- And good evening.

You've got More Than Money.

You've got Gene Dickison, your personal financial adviser, with you for the next half an hour, giving you all of the benefit of my 780 years of experience.

I don't look it.

That's good makeup, trust me.

So, welcome, hopefully you have been with us in the past.

If not, and you're wondering exactly where will you stand with More Than Money, you are currently receiving the most relevant financial show on TV today, and we make that claim very confidently because you set the agenda.

Our audience, our viewers are the folks who decide what we discuss, what questions are important, what topics we advance.

Of course, in general, we talk about investments.

In general, we talk about retirement and income taxes, and estate planning, and so much more.

But "in general" doesn't begin to describe it.

It doesn't begin to tell you the flavor, the texture, the multiple dimensions that come out of your questions, because these are the real world.

These are questions coming to you that you are currently faced with, things that are at the top of your mind that you are most concerned with.

So if you are interested, maybe for the very first time in listening in, maybe eavesdropping a little bit for the kinds of things that your friends, your family, your relatives, your neighbors are asking, you're in exactly the right spot because that's exactly what we do on More Than Money, the most relevant financial show on television today.

It's a crazy, crazy world.

I hear that, gosh, half a dozen times a day from lots of different directions.

And I don't disagree.

What I disagree with is our focus.

There are a number of you, a small percentage of you, but a number of you who are focused on the crazy, focused on the dysfunctional, focused on the uncomfortable on the disturbing.

And I would encourage you, as I recently did to an email back to a viewer who had sent a laundry list of concerns, I would suggest my best advice.

Turn off the TV.

Turn off the radio that's disturbing you.

Grab someone you love and take a walk.

I think you will be far better served.

I think your blood pressure will be far better served, and you will lose nothing.

Because the folks who think that, whether you're investigating in your own mind the strength of the dollar, the international currency issues, BRIC, and the reserve currencies, and the Federal Reserve and Janet Yellen, if you think focusing on all of that noise is useful in terms of your financial success long term, you've really missed the point.

Because it isn't.

That noise, that background noise, that cacophony has been around forever, and always will be.

The topics will change, the players will change, but the cacophony goes on and on.

Apparently, "cacophony" is my word of the evening.

See if we use it later.

So for my purposes, I think you need a good, strong, strategically-wise approach to your finances, an approach that will weather all the seasons.

"Evergreen" is a good word.

It's of course, weighted down a bit in winter, coming back to life in spring, flourishing in the summer, and hopefully, right along the way, harvesting some nice profits.

But whether it's investments or any other part of your financial life, take a deep breath.

Turn off the noise.

Hold hands with someone you love.

Go for a walk.

That might be...

I get it's More Than Money, but it might be the best financial advice that you'll hear this evening.

But I'm not convinced.

So let's see if we can top that, Megan, where do we start answering questions this evening?

- Hi, Gene.

That was excellent advice.

And we love the new vocab word.

Let's see if we can use it in this question.

This one's pretty lengthy.

It says, "I'm happily married to my wife of 20 years.

"I am by no means a financial expert, "but I do know more than the average investor.

"I do, however, worry about my in-laws.

"Unfortunately, my father-in-law has serious "dementia and will probably need care soon.

"I've asked my mother-in-law to let me review their finances.

"They have a person who has managed their money for "many years, but they are overly trusting and I have "no idea what he invested in or how much he charges "for management fees.

"I believe they've done reasonably okay so far.

"My mother-in-law has not been willing to share this "information and just says that their manager has been taking "care of them for years.

"My concern is that they could very, very easily "be taken advantage of.

"Her parents are lovely people, but they are not "very financially savvy.

"They could be heading into some long years of medical "expenses in the future, and I'm just trying to make "sure they're going to be in a position to manage those.

"I've done relatively well.

I'm in my mid-50s, "and have a net worth of over $10 million, "which may seem like a lot to some, but I also have two "college educations to pay for.

"I'd also like to close my company in another couple "of years, spend more time traveling with my wife, "get a nice boat and a house on the water, and try to start "a new, reasonably capital-intensive business, "which would hopefully work out.

"Here's my question, am I responsible for paying for my "in-laws' lifestyle and caretaking if they run out of "money because they didn't agree to let me "review their finances?

"I just feel like it puts me in a difficult position.

"My wife would pay for whatever they needed, "but that just doesn't sit quite right with me, "given both my offer to help with the financial review "right now before it might be potentially too late, "and how hard I've had to work to get where I am.

"It feels like a lose-lose for me.

"I'm either a jerk for pushing them to share their investment "situation, or I'm a jerk for not wanting to pay all of their "expenses if that ends up being the case.

"I know I'm fortunate to be in the financial situation that "I am, but that came at the expense of working endless "100-hour weeks for 25 years, plus missing birthdays, "holidays, vacations, etc.

"Can you give me some advice?

Thank you."

- Wow.

Yeah.

I'll give you some advice.

Buckle in.

Jerk, either way.

Yeah.

I don't think this scenario is what's going to be the determining factor about whether you're a jerk or not.

Wow.

There's just so much to unpack.

Ooh.

Okay.

Let's start with the beginning.

Gentleman, let's give him the benefit of the doubt, has... Is well-intentioned in offering his mother-in-law, because his father-in-law currently not really able to be participating, dementia being a challenge, offered his mother-in-law his expertise because he is way smarter than the average investor.

Okay.

Offered his services to review their financial picture, and she politely declined.

Assured him they have an adviser they've worked with for years that they trust.

That wasn't good enough for this... ...gentleman.

He is not interested in respecting boundaries.

He's not interested in respecting the independence of his in-laws.

It is clear from some of the details that come later in the email that this is all about him.

The words "me, me, me" are everywhere.

10 million, "I know that sounds like a lot, but it really isn't "because I have expenses."

Yeah.

All right.

Two colleges.

If you're as smart as you say you are, you've already saved for those.

Those are already paid for.

You got nothing to worry about.

Let's say you didn't.

Let's say you're not quite as smart as the average bear, and you start to pay for those, and you're silly enough to pay a quarter of a million bucks apiece for two.

So now you're not worth 10 million.

You're only worth nine-and-a-half million.

Oh, my goodness.

Your reference to, "Hey, I want a boat and I want a house.

"And I want to, and I want to..." It's all "me, me, me."

You've been married for 20 years to what sounds like a really wonderful woman.

Your reference to her was kind of offhand.

"She would pay for it without even thinking about it."

Of course she would.

She's a daughter.

She's a caring child.

She's...

These are her parents.

This is the way you should be thinking.

And let's just pick a number.

Let's say that this this gentleman, unfortunately, needs care, and they have nothing, they have nothing.

And someone is looking to you.

Of your 10 million, is it worth $1 million, or $1.5 million, $2 million so that your father-in-law-is cared for properly and that your wife feels that support and that love?

Of course it is.

Of course it is.

Do I think anything I'm going to say this evening is going to change your mind?

Of course I don't.

Of course I don't.

It's too far down the path.

It's too far down the path.

The "I worked hundreds of hours..." Okay.

Join the club.

You and millions of other people.

It doesn't make you special.

Obviously, it made you successful.

Hopefully you enjoyed the journey.

Because if folks get into business so that they can claim that they have a $10 million net worth, and they work so very hard and they miss families, they miss birthdays, and they miss, they miss...

It's all about you, again, it's all about you.

My wish... ...is that some of the, what, sarcasm that I'm expressing penetrates, maybe opens your eyes just a little so that you can see that maybe, maybe you were blessed with a $10 million net worth not so you could have your boat, your house on the water, your this, my that.

But so you could help other people.

Two children with colleges, in-laws with care, love, being able to be compassionate, empathetic, helpful.

Serve.

This is where the real value in life comes.

So am I concerned about you being a jerk, whether you do or you don't?

No, I think we're past that.

I think now what we're into is a prayer.

A prayer that somehow, somehow, perhaps something that I've said, perhaps something someone else has said, will cause you to go.

"Wait a second.

"Gosh, my focus is... "It's not on the right things.

"And I've got to get my head wrapped around "what is important."

And hopefully, you can understand that that's the people you love.

Goodness.

Well, wasn't that an interesting start?

Megan, where do we go next?

- We're switching gears a little bit.

This next question asks, "Is the money a beneficiary receives on a CD subject to "the gift tax rules?

If so, who pays the tax?

"The beneficiary, or my estate?

"The beneficiaries are a church, a school, some friends, "and one is for PBS39.

"I love your show and many of the WLVT programs.

"You are the best PBS station.

Thank you for your help."

- Well, how very kind!

And I would agree 100%.

PBS39, fantastic, WLVT, fantastic.

And so, what this individual is asking is not about gifts.

I know that that word was in there, but it was a misuse of the word.

These are bequeathments.

These are gifts, not gifts...

These are receipt of assets through an estate.

And the question is, who pays the tax?

Because in the state of Pennsylvania, there is an inheritance tax, a death tax.

If it is a non-profit, he mentioned a school, he mentioned a charity, he mentioned PBS39, they pay no tax.

They are deductible items from a tax standpoint for an estate, for the beneficiary.

For family members, there is a tax.

Typically, it's paid by the estate prior to the distribution, prior to the distribution.

So in almost every case, certainly the ones that are being professionally administered, the estate will open an account after the passing of the decedent.

Everything that's of value comes into that account, and then is dispersed according to the will after, after final expenses.

Of course, there's... We've got to get rid of you somehow.

So whether it's a burial service or whether it's a little less formal, however it is, final expenses, estate taxes, those are typically all deducted first, and then, the distributions are made.

So the heirs, the beneficiaries of your of your generosity typically are not involved in the tax portion of settling your estate.

But how very generous of you.

Very kind words.

We appreciate it very much, but I assure you, we are very patient.

We hope you live decades longer.

We don't need your money right now.

And your charities don't need your money right now.

Just stay healthy, stay happy, enjoy.

And we'll all be here, you know, when the time comes.

Megs, excellent.

Very, very good.

Where to next?

- Our next question says, "Hi, Gene.

First off, I want "to say I enjoy watching your program.

"I am turning 62 next month, and I'm tossing around the idea "of whether to take Social Security.

"I retired in 2021 and help my wife out with "her business when needed.

"We are fine living off of her salary.

"We do not have a mortgage or a loan of any kind.

"I do not need to tap into my 401k since my wife's salary "is covering our expenses.

"So my question is, should I take Social Security now and "invest that money into conservative funds "to benefit us?

"Or is it beneficial just to hold off and let my "Social Security benefit increase each year?

"My concern is if Social Security is going to be around "in the future, and should I reap the benefits now?

"Thank you for listening to my concerns.

"I would love to hear your thoughts on this matter."

- Well, you're very kind.

Your words are very kind.

But your question is very, very interesting.

And it's one that lots of folks listening tonight, lots of folks who are watching, they're wondering exactly the same thing.

Do we get while the getting is good, or do we wait and allow it to grow and get a much higher benefit in the future?

And when I say "much higher benefit," I'm not talking about a slightly higher benefit.

Using a simple example, let's assume this gentleman's benefit at full retirement age, in normal retirement age, 66-67, is $3,000.

If he takes it at 62, it's likely to be closer to $2,000.

We're talking about per month.

If he waits until it maxes out at 70.

It's likely to be closer to $4,000 a month.

So our partner and Social Security expert, Mr. Mark Bacak, has a very simple guideline as to when you should take your Social Security, and that is when you need it.

So according to your email, you don't want to take it.

You don't need it now.

Your wife is still working.

You're a kept man.

You send her off to work.

Hopefully you make her breakfast in the morning, have a little something ready for her when she gets home.

Maybe a little glass of wine, a little something to keep her happy out there working.

That's fantastic.

But you don't need the money.

It will be taxable.

It will be a decrease from your full retirement-age benefit.

There are a number of negatives.

However, is it possible that, yeah, there will not be a Social Security in the future?

Of course it is.

Of course it's possible.

Is it possible that politicians will make really bad judgment calls?

Ahem.

Possible!

It's to be expected.

Is it possible that you won't get everything that you are entitled to?

Of course, all of those things are possible.

So you've got to make a personal decision as to which approach reflects your beliefs most accurately.

The approach is I'm afraid that it's not going to be there, so I've got to get something out of this, or financially, I will be rewarded by waiting.

And by the way, we've done some research in our More Than Money world headquarters about investing "conservatively".

And you would have to see a gross rate of return, a gross return on your investments, of somewhere in the 7.5-8% range, between 62 and normal retirement age, and somewhere in the 10-11% range in order to match the natural growth of Social Security benefits, which is 6% between age 62, and your NRA, and 8% a year between your NRA and age 70.

Those are not conservative return numbers.

Those are pretty aggressive growth return numbers.

So you've got an assured growth number of 6-8%, which translate into a pre-tax number of, what, 8-11%.

So those are not conservative numbers.

You would not be able, in my opinion, to consistently match the natural growth.

So from where I sit, I think most of us in the 60s are going to see our retirement benefits from Social Security largely intact, I don't think completely, but largely intact for our lifetime.

If you're in your 40s, I would say maybe plan on half.

And if you're in your 30s or younger, I would say don't plan on any Social Security benefits at all.

So for you, a good answer.

For everybody else, ehh.

And speaking of ehh, what do you got back there, Megs?

- Well, that wasn't a very nice segue!

Hopefully we're better than ehh.

This one says, "I'm getting ready to retire.

"I'm getting a lump sum of around 200,000.

"My three daughters are my beneficiaries.

"I'm wondering, can I give them 10,000 each as a gift now, "or do I have to wait until I pass for them to get anything?

"Is there any penalty for that?

"Thank you so much for your help.

"I love watching your show."

- Well, thank you very much.

If I'm interpreting this correctly, you're getting $200,000 from either your retirement plan, your profit share, your 401k, it's coming to you from a retirement plan.

Typically, in order to avoid the tax on all that money, we would have that rolled into an IRA.

No tax impact on that at all.

So, 200,000 goes into your IRA.

There has been no tax paid on it previously.

There's no tax paid on it now.

So now we turn to the question of, can you make a gift?

The answer's sure.

Is there a penalty?

A penalty?

No.

Tax?

Yes!

It's an IRA or a retirement plan, same scenario.

Monies that come out have not been taxed previously, so you've got to look carefully at your tax bracket.

If you're taking, gosh, I don't know if I'm remembering that this individual has three daughters, or if I'm remembering I have three daughters.

Either way, if we have three, we're taking 30,000 out?

We're not.

We're taking probably 36-38,000 out?

We have to pay tax.

If you're a resident of the state of Pennsylvania, there's no Pennsylvania tax, but there is federal income tax.

So can you do it?

Sure.

Is it going to cost you a little more than just the gift amount?

Yes, it will.

Is it worth it?

Probably so.

Make sure that you take just a few...

If you sat with a trusted tax advisor after the end of tax season, if you sat with a trusted financial advisor, they can crunch the numbers for you in probably 15 minutes or less.

And then, you make your own decision.

But in all likelihood, you're going to end up doing it, and it's going to work out just fine.

Speaking of just fine, what's our next question?

- I liked that segue better than the last one.

This question, we have three questions in the question.

It says, "I have a joint bank account with my wife.

"I also have another joint account with my daughter "at the same bank.

"My daughter is listed as a beneficiary on the joint "account I have with my wife."

Three questions.

First question, "Is there any Pennsylvania inheritance tax "in the event my wife survives me on the joint account "I have with my wife?

"In other words, will she have to pay inheritance tax on half "the proceeds on the account?"

Second question, "Since my daughter is a beneficiary on "the joint account I have with my wife, will my daughter have "to pay Pennsylvania inheritance tax "once we both pass away?"

Third question, "Will my daughter have to pay "inheritance tax on the joint account I have with her in "the event that I pass away?

"I have all the relevant estate documents such as a will, "power of attorney, etc.

Thank you in advance for your help."

- Ah, very good.

A number of moving parts, but a bit simpler than maybe it appears.

We have two bank accounts.

He and his wife joint, he and his daughter joint.

The question is, when he passes, what happens?

From a tax standpoint, pretty simple, on the joint account with his wife, nothing.

There is no tax between spouses, so that works out pretty well.

And the second passing, whether it's he or his wife that goes second, then his daughter inherits that joint account.

And, yes, that is taxable in the state of Pennsylvania as an inheritance tax at a rate currently 4.5%.

The daughter's account is different, assuming that they are joint owners, at his passing, it's hers.

We don't have to wait... That...

I wish I hadn't said it quite that way.

Sorry, erase that verbally.

The daughter is not receiving this after mom passes away, she receives it as soon as dad passes away because they're enjoying ownership together.

She will pay tax on half of that account.

In terms of the legal ownership, she already owns half, so there's no inheritance tax on her portion.

It's already hers.

She is getting, receiving at dad's passing, the other half.

She will pay inheritance tax on half of that account.

So having all your documents in good order, having your daughter as a beneficiary in your joint account, lovely.

The joint account with your daughter should work out just fine.

Well done, you, well done, indeed.

Megs, let's see if we can make somebody else happy with a "well done."

What's next?

- Our next question says, "Can you please elaborate "on Social Security benefits?

"I collect $1,397 a month.

"I hear different stories on how much you can earn a year, "and that you can earn as much as you want.

"How much can I earn a year?

Thank you."

- Well, you've heard different answers because there are different answers.

It all depends on your age.

Prior to your normal retirement age, 66-67, yes.

You've got a challenge.

If you earn more than 21,000, roughly, the Social Security Administration will start reducing your benefits.

If you are normal retirement age or older, you can earn as much as you want, and it has no effect on your benefits.

So you've heard two different things because there's two different answers.

Prior to normal retirement age, if you earn more than 21,000, they reduce your benefits $1 for every $2 that you earn above that limit.

So if you earn $31,000, you will lose $5,000 of benefits.

You're collecting roughly $1,400 a month, $5,000 is roughly three months.

You will have three months that are then deferred.

You don't lose it.

It's not gone forever.

It's pushed off until a later date when you're beyond normal retirement age.

So, two different answers for two different ages that you will be either now or in the future.

I hope I help the little.

Speaking of helping a little, this show goes like a blaze.

You don't want to get settled in because half an hour goes very, very quickly.

First, I want to thank you for being part of our show.

Secondly, I will invite you to be an even bigger part of our show.

Send us your emails.

Gene@AskMTM.com.

Send those to me, my entire team is at your service, and we answer every single question back to you.

Even the silly ones, even the hard ones.

We answer them back to you, and we're happy to do so.

And maybe you'll see your question answered on a future show.

Thanks again for being part of the show.

Come back next week when we're returning with another version, another edition of More Than Money.

Goodnight.