5 Biggest Stealth Retirement Costs

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Welcome to Something More with Chris Boyd.

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Chris Boyd is a certified financial planner practitioner

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and senior vice president financial advisor at Wealth

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Enhancement Group, one of the nation's largest registered

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investment advisors.

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We call it Something More because we'd like

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to talk not only about those important dollar

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and cents issues, but also the quality of

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life issues that make the money matters matter.

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Here he is, your fulfillment facilitator, your partner

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in prosperity, advising clients on Cape Cod and

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across the country.

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Here's your host, Jay Christopher Boyd.

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Welcome everybody, thanks for being with us for

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another episode of Something More with Chris Boyd.

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I'm here with Jeff Perry.

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We are both of the AMR team with

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Wealth Enhancement Group and happy to have you

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with us again.

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If you are just joining us for the

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first time, know that we welcome your calls,

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your questions, the mailbag, as you guys did

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recently.

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We'd love to hear from you if you

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would like to reach out.

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AMR-info at wealthenhancement.com, toll free 866

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-771-8901.

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If you have your own personal questions, we're

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happy to do a consultation as well.

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Today, we are talking about some of the

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biggest unexpected challenges that people face in retirement.

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Jeff, you had come across a really good

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article in Kiplinger, which Kiplinger is really a

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good quality magazine.

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It is, it is.

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That's probably something worth promoting if people are

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looking for just a good publication.

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Kiplinger has been consistent over the years of

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having good stuff.

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Decades and decades.

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I don't know how long it's been, but

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they're facing all the challenges that the magazine

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industry is facing, right?

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Yeah.

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The cost of delivering a magazine to people

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is not inexpensive.

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And so the size of our magazines is

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going down and they're all transitioning, but I

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have always found them to be- Kind

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of taken over Money Magazine's role, right?

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Yeah.

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Money Magazine.

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To your point.

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No, absolutely.

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I think Money Magazine's gone from publication.

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Yeah.

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Yeah.

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It's just a web.

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Sorry, I interrupted.

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You were saying they've been quality for a

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long time.

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Quality for a long time.

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A little bit above the basic.

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Money was kind of the basics, but still,

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they're writing for the masses as we talk

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about sometimes.

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But I don't see a bias in their

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writing.

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They seem to be open-minded to different

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topics and subjects and opinions.

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It is.

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That's a good suggestion if people are looking

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for a publication.

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Yeah.

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Lots of good articles that are...

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I mean, they've got the flashy headlines at

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times, but it tends to...

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Everyone's got to have a hook, right?

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But at the same time, it's good financial

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content, I think, for sound personal finance strategies

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and so forth.

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Yep.

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Keep you informed.

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Well, in any case, a good article from

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that.

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You want to set things up to talk

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about this or you want me to?

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What do you want to do?

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Well, it inspired me because we do formal,

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comprehensive financial planning for our clients, meaning we

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really dig down to their assets, their cash

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flows, their expenses, their goals, their dreams, their

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risks, not just their risks from being under

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-invested or their risks of being over-invested,

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but their risk of things that they don't

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even think about, right?

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So, and I have seen in my own

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experience with friends, neighbors, and certainly see it

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with clients, is when people get ready to

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retire, or they're thinking about their retirement, and

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you ask them, like, so what do you

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spend every year?

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They have a handle on it, you know?

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Some people have an exact number, and I

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worry about those people a little bit.

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Like, I'm just kidding.

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But, you know.

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You're impressed by it, I know.

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I am impressed by it.

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No, but most people, when you talk to

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them, they go through, they start thinking, what

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do I pay every month, right?

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And they know they have, maybe they have

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a mortgage, maybe they have rent.

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They know they have property taxes.

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They know they have utilities, car payments, car

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repairs.

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You know, they know they have food, which

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is a big help for people now.

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And they kind of come up with a

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number, and it's almost always too low, because

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they forget things.

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But even more riskier to their long-term

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success of their plan is the things that

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don't come up frequently.

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The things that they, well, the things that

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change in retirement.

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And they either don't attribute an appropriate dollar

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amount, or they just miss it all together.

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And this article talks about the stealth things

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that can really destroy your cashflow in retirement.

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And so I thought it was, since we

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see it almost every day.

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There are plenty of them, right?

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There are just things that you maybe underestimate,

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or maybe just don't think about until, you

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know, there's a cost.

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The first one on the list is one

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that I think we see all the time,

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especially people that we know very well, and

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they get older, is healthcare costs.

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So even if you retire, and you have

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Medicare and a good supplement, or you have

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a good company plan, if you retired early,

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and you think like, okay, I usually spend

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a couple thousand dollars a year on my

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non-covered medical things.

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But the older that you get, the more

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this healthcare cost creeps up and up, and

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things that you didn't even forecast.

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We have some good friends, and they're not

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that old.

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They're older than us, but they're not that

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old.

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And they're just going through this period of

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expensive dental work.

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Yeah, that's a big one.

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Yeah.

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Hearing aids and dental implants.

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Right.

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These are like big things that kind of

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seem to crop up at a certain age

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that hadn't been an issue before that.

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Right.

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Everybody has a dental trip.

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Some people might've gone to the dentist today,

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that Adil is saying.

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I don't know.

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But- I just came from a dental

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cleaning yesterday.

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Jeff is giving me a hard time.

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And whether or not you have dental insurance,

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it's usually maybe one thing happens a year,

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and you go in, just as you get

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older, that filling, that cavity, that one crown

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that fell off, that you need another one.

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Right, right.

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And you can kind of handle it.

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It's a couple thousand bucks.

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Right.

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And then you- You start to multiply.

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You need a root canal, you know, then.

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But when you talk about these posts, and

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implants, and bridges, it gets really expensive.

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Yeah.

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So, the number one- Hearing aids is

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another thing that I've run into, where, you

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know, maybe it's a certain age range that

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clients start to face this as a need.

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It's legitimate, yeah.

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But, apparently, they can be quite costly too.

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And that's an example of an unexpected, a

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stealth expense related to healthcare.

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Could be other things, like actual deductibles, and

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co-pays with a hospital stay, or something

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like that.

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More severe.

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Yeah.

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Do we include late in life, like longer,

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long-term care kind of related expenses?

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I think we should, because, you know, one

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of the- I was referencing the financial

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plan, and things that people forget.

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But one of the things that we do

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with our clients is, even when we get

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all the data right, we believe we have

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it right.

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Yeah.

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We start to talk about what ifs, and

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we stress test the plan for what ifs,

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and, you know, the big one, there's a

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lot of them, but the big one that

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comes up that most people really haven't contemplated.

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They might know it might happen to somebody

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else, but they really can't process that it

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could happen to them as a long-term

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care event.

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Yeah, yeah.

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And the costs associated with that, even if

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you're talking at home, you know, it doesn't

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have to be like a nursing home stay,

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necessarily.

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Right.

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Maybe it's just the need for extra care

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at home, and having people come in more

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regularly for various considerations, that can really have

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an additional cost that's beyond your regular cashflow

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plan.

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Even if it's not a permanent thing, you

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know, you could have an injury or an

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illness where you need some convalescing at home,

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but you may need a few months of

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extra help, and that's very expensive.

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Yeah.

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Well, I would add just, you know, when

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you're talking about stress testing, we can come

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back if there's more you wanna talk about

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the healthcare component, but I think that's clearly

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one that comes up and can be pretty

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significant and pretty dramatic when unexpected.

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And, you know, this article talked about, what

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was it, 43%?

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What was that 43% about that people

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are having stress, and the unexpected costs create

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a lot of stress for them in retirement.

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But in any case, I think the one

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thing that you talked about that we do

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often stress test for is inflation.

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You know what I mean?

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And that's, I think, more on people's minds

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the last year or two.

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Because of 2022, we had that big run

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-up in inflation temporarily, and the Fed's drastic,

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you know, effort to try to rein in

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inflation.

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That hit some of our listeners, I'm sure,

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with an awareness of, you know, that this

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is something I've got a plan for.

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We usually have seen, we've been kind of

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spoiled over the last 20 years plus, maybe.

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Even in a low inflationary environment with maybe

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2% inflation, or even lower as the

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norm.

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I think if we were, you know, when

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I started in the industry in the 90s,

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we used to talk about long-term inflation

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as three and a half percent.

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And maybe 3% over a shorter period

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of time.

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You know, now you get to where we've

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been, 2% for a long time.

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The Fed's goal is 2%, but whether they're

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gonna be able to achieve that.

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And, you know, we've talked about this before,

275
00:11:00,940 --> 00:11:03,720
but going from, you know, an environment where

276
00:11:03,720 --> 00:11:08,880
we were increasing our free trade and exporting

277
00:11:08,880 --> 00:11:15,160
arguably jobs, but, you know, manufacturing costs to

278
00:11:15,160 --> 00:11:17,540
lower expense locations.

279
00:11:17,540 --> 00:11:17,980
Sure.

280
00:11:18,720 --> 00:11:21,460
Was helping to keep inflation low as we

281
00:11:21,460 --> 00:11:24,260
look to reverse that pretty, you know, dramatically

282
00:11:24,260 --> 00:11:28,060
with the trade policies that are proposed.

283
00:11:30,040 --> 00:11:33,160
Trying to bring more of that activity back

284
00:11:33,160 --> 00:11:34,840
to our shores.

285
00:11:35,940 --> 00:11:38,080
That will probably raise costs and that could

286
00:11:38,080 --> 00:11:39,820
show up in the form of inflation.

287
00:11:40,160 --> 00:11:42,980
So we may need to start thinking about

288
00:11:42,980 --> 00:11:45,000
a higher inflation assumption.

289
00:11:46,300 --> 00:11:48,020
That's something we should probably think about.

290
00:11:48,200 --> 00:11:49,600
We've kind of been using two and a

291
00:11:49,600 --> 00:11:53,380
half percent as a number of late over

292
00:11:53,380 --> 00:11:53,880
the years.

293
00:11:54,000 --> 00:11:55,340
And then we stress test for, you know,

294
00:11:55,360 --> 00:11:56,900
three and a half percent or something.

295
00:11:57,900 --> 00:12:00,460
But yeah, it might be time to revisit

296
00:12:00,460 --> 00:12:00,900
that.

297
00:12:01,680 --> 00:12:02,300
Probably is.

298
00:12:03,100 --> 00:12:05,920
You're right to note that the inflation spike

299
00:12:07,100 --> 00:12:10,040
after COVID, after the government, all the government

300
00:12:10,040 --> 00:12:13,020
spending and everything that, you know, really in

301
00:12:13,020 --> 00:12:15,860
the supply chain stuff, it got people's attention,

302
00:12:15,860 --> 00:12:18,380
which is good.

303
00:12:18,960 --> 00:12:20,600
Good that it got their attention, not good

304
00:12:20,600 --> 00:12:21,200
that it happened.

305
00:12:22,220 --> 00:12:26,000
But it points out a longer stealth risk

306
00:12:26,000 --> 00:12:28,360
to a financial plan is for those individuals

307
00:12:28,360 --> 00:12:30,820
who are doing their own planning and saying,

308
00:12:30,960 --> 00:12:34,680
okay, spend $5,000 a month, $60,000

309
00:12:34,680 --> 00:12:35,500
a year.

310
00:12:36,260 --> 00:12:38,040
Right now I bring in 70.

311
00:12:38,320 --> 00:12:40,060
I'm good, I have extra cash.

312
00:12:40,560 --> 00:12:43,260
But if you don't include that inflation factor

313
00:12:43,260 --> 00:12:46,140
and to your most recent point, the correct

314
00:12:46,140 --> 00:12:49,160
inflation factor, and you're going to be in

315
00:12:49,160 --> 00:12:54,760
retirement 20 or 30 years, think about how

316
00:12:54,760 --> 00:12:57,220
much things cost 20 or 30 years ago.

317
00:12:58,380 --> 00:13:02,020
And so 20, 30 years from now, you're

318
00:13:02,020 --> 00:13:04,680
purchasing a new car or you're just buying

319
00:13:04,680 --> 00:13:06,460
your weekly groceries or you're doing a home

320
00:13:06,460 --> 00:13:06,820
repair.

321
00:13:06,920 --> 00:13:10,860
If you haven't factored that cumulative effect of

322
00:13:10,860 --> 00:13:13,580
two or 3% a year, into your

323
00:13:13,580 --> 00:13:17,920
cashflow projections, you're going to have a struggle

324
00:13:17,920 --> 00:13:20,660
more than likely at the end of your

325
00:13:20,660 --> 00:13:23,520
life when it's supposed to be the easiest

326
00:13:23,520 --> 00:13:23,960
time.

327
00:13:24,140 --> 00:13:27,500
I used to do these seminars and we'd

328
00:13:27,500 --> 00:13:29,940
start off with, when we talk about inflation,

329
00:13:30,200 --> 00:13:32,500
we'd say, all right, how many people today

330
00:13:32,500 --> 00:13:35,720
came in a car that cost more than

331
00:13:35,720 --> 00:13:36,940
their first house?

332
00:13:37,320 --> 00:13:38,300
Hands go up.

333
00:13:38,440 --> 00:13:41,720
And at that time, almost everybody's hand would

334
00:13:41,720 --> 00:13:42,200
go up.

335
00:13:45,540 --> 00:13:48,620
And I don't know if that's still the

336
00:13:48,620 --> 00:13:52,620
case, but- Maybe if some of our

337
00:13:52,620 --> 00:13:55,140
older clients, but if you're buying a car

338
00:13:55,140 --> 00:13:58,420
today at 50,000, which isn't crazy, right?

339
00:14:00,500 --> 00:14:02,780
20 years from now, it's going to be

340
00:14:02,780 --> 00:14:03,380
six digits.

341
00:14:04,080 --> 00:14:05,240
Yeah, right.

342
00:14:05,860 --> 00:14:07,000
So, yeah.

343
00:14:07,520 --> 00:14:10,000
So, well, all right.

344
00:14:10,060 --> 00:14:12,060
So inflation, you got to be planning for.

345
00:14:12,360 --> 00:14:14,520
Healthcare costs, we got to be planning for.

346
00:14:14,760 --> 00:14:17,500
You just mentioned the idea of home repairs

347
00:14:17,500 --> 00:14:18,120
and maintenance.

348
00:14:18,220 --> 00:14:19,860
I think that's something we don't always include

349
00:14:19,860 --> 00:14:20,560
in our budget.

350
00:14:21,880 --> 00:14:24,180
We tend to say, well, what's it cost

351
00:14:24,180 --> 00:14:27,280
for the, you know, what do you spend?

352
00:14:27,780 --> 00:14:30,420
And you kind of say, well, yeah, I

353
00:14:30,420 --> 00:14:31,640
had to do that.

354
00:14:32,580 --> 00:14:33,700
One time though.

355
00:14:33,700 --> 00:14:35,240
That was a one-off.

356
00:14:35,420 --> 00:14:36,120
Yeah, exactly.

357
00:14:37,400 --> 00:14:40,500
And the roof, I won't need that for

358
00:14:40,500 --> 00:14:41,580
20 years or whatever.

359
00:14:41,900 --> 00:14:44,600
But, you know, then there's renovations.

360
00:14:44,860 --> 00:14:48,920
Then there's, you know, new appliances or whatever.

361
00:14:49,160 --> 00:14:50,760
And it's not every year.

362
00:14:51,040 --> 00:14:52,560
It's not all the time.

363
00:14:53,520 --> 00:14:54,740
It's almost every year, something.

364
00:14:55,080 --> 00:14:56,080
There's something maybe.

365
00:14:56,280 --> 00:14:58,840
But as far as like either to include

366
00:14:58,840 --> 00:15:02,140
it in the budget as a either annually

367
00:15:02,140 --> 00:15:04,860
or maybe every few years there's a outlay

368
00:15:04,860 --> 00:15:09,940
of some note or to just say, hey,

369
00:15:10,040 --> 00:15:12,340
you know, I expect we're going to want

370
00:15:12,340 --> 00:15:16,280
to renovate the kitchen, the bathroom, some other,

371
00:15:16,420 --> 00:15:20,480
you know, major house expense periodically.

372
00:15:20,680 --> 00:15:23,620
We should plan for that as part of

373
00:15:23,620 --> 00:15:25,040
our plan in the mix.

374
00:15:25,200 --> 00:15:26,840
I don't think most people do that.

375
00:15:26,960 --> 00:15:27,220
Do you?

376
00:15:28,060 --> 00:15:29,320
No, I don't think most people do.

377
00:15:29,320 --> 00:15:33,060
And sadly, I've seen lately a few folks

378
00:15:33,060 --> 00:15:35,280
I know who are mortgage free and in

379
00:15:35,280 --> 00:15:38,720
retirement and they're doing fine and something comes

380
00:15:38,720 --> 00:15:42,400
up and they just don't have the assets,

381
00:15:42,840 --> 00:15:43,780
the liquid assets.

382
00:15:44,360 --> 00:15:45,940
And then they go back to a home

383
00:15:45,940 --> 00:15:46,280
equity.

384
00:15:47,460 --> 00:15:49,600
And now they have, you know, it solves

385
00:15:49,600 --> 00:15:51,300
their problem, you know, for that new roof,

386
00:15:51,340 --> 00:15:52,580
for that big repair, right?

387
00:15:53,120 --> 00:15:55,080
But now they have a payment which wasn't

388
00:15:55,080 --> 00:15:56,500
projected in their cashflow.

389
00:15:57,020 --> 00:15:57,460
Hmm.

390
00:15:57,640 --> 00:16:00,080
So I love the idea of, you know,

391
00:16:00,160 --> 00:16:01,980
talking about it in a financial plan, but

392
00:16:01,980 --> 00:16:04,260
also planning for it with the form of

393
00:16:04,260 --> 00:16:07,340
a bucket or a silo of money, you

394
00:16:07,340 --> 00:16:11,100
know, dedicated for emergencies generally is fine.

395
00:16:11,320 --> 00:16:11,740
Yeah.

396
00:16:12,000 --> 00:16:14,820
But having that reserved that if the AC

397
00:16:14,820 --> 00:16:18,700
heating unit goes out and it's $10,000

398
00:16:18,700 --> 00:16:20,760
that you're not running to the bank to

399
00:16:20,760 --> 00:16:23,120
get a loan or you're not going without

400
00:16:23,120 --> 00:16:25,300
some people, you know, we see these stories

401
00:16:25,300 --> 00:16:28,220
that people, especially in the Northeast where people

402
00:16:28,220 --> 00:16:30,640
couldn't fix their furnace and nobody knows and

403
00:16:30,640 --> 00:16:32,660
they're just trying to get through.

404
00:16:33,340 --> 00:16:36,100
So having that liquidity bucket that you can

405
00:16:36,100 --> 00:16:39,560
handle a couple of these things without chaos.

406
00:16:41,020 --> 00:16:41,620
Yeah.

407
00:16:42,780 --> 00:16:46,280
I think it's challenging sometimes to plan for

408
00:16:46,280 --> 00:16:47,280
things.

409
00:16:47,360 --> 00:16:48,540
Things tend to come up at the wrong

410
00:16:48,540 --> 00:16:48,920
time.

411
00:16:49,780 --> 00:16:52,560
You know, you're talking about that furnace or,

412
00:16:52,560 --> 00:16:55,980
oh, I know I need this, you know,

413
00:16:56,060 --> 00:16:59,600
$10,000 expense, but I'm gonna put it

414
00:16:59,600 --> 00:17:01,060
off or whatever.

415
00:17:01,560 --> 00:17:04,319
And then how do you plan for the

416
00:17:04,319 --> 00:17:08,020
timing of that in a way that is

417
00:17:08,020 --> 00:17:10,859
more manageable, less disruptive?

418
00:17:12,359 --> 00:17:14,599
You know, if it's something where you're taking

419
00:17:14,599 --> 00:17:16,700
it from investments and the market's down, it's

420
00:17:16,700 --> 00:17:17,740
bad, right?

421
00:17:18,280 --> 00:17:21,980
So yeah, just, well, anyway, that's one of

422
00:17:21,980 --> 00:17:22,280
those things.

423
00:17:22,280 --> 00:17:27,620
I think it's perpetually challenging just as a

424
00:17:27,620 --> 00:17:28,380
planning.

425
00:17:29,220 --> 00:17:30,580
It's definitely challenging.

426
00:17:30,820 --> 00:17:33,920
And I'm hoping, you know, with this conversation

427
00:17:33,920 --> 00:17:36,960
that we're having is people can consider this

428
00:17:36,960 --> 00:17:37,920
before they need it.

429
00:17:38,040 --> 00:17:41,520
You know, what's, I'm gonna attribute the quote

430
00:17:41,520 --> 00:17:42,760
to the wrong person.

431
00:17:42,780 --> 00:17:44,160
So I'm not gonna attribute it to anyone.

432
00:17:44,300 --> 00:17:45,120
It's just not mine.

433
00:17:45,780 --> 00:17:47,620
It's, I haven't had an emergency since I've

434
00:17:47,620 --> 00:17:48,600
had an emergency fund.

435
00:17:49,040 --> 00:17:49,540
Yeah.

436
00:17:49,540 --> 00:17:52,260
Because it's not an emergency anymore.

437
00:17:52,680 --> 00:17:53,400
Yeah, yeah.

438
00:17:53,400 --> 00:17:55,120
It's just, okay, you know, I don't wanna

439
00:17:55,120 --> 00:17:57,640
spend 10 grand today, but I can and

440
00:17:57,640 --> 00:17:58,180
I have to.

441
00:17:58,480 --> 00:18:01,460
So, you know, if you're approaching retirement and

442
00:18:01,460 --> 00:18:03,220
you're thinking about your plan or you're in

443
00:18:03,220 --> 00:18:06,760
early stages of retirement and you have some

444
00:18:06,760 --> 00:18:09,240
ability to put some money away, this is

445
00:18:09,240 --> 00:18:10,900
something that you should do.

446
00:18:11,040 --> 00:18:12,540
We're not asking you to give up the

447
00:18:12,540 --> 00:18:12,820
money.

448
00:18:13,080 --> 00:18:15,500
We're just asking you to segregate it perhaps.

449
00:18:15,800 --> 00:18:17,400
Well, to your point, I mean, one of

450
00:18:17,400 --> 00:18:19,860
the things that sometimes people recommend is to

451
00:18:19,860 --> 00:18:23,160
have one to 2% of your home's

452
00:18:23,160 --> 00:18:30,860
value planned annually for repairs and maintenance and

453
00:18:30,860 --> 00:18:34,400
that kind of a possibility.

454
00:18:35,200 --> 00:18:35,340
Right.

455
00:18:35,920 --> 00:18:36,280
Oh, good.

456
00:18:37,440 --> 00:18:39,100
Good financial planning and business.

457
00:18:39,280 --> 00:18:41,640
You take part of your earnings and retain

458
00:18:41,640 --> 00:18:44,480
them, retained earnings for future needs.

459
00:18:44,540 --> 00:18:46,940
That could be, you know, cashflow pressures or

460
00:18:46,940 --> 00:18:48,660
it could be growth or opportunities.

461
00:18:49,760 --> 00:18:51,820
It's just, you know, we're talking about stealth

462
00:18:51,820 --> 00:18:55,520
things that can erode your retirement and certainly

463
00:18:55,520 --> 00:18:57,000
an unexpected repair.

464
00:18:57,240 --> 00:18:59,980
Well, we're calling them unexpected, but if you

465
00:18:59,980 --> 00:19:01,820
retire and you're- You should expect some.

466
00:19:01,980 --> 00:19:02,260
Yeah.

467
00:19:03,220 --> 00:19:03,360
Yeah.

468
00:19:03,700 --> 00:19:06,440
You know, too, similarly, you know, we've talked

469
00:19:06,440 --> 00:19:07,720
about this before as well.

470
00:19:07,840 --> 00:19:11,000
One of the solutions here can be, sometimes

471
00:19:11,000 --> 00:19:13,600
maybe it makes sense to downsize or relocate

472
00:19:13,600 --> 00:19:17,480
or maybe you upgrade to a newer place

473
00:19:17,480 --> 00:19:19,960
that doesn't have as many of those kinds

474
00:19:19,960 --> 00:19:25,360
of needs, but you can limit some of

475
00:19:25,360 --> 00:19:27,540
the challenges you might face if you do

476
00:19:27,540 --> 00:19:28,580
that relocation.

477
00:19:29,240 --> 00:19:29,820
You know what I mean?

478
00:19:30,300 --> 00:19:32,800
Hey, we owned a house that was 140

479
00:19:32,800 --> 00:19:36,080
years old in downtown Sandwich, Maine.

480
00:19:37,020 --> 00:19:38,660
I bet that always had costs.

481
00:19:39,000 --> 00:19:41,220
A beautiful home, but we were clear, you

482
00:19:41,220 --> 00:19:43,720
know, when we bought it that we bought

483
00:19:43,720 --> 00:19:46,540
it in 2011, I think, that when we

484
00:19:46,540 --> 00:19:50,280
retired, we did not want to live in

485
00:19:50,280 --> 00:19:54,400
that home because the potential for repairs on

486
00:19:54,400 --> 00:19:57,320
an older home is just even more difficult

487
00:19:57,320 --> 00:19:58,060
to predict.

488
00:19:58,360 --> 00:19:59,080
It can be a drain.

489
00:19:59,260 --> 00:20:00,780
And serious repairs, you know?

490
00:20:01,680 --> 00:20:03,400
Hey, let's go back one more, too, just

491
00:20:03,400 --> 00:20:04,040
to the healthcare.

492
00:20:04,460 --> 00:20:06,020
You know, how do people deal with that?

493
00:20:06,060 --> 00:20:08,820
What are some suggestions they might, you know,

494
00:20:08,820 --> 00:20:11,280
think about how to manage those costs?

495
00:20:12,360 --> 00:20:16,640
I mean, one possibility is, you know, evaluate

496
00:20:16,640 --> 00:20:19,260
whether long-term care insurance is an appropriate

497
00:20:19,260 --> 00:20:20,360
tool for you.

498
00:20:20,640 --> 00:20:23,980
It's expensive at times and sometimes can be

499
00:20:23,980 --> 00:20:25,800
an absolute cost.

500
00:20:26,760 --> 00:20:28,920
Sometimes people think in terms of a sinking

501
00:20:28,920 --> 00:20:31,980
fund, you know, that just they have sort

502
00:20:31,980 --> 00:20:36,120
of a segregated funds allocated with that expense

503
00:20:36,120 --> 00:20:36,680
in mind.

504
00:20:37,580 --> 00:20:39,360
You're an advocate of that, right, Jeff?

505
00:20:39,460 --> 00:20:39,980
Absolutely.

506
00:20:41,800 --> 00:20:43,860
And then, you know, maybe there's other things,

507
00:20:43,920 --> 00:20:46,440
like if your work plan allows for a

508
00:20:46,440 --> 00:20:49,440
HSA, maybe you stock money away in your

509
00:20:49,440 --> 00:20:50,760
HSA while you're working.

510
00:20:51,140 --> 00:20:51,560
Excellent.

511
00:20:51,700 --> 00:20:53,860
That you can use it in your retirement

512
00:20:53,860 --> 00:20:55,920
to help some of these costs.

513
00:20:58,240 --> 00:21:02,080
Maybe you invest in trying to stay healthy.

514
00:21:02,880 --> 00:21:06,260
Well, that's a great investment in my mind.

515
00:21:06,260 --> 00:21:09,500
You know, some of the activities that will

516
00:21:09,500 --> 00:21:13,560
foster a healthier lifestyle or that kind of

517
00:21:13,560 --> 00:21:15,260
thing could also be relevant.

518
00:21:15,540 --> 00:21:16,680
I don't know, those were just a couple

519
00:21:16,680 --> 00:21:17,160
of things.

520
00:21:18,540 --> 00:21:21,620
One final thing on healthcare, the article touches

521
00:21:21,620 --> 00:21:24,320
on this, and I mean, we didn't say

522
00:21:24,320 --> 00:21:28,500
it probably because it's so obvious, but make

523
00:21:28,500 --> 00:21:30,640
sure you have the right health insurance.

524
00:21:30,980 --> 00:21:34,720
You know, some people push that, you know,

525
00:21:34,720 --> 00:21:37,000
whether it's somebody young, and they say, I'm

526
00:21:37,000 --> 00:21:39,400
healthy, or going into retirement, I'm just gonna

527
00:21:39,400 --> 00:21:43,320
have Medicare and, you know, some free supplement

528
00:21:43,320 --> 00:21:45,560
that I can get, or really, they focus

529
00:21:45,560 --> 00:21:48,300
on cost more than quality after they leave

530
00:21:48,300 --> 00:21:48,880
their employer.

531
00:21:50,240 --> 00:21:53,540
And that can be a stealth loss if

532
00:21:53,540 --> 00:21:55,700
you have a serious issue and you have

533
00:21:55,700 --> 00:21:57,600
a 20% co-pay, for example.

534
00:21:58,880 --> 00:22:00,340
I mean, it's not unusual.

535
00:22:00,860 --> 00:22:04,180
It's a great point, because you gotta start

536
00:22:04,180 --> 00:22:05,160
with the basics, right?

537
00:22:05,460 --> 00:22:06,540
Fundamentals, right?

538
00:22:07,540 --> 00:22:09,000
Blocking and tackling, right?

539
00:22:09,040 --> 00:22:09,840
When it's football.

540
00:22:10,720 --> 00:22:13,080
But when it comes to financial planning, some

541
00:22:13,080 --> 00:22:17,480
basic insurance protection, your whole plan can be

542
00:22:17,480 --> 00:22:20,120
disrupted if you don't have the basics covered.

543
00:22:21,020 --> 00:22:24,160
And that means homeowners insurance, that means health

544
00:22:24,160 --> 00:22:24,620
insurance.

545
00:22:25,140 --> 00:22:26,860
We don't like these expenses.

546
00:22:27,240 --> 00:22:29,120
Nobody wants to spend it, and health insurance,

547
00:22:29,260 --> 00:22:30,660
ridiculously expensive.

548
00:22:32,280 --> 00:22:33,260
Ridiculously expensive.

549
00:22:33,400 --> 00:22:34,560
There's just no getting around it.

550
00:22:34,640 --> 00:22:35,600
It's like insane.

551
00:22:36,480 --> 00:22:39,160
But if you don't have it, the alternative

552
00:22:39,160 --> 00:22:41,040
of, you know, if you end up having

553
00:22:41,040 --> 00:22:44,440
to pay for a major surgery, cancer treatment,

554
00:22:44,800 --> 00:22:47,180
fill in the blank of like some serious

555
00:22:47,180 --> 00:22:50,340
health issue, you'll be devastated financially.

556
00:22:50,820 --> 00:22:53,880
Yeah, we know that in bankruptcy, the number

557
00:22:53,880 --> 00:22:56,980
one reason that for personal bankruptcies is a

558
00:22:56,980 --> 00:22:59,260
medical event, uninsured medical event.

559
00:22:59,260 --> 00:23:02,180
So we feel like it's not gonna happen

560
00:23:02,180 --> 00:23:03,880
to us, but we know it does happen,

561
00:23:04,060 --> 00:23:04,220
so.

562
00:23:04,660 --> 00:23:05,580
Yeah, good point.

563
00:23:05,900 --> 00:23:07,020
All right, good topics.

564
00:23:08,000 --> 00:23:09,080
Hey, just one other thing.

565
00:23:09,140 --> 00:23:09,980
We talked about inflation.

566
00:23:10,200 --> 00:23:11,320
Let me just go back to that.

567
00:23:11,520 --> 00:23:13,480
How would you say people can prepare for

568
00:23:13,480 --> 00:23:14,040
inflation?

569
00:23:15,420 --> 00:23:17,880
It's all about having a financial plan and

570
00:23:17,880 --> 00:23:19,320
not one on the back of a napkin

571
00:23:19,320 --> 00:23:23,300
about a comprehensive financial plan that calculates in,

572
00:23:23,400 --> 00:23:24,720
you know, your future cash flows.

573
00:23:24,840 --> 00:23:27,700
Not the cash flow on retirement day, but

574
00:23:27,700 --> 00:23:30,000
the cash flow 30 years from now with

575
00:23:30,000 --> 00:23:33,140
some projections and some allowances, it will give

576
00:23:33,140 --> 00:23:35,920
you, you know, a more accurate depiction of

577
00:23:35,920 --> 00:23:36,820
whether or not you're ready.

578
00:23:37,240 --> 00:23:37,680
That's a good point.

579
00:23:37,820 --> 00:23:39,600
And the way you think about your investments,

580
00:23:39,760 --> 00:23:41,820
the way you design your portfolio is gonna

581
00:23:41,820 --> 00:23:44,080
help to mitigate that risk.

582
00:23:44,680 --> 00:23:47,140
Maybe we talk about social security decisions a

583
00:23:47,140 --> 00:23:47,320
lot.

584
00:23:47,460 --> 00:23:51,140
Sometimes that's maybe factors into helping to mitigate

585
00:23:51,140 --> 00:23:52,360
the inflationary concerns.

586
00:23:52,520 --> 00:23:54,100
All right, what were some of the other

587
00:23:54,100 --> 00:23:56,380
of the five big ones that they talked

588
00:23:56,380 --> 00:23:58,800
about There were two others in this article.

589
00:23:58,920 --> 00:24:00,000
One was taxes.

590
00:24:00,300 --> 00:24:02,280
And I do see that with people who

591
00:24:02,280 --> 00:24:07,480
don't appropriately calculate the taxes in retirement or

592
00:24:07,480 --> 00:24:09,820
they just, you know, it's not they forget.

593
00:24:10,040 --> 00:24:11,520
They just don't appreciate that when they were

594
00:24:11,520 --> 00:24:13,640
working, they had taxes withheld.

595
00:24:14,140 --> 00:24:14,620
Yeah.

596
00:24:14,960 --> 00:24:17,300
And, you know, we see clients and, you

597
00:24:17,300 --> 00:24:21,560
know, here's stories of like people taking withdrawals

598
00:24:21,560 --> 00:24:25,460
from their retirement savings or taxable brokerage account.

599
00:24:25,460 --> 00:24:27,000
And, you know, we talked to them at

600
00:24:27,000 --> 00:24:28,340
that time, like, do you need to withhold

601
00:24:28,340 --> 00:24:28,880
taxes?

602
00:24:29,920 --> 00:24:32,560
And so many people who get in trouble,

603
00:24:32,700 --> 00:24:34,940
don't contemplate and say, no, I'll deal with

604
00:24:34,940 --> 00:24:35,500
that later.

605
00:24:35,720 --> 00:24:37,500
Or they put it off, right?

606
00:24:38,000 --> 00:24:38,180
Yeah.

607
00:24:38,360 --> 00:24:40,160
And they say, you know, or I'm gonna

608
00:24:40,160 --> 00:24:41,260
put that money back.

609
00:24:41,440 --> 00:24:43,300
So I don't need it, right?

610
00:24:44,040 --> 00:24:44,380
Yeah.

611
00:24:44,480 --> 00:24:45,360
Things like that.

612
00:24:45,400 --> 00:24:48,000
And then it kind of snowballs where they

613
00:24:48,000 --> 00:24:49,560
use that money and then don't have liquid

614
00:24:49,560 --> 00:24:49,980
money.

615
00:24:50,420 --> 00:24:50,600
Yeah.

616
00:24:50,600 --> 00:24:51,900
So you need to pay.

617
00:24:52,020 --> 00:24:53,460
And they're like, I had such a big

618
00:24:53,460 --> 00:24:54,240
tax bill.

619
00:24:54,520 --> 00:24:54,860
Why?

620
00:24:54,860 --> 00:24:57,620
You know, and then they have to take

621
00:24:57,620 --> 00:24:59,700
more money out of their retirement plan again

622
00:24:59,700 --> 00:25:00,660
for the next year.

623
00:25:00,880 --> 00:25:02,900
So they got a big tax bill again,

624
00:25:03,040 --> 00:25:03,840
you know, that kind of thing.

625
00:25:03,920 --> 00:25:05,980
You can see these kinds of things over

626
00:25:05,980 --> 00:25:07,160
and over again happening, right?

627
00:25:07,260 --> 00:25:09,540
I had one neighbor probably two weeks ago

628
00:25:09,540 --> 00:25:12,660
that was complaining about his CPA and said

629
00:25:12,660 --> 00:25:15,000
that, you know, he made all the estimated

630
00:25:15,000 --> 00:25:16,720
taxes that he told them to make.

631
00:25:17,480 --> 00:25:19,220
So I was drilling down with them a

632
00:25:19,220 --> 00:25:19,640
little bit.

633
00:25:19,860 --> 00:25:22,940
And to this example, exactly, he said, well,

634
00:25:23,300 --> 00:25:26,260
I guess I took an extra withdrawal last

635
00:25:26,260 --> 00:25:28,540
year and didn't withhold any money on it.

636
00:25:28,920 --> 00:25:29,500
Darn CPA.

637
00:25:30,100 --> 00:25:32,540
Did you call your CPA and tell him

638
00:25:32,540 --> 00:25:32,880
this?

639
00:25:33,340 --> 00:25:33,760
Yeah.

640
00:25:33,780 --> 00:25:35,740
He was basing it upon, you know, the

641
00:25:35,740 --> 00:25:36,600
previous year.

642
00:25:36,800 --> 00:25:39,080
So, you know, it's just pay attention to

643
00:25:39,080 --> 00:25:39,380
it, right?

644
00:25:39,520 --> 00:25:43,160
You pay quarterlies probably for a reason, but

645
00:25:43,160 --> 00:25:45,380
do a calculation when you're paying that quarterly

646
00:25:45,380 --> 00:25:47,440
and say, am I on track?

647
00:25:47,940 --> 00:25:48,220
Yeah.

648
00:25:48,520 --> 00:25:50,200
Or sit down with your advisor and say,

649
00:25:50,200 --> 00:25:52,500
you know, I feel like I've had a

650
00:25:52,500 --> 00:25:54,360
lot of capital gains this year or, you

651
00:25:54,360 --> 00:25:55,520
know, I took that extra withdrawal.

652
00:25:56,640 --> 00:25:58,160
Do you think I need to increase my

653
00:25:58,160 --> 00:25:58,540
quarterly?

654
00:25:58,900 --> 00:26:01,320
Talk to somebody about it, do a calculation

655
00:26:01,320 --> 00:26:03,020
as you're doing the quarterly so you don't

656
00:26:03,020 --> 00:26:04,800
get surprised by a big tax bill that

657
00:26:04,800 --> 00:26:05,400
you can't pay.

658
00:26:05,960 --> 00:26:06,680
Yeah, good point.

659
00:26:07,100 --> 00:26:10,380
I would say we oftentimes talk in our

660
00:26:10,380 --> 00:26:15,580
financial planning process about strategy around tax diversification

661
00:26:15,580 --> 00:26:19,540
and the tax prioritization, where to draw from,

662
00:26:19,540 --> 00:26:23,220
and that can have virtue, but it can

663
00:26:23,220 --> 00:26:24,160
be challenging too.

664
00:26:24,360 --> 00:26:26,820
And there's times when people don't want to

665
00:26:26,820 --> 00:26:31,520
draw down their taxable accounts first fully, you

666
00:26:31,520 --> 00:26:31,700
know.

667
00:26:32,280 --> 00:26:34,640
We often try to think in terms of

668
00:26:34,640 --> 00:26:37,740
sequence, try to use the taxable account money

669
00:26:37,740 --> 00:26:41,580
first, IRA type money second, and then the

670
00:26:41,580 --> 00:26:43,960
Roth money last, thinking that's going to grow

671
00:26:43,960 --> 00:26:45,780
the most and we want it to tax

672
00:26:45,780 --> 00:26:49,080
-free, you know, maximum growth potential.

673
00:26:49,860 --> 00:26:52,720
But sometimes we got to revisit that because,

674
00:26:53,380 --> 00:26:54,840
oh, our tax bracket went down.

675
00:26:54,960 --> 00:26:57,160
Maybe we want to prioritize paying some taxes

676
00:26:57,160 --> 00:26:59,620
sooner, whether that means to use that money

677
00:26:59,620 --> 00:27:01,820
for withdrawal or do a conversion or whatever

678
00:27:01,820 --> 00:27:02,480
it might be.

679
00:27:03,060 --> 00:27:08,820
But paying attention to these tax considerations is

680
00:27:08,820 --> 00:27:10,240
a real planning opportunity.

681
00:27:10,660 --> 00:27:13,500
And sometimes it's, well, let's face it for

682
00:27:13,500 --> 00:27:14,560
all of us, it's frustrating.

683
00:27:14,940 --> 00:27:16,600
Nobody likes taxes, right?

684
00:27:16,780 --> 00:27:17,980
Well, that's all the more reason to do

685
00:27:17,980 --> 00:27:18,320
it though.

686
00:27:18,520 --> 00:27:20,760
You know, you mentioned that kind of general

687
00:27:20,760 --> 00:27:23,560
rule that you hear people say, taxable first,

688
00:27:23,740 --> 00:27:24,600
IRAs, Roth.

689
00:27:25,980 --> 00:27:28,320
But that's not, it's a general rule, fine,

690
00:27:28,480 --> 00:27:30,280
but it's not the right rule or the

691
00:27:30,280 --> 00:27:31,920
- In all circumstances, yeah.

692
00:27:31,920 --> 00:27:33,840
It may be right for you one year,

693
00:27:34,040 --> 00:27:36,520
but the next year maybe you should have

694
00:27:36,520 --> 00:27:39,060
a whole different strategy because of your current

695
00:27:39,060 --> 00:27:39,920
tax situation.

696
00:27:40,200 --> 00:27:42,680
So it's where these general rules kind of

697
00:27:42,680 --> 00:27:42,980
- Yeah.

698
00:27:42,980 --> 00:27:45,260
So it goes back to making sure you

699
00:27:45,260 --> 00:27:48,000
have the right financial planning guidance in this

700
00:27:48,000 --> 00:27:48,460
process.

701
00:27:48,640 --> 00:27:51,660
A good tax advisor, that CPA that someone

702
00:27:51,660 --> 00:27:52,660
was complaining about, right?

703
00:27:53,020 --> 00:27:55,040
But, you know, you got to keep them

704
00:27:55,040 --> 00:27:57,440
in the loop, keep them involved, get good

705
00:27:57,440 --> 00:28:00,860
guidance in the process between your financial advisor,

706
00:28:01,020 --> 00:28:03,080
your tax advisor and so forth, the state

707
00:28:03,080 --> 00:28:04,560
planning and all the rest of it and

708
00:28:04,560 --> 00:28:06,620
the whole team of people you deal with.

709
00:28:07,600 --> 00:28:09,240
So that was, yeah, go ahead.

710
00:28:09,540 --> 00:28:13,000
Speaking of team, the last stealth- Yes.

711
00:28:13,520 --> 00:28:15,260
Item is family.

712
00:28:16,880 --> 00:28:19,880
We've talked about this one before, the unexpected

713
00:28:19,880 --> 00:28:25,300
expense that inevitably hits a lot of families

714
00:28:25,300 --> 00:28:28,660
with expense and unexpectedly.

715
00:28:29,660 --> 00:28:33,240
What are common circumstances that lead to this?

716
00:28:34,020 --> 00:28:37,720
Well, so it could be a positive that

717
00:28:37,720 --> 00:28:39,000
you want to be generous, or it could

718
00:28:39,000 --> 00:28:40,700
be, I hate to use the word negative,

719
00:28:40,820 --> 00:28:41,740
but it could be a challenge.

720
00:28:42,210 --> 00:28:45,120
So it could, on a positive side, you

721
00:28:45,120 --> 00:28:48,520
could have this inspiration to help someone go

722
00:28:48,520 --> 00:28:51,620
to college or someone buy their first home

723
00:28:51,620 --> 00:28:53,300
or someone get married, you know, a nice

724
00:28:53,300 --> 00:28:55,260
wedding or someone, whatever.

725
00:28:55,540 --> 00:28:58,440
A gifting strategy that you want to be

726
00:28:58,440 --> 00:28:59,580
gifting to them routinely.

727
00:28:59,940 --> 00:29:00,380
Right.

728
00:29:00,660 --> 00:29:02,760
But you could do too much.

729
00:29:03,020 --> 00:29:04,060
You could do too much.

730
00:29:04,300 --> 00:29:06,500
So you don't want to give away all

731
00:29:06,500 --> 00:29:09,520
your resources before you're done needing them.

732
00:29:09,980 --> 00:29:10,140
Yeah.

733
00:29:10,960 --> 00:29:13,860
There's also a circumstance where family members have

734
00:29:13,860 --> 00:29:18,800
unexpected divorce or health issues or whatever it

735
00:29:18,800 --> 00:29:19,200
may be.

736
00:29:19,360 --> 00:29:21,060
There can be these things of that sort.

737
00:29:21,400 --> 00:29:24,600
And parents so frequently want, we've talked about

738
00:29:24,600 --> 00:29:26,860
this many times, but they want to help.

739
00:29:27,020 --> 00:29:29,600
They care about family first, right?

740
00:29:29,600 --> 00:29:31,000
We all care about our family.

741
00:29:31,420 --> 00:29:31,620
Of course.

742
00:29:31,900 --> 00:29:35,900
However, there are times when sometimes that can

743
00:29:35,900 --> 00:29:39,380
be abused, or you have to give thought

744
00:29:39,380 --> 00:29:42,440
to, am I able to do this?

745
00:29:42,660 --> 00:29:44,160
So, you know, I'd like to help, but

746
00:29:44,160 --> 00:29:45,840
am I able to do it in a

747
00:29:45,840 --> 00:29:48,300
way that doesn't put my own financial security

748
00:29:48,300 --> 00:29:49,140
in jeopardy?

749
00:29:49,220 --> 00:29:49,580
Right.

750
00:29:49,840 --> 00:29:55,180
And sometimes you have to show restraint or

751
00:29:55,180 --> 00:29:58,740
you risk your own financial security in the

752
00:29:58,740 --> 00:29:59,340
process.

753
00:29:59,580 --> 00:29:59,780
Yep.

754
00:29:59,980 --> 00:30:03,000
And be careful, even if you, make sure

755
00:30:03,000 --> 00:30:05,600
that people understand what you're offering to do.

756
00:30:06,620 --> 00:30:08,380
Never say I'll pay for your wedding.

757
00:30:09,460 --> 00:30:09,720
Yeah.

758
00:30:11,640 --> 00:30:13,140
Because your wedding could be- What's that

759
00:30:13,140 --> 00:30:13,460
mean?

760
00:30:13,500 --> 00:30:14,500
That could be open-ended, yeah.

761
00:30:14,500 --> 00:30:17,120
It could be $5,000 or $50,000.

762
00:30:18,940 --> 00:30:22,000
Make sure you're- Gotta be specific, be

763
00:30:22,000 --> 00:30:22,100
precise.

764
00:30:22,120 --> 00:30:23,920
If you're being generous or if you're helping

765
00:30:23,920 --> 00:30:26,100
out a loved one who maybe has a

766
00:30:26,100 --> 00:30:28,380
job loss or a divorce or whatever the

767
00:30:28,380 --> 00:30:31,480
situation, talk to your spouse if you have

768
00:30:31,480 --> 00:30:34,720
one, talk to your financial planner and come

769
00:30:34,720 --> 00:30:35,940
up with a figure or a way to

770
00:30:35,940 --> 00:30:40,260
help somebody and articulate it with specificity that

771
00:30:40,260 --> 00:30:41,960
we're helping you for two months.

772
00:30:42,360 --> 00:30:43,820
You know, we can help you for two

773
00:30:43,820 --> 00:30:44,000
months.

774
00:30:44,060 --> 00:30:46,040
That's what we can afford or we can

775
00:30:46,040 --> 00:30:49,160
contribute $5,000 to the wedding or whatever

776
00:30:49,160 --> 00:30:49,720
it is.

777
00:30:49,880 --> 00:30:52,440
And that way the generosity is understood and

778
00:30:52,440 --> 00:30:52,980
appreciated.

779
00:30:53,060 --> 00:30:57,320
And the person receiving it didn't hire a

780
00:30:57,320 --> 00:30:59,440
12 piece band for the wedding.

781
00:30:59,680 --> 00:31:00,160
Yeah.

782
00:31:00,400 --> 00:31:01,860
It doesn't think that mean they have a

783
00:31:01,860 --> 00:31:04,160
year off and they can just go the

784
00:31:04,160 --> 00:31:05,980
slow path of getting that next job.

785
00:31:06,440 --> 00:31:07,920
So it applies- No, that's a great

786
00:31:07,920 --> 00:31:08,180
point.

787
00:31:08,300 --> 00:31:11,160
And then similarly, like you, if you are

788
00:31:11,160 --> 00:31:14,500
saying, well, maybe I'll help them.

789
00:31:14,780 --> 00:31:17,680
I was meeting with people recently in various

790
00:31:17,680 --> 00:31:18,340
circumstances.

791
00:31:18,340 --> 00:31:21,260
They bought a house that they were now

792
00:31:21,260 --> 00:31:24,800
having a family member reside in, a condo

793
00:31:24,800 --> 00:31:25,040
house.

794
00:31:25,180 --> 00:31:27,540
I forget what it was, but the idea.

795
00:31:28,040 --> 00:31:31,000
And so, but I'm going to charge you

796
00:31:31,000 --> 00:31:38,280
rent or that you maybe, if you take

797
00:31:38,280 --> 00:31:42,840
on the mortgage of their place that you

798
00:31:42,840 --> 00:31:46,360
have a contract or, you need to have,

799
00:31:47,160 --> 00:31:48,000
I mean, let's face it.

800
00:31:48,120 --> 00:31:50,260
It's very hard to, you're going to go,

801
00:31:52,140 --> 00:31:55,160
collect on that and- Foreclose.

802
00:31:55,300 --> 00:31:56,460
Foreclose on someone.

803
00:31:56,460 --> 00:32:00,400
You know, so you really have to give

804
00:32:00,400 --> 00:32:04,420
detailed thought, but when possible, put it in

805
00:32:04,420 --> 00:32:09,880
some like formalized terms so that everybody's on

806
00:32:09,880 --> 00:32:10,740
the same page.

807
00:32:10,880 --> 00:32:12,680
This is what we're agreeing to.

808
00:32:13,320 --> 00:32:17,620
And that having that formality about it makes

809
00:32:17,620 --> 00:32:20,040
it less of a, well, you know, mom

810
00:32:20,040 --> 00:32:21,880
can afford that or dad can afford that.

811
00:32:21,960 --> 00:32:23,440
You know, they can, they won't mind.

812
00:32:23,440 --> 00:32:26,160
A lot of times parents don't tell what

813
00:32:26,160 --> 00:32:27,360
they can and can't afford.

814
00:32:27,520 --> 00:32:30,380
And it's just assumed that their resources are

815
00:32:30,380 --> 00:32:32,820
oftentimes greater than they may even be.

816
00:32:33,940 --> 00:32:34,980
So, yeah.

817
00:32:35,960 --> 00:32:38,540
So be specific and, you know, document it.

818
00:32:38,680 --> 00:32:39,860
And I think that's great advice.

819
00:32:39,960 --> 00:32:42,380
And that way the recipient is appreciative of

820
00:32:42,380 --> 00:32:43,920
what you're doing and they understand it.

821
00:32:44,020 --> 00:32:46,360
And there's no hard feelings later.

822
00:32:46,600 --> 00:32:49,080
Yeah, and to, I think we've had this

823
00:32:49,080 --> 00:32:49,860
theme throughout.

824
00:32:50,380 --> 00:32:52,800
Work with your financial planner to evaluate what

825
00:32:52,800 --> 00:32:56,160
can you really do that you can afford?

826
00:32:57,060 --> 00:32:59,960
Or if it's gonna be challenging, how do

827
00:32:59,960 --> 00:33:00,520
you navigate?

828
00:33:00,940 --> 00:33:02,200
What do I need to do to be

829
00:33:02,200 --> 00:33:04,180
able to do what I want to help?

830
00:33:04,520 --> 00:33:07,760
It may mean some changes need to occur,

831
00:33:07,940 --> 00:33:08,260
you know?

832
00:33:08,420 --> 00:33:12,500
And so you can evaluate what's gonna be

833
00:33:12,500 --> 00:33:14,740
the way that gets you to the end

834
00:33:14,740 --> 00:33:17,640
result that you most value and want, you

835
00:33:17,640 --> 00:33:17,740
know?

836
00:33:17,740 --> 00:33:18,340
Super important.

837
00:33:18,600 --> 00:33:20,180
Because when you have that financial plan in

838
00:33:20,180 --> 00:33:21,560
place, then you can go to the advisor

839
00:33:21,560 --> 00:33:23,840
and say, I'm thinking of doing this.

840
00:33:23,920 --> 00:33:26,420
Does it affect my longevity, my plan?

841
00:33:26,920 --> 00:33:27,940
How does this work?

842
00:33:28,220 --> 00:33:30,040
And then you get, you know, kind of

843
00:33:30,040 --> 00:33:32,240
relief that it doesn't, or you get like

844
00:33:32,240 --> 00:33:34,620
a point of caution to say, all right,

845
00:33:34,620 --> 00:33:36,000
maybe I should do something else as you

846
00:33:36,000 --> 00:33:36,420
indicated.

847
00:33:36,820 --> 00:33:41,000
And sometimes too, you can have the benefit

848
00:33:41,000 --> 00:33:43,480
of saying, well, I wanted to, but my

849
00:33:43,480 --> 00:33:44,440
financial advisor.

850
00:33:44,640 --> 00:33:46,160
Yeah, blame us, it's fine.

851
00:33:46,600 --> 00:33:48,360
You know, if it helps, if you have

852
00:33:48,360 --> 00:33:50,220
that kind of need for a little buffer,

853
00:33:50,610 --> 00:33:52,460
you know, you can be like, oh, I

854
00:33:52,460 --> 00:33:55,440
really was hoping to do more, but my

855
00:33:55,440 --> 00:33:57,680
financial advisor tells me, you know, that kind

856
00:33:57,680 --> 00:33:58,000
of thing.

857
00:33:58,320 --> 00:33:59,020
Nothing wrong with that.

858
00:33:59,140 --> 00:34:01,720
Sometimes it's helpful to have that third party

859
00:34:01,720 --> 00:34:03,240
in the mix in that role.

860
00:34:03,880 --> 00:34:04,040
Absolutely.

861
00:34:04,360 --> 00:34:07,500
But it's ultimately, in reality, money is yours.

862
00:34:07,760 --> 00:34:09,060
These decisions are yours.

863
00:34:09,199 --> 00:34:09,480
Sure.

864
00:34:09,600 --> 00:34:13,580
We're here to counsel and guide, but you

865
00:34:13,580 --> 00:34:16,960
know, it's ultimately up to you how you

866
00:34:16,960 --> 00:34:19,280
handle these issues, but we can try to

867
00:34:19,280 --> 00:34:21,159
give you guidance and help in the process.

868
00:34:21,960 --> 00:34:23,679
So I guess that's a good place for

869
00:34:23,679 --> 00:34:24,940
us to wind down, Jeff.

870
00:34:25,040 --> 00:34:28,480
If there's anything that you need listeners as

871
00:34:28,480 --> 00:34:34,000
you run into your personal challenges of these

872
00:34:34,000 --> 00:34:36,840
stealthy issues, maybe it's a good time to

873
00:34:36,840 --> 00:34:38,520
update your financial plan.

874
00:34:39,100 --> 00:34:41,719
Make sure you're addressing all of these issues

875
00:34:41,719 --> 00:34:43,179
and have them well thought out.

876
00:34:43,500 --> 00:34:45,340
We can be a resource in the process.

877
00:34:45,760 --> 00:34:46,960
Don't hesitate to reach out.

878
00:34:47,120 --> 00:34:49,860
Until next time, everybody keeps striving for something

879
00:34:49,860 --> 00:34:50,139
more.

880
00:34:51,639 --> 00:34:53,560
Thank you for listening to Something More with

881
00:34:53,560 --> 00:34:54,260
Chris Boyd.

882
00:34:54,540 --> 00:34:56,720
Call us for help, whether it's for financial

883
00:34:56,720 --> 00:35:00,660
planning or portfolio management, insurance concerns, or those

884
00:35:00,660 --> 00:35:02,700
quality of life issues that make the money

885
00:35:02,700 --> 00:35:03,800
matters matter.

886
00:35:04,140 --> 00:35:07,460
Whatever's on your mind, visit us at somethingmorewithchrisboyd

887
00:35:07,460 --> 00:35:10,620
.com or call us toll-free at 866

888
00:35:10,620 --> 00:35:16,140
-771-8901 or send us your questions to

889
00:35:16,140 --> 00:35:21,120
amr-info at wealthenhancement.com You're listening to

890
00:35:21,120 --> 00:35:23,080
Something More with Chris Boyd Financial Talk Show.

891
00:35:23,220 --> 00:35:25,700
Wealth Enhancement Advisory Services and Jay Christopher Boyd

892
00:35:25,700 --> 00:35:28,000
provide investment advice on an individual basis to

893
00:35:28,000 --> 00:35:28,560
clients only.

894
00:35:28,720 --> 00:35:30,700
Proper advice depends on a complete analysis of

895
00:35:30,700 --> 00:35:31,880
all facts and circumstances.

896
00:35:32,120 --> 00:35:33,980
The information given on this program is general

897
00:35:33,980 --> 00:35:36,020
financial comments and cannot be relied upon as

898
00:35:36,020 --> 00:35:37,580
pertaining to your specific situation.

899
00:35:37,780 --> 00:35:39,780
Wealth Enhancement Group cannot guarantee that using the

900
00:35:39,780 --> 00:35:41,780
information from this show will generate profits or

901
00:35:41,780 --> 00:35:42,900
ensure freedom from loss.

902
00:35:42,900 --> 00:35:45,240
Listeners should consult their own financial advisors or

903
00:35:45,240 --> 00:35:47,360
conduct their own due diligence before making any

904
00:35:47,360 --> 00:35:48,100
financial decisions.