation or even taxes. It's the stuff that doesn't show
up in your portfolio. It's your sister in law, or
it's the friend who slipped at your pool party. It's
the lawsuit you never saw coming. Brian a lock to
unpack here. Let's get into some of these hidden risks
(00:55):
that are out there.
Speaker 4 (00:56):
Well, we hear this, you know, sometimes frequently from high
net worth families.
Speaker 5 (01:01):
Never thought I'd be the target of this.
Speaker 4 (01:02):
You know, we're talking lawsuits and liability here, because if
you if you, unfortunately in this day and age, if
you've got assets, that does make you a target and
uh and obviously that can expose you to different things.
You say hit that certain level of success, the world
will kind of target you eventually and kind of say, hey,
this person might you know, might might might be an
easy an easy mark here. Maybe you're a business owner.
(01:22):
You got a vacation home with a with a big
deck or something, or a nice big swimming pool, that
kind of stuff.
Speaker 5 (01:27):
One slip, one fall, and all of a sudden, your
net worth is on the table.
Speaker 3 (01:30):
So well, and as the saying, as the saying goes, Brian,
a lawyer can sue a ham sandwich. They'll try wherever
they perceive that there's money, they're going to go try
to get it in the hopes that you'll settle and
just write a check.
Speaker 5 (01:43):
Right.
Speaker 4 (01:43):
I mean, that's that's what we're trying to protect protect against.
That's why lawyers make the big bucks. And not to
attack lawyers very important profession. They're big helpers for us
and what we do all day every day. But there's
also a segment of that business, just like there's a
segment of the financial advisory business that's not necessarily in
the up and up, there's definitely a segment in the
legal profession that is simply trying to create chaos where
there wasn't any just to make a buck. So you know,
(02:06):
so when we're not talking about losses, talking about any
old lossuit, we're talking about frivolous lawsuits, the kind where
and Bob, you just hinted at it, the kind where
it's not justice.
Speaker 5 (02:13):
We're looking for a settlement.
Speaker 4 (02:14):
We're not looking to get in front of a courtroom
and have the Clarence Darrow hearings, you know, the Scopes
monkey trial Trial of the century type of thing. We're
looking for lawyers to send letters back and forth until
somebody gives and writes a check. They know there's money
out there, and they think you'll you'll just pay to
make it go away. And frankly, a lot of people
do just to make these things end because unfortunately people
(02:36):
are in the position often to do this. I can't
afford to write this check, and I just want this
gone so it doesn't get any worse and I want
to move on with my life. This is why we
often talk about umbrella insurance as an important way to
protect yourself. This is something that is often overlooked by
people because, you know, we just have just hasn't occurred
to us.
Speaker 5 (02:52):
It seems very rare.
Speaker 4 (02:53):
The kind of situations that Umbrella Insurance covers and protects
you from are very rare. Indeed, however, they are ship
sinkers when when they occur. So that's why the cost
of coverage isn't a whole lot, you know, but it's
definitely something that you should consider if you're in a
position where somebody might view you as a target.
Speaker 3 (03:11):
Yeah, And the way I like to handle this, Brian,
and I'm interested in your perspective is you know how
much Umbrella insurance will shoot. You can go out and
either ensure your entire net worth or if you want
to buy a little less, just you know, ensure enough
of a bucket of assets that you know is going
to be enough to take care of you in retirement.
I personally just like to ensure my entire net worth.
(03:34):
And here's why, if someone comes along and frivolously sues me,
I would love to have a big insurance company going
toe to toe with their lawyers, because I think as
soon as some of these people know you've got Umbrella insurance,
let's face it, I'd rather have the insurance company and
their team of lawyers fighting on my behalf because they
(03:55):
don't want to write the check, and that puts the
odds in your favor, and I think a lot of
times it makes some of these snakes in the grass
just kind of slither off and go away.
Speaker 2 (04:05):
What are your costs?
Speaker 5 (04:06):
So let's talk a little bit about just what this
actually looks like.
Speaker 4 (04:08):
So again, what we're talking about here is, let's say
you're in a serious car accident. Your own auto liability
policy gives you two hundred and fifty thousand dollars. Somebody
sues you for a million, and you're convicted of whatever,
and all of a sudden, you're on the hook for
a million dollars. Your auto insurance liability rider will cover
you for that two fifty Without the umbrella coverage, you're
on the hook for the remaining seven hundred and fifty
thousand dollars, and that's where they'll go after savings, investments.
Speaker 5 (04:31):
They could garnish wages and so forth.
Speaker 4 (04:32):
But if you've got a million dollar umbrella policy, which
by the way, that's about the minimum, they don't get
much smaller than that. So that umbrella will cover that
next seven to fifty. So what does that cost if
I want a million dollars of coverage, Well, that of course,
depends on your your your carrier. It's gonna have a
slightly different situation here. But a million dollars in coverage
is going to be about maybe one hundred and fifty
three hundred, maybe four hundred dollars a year.
Speaker 5 (04:52):
It's not a huge amount of money.
Speaker 4 (04:54):
And if you want an extra couple million, maybe that's
another seventy five to one hundred and fifty.
Speaker 5 (04:57):
Dollars based you know, a per year. This will vary
between you know, with your situation.
Speaker 4 (05:04):
How many drivers do you have, how old are they,
what kind of house do you have, do you have
swimming pool, all that kind of stuff. But the important
thing is talk to your property casualty people if you
feel like you're exposed to this, and they will help
you get the right amount of coverage without going overboard.
It's inexpensive protection for stuff that's not likely but will
absolutely ruin your life if that happens.
Speaker 2 (05:23):
All right, switching gears here.
Speaker 3 (05:24):
Some of the biggest financial blow ups.
Speaker 2 (05:27):
We've seen come down the pike.
Speaker 3 (05:28):
They come from inside the family, adult children with addiction issues,
siblings fighting over a parent's estate, or a spouse who
remarries and changes the entire trajectory of an estate plan
or an inheritance plan. And here's the truth. Money doesn't
build character, it reveals it. And Brian, you and I
(05:49):
have seen this umpty in different times. As soon as
these dollars signs appear and people know that money is there,
folks just appear out of the woodwork and they want
to get their hands on it. And you gotta have
a plan in place to protect yourself and protect you know,
your heirs, the people you really want to inherit this
money down the.
Speaker 5 (06:10):
Road, Bob.
Speaker 4 (06:11):
One of the most depressing, uh instance and incidents in
my entire career happened when I was young, when I
was a new baby advisor, and I just remember my
client had passed away, and that wasn't a surprise. They
were a little bit more, a little bit older, uh,
and and they had some health problems and so forth.
So the phone rang and it was, Hey, this is
so and so who I had already met so and so,
(06:32):
uh because it was that that was the person that's
kind of handling things for them. And they said, we're
in the car on the way to the cemetery. And
so after the after the ceremony is over, we want
to stop by and pick up our money, and that is,
of course not how it works. My point in this
is is to say that that even the people you
trust the most may be thinking very differently than than
than you assume that they are so. And I don't
(06:54):
mean to to cause stress over somebody to start mistrusting
their families, but just be aware. Money makes people weird, Bob,
and I see it all the time with the kind
of decisions that that people are forced to make and again,
and sometimes it's things that are out of your control.
Maybe you completely trust and you know that your own
child is in a good spot and makes good decisions,
and you would trust them with your lives, but maybe
(07:14):
that spouse that they brought along maybe not so much.
So that's where you need to take special care to
make sure that your assets after you pass. Of course
you want to get that to the to that kid
that you love and trust and would never hurt you,
but maybe you don't want that spouse to have too
much access to it. That's where a trust can come in,
in terms of making sure that it's only accessible by
your own biological child and then later on down the
(07:35):
road by by that person's or your your biological grandchildren
and kind of preventing that that sort of wayward spouse
from getting into it.
Speaker 5 (07:43):
This is what legal documents can do for you.
Speaker 3 (07:45):
Yeah, and the trust just adds some additional provisions to
a will because now it talks about the when, the how,
and the who, not just the who, so you could
control timing how money is dispersed. You have a lot
of flexibility with a good, properly drafted trust. You're listening
to simply Money presented by all Worth Financial on Bob
Spon Seller along with Brian James. Brian, let's get into
(08:07):
the other risk friendships, handouts and the old quote unquote
I need some help kind of money. Let's talk about
that because I see this happen way too often.
Speaker 4 (08:18):
This is so hard because these are people who you know,
your your relatives, your close friends. I mean, every life
is hard right now, and it's probably just gonna be
this way. It just seems get a little harder every year,
the more challenges that the universe seems to want to
throw at all of us. So you know, you'll you'll
catch wind of a story that happens to your your
your friends, your family, or worse, your own children, And
I mean that's the that's a that's the hardest thing
(08:38):
to have to deal with is watching your kids struggle
a bit when you know you can help them. But
you're a generous person. So they know that, and they
come they come wanting to you know, just needing something
to get them over the hump. Or I want to
start a business and change my life, or I need
to buy house down payment and so forth. Uh So
that emotional toll of saying no to a friend or
or here's the worst part. If you say yes and
then you never get it paid back, well, friendship or
(09:00):
that relationship just completely permanently changed and you will never
ever ever forget having been stabbed in the back like that.
Speaker 3 (09:06):
Well, the other thing in human nature being what it is,
and whether it's family members, friends or shoot Brian, even charities.
I can list more times than I want to count.
I give some money to a given charity, you know,
one time, and I'm getting twelve to fifteen emails letters
in the mail. I mean, they never go away as
soon as you open that checkbook up one time. Just
(09:30):
human nature again, whether it's human beings, charities or all
the above. They think that hey, that the spickett is open,
and I can come back for more at any given time.
And you want to be very careful when you start
to open that spicket and start to help people.
Speaker 2 (09:46):
And I'm not talking about being a miser here. I
mean we need to be generous and we need to
help people when they need help.
Speaker 3 (09:53):
But you just got to go in with your eyes
wide open, so this doesn't become an expectation for folks
receiving the money. And now you're in an emotional and
maybe a financial bind because you can't get out of,
you know, an unspoken commitment that you didn't even make.
Speaker 4 (10:11):
Yeah, and consider if you decide to do this. I
mean some sometimes you just have to do it. But
if you decide to do it, tell yourself that this
is a gift, not alone. You can let the recipient
think that it's alone, but tell yourself it's a gift.
That way, if you never see it again, you won't
be too emotionally distraught over it all.
Speaker 3 (10:27):
Right, Another thing on all these topics, this is why
you need to protect your wealth quietly, and you need
to build a team around you.
Speaker 2 (10:34):
And by a team, we mean have a good attorney,
have a good CPA, and have a good fiduciary financial
advisor and have all those folks communicating with one another.
So when these.
Speaker 3 (10:47):
Potential surprises rear their ugly head, you've got a little
moate around you, you know, to kind of tell you
and take the emotion out of it and keep you
from making an emotional, short term decision that I think
in the back of your mind a lot of people
know they shouldn't be making. Oftentimes it's good to have
a couple other voices, objective, non emotional voices in your ear,
(11:10):
just to help you, you know, make the decision that
in the end you probably know you need to make anyway.
Speaker 4 (11:16):
Yeah, and that arms length the way approach is something
that a professional can provide. Attorney CPA, if a douciary
financial advisor. That's somebody who has seen it and done it.
We've all seen some stuff, so it can be very
helpful to understand what have other similar station situations that
look like me, how have they been resolved, What are
the risks that I'm aware of, and more importantly, what
(11:37):
are the risks I'm not aware of. Maybe I'm aware
of something that's why I'm thinking about in the first place,
But there's always moving parts to any of this that
a trained professional can sniff out and help you understand
which your real risk is and of course recommend proper
steps to mitigate that risk.
Speaker 3 (11:50):
Yeah again, this is just a reminder that we often
think risk means, you know, tremendous volatility in the stock market.
But the truth is the bigger risks, the ones that
really move the needle permanently, come from the people in
our lives and how we.
Speaker 2 (12:04):
Prepare for them. Here's the Allworth advice.
Speaker 3 (12:06):
When you have more to lose, you have to think
differently about protection because success attracts risk.
Speaker 2 (12:13):
You never used to worry about.
Speaker 3 (12:15):
How would you like to have no capital gains taxes?
For some, it's now doable, and we'll show you how.
Speaker 2 (12:22):
Coming up next.
Speaker 3 (12:22):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRZ the talk station. The days of
relaxing in the drawing room by the radio set are wrong.
Speaker 1 (12:33):
Gone. Of these days, we're taking it to go down
the iHeartRadio poward buy fifty five KRC dot com.
Speaker 6 (12:44):
Allworth Financial a registered investment advisory firm. Any ideas presented
during this program are not intended to provide specific financial advice.
You should consult your own financial advisor, tax consultant, or
a state planning attorney to conduct your own due diligence.
Speaker 3 (13:02):
You're listening to Simply Money, presented by all Worth Financial
on Bob's sponseller along with Brian James.
Speaker 2 (13:07):
If you can't listen to.
Speaker 3 (13:08):
Simply Money alive every night, subscribe and get our daily podcasts.
Just search Simply Money on the iHeart app or wherever
you find your podcast. Should you give money to charity
now or later? What's the smart way to retire if
you own a business. We're gonna answer those questions and
more straight ahead at six forty three. What if I
(13:29):
told you there's a way to sell stocks, take the
gains and pay exactly zero in federal capital gains tax.
Speaker 2 (13:37):
Sounds like a scam, right, It's not.
Speaker 3 (13:39):
It's called the zero percent capital gains bracket, and if
you qualify, it's one of the smartest, cleanest ways to
reposition your portfolio with zero irs headaches.
Speaker 2 (13:51):
Brian, this is a.
Speaker 3 (13:53):
Strategy that I don't see talked about nearly enough, to
say nothing of being properly utilized.
Speaker 2 (13:59):
Let's get into this because this is a good one.
Speaker 4 (14:02):
Yeah, this isn't This isn't any tricks of the trade
or anything like that.
Speaker 5 (14:05):
This is just how the tax brackets work.
Speaker 4 (14:06):
And a lot of people assume that if I earn
any money at all, then I therefore must pay taxes
and I'm just chained to this wheel forever. But here's
the whole basic setup of it. If your taxable income
this is a taxable meaning after your deductions, after your
four oh m K, after your standard deduction, so forth,
if it stays under a certain threshold, then any long
term capital gains and qualified dividends that fall in that
band get taxed at literally zero percent. So this again,
(14:29):
this isn't a special situation type thing. It's just how
does those tax brackets work. So for twenty twenty five,
this kicks in if you are or you'll lose that
zero percent bracket if you're single, if you make above
forty eight thousand dollars in taxable income roughly ninety six
thousand dollars in change for married couples filing jointly, and
if you're a head of household type situation, that's.
Speaker 5 (14:48):
About sixty five thousand dollars.
Speaker 4 (14:49):
So again, keep your taxes below that or sorry, your
income below that. If you can, that's the hard part,
and you can possibly sell that off for sell these
capital gains off for literally nothing. I'm thinking Bob of
a situation I had years ago where I had three
young adultish people, maybe from the ages of sixteen I
think twenty two, when they were grandchildren. Grandpa had given
(15:11):
them each shares of a bank that he was on
the board of, and they had grown to ridiculous amounts
of money for each one of them. And what we
were able to point out was that for the ones
who were older the one the ones that were independent,
they were able to actually keep that since they were
at low income, they were able to go ahead and
sell those shares.
Speaker 5 (15:28):
This was a gift.
Speaker 4 (15:28):
Grandpa didn't give them to them at death, so there
was no step up in cost basis. He handed it
to him at Christmas, and they were able to sell
it and pay no capital gain. And then all of
a sudden, we were able to do two things at once.
We got the portfolio diversified away from a single bank
stock which wasn't appropriate for a twenty year old, and
they didn't They got to reset their cost bases, which
to those dollars to this day are still growing and
that was probably twenty five years ago for that client.
Speaker 5 (15:50):
So interesting story.
Speaker 2 (15:51):
There, Yeah, for sure.
Speaker 3 (15:52):
And hey for people anyone over sixty sixty five and older,
you know, you can get I know, the President talked
about no taxes home social Security. What this really is
and the one big beautiful bill is an additional deduction
six thousand dollars deduction for single taxpayer, twelve thousand dollars
for a couple, and that could drop your taxable income
(16:13):
down enough to open the door to more of these
zero percent capital gains. And this is a reason to
just again, like we talk about all the time, take
a look at what your all your sources of income are,
what all of your buckets of assets are, whether they're iras, roths,
after tax brokerage accounts and craft and income strategy, because
(16:35):
you might be surprised at how much of these capital
gains you can get taken care of for these highly
concentrated positions and end up paying you know, zero in
capital gains taxes to do it as long as you,
you know, do it responsibly and in chunks.
Speaker 2 (16:49):
And we see this all the time, Brian.
Speaker 4 (16:52):
Yeah, So that's the key is making sure you know
what the various flavors of your income are and and
understand really this can be just looked closely your ten
forty or sit down with a professional advisor. Don't just
get your taxes done and hand it off and forgotten
about it. At least once you should understand exactly how
your ten forty comes together. Have your CPA or your
tax preparer walk you through it, or even if not that,
(17:12):
your your fiduciary financial advisor can kind of give you
the basis on that too.
Speaker 3 (17:16):
You're listening to Simply Money presented by all Worth Financial
Lumbob sponseller along with Brian James. Brian, let's get into
some of those watch outs that we see sometimes with
the do it yourself folks out there. They do their
own taxes, they do their own income planning, and they
forget when they start to do roth conversions or other
things that create taxable income that sometimes that's a good thing,
(17:40):
but other times that can throw your income up to
another bracket where you're paying higher Medicare premiums and you're
taking away the opportunity to diversify out of a concentrated
stock position at zero percent capital gains. Talk about some
things that you see in your office, because I know
you do a great job of running these income projections.
Speaker 4 (18:01):
Right, Yeah, So a couple things. So on those ross conversion.
By the way, I'm a big fan of ross conversion.
Speaker 5 (18:06):
I'll be honest.
Speaker 4 (18:06):
I think roths conversions are more important than managing to
get those couple very cool years where you get to
tell everybody you were in a zero percent tax bracket.
Speaker 5 (18:15):
I'll be blunt.
Speaker 4 (18:16):
I think a zero percent tax bracket for most people
is probably a missed opportunity. If your bracket is that
low for a year, great congratulations. But take some of
those pre tax dollars and consume those lower brackets, convert
them forever. Think about compounding for the rest of your life,
and compounding tax free.
Speaker 5 (18:32):
I think that's huge.
Speaker 4 (18:33):
Also, be super careful with if you own mutual funds,
be carefully you're not throwing money into them towards the
end of the year. That can give you some capital
gain distributions maybe you weren't expecting. I'm not a big
fan of mutual funds in general anymore. I think exchange
traded funds are the place to be. That's another topic.
Here's another one, if you are skating around in a
zero percent bracket, that is not the year to take
(18:54):
your capital to do your tax loss harvesting. Because if
you have a position that is sitting at a lost
position and you're only in the zero percent bracket and
you're not saving yourself very much, wait until that next year.
Some year, inevitably you'll be in a higher bracket. Hang
on to those losses a little longer. Maybe they'll fix
themselves and not be losses. We prefer gains. I would
rather have taxable gains than a deductible loss. But at
the same time, don't waste an opportunity to harvest tax
(19:17):
losses if you weren't paying much taxes to begin with.
Speaker 3 (19:20):
Yeah, and I know, we love, you know, exchange traded
funds on a going forward basis because they're much more
tax efficient. But let's face it, Brian, we got a
lot of listeners out there that have owned mutual funds
for decades and decades and made a boatload of money.
Speaker 2 (19:34):
And that's not a bad thing at all. The issue
is you get those.
Speaker 3 (19:38):
Declared capital gains every year, you know, between October and December,
and you got to factor that in because those are
non voluntary capital gains distributions, whether you sell a share
or not. So when you sit down and start mapping
out these income strategies, make sure you account for those
capital gains that are going to get declared, whether you
sell anything or not. Here's the worth advice. If you
(20:00):
can legally pay zero tax on gains, do it. The
zero percent capital gains bracket is one of the cleanest,
most powerful tax tools for retirees.
Speaker 2 (20:11):
And high net worth families alike.
Speaker 3 (20:13):
Here's a question you might have asked yourself, should I
invest in real estate?
Speaker 2 (20:17):
We'll look at the pros and cons coming up next.
You'll listen.
Speaker 3 (20:20):
You're listening to Simply Money presented by Allworth Financial on
fifty five KRC, the talk station.
Speaker 1 (20:26):
We call them every day Millionaire. Every day listen to
Dave Ramsey Rich.
Speaker 3 (20:31):
People ask how much broth, people ask how much down
and how much a month?
Speaker 1 (20:36):
With Dave's ex seven started asking how much my fifty.
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Five KARC the talk station KRC and iHeartRadio station.
Speaker 3 (20:49):
If you're listening to Simply Money presented by Allworth Financial
on Bob Sponseller along with Brian James joined tonight by
our real Estate expert Michelle Sloan, owner of Remax, Time
and Miss.
Speaker 2 (21:00):
This is a topic that Brian.
Speaker 3 (21:02):
And I are excited to get into because it comes
up all the time with our clients. Is real estate
a good investment, especially now considering prices are higher than ever.
You know, talk about pros and cons of real estate
as an investment.
Speaker 7 (21:19):
Well, it is no matter what whether you're buying a
home that is for your personal use or buying a
home that you're going to use as a rental or
a vacation home or an airbnb, it is an investment
one way or another. It's the biggest investment that you're
ever going to make. So the question is do you
try to jump into the market right now? When we
(21:40):
have talked about the home sales year over year are
up seven percent, So yes, the prices of homes are
up there, higher than they were, but we don't anticipate
them to be lower anytime soon. So you get in today,
it's going to be a better price most likely then
(22:02):
it will be a year from now. And you have
to you have to do your own financial planning, and
you have to talk to people that know your situation
because every situation is different. Are you going to need
a mortgage, Well, you're gonna have to bake in that
interest rate, in those closing costs, and maybe you have
to do some repairs depending on what you're looking for.
(22:25):
You want to you want to look at the big picture.
If you're gonna pay cash, it's a different story. You
may not have as much to you You're not gonna
have that overhead of a mortgage payment and the interest
rate and all of that stuff. So there seems to
be an awful lot of buyers today and.
Speaker 4 (22:46):
How on the topic of the mortgage there so for
those people looking maybe for a second home, these are
people who tend to be of course, you know, maybe
retired or maybe are about to retire. Is can you
talk a little bit about the challenge of getting a
mortgage if you're you may have plenty of assets but
no income. Some banks are cool with that, some banks aren't,
even though you've got a lot of money in the bank.
What kind of situations have you seen like that, Yeah,
(23:07):
you have to shop around.
Speaker 7 (23:09):
I am finding that a lot of buyers in that
situation who maybe are in their seventies and they're retired,
they still have some income. It may not be as
much as if they were working full time, and more
often than not, they're going to put maybe seventy or
eighty percent down in cash and then only get a
small mortgage. And that's really the way to go if
(23:31):
you have the means to do that. That way, you
know you're not using all of your cash and you
have leaving some of that available, and then you're only
taking out a small mortgage. You might have to do
just a little bit of shopping, but there are definitely
lenders out there who can help you, all right.
Speaker 3 (23:49):
Michelle, I'm curious because I think we have to distinguish
between you know, when we buy a home, are we
buying it to live in it or you know a
second home you know, vacation destination to live in it,
or are we buying it as a rental income source,
you know, a true one hundred percent investment property. Talk
about the whole property for rental income market right now?
(24:13):
How are average rents trending? Are you seeing people successfully
handle rental property right now? When you factor in all
the tax benefits of the depreciation You've already talked about
potential appreciation of the home price to say nothing in
the rental income is that still working right now as
a good cash flow investment strategy.
Speaker 2 (24:35):
Absolutely.
Speaker 7 (24:35):
There is always opportunities in the real estate industry. I
think that you have to decide if you're buying a
home as rental income. A lot of the HLAs have
tightened down. And this is the one thing that I
get questioned aful an awful lot. I have three hundred
thousand dollars to spend. I want to buy a rental
(24:58):
property like to be maybe get a condo or something
like that, so I don't have to do all of
the maintenance.
Speaker 5 (25:06):
What can you find for me?
Speaker 7 (25:07):
Well, that's going to be more of a challenge because
if you are buying a condo for rental purposes, oftentimes
the HOA has clamped down and not allowing rentals in
a lot of communities. So again it's a lot of research,
(25:28):
but there are opportunities. And then if you have to
think about if you're buying a rental single family home,
you're gonna have maintenance. Who's gonna take care of the yard,
the lawn, the exterior, that kind of thing. The average
rent right now in Cincinnati is about fourteen hundred.
Speaker 5 (25:46):
Dollars a month.
Speaker 7 (25:48):
Uh, that sounds so high. But and it is, but
and it has the rent has rows seven point four percent,
So you want to do some calculations, you know.
Speaker 4 (26:02):
So is it even possible because I'll have people throw
this out every now and then they inherit money, they.
Speaker 5 (26:06):
Retire and so forth. Is it really even possible?
Speaker 4 (26:08):
Because we get this idea that, hey, I'll just buy
a property and I'm gonna airbn be it. That was
cool maybe fifteen years ago you could actually you know,
make a little cash flow it. Yeah, you could totally
make it pay for itself. But now I'm feeling like
it maybe may it may get you just under a
break even, but you're gonna lose money.
Speaker 5 (26:24):
Am I wrong? There just seems like every situation I
look at, it's just there's a lot of work involved,
and people don't see that.
Speaker 7 (26:30):
You know, every time somebody's in and out, you have
to clean and then if they bust things up, you
know you're gonna have to fix things.
Speaker 5 (26:38):
And then you reat it like a rental as a
phrase for a reason. Yeah, yeah, you know.
Speaker 7 (26:42):
An airbnb. I think again, it sounds great. Uh, but
I would do I would do. Buyer beware, if you're
planning to do something like that, because there are a
lot of hitting costs that you may not consider. Yeah,
it sounds perfect, you know, buy let's buy a place
in downtown Cincinnati overlooking the river, and you know, we'll
(27:06):
airbnb it and we'll get one thousand dollars a night. Well,
you're not always going to be rented. It's it's gonna
cost you money. You're gonna to hire somebody unless you're
gonna do the work, unless you're going to clean after
every person.
Speaker 4 (27:19):
And you're gonna be in this thing. Yeah, you're gonna
be in it more than you ever intended to.
Speaker 7 (27:25):
Absolutely.
Speaker 2 (27:26):
Well, there's a lot of work, Michelle.
Speaker 3 (27:28):
You know something that that I've become aware of here
in recent months, you know, is you brought up the hoas.
I think you got to do your due diligence on
the financial condition of that hoas because insurance rates are climbing.
So these condo buildings are in need of repairs, which
means assessments and depending on the location, you know, big
(27:50):
time assessments. You know, think about areas in Florida where
these these condos that are forty fifty years old are
not hurricane proof. You know, you got to look beyond
just the price of the place and what you think
you can rent it for. Right, So, are there particular
locations you're seeing that are very attractive versus you know,
big watch out signs?
Speaker 7 (28:11):
You know that, And that's a really good question, and
it really is going to it's going to be very personal.
So if the rentals that Scott and I own, they're
all local, so if we need to get to them quickly,
we can. But thinking of I would never buy personally
a rental in Florida because I can't keep my eyes
(28:34):
on it.
Speaker 5 (28:35):
It's kind of like owning a bar.
Speaker 7 (28:38):
If you're not in that bar all the time, people
are going to be drinking your alcohol and they're going
to be stealing from the till unless you're there and
monitoring the situation, or maybe hiring somebody that you know
and trust. So as far as a location, it really
really depends on what type of property you're looking for.
(28:59):
If you're looking for all higher end property, if you're
looking for something that's you know, a fixer upper, there's
there's so many options. But the biggest thing that I
can say is planning is key. Connect with a smart
financial planner. I think we know some and a really
smart realtor. I think we know one of those too.
Speaker 3 (29:20):
It sounds great. Hey, thanks, thanks as always for all
your help. Michelle. You're listening to Simply Money, presented by
all Worth Financial on fifty five KRC the Talk station.
It's the main event for the importance events of today.
Speaker 1 (29:35):
Every day we discover something new and important.
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I do think he is too old to run.
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In twenty twenty.
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Speaker 3 (30:13):
You're listening to Simply Money, presented by all Worth Financial
on Bob Sponseller along with Brian James.
Speaker 2 (30:19):
Do you have a financial question you'd like for us
to answer.
Speaker 3 (30:21):
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 come straight to us.
All right, Karen and Montgomery says, Hey, we've been giving
to charities for years, but we're just writing those checks.
Is a donor advice fund really that much better or
(30:41):
just another layer of complexity? Sounds like Karen listens to
us talk about this all the time, Brian, is this
just hot air that we're spitting out or is there
are there real benefits there?
Speaker 4 (30:52):
Well, there's a lot of hot air that flows around
this studio. We get here, we need an extra event
to get rid of the hot air. But anyway, now, no,
but I was just thinking the same thing. We've had
this question very frequently, at least once or twice a week,
it seems like when we're doing this segment. So yeah, Karen,
so donor advice fund? Maybe I think the real thing
to ask is is writing a check the most efficient
(31:15):
way that I can do my charitable giving. First off,
good on you for being friendly to other people and
your generosity. But don't don't cheat yourself out of opportunities
just because you haven't had the time yet to think
about it. So first thing I would say, before you
look at a donor advice fund, I would just look
at if you give the same amount of money if
you kind of a predictable amount. One other thing to
look at to the same charity is if you do
(31:36):
you happen to have any appreciated securities in your portfolio anywhere.
What I mean by that is maybe you've got some
P and G that you put a thousand bucks into
and now over time it's now worth you know, two
thousand dollars something like that. Well, what you can do
is literally just give those shares to the charity. The
charity very very well knows how this works. They're going
to have a brochure with their logo on it and
(31:57):
an account number of a financial institution and something called
a DTCN. That is all you need to give your
current the current holder of your equities to make sure
that so that they can send that over. And then
the whole point of that is you're going to dodge
the gain. So you in that particular example, you would
get two thousand dollars deduction because you donated those shares.
You would not have to pay any taxes on the
(32:18):
capital gain because you didn't sell it.
Speaker 5 (32:20):
You gave it to the charity.
Speaker 4 (32:21):
They're immediately going to turn around and sell it because
they don't want to own stocks, they want the cash,
and they are a five oh one C three presumably
therefore they won't pay any taxes either. A donor advice
fund to get your question this is if you're putting
significant amounts of money away, but you're not giving quite
enough away to beat the standard deduction, then a donor
advice fund may make some sense to lump a bunch
(32:41):
of years. Let's say, if you do ten thousand dollars
per year to a church or something, if you lump
five of those together donate fifty thousand to a donor
advised fund, you get the full deduction in that one
singular tax here. But then the donor advised fund will
dole it out to the recipients on your schedule. So
your church or your whatever charitable cud organization you're donating to,
does not know that you've already carved out a huge
(33:03):
amount of money. They're seeing the same cash flow they
always have, just from a different source. All right, Long,
win that answered that. Let's move on to David. He's
got an important question too. David owns a business he's
thinking about retiring in the next five years, and he asks,
how do I balance investing in growth now with making
that business attractive for a future sale.
Speaker 5 (33:20):
What do you think of that, Bob, you are a
business owner.
Speaker 2 (33:22):
Yeah, A lot to think about here, David.
Speaker 3 (33:24):
Here, here's you know, without knowing your entire situation, here's
a couple of things to think about. You know, it
all comes down to how these businesses are valued. And
the buyers that might be coming in to buy your business.
Speaker 2 (33:37):
You know, if they get good.
Speaker 3 (33:38):
Representation, they're going to be very savvy and looking at financials.
And here's what I mean by that. If you're just
trying to strip cash or strip things out of this
business over the next five years between now and when
you're retired, they're going to see that. And the way
to get the maximum value for your business is keep
operating that thing built for success.
Speaker 2 (34:00):
You want to look at.
Speaker 3 (34:00):
A trend in revenues and earnings, and you want to
keep the machine running. You want to make that thing
look as successful as possible run. It tends to work
the same with a private business that it does with
a publicly traded stock. Last quarter's earnings are great, but
they want to see projected future earnings. So I would
(34:21):
just say, you know, without getting ridiculous. You don't want
to make twenty year investments when you know you're not
going to be around in five because you're not going
to get that money back. But by the same token,
don't just bleed this thing to death and allow it
to die on the vine, because your value for that business,
which you've probably spent decades building, will shrink rather than grow,
(34:43):
and we don't want to see that happen.
Speaker 2 (34:45):
Hope that helps, all right.
Speaker 3 (34:46):
Sarah, In Westchester, we're in our early sixties and considering
concierge's medicine or high end retirement communities. How do we
realistically plan for healthcare cost in that situation at that level?
This is a great question, Brian.
Speaker 5 (35:02):
You know, I want concierge car service.
Speaker 4 (35:05):
I want to be able to get same day appointments
to get my car fixed. Maybe somebody could invent that
business and make millions and I'll be your first customer.
But now, for those of you who don't know what
Sarah's referring to here is concierge medical services.
Speaker 5 (35:17):
This is basically what you're getting for this.
Speaker 4 (35:19):
It's something you're paying out of pocket, by the way,
and Medicare does not cover the expenses for this, But
here's what you get in exchange same day or next
day appointments. You can have longer time with your advisor
or your advisor, your dicing where my brain is your
doctor maybe an hour long appointment to ask questions versus
a ten to fifteen minute breeze in, breeze out, and
then fifteen young interns doing the actual work. You also
(35:39):
get twenty four to seven access phone, text, email to
your doctors, and then they'll coordinate a lot of things
for you. So it's just again it's concierge. They're doing
a lot more things for you than the normal approach
cost to it. So this is probably an extra fifteen
hundred to three thousand dollars per person per year.
Speaker 5 (35:54):
That's for a basic practice. It can be more like
three to six thousand.
Speaker 4 (35:57):
And then there are of course, you know, guess what,
there's Cadillac programs out there that can be ten to
twenty five thousand per year, depending on what you need.
So but your question, I think that's a great service.
By the way, my parents have it, they love it.
Your question, I would budget another Brian, I have to
interrupt here.
Speaker 3 (36:11):
There are things you know, Concierge's Auto service. You just
I know you love to drive these twenty year old
Toyota pickups where you don't have to do anything to
them and they're paid for. There are vehicles out there,
you know, BMW, Mercedes, where they will actually come to
your office, pick up your vehicle. Service it, wash it,
(36:33):
wax it, bring it back. It's wonderful. You should try
it empty every other week.
Speaker 5 (36:38):
Empty service.
Speaker 3 (36:40):
Okay, all right, you can't die with all that money
you've got squirreled away love truck one of your coma.
Speaker 2 (36:48):
All right.
Speaker 3 (36:48):
We would usually say don't blow your money on lottery tickets.
But next we've got a story where that advice didn't
apply and it came in exactly the right moment. You're
listening to Simply Money, presented by Allworth Financial on fifty
five KRC the talk station Mark Levin, let.
Speaker 7 (37:06):
Me tell you ible information and of course not just
one sided view.
Speaker 1 (37:10):
News that affects you. At the top end to bottom
of the hour, fifty five KRZ the talk station.
Speaker 3 (37:20):
You're listening to Simply Money, presented by Allworth Financial on
Bob Sponsller along with Brian James, a Carrollton, Ohio man
Jeffrey Fraser recently won five hundred thousand dollars from a
scratch off lottery ticket while his wife, Donna, was undergoing
cancer treatment. Brian, this is one of those rare lottery
(37:42):
stories that couldn't have come at a better time.
Speaker 2 (37:45):
And what a wonderful story.
Speaker 4 (37:47):
Yeah, it just makes you realize that sometimes there is
somebody actually kind of watching out here and talk about
a well timed windfall. So the story here is mister
Fraser and his wife had just come home from one
of her treatment sessions. She was undergoing awful lot of
course medical treatments for her cancer, and she did and
he told her, and she didn't believe it was real
at first, and she said, did did you did you
fall down or did you hit your head on something?
(38:09):
But only really accept that it when she when they
pulled it up through the lottery app and she saw
that the results were you know, we're we're truly real.
So after taxes, this couple's going to take home about
three hundred and sixty thousand dollars while there.
Speaker 5 (38:21):
And this is the mind blowing part, Bob.
Speaker 4 (38:22):
This is while they're dealing with these ongoing medical costs,
the stress of serious illness, you know, and with the
family worried about it and all those kinds of things.
So this this is obviously, you know, it doesn't solve
the the big problem at hand here, but it certainly
takes a lot of the pressure off and it can help.
Of course, it's going to help people, you know, focus
on just her and getting her, getting her healthy again,
and they can take their eye off the you know,
(38:43):
the financial ball for just a little bit.
Speaker 3 (38:46):
Well, I think the fun part of this story is
Donna didn't even believe her husband that he had won.
Speaker 5 (38:51):
She's like, let's let's pull.
Speaker 3 (38:53):
Out the computer and log on and make sure you
haven't lost your mind. I would have loved to have
watched that whole scene unfold in the kitchen or the
office or wherever they did that.
Speaker 5 (39:02):
Why are you doing this to me, you son of it?
Speaker 4 (39:04):
You better not be Yeah, I'm sure there was a
lot of romance involved in the first vers thirty seconds
of that conversation.
Speaker 5 (39:10):
No, honey, I swear. Look look at the app Look
look look look look.
Speaker 2 (39:13):
Yeah.
Speaker 5 (39:14):
But we're happy for that.
Speaker 3 (39:14):
It's a great story, absolutely, and we need to keep
you know, Jeffrey and Donna in our prayers here is
hopefully this money will help, but like you said, we
still need the Good Lord to step in here and
help her get cured of cancer.
Speaker 2 (39:28):
And I hope that happens.
Speaker 5 (39:29):
Yeah, so let's talk a little bit about windfalls. Right.
They're very rare.
Speaker 4 (39:32):
I mean, that's why we call them a windfall, and
they're unexpected for sure, and they obviously are can be
happy situations, but at the same time, it can also
be jarring to all of a sudden, I have flexibility
to do what it is, to do whatever I want
to do to some extent, and what is it that
I want to do? So the first thing to do
with the windfall is nothing. Stop, take a breath, Talk
to your family about how we would what are the opportunities,
(39:52):
what are the needs that we have. Don't rush into anything,
it's just not necessary. Take a breath, talk to professionals.
Understand you know what your opportunities are. But again, just
take your time with it. If you if you have
this type of a situation.
Speaker 2 (40:03):
Thanks for listening tonight.
Speaker 3 (40:04):
Tune in tomorrow we will talk about the lessons you
can learn from going into a retirement time machine you've
been listening to. Simply money presented by all Worth Financial
on fifty five KRC, the Talk station.
Speaker 1 (40:17):
This is for your information.
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Everything we do we keep you informed, is FYI you information.
We'll have the latest information on.
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The whole situation in guys release the info on the
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They would like to meet with me.
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Check in throughout the day. We have information for your information,
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Just FYI fifty five KRC, the Talk Station,
You need when you need it. I like to keep
it form.
Speaker 2 (00:03):
Going to stay up today fifty.
Speaker 1 (00:04):
Five krs the talk station.
Speaker 3 (00:12):
Tonight, The hidden risks of success, how to wind up
in the zero percent capital games bracket and more. You're
listening to Simply Money, presented by all Worth Financial on
Bob spun Seller along with Brian James. So you spend
your life building something, working long hours, saving investing, playing
by the rules, and then just when you think you've
(00:34):
made it, something blindsided you. And it's not the market,
inflation or even taxes. It's the stuff that doesn't show
up in your portfolio. It's your sister in law, or
it's the friend who slipped at your pool party. It's
the lawsuit you never saw coming. Brian a lock to
unpack here. Let's get into some of these hidden risks
(00:55):
that are out there.
Speaker 4 (00:56):
Well, we hear this, you know, sometimes frequently from high
net worth families.
Speaker 5 (01:01):
Never thought I'd be the target of this.
Speaker 4 (01:02):
You know, we're talking lawsuits and liability here, because if
you if you, unfortunately in this day and age, if
you've got assets, that does make you a target and
uh and obviously that can expose you to different things.
You say hit that certain level of success, the world
will kind of target you eventually and kind of say, hey,
this person might you know, might might might be an
easy an easy mark here. Maybe you're a business owner.
(01:22):
You got a vacation home with a with a big
deck or something, or a nice big swimming pool, that
kind of stuff.
Speaker 5 (01:27):
One slip, one fall, and all of a sudden, your
net worth is on the table.
Speaker 3 (01:30):
So well, and as the saying, as the saying goes, Brian,
a lawyer can sue a ham sandwich. They'll try wherever
they perceive that there's money, they're going to go try
to get it in the hopes that you'll settle and
just write a check.
Speaker 5 (01:43):
Right.
Speaker 4 (01:43):
I mean, that's that's what we're trying to protect protect against.
That's why lawyers make the big bucks. And not to
attack lawyers very important profession. They're big helpers for us
and what we do all day every day. But there's
also a segment of that business, just like there's a
segment of the financial advisory business that's not necessarily in
the up and up, there's definitely a segment in the
legal profession that is simply trying to create chaos where
there wasn't any just to make a buck. So you know,
(02:06):
so when we're not talking about losses, talking about any
old lossuit, we're talking about frivolous lawsuits, the kind where
and Bob, you just hinted at it, the kind where
it's not justice.
Speaker 5 (02:13):
We're looking for a settlement.
Speaker 4 (02:14):
We're not looking to get in front of a courtroom
and have the Clarence Darrow hearings, you know, the Scopes
monkey trial Trial of the century type of thing. We're
looking for lawyers to send letters back and forth until
somebody gives and writes a check. They know there's money
out there, and they think you'll you'll just pay to
make it go away. And frankly, a lot of people
do just to make these things end because unfortunately people
(02:36):
are in the position often to do this. I can't
afford to write this check, and I just want this
gone so it doesn't get any worse and I want
to move on with my life. This is why we
often talk about umbrella insurance as an important way to
protect yourself. This is something that is often overlooked by
people because, you know, we just have just hasn't occurred
to us.
Speaker 5 (02:52):
It seems very rare.
Speaker 4 (02:53):
The kind of situations that Umbrella Insurance covers and protects
you from are very rare. Indeed, however, they are ship
sinkers when when they occur. So that's why the cost
of coverage isn't a whole lot, you know, but it's
definitely something that you should consider if you're in a
position where somebody might view you as a target.
Speaker 3 (03:11):
Yeah, And the way I like to handle this, Brian,
and I'm interested in your perspective is you know how
much Umbrella insurance will shoot. You can go out and
either ensure your entire net worth or if you want
to buy a little less, just you know, ensure enough
of a bucket of assets that you know is going
to be enough to take care of you in retirement.
I personally just like to ensure my entire net worth.
(03:34):
And here's why, if someone comes along and frivolously sues me,
I would love to have a big insurance company going
toe to toe with their lawyers, because I think as
soon as some of these people know you've got Umbrella insurance,
let's face it, I'd rather have the insurance company and
their team of lawyers fighting on my behalf because they
(03:55):
don't want to write the check, and that puts the
odds in your favor, and I think a lot of
times it makes some of these snakes in the grass
just kind of slither off and go away.
Speaker 2 (04:05):
What are your costs?
Speaker 5 (04:06):
So let's talk a little bit about just what this
actually looks like.
Speaker 4 (04:08):
So again, what we're talking about here is, let's say
you're in a serious car accident. Your own auto liability
policy gives you two hundred and fifty thousand dollars. Somebody
sues you for a million, and you're convicted of whatever,
and all of a sudden, you're on the hook for
a million dollars. Your auto insurance liability rider will cover
you for that two fifty Without the umbrella coverage, you're
on the hook for the remaining seven hundred and fifty
thousand dollars, and that's where they'll go after savings, investments.
Speaker 5 (04:31):
They could garnish wages and so forth.
Speaker 4 (04:32):
But if you've got a million dollar umbrella policy, which
by the way, that's about the minimum, they don't get
much smaller than that. So that umbrella will cover that
next seven to fifty. So what does that cost if
I want a million dollars of coverage, Well, that of course,
depends on your your your carrier. It's gonna have a
slightly different situation here. But a million dollars in coverage
is going to be about maybe one hundred and fifty
three hundred, maybe four hundred dollars a year.
Speaker 5 (04:52):
It's not a huge amount of money.
Speaker 4 (04:54):
And if you want an extra couple million, maybe that's
another seventy five to one hundred and fifty.
Speaker 5 (04:57):
Dollars based you know, a per year. This will vary
between you know, with your situation.
Speaker 4 (05:04):
How many drivers do you have, how old are they,
what kind of house do you have, do you have
swimming pool, all that kind of stuff. But the important
thing is talk to your property casualty people if you
feel like you're exposed to this, and they will help
you get the right amount of coverage without going overboard.
It's inexpensive protection for stuff that's not likely but will
absolutely ruin your life if that happens.
Speaker 2 (05:23):
All right, switching gears here.
Speaker 3 (05:24):
Some of the biggest financial blow ups.
Speaker 2 (05:27):
We've seen come down the pike.
Speaker 3 (05:28):
They come from inside the family, adult children with addiction issues,
siblings fighting over a parent's estate, or a spouse who
remarries and changes the entire trajectory of an estate plan
or an inheritance plan. And here's the truth. Money doesn't
build character, it reveals it. And Brian, you and I
(05:49):
have seen this umpty in different times. As soon as
these dollars signs appear and people know that money is there,
folks just appear out of the woodwork and they want
to get their hands on it. And you gotta have
a plan in place to protect yourself and protect you know,
your heirs, the people you really want to inherit this
money down the.
Speaker 5 (06:10):
Road, Bob.
Speaker 4 (06:11):
One of the most depressing, uh instance and incidents in
my entire career happened when I was young, when I
was a new baby advisor, and I just remember my
client had passed away, and that wasn't a surprise. They
were a little bit more, a little bit older, uh,
and and they had some health problems and so forth.
So the phone rang and it was, Hey, this is
so and so who I had already met so and so,
(06:32):
uh because it was that that was the person that's
kind of handling things for them. And they said, we're
in the car on the way to the cemetery. And
so after the after the ceremony is over, we want
to stop by and pick up our money, and that is,
of course not how it works. My point in this
is is to say that that even the people you
trust the most may be thinking very differently than than
than you assume that they are so. And I don't
(06:54):
mean to to cause stress over somebody to start mistrusting
their families, but just be aware. Money makes people weird, Bob,
and I see it all the time with the kind
of decisions that that people are forced to make and again,
and sometimes it's things that are out of your control.
Maybe you completely trust and you know that your own
child is in a good spot and makes good decisions,
and you would trust them with your lives, but maybe
(07:14):
that spouse that they brought along maybe not so much.
So that's where you need to take special care to
make sure that your assets after you pass. Of course
you want to get that to the to that kid
that you love and trust and would never hurt you,
but maybe you don't want that spouse to have too
much access to it. That's where a trust can come in,
in terms of making sure that it's only accessible by
your own biological child and then later on down the
(07:35):
road by by that person's or your your biological grandchildren
and kind of preventing that that sort of wayward spouse
from getting into it.
Speaker 5 (07:43):
This is what legal documents can do for you.
Speaker 3 (07:45):
Yeah, and the trust just adds some additional provisions to
a will because now it talks about the when, the how,
and the who, not just the who, so you could
control timing how money is dispersed. You have a lot
of flexibility with a good, properly drafted trust. You're listening
to simply Money presented by all Worth Financial on Bob
Spon Seller along with Brian James. Brian, let's get into
(08:07):
the other risk friendships, handouts and the old quote unquote
I need some help kind of money. Let's talk about
that because I see this happen way too often.
Speaker 4 (08:18):
This is so hard because these are people who you know,
your your relatives, your close friends. I mean, every life
is hard right now, and it's probably just gonna be
this way. It just seems get a little harder every year,
the more challenges that the universe seems to want to
throw at all of us. So you know, you'll you'll
catch wind of a story that happens to your your
your friends, your family, or worse, your own children, And
I mean that's the that's a that's the hardest thing
(08:38):
to have to deal with is watching your kids struggle
a bit when you know you can help them. But
you're a generous person. So they know that, and they
come they come wanting to you know, just needing something
to get them over the hump. Or I want to
start a business and change my life, or I need
to buy house down payment and so forth. Uh So
that emotional toll of saying no to a friend or
or here's the worst part. If you say yes and
then you never get it paid back, well, friendship or
(09:00):
that relationship just completely permanently changed and you will never
ever ever forget having been stabbed in the back like that.
Speaker 3 (09:06):
Well, the other thing in human nature being what it is,
and whether it's family members, friends or shoot Brian, even charities.
I can list more times than I want to count.
I give some money to a given charity, you know,
one time, and I'm getting twelve to fifteen emails letters
in the mail. I mean, they never go away as
soon as you open that checkbook up one time. Just
(09:30):
human nature again, whether it's human beings, charities or all
the above. They think that hey, that the spickett is open,
and I can come back for more at any given time.
And you want to be very careful when you start
to open that spicket and start to help people.
Speaker 2 (09:46):
And I'm not talking about being a miser here. I
mean we need to be generous and we need to
help people when they need help.
Speaker 3 (09:53):
But you just got to go in with your eyes
wide open, so this doesn't become an expectation for folks
receiving the money. And now you're in an emotional and
maybe a financial bind because you can't get out of,
you know, an unspoken commitment that you didn't even make.
Speaker 4 (10:11):
Yeah, and consider if you decide to do this. I
mean some sometimes you just have to do it. But
if you decide to do it, tell yourself that this
is a gift, not alone. You can let the recipient
think that it's alone, but tell yourself it's a gift.
That way, if you never see it again, you won't
be too emotionally distraught over it all.
Speaker 3 (10:27):
Right, Another thing on all these topics, this is why
you need to protect your wealth quietly, and you need
to build a team around you.
Speaker 2 (10:34):
And by a team, we mean have a good attorney,
have a good CPA, and have a good fiduciary financial
advisor and have all those folks communicating with one another.
So when these.
Speaker 3 (10:47):
Potential surprises rear their ugly head, you've got a little
moate around you, you know, to kind of tell you
and take the emotion out of it and keep you
from making an emotional, short term decision that I think
in the back of your mind a lot of people
know they shouldn't be making. Oftentimes it's good to have
a couple other voices, objective, non emotional voices in your ear,
(11:10):
just to help you, you know, make the decision that
in the end you probably know you need to make anyway.
Speaker 4 (11:16):
Yeah, and that arms length the way approach is something
that a professional can provide. Attorney CPA, if a douciary
financial advisor. That's somebody who has seen it and done it.
We've all seen some stuff, so it can be very
helpful to understand what have other similar station situations that
look like me, how have they been resolved, What are
the risks that I'm aware of, and more importantly, what
(11:37):
are the risks I'm not aware of. Maybe I'm aware
of something that's why I'm thinking about in the first place,
But there's always moving parts to any of this that
a trained professional can sniff out and help you understand
which your real risk is and of course recommend proper
steps to mitigate that risk.
Speaker 3 (11:50):
Yeah again, this is just a reminder that we often
think risk means, you know, tremendous volatility in the stock market.
But the truth is the bigger risks, the ones that
really move the needle permanently, come from the people in
our lives and how we.
Speaker 2 (12:04):
Prepare for them. Here's the Allworth advice.
Speaker 3 (12:06):
When you have more to lose, you have to think
differently about protection because success attracts risk.
Speaker 2 (12:13):
You never used to worry about.
Speaker 3 (12:15):
How would you like to have no capital gains taxes?
For some, it's now doable, and we'll show you how.
Speaker 2 (12:22):
Coming up next.
Speaker 3 (12:22):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRZ the talk station. The days of
relaxing in the drawing room by the radio set are wrong.
Speaker 1 (12:33):
Gone. Of these days, we're taking it to go down
the iHeartRadio poward buy fifty five KRC dot com.
Speaker 6 (12:44):
Allworth Financial a registered investment advisory firm. Any ideas presented
during this program are not intended to provide specific financial advice.
You should consult your own financial advisor, tax consultant, or
a state planning attorney to conduct your own due diligence.
Speaker 3 (13:02):
You're listening to Simply Money, presented by all Worth Financial
on Bob's sponseller along with Brian James.
Speaker 2 (13:07):
If you can't listen to.
Speaker 3 (13:08):
Simply Money alive every night, subscribe and get our daily podcasts.
Just search Simply Money on the iHeart app or wherever
you find your podcast. Should you give money to charity
now or later? What's the smart way to retire if
you own a business. We're gonna answer those questions and
more straight ahead at six forty three. What if I
(13:29):
told you there's a way to sell stocks, take the
gains and pay exactly zero in federal capital gains tax.
Speaker 2 (13:37):
Sounds like a scam, right, It's not.
Speaker 3 (13:39):
It's called the zero percent capital gains bracket, and if
you qualify, it's one of the smartest, cleanest ways to
reposition your portfolio with zero irs headaches.
Speaker 2 (13:51):
Brian, this is a.
Speaker 3 (13:53):
Strategy that I don't see talked about nearly enough, to
say nothing of being properly utilized.
Speaker 2 (13:59):
Let's get into this because this is a good one.
Speaker 4 (14:02):
Yeah, this isn't This isn't any tricks of the trade
or anything like that.
Speaker 5 (14:05):
This is just how the tax brackets work.
Speaker 4 (14:06):
And a lot of people assume that if I earn
any money at all, then I therefore must pay taxes
and I'm just chained to this wheel forever. But here's
the whole basic setup of it. If your taxable income
this is a taxable meaning after your deductions, after your
four oh m K, after your standard deduction, so forth,
if it stays under a certain threshold, then any long
term capital gains and qualified dividends that fall in that
band get taxed at literally zero percent. So this again,
(14:29):
this isn't a special situation type thing. It's just how
does those tax brackets work. So for twenty twenty five,
this kicks in if you are or you'll lose that
zero percent bracket if you're single, if you make above
forty eight thousand dollars in taxable income roughly ninety six
thousand dollars in change for married couples filing jointly, and
if you're a head of household type situation, that's.
Speaker 5 (14:48):
About sixty five thousand dollars.
Speaker 4 (14:49):
So again, keep your taxes below that or sorry, your
income below that. If you can, that's the hard part,
and you can possibly sell that off for sell these
capital gains off for literally nothing. I'm thinking Bob of
a situation I had years ago where I had three
young adultish people, maybe from the ages of sixteen I
think twenty two, when they were grandchildren. Grandpa had given
(15:11):
them each shares of a bank that he was on
the board of, and they had grown to ridiculous amounts
of money for each one of them. And what we
were able to point out was that for the ones
who were older the one the ones that were independent,
they were able to actually keep that since they were
at low income, they were able to go ahead and
sell those shares.
Speaker 5 (15:28):
This was a gift.
Speaker 4 (15:28):
Grandpa didn't give them to them at death, so there
was no step up in cost basis. He handed it
to him at Christmas, and they were able to sell
it and pay no capital gain. And then all of
a sudden, we were able to do two things at once.
We got the portfolio diversified away from a single bank
stock which wasn't appropriate for a twenty year old, and
they didn't They got to reset their cost bases, which
to those dollars to this day are still growing and
that was probably twenty five years ago for that client.
Speaker 5 (15:50):
So interesting story.
Speaker 2 (15:51):
There, Yeah, for sure.
Speaker 3 (15:52):
And hey for people anyone over sixty sixty five and older,
you know, you can get I know, the President talked
about no taxes home social Security. What this really is
and the one big beautiful bill is an additional deduction
six thousand dollars deduction for single taxpayer, twelve thousand dollars
for a couple, and that could drop your taxable income
(16:13):
down enough to open the door to more of these
zero percent capital gains. And this is a reason to
just again, like we talk about all the time, take
a look at what your all your sources of income are,
what all of your buckets of assets are, whether they're iras, roths,
after tax brokerage accounts and craft and income strategy, because
(16:35):
you might be surprised at how much of these capital
gains you can get taken care of for these highly
concentrated positions and end up paying you know, zero in
capital gains taxes to do it as long as you,
you know, do it responsibly and in chunks.
Speaker 2 (16:49):
And we see this all the time, Brian.
Speaker 4 (16:52):
Yeah, So that's the key is making sure you know
what the various flavors of your income are and and
understand really this can be just looked closely your ten
forty or sit down with a professional advisor. Don't just
get your taxes done and hand it off and forgotten
about it. At least once you should understand exactly how
your ten forty comes together. Have your CPA or your
tax preparer walk you through it, or even if not that,
(17:12):
your your fiduciary financial advisor can kind of give you
the basis on that too.
Speaker 3 (17:16):
You're listening to Simply Money presented by all Worth Financial
Lumbob sponseller along with Brian James. Brian, let's get into
some of those watch outs that we see sometimes with
the do it yourself folks out there. They do their
own taxes, they do their own income planning, and they
forget when they start to do roth conversions or other
things that create taxable income that sometimes that's a good thing,
(17:40):
but other times that can throw your income up to
another bracket where you're paying higher Medicare premiums and you're
taking away the opportunity to diversify out of a concentrated
stock position at zero percent capital gains. Talk about some
things that you see in your office, because I know
you do a great job of running these income projections.
Speaker 4 (18:01):
Right, Yeah, So a couple things. So on those ross conversion.
By the way, I'm a big fan of ross conversion.
Speaker 5 (18:06):
I'll be honest.
Speaker 4 (18:06):
I think roths conversions are more important than managing to
get those couple very cool years where you get to
tell everybody you were in a zero percent tax bracket.
Speaker 5 (18:15):
I'll be blunt.
Speaker 4 (18:16):
I think a zero percent tax bracket for most people
is probably a missed opportunity. If your bracket is that
low for a year, great congratulations. But take some of
those pre tax dollars and consume those lower brackets, convert
them forever. Think about compounding for the rest of your life,
and compounding tax free.
Speaker 5 (18:32):
I think that's huge.
Speaker 4 (18:33):
Also, be super careful with if you own mutual funds,
be carefully you're not throwing money into them towards the
end of the year. That can give you some capital
gain distributions maybe you weren't expecting. I'm not a big
fan of mutual funds in general anymore. I think exchange
traded funds are the place to be. That's another topic.
Here's another one, if you are skating around in a
zero percent bracket, that is not the year to take
(18:54):
your capital to do your tax loss harvesting. Because if
you have a position that is sitting at a lost
position and you're only in the zero percent bracket and
you're not saving yourself very much, wait until that next year.
Some year, inevitably you'll be in a higher bracket. Hang
on to those losses a little longer. Maybe they'll fix
themselves and not be losses. We prefer gains. I would
rather have taxable gains than a deductible loss. But at
the same time, don't waste an opportunity to harvest tax
(19:17):
losses if you weren't paying much taxes to begin with.
Speaker 3 (19:20):
Yeah, and I know, we love, you know, exchange traded
funds on a going forward basis because they're much more
tax efficient. But let's face it, Brian, we got a
lot of listeners out there that have owned mutual funds
for decades and decades and made a boatload of money.
Speaker 2 (19:34):
And that's not a bad thing at all. The issue
is you get those.
Speaker 3 (19:38):
Declared capital gains every year, you know, between October and December,
and you got to factor that in because those are
non voluntary capital gains distributions, whether you sell a share
or not. So when you sit down and start mapping
out these income strategies, make sure you account for those
capital gains that are going to get declared, whether you
sell anything or not. Here's the worth advice. If you
(20:00):
can legally pay zero tax on gains, do it. The
zero percent capital gains bracket is one of the cleanest,
most powerful tax tools for retirees.
Speaker 2 (20:11):
And high net worth families alike.
Speaker 3 (20:13):
Here's a question you might have asked yourself, should I
invest in real estate?
Speaker 2 (20:17):
We'll look at the pros and cons coming up next.
You'll listen.
Speaker 3 (20:20):
You're listening to Simply Money presented by Allworth Financial on
fifty five KRC, the talk station.
Speaker 1 (20:26):
We call them every day Millionaire. Every day listen to
Dave Ramsey Rich.
Speaker 3 (20:31):
People ask how much broth, people ask how much down
and how much a month?
Speaker 1 (20:36):
With Dave's ex seven started asking how much my fifty.
Speaker 6 (20:39):
Five KARC the talk station KRC and iHeartRadio station.
Speaker 3 (20:49):
If you're listening to Simply Money presented by Allworth Financial
on Bob Sponseller along with Brian James joined tonight by
our real Estate expert Michelle Sloan, owner of Remax, Time
and Miss.
Speaker 2 (21:00):
This is a topic that Brian.
Speaker 3 (21:02):
And I are excited to get into because it comes
up all the time with our clients. Is real estate
a good investment, especially now considering prices are higher than ever.
You know, talk about pros and cons of real estate
as an investment.
Speaker 7 (21:19):
Well, it is no matter what whether you're buying a
home that is for your personal use or buying a
home that you're going to use as a rental or
a vacation home or an airbnb, it is an investment
one way or another. It's the biggest investment that you're
ever going to make. So the question is do you
try to jump into the market right now? When we
(21:40):
have talked about the home sales year over year are
up seven percent, So yes, the prices of homes are
up there, higher than they were, but we don't anticipate
them to be lower anytime soon. So you get in today,
it's going to be a better price most likely then
(22:02):
it will be a year from now. And you have
to you have to do your own financial planning, and
you have to talk to people that know your situation
because every situation is different. Are you going to need
a mortgage, Well, you're gonna have to bake in that
interest rate, in those closing costs, and maybe you have
to do some repairs depending on what you're looking for.
(22:25):
You want to you want to look at the big picture.
If you're gonna pay cash, it's a different story. You
may not have as much to you You're not gonna
have that overhead of a mortgage payment and the interest
rate and all of that stuff. So there seems to
be an awful lot of buyers today and.
Speaker 4 (22:46):
How on the topic of the mortgage there so for
those people looking maybe for a second home, these are
people who tend to be of course, you know, maybe
retired or maybe are about to retire. Is can you
talk a little bit about the challenge of getting a
mortgage if you're you may have plenty of assets but
no income. Some banks are cool with that, some banks aren't,
even though you've got a lot of money in the bank.
What kind of situations have you seen like that, Yeah,
(23:07):
you have to shop around.
Speaker 7 (23:09):
I am finding that a lot of buyers in that
situation who maybe are in their seventies and they're retired,
they still have some income. It may not be as
much as if they were working full time, and more
often than not, they're going to put maybe seventy or
eighty percent down in cash and then only get a
small mortgage. And that's really the way to go if
(23:31):
you have the means to do that. That way, you
know you're not using all of your cash and you
have leaving some of that available, and then you're only
taking out a small mortgage. You might have to do
just a little bit of shopping, but there are definitely
lenders out there who can help you, all right.
Speaker 3 (23:49):
Michelle, I'm curious because I think we have to distinguish
between you know, when we buy a home, are we
buying it to live in it or you know a
second home you know, vacation destination to live in it,
or are we buying it as a rental income source,
you know, a true one hundred percent investment property. Talk
about the whole property for rental income market right now?
(24:13):
How are average rents trending? Are you seeing people successfully
handle rental property right now? When you factor in all
the tax benefits of the depreciation You've already talked about
potential appreciation of the home price to say nothing in
the rental income is that still working right now as
a good cash flow investment strategy.
Speaker 2 (24:35):
Absolutely.
Speaker 7 (24:35):
There is always opportunities in the real estate industry. I
think that you have to decide if you're buying a
home as rental income. A lot of the HLAs have
tightened down. And this is the one thing that I
get questioned aful an awful lot. I have three hundred
thousand dollars to spend. I want to buy a rental
(24:58):
property like to be maybe get a condo or something
like that, so I don't have to do all of
the maintenance.
Speaker 5 (25:06):
What can you find for me?
Speaker 7 (25:07):
Well, that's going to be more of a challenge because
if you are buying a condo for rental purposes, oftentimes
the HOA has clamped down and not allowing rentals in
a lot of communities. So again it's a lot of research,
(25:28):
but there are opportunities. And then if you have to
think about if you're buying a rental single family home,
you're gonna have maintenance. Who's gonna take care of the yard,
the lawn, the exterior, that kind of thing. The average
rent right now in Cincinnati is about fourteen hundred.
Speaker 5 (25:46):
Dollars a month.
Speaker 7 (25:48):
Uh, that sounds so high. But and it is, but
and it has the rent has rows seven point four percent,
So you want to do some calculations, you know.
Speaker 4 (26:02):
So is it even possible because I'll have people throw
this out every now and then they inherit money, they.
Speaker 5 (26:06):
Retire and so forth. Is it really even possible?
Speaker 4 (26:08):
Because we get this idea that, hey, I'll just buy
a property and I'm gonna airbn be it. That was
cool maybe fifteen years ago you could actually you know,
make a little cash flow it. Yeah, you could totally
make it pay for itself. But now I'm feeling like
it maybe may it may get you just under a
break even, but you're gonna lose money.
Speaker 5 (26:24):
Am I wrong? There just seems like every situation I
look at, it's just there's a lot of work involved,
and people don't see that.
Speaker 7 (26:30):
You know, every time somebody's in and out, you have
to clean and then if they bust things up, you
know you're gonna have to fix things.
Speaker 5 (26:38):
And then you reat it like a rental as a
phrase for a reason. Yeah, yeah, you know.
Speaker 7 (26:42):
An airbnb. I think again, it sounds great. Uh, but
I would do I would do. Buyer beware, if you're
planning to do something like that, because there are a
lot of hitting costs that you may not consider. Yeah,
it sounds perfect, you know, buy let's buy a place
in downtown Cincinnati overlooking the river, and you know, we'll
(27:06):
airbnb it and we'll get one thousand dollars a night. Well,
you're not always going to be rented. It's it's gonna
cost you money. You're gonna to hire somebody unless you're
gonna do the work, unless you're going to clean after
every person.
Speaker 4 (27:19):
And you're gonna be in this thing. Yeah, you're gonna
be in it more than you ever intended to.
Speaker 7 (27:25):
Absolutely.
Speaker 2 (27:26):
Well, there's a lot of work, Michelle.
Speaker 3 (27:28):
You know something that that I've become aware of here
in recent months, you know, is you brought up the hoas.
I think you got to do your due diligence on
the financial condition of that hoas because insurance rates are climbing.
So these condo buildings are in need of repairs, which
means assessments and depending on the location, you know, big
(27:50):
time assessments. You know, think about areas in Florida where
these these condos that are forty fifty years old are
not hurricane proof. You know, you got to look beyond
just the price of the place and what you think
you can rent it for. Right, So, are there particular
locations you're seeing that are very attractive versus you know,
big watch out signs?
Speaker 7 (28:11):
You know that, And that's a really good question, and
it really is going to it's going to be very personal.
So if the rentals that Scott and I own, they're
all local, so if we need to get to them quickly,
we can. But thinking of I would never buy personally
a rental in Florida because I can't keep my eyes
(28:34):
on it.
Speaker 5 (28:35):
It's kind of like owning a bar.
Speaker 7 (28:38):
If you're not in that bar all the time, people
are going to be drinking your alcohol and they're going
to be stealing from the till unless you're there and
monitoring the situation, or maybe hiring somebody that you know
and trust. So as far as a location, it really
really depends on what type of property you're looking for.
(28:59):
If you're looking for all higher end property, if you're
looking for something that's you know, a fixer upper, there's
there's so many options. But the biggest thing that I
can say is planning is key. Connect with a smart
financial planner. I think we know some and a really
smart realtor. I think we know one of those too.
Speaker 3 (29:20):
It sounds great. Hey, thanks, thanks as always for all
your help. Michelle. You're listening to Simply Money, presented by
all Worth Financial on fifty five KRC the Talk station.
It's the main event for the importance events of today.
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Every day we discover something new and important.
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I do think he is too old to run.
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In twenty twenty.
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Speaker 3 (30:13):
You're listening to Simply Money, presented by all Worth Financial
on Bob Sponseller along with Brian James.
Speaker 2 (30:19):
Do you have a financial question you'd like for us
to answer.
Speaker 3 (30:21):
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 come straight to us.
All right, Karen and Montgomery says, Hey, we've been giving
to charities for years, but we're just writing those checks.
Is a donor advice fund really that much better or
(30:41):
just another layer of complexity? Sounds like Karen listens to
us talk about this all the time, Brian, is this
just hot air that we're spitting out or is there
are there real benefits there?
Speaker 4 (30:52):
Well, there's a lot of hot air that flows around
this studio. We get here, we need an extra event
to get rid of the hot air. But anyway, now, no,
but I was just thinking the same thing. We've had
this question very frequently, at least once or twice a week,
it seems like when we're doing this segment. So yeah, Karen,
so donor advice fund? Maybe I think the real thing
to ask is is writing a check the most efficient
(31:15):
way that I can do my charitable giving. First off,
good on you for being friendly to other people and
your generosity. But don't don't cheat yourself out of opportunities
just because you haven't had the time yet to think
about it. So first thing I would say, before you
look at a donor advice fund, I would just look
at if you give the same amount of money if
you kind of a predictable amount. One other thing to
look at to the same charity is if you do
(31:36):
you happen to have any appreciated securities in your portfolio anywhere.
What I mean by that is maybe you've got some
P and G that you put a thousand bucks into
and now over time it's now worth you know, two
thousand dollars something like that. Well, what you can do
is literally just give those shares to the charity. The
charity very very well knows how this works. They're going
to have a brochure with their logo on it and
(31:57):
an account number of a financial institution and something called
a DTCN. That is all you need to give your
current the current holder of your equities to make sure
that so that they can send that over. And then
the whole point of that is you're going to dodge
the gain. So you in that particular example, you would
get two thousand dollars deduction because you donated those shares.
You would not have to pay any taxes on the
(32:18):
capital gain because you didn't sell it.
Speaker 5 (32:20):
You gave it to the charity.
Speaker 4 (32:21):
They're immediately going to turn around and sell it because
they don't want to own stocks, they want the cash,
and they are a five oh one C three presumably
therefore they won't pay any taxes either. A donor advice
fund to get your question this is if you're putting
significant amounts of money away, but you're not giving quite
enough away to beat the standard deduction, then a donor
advice fund may make some sense to lump a bunch
(32:41):
of years. Let's say, if you do ten thousand dollars
per year to a church or something, if you lump
five of those together donate fifty thousand to a donor
advised fund, you get the full deduction in that one
singular tax here. But then the donor advised fund will
dole it out to the recipients on your schedule. So
your church or your whatever charitable cud organization you're donating to,
does not know that you've already carved out a huge
(33:03):
amount of money. They're seeing the same cash flow they
always have, just from a different source. All right, Long,
win that answered that. Let's move on to David. He's
got an important question too. David owns a business he's
thinking about retiring in the next five years, and he asks,
how do I balance investing in growth now with making
that business attractive for a future sale.
Speaker 5 (33:20):
What do you think of that, Bob, you are a
business owner.
Speaker 2 (33:22):
Yeah, A lot to think about here, David.
Speaker 3 (33:24):
Here, here's you know, without knowing your entire situation, here's
a couple of things to think about. You know, it
all comes down to how these businesses are valued. And
the buyers that might be coming in to buy your business.
Speaker 2 (33:37):
You know, if they get good.
Speaker 3 (33:38):
Representation, they're going to be very savvy and looking at financials.
And here's what I mean by that. If you're just
trying to strip cash or strip things out of this
business over the next five years between now and when
you're retired, they're going to see that. And the way
to get the maximum value for your business is keep
operating that thing built for success.
Speaker 2 (34:00):
You want to look at.
Speaker 3 (34:00):
A trend in revenues and earnings, and you want to
keep the machine running. You want to make that thing
look as successful as possible run. It tends to work
the same with a private business that it does with
a publicly traded stock. Last quarter's earnings are great, but
they want to see projected future earnings. So I would
(34:21):
just say, you know, without getting ridiculous. You don't want
to make twenty year investments when you know you're not
going to be around in five because you're not going
to get that money back. But by the same token,
don't just bleed this thing to death and allow it
to die on the vine, because your value for that business,
which you've probably spent decades building, will shrink rather than grow,
(34:43):
and we don't want to see that happen.
Speaker 2 (34:45):
Hope that helps, all right.
Speaker 3 (34:46):
Sarah, In Westchester, we're in our early sixties and considering
concierge's medicine or high end retirement communities. How do we
realistically plan for healthcare cost in that situation at that level?
This is a great question, Brian.
Speaker 5 (35:02):
You know, I want concierge car service.
Speaker 4 (35:05):
I want to be able to get same day appointments
to get my car fixed. Maybe somebody could invent that
business and make millions and I'll be your first customer.
But now, for those of you who don't know what
Sarah's referring to here is concierge medical services.
Speaker 5 (35:17):
This is basically what you're getting for this.
Speaker 4 (35:19):
It's something you're paying out of pocket, by the way,
and Medicare does not cover the expenses for this, But
here's what you get in exchange same day or next
day appointments. You can have longer time with your advisor
or your advisor, your dicing where my brain is your
doctor maybe an hour long appointment to ask questions versus
a ten to fifteen minute breeze in, breeze out, and
then fifteen young interns doing the actual work. You also
(35:39):
get twenty four to seven access phone, text, email to
your doctors, and then they'll coordinate a lot of things
for you. So it's just again it's concierge. They're doing
a lot more things for you than the normal approach
cost to it. So this is probably an extra fifteen
hundred to three thousand dollars per person per year.
Speaker 5 (35:54):
That's for a basic practice. It can be more like
three to six thousand.
Speaker 4 (35:57):
And then there are of course, you know, guess what,
there's Cadillac programs out there that can be ten to
twenty five thousand per year, depending on what you need.
So but your question, I think that's a great service.
By the way, my parents have it, they love it.
Your question, I would budget another Brian, I have to
interrupt here.
Speaker 3 (36:11):
There are things you know, Concierge's Auto service. You just
I know you love to drive these twenty year old
Toyota pickups where you don't have to do anything to
them and they're paid for. There are vehicles out there,
you know, BMW, Mercedes, where they will actually come to
your office, pick up your vehicle. Service it, wash it,
(36:33):
wax it, bring it back. It's wonderful. You should try
it empty every other week.
Speaker 5 (36:38):
Empty service.
Speaker 3 (36:40):
Okay, all right, you can't die with all that money
you've got squirreled away love truck one of your coma.
Speaker 2 (36:48):
All right.
Speaker 3 (36:48):
We would usually say don't blow your money on lottery tickets.
But next we've got a story where that advice didn't
apply and it came in exactly the right moment. You're
listening to Simply Money, presented by Allworth Financial on fifty
five KRC the talk station Mark Levin, let.
Speaker 7 (37:06):
Me tell you ible information and of course not just
one sided view.
Speaker 1 (37:10):
News that affects you. At the top end to bottom
of the hour, fifty five KRZ the talk station.
Speaker 3 (37:20):
You're listening to Simply Money, presented by Allworth Financial on
Bob Sponsller along with Brian James, a Carrollton, Ohio man
Jeffrey Fraser recently won five hundred thousand dollars from a
scratch off lottery ticket while his wife, Donna, was undergoing
cancer treatment. Brian, this is one of those rare lottery
(37:42):
stories that couldn't have come at a better time.
Speaker 2 (37:45):
And what a wonderful story.
Speaker 4 (37:47):
Yeah, it just makes you realize that sometimes there is
somebody actually kind of watching out here and talk about
a well timed windfall. So the story here is mister
Fraser and his wife had just come home from one
of her treatment sessions. She was undergoing awful lot of
course medical treatments for her cancer, and she did and
he told her, and she didn't believe it was real
at first, and she said, did did you did you
fall down or did you hit your head on something?
(38:09):
But only really accept that it when she when they
pulled it up through the lottery app and she saw
that the results were you know, we're we're truly real.
So after taxes, this couple's going to take home about
three hundred and sixty thousand dollars while there.
Speaker 5 (38:21):
And this is the mind blowing part, Bob.
Speaker 4 (38:22):
This is while they're dealing with these ongoing medical costs,
the stress of serious illness, you know, and with the
family worried about it and all those kinds of things.
So this this is obviously, you know, it doesn't solve
the the big problem at hand here, but it certainly
takes a lot of the pressure off and it can help.
Of course, it's going to help people, you know, focus
on just her and getting her, getting her healthy again,
and they can take their eye off the you know,
(38:43):
the financial ball for just a little bit.
Speaker 3 (38:46):
Well, I think the fun part of this story is
Donna didn't even believe her husband that he had won.
Speaker 5 (38:51):
She's like, let's let's pull.
Speaker 3 (38:53):
Out the computer and log on and make sure you
haven't lost your mind. I would have loved to have
watched that whole scene unfold in the kitchen or the
office or wherever they did that.
Speaker 5 (39:02):
Why are you doing this to me, you son of it?
Speaker 4 (39:04):
You better not be Yeah, I'm sure there was a
lot of romance involved in the first vers thirty seconds
of that conversation.
Speaker 5 (39:10):
No, honey, I swear. Look look at the app Look
look look look look.
Speaker 2 (39:13):
Yeah.
Speaker 5 (39:14):
But we're happy for that.
Speaker 3 (39:14):
It's a great story, absolutely, and we need to keep
you know, Jeffrey and Donna in our prayers here is
hopefully this money will help, but like you said, we
still need the Good Lord to step in here and
help her get cured of cancer.
Speaker 2 (39:28):
And I hope that happens.
Speaker 5 (39:29):
Yeah, so let's talk a little bit about windfalls. Right.
They're very rare.
Speaker 4 (39:32):
I mean, that's why we call them a windfall, and
they're unexpected for sure, and they obviously are can be
happy situations, but at the same time, it can also
be jarring to all of a sudden, I have flexibility
to do what it is, to do whatever I want
to do to some extent, and what is it that
I want to do? So the first thing to do
with the windfall is nothing. Stop, take a breath, Talk
to your family about how we would what are the opportunities,
(39:52):
what are the needs that we have. Don't rush into anything,
it's just not necessary. Take a breath, talk to professionals.
Understand you know what your opportunities are. But again, just
take your time with it. If you if you have
this type of a situation.
Speaker 2 (40:03):
Thanks for listening tonight.
Speaker 3 (40:04):
Tune in tomorrow we will talk about the lessons you
can learn from going into a retirement time machine you've
been listening to. Simply money presented by all Worth Financial
on fifty five KRC, the Talk station.
Speaker 1 (40:17):
This is for your information.
Speaker 3 (40:19):
Everything we do we keep you informed, is FYI you information.
We'll have the latest information on.
Speaker 1 (40:25):
The whole situation in guys release the info on the
Russian summit.
Speaker 6 (40:30):
They would like to meet with me.
Speaker 1 (40:32):
Check in throughout the day. We have information for your information,
my news, traffic and weather, information about my money, on
tariffs and trade. This is important information for are you listen?
Just FYI fifty five KRC, the Talk Station,
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