September 12, 2025 • 37 mins
On this episode of Simply Money presented by Allworth Financial, Bob and Brian break down what your “money personality” says about the way you invest—and how it might be helping or hurting your long-term plan. Are you a thrill-seeker, a security blanket, a control freak, a balanced mediator, or maybe even an ostrich with your head in the sand? They’ll walk through the pros and cons of each type and how to build a portfolio that actually matches who you are. Later, they dive into the real-life dilemma of divorced couples hanging onto 2% mortgages—why cheap debt may be keeping people tied together long after love is gone, and the financial (and emotional) tradeoffs of “nesting” or buying each other out. Plus, Jocile Ehrlich from the Better Business Bureau stops by with the newest scams you need to watch for, and the show wraps up with a retirement checklist and Brian’s Bottom Line.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:06):
Tonight a portfolio personality test, how to get on the
same financial page as your partner and more. You're listening
to Simply Money, presented by all Worth Financial on Bob
Sponseller along with Brian James. Have you ever taken one
of those personality quizzes, stuff like goofy stuff like what
kind of dog are you? What kind of musician are you?
(00:28):
These things are everywhere, and it turns out your portfolio
or the way you treat your portfolio has a personality
as well. So tonight let's have let's have a little
fun with this. We'll look at the different portfolio personalities
out there, try to poke a little fun at it,
and then talk about what it really means for your
financial future. Brian kick us off with the first personality
(00:50):
profile when it comes to money.
Speaker 2 (00:53):
Well, Bob, for I want to kick it off with
what kind of dog you are? I'm sure you've taken
these questions. I'm feeling cockapoos your little kckapoo.
Speaker 1 (01:00):
You maybe absolutely yeah, I'm a fufu key sheeting kind
of guy.
Speaker 2 (01:05):
I didn't say fu fu you did, but it may
come up later this week anyway. So personalities when it
comes to investing the thrill seeker. This is all stocks,
all the time. Put me on that roller coaster, make
me want to throw up. If your entire portfolio is
one hundred percent stocks, you are the adrenaline junkie of investing.
I'm gonna be honest about this is me. I'm fifty one.
I'm gonna work another ten years. The market's gonna punch
(01:25):
me in the face. Maybe fifteen years. Market's gonna punch
me in the face several times. I don't really care
about the roller coaster. I won't say I love the
ups and downs, but I know I'm not gonna freak
out on the downside, So why limit my portfolio. I'm
just gonna let it recover. This is all Andy Stouts
problem anyway. He's the one who decides.
Speaker 3 (01:39):
Where my money goes, and I get to go yell
at him every now and then.
Speaker 2 (01:42):
But anyway, these are people who when the markets drop
twenty percent, we don't panic. We call it a buying
opportunity flip. Side of this, though, is that sometimes these
thrill seekers sort of underestimate how gut wrenching a big
downturn feels. When you're talking about retirement income It's one
thing to ride out volatility at thirty five e no
big deals buying opportunity very different when you're sixty five
and this is now something that needs to generate income
(02:03):
for you in the near future.
Speaker 3 (02:05):
Yeah.
Speaker 1 (02:06):
What I always talk to clients about it. You know,
when it comes to risk tolerance. To me, there's there's
the economic component. What do you have to earn and
maintain to make your long term financial plan work? That's
just facts, And then there's the motional computer component. How
much risk are you not able to take before you
call us, pull the ripcord and said I can't take
(02:26):
it anymore, put me all to cash. Because when you
bail on this thing and move all to cash, that's
a huge mistake. And in my opinion, Brian, if we
allow clients to get to that point, we haven't done
our job on the front end. Yep. So yep, let's
move on to the next kind of investor, the security
blanket heavy cash holding type of person.
Speaker 3 (02:48):
Yeah.
Speaker 2 (02:49):
So this is what you were just talking about. It's
the opposite of the roller coaster rider. This is the
person that likes the you know, the love boat thing
that goes through the tunnel and.
Speaker 3 (02:55):
Is quiet and safe.
Speaker 2 (02:56):
So these folks keep large amounts of money in cash, CDs,
savings counts because they like to see the balance. It
needs to be steady and predictable and you know, not
really moving much in either direction. So cash feels safe.
But there's a very very secret risk, hidden risk in there.
Inflation will quietly eat away for buying power. It's one
of the analogies I use here is if you throw
(03:17):
a frog into a pot of boiling water, it's gonna
jump out right away. But if you stick it in
a pot of room temperature water and slowly heat it,
it's gonna sit there and boil to death.
Speaker 3 (03:25):
That's inflation.
Speaker 2 (03:26):
We don't see it coming, and by the time we
notice how much damage it's done, it's too late to
do anything about it.
Speaker 3 (03:31):
So the way to handle this cash is important.
Speaker 2 (03:33):
Figure out how much cash you could possibly need in
maybe the next twelve to twenty four months for several
months worth living expenses. If you've got a big expense
coming up wedding, got to replace the h VC or whatever.
If you know, if you have money that is basically
pre spent, get it out of the risky stuff. But otherwise,
once you've identified that that frees you up to let
something in your portfolio grow.
Speaker 3 (03:52):
So understand your market history and take advantage of what
it can do for you.
Speaker 1 (03:55):
Yeah, and I sound like a broken record here, but
it does all come down to what you need to
do to accomplish your financial goals. I mean, Brian, I've
got some clients where they want to sit on large
amounts of cash or quivalent assets, and you know what,
they have a pension, they have social security, They don't
spend much money, and that makes them feel good and
(04:16):
not panic and not have a heart attack in their
mid eighties. And you know what, it's okay. If you
can hit your goals and not take on any investment risk,
it's totally fine. The key is to know where you
stand and know you know how your plan is going
to hold up against inflation, and just make sure you're
in a good spot. Don't just assume it's all going
(04:37):
to work out, all right, let's.
Speaker 3 (04:40):
Thought.
Speaker 2 (04:41):
So where I see people doing this sometimes is will
inherit cash. So mom and dad have passed away, the
estate has settled, and I have you know, sometimes it's
several hundred thousand dollars or even more pilot cash that
drops out of the sky.
Speaker 1 (04:52):
I have.
Speaker 2 (04:52):
I've had a lot of recent conversations with people in
that situation, and they seem to somehow just identify, well,
that's from mom and dad, that must be my emergency.
And so it's an enormous amount of money that just
sits in cash, and people have trouble getting over the
hump of I should do something different with that.
Speaker 1 (05:07):
Well, and we also have people, Brian, I'm sure you
do where it's like, well, I'll get in when things
look more certain in the world. You know, they want
to sit on cash because they just expect something horrible
to happen. And that's where you show them the chart
of the stock market going back to nineteen twenty six.
Horrible things happen all the time. You know, pick your
(05:29):
spot on that graph where it was the right time
to get involved in the stock market or growth type investments.
People can't find it, you know, there's no data plot
that says, all, right, now's the time to get in.
Speaker 2 (05:41):
Exactly one one quick I met a little little litmus
test here. Think to yourself, what uninsured risk do you
have that could possibly cost you several hundred thousand dollars?
You know, in a very short run, and the answer
for most people is going to be not a whole lot.
So let's move on to the control freak. This is
somebody who loves these individual stocks. I don't trust mutual
I don't want some faceless black box picking companies for me.
(06:03):
I'll just pick them myself. So these are the folks
who do the research. They watch CNBC all day. Maybe
they've got three screens in their office, while it HiT's
a little close to home because I got three screens
on my desk. But anyway, I guess I'm a control freak.
But these folks that they just like being in that range.
They want to feel like they're smarter than the market.
Sometimes they are, but a lot of times it's like
trying to beat any professional athlete out there. It's fun
(06:23):
to try, but the odds are just stacked against you
in the long term. So make sure you're using your
time the best way you possibly can.
Speaker 1 (06:29):
Brian, I've got a couple clients like this, and they're
retired folks that just, quite frankly, I think they're bored.
They don't have enough to do. And when you're used
to running something and being in control all day, and
being very busy. The personality profile is they love the
fact that they can control something anything. And I'm thinking
(06:52):
of one guy that moved a bunch of money to
cash because he thinks the whole world's gonna come to
an end. But then in the next breath he's emailed me,
sending me messages wanting me to help him pick AI stocks.
So it's just they want to pick stocks. Meanwhile, the
bulk of their portfolio is sitting in cash doing next
to nothing. Had they just left the money in a
(07:14):
diversified portfolio, they would have gotten to participate in AI
along with a bunch of other stuff and made a
whole lot more money than they're making by being quote
unquote right picking a couple of individual stocks.
Speaker 2 (07:28):
If you've got a properly diversified portfolio, then whatever the
flavor of the day is is already in it.
Speaker 1 (07:32):
Right.
Speaker 2 (07:33):
So AI makes up a good chunk already of the
S and P five hundred because of its cap weighted nature.
Those big stocks out there, the videos of the world, they're.
Speaker 3 (07:41):
Already in there.
Speaker 2 (07:42):
So you're already benefiting from stuff like that. You want
to take a flyer on something, go ahead, knock yourself out.
But at the end of the day, we're just scratching
an itch to get a little dopamine, and we're gambling
a little bit. I say, go to the casino because
the drinks might be free.
Speaker 1 (07:54):
All right, Well, let's talk about the vast majority. I
think of people out there, the balanced mediator investors, the
good old sixty forty split, sixty percent stock forty percent bond,
set it and forget it, never look at it. And
obviously these are not thrill seekers. They're not overly cautious.
They have more of a peacemaker mentality. They want everything.
(08:14):
They want growth and security, and they don't want to
look at it, Set it and forget it. That balance
has worked for decades, Brian. But here's the catch. The
markets do evolve. What worked in the nineties doesn't always
work today. So even the mediators need to refresh once
in a while and be open to some new ideas.
Speaker 2 (08:34):
What say you, yeah, so I think this is what
we're starting to use A little bit, a little bit,
not a whole lot. But sometimes there are positions where
BUFFERDTFS makes some sense to replace a portion of what
we used to consider the bond only portion of a portfolio.
Those things have pros and cons too, but it's just
a general willingness of Okay, if we want a little
more stability, let's learn about something new. Even if we
(08:54):
don't pull the trigger on, at least we've had the discussion.
So the sixty forty split, this is somebody who really
wants to try, really kind of said it and forget
it and not think about it. There's nothing wrong with that.
I still think that's the strategy that works pretty.
Speaker 3 (09:04):
Well in the long run. So now we're gonna move.
Speaker 1 (09:07):
On to just add some tax efficiency to the mix.
That's that's the main thing.
Speaker 2 (09:11):
Yeah, that's a great point. Thanks for slowing my role there. Yeah,
that's a great point. Let's not lose sight of that. Yeah,
there are tools out there that maybe you haven't used
in the past, and they're new, but at the same time,
technologically they couldn't have been done in your prior fifteen
to twenty years. But don't miss opportunities just because it's
something you're you know, not quite familiar with.
Speaker 1 (09:28):
All Right, last personality type we want to touch on
is the ostrich. The idea. No, these people have no
idea what they own, They have no financial plan. They
have their head in the sand, and if you ask
them what's in their portfolio, they say, yeah, I think
I've got a four oh one k What do you
say to those people, Brian, Yeah, what I say to those.
Speaker 2 (09:46):
People is I bet you got like seven four oh
one k is because you've left them all behind from
the various jobs you've moved between, and then then we
have a little bit of work to get it all
in one place. The fun part of these with for
these types of folks. First of all, this is what
we're not mocking anyone. This is why I have a job.
If people, you know, could understand this stuff and enjoyed it,
I go unemployed. So but the really fun part is
helping people see these types of folks see exactly what
(10:07):
they've built. Seven tiny accounts usually results in one giant
account when you get it all in one place, and
it can be a little bit of an eye opener
for people and it really kind of gets the juices
flow and as to oh my gosh, I have been
doing something even though I wasn't.
Speaker 3 (10:19):
Aware of it, you know, along the way. But these
folks just don't want to deal with it.
Speaker 2 (10:23):
These are the ones that call will do a financial
plan and then we can't get them to come back
in for their any reviews because they just don't want
to talk about it. That's what advisors do, it's what
we're here for. But definitely a team sports, so we
want to make sure everybody knows what's going on.
Speaker 1 (10:35):
All right, Let's take a risk here, Brian, and wade
into the deep end of the pool here and talk
about personality profiles from when one partner has a completely
different personality on how they want to handle money than
their spouse or partner. I'm sure you've dealt with that before.
Speaker 3 (10:52):
I have.
Speaker 1 (10:53):
How do you handle these situations? Brian?
Speaker 2 (10:55):
So the one thing I will pat myself on the
back for I have become very good getting two people
sitting across the table for me to quit looking at
me and look at each other, because very often two
spouses have not had the big picture talk. They're standing
way too close to their own trees, and my job
is to pull them back so they can see the
entire forest. So and I know I've kind of won
(11:16):
that little interaction when they listen to something I said
and it triggers something and they start looking at each
other and finally talking to each other instead of talking
to me. So the step here, the first step here
is step back from those dollars and cents. Figure out
what you both want life to look like in five, ten,
twenty years, retirement, travel, helping your kids, whatever that is.
But you've got to have those discussions and make sure
you're on the same page. Maybe you even give each
(11:37):
other your own little fun accounts. Right, so we each
have this amount of money, and nobody gets to question
the other person does not get to question what you
spend it on. Go do it stupid things that I hate. Whatever,
it's your money, do whatever you want. But that means
we've clearly drawn a line between the dollars we talk
about and the dollars that we don't. And I'll throw
out there, automate as much as you can.
Speaker 3 (11:54):
You know, let your.
Speaker 2 (11:55):
Bills happen automatically, and your retirement savings, get the mortgage paid.
Speaker 3 (12:00):
Put it all on autopilot.
Speaker 2 (12:01):
Then neither spouse has the burden of making sure that
all this stuff gets done. You can both sit there
and watch your little machine work. I think that is
an underused technique.
Speaker 1 (12:10):
I love all those ideas, Brian. I mean Oftentimes, if
the couple can just agree that, hey, this objective third
party guy, this Brian guy who knows something about this
and will actually help us build a financial plan, Let's
let him handle the serious money and then yeah, we'll
each have our little fun money accounts that neither partner
(12:31):
or spouse questions, and that way everybody can have their
little cake and eat it too. Meanwhile, they're actually building
a good, solid financial plan for the future. Here's the
all Worth advice. Financial planning isn't just about spreadsheets. It's
about relationships. And when you get your money harmony in
your marriage, you don't just grow wealth, you grow peace
(12:52):
and your marriage improves as well. What itever makes sense
to live with the prespeaking of marriage, whatever makes to
live with the person you just divorced. We'll explore that
situation next. You're listening to Simply Money presented by Allworth
Financial on fifty five KRS the talk station. You're listening
(13:15):
to Simply Money presented by Allworth Financial on Bob Spondseller
along with Brian James. If you're close to or already
in retirement, what should you actually do with your investments?
Right now? We've got a practical checklist tailored for retirement
success in uncertain times. That's coming up at six forty three. Recently,
Kiplinger spotlighted an eye catching move in Rhode Island, Brian.
(13:39):
Starting in July of twenty twenty six, the state is
rolling out a steep new surcharge on second homes valued
at one million dollars or more if they aren't your
primary residents, Brian. Hopefully this is not a trend that's
going to catch on across the country, but I'm afraid
it might be.
Speaker 2 (13:59):
Yeah, the tiny most of our states with one of
the biggest little slaps across the faith for owning investment property.
So the media is calling this the Taylor Swift tax,
not because she lobbied for it, but she's gonna be
affected by it. She owns one of these high profile
properties that's gonna get hit by it. So according to Kiplinger,
she has a coastal estate in watch Hill that's going
to be subject to about one hundred and thirty six
(14:20):
thousand dollars annual surcharge under this plan. So the point
of this, there's really twofold goal here, generating revenue for
affordable housing initiatives and reducing the number of lights out,
vacation homes just sitting there empty and just being an
asset on somebody's balance sheet, rather than bringing people in
to drive the local economy.
Speaker 1 (14:39):
Brian, should we think of this as a tariff on
concert tickets?
Speaker 2 (14:44):
You know, very cleverly put Bob, I think, you know,
if I have a feeling, there's other people than Taylor
Swift who are also going to get impacted by this.
Watch Hill is a pretty ritzy part of part of
the world there, so possibly maybe she'll react that way.
Speaker 3 (14:57):
We'll hear from her soon about it. But this is
a thing. It's starting to peer across the country.
Speaker 2 (15:01):
If you do own or you plan on buying that
high value second home, don't only worry.
Speaker 3 (15:05):
About the purchase price.
Speaker 2 (15:07):
We've always known we got to worry about ha's and
insurance and hurricane areas.
Speaker 3 (15:10):
That's a problem.
Speaker 2 (15:11):
But now you got to watch for local tax regulations.
What is that going to do to you? Maybe it's
not happening now, but before you pull the trigger, I
would get an idea for if there are rumblings of
your whatever little local area you're looking at, see if
they're thinking about doing this kind of thing.
Speaker 3 (15:23):
And work that into your budget.
Speaker 1 (15:25):
Speaking of homes, when people get divorced, the house is
usually the most financially complex piece of the entire arrangement.
And today, let's face it, with interest rates still very high,
we're seeing couples who don't want to sell or refinance.
Some are even cohabitating post divorce just to hold on
to their two percent mortgage. Brian, I know, you've got
(15:48):
to store a real life story from down in Cape Canaveral, Florida.
A couple that has made life real interesting for themselves
just to hold on to that low interest rate mortgage.
Speaker 2 (16:00):
The craziness of the housing markets for these past couple
decades and interest rates and all that are forcing people
to come up with some creative solutions. So this is
a recently divorced couple down in Cape Canaveral in Florida.
They're still sort of living together even though they're divorced.
So they refinance their home way back in twenty twenty
around two something percent, which is fantastic, right, that's kind
of the gold standard. Anybody's got two percent mortgage, congratulations,
(16:23):
you're never going to have another mortgage.
Speaker 3 (16:24):
And that's what they're trying to do.
Speaker 2 (16:25):
So if they truly wanted to split this up, they
would have to both sell the house, go get their
own homes and get new mortgages individually, and those are
going to be over six percent, So that low rate
is absolutely gold for them. So here's what they've done, Bob.
Instead of selling and refinancing, they've just basically chosen an
arrangement that family lawyers refer to as nesting. So here's
what happens. He lives in the main house and she
(16:46):
lives in an airstream trailer in the yard. And we
don't know how they decided this. That must be one
heck of a coin toss, but whatever. They've got two
living spaces on the same property. They're sharing utilities, they
co host weekly dinners, and they coordinate drop offs with
Apple notes, all that kind of thing. So two separate
living spaces on the same property, and then they share
in the wonderful mortgage they've got there, so trading personal
(17:06):
space for financial stability. She pays about one hundred bucks
and utilities she plugs into his system.
Speaker 3 (17:11):
He stays in the main house. The kid's routine is stable.
Speaker 2 (17:13):
They go back and forth, and they save at least
ten thousand dollars in seven months, versus paying two mortgages that,
like any divorce, they both would have been supporting those
two mortgages somehow, some way anyway because of child support
and alimney.
Speaker 1 (17:26):
Brian, what is co host weekly dinners mean for this couple?
Speaker 3 (17:30):
Well, I think what they're referring to is they just share.
Speaker 1 (17:33):
So there's a funny. I mean, I'm grilling hot dogs
outside the airstream. You bring the ketchup and you can
have a hot dog?
Speaker 3 (17:39):
Is that what we call all of.
Speaker 2 (17:41):
Our friends for an awkward dinner because we're divorced now,
and then they don't really understand what's going on now.
I think what this refers to is they're just sharing
the responsibility. We kind of glossed over it, but there
are kids in the mix here, so they're just sharing
the responsibility of who's going to cook dinner for the
family that night and who's gonna have it and do
the dishes.
Speaker 3 (17:56):
And all that kind of stuff. I don't think this
is a social situation.
Speaker 2 (18:00):
Hey, they figured out a good way to deal with
a tough problem, So hats off to them.
Speaker 1 (18:04):
Wonderful financial planning, all right, Every Sunday you'll find our
all Worth advice in the Cincinnati Inquirer. Here's a preview.
Paul in Westchester says, I'm helping my adult son with
a down payment for a house. How should I structure
things so it doesn't mess up my own retirement plan? Brian?
Speaker 3 (18:21):
Yeah, so, Paul, so this is a great boy. This
is a good question.
Speaker 2 (18:27):
So just make sure that you're not giving him too
much that gets the attention of this is on his problem.
I'm thinking more about that. I mean, make sure you
know what you can afford, really, but make sure that
it looks clean to his mortgage lender, because money that
drops out of the sky sometimes can throw a wrench
in those But again, your question for you, that's all
about a financial plan. It sounds like you don't have one,
so you don't really know what you can get away
(18:48):
with and more importantly, what you can't. So I'd say
sit down with a financial advisor and figure out what
your resources are.
Speaker 1 (18:54):
Sounds like good advice, all right? Coming up next, the
newest way scammers are trying to rip you off. This
stuff is just evolving seemingly on a week by week basis.
You're listening to simply money presented by Allworth Financial on
fifty five KRC. The talk station you're listening to Simply Money,
presented by Allworth Financial on Bob Sponseller along with Brian James.
(19:18):
Joined tonight by our good friend Josile Erlik from the
Greater Cincinnati Better Business Bureau. Josle, thanks for making time
for us tonight, and I know you've got a lot
of good updated information to share with us about scams
that are out there.
Speaker 4 (19:35):
Oh, there were so many to pick from. It's really unfortunate.
But scammers impersonating the government, including the Federal Trade Commission,
is nothing new. But here's a new twist. Scammers are
now calling themselves FTC agents, and they're giving you fake
badge numbers and fake ID cards, all to convince you
(19:55):
that they are who they say they are. Now, just
so we're clear, the FTC does not have agents. These
scams usually start with somebody reaching out about a supposed
urgent problem. Maybe it's a computer pop up saying you
have a virus and you need to call tech support.
We've all heard about that scam, or someone claiming to
be Amazon or your bank insisting there's something wrong with
(20:17):
your account. They might even say your identity has been
stolen or somebody's trying to take money out of your account.
Once they've got your attention with these critical issues, they
transfer you to this alleged FTC agent to supposedly help
you resolve the issue. Now. That person may give you
proof that they're from the FTC, like that picture of
(20:38):
an ID with a badge number, both of which are fake.
This agent may even try to enlist your help to
catch the bad guys as a way to gain your trust.
Their ultimate goal, though, is to convince you to give
them access to your money. That is something you don't
want to fall for now. Along the same lines as
(20:59):
the f TC scam, we've talked before about the jury
duty scam, where some official calls you to say you
have a warrant out for your arrest for not showing
up for jury duty, but if you pay the fine,
it'll all go away. Well, the other day, one of
my associates was called by one of these guys, so
she decided to play along, And I just wanted to
(21:20):
tell your listeners exactly how this went down with her
and how easy it is for somebody to get caught
up in a scam like this, she got a call
from both a sergeant and a lieutenant alleging she had
a federal warrant out for her arrest for not showing
up for grand jury summons. These guys even knew her
home address and said she'd signed for the summons, then
(21:42):
never showed up, which resulted in the federal arrest warrant.
Oddly enough, they couldn't give her a copy of the
alleged signed summons, as, according to the scammers, this was
an active investigation. They said she now had two felony
warrants for her arrest and needed to post bond of
more more than fifteen thousand dollars to avoid jail time,
(22:03):
and if she didn't post the bond, she'd have to
pay one hundred and fifteen thousand dollars for her failure
to appear. They also told her she was under a
gag order not to say this, not to share this
active case with anybody else, meaning don't tell anybody who
might convince you that you are being scammed. Here's the
interesting part.
Speaker 2 (22:24):
She was supposed to meet this.
Speaker 4 (22:25):
Bondsman at a gas station to make this fifteen thousand
dollars bond payment. Can you believe it? Now this is
how this is how nice our government is. They told her,
since this was a federal court case, and in lieu
of her having to drive all the way to Washington,
d C. To pay the bond, our government conveniently offers
roving bail bondsmen. Isn't that fabulous? Now? They told her,
(22:51):
once she paid the bond, a date would be set
for pre trial and sentencing. These guys were so convincing,
and they lead with one scare tactic after another. They
also told her if she even set foot on any
government property, she was going to be arrested, booked, and
jailed immediately, which means don't involve the police, who may
(23:11):
tell you you're being scammed. They even texted her a
picture of the alleged signed and notarized arrest warrant from
the US District Court. Now, this is a great example
of how somebody can get caught up in a scam.
These guys are good at what they do, and in
the heat of the moment, when they're coming at you
rapid fire with scare tactics, when you think you're cut
(23:32):
off from discussing with your friends and family and you're
afraid to go to the police. It's easy to believe
what you're being told.
Speaker 3 (23:40):
Yeah, those are some scary stories.
Speaker 2 (23:41):
It does seem easier to get to people when we
bring the government into it, because people are terrified of
hearing directly from any government agency.
Speaker 3 (23:50):
Another one I'm hearing a lot about is the DMV.
Speaker 2 (23:52):
There's a lot of texts and things going around, and
I hear that from my own clients, that has happened
in my own family. I've got I bet if I
look at my spam fold, or I've got some myself.
Speaker 1 (23:59):
Right now, I've gotten I've gotten five of them in
the last six weeks.
Speaker 2 (24:02):
Brian, Well, knowing you, Bob, those could be legit, you
might want to head down to the.
Speaker 1 (24:06):
Dm I'm getting the DMV and being arrested. I got
a lot going on in my life. You'll tell us,
tell us about the tell us about the DMV stuff.
Speaker 4 (24:17):
Well, I got you both beat. There was one week
where I got three or four of these a day.
So the text says, if you don't pay, they're going
to report you to the DMV violation database, whatever that
might be. They're going to suspend your vehicle registration, they're
going to suspend your driving privileges. You could be prosecuted
and your credit score will be affected. Now they've got
you coming and going with anything that you might be
(24:38):
afraid of there, including not being able to drive. In
another version of the scam, the text comes from a
toll company like easy Paths, and they want you to
pay for an unpaid toll or you're going to be
subject to the same penalties the exact same verbiage in
that text. In both scenarios, they demand immediate payment via
the link they provide, or you're going to get your licensees,
(25:00):
spend it, or have further legal action. Interestingly, both versions
have a note reply why, like you see on a
text to confirm that you have a doctor's appointment or
whatever and you're going to be there. They have reply why.
Of course, reply why means that it's just confirming to
the scammers that they have an active phone number and
your number was now going to be passed around as
(25:21):
fodder for a whole host of other text related scams. Now,
the newest scam naming the DMV, is tied to your
real ID, and this is how that scam works. You
get a text or email from somebody who says they're
from the DMV or sometimes the Department of Homeland Security.
They say you can skip the line and expedite your
application for a real ID. You just have to click
(25:42):
a link to share your information or pay a fee.
It's a phishing scam just to steal your money or
your personal information. The only way to get a real
ID is by going to the DMV in person. You
cannot submit an application online or by mail, and nobody
can expedite the process. One final thing is the texting
(26:02):
scams from the USPS or any delivery service. They tell
you that you have a package missing. It's out for delivery.
We have a wrong address.
Speaker 1 (26:12):
You name it.
Speaker 4 (26:13):
That text message will say click a link to fix
the problem. That is a scam. Scammers want you to
click the link in their message. To do it will
take them take you to a bogus website that looks
exactly like the USPS website or the delivery website. Clicking
the link may install malware on your phone or whatever
(26:35):
device you're using, giving scammers access to all the information
you have stored on that device. If you think a
text is about a real delivery, don't go to the
website given. Go to the actual website where you ordered
the product from and find the tracking information there.
Speaker 1 (26:53):
All right, Wow, a ton of stuff to be thinking
about today. And I don't know about you, Brian, this
is infuriating to me to just know that all this
is going on out there. But Joe Cio, thank you
to you and your team for being out there, you know, studying,
monitoring all this stuff and bringing it to our attention today.
Really appreciate all the great advice. If you're listening to
(27:14):
Simply Money presented by all Worth Financial on fifty five KRC,
the talk station. You're listening to Simply Money presented by
all Worth Financial Bob Spondseller along with Brian James. Do
you have a financial question you'd like for us to tackle.
There's a red button you can click on while you're
(27:36):
listening to the show right there on the good old
iHeart app. Simply record your question and it will come
straight to us. If you're staring at your retirement portfolio
wondering whether to buy, sell or hold, you're not alone.
This year has been quite a roller coaster so far.
And when you're no longer contributing to your four one
(27:57):
K or just about to start drawing from it, that
volatility quickly feels very personal. Brian. Let's get into some
of the challenges here for folks transition, transitioning into retirement
and the things that we need to be looking at.
You know, when we turn that pile of money into
an income distribution.
Speaker 2 (28:17):
Strategy, sequence of return risk, Bob, that's really where that's
that's a thing that retirees face early on. Whether it
happens or not to them, obviously, that's a matter of
what the universe wants to do to us on a
daily basis. But sequence of return risk isn't something that
we think about when we're saving, or it doesn't really
matter when I'm saving.
Speaker 3 (28:37):
I'm young.
Speaker 2 (28:38):
I'm twenty thirty years old, and I'm putting money in
my four oh one. Okay, the market's going to go up,
it's going to go down. I don't really care when,
because I've got such a long frame of such a
long period of time. But when I retire, that nest
egg that I've spent the better part of my life
building will play some role in producing income for me
to live off of. Maybe I'm going to push it
to the back end of retirement and lean on my
other sources of income for a little while, or maybe
(28:59):
I need to tap into it right away. That's different
by every individual that we do a financial plan for,
but sequence of return risk simply means when does the
market do what. The worst thing that can happen to
anybody in retirement is if we know, for example, take
anybody who retired in twenty twenty one, the immediate thing
that they were faced with was twenty twenty two, which,
believe it or not, was one of the we don't
(29:19):
think of it this way, but it was one of
the five worst years that we've ever had in the
stock market. So if you retired in twenty twenty one,
the first thing your nest egg did was take a
giant step down. That's a problem. It doesn't have to
be a ship sinker, but it can happen to anyone.
So you want to kind of make sure that when
you're doing your financial plan, build something that you can
kind of consider the what I call the hunky dory scenario.
(29:40):
In other words, nothing bad ever happens again, and we
get an average of I don't know, five to six
maybe seven percent rate of return, how does it look?
And then right side by side with that, you can
do a stress test, which basically means, let's take twenty
percent of my assets and make them go poof and then.
Speaker 3 (29:53):
Run all the numbers again. Now, am I okay?
Speaker 2 (29:56):
If your plan is still successful with that, then you
are able to and that indicates that you are indeed
able to handle sequence of return risks. We can't control
it the dangerous part, Bob. So for those retirees in
twenty twenty one who have had to face twenty twenty
two because the universe selected them, they were very, very
tempted to I'm retired now I've got to protect, protect, protect. Therefore,
I'm going to take my assets out of the market
(30:17):
because the market is now scary. The market didn't change
you did. The market's still doing the same thing it
has always done. You can't try to time it that
way and be protective. You will lock in those losses
and you miss out on the twenty three and twenty
four that would have given you all that money back,
and then.
Speaker 1 (30:30):
Some yeah, a couple things just to react to what
you laid out there. I mean, I think this sequence
of return risk is often new. It's something people don't
consider as they head into retirement. And here's why. When
you're in that accumulation phase. You really don't care what
the market does volatility wise on a year to year basis.
All you care about is what's my average rate of
(30:51):
return over the long term? And am I amassing enough
money when you turn that into a monthly paycheck. You know,
this is where volatility can really eat into your portfolio. Uh,
if you've got everything in stocks, or you don't have
a plan and you know, Brian, I love the bucket approach.
I mean, last time I checked, the market goes up
(31:14):
even in any kind of major market downturn. Ninety four
percent of the time over any three year holding period,
the market's up. What do I mean by that? You
can eliminate a lot of this sequence of return risk
by just getting some money out of harm's way meaning
one to three years worth of living expenses or cash
(31:36):
flow needs, get it out of the market all together,
and have it at more conservative investments. And that way
people have the peace of mind of knowing, Hey, I
got my three year you know nut covered here. I
don't need to worry about, you know, any short term
market volatility because I've got some money out of harm's way.
I think the other things sometimes people don't think about
(31:58):
is what they're actually playing to spend. This has been
one of the most surprising things that I've run into
in my career is and I'm talking about people with
a lot of money, with high income people, when you
ask them what they actually need to spend or want
to spend in retirement, they haven't thought about it because
they just live off the they've been living off that
very high paycheck and that it really hasn't dawned on
(32:22):
them that that paycheck's going to go away. And now
you know, not that we need to budget down to
the level of, you know, how many packs of gum
you buy per month, but you at least need to
have some round numbers of what you're spending's gonna be, uh,
because that can surprise some folks if they don't do
any planning.
Speaker 2 (32:40):
Yeah, And honestly, I think one of the things I
talked to my clients about, and there's people out there
who are in this situation. The market is essentially we're
a little bit below the all time high that we
had in February, but we've gotten back the initial tear
related panic that bottomed in early April. We're kind of
back to where we were before that. Uh So, if
you are somebody who's in this situation, if what Bob
just said, resident hey, we got it. We wanted to,
(33:01):
you know, put fifty thousand dollars into the kitchen, or
we need to buy a car or whatever. We know
there's some there's money, there's a need for spending coming
up soon. Well, you know what, now is the time
to go ahead and carve those assets out because it
will be far more important that need is coming up
no matter what. Right, you know, you're gonna have to
spend the dollars for whatever the thing is. And that's
just life. So you want to take it when it's
the most advantageous time. Guess what that time is. Now
(33:23):
the money is there, and take it. And then I
would also say it would be a good idea to
think to the next one and is there another something
coming up in the next two or three years that
we should be planning for Differently, Now is the time
to carve that out and take and make hay while
the sun shines, because sooner or later the market's going
to go the opposite direction. You'll still have that expense,
but then you'll have to take the loss.
Speaker 1 (33:45):
Yeah, again working with an advisor who really understands this.
Converting people from pre retirement to retirement makes a huge difference,
and sit down and do the work in advance so
you don't have surprises coming down the road. Here's the
all Worth advice in retirement mark volatility isn't just noise.
It's an opportunity to fine tune your income strategy and
(34:06):
stay on track for the long haul. Coming up next
Brian's bottom Line, where he gets into some long term
care planning. You're listening to Simply Money presented by all
Worth Financial on fifty five KRC the talk station. At
this moment, you're listening to Simply Money presented by all
(34:27):
Worth Financial on Bob Sponseller along with Brian James. And
it's time for Brian's bottom Line where he shares some
wisdom about long term care. And this is a guy
that's been dealing with clients for almost thirty years. Brian
can't wait to hear what you have to share with
us today.
Speaker 2 (34:43):
So Bob, this comes from some meetings I've had very
very recently. Obviously, long term care is it can be
the boogeyman when it comes to financial planning because it's
an expensive it's an expensive proposition for people to have
to face. So let's throw some numbers out just so
we know exactly what we're shooting at. Long term care where,
of course.
Speaker 3 (34:59):
We're talking about end of life type.
Speaker 2 (35:01):
Care where you need a little extra help, can no
longer really be independent and trying to make you comfort.
Speaker 3 (35:07):
I'm not quite hospice. We're not talking about that.
Speaker 2 (35:08):
We're talking about you know, those last few years there.
But so just cost wise, what we're thinking, what we're
looking at in this area, it's about one hundred and
fifteen thousand dollars somewhere in that neighborhood, one fifteen, one
hundred and twenty per year for a stay in a
nice long term care facility. The average stay for end
of life care is two and a half to three years.
So put differently, I need about three hundred and fifty
(35:31):
thousand dollars to cover my long term care needs.
Speaker 3 (35:34):
And people hear.
Speaker 2 (35:35):
That they in they kind of freak out a little bit,
don't they, bob, because they all go, well, that's three
hundred and fifty thousand, that's an extra hundred something per year.
Oh my gosh, I already have to spend all of
these things. Well, the first thing we want to look
at is that that expense. Yes, it's a it's a
fat one, there's no doubt about it. But it's gonna
replace a lot of the things that you're budgeting for now.
When we do long term care planning, we're usually in
(35:56):
the picture of health in our sixties, maybe early seventies,
just talking about what's the what is the risk, what will.
Speaker 3 (36:00):
The impact be.
Speaker 2 (36:01):
But when we get there, we're in our late eighties,
early nineties. Well, at this point, Bob, the travel is done.
We're not buying cars anymore. A lot of the expenses
that you're paying to the nursing home are things you
won't have to do anymore. You're not going to the
grocery store, you're not paying the electric bills so much anymore.
Perhaps you're going to maintain the house. Maybe you won't,
but it's not one hundred and fifteen thousand dollars on
top of all of your current expenses.
Speaker 3 (36:23):
A lot of it will replace.
Speaker 2 (36:25):
Some things, and you can rearrange your finances so it's
not just a straight new expense you have to deal with.
In addition, you'll have insurance, insurance is going to cover
a lot of the things out there. These are all
the decisions we should look at before we consider buying
long term care insurance.
Speaker 3 (36:40):
Matter of facts.
Speaker 2 (36:40):
To be honest, nowadays, that's rarely a solution that we
actually employ because a lot of people out there are
in a good position where they actually if you look
at the dollars you'll have left over. If you've got
a solid financial plan now and it gets to grow
for another twenty twenty five, maybe even thirty years, depending
how young you are, then you may have enough. You
probably do have enough in that case to go ahead
and self insure. But again, don't go down the rabbit
(37:01):
hole of all of my long term care expenses are
going to be new and layered right on top of
my existing living expenses.
Speaker 3 (37:07):
That's just not the case, and so.
Speaker 2 (37:08):
We don't want anybody getting too worried about that.
Speaker 3 (37:11):
It's important to look at the math, but don't get
too panicked.
Speaker 1 (37:14):
Yeah, if I hear you correctly, I'm saying, hey, do
not panic here, but just take a look at the numbers.
Make sure things are going to work for you. All right,
good stuff, Thanks for listening. Tune in tomorrow we will
talk about the one hundred billion dollar investment that has
us sounding some alarms. You've been listening to Simply Money,
presented by all Worth Financial on fifty five KRC, the
(37:34):
talk station
Tonight a portfolio personality test, how to get on the
same financial page as your partner and more. You're listening
to Simply Money, presented by all Worth Financial on Bob
Sponseller along with Brian James. Have you ever taken one
of those personality quizzes, stuff like goofy stuff like what
kind of dog are you? What kind of musician are you?
(00:28):
These things are everywhere, and it turns out your portfolio
or the way you treat your portfolio has a personality
as well. So tonight let's have let's have a little
fun with this. We'll look at the different portfolio personalities
out there, try to poke a little fun at it,
and then talk about what it really means for your
financial future. Brian kick us off with the first personality
(00:50):
profile when it comes to money.
Speaker 2 (00:53):
Well, Bob, for I want to kick it off with
what kind of dog you are? I'm sure you've taken
these questions. I'm feeling cockapoos your little kckapoo.
Speaker 1 (01:00):
You maybe absolutely yeah, I'm a fufu key sheeting kind
of guy.
Speaker 2 (01:05):
I didn't say fu fu you did, but it may
come up later this week anyway. So personalities when it
comes to investing the thrill seeker. This is all stocks,
all the time. Put me on that roller coaster, make
me want to throw up. If your entire portfolio is
one hundred percent stocks, you are the adrenaline junkie of investing.
I'm gonna be honest about this is me. I'm fifty one.
I'm gonna work another ten years. The market's gonna punch
(01:25):
me in the face. Maybe fifteen years. Market's gonna punch
me in the face several times. I don't really care
about the roller coaster. I won't say I love the
ups and downs, but I know I'm not gonna freak
out on the downside, So why limit my portfolio. I'm
just gonna let it recover. This is all Andy Stouts
problem anyway. He's the one who decides.
Speaker 3 (01:39):
Where my money goes, and I get to go yell
at him every now and then.
Speaker 2 (01:42):
But anyway, these are people who when the markets drop
twenty percent, we don't panic. We call it a buying
opportunity flip. Side of this, though, is that sometimes these
thrill seekers sort of underestimate how gut wrenching a big
downturn feels. When you're talking about retirement income It's one
thing to ride out volatility at thirty five e no
big deals buying opportunity very different when you're sixty five
and this is now something that needs to generate income
(02:03):
for you in the near future.
Speaker 3 (02:05):
Yeah.
Speaker 1 (02:06):
What I always talk to clients about it. You know,
when it comes to risk tolerance. To me, there's there's
the economic component. What do you have to earn and
maintain to make your long term financial plan work? That's
just facts, And then there's the motional computer component. How
much risk are you not able to take before you
call us, pull the ripcord and said I can't take
(02:26):
it anymore, put me all to cash. Because when you
bail on this thing and move all to cash, that's
a huge mistake. And in my opinion, Brian, if we
allow clients to get to that point, we haven't done
our job on the front end. Yep. So yep, let's
move on to the next kind of investor, the security
blanket heavy cash holding type of person.
Speaker 3 (02:48):
Yeah.
Speaker 2 (02:49):
So this is what you were just talking about. It's
the opposite of the roller coaster rider. This is the
person that likes the you know, the love boat thing
that goes through the tunnel and.
Speaker 3 (02:55):
Is quiet and safe.
Speaker 2 (02:56):
So these folks keep large amounts of money in cash, CDs,
savings counts because they like to see the balance. It
needs to be steady and predictable and you know, not
really moving much in either direction. So cash feels safe.
But there's a very very secret risk, hidden risk in there.
Inflation will quietly eat away for buying power. It's one
of the analogies I use here is if you throw
(03:17):
a frog into a pot of boiling water, it's gonna
jump out right away. But if you stick it in
a pot of room temperature water and slowly heat it,
it's gonna sit there and boil to death.
Speaker 3 (03:25):
That's inflation.
Speaker 2 (03:26):
We don't see it coming, and by the time we
notice how much damage it's done, it's too late to
do anything about it.
Speaker 3 (03:31):
So the way to handle this cash is important.
Speaker 2 (03:33):
Figure out how much cash you could possibly need in
maybe the next twelve to twenty four months for several
months worth living expenses. If you've got a big expense
coming up wedding, got to replace the h VC or whatever.
If you know, if you have money that is basically
pre spent, get it out of the risky stuff. But otherwise,
once you've identified that that frees you up to let
something in your portfolio grow.
Speaker 3 (03:52):
So understand your market history and take advantage of what
it can do for you.
Speaker 1 (03:55):
Yeah, and I sound like a broken record here, but
it does all come down to what you need to
do to accomplish your financial goals. I mean, Brian, I've
got some clients where they want to sit on large
amounts of cash or quivalent assets, and you know what,
they have a pension, they have social security, They don't
spend much money, and that makes them feel good and
(04:16):
not panic and not have a heart attack in their
mid eighties. And you know what, it's okay. If you
can hit your goals and not take on any investment risk,
it's totally fine. The key is to know where you
stand and know you know how your plan is going
to hold up against inflation, and just make sure you're
in a good spot. Don't just assume it's all going
(04:37):
to work out, all right, let's.
Speaker 3 (04:40):
Thought.
Speaker 2 (04:41):
So where I see people doing this sometimes is will
inherit cash. So mom and dad have passed away, the
estate has settled, and I have you know, sometimes it's
several hundred thousand dollars or even more pilot cash that
drops out of the sky.
Speaker 1 (04:52):
I have.
Speaker 2 (04:52):
I've had a lot of recent conversations with people in
that situation, and they seem to somehow just identify, well,
that's from mom and dad, that must be my emergency.
And so it's an enormous amount of money that just
sits in cash, and people have trouble getting over the
hump of I should do something different with that.
Speaker 1 (05:07):
Well, and we also have people, Brian, I'm sure you
do where it's like, well, I'll get in when things
look more certain in the world. You know, they want
to sit on cash because they just expect something horrible
to happen. And that's where you show them the chart
of the stock market going back to nineteen twenty six.
Horrible things happen all the time. You know, pick your
(05:29):
spot on that graph where it was the right time
to get involved in the stock market or growth type investments.
People can't find it, you know, there's no data plot
that says, all, right, now's the time to get in.
Speaker 2 (05:41):
Exactly one one quick I met a little little litmus
test here. Think to yourself, what uninsured risk do you
have that could possibly cost you several hundred thousand dollars?
You know, in a very short run, and the answer
for most people is going to be not a whole lot.
So let's move on to the control freak. This is
somebody who loves these individual stocks. I don't trust mutual
I don't want some faceless black box picking companies for me.
(06:03):
I'll just pick them myself. So these are the folks
who do the research. They watch CNBC all day. Maybe
they've got three screens in their office, while it HiT's
a little close to home because I got three screens
on my desk. But anyway, I guess I'm a control freak.
But these folks that they just like being in that range.
They want to feel like they're smarter than the market.
Sometimes they are, but a lot of times it's like
trying to beat any professional athlete out there. It's fun
(06:23):
to try, but the odds are just stacked against you
in the long term. So make sure you're using your
time the best way you possibly can.
Speaker 1 (06:29):
Brian, I've got a couple clients like this, and they're
retired folks that just, quite frankly, I think they're bored.
They don't have enough to do. And when you're used
to running something and being in control all day, and
being very busy. The personality profile is they love the
fact that they can control something anything. And I'm thinking
(06:52):
of one guy that moved a bunch of money to
cash because he thinks the whole world's gonna come to
an end. But then in the next breath he's emailed me,
sending me messages wanting me to help him pick AI stocks.
So it's just they want to pick stocks. Meanwhile, the
bulk of their portfolio is sitting in cash doing next
to nothing. Had they just left the money in a
(07:14):
diversified portfolio, they would have gotten to participate in AI
along with a bunch of other stuff and made a
whole lot more money than they're making by being quote
unquote right picking a couple of individual stocks.
Speaker 2 (07:28):
If you've got a properly diversified portfolio, then whatever the
flavor of the day is is already in it.
Speaker 1 (07:32):
Right.
Speaker 2 (07:33):
So AI makes up a good chunk already of the
S and P five hundred because of its cap weighted nature.
Those big stocks out there, the videos of the world, they're.
Speaker 3 (07:41):
Already in there.
Speaker 2 (07:42):
So you're already benefiting from stuff like that. You want
to take a flyer on something, go ahead, knock yourself out.
But at the end of the day, we're just scratching
an itch to get a little dopamine, and we're gambling
a little bit. I say, go to the casino because
the drinks might be free.
Speaker 1 (07:54):
All right, Well, let's talk about the vast majority. I
think of people out there, the balanced mediator investors, the
good old sixty forty split, sixty percent stock forty percent bond,
set it and forget it, never look at it. And
obviously these are not thrill seekers. They're not overly cautious.
They have more of a peacemaker mentality. They want everything.
(08:14):
They want growth and security, and they don't want to
look at it, Set it and forget it. That balance
has worked for decades, Brian. But here's the catch. The
markets do evolve. What worked in the nineties doesn't always
work today. So even the mediators need to refresh once
in a while and be open to some new ideas.
Speaker 2 (08:34):
What say you, yeah, so I think this is what
we're starting to use A little bit, a little bit,
not a whole lot. But sometimes there are positions where
BUFFERDTFS makes some sense to replace a portion of what
we used to consider the bond only portion of a portfolio.
Those things have pros and cons too, but it's just
a general willingness of Okay, if we want a little
more stability, let's learn about something new. Even if we
(08:54):
don't pull the trigger on, at least we've had the discussion.
So the sixty forty split, this is somebody who really
wants to try, really kind of said it and forget
it and not think about it. There's nothing wrong with that.
I still think that's the strategy that works pretty.
Speaker 3 (09:04):
Well in the long run. So now we're gonna move.
Speaker 1 (09:07):
On to just add some tax efficiency to the mix.
That's that's the main thing.
Speaker 2 (09:11):
Yeah, that's a great point. Thanks for slowing my role there. Yeah,
that's a great point. Let's not lose sight of that. Yeah,
there are tools out there that maybe you haven't used
in the past, and they're new, but at the same time,
technologically they couldn't have been done in your prior fifteen
to twenty years. But don't miss opportunities just because it's
something you're you know, not quite familiar with.
Speaker 1 (09:28):
All Right, last personality type we want to touch on
is the ostrich. The idea. No, these people have no
idea what they own, They have no financial plan. They
have their head in the sand, and if you ask
them what's in their portfolio, they say, yeah, I think
I've got a four oh one k What do you
say to those people, Brian, Yeah, what I say to those.
Speaker 2 (09:46):
People is I bet you got like seven four oh
one k is because you've left them all behind from
the various jobs you've moved between, and then then we
have a little bit of work to get it all
in one place. The fun part of these with for
these types of folks. First of all, this is what
we're not mocking anyone. This is why I have a job.
If people, you know, could understand this stuff and enjoyed it,
I go unemployed. So but the really fun part is
helping people see these types of folks see exactly what
(10:07):
they've built. Seven tiny accounts usually results in one giant
account when you get it all in one place, and
it can be a little bit of an eye opener
for people and it really kind of gets the juices
flow and as to oh my gosh, I have been
doing something even though I wasn't.
Speaker 3 (10:19):
Aware of it, you know, along the way. But these
folks just don't want to deal with it.
Speaker 2 (10:23):
These are the ones that call will do a financial
plan and then we can't get them to come back
in for their any reviews because they just don't want
to talk about it. That's what advisors do, it's what
we're here for. But definitely a team sports, so we
want to make sure everybody knows what's going on.
Speaker 1 (10:35):
All right, Let's take a risk here, Brian, and wade
into the deep end of the pool here and talk
about personality profiles from when one partner has a completely
different personality on how they want to handle money than
their spouse or partner. I'm sure you've dealt with that before.
Speaker 3 (10:52):
I have.
Speaker 1 (10:53):
How do you handle these situations? Brian?
Speaker 2 (10:55):
So the one thing I will pat myself on the
back for I have become very good getting two people
sitting across the table for me to quit looking at
me and look at each other, because very often two
spouses have not had the big picture talk. They're standing
way too close to their own trees, and my job
is to pull them back so they can see the
entire forest. So and I know I've kind of won
(11:16):
that little interaction when they listen to something I said
and it triggers something and they start looking at each
other and finally talking to each other instead of talking
to me. So the step here, the first step here
is step back from those dollars and cents. Figure out
what you both want life to look like in five, ten,
twenty years, retirement, travel, helping your kids, whatever that is.
But you've got to have those discussions and make sure
you're on the same page. Maybe you even give each
(11:37):
other your own little fun accounts. Right, so we each
have this amount of money, and nobody gets to question
the other person does not get to question what you
spend it on. Go do it stupid things that I hate. Whatever,
it's your money, do whatever you want. But that means
we've clearly drawn a line between the dollars we talk
about and the dollars that we don't. And I'll throw
out there, automate as much as you can.
Speaker 3 (11:54):
You know, let your.
Speaker 2 (11:55):
Bills happen automatically, and your retirement savings, get the mortgage paid.
Speaker 3 (12:00):
Put it all on autopilot.
Speaker 2 (12:01):
Then neither spouse has the burden of making sure that
all this stuff gets done. You can both sit there
and watch your little machine work. I think that is
an underused technique.
Speaker 1 (12:10):
I love all those ideas, Brian. I mean Oftentimes, if
the couple can just agree that, hey, this objective third
party guy, this Brian guy who knows something about this
and will actually help us build a financial plan, Let's
let him handle the serious money and then yeah, we'll
each have our little fun money accounts that neither partner
(12:31):
or spouse questions, and that way everybody can have their
little cake and eat it too. Meanwhile, they're actually building
a good, solid financial plan for the future. Here's the
all Worth advice. Financial planning isn't just about spreadsheets. It's
about relationships. And when you get your money harmony in
your marriage, you don't just grow wealth, you grow peace
(12:52):
and your marriage improves as well. What itever makes sense
to live with the prespeaking of marriage, whatever makes to
live with the person you just divorced. We'll explore that
situation next. You're listening to Simply Money presented by Allworth
Financial on fifty five KRS the talk station. You're listening
(13:15):
to Simply Money presented by Allworth Financial on Bob Spondseller
along with Brian James. If you're close to or already
in retirement, what should you actually do with your investments?
Right now? We've got a practical checklist tailored for retirement
success in uncertain times. That's coming up at six forty three. Recently,
Kiplinger spotlighted an eye catching move in Rhode Island, Brian.
(13:39):
Starting in July of twenty twenty six, the state is
rolling out a steep new surcharge on second homes valued
at one million dollars or more if they aren't your
primary residents, Brian. Hopefully this is not a trend that's
going to catch on across the country, but I'm afraid
it might be.
Speaker 2 (13:59):
Yeah, the tiny most of our states with one of
the biggest little slaps across the faith for owning investment property.
So the media is calling this the Taylor Swift tax,
not because she lobbied for it, but she's gonna be
affected by it. She owns one of these high profile
properties that's gonna get hit by it. So according to Kiplinger,
she has a coastal estate in watch Hill that's going
to be subject to about one hundred and thirty six
(14:20):
thousand dollars annual surcharge under this plan. So the point
of this, there's really twofold goal here, generating revenue for
affordable housing initiatives and reducing the number of lights out,
vacation homes just sitting there empty and just being an
asset on somebody's balance sheet, rather than bringing people in
to drive the local economy.
Speaker 1 (14:39):
Brian, should we think of this as a tariff on
concert tickets?
Speaker 2 (14:44):
You know, very cleverly put Bob, I think, you know,
if I have a feeling, there's other people than Taylor
Swift who are also going to get impacted by this.
Watch Hill is a pretty ritzy part of part of
the world there, so possibly maybe she'll react that way.
Speaker 3 (14:57):
We'll hear from her soon about it. But this is
a thing. It's starting to peer across the country.
Speaker 2 (15:01):
If you do own or you plan on buying that
high value second home, don't only worry.
Speaker 3 (15:05):
About the purchase price.
Speaker 2 (15:07):
We've always known we got to worry about ha's and
insurance and hurricane areas.
Speaker 3 (15:10):
That's a problem.
Speaker 2 (15:11):
But now you got to watch for local tax regulations.
What is that going to do to you? Maybe it's
not happening now, but before you pull the trigger, I
would get an idea for if there are rumblings of
your whatever little local area you're looking at, see if
they're thinking about doing this kind of thing.
Speaker 3 (15:23):
And work that into your budget.
Speaker 1 (15:25):
Speaking of homes, when people get divorced, the house is
usually the most financially complex piece of the entire arrangement.
And today, let's face it, with interest rates still very high,
we're seeing couples who don't want to sell or refinance.
Some are even cohabitating post divorce just to hold on
to their two percent mortgage. Brian, I know, you've got
(15:48):
to store a real life story from down in Cape Canaveral, Florida.
A couple that has made life real interesting for themselves
just to hold on to that low interest rate mortgage.
Speaker 2 (16:00):
The craziness of the housing markets for these past couple
decades and interest rates and all that are forcing people
to come up with some creative solutions. So this is
a recently divorced couple down in Cape Canaveral in Florida.
They're still sort of living together even though they're divorced.
So they refinance their home way back in twenty twenty
around two something percent, which is fantastic, right, that's kind
of the gold standard. Anybody's got two percent mortgage, congratulations,
(16:23):
you're never going to have another mortgage.
Speaker 3 (16:24):
And that's what they're trying to do.
Speaker 2 (16:25):
So if they truly wanted to split this up, they
would have to both sell the house, go get their
own homes and get new mortgages individually, and those are
going to be over six percent, So that low rate
is absolutely gold for them. So here's what they've done, Bob.
Instead of selling and refinancing, they've just basically chosen an
arrangement that family lawyers refer to as nesting. So here's
what happens. He lives in the main house and she
(16:46):
lives in an airstream trailer in the yard. And we
don't know how they decided this. That must be one
heck of a coin toss, but whatever. They've got two
living spaces on the same property. They're sharing utilities, they
co host weekly dinners, and they coordinate drop offs with
Apple notes, all that kind of thing. So two separate
living spaces on the same property, and then they share
in the wonderful mortgage they've got there, so trading personal
(17:06):
space for financial stability. She pays about one hundred bucks
and utilities she plugs into his system.
Speaker 3 (17:11):
He stays in the main house. The kid's routine is stable.
Speaker 2 (17:13):
They go back and forth, and they save at least
ten thousand dollars in seven months, versus paying two mortgages that,
like any divorce, they both would have been supporting those
two mortgages somehow, some way anyway because of child support
and alimney.
Speaker 1 (17:26):
Brian, what is co host weekly dinners mean for this couple?
Speaker 3 (17:30):
Well, I think what they're referring to is they just share.
Speaker 1 (17:33):
So there's a funny. I mean, I'm grilling hot dogs
outside the airstream. You bring the ketchup and you can
have a hot dog?
Speaker 3 (17:39):
Is that what we call all of.
Speaker 2 (17:41):
Our friends for an awkward dinner because we're divorced now,
and then they don't really understand what's going on now.
I think what this refers to is they're just sharing
the responsibility. We kind of glossed over it, but there
are kids in the mix here, so they're just sharing
the responsibility of who's going to cook dinner for the
family that night and who's gonna have it and do
the dishes.
Speaker 3 (17:56):
And all that kind of stuff. I don't think this
is a social situation.
Speaker 2 (18:00):
Hey, they figured out a good way to deal with
a tough problem, So hats off to them.
Speaker 1 (18:04):
Wonderful financial planning, all right, Every Sunday you'll find our
all Worth advice in the Cincinnati Inquirer. Here's a preview.
Paul in Westchester says, I'm helping my adult son with
a down payment for a house. How should I structure
things so it doesn't mess up my own retirement plan? Brian?
Speaker 3 (18:21):
Yeah, so, Paul, so this is a great boy. This
is a good question.
Speaker 2 (18:27):
So just make sure that you're not giving him too
much that gets the attention of this is on his problem.
I'm thinking more about that. I mean, make sure you
know what you can afford, really, but make sure that
it looks clean to his mortgage lender, because money that
drops out of the sky sometimes can throw a wrench
in those But again, your question for you, that's all
about a financial plan. It sounds like you don't have one,
so you don't really know what you can get away
(18:48):
with and more importantly, what you can't. So I'd say
sit down with a financial advisor and figure out what
your resources are.
Speaker 1 (18:54):
Sounds like good advice, all right? Coming up next, the
newest way scammers are trying to rip you off. This
stuff is just evolving seemingly on a week by week basis.
You're listening to simply money presented by Allworth Financial on
fifty five KRC. The talk station you're listening to Simply Money,
presented by Allworth Financial on Bob Sponseller along with Brian James.
(19:18):
Joined tonight by our good friend Josile Erlik from the
Greater Cincinnati Better Business Bureau. Josle, thanks for making time
for us tonight, and I know you've got a lot
of good updated information to share with us about scams
that are out there.
Speaker 4 (19:35):
Oh, there were so many to pick from. It's really unfortunate.
But scammers impersonating the government, including the Federal Trade Commission,
is nothing new. But here's a new twist. Scammers are
now calling themselves FTC agents, and they're giving you fake
badge numbers and fake ID cards, all to convince you
(19:55):
that they are who they say they are. Now, just
so we're clear, the FTC does not have agents. These
scams usually start with somebody reaching out about a supposed
urgent problem. Maybe it's a computer pop up saying you
have a virus and you need to call tech support.
We've all heard about that scam, or someone claiming to
be Amazon or your bank insisting there's something wrong with
(20:17):
your account. They might even say your identity has been
stolen or somebody's trying to take money out of your account.
Once they've got your attention with these critical issues, they
transfer you to this alleged FTC agent to supposedly help
you resolve the issue. Now. That person may give you
proof that they're from the FTC, like that picture of
(20:38):
an ID with a badge number, both of which are fake.
This agent may even try to enlist your help to
catch the bad guys as a way to gain your trust.
Their ultimate goal, though, is to convince you to give
them access to your money. That is something you don't
want to fall for now. Along the same lines as
(20:59):
the f TC scam, we've talked before about the jury
duty scam, where some official calls you to say you
have a warrant out for your arrest for not showing
up for jury duty, but if you pay the fine,
it'll all go away. Well, the other day, one of
my associates was called by one of these guys, so
she decided to play along, And I just wanted to
(21:20):
tell your listeners exactly how this went down with her
and how easy it is for somebody to get caught
up in a scam like this, she got a call
from both a sergeant and a lieutenant alleging she had
a federal warrant out for her arrest for not showing
up for grand jury summons. These guys even knew her
home address and said she'd signed for the summons, then
(21:42):
never showed up, which resulted in the federal arrest warrant.
Oddly enough, they couldn't give her a copy of the
alleged signed summons, as, according to the scammers, this was
an active investigation. They said she now had two felony
warrants for her arrest and needed to post bond of
more more than fifteen thousand dollars to avoid jail time,
(22:03):
and if she didn't post the bond, she'd have to
pay one hundred and fifteen thousand dollars for her failure
to appear. They also told her she was under a
gag order not to say this, not to share this
active case with anybody else, meaning don't tell anybody who
might convince you that you are being scammed. Here's the
interesting part.
Speaker 2 (22:24):
She was supposed to meet this.
Speaker 4 (22:25):
Bondsman at a gas station to make this fifteen thousand
dollars bond payment. Can you believe it? Now this is
how this is how nice our government is. They told her,
since this was a federal court case, and in lieu
of her having to drive all the way to Washington,
d C. To pay the bond, our government conveniently offers
roving bail bondsmen. Isn't that fabulous? Now? They told her,
(22:51):
once she paid the bond, a date would be set
for pre trial and sentencing. These guys were so convincing,
and they lead with one scare tactic after another. They
also told her if she even set foot on any
government property, she was going to be arrested, booked, and
jailed immediately, which means don't involve the police, who may
(23:11):
tell you you're being scammed. They even texted her a
picture of the alleged signed and notarized arrest warrant from
the US District Court. Now, this is a great example
of how somebody can get caught up in a scam.
These guys are good at what they do, and in
the heat of the moment, when they're coming at you
rapid fire with scare tactics, when you think you're cut
(23:32):
off from discussing with your friends and family and you're
afraid to go to the police. It's easy to believe
what you're being told.
Speaker 3 (23:40):
Yeah, those are some scary stories.
Speaker 2 (23:41):
It does seem easier to get to people when we
bring the government into it, because people are terrified of
hearing directly from any government agency.
Speaker 3 (23:50):
Another one I'm hearing a lot about is the DMV.
Speaker 2 (23:52):
There's a lot of texts and things going around, and
I hear that from my own clients, that has happened
in my own family. I've got I bet if I
look at my spam fold, or I've got some myself.
Speaker 1 (23:59):
Right now, I've gotten I've gotten five of them in
the last six weeks.
Speaker 2 (24:02):
Brian, Well, knowing you, Bob, those could be legit, you
might want to head down to the.
Speaker 1 (24:06):
Dm I'm getting the DMV and being arrested. I got
a lot going on in my life. You'll tell us,
tell us about the tell us about the DMV stuff.
Speaker 4 (24:17):
Well, I got you both beat. There was one week
where I got three or four of these a day.
So the text says, if you don't pay, they're going
to report you to the DMV violation database, whatever that
might be. They're going to suspend your vehicle registration, they're
going to suspend your driving privileges. You could be prosecuted
and your credit score will be affected. Now they've got
you coming and going with anything that you might be
(24:38):
afraid of there, including not being able to drive. In
another version of the scam, the text comes from a
toll company like easy Paths, and they want you to
pay for an unpaid toll or you're going to be
subject to the same penalties the exact same verbiage in
that text. In both scenarios, they demand immediate payment via
the link they provide, or you're going to get your licensees,
(25:00):
spend it, or have further legal action. Interestingly, both versions
have a note reply why, like you see on a
text to confirm that you have a doctor's appointment or
whatever and you're going to be there. They have reply why.
Of course, reply why means that it's just confirming to
the scammers that they have an active phone number and
your number was now going to be passed around as
(25:21):
fodder for a whole host of other text related scams. Now,
the newest scam naming the DMV, is tied to your
real ID, and this is how that scam works. You
get a text or email from somebody who says they're
from the DMV or sometimes the Department of Homeland Security.
They say you can skip the line and expedite your
application for a real ID. You just have to click
(25:42):
a link to share your information or pay a fee.
It's a phishing scam just to steal your money or
your personal information. The only way to get a real
ID is by going to the DMV in person. You
cannot submit an application online or by mail, and nobody
can expedite the process. One final thing is the texting
(26:02):
scams from the USPS or any delivery service. They tell
you that you have a package missing. It's out for delivery.
We have a wrong address.
Speaker 1 (26:12):
You name it.
Speaker 4 (26:13):
That text message will say click a link to fix
the problem. That is a scam. Scammers want you to
click the link in their message. To do it will
take them take you to a bogus website that looks
exactly like the USPS website or the delivery website. Clicking
the link may install malware on your phone or whatever
(26:35):
device you're using, giving scammers access to all the information
you have stored on that device. If you think a
text is about a real delivery, don't go to the
website given. Go to the actual website where you ordered
the product from and find the tracking information there.
Speaker 1 (26:53):
All right, Wow, a ton of stuff to be thinking
about today. And I don't know about you, Brian, this
is infuriating to me to just know that all this
is going on out there. But Joe Cio, thank you
to you and your team for being out there, you know, studying,
monitoring all this stuff and bringing it to our attention today.
Really appreciate all the great advice. If you're listening to
(27:14):
Simply Money presented by all Worth Financial on fifty five KRC,
the talk station. You're listening to Simply Money presented by
all Worth Financial Bob Spondseller along with Brian James. Do
you have a financial question you'd like for us to tackle.
There's a red button you can click on while you're
(27:36):
listening to the show right there on the good old
iHeart app. Simply record your question and it will come
straight to us. If you're staring at your retirement portfolio
wondering whether to buy, sell or hold, you're not alone.
This year has been quite a roller coaster so far.
And when you're no longer contributing to your four one
(27:57):
K or just about to start drawing from it, that
volatility quickly feels very personal. Brian. Let's get into some
of the challenges here for folks transition, transitioning into retirement
and the things that we need to be looking at.
You know, when we turn that pile of money into
an income distribution.
Speaker 2 (28:17):
Strategy, sequence of return risk, Bob, that's really where that's
that's a thing that retirees face early on. Whether it
happens or not to them, obviously, that's a matter of
what the universe wants to do to us on a
daily basis. But sequence of return risk isn't something that
we think about when we're saving, or it doesn't really
matter when I'm saving.
Speaker 3 (28:37):
I'm young.
Speaker 2 (28:38):
I'm twenty thirty years old, and I'm putting money in
my four oh one. Okay, the market's going to go up,
it's going to go down. I don't really care when,
because I've got such a long frame of such a
long period of time. But when I retire, that nest
egg that I've spent the better part of my life
building will play some role in producing income for me
to live off of. Maybe I'm going to push it
to the back end of retirement and lean on my
other sources of income for a little while, or maybe
(28:59):
I need to tap into it right away. That's different
by every individual that we do a financial plan for,
but sequence of return risk simply means when does the
market do what. The worst thing that can happen to
anybody in retirement is if we know, for example, take
anybody who retired in twenty twenty one, the immediate thing
that they were faced with was twenty twenty two, which,
believe it or not, was one of the we don't
(29:19):
think of it this way, but it was one of
the five worst years that we've ever had in the
stock market. So if you retired in twenty twenty one,
the first thing your nest egg did was take a
giant step down. That's a problem. It doesn't have to
be a ship sinker, but it can happen to anyone.
So you want to kind of make sure that when
you're doing your financial plan, build something that you can
kind of consider the what I call the hunky dory scenario.
(29:40):
In other words, nothing bad ever happens again, and we
get an average of I don't know, five to six
maybe seven percent rate of return, how does it look?
And then right side by side with that, you can
do a stress test, which basically means, let's take twenty
percent of my assets and make them go poof and then.
Speaker 3 (29:53):
Run all the numbers again. Now, am I okay?
Speaker 2 (29:56):
If your plan is still successful with that, then you
are able to and that indicates that you are indeed
able to handle sequence of return risks. We can't control
it the dangerous part, Bob. So for those retirees in
twenty twenty one who have had to face twenty twenty
two because the universe selected them, they were very, very
tempted to I'm retired now I've got to protect, protect, protect. Therefore,
I'm going to take my assets out of the market
(30:17):
because the market is now scary. The market didn't change
you did. The market's still doing the same thing it
has always done. You can't try to time it that
way and be protective. You will lock in those losses
and you miss out on the twenty three and twenty
four that would have given you all that money back,
and then.
Speaker 1 (30:30):
Some yeah, a couple things just to react to what
you laid out there. I mean, I think this sequence
of return risk is often new. It's something people don't
consider as they head into retirement. And here's why. When
you're in that accumulation phase. You really don't care what
the market does volatility wise on a year to year basis.
All you care about is what's my average rate of
(30:51):
return over the long term? And am I amassing enough
money when you turn that into a monthly paycheck. You know,
this is where volatility can really eat into your portfolio. Uh,
if you've got everything in stocks, or you don't have
a plan and you know, Brian, I love the bucket approach.
I mean, last time I checked, the market goes up
(31:14):
even in any kind of major market downturn. Ninety four
percent of the time over any three year holding period,
the market's up. What do I mean by that? You
can eliminate a lot of this sequence of return risk
by just getting some money out of harm's way meaning
one to three years worth of living expenses or cash
(31:36):
flow needs, get it out of the market all together,
and have it at more conservative investments. And that way
people have the peace of mind of knowing, Hey, I
got my three year you know nut covered here. I
don't need to worry about, you know, any short term
market volatility because I've got some money out of harm's way.
I think the other things sometimes people don't think about
(31:58):
is what they're actually playing to spend. This has been
one of the most surprising things that I've run into
in my career is and I'm talking about people with
a lot of money, with high income people, when you
ask them what they actually need to spend or want
to spend in retirement, they haven't thought about it because
they just live off the they've been living off that
very high paycheck and that it really hasn't dawned on
(32:22):
them that that paycheck's going to go away. And now
you know, not that we need to budget down to
the level of, you know, how many packs of gum
you buy per month, but you at least need to
have some round numbers of what you're spending's gonna be, uh,
because that can surprise some folks if they don't do
any planning.
Speaker 2 (32:40):
Yeah, And honestly, I think one of the things I
talked to my clients about, and there's people out there
who are in this situation. The market is essentially we're
a little bit below the all time high that we
had in February, but we've gotten back the initial tear
related panic that bottomed in early April. We're kind of
back to where we were before that. Uh So, if
you are somebody who's in this situation, if what Bob
just said, resident hey, we got it. We wanted to,
(33:01):
you know, put fifty thousand dollars into the kitchen, or
we need to buy a car or whatever. We know
there's some there's money, there's a need for spending coming
up soon. Well, you know what, now is the time
to go ahead and carve those assets out because it
will be far more important that need is coming up
no matter what. Right, you know, you're gonna have to
spend the dollars for whatever the thing is. And that's
just life. So you want to take it when it's
the most advantageous time. Guess what that time is. Now
(33:23):
the money is there, and take it. And then I
would also say it would be a good idea to
think to the next one and is there another something
coming up in the next two or three years that
we should be planning for Differently, Now is the time
to carve that out and take and make hay while
the sun shines, because sooner or later the market's going
to go the opposite direction. You'll still have that expense,
but then you'll have to take the loss.
Speaker 1 (33:45):
Yeah, again working with an advisor who really understands this.
Converting people from pre retirement to retirement makes a huge difference,
and sit down and do the work in advance so
you don't have surprises coming down the road. Here's the
all Worth advice in retirement mark volatility isn't just noise.
It's an opportunity to fine tune your income strategy and
(34:06):
stay on track for the long haul. Coming up next
Brian's bottom Line, where he gets into some long term
care planning. You're listening to Simply Money presented by all
Worth Financial on fifty five KRC the talk station. At
this moment, you're listening to Simply Money presented by all
(34:27):
Worth Financial on Bob Sponseller along with Brian James. And
it's time for Brian's bottom Line where he shares some
wisdom about long term care. And this is a guy
that's been dealing with clients for almost thirty years. Brian
can't wait to hear what you have to share with
us today.
Speaker 2 (34:43):
So Bob, this comes from some meetings I've had very
very recently. Obviously, long term care is it can be
the boogeyman when it comes to financial planning because it's
an expensive it's an expensive proposition for people to have
to face. So let's throw some numbers out just so
we know exactly what we're shooting at. Long term care where,
of course.
Speaker 3 (34:59):
We're talking about end of life type.
Speaker 2 (35:01):
Care where you need a little extra help, can no
longer really be independent and trying to make you comfort.
Speaker 3 (35:07):
I'm not quite hospice. We're not talking about that.
Speaker 2 (35:08):
We're talking about you know, those last few years there.
But so just cost wise, what we're thinking, what we're
looking at in this area, it's about one hundred and
fifteen thousand dollars somewhere in that neighborhood, one fifteen, one
hundred and twenty per year for a stay in a
nice long term care facility. The average stay for end
of life care is two and a half to three years.
So put differently, I need about three hundred and fifty
(35:31):
thousand dollars to cover my long term care needs.
Speaker 3 (35:34):
And people hear.
Speaker 2 (35:35):
That they in they kind of freak out a little bit,
don't they, bob, because they all go, well, that's three
hundred and fifty thousand, that's an extra hundred something per year.
Oh my gosh, I already have to spend all of
these things. Well, the first thing we want to look
at is that that expense. Yes, it's a it's a
fat one, there's no doubt about it. But it's gonna
replace a lot of the things that you're budgeting for now.
When we do long term care planning, we're usually in
(35:56):
the picture of health in our sixties, maybe early seventies,
just talking about what's the what is the risk, what will.
Speaker 3 (36:00):
The impact be.
Speaker 2 (36:01):
But when we get there, we're in our late eighties,
early nineties. Well, at this point, Bob, the travel is done.
We're not buying cars anymore. A lot of the expenses
that you're paying to the nursing home are things you
won't have to do anymore. You're not going to the
grocery store, you're not paying the electric bills so much anymore.
Perhaps you're going to maintain the house. Maybe you won't,
but it's not one hundred and fifteen thousand dollars on
top of all of your current expenses.
Speaker 3 (36:23):
A lot of it will replace.
Speaker 2 (36:25):
Some things, and you can rearrange your finances so it's
not just a straight new expense you have to deal with.
In addition, you'll have insurance, insurance is going to cover
a lot of the things out there. These are all
the decisions we should look at before we consider buying
long term care insurance.
Speaker 3 (36:40):
Matter of facts.
Speaker 2 (36:40):
To be honest, nowadays, that's rarely a solution that we
actually employ because a lot of people out there are
in a good position where they actually if you look
at the dollars you'll have left over. If you've got
a solid financial plan now and it gets to grow
for another twenty twenty five, maybe even thirty years, depending
how young you are, then you may have enough. You
probably do have enough in that case to go ahead
and self insure. But again, don't go down the rabbit
(37:01):
hole of all of my long term care expenses are
going to be new and layered right on top of
my existing living expenses.
Speaker 3 (37:07):
That's just not the case, and so.
Speaker 2 (37:08):
We don't want anybody getting too worried about that.
Speaker 3 (37:11):
It's important to look at the math, but don't get
too panicked.
Speaker 1 (37:14):
Yeah, if I hear you correctly, I'm saying, hey, do
not panic here, but just take a look at the numbers.
Make sure things are going to work for you. All right,
good stuff, Thanks for listening. Tune in tomorrow we will
talk about the one hundred billion dollar investment that has
us sounding some alarms. You've been listening to Simply Money,
presented by all Worth Financial on fifty five KRC, the
(37:34):
talk station
Simply Money News
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