The election and the stock market, investment strategies for retirement, and do you have enough money to stop working?
59:56 Share

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 dancing and pat mclain would d like to help you by answering your call to join all words money matters call now at eight three, three ninety nine worth that eight three, three ninety nine W O R T H.

Looking to all with money matter .

guide handlin. Thanks for joining. Yep, and what a week financially? Yes, we are taking this thursday, november the seventh, not taping storing IT in some digital form .

that shows how long we've been doing the broken because a little Carries were like .

eight track ah so thursday, november the seventh at twelve thirty pacific time. So context something .

where were on friday? But yeah yeah, we're not going talk about the election because there's eight million show you can listen .

to you by the I do want to talk about the market, of course, the day after the of course, and why IT absolutely doesn't matter or IT makes no difference whatsoever that the market was up three and half percent over the long run of IT or even itself out. yes. So let's talk about IT now, right? So I was at the gym this morning, your thinking packet s to a jm, yes, because the bathrooms are cleaner and the tvs Better. So I was at the gym this morning and they were talking about them like the markets, the markets and I said, you know, this is exuberance um that mayor may not be well placed um IT is exuberance. That doesn't matter in the long run because what matters in the long run for stock markets got growth.

That will I my devil with you, but growth of the economy that right, and growth of profits, obviously, it's always it's it's all that placed on discounted cash flows and what company is going .

to earn in the future .

yeah in the cost of money. But IT, the markets might be signed. Clearly, we believe whether they are going to be right. And we believe that of this administration, the results of the election, that the future profits of companies are going to be Better than otherwise. But that's why they and maybe is further than that, there is no IT was a clear call that wasn't like we're .

going to be in weeks .

of which and someone going to not see and all that other stuff.

which I clearly I I thought, well, this thing could go on for months, right? You think about bush in florida and all those .

think a lot of us .

were concerned about that. But over the long run, and IT surely was a sign that hate the a group of investors, not all investors, but a group of investors felt that this was Better for corporate profits and the alternative. But over the long run, IT makes no difference.

What happened yesterday?

What happened yesterday? That's what I mean with the market. Yes, over the long run, what IT happens to business is under one administration verses another. They're certain yeah. I mean, you can tell that by if you don't think government plays a role, we live in the state california.

You can look at all the four thousand one hundred companies that have left the state california because of ts of reasons, lots of reasons, but mostly policy reasons from the government. They have left the state california. So that does tell you that how a government acts does affect how a company will actually perform or where they're most certainly locate.

Someone had said that the increase the market swing on wednesday, that was a fifteen hundred points, which is a big like this, the largest increase ever, not in a percentage point.

not percentage point.

IT really wasn't. It's the biggest percentage point crease we've had in two years. But this perspective we had some day two years ago. I have no idea what day of that was where the markets wrap the same. But as we continue to go higher with the doll, we're going to have one percent point swing is now we need four thousand, four four hundred points, yes, to get a one percent swing, yes.

You know like so what yeah .

so have in one percent swings are are very common thing as we continue. Is that be that long before we read down one hundred thousand? No, sometime in the next ten to fifteen years?

yes.

And the stocks perform has they have historically .

been about ten years and then they're to replace the whole down, put the deal. No, it's just it's where we're at. Yeah anyway.

we're we're happy to be in the studio here talking about financial stuff and answering your questions and taking your calls. One thing pad before we do that, one of the .

big question .

Marks in people's minds was the whole state planning issue.

Yes, wanted to talk about .

that because was part of the so the jobs reduction, not jobs creation act, jobs act, jobs active sort of a job reduction IT. Would no one got that even if that was the result?

Everything you got a really positive name?

Yeah but the all the tax cuts, but the the trump tax cuts that were set took expire december thirty first, twenty twenty five.

They were temporary. They were set to expire.

But considering that fifty two senators, yes, as the time right now, we don't know who's going to win the house, but it's look unlikely it's going to be high likelihood that, that's not are not going to change much.

No, I in fact, I would would expect that that that the only thing they are going to do is probably extend them and not actually make them permanent.

Make my mind they can make them permanent.

yes, because then i'd actually have to adjust the budget .

for short term. We don't have the comfort, yeah. But I think for a lot of people that we're like of my states, larger than five million is probably what IT was set to revert active. But who know is right. And I think now I wouldn't .

I won't worry about IT as much.

No, yeah, I wouldn't. I wouldn't. I wouldn't rush to do in a state planning in the next fourteen months.

And you will know in the middle next year. And we've talked about IT. We've talked about multiple times about why this is really important. We did. But three, four weeks ago, we talked about, depending upon who takes the house, the senate and the presidency, that you may want to address this. And so everything we said six or eight weeks ago about being concerned about IT, I wouldn't .

ry you about exactly. We see how things done anyway. If you want to join us, you can send us an email questions that money matters died come or give us a call eight, three, three, ninety nine worth. And were starting out with rex, rex with all words, money matters.

Yes, sir.

how you do? Good, good. But I got .

a question for, yeah, have a shelter that was install properly. Yeah.

one a cell, A H .

cell. Er, yes, sir. OK, yep. Uh.

and if I started out of one thousand dollars, uh, yeah, one thousand dollars a year, two percent gain every year, and I got twenty six years left and I have a company that wants aba me out, you recommend to right IT out or take the buyout .

and so they you have, so when did you put the thing in four years ago?

Okay.

so you have a thirty year lease on this, right? Yes, sir, and it's a triple net. So basically there is no expensive whatsoever.

no year. And you get seven thousand years that increases at two percent per year.

yes. Or what are they offering to buy IT for?

Um is IT cash out one seventy five years, one ninety and ten years at two twenty five?

I don't know what that means.

We mean ten years, ten years two aren't twenty five thousand. That be twenty two thousand five hundred a month a year.

Oh, they're going to take this payments .

and pay you over ten years.

Yes, sir. Okay, okay.

And and who's the company that's .

doing this that's in this.

the one that owns IT?

没有。 yes. One of one of the things that you're worried about.

my guess, it's a third party financial company .

that is I made because .

of the that that third party company approach you directly or they're working with the whoever the company that installed the cell tower and whose handled .

finances or a third party altogether. I reached .

out to a couple of different companies that buy out .

cell re leases, OK.

and this is what they came back with. But my sheltie people, they have a clause in their that they have a third party where they have to they have a chance to bite before they can .

have first right of refusal. correct?

Yes, sir. Yes sir.

Um what's driving what's driving you to do this?

Uh, the future because of leon.

Leon masses doing the soul.

I mea a year concerned that the payment is aren't going to be there twenty six years out.

Well, they they can pull out at any time they want to way.

But no.

no day they can tear that cell tower down any time they want and quit you and just quit in you any time. That right? H.

i'd sell. IT, you tell IT.

oh, hi.

yeah. look.

OK, look, I try to get the highest Price. Yes, so but you you're selling a stream of income in the future that my fraid is gonna go away.

IT could go away.

Yes, sir. yeah.

So you you got twenty six years on IT and they want to pay you twenty two thousand over what's a lumpsum? B, tell me what the lumps? Mb.

one one seventy is a lumpsum.

Yeah I mean, unfortunate is really born radio to crunch numbers. It's just a mathematical it's A H but my guesses this is probably at eight or nine or ten percent internal rate of return that's calculated for the investor, if not more because .

of the risk of of them to point that .

that yeah, sir um and they .

came out of .

the box at one seventy.

Yes.

i'd ask for one night OK .

and maybe split over two calendars.

That's not a bad would you .

do to ten year plan? No, you think they could they could go out of business .

and you that that look, you're doing the reason you're doing this is because you believe that there's an inherent race. But yes, sir, but if you really believe that is not only an inherent risk to you, there's an inherent rist to the buyer of whose buying that sell .

they've calculated in that, that Price someone wanted to take that bet.

right? yes. And are you are you selling an event? Are you selling that little plot land?

No, it's just the east ment, not the plot line.

And where does this ever sit on the properties in the middle? The property is the property.

uh, seventeen makers. But it's only only like a it's like a fifty.

about fifty or one hundred is is the corner the middle? It's in a corner. Oh, brilliant. Very, very good. So you wouldn't like if I bought that property and there was a knezevic I bought from you and there was an ezy man on IT unless I was definite afraid of cell waves, whatever they are, that i'm not a scientist and even if I wasn't as scientists actually probably know what they are. But um yeah I I would .

cause that risk .

because that .

risk okay.

And that's I say i've never thought about that before, but that's a real risk.

Yes, that's a lot.

Twenty six years in the world of technologies is a long time. Think about twenty six years ago and how much communication has changed.

Yes, yeah. Ask your kids if they know what a rotary phone looks like.

They don't.

Yes, no. Are they that interested in talking about .

any OK .

know how fast technology just that's .

I I agree with.

but I would push them on Price and agree with Scott. I'd haven't paid out over two counter years just for tax purposes.

yes, but that's why I was taking the ten year. But if you know they could go bankrupt and to go out.

yes, that they're betting. I mean.

before I did this, I would crunch the numbers to have an idea of like what's the what kind of hurdle, right? What rate of return what I need. But even the ten years, like ten years .

at twenty two thousand dollars a years at what you said that .

you when you .

know that the heart of rates, probably something around seven.

eight percent, I might view this well.

then maybe they're just pick in a up to be package is so off who knows but yeah if have you got ten .

another quote from someone else um well the the people that oh at least late now they offer me .

like a hundred and forty okay and .

then the other one said one seventy.

Well, just see that I get the maxim bright. I would try IT. I mean, if you can pull this off the half and december. I don't know the rest of financial situation, but soon in everything also static. I do have in december and half in january.

Okay, yes.

sounds good. We spread the tax, the tax over two years.

And good for you. Good for you. yeah. IT started .

to just to be a piece of huntington m, but turned out to be.

get paid. yeah. And so there's no houses around IT.

No, even Better place.

Oh, is that right? And how is your cell phone reception there? Not good.

It's really not.

Now it's shoots above us.

That's a funny.

And the whole is they wanted the cell phone tower on my land was so I got a sl reception. That's great. That's great. Yes, I push up for money and take IT over two years OK. yeah.

I think there are wise to look at the risk on this sort of thing. And you really like further listeners that don't have the luxury of having a plot of land they can least to assets on our company. It's the same concept, you would think, considered on whether it's owning a company and like what's probability of this been viable company twenty five, thirty years now or even more little thing of IT is like a bond that's right. And the .

more risk there is, right? What's .

what's the .

promote company that's ai, what would be a Better thing for you? The answers, which ones you're going to go bankrupt soon, that would be valuable information .

looks like .

experience airlines you found. Yeah.

but T G I fridays. T G I fridays last. Now what was the last time you had to T. G, F, right?

I don't know. All I remembers from the working spaces where Jennifer anders them got trouble for not .

tween enough. In thing .

I was that .

was working place.

office space, a space. Yes, yes. The one that runs every saturday see a clock for people that only happens that people that I think that pretty .

much just if you're an old White male is pretty funny movie because other than that.

and okay.

but I lost my train of thought with uh so anyway, thinking about the same way you'd want to consider the risk of a bond, yes, least with a bond. The market .

changes .

every day. The Price changes that you can you know the what the value is in here and obscure like this.

But I think that i'd never thought about starlink look, but i'll take IT in third world countries. They're not building sales systems like they would have because of starting. It's is easier to .

stand IT up. Well, you know i've had A A small cabin and taaoa like tao for twenty years, whatever. And I my internet provider, it's this repeater system of some sorts totally .

janki right IT must be awful. Yeah a house with poor internet now but it's just like .

you've got the cell, the satellite look in dish that goes across the mountain and IT gets a repeater thing anyway, a couple years up until two years ago. The thing always had chAllenges. And a remember years ago that we would do so remotely.

Sometimes I be up there and seem I gone out of three times. Some would be wrong. Since startling became available, my service is almost perfect. It's amazing how they're really up game. Isn't that market you love IT.

don't you? Is just like this is competition. Yes, this is competition.

Yes, they had up their game because before there, there is the only the option.

Yes, this is competition.

That's great. Let's anyway continue on here. Well.

that was a great I enjoyed that call. I never really had, never really was. A new thought is, like, in this new ideas that chase my people, what is, I mean, I would .

simply be thinking, and what does the chance twenty six years from now, they're going to be will still .

be using the cell towers, yes, or driving your own car, or look, my nephew and a been phone wo in sand from .

I rode in one a week. How was IT? IT was surreal, right?

Let's before we go to the next call, well, let's out tell you, Andrews, the .

waited.

So is this thing might run longer than an hour? this. So I want to talk about all with the notes, why we name someone .

asking why our new work is done with.

and then going to talk about lama and Scott's experience. Anything else anyone wants to talk about?

Let's think i'm glad because we bring up topics we're .

going to talk about, sometimes going to talk about, but i've got notes.

but there is a little bit prep that goes in the show. Anyway, let's talk on ander. And do you're with all with money matters? Hi, thank you.

So I am have a question about what to do with some after time money to invest a got a promotion and a race recently and ended up with a third plus. So i've got about thirty six to forty thousand a year looking looking head next year, max, that all of the protest, if I can do. And I kind of think, and I had in a high yellow account for a while, but realizing that interest is just kind of kick in up and the money is great, but the taxes are are great .

two on that .

so how do you um I am forty nine. I'm in public safety so I could retire as early as next year but I probably will end up stand about five more years and you will .

have a pension that's going to be roughly equal your pay.

Now it's gonna a bit lower. Lost some years in the divorce. So if I go soon and i'd have to work those five years to make IT roughly equal.

And did you buy air, by the way, this listener, just based on the area codes from the state, california, and if you're a safety worker, which being during an laender cement or working a prison, IT is some of the richest benefits in the us.

Fair state is funny. So in I A good friend, and I ve got a couple good friends at a retired PHP, and one was complaining because cause of limits on one two percent and what. But as you tell me this, he is, I know I shouldn't be complained about this.

That's correct. So that for the rest of the listeners across the us. And overseas, both of you, their pensions are are fat, fat pensions. So do you have a four fifteen one?

The reasons that people stick in the.

but that you have a four fifty seven and of four one k available to you, do you not?

Yes, so I i'd masked ed out my four fifty seven and i've been doing the dub, the preretirement catch up the left, that part of why I and end up with so much surplus next years i've been doing the preretirement and catch up to the state age of fifty.

What about you?

I'm using a four one to back door or oh no.

no. Okay, let's just let's let's .

is using the four hundred for a rough.

but that are you putting the maximum in both to four fifty seven and the four one? K.

yes, I yeah the four one kid. But that maxim quite a bit lower. But yeah, i'm doing the maxim that I also try.

It's not it's not lower. It's a new teach part .

time how much you are in teaching about .

ten thousand year and I have one hundred percent of that going into the four or three.

okay, but I think you have room there. The four one k in the four o three b at fAllen to the same guidelines, correct? got.

But the four fifty seven dozen, it's right, right? So what happens is you people have a tendency to look at these. They look at the four one k four fifty seven four or three b as the same .

and there's maximum .

limits on each one.

but both on each one, but also in an aggregate .

with the four three and four .

one k but there is not .

an aggregate limit with the four seven because .

it's a text.

it's a fer, it's a deferred compensation. IT isn't a retirement place.

the asset until you leave.

So I think you will probably have a lot of room left in your four one k in your four three b if .

you wanted to do IT on a rough basis.

So could I can, can I contribute more to a four three b than I make a that employer?

No, no. But you can contribute here, but you can contribute more. What percentage of your pay is going into for.

or how much annually is a big question dolmen.

T, so I I have an an, I R, that I used the factor. I don't have four one. K, I was under the impression that .

is so easy, easy, easy. yeah. IT is the four week okay?

And you're .

going to be limited. You you only have to combine with the four or three b and the four or next year.

I believe so. Don't quote on IT. So I think your list I think your limit is what? Twenty six thousand hours a year?

Yeah some right .

around there. It'll go up when you hit fit, when you age fifty? yes. yeah. So that'll take care of some. And then what do you have any money in like what you have in savings outside of your retirement accounts?

Um I have so outside of those retirement counts, I have about ninety thousand split up between a high yields VS. Um a lot of E T S. I listen you guys and you guys say use the etf, uh, although I don't listen to some. So I have fifteen percent and individual .

stocks I just .

like to play and I had about twenty .

percent and so I just looked IT up. So the maximum limit on a four one k and IT combines with a four three b is twenty three thousand dollars for for twenty, twenty, twenty four.

So is thousand.

And I assume you don't have .

any a other debt .

for you. I would just continue to build up. I mean, in a perfect world, you've got to retirement, you've got a nice pension. You've got money in attacks to fred four forty seven. You've got money in rough assets and you have money and just broker accounts because that gives you the greatest mt of flexibility that comes time to actually spend in some of these dollars, right? That tax consequences on just about everything.

sure.

And that would get. So the more diversification you have in your in your saving strategy, the Better off you're going to be when IT comes up with all. yes.

So I I would continue to do the etf.

okay. So just yeah as much as possible into the ets as the savings vehicle and hope for long term capital again when you finally get to pay.

Yeah yeah. And are you living the lifestyle you want though?

Or do you ever kind of think the same thing?

No, I I, I am. So I actually live in the same lifestyle that I had about three years ago before I promoted. I just didn't change anything.

I didn't get the increase salary creep in to my life. I still travel and about to go on A, A two week raise with a girlfriend. And, you know, i'm doing the things that I want to do.

Perfect, perfect. Where are you?

Going hawaii, you can take a cruise. Al away. Yeah, I like that.

sounds.

pretty.

So why do you go on a course that's unna? That's funny. That's funny. Yeah, easy, easy. And just put the between the four three b and the four one k go to the maximum of twenty three and remembred age fifty of the catch up provision, which whenever that means you .

get to catch up. And yes, beginning next year, there's even more for what ages?

Sixty, sixty.

So I think I say sixty, there's more you can contribute. Yes, the chAllenges are still requirement of distributions. And even though they have increase the age, they haven't adjusted the table that use, which is based upon crazy sounds, a joint life expectation y between you and somebody ten years Younger than you. That's how they came up with a crazy table. But they have not adJusting that.

But they did adjust what IT happens to the required minimum distribution at death.

Yeah and considering that we are now no longer our life speccy has been shrinking the last few years, one could make the argument that they need to shorten IT, but that would be a orrible thing. I'm just thrown that out anyway. Magic called and have fun in the europe.

I was, I think I mentioned last week I had a very new experience. Last week, I performed a wedding ceremony for the first time. I was the efficient. Oh, you did. Yes, my niece, someone else supposed to do IT and call me at the last minute.

Feel good. Second, hey, your sky.

I know you very, you can find anybody.

I know you're very religious, but my friend Jimmy, who's twenty six a he and jail, can you please to do IT for me? So how do you do? I don't .

think they went that big little that being guy through and they well you know was funny about IT. I've done like you bet, hundreds of not thousands of public speaking engagement and doing this show. So I don't get nervous.

I don't care if there's thousand people the audience, I don't get nervous at all. Yes, I want to make sure do a good job. I don't. But when it's somebody y's waiting like the gravity of IT, I got, don't want to screw this thing up, have to start over, miss something and I went for .

I did one last summer where actually stopped in the middle of IT when I said in you and then they're who said, he said, yes, I do and then I and then they read each other and after that was done, really, I just stood there and he looked at me, what's next and I said, I was just so enclosed by those words and I had just blanked out I but then you .

were so moved that I said .

I was so was so gross that the beautiful thing, he said each other, I just kindly got lost in the moment, which I was at that at all, thinking about whether I actually need to put new gutters on the side of my house.

You were not in that.

but I I had kindly sped out. But then I was a funeral. My brother's wife and my brother asked me to say something, and I got up and said, I got to tell you, I am a minister, just like this man.

Are you a minister?

Some sort of an american marriage ministries was like twenty five dollars.

And then if you stuff to get license to the state of california, CF nia.

I was able to sign that.

Your minister, yeah, married. I'm licensed by the state of hoy. I am just, well, I had the option. IT was one hundred dollars for a year, or twenty five doors for sixty days. So the next fifty five days or so, if anyone needs to get married, hoy.

I can marry bear. Man, I think I can .

marry .

anyone .

in any state, I think.

Was forty test? no.

Did you have to a greatest in certain .

things that I recall, they send me a beautiful certificate that I have framed in moment, my office, so proud of for american marriage ministries.

Is that what it's got?

Yes, american marriage, minus, I don't appreciate you make him. I think you do funny. But when I did get up and speak of the view and pointed out that I am a minister, so I have the same sort of my words, have the same gravity is man, is study that all right?

Yeah, he might not have that. That is funny. Let's continue with calls. We're talking with sam. Sam, with always money matters.

Oh, hi scotland. yeah. So i'm trying to figure I just retired you on April, and i'm trying to figure if i'm going to OK women retired.

Was this the retirement date come earlier than you'd planned of this like suddenly in the company?

Yeah, I will. You I am. I just hit six yesterday.

Okay, everybody.

thank you. Thank you. So, uh, H, I saw my business, uh, with the building, which I Carry the note and that would meet me about four thousand forty seven and month and I also have a rental that's going on winning for dirty two hundred yet and my wife is spring home about four thousand thousand net so we will care about eleven thousand two hundred a month. But my combine expenses because, uh, the two movies are still having and utility and soon and everything will come out about every one hundred thousand.

Okay, so can we one second year time you sold this building.

you sold this.

still get a cash. No hearing the .

note for hang is .

a is a child in time with a balloon payment， but the the they have a pay up, uh, I mean early pay up in five years. So I only time up to that he could pay up a the whole and .

what is what is the amount?

About and your .

business was in the building. So did you sell the building and the business together? correct. Okay, okay.

he received no cash a print.

okay. And then uh so .

the the mortgage is are on the rental in your primary residence, correct? right. okay. And what is the what is the value of .

the rental I feel about a hit? And what .

do you all want? IT.

uh, one night.

And what's the interest rate?

One point eight, seven, five. okay.

And the primary.

what's the volume and .

what do you want?

IT one fifty.

And I sum the interest date is probably about one point eight as well.

One point nine? yes. Okay.

alright.

And what other ask near loans was the rental of primary residence at one time? That's how you got the little rate then.

right?

How long ago was that? A primary residence .

thirty years ago? Okay, by refinance. Uh, so well, so I have a primary. 我 thirty years and I build a home which I have survive on my property。 Uh, so I build another home and I moved back here like five years ago.

okay.

And what do you happen?

So I never did out. I'm sorry they went. I never did in out. So you was always for address because washing one is in the fun, one is in the bad, but is too separate lot.

Got IT, got to got IT. Now you're ready. Did out.

yes, no.

And what is the what other assets do you have?

And let me do a quick, is the thirty two hundred dollars from rent? Is that after the mortgage and expenses on the house?

No, but but you .

needed IT out the expenses as part of the eighty one hundred dollars. Yeah, that is right.

right? Every one hundred dollar is including the two mortals.

Okay, okay. So what other assets do you have? same.

So I have about two hundred and ten thousand thousand. And and I hanged out IT. Well, is the Better man with a ninety percent, a ninety percent of ty are in the market and ten percent bound.

Okay, anything else?

I have a retirement account with a this about, what about three hundred and eighty five thousand? Three hundred and eighty two thousand?

Okay.

with two hundred, twenty 的 要不是 哪个 and one three bill， one six years is in love.

okay? Anything else?

No, that is.

And how how much longer is your wife plan on working?

That's that's my next question. Uh, if if IT is doable, the problem is her, what? Cover my life and my help soon. And so, well, what if it's beautiful? You like to retire sixty two.

How would .

you now .

sixty and about .

four thousand. A girl is about a grow, is about eighty to twenty nine, eighty and month. I I am seven, seven a year, seventeen, seven, nine or A D M year.

So let's let's let's ask this question. Um not employing that you have enough or don't have enough. If you were to go back to work, what would you do and how much would you make?

If I want to go back to work.

yes, because you said you, you don't know if you have enough money to retire. So I took the all hypothesise m said, okay, let's assume you don't have enough money to retire. What would you do if you had to go back? You sold. You've been self employed for many, many years. I am forty two years.

okay. So I don't think it's going to be working for day.

But is the idea .

of you going over get to punch the clock and right?

The idea of you going to actually getting the job is .

probably not very appealing. No, no. Well, i'm tired of IT. So I could go back to work by of anybody going, how is a service where, well, I own a mechanic shop for for the two OK.

So is, but by the way, did you sold a large institution?

No, IT is a small shop. So so you want to know whether .

you have enough to retire.

I want to know if in facing and kiss up with me and i'm gone to school .

and get to sixty two.

i'm i'm not worried about you get screw between eight, sixty two and sixty five. The concern is eighty and ninety years old.

Yeah.

i'm just so have security kicking in. My going to have security kicking in. And you may or may not choose to take IT early based upon the rest of your financial situation. IT seems like the rench receiving for the house seems a little low and eight hundred thousand dollar a house and you're only .

getting thirty two hundred a month yeah is a is a sixteen hand square a house to bed to back. Uh, I think that what is go for in this neighbor could get as as much as duty by hit.

but must be in a nice neighborhood.

H um it's so in the okay or hood I mean, it's not bad. Is in for no okay .

when that kind explains IT and you plan on staying in the day area?

Yes, you.

Know this is tight, this is touching. Go and you got .

about eight hundred thousand outside of your rental and your home. You've got the other income that's coming in.

But we need but we don't know how we know that that's only going the maximum is going to come in for twenty years. yeah.

So we need to make sure that twenty years now that we can replace .

that income because if your wife quitter job and the answers is no, you can't retire if your wife works till share sixty five and by the way you are you're really smart to be concerned about the cost of health insurance because you should be because medicare kicks in at sixty five and you talked about a retiring at sixty two and it's conceivable that your insurance payments are two thousand twenty five hundred dollars a month.

yeah right, which is thirty .

thousand dollars thirty years. So that is a touching go, right? If if he was going to ward to sixty five, and then you looked at what your own security was coming in and what heroes of security is coming in, my guess is that you'd be able to make up that four thousand hours, uh, you know, hit in pay.

Yes, you can get pension too.

Okay, well, that's that's how much, how much will her pension be?

Uh, about, I think about sixty five percent of her wages. Max OK about .

a lot and and SHE security eligible SHE doesn't have a job where he did .

not participate. So the problem .

in a perfect world, if we talked in january, would say someone you put the off a couple I even known in forty two years, if you can put IT off couple years are probably Better off financially. Let's let's focus on doing all those steps that we should be taken now to put you in the best position for when you ultimately sell your business. Yeah, but we didn't talk in jan. We we talk now and maybe there was so the right thing for you, I don't know you .

and what's what's the value of the building that you sold to them and Carried the node on.

So the business .

was just thrown in for free?

Yes, SONY in in, in my feel, the business only was when there. Yes.

well, that that that is in one hundred percent true because there there will there's good will. But so the idea that the reason I ask a question, which is, is that you know payment at risk, and the answer is probably not because the fact you can go back and take the building if they default the loan. Um so it's you're probably okay um IT would if you're using Better man, right, and you're paying them to a dial in financial planning, you would probably be well served to actually sit down and pay someone to actually .

do some projection. Yes and i'm .

not paying batman is a robot count you I am so much .

you're get the .

low cost you .

getting know what you're paying for the yeah .

yeah but it's not free not free but part .

of the plan, sam, is like what what do we how do we replace that income twenty years out? And like what happens when are you told is continue to go up, right? And property taxes, although the limit in town, they still increase .

two percent a year. Two percent yeah it's not you let just put this way, you'd probably be OK, but I don't think that that's the right answer.

Like if you know i'm just payment to have someone to .

a financial plan, I would never say to my brother you probably be OK. I'd say you need to actually go and pay someone to do a financial plan for you. A third party that actually says, and I said, is to my own brother I said, look, I don't want my brother in law.

I don't want to be your financial al advisor were too close. You need to talk to a third party. Fortunately, they use all worth.

I'd probably be inserted that they didn't um but IT is someone else given the advice and that I paid for first financial plan. I said i'll paid for you do the financial al plan they found out he could retire in two years and he retired, right? I would recommend the same to you.

So so what what would be the cost for somebody?

Is talk to the the particular provider. What's the cost step?

A couple of grand or some couple of grain.

but what's the cost of you? You don't .

do IT and.

I mean, I like pets, said five minutes ago, this is kind of on the bubble here. So if I was .

I was ping, you come back in the other assets would be in the millions. And then I say they don't worry about IT, but they're not. It's on the bubble. No, my guess is that the adviser is probably to tell you why he needs to work till sixty five and that you're gna have to do all the shopping, cleaning, the coding. 那 挺 牛 的。

And our recommendation is, do the plan involve your spouse? With the plan you can look at the numbers aren't going to lie. I mean, others have to use some projections in there, like what are we going to sum for inflation? What are we going to sume for, but just be relatively conservative on and then you will have an idea of what your probability of success. And not only that.

IT would include your state plan, what you're doing for a state planning and make recommendations there in tax planning. So I think .

its money will spread. Go so. And I would probably tired being a mechanic for four tage.

I am pat. I am so bad. I wanted to OK with something of the house killing me like quiet. Did you try to do yourself? The .

thing Sparks the same. Okay, that's not.

I thought I turn the power off. I went outside which and mislabeled or some oh.

you're lucky. You sit here.

It's just, it's not i'm and I got killed of A I guess I could yes.

people that from electricity almost every day. So yes, yes, yes.

they are smoking.

So anyway, someone asked me the other day. So for scotland, ve been working as business partners for thirty eight, thirty one years, something like and up until five, six years ago, five years ago was called handsome mccline.

And and you listen on the radio and you, if you have a .

self with me, the other have to me before.

really?

Yes, yes. So face, look at japan. I know, you know, I took .

thirty years.

No, I overnight success. I said you were really. Really um so uh, someone was asking me what why did you change your name to all world? And I said, well, I was handsome machine at first I was handsome mclain retirement group and then IT was handsome machine financial.

But retirement groups sounded like we did pension plans and financial. We could have been a mortgage company here, broker, you know, we could done auto loans or whatever. And the reason we change IT to all worth is because as we grow the business over the last thirty plus years, we've added more services.

So we've added a state planning. We've added where there's a state planning to turny on staff. We've added a large sweet of accounting services for individuals.

And where appropriate, our advisers will bring that in. Plus, we've got relationships for medicare insurance and for someone like sam, who retires prior to medicare kicking in. We have a third party that we work with under White label that actually makes recommendations, and the adviser actually walks the clients through the recommendations.

So I was sitting with an adviser and a new client the other day, and you know, as they explained IT to look, you get your the new coin came in. We took their trust. We downloaded IT into our system. We scan IT for highlights, right? And then we have an estate planning attorney look at IT, and they make recommendations to the a client that may or may not be appropriate and the client can neither have a institute or bring IT to a third party that's part of all your worth.

So in an insurance division that analyses life policy is not for a stuff and .

annuities and long term care policies, right? So we've got specialist in that. And you know is the company is has grown you know, thirty years ago, as you mean in one person is the company has grown IT. Actually, we've been able to add more and more services, and we wanted that to reflected in our name all worth, which is trying to create one stopped shop for most of our clients so that we can take care of all. There were you.

So and this, by the way, this is where the industries headed. So there's kind of the independent advice like we've been independent for thirty years. IT has primarily been but almost a cottage industry of tend to be a lot of smaller organizations.

But it's really hard to provide all these services as a small orange zone, almost sponsible. So um like part of our growth is find any other firms that went to partner rep with us. We find some the best financial visors in the .

country and then we bring them a sweet of services that they come part in the coin. So IT goes back the same question, which is you he's worried about whether he has enough to retire and he was, you know, bright enough to worry about the cost of insurance, but we would actually Price the cost of insurance. That wouldn't just guess what IT will be here for.

right? A true plan.

a true plan. And then bring a state planning and tax planning around the whole things and then talk about the risk, the risk associated with his finances plan. And the question was, well, how much is gonna? It's like how much is gna cause visit with the adviser and they will quote your Price. And then if you don't anna pay for the plan, they don't pay for the plan. Yeah, right.

It's you six in your talk about this, I I write a call, lumb, every every year, the week for a publication called investment news.

Then read that a long time. If you listening.

read ed IT because it's including me, including bad.

It's it's I used to but now they started, okay.

keep called no way anymore. I don't I I don't think I paint anything I said that to pay me write from every the week, I think. But my only reason about this up, as you're going talking about that the article just finishing this week was about aging advisers.

And you either do your clients of service by really staying in the game or retire and get out the way and have someone else come on and step in because things have changed so much in the last even decade. If you're talking about these services a decade ago, we weren't point services. And you think of the technologies a .

few years ago, a state planning, what we're doing today, you real couldn't do because the technology didn't exist. And I hate to use the word ai, artificial intelligence, but we use IT. I mean, it's a buzz d but IT actually really adds great scale office.

So my point, this articles like your clients might love you and might think you're doing a good job. But if you're not keeping up to date with all the latest technology and all the latest services, you are not helping your clients and you should probably just retire that. That was because the average age of advisers in our industries is late six, late fifties.

I mean, early six. There are more thirty five financial planners over age seventy than under age thirty. I didn't know that more thirty five financial planner over aged seventy.

These are people that keep up to date on their continuing education and pay their dues. I didn't know. So now there's some great advisers that I ve also seen a lot. I've seen enough of advisers that they get those certain point. They climb books they got .

they were tired and don't .

tell anyone they have three days and they travel all the time up. They keep up today .

with them, don't tell their client that they're not really keeping up today and the clients .

don't know what the new things out that they missed out on, right? Well, anyway, so I literally came in the studio midday. I had not listened to the a read news in a couple of ours. And I see this article dropped on my, on my desk of time to reserve cuts key industries by a quarter point. And I look at this like just today.

like in the markets did nothing .

and the markets did nothing.

Like yesterday, the market is is so much that didn't made up for whatever the day.

but and the bond market saw laugh a bit. That's right.

So so one of the things that keep in mind here is this is not an automatic translation to mortgage rates. In fact, mortgage rates in the last couple months have gone up in this week, have gone up by over a half a percentage point, not this week, but over last months, they has been up seven tenth of a percent from six one to six eight, right?

So IT tells you that what the fed is doing and what they believe the long term growth in the economy is gonna look like is reflected, right? So the fed is a consensus of people that sit on the F O, M, C. Um is that correct? Yeah yes.

Um board and then the market is what controls long term interest rates. And so IT was sixty. They control a bit.

but they can buy bonds in the in the open market.

which they do as well, but not a problem, not as much as they once stood and sell bonds into the open market.

But obviously the market at Price this in for right?

Yes, expected IT that we've seen IT overseas as well.

Yeah, canada, just in a way.

I guess that's not overseas unless .

I you could go to get they probably have more coastal line coastline that we have. So anyway, this not a geographical factors. Last go, I know, don't know what.

i'm OK OK cut, all right. Well, that you gonna have to discover that on your own type. So before we talk about your work experience.

driving in a it's experience, well.

i'd like to hear about IT um not enough that i'd actually go to sanford sco and drive .

in one of those writing other city.

Hong, so van just paid a forty million dollar fines, right? And what do they paid IT? They paid IT because of their asset allocation funds. They're called target date funds that work very, very well inside of a very retirement account inside of a retirement account .

because we'll shift allocations. And you know if it's a retired account, who cares about the text consequences? Because they're not there are no tax consequences on transactions, right? But the but .

outside of a retirement account, you have no way of controlling as many mutual funds, the taxation of them, yes, as many, especially actively traded funds. So the reason I point this out is because these were all the rage a number of years ago, target date, and they're great for for small amounts of your new to savings. In fact, you were years ago, you talked about you recommended once your daughter. Yes, but if someone came in and put two hundred thousand .

dollars in a was also in a time when a transaction fees were much higher.

that's true. That's right.

Because you can build a portfolio of etf even with ten grand and .

have several good point, good point. So the point being is the reason I bring this up is that you need to pay attention to what's happened in your broken account not only the investments but the taxation of those investments .

because this this is they were .

reduce they reduce um fees and a created more.

I know they swap funds out for an institutional clap. They can increase. They reduced the fees, the minimum for institutional clients wait down. And so they converted dimension. People in the conversion process trigger a capital yeah.

but they would trigger a capital gain anyway that the investor would have no control over. yes. So just the point being is if pay attention to your broker accounts and the taxation on those, all right, Scott, wm.

way more or wamo wo I don't know way more.

okay. So what you're indifferences guys.

So I tried using that a couple months ago as they are with my wife and cement to go a few month ago, if we're going to use IT to go to a concert. But I, I, I looked at the APP and I was just going to take like eighteen minutes for the car to get there. And I was like a fall minute walk.

That was the easy decisions. It's gonna go. But then I was there. I was an conference week ago and i'm like, let's try.

I was with a friend like we're going to didn't let's try way all year. And IT was surreal because the car has a stern wheel. IT does you sit in the back seat?

I guess you .

can sit in the front seat too, not with the driver seat, but the passengers see if you have them. And he just watched the wheel turn. I maybe clearly doesn't need a stern wheel, but IT has the steering wheel.

And so like, so I called.

I ordered the thing on an APP. okay? And there's a flat rates like seven married books right now. I just trying to get people to use IT. And so I went to the front of the hotel and I guess I must have had the wrong. So in anyway, when to pick me up a block and half a way.

So I to walk the block in IT as I walk in the block and half IT had to go to a loop around the the block because IT couldn't be stay park there. So I got a notification that I had to OK somewhere. So by the time I got there, um I had you got to open the .

you open the doors.

you push a button on the phone and IT unlocked the doors or certain of doors unlock and to get in and what was surprising to me about IT the same thing with the .

is that they still talk to you. The driver that wasn't there actually came on a speaker phone, still talk.

It's actually not some guy behind the curtain joy out these year old driver in .

remotely from the Philippines. So in wrong wrong cars like the story training .

that you had a nice store.

exactly, got a whole bank.

Surprising is the speed in which the car would accelerate. And I just assumed to be really slow and smooth. But I mean, I guess it's a city.

So you going to pull out. There's traffic. You that's exactly how drove and you can .

and you can't tip. You don't have to tip. I don't tip anyway. Now shopping.

anyway, that was my way more experience and you do to get yeah hundred .

percent yeah my life matter fact. I mean, my net uses that always uses in temple to go.

Yeah, I told her. I mean, he said, said I had trouble figure out how to unlock the doors. My ipad froze, so had to shut the APP down.

Open the back. So take a look. But what you do IT once, you twice, then pretty simple.

That is IT is so this goes back to when we are talking about cell phones. In the gentlemen that got to twenty six year least left on is who knows.

So today is my son s first day being a copilot and in a commercial jet. I'm not to say the airlines right now just increase your flaying that I don't think it's going to know about that black cans. And by the way, first day, everyone congratulate to be and .

he brought a school video lunch box.

The surgeon, great. You might be a first patient, but i'm sure i'll go fine. But so even just interesting about his like planes don't really need pilots.

That's right, right. Particular in the in the cockpit. I think there are there one to help the passengers feel much Better.

I would not get on the plane without a pilot.

Yeah one thing about getting on a going a car that's going to twenty miles an hour, it's supposed to be in an airplane. But how many, many years before we only need one pilot? Yeah, when you're comfortable enough with the plane is so rare that something goes south.

Yeah.

the changing of times IT is it's interesting fun being with you. This spent sky .

hand some people claim next week oh, and by the way, this goes back to same on our website. He sold his business and someone had an offer without doing by next to planning. We see this a lot in on our website. We have an emergency guide to retirement so that if you are this placed something.

you retire earlier than you plan something.

Retire do you earlier than you plan. This kind of walks you through the steps of what you should be doing, what you should be looking at. And it's the emergency guide to the, I believe I don't I think so .

it's on our website anyway. Will see an next great. This been all its money manager.

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