September 17, 2025 • 40 mins
On this episode of Simply Money presented by Allworth Financial, Bob and Brian put on their “tough teacher hats” to deliver some advice you may not want to hear, but absolutely need to hear. Just because you’ve saved $2 million, $3 million, or even $5 million doesn’t mean you’re automatically set for life. Their lessons cover why retirement isn’t a vacation but a paycheck replacement plan, why your kids don’t need another check but a financial strategy, how treating your portfolio like a casino can wreck decades of hard work, and why taxes could cost you more than your house. Plus, they dive into the real spending patterns of retirees, scams targeting families, and listener questions on concentrated tech stock, charitable remainder trusts, and how to plan for estate taxes on illiquid assets like real estate.
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Episode Transcript
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Speaker 1 (00:00):
When it happens, we're coming to you.
Speaker 2 (00:02):
You're going to want to listen to this fifty five
KRC the talk station.
Speaker 3 (00:16):
Tonight some advice you don't want to hear, but you
might need to hear. You're listening to Simply Money, presented
by all Worth Financial on Bob Sponsller along with Brian James.
Speaker 1 (00:26):
We meet a lot.
Speaker 3 (00:27):
Of families who've done an incredible job saving. Maybe they
sold a business, maybe they were diligent four to one
k savers for years, if not decades, and now they're
sitting on two million, three million, five million, maybe even more.
And the natural thought is, well, we're rich, we're good,
we're set for life. But here's where we put the
(00:47):
tough teacher hat on tonight and say not so fast.
You're not automatically in the clear. So, staying with that
whole teacher theme, Brian, let's get into lesson number one, all.
Speaker 4 (01:00):
Right, Bob.
Speaker 5 (01:01):
Less than one Retirement isn't a vacation, it's a paycheck
replacement plan. Now, some of the things we're going to
talk about here this evening are about are gonna sound
kind of almost wet, blankety, kind of depressing, But retirement
should be a happy time. Here's how you start that
way and keep it that way. So a retirement is
a vacation, not a paycheck. Replacement plan basically means that
you know, you have to figure out what you were
(01:21):
living off of before.
Speaker 4 (01:22):
This is kind of where it all starts.
Speaker 5 (01:23):
If you were making one hundred and fifty thousand dollars
while you were working, well, where's that money gonna come from?
Speaker 4 (01:27):
Now? Now, let me let me back off.
Speaker 5 (01:29):
That question a little bit by saying, if you were
grossing one hundred and fifty thousand dollars, you were not
netting one hundred and fifty thousand dollars.
Speaker 4 (01:35):
You had taxes coming out of that.
Speaker 5 (01:36):
You had federal income taxes, state income taxes, payroll taxes,
which are three different flavors by the way, and you
had your four h one K contributions coming out of it.
Maybe you were putting money systematically into savings that you
don't have to anymore. You had a mortgage, maybe that's gone,
so you don't necessarily need to replace your entire salary.
But that also means you need to do a little
bit of work and figure out what it is exactly
(01:57):
that you spend so that you know what target you're
shooting for. You can't spend what you don't have, no
matter how well you've done. So even three to five
million dollars can run drive. You don't manage those withdrawals, inflation,
taxes and all that. We've got clients with that to have,
you know, two hundred and fifty thousand dollars who are
going to be just fined because their budget is below
their Social Security checks and that's kind of all they have.
We have clients who have five million dollars who live
(02:17):
like they have twenty five million dollars. Yep, guess which
one has the problem. What's our second lesson, Bob Well.
Speaker 3 (02:23):
Lesson too is stop chasing headlines. In other words, the
market doesn't care what you read and consume in the
way of.
Speaker 1 (02:30):
Media all day.
Speaker 3 (02:31):
Stop chasing headlines, Brian, I'm running into this more and more.
I mean, let's face it, in this divided media culture
that we're living in right now, depending on where we
go in terms of sources for our news and headlines,
we can have a completely different narrative swimming around in
our head and for folks that just retire and don't
(02:54):
maybe have enough to do, you know, they're glued to
CNBC or TikTok or wherever they get their news, and
they want to act on what they hear or see
in headlines rather than have an actual plan. And again,
the market does not care what you read. It doesn't
move because of your favorite newsletter or Twitter feed.
Speaker 5 (03:13):
Yeah, and Bob, I can't remember the last time I heard,
and I don't think I ever have the last time
I heard our chief investment officer, Andy Stout say hey,
I read this or I saw this headline on the crawl,
I better to go do something with our thirty billion
dollars that we manage.
Speaker 4 (03:26):
These are not things, this is financial pornography.
Speaker 5 (03:28):
We don't necessarily we really never react to those kind
of headlines.
Speaker 4 (03:32):
It's just something to talk about.
Speaker 3 (03:33):
And it comes from it comes from both sides of
the political aisle.
Speaker 1 (03:37):
Let's face it. I mean, we live the news. Media
is a business.
Speaker 3 (03:41):
They know what we want to consume and they feed
us what we want to read. So yeah, thank god
we got Andy Stout just looking at data and running
our good old recession scorecard to keep us up to date.
Speaker 1 (03:52):
All right, less than three Brian.
Speaker 5 (03:54):
Yeah, your kids don't need another check. They need a plan.
So we've seen this pretty often. So we write checks
for how is cars, vacations and this feels, you know, generous,
but it actually can actually hurt them if you're helping
them at this level. And yeah, it's tough out there,
and this doesn't mean to abandon them to the wolves.
Speaker 4 (04:10):
But at the same time.
Speaker 5 (04:11):
If we're if we're building, the expectation is the money
just drop drops out of the sky and my problems
are solved, then they're not going to learn how to
how to scrimp and save the way that the way
that you did uh to to build your ability to
help them this way in the first place. So this
this can fuel lifestyle inflation, makes them completely dependent on
somebody else, and robs them of any financial discipline, which
(04:31):
is presumably what you got along the way from your
forebears because you had the ability to build this kind
of a nest egg in the first place that supports
them to do this. So what might be a better
gift if I'm going to help my kid my kids, Bob,
what do you think? What are some good ideas?
Speaker 1 (04:44):
Well?
Speaker 3 (04:44):
The best gift is financial education and communication. And you
know it's sitting down especially you know approaching and into retirement,
you got more time to do this. Equip your kids
and grandkids to handle money, and yes, if there's a
dire knee that comes along, I mean helping them get
out of a jam today for a little bit of
money is going to be a game changer versus giving
(05:07):
them a whole pile of money when they're in there,
you know, late sixties, seventies. But to your point, Brian,
we can't enable bad behavior just because we feel like
we've got a whole boatload of money to throw around
and we're we're it's counterintuitive, but we're oftentimes hurting our
kids more than we're helping them by bailing them out
(05:29):
or enabling irresponsible behavior. You're listening to Simply Money, presented
by all Worth Financial on Bob Sponseller along with Brian James. Brian,
let's get into another lesson stop treating your portfolio like
a casino. We don't run across this too often with
our clients, but every once in a.
Speaker 1 (05:47):
While we do.
Speaker 5 (05:48):
Yeah, a lot of times, you know, people will get
to get an idea, and this comes from cocktail party
or somebody's brother in law or somebody you know, somebody's
friend or at the office water cooler got a hot
tip on something and it paid off, And so now
all of a sudden, we want to chase things, and
so people, some investors are doing just that, treating their
portfolio like a casino. It's something where I'm supposed to
take a little bit of money and turn it into
(06:09):
a big pile of money. These are when we talk
about these on these airwaves all the time, meme stocks,
crypto hot funds. Twenty five years ago, it was any
technology stock that's not investing, that's just gambling, like Vegas,
the house always wins. Portfolios are not for thrill seekings.
For building financial security, discipline beats luck every time. So
if you find yourself having this itch and needing to
scratch it carve out a little bit of money, don't
(06:31):
do it in a roth ira. A lot of people
say I'm going to make my bazillion dollars out of
this penny stock in a roth ira. That way i'll
have I'll be Peter Teeal with five billion dollars off
of this thousand dollars investment I made in a penny stock. Well,
more likely what's going to happen is one thousand dollars
is going to go to one hundred dollars or zero dollars,
And because you did it inside of a roth Ira,
you don't even get a deduction out of it. So
the bear in mind the risk that you're taking with
(06:53):
these little corners of your portfolio.
Speaker 4 (06:55):
And do it in a taxable account if you have to.
Speaker 1 (06:58):
Yeah, and I.
Speaker 3 (06:59):
Love the cone again for those that love to play,
you know, and there's nothing wrong with doing this, But
again my message is always, let's make sure we separate
your serious money from your play money. If you've got
enough serious money set aside in a good responsive financial
plan and you want to go take some risk and
speculate on some things for fun or to compete or
(07:20):
just feel like you're winning. Treated as a hobby, it's
totally fine, But you don't want to do that with
your serious money for obvious reasons. You'll mess up your
retirement that you've spent decades building just because you're bored
and seeking excitement. All right, Brian less than six. I
think this is a big one, and I think this
is one of the biggest value ads we provide for
(07:43):
our clients. And that's not letting taxes.
Speaker 5 (07:46):
Suit you taxes should be somewhat predictable if you're paying attention,
So they're going to be one of your biggest lifetime
expenses if you add them all up, probably even bigger
than your house. So roth conversions, charitable trust, direct indexing, plans,
planning ahead saves millions of dollars. These are all ways
of simply understanding how the tax code works and taking
advantage of all those little subtle details. So if you're
(08:08):
gonna do a Roth conversion, you're simply taking pre tax
money and you're turning it into after tax tax for
money forever. That sounds awesome, and a lot of people
roll in and they say, of course, I'm gonna convert
my entire traditional ray to a a WROTH.
Speaker 4 (08:19):
Why wouldn't I that it's gonna be tax free forever.
Speaker 5 (08:21):
We got to look at what that's gonna cost you
out of pocket and how you're gonna pay the taxes,
for example, in that case, charity, direct indexing, all these
other things are definitely helpful strategies. But if you ignore taxes,
you're gonna give the iron more than your kids over time.
Speaker 1 (08:37):
All right, less than seven.
Speaker 3 (08:38):
Don't confuse busy work with a true financial plan and Brian,
we run into this from time to time. People are
checking their accounts every day, multiple times a day.
Speaker 1 (08:49):
That's not a plan.
Speaker 3 (08:50):
Neither is collecting fifteen statements from different advisors. You know,
feeling like you're diversified and you've got all this information
to manage and play with. True planning means coordination, investments,
state planning, taxes, and insurance all working together in concert
in one coordinated plan.
Speaker 1 (09:11):
Yep.
Speaker 4 (09:11):
And so we'll move on then to less than eight.
Speaker 5 (09:14):
If we think that retirement it starts at sixty five,
that might be another mistake. A lot of us can
hung up on Medicare age. Sixty five is the go
time for Medicare age. Matter of fact, this might be
a great time to talk about the other ages because
we tend to get confused. Sixty two is when you
can first sign up for Social Security. That doesn't mean
to do it, That just means that's the first time
you can. It'll be the smallest check you ever get,
(09:36):
which isn't necessarily a bad thing.
Speaker 4 (09:38):
Understand the impact.
Speaker 5 (09:39):
Then there's something called full retirement age, which is between
sixty six and sixty seven, depending on when you were born.
For anybody born after sixty nineteen sixty it's now sixty seven,
and then the other age related SoC security is seventy.
Sixty two, sixty six, sixty seven and seventy are the
for Social Security relevant ages. The wait longer you wait,
the of a check you're going to get now. A
(10:01):
lot of people get hung up on sixty five, and
we tend to start here too. I think we probably
as financial advisors, tend to rely on sixty five is
just a good starting point for those who don't know.
But that is the age at which you become eligible
for Medicare, which obviously is important because you need to
have some kind of health insurance plan when you are retired.
Some people are fortunate to retire from companies that offer
(10:22):
retireehealth benefits.
Speaker 4 (10:23):
Most are not.
Speaker 5 (10:24):
So you might have cobra, meaning you could go at
say sixty three and a half and get a slightly
better deal on your by maintaining your existing healthcare insurance
through your ex employer. But some people will simply have
to go on the exchanges. And if you're a you know,
for an individual, you're probably paying on thy twelve hundred
dollars a month for insurance double that for a married
couple if you're on the exchanges. So but that that
(10:47):
causes a lot of people to believe retirement starts at
sixty five and I have no way to choose differently
than that, And that is simply not the case. You
can retire earlier. You just have to do some planning
on the healthcare side. And just because you don't want
to write a twothoand dollars check for health insurance doesn't
mean you can't so own your life. First, figure out
what you want to do, and then make the math
work around it. If you got to write a fact
(11:07):
check and write a fat check, as long as the
plan works all right.
Speaker 3 (11:11):
Lesson number nine, You can't outsmart longevity. We run into
people sometimes that underestimate how long they're actually gonna live.
One spouse for a married couple often outlives the other
by almost a decade. You got to plan as though
you're going to live longer than you think, because chances
are one of you probably will. And that leads to
(11:32):
lesson number ten. Stop thinking that a state planning is
just for the wealthy. It's for the responsible, and Brian,
I see this way too often. Too many families put
off doing wills and trusts, and without it, the courts
not you decide what happens to your assets.
Speaker 1 (11:49):
And the big one that.
Speaker 3 (11:50):
I see overlooked a lot of times, and this is
becoming more and more prevalent for folks that I work with,
is powers of attorney. You gotta have these things set
up in case cognitive impairment, you know, dementia, things like
that happen. You gotta have somebody name to step in
your place to handle things if you can't do it anymore.
Speaker 5 (12:12):
Yeah, and you might do what it's called a durable
power of attorney, which which you know if you if
you trust the person that you are naming is your
power of attorney, then you can put them in charge
right now, give them the ability now while you are
a perfectly clear mind.
Speaker 4 (12:23):
You don't need them to do anything.
Speaker 5 (12:25):
But if you want them to be able to step
in quickly, then a durable power of attorney might be
a good idea that enables them not to have to
go through the process of getting you in front of
a doctor to have a doctor declare you incompetent officially.
You can simply act for them. Now there is not
There are many moving parts of this. That's not a
quick answer, but it's something to consider if you're in
that situation.
Speaker 1 (12:43):
Here's the all Worth advice.
Speaker 3 (12:44):
No matter how much you've saved or how smart you
think you are, money doesn't just take care of itself. Discipline, planning,
and a clear eyed approach are the only things that
keep wealth from just slipping away. There's a big lie
about retirement that most people out there still believe.
Speaker 1 (13:02):
We'll tell you what that is. Next.
Speaker 3 (13:03):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the talk station.
Speaker 6 (13:11):
Yes he's a fifty five KRC. What's the event of
the day, What's going on? Will be busy?
Speaker 4 (13:16):
Frankie News.
Speaker 6 (13:17):
The President just said, good morning, what will yours look like?
Speaker 3 (13:20):
Hey?
Speaker 6 (13:21):
New days coming Check in.
Speaker 2 (13:23):
Brian Thomas tomorrow morning at five on fifty five KRZ
the talk station.
Speaker 7 (13:28):
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 (13:47):
You're listening to Simply Money presented by all Worth Financial
on Bob Sponsor along with Brian James. If you can't
listen to Simply Money every night, subscribe and get our
daily podcast. Just search Simply Money on the iHeart app
or wherever if you find your podcast.
Speaker 1 (14:02):
Straight ahead of six forty.
Speaker 3 (14:03):
Three, we are diving into more of your questions, everything
from smart investing moves to protecting your retirement.
Speaker 1 (14:11):
One of the most common assumptions.
Speaker 3 (14:12):
We hear from people approaching retirement is this, Oh, I
know I'm gonna spend way less money when I'm retired,
less commuting, less need for work clothes, the mortgage might
be paid off, so naturally expenses are gonna go down, right.
But the reality and Brian, we see this all the time.
Research shows that many retirees actually spend more in the
(14:35):
early years of retirement, not less. Let's dig into this
because this happens a lot and it's an important topic
to cover.
Speaker 5 (14:43):
This research comes from the EBRI Employee Benefit Research Institute.
We get a lot of good information out of them.
They've been tracking and they found for the first five
to ten years of retirement, spending often rises.
Speaker 4 (14:53):
Well, this is the reason behind this kind of makes sense.
Speaker 5 (14:56):
This is when we're healthiest, most energetic, and finally ready
to do the things they've been putting off. This is
bucket list time, right for those of us who kept
a bucket list all those years. Here's all the awesome
things that I'm going to do, but when I have
the time to do it, well, that's really the first
five to ten years worth of retirement. And when we
have time, we tend to fill it. When there's a
(15:16):
vacuum of time, we tend to fill that vacuum with spending.
So that's not necessarily a bad thing, but for sure
we have to get our sea legs when it comes
to being actually retired and understanding what our lifestyle is
going to be like.
Speaker 4 (15:27):
So this can include.
Speaker 5 (15:27):
Vacations, home remodels, maybe even an entire second home. And
you know, let's be honest, a lot of people just
want to spike the football and celebrate the fact that
they don't have to clock in on a Monday morning anymore.
Speaker 3 (15:38):
Yeah, spike the football and write a half million dollar
check for whatever, an RV or a second home. I
think the point we're trying to make here is, and
we talk about this in reverse, telling people not to
just hoard all their money and not spend it and
not have any fun and leave a whole boatload of
money to their airs, you know, when they're in their
eighties and nineties.
Speaker 1 (15:58):
But you know, at this point you have to plan
for this stuff.
Speaker 3 (16:02):
If you're thinking about doing these major big ticket items,
the crews, the second home, the home remodel, the RV,
talk about it in advance of retirement and make sure
that's factored in to your retirement plan, because you only
want to retire once and you don't want to come up,
you know, in your late seventies and eighties and say, shoot,
I'm about to run out of money.
Speaker 5 (16:23):
Yeah, So we want to make sure that we're on
top of things. And this all starts with sit down
with your spouse if you're married, or even if you
just need to go sit on the porch and stare
off into the sunset and think about what you want
as an individual. It hasn't It just has everything to
do with what is it going to be like when
I don't have to adhere to someone else's schedule.
Speaker 4 (16:41):
So the big thing to paytastical you.
Speaker 3 (16:43):
You just brought up an excellent point here, and that's
it is so critical to have both spouses in the
room talking about financial goals, especially in retirement, because let's
face it, whether one spouse is working in a job
and the other is stay at home, or both spouses
are working, everyone has in their mind what retirement looks
(17:06):
like to them, and oftentimes, when you're raising kids and
working hard and you're busy and you're in the office
all day, you're not communicating with your spouse on what
he or she thinks retirement should look like. So it's
really important to when you're talking about goals, have both
spouses in the room to talk about this stuff, so
you know, when you start attaching dollars and cents to
(17:29):
these goals, you've got to make sure the plan's going
to work, and do that in advance so one or
both spouses aren't disappointed in the end.
Speaker 5 (17:39):
That's really important, and this all comes through. We have
some data to support this too, so a twenty two
JP Morgan studies show that about six and ten retirees
spent the same or more in the first decade of retirement.
So there's a kind of exclamation point to this whole
topic here of making sure we understand you know what's coming.
By the way, we're not talking about medical costs. We're
not talking about the unfund stuff that comes later. We're
(18:00):
talking about people just living their lives and once they
finally accomplish that some level of freedom.
Speaker 1 (18:05):
Yeah.
Speaker 3 (18:05):
And for those that do have a good amount of wealth,
the risk isn't necessarily running out of money, but misaligning
your wealth with your lifestyle. You don't want to live
the first ten years in retirement way under budget, only
to pass away with more money than you ever intended
to leave behind, or worse, live it up early and
then find yourself tightening the belt when you're eighty again.
(18:27):
It's good to get take advantage of those go go
years as you called them, the first few years of retirement.
But talk about it, talk about it with both spouses
and plan ahead.
Speaker 4 (18:38):
And talk about it with an advisor.
Speaker 5 (18:39):
I mean, this is where this is something where the
common question that I bring up when I'm in when
I can see that I'm in a situation where these
folks are going to be okay, this is you know,
I really feel after thirty years of doing this, Bob,
I feel like my job, every meeting is going to
be one of two outcomes. It's me pushing someone to
be more responsible because they're about to run their train
off a cliff, or pushing them to go out and
enjoy what they've built. Remediing fits in one of those
(19:01):
two categories. So one of the first things that I
ask people is when we're building a financial plan, is
you know, all, we need to know your goals.
Speaker 4 (19:08):
What do you have in mind? What is it that
you want to do.
Speaker 5 (19:10):
And they'll say, well, we really want to kind of
make sure it works, so we're just gonna keep it simple,
and we're gonna build a garden and we're gonna eat
vegetables out of the garden, and we're just not going
to leave the house. And that sounds like a terrible
way to exist for the rest of someone's life. So
I kind of try to turn them around the other way.
If you ever kind of sort of thought maybe you
wanted to do something that's going in the plan, Let's
throw every last goal in here, remodel the house, the
(19:32):
second house, the around the world, retirement trip, do all
of those things.
Speaker 4 (19:36):
Let's run the math.
Speaker 5 (19:36):
Assuming we've done that, if it works, cool, Now you've
got to get out of your own way and decide
which of these things you're really going to pull the
trigger and write a check for if it doesn't work.
That's okay because we were throwing the kitchen sink into it.
Now we prioritize what are the things that are most important,
what are the things we can live without. That way,
when we do those extra fun things that maybe aren't
necessary to retirement but sure are a heck of a
(19:56):
lot of fun, we don't have to feel guilty about
it because we planned it ah exactly.
Speaker 3 (20:01):
And what you just talked about there is being proactive
and communicating clearly.
Speaker 1 (20:06):
I love it. That's what good financial planning is all about.
Speaker 3 (20:09):
Here's the all Worth Advice Plan for a retirement that
matches your lifestyle, not just a formula. All right, scams,
The scammers out there are getting smarter, and we'll show
you the latest tricks con artists are using and how
to spot them before they spot you.
Speaker 1 (20:26):
Coming up next.
Speaker 3 (20:26):
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC the talk station.
Speaker 8 (20:33):
This is fifty five KRC and iHeartRadio station.
Speaker 3 (20:41):
You're listening to Simply Money presented by all Worth Financial
on Bob Sponseller along with Brian James joined tonight by
our good friend Josio Erlick, President of the Cincinnati Better
Business Bureau. Joe Soo, thanks as always for spending some
time with us tonight. Hope you're doing well and I
know you want to talk. There's a whole bunch of
scams out there. We're always on the lookout on these
(21:04):
latest scams and preventing our clients from getting exposed to them.
I know you've got a lot to talk about. Walk
us through some of this latest stuff we need to.
Speaker 1 (21:13):
Be aware of.
Speaker 8 (21:14):
Well, let's start out with fantasy football. There are so
many people that play fantasy football. It's very popular. We
have seen a spike in online gaming scams as a
result of that. You know, it's really easy to end
up on an illegal betting site, especially if you're scrolling
through social media. If you're somebody who relates to betting influencers,
(21:36):
and that's a lot of young people. You can find
gambling influencers all over TikTok and Instagram. They pose as
betting gurus, but their goal is more to go viral
than to give genuine betting advice. They hype themselves big
time by claiming things like I made ten thousand dollars
in a day, and they post things like guaranteed Sunday
(21:59):
football wins. Theyre NFL lock picks, and these claims are
how they're going to lure your into clicking the link
in their post. This link is supposedly going to direct
you to some secret betting site, but it's really a
fake site, or it's a cloned version of a legitimate
betting site. Think a URL that's spelled slightly different than
(22:21):
the real site is spelled. The games on these sites
are usually rigs, so you have no chance of winning,
and even if you do win, the site won't allow
you to withdraw your winnings. Not only are you going
to lose the money you deposited into the site, but
the scammers now have your personal financial information to either
use themselves or they'll sell it on the dark web. Now,
(22:43):
if you want to try your luck, make sure you're
using a legitimate betting website and check it out first
at BBB dot org.
Speaker 4 (22:51):
That's great that you track those types of sites.
Speaker 5 (22:53):
I didn't know that that was. The gambling sites was
something that's has that always been there is BBB always tracked.
Speaker 8 (22:59):
That wherever the scams are we're tracking it, and we
track legitimate businesses across all industries and the ones that
are causing people headache and heartache.
Speaker 3 (23:09):
All right, Josilla, You've also got some updates on passport
scams and timeshare scams.
Speaker 9 (23:15):
Right.
Speaker 8 (23:16):
So, you got this big trip trip next month, and
you just realize that your passport is going to expire.
So you go online to find a solution, and you
come across a website that promises to expedite your renewal
passport for a fee. Unfortunately, this is not your solution.
It's going to be your nightmare because this scam can
(23:37):
cost you hundreds of dollars, not to mention possibly having
to cancel your trip. These fake passport sites are designed
to look exactly like the official US Department of State site,
which is travel dot state dot gov goov. That's important,
and these guys are counting on your desperation to keep
you from thinking clearly, could d up paying for forms
(24:01):
that you can get for free on the government site,
And in the process, you'll also be giving up sensitive
information like your Social Security number. If you need an
expedited passport, there are steps you can take that you
can only do it through official channels. You can pay
for expedited processing by mailing in your paperwork and fees,
(24:22):
or if this is a really close window, you can
go to a passport agency. And the closest ones to
us right now are Chicago and Detroit, although there is
will be one opening up in Cincinnati next year, so
that's good news. And the timeshare scams you mentioned, you
know people have gotten involved in time shares. Many of
(24:42):
them are just fine and they are enjoying them, but
there are a lot of people that are just over
their time shares. The fees are piling up. You don't
use it, you just want out. Then you get a
call or you see an ad online for timeshare legal
consulting or an exit company and they say they have
a team of lawyers on staff and they've helped thousands
(25:03):
of people exit their timeshare. That's all part of the scam.
To get you to trust them. They'll demand a huge
upfront fee, claiming it's for legal services, filing fees, or
even to guarantee your exit. And they'll use high pressure
tactics of course, claiming you have to sign up right
now because of a limited time deal or maybe there's
an upcoming change in the law. According to them, after
(25:26):
you pay up, they're going to stop returning your calls,
and all those lawyers you were told about are nowhere
to be found. They've got your money and probably pass
your timeshare onto a broker. You are still the owner
of that time share, You're still responsible for all the fees,
and now you're stuck waiting to see if the broker
finds a buyer, which could be years if they ever do.
Speaker 3 (25:51):
All right, Josio, I'm sure you and your team monitor
reputable companies versus questionable companies, and I hear these timeshare
adds quite often on the radio. Are you able to
name specific companies? Maybe they don't ever are there specific
companies out there that you already know? Hey, watch out
for that company, do not contact them.
Speaker 8 (26:14):
There are specific companies that BBB is aware of, but you,
as the consumer need to go to our website and
check the company that you are considering doing business with,
and the report will be there that this is either
a company that you can trust or it's a company
that you should stay away from.
Speaker 5 (26:33):
So they want to change the subjects here a little bit.
You also have mentioned in the past social media account
takeovers in the ways that your life can be dominated
if somebody gets a hold of your password or hacks
into your account, And how does this work and how
can we protect ourselves from these kinds of things.
Speaker 8 (26:47):
Well, one of the prime targets of a scammer is
to get access to your social media account log in information.
If they have that information, they can log into your
social media account and impersonate you. Once they're in, they
could message your family and friends, usually asking for money
in some fashion.
Speaker 3 (27:06):
Maybe they will.
Speaker 8 (27:07):
Claim that you've had an emergency. In one case, a
man reported that he saw his friend listed his car
for sale on Facebook. He then went to message his
friend about what how much is it going to cost
for your car? And the scammer who had taken over
the account said he would only accept cryptocurrency. So the
(27:28):
man got suspicious and called his friend, who knew nothing
about it, didn't have a car for sale, and he
realized that he couldn't log into his Facebook account. His
account had been hijacked. So losing access to your account,
all your pictures, and your contacts is bad enough, but
it's even worse if somebody you know falls for the
(27:49):
scam and sends these crooks money. To protect yourself and
your family and friends, make sure you use a strong password.
I cannot emphasize that enough. And turn on multi factor authentication.
Speaker 4 (28:02):
And if a.
Speaker 8 (28:03):
Friend suddenly messages you on social media asking for money,
either directly or indirectly, be careful because it might not
be your friend at all.
Speaker 3 (28:13):
Josill, this this impersonation scam actually happened. You know. My
wife and I didn't get scammed, but somebody thought they
were renting our condo and actually sent money to someone,
only to find out that the whole thing was fake.
They didn't impersonate our account, but they created an account
to try to rent our condo out to somebody, and
thankfully a neighbor you know, discovered what was going on.
(28:36):
So this is a real thing out there, and we
really appreciate you coming on tonight to share some of
this stuff with us. You're listening to Simply Money, presented
by Allword Financial on fifty five KRC, the talk station.
Speaker 2 (28:48):
It's the main event for the importance events of today.
Speaker 6 (28:52):
Every day we discover something new and in court.
Speaker 7 (28:55):
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Speaker 3 (29:07):
Events in my day to day, tracking our next weather, event,
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East, happen, events happening now important at this moment.
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Speaker 4 (29:26):
Thank you guys for always being there.
Speaker 6 (29:28):
Good b dude, you wants your love fifty five KRC.
Speaker 1 (29:38):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob sponsor along with Brian James. Do you have
a financial question you'd like for us to answer.
Speaker 3 (29:46):
There's a big fat red button you can click while
you're listening to the show right on the iHeart app.
Speaker 1 (29:52):
Simply record your.
Speaker 3 (29:53):
Question and it will and always comes straight to us.
All right, Brian, Let's lead things off tonight with and
Hyde Park, who says, I know my portfolio is too
concentrated in.
Speaker 1 (30:04):
Tech, especially Navidios stock.
Speaker 3 (30:08):
Should I be looking at hedging strategies or just start
selling now even if the tax bill is painful?
Speaker 5 (30:14):
Well, congratulations Tom that you put yourself in a good
solid position with some of these strong technology positions that
have been driving the market for the better part of
several decades. But also glad to hear you're willing to
maybe step outside the casino with some coins left in
you and your little bucket. So let's talk about how
you can get out of this. First thing would be,
obviously you can simply sell it, and you can spread
it over time. Maybe maybe it's a situation where you
(30:36):
could you buy enough time to sell a little bit
in the current tax year and move some into the
second tax year.
Speaker 4 (30:42):
That's one option just to think about.
Speaker 5 (30:44):
Another would be you can you can potentially look at
it using something called an exchange traded fund. If this position,
and you mentioned in video, if that position is over
a million dollars, then you may very well be able
to put that into an exchange fund and in response
receive a diversified portfolio of other people's stock who have
the same problem. So you're basically committing your overly large
position in exchange for a portion of everyone else's overly
(31:06):
large position. That is not a taxable event. Lots of
moving parts to that, though. You can also hedge with options.
You can do something called callers or protective puts, which
is basically putting a floor and a ceiling above your
position so that it can't hurt you too much if
it goes the wrong direction. And then finally, something else
to look for is if there are any positions elsewhere
in your portfolio that are sitting at losses, you might
(31:27):
sell those at the same time, those losses will net
out against the big gain you have in your technology portfolio.
Speaker 4 (31:32):
Perhaps there's some out there that you can take advantage of.
Speaker 5 (31:35):
Rachel in Fort Mitchell says she's invested an interested in
Charitable Remainder trust, but she's wondering whether they really provide
an income as well as a benefit for charity or
is this just a tax gimmick that CPAs and lawyers
try to sell us.
Speaker 3 (31:47):
Bob, do we think, well, it's definitely not a tax gimmick, Rachel.
Speaker 1 (31:52):
I mean, these things are real.
Speaker 3 (31:53):
They've been used for years and years and years, and
in the right situation they work remarkably well. There's just
a lot of options and a lot of moving parts
with these things. So one thing to keep in mind
is when you do give that stock away, the benefit
is you avoid all the capital gains taxes on the
stock that you gifted into that trust and it leaves
(32:13):
your taxable estate. It is an irrevocable gift to charity,
and the charity will will receive what's left in that
trust after you and your husband pass away. The key
is figuring out how much income you want or need
to retain and for how long, and you can dial
that period up and down, you know, based on a
period of years or over both lifetimes. And then the
(32:35):
tax deduction for doing all this varies based on how
much income you're going to retain during your life. So
it's definitely a situation where you want to sit down
with a good fiduciary financial advisor in CPA and map
this out to make sure you customize this if you're
going to utilize this strategy for your and your husband's
(32:55):
you know, needs and goals down the road. But it's
not a gimmick. These things are real and the right
situation they worked very very well, all right. Brian in
blue Ash says, most of our net worth is an
investment real estate. How do we create liquidity for estate
taxes so our heirs don't have to sell property under pressure?
You know, presumably after we pass away.
Speaker 5 (33:17):
You know, this reminds me of a story that comes
up all the time when we talk about a state planning. So, uh,
I don't know if you remember, Bob, you remember Joe
Robbie Stadium where the Dolphins used to play the Robbie family.
Joe passed away without a will and did not have
estate plans in place. That team and that stadium were
worth an awful lot of money, but you can't carve
out a chunk of a team, you know, or a
(33:38):
building or whatever in pay a stay taxes. So they
were basically forced to liquidate the team, and hence there is.
Speaker 1 (33:42):
No Joe, right.
Speaker 3 (33:42):
I also remember the Jim Carrey movie where they stole
the Dolphin?
Speaker 5 (33:46):
Remember that that was Yes, that was not related at
all to a state planning. But I'm glad to see
you've had a spark of a memory, Bob. That's that's
something in your advanced age. That's something to be proud
of and celebrate, big, big moment for Bob. The reason
I brought that up is because because I wanted to
make fun of Bob. Anyway, So this is a family
(34:09):
didn't do any planning and they were forced to sell
their families big asset, and that's problem.
Speaker 4 (34:13):
Real estate is ill liquid wealth.
Speaker 5 (34:15):
So your heirs might inherit that valuable property, but Uncle
Sam's gonna come knocking for a state taxes within about
nine months, and that money has got to come from somewhere.
You might be able to borrow against it, you might
be able to sell off some parcels of it, who knows,
but regardless, the taxes are come and do so what
you might consider, there are solutions out there.
Speaker 4 (34:33):
Properly it's structured.
Speaker 5 (34:34):
A life insurance policy held in an irrevocable life insurance
trust makes money drop out of the sky. Obviously you
have to be insurable and healthy enough to do this,
but that can cause or that can cover those kind
of needs. Entity planning meaning what entity owns this property.
It can be held by an LLC or a partnership.
You can and you can use take advantage of minority
interest discounts to reduce the taxable estate value. You can
(34:56):
also look at gifting strategies during life, using the annual
gear tax exclusion to reduce what's left to be taxed later,
charitable giving, strategic borrowing.
Speaker 4 (35:04):
There are a number of things that you can do
in this particular case.
Speaker 5 (35:07):
Okay, we're going to hog a bunch of time from
our other questioners, so we're going to move on to
Joseph and Marymont. Joseph has some birds in the nest
who don't get along very well, and he's worried about
that their a state actually could tear the family apart
based on everybody's own perception of what they're going to
get out of this. So how do they build a plan, Bob,
that keeps money from becoming a wedge?
Speaker 3 (35:27):
Well, when I think about your question, Joseph, you know
the two things that come to mind is if you
own a business and you're trying to figure out who's
going to take over that business, or you own a
vacation property property that in you know, a perfect world,
we say, well, we're going to leave this to our
kids and they'll enjoy it with the grandkids, you know,
on generation after generation, and if the kids don't get along,
(35:52):
you really got to sit down and figure out how
to divide these assets up ahead of time.
Speaker 1 (35:57):
So you know, in a business situation, face it usually.
Speaker 3 (36:01):
One kid or the most two is really interested in
being involved in the business and others aren't because they
have other interests.
Speaker 1 (36:09):
Communication up front.
Speaker 3 (36:10):
And again it doesn't have to be fair, but you've
got to communicate to to try to avoid some of
these this family discord down the road.
Speaker 1 (36:18):
Same thing with these vacation properties.
Speaker 3 (36:22):
Don't just pass it down and hope it all works out,
because oftentimes it creates a big problem. All right, Coming
up next, I've got my two cents on how to
plan ahead for some of these big ticket items that
we all want to spend during our retirement years. You're
listening to Simply Money presented by all Worth Financial on
fifty five KRC the talk station, Mark Levin.
Speaker 9 (36:44):
Let me tell you some The Internet is breeding evil,
breeding evil.
Speaker 1 (36:48):
And TikTok is the main culprit.
Speaker 9 (36:50):
And I don't know what's happening with TikTok, but that
damn thing needs to be sold now and it needs
to be cleaned up. And I don't want to hear
about free speech and everything else. It's a private company,
the company. He needs to clean it up because this
is crazy between the communist Chinese and all the crap
that people put on this stuff.
Speaker 2 (37:06):
Mark Levin tonight at ten oh six on fifty five
KRS the talk station, And as we believe that.
Speaker 1 (37:13):
Donald Trump crashed the economy.
Speaker 6 (37:15):
Talk about it, Maybe get the cruise out there. Care
about it. The economy is in a solid position, talk
about it. Fourth pize of the News and I like that.
Fifty five krs the talk station.
Speaker 3 (37:31):
You're listening to Simply Money about all Worth Financial on
Bob Sponseller along with Brian James. All Right, Brian, we
just went through a whole laundry list of lessons here
on how to plan to enter retirement and plan out
spending and all this.
Speaker 1 (37:45):
So I'm just going to share one.
Speaker 3 (37:46):
Of my pet peeves that comes up from time to time,
and I'm talking about and this is really as we
talked about before. This this has nothing to do with
your net worth. It has to do with what you
plan to spend. And here's what I'm talking talking about.
For folks that have their retirement plan in place and
they have a certain amount of income they want to
(38:08):
you know, have coming in every month, and we've run
the numbers and we know that it's going to work.
But there's not a ton of margin for air in
the plan. In other words, we got to be disciplined
and follow the plan in order for it to work.
What What invariably happens from time to time is I
get this email or phone call that says, well, we've
(38:28):
always wanted to take the kids on a cruise and
the grandkids and all that, and Bob, I need you
to pull fifty grand, sixty grand and send it to us.
And you know, when people do that, you know, just
on a whim, and they don't factor it into their plan,
and they don't communicate it with their advisor in advance,
(38:48):
you leave some opportunities, you know, on the table. In
my opinion, Number one, we want to make sure the
plan is going to work if.
Speaker 1 (38:55):
You do these kind of things.
Speaker 3 (38:57):
And then second, you know, especially as the dollar amounts
go up. I gave the example of a cruise, but
you know, let's say a two hundred thousand.
Speaker 1 (39:05):
Dollars home remodel.
Speaker 3 (39:06):
You want to give your advisor and our team a
chance to get some of this money out of harm's
way to avoid market volatility.
Speaker 1 (39:13):
So I'm real big.
Speaker 3 (39:15):
On communication when it comes to these big ticket items.
Don't just spring it on us through an email or
a phone call, because that really can throw the whole
plan out of whack, and not in a good way.
Speaker 4 (39:27):
Yeah, sometimes there's no choice with this, right.
Speaker 5 (39:30):
Life happens and life intervenes, and we just don't get
the chance to plan.
Speaker 4 (39:33):
But Bobby, I reconize what you're talking about.
Speaker 5 (39:35):
These are situations where maybe we've talked about maybe we're
gonna do this for years.
Speaker 4 (39:38):
I don't know, we're gonna decide. Maybe it's a low
priority goal.
Speaker 5 (39:41):
We just got it on the back burner, and then suddenly,
over a weekend it launches itself to the front burner
and on Monday we're scrambling to cut a check as
soon as possible because a commitment has been made somewhere.
Speaker 4 (39:51):
This this is our.
Speaker 5 (39:52):
Client's money, and it's we can and will and should
be spent the way that they want it.
Speaker 4 (39:56):
It doesn't matter.
Speaker 5 (39:56):
We're simply pointing out that we lose the chance to
be a fish and as well thought out as possible
if there's not enough time to kind of plan things out,
you know, maybe well yeah.
Speaker 3 (40:06):
But Brian, you gave, in my opinion, the perfect example
of how this is supposed to work in the earlier
segment where you described a situation where you were sitting
down with your clients and saying, hey, let's dream a
little bit let's throw everything into the plan that we
might want to do, from cruises to vehicles to Homer
model to vacations to RV and let's make sure the
(40:28):
plan's going to work in advance.
Speaker 1 (40:30):
That's exactly what I'm talking about.
Speaker 3 (40:33):
Unfortunately, we run into some people that won't have those
kind of discussions with their advisor. That's really what I'm
talking about here.
Speaker 5 (40:40):
Yeah, I think you're right, and it's just if you're
gonna haven advisor in the mix and then everything is
on the table.
Speaker 4 (40:45):
Otherwise you're not getting your money's worth.
Speaker 1 (40:48):
All right, thanks for listening.
Speaker 3 (40:49):
You've been listening to Simply Money, presented by all Worth
Financial on fifty five KRC the talk station.
Speaker 6 (40:56):
Now you have three
When it happens, we're coming to you.
Speaker 2 (00:02):
You're going to want to listen to this fifty five
KRC the talk station.
Speaker 3 (00:16):
Tonight some advice you don't want to hear, but you
might need to hear. You're listening to Simply Money, presented
by all Worth Financial on Bob Sponsller along with Brian James.
Speaker 1 (00:26):
We meet a lot.
Speaker 3 (00:27):
Of families who've done an incredible job saving. Maybe they
sold a business, maybe they were diligent four to one
k savers for years, if not decades, and now they're
sitting on two million, three million, five million, maybe even more.
And the natural thought is, well, we're rich, we're good,
we're set for life. But here's where we put the
(00:47):
tough teacher hat on tonight and say not so fast.
You're not automatically in the clear. So, staying with that
whole teacher theme, Brian, let's get into lesson number one, all.
Speaker 4 (01:00):
Right, Bob.
Speaker 5 (01:01):
Less than one Retirement isn't a vacation, it's a paycheck
replacement plan. Now, some of the things we're going to
talk about here this evening are about are gonna sound
kind of almost wet, blankety, kind of depressing, But retirement
should be a happy time. Here's how you start that
way and keep it that way. So a retirement is
a vacation, not a paycheck. Replacement plan basically means that
you know, you have to figure out what you were
(01:21):
living off of before.
Speaker 4 (01:22):
This is kind of where it all starts.
Speaker 5 (01:23):
If you were making one hundred and fifty thousand dollars
while you were working, well, where's that money gonna come from?
Speaker 4 (01:27):
Now? Now, let me let me back off.
Speaker 5 (01:29):
That question a little bit by saying, if you were
grossing one hundred and fifty thousand dollars, you were not
netting one hundred and fifty thousand dollars.
Speaker 4 (01:35):
You had taxes coming out of that.
Speaker 5 (01:36):
You had federal income taxes, state income taxes, payroll taxes,
which are three different flavors by the way, and you
had your four h one K contributions coming out of it.
Maybe you were putting money systematically into savings that you
don't have to anymore. You had a mortgage, maybe that's gone,
so you don't necessarily need to replace your entire salary.
But that also means you need to do a little
bit of work and figure out what it is exactly
(01:57):
that you spend so that you know what target you're
shooting for. You can't spend what you don't have, no
matter how well you've done. So even three to five
million dollars can run drive. You don't manage those withdrawals, inflation,
taxes and all that. We've got clients with that to have,
you know, two hundred and fifty thousand dollars who are
going to be just fined because their budget is below
their Social Security checks and that's kind of all they have.
We have clients who have five million dollars who live
(02:17):
like they have twenty five million dollars. Yep, guess which
one has the problem. What's our second lesson, Bob Well.
Speaker 3 (02:23):
Lesson too is stop chasing headlines. In other words, the
market doesn't care what you read and consume in the
way of.
Speaker 1 (02:30):
Media all day.
Speaker 3 (02:31):
Stop chasing headlines, Brian, I'm running into this more and more.
I mean, let's face it, in this divided media culture
that we're living in right now, depending on where we
go in terms of sources for our news and headlines,
we can have a completely different narrative swimming around in
our head and for folks that just retire and don't
(02:54):
maybe have enough to do, you know, they're glued to
CNBC or TikTok or wherever they get their news, and
they want to act on what they hear or see
in headlines rather than have an actual plan. And again,
the market does not care what you read. It doesn't
move because of your favorite newsletter or Twitter feed.
Speaker 5 (03:13):
Yeah, and Bob, I can't remember the last time I heard,
and I don't think I ever have the last time
I heard our chief investment officer, Andy Stout say hey,
I read this or I saw this headline on the crawl,
I better to go do something with our thirty billion
dollars that we manage.
Speaker 4 (03:26):
These are not things, this is financial pornography.
Speaker 5 (03:28):
We don't necessarily we really never react to those kind
of headlines.
Speaker 4 (03:32):
It's just something to talk about.
Speaker 3 (03:33):
And it comes from it comes from both sides of
the political aisle.
Speaker 1 (03:37):
Let's face it. I mean, we live the news. Media
is a business.
Speaker 3 (03:41):
They know what we want to consume and they feed
us what we want to read. So yeah, thank god
we got Andy Stout just looking at data and running
our good old recession scorecard to keep us up to date.
Speaker 1 (03:52):
All right, less than three Brian.
Speaker 5 (03:54):
Yeah, your kids don't need another check. They need a plan.
So we've seen this pretty often. So we write checks
for how is cars, vacations and this feels, you know, generous,
but it actually can actually hurt them if you're helping
them at this level. And yeah, it's tough out there,
and this doesn't mean to abandon them to the wolves.
Speaker 4 (04:10):
But at the same time.
Speaker 5 (04:11):
If we're if we're building, the expectation is the money
just drop drops out of the sky and my problems
are solved, then they're not going to learn how to
how to scrimp and save the way that the way
that you did uh to to build your ability to
help them this way in the first place. So this
this can fuel lifestyle inflation, makes them completely dependent on
somebody else, and robs them of any financial discipline, which
(04:31):
is presumably what you got along the way from your
forebears because you had the ability to build this kind
of a nest egg in the first place that supports
them to do this. So what might be a better
gift if I'm going to help my kid my kids, Bob,
what do you think? What are some good ideas?
Speaker 1 (04:44):
Well?
Speaker 3 (04:44):
The best gift is financial education and communication. And you
know it's sitting down especially you know approaching and into retirement,
you got more time to do this. Equip your kids
and grandkids to handle money, and yes, if there's a
dire knee that comes along, I mean helping them get
out of a jam today for a little bit of
money is going to be a game changer versus giving
(05:07):
them a whole pile of money when they're in there,
you know, late sixties, seventies. But to your point, Brian,
we can't enable bad behavior just because we feel like
we've got a whole boatload of money to throw around
and we're we're it's counterintuitive, but we're oftentimes hurting our
kids more than we're helping them by bailing them out
(05:29):
or enabling irresponsible behavior. You're listening to Simply Money, presented
by all Worth Financial on Bob Sponseller along with Brian James. Brian,
let's get into another lesson stop treating your portfolio like
a casino. We don't run across this too often with
our clients, but every once in a.
Speaker 1 (05:47):
While we do.
Speaker 5 (05:48):
Yeah, a lot of times, you know, people will get
to get an idea, and this comes from cocktail party
or somebody's brother in law or somebody you know, somebody's
friend or at the office water cooler got a hot
tip on something and it paid off, And so now
all of a sudden, we want to chase things, and
so people, some investors are doing just that, treating their
portfolio like a casino. It's something where I'm supposed to
take a little bit of money and turn it into
(06:09):
a big pile of money. These are when we talk
about these on these airwaves all the time, meme stocks,
crypto hot funds. Twenty five years ago, it was any
technology stock that's not investing, that's just gambling, like Vegas,
the house always wins. Portfolios are not for thrill seekings.
For building financial security, discipline beats luck every time. So
if you find yourself having this itch and needing to
scratch it carve out a little bit of money, don't
(06:31):
do it in a roth ira. A lot of people
say I'm going to make my bazillion dollars out of
this penny stock in a roth ira. That way i'll
have I'll be Peter Teeal with five billion dollars off
of this thousand dollars investment I made in a penny stock. Well,
more likely what's going to happen is one thousand dollars
is going to go to one hundred dollars or zero dollars,
And because you did it inside of a roth Ira,
you don't even get a deduction out of it. So
the bear in mind the risk that you're taking with
(06:53):
these little corners of your portfolio.
Speaker 4 (06:55):
And do it in a taxable account if you have to.
Speaker 1 (06:58):
Yeah, and I.
Speaker 3 (06:59):
Love the cone again for those that love to play,
you know, and there's nothing wrong with doing this, But
again my message is always, let's make sure we separate
your serious money from your play money. If you've got
enough serious money set aside in a good responsive financial
plan and you want to go take some risk and
speculate on some things for fun or to compete or
(07:20):
just feel like you're winning. Treated as a hobby, it's
totally fine, But you don't want to do that with
your serious money for obvious reasons. You'll mess up your
retirement that you've spent decades building just because you're bored
and seeking excitement. All right, Brian less than six. I
think this is a big one, and I think this
is one of the biggest value ads we provide for
(07:43):
our clients. And that's not letting taxes.
Speaker 5 (07:46):
Suit you taxes should be somewhat predictable if you're paying attention,
So they're going to be one of your biggest lifetime
expenses if you add them all up, probably even bigger
than your house. So roth conversions, charitable trust, direct indexing, plans,
planning ahead saves millions of dollars. These are all ways
of simply understanding how the tax code works and taking
advantage of all those little subtle details. So if you're
(08:08):
gonna do a Roth conversion, you're simply taking pre tax
money and you're turning it into after tax tax for
money forever. That sounds awesome, and a lot of people
roll in and they say, of course, I'm gonna convert
my entire traditional ray to a a WROTH.
Speaker 4 (08:19):
Why wouldn't I that it's gonna be tax free forever.
Speaker 5 (08:21):
We got to look at what that's gonna cost you
out of pocket and how you're gonna pay the taxes,
for example, in that case, charity, direct indexing, all these
other things are definitely helpful strategies. But if you ignore taxes,
you're gonna give the iron more than your kids over time.
Speaker 1 (08:37):
All right, less than seven.
Speaker 3 (08:38):
Don't confuse busy work with a true financial plan and Brian,
we run into this from time to time. People are
checking their accounts every day, multiple times a day.
Speaker 1 (08:49):
That's not a plan.
Speaker 3 (08:50):
Neither is collecting fifteen statements from different advisors. You know,
feeling like you're diversified and you've got all this information
to manage and play with. True planning means coordination, investments,
state planning, taxes, and insurance all working together in concert
in one coordinated plan.
Speaker 1 (09:11):
Yep.
Speaker 4 (09:11):
And so we'll move on then to less than eight.
Speaker 5 (09:14):
If we think that retirement it starts at sixty five,
that might be another mistake. A lot of us can
hung up on Medicare age. Sixty five is the go
time for Medicare age. Matter of fact, this might be
a great time to talk about the other ages because
we tend to get confused. Sixty two is when you
can first sign up for Social Security. That doesn't mean
to do it, That just means that's the first time
you can. It'll be the smallest check you ever get,
(09:36):
which isn't necessarily a bad thing.
Speaker 4 (09:38):
Understand the impact.
Speaker 5 (09:39):
Then there's something called full retirement age, which is between
sixty six and sixty seven, depending on when you were born.
For anybody born after sixty nineteen sixty it's now sixty seven,
and then the other age related SoC security is seventy.
Sixty two, sixty six, sixty seven and seventy are the
for Social Security relevant ages. The wait longer you wait,
the of a check you're going to get now. A
(10:01):
lot of people get hung up on sixty five, and
we tend to start here too. I think we probably
as financial advisors, tend to rely on sixty five is
just a good starting point for those who don't know.
But that is the age at which you become eligible
for Medicare, which obviously is important because you need to
have some kind of health insurance plan when you are retired.
Some people are fortunate to retire from companies that offer
(10:22):
retireehealth benefits.
Speaker 4 (10:23):
Most are not.
Speaker 5 (10:24):
So you might have cobra, meaning you could go at
say sixty three and a half and get a slightly
better deal on your by maintaining your existing healthcare insurance
through your ex employer. But some people will simply have
to go on the exchanges. And if you're a you know,
for an individual, you're probably paying on thy twelve hundred
dollars a month for insurance double that for a married
couple if you're on the exchanges. So but that that
(10:47):
causes a lot of people to believe retirement starts at
sixty five and I have no way to choose differently
than that, And that is simply not the case. You
can retire earlier. You just have to do some planning
on the healthcare side. And just because you don't want
to write a twothoand dollars check for health insurance doesn't
mean you can't so own your life. First, figure out
what you want to do, and then make the math
work around it. If you got to write a fact
(11:07):
check and write a fat check, as long as the
plan works all right.
Speaker 3 (11:11):
Lesson number nine, You can't outsmart longevity. We run into
people sometimes that underestimate how long they're actually gonna live.
One spouse for a married couple often outlives the other
by almost a decade. You got to plan as though
you're going to live longer than you think, because chances
are one of you probably will. And that leads to
(11:32):
lesson number ten. Stop thinking that a state planning is
just for the wealthy. It's for the responsible, and Brian,
I see this way too often. Too many families put
off doing wills and trusts, and without it, the courts
not you decide what happens to your assets.
Speaker 1 (11:49):
And the big one that.
Speaker 3 (11:50):
I see overlooked a lot of times, and this is
becoming more and more prevalent for folks that I work with,
is powers of attorney. You gotta have these things set
up in case cognitive impairment, you know, dementia, things like
that happen. You gotta have somebody name to step in
your place to handle things if you can't do it anymore.
Speaker 5 (12:12):
Yeah, and you might do what it's called a durable
power of attorney, which which you know if you if
you trust the person that you are naming is your
power of attorney, then you can put them in charge
right now, give them the ability now while you are
a perfectly clear mind.
Speaker 4 (12:23):
You don't need them to do anything.
Speaker 5 (12:25):
But if you want them to be able to step
in quickly, then a durable power of attorney might be
a good idea that enables them not to have to
go through the process of getting you in front of
a doctor to have a doctor declare you incompetent officially.
You can simply act for them. Now there is not
There are many moving parts of this. That's not a
quick answer, but it's something to consider if you're in
that situation.
Speaker 1 (12:43):
Here's the all Worth advice.
Speaker 3 (12:44):
No matter how much you've saved or how smart you
think you are, money doesn't just take care of itself. Discipline, planning,
and a clear eyed approach are the only things that
keep wealth from just slipping away. There's a big lie
about retirement that most people out there still believe.
Speaker 1 (13:02):
We'll tell you what that is. Next.
Speaker 3 (13:03):
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the talk station.
Speaker 6 (13:11):
Yes he's a fifty five KRC. What's the event of
the day, What's going on? Will be busy?
Speaker 4 (13:16):
Frankie News.
Speaker 6 (13:17):
The President just said, good morning, what will yours look like?
Speaker 3 (13:20):
Hey?
Speaker 6 (13:21):
New days coming Check in.
Speaker 2 (13:23):
Brian Thomas tomorrow morning at five on fifty five KRZ
the talk station.
Speaker 7 (13:28):
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 (13:47):
You're listening to Simply Money presented by all Worth Financial
on Bob Sponsor along with Brian James. If you can't
listen to Simply Money every night, subscribe and get our
daily podcast. Just search Simply Money on the iHeart app
or wherever if you find your podcast.
Speaker 1 (14:02):
Straight ahead of six forty.
Speaker 3 (14:03):
Three, we are diving into more of your questions, everything
from smart investing moves to protecting your retirement.
Speaker 1 (14:11):
One of the most common assumptions.
Speaker 3 (14:12):
We hear from people approaching retirement is this, Oh, I
know I'm gonna spend way less money when I'm retired,
less commuting, less need for work clothes, the mortgage might
be paid off, so naturally expenses are gonna go down, right.
But the reality and Brian, we see this all the time.
Research shows that many retirees actually spend more in the
(14:35):
early years of retirement, not less. Let's dig into this
because this happens a lot and it's an important topic
to cover.
Speaker 5 (14:43):
This research comes from the EBRI Employee Benefit Research Institute.
We get a lot of good information out of them.
They've been tracking and they found for the first five
to ten years of retirement, spending often rises.
Speaker 4 (14:53):
Well, this is the reason behind this kind of makes sense.
Speaker 5 (14:56):
This is when we're healthiest, most energetic, and finally ready
to do the things they've been putting off. This is
bucket list time, right for those of us who kept
a bucket list all those years. Here's all the awesome
things that I'm going to do, but when I have
the time to do it, well, that's really the first
five to ten years worth of retirement. And when we
have time, we tend to fill it. When there's a
(15:16):
vacuum of time, we tend to fill that vacuum with spending.
So that's not necessarily a bad thing, but for sure
we have to get our sea legs when it comes
to being actually retired and understanding what our lifestyle is
going to be like.
Speaker 4 (15:27):
So this can include.
Speaker 5 (15:27):
Vacations, home remodels, maybe even an entire second home. And
you know, let's be honest, a lot of people just
want to spike the football and celebrate the fact that
they don't have to clock in on a Monday morning anymore.
Speaker 3 (15:38):
Yeah, spike the football and write a half million dollar
check for whatever, an RV or a second home. I
think the point we're trying to make here is, and
we talk about this in reverse, telling people not to
just hoard all their money and not spend it and
not have any fun and leave a whole boatload of
money to their airs, you know, when they're in their
eighties and nineties.
Speaker 1 (15:58):
But you know, at this point you have to plan
for this stuff.
Speaker 3 (16:02):
If you're thinking about doing these major big ticket items,
the crews, the second home, the home remodel, the RV,
talk about it in advance of retirement and make sure
that's factored in to your retirement plan, because you only
want to retire once and you don't want to come up,
you know, in your late seventies and eighties and say, shoot,
I'm about to run out of money.
Speaker 5 (16:23):
Yeah, So we want to make sure that we're on
top of things. And this all starts with sit down
with your spouse if you're married, or even if you
just need to go sit on the porch and stare
off into the sunset and think about what you want
as an individual. It hasn't It just has everything to
do with what is it going to be like when
I don't have to adhere to someone else's schedule.
Speaker 4 (16:41):
So the big thing to paytastical you.
Speaker 3 (16:43):
You just brought up an excellent point here, and that's
it is so critical to have both spouses in the
room talking about financial goals, especially in retirement, because let's
face it, whether one spouse is working in a job
and the other is stay at home, or both spouses
are working, everyone has in their mind what retirement looks
(17:06):
like to them, and oftentimes, when you're raising kids and
working hard and you're busy and you're in the office
all day, you're not communicating with your spouse on what
he or she thinks retirement should look like. So it's
really important to when you're talking about goals, have both
spouses in the room to talk about this stuff, so
you know, when you start attaching dollars and cents to
(17:29):
these goals, you've got to make sure the plan's going
to work, and do that in advance so one or
both spouses aren't disappointed in the end.
Speaker 5 (17:39):
That's really important, and this all comes through. We have
some data to support this too, so a twenty two
JP Morgan studies show that about six and ten retirees
spent the same or more in the first decade of retirement.
So there's a kind of exclamation point to this whole
topic here of making sure we understand you know what's coming.
By the way, we're not talking about medical costs. We're
not talking about the unfund stuff that comes later. We're
(18:00):
talking about people just living their lives and once they
finally accomplish that some level of freedom.
Speaker 1 (18:05):
Yeah.
Speaker 3 (18:05):
And for those that do have a good amount of wealth,
the risk isn't necessarily running out of money, but misaligning
your wealth with your lifestyle. You don't want to live
the first ten years in retirement way under budget, only
to pass away with more money than you ever intended
to leave behind, or worse, live it up early and
then find yourself tightening the belt when you're eighty again.
(18:27):
It's good to get take advantage of those go go
years as you called them, the first few years of retirement.
But talk about it, talk about it with both spouses
and plan ahead.
Speaker 4 (18:38):
And talk about it with an advisor.
Speaker 5 (18:39):
I mean, this is where this is something where the
common question that I bring up when I'm in when
I can see that I'm in a situation where these
folks are going to be okay, this is you know,
I really feel after thirty years of doing this, Bob,
I feel like my job, every meeting is going to
be one of two outcomes. It's me pushing someone to
be more responsible because they're about to run their train
off a cliff, or pushing them to go out and
enjoy what they've built. Remediing fits in one of those
(19:01):
two categories. So one of the first things that I
ask people is when we're building a financial plan, is
you know, all, we need to know your goals.
Speaker 4 (19:08):
What do you have in mind? What is it that
you want to do.
Speaker 5 (19:10):
And they'll say, well, we really want to kind of
make sure it works, so we're just gonna keep it simple,
and we're gonna build a garden and we're gonna eat
vegetables out of the garden, and we're just not going
to leave the house. And that sounds like a terrible
way to exist for the rest of someone's life. So
I kind of try to turn them around the other way.
If you ever kind of sort of thought maybe you
wanted to do something that's going in the plan, Let's
throw every last goal in here, remodel the house, the
(19:32):
second house, the around the world, retirement trip, do all
of those things.
Speaker 4 (19:36):
Let's run the math.
Speaker 5 (19:36):
Assuming we've done that, if it works, cool, Now you've
got to get out of your own way and decide
which of these things you're really going to pull the
trigger and write a check for if it doesn't work.
That's okay because we were throwing the kitchen sink into it.
Now we prioritize what are the things that are most important,
what are the things we can live without. That way,
when we do those extra fun things that maybe aren't
necessary to retirement but sure are a heck of a
(19:56):
lot of fun, we don't have to feel guilty about
it because we planned it ah exactly.
Speaker 3 (20:01):
And what you just talked about there is being proactive
and communicating clearly.
Speaker 1 (20:06):
I love it. That's what good financial planning is all about.
Speaker 3 (20:09):
Here's the all Worth Advice Plan for a retirement that
matches your lifestyle, not just a formula. All right, scams,
The scammers out there are getting smarter, and we'll show
you the latest tricks con artists are using and how
to spot them before they spot you.
Speaker 1 (20:26):
Coming up next.
Speaker 3 (20:26):
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC the talk station.
Speaker 8 (20:33):
This is fifty five KRC and iHeartRadio station.
Speaker 3 (20:41):
You're listening to Simply Money presented by all Worth Financial
on Bob Sponseller along with Brian James joined tonight by
our good friend Josio Erlick, President of the Cincinnati Better
Business Bureau. Joe Soo, thanks as always for spending some
time with us tonight. Hope you're doing well and I
know you want to talk. There's a whole bunch of
scams out there. We're always on the lookout on these
(21:04):
latest scams and preventing our clients from getting exposed to them.
I know you've got a lot to talk about. Walk
us through some of this latest stuff we need to.
Speaker 1 (21:13):
Be aware of.
Speaker 8 (21:14):
Well, let's start out with fantasy football. There are so
many people that play fantasy football. It's very popular. We
have seen a spike in online gaming scams as a
result of that. You know, it's really easy to end
up on an illegal betting site, especially if you're scrolling
through social media. If you're somebody who relates to betting influencers,
(21:36):
and that's a lot of young people. You can find
gambling influencers all over TikTok and Instagram. They pose as
betting gurus, but their goal is more to go viral
than to give genuine betting advice. They hype themselves big
time by claiming things like I made ten thousand dollars
in a day, and they post things like guaranteed Sunday
(21:59):
football wins. Theyre NFL lock picks, and these claims are
how they're going to lure your into clicking the link
in their post. This link is supposedly going to direct
you to some secret betting site, but it's really a
fake site, or it's a cloned version of a legitimate
betting site. Think a URL that's spelled slightly different than
(22:21):
the real site is spelled. The games on these sites
are usually rigs, so you have no chance of winning,
and even if you do win, the site won't allow
you to withdraw your winnings. Not only are you going
to lose the money you deposited into the site, but
the scammers now have your personal financial information to either
use themselves or they'll sell it on the dark web. Now,
(22:43):
if you want to try your luck, make sure you're
using a legitimate betting website and check it out first
at BBB dot org.
Speaker 4 (22:51):
That's great that you track those types of sites.
Speaker 5 (22:53):
I didn't know that that was. The gambling sites was
something that's has that always been there is BBB always tracked.
Speaker 8 (22:59):
That wherever the scams are we're tracking it, and we
track legitimate businesses across all industries and the ones that
are causing people headache and heartache.
Speaker 3 (23:09):
All right, Josilla, You've also got some updates on passport
scams and timeshare scams.
Speaker 9 (23:15):
Right.
Speaker 8 (23:16):
So, you got this big trip trip next month, and
you just realize that your passport is going to expire.
So you go online to find a solution, and you
come across a website that promises to expedite your renewal
passport for a fee. Unfortunately, this is not your solution.
It's going to be your nightmare because this scam can
(23:37):
cost you hundreds of dollars, not to mention possibly having
to cancel your trip. These fake passport sites are designed
to look exactly like the official US Department of State site,
which is travel dot state dot gov goov. That's important,
and these guys are counting on your desperation to keep
you from thinking clearly, could d up paying for forms
(24:01):
that you can get for free on the government site,
And in the process, you'll also be giving up sensitive
information like your Social Security number. If you need an
expedited passport, there are steps you can take that you
can only do it through official channels. You can pay
for expedited processing by mailing in your paperwork and fees,
(24:22):
or if this is a really close window, you can
go to a passport agency. And the closest ones to
us right now are Chicago and Detroit, although there is
will be one opening up in Cincinnati next year, so
that's good news. And the timeshare scams you mentioned, you
know people have gotten involved in time shares. Many of
(24:42):
them are just fine and they are enjoying them, but
there are a lot of people that are just over
their time shares. The fees are piling up. You don't
use it, you just want out. Then you get a
call or you see an ad online for timeshare legal
consulting or an exit company and they say they have
a team of lawyers on staff and they've helped thousands
(25:03):
of people exit their timeshare. That's all part of the scam.
To get you to trust them. They'll demand a huge
upfront fee, claiming it's for legal services, filing fees, or
even to guarantee your exit. And they'll use high pressure
tactics of course, claiming you have to sign up right
now because of a limited time deal or maybe there's
an upcoming change in the law. According to them, after
(25:26):
you pay up, they're going to stop returning your calls,
and all those lawyers you were told about are nowhere
to be found. They've got your money and probably pass
your timeshare onto a broker. You are still the owner
of that time share, You're still responsible for all the fees,
and now you're stuck waiting to see if the broker
finds a buyer, which could be years if they ever do.
Speaker 3 (25:51):
All right, Josio, I'm sure you and your team monitor
reputable companies versus questionable companies, and I hear these timeshare
adds quite often on the radio. Are you able to
name specific companies? Maybe they don't ever are there specific
companies out there that you already know? Hey, watch out
for that company, do not contact them.
Speaker 8 (26:14):
There are specific companies that BBB is aware of, but you,
as the consumer need to go to our website and
check the company that you are considering doing business with,
and the report will be there that this is either
a company that you can trust or it's a company
that you should stay away from.
Speaker 5 (26:33):
So they want to change the subjects here a little bit.
You also have mentioned in the past social media account
takeovers in the ways that your life can be dominated
if somebody gets a hold of your password or hacks
into your account, And how does this work and how
can we protect ourselves from these kinds of things.
Speaker 8 (26:47):
Well, one of the prime targets of a scammer is
to get access to your social media account log in information.
If they have that information, they can log into your
social media account and impersonate you. Once they're in, they
could message your family and friends, usually asking for money
in some fashion.
Speaker 3 (27:06):
Maybe they will.
Speaker 8 (27:07):
Claim that you've had an emergency. In one case, a
man reported that he saw his friend listed his car
for sale on Facebook. He then went to message his
friend about what how much is it going to cost
for your car? And the scammer who had taken over
the account said he would only accept cryptocurrency. So the
(27:28):
man got suspicious and called his friend, who knew nothing
about it, didn't have a car for sale, and he
realized that he couldn't log into his Facebook account. His
account had been hijacked. So losing access to your account,
all your pictures, and your contacts is bad enough, but
it's even worse if somebody you know falls for the
(27:49):
scam and sends these crooks money. To protect yourself and
your family and friends, make sure you use a strong password.
I cannot emphasize that enough. And turn on multi factor authentication.
Speaker 4 (28:02):
And if a.
Speaker 8 (28:03):
Friend suddenly messages you on social media asking for money,
either directly or indirectly, be careful because it might not
be your friend at all.
Speaker 3 (28:13):
Josill, this this impersonation scam actually happened. You know. My
wife and I didn't get scammed, but somebody thought they
were renting our condo and actually sent money to someone,
only to find out that the whole thing was fake.
They didn't impersonate our account, but they created an account
to try to rent our condo out to somebody, and
thankfully a neighbor you know, discovered what was going on.
(28:36):
So this is a real thing out there, and we
really appreciate you coming on tonight to share some of
this stuff with us. You're listening to Simply Money, presented
by Allword Financial on fifty five KRC, the talk station.
Speaker 2 (28:48):
It's the main event for the importance events of today.
Speaker 6 (28:52):
Every day we discover something new and in court.
Speaker 7 (28:55):
So it's control our capital City, direct federal control.
Speaker 6 (28:58):
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What is happening the most important things.
Speaker 3 (29:07):
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Speaker 4 (29:26):
Thank you guys for always being there.
Speaker 6 (29:28):
Good b dude, you wants your love fifty five KRC.
Speaker 1 (29:38):
You're listening to Simply Money, presented by all Worth Financial.
I'm Bob sponsor along with Brian James. Do you have
a financial question you'd like for us to answer.
Speaker 3 (29:46):
There's a big fat red button you can click while
you're listening to the show right on the iHeart app.
Speaker 1 (29:52):
Simply record your.
Speaker 3 (29:53):
Question and it will and always comes straight to us.
All right, Brian, Let's lead things off tonight with and
Hyde Park, who says, I know my portfolio is too
concentrated in.
Speaker 1 (30:04):
Tech, especially Navidios stock.
Speaker 3 (30:08):
Should I be looking at hedging strategies or just start
selling now even if the tax bill is painful?
Speaker 5 (30:14):
Well, congratulations Tom that you put yourself in a good
solid position with some of these strong technology positions that
have been driving the market for the better part of
several decades. But also glad to hear you're willing to
maybe step outside the casino with some coins left in
you and your little bucket. So let's talk about how
you can get out of this. First thing would be,
obviously you can simply sell it, and you can spread
it over time. Maybe maybe it's a situation where you
(30:36):
could you buy enough time to sell a little bit
in the current tax year and move some into the
second tax year.
Speaker 4 (30:42):
That's one option just to think about.
Speaker 5 (30:44):
Another would be you can you can potentially look at
it using something called an exchange traded fund. If this position,
and you mentioned in video, if that position is over
a million dollars, then you may very well be able
to put that into an exchange fund and in response
receive a diversified portfolio of other people's stock who have
the same problem. So you're basically committing your overly large
position in exchange for a portion of everyone else's overly
(31:06):
large position. That is not a taxable event. Lots of
moving parts to that, though. You can also hedge with options.
You can do something called callers or protective puts, which
is basically putting a floor and a ceiling above your
position so that it can't hurt you too much if
it goes the wrong direction. And then finally, something else
to look for is if there are any positions elsewhere
in your portfolio that are sitting at losses, you might
(31:27):
sell those at the same time, those losses will net
out against the big gain you have in your technology portfolio.
Speaker 4 (31:32):
Perhaps there's some out there that you can take advantage of.
Speaker 5 (31:35):
Rachel in Fort Mitchell says she's invested an interested in
Charitable Remainder trust, but she's wondering whether they really provide
an income as well as a benefit for charity or
is this just a tax gimmick that CPAs and lawyers
try to sell us.
Speaker 3 (31:47):
Bob, do we think, well, it's definitely not a tax gimmick, Rachel.
Speaker 1 (31:52):
I mean, these things are real.
Speaker 3 (31:53):
They've been used for years and years and years, and
in the right situation they work remarkably well. There's just
a lot of options and a lot of moving parts
with these things. So one thing to keep in mind
is when you do give that stock away, the benefit
is you avoid all the capital gains taxes on the
stock that you gifted into that trust and it leaves
(32:13):
your taxable estate. It is an irrevocable gift to charity,
and the charity will will receive what's left in that
trust after you and your husband pass away. The key
is figuring out how much income you want or need
to retain and for how long, and you can dial
that period up and down, you know, based on a
period of years or over both lifetimes. And then the
(32:35):
tax deduction for doing all this varies based on how
much income you're going to retain during your life. So
it's definitely a situation where you want to sit down
with a good fiduciary financial advisor in CPA and map
this out to make sure you customize this if you're
going to utilize this strategy for your and your husband's
(32:55):
you know, needs and goals down the road. But it's
not a gimmick. These things are real and the right
situation they worked very very well, all right. Brian in
blue Ash says, most of our net worth is an
investment real estate. How do we create liquidity for estate
taxes so our heirs don't have to sell property under pressure?
You know, presumably after we pass away.
Speaker 5 (33:17):
You know, this reminds me of a story that comes
up all the time when we talk about a state planning. So, uh,
I don't know if you remember, Bob, you remember Joe
Robbie Stadium where the Dolphins used to play the Robbie family.
Joe passed away without a will and did not have
estate plans in place. That team and that stadium were
worth an awful lot of money, but you can't carve
out a chunk of a team, you know, or a
(33:38):
building or whatever in pay a stay taxes. So they
were basically forced to liquidate the team, and hence there is.
Speaker 1 (33:42):
No Joe, right.
Speaker 3 (33:42):
I also remember the Jim Carrey movie where they stole
the Dolphin?
Speaker 5 (33:46):
Remember that that was Yes, that was not related at
all to a state planning. But I'm glad to see
you've had a spark of a memory, Bob. That's that's
something in your advanced age. That's something to be proud
of and celebrate, big, big moment for Bob. The reason
I brought that up is because because I wanted to
make fun of Bob. Anyway, So this is a family
(34:09):
didn't do any planning and they were forced to sell
their families big asset, and that's problem.
Speaker 4 (34:13):
Real estate is ill liquid wealth.
Speaker 5 (34:15):
So your heirs might inherit that valuable property, but Uncle
Sam's gonna come knocking for a state taxes within about
nine months, and that money has got to come from somewhere.
You might be able to borrow against it, you might
be able to sell off some parcels of it, who knows,
but regardless, the taxes are come and do so what
you might consider, there are solutions out there.
Speaker 4 (34:33):
Properly it's structured.
Speaker 5 (34:34):
A life insurance policy held in an irrevocable life insurance
trust makes money drop out of the sky. Obviously you
have to be insurable and healthy enough to do this,
but that can cause or that can cover those kind
of needs. Entity planning meaning what entity owns this property.
It can be held by an LLC or a partnership.
You can and you can use take advantage of minority
interest discounts to reduce the taxable estate value. You can
(34:56):
also look at gifting strategies during life, using the annual
gear tax exclusion to reduce what's left to be taxed later,
charitable giving, strategic borrowing.
Speaker 4 (35:04):
There are a number of things that you can do
in this particular case.
Speaker 5 (35:07):
Okay, we're going to hog a bunch of time from
our other questioners, so we're going to move on to
Joseph and Marymont. Joseph has some birds in the nest
who don't get along very well, and he's worried about
that their a state actually could tear the family apart
based on everybody's own perception of what they're going to
get out of this. So how do they build a plan, Bob,
that keeps money from becoming a wedge?
Speaker 3 (35:27):
Well, when I think about your question, Joseph, you know
the two things that come to mind is if you
own a business and you're trying to figure out who's
going to take over that business, or you own a
vacation property property that in you know, a perfect world,
we say, well, we're going to leave this to our
kids and they'll enjoy it with the grandkids, you know,
on generation after generation, and if the kids don't get along,
(35:52):
you really got to sit down and figure out how
to divide these assets up ahead of time.
Speaker 1 (35:57):
So you know, in a business situation, face it usually.
Speaker 3 (36:01):
One kid or the most two is really interested in
being involved in the business and others aren't because they
have other interests.
Speaker 1 (36:09):
Communication up front.
Speaker 3 (36:10):
And again it doesn't have to be fair, but you've
got to communicate to to try to avoid some of
these this family discord down the road.
Speaker 1 (36:18):
Same thing with these vacation properties.
Speaker 3 (36:22):
Don't just pass it down and hope it all works out,
because oftentimes it creates a big problem. All right, Coming
up next, I've got my two cents on how to
plan ahead for some of these big ticket items that
we all want to spend during our retirement years. You're
listening to Simply Money presented by all Worth Financial on
fifty five KRC the talk station, Mark Levin.
Speaker 9 (36:44):
Let me tell you some The Internet is breeding evil,
breeding evil.
Speaker 1 (36:48):
And TikTok is the main culprit.
Speaker 9 (36:50):
And I don't know what's happening with TikTok, but that
damn thing needs to be sold now and it needs
to be cleaned up. And I don't want to hear
about free speech and everything else. It's a private company,
the company. He needs to clean it up because this
is crazy between the communist Chinese and all the crap
that people put on this stuff.
Speaker 2 (37:06):
Mark Levin tonight at ten oh six on fifty five
KRS the talk station, And as we believe that.
Speaker 1 (37:13):
Donald Trump crashed the economy.
Speaker 6 (37:15):
Talk about it, Maybe get the cruise out there. Care
about it. The economy is in a solid position, talk
about it. Fourth pize of the News and I like that.
Fifty five krs the talk station.
Speaker 3 (37:31):
You're listening to Simply Money about all Worth Financial on
Bob Sponseller along with Brian James. All Right, Brian, we
just went through a whole laundry list of lessons here
on how to plan to enter retirement and plan out
spending and all this.
Speaker 1 (37:45):
So I'm just going to share one.
Speaker 3 (37:46):
Of my pet peeves that comes up from time to time,
and I'm talking about and this is really as we
talked about before. This this has nothing to do with
your net worth. It has to do with what you
plan to spend. And here's what I'm talking talking about.
For folks that have their retirement plan in place and
they have a certain amount of income they want to
(38:08):
you know, have coming in every month, and we've run
the numbers and we know that it's going to work.
But there's not a ton of margin for air in
the plan. In other words, we got to be disciplined
and follow the plan in order for it to work.
What What invariably happens from time to time is I
get this email or phone call that says, well, we've
(38:28):
always wanted to take the kids on a cruise and
the grandkids and all that, and Bob, I need you
to pull fifty grand, sixty grand and send it to us.
And you know, when people do that, you know, just
on a whim, and they don't factor it into their plan,
and they don't communicate it with their advisor in advance,
(38:48):
you leave some opportunities, you know, on the table. In
my opinion, Number one, we want to make sure the
plan is going to work if.
Speaker 1 (38:55):
You do these kind of things.
Speaker 3 (38:57):
And then second, you know, especially as the dollar amounts
go up. I gave the example of a cruise, but
you know, let's say a two hundred thousand.
Speaker 1 (39:05):
Dollars home remodel.
Speaker 3 (39:06):
You want to give your advisor and our team a
chance to get some of this money out of harm's
way to avoid market volatility.
Speaker 1 (39:13):
So I'm real big.
Speaker 3 (39:15):
On communication when it comes to these big ticket items.
Don't just spring it on us through an email or
a phone call, because that really can throw the whole
plan out of whack, and not in a good way.
Speaker 4 (39:27):
Yeah, sometimes there's no choice with this, right.
Speaker 5 (39:30):
Life happens and life intervenes, and we just don't get
the chance to plan.
Speaker 4 (39:33):
But Bobby, I reconize what you're talking about.
Speaker 5 (39:35):
These are situations where maybe we've talked about maybe we're
gonna do this for years.
Speaker 4 (39:38):
I don't know, we're gonna decide. Maybe it's a low
priority goal.
Speaker 5 (39:41):
We just got it on the back burner, and then suddenly,
over a weekend it launches itself to the front burner
and on Monday we're scrambling to cut a check as
soon as possible because a commitment has been made somewhere.
Speaker 4 (39:51):
This this is our.
Speaker 5 (39:52):
Client's money, and it's we can and will and should
be spent the way that they want it.
Speaker 4 (39:56):
It doesn't matter.
Speaker 5 (39:56):
We're simply pointing out that we lose the chance to
be a fish and as well thought out as possible
if there's not enough time to kind of plan things out,
you know, maybe well yeah.
Speaker 3 (40:06):
But Brian, you gave, in my opinion, the perfect example
of how this is supposed to work in the earlier
segment where you described a situation where you were sitting
down with your clients and saying, hey, let's dream a
little bit let's throw everything into the plan that we
might want to do, from cruises to vehicles to Homer
model to vacations to RV and let's make sure the
(40:28):
plan's going to work in advance.
Speaker 1 (40:30):
That's exactly what I'm talking about.
Speaker 3 (40:33):
Unfortunately, we run into some people that won't have those
kind of discussions with their advisor. That's really what I'm
talking about here.
Speaker 5 (40:40):
Yeah, I think you're right, and it's just if you're
gonna haven advisor in the mix and then everything is
on the table.
Speaker 4 (40:45):
Otherwise you're not getting your money's worth.
Speaker 1 (40:48):
All right, thanks for listening.
Speaker 3 (40:49):
You've been listening to Simply Money, presented by all Worth
Financial on fifty five KRC the talk station.
Speaker 6 (40:56):
Now you have three
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