A (3:13)

So when did that change?

B (3:14)

I think it was, I want to say 24, 25.

A (3:17)

Interesting.

B (3:18)

But it has to be owned by the grandparents.

A (3:21)

Oh, okay. So what's important there, I think from Lisa's, Lisa's perspective, is when you have this money and it's owned by the grandparent, him or herself, then it's fine. Also another idea, by the way, is if you have the money available and it's in your retirement account, maybe this is a way for you to pull some money out of the retirement account. If it's traditional, maybe it's a way to get money out and start putting, you know, paying the tax on it. Gifting that. If you have a Roth, that's another way to use it. And if you have a brokerage account or a checking account and you're somehow worried about bumping up against gift tax problems, you can always write a check directly to an institution, by the way, that escapes any gift tax. So, Mark, you've educated me, so thank you very much. Okay. Russell writes that this is about rental property and the idea of paying off a loan versus keeping the money invested. So Russell writes, I've owned rental property for many years, but the passive rules prevent me from claiming losses on Schedule E since. Okay, so this is about owning rental property when it is not your primary business. Okay, so this is like as a side hustle kind of. Okay, so the property is fully depreciated and now it breaks even. Current mortgage has $50,000 on the balance, a variable rate of about 6%. I am now required to take required minimum distributions. Should I pay off this mortgage or reinvest the money? I don't really understand. If you've got a fully depreciated building and it breaks even. So are you saying that it breaks even on your taxes or Are you saying that like you own rental property that's not making money for you?

B (5:09)

That's how I would read it.

A (5:11)

That is not making any money. If it's not making any money, I might sell it. But you have to then capture the. Maybe you do an exchange. Maybe you do a like kind exchange that you know when you, when you look at doing. I don't know if you're interested in this or not, but there's a. Something called a 1031 exchange which would allow you to take the money from this property that's fully depreciated, sell it and buy something else. I would love it if you could just make this property a better working property for you because kind of sounds like you're stuck right now. I wouldn't necessarily pay the mortgage off, but I might consider selling it, especially if I want to reinvest it. But you're taking RMD, so you're in your 70s. So what's the plan with this property? I really need more information on this one. Sorry, guys. Lisa says she's got a 24 month CD and she has a Roth IRA. She said I need to withdraw money out of one to help me purchase a newer car. The CD renewed this past November. Which one would be better withdraw money from? I realized the bank will charge a fee for withdrawing from the cd. Mark, you want to tap the Roth for Lisa or you want to just break the CD and pay the fee?

B (6:21)

I'm going to assume that the CD is not her emergency reserve. If that's the case, I would tap the cd.

A (6:26)

Yeah, me too. But if it is your emergency reserve, I'm wondering if there's any other money because maybe you have. Do you have any traditional money? I'm sort of interested in that also because maybe this is a reason, like just pull the money out, pay the tax and move on. So again gang, we want that traditional pile of money to not be a burden to you later when the government forces you to take money out of it. Okay. All right. Susan is writing about a pension. She's 66. She has an old fashioned pension from my former employer. It has an ex. A cash lump sum value of approximately $220,000. Okay. Susan says I could take the pension now and the monthly amount would be $1,300. This is crazy. She says I often forget I have the pension. I understand I can roll it into another ira, but I'm thinking of taking the lump sum. Oh my goodness. Check this out. Mark, cue the hate mail. I have $2 million in other 401ks and IRAs, I will receive $3200 a month from Social Security once I start to claim it. The reason I'm thinking about the lump sum is to have cash to help our son buy a house. I believe the $220,000 would have 20% federal tax withheld and would be regular income, which would put us in a higher tax bracket. Do you think taking this pension as a lump sum now is an okay thing to do or not advisable. And Susan is a regular listener. I hate to take that tax hit, Mark, and push her into another tax bracket.

B (8:06)

All for the sun.

A (8:08)

Do we really? I mean, I need to know more about the sun. Why is the sun buying a house? Is this something you want or he wants? You're 66. You can always pull money out. But why? I don't see why you wouldn't just roll this 220 over and not take this huge tax hit on $200,000. I don't know.

B (8:28)

I mean, does he really. Does he need the whole $200,000 to buy a house?

A (8:32)

I don't know. Like, how much of a house is he buying? And why are you buying the whole thing? And I need. Susan, come back. Come to us. Come on the air. And bring your kid so we know your adult child. Okay. Stephanie writes that she's planning on retiring at the end of the year. She'll be 62. She said we've got a brokerage account with a big company. There's $350,000. There's mutual funds. There's a unit investment trust. There's a small. Ann. They've got 160 grand in a Roth. A thrift savings plan of. See, it's hard for me to read this on the screen. I think it's a half a million dollars. Most of this is all is traditional. About 100 grand in Roth. Okay. Husband gets 30 grand a year from Social Security. She'll get a small pension and then 600, give or take after. Blah, blah, blah, blah, blah. Brokerage person said take Social. Okay, listen to this, Mark. Here's the key. Our brokerage person told me to start taking the Social Security right away, which would be $1,950. What are your thoughts on me taking Social Security right away, Stephanie? I might fire that advisor. What do you think, Mark? You want to fire him?

B (9:39)

Well, I think she's obviously leary herself. That's why she wrote to us. Otherwise she would have just done what he said. But yeah, I mean, we need some other Info, but they've got a lot of money saved. You've got a lot of what they spend.

A (9:50)

Yeah, here's the thing. You don't tell us what you spend. Your husband's getting Social Security already. I'm not sure why you would take Social Security right now. I really don't. And also, so, I mean, you've got your own. You have your own retirement account. You have some money. But if you don't tell us how much you spend, it's hard for us to make a recommendation to you. But what I can tell you is that there doesn't seem to me to be a real need for you to take Social Security now. And also, has this person, your quote, unquote broker, advisor, have they run a retirement planning scenario for you? I mean, so here's what I'm thinking. I'm like, okay, why would she take Social Security right now? Her own Social Security is pretty close to her husband's, right? He's getting 30. He gets 2,500amonth. She gets 2 grand. I wonder what happens when she waits until her full retirement age. She'll make a good chunk of money if she waits. The real question is, what's the game plan? This dude is just telling you to take Social Security so you don't invade your accounts. I understand that, but, like, what is the game plan? And if this person has not created a retirement planning scenario for you, then I would not plan. I would not plan on retiring. I'll tell you that much. Unless you tell me that you spend a lot less than your 30 grand a year from your husband's Social Security. And, you know, whatever, it's going to be $450,000 a month. You're going to essentially have about $1,000. So you're going to have $42,000 a year in income. If you spend less than that, then you might be on track to retire. If you spend a lot more than that, then you may not be able to. But I don't think claiming Social Security is the early is the answer. My two cents. Okay. Oh, Mark. Oh, my God. I love this already. This is like the greatest thing ever. Okay, here's the ready for the mess? Subject Jill on money inspired me to take the CFP exam. Okay. Hi, Jill and Mark. This is from Drake. I work in wholesaling a 401k platform to financial advisors. Don't worry, Jill. You say good things about us. Good. Earlier in my financial services career, I had gone through the CFP coursework, but I never took the test Once I dove into the wholesaling realm, Jill on Money has been my first listen on my morning jog for a couple of years. And one day this fall, Mark made the comment, this would be like a case study every day for someone prepping for the exam. At that point I thought, gosh darn it, Drake. Not my name, but he's playing in the background while I write this. Let's go for it. While studying the past few months, there were so many times that things I had learned on your show came into play. Mark was right. I passed. Not exactly sure how this factors into my future, but thank you so much for your amazing show and all you do to help people, including me. Mark, I am a washed up college tennis player, two time redacted City Bankers Tennis league champion and will be in New York City in May if you want to grab a beer and watch the French Open. Mark, did you respond or not?

B (13:09)

Yeah, I did, I did, I did. Yeah, sure, I have no problem. Let's go. Beer and tennis. What could be better?

A (13:14)

Oh my God, you're the best. I love this so much. It is incredible. I mean, first of all, I love that people are listening in the industries and gosh, isn't that incredible to be able to like inspire people to, to do what these, you know, these kinds of things. And also, if anyone out there is thinking about getting into industry, I'll tell you what, you'd be better off just in my two cents. Like I know you're listening to other shows and maybe it's more technical and all that. You should hear the questions that we are fielding because this is the show that kind of is on the, like literally on the ground floor of what people need and want from their advisors. They're coming to us because the industry is not serving them. Okay? That's the truth. And so if anybody out there is listening in the industry, pass it along. Come on, tell us your story. So happy. So Mark, I think that's a great way to end. So if you're in the industry, get in touch with us. You can tell us if we're doing something wrong. That's okay. Go to jillonmoney.com, click the contact us button, write us a note. And gang, if you are not coming on the air with us, then please give us a lot of information and most importantly, tell us how much money you spend. Spend. That to me is the absolute number one thing that you need to do. Give us how much money you spend. It's really the, the most important piece of information that we can glean when doing these kinds of, you know, sort of mini plans on the air. Okay, good. Excellent. 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. And of course, course, please lift someone up. Change your work, change your wealth, change your life. Thank you for listening, and we'll talk to you tomorrow.

C (15:12)

Understanding power requires more than headlines. I'm Peter Hamby, host of the Powers that Be, a podcast from Puck, examining politics, economics, and media. To provide context, analysis, and clarity without sensationalism, we ask how power operates, who benefits, and what's at stake. If you want to move beyond breaking news to deeper understanding, join us on the Powers that Be new episodes every weekday. Follow the Powers that Be wherever you get your podcasts.