Loading summary
Transcript17 lines
- [00:00]
Jill Schlesinger
Do you know a high schooler who's a natural leader who wants to create change by bringing people together? They could be one of the next Student Visionaries of the Year candidates. Across the country form powerful fundraising teams uniting with the Leukemia and Lymphoma Society to honor a local child with blood cancer. Through this seven week philanthropic leadership program, students build valuable skills like project management, entrepreneurship and financial literacy. Something I wish I'd learned at that age, but plus, it helps them stand out on college applications. But most importantly, it's a chance for students to connect meaningfully with their communities and make a real impact on blood cancer patients and their families. Learn more about Student Visionaries of the year@lls.org students that's lls.org students hey gang. I was a small business owner.
- [00:52]
Mark Telercio
I know how hard it is.
- [00:53]
Jill Schlesinger
And starting your business should actually be simple. Now you can get more. When you start your business with Northwest Registered Agent, your entire business identity in just 10 clicks and 10 minutes. Northwest registered Agent provides more privacy, more guidance, and more freedom to run your business from anywhere. If you want to build your business while keeping your personal information secure, Northwest is the partner you need. In just 10 clicks and 10 minutes, they'll form your business. Create a custom website and set up your local presence wherever you need it.
- [01:29]
Mark Telercio
Don't wait.
- [01:30]
Jill Schlesinger
Protect your privacy, build your brand and set up your business in just 10 clicks. In 10 minutes. Visit northwestregisteredagent.com Jill and start building something amazing. Get more with Northwest registered agent@northwestregisteredagent.com Jill.
- [01:53]
Mark Telercio
Welcome to the Jill on Money Show. It's Friday, April 18th. And by the way, gang, although this is the program that takes the mystery out of your financial life, we will not be having to worry about markets today. It is Good Friday. U.S. financial markets are closed. Take a deep breath. It's okay. Now, since we last spoke, you'll notice that my voice is back. So that's good. Almost. I would say I'm 95% of the way there, Mark. Not 100%, but 95% of the way there. This is the program, however, that wants to help you along your financial journey. And these are very upsetting times. There is so much information coming to us. You know, I just keep thinking that as human beings, we are not, we're not like microprocessing chips. We can't take this fire hose of information, take it in, process it, and make great decisions. In fact, I would suggest that because there is so much information, this is even more of a reason that you should get in touch with us that you should go to our website, jillonmoney.com and you should click the contact us button and write us a note. And if you'd like to join us on the air live, all you need to do is check the box. Producer Mark will do everything else. He is the very best executive producer in the whole wide world. While you're on the website, don't forget to sign up for the free weekly newsletter and check out our subscription service. It's called Jill on Money Live. That is where you have access to quarterly live webinars, four of them, bonus audio and video content. Mark is building out that library as we speak, as well as our entire back catalog of our previous webinars. All of that is $45 for the next 12 months. Mark, have you reached out to our potential guest for the next webinar?
- [03:46]
Anonymous
I have. The wheels are in motion.
- [03:48]
Mark Telercio
Yes. Oh my God, I'm so excited for this. This is one of my favorite guests. We do a little repeat on some of these guests because I love them so much. And of course, conditions change. So we bring you the best of the best. And it's not just Ed Slot gang. There's more where that came from. All right, Mark, time to do some emails. Let's start with a message. This is from Lisa, who writes, in the fall of 2024, I began using a financial advisor that is a close friend. Friend of my daughter. Uh, oh, already I'm worried. Okay. Lisa moved all of her investments to Charles Schwab with this advisor. And the advisor is from an outside investment company. So another. A lot of times just gang, when you use an advisor, they can choose to hold their accounts in a lot of different places. It might be at Schwab, it might be at Fidelity. It's just, you know, it's up to them. Okay. So last week, Lisa was notified by Schwab that the service agreement between Charles Schwab and the advisor firm will terminate effective end of April. And Schwab will no longer honor any authorizations with respect to my account. This termination is due in part to finra. FINRA is the self regulatory body of the advisor world. And this is due in part to FINRA's decision to bar my advisor's FINRA membership. My advisor claims that five years ago he was thrown under the bus as a new employee by the advisor he was working for. He has been working with FINRA on these allegations and he is not able to afford the constant legal expense of fighting this. Should I move my Money to a new advisor. Oh, my God. This is a bit of a fiasco. Okay, Lisa, take a deep breath. Since you just started working with this advisor, I would say yes, I would move the relationship. It doesn't mean that this guy is guilty. There's a lot of times where FINRA and the Certified Financial Planner Board of Standards where they do an investigation and somebody is ultimately cleared, but you can't afford to wait that out. So what I would suggest is I don't know who you were using previously. Maybe what you just say to Schwab is you'll manage it yourself. Get back in touch with us because we want to find out what else is going on in your financial life. But, yeah, you should absolutely terminate the relationship right now because it's not worth it to you. All right, now, next up, this is from Amy, who is a single 40 something who has no children. She writes, I'm wondering if a revocable living trust would be advisable for me instead of a will. Alzheimer's runs in my family. I like the idea that my assets could transfer easily to a trustee in the event that I were to become unable to make my own financial decisions. The lawyer I'm talking to estimates that it's $3,000 to establish a trust. What questions should I be asking the lawyer and myself to make sure I'm not overlooking any hidden costs or negatives that could come back and bite me later? Love your podcast. Love you for doing what you do. Okay, Amy, a revocable trust is very easy and three grand is a cheap price. You're still going to have to do a will that's absolutely necessary. You need a will, you need a durable power of attorney, and you need a health care proxy. The revocable trust would mean that you move all of your assets that are not retirement assets or life insurance assets inside of the trust. So you're going to draft the trust, but then you've got to make sure the trust owns all of your assets. That could include a bank account, by the way. So you want to make sure the trust is the owner and otherwise you just have to make sure that you're talking to the people who would be the folks who would take over in the event that you couldn't. But otherwise, if you like the idea, that's fine. You will need a will again. A will, a trust, a power of attorney, and a durable health care proxy. Okay, next up, here we go. This is from Trevor, who, who writes, jill, my wife, has $250,000 from a settlement she is five years away from retirement. What is the best product to invest for income generation? As she would like to retire early, she is risk averse and nervous about being scammed. Please help. Okay, so in fact, the subject matter of Trevor's email was annuity or dividend for income. Okay, so let's say you're really risk averse. What would you think about? You would think about building a ladder of bonds or CDs. That's one thing to think about. So you might say for five years we might throw $50,000 in, say a three year, a four year, a five year, a six year, a CD that would mature every year. But if you think that she wants to make sure that that money could be available to shoot out income so that she doesn't have to think about it, you could consider something called an immediate annuity where you put the money in and then, you know, you could basically say for five years you might, you know, I don't know if she needs the money now, but I don't know if she needed money now, you would have an immediate annuity and otherwise you could have a fixed annuity. Whatever you choose in this product world, I would get a fee only financial planner to do the research for you. We don't know how much money she has in other areas and if she's nervous about being scammed. I understand that. What I'd like to know mostly is if you and your wife have other money set aside for retirement and how we could augment that with this $250,000. Okay, this is from Anonymous. Very common name that we get from Anonymous. Okay, so it says, hi, Jill and Mark, we live in Washington state, we want to retire. And Anonymous is going to return 66 in June and anonymous husband 61 in August. Okay, we had about $2.8 million in 401 s, of which $650,000 is in a Roth. Hmm, that's good. A primary house worth $900,000, it's a low estimate. A second home worth about $700,000. Also have $50,000 in an HSA. Okay. Anonymous has Medicare, husband has VA for health care. Oh, that's great. Okay, so in the recent market sell off, we saw our portfolio lose about a half a million dollars.
- [10:22]
Anonymous
That's a lot of money.
- [10:23]
Mark Telercio
That is a lot of money. I mean, well, 2.8 million. How could that be? No way. Because I mean, let's just think about that. Let's say you have 2.8 million and it's all in stocks and you had 2 point. I mean, you could. I could see half that amount, right? Let's say if you had $2.8 million in the first three days after the tariffs, you had a 12% drop, right? Maybe it could be that there is some part of this portfolio that was heavily allocated to tech stocks that lost more. I guess that's the only other way. Now anonymous says my husband wants to retire. Because when the financial planner ran the numbers and said we could, now we want to keep the houses for five more years. We want to sell one at the end of that five year period, okay, my husband will have $3,000 of Social Security at full retirement. With both houses, we need about $150,000 a year for expenses. Can we afford to retire now? I tried to tell my husband to work another year or two. He's not wanting to do that. I'm terrified of running out of money after working all these years. And saving. Husband does get also a $600 a month pension. No other money coming in. Can we really afford to do this? Okay, I would like a rerunning of the numbers from your financial planner. I want you to. First of all, I want you to sit down with a planner. You have a planner. You must sit down with this person and say, with your husband before we make this decision, with the stock market gyrations and everything you just laid out for us, have the advisor rerun the numbers. Make sure you understand exactly how much money you have that has gone down in value. Be very clear about the amount of money you need to pull from the portfolio. I mean, but presumably if you've got $2.8 million and essentially you'll get another seven or eight hundred grand out of one of those houses, you should be fine. But you need to have that proof sent to you, right? I mean, that's the case, right? Mark, don't you agree they've got to have proof that with the current situation, the numbers still work, right?
- [12:34]
Anonymous
Yeah, I mean, I'm not. I don't think they can just call it quits right now for 150 grand a year unless they're selling one of these houses right now. I don't know if any of these houses have mortgages left on them, right?
- [12:44]
Mark Telercio
We really don't know right now.
- [12:46]
Anonymous
Can they quit and generate $150,000 a year?
- [12:49]
Mark Telercio
No. Well, not forever. But you got to rerun the numbers for sure. That's the most important thing. So here we have another question. This is from Cedric, who says, where can I find a reputable financial company? That can give guidance on what to do with a couple of million dollars. I work with two companies, both make me nervous. I really think that folks need to be very clear about the kind of financial information that they are getting and the kind of advice that they have signed up for. If you have somebody who's just managing your money, that to me is not really worth it. If you are working with a certified financial planner or a CPA who's got a specialty in personal financial solutions and has that kind of training, that's fine. But if you are seeking guidance on your situation, it shouldn't just be about your money, your investments, it should be about your life. And that's what you're shopping for. So get back in touch with us. Depends on where you are in your life and who we might think about who could help you out. This is from T who writes. I like the T. I see you on CBS often and I've heard you talk today about the stock market. Your advice is to have plenty of cash to weather a storm. Even if you are invested in the stock market. Retired people have to take a required minimum distribution every year. They've got no choice. And this year the required minimum distribution will be higher than next year, most likely because of the value of your portfolio that was conducted at the end of last year. How can we recover from this market hit? Okay, I just want to point out a couple of things I've heard from a lot of people about their required minimum distributions and this exact question. Let's kind of go back into the time machine. It's the end of December, right? You know that your portfolio has gone up. What did the market go up last year? 20 something percent, right, Mark? 23, I think 23%. Okay, so we had a 23% increase in the stock market. The bond market did fine. So again you did, you had a good year as an investor. Now what I would do if I were somebody like T at the end of the year, I would look at my account and I would say, okay, what's the amount of money that it's likely to have that I'll need to have in cash to have my required minimum distribution satisfied? Okay, this is a ballpark number. It's very easy to do. So let's just pretend you had a million dollar portfolio. You're going to have to take $40,000 out. It's December 31st. So here's what I would do. In the beginning of the year, I would make sure that I would have the money that I knew I had to have come out of my require as a required minimum distribution I would have it be in cash in the money market account or I would just, you know, I might take most of it out and then maybe at the end of the year take the top it off. But if you're the kind of person who has been setting up your RMDs as monthly amounts, whatever you need for that year and maybe for the year beyond you have in cash now do you know what happens when you do that? You forego your upside. So for many of you who are completely freaked out about the money that you have invested, I would argue that some of you may have been your own worst enemies. That you didn't have the money sitting in cash that you knew you needed. Mark, how many times do I say whatever you need in cash before retirement it's a year of your living expenses. After retirement it's up to two years of your living expenses. So if you knew that you had to write a tuition check, if you knew that you like maybe you just said oh you know what, I use my RMD so I can take money out for my grandkids college education. Maybe you use your RMDs to actually float your needs. Maybe you know that you have to buy a car and you're going to use your retirement account. Whatever it is, what is crystal clear is money that you know you need within at least the next year, maybe up to two years you don't have invested. If you have made that mistake and the money is not in cash, you do have to start to free up some of the money so it will be available to you to satisfy your rmd. If you would like to roll the dice and hope that the market comes back so that you can do this at some other point later in the year, that's up to you. But that is timing the market and it is quite risky. So if you are in this situation and you need some assistance, get in touch with us. Can you see how some of the baseline boring advice that we give all the time can really come into use as markets are in disarray? I know, I know it's hard to do but you have to be honest with yourself. No one did this to you. You probably, or maybe someone did do it to you. Maybe your advisor didn't tell you to do this but advisors are humans. Just remember money that you need within the next year or two cannot be at risk. Gang, that is what I beg you to keep in mind. Now today the markets are closed. Try to take a deep breath. Try to have a good weekend. Don't fret too much. If you've got a question, let us know. Go to jillonmoney.com Click the contact Us button, write us a note, and if you'd like to join us on the air, check the box. Mark will do everything else. You can subscribe to us on the Odyssey app or wherever you find your favorite podcasts. Please leave us a rating and review wherever you listen. Since it is Friday, we do a little business. Music is composed by Joel Goodman. Mark Telercio is the best Executive producer in the world and the king of all things web. We are distributed by Odyssey. Try to lift someone up Change your work, Change your wealth. Change your life. Thank you for listening. We'll talk to you on Monday.
- [19:05]
Robert Half
Need contract help for those workload peaks and backlog projects? You're not alone. Robert half found that 67% of companies surveyed said they will increase their use of contract talent. That's why their recruiters leverage their experience and use award winning AI to quickly find the skilled candidates you want. Learn about their specialized talent in finance, accounting, technology, marketing, legal and administrative support at Robert Half. They know talent. Visit roberthal.com talent today when investing your money starts to feel like a second job, Betterment steps in with a little work life Balance. It's the automated investing and savings app that handles the work so you don't have to While they build and manage your portfolio, you build and manage your weekend plans. While they make it easy to invest for what matters, you just get to enjoy what matters. Their automated tools simplify the complex and put your money to work, optimizing day after day and again and again. So go ahead, take your time to rest and recharge. Because while your money doesn't need a work life balance, you do make your money hustle with Betterment. Get started@betterment.com.
- [20:22]
Mark Telercio
That'S B E t t e R.
- [20:25]
Robert Half
M e N T Com Investing involves risk performance not guaranteed.