Common Sense Retiremet 1-20

Common Sense Retirement Planning
Saturday, January 20th

Common Sense Retirement Planning


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Welcome. To common sense retirement planning this is Phillip island with Rebecca king case. Our partner Tony dale is taking a needed vacation day today so we'll be with you for the next hour. Cut thomas' retirement planning where your alternative to the mainstream financial press. A lot of times there's an agenda with what you see in which is the happy talk from Wall Street. And while we try to do is show you the best ways to retire with peace of mind in not arise this Wall Street rollercoaster. Now Wall Street has had a year. That for the books and we we need those up piers we need those appears to get the kind of rate of return that we won't. But we have to understand that what goes up must come down and we need to be careful. In retirement you're gonna face probably three to five. Big bear markets over that time. And if your retirement plan isn't designed to handle those bear market cheating completely destroyer retirement plan you could run out of money in retirement. And economist at retirement planning our whole focus is to make sure that. You don't run out of money in retirement that your protected from inflation. That we passed the money on two year heirs with the most tax efficient manner possible. That we make sure that everything in the retirement. Cross AS is to give you peace of land so you can enjoy. The good things that god has given you because of your hard work. Now every week we try to give wisdom from the most important. Thing in the world and that's wisdom from the Bible. And today Rebecca is going to give us enforce. I AM in this actually is a pamphlet that we have here that we would love to share. What our listeners who can meant to siesta commented retirement claiming it is they paint whether it be great to using your Sunday school classes. And he's just in your you're general church services it's a good reminder of what the Bible says about money and that's actually the name of the pamphlet. This specific verse deals with monies faults promises. Files promise of power. Don't be afraid for I am with he don't be discouraged. Or I AM your guy at. Our strength and human help here. I will hold you up with my righteous hate and and felt that from Isaiah 41. And spurred. How many of you have children and the children they're not bashful about asking you for things. And you don't mind given on the things that would be good for them and the lower it's no different out of Matthew 7-Eleven. It says if you ban who are senators know how to give good gifts to your children. How much more or your father in heaven give good things to those who asking him. Now he's not winning TV things that would virtue but if you're asking for good things. God delights in giving the news to you but you have to ask. You know it would be a good practices before your. Feet hit the ground that you would pray to your father and thank him for the good things he has given you asking for the things you need. And he will go with you and protect you all day long. Today we wanna look at some uninteresting things that are going on in the news well. One thing this very dear to rainbow here is General Electric we have that gas turbine division. And its interest Dane. For the past thirty years GD has been the blue chip of blue chip stocks. And now their head in a rough patch and I hope that they can work this out but there actually you know. Talking about. Even breaking that company if necessary. Out of Wednesday's Wall Street Journal. I headlines GE puts a break up on the table. Says General Electric is considering breaking itself apart a dramatic move that would mark the end of one of the oldest and largest US conglomerates. The 125 year old business which was once the most valuable he US company and still employs about 300000 people sells everything from airplane engines. The hospital incubators. But in the past year the company came. To embody America's industrial power has fallen on hard times prompting it to change CEOs. Sell assets and slash its dividend despite these news G has struggled to reassure shareholders that it has addressed this problem. And GE shares are down 40%. In the past year and that's the part I want a key off. Probably gee he will work out its woes they if they could even spin off some of their companies but there's really nothing wrong necessarily would geez model. But she could have a company that just gets itself into a band or has at the wrong CEO. Rebecca won a math. Favorite sayings from Warren Buffett he was that giving people he has philosophy of who do investing in. And he said he likes to investing companies that their product. Is so simple. And so universally. Needed about people. That everyone needs it and an idiot. Could run the company he he said McCall sooner or later. One will. What sounds like one is some instant and there are already this far is the way the dividends are looking at now. And a 40% dividend reduction pillaged the clear was in 2017. I wasn't a 40% dividend reduction it was a 40% drop in their stock price so if you had a hundred in nine and I've. Say there should just give an example say you had a hundred dollar share of General Electric and we NF last year it would wind down to sixty dollars a share you would have lost 40% of your minding. And on top of that they did slash their dividend. Over 40%. Now that's a good lesson CDs are in you say it was a 125. Year old company. A 145. Year old company will have on clients command if elected because there in blue chip stocks such as a GE. At their portfolios invincible the KG he's been around for a 125 years well. Obviously they're not obviously they're not and it's one that's a hard lesson to learn to me what happens. In a situation where you have someone and it will its GB. That is heavily invested in GE stock kind of and that's about that in terms of people like Obama good old boy and will be only and I'm a corporate guy I'm going to be hauling him IG stock. Well that was a 40% reduction. In the value of their GE stock coordinated. Well there's a couple lessons here. GE is almost like a mutual fund in his say often that they are conglomerate where they have all these different areas and in well and you have employees like you're saying that. Put their money NG stocky get warm Fuzzy feelings because you work there you know it's a good operation. But. There's there's several lessons here that we wanted to or let's talk about what you were saying Rebecca. One is is not good to have most of your savings especially in one stopped right. Because. We do need the example after remember Enron. And those people had all their money in Enron stock. And everything look good ride up to the point you quit looking good Enron went out of business she's not that situation. But isn't it interesting that she have a company that messenger I don't think anything's gonna happen to GM the long run. But you can still have a massive decline in the stock price well. GMA. GE and bold blue fine but she could do have destroyed your life saving. Well in that city here at a point where you have someone here is in this is exactly what we're talking about animal we sort of one of flash rant about. Is just a word of caution for any sort of did back in and look at the overall picture. For someone who is close to retirement who has maybe an unbalanced portfolio fil a with the majority of their stocks in EG. A meet there this is co meaning they have a majority if they're stocking G the question then becomes. I don't wanna sell at 40% and also like what do what do what do I got away port come back and William retired now. Well you work another five years. But and we're talking about one star so I don't I don't work energy and not the same thing can happen signing ideology with the absolute with the overall stock market and your 401K. You know the US economy could do findings could eat it could take advantage of what trump is doing it we could see a rebirth in the economy and steal the market correct. When you get close to retirement. You get past 59 and a half you need to start concentrating on aborting the losses. More than getting every bit of the game and I know that's been hard last year this phone most feared missing out. Say man that did well last year. Well there's got to be a point that you lock in those gains this couple ways to do their Rebecca and we can go into some detail but if you're 59 and a half. You ought to look as what's called a 59 and a half in service rollover. You can take the money that senior 401K. And move it. To a retirement plan outside. Without any there's no tax consequences of moving from the 401K to the IRA. And they and if you still work there are few more years he can still contribute your 401K. Still get the match. But you can lock in all those gains and a real retirement plan. We wanna show you how to do that. The way to do that is give us a Holler 1806876768180687676. Say. You can look us up on the web at CE SRP dot end. Like to say to we are not the naysayers. In our approach to your retirement in creating what we have discussed many times when our break or retirement income generator. And not only do we think it's a good idea we're gonna unpack a couple articles here worsen legislation is being passed. To allow re type of investments to be allowed inside of your 401K. There are other planes out there that makes is to a whole lot more people and Ph.D.s. As economics and as. MIT. He's had moderates and economics and so forth by Robert merton specifically. My point is I would miss wholesale countered student Philip wee you know people talk a lot about the three legged stool. Well when you're basically living expenses covered with guaranteed money or covered and what we the caller ray can. Let's take some risk. Let's look at with a smaller portion of your portfolio we can still have a portfolio were wreaking capture. All of the up for the market in all of that down at the market and that's what we were proposed T. Get your basic living expenses covered with guaranteed money and if you wanna Everest portfolio hallelujah. We work talking earlier Philip and I won it say we had sex interest in conversation earlier we're talking about. Every appropriation. Of fines and this was something that was on Fox Business that we got into some detail about earlier. I wanted to unpack that with our listeners and I think it's incredibly interesting we talk about capture form. And the fact of possible having an infusion. Of capital from overseas coming back into the United States I saw an article. Earlier in the week that said be prepared for a 500 billion dollar bond buyback. That was in Bloomberg what does that mean for people in their 401 case. Well right now. When you read Alan Greenspan before the 2001. Into a melt down. Talked about irrational exuberance. Right now Alan Greenspan's latest irrational exuberance statement came from the bond portfolio because interest rates are so low. And there's nowhere for bonds to go but. But if this money starts coming back into the United States they're gonna have to do something with it and it looks like what they're gonna do a lot of his Bob back there. You know call their bonds they're going to. Bob back their own stock now buying back their own stock may be good for those a great at the shareholder that market temporarily. Vote. What trump wants on the news but in a resurgent development and that kind of thing any coaches to grow the economy. There are so many things afoot right now. And the market is it thirteen year high. Overpriced by anybody's standards so we need to be careful right now because. You're talking about things that are counter intuitive and we were talking earlier. When you're young you've got a lot of time right so you can take a lot of risk with your money you were telling me. And that's what and that's the truth you know you can be more aggressive because you have a thirty year time horizon. But people think because they've got a thirty year possible retirement that they can be very risky with their money in bad and that's not the case. This it's an it's an interesting idea. What you just pig book is it is counter intuitive. Well that's because people don't realize things have changed we always talk about there's a difference between an investment plan in a retirement plan. And in retirement if you have a big drop in the early years of your retirement. Then backing completely destroyed the retirement and you think about it when your young the one thing you don't have as a lot of money. You know this oh so if you've got a thousand dollars in your 401K and there's a big drop me an idea how much can you lose. But when you retire you have a million dollars. And you have the same 50% will also when you were thirty at least 500 dollars and when your 65 release 500000. And he say. I need you another example of how things change between an investment plan and a retirement plan. We've all heard of dollar cost averaging if you will put in the same amount every month if you save a hundred dollars and are safe a thousand dollars a month. If the markets peeled back. Fewer shares. If the markets down you'll buy more shares well you should bow low and so El Paso that's a good thing we wanna buy our shares mostly. When their load. Wolves putting in the same amount of moms in a fluctuating market means when it's PO box sure if you were shares and when it's down you'll buy more. And that. Allows you to buy into the market over a long period of time at a lower net cost which would Jews share returns and that's a fact. The dollar cost averaging. Is a great help while you're in the accumulation stage of your retirement. But what people don't realize is that same fluctuating market when you start to retire nagger taking about a thousand dollars a month to pay your bills or whatever. The exact opposite happens when the markets down you having to liquidate a lot of shares shifted to get that thousand dollars. And what happens is the same advantage that dollar cost averaging years do you want your accumulating money becomes a detriment to you. When you start spending the money. But what we find he has that Rebecca is that the typical financial advisor. Takes people into retirement. With an investment plan. Not realizing that the rules have changed that we've got to avoid the losses that we warning you know we don't want all the up and all the damn we want some of the and none of the Dow we've got to stabilize the portfolio. Once we start taking withdrawals we wanna try to get. Some kind of income guarantee where you came out live the money we've got to protect them money from inflation. So the rules changed but a lot of times the plans down. And that's a recipe for failure that's why people are running out of money teen years father before they back. Have people all the towns and uninterested in leaving an inheritance to my children. And when we look at their plan it looks like they're gonna run out about five of money five years before they done. The biggest thing you can do for your children is make sure you don't run out of money and we showed you and it comes at retirement planning Rebecca Tony. The whole team will show you how to not Alley of those retirement savings how to pass it on your children. With the most tax efficient manner possible. How to get the best tax advantage we can with that we show you how to keep that payment adjusted for inflation so that. I knew about the same amount of groceries and is not eating away with your purchasing power if you wanna know more about that you give us a call 180687. 6768180687676. Say. Early this it's the SRP. Dot info. When you go onto the website W me the good looking gas. So it's easier than a month my mustache has her own it grown in as much as George sort of a combination of Matt Dillon had no idea. It is keep a list yes. Your dog and a second ago about go in Peru Indian group. And that really. Sort of imagining that with a 401K when you only had a thousand dollars and near their 2.0 wanna make that number one back in 2008. My daughter Hayley is now nine and was. She was six weeks old Ian has been mocked and it was in February he walked in the end. In the middle of the day an ass of what do you do in here he said I just got laid off. And I just got laid off so we were about an employee. In Roswell an alien that and had a six week old baby and I thought great winning and they now. Yeah slightly at any money. Says I do me any good mother would do. In Prague full so I of course did not ask my parents for any money but what I did instead was a wit to Craig's list you know I didn't want to I started sell on the but he sent furniture and so our coffee table and so -- our kitchen table he would come home from Avery de Paoli gana. Job mowing grass that a golf course talk about due in the united humility checker he went from being an executive among grass on golf course. A baby's daddy and mommy's Getty. They came home one day he siege you have got chief stopped passing quiet he sits not sell everything we know heading angle at the end tables were gone. We had a couch. And we ate dinner on the couch is I had sold everything else and they Toms were very hard but. If we had to I had money stashed away in emergency five and and clay and better for a day saying simply and for our rainy day that would put this in a better position. I won a flip for a second because you may comment that it when you're 65 and you've got a million. It appeared to being younger and have a thousand. What we change perspectives on that for just a moment. What is your 65. And you only had a thousand and you read positioned the millions. Into a place where it's safe. And you can allocate in such a way that no matter what you do you're never gonna lose money to try to get highest rate of return inside the seller protection and never losing adopt. What you're able to be more risky with that for a one K because it is only a thousand dollars it is only a small amount. Is it not a novel idea doesn't that page against. Debt portfolio giving an allocation of more risk diversification. Without that opportunity of losing your bottom in the market. Well. What we see a lot of times in 2008 people also much money. Then what they did was they just moved it to the money market had been they're just 2000 NA getting 1% greater return. Well they calls they in the 401K their only alternative was to either billion stocks and wrist this massive downside right. And so they erect badly damaged them sales because they never got back into this market. What they did know was there are alternatives where you can. Have a principal guarantee. And yet track the ups out of the market. It is actually. Since 2000 you'd have made more money getting. Half of the S&P and none of the S&P down then you would have getting all the S&P and all the S&P down. What you need to understand is we have ways for you to protect your money. And we don't mind you generous portfolio and we can give you a very good risk portfolio. On an addictive but. You need to make sure that is Rebecca said earlier those basic living expenses need to be covered with guaranteed money and we want to get the best rate of return we can't. But we found Rebecca that people have all their money your risk every year and if they mess up with that. They've got it all at risk in your risk and position a sharp and hard under an overpass one of these days you don't wanna be cell on the furniture Rauf is one thing so on the furniture off when you're young couple calls. You know I was always tickled when I got to keep the system perjure to our whole year I haven't played. And up you know to a pawnshop are mirror the first time I kept a pistol for a whole year I have an opponent to military town that let you don't want that to be happening when your 85 years old. So be careful with your one life savings and right now if you have all your money your risk enjoying this market. You have a chance to lock in those games you give us a call 180687676. Say. 180687676. Say. You look this up on the witness CS RP dot info Rebecca give an idea what it's like to come in and talk to us. Well it's a pleasurable experience RI director of first impression so will he view that big smile when you come man you'll definitely laugh you'll feel comfortable. And you'll hear some ideas that don't sound like everybody else I think one of the things that people like about us is we don't sound like everybody else number one the numbers you. If you are worried about a market corrections. And you're worried that you're taking too much risk with your money we're gonna look at to contract but we're not gonna look at you like you're crazy. You'll be among friends. That believe in that same ideology Asian inched toward retirement. We want you to have a successful retirement and arrow waste to be safe with your money and to still make money. And we would love to spanned some comedy going over all the different ways that weekend. Make your portfolio safe. Keep the peace of mind in retirement and she you may even catch Tony Sherman the guitar in the office hurting us all and. If you're lucky if your lucky you give us a Holler 180687676. Say. 180687676. Say. Lucas up on the way and at CS RP. Dot info. And you've got to be proactive. Lucas and we'll see you after the break. Welcome back to common sense retirement plans and this is Philip balance and today I'm here with Rebecca king Cade. Tony dale is taking in needed vacation day and will be back with us next week and we miss him. Tony's the one with all the radio and television background and I think I'm just the color commentator despite looking at a smokestack or something to say the weather spending. He probably he has he. Up there and Tron is probably the real. You say last week. If you look at the way if they split up our turn to delay after doing a circle over the fire that means is gonna rain. Well what have come to find out about Tony is he still knew this. And he's finished it turns out it. Well the weather stuff I just about need like. A legend because I have no idea what half a what he says means. We. A common sense retirement planning we your alternative to the mainstream financial Chris we specialize. In. Taking your one life savings in making sure that that money last as long as you and your wife and that's an important thing too we see a lot of retirement plans. Then my last as long as the husband or the wife says but the spouse is just. Out of luck. Analysts that it's okay that is a conversation let me tell you and you read. Not good not I had a lady don't have a harder time did oust good heaven she's now all right that's our dropper to even every night. There isn't another sayings and howl when you do stuff and about it rather than waiting but may indeed. I thought please don't hit may adding do it I'm just telling you what you have different. In retirement you have to plan for a long line of Dino might have to plan for a long line because none of us know when we're gonna die and people are living a lot longer these days. This statistics are that if you're 62 in your wife is 62 and neither one of these smoke the second spouse to die. Dies at 93 on average in half a live longer than that. My associate way SEC and have you looked at the the the obituaries lately and I said I can honestly tell you I have not looked at the bit obituaries Donald I don't. That's just depressing and now. He said he started reading them in was just so surprised at the ages of the people when they passed away in their ninety's and somebody. As an exciting life Anthony buddy looked at the obituaries slot thought it was brilliant because everybody from the comes. To see us. Thinks that they're gonna die in three years you know it's ism is the man say they're gonna adopt for the women all the man that they're gonna it would probably are probably are but. I'll pay have been told yes I've had people say I want. I've been told that if you have somebody that knows exactly when they're gone and then. You need to get away from steep rugged. You need to plan for a long life. There's so many things that if you don't plan for a long life then I would plan for maybe eighteen years. Was no money we talk about retirement is the unemployed for thirty years how long would you like the money to come in. When your unemployed in retirement. Well how about the entire time. I mean what kind of peace of mind that TV every week every month from the chick coming in what kind of peace of mind that you your children knowing that. They didn't have to take their money to support you and Hayden they would be blessed if they did but no one wants to be a burden on their children. So when we planned we planned for a long life and more than likely you are your spouse will have a long life. Well and let me say this this article that I have here is really stunning Philip it has to do it our good old friends in California. Do it they're beliefs closely aligned with ours here in the Bible Belt but that this is specific seat. California is prospect at pension cuts in downturn so what they're talking about as a potential of cutting. Pension benefits. The article is dated January the eleventh and this is caliber or California governor Jerry Brown sent legal rulings make clear the way from making cuts to public pension benefits. Which could go against long staining assumptions and potentially provide UNH a relief to the state. AM to its local governments how con and two to stay in the local governments what about the people. The article goes on to say there is more flexibility in there is currently a son and bad days to discuss the California roll. He did in the next recession the government the governor will have the option of considering pinching cutbacks for that for the first time. This could be a major shift in California. Where municipal officials have long believed they could just have been a bit even as they shrunk to recover the cost. They have. Raise taxes and dipped into reserve just to meet rising contributions. Listen this is and tell me this is your hits eerily close to home. First of all the California public employees retirement system is the nation's largest public pension number one. Listen this number Philip. It has about 68%. Of assets needed to cover its liabilities let's. Had a second care is your expense South Carolina it is South Carolina only has percent. Knows little more than admit it's less than sixty. It's in the top the bottom 86%. It's in the bottom five of the United States. And actually California's pension plan is in better shape than South Carolina well. This one it is 68% of asses needed to cover his liabilities. Across the country say and local governments have about one point seven trillion. Less than what they need to cover retirement benefits. The result of investment losses the failure by governments to make adequate contribution. And parks degraded in name Tom's. So they get overzealous is irrational exuberance teacher talking about when Alan Greenspan Ian ages sent a failure by governments to make adequate contribution. And then they grant perks when there's irrationally exuberant. It's well pensions are almost just to irresistible for politicians in here with our better Rebecca. CR a politician he's running to get elected in the short term and then. Can promise pension benefits. That are to be paid out years after he's out of office so he can promise some thing. But he doesn't really have to come up with anything to pass a somebody else does when the chickens come home to roost and that is irresistible for and that's what's happened. To get elected. The they have promised all these tremendous pension benefits which they are not going to be able to pay. That's why when we talk to people who have a pension we talk about diversifying your income strange. Part of what we do and we do our due diligence is finding out who in the world is guaranteeing these funds for life. What is their ability to pay these things. We have companies that are guaranteeing lifetime income benefits. That their solvency ratio is 218%. That means they can pay everything they showed everybody they've promised that once and if that were thousand dollars. They would have a 1018 left over. And so we look at that kind of thing what. I had a lady asked yesterday when she when we says something about a guarantee and she said who's guaranteeing me ask. And you know that's a good question yeah you need to think about that. You need to be proactive in making sure that these pension plans. Or court. You need them to be and also understand that you can do first diversify. Your lifetime income. One of the things that we do this very important is part of paying your retirement plan. Is your Social Security benefits their needs to be some planning with badly and that's something that we try to include in every plan is to make sure that we looked at bad. What is the best way to get the optimal Social Security benefits is not as many ways is now they used to because they've closed a lot of loopholes. But Social Security benefit planning is a big part of what we do. Along with you know all the distribution strategies. And then we also have to consider the impact of inflation in retirement. All of these things to give you a rock solid retirement plan. Don't go under retirement. We just hopes that this will work out but calls that rarely does give us a call 180687676. Say. 180687676. Say. Look this up on the way a bit CS RP. Dot invoked. I was until you fill the senate and house assorted. The State Supreme Court is set to hear a case in which the court which the lower courts ruled. That reductions to pensions are permissible. And these columnist. Are permissible if the payments. Remain. Quote unquote reasonable for workers brightens up the pages I mean who is okay yeah I says what's reasonable to politician Newt. Is unaffected Madison now earned UNAIDS and who decides that emit. Here's the other thing if there's anything left in the Cahill Mike you're talking about and efficient tax fer it transfer of well. It's what's left in the count while can tell yes. Nobody right. A secret that you need to understand about retirement planning is you can get a lifetime income guarantee now. And if you for the long term. But if you dad and the short term the money can steal pass on to your Ayers in the most tax efficient manner possible. And I'm at and you broke that atlas talk about that. One of the easiest ways to pressure Manning in the most tax efficient manner possible to your children a space if it's IRA money. Is something called the beneficial IRA some people call it inherited IRA some people call that a multi generational IRA. And our. He says well I'll never heard that we need to McCall's let's just say. That she knew a meteor his car in it you and your wife. And you're Suzy your daughter ga it's 500000. Dollar your 500000. Dollar IRA. Well there's two ways that Suzy can get they see you put down Susie Ager benefit fish years. We may don't realize it but if you're not careful you put down Susie. About 50%. And the US government about 50% and I have a silent partner on the is qualified so I didn't know up and down the government as beneficiary. If losing doesn't take her money as a beneficial liar a that may be what will happen for about 50% of that money so what are you talking about. If Susie. In news and your wife got hit by a meteorite and ahead of people ask me so why do you talk about getting hit by a meteorite. That's that we don't know about how people really know I didn't you know one day there's this big not iron a key noted and limited. You know nobody thinks they're gonna get hit I mean your eyes so that's it it takes us safe I guess a safe place together that's a safe place as the trust her. But anyway I'm. If if you pass this 500000 dollars on to Susie and Susie takes it and puts it in her name. Then immediately. That becomes in come her income for her that year and on her income tax she just added 500000. Dollars to your income. So what kind of complicated planning would we have to do so she couldn't do there. She would have to do this she would come to talk to us and we salute 500000 dollars is now your first. If you'll take it as soon as the beneficiary. Or John your dad IRA deceased. And it goes directly firmware AD is to wherever she wants it. Whatever account she wants to the end but if he's just listed like that Susie. Beneficiary. For Johns hurt her dad's RA deceased. You know how much taxes. Uncle Sam won't hear it on that transfer. Nothing they'll keep allow and that they're trying to cut it down to where it has to be paid out over five years was so far is still on the tax code. And he say and she can get the entire 500000. And not pay any tax on it. He's able the IRS is not done though they're not dumb the next year one year after she receives it. Even though so easy maybe 39 years old. She has to start taking a required minimum distribution based on a special schedule for a beneficial RA but she won't have to take much. And she only has to pay taxes on what she takes out. Now. Bat hash to be brought up when someone passive way and in retirement plan we have people passing away every week every week people passing away. And what we find out. A lot of times banks won't even mention it they'll just say you'll just put your name c.'s Lisa GS and then also an Uncle Sam gets half it. I just don't know any better and they lost yet in my mind I'm looking at the form goals we do it so much the first thing that we talked about and hopefully that our clients have gone over this before hand with their children we try to do that. Is that you need to take this is an inherited IRA and not make that mistake. And that way who wants Uncle Sam to be one of your major beneficiaries. Of the money. The chiefs say death another thing that their clients like to do is say Suzy has little Charlotte little baby girl. They may send some of that money directly to Charlotte. Or Charlotte has to start taking a required minimum distribution all even though she's only six years old. But. In a nice you know. For John to know that every month Charlotte gets a check would John's name on it because that little beyond there but calls this a beneficial RA what a way to leave a legacy that will give them an income. Fruit hopefully. The the child's life but setting that up is very important and having him a financial advisor who's gonna do that none of Rebecca does that Tony you know that's a real hallmark we want that money to pass. In a tax efficient manner. If no one's ever talk to you about multi generational beneficial inherited our aging need to give us a call us 180687676. Say. 180687676. Say look this up at CE SRP dot info. It's interesting to aid that so many people don't know about another white historic tighten that up if that's the desire of your heart for your children. Would be to do centrist work as far as adding language in your trust documents as far as we would like into receipt assets as of an inherited an official or multi generational higher rate. It's not about half of that going to see big government Philip and we are just not seeing good results with anything Maine it's have a government. Quite frankly we've got a lot of entitlement programs that are under funds and maybe they way some among men. Not to government limited they just lose and treatments would it have noticed. But it tear pool lane they're either going to spam lesser tax more Betsy that's sort of the nature of the beast I think that's all lane and had a days. Or are we be seeing a lot of reforms of conversation about increasing the Medicare age to seventy. We're seeing lots of tightening of Lou Holtz a saint loopholes. Loopholes tongue in cheek obviously for Social Security benefits are used to be a lot of things that you can days. Either way with Social Security we know that is underfunded there are things coming down the pike to be implemented as soon as 20/20. As far as adjustments to payments for Social Security so I say that to say. That is not a Willie Neely knee jerk reaction is far is making a decision about we knew take Social Security. And I feel like that people do that because I think it low while I'm just gonna do it. It's a good idea to sit gay owned it was someone and on a team. They'll look an entire team and it will be happy to sit Daylon more than individual and however they Singh's comments which retire complaining. We need to look at everything Howell the AG from attacks same point now we are not CPAs. But there thing to consider when taken as Social Security benefits such as. If you're not full retirement age you've got a couple of CNET blog on your feet to one of them is being taxes. The other one being a limitation on how much she can make while working. A lot of people had the velocity that if not working I'm gonna die so a lot people will continue work and if you're just gonna work. And makes so much in retirement doing contract work or what have EDT don't receive a payment that lot turn the darn thing not build or not. So those of recent thanks to make an educated decision. With all the facts so they teel Mike a decision down the right you're grant or that hurts you. Rebecca I'm almost with Social Security I have. A burden burden my hands were two in the bush philosophy. A couple of things is if you're full retirement age and you can receive your entire benefit if you're still working and as a matter you make as much money you won't. And you can receive your full retirement benefit feels so should not put it off till seven the and and first raw I don't think you should probably in most cases first of all. All the per. Projection you see about how much you would receive this seventy year assuming they're not gonna make any kind of cuts to Social Security in the future maybe they won't. But the thing that definitely is looming is inflation. It could be the point if we get in the Jimmy Carter style inflation and that's what we're worried about because of the massive day at that we have. You could be making a 132%. More as seventy they knew whatever hat in that is earned 32%. More well it depends on what year you were born because asked one of the things are raising the full retirement age. The most at some we'll get a full retirement age 67 and that's what at what's coming in 22 what are you disconnect sheet of full retirement age for make it I mean no wind they said he thought. Well he lets say your Macon 132%. More at seventy then you would give it 65. Well what if that doesn't buy as many groceries as the 100% did it 65 another inflation has made up your purchasing paktia. And the other thing that you've got to consider is down the road. If if they work to increase the retirement age on that. I believe a lot of the people who were already taken Social Security would be grandfathered in on the other yapping is sexy but there's a lot of considerations and everything noble down to a spreadsheet. Like people last known Russian up pay off my home in if you've got. Less than 3% interest rate on a spreadsheet. Technically you probably shouldn't pay off your home because that's like free money when you consider your tax break can you consider inflation and that kind of thing. And I'll ask the husband or go opposite how do you feel about not having your home paid off as lacking sleep that. Golf I'm gonna die early on you know well. For sure pay it off. The main thing you need is to get in a situation where you lower your financial fear about your money you'd have peace of mind. So that you can enjoy your life the things that money came back. Philip something money can't buy for sure is a good night sleep. My eighty I have an eight year old a seven year old and a six year old and they're not maybe it came out. Mean it just came out from the theatres is now where you can watch on apple TV watch from home well when how much set navy's a kid. It's gear media day at Agassi came out my 1996. Or some senate now wash or may mean very skier will of course someone to watch the remake. Until the girls can night go to bed go to they go to bed pay now wanna watch as they beat us malevolent witch right. So are watching this movie when watched it would go to bed yep I'm under underwhelmed with that we get a bad. All the sudden ouster are waking up to my back. And they again. Why do you people he company get in my bed your eight instead and explores a crowd why are you mad bed. We're afraid to Clio the Pentagon did on. There were all balcony. How adding and peek around the corner ND the you know what he's in the gutter he is little boy you fuel your butt. It's so. I would like to sleep well at night can so how old are you when you watch the original he has. You know I must have been a Tuesday chemist to be an Ater and so in other words the mistakes that your parents made you want to try to repeat those with your kids as much as props why should I be locked the door. Perhaps but it's really messing me up right now be honest. They would just have day if they would just can't just say I was raised in church and I was raised and now I'm just I'll watch it doesn't know what they're raising church. No I don't mind that housed on say I was raised in church Monday it was late music director. We. And I never when I was growing up my dad would Malone didn't want me to go to movies. Well as I started getting to their rebellious teenager probably one time when I was fifteen years old I was that was some brands. And they wanted to go see the pictures used not put up but unlike foot discussing the picture surfaced in that was it'd drive in movie. No it was. That I went to see the pictures she is with my brand. And I had my hand over my has about halfway through it because I knew what you're watching a lot of it was true stuff that really went on in the world. When I got home I knew that. I had done something passion of and play your dad did you win no because Monday at work third shift in. They left about 930 at that those laws I got home before 6 in the morning house probably all right mom into at work third Q yes they do you guys they. So. That night and eve. The amount they had was gonna start (%expletive) can. Cut but I was horrified for like a week over that calls. I knew I'd dents on the fashion and house fifteen years old not man that well allow for me to get over that movie. Now I'll say these adult and watching that navy. Didn't scare me because I knew it was it. Real like I knew it wasn't real so I was able to separate myself out what is really scary in the true sense of the word. It's people who are living in a proverbial nightmare with their finances. And make he would get out they can't turn it off they K it say it's just in May be it's not real. That is where I think about C I used to be able to watch. Net GA they had nag GM program on a couple weeks again a debt had. It was a special about the bomb that was dropped on here she map. In the long term effects of radiation will I used to be really interest in that stuff until it could potentially happen to us with rocket man North Korea then I'm also interested in anymore. I don't won an. Maybe ignorance is bliss from that same point but I just went. Aren't often don't thumbnails. Too close to home Rebecca you're right about one thing that. You do not want sure retirement to be a horror movie. We talk to people about their meaning people angry moron now that live in quiet desperation and that's really what it ends up being quiet desperation. Due to poor financial planning in the past. Don't let that happen do you you have to be proactive. We're not gonna come to. You have to make a decision that your gonna spend some time looking at what the alternatives are in retirement plan. And taking a lot of risk all the time. Usually doesn't work out all that whale. Give us a call 1806876768180687676. Say. Look this up on the way a bit CA SRP dot info. We consider your time to be the most valuable thing. In the world when you coming in we wanna make sure that it's a pleasant experience but we wanna show you. Mean any ideas that are gonna give you that piece of man that you need in retirement this is your one life savings. We want to show you a safer plan for retirement success. We want it show your retirement rescue plan. Don't lit. Market losses and inflation dish Troy your life savings. Let it show you how to have asset protection guaranteed lifetime mean come spewing your wife cannot outlive. To do that. Give us a call 180687676. Say. 180687676. Say at CS RP dot info. It could very well be in meeting that would forever change your view on retire and especially how much you enjoy it have a great week god bless you.