Nuances of HSAs, managing pensions and Social Security, and tax planning for high-income earners.
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Would you like an opinion on a financial matter you're dealing with, whether it's about retirement investments, taxes or four? One case Scott hanson and patt mclin would d like to help you by answering your call to join all words money matters call now at eight three three ninety nine wars that's eight three three ninety nine W O R T H welcome .

to all words money matters, scot hands and cling. Thanks for being. That's right myself in my cohoes, where both financial advisers and we spend a few days with people like yourself some weekdays and we broadcast on the weekends the a financial advisers on the end, we cover all things financial. We've got a good program today is typical some colors that we're looking forward .

to with talk about some year and planning, let's say, a little bit about H I. savings.

And then I tell you about, I thought mine was that i'm talking about, I thought that was drained out. No.

i'm to start. Yeah, you didn't now.

So I get up right.

Let's explain what I held savings account.

Let's start there. Health savings account. I look at IT like it's another ira that right?

So health savings account.

if you have a high deductable plan, health insurance plan there, your employer, which most employers is now an option and depending on your health situation, may or may not make sense. You for a lot of people, that makes sense because the concept with the hydeman ctia les is you're going to do you have more control? Yes, you can mean I needed sometimes of the hydrants ble plans. They might covering your physical or something like that. But you can you can put in several thousand dollars a year in the contributions.

It's the exact opposite of a hmo health maintenance .

organization. okay. And so I participated in an h sa.

Since they first came out, whatever, every year, twenty years ago.

Maybe it's not quite, but whenever a long time, a long time, and I used to be just a couple of thousand you could put in and now it's like, I don't know, eight and nine thousand box, like it's a combination between the your employer contributes and what you contribute and you get a tax deduction for what what you contribute. IT grows tax afford if it's used for medical expenses, it's tax will withdrawls your tax free.

And so that's very similar to roth ira.

correct? right? It's right. I know and I are right. That's Better to change the product. You get a text action in for IT and you .

don't have to you're not required to spend IT.

That's correct.

You can pay for your deductibles out of your pocket and allow that to grow.

So how i've done IT over the years, I paid all of my medical expenses out of pocket and you can you can just simply hold on all your receipts if you paid over the years, and sometime later in life, take a one time lumpsum. And this, this is all the reivers me for all these bills that enable these dollars to continue to grow.

And you can invest them like you would a regular I R A or any other investment.

exactly right? So in the way that typically works is you'll have like a bank account. You can get a debit card with IT if you want.

And I always think that's your best. Just let IT grow. So I boys let mine grow.

and I have for the last six, seven years, my wife was not on board when I originally proposed the idea, he is like, why would I do that? But he took a couple years. And then you.

why IT .

makes some sense. yeah.

So we invested. So i've had my account from many years and it's with a the way to set up there is like a savings account and in an investment account, two separate accounts. But to one thing right and I get up in the morning and I seen email that they um attempted to process my electronic funds transfer into my account. But there is something went wrong or something .

on those lines from the employer .

or worth no from the account. Okay, the h sa. Company is said, we tried, we tried to your request. We struggle with your request to transfer money out of your account to this.

Oh, so like you afraid someone hacked you.

someone did okay, tempted. So I go, I go online and it's i'm trying to text but first i'm listening. I'm like how much is in my account? Like big three thousand dollars .

so you thought, oh.

smokes exactly many times more than three thousand in the right and like, oh, my goodness. And then I could hear out about draws all these ahead of anyway. So I finally talked to somebody and share of someone tried attempted to do withdraw on IT.

Fortunately, the the company had stopped. But you know like most people, you can get lazy with your passwords. Yes, I certainly am on a lot of stuff like there's a yeah combination of sorts .

that used for nett.

If they got hacked to, and I head of you ever a mess. But like my financial accounts now, I have very complicated passwords. I know they have two thousand, two factors of, and this that they'll send to the texture.

great. yeah. But this, I could have this own persons, that was my own personal experience.

is that the first time someone start to hack one year accounts.

yeah like that, they had submitted a withdraw request, and the companies have a rated processes. And they said, fishy, fishy. Unfortunately, when I call the artists t IT IT artic went to some fraud detection department, whatever.

it's amazing. And I don't know .

if they got my passwords somewhere.

Know where do you keep you? You keep IT on your phone. Don't yet.

Just like in the note section, I would never do something like that.

You don't really .

yeah .

i've got .

a couple.

Yeah hopefully not important ones.

Um not my money. Yes yeah, not my money. One, I do have like my credit card, but I know this, my credit at passwords. Actually, you can probably find this.

What are you going to do if you fragment them on the hook for fifty box? Credit is company, right? Have you ever had, you know, someone actually use a credit?

And yeah have us all the time can send the the call to here if you you know are you in uh scheme gan, uh, at a home deepo trying to buy a power tool yeah.

because I typically go buy power tool. Suga, yes anyway so what to takes .

calls uh yeah what takes .

some calls and then we're got um we're talk with viki bag as well but let's takes some course. We're talk with George and coloration George, with all of its money matters.

Hi.

how you do I, George?

Thanks for taking my call.

Yes, sir.

So my question is that I am a Younger wife was about twenty two years after me and I just want to to have my plane for her after i'm born. Kind of make sense. good. I was learned some for you guys.

So how old are you, George?

Sixty three. Okay, and seize forty one, turn sixty during this month. Um anyways uh so I give you some information. I I get about one hundred and twenty four thousand year and pensions sixty percent of that is text um I could start taking so security now which I think is about middle over two thousand and eight twelve, seven and thirty six hundred um my wife SHE can after i'm gone SHE can collect up to seven two thousand and looks like in guaranteed pensions and then when he turned sixty to sixty seven looks. Like .

eighteen from the pension .

survivor benefits a commingle .

with so .

security benefit IT into a four retirement age. okay.

Well there seven eighteen thousand is survivor benefit plan and and then another program during the va. So um there is that in the in addition, when he gets the sixty, you can start collecting so security .

dependent SHE is this a state pension .

safety .

worker got federal military retirement in all of the well the S B P. Part and then the V A. If you die from some you acquired during the military or you have a hand of rating, then your false gets um an additional two thousand a year IT looks like. But I mean a .

lot were you were you married when you took the pension？

I was married. No, yes, yes, I was. So you were married time like eighteen years.

okay, is to your wife yeah, forty one. You were married when you took the pension, right? Okay, okay, perfect.

thanks. I was just wondering if we should ask for a reset. We can't. Okay.

keep going on. okay. And so, you know, I ve bought one thousand and life insurance can get anymore. They won't tell me anything else. Um I have about we have about two thousand and in I R S, sixty thousand for my wife, hundred twenty thousand for me which kind of plan on just leaving for her twenty years down the road because we don't really need money now we have many investors out about converting that tall slowly.

Um we have eighty ages of next agricultural recreation land and the value that is hard to predict but you know could be a lot or could be not. And we have a home in a foreign country. So and and where are .

you living now?

Or and do .

you own a home there? Yeah.

is that state for .

say that again.

that's not paid for the light dumplin cells.

okay. Tell us about the primary residence.

It's a it's a home in colorado. It's a worth about last night they say it's worth about seven hundred thousand, about four hundred and forty thousand on IT.

If you were to pass away, would your wife keep that?

I think so. Yeah, I mean, he, he would get that nearly money. And then he would. I mean, we ve got a great instruction. We got IT. But also, he added, he could you know use life insurance until um SHE saw you know the one and he needed to to pay IT off how much work .

he didn't know.

I think it's about .

four hundred thousand in the seven hundred thousand and based on you know how you split up and how you sell IT and you know very variable. But you get hit by a bus today .

or like pat likes to say, you get hit by an amazon van because there's much more prevalent .

changes if you hitting getting hit by a bus.

that might be unfair. Red, the delivery van because they're everywhere. Now that for whatever reason, we had four different amazon packages delivered every day, four different times. I don't know there are four different times, but I like no one, no order one anyway is that you have not .

of a very like this .

is going to a control .

but you didn't say anything. They do no but it's .

dangers were broken on the streets because all the other anyway but that stupid sided story and something happens you today. Your wife's going to be fine because of the survivor pension she's got. It's good size pension in addition to what you'd say stated between the iris. The life insurance get that I mean, the mortgage could be paid off if that was the choice at some point time or there's quite a bit equity in the house and .

there's equity in that land. So in that ignores you said your own property overseas as well, correct?

Yeah it's probably worth .

fifty thousand OK. So think so. One is like if something that happened today, yes, she'll be fine financially. If you won't talk to financial advice, that said, look, you're going to be fine financially. The second thing is from a realist standpoint, there's not a lot of other planning we can do unless you said I want to have a lesser lifestyle today to ensure that my wife is Better off when i'm gone .

other other that there's nice he's fine yeah and perfectly fine.

I mean, yeah, yeah, more than fine. I think you're good. I would.

I do have children from this marriage.

yeah. We got two teenagers once getting shed to go to college pretty quick. And the other one will be, I go to college to once a senior high school. The others is soft.

And you, are you working now?

Now, I have worked since twenty, twenty three.

嗯， how is that mean being home with those two teenagers.

not a Normal retirement?

And though love, they're gone, there are teenagers. And then we moved to colorado. And to get around .

how you collect to such curdie right no.

i'm dating.

Yeah you you want to start right now .

your kids can be because your .

kids you .

get IT for the benefit of the kids my day .

of getting yeah what over .

and sixty collecting, sixty two collecting Better. If you are collecting society benefits and you defended children, they get benefits.

Yes.

yes, yes. 手机 关机 空。

You wanted started tomorrow .

well and so back .

do that I don't think .

theyll back pay IT, but you started tomorrow IT doesn't matter as long as the render age. Jt.

how how do they?

Once fifteen, he turned fifteen, seventeen there.

Traditional benefit, if they .

go to college to, you know this hang up this phone, getting your car drive down to the social security administration apply for today.

let's, and they almost wanted put me in jail. Well.

that's a different story altogether.

I don't know .

to call another radio show to discuss that, but no, no, no, no, I just .

love 是什么 that you only get so security for your kids if you Lucy dies like this。

Now if if your own retirement benefits and you have minor children, minor dependence like we've had, we've we've encouraged people that Green. Yes, because you kind of rare being in your sixties with teenagers, but there are people that are taking care their grandkids and we will help. We've show them the numbers, like if you adopt them and now the children, not just someone a granted, then you can start receiving security benefits. But as long as they are on receiving such security, that's right.

You want those security right now yeah right now yeah .

now but .

that's why you call .

preciate the got George. And by the way, if you're listening and thinking and um why are these from a texted player standpoint, I certainly don't like the concept, but the reality is we all navigate whatever congress, the game they put, they set up force. We got to play my monopoly with my kids. These are the rules, whether we like the rules, not the rules we all these are the rules. We swap houses to get a hotel, all that kind of garbage.

Congress sets up the rules. It's our opportunity. And because when a year swap in a hotel or a .

house home with only .

explained your kids have the ten thirty one exchange works.

Actually I take the house when they're .

not looking right. I tell you what's got I group in a family of five kids, four boys. There was never an an open game that did end up in a few.

never. We played a first five. I mean, not a fight.

not an argument. The crap out of my brother. why?

Because you lend a park place again. You just started when you kind of face a little bit you in the next thing, you know, the board of the air.

this line, where are you in the relation to the .

other boys who was third?

right? The middle man, yeah.

And the dog mallow the kick down the street hall we smokes.

Really meet. All right, that's good.

We're going to move on. Okay, little therapy here for me.

I think I leak a little more than that. Stuck now with alesha in colorado. Hi lesha, with always money matters.

Hi, thank you and good morning.

Good morning.

So um i'm just to give you a background. I'm sixty two year old federal employee. I'll be retiring in four months.

Um I have I think, a lot of things in order ers. I have a trust set up. I have lifetime long term care and I have lifetime medical through the final government.

Um I have one point four million in my PSP. Um my question is and I get rental income that basically coverage covers my marriages and my investment property brings and enough money to cover expenses in mortgages. I refine that to um take out money out of my investment property for cost runs for remodel of my primary home. Um my money um i'm planning to leave to family members and um a significant amount to charity. Uh my question is should I start taking well I was told by someone um about social security optimization OK and they instructed that I start taking so security at age sixty two and then turn IT off at sixty seven and take money out of my T S P. If necessary then they said I should restart to securities at age seventy to quote and quote maximize those security and I really don't understand how that's going to work because IT seems like if I take so security for those years and started early, um it's still going to reduce the dollar amount in fit that I received at eight seventy. But if I did take the security and also I wasn't take IT until sixty three at this point, if I did take those security at this point, what I do is use that money to pay off the mortgage on my investment property early, which is at a seven percent interest.

O okay, well.

let let yeah.

let's let's step back for a second here. What is the value of your primary residence?

I say at this point it's a million.

and what do you all want to?

I owe three hundred, sixty, three hundred and seven.

What's interested is .

two point eight hundred and five.

okay? And you have one investment property or multiple investment properties.

Well, I rent out my house set up as a duplex, so I out my basement and so I bring in, let's see that brings in two thousand seven k per year.

okay and then you're investment .

property, okay IT. Um the mortality is one thousand seven hundred and thirty six per month, including property taxes and insurance and IT brings in twenty seven, nine hundred and sixty. I think what that's okay.

That's close enough. That's okay. So and what's the value of the property?

IT works, I say between five hundred and five fifty.

And what did you pay for? IT.

I paid seventy nine thousand.

okay. And what do you I want IT now I O .

one hundred and fifty seven thousand, one hundred and twenty five dollars but i've been paying extra principle uh since I well even when I had the he oc because they had gone at ten percent and with different .

and it's not a he lock now it's fixed rate .

no no now IT is a thirty .

year thirty year .

fix but I I brought that down by paying extra. I'm about ten years ahead okay.

And what money do you have in the bank?

Um I have forty three thousand in emergency phone and are you one hundred percent .

confident you're not onna work after you retire?

Um x for things that I lose money on, i'm kind of deal and antique and i've made money one year OK is .

that you want to spend .

your time though?

No, but I want to spend my time traveling in volunteer.

And how much will your monthly pension be?

Um it's going to be it's weird because i've had estimates that seems to be it's gonna between forty thousand and forty five thousand.

How soon at your job? Now right .

now I just got a bump in page. So I earned one hundred and forty five thousand, but I started at around thirty thousand.

What was your pay last year before the bump? I'm try to get .

to understand what, even living on one hundred forty one.

So this is interesting. I could. I'm run in this thing through my head. So the first thing I would look .

at is and how many kids you have?

Oh, no, you're not married.

No, i'm not married. no. Basically my money will go to my nephew. And but a lot of that most of vital is going go to charity. I'll see that .

he taking care. Obviously, when you do that, you named the benefit of the iron um or the third .

service remainder trust with that rental house. I'm sorry i'm talking to pat here. I'm thinking about huh? I mean, because you've got one concept is you take that rental house and you you structured in a charitable vehicle where transfers to the charity, the charity cells that avoids the capital gain, you receive an income.

Everything is in the truth.

Understand that. Now we're talking about some completely different. It's a chair to be, remain or trust and .

it's it's a tax and there's .

different flavors. And in some chair the promise got its four hundred grand. Uh, would would be this. And what do you say you paid for IT nine?

Seventy.

seventy nine? Yeah.

I wouldn't. The cost of administrating charitable remainder trust over the next few years relative to the tax savings.

I don't know independent how deeps SHE is with some more non profit. He is they could structure IT all, take care of all the cost is no cost at on SHE suddenly get to check every month and didn't .

have to think about IT.

Now why would I need to check a remark? Well.

because of how this shirt of remaindered trust actually structured?

okay. I'm not know you with, I mean, you have four .

hundred thousand doors of equity there you could receive of an income strength the for the rest of your life, it's going to be greater than what you have now. You know to think about IT, that's right because. You're only making and I did your point is it's four hundred thousand, four million and often times these are strategy used with larger states.

But given your situation got a nice pension, you're going to have such security. You're got a million on a hat box in your four one k tsp. I would think that I would so you you could ask, I won't takes a security right away away.

You've got some other kind of planning. I think you've got some other strategy consider. I don't like the seven percent mortgage on the rental.

I hate IT. Yes, I absolutely hate that. I would look at actually taking money out of the thrift savings plan and using that money in the bank immediately to pay that down. And and you say why I want the money in the bank for emergencies, you can get at the three savings plan and as fast as you get the money to back. So yeah, it's just a .

taxable that.

So the seven percent is what bothers me. And I would look at, I would actually, god, I would say, why would you start those security? Why would you drain out some of the trust savings plan in one tax? You insert source security in the next in order to get rid of this mood? Is the seven percent that crushes me?

Is that IT easy?

Is that easy property? Sixty thousand at the beginning of next year and using a significant amount of that to also thinking of paying down the mortgage. Since I wouldn't need at .

all that money, I can, I would explore the charitable remainder trust scot mention, I never even cross my mind, but you can test to take that rental.

So explain what a character .

remained to trust is and how they act. And there's different flavors of them. So lots different.

You take a typically it's A A property that is or asked that he has a lot of gain in IT that someone would like to dispose of. They don't want to pay the game number one. Number two, they are highly charged ly motivated IT doesn't work if you're .

not highly charity, but and IT probably is a like because you're yield on this for the amount of equity actually in this house.

it's tiny. Prepare to is not a lot left, two percent, there's not a lot left. And so it's transfer to a charity.

You receive a tax reduction, not of the full value because it's character. The charity actually doesn't get the proceed until either your death or at a period of time. You can you could structure for eight years, and the further social security just draw things out, different planning ideas out.

But but with that, the charity of them sells the property. They pay no capital gains because they're on profit. And in exchange, they give you an income stream, a monthly income stream, either for the remained of your life, child remained your trust, or for a period of time.

There's different ways to structure things. And so there's a lot of planning techniques. Your social security is one of them. And every once while you hear talk about like the benefit of doing a really a true financial plan with a true financial advisor running through all these different scenario, I think it's some food to consider.

And by the way, many times a financial advisor will recommend life insurance to actually replace you do not need that. That's why IT actually makes the most sense, is because you're going to leave this to charity anyway. And what you're worried about as cash flow and tax implications. I think the charter will remain.

Your single woman, relatively Young and retirement, get a great pension. You're going to have such security as well. You got money saved in your retirement, only thing we don't like in your portfolio. This rumble with this hi, hi, you got a lot of equity. They're not getting any income and now is the time in your life for income.

So do you have to have a night if to set up a charity ball remainder trust? Do you have to pick this specific current?

yes. Yes.

there's .

present comes .

to doorn what a donor is fun. They don't advise fun. You're not going to get any income. You IT all. So I don't advise fun what IT makes sense here.

If you advise people on transfering property, don't advise funds that we're great, but you're given we're .

not unique income. Yeah .

okay, not stand, give away. This property today isn't just .

saying is there a Better and is a way to .

a way to get rid the mortgage and have more income off the four hundred grand of equity have in this house.

And if you didn't do that, IT may make sense to sell the property.

There's there's a lot of different planning things to IT .

may make sense to take money out of the three of savings plan to pay IT down.

But even then, the even if you change, even if you did exchange to a lesser property, the boots taxable, you have a some taxi implications, but not on the entire thing there. There's some ways there's a lot different planning techniques that I think so security, the last the least of that you're playing up.

Yes, correct. So I I would explore the C R. T. Thank you, gott.

And they're not use that comm. I think they're not .

given what you you .

I don't know you that we don't know you that but given what you said thus far, IT could be a pretty interesting solution for you. So anyway, really glad you called and hope you be engaged with and engage with the good financial decision. Run through some scenario with him. We want to have we just thought with the elections of what not we would have guessed on our program, Victoria bonner and Victoria is our director client .

experience.

director plan experience and she's also he start to financial and she's more .

than our director, clint. He interacts with the advisers and the clients in order to make the interface as enjoyable and as efficient as possible .

yeah and Frankly, and before we have run, SHE joined us through emerged with one of reforms, which SHE was a CEO and their chief investment officer.

And a practice .

kind of first assignment as all worth is connecting, making sure we get awesome client service, awesome adviser experience and the whole can that connectivity between them. That's kind of focus. And because she's highly political, smart, good communicator, she's been perfect for the job at that. And so Victoria, thank you for taking some time to join us.

That's great to be back.

And we're going to talk we were on because.

well, this is that I said before we dugger into this guy, I said this, we're going to talk a little bit about what's going on in the trump start next. And I said, this is just, look, I go and read the reviews from our show where people write them. Have you ever, you know, read the reviews of, if we mentioned democrat or republican, the all kinds of negative a stuff comes out in these reviews, like all I can see through you.

We know whose side dies you on this kind of garbage. Go ahead, right to you. I know and say, I know, okay.

because I do this with all worth as we have had the company over the years, IT was always we are. And where a political monday is not red, monday is not blue, monkey Green, that's right. And that's what our political focus has been anytime we're doing with clients is not but but IT end.

And the reality is i've got we've got clients. We all have our own values, that's right. And I have client that their values don't quite line up of mine and that's server. But I also highly value service, serving them very well. And I have officially obligation to do what's in their best interest.

right? Their best. But look, tax law drives a lot of investment decisions and most certainly financial planning because you have to view financial planning through the of tax. Of course, you have to you you don't have any choice. So we .

we talked about h inning .

that benefit.

I have the same investment I could on anywhere.

That's right. So we ask Victoria to come on today to talk a little about what we can kind of anticipate from this new administration.

I can tell you exactly what the next four years just like getting okay.

Well, first of all, I think before the election was finalized, a lot of questions were around the tax cuts and jobs act to twenty seventeen, commonly known as the trump tax cuts, because they were pretty significant, and a lot of those are set to expire at the end of twenty twenty five. But now that trump is back in office, the top controls or will likely control both legislator branches, it's very possible that we will see efforts to either extend those cuts or even make them permanent. But of course, washington permanent doesn't mean forever.

This means until the active administration takes part of IT. But even if these tax cuts are extended, as you say, there is so little we can control, right? We can control inflation, we can control the stock market, but we can control to a certain extent the taxes we pay.

IT is a lever that we can pull. And this is something that you should start thinking about in your forties and fifties. Don't wait till you're sixty five and say, I want to retire now.

How do I manipulate my access? So not paying so much in taxi, you're setting yourself up for much greater success. Latter you're thinking about this and you're forty and fifties with a good furniture al planner, uh, so that you can adjust this laws and situations, uh, change. But especially if you're a high income earner, tax planning should be your top priority.

You should have a diversified tax strategy very similar to a diversified portfolio, right, which means some money is in pretext, some is in post tax. Some of and ross, you know some of that is a depressive asset, maybe. Um so what do we expect? Do we think that they'll be you know they will continue with this? Do you think there's gonna more tax cuts?

There could potentially be even more tax cuts, tax advantages. But also the flip side of this is tarifa trade disputes, right? Because we have the text is that if they get extended in large part, that will be good economically, that increases consumer spending IT will increase GDP.

But on the flip side of that, if we have terrorists trade disputes, then that is going to put a dampener on GDP. That's onna raise Prices going to raise inflation. So there are two sides of the coin here of how you manage your assets in your tax liability. It's not just about what what is happening in the tax uh picture situation, but it's also what's happening in other policies and legislation, which we have an amazing investment committee that that pays attention to all of that. Uh but you need to look at the whole picture.

Yeah, even with this, trade them. I voice been a free market guy from when I was in high school. I put my paper out essentially a free mark.

I just I believe that we all have we need some short rules that we greeted by by the rules. And then let's let the market decide. Well.

kinda, kinda that way. But I don't think that strategic assets in the U. S should beyond by foreign .

corporations, an easy one, yes, OK strategic asset. But even the whole trade about these, the trade deficits and the tariffs, I think, I think if I made IT cares about your prospect, because there's different perspectives here. And some say this is just going to make cause inflations going to raise Prices, everybody, it's going to slow the economy down. What's your take? Well.

here's my opinion, and I have read many different economist takes on this. But at the end of day, tariff s can be used as a tool to be able to negotiate trade agreements. It's similar to what happened in twenty eighteen and twenty nine.

And what's so interesting about this is, back then, this was what everybody was talking about. And I bet if I asked you what happened with trade terrace and twenty eighteen, very few people could tell me, but all anybody cared about. But what trump did is he threatens tariff s about twenty five percent on billions of dollars worth of chinese goods and many of those years to go through.

And then if you remember, china retaliated by putting terrorists s on our agricultural soybeans and then we had to subsidize farmers because they are impacted. And overall IT was a drag GDP IT was negative IT did lead to face one of our trade agreement with china, which by the way, um just objectively speaking, cove IT happened. And so that trade agreement pretty much went to the way side because everybody dealing with their own copied math.

But long story short, terrace usually are not a good idea. You want as much free trade as possible because terrorists, there's a misconception. IT is actually the buyer of the goods who are who is paying the tariff, right? So if we're charting sixty percent terrace on chinese imports, china isn't paying .

that super paying.

It's to the consumer.

right? Or it's it's pushing the Price of a particular product, whether IT comes from china or not.

Yes, exactly. So that the issue is then that, that does increase Prices and decreases company and that passes under the consumer IT increases inflation and then that increases interest rates because the fed needs to get that under control and so that it's usually a negative spiral. You want as much free trade as possible.

but I don't think he's going to I think it's going to be the same story as last time. He's gna threaten, threaten, threaten and then come to the table and negotiate.

So there's no way there's no way we can have one hundred percent tares or sixty percent time of sun. Anything that's that's the no go that .

would be said trap might have exaggerated a .

statement about something.

So let's talk about .

I know he's not known for that.

Yes, let's talk about interest strates for bit because the bond market, particularly that the day fall in the election, the stock market would skyrocket high and bomb market had a prety significant cell off on on the longer term bond. So what's what's transpired with interest strates and where what can we expect maybe over the next .

several months? That was interesting because right after trump one election, interest strates dropped. So as interest rates go down, that means bond Prices go up there, inversely related.

But that's starting to level out now because investors are processing what these potential policy changes could mean. The biggest cause concern being inflation. So if trump s tends the twenty seventeen tax cuts, that's good.

It'll increase spending. It'll boost GDP. In the short term, of course, that will rack up more of our dead.

Uh, but if this is met with higher terrorist companies could see higher production costs. They are going to pass that on the consumers. It's going to lead the more inflation.

And something that the investors need to realize is that as of now, the federal reserve is an independent part. Of this equation. So trump doesn't control interest strates.

It's the federal reserve that does. And one of their Mandates is to keep inflation under control. So if man, if inflation starts to get out of control, the levers of the fed will likely pull is to start to increase rates again. So it's important for investors to then keep those factors in mind because shorter duration bonds could help with that interest rate risk, but bond still plan important role in keeping things stable. So important that if you have a financial planner, and I hope you do that, this is something that they're keeping a pull song and paying attention .

to in your portfolio. And so basically not reach for the long, long bond. Stay a little bit shorter on the bond and you're not giving up much you, if any at all.

right now, the yg curve is pretty flat and and you're not making enough a heighten return to lock your money up into that in those longer durations.

So yeah more intermediate .

short terms .

now and with with respect to such as security and medicare are and you're not clear avoid, but we all know that eventually and it's getting closer to the point where congress is gonna to do something right. You expect any anything to come of the check White house in this area.

Well, trump has said he wants to protect these programs. But as you say, with increasing budget pressures, we might start to see some talk about raising eligibility ages or adJusting benefits. They might raise the retirement age, they might tweet the cost of living adjustment.

That's the kind of change that we would see, we see part we see in parts of europe. If we not.

that's right. And those are easy levels to pull. But any major reform is gonna take time. So the best thing to do is to plan based on what we know, but be ready to adapt if things do change, change.

And for Younger workers, personally, when I run plans for client under fifty, I just assume a twenty five percent reduction and social security benefits just to see how their plan holds up because I think that is a real list. Worst case scenario when we look at social security is IT was cut by twenty five percent. IT would .

actually be fully funded as right now. So I just cur right, medicare.

a whole other other story. I mean, that is so that is that is going to be the bigger issue and the bigger problem because that is much more underfunded than social security.

Well, it'll be interesting to see with if R, F, K, junior and with what what he actually does in there. But when we've got roughly twenty percent of our of our economy is an health care, right?

It's a big number.

IT is a massive piece of a big number.

It's a big number.

Well, thanks for taking the time to join us. Thicky.

absolutely. Thank you.

As always, thanks for being part of the team and um your wisdom is always appreciated.

You like icky .

smart story of vickey both yes, super smart. This R F K thing. I quite Frankly, Scott, this food pyramid, they need to get rid of that. They need quit subsidizing corn.

Yeah.

all those okay.

just there's lots of things that need to happen, but I can and I want talk about polis, so got a place anymore, but it's like and I think think more about that. So and it's been great being here with you. I believe next week thanksgiving is come on up hope everyone is a great thankful ving. We will be taking the week off and have a desk for you next week but if you would like to this this program.

please go ahead and and radio and .

send IT to a friend as well. So this been sky hands in a pat mclain of all money matters.

This program has been brought you by all worth financial, a registered investment advisory fund. Any ideas presented during this program are not intended to provide specific financial advice. You should consult your own financial advice, tax consulting or estate planning attorney to conduct your .

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