Wealth from Wisdom

Discover New Tax Loopholes

October 20, 2018
Wealth from Wisdom
Discover New Tax Loopholes
Chapters
Wealth from Wisdom
Discover New Tax Loopholes
Oct 20, 2018
Carson Wealth
Show Notes Transcript

Did you know there is a loophole in the 2018 tax plan that could save you a small fortune? Listen to this episode to learn how to save money while paying taxes.



Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and welfare wisdom with Ron Carson or for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an sec registered investment advisor,
Speaker 2:
0:30
Doug Morgan hit another all time records as much as $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 250 the skyrocketing cost of healthcare and retirement could now run 350,000
Speaker 3:
0:45
planning for retirement today is a whole new ball game. It's loaded with challenges, obstacles, and trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson. He check out these headlines from Time magazine. Here it is. A $2 trillion tax bill is coming due for baby boomers from market watch. You might need $350,000 to pay for health care and retirement and from the street headline, a bear market. dot.dot is coming. You might think everything's rosy with the economy and the stock market, but there is a perfect storm brewing on the horizon that could derail your retirement unless you take specific steps to protect yourself right now. Hey, welcome to welfare wisdom. I'm Paul West and we have a great show in tap for you today and make Oh us today as Jim Caldwell.
Speaker 3:
1:46
Jim, welcome to the show. Thanks Paul. Hey, glad to have you. You're a wealth advisor here for the wealth and wisdom radio network and like you said earlier today, let's just have a fun show and help educate the public and talk about a lot of different things. You know, one of the things that we're going to talk about is don't be fooled by this booming economy in really the stock market over the past decade. Yes, decade, that's 10 years, 2008 and the economic crisis seems like a lifetime ago and how we approach it. But really you're going to face more challenges in retirement than any previous generation. And you might be saying to yourself, come on Paul, is that really true? Well, we don't have a crystal ball perfectly for the future. What I can tell you is though, is we look at what's happening out there. There's several factors in play and don't think about just the market.
Speaker 3:
2:34
Think about this, and Jim, I think these are so important for people is so you're likely to live a lot longer than ever before. That is a big new challenge that people haven't considered to healthcare costs longterm care. They are enough to choke a horse. I mean, it is a crazy amount of that's going to happening and continue to rise. And while taxes are lower now than they've been in a long time, there's usually only one direction you can go up. Yeah, they're not going to go negative. The, the government's not going to pay US money for taxes, that's for sure. I don't ever see them getting rid of taxes on RMDS and those things. So we're really just getting started and I think it's critical for all of our listeners to prepare for these challenges now. So coming up on today's show, here's what we're going to talk about.
Speaker 3:
3:20
We're going to reveal seven challenges facing anyone retiring in the next several years and really those strategies to help protect yourself, including specific tax strategies. Yeah, tax strategies. I mean, I hate paying taxes. I don't know about you, Jim. Everybody does. And when we think about it, you could save a fortune on your Ira, your 401k and other retirement accounts if you didn't listen to last week's show. By the way, we spent a ton of time talking about taxes. It actually created the most amount of phone calls and inquiries from people wanting help. If you need that from us, we can still talk that over with you. Um, because it's really what people need help with. And Jim was so fun seeing all those inquiries come in because people don't want to pay any more taxes than they have to. Second, we're going to talk about a contrary and strategy for helping claim your social security benefits that will help yield thousands more for you and your retirement.
Speaker 3:
4:15
Plus we're gonna talk about how other people are successfully generating income in retirement today without betting the farm. So I'm excited to talk today, Jim. I think it's a fun for all of us. It's, it's fall weather. I want to get rid of this rain we've had and I'm sure many of the farmers out there in the field or certainly tired of this, they want to be done for the season and they're not able to. Um, and you know, that's how they make money. Um, and I think back, oh gosh, when I was growing up and I was reflecting on this actually it was driving my daughter to school or this week and you know, we were talking about making money and maybe I need to have her as a guest on the show. Sometimes she'd add some color to this show. Yeah. And it'd be fine because we were talking about what you do with money, but it made me think of back when you're a kid, how did you make money and allowance, cutting grass, shoveling snow, delivering newspapers, basic stuff.
Speaker 3:
5:10
Simple, simple, simple jobs. But how did you feel when you got that money? Especially Christmas time. All the Christmas tips I made. It was like, you know, kid in the candy shop, but you felt, you felt like the richest person in the world. I remember I was sitting on the corner or hot July Day, um, and putting up a lemonade stand and I made, I don't even remember the time, you know, you're charging a dime or whatever, a quarter at that time and you get, all of a sudden you get several dollars and you think you're the richest person in the world, but what it taught you how to do something, prepare. And then importantly maybe what life lesson you learned with what to do, your money. Do you go spend it, do you save it and all those things. And I think back to all of your listeners, like what was your first money you've ever had?
Speaker 3:
5:59
And for me, I remember lemonade stand. I remember, um, I, I would call it picking up sticks, you know, picking up sticks in the yards and for neighbors. Well, for neighbors, not for my own house. Um, but, uh, actually we had a huge walnut tree at my house. Gym. I mean in like you mentioned big walnuts. Those are brutal. They are heavy. But those little odd jobs, I know we've talked on the show, my first, I call it paid job where the wt wt but taxes came out. Actually I was a busboy for a local restaurant here in Omaha. Um, but I remember, you know, that money came in and I immediately began pushing it to another account because otherwise what am I going to do as a 15 year old spent on who knows what? Yeah,
Speaker 4:
6:46
well you know, and back then, I mean you didn't have a lot of overhead either. So if you're making $2 $5 $10 here and there, I mean you didn't have much going out the door and he definitely worth filing a tax return at that
Speaker 3:
6:57
point. No. So I mean, and for a lot of people, when you switch from thinking about that, you're just at that beginning stage of earnings. So you're going through what we'd like to call accumulation. You keep accumulating throughout your lifetime, but at some point you switch over to the distribution phase and that is pain yourself. You are now in charge of your own retirement paycheck. So what has to happen, and this is really challenged, number one, we're going to talk about in today's show, which is generating income. So how do you successfully generate income in your retirement? And right now, Jim, I mean, the markets are at all time highs. I mean, it's, um, you know, people who'd never got back in since 2008, well now if they're probably not going to get back in because they're too worried about the highs, interest rates are increasing. So that's a good thing for CD's and savings accounts. But it's funny, Jim, right? So the interest rate increase that goes up 25 basis points. So that's 0.2, 5%. Does that mean your bank account and your money market rate and your cvs and your savings go out pulling two, five?
Speaker 4:
8:04
They're not, they're not in proportion to that. Not at all.
Speaker 3:
8:06
Yeah. We're not going to go into that onto, to show, but I think our listeners are smart enough to understand who, who's often making money in those situations. That is the financial institutions, um, bond yields. Uh, they're, they're getting a little bit better, but you gotta be careful if you own a bond fund at the moment, be super careful. I'm owning individual bonds in a ladder is really the best way to do it. But also generating income since we are living longer than before, this is a huge impact. So let me share this stat with you. Jim 40. This is actually from market watch by the way. 40% of Americans are at risk of going broke in retirement. Wow. Four out of 10 do you think about, you go to a dinner party and there's 10 of you there for enough. 10 are at risk of going broke and it's not because of their investment decisions.
Speaker 3:
8:59
It's often because of their income decisions, what they're spending, but also how they're generating it. So let me give you an example. We get asked all the time to do what I like to call is, um, what do you think about this? And so earlier this week I got one of those calls, Paul, um, an existing person in Omaha is telling me that I should buy an annuity for income. And so I said, okay, well walk me through why and the big reason they want it is the stream of income. And I said, okay, let's walk through the following questions then yes, it absolutely can prepare a stream of income. But have you evaluated it versus everything? The answer was of course, no. I said, well, has the broker, not the advisory, but it has the broker talk to you about this. What are the annual costs of the annuity?
Speaker 3:
9:52
How much sales commission are they getting paid for doing this? And then what are the underlying investment management fees for all of the products inside of that annuity? And, and you know what the answer was across the other phone? Yeah. I have no idea. I don't know. And, Huh? What do you mean by that? Because people are confused. So you have to remember if you're doing an annuity, there is potential for huge high costs, sales commissions and management fees. And so you'd have to look at the pros and cons. But here, let's talk about taxes for a moment. I mean, do you realize there are situations, especially when you're using pretax income? Um, in an annuity is that, and by the way, your gains in the annuity, we're talking ordinary income taxes when this comes out. So if you're like, oh, this is great, I'm going to get $1,000 a month for my annuity, but then you're going to pay ordinary income taxes on this, you may only be getting $700, $750 all of a sudden, then is that that wise of an investment for you?
Speaker 3:
10:52
Plus you lose for liquidity in most situations too tied up for four to six to seven, nine years depending on the surrender schedule. Yeah. It's almost like you're, you're locked, you're in jail and that's Dan. Now your growth change. Yeah, they absolutely do. Um, and I think when we think about people going broke in retirement, it's because of decisions like that. So let's give them an example. January income thing. Oh yeah, in annuities, great. But what if an annuity doesn't have an inflation provision? Now you're getting that same $750 but it's the year 1998 versus 2018 versus 2028 and all a sudden the gallon and milk's gone from a dollar 99 to two 99 to three 99 and your costs continue to increase, but your income is remaining the same. I call that the, Oh, we got a problem because you didn't think about it. You thought about the level income stream and I don't disagree with a level income stream for the two factors.
Speaker 3:
11:50
People make huge, huge mistakes with annuities is not contemplating inflation and to not thinking about the tax ramifications that go with it. Do you know we talked about all the time whether we had, you know, cutting lawns like we talked about earlier, it's really not, you know what we collect for our money, but it's what we do with the money and how we approach it, right? Yes. Yeah. I mean, so how you, how do you get the most out of your social security? How are you getting the most out of your, your taxes in retirement? And we actually created for people. I think this is super interesting because it's personalized, is a personalized five step retirement action plan. How you could save thousands dollars in retirement, how to wring every nickel out of your retirement, how other people are generating it, so you can learn from them.
Speaker 3:
12:32
If you want one of these five step plans, give us a call. (888) 419-8513 you know, really if you're 50 to 55 plus, you better be talking to us about this right now. (888) 419-8513 it's an easy way for us to show you how you can maximize your income in retirement. You're listening to well from wisdom. How could you make your money go further in retirement? Learn how unwell from wisdom with their intelligent fame advisor, Ron Carson orbs, investment news, the Wall Street Journal and CNBC and more now back to well from wisdom with Barron's hall of Fame Advisor, Ron Carson, if you're retired or if you're even nearing retirement, this perfect storm of events is brewing on the horizon. Actually perfect storm. That was a great movie by the way. Um, and unless you take specific steps to protect yourself, now this could really decimate your entire life savings. Hey, welcome back to wealth from wisdom.
Speaker 3:
13:26
I'm Paul West and today we're talking about seven specific challenges that you'll face in retirement and how you can protect yourself. My coast today, Jim Caldwell, a wealth advisor here in the welfare wisdom radio network. And Jim has been fun sharing insights with you so far. But in this segment, here's what I think we should talk about is, you know, things are really good today. However, what are the financial consequences of retiring in a bear market? 2000 and 2008 are way past her memory. I heard someone on the show one time coin a phrase, I can't even remember what I had for breakfast. We'll certainly, you're not going to remember what happened 10 years ago and 18 years ago. So we have to help people avoid this retirement tax track that can really take away thousands of dollars. So let's talk about this retirement. And you're really, I mean, if you retire in a bear market, everyone thinks right now your money is going to go up.
Speaker 3:
14:19
So if you have $1 million or whatever number, you have a hundred thousand five hundred thousand five million, 10 million, whatever the number is. So imagine now it was 20% less. So you're $1 million, you're retired, you're so happy. And then the stock market drops 20% and your million dollars is 800,000 ouch. Yeah. How are you going to feel? Not very good. No, I think it's probably stronger. That panicked. Scared. I'm thinking you need to go back to work. Probably sleeping. Less. Drinking more water or combination. So yeah, our people do that and is just, I can't even imagine like if you retire again, I'm going to call it the wrong time or were shat. There's never, you never get to know what's going to happen, but what you can figure out is how do you, what are we like to call sequence your returns in retirement? Because how you do in those first five to 10 years of your retirement are critical.
Speaker 3:
15:20
So if you retire in a bear market, you gotta make sure you protect your downside in every way that you approach it. Um, because there's always going to be short term volatility. Um, well it's interesting, Jim, earlier this week we were talking a lot about this. So Scott Kirby, our chief investment officer was given his third quarter. Who's me, fourth quarter outlook, by the way. Can you believe when the fourth quarter? I can't believe it. I mean it's halfway through October, you know, on Monday. That's ridiculous. It is. Well, here's something I shared with our team and I think everyone looked at me like, I can't believe you said this. Paul, do you know we are 15 months away from 2020 2020? Isn't that crazy to say 2020, you know, the TV show, all of these books that were written back in the 19 hundreds about, oh, the two thousands, 2020, all of these things, space, Odyssey, you know, book.
Speaker 3:
16:13
I've been very famous while there, it was like, we're going to be there and it's like a blink of an eye. Um, lifetime's pass. And I started, we have to make important decisions and really make sure we protect ourselves. Cause you don't want to blink of an eye of you saying, you know what, the stock market is doing great. I'm just going to leave myself allocated the way it is. Or you know what, I, I built a great portfolio and I protected myself on the downside. But other people are making money right now because the market's gone up in 2018 should I do the same? I'm going to tell you, making that type of change is potentially the worst thing you can do because following the herd mentality is a mistake. You got to do what's right for you. And Jim, when we were talking about the markets earlier this week, um, and listening to this fourth quarter outlook, quarter three, I'm gonna use the word easy.
Speaker 3:
17:10
It was, there was no volatility. The market was actually up nicely if you are fully invested in the market. But there was just a lot of positive things. Corporate earnings were great. Trade deals with some countries were good. Um, inflation, you know, was remaining near target. And really the Fed did what they said they were going to do. So those were all negative or accuse me positive things. Now there were some negatives. Um, you know, valuations are super high at the moment. Um, trade with China, who knows, I flipped a coin. Yeah, roll, roll, roll some dice, whatever you ought to call it. And there's going to be heightened competition in the marketplace. Here's something to think about. So what happens next year if the, if the tax stimulus that's helping us so much this year is no longer such a benefit, forgot to pay more taxes, which people don't like to do or companies aren't going to reinvest and you're going to see, um, you know, some big implications for that.
Speaker 3:
18:12
Uh, and here, here's something I want to share. So how you value a business. And many times people value stocks at price to earnings. I mean, it's pretty common valuation technique. Um, and there's also one we monitor called price to sales in that price to sales ratio is back at the year 2000 levels. What happened in 2000 tech? bubble.com tech bubble burst. Why? Because we're people began buying things based on sales revenues versus earnings revenue. I don't know about you, but let's go back to the days of you cutting lawns. Me Picking up sticks, lemonade stand that if I, let's use the lemonade stand as an example. So I divide the lemonade now, supplied the water, the cups, all those things. And usually there was a, a treat, you know, like a little small cookie or something as an added bonus for them. Those were all my inventory costs, right?
Speaker 3:
19:09
Right. Well if I didn't make enough money back to pay those, then it was a negative situation. So, but let's say I sold $10 worth of lemonade, but it costs me $12 to get all the materials. I lose $2, right? So if I'm going to buy a business, why would I buy a business that's losing $2 probably not though. So the cash flow on that or price to earnings on that as a negative two, if we look at it in terms of negative two earnings, but the price of it is, I did $10 worth of sales. So should I put a value on that even though I sold $10? Does that mean it's worth something and it's just, it's something we really want to caution all of our listeners about today is be very careful of what those things look like in gym. You're probably seeing people who are making or wanting to make adjustments to their portfolios based on current market conditions.
Speaker 4:
20:03
Sure. I mean we've had a number of people come in lately. I mean when you look at some of the, the numbers since June of this year, you know, a 10% drop in commodity prices, a little bit weaker, housing weaken, autos, durable goods, those type of things. But people will come in and they've got, they've got investment scattered all over the map. They've got a thrift savings, they've got a four o one k, they've got Roth, they've got traditional Iras, they got him at three or four custodians. And the problem is there's so much overlap or uncertainty as to how much risk am I really taking. And if something does correct, is there any defense that strategies in place? So we've been working extremely hard in those areas.
Speaker 3:
20:42
Yeah. So help me through this. I mean I'll give you an example. Um, family was 58 years old talking to earlier this week and I would just call it, they had a very traditional, um, 70% of their investments in equities and 30% and other sources. So fixed income bonds if you, um, repeat alternatives, things like that. Um, and they wanted to turn the throttle up. So I think about turning your stove on you, you want to turn, uh, you know, they're really coasting that medium to medium, high heat. They wanted to turn it up in risk to hire. He because they wanted more inequities because they wanted more returns. And I showed them that if they did that, yeah, they could make an extra potentially two to 4% a year. However, on the downside, if the market moved down 20%, instead of only going down approximately 13, now they risk going down 17 or more.
Speaker 3:
21:49
And that was a big deal because I'm going to tell you this, everybody, everybody loves to make money. You know what? People love to do more, not lose money. People hate losing money. I think about, have you ever lost like a dollar bill and like a jeans pocket or around the house or in the washer dryer dryer or the worst thing is you find a $20 bill later in your wash jeans. Oh No, that's happy day. That's awesome. Gosh, I could have lost that too. Yeah, but how long will people spend looking for that? Five, 10 seconds. Oh No, I think longer than that. Yeah, I think, I think people spend probably not going to say minutes, almost hours. Like if you're looking for something that you lost, if you, if you thought you lost a $20 bill, you'd spend, I'm telling you, people will spend 10 minutes, 15 minutes, 20 minutes because it'll drive him crazy.
Speaker 3:
22:40
So why see you crawling around looking into Bob Mayor Carson, I'm digging around. Yeah, I'm looking forward. Absolutely. So, hey, it helps feed the parking meter and when the kids were younger, certainly helped pay video games. By the way. I went to a restaurant the other day and I can't believe now if you go to a game room at a restaurant, it's like a dollar to play a video game. Now they're high tech, but you know it's a different world on how that works. So what I hope people understand is, is that short term volatility should not, I'm going to call it lack thereof, should not influence your decision. Don't let that happen. You can actually, if people forget, let's just go back earlier this year. So the market started off great in January. Then all of a sudden about, I can't remember what the 20th 22nd 23rd 200 on there.
Speaker 3:
23:29
Yeah. From the end of January, really? Or the third week of January till the second week of February, the market declined 10%. People completely forget. I remember actually having conversations gym and was like, well, should we make changes? Should we do this? Should we do that? And people are getting fearful yet that's normal. We have those happen every 18 months. It's just we're operating in an environment where these things haven't happened in a long time. And I know last week show, you know, a record number of calls and people wanting to talk through their taxes. And we talked a lot about required minimum distributions. But again, remember if you had, remember I shared the story, like if you had $600,000 in your retirement and you're 72 that you're getting what um, lower 4%? Yeah, call it 20, I think it was like 24,000 or 25, I can't remember exact number that you are getting.
Speaker 3:
24:21
Exactly. But now imagine your 600,000 went to 500,000. So instead of getting 24,000, you're only getting 18 or 20,000. And now, so imagine you have to get these RMDS, then you have to take them out of your account. But because it's a bear market, you now have to sell your investments when the markets are down. That's like a double whammy. And now you've got taxes, you got your investment incomes declining. And really what you're doing is you're actually hurting yourself. And what we want to show people and what a lot of people learned last week is there is a way to do this tax reduction analysis we want to show you. So again, if you're 55 or older, you're getting close to retirement. We can show you this tax reduction analysis, (888) 419-8513 if you're that type of person who wants to make sure you get the most of every dollar and pay less to Uncle Sam, (888) 419-8513 (888) 419-8513 I'm Paul West and you're listening to Wellframe wisdom,
Speaker 5:
25:18
trust, transparency, accountability. These are the values that drive Ron Carson and Carson wealth. You're listening to wealth from wisdom with their install. A theme advisor, Ron Carson, he's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Famer Advisor, Ron Carson. Hey, I've got some unsettling news for you.
Speaker 3:
25:44
You could face more challenges in retirement than any previous generation. And I'm talking really to all of you over the age of 40 and those are under the age of 40 we don't even know yet what that's gonna look like. But you're likely going to live much longer than you ever think when there are traditional ways of generating income, the in your mind. But guess what? Those are dead. Just like going to blockbuster video, right? That doesn't happen anymore. You go to Netflix, you go to Amazon, and there's probably going to be other ways we do it that we don't even know about yet that are going to happen. And taxes are certainly low now, but there's only one direction they're going to go. And that's up. And that's going to happen at some point in the future. And these are just some of the things that are going to get us started.
Speaker 3:
26:27
So as we think about this, and hey, by the way, I'm Paul West and you're listening to the wild from wisdom radio network. And today we've been focusing on seven specific challenges you're gonna face in retirement and really how you can protect in yourself in this segment. We're going to keep talking about those. And one of them is not planning for really this skyrocketing cost of healthcare and longterm care and MCOs. Today's Jim Caldwell and Jim, I mean there's one thing for sure. Healthcare is going to continue to go up and at some point every family tends to run into a health issue with you, your spouse, a parent, a child. And what we have to make sure is this doesn't turn into a financial catastrophe. So let me give you real numbers here. So for the average 65 year olds, if you're listening right now, you're below 65.
Speaker 3:
27:11
Think about when you are, if you are, you're going to hit this on nose. And if you're above it, think about how much money have you actually spent on healthcare. And they now say the latest estimates are the average 65 year old couple retiring today is going to spend more than $400,000 between healthcare premiums, um, medicare, all of these things, supplemental insurance, deductibles, copays, have you put away 400,000 for retirement listers? If you haven't, how are you going to earmark it? And what does that look like? And Yeah, and most people think Medicare will help cover the majority of your costs, but actually Voya has tracked this and they share that they only, medicare only covers actually about 60% of all retirement health costs, 60% and that's why you got to make sure you have the right plan in place. And One of those is with longterm care.
Speaker 3:
28:08
So, I mean, if you're in the fifties if you haven't talked to someone about longterm care and by someone who is a fiduciary that can help you out and not try to sell you something in case you don't need it, you better talk to him. Again, if you're in 50 to 60 such a prime time to be talking about that with an advisor, if you want our help or somebody has proposed it to you and you just want a complimentary second opinion, you can always email us@infoatcarsonwealth.com we're happy to help provide you a second opinion to make sure your people are doing what's right for you and what they're recommending. The Gym. I mean, I'm sure you address this all the time. People approaching this longterm care decision and what's right or wrong for them because the average cost, I mean it's staggering.
Speaker 4:
28:48
Yeah. What we see is people are in denial. It's like, Nah, it's never going to happen to me. I mean, I'm not going to end up in a home or the wife says, I'll take care of my husband. Husband says, I'll take care of the wife. And I've seen that in real life. That doesn't work either. Okay. So I'll give you a feel good story. So good household I've been working with for 10 years, husband and wife, they have plenty of cash flow, plenty of retirement, everything's looking really pretty. Husband doesn't ever want to retire. He's in his seventies still working just because he loves to work. But he always had this one insurance policy that we couldn't really figure out what to move the money out of their four. Okay. And when we talk about insurance or longterm care, you could just see he just wasn't interested in hearing that. And then all of a sudden we presented that wealth plan to him and he saw how all the dots connected and he brought it up. He says, I think it's time to do something with this chunk of money. What do you suggest? And we were able to, on a tax advantage basis, Paul move that money out of there into a combination hybrid longterm care insurance contract and kind of fill in some sand in that sandbox for him.
Speaker 3:
29:56
So wait a minute. So someone had a preconceived notion then? Absolutely not. Absolutely not. Absolutely not.
Speaker 4:
30:02
Right. He didn't see himself ever needing that type of help in his latter years.
Speaker 3:
30:09
Yeah. And so what, what was it that changed? And I'm fascinated by this because I think a lot of us, you know, um, black of better analogies here, dig our heels in and you know, just say, hey, we're not budging because we've got this, I call it this block bias in our brain that, oh, I'm not going to do that. No, no, no, no. Don't bring it up. That's, that's immovable. I call it.
Speaker 4:
30:30
Well, a part of it was when his wife wrapped her hands around his throat to get his attention. That was a, that was a real compelling moment. Okay. And she's a tough woman, but I think it was the fact that he did look at all the assets. He did review the wealth plan that we put together for him. And he saw things that he never saw before because he never had a plan. And now he saw where the potential problems could be. And she recognized that. And helped with that decision process.
Speaker 3:
30:56
Yeah. And I would say Jim people, when they see the real number, so like, and I tell everyone, you know, on the show, I mean this could be $60,000 a year. It could be a hundred thousand plus if you want a private room in the nicest facility and you're like, oh great Paul, that's the number. That's not going to impact me. But if you haven't been to a facility in a while, you should because there's a big difference. And by the way, you know, bless all the hearts and souls of our healthcare providers because what they do is so important. Um, I don't do it. I just, I, I just thank them so much for everything they do and they need to get paid. I mean, it's not easy and I think we've all seen, I know you're going through with your family, Jim, I have with mine is when you're taking care of your parents, um, or somebody younger and you gotta take care of your grandparents and those things is you want the best for them.
Speaker 3:
31:47
And there's things you can do now to make sure that if life happens, I mean again, why do you buy, okay, you're listener right now, you're, you're, you have children under the age of 18 why do you buy life insurance? Inexpensive at this point. But what do you really, what's the emotion you're trying to look for? Just trying to take care of them. Yeah. You, you on. If something bad happens to you, you want to make sure they're well taken care of. I mean the end of the day is like no one wants to picture us not being on this earth. But I think about Jim, I got three children all under the age of 18th excuse me, 18 I can't say that word. That is, if I wasn't here, I got to know and I can't sleep at night unless I know that if something happened to me that they are all well protected, that they all can go to school and go to college and have a roof over their head and have food on the table and not have all of those worries. And it's, if I wouldn't, so you know what my least favorite be word is in the English language that is busy. Everyone lets their life be busy. But going and taking care of those things are so critical because when you get to retirement, you gotta make sure you plan these things out. And I was thinking about this, this is off off topic, but Jim, I was thinking, do you think people actually when they get to retirement, want to work and want to keep working?
Speaker 4:
33:08
I think it's a mixed bag. I think there's some people that have been, like you would say then working at the lemonade stands since they were eight, nine years old and they don't know any different. But on the other hand, maybe it's just out of the fact that, hey, what else would I do? They've worked so hard all their life that, you know, I think if they had their preference they'd say, I'd rather just hang it up and, and chill out and have fun.
Speaker 3:
33:28
Yeah, I think so too. Um, and it was interesting. So if I asked you, when people get to retirement, do they spend less, do they spend the same or do they spend more?
Speaker 4:
33:39
Initially they're going to spend more because I for, I've seen it where people, they want to go enjoy themselves. They want to eat that whole apple pie instead of one piece at a time, so to speak. But when they get a little older, like in their eighties they slow down a little bit. They know you don't want to move, move, move, go, go, go all the time. So spend more early and then spend less as you get into it, into
Speaker 3:
34:00
your eighties yeah. Interesting. So I say when you ask most people if they're gonna spend less, more the same, everybody tends to be an oval, spend less or we'll spend the same. Very few people say more. But what the evidence shows us is, and I mean, I hope everyone gets us, is, is you do spend more than those first couple of years. Number one reason why boredom. So you don't know what else to do. So what do you do? Go out to dinner, go out to lunch, go out to breakfast to travel. And by the way, I recommend you travel more. I recommend you spend more money those first couple of years. Go enjoy it. But there's another important reason why to do this, and I bet most of your financial advisors never talked to you about this, but I'm going to, and this is what we do on wall from wisdom.
Speaker 3:
34:44
Important reason for you to do that is I don't want your brain to turn to mush and retirement. I want you involved. I want you doing stuff that you enjoy. Volunteer. Maybe it's a part time job, maybe it's going back and taking a class. Maybe it's learning about Microsoft Excel. I don't know what it is, but actually there is, again, there's studies out there that show that people that keep some form of involvement from a cognitive perspective, and I was reading about this on brain trap is they have an actual more likelihood for longer longevity because of that involvement. And as we think about those things, it's how we help people. So as you look at your life, those are the types of decisions that are important and if you want someone to evaluate where you are at the step in the process, feel free to give us a call. (888) 419-8513 again, if you're 50 and above and you need this long term care situation reviewed and your retirement planning to make sure you're in the right pathway here, give us a call. (888) 419-8513
Speaker 5:
35:50
you're listening to well from wisdom. He seemed good times and bad times and he's got the gray hair to prove it. You're listening to wealth from wisdom with their install. The same advisor. Yeah,
Speaker 4:
35:59
Rod Carson.
Speaker 5:
36:00
Is it possible you could pick fewer taxes in retirement and keep this money for yourself? You could learn right here and right now. Unwelcome wisdom with bear and tall of boom advisor Ron Carson. Hey, according to Time magazine,
Speaker 3:
36:15
trillion dollar tax bill is coming due for baby boomers for Marketwatch said you might need $350,000 to pay for healthcare and retirement and from the street a bear market is coming. Hey, you might think everything is rosy right now with the economy and with the stock market, but there really is a perfect storm brewing on the horizon that could totally derail your retirement in the years to come. Hey, welcome back to wealth wisdom. I'm Paul West with my cohost Jim Caldwell and today we continue to talk about all of these challenges we're facing and retirement and how you could really protect yourself. So in this last segment we're going to talk about really longevity and how it impacts you and what you should be thinking about. And Jim, we, you know, we were just wrapping up the segment. We've got cut off on time. There is about, you know, when you get to retirement, don't let your brain turn to mush. And I thought you shared a really interesting story. I'd love you to share with our listeners here.
Speaker 4:
37:11
Sure, Paula. It. My Dad was a professor at Ohio state, so 30 plus. I thought you're always have to call it the Ohio state, Ohio state. Just Ohio state. Every once in a while I slip. Uh, so they had to have a good football team in the heart. They're decent right now. We'll see how well they do. Six weeks. All right. Remember the old saying it's, it's the games that you remember or played in November. So we haven't gotten quite there yet. I'm not worried about that for Nebraska football. So they're going to be fun someday. They're going to be fine. Um, but no. So Dad and about 15 of his other co professors had an opportunity for an early buyout and they all took it. And of the number of people that took the buyout, there's only two alive today and there's really only been two alive for, I think my dad said the last five plus years because he and the other guy kept moving. They both opened up consulting businesses. They kept doing things, they kept reading, they kept and join. The other ones just went home. It's sat in front of the TV and they eventually did make it. There was nothing for them to do, nothing to stimulate them and they passed away.
Speaker 3:
38:15
Wow. That's, I mean it's, it's such an interesting thing. And by the way, I'm, I, I don't think what you're saying there, Jim, is hey, don't go home and veg out sitting by, watch TV and take time. But at the end, I think what we're trying to tell people is find a passion. Find an activity, find something. It doesn't have to be a lot. I can be reading. Um, but don't let it be. Um, I call it sucked into the whirlwind. A, you're letting news be pushed to you. Cause what does news push stories, drama, headlines, drama. Trump of course was here in the metro area earlier this week. And the story, first story I saw on the news was altercation between people outside the mid America Center over in council bluffs. It wasn't about the story or the messaging, it was about selling viewership and clicks and things like this.
Speaker 3:
39:08
And that doesn't necessarily help in retirement because that's, that's sucking those negative energies. And, well, we also see is the positive things that go with this. And by the way, I, I got to share this story. So I'm reading this new book right now and it is super fascinating to me and it's called the power of moments. And in it they shared a story. And so I, I got to share this here with our listeners and with you, so you're not prepared for this. So this is good. I always loved doing this with you. I'll show. So Los Angeles, California, very popular place to take a family for a vacation. Right? Or take anyone to go visit, you know, of course, you know Holly Tinseltown yeah, well I traffic's a whole another story. So what's interesting is if you think about iconic hotels in the city of La, so you think about Bel is one that comes to mind.
Speaker 3:
40:01
Um, the four seasons at Beverly Hills. Um, you know, there's Ritz is all these places, but actually if you go to trip advisor, the number one ranked hotel was, I don't know if it still is, but in this book it was at the time it was written a couple of years ago was a place called the Magic Castle hotel. You ever heard of it? Never heard of that. It sounds like it's on the Disney property. First thing came to mind. Well guess what? It's not. And so if you go look at it and I Google that, if you go look at like the pictures of the hotel, it's actually not anything you'd look at and say, Ooh, that doesn't, that doesn't look like the top rated hotel in a city that has more money and wealth and glamor and glitzy and tinsel and all about being seen than you would ever imagine.
Speaker 3:
40:51
But you know what they figured out at this hotel, how to make people feel good. So they don't have a big pool, but they promote families. But you know what they have at this pool and I think is interesting. And I share this with you, Jim, because I know you've shared on the show, you're a huge fan of Disney and the Disney properties and how they take care of people experience. And you know what this place has though. They have a little red hand phone there that you can go pick up and somebody on their line answers it. Hi, this is the popsicle hotline and you can order a popsicle comes out to you, you know, grape or cherry or whatever flavor you want and somebody comes out and white gloves and a silver platter and delivers you a popsicle for free. I like that.
Speaker 3:
41:39
Think about that experience and what you remember and you can go do order other things. And what do they do? They come out to you for free, but now you're having an experience and you're less concerned that, oh well my hotel rooms, you know, granite countertops aren't the best, or the shower pressure is not the best. Or you know what? This pool isn't the nicest pool I've ever seen. And you walk away from that experience. Uh, how cool is that? I got to pick up this red phone and call and somebody brought me out a popsicle wearing white gloves and giving it to me. And by the way, they knew who I was and answered those things. And what this book shares with you, his moment matter in life. So as I think about you going into retirement, think also about how are you building those moments, that extra trip with your grandkids and it doesn't get in, have to be out of town where you spend money, let us moment you go to the park with them or the moment to go tailgate at a husker football game or whatever those things are. And I love the concept of the popsicle hotline because it's how you make people feel and you know people are going to be living for a long time. And so you got to make sure you've set the right timeline for yourself and how you approach it. Because there are actually, and this number's fascinated to be too, if you can't tell, we love statistics here.
Speaker 3:
42:57
I do. So there are 450,000 people in the world today that are a hundred or older, 450,000 yeah. Imagine what that number is going to look like in 20 to 30 years. So now think about if you retire five to 10 years sooner than expected value. We actually see if somebody picks a retirement date, we actually see of 65, 67, whatever the number is, 50. Um, they actually ended up going two years earlier because of health or some other reason why it's now if you retire earlier and you live longer, I don't know about you but you better have a certainly a well done game plan in place. Otherwise you're risking disaster.
Speaker 4:
43:41
That's true. I agree with that. I mean we just saw it the other day. We were doing a plan and the people came in and they were chatting and we found out that the wife who's 10 years difference of the husband felt like she was going to live to a hundred and we do usually do the plan out to 85 for the husband, 90 for the wife, Norma. That's how it works out. So we were able to go in and readjust those numbers and take her all the way to a hundred and to look at the look on her face of relief cause she has flat out soul of Paul that she's going to make it to a hundred.
Speaker 3:
44:11
Yeah, that's good though. I mean I'm, I'm sure she will. I she keeps doing things the right way. I mean Jim, that's one end of the spectrum, you know, to make sure you're prepared. The other is don't let life catch you by surprise. Um, I shared, you know, unfortunately last week I went to a 47 year olds funeral. It's sad. It's, I don't like doing those things that we just, my prayers and thoughts with the family but also helped again for me, put my life in perspective. Have I done the right things? Have I done the right things for our clients? Especially if you're listening right now, you're in your thirties and forties. If you haven't, you really should give us a call. Eight eight eight four one nine 85, 13. You are going to feel so confident about your financial life. If you have a plan together and if you're in 50s and 60s we'll help talk to you about your retirement game plan and making sure that longevity, are you going to make it to a hundred or if you have to go into longterm care, then are you really structured in the right way to make that happen?
Speaker 3:
45:08
(888) 419-8513 hey, on Paul West with Jim Caldwell. Enjoy chatting with everybody this week and we'll talk to you again soon.
Speaker 5:
45:16
Risk social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of Fame Advisor Ron Carson.
Speaker 1:
45:29
Okay, and here's the legal Mumbo jumbo. The opinions voiced and wealth from wisdom with Rod Carson or for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly investing involves risk, including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CW m L L C an SEC registered investment advisor.
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