Loading summary
Transcript4 lines
- [00:00]
Jill Schlesinger
Hi, this is Jill Schlesinger. Being a business owner means you're always on adapting, innovating and making big moves to take your vision to the next level. You need solutions that match your pace, offering flexibility, rewards and tools to help you keep going strong. That's where the American Express Business Platinum Card comes in, a partner for navigating today's business world. You can have a flexible spending limit that adapts with your business, plus the ability to earn one and a half times membership rewards points on select purchases so you earn rewards that can take your business further. See how the American Express Business Platinum Card gives business owners like you the tools and rewards to do more of what they love. Not all purchases will be approved. Terms and points cap apply. Learn more@americanexpress.com AmExBusiness Hey Fidelity, what's it cost to invest with the Fidelity app? Start with as little as $1 with no account fees or trade commissions on U.S. stocks and ETFs. Hmm. That's music to my ears. I can only talk Investing involves risk.
- [01:09]
Mark Talarisia
Including risk of loss. Zero Account fees apply to retail brokerage accounts only sell order assessment fee not included. A limited number of ETFs are subject to a transaction based service fee of $100. See full list of Fidelity.com commissions Fidelity Brokerage Services LLC Member NYSE SIPC.
- [01:25]
Jill Schlesinger
Welcome to the Jill on Money Show. It is Friday the 13th. I don't I never think Friday the 13th is too scary. I'm happy Friday, December 13th. It's just Friday. It's fine and we're getting down to it gang. Couple weeks left in the Jill on Money calendar and Mark and I pre recorded so much stuff. Oh I loved it when everybody at Odyssey who is our they distribute the podcast. Oh what's your vacation schedule? Mark's like, ha ha ha. They don't know us because of course we are going to be creating content for you for every day through the end of this year. But remember next year we're giving up on our weekends. Did you hear what I said that Mark when I did that last episode? And I was like this is our last episode. It'll be a difference for us. You'll notice it. You think that it'll be different for anyone else? For the listeners? No, because I would imagine not a lot of listeners take a break over the weekend anyway. Yeah, maybe they just bang out a couple of episodes after. Anyway, we have been doing seven days a week since March 14th of 2020. So it's supposed to be a two week, seven day a week thing. Remember, Mark, I said just let's do this for I just do it for a couple weeks. Not going to be a big deal. Just a couple of weeks. We're going to do seven days a week. The world's turning upside down. It's a pandemic, the world. Anyway. So a couple of weeks turned into a couple of years, turned into four and a half years, and here we are. So I hope you don't mind that those weekends are now back to us. This is the art of subtraction, as our friend Christine Benz of Morningstar likes to talk. Anyway, today we are just happy to focus on you. And if you've got a financial question, we would love to hear from you. Go to jillonmoney.com, click the contact Us button. Let us know if you would be willing to come on the air live by checking the box. Mark will do everything else. And he's so good like that. Brilliant. Just brilliant. Don't forget to sign up for the free weekly newsletter. Hey, maybe you ought to be buying the Great Money Reset. It's a perfect book for people who are considering big changes in their lives. That always happens around a new year. You know, the calendar. Our friend Dan Pink, who did the, wrote that book when I always remember that Mark, where he says, you know, listen, there is something to be said for turning the calendar over. It does prompt you to do things. So if that's you, maybe someone needs the Great Money Reset because if you're going to change your life, we want to make sure that you're not going to do it and blow up your finances. So check it out. It's all on the website. All right, Mark, got to do some emails here. This is from Betty, who writes, hi, Jill, I know how you feel about whole life insurance. My mom has a policy and she's paid into it for decades. The cash value right now is $100,000. And when she dies, she will get. No, she will not get anything when she dies. When she dies, somebody, her beneficiary will get $200,000. The question is, let's see, I have to take over the policy and the payments. I am the beneficiary. I am inclined to keep it given my mother's age. The annual premium is $2,000. My mother is in good health. She is 85. What do you think? Thank you. I love your show. I listen to it all the time and I've learned a lot. Happy holidays, Betty. Well, you know what, Betty, here's a question. Why do you have to necessarily pay the $2,000. Maybe what you should just do is let the cash value pay for the policy and don't put any more money in. And you know, maybe if she lives, say, let's say she lives 10 more years, then maybe what will happen is that the final death benefit won't be 200,000, it'll be 170,000. But maybe it will. So I would talk to the insurance company and say if we were to never make another premium payment, we have a, what's called a paid up policy. What would that mean? And they'll tell you how much money it could be. That's fine. If you want to do that, great. It's not a problem. And I. But I wouldn't put more money in, that's for sure. No way. This is from Gregory. Oh, boy. Subject helping adult children now versus later. Okay. Hello, Jill and Mark. Here is what's going on for me and my wife. A pension of $90,000 a year, a Roth of 1.1 million. Pre Tax Thrift Savings Plan 600,000, cash of 240,000. We spend about $9,000 a month and we draw an additional $15,000 from our thrift savings plan annually. I think he means that that's what they pull from to make up the difference between the pension amount and what they spend. They also have 250 grand in a taxable account. Okay, here we go. Three sons, middle one set and launched. Youngest and oldest not where they should be. Let me do that again. Oldest scraping by out west, has a cash job, living hand to mouth, digging out of a hole after some issues. The youngest one works part time and 36 hours a week and college full time. Holy smokes. So the young one is 28, the older one's 36. Here is the question I've considered helping to contribute to a Roth up to the limit as a match, that is youngest puts in 3,500. I put in 3,500, so it's a full year. The oldest, I would do the same. Once he gets into some type of standard job, I want to be supportive but not become part of a problem. They should be standing on their own. Now, is this a dumb carrot to dangle or should I just let them inherit whatever is left? So I think, I think of having a match is great. I don't think that's a bad thing. I think that's fine. But if you're. Look, if your oldest son has had issues, right, and you really need to help out and you want to keep an eye on him. I mean, would it be helpful to, you know, let's say, for example, let's say that he has a pile of debt that he accumulated because something bad happened, right? I'm not averse to paying off that debt. I'm not. If you really believe that it would. He's, you know, he won't go back, lapse into bad habits. That's the only thing. So if you're telling me that you know, there's some other stuff going on, it doesn't sound like the young one has the big problem. It's the older one. So I think the young one, perfect. The older one, I don't know. I feel like there may be other stuff we should be thinking about. Herb writes he's in his late 60s. He's retired. He says, I'm looking to donate my remaining savings when I die to charitable organizations in the form of endowments. What are the best charities with the least managerial fees? Okay, wait a minute. There's no such thing as the best charities. But what we know is that if you want to do some research about charities, there are some different ways to do that. You can. The Better Business Bureau has something called give.org charity watch, charity navigator, givewell. These are all places where you can go kind of suss out how much of your donation goes to supporting programs versus overhead. And, you know, if, if that's, you know, many places they have community charitable organizations where you can give it to the community and they have a professional staff. And you say, look, I just want it to be like, you know, I live in Providence, Rhode Island. I want to give to the Providence Foundation. They'll find the best charities in the area. So I think you should do a little bit of work. And. And there's no such thing as, like the best charity. It's like what you're interested in, right? That's the most important thing. Okay, next question here. This is from Chris. Hi, Jill. Two questions. One for tax filing. If the forms of the returns are simple, then I do turbo tax. But if it's complex, I go to H and R block. There were years where I shifted back and forth between the two. Now, after listening to your podcast, when I shift between those places, I'm not sure whether capital gains loss carryover is properly accounted. Oh, boy. Requested by them. Submitted by me. Seems like it is a good practice that we should always look into submit prior years when we do current year's taxes. I've never done that before. The one lesson I have learned. Thank you. Are we missing out on anything else in those cases? Look, I don't know what's, what is the complexity that is added? Because I'm not sure you even need H and R block. I know no shade up to H and R block. I'm just saying that it may be that the complexity that you think is complex isn't so complex anymore. So I really want to know more about what's going on and what you think that complexity is. And you know, yes, you should have, you should understand like each year you should understand like, hey, do I have a carry forward tax loss? What's out there? You know, that's an important part of the, of the job of preparing taxes and understanding your tax situation. Okay, so Chris is 52, his wife is 46. And he says, so far I've invested our money only in stocks, individual stocks and a Dow index, exchange traded funds. I know when it goes down, it goes down a lot. Other than that, should I change to include some bonds also? Then again, I hear all those suggested allocation percentages. I think in the last 20 years or so, I've never invested in bonds. Is there something I need to do? I like bonds. I know they have not performed as well. I think that it's a good practice to have a little bit of asset allocation at work. It wouldn't kill you to be 80, 20. And if you want to do that in a retirement account, you can shift the allocation immediately. And it's not because you're going to outperform, you're not going to outperform, but what you can do is you can maybe shift the way the portfolio acts during downturns. That's all. Okay. If it's a taxable account, it would not necessarily sell and incur a capital gains to do it, but when you put new money in, maybe you can add some bonds. All right, this is from Double T. Do you like that, Mark? Because I didn't want to give away too much. Sounds like Theo, right? Double T. Hi, Jill. And Mark. My son who is 17, worked over the summer and will put $2,000 into a Roth. And, oh, a parental, Another parental roth match. Mark. $2,000 here. He earned $5,000 this summer. Okay. We have an account at Schwab. I know we can do a target date fund. I'd rather build a diversified group of exchange traded funds. Any suggestions? I would like some international, some value growth with a small cap tilt. Well, then just do what you say. Like, you know, put some amount in international, maybe 10% in international, and then put the rest with some value, some growth and own a small cap fund. But you know, that's all you need. And instead of a growth fund, I probably would just do a index fund. I probably wouldn't even do a value and a growth. I would probably do three funds international, one index fund and one small cap index fund. Okay, that's it for the show. So exciting and so glad that you joined us today. And if you've got a question, just go to jillonmoney.com, click the contact Us button and we'll get you on the air live. You can subscribe to us on the Odyssey app or wherever you find your favorite podcast. Please leave us a rating and review wherever you listen. It is Friday. We do our thank yous and we like to thank Joel Goodman for our wonderful music. I always like to thank Mark Talarisia, the very best executive producer, web king and all around amazing human being. Thank you, Mark. And we are distributed by the fine folks at Odyssey. Try to do something nice for someone else today. Change your work, change your wealth, change your life. Thank you for listening and we'll talk to you tomorrow.
- [13:00]
Mark Talarisia
Hey friends, I'm Sharon McMahon, host of here's Where It Gets Interesting. Each week I speak with authors, experts and thought leaders on everything from American history and democracy to how to be a better person on the Internet. And don't miss my extremely popular docu series which educate you on things you never learned in history class. Follow and listen to here's Where It Gets Interesting on the free Odyssey app or wherever you get your podcasts.