- And good evening, you've got More Than Money.

You've got Gene Dickison, your host, your personal financial adviser, happy to be with you this evening.

I hope that for the next half an hour or so, that you will be informed, maybe, perhaps enlightened just a little bit, maybe inspired a bit.

And if at any point you find yourself being mildly entertained, you have my sincerest apologies.

I can assure you that's accidental.

Absolutely.

But for those of you who are loyal viewers, we thank you for your loyalty.

We thank you for joining us.

You add so much to our show.

You'll hear more about that just moments away.

But for those of you joining us for the very first time, this is a show devoted to you, to your needs, to your goals, to your aspirations, to your concerns, and any way that we may serve you, we wish to do exactly that.

The mechanism that we use - mechanism, he tried to say - that we use is email.

You send me your emails to Gene@AskMTM.com And whether they're about investments or income taxes, estate planning or business, we want to be of service.

We will answer every single email back to you.

And from that selection of emails that we receive, as you might expect, quite a number, we select some of those that appear on our shows.

And as a result, you actually set the agenda.

Your concerns become our concerns.

If you're simply watching in to see what your friends, family, and neighbors are asking about, that works very well because you still might find yourself going, "Hey, that's my question, too."

Or, "Now that I know that, that leads me to another question."

It all works exactly as it should if you allow us to be at your service.

So again, Gene@AskMTM.com, works very, very well, and we invite you to use that as your introduction to our service to you.

Our financial correspondent Megan is waiting in the wings.

Megan, good evening.

- Good evening, Gene, how are you?

- I'm doing very, very well.

It's spring, one of my favorite times of the year, and we recently had lots of flowers delivered from the American Cancer Society to our office, and that just livened everything up and put a smile on everyone's face.

So we're doing really well.

- Yes, they're beautiful flowers.

- So let's start with a little topic here that I find very interesting.

Let's get the report first, and then, you and I can discuss it.

- Yeah, definitely, this report says in a risk alert focusing on so-called robo-advisors, the SEC stated that it had found deficiencies in nearly every digital advisory firm it had examined, including the failure to collect enough client information to truly make and monitor recommendations in the client's best interests.

What are your thoughts on that, Gene?

- It's a very interesting observation, it's one that I think is going to surprise a tremendous number of people.

But before I get too far along, I'd like your thoughts on that.

My generation's slightly different.

I know it seems very similar, but slightly different than yours.

When you think robo-advisors, is that something that you would think, "Hey, I don't really need to talk to somebody "to get financial advice?"

Would your friends be more inclined to go directly to a technology-based adviser, or a human adviser?

What are your thoughts?

- I think for me personally, I would prefer to meet with a person.

I think, because in general, it's maybe not a topic I'm very comfortable with that I would definitely need to be learning a lot.

So I think a conversation would bring me more peace of mind.

I could see where a robo-advisor would fit other people that are maybe more experienced and know what they're looking at for that to work.

But I think for my own peace of mind, I would think for my friends also, I would prefer to sit down with an actual person.

- That's very, very interesting, very insightful.

I asked that question because there are a lot of folks, particularly in my industry, particularly in the financial advisory world who are fearful, for lack of a better word, that "robo-advisors" - non-human-connected auto-generated advice - are going to supplant the human element and take over the advisory world.

I don't believe personally that's going to happen.

I think in a lot of ways, this is kind of sadly a more of a testament to the world that we currently live in, Where a very small percentage of very loud people get all the attention, and all of a sudden, the world seems to have shifted dramatically when in reality, it may have only shifted for a very small percentage of folks.

The key to that report, by the way, was that the SEC was very uncomfortable.

They found virtually every robo-advisory firm had been deficient, had not handled their responsibilities appropriately in advising their clients, particularly in the areas of getting to know their clients, getting enough information about their clients to be able to give them a reasonable and appropriate, and fiduciary-based set of recommendations.

That's fascinating to me, because you would think that, with robo-advisors having virtually unlimited resource, time and attention, there's no human involved, that they'd be exceptionally good at that.

And in reality, apparently not as much, or not, in some cases, at all.

So I'm very interested to hear that you and your friends were more likely to be involved with humans, for lack of a better term, than robots or computers.

A.I., artificial intelligence, being what it is, can be very, very powerful, but I think the real key is combining that level of technology with the human touch.

So thank you for your thoughts.

Let's start with questions from our audience and see where that takes us this evening.

- Sure.

Our first question says, "My wife of 53 years recently passed away last November.

"I am 76 years of age, and I have two children.

"My daughter is 52.

My son is 49.

"I just recently changed beneficiaries on my two "brokerage accounts and an annuity.

"Also, my life insurance policy and long-term care policy, "and my Roth IRA and regular IRA.

"I removed my wife's name from our home's deed "and revised my health care power of attorney and financial "power of attorney and will.

"It took a while to do all of that.

"I appointed my son as the executor.

"My question involves my checkings and savings accounts.

"I removed my wife's name from the accounts "and got new checks.

"I surrendered my safety deposit box because no one "but me could access it, and there wasn't much in it anyway.

"I'm wondering how I can structure my checking and "savings accounts, which total about $60,000 so that they will "pass to my son and avoid probate.

"I know his power of attorney would expire upon my death.

"Thank you for your help."

- Oh, goodness.

Thank you for your question, and our prayers go out to you on your loss.

53 years.

Amazing.

So many, particularly of the younger generations, will likely not have that experience.

So perhaps you take some comfort in knowing that you've achieved something so few will, perhaps in the future.

But I'm certain that that is not comforting at a time of this kind of loss.

The second thing I want to share with you right away is what a remarkable job you've already done.

Your question contains in it, in essence, a roadmap, a checklist that others could follow.

If you've lost a spouse recently and you're wondering, "Where do I start?"

You could start with this gentleman's email and his description of all the steps that he's already taken to get his ducks in line, so that his son and daughter are not, goodness, at the loss of their father, it's going to be a struggle under any set of circumstances, but making it as easy on them as possible.

You've done a wonderful job, a tremendous job, and you should take great comfort in knowing that.

I am very happy to tell you that the answer to your question is incredibly simple and very inexpensive.

You may add, anyone may add to bank accounts, checking, savings, CDs, etc.

what are referred to as either TODs - transfer on death designations - or PODs - payable on death designations.

The term that is used varies from bank to bank, but the effect is exactly the same.

It is as if you have named a beneficiary for those accounts, so that if you wished your son to be on one, your daughter to be on another, or if you wish to split each of them, easily done one piece of paper provided to you by your bank.

A couple signatures, and you're done.

Those assets will pass directly to your son and daughter.

They will pass outside of the probate process.

They will not go through the will.

It becomes as simple as it can possibly become, in terms of passing assets from one generation to the next.

So a quick, simple, easy, cost-free trip to the bank will take care of this situation rather nicely.

It will put a bow on all the other good work that you've done out of respect to your children, and again, our prayers to you for your loss.

But our tip of the hat for the good work that you've done, and, gosh, the roadmap that you've provided for so many of our listeners that if they're in a similar circumstance, they could certainly follow to their benefit.

Thank you very much.

Megan, excellent, excellent.

What a wonderful question to come from one of our viewers.

Let's go to our next question, please.

Sure, this question says, "I think I heard you say on your radio show that if Social "Security is collected before one turns 65 and four months, "payments will decrease by 25%.

"I am currently age 65.

My birthday is in June.

"To get my full Social Security, "would I be able to start collecting in November "this or next year, or when?"

- Well, Social Security benefits are adjusted on a monthly basis.

So for this gentleman, his normal retirement age - sometimes referred to as NRA - within the Social Security planning world will be 66, if I remember correctly, about six months, seven months.

So he is still a year or a bit more away from normal retirement age.

So let's use simple numbers as an example and say that his Social Security at normal retirement age, whatever that might be, is 3,000 a month.

For every month that he takes that benefit early, prior to his NRA, he will have a reduction in that benefit of approximately 0.5%.

So if he decides to go a month earlier than NRA, he will have a reduction of about $15 a month.

His benefit will go from 3,000 a month to approximately 2,985.

On some level, you go, "Well, that's not dreadful."

And it isn't!

And that may fit mark a bit better into his retirement plans.

If he goes about a year early, 6% less, $180 a month less.

That will drop his benefit down to about 2,820.

180 bucks a month less.

Sounds like a whole lot more money, and it is particularly when you project it out over your lifetime.

So for this gentleman, our guideline is pretty simple.

You should always take Social Security when you need to.

So if you need to take it in the next few months, go ahead and take it, if that's what you need in order to be successfully retired.

If you don't need to, there's two things that will likely catch your attention.

Number one, you might rapidly climb back up to your normal retirement age benefit of 3,000 a month.

And number two, something that you might look carefully at is what happens between NRA and full Social Security, which for everyone currently is age 70.

And that increase is not 0.5% per month.

It is two thirds of a percent per month, 8% a year.

So in a 12-month period, you would go from 3,000 a month to 8% is $240 more per month.

Another year delay would be something closer to $250 a month, so you might very well find yourself going from 3,000 to $32, 34, 3,600 a month, and that then becomes your base that you'll get your cost of living on for the rest of your life.

Pretty interesting set of scenarios that you get to choose from, you get to determine when to take that Social Security benefit.

Where it fits precisely, you're going to have to determine, or, of course, you can sit with a Social Security expert.

Fortunately, in our More Than Money team, our partnership, we have just such an expert.

And, in addition to a Social Security Medicare expert, we also have a wonderful planning package that allows us to compare some what-ifs.

What if you retire now?

What if you wait a year?

What if you wait three years?

And project those out over your lifetime to see the impact that those changes might make on your life.

Choosing your Social Security strategy is an extremely important part of a successful retirement, and it is far more challenging than folks might believe.

So make sure that you get all the information that you need to make the best-informed decision that fits you appropriately before you make that choice.

Excellent question.

Megan, question, please.

- Our next email comes from a couple.

They say, "We are retired and have our retirement money in annuities, "which are difficult for us to understand.

"The agent who is handling them didn't explain them to us in a "way that we understand, and we would like a second opinion."

- Well, second opinions are kind of the hallmark of the More Than Money approach to all financial decisions, getting good information, doing your homework, investigating, questioning, learning, exploring is fundamental to making the best possible choices for you specifically.

Can you read a textbook?

Sure, it will give you general information.

Can you consult with an annuity salesman?

Of course.

Might they talk in language that doesn't fit you very well?

The answer is, obviously so.

So having a second opinion, a third opinion, if necessary, is really, really important.

For everyone listening, the word "annuities" seems to cover one type of investment, and nothing could be further from the truth.

There are various flavors of annuity that predominantly fall into four categories.

The first would be fixed annuities.

Those have very few moving parts, as the term "fixed" might suggest, your principal is largely protected, your interest is normally preset.

So you have very, much like a CD, principal protection, interest protection, and a period of time, typically anywhere from 3-7 years, that you would commit the money, and it will be growing tax-sheltered along that time frame.

The second flavor are referred to as indexed annuities.

In this flavor, typically the principal again is protected.

The interest varies when it's linked to an index.

Very often, the index is the S&P 500, but the evolution of indexed annuities is such that they are using dozens of different indices, and inside of one annuity of this flavor, you might have the choice of 5-7 that you can mix and match.

So the indexed annuities, again, principal protection variable rate of return.

Variable annuities - nice segue - are those where there is not necessarily any principal protection.

Your investments go up and down with your investment selection, but under the variable annuity umbrella, there are typically dozens or hundreds of investment options, so you can custom tailor the investments to suit your risk tolerance.

And in many cases, you can choose to add a rider that would guarantee you a lifetime income and, in many cases, a lifetime income for two people.

So spouses could elect a variable annuity with a lifetime income rider and get a guaranteed income stream independent of the investment results.

So if we invested money and sadly, the investments did not do well, your income stream would not go down.

It would be guaranteed for life, even should the variable annuity investments go to zero.

And then finally, fourth type of flavor of annuities.

Hybrid annuities - hybrid annuities generally come into play when the investor has two different objectives.

They want their money to grow, and they want money available should they need long-term care.

These hybrid annuities can be very, very powerful, particularly on the long-term care protection side.

So if you're looking at these four blocks of flavors of annuities from very, very safe to a bit more risk adverse, or risk exposed, picking the right one is going to require that you understand all of them first, have your questions answered, and have them answered in a way that you feel comfortable that you understand them.

Not in a way that's filled with jargon by a salesman who isn't maybe particularly motivated to make sure that you understand.

Maybe more motivated by "I just hope your check clears "and that you leave the office, "and you don't bother me too much."

That happens, sadly.

But as a fiduciary financial advisor, you would work with someone who would explain these things to you in English so that you can make the best decision or decisions.

It's not one of four.

It could be one of four.

It could be any combination of those four that best fit you.

That's always the litmus test.

Whatever best fits you.

Megan, it fits me just fine to answer more questions for our viewers.

What do we have next?

- This next question says, "My husband and I are both in our 90s, "housebound and trying to prepare for the hereafter.

"We have always handled our own finances.

"Except for our house and our car, our money is all in "mutual funds, jointly as tenants, individually "and in separate IRAs.

"We have wills and power of attorney documents.

"Our beneficiaries are each other.

"We have no contingency beneficiaries.

"The trouble we are facing is that our daughter, "who is our executor, will need supervision from someone "knowledgeable to oversee all of this when "my husband and I pass.

"An article I read said we need to find a trusted adviser.

"We don't have a network of friends and family "to advise us.

"We do have an accountant for doing our taxes.

"One person I reached out to wanted to set up a living trust "for us to avoid probate, but did not tell us other "alternatives or who can help us prepare properly now "and supervise the settling of our estates then.

"Can you recommend someone that can help us?"

- Yes.

And, first of all, congratulations on being willing.

Lots of folks, 70% by some estimates, don't have an estate plan in place.

70% of the folks watching our show this evening by estimate.

I think our audience is far better than that.

But still, even if it's the inverse, 30% have no wills created, no powers of attorney, no executors named.

It's a struggle, and it shouldn't be.

It doesn't need to be.

A trusted experience, the estate planning attorney is fundamental to making sure that exactly what you're trying to have accomplished is accomplished.

One of the first things that a trusted, experienced estate planning attorney would offer you is the peace of mind of knowing that your daughter, as the executrix, will not be alone.

She will not be trying to navigate these waters that she's never done before, without assistance from someone who's been there dozens or hundreds of times.

So, being able to file the proper documents at the courthouse, be able to file the Final Income tax returns, the estate tax returns, being able to be certified as the executrix of an estate, being sworn in, so to speak.

These are all foreign terms to your daughter, but something that a gentleman or young lady who this is their profession would handle rather nicely, rather easily.

So yes, your daughter still makes all the decisions.

She still is in charge of handling your estate, but she has a guide next to her that will assist in any way that is necessary.

I think that should give both you and her a great deal of peace of mind.

And yes, of course, if you need a referral in your area for a trusted experience, estate planning attorney, we're happy to do that.

I want to circle back to something that you mentioned where you talked about your IRAs, particularly where you have your each other named as beneficiaries, perfect.

But you don't have contingent beneficiaries.

I would, after counseling with your attorney, strongly urge you to look very carefully at adding contingent beneficiaries.

Let's pick a number and say you have IRAs worth $100,000.

Currently, you go each way.

If the Good Lord calls you home both on the same moment, they will need to go into your estate and be distributed weeks or months later after having gone through probate.

If you name a contingent beneficiary or beneficiaries, plural, the money will drop directly to them at the passing of the second spouse, and all of a sudden, no will is necessary.

Probate is not applied, and the money is available very, very quickly.

So contingent beneficiaries is a very, very important thing for you to consider.

Something for you to seriously not consider is the use of a living trust.

Sadly, in my experience, the vast majority of folks who have living trusts that have been drafted for them, in many cases sold to them, had no need for them, and they simply complicated their scenario.

They were sold to them on the basis of some misunderstanding that perhaps they would save on taxes.

They don't.

Perhaps that was the only method they had of passing assets without going through probate.

It isn't.

We just mentioned one, naming beneficiaries.

You can name a beneficiary on an IRA, you can name a beneficiary on a life insurance contract and annuity.

You can name, in essence, a beneficiary on virtually any asset that you can think of.

We talked in an earlier question about transfer-on-death and payable-on-death designations on bank accounts.

Those are in effect beneficiaries.

All of those, all of those pass assets outside of probate, not going through a living trust, not necessary to go through a living trust.

You could even, after consulting with an attorney for sure, decide it may be in your best interest to add your daughter to the deed of your home.

So lots of options.

But one thing is not optional.

Getting yourself a relationship with an experienced estate planning attorney that you trust.

Megan, we've covered a lot of ground, we don't have time for any more questions this evening.

I wish we did.

We wish we could jam even more of your questions into each and every show.

But I promise you, every question that comes to us is answered directly back to you with as much information as we can possibly provide.

So if you have concerns, comments, observations, questions, or you simply want a second opinion on the financial decisions you've already made, all you have to do is ask.

You, send me those emails, Gene@AskMTM.com.

We have an entire staff available and at your service to provide you with every information we possibly can.

Folks, thank you for spending part of your time.

You honor us by allowing us to serve you.

We hope that you've either heard enough or learned enough this week that you're going to want to return next week, and we're back in this studio to give you more of More Than Money.

Goodnight.