From Pensions to Long-Term Care: Insurance Planning That Works

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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 and financial advisor at

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Wealth Enhancement Group, one of the nation's largest

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registered 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 to Something More with Chris Boyd.

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I'm Chris Boyd.

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I'm here with Jeff Perry.

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We are both of the AMR team at

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Wealth Enhancement and glad to have you with

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us.

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We have a special guest today.

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We have Joe Guy, the insurance guy, who's

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going to join us.

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I've got you.

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We're glad to have you here.

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We'll talk a little bit about some insurance

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-related issues.

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Maybe to start off with, we can begin

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by just an introduction to you and where

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you fit into the Wealth Enhancement organization so

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we can disclose all that to our listeners.

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Yeah, sure.

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Joe Guy, director of insurance here at Wealth

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Enhancement.

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We are part of the centralized service department,

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so insurance, which includes life, disability, long-term

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care, and now a newly minted annuity desk

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as well.

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We handle all things insurance from that personal

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aspect for our clients.

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Advisors are encouraged to use centralized services, which

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isn't just insurance.

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It expands to retirement planning.

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It includes also our tax department, our advanced

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planning team.

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We have group benefits, obviously pension 401k, the

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retirement planning consultants.

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What else am I missing?

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High net worth, business strategies.

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Quite a few centralized services that we offer

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here at Wealth Enhancement.

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My area of specialty is working with individuals

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and business owners on insurance planning strategies.

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Again, life, disability, long-term care annuities.

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We're here to obviously support our advisors and

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put best product and solutions in front of

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our clients here at Wealth Enhancement.

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It's worth talking about for a second with

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our team.

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We're a registered investment advisor firm.

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Wealth Enhancement has various subsidiary companies that we

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can utilize to have integrated resources if people

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have a need for, in your case, insurance

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services, but maybe it's tax services, maybe it's

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trustee services.

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Could be all range of possible considerations.

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When there is a need for something beyond

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the scope of our primary focus, financial planning

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and portfolio management, there's a depth of resources

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that Wealth Enhancement as a large organization has

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coordinated the ability for us to find useful

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resources readily accessible that we can help clients

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navigate and make use of.

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Of course, if people have someone they like

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to use for their taxes or insurance or

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whatever, that's not a problem.

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We can work with their team.

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But when they don't have someone and they

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need to have some assistance, it's nice that

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Wealth Enhancement has put together this depth of

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resources for this integrated approach that people like

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to have the ability to have and the

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convenience of coordinating through one organization that they

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can kind of navigate all of their range

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of needs that they might have.

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So that's the goal.

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Try to make life easy for the clients

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and not to overlook important areas.

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And risk management, which really insurance is fundamentally

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about, is a really important part of the

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building blocks that we think about when we

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talk about financial planning.

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However, Joe, one of the things that we

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were thinking about, our clientele, retirees, oftentimes people

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in or near retirement, oftentimes they start thinking,

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well, I don't need insurance at this stage

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of my life, which is often the case.

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They created wealth.

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And the goal of insurance, maybe at a

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different stage of life, is wealth creation in

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the event that I don't live long enough

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to do that, or if I have a

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disability, or you mentioned various areas of coverage,

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but it's oftentimes thought of as a wealth

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creation tool if I'm not able to do

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it myself.

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Now, when we get to a certain stage

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of life, maybe we have some wealth, but

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there still can be times when there are

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applications for insurance that can be a really

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great use.

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And we thought we'd talk about a few

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of those for people to be mindful of

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as they get approaching those issues of in

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or near retirement, when they might find this

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would be a great time to think about

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a use of insurance.

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And Jeff and I were kind of brainstorming

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before you jumped on with us.

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And I think the first one that we

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were thinking about is people going through decisions

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around pensions.

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And the notion of, on the one hand,

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the pension gives you the possibility of maybe

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a lump sum or maybe an income stream

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for life.

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And in many cases, people like the idea

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of a guarantee of an income stream for

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life, but they have this possibility they want

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their spouse to be considered as well.

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But what if I don't live long enough

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or what if we don't live long enough?

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Sometimes people look to this concept called pension

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maximization, a technique to basically think about maybe

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the use of life insurance as a tool

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to maximize your benefits, but also make sure

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some of that wealth stays with your family

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after you're gone in case you don't live

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as long as you'd like.

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Do you want to talk a little bit

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about that topic?

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Yeah.

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So we often refer to this planning opportunity

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as a pension max strategy that's common in

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the insurance industry.

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When you have a retiree closing in on

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that retirement age and they then are meeting

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with their benefits coordinator and how to choose

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their pension, whether it's going to be a

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single life, whether they're going to do joint

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survivorship, there's joint survivorship with percentages, 50%, 100%.

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So that decision starts to come into play

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as they near retirement.

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And just like you said, if they decide

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to take a single life pension, therefore the

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spouse not getting any benefits if that pensioner

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passes away early, that single life ends with

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the single life retiree, right?

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But if they have life insurance, to help

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supplement the surviving spouse, that single life pension

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typically pays 25, 30% more than a

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joint life, say 50% survivor.

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So the calculation that's done for someone considering

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retirement that has a pension, a defined benefit

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pension that they get to choose, think of

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state employees, federal employees.

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There's not a lot of private pensions out

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there anymore.

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Not as many as there used to be.

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Usually it's public servants, civil service that still

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has some pensions, teachers, police officers, things along

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those lines.

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But the calculation that we do within the

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insurance department is what's the single life versus

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the joint life, what you would typically choose,

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50%, 100%, right?

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And then we compare that difference and if

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they could afford to buy life insurance and

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if it makes sense.

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And obviously- I mean, just think about

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it for a second, Joe.

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If you were saying just for simplicity, if

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it was like, oh, it's $1,000 a

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month if I take it myself, but $850

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a month if I include my spouse for

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whatever that amount might be.

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If we were to put a name to

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that kind of a differential in another circumstance

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where you said, oh, I'm going to spend

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about $150 a month to make sure my

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spouse, my wife, my husband retains an income

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stream after I've died, we'd put a name

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to that and call it life insurance, right?

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If you said, oh, I'm going to spend

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a premium and have a death benefit in

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effect, right?

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That's essentially all you're talking about when it

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comes to this notion.

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But the idea if you have a situation

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where let's say the pensioner lives a long

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time and then the spouse becomes the beneficiary,

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if it's built into the pension, we might

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never see the benefit of that because the

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spouse might not live a long time and

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the heirs might give up a lot of

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that wealth in that scenario.

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Whereas if we did this privately through an

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insurance policy, we might be better served to

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be able to retain wealth intergenerationally.

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Now, there are differences in tax treatments and

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there's a lot of variables.

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Sometimes there's differences in the benefits like health

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insurance for the spouse or things.

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There's things to be tuned into that you

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have to look at and be mindful of.

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But oftentimes it can really work out nicely

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if your goal is to try to retain

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wealth intergenerationally.

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Would you say that's a fair characterization?

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I would, yes.

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And I would say that the planning opportunity

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shouldn't start when you're six months away from

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retirement, right?

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This should be talked about five years at

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a minimum because for the pricing to work

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for that retiree, they should have probably already

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bought their insurance a few years prior to

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the retirement age.

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Well, of course with a pension, you don't

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have to show you're healthy, right?

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But with a life insurance policy, you have

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to be at least insurable.

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And the earlier you do that, maybe a

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greater likelihood of not having existing health issues

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get in the way.

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Right.

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So something that I like to talk to

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advisors and their clients about, especially with those

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pensioners, is buy a 10-year option to

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make that decision.

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What do I mean by that?

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If you bought at 55, a 10-year

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convertible term policy, let's just say is a

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million dollars.

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You're 55 years old, 10-year term, and

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it costs for that 10-year term, it's

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going to cost, I don't know, a thousand

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dollars a year, right?

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I might be low-balling a little, maybe

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it's $2,000.

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But you're 55, you're in your prime earning

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years, you're still healthy enough, you're an empty

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nester.

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You can probably afford the $2,000 to

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buy the million dollar option.

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I'm calling it an option because it's convertible.

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Now, if you plan on retiring somewhere between

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62, 65, guess what?

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I locked your health in at 55.

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And when you say, you know what?

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I'm getting these pension reports and now I

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need to start thinking about how I'm going

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to choose my pension when I retire.

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Let me consider converting that million dollars to

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permanent insurance or some of it to permanent

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and leave the rest in term.

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Whatever that is, you need to then figure

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out, is it enough to cover what you

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would have gotten by taking a survivorship benefit,

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right?

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The survivorship calculation, a lot of pensions are

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00:12:04,240 --> 00:12:06,620
pretty rich for the survivor.

272
00:12:07,040 --> 00:12:09,840
50% of a $5,000 a month

273
00:12:09,840 --> 00:12:12,880
benefit, that adds up to be a $30

274
00:12:12,880 --> 00:12:14,140
,000 income a year.

275
00:12:14,320 --> 00:12:16,860
You need a significant lump sum of money

276
00:12:16,860 --> 00:12:19,720
in order to provide a spouse $30,000

277
00:12:19,720 --> 00:12:20,840
a year income, right?

278
00:12:21,080 --> 00:12:24,020
So, you have to have that calculation done

279
00:12:24,020 --> 00:12:26,300
in order to back into how much insurance

280
00:12:26,300 --> 00:12:27,620
you should probably have.

281
00:12:28,020 --> 00:12:29,700
And the insurance doesn't have to be all

282
00:12:29,700 --> 00:12:32,620
permanent insurance, ideally it is, but you could

283
00:12:32,620 --> 00:12:33,540
level.

284
00:12:34,740 --> 00:12:39,360
I think it's a common mistake though, that

285
00:12:39,360 --> 00:12:41,060
sometimes people say, oh, I'm going to get

286
00:12:41,060 --> 00:12:42,380
20 year term insurance.

287
00:12:42,800 --> 00:12:47,760
And then the problem becomes they live 20

288
00:12:47,760 --> 00:12:51,800
years and the survivor is in a bind

289
00:12:51,800 --> 00:12:54,020
when there's not sufficient resources.

290
00:12:54,320 --> 00:12:57,660
So, I think it's a mistake to rely

291
00:12:57,660 --> 00:13:00,900
too heavily on term insurance as the resource

292
00:13:00,900 --> 00:13:01,460
for this.

293
00:13:01,860 --> 00:13:03,300
Your point is you can do it as

294
00:13:03,300 --> 00:13:06,040
a staged kind of approach, maybe as you

295
00:13:06,040 --> 00:13:09,060
get older, the need for, let's just talk

296
00:13:09,060 --> 00:13:11,900
about how that lump sum is calculated essentially.

297
00:13:12,440 --> 00:13:14,120
Conceptually, think of it this way.

298
00:13:15,180 --> 00:13:19,440
If I die at, I'm the pensioner, I

299
00:13:19,440 --> 00:13:22,060
get my pension option and I want to

300
00:13:22,060 --> 00:13:25,940
plan for day one, I've accepted my income.

301
00:13:26,200 --> 00:13:27,740
And then I die in a car accident

302
00:13:27,740 --> 00:13:29,300
on the way home, right?

303
00:13:29,340 --> 00:13:31,780
I need enough of a lump sum in

304
00:13:31,780 --> 00:13:34,160
this insurance to make sure that my spouse

305
00:13:34,160 --> 00:13:36,320
can essentially replace the income we were planning

306
00:13:36,320 --> 00:13:39,560
for 100%, 50%, whatever that number is going

307
00:13:39,560 --> 00:13:39,840
to be.

308
00:13:40,960 --> 00:13:43,180
So, the way we would typically think about

309
00:13:43,180 --> 00:13:44,900
that is like, what would it cost to

310
00:13:44,900 --> 00:13:47,560
buy an annuity to accomplish that gives us

311
00:13:47,560 --> 00:13:51,200
a value of how much insurance do we

312
00:13:51,200 --> 00:13:52,220
need as an essence?

313
00:13:53,000 --> 00:13:55,200
Now, in reality, we may not choose to

314
00:13:55,200 --> 00:13:57,700
use an annuity when the time comes, but

315
00:13:57,700 --> 00:13:59,480
it gives us the way to know how

316
00:13:59,480 --> 00:14:01,340
much would we need if we wanted an

317
00:14:01,340 --> 00:14:04,760
absolute, a guarantee of being able to meet

318
00:14:04,760 --> 00:14:05,340
those needs.

319
00:14:05,960 --> 00:14:07,720
Now, in reality, we're probably not going to

320
00:14:07,720 --> 00:14:09,500
die on the way home from signing those

321
00:14:09,500 --> 00:14:09,960
papers.

322
00:14:11,080 --> 00:14:13,860
And so, it's very likely we're going to

323
00:14:13,860 --> 00:14:14,640
live a lot longer.

324
00:14:15,640 --> 00:14:17,040
And so, when the time comes that we

325
00:14:17,040 --> 00:14:20,920
have that death of the pensioner, we've got

326
00:14:20,920 --> 00:14:21,540
some choices.

327
00:14:22,700 --> 00:14:24,860
Now, we certainly could use an annuity as

328
00:14:24,860 --> 00:14:26,880
a way to guarantee that income for the

329
00:14:26,880 --> 00:14:28,060
surviving spouse.

330
00:14:28,780 --> 00:14:30,460
But if it's later in life, we probably

331
00:14:30,460 --> 00:14:32,000
wouldn't want to, because we want to keep

332
00:14:32,000 --> 00:14:34,900
that cash in the family and available.

333
00:14:36,960 --> 00:14:39,820
But you've got these choices along the way

334
00:14:39,820 --> 00:14:41,980
that you can navigate what's the best plan

335
00:14:41,980 --> 00:14:43,340
at a given moment in time.

336
00:14:44,400 --> 00:14:46,600
And you want to be in a situation

337
00:14:46,600 --> 00:14:49,780
where this insurance exists when it's needed.

338
00:14:50,580 --> 00:14:53,180
And that's why a permanent product of some

339
00:14:53,180 --> 00:14:55,500
type or something with a guaranteed death benefit,

340
00:14:55,980 --> 00:14:58,500
to me, is the way we want to

341
00:14:58,500 --> 00:15:02,000
structure this kind of a circumstance for the

342
00:15:02,000 --> 00:15:02,900
bulk of it, at least.

343
00:15:03,500 --> 00:15:06,880
If we think about it, we're willing to

344
00:15:06,880 --> 00:15:09,380
give up some of that wealth, because now

345
00:15:09,380 --> 00:15:10,480
we live 20 years.

346
00:15:11,440 --> 00:15:15,140
Maybe some portion of term is viable where

347
00:15:15,140 --> 00:15:16,340
you can say, oh, well, there's still a

348
00:15:16,340 --> 00:15:18,940
portion that's going to be available for that

349
00:15:18,940 --> 00:15:22,220
survivor or for the next generation.

350
00:15:23,180 --> 00:15:25,340
Is that essentially where you're going with that?

351
00:15:25,820 --> 00:15:26,060
Yeah.

352
00:15:26,180 --> 00:15:29,960
I mean, the biggest risk is those early

353
00:15:29,960 --> 00:15:31,340
years right after retirement.

354
00:15:31,840 --> 00:15:34,060
If you take the single life pension, those

355
00:15:34,060 --> 00:15:36,260
first 10 years are the most critical that

356
00:15:36,260 --> 00:15:37,460
you need to outlive.

357
00:15:37,540 --> 00:15:39,200
If you die prematurely, then you're going to

358
00:15:39,200 --> 00:15:41,260
need a big lump sum to cover and

359
00:15:41,260 --> 00:15:43,100
support the surviving spouse.

360
00:15:44,660 --> 00:15:48,780
Layering in some shorter term will make it

361
00:15:48,780 --> 00:15:52,680
look much better for that retiring couple to

362
00:15:52,680 --> 00:15:54,020
be able to pick the single life.

363
00:15:54,280 --> 00:15:56,380
You're still going to need some permanent insurance

364
00:15:56,380 --> 00:15:59,480
to last out for the long term.

365
00:15:59,620 --> 00:16:02,200
God forbid you pass away in your early

366
00:16:02,200 --> 00:16:04,220
80s, but your spouse lives to their late

367
00:16:04,220 --> 00:16:04,740
90s.

368
00:16:04,880 --> 00:16:06,320
There's going to be a gap there.

369
00:16:06,800 --> 00:16:08,960
You definitely need that permanent insurance to last

370
00:16:08,960 --> 00:16:12,680
beyond age 75, like a typical term would

371
00:16:12,680 --> 00:16:13,520
last till.

372
00:16:15,200 --> 00:16:17,240
There's a calculation to be done in a

373
00:16:17,240 --> 00:16:17,740
comparison.

374
00:16:18,480 --> 00:16:20,800
It does take some planning, as you said.

375
00:16:20,960 --> 00:16:23,400
The extra money that you're getting from the

376
00:16:23,400 --> 00:16:26,200
single life pension, you have to factor into

377
00:16:26,200 --> 00:16:28,520
how much is going to go to taxes,

378
00:16:28,540 --> 00:16:31,920
and then what's your net after tax extra

379
00:16:31,920 --> 00:16:33,940
that you're earning, and is that enough to

380
00:16:33,940 --> 00:16:36,260
pay for the insurance and still have some

381
00:16:36,260 --> 00:16:36,880
extra money?

382
00:16:36,980 --> 00:16:40,380
The idea is that you don't just zero

383
00:16:40,380 --> 00:16:41,780
out when it's said and done.

384
00:16:42,120 --> 00:16:43,920
You want to be earning more income off

385
00:16:43,920 --> 00:16:46,820
the single life pension after the premiums are

386
00:16:46,820 --> 00:16:48,840
paid, after taxes are paid, so that you're

387
00:16:48,840 --> 00:16:51,260
actually making out better and then taking a

388
00:16:51,260 --> 00:16:52,700
joint survivor benefit.

389
00:16:52,800 --> 00:16:55,100
If it's equivalent, maybe it'd just be easier

390
00:16:55,100 --> 00:16:56,440
to use the pension.

391
00:16:56,820 --> 00:17:00,220
I think it's also worth thinking about people

392
00:17:00,220 --> 00:17:02,360
today have maybe money that's in the bank

393
00:17:02,360 --> 00:17:06,060
that's safety money, but isn't producing a lot.

394
00:17:06,619 --> 00:17:08,940
It's sometimes appealing to say, take some of

395
00:17:08,940 --> 00:17:11,560
that money, put it into this product because

396
00:17:11,560 --> 00:17:12,780
it's going to give you a much bigger

397
00:17:12,780 --> 00:17:16,079
income cash flow, and you might not have

398
00:17:16,079 --> 00:17:17,520
to put as much toward the premium.

399
00:17:18,079 --> 00:17:22,700
It can really help generate more off of

400
00:17:22,700 --> 00:17:27,480
that savings over a lifetime that it can

401
00:17:27,480 --> 00:17:28,960
really be worth thinking about.

402
00:17:29,440 --> 00:17:31,280
Well, this is just one thing that we

403
00:17:31,280 --> 00:17:34,520
mentioned for people in or near retirement, pension

404
00:17:34,520 --> 00:17:35,280
maximization.

405
00:17:35,760 --> 00:17:38,580
Very specific to people who have pension, but

406
00:17:38,580 --> 00:17:40,760
if you're in that scenario, it's really worth

407
00:17:40,760 --> 00:17:43,100
digging into the numbers and giving some thought

408
00:17:43,100 --> 00:17:46,340
to, particularly if you like the idea of

409
00:17:46,340 --> 00:17:52,120
the guaranteed lifetime income structure that this can

410
00:17:52,120 --> 00:17:53,140
be framed around.

411
00:17:54,600 --> 00:17:57,060
Jeff, we had other topics we were thinking

412
00:17:57,060 --> 00:17:57,340
about.

413
00:17:57,840 --> 00:18:00,060
I'm still scarred from this conversation.

414
00:18:00,480 --> 00:18:03,160
Chris knows this, but Joe doesn't.

415
00:18:03,280 --> 00:18:08,140
I served on the Massachusetts Public Service Committee

416
00:18:08,140 --> 00:18:09,620
for a number of years, and part of

417
00:18:09,620 --> 00:18:12,940
that committee's role was to hear appeals from

418
00:18:12,940 --> 00:18:14,060
pension issues.

419
00:18:15,440 --> 00:18:19,600
A common one was the older widow coming

420
00:18:19,600 --> 00:18:21,820
in before us trying to make a case

421
00:18:21,820 --> 00:18:26,400
why her husband's choice, I'm stereotyping, could be

422
00:18:26,400 --> 00:18:28,900
any gender, but why her husband's choice of

423
00:18:28,900 --> 00:18:31,520
a single life should be undone.

424
00:18:33,180 --> 00:18:35,040
We talk about it's probably not going to

425
00:18:35,040 --> 00:18:35,300
happen.

426
00:18:35,440 --> 00:18:38,520
You get killed the day after you sign

427
00:18:38,520 --> 00:18:41,240
your paper for your pension, but it does

428
00:18:41,240 --> 00:18:43,960
happen, or a diagnosis happens a month later,

429
00:18:43,960 --> 00:18:45,740
and the people are trying to undo it.

430
00:18:46,400 --> 00:18:48,520
We all think that these things aren't going

431
00:18:48,520 --> 00:18:49,200
to happen to us.

432
00:18:49,280 --> 00:18:49,740
I'm healthy.

433
00:18:50,000 --> 00:18:50,940
I'm strong.

434
00:18:51,020 --> 00:18:52,380
I'm going to pick the single life.

435
00:18:53,120 --> 00:18:55,220
Maybe my spouse's health isn't all that good,

436
00:18:55,280 --> 00:18:57,120
so it makes sense not to do a

437
00:18:57,120 --> 00:18:57,920
survivor benefit.

438
00:18:58,340 --> 00:19:01,760
That's just making a best guess.

439
00:19:01,880 --> 00:19:04,400
These things do happen, and this decision here

440
00:19:05,320 --> 00:19:07,980
of what pension option to pick and whether

441
00:19:07,980 --> 00:19:10,180
or not to protect yourself with additional life

442
00:19:10,180 --> 00:19:13,500
insurance, it's the most important decision you're making

443
00:19:13,500 --> 00:19:16,160
when you're, in this case, a public employer

444
00:19:16,160 --> 00:19:18,140
or someone with a pension, and you're making

445
00:19:18,140 --> 00:19:20,160
that decision, how should I structure this?

446
00:19:20,300 --> 00:19:23,100
Joe, I'd love your idea of preempting some

447
00:19:23,100 --> 00:19:26,940
of this risk by getting the policy with

448
00:19:26,940 --> 00:19:30,800
the option 10 years or so in advance

449
00:19:30,800 --> 00:19:35,140
of retiring because you can get rid of

450
00:19:35,140 --> 00:19:36,720
the policy after 10 years if you don't

451
00:19:36,720 --> 00:19:39,240
want it, but a lot happens with your

452
00:19:39,240 --> 00:19:41,980
health between age 55 and 65 for a

453
00:19:41,980 --> 00:19:42,380
lot of people.

454
00:19:44,100 --> 00:19:45,680
That's a great takeaway.

455
00:19:47,300 --> 00:19:49,380
Well, I was thinking one of the other

456
00:19:49,380 --> 00:19:52,120
things that people often think about as an

457
00:19:52,120 --> 00:19:55,340
insurance, often with the use of life insurance

458
00:19:55,340 --> 00:20:00,280
in or near retirement, relates to trying to

459
00:20:00,280 --> 00:20:03,520
mitigate the risks of long-term care, and

460
00:20:03,520 --> 00:20:07,380
sometimes people get a long-term care policy,

461
00:20:07,540 --> 00:20:09,900
but it seems more frequent today that people

462
00:20:09,900 --> 00:20:12,660
use some kind of a hybrid policy that

463
00:20:12,660 --> 00:20:16,380
involves a life insurance structure that can give

464
00:20:16,380 --> 00:20:21,260
them some long-term care features that can

465
00:20:21,260 --> 00:20:23,300
help manage some of those costs.

466
00:20:26,200 --> 00:20:28,540
We used to think estate planning, and we'll

467
00:20:28,540 --> 00:20:30,600
talk about that next, but we used to

468
00:20:30,600 --> 00:20:32,940
think estate planning was the primary reason people

469
00:20:32,940 --> 00:20:38,260
would get life insurance in retirement, but I

470
00:20:38,260 --> 00:20:40,320
think this probably is more common today.

471
00:20:40,420 --> 00:20:40,960
Would you agree?

472
00:20:42,280 --> 00:20:42,440
Yeah.

473
00:20:42,560 --> 00:20:45,080
Actually, the long-term care conversation has become

474
00:20:45,080 --> 00:20:46,300
more and more popular.

475
00:20:46,300 --> 00:20:49,660
We all know baby boomer generation, 10,000

476
00:20:49,660 --> 00:20:51,960
baby boomers turning 65 every day.

477
00:20:53,120 --> 00:20:55,540
When you think about it, most of us

478
00:20:55,540 --> 00:20:58,100
have a story about a loved one having

479
00:20:58,100 --> 00:21:00,180
been in a nursing home or needing care

480
00:21:00,180 --> 00:21:02,620
at home of some sort, so we've all

481
00:21:02,620 --> 00:21:05,160
touched and felt a long-term care event

482
00:21:05,160 --> 00:21:07,600
in our personal lives, and to be honest,

483
00:21:07,680 --> 00:21:09,540
I think when we talk about long-term

484
00:21:09,540 --> 00:21:14,300
care as a department with our advisors, it's

485
00:21:14,300 --> 00:21:17,360
usually a conversation that's brought up by the

486
00:21:17,360 --> 00:21:18,980
client, not the advisor.

487
00:21:19,100 --> 00:21:20,240
We need to turn that around.

488
00:21:20,340 --> 00:21:22,620
We need advisors at Wealth Enhancement to talk

489
00:21:22,620 --> 00:21:24,760
more about long-term care planning.

490
00:21:25,260 --> 00:21:27,120
I think a lot of advisors might default

491
00:21:27,120 --> 00:21:30,100
to self-insuring because the clients are successful

492
00:21:30,100 --> 00:21:31,660
and have a few million dollars, so they

493
00:21:31,660 --> 00:21:33,960
think that they could weather the storm of

494
00:21:33,960 --> 00:21:37,920
a $100,000, $150,000 three-year event.

495
00:21:38,640 --> 00:21:40,740
What happens if it's a 10-year event?

496
00:21:42,100 --> 00:21:46,240
Dementia, Alzheimer's, those diagnosis can last for a

497
00:21:46,240 --> 00:21:48,840
decade where you're taking care of that individual,

498
00:21:49,340 --> 00:21:51,220
and if you go into a nursing home

499
00:21:51,220 --> 00:21:54,620
for dementia or some type of mental health

500
00:21:54,620 --> 00:21:59,660
issue or cognitive issue, it's twice as expensive,

501
00:21:59,920 --> 00:22:03,920
so talking about how life insurance has evolved

502
00:22:03,920 --> 00:22:05,900
in the long-term care space is really

503
00:22:05,900 --> 00:22:06,320
important.

504
00:22:06,760 --> 00:22:09,660
The traditional LTC product, think the Genworths, the

505
00:22:09,660 --> 00:22:12,120
John Hancocks, the MetLifes of the world that

506
00:22:12,120 --> 00:22:14,120
sold a lot of product in the 80s,

507
00:22:14,180 --> 00:22:17,400
90s, even 2000s, a lot of those products,

508
00:22:18,100 --> 00:22:20,460
our clients get letters saying, oh, the rates

509
00:22:20,460 --> 00:22:23,240
are going up, and because those products are

510
00:22:23,240 --> 00:22:26,160
built on a health insurance chassis product-wise,

511
00:22:26,360 --> 00:22:28,980
so they could go to the state commissioners

512
00:22:28,980 --> 00:22:31,020
and ask for rate increases just like our

513
00:22:31,020 --> 00:22:34,260
medical insurance goes up regularly every year, so

514
00:22:34,260 --> 00:22:35,380
as long as they do it to the

515
00:22:35,380 --> 00:22:39,020
whole class of policy owners, they can raise

516
00:22:39,020 --> 00:22:39,820
rates, right?

517
00:22:39,860 --> 00:22:41,540
They might not get the 100% rate

518
00:22:41,540 --> 00:22:43,500
increase that they asked, but the states are

519
00:22:43,500 --> 00:22:46,700
often increasing 20%, 30% increases, right?

520
00:22:46,900 --> 00:22:50,420
So that traditional product has pretty much fallen

521
00:22:50,420 --> 00:22:53,580
out of favor for most advisors and clients

522
00:22:53,580 --> 00:22:55,700
because the rates aren't guaranteed.

523
00:22:56,960 --> 00:22:59,960
About 20 years ago, Lincoln came out with

524
00:22:59,960 --> 00:23:02,260
a product called MoneyGarden, and this product was

525
00:23:02,260 --> 00:23:03,860
built on a life insurance chassis.

526
00:23:04,240 --> 00:23:06,840
This product was designed where it had guaranteed

527
00:23:06,840 --> 00:23:09,860
rate, and it was more often used as

528
00:23:09,860 --> 00:23:11,840
a single pay, so someone would put a

529
00:23:11,840 --> 00:23:13,620
lump sum of money in, let's call it

530
00:23:13,620 --> 00:23:17,320
$50,000, and they would buy $250,000

531
00:23:17,320 --> 00:23:20,000
worth of long-term care benefit pool, right?

532
00:23:20,720 --> 00:23:23,320
So that product came out, and Lincoln sold

533
00:23:23,320 --> 00:23:24,040
it like hotcakes.

534
00:23:24,100 --> 00:23:25,980
It became very, very popular, even though it

535
00:23:25,980 --> 00:23:27,460
was a single-pay design only.

536
00:23:28,100 --> 00:23:30,440
Well, more and more carriers got into this

537
00:23:30,440 --> 00:23:34,540
life insurance hybrid space of designing products similar

538
00:23:34,540 --> 00:23:36,480
to that one, so now we have a

539
00:23:36,480 --> 00:23:38,720
dozen carriers that offer these types of products,

540
00:23:39,120 --> 00:23:40,960
and they've changed from just the single-pay

541
00:23:40,960 --> 00:23:42,900
design to a five-pay, to a 10

542
00:23:42,900 --> 00:23:45,240
-pay, to even pay all years, right?

543
00:23:46,020 --> 00:23:48,900
And so those products are by far the

544
00:23:48,900 --> 00:23:51,860
most popular design for LTC, and it also

545
00:23:51,860 --> 00:23:53,840
comes with the benefit of a death benefit

546
00:23:53,840 --> 00:23:55,380
because it's a life insurance contract.

547
00:23:55,780 --> 00:23:57,500
So you put in a lump sum or

548
00:23:57,500 --> 00:23:58,940
you pay it out over 10 years in

549
00:23:58,940 --> 00:24:03,100
premiums, guaranteed premiums, again, and you're usually getting

550
00:24:03,100 --> 00:24:06,520
three to six times leverage on your money

551
00:24:06,520 --> 00:24:08,080
depending on how early you're buying it.

552
00:24:08,180 --> 00:24:10,840
So the ideal clients are your clients between

553
00:24:10,840 --> 00:24:13,740
ages 50 and 70 that should really be

554
00:24:13,740 --> 00:24:17,440
having this long-term care conversation, and these

555
00:24:17,440 --> 00:24:20,480
linked benefit products, as we call them, or

556
00:24:20,480 --> 00:24:24,560
hybrid life insurance products, really do hit home

557
00:24:24,560 --> 00:24:27,060
on the needs planning for LTC.

558
00:24:27,560 --> 00:24:30,220
Usually $100,000 can turn into $800,000,

559
00:24:30,220 --> 00:24:32,560
$900,000 of benefit pool by the time

560
00:24:32,560 --> 00:24:34,480
you're age 80, 85, right?

561
00:24:34,700 --> 00:24:37,100
So if you start in your mid-50s

562
00:24:37,100 --> 00:24:38,880
and buy a product with a single-pay

563
00:24:38,880 --> 00:24:40,880
or 10-pay design, by the time you

564
00:24:40,880 --> 00:24:43,020
get into your mid to late 80s, it's

565
00:24:43,020 --> 00:24:47,760
a meaningful amount of insurance that all pays

566
00:24:47,760 --> 00:24:50,560
out from the insurance company tax-free, income

567
00:24:50,560 --> 00:24:51,140
tax-free.

568
00:24:51,340 --> 00:24:53,900
So that $800,000, $900,000 benefit pool

569
00:24:53,900 --> 00:24:55,500
is coming to you to help pay for

570
00:24:55,500 --> 00:24:58,360
your care in those years that you need

571
00:24:58,360 --> 00:25:01,380
it, helping preserve assets for your loved ones,

572
00:25:01,500 --> 00:25:03,180
your spouse, whoever, right?

573
00:25:04,480 --> 00:25:08,000
And then on top of that hybrid design,

574
00:25:08,260 --> 00:25:11,340
you could buy a traditional life insurance policy,

575
00:25:11,600 --> 00:25:13,280
just think your run-of-the-mill universal

576
00:25:13,280 --> 00:25:15,100
life or even whole life products that are

577
00:25:15,100 --> 00:25:19,240
out there, and add what we call accelerated

578
00:25:19,240 --> 00:25:22,240
benefit riders or LTC feature to them.

579
00:25:22,780 --> 00:25:24,560
So for a little added cost, you add

580
00:25:24,560 --> 00:25:25,460
the rider to it.

581
00:25:25,880 --> 00:25:27,460
So now you bought a million-dollar death

582
00:25:27,460 --> 00:25:27,880
benefit.

583
00:25:28,520 --> 00:25:31,740
You bought it primarily for legacy purposes, you're

584
00:25:31,740 --> 00:25:33,500
buying a permanent life insurance policy, you want

585
00:25:33,500 --> 00:25:34,720
to leave this to your loved ones.

586
00:25:35,960 --> 00:25:38,800
You add the rider, usually the riders either

587
00:25:38,800 --> 00:25:40,840
come with a 2% or 4%

588
00:25:40,840 --> 00:25:44,880
feature, 2% monthly from the death benefit.

589
00:25:45,000 --> 00:25:47,460
So 2% every month from a million

590
00:25:47,460 --> 00:25:49,580
-dollar death benefit is $20,000 a month

591
00:25:49,580 --> 00:25:50,300
tax-free.

592
00:25:50,640 --> 00:25:52,840
So you're essentially drawing down your death benefit

593
00:25:52,840 --> 00:25:55,280
to help pay for your care while you're

594
00:25:55,280 --> 00:25:55,680
alive.

595
00:25:56,080 --> 00:25:58,020
And anything that you don't use from the

596
00:25:58,020 --> 00:25:59,860
death benefit when you pass away goes to

597
00:25:59,860 --> 00:26:00,900
your beneficiaries.

598
00:26:01,500 --> 00:26:04,560
So those are the real two big changes

599
00:26:04,560 --> 00:26:07,580
in the LTC space, the two life insurance

600
00:26:07,580 --> 00:26:09,700
products from a hybrid or what we call

601
00:26:09,700 --> 00:26:13,100
linked benefit versus the life insurance with the

602
00:26:13,100 --> 00:26:15,940
LTC riders or accelerated benefit riders.

603
00:26:16,260 --> 00:26:18,340
Well, you've given us a five, 10-minute

604
00:26:18,340 --> 00:26:21,100
view of that right here, but would you

605
00:26:21,100 --> 00:26:23,160
come back sometime and let's talk about that

606
00:26:23,160 --> 00:26:25,780
on a show on its own, because I

607
00:26:25,780 --> 00:26:30,240
think that could be a lengthy insight that

608
00:26:30,240 --> 00:26:32,080
I think a lot of people would like

609
00:26:32,080 --> 00:26:32,800
to gather.

610
00:26:33,080 --> 00:26:34,600
How do I manage this risk?

611
00:26:35,340 --> 00:26:36,860
As you said, I think a lot of

612
00:26:36,860 --> 00:26:39,900
times we think, well, maybe you can self

613
00:26:39,900 --> 00:26:46,440
-insure or put a sinking fund or you

614
00:26:46,440 --> 00:26:48,840
can have a game plan where you can

615
00:26:48,840 --> 00:26:49,600
afford it.

616
00:26:50,240 --> 00:26:52,660
But as you said, you never know how

617
00:26:52,660 --> 00:26:54,000
things play out.

618
00:26:54,500 --> 00:26:57,460
And there might be some virtue to having

619
00:26:57,460 --> 00:27:00,700
insight as to how these products work.

620
00:27:00,880 --> 00:27:02,940
I think a lot of times we look

621
00:27:02,940 --> 00:27:05,080
into this and think, well, it's pretty expensive.

622
00:27:05,860 --> 00:27:09,360
And our clientele are generally inclined to be

623
00:27:09,360 --> 00:27:11,060
like, I don't want that.

624
00:27:11,560 --> 00:27:14,480
And we delude ourselves saying, I just won't

625
00:27:14,480 --> 00:27:15,360
have that problem.

626
00:27:16,460 --> 00:27:20,760
I'll leave you with these two comments about

627
00:27:20,760 --> 00:27:21,800
that perfect timing.

628
00:27:22,060 --> 00:27:26,420
So most clients that purchase, I'm saying more

629
00:27:26,420 --> 00:27:28,940
than 50% of the purchases on long

630
00:27:28,940 --> 00:27:31,920
-term care products are done emotionally because they

631
00:27:31,920 --> 00:27:33,380
had a loved one that went through it

632
00:27:33,380 --> 00:27:35,760
and they realized how taxing it was on

633
00:27:35,760 --> 00:27:37,580
the family, both emotionally and financially.

634
00:27:37,920 --> 00:27:39,220
So they don't really care.

635
00:27:39,540 --> 00:27:40,480
They don't care the cost.

636
00:27:40,580 --> 00:27:42,080
They'll find a way to pay for it.

637
00:27:42,420 --> 00:27:43,980
They don't want to be a burden on

638
00:27:43,980 --> 00:27:46,340
their children like their parents or grandparents were

639
00:27:46,340 --> 00:27:48,320
on their prior, right ahead of them.

640
00:27:48,780 --> 00:27:51,120
So they're buying it emotionally.

641
00:27:51,440 --> 00:27:53,620
Now as financial advisors, we have to make

642
00:27:53,620 --> 00:27:55,940
sure it makes financial sense that it fits

643
00:27:55,940 --> 00:27:56,520
in the plan.

644
00:27:56,980 --> 00:28:00,260
The second thing I'll say is that our

645
00:28:00,260 --> 00:28:03,820
clients are successful because they've been very diligent,

646
00:28:04,020 --> 00:28:04,580
responsible.

647
00:28:04,780 --> 00:28:06,680
They saved, they took your advice on how

648
00:28:06,680 --> 00:28:08,480
to manage their investments to get to their

649
00:28:08,480 --> 00:28:08,880
goals.

650
00:28:09,000 --> 00:28:11,600
They've become successfully financially, right?

651
00:28:12,080 --> 00:28:14,840
So all these years they've made responsible financial

652
00:28:14,840 --> 00:28:15,320
decisions.

653
00:28:15,500 --> 00:28:17,480
Now here they are at age 60 about

654
00:28:17,480 --> 00:28:18,060
to retire.

655
00:28:18,340 --> 00:28:22,120
And we're telling them the fiscally responsible thing

656
00:28:22,120 --> 00:28:24,360
would be to protect your assets with some

657
00:28:24,360 --> 00:28:26,820
long-term care insurance that we could get

658
00:28:26,820 --> 00:28:29,460
leverage of five, eight times what you put

659
00:28:29,460 --> 00:28:31,680
into it premium wise and get back tax

660
00:28:31,680 --> 00:28:31,960
free.

661
00:28:32,520 --> 00:28:35,880
All of that makes financial, complete financial sense

662
00:28:35,880 --> 00:28:39,260
from a tax efficiency leverage standpoint makes complete

663
00:28:39,260 --> 00:28:39,920
sense.

664
00:28:40,120 --> 00:28:42,080
But because that client might have a net

665
00:28:42,080 --> 00:28:44,080
worth of $3 million, we as advisors say,

666
00:28:44,140 --> 00:28:45,500
oh, you can self-insure and just close

667
00:28:45,500 --> 00:28:46,700
the book and don't talk about it.

668
00:28:47,200 --> 00:28:48,700
So they're financially responsible.

669
00:28:48,960 --> 00:28:50,700
You've helped them be financially responsible.

670
00:28:50,920 --> 00:28:52,560
And now we're at a decision point to

671
00:28:52,560 --> 00:28:56,580
maybe add some extra responsibility or protection and

672
00:28:56,580 --> 00:28:58,240
it's cost too much money.

673
00:28:59,960 --> 00:29:01,300
There's value there.

674
00:29:01,600 --> 00:29:02,380
The value has to be there.

675
00:29:02,380 --> 00:29:04,220
Especially with this kind of product where you

676
00:29:04,220 --> 00:29:09,000
say, irrespective of whether you have this need,

677
00:29:09,820 --> 00:29:11,920
there's a payout of some sort.

678
00:29:12,160 --> 00:29:13,820
There's going to be money coming back to

679
00:29:13,820 --> 00:29:14,000
you.

680
00:29:14,140 --> 00:29:14,960
Benefit coming back.

681
00:29:15,220 --> 00:29:17,760
Because I think that's one of the challenges

682
00:29:17,760 --> 00:29:19,700
people think about with the traditional long-term

683
00:29:19,700 --> 00:29:21,680
care policy is, well, I hope never to

684
00:29:21,680 --> 00:29:22,740
use it.

685
00:29:23,360 --> 00:29:24,720
What if I don't use it?

686
00:29:25,320 --> 00:29:25,760
Right.

687
00:29:25,880 --> 00:29:29,780
And the common objection is that the premium

688
00:29:29,780 --> 00:29:32,440
is not stable and they've heard from their

689
00:29:32,440 --> 00:29:35,080
friends or their family seeing that rise in

690
00:29:35,080 --> 00:29:37,260
premiums and they're afraid they won't be able

691
00:29:37,260 --> 00:29:39,140
to afford it when they actually need it.

692
00:29:39,540 --> 00:29:39,720
Yeah.

693
00:29:39,760 --> 00:29:42,740
You start Googling long-term care, pros and

694
00:29:42,740 --> 00:29:43,080
cons.

695
00:29:43,240 --> 00:29:46,780
The big cons start, there's lots of articles

696
00:29:46,780 --> 00:29:48,660
written about the rising cost of long-term

697
00:29:48,660 --> 00:29:49,300
care products.

698
00:29:49,800 --> 00:29:50,280
Right.

699
00:29:50,360 --> 00:29:55,700
But single premium solution type.

700
00:29:56,000 --> 00:29:58,440
That does seem like it makes sense.

701
00:30:00,520 --> 00:30:02,120
Well, and every situation is different, right?

702
00:30:02,140 --> 00:30:03,820
So we've got to look at the context.

703
00:30:04,480 --> 00:30:06,000
One of the things we didn't really talk

704
00:30:06,000 --> 00:30:08,340
about, but I'll just throw out briefly and

705
00:30:08,340 --> 00:30:10,300
Joe, if you want to comment, feel free.

706
00:30:12,200 --> 00:30:14,020
We used to think in terms of estate

707
00:30:14,020 --> 00:30:16,680
planning as a topic for life insurance.

708
00:30:16,680 --> 00:30:20,840
Today, the estate tax is a relatively high

709
00:30:20,840 --> 00:30:21,460
threshold.

710
00:30:21,920 --> 00:30:24,200
So it's not necessarily the estate tax that

711
00:30:24,200 --> 00:30:26,500
people need to be thinking about, but there

712
00:30:26,500 --> 00:30:27,540
are still instances.

713
00:30:28,360 --> 00:30:30,440
Well, in our case, I live in Massachusetts.

714
00:30:30,720 --> 00:30:33,200
Massachusetts has a state tax after $2 million.

715
00:30:33,900 --> 00:30:37,080
So that's one, it's not the federal estate

716
00:30:37,080 --> 00:30:39,260
tax, but it might be a state estate

717
00:30:39,260 --> 00:30:39,740
tax.

718
00:30:39,740 --> 00:30:43,000
But there's also issues of liquidity or illiquidity.

719
00:30:43,920 --> 00:30:45,600
If I own a business, if I own

720
00:30:45,600 --> 00:30:48,680
real estate, I may not have the ease

721
00:30:48,680 --> 00:30:53,460
of liquidating assets in a timely fashion after

722
00:30:53,460 --> 00:30:57,600
the passing of someone who has this wealth.

723
00:30:58,180 --> 00:31:00,720
There may be a desire to create liquidity

724
00:31:01,340 --> 00:31:02,360
along the way.

725
00:31:02,460 --> 00:31:04,940
Maybe it's like, oh, I want to keep

726
00:31:04,940 --> 00:31:08,400
this house or this business in place, but

727
00:31:08,400 --> 00:31:13,000
I want to also have equity for other

728
00:31:13,000 --> 00:31:13,560
kids.

729
00:31:14,040 --> 00:31:15,980
So I'm going to give them cash, but

730
00:31:15,980 --> 00:31:18,340
I don't have that cash readily accessible.

731
00:31:18,760 --> 00:31:21,540
You have different scenarios that can emerge.

732
00:31:22,460 --> 00:31:25,220
We didn't even talk about business applications of

733
00:31:25,220 --> 00:31:28,660
life insurance, which are again, its own show

734
00:31:28,660 --> 00:31:29,280
sometime.

735
00:31:30,040 --> 00:31:32,260
But this was great, Joe.

736
00:31:32,420 --> 00:31:33,260
We touched on a lot.

737
00:31:33,360 --> 00:31:35,820
Anything you want to last thoughts or comments?

738
00:31:35,820 --> 00:31:36,360
Yeah.

739
00:31:36,600 --> 00:31:38,900
And you're touching on the estate planning.

740
00:31:39,280 --> 00:31:42,380
I say, every client needs an estate plan.

741
00:31:42,640 --> 00:31:44,800
Not every client needs an estate tax plan.

742
00:31:45,040 --> 00:31:46,920
But if you think about what happens at

743
00:31:46,920 --> 00:31:49,320
end of life, is the titling of your

744
00:31:49,320 --> 00:31:50,000
assets right?

745
00:31:50,080 --> 00:31:51,820
Are all the beneficiaries named properly?

746
00:31:52,020 --> 00:31:54,220
Do you have a living will, a poor,

747
00:31:54,320 --> 00:31:56,680
what happens at the end of life?

748
00:31:57,200 --> 00:32:00,980
Life insurance is instant liquidity, tax-free to

749
00:32:00,980 --> 00:32:03,160
your family to use as they see fit.

750
00:32:03,320 --> 00:32:06,200
And whoever the name beneficiaries are, they're entrusted

751
00:32:06,200 --> 00:32:08,500
outside of the estate, but the trust then

752
00:32:08,500 --> 00:32:09,860
dictates how it gets dispersed.

753
00:32:10,640 --> 00:32:13,280
I would say this about permanent life insurance

754
00:32:13,280 --> 00:32:16,320
or using life insurance in estate planning.

755
00:32:18,300 --> 00:32:21,720
We have assets that are typically not really

756
00:32:21,720 --> 00:32:25,980
friendly to being bequested to our loved ones.

757
00:32:26,260 --> 00:32:29,640
For instance, IRA qualified accounts, worst asset to

758
00:32:29,640 --> 00:32:30,580
leave to your loved ones.

759
00:32:31,200 --> 00:32:34,100
Another asset, non-qualified annuities.

760
00:32:34,420 --> 00:32:36,400
You pay taxes on all the built up

761
00:32:36,400 --> 00:32:37,900
gains in a non-qualified annuity.

762
00:32:38,460 --> 00:32:43,380
So there's ways to start changing those asset

763
00:32:43,380 --> 00:32:46,460
classes by maybe liquidating out of them and

764
00:32:46,460 --> 00:32:48,900
buying a permanent life insurance policy that you

765
00:32:48,900 --> 00:32:50,740
leave to your loved ones as your legacy.

766
00:32:51,240 --> 00:32:53,360
I know this too, from my experience over

767
00:32:53,360 --> 00:32:56,080
20 years in the insurance industry, clients that

768
00:32:56,080 --> 00:32:58,660
own permanent life insurance and have that legacy

769
00:32:59,660 --> 00:33:03,040
check box off saying, I already have taken

770
00:33:03,040 --> 00:33:03,480
care of it.

771
00:33:03,560 --> 00:33:05,180
I have a second to die policy and

772
00:33:05,180 --> 00:33:05,580
a trust.

773
00:33:05,700 --> 00:33:06,840
That's what I'm leaving my children.

774
00:33:07,380 --> 00:33:10,360
They feel more inclined to use their money

775
00:33:10,360 --> 00:33:12,220
that they've saved up and are using in

776
00:33:12,220 --> 00:33:15,220
retirement as opposed to always having to worry

777
00:33:15,220 --> 00:33:16,240
about, am I going to run out of

778
00:33:16,240 --> 00:33:16,460
money?

779
00:33:16,940 --> 00:33:18,520
They've already taken care of the legacy side.

780
00:33:18,680 --> 00:33:20,760
They're going to take those children and grandchildren

781
00:33:20,760 --> 00:33:23,100
on the two week cruise to the Caribbean

782
00:33:23,100 --> 00:33:25,360
or to Disney World on the big family

783
00:33:25,360 --> 00:33:29,640
reunion because they feel comfortable spending their money

784
00:33:29,640 --> 00:33:31,340
because they're already taking care of it.

785
00:33:31,420 --> 00:33:33,260
So it's a permission slip to actually spend

786
00:33:33,260 --> 00:33:34,620
your money and enjoy life.

787
00:33:34,780 --> 00:33:36,320
Can you use the magic word?

788
00:33:36,760 --> 00:33:38,280
That's my favorite word, permission.

789
00:33:39,660 --> 00:33:41,480
That's a great point.

790
00:33:41,780 --> 00:33:44,840
So by having that insurance in place as

791
00:33:44,840 --> 00:33:47,420
in that maybe irrevocable life insurance trust or

792
00:33:47,420 --> 00:33:49,740
part of their estate plan that they've put

793
00:33:49,740 --> 00:33:52,180
this money aside, that's for the next generation.

794
00:33:52,460 --> 00:33:54,700
They've planned for it, but it gives them

795
00:33:54,700 --> 00:33:56,840
permission to use their resources.

796
00:33:57,760 --> 00:34:00,720
And then that can be in shared experiences.

797
00:34:01,260 --> 00:34:03,380
That was a great example you gave, Joe.

798
00:34:03,440 --> 00:34:03,800
It is.

799
00:34:03,880 --> 00:34:04,660
That's an excellent point.

800
00:34:04,840 --> 00:34:05,980
This was a great discussion.

801
00:34:06,400 --> 00:34:07,580
I don't know if you want to, but

802
00:34:07,580 --> 00:34:08,440
you're going to have to come back.

803
00:34:09,739 --> 00:34:10,120
Let me know.

804
00:34:10,480 --> 00:34:11,880
We barely scratched the surface.

805
00:34:12,260 --> 00:34:13,739
That was a great conversation.

806
00:34:13,920 --> 00:34:14,460
Thanks so much.

807
00:34:14,659 --> 00:34:16,560
We'll look forward to having you back and

808
00:34:16,560 --> 00:34:17,080
talk more.

809
00:34:17,739 --> 00:34:20,000
Until next time, everybody keeps driving for something

810
00:34:20,000 --> 00:34:20,340
more.

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Thank you for listening to Something More with

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00:34:23,719 --> 00:34:24,420
Chris Boyd.

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00:34:24,719 --> 00:34:26,880
Call us for help, whether it's for financial

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00:34:26,880 --> 00:34:30,800
planning or portfolio management, insurance concerns, or those

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00:34:30,800 --> 00:34:32,860
quality of life issues that make the money

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00:34:32,860 --> 00:34:33,960
matters matter.

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00:34:34,360 --> 00:34:37,600
Whatever's on your mind, visit us at somethingmorewithchrisboyd

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.com or call us toll free at 866

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00:34:40,780 --> 00:34:46,320
-771-8901 or send us your questions to

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00:34:46,320 --> 00:34:50,260
amr-info at wealthenhancement.com.

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00:34:50,699 --> 00:34:52,380
You're listening to Something More with Chris Boyd

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00:34:52,380 --> 00:34:53,239
Financial Talk Show.

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00:34:53,340 --> 00:34:55,840
Wealth Enhancement Advisory Services and Jay Christopher Boyd

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00:34:55,840 --> 00:34:58,160
provide investment advice on an individual basis to

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00:34:58,160 --> 00:34:58,700
clients only.

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00:34:58,860 --> 00:35:00,860
Proper advice depends on a complete analysis of

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00:35:00,860 --> 00:35:02,040
all facts and circumstances.

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00:35:02,280 --> 00:35:04,120
The information given on this program is general

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00:35:04,120 --> 00:35:06,180
financial comments and cannot be relied upon as

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00:35:06,180 --> 00:35:07,720
pertaining to your specific situation.

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Wealth Enhancement Group cannot guarantee that using the

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00:35:09,940 --> 00:35:11,940
information from this show will generate profits or

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00:35:11,940 --> 00:35:13,040
ensure freedom from loss.

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Listeners should consult their own financial advisors or

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00:35:15,400 --> 00:35:17,520
conduct their own due diligence before making any

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00:35:17,520 --> 00:35:18,220
financial decisions.