November 21, 2025 • 38 mins
On this episode of Simply Money presented by Allworth Financial, Bob and Brian discuss how strong market performance in 2025 can actually lead to costly investor mistakes—if you're not careful. They unpack the concept of "portfolio drift," why it could mean you're taking on more risk than intended, and why now might be the right time to rebalance. They also walk through smart year-end tax strategies, from tax-loss harvesting to donor-advised funds. Plus, new tax breaks for retirees, a potential hit for high earners over 50, and how to protect yourself from scams hitting Cincinnati inboxes this holiday season. Finally, why patience may be the most underrated investment strategy of them all.
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Episode Transcript
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Speaker 1 (00:05):
Tonight what smart investors should be doing after a strong
year for the markets. You're listening to Simply Money, presented
by all Worth Financial on Bob Sponsorller along with Brian James. Well,
here we are. It's mid to late November, and believe
it or not, Thanksgiving is coming up next week and
most investors probably pretty happy with their portfolios this year.
(00:26):
Other than that blip we had in April, it's been
another great year for the markets with one month ago.
But tonight we want to bring some awareness to that situation.
And Brian, this is an interesting topic because a lot
of people don't just make financial mistakes when the markets
are down. They can also make some mistakes or avoid
(00:46):
making some smart moves when the market's up, and that's
what we want to get into tonight.
Speaker 2 (00:52):
Bad financial decisions don't only happen when things are great
and we're making tons of money.
Speaker 3 (00:57):
They happen, of course, you know, they happen all the time.
Speaker 2 (00:59):
Right when markets are down we do something silly, it
gets really really highlighted because of the overall market in
the economy. But let's talk about the other side of it. So,
when the market's up and your portfolio is growing. That's
a great thing, but that's also when you're most vulnerable
to kind of just letting it.
Speaker 3 (01:12):
Go and floating and coasting a little bit.
Speaker 2 (01:14):
People stop thinking critically about risk. I'll just throw the
We'll throw more money at it because it's on a roll.
They forget about taxes. They don't think about what happens
in December when mutual funds and things spit out.
Speaker 3 (01:23):
Capital gains, and.
Speaker 2 (01:24):
There's easy ways to avoid it by not touching them
like the hot stove during that time. But people just
assume the market's going to keep going up. And that's
exactly why we wanted to do this segment. If your
portfolio is up this year, great, good for you.
Speaker 1 (01:36):
It should be.
Speaker 2 (01:37):
But the question is and how much did I make?
It's what do I do next?
Speaker 1 (01:41):
Well, Brian, to me, this manifests itself in a couple
different ways, and I want to see if you agree
with this. Number One is just avoidance. People have the
same risk profile, let's just call it. They want to
be sixty percent in stocks, and when the market goes up,
either for one or two years, we have something called
portfolio drift that's sixty forty allocation turns into seventy eight
(02:02):
to seventy five, seventy thirty. Let's say, and that happens.
You know that that just happens when the stock market
goes up, and if you don't have a strategy in place,
all of a sudden, your portfolio becomes more risky than
you wanted it to be, and you did nothing to
mitigate that through through rebalancing and then the other side
of the coin. And I see this from time to time,
(02:23):
people's people's tolerance for risk can can drift and change
based on one of the markets going up or down.
You know what their allocation could go to seventy percent
and like you just said, hey, let's let it ride.
Things are going good. But Brian, you and I have
lived through all of this many times by this point.
Most of the times we see a whip saw or
(02:43):
a big down draft in the market. Heck, let's go back,
you know, to April of this year. Most of those
things happen when no one sees it coming. And that's
when the phone calls start and say, wow, that thing
went down too much, too fast. I'm not comfortable. And Brian,
if they didn't have a strategy in place beforehand, it's
a little late to mitigate that risk. Right.
Speaker 2 (03:05):
Now, here's how probably how somebody set themselves up for
that level of frustration. So let's use an example in
this past year. Let's say somebody started this year with
three million dollars sixty percent in stocks. That's one point
eight million, and then the rest about forty percent in bonds.
Marcus had a strong run driven by the technology industry
once again, and now that stock allocation is at two
point one million dollars.
Speaker 3 (03:24):
Right, So the stocks grew, that's a good thing. We
like that.
Speaker 2 (03:26):
But instead of being sixty percent, now it's seventy percent
without anybody making a single move. That's just what the
market gave us this year so far. Furiously knocking on
wood here and they're thinking, hey, this is great. Why
am I going to screw this up? It ain't broke,
why fix it? Well, then next year tech has a
big pullback, and this stuff does happen tech, the tech
industry has to lay off tens of thousands of people
at a time. Did happen to not that many years ago,
(03:46):
and that's what gave us this situation. But all of
a sudden, because of that overweight, now these folks have
lost over four hundred thousand dollars in just that one
portion of their portfolio. That's a pretty painful lesson to
learn because we simply didn't take gains and rebalance when
they were there for us.
Speaker 1 (04:01):
Well, we talked about, you know, at the beginning of
this segment, the blip that we had in April. Yeah,
now we could talk about that like it was no
big deal back in April. But if we all go
back to quote unquote Liberation Day, when the President walked
out there with this huge list of companies that we
were going to put tariffs on, the market was not
ready for that. People were shocked by the magnitude and
(04:25):
the volume of those tariff announcements. And yeah, the market
recovered in pretty quick order. But boy back for those yeah,
that week or two weeks, you know, the market went
down by quite a bit pretty quickly. And those are
the kind of shocks that hit the system historically, you know,
even go back seventy eighty years, Stuff like that happens
from time to time. Usually, you know, between a ten
(04:47):
and fifteen percent short term pullback in the portfolio. And
that's why, you know, if risk is important to you,
if volatility is important to you, either from an income
you know, generation strategy, or just emotion. That's why you
got to get out in front of this and have
a strategy to keep your allocation where you want it
to be at all times.
Speaker 3 (05:07):
Yeah, now let's move on to taxes.
Speaker 2 (05:08):
Right, We've got a little more than a month left
here to do whatever we're gonna do to lock in
our taxes and do some tax planning by the end
of the year. So now's when you should be thinking
about what these steps are going to be. Definitely not
waiting till December twenty eighth, you're not gonna be able
to get your financial institutions to do the things you
need to do in paperwork and so forth, and your
CPA does not want to talk to you.
Speaker 3 (05:26):
In New Year's eve, we're.
Speaker 2 (05:28):
Definitely seeing people with solid gains and their taxable accounts,
and again, like we've been talking about, that's fantastic. But
if you're not pairing those gains back or maybe actually
maybe you are listening to us and maybe you're saying,
you know what, time to take some gains and move
off the table here. That's great, Thank you for doing
what you need to do for yourself, but now what
you're doing. Don't forget there's another step here. You've created
a capital gain if these are in taxable accounts, So
(05:50):
look for some smart tax loss harvesting moves elsewhere in
your portfolio. So oftentimes we're not just talking about selling
off rebalancing and selling off the winners. Look for some
losers to sell off too, and make sure that you're
going to minimize the taxes, the tax hits you're going
to take off of that. But this takes a little
bit of work, and it can take a professional eye
to figure out what's the right move, what's the right
position to pair back. And now we're just creating a
(06:12):
bunch of cash. Anyway, what do I do after I've
made all these sales of my winners and my losers
for tax planning purposes.
Speaker 3 (06:17):
Now I've got a bunch of cash.
Speaker 2 (06:18):
How do I keep it invested without giving myself what's
called a wash sale. And no, by the way, you
cannot simply buy again today what you sold tomorrow. The
irs really really doesn't like that. It won't work. You'll
get that lost discount. So you have to have a
plan to all of this.
Speaker 1 (06:32):
Yeah, Brian, I want to throw out just a real simple,
practical example here on what we're talking about with tax
lost harvesting. Let's say you made an investment in a
broadly diversified ETF for all the right reasons and for
all the right time horizon. You plan on being in
this asset class, you know, for the next five, ten,
fifteen years, and it was a good long term position,
(06:54):
but for whatever reason, it's down in the short term
and you want to offset some gains. Here's here's what
we mean. You know, practically from tax loss harvesting, especially
in the area of ETFs, there are a lot of
ETFs that cover the same sector. So you could just
sell one ETF, harvest that loss, and literally within sixty
seconds by another ETF in the same asset class, same sector.
(07:19):
You're fully invested, but you've captured that short term loss
and you still stayed fully invested for the long term.
That's a practical, simple example by what we mean by
tax loss harvesting, and it's a great strategy to deploy.
Let's talk about the overall mindset here. When the market's
up in your statement looks good, it's really tempting to think, hey,
(07:42):
this is working great, I don't need to change a
thing that can create some traps.
Speaker 2 (07:47):
Brian, Yeah, absolutely can, just like anything else. So you know,
if it doesn't if it ain't broke, I don't want
to fix it. That's fine, except a lot of times
things don't stay the same after the environment changes. So
success can kind of you can kind of mask the
drift of the portfolio. Everything is up, so everything must
be wonderful. It hides concentration risk. Maybe there's one portion
of your portfolio, one or two stocks that are driving
(08:09):
the whole thing. But if you're only looking at the
bottom line in your statement, you're not going to catch
that level of detail. So look again at the big picture.
Have you updated your retirement timeline right? Is it still
what you want? You're still shooting for what you want.
If you've decided to move it up, have you accounted
for what that impact will be and any moves you
should make now to affect that and make that actually happen.
Maybe you had a child graduate and they're starting to
(08:29):
start their lives. Do you anticipate needing to pay for
possibly a wedding, maybe helping out with a down payment
as that child's life is kind of getting more off
the ground.
Speaker 3 (08:37):
Maybe you have a parent who is needing a little
more support.
Speaker 2 (08:39):
You could be part of the Sandwich generation, where you're
taking care of the kids below you and the parents
above you. All this stuff happens even when the market's
calm and nobody's really paying attention.
Speaker 1 (08:49):
Brian, I want to throw out an example here on
this whole mindset topic, you know, with an actual client
meeting I had this week, and this is a very
risk averse couple. I mean they've been looking for reasons
to go to cash for years now. You know, they're
just fearful about everything. And when we do a risk
tolerance you know, profile on them, and I ask them,
(09:10):
how much are you willing to have your portfolio decline
at any one time? You know, the answer is like
between two and three percent. And I'm like, it's really
hard to invest for any kind of growth or appreciation
with that kind of limited tolerance for downside. And lo
and behold. We had a review meeting this week and
(09:31):
the market's been up now for two years, and I
you know, the conversation starts with Bob, the market's doing.
Should we put more money into the market?
Speaker 2 (09:41):
Should I mortgage my house? I want to borrow against
every asset I own.
Speaker 1 (09:44):
And I'm literally rolodexing through all of these meeting notes
and conversations I've had with him over the last three years,
and I said, hey, here's what you've told me as
far as your downside tolerance for risk. Has that number changed?
And he literally started laughing. He's like no. I said, hey,
we just need to stick with the program. Here. We've
been using some structured notes where we've got some upside
(10:08):
brackets on how much we can earn, you know, is
a portion of the upside of the market. But over
the timeframe that we select for him, he's got to
guaranteed return a principle, one hundred percent guaranteed, you know,
return a principle. I said, hey, let's just stick with that.
It's working. You're happy, you've been calm this whole year.
You haven't called me once. And he's like, Yep, you're right,
(10:29):
let's stick with that. So my point here is in
periods where the markets have gone up, people can forget
about their lack of risk tolerance because they they don't
think the market's going to go down. It's just it's
something that you know, pretty common thing out there called
recency bias, and sometimes people need to be reminded of that.
Speaker 3 (10:49):
Yeah, they do.
Speaker 2 (10:50):
And and those those structured notes you were speaking of, there,
those can be great solutions.
Speaker 3 (10:54):
They come to Everything has pros and cons. So if
you're going to have a.
Speaker 2 (10:56):
Guarantee on the downside, then you're gonna have a limited upside.
Speaker 3 (10:59):
There's absolutely nothing wrong with that.
Speaker 2 (11:00):
But just go into them with eyes wide open, and
there's can be great tools for people who really really
would panic during a year like twenty two. But just
bear in mind, you know, there's pros and cons to
all these different things, all these moving parts. Hey, Bob,
I want to go back real quick. We were talking
about the need to pair back some gains and move
things around. Well, one thing we left out. We talked
(11:20):
a lot about we'll sell some stuff and generate some
gains and then offset that with some tax liability.
Speaker 3 (11:25):
Another way to affect.
Speaker 2 (11:27):
The same thing of taking some gains and rebalancing your
portfolio just get rid of chunks of it.
Speaker 1 (11:31):
Right.
Speaker 3 (11:32):
What I mean by that is if you're already.
Speaker 2 (11:33):
Charitably declin charitably inclined, and you already give money to charity,
then you can look into something called a donor advised
fund and talked about it a couple of times this year.
Speaker 3 (11:41):
I believe and simply.
Speaker 2 (11:43):
Give a move actual shares of something into that donor
advice fund. Appreciated shares for which you would have a
capital gain that have grown a little too much, Well,
if you donate those to a donor advice fund or
straight to a charity, then you will have rebalanced your
portfolio and gotten a tax benefit out of it, and
you don't have to worry about that offsetting tax loss
searching for that asset. You can sell it to offset it.
(12:04):
Just another idea there.
Speaker 1 (12:06):
Now, that's a great idea. Here's the all Worth advice.
When the market gives you a win, don't just enjoy it,
use it, check your risk, trim your taxes like Brian
just said, and make sure your strategy still serves your
life's goals. There is a new tax quote unquote breakout
there for retirees and a new tax hurdle for high
(12:27):
income earners. We're going to break all that down next.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the talk station. You're listening to
Simply Money. You're presented by all Worth Financial on bop
spond seller along with Brian James. From rebalancing confusion to
(12:48):
questions about global diversification, we're going to tackle real listener
portfolios and questions, including one from a couple wondering if
their traditional sixty to forty allocation don't make sense in
twenty twenty five. All that's coming up at six forty three.
If you're age sixty five or older or approaching it.
(13:08):
We want to remind you of a tax break that
kicked in this year. It's a brand new deduction up
to six thousand dollars per person as a single tax
filer or twelve thousand dollars for a married couple that
seniors can claim whether they itemize or not, you know,
whether you itemize or just take the standard deduction. And
we're gonna walk through that tonight. Brian. I've seen this
(13:30):
come up, you know, in a couple of meetings here
in the last couple of weeks as we do income
planning strategies for twenty twenty five and we're off conversions.
It's a good it's it's a nice deduction, but you've
got to understand the nuances of it as you do
your planning, you know, heading into the end of twenty
twenty five and twenty twenty six.
Speaker 2 (13:48):
So some of the new tax law changes we've had
most recently are putting making some money drop out of
the sky.
Speaker 1 (13:53):
Here.
Speaker 2 (13:53):
If you are single and sixty five or older by
the end of twenty twenty five, you're gonna get a
six thousand dollars deduction. If you're married and both spouses
are sixty five or older, that's twelve thousand dollars off
your taxable income, so it doesn't matter whether you itemize
or not. This is on top of the standard deduction. However,
before we get too excited, there is an income limit.
If you're single, that deduction starts to phase out once
(14:14):
you're modified adjusted gross income hits seventy five thousand. It
is completely phased out by one hundred and seventy five thousand.
If you're married filing jointly, you're going to start to
lose it at one hundred and fifty all the way
up to two hundred and fifty thousand.
Speaker 3 (14:26):
Dollars, where it disappears entirely.
Speaker 2 (14:28):
So if your income is above those thresholds, then you'll
lose some or all that deduction. This is why planning
ahead matters though, Bob. So let's say you're drawing out
from a traditional IRA just to live your life or
taxable portfolio. Those withdrawals could push your income above that
phase out level, including Roth conversions, right, So you might
end up seeing you doing something for longer term tax
planning that's going to cost you this deduction. So, Tom,
(14:50):
sometimes we got to pick our poison, and.
Speaker 1 (14:52):
Brian, I'm gonna give you an actual case example of this.
You know, again from a meeting I had in my
office earlier this week. People came in to talk specifically
or exactly as you say, about Wroth conversions. We had
already done some earlier in the year, and I told them, hey,
come back in the fourth quarter after you know exactly
what your income is gonna be, and we'll put the
(15:12):
finishing touches on this. And what I found to be
interesting as we ran this through the tax software, and
again we're talking about this six or twelve thousand dollars deduction.
We probably need to call this out. This is where
you know the president in the administration talked about Social
Security being quote unquote tax free. Well, this is where
(15:33):
we talk about kind of. And I'm gonna give you
an example. We started to run the numbers and we
added a little bit of Wroth conversions, and it was interesting, Brian.
At the end of the day, even with this deduction,
which in this client's case got phased out by about
two thirds, when I looked up their effective tax rate
(15:55):
in twenty twenty five versus twenty twenty four, their effective
tax rate went up by zero point two percent instead
of down. So even with this new you know, tax
free social Security, when you actually started to run the numbers,
it did not benefit their tax situation whatsoever. So the
devil's in the details. It's all where your income comes from. Obviously,
(16:18):
how much I think this tax legislation was targeted to,
you know, help out lower you know, income earners, which
is probably a good thing. But for everybody out there,
you know, assuming you're just going to get this twelve
thousand dollars deduction, it depends you're.
Speaker 2 (16:33):
Probably gonna have to sacrifice something else in order to
get a couple thousand dollars.
Speaker 3 (16:36):
Worth of back on your taxes.
Speaker 2 (16:38):
So just a really just depends on what your your
priorities are in your tax planning.
Speaker 1 (16:42):
Yeah, it might it might mean a slightly lower WROTH
conversion in order to get the full benefit. All right,
let's jump ahead here another important change. This one's affecting
high earning workers age fifty and up, especially if you're
managing a portfolio or nearing retirement and want to stack
the tax deck in your favor. Beginning in twenty twenty six,
(17:05):
if you're age fifty or older and you earn more
than one hundred and forty five thousand dollars in wages
from a single employer, well, that extra catchup contribution that
we're all used to maybe making in our employer sponsored
retirement plan, like a four to one K, it's no
longer going to qualify for the pre pre tax deduction.
It'll have to go into the WROTH account. And this
(17:28):
is a thing to check out with your HR department
or plan sponsor to make sure that your WROTH account
within your four toh one K will actually even handle
this extra ketchup you know, contribution.
Speaker 2 (17:40):
Are there's still some four one ks out there that
don't offer WROTH at all. Now they're going to have
to or they're going to have to wipe out their
their extra ketchup contributions. So you know what this is, Bob,
that we're we're not going to talk about it this way.
This is a tax hike, right because we are taking
away a deduction, which is a different way of hiking
taxes a little bit. The IRS has figured out that
some of the promises we've made we can we can't
(18:01):
quite fix. So we're gonna we're gonna hide that by
taking away to catch up contribution because a lot of
people already doing this and they're not gonna pay attention.
They'll just notice that suddenly they have wroth on all of.
Speaker 3 (18:10):
A sudden in their portfolio.
Speaker 2 (18:11):
So anyway, make sure if you're gonna take advantage of this,
why there's not much take advantage of it. It's the
ketchup itself has not changed. The dollar amounts are the same.
But does your four to one k even offer that
roth ketchup option? Make sure that works, that you can
even do it. I'm sure they're all scrambling right now
to make sure that they that they can handle this.
On the custodial side, anticipate that tax impact. If you
(18:32):
are forced into this, you're gonna lose a deduction. But
if you continue to push through and make those contributions,
which isn't a bad thing. You're still saving for your future,
but that's gonna bump up your adjusted gross income and
it's also going to probably decrease your take home a
little bit because that's.
Speaker 3 (18:46):
No longer deductible.
Speaker 2 (18:48):
You're you're withholding is going to going to impact because
of these WROTH contributions that are going into this ketchup.
So don't be surprised if your paycheck changes a little
bit in a way you didn't anticipate if you are
doing those ketchup contributions. Again, if you're over over fifty
making more than one hundred and forty five thousand dollars
from one single employer, then ketchup contributions have to be roth.
(19:08):
That's after tax. That means withholding is going to increase
on a per paycheck basis.
Speaker 1 (19:13):
Yeah, And just breaking down all these numbers, I guess
down to what i'll call plain english here. If you are,
you know, over fifty, and you really do plan on
making these catch up contributions, now's the time to check
with your HR office or your plan sponsor and make
sure that they are ramped up to handle this thing.
And if they aren't, put a bug in their ear
(19:33):
to ge get with it, because this is coming in
twenty twenty six, and we don't want people to be disappointed,
you know, by June of next year, because no one
got out in front of this and and made you know,
adjustments to your withholding and your contributions to your plan.
Coming up next, we've got the latest scams hitting Cincinnati
inboxes and doorsteps, and how to make sure your money
(19:55):
and identity stays safe. You're listening to Simple Money presented
by all Worth Financial on fifty five KRC the talk station.
You're listening to Simply Money presided by all Worth Financial
on Bob's font Seller along with Brian James. Joined tonight
by Josio Erlik, President of the Cincinnati Better Business Bureau. Julie,
(20:18):
thanks as always for joining us tonight, and we are
talking about scams, scams and more scams. Tell us how
to protect ourself.
Speaker 4 (20:27):
Well, I've got a couple that are kind of seasonally related,
and i want to talk first about online marketplaces like
Walmart and Amazon. These are platforms where third party sellers
can list their products right along things sold by the
marketplace itself.
Speaker 1 (20:42):
But not all of these.
Speaker 4 (20:43):
Sellers have been vetted by the marketplace, and that's where
things start going south. Let's say you're shopping for a
popular cosmetic and you find it at a great discount.
Listing looks legitimate, but when you get the product, something
just doesn't seem right. Maybe the packaging is different, the
ingredients aren't listed correctly, maybe the quality just doesn't seem
(21:05):
to be there. These are often counterfeit cosmetics, and they're
of course designed to mimic the real thing, but the
fact is you don't know what's in it.
Speaker 1 (21:15):
It could have.
Speaker 4 (21:15):
Ingredients which leave you with irritation or maybe even an
allergic reaction. Now makeup is just an example. The same
caution should be applied if you are buying anything from
the marketplace. Scammers are counting on you to buy products
because you trust the marketplace platform and that you're not
going to check out who's really selling the product. You
(21:37):
need to protect yourself by knowing who's selling the product
is at the marketplace or an outside vendor. If it's
a vendor, check their reviews before you click to purchase,
and finally, look for a return policy that's backed by
the marketplace, not just the vendor. So as you buy
do your holiday shopping. Keep this in mind now as
(21:58):
you continue doing your holiday shopping. Pet scams. Let's talk
about pet scams because holidays are a prime time for
these types of scams. If you're thinking about surprising your
kids or your grandkids with a puppy for Christmas, best.
Speaker 2 (22:12):
Idea ever, by the way, Mom and Dad are gonna
love that.
Speaker 4 (22:16):
Oh yeah, well it's a surprise.
Speaker 1 (22:18):
Yay.
Speaker 4 (22:18):
Well you sound so happy. Okay. So you're scrolling through Facebook,
Marketplace Again, or Craig's List, or you'll click on an
ad that pops up on a random website. You see
this adorable little puppy for sale. It's a popular breed,
maybe it's even an exotic breed, and the price is
of course too good to be true. Here's the catch.
(22:42):
Fake pet ads can show up anywhere online and almost
eighty percent of those ads are fake.
Speaker 1 (22:50):
Wow.
Speaker 4 (22:51):
Scammers are great at copying pictures of pets that legitimate
beat breeders are posting on their own websites. And the
scammers can even fake video calls now too, so that
the puppy you see running around in the behind the
video is an AI generated puppy. Now, once you message
(23:11):
the seller, they're going to try to pressure you to
pay quickly. Typical scam tactic, usually through cryptocurrency or gift cards.
And the biggest red flag they won't let you come
to them to see the puppy.
Speaker 1 (23:24):
And they're movers.
Speaker 2 (23:25):
Their movers are going to bring it to me, right.
This is usually how this goes.
Speaker 3 (23:28):
Movers will deliver the puppies.
Speaker 4 (23:29):
Oh, you got it, you don't need me here. They're
going to send you the if that's another version of
the scam, but now you got ahead of me. Here
they're going to claim that they are in a hurry
to rehome the dog, or there's a long list of
interested buyers, you've got to buy now, or they're going
to move on to the next customer. Some victims have
driven hours to pick up their puppy, and of course
(23:51):
when they get to this bogus address, there's nothing there.
In the version of the scam that you just talked about,
they're going to offer to send you the pet, and
of course they're going to charge extra for that, then
come back at you for more money for things like
vaccinations or storage bees or an extra box of doggie
bones in the crate.
Speaker 1 (24:11):
With a pup.
Speaker 4 (24:13):
Even if you've paid all that money, you're still not
going to get your pet. Bottom line, don't buy a
pet online unless you can actually see it in person. First,
you want to make sure the animal is real and
it's a good fit for your family. And if you're
thinking of gifting a pet this season, first of all,
you might want to rethink that whole concept. But go local.
(24:36):
Visit local shelters or local breeders in person, and check
them out on BBB dot org.
Speaker 1 (24:44):
Hey, Josile, I want to make sure we save enough
time here, because, let's face it, we are right in
the middle of Medicare open enrollment season and people are
literally out there shopping for medical plans right now. You've
got some great watch outs as far as Medicare open
enrollment scans. Make sure we cover that.
Speaker 4 (25:02):
Okay, it's easy to fall for these scams because they're
going to call you. They're going to spoof your caller
ID so that it looks like Medicare is really calling you.
They'll tell you you need a new Medicare card because
it's open enrollment season and you just can't move from
one plan to the other without a new card. You
do not need a new card to participate in open enrollment.
(25:24):
They use that as a ploy, so you're going to
give them your personal information like your bank account, your
credit card, or your Medicare ID. Scammers count on this
sense of urgency during these six weeks or so of
open enrollment and the confusion about open enrollment and all
of the plans to trick you into giving up your
(25:46):
sensitive information. Now, to protect yourself, you need to ignore
these unexpected calls asking for Medicare details. I guarantee you
everyone you get is going to be an attempt to
scam you out of money or personal information. Other Medicare
related scams. They might call you and offer you a
(26:06):
free gift to get you enrolled in a similar program.
Those are air quotes around that. Again, they're trying to
get your personal information. Or they'll convince you to buy
some medical equipment that Medicare will pay for. Not only
will you not get this product, but now they have
your Medicare ID and they will use that to defraud
Medicare down the road. So a lot of things to
(26:29):
watch out for there, but nothing is free, all.
Speaker 1 (26:33):
Right, Joe Seal. In the minute or so we've got left,
I want to go back to that marketplace scam that
you talked about at the outset of the segment. You
talked about, you know, scams for I think you were
talking about makeup for women. I want to make sure
we get something out of this segment. Personally, Brian likes
to take a lot of bubble baths, especially during the holidays. Okay,
(26:54):
are there any scams out there relating to let's say,
shower gel or bubble baths, so things that Brian should
be looking out for to make sure he does not
purchase the wrong product that might cause allergies or infect
his skin.
Speaker 2 (27:10):
I'm a jasmine bath bomb kind of guy, if that helps.
Speaker 4 (27:14):
If you're looking for the upper end stuff and you
find it for five dollars, it's probably not the good
stuff that you're looking for and you might end up
with a little rash. So yes, steer clear of that.
Speaker 1 (27:27):
Be right back.
Speaker 3 (27:28):
I got to go empty my bathroom closet or something.
Speaker 1 (27:32):
All right, Hey, Joe Seal. As always, you've covered a
lot of great round with great stuff with us tonight,
and we were also able to have a little funnel
with you along the way. Really appreciate your time tonight.
Hope you have a wonderful Thanksgiving. Thanks again for joining
us tonight. You're listening to Simply Money, presented by all
Worth Financial on fifty five KRC, the talk station. You're
(27:59):
listening to some by all Worth Financials. I'm seller along
with Brian James. Do you have a financial question you'd
like for us to answer? There is a red button
you can click while you're listening to the show. If
you're listening on the iHeart app, simply record your question
and it will come straight to us. All right, Brian,
Here comes Elliott in Madeira and he says, We've got
(28:21):
a big taxable account and I'm realizing capital gains interact
with Medicare premium said tax credits. How do you invest
without triggering hidden tax landmines? Great question.
Speaker 2 (28:32):
Well, this goes all the way back to you know,
the different flavors of income you might have, and then
the real enemy here is this one is called modified
adjusted gross income. Remember when it was just adjusted gross income?
When O there's modified adjusted gross income. Actually been around
for a long time.
Speaker 1 (28:46):
Brian, not to interrupt, but this this is just another
exhibit A and and this is what we talked about
with with my clients that came in this year. Every
year we talk about simplifying the tax code, and should
you know we're gonna do our tax on sceniars? They
just make it more and more complicated every year. But
that's a little rant. Please answer Elliott's.
Speaker 2 (29:06):
Question, Bob is bothered today. Modified adjuster grows. Income consists
of realized capital gains, stuff you sold to a game, dividends,
interest roth conversions, required minimum distributions, sale of a property,
and even mutual fund distributions that hit this time of
year that you maybe didn't ask for. All that stuff
couples together and it affects your Medicare premiums.
Speaker 3 (29:27):
That's called IRMA.
Speaker 2 (29:28):
IRMA uses income from two years ago, So whatever you're
paying in twenty twenty five is triggered off what you
did in twenty three, and then crossing a threshold by
just a dollar can add up to eight hundred or
three thousand dollars per year per person. That calculation is
not marginable. You're either over it, or you're above it,
or you're below it. So here's what you can do.
I try to avoid these accidental gains. If you've got
mutual funds, try to find a way to replace them
(29:49):
with ETFs that itself can be a taxable transaction, but
it can be a long term benefit because ETFs do
not generate the capital gains that mutual funds do, even
though they follow the intexes. Harvest your gains intentional. Know
what you're going to sell and look for things to
offset future gains, and be careful. You're gonna have to
prioritize too. You're gonna have to decide is it more
important to keep my IRMA low or is it more
(30:09):
important to go ahead and convert my IRA to reduce
future require minimum distributions. Personally, IRMA resets every couple of years. Anyway,
I am open. I'm very open to the idea that,
you know what, we might make our medicare premiums a
little higher and that won't be fun for a year,
but two years after that it's going to be back
to normal, after we're done with all of our wrath conversions.
So there isn't a bright shining clear everybody should do
(30:30):
exactly this and then never think about it again. It's
based on your philosophy. What's most important to you? Where
do you want your tax savings? Do you want cheaper
medicare premiums, for example, or do you want to do
your wroth conversions to benefit your family? Lots to think about, Elliott,
and it's good that you're on the track of kind
of building that list of all those different things that interact.
Speaker 3 (30:48):
Michael and mount lookout.
Speaker 2 (30:50):
He says, we've got it a traditional sixty forty portfolio.
But he's really starting to question, you know, that's been
that way for a very long time.
Speaker 3 (30:57):
Does that even make sense anymore?
Speaker 2 (30:58):
And how do you know when it's time to just
kind of start over and rebuild that whole framework.
Speaker 1 (31:03):
Well, uh, before we blow the whole thing up, Michael,
I mean I I you know, I I will say,
you know, when people say the traditional sixty forty portfolio,
I know a lot of financial magazines and media folks say, hey,
here's how most people invest, therefore that's how everybody should
invest in allocy. So I would say, first of all,
(31:23):
you know, sit down, update your financial plan or build
a financial plan if you don't already have one, and
just be realistic. Talk to a good fiduciary financial advisor
that knows kind of where interest rates are and what
to maybe expect realistically here over the next ten to
twenty years, uh not the last twenty to thirty years.
(31:43):
And here's what I mean by that. You know, we
enjoyed pretty good total returns from bonds between let's say
the nineteen eighties to the early two thousands, because overall
interest rates were trending down and that tends to work
well for bonds. You know, bond prices go up when
interest rates go down. That game's kind of over now.
(32:05):
I mean, interest rates are pretty darn low. You know,
they ticked up, they came back down. And what I'm
saying here is that forty percent in bonds might not
deliver the same total return over the next twenty years
that it's then it's done over the last thirty. So
build a financial plan, be risk realistic about what these
asset classes are likely deliver going forward, and then that'll
(32:28):
answer your question. Don't just take a one size fits
all approach and you know, throw the whole thing out.
Sit down and be intentional about it on a risk
and reward basis, and see which asset allocation works best
for you. And also it might be time to add
maybe some alternative investments to your portfolio. That's where you
(32:48):
can maybe get a little bit more return and still
have that risk control that you'll want. Hope that helps.
Eric and Edgewood says, we own both growth and value funds,
but I don't understand and what actually makes a company
a quote unquote value fund anymore? Is that still a
meaningful distinction for long term investors?
Speaker 2 (33:08):
Brian, Yeah, that's a common question, and it just comes
from what we what we have evolved to. So so, traditionally,
value stocks were those companies that looked really cheap on paper, right.
You looked at their assets, you looked at what the
what the forecast of sales and revenues was going to
be in a relatively low price to earnings ratio, steady.
Speaker 3 (33:24):
Cash flow, all that kind of stuff.
Speaker 2 (33:26):
These are banks, utilities, old school manufacturers. Growth stocks, on
the other hand, these were the innovators. These are the
ones inventing new things and finding new markets to sell
them in. They reinvested every spare dollar to go do
more of that. It's not as clear anymore so that
that distinction has gotten a little blurry. Tech companies now
throw off massive cash or they just plane sit on it.
(33:46):
You know, there's a lot of big technology companies that
have more cash than some companies or some countries have
in their entire economies. These value companies often traded higher
multiples than their so called growth names, and index providers
also keep changing the depth finitions of what is growth
and what is valued. So does this distinction still kind
of matter if your long term investor. Yeah, but you
have to look a little harder to find it. And
(34:07):
it's not because the labels are perfect. It's owning both
of them. Is not about predicting which style wins next.
It's about not having to make sure you've got both
of them, because now they're intermingling with each other a
lot more than they used to. The definitions are kind
of messy, but the behaviors are still different enough that
you can see the difference. And we've seen a microcosm
in the last five years of when it's a good
time to own growth stocks and when it's a good
(34:29):
time to own value stocks. The challenge is that we
cannot predict when those times are going to shift. So
make sure you've got.
Speaker 1 (34:35):
Both of them. Yeah. And another thing to throw in
on that, just be watchful on the composition of these funds.
What I mean is style drifts. Sometimes these value or
growth funds will venture into the other kind of stock
to juice the return, and that's what we call style drifts.
So it's another thing to watch. Coming up next, what
could be the most underrated investment strategy of them all.
(34:58):
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC the talk station. You're listening to
Simply Money presented by all Worth Financial on Bob Sponsller
along with Brian James. Well, Youngsters like you, Brian live
in a world where if our Amazon package takes more
(35:20):
than two days to get delivered, we're sitting there on
a tracking app refreshing it every hour. Where's my package?
Where's my package? We can't even wait for the microwave
to finish. But when it comes to investing, that kind
of impatience can cost people real money. But patience is
one of the hardest things to practice when it comes
(35:42):
to investing, right, Brian.
Speaker 2 (35:44):
Well, first off, Bob, I want to I want my
knees to acknowledge that you called me a youngster and
they need to quit feeling this way in the mornings anyway.
Uh yeah, So the most should I should have said hipster?
The hips aren't doing so well either. Well, the most
successful investors out there practice. Let's be clear, though, patience
does not mean just passive ignoring and just taking whatever
(36:05):
comes to you. It's actually an active mindset because you
have to force yourself to be patient. This means you
made a plan and you've committed to it. You're not
reacting to every headline out there. That's the bane of
every financial plan is if I want to change it
every time there's a scary headline, well then I'm going
to be changing you know, once a month, once a week,
sometimes twice before lunch.
Speaker 3 (36:23):
That's the key.
Speaker 1 (36:24):
Though.
Speaker 2 (36:24):
Patience doesn't mean ignoring your money. It means trust your strategy.
You built a plan years ago and it should have
been stress tested at the time, which means whatever stress
is occurring now, you've probably already accounted for. If you
haven't done this, then you need to. It's confidence that
the long term plan matters more than what's going on
here in the short term.
Speaker 1 (36:42):
Brian, that's great advice. Do I need to deploy the
same level of patience as a Cincinnati Bengals fan?
Speaker 2 (36:49):
Now that requires insanity and a complete ignoring of reality.
Speaker 3 (36:53):
That's a very very different situation.
Speaker 1 (36:56):
All right, Let's think of patience then as getting back
to money, which is what this shows about. Think of
patience as emotional discipline. Every time the market dips and
you feel that urge to do something, you know, cash
out your portfolio or buy too much of tech stocks,
you know, on a dip, that is a test, and
passing that test, staying put is what can tend to
(37:19):
pay off, you know, over time. And that's one of
the key benefits of having a good fiduciary advisory team
making the decisions. You know, I I'll speak for our
own Andy Stout here at all Worth Financial. One of
the one of the key things that I admire the
most about Andy is his ability to remain non emotional
(37:39):
at all times. And I know there's other folks like
that that manage money, you know, the same way. And
that's the kind of person you want with your hands
at the wheels. Someone who's not just going to react
emotionally to these short term blips or news headlines and
keep you on track with a good discipline, data driven strategy. Yeah.
Speaker 2 (38:01):
Absolutely, And this is a this is a great time
to be thinking about these things. Make sure you're on
top of what your plan is right. Think about like
tending a garden and don't dig up the don't pull
everything up and look at the roots may give it
time to grow.
Speaker 1 (38:13):
Here's the all Worth advice. Patience is impassive. It's a mindset.
Commit to the plan, ignore the noise and let time
do the heavy lifting. Thanks for listening tonight. Tune in
tomorrow and we'll talk about the biggest money mistakes that
are still happening in twenty twenty five. You've been listening
to Simply Money, presented by all Worth Financial on fifty
five KRC, the talk station
Tonight what smart investors should be doing after a strong
year for the markets. You're listening to Simply Money, presented
by all Worth Financial on Bob Sponsorller along with Brian James. Well,
here we are. It's mid to late November, and believe
it or not, Thanksgiving is coming up next week and
most investors probably pretty happy with their portfolios this year.
(00:26):
Other than that blip we had in April, it's been
another great year for the markets with one month ago.
But tonight we want to bring some awareness to that situation.
And Brian, this is an interesting topic because a lot
of people don't just make financial mistakes when the markets
are down. They can also make some mistakes or avoid
(00:46):
making some smart moves when the market's up, and that's
what we want to get into tonight.
Speaker 2 (00:52):
Bad financial decisions don't only happen when things are great
and we're making tons of money.
Speaker 3 (00:57):
They happen, of course, you know, they happen all the time.
Speaker 2 (00:59):
Right when markets are down we do something silly, it
gets really really highlighted because of the overall market in
the economy. But let's talk about the other side of it. So,
when the market's up and your portfolio is growing. That's
a great thing, but that's also when you're most vulnerable
to kind of just letting it.
Speaker 3 (01:12):
Go and floating and coasting a little bit.
Speaker 2 (01:14):
People stop thinking critically about risk. I'll just throw the
We'll throw more money at it because it's on a roll.
They forget about taxes. They don't think about what happens
in December when mutual funds and things spit out.
Speaker 3 (01:23):
Capital gains, and.
Speaker 2 (01:24):
There's easy ways to avoid it by not touching them
like the hot stove during that time. But people just
assume the market's going to keep going up. And that's
exactly why we wanted to do this segment. If your
portfolio is up this year, great, good for you.
Speaker 1 (01:36):
It should be.
Speaker 2 (01:37):
But the question is and how much did I make?
It's what do I do next?
Speaker 1 (01:41):
Well, Brian, to me, this manifests itself in a couple
different ways, and I want to see if you agree
with this. Number One is just avoidance. People have the
same risk profile, let's just call it. They want to
be sixty percent in stocks, and when the market goes up,
either for one or two years, we have something called
portfolio drift that's sixty forty allocation turns into seventy eight
(02:02):
to seventy five, seventy thirty. Let's say, and that happens.
You know that that just happens when the stock market
goes up, and if you don't have a strategy in place,
all of a sudden, your portfolio becomes more risky than
you wanted it to be, and you did nothing to
mitigate that through through rebalancing and then the other side
of the coin. And I see this from time to time,
(02:23):
people's people's tolerance for risk can can drift and change
based on one of the markets going up or down.
You know what their allocation could go to seventy percent
and like you just said, hey, let's let it ride.
Things are going good. But Brian, you and I have
lived through all of this many times by this point.
Most of the times we see a whip saw or
(02:43):
a big down draft in the market. Heck, let's go back,
you know, to April of this year. Most of those
things happen when no one sees it coming. And that's
when the phone calls start and say, wow, that thing
went down too much, too fast. I'm not comfortable. And Brian,
if they didn't have a strategy in place beforehand, it's
a little late to mitigate that risk. Right.
Speaker 2 (03:05):
Now, here's how probably how somebody set themselves up for
that level of frustration. So let's use an example in
this past year. Let's say somebody started this year with
three million dollars sixty percent in stocks. That's one point
eight million, and then the rest about forty percent in bonds.
Marcus had a strong run driven by the technology industry
once again, and now that stock allocation is at two
point one million dollars.
Speaker 3 (03:24):
Right, So the stocks grew, that's a good thing. We
like that.
Speaker 2 (03:26):
But instead of being sixty percent, now it's seventy percent
without anybody making a single move. That's just what the
market gave us this year so far. Furiously knocking on
wood here and they're thinking, hey, this is great. Why
am I going to screw this up? It ain't broke,
why fix it? Well, then next year tech has a
big pullback, and this stuff does happen tech, the tech
industry has to lay off tens of thousands of people
at a time. Did happen to not that many years ago,
(03:46):
and that's what gave us this situation. But all of
a sudden, because of that overweight, now these folks have
lost over four hundred thousand dollars in just that one
portion of their portfolio. That's a pretty painful lesson to
learn because we simply didn't take gains and rebalance when
they were there for us.
Speaker 1 (04:01):
Well, we talked about, you know, at the beginning of
this segment, the blip that we had in April. Yeah,
now we could talk about that like it was no
big deal back in April. But if we all go
back to quote unquote Liberation Day, when the President walked
out there with this huge list of companies that we
were going to put tariffs on, the market was not
ready for that. People were shocked by the magnitude and
(04:25):
the volume of those tariff announcements. And yeah, the market
recovered in pretty quick order. But boy back for those yeah,
that week or two weeks, you know, the market went
down by quite a bit pretty quickly. And those are
the kind of shocks that hit the system historically, you know,
even go back seventy eighty years, Stuff like that happens
from time to time. Usually, you know, between a ten
(04:47):
and fifteen percent short term pullback in the portfolio. And
that's why, you know, if risk is important to you,
if volatility is important to you, either from an income
you know, generation strategy, or just emotion. That's why you
got to get out in front of this and have
a strategy to keep your allocation where you want it
to be at all times.
Speaker 3 (05:07):
Yeah, now let's move on to taxes.
Speaker 2 (05:08):
Right, We've got a little more than a month left
here to do whatever we're gonna do to lock in
our taxes and do some tax planning by the end
of the year. So now's when you should be thinking
about what these steps are going to be. Definitely not
waiting till December twenty eighth, you're not gonna be able
to get your financial institutions to do the things you
need to do in paperwork and so forth, and your
CPA does not want to talk to you.
Speaker 3 (05:26):
In New Year's eve, we're.
Speaker 2 (05:28):
Definitely seeing people with solid gains and their taxable accounts,
and again, like we've been talking about, that's fantastic. But
if you're not pairing those gains back or maybe actually
maybe you are listening to us and maybe you're saying,
you know what, time to take some gains and move
off the table here. That's great, Thank you for doing
what you need to do for yourself, but now what
you're doing. Don't forget there's another step here. You've created
a capital gain if these are in taxable accounts, So
(05:50):
look for some smart tax loss harvesting moves elsewhere in
your portfolio. So oftentimes we're not just talking about selling
off rebalancing and selling off the winners. Look for some
losers to sell off too, and make sure that you're
going to minimize the taxes, the tax hits you're going
to take off of that. But this takes a little
bit of work, and it can take a professional eye
to figure out what's the right move, what's the right
position to pair back. And now we're just creating a
(06:12):
bunch of cash. Anyway, what do I do after I've
made all these sales of my winners and my losers
for tax planning purposes.
Speaker 3 (06:17):
Now I've got a bunch of cash.
Speaker 2 (06:18):
How do I keep it invested without giving myself what's
called a wash sale. And no, by the way, you
cannot simply buy again today what you sold tomorrow. The
irs really really doesn't like that. It won't work. You'll
get that lost discount. So you have to have a
plan to all of this.
Speaker 1 (06:32):
Yeah, Brian, I want to throw out just a real simple,
practical example here on what we're talking about with tax
lost harvesting. Let's say you made an investment in a
broadly diversified ETF for all the right reasons and for
all the right time horizon. You plan on being in
this asset class, you know, for the next five, ten,
fifteen years, and it was a good long term position,
(06:54):
but for whatever reason, it's down in the short term
and you want to offset some gains. Here's here's what
we mean. You know, practically from tax loss harvesting, especially
in the area of ETFs, there are a lot of
ETFs that cover the same sector. So you could just
sell one ETF, harvest that loss, and literally within sixty
seconds by another ETF in the same asset class, same sector.
(07:19):
You're fully invested, but you've captured that short term loss
and you still stayed fully invested for the long term.
That's a practical, simple example by what we mean by
tax loss harvesting, and it's a great strategy to deploy.
Let's talk about the overall mindset here. When the market's
up in your statement looks good, it's really tempting to think, hey,
(07:42):
this is working great, I don't need to change a
thing that can create some traps.
Speaker 2 (07:47):
Brian, Yeah, absolutely can, just like anything else. So you know,
if it doesn't if it ain't broke, I don't want
to fix it. That's fine, except a lot of times
things don't stay the same after the environment changes. So
success can kind of you can kind of mask the
drift of the portfolio. Everything is up, so everything must
be wonderful. It hides concentration risk. Maybe there's one portion
of your portfolio, one or two stocks that are driving
(08:09):
the whole thing. But if you're only looking at the
bottom line in your statement, you're not going to catch
that level of detail. So look again at the big picture.
Have you updated your retirement timeline right? Is it still
what you want? You're still shooting for what you want.
If you've decided to move it up, have you accounted
for what that impact will be and any moves you
should make now to affect that and make that actually happen.
Maybe you had a child graduate and they're starting to
(08:29):
start their lives. Do you anticipate needing to pay for
possibly a wedding, maybe helping out with a down payment
as that child's life is kind of getting more off
the ground.
Speaker 3 (08:37):
Maybe you have a parent who is needing a little
more support.
Speaker 2 (08:39):
You could be part of the Sandwich generation, where you're
taking care of the kids below you and the parents
above you. All this stuff happens even when the market's
calm and nobody's really paying attention.
Speaker 1 (08:49):
Brian, I want to throw out an example here on
this whole mindset topic, you know, with an actual client
meeting I had this week, and this is a very
risk averse couple. I mean they've been looking for reasons
to go to cash for years now. You know, they're
just fearful about everything. And when we do a risk
tolerance you know, profile on them, and I ask them,
(09:10):
how much are you willing to have your portfolio decline
at any one time? You know, the answer is like
between two and three percent. And I'm like, it's really
hard to invest for any kind of growth or appreciation
with that kind of limited tolerance for downside. And lo
and behold. We had a review meeting this week and
(09:31):
the market's been up now for two years, and I
you know, the conversation starts with Bob, the market's doing.
Should we put more money into the market?
Speaker 2 (09:41):
Should I mortgage my house? I want to borrow against
every asset I own.
Speaker 1 (09:44):
And I'm literally rolodexing through all of these meeting notes
and conversations I've had with him over the last three years,
and I said, hey, here's what you've told me as
far as your downside tolerance for risk. Has that number changed?
And he literally started laughing. He's like no. I said, hey,
we just need to stick with the program. Here. We've
been using some structured notes where we've got some upside
(10:08):
brackets on how much we can earn, you know, is
a portion of the upside of the market. But over
the timeframe that we select for him, he's got to
guaranteed return a principle, one hundred percent guaranteed, you know,
return a principle. I said, hey, let's just stick with that.
It's working. You're happy, you've been calm this whole year.
You haven't called me once. And he's like, Yep, you're right,
(10:29):
let's stick with that. So my point here is in
periods where the markets have gone up, people can forget
about their lack of risk tolerance because they they don't
think the market's going to go down. It's just it's
something that you know, pretty common thing out there called
recency bias, and sometimes people need to be reminded of that.
Speaker 3 (10:49):
Yeah, they do.
Speaker 2 (10:50):
And and those those structured notes you were speaking of, there,
those can be great solutions.
Speaker 3 (10:54):
They come to Everything has pros and cons. So if
you're going to have a.
Speaker 2 (10:56):
Guarantee on the downside, then you're gonna have a limited upside.
Speaker 3 (10:59):
There's absolutely nothing wrong with that.
Speaker 2 (11:00):
But just go into them with eyes wide open, and
there's can be great tools for people who really really
would panic during a year like twenty two. But just
bear in mind, you know, there's pros and cons to
all these different things, all these moving parts. Hey, Bob,
I want to go back real quick. We were talking
about the need to pair back some gains and move
things around. Well, one thing we left out. We talked
(11:20):
a lot about we'll sell some stuff and generate some
gains and then offset that with some tax liability.
Speaker 3 (11:25):
Another way to affect.
Speaker 2 (11:27):
The same thing of taking some gains and rebalancing your
portfolio just get rid of chunks of it.
Speaker 1 (11:31):
Right.
Speaker 3 (11:32):
What I mean by that is if you're already.
Speaker 2 (11:33):
Charitably declin charitably inclined, and you already give money to charity,
then you can look into something called a donor advised
fund and talked about it a couple of times this year.
Speaker 3 (11:41):
I believe and simply.
Speaker 2 (11:43):
Give a move actual shares of something into that donor
advice fund. Appreciated shares for which you would have a
capital gain that have grown a little too much, Well,
if you donate those to a donor advice fund or
straight to a charity, then you will have rebalanced your
portfolio and gotten a tax benefit out of it, and
you don't have to worry about that offsetting tax loss
searching for that asset. You can sell it to offset it.
(12:04):
Just another idea there.
Speaker 1 (12:06):
Now, that's a great idea. Here's the all Worth advice.
When the market gives you a win, don't just enjoy it,
use it, check your risk, trim your taxes like Brian
just said, and make sure your strategy still serves your
life's goals. There is a new tax quote unquote breakout
there for retirees and a new tax hurdle for high
(12:27):
income earners. We're going to break all that down next.
You're listening to Simply Money, presented by all Worth Financial
on fifty five KRC, the talk station. You're listening to
Simply Money. You're presented by all Worth Financial on bop
spond seller along with Brian James. From rebalancing confusion to
(12:48):
questions about global diversification, we're going to tackle real listener
portfolios and questions, including one from a couple wondering if
their traditional sixty to forty allocation don't make sense in
twenty twenty five. All that's coming up at six forty three.
If you're age sixty five or older or approaching it.
(13:08):
We want to remind you of a tax break that
kicked in this year. It's a brand new deduction up
to six thousand dollars per person as a single tax
filer or twelve thousand dollars for a married couple that
seniors can claim whether they itemize or not, you know,
whether you itemize or just take the standard deduction. And
we're gonna walk through that tonight. Brian. I've seen this
(13:30):
come up, you know, in a couple of meetings here
in the last couple of weeks as we do income
planning strategies for twenty twenty five and we're off conversions.
It's a good it's it's a nice deduction, but you've
got to understand the nuances of it as you do
your planning, you know, heading into the end of twenty
twenty five and twenty twenty six.
Speaker 2 (13:48):
So some of the new tax law changes we've had
most recently are putting making some money drop out of
the sky.
Speaker 1 (13:53):
Here.
Speaker 2 (13:53):
If you are single and sixty five or older by
the end of twenty twenty five, you're gonna get a
six thousand dollars deduction. If you're married and both spouses
are sixty five or older, that's twelve thousand dollars off
your taxable income, so it doesn't matter whether you itemize
or not. This is on top of the standard deduction. However,
before we get too excited, there is an income limit.
If you're single, that deduction starts to phase out once
(14:14):
you're modified adjusted gross income hits seventy five thousand. It
is completely phased out by one hundred and seventy five thousand.
If you're married filing jointly, you're going to start to
lose it at one hundred and fifty all the way
up to two hundred and fifty thousand.
Speaker 3 (14:26):
Dollars, where it disappears entirely.
Speaker 2 (14:28):
So if your income is above those thresholds, then you'll
lose some or all that deduction. This is why planning
ahead matters though, Bob. So let's say you're drawing out
from a traditional IRA just to live your life or
taxable portfolio. Those withdrawals could push your income above that
phase out level, including Roth conversions, right, So you might
end up seeing you doing something for longer term tax
planning that's going to cost you this deduction. So, Tom,
(14:50):
sometimes we got to pick our poison, and.
Speaker 1 (14:52):
Brian, I'm gonna give you an actual case example of this.
You know, again from a meeting I had in my
office earlier this week. People came in to talk specifically
or exactly as you say, about Wroth conversions. We had
already done some earlier in the year, and I told them, hey,
come back in the fourth quarter after you know exactly
what your income is gonna be, and we'll put the
(15:12):
finishing touches on this. And what I found to be
interesting as we ran this through the tax software, and
again we're talking about this six or twelve thousand dollars deduction.
We probably need to call this out. This is where
you know the president in the administration talked about Social
Security being quote unquote tax free. Well, this is where
(15:33):
we talk about kind of. And I'm gonna give you
an example. We started to run the numbers and we
added a little bit of Wroth conversions, and it was interesting, Brian.
At the end of the day, even with this deduction,
which in this client's case got phased out by about
two thirds, when I looked up their effective tax rate
(15:55):
in twenty twenty five versus twenty twenty four, their effective
tax rate went up by zero point two percent instead
of down. So even with this new you know, tax
free social Security, when you actually started to run the numbers,
it did not benefit their tax situation whatsoever. So the
devil's in the details. It's all where your income comes from. Obviously,
(16:18):
how much I think this tax legislation was targeted to,
you know, help out lower you know, income earners, which
is probably a good thing. But for everybody out there,
you know, assuming you're just going to get this twelve
thousand dollars deduction, it depends you're.
Speaker 2 (16:33):
Probably gonna have to sacrifice something else in order to
get a couple thousand dollars.
Speaker 3 (16:36):
Worth of back on your taxes.
Speaker 2 (16:38):
So just a really just depends on what your your
priorities are in your tax planning.
Speaker 1 (16:42):
Yeah, it might it might mean a slightly lower WROTH
conversion in order to get the full benefit. All right,
let's jump ahead here another important change. This one's affecting
high earning workers age fifty and up, especially if you're
managing a portfolio or nearing retirement and want to stack
the tax deck in your favor. Beginning in twenty twenty six,
(17:05):
if you're age fifty or older and you earn more
than one hundred and forty five thousand dollars in wages
from a single employer, well, that extra catchup contribution that
we're all used to maybe making in our employer sponsored
retirement plan, like a four to one K, it's no
longer going to qualify for the pre pre tax deduction.
It'll have to go into the WROTH account. And this
(17:28):
is a thing to check out with your HR department
or plan sponsor to make sure that your WROTH account
within your four toh one K will actually even handle
this extra ketchup you know, contribution.
Speaker 2 (17:40):
Are there's still some four one ks out there that
don't offer WROTH at all. Now they're going to have
to or they're going to have to wipe out their
their extra ketchup contributions. So you know what this is, Bob,
that we're we're not going to talk about it this way.
This is a tax hike, right because we are taking
away a deduction, which is a different way of hiking
taxes a little bit. The IRS has figured out that
some of the promises we've made we can we can't
(18:01):
quite fix. So we're gonna we're gonna hide that by
taking away to catch up contribution because a lot of
people already doing this and they're not gonna pay attention.
They'll just notice that suddenly they have wroth on all of.
Speaker 3 (18:10):
A sudden in their portfolio.
Speaker 2 (18:11):
So anyway, make sure if you're gonna take advantage of this,
why there's not much take advantage of it. It's the
ketchup itself has not changed. The dollar amounts are the same.
But does your four to one k even offer that
roth ketchup option? Make sure that works, that you can
even do it. I'm sure they're all scrambling right now
to make sure that they that they can handle this.
On the custodial side, anticipate that tax impact. If you
(18:32):
are forced into this, you're gonna lose a deduction. But
if you continue to push through and make those contributions,
which isn't a bad thing. You're still saving for your future,
but that's gonna bump up your adjusted gross income and
it's also going to probably decrease your take home a
little bit because that's.
Speaker 3 (18:46):
No longer deductible.
Speaker 2 (18:48):
You're you're withholding is going to going to impact because
of these WROTH contributions that are going into this ketchup.
So don't be surprised if your paycheck changes a little
bit in a way you didn't anticipate if you are
doing those ketchup contributions. Again, if you're over over fifty
making more than one hundred and forty five thousand dollars
from one single employer, then ketchup contributions have to be roth.
(19:08):
That's after tax. That means withholding is going to increase
on a per paycheck basis.
Speaker 1 (19:13):
Yeah, And just breaking down all these numbers, I guess
down to what i'll call plain english here. If you are,
you know, over fifty, and you really do plan on
making these catch up contributions, now's the time to check
with your HR office or your plan sponsor and make
sure that they are ramped up to handle this thing.
And if they aren't, put a bug in their ear
(19:33):
to ge get with it, because this is coming in
twenty twenty six, and we don't want people to be disappointed,
you know, by June of next year, because no one
got out in front of this and and made you know,
adjustments to your withholding and your contributions to your plan.
Coming up next, we've got the latest scams hitting Cincinnati
inboxes and doorsteps, and how to make sure your money
(19:55):
and identity stays safe. You're listening to Simple Money presented
by all Worth Financial on fifty five KRC the talk station.
You're listening to Simply Money presided by all Worth Financial
on Bob's font Seller along with Brian James. Joined tonight
by Josio Erlik, President of the Cincinnati Better Business Bureau. Julie,
(20:18):
thanks as always for joining us tonight, and we are
talking about scams, scams and more scams. Tell us how
to protect ourself.
Speaker 4 (20:27):
Well, I've got a couple that are kind of seasonally related,
and i want to talk first about online marketplaces like
Walmart and Amazon. These are platforms where third party sellers
can list their products right along things sold by the
marketplace itself.
Speaker 1 (20:42):
But not all of these.
Speaker 4 (20:43):
Sellers have been vetted by the marketplace, and that's where
things start going south. Let's say you're shopping for a
popular cosmetic and you find it at a great discount.
Listing looks legitimate, but when you get the product, something
just doesn't seem right. Maybe the packaging is different, the
ingredients aren't listed correctly, maybe the quality just doesn't seem
(21:05):
to be there. These are often counterfeit cosmetics, and they're
of course designed to mimic the real thing, but the
fact is you don't know what's in it.
Speaker 1 (21:15):
It could have.
Speaker 4 (21:15):
Ingredients which leave you with irritation or maybe even an
allergic reaction. Now makeup is just an example. The same
caution should be applied if you are buying anything from
the marketplace. Scammers are counting on you to buy products
because you trust the marketplace platform and that you're not
going to check out who's really selling the product. You
(21:37):
need to protect yourself by knowing who's selling the product
is at the marketplace or an outside vendor. If it's
a vendor, check their reviews before you click to purchase,
and finally, look for a return policy that's backed by
the marketplace, not just the vendor. So as you buy
do your holiday shopping. Keep this in mind now as
(21:58):
you continue doing your holiday shopping. Pet scams. Let's talk
about pet scams because holidays are a prime time for
these types of scams. If you're thinking about surprising your
kids or your grandkids with a puppy for Christmas, best.
Speaker 2 (22:12):
Idea ever, by the way, Mom and Dad are gonna
love that.
Speaker 4 (22:16):
Oh yeah, well it's a surprise.
Speaker 1 (22:18):
Yay.
Speaker 4 (22:18):
Well you sound so happy. Okay. So you're scrolling through Facebook,
Marketplace Again, or Craig's List, or you'll click on an
ad that pops up on a random website. You see
this adorable little puppy for sale. It's a popular breed,
maybe it's even an exotic breed, and the price is
of course too good to be true. Here's the catch.
(22:42):
Fake pet ads can show up anywhere online and almost
eighty percent of those ads are fake.
Speaker 1 (22:50):
Wow.
Speaker 4 (22:51):
Scammers are great at copying pictures of pets that legitimate
beat breeders are posting on their own websites. And the
scammers can even fake video calls now too, so that
the puppy you see running around in the behind the
video is an AI generated puppy. Now, once you message
(23:11):
the seller, they're going to try to pressure you to
pay quickly. Typical scam tactic, usually through cryptocurrency or gift cards.
And the biggest red flag they won't let you come
to them to see the puppy.
Speaker 1 (23:24):
And they're movers.
Speaker 2 (23:25):
Their movers are going to bring it to me, right.
This is usually how this goes.
Speaker 3 (23:28):
Movers will deliver the puppies.
Speaker 4 (23:29):
Oh, you got it, you don't need me here. They're
going to send you the if that's another version of
the scam, but now you got ahead of me. Here
they're going to claim that they are in a hurry
to rehome the dog, or there's a long list of
interested buyers, you've got to buy now, or they're going
to move on to the next customer. Some victims have
driven hours to pick up their puppy, and of course
(23:51):
when they get to this bogus address, there's nothing there.
In the version of the scam that you just talked about,
they're going to offer to send you the pet, and
of course they're going to charge extra for that, then
come back at you for more money for things like
vaccinations or storage bees or an extra box of doggie
bones in the crate.
Speaker 1 (24:11):
With a pup.
Speaker 4 (24:13):
Even if you've paid all that money, you're still not
going to get your pet. Bottom line, don't buy a
pet online unless you can actually see it in person. First,
you want to make sure the animal is real and
it's a good fit for your family. And if you're
thinking of gifting a pet this season, first of all,
you might want to rethink that whole concept. But go local.
(24:36):
Visit local shelters or local breeders in person, and check
them out on BBB dot org.
Speaker 1 (24:44):
Hey, Josile, I want to make sure we save enough
time here, because, let's face it, we are right in
the middle of Medicare open enrollment season and people are
literally out there shopping for medical plans right now. You've
got some great watch outs as far as Medicare open
enrollment scans. Make sure we cover that.
Speaker 4 (25:02):
Okay, it's easy to fall for these scams because they're
going to call you. They're going to spoof your caller
ID so that it looks like Medicare is really calling you.
They'll tell you you need a new Medicare card because
it's open enrollment season and you just can't move from
one plan to the other without a new card. You
do not need a new card to participate in open enrollment.
(25:24):
They use that as a ploy, so you're going to
give them your personal information like your bank account, your
credit card, or your Medicare ID. Scammers count on this
sense of urgency during these six weeks or so of
open enrollment and the confusion about open enrollment and all
of the plans to trick you into giving up your
(25:46):
sensitive information. Now, to protect yourself, you need to ignore
these unexpected calls asking for Medicare details. I guarantee you
everyone you get is going to be an attempt to
scam you out of money or personal information. Other Medicare
related scams. They might call you and offer you a
(26:06):
free gift to get you enrolled in a similar program.
Those are air quotes around that. Again, they're trying to
get your personal information. Or they'll convince you to buy
some medical equipment that Medicare will pay for. Not only
will you not get this product, but now they have
your Medicare ID and they will use that to defraud
Medicare down the road. So a lot of things to
(26:29):
watch out for there, but nothing is free, all.
Speaker 1 (26:33):
Right, Joe Seal. In the minute or so we've got left,
I want to go back to that marketplace scam that
you talked about at the outset of the segment. You
talked about, you know, scams for I think you were
talking about makeup for women. I want to make sure
we get something out of this segment. Personally, Brian likes
to take a lot of bubble baths, especially during the holidays. Okay,
(26:54):
are there any scams out there relating to let's say,
shower gel or bubble baths, so things that Brian should
be looking out for to make sure he does not
purchase the wrong product that might cause allergies or infect
his skin.
Speaker 2 (27:10):
I'm a jasmine bath bomb kind of guy, if that helps.
Speaker 4 (27:14):
If you're looking for the upper end stuff and you
find it for five dollars, it's probably not the good
stuff that you're looking for and you might end up
with a little rash. So yes, steer clear of that.
Speaker 1 (27:27):
Be right back.
Speaker 3 (27:28):
I got to go empty my bathroom closet or something.
Speaker 1 (27:32):
All right, Hey, Joe Seal. As always, you've covered a
lot of great round with great stuff with us tonight,
and we were also able to have a little funnel
with you along the way. Really appreciate your time tonight.
Hope you have a wonderful Thanksgiving. Thanks again for joining
us tonight. You're listening to Simply Money, presented by all
Worth Financial on fifty five KRC, the talk station. You're
(27:59):
listening to some by all Worth Financials. I'm seller along
with Brian James. Do you have a financial question you'd
like for us to answer? There is a red button
you can click while you're listening to the show. If
you're listening on the iHeart app, simply record your question
and it will come straight to us. All right, Brian,
Here comes Elliott in Madeira and he says, We've got
(28:21):
a big taxable account and I'm realizing capital gains interact
with Medicare premium said tax credits. How do you invest
without triggering hidden tax landmines? Great question.
Speaker 2 (28:32):
Well, this goes all the way back to you know,
the different flavors of income you might have, and then
the real enemy here is this one is called modified
adjusted gross income. Remember when it was just adjusted gross income?
When O there's modified adjusted gross income. Actually been around
for a long time.
Speaker 1 (28:46):
Brian, not to interrupt, but this this is just another
exhibit A and and this is what we talked about
with with my clients that came in this year. Every
year we talk about simplifying the tax code, and should
you know we're gonna do our tax on sceniars? They
just make it more and more complicated every year. But
that's a little rant. Please answer Elliott's.
Speaker 2 (29:06):
Question, Bob is bothered today. Modified adjuster grows. Income consists
of realized capital gains, stuff you sold to a game, dividends,
interest roth conversions, required minimum distributions, sale of a property,
and even mutual fund distributions that hit this time of
year that you maybe didn't ask for. All that stuff
couples together and it affects your Medicare premiums.
Speaker 3 (29:27):
That's called IRMA.
Speaker 2 (29:28):
IRMA uses income from two years ago, So whatever you're
paying in twenty twenty five is triggered off what you
did in twenty three, and then crossing a threshold by
just a dollar can add up to eight hundred or
three thousand dollars per year per person. That calculation is
not marginable. You're either over it, or you're above it,
or you're below it. So here's what you can do.
I try to avoid these accidental gains. If you've got
mutual funds, try to find a way to replace them
(29:49):
with ETFs that itself can be a taxable transaction, but
it can be a long term benefit because ETFs do
not generate the capital gains that mutual funds do, even
though they follow the intexes. Harvest your gains intentional. Know
what you're going to sell and look for things to
offset future gains, and be careful. You're gonna have to
prioritize too. You're gonna have to decide is it more
important to keep my IRMA low or is it more
(30:09):
important to go ahead and convert my IRA to reduce
future require minimum distributions. Personally, IRMA resets every couple of years. Anyway,
I am open. I'm very open to the idea that,
you know what, we might make our medicare premiums a
little higher and that won't be fun for a year,
but two years after that it's going to be back
to normal, after we're done with all of our wrath conversions.
So there isn't a bright shining clear everybody should do
(30:30):
exactly this and then never think about it again. It's
based on your philosophy. What's most important to you? Where
do you want your tax savings? Do you want cheaper
medicare premiums, for example, or do you want to do
your wroth conversions to benefit your family? Lots to think about, Elliott,
and it's good that you're on the track of kind
of building that list of all those different things that interact.
Speaker 3 (30:48):
Michael and mount lookout.
Speaker 2 (30:50):
He says, we've got it a traditional sixty forty portfolio.
But he's really starting to question, you know, that's been
that way for a very long time.
Speaker 3 (30:57):
Does that even make sense anymore?
Speaker 2 (30:58):
And how do you know when it's time to just
kind of start over and rebuild that whole framework.
Speaker 1 (31:03):
Well, uh, before we blow the whole thing up, Michael,
I mean I I you know, I I will say,
you know, when people say the traditional sixty forty portfolio,
I know a lot of financial magazines and media folks say, hey,
here's how most people invest, therefore that's how everybody should
invest in allocy. So I would say, first of all,
(31:23):
you know, sit down, update your financial plan or build
a financial plan if you don't already have one, and
just be realistic. Talk to a good fiduciary financial advisor
that knows kind of where interest rates are and what
to maybe expect realistically here over the next ten to
twenty years, uh not the last twenty to thirty years.
(31:43):
And here's what I mean by that. You know, we
enjoyed pretty good total returns from bonds between let's say
the nineteen eighties to the early two thousands, because overall
interest rates were trending down and that tends to work
well for bonds. You know, bond prices go up when
interest rates go down. That game's kind of over now.
(32:05):
I mean, interest rates are pretty darn low. You know,
they ticked up, they came back down. And what I'm
saying here is that forty percent in bonds might not
deliver the same total return over the next twenty years
that it's then it's done over the last thirty. So
build a financial plan, be risk realistic about what these
asset classes are likely deliver going forward, and then that'll
(32:28):
answer your question. Don't just take a one size fits
all approach and you know, throw the whole thing out.
Sit down and be intentional about it on a risk
and reward basis, and see which asset allocation works best
for you. And also it might be time to add
maybe some alternative investments to your portfolio. That's where you
(32:48):
can maybe get a little bit more return and still
have that risk control that you'll want. Hope that helps.
Eric and Edgewood says, we own both growth and value funds,
but I don't understand and what actually makes a company
a quote unquote value fund anymore? Is that still a
meaningful distinction for long term investors?
Speaker 2 (33:08):
Brian, Yeah, that's a common question, and it just comes
from what we what we have evolved to. So so, traditionally,
value stocks were those companies that looked really cheap on paper, right.
You looked at their assets, you looked at what the
what the forecast of sales and revenues was going to
be in a relatively low price to earnings ratio, steady.
Speaker 3 (33:24):
Cash flow, all that kind of stuff.
Speaker 2 (33:26):
These are banks, utilities, old school manufacturers. Growth stocks, on
the other hand, these were the innovators. These are the
ones inventing new things and finding new markets to sell
them in. They reinvested every spare dollar to go do
more of that. It's not as clear anymore so that
that distinction has gotten a little blurry. Tech companies now
throw off massive cash or they just plane sit on it.
(33:46):
You know, there's a lot of big technology companies that
have more cash than some companies or some countries have
in their entire economies. These value companies often traded higher
multiples than their so called growth names, and index providers
also keep changing the depth finitions of what is growth
and what is valued. So does this distinction still kind
of matter if your long term investor. Yeah, but you
have to look a little harder to find it. And
(34:07):
it's not because the labels are perfect. It's owning both
of them. Is not about predicting which style wins next.
It's about not having to make sure you've got both
of them, because now they're intermingling with each other a
lot more than they used to. The definitions are kind
of messy, but the behaviors are still different enough that
you can see the difference. And we've seen a microcosm
in the last five years of when it's a good
time to own growth stocks and when it's a good
(34:29):
time to own value stocks. The challenge is that we
cannot predict when those times are going to shift. So
make sure you've got.
Speaker 1 (34:35):
Both of them. Yeah. And another thing to throw in
on that, just be watchful on the composition of these funds.
What I mean is style drifts. Sometimes these value or
growth funds will venture into the other kind of stock
to juice the return, and that's what we call style drifts.
So it's another thing to watch. Coming up next, what
could be the most underrated investment strategy of them all.
(34:58):
You're listening to Simply Money presented by all Worth Financial
on fifty five KRC the talk station. You're listening to
Simply Money presented by all Worth Financial on Bob Sponsller
along with Brian James. Well, Youngsters like you, Brian live
in a world where if our Amazon package takes more
(35:20):
than two days to get delivered, we're sitting there on
a tracking app refreshing it every hour. Where's my package?
Where's my package? We can't even wait for the microwave
to finish. But when it comes to investing, that kind
of impatience can cost people real money. But patience is
one of the hardest things to practice when it comes
(35:42):
to investing, right, Brian.
Speaker 2 (35:44):
Well, first off, Bob, I want to I want my
knees to acknowledge that you called me a youngster and
they need to quit feeling this way in the mornings anyway.
Uh yeah, So the most should I should have said hipster?
The hips aren't doing so well either. Well, the most
successful investors out there practice. Let's be clear, though, patience
does not mean just passive ignoring and just taking whatever
(36:05):
comes to you. It's actually an active mindset because you
have to force yourself to be patient. This means you
made a plan and you've committed to it. You're not
reacting to every headline out there. That's the bane of
every financial plan is if I want to change it
every time there's a scary headline, well then I'm going
to be changing you know, once a month, once a week,
sometimes twice before lunch.
Speaker 3 (36:23):
That's the key.
Speaker 1 (36:24):
Though.
Speaker 2 (36:24):
Patience doesn't mean ignoring your money. It means trust your strategy.
You built a plan years ago and it should have
been stress tested at the time, which means whatever stress
is occurring now, you've probably already accounted for. If you
haven't done this, then you need to. It's confidence that
the long term plan matters more than what's going on
here in the short term.
Speaker 1 (36:42):
Brian, that's great advice. Do I need to deploy the
same level of patience as a Cincinnati Bengals fan?
Speaker 2 (36:49):
Now that requires insanity and a complete ignoring of reality.
Speaker 3 (36:53):
That's a very very different situation.
Speaker 1 (36:56):
All right, Let's think of patience then as getting back
to money, which is what this shows about. Think of
patience as emotional discipline. Every time the market dips and
you feel that urge to do something, you know, cash
out your portfolio or buy too much of tech stocks,
you know, on a dip, that is a test, and
passing that test, staying put is what can tend to
(37:19):
pay off, you know, over time. And that's one of
the key benefits of having a good fiduciary advisory team
making the decisions. You know, I I'll speak for our
own Andy Stout here at all Worth Financial. One of
the one of the key things that I admire the
most about Andy is his ability to remain non emotional
(37:39):
at all times. And I know there's other folks like
that that manage money, you know, the same way. And
that's the kind of person you want with your hands
at the wheels. Someone who's not just going to react
emotionally to these short term blips or news headlines and
keep you on track with a good discipline, data driven strategy. Yeah.
Speaker 2 (38:01):
Absolutely, And this is a this is a great time
to be thinking about these things. Make sure you're on
top of what your plan is right. Think about like
tending a garden and don't dig up the don't pull
everything up and look at the roots may give it
time to grow.
Speaker 1 (38:13):
Here's the all Worth advice. Patience is impassive. It's a mindset.
Commit to the plan, ignore the noise and let time
do the heavy lifting. Thanks for listening tonight. Tune in
tomorrow and we'll talk about the biggest money mistakes that
are still happening in twenty twenty five. You've been listening
to Simply Money, presented by all Worth Financial on fifty
five KRC, the talk station
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