Good evening and welcome to More Than Money.

You've got Gene Dickison, your host, your personal financial advisor.

You have Megan Smale, your financial correspondent.

You have an entire team here at PBS's Bringing you the next half an hour of more than money.

If you're a loyal viewer, and I hope that you are.

This is season six for us.

This is a fantastic day, great opportunity for us to be of service to you.

But if you're a loyal viewer, you know exactly how this works.

You make us the most relevant financial show on television today, without question.

All the other talking heads talk, talk, talk.

They talk about whatever they want to talk about.

We talk about what you want to talk about.

We do it very, very simply.

You send us your emails.

You let us know what ours is of most concern to you.

What issues, what topics, what questions?

Quite often there are a lot several questions in in in one email.

And that makes sense because that's the real world.

Very few of us live in a vacuum.

Very few of us say, I only have this little tiny tax question.

It may be a tax question, but it may be tied to gifting.

It may be a retirement issue, it may be an Roth IRA.

All of these things come together in your lives and they truly come together here on more than money.

So you already know that for folks who are just joining us for the first time, and I am pleased to say that over the first five years of our existence, we have seen our show go coast to coast and border to border.

We get questions from across the country, particularly for some reasons, Southern California, which is lovely, truly lovely in most cases.

But getting questions from far afield is a very exciting and we are able to help them just as we are able to help you.

So if you want to send us that question Gene, GENE at ask MTM dot com works very, very well.

We are 100% committed to giving you the very best information that we can, no question about that, of being as open and honest and straightforward as we possibly can.

So that leads me to my next observation, which is this is what it looks like when Gene has really bad allergies.

Thank God for Roxy and her makeup skills, because otherwise poor really, but with a little bit of warranty, with lots of help from from our team and from Megan, we're going to get through this just as wherever you're seeing us, you've got your own challenges, I'm sure, whether they're allergies or beyond.

And that's what we do here.

We meet challenges and make sure that we give you the best, the best ideas, the best strategies, the best tools to get you from where you are to where you wish to be.

So thank you so very much.

Thank you for all your support through these years.

And goodness, we're just getting started.

Speaking of getting started, way we start every show is that Megan sets the stage with a question from you, Megan, Where do we start?

Well, before we get to our viewer questions, I have an interesting headline that I wanted your thoughts on.

It says, A New Jersey home builder who pays his workers over $100,000 wants young people to know construction can be a lucrative career that doesn't require college and businesses are desperate to hire.

What do you think about this, Jean?

Isn't that exciting?

I think it's incredibly exciting.

I think it's a very, very important thing that we pay attention to, that the world is evolving now.

I'm the product youngest of six of a carpenter and his wife, and he worked very, very hard, came from a large family.

One of my uncles was a plumber.

What was it like, Christian?

You get the idea of the trades were really, really important.

Yet all those years ago, not as well-regarded, perhaps not as well respected as they should have been.

College was everything.

I was the first in my family to attend college.

That was a tremendous opportunity and tremendous privilege I'm very grateful for.

But let's be clear, the world has evolved.

And when you meet, when you are what being invited, what a ridiculous word to spend a quarter of $1,000,000 to get a degree that will qualify you to do very little, if anything.

I'm not saying in all cases, but in many cases, as opposed to right out of school being involved in construction, construction of any type, all of the trades today requires that you be very smart, requires that you be very quick to learn, requires that you be very comfortable with technology.

Can you imagine an AC technician today that doesn't understand computers to the nth degree?

No.

So if you are that person or if your son or daughter, your grandson, your granddaughter is that person who says, I love working with my hands, I love helping people, I love building, I love fixing, encourage them at the age of 22, they could graduate from a college that they maybe didn't really want to go to, spent a whole lot of money and be deeply in debt that they really didn't want to borrow to have a degree and a in a and a discipline that maybe they can apply, maybe they can't.

Or they could be four years into a career.

And many of these careers are paying six figure incomes with no debt and the construction industry is begging for them.

By the way, it's not just the construction industry.

Look around this world.

There are opportunities for hard working, intelligent young people who want to grow into careers that have little, perhaps nothing to do with the traditional four year college.

And yet the upside, the potentials are fantastic Megs that was a great headline to to start off on your show.

Very encouraging.

Gives us lots of things that we can offer to our young people who are hard working and ambitious to make a real career.

Fantastic.

Where do we go next?

Well, now let's get to a question from a viewer.

This one says, My wife and I are nearing RMD age.

We both have Roth IRAs and had been adding about $5,000 each year during the last 20 years or more that we were working.

We have been retired for six years now wondering do we or our estates need to prove the CDs are Roths?

The question is because we had and continue using proper administrator to administrator transfers, switching with the banks to chase the banks, to chase to higher CD and immediate annuities.

Interest rates for the Roths throughout the 25 or 30 years, and sometimes holding the money temporarily in a Roth money market account to join some small Roths into fewer larger roles.

But the banks and insurance companies have always maintained them as Roths.

Do we or our kids dealing with our states need some kind of paperwork to prove the original money, and each transfer of any one of the Roths are actually Roths.

I hope you can address this on your fantastic TV show.

Your show is so great.

Thank you.

Well, that's very kind of you.

Very kind words indeed.

And all of them are true.

Just having some fun with you.

Bottom line is that you will be very happy with the answer.

You might not be as happy as as you would wish for the reason you're happy for the answer.

Gosh, it sounded like a politician there.

My apologies.

The answer is you have nothing to worry about.

Nothing to worry about.

All these different transitions, bank to bank, CD to money market, money market to a an annuity, an annuity back to a bank, CD.

All of those have been accounted for to the IRS by each of your custodians year by year by year.

So there has not been a transaction, a movement and adjust ment that has not already been reported to the IRS.

Many folks are not aware that Big Brother, the IRS certainly has been watching every move that you've been making inside your IRAs, whether they be Roth or Standard from the moment you open your IRA, they require custodians.

Those are the folks they are holding the money for you, for your IRAs.

They require them to report on an annual basis account balances beginning at the end of the year and transactions throughout the year.

Every single year you had an IRA.

All of those have been reported.

So the good news for you, all of that paperwork that you were dreading, that you might have to try to dredge up or recreate or create in the first place, You don't need any of it.

The IRS already knows you shall be fine.

Good answer.

Maybe not for the right reason.

Meg's Where do we go next?

Well, next up, we have a question for someone's sibling.

It says Hi.

Thanks for a great show.

I hope my 79 year old sister with her finances.

She is a resident of Pennsylvania.

She has a brokerage account, a Roth IRA, a checking account, and an inherited IRA.

The total of all her accounts is over $3 million and she is financially secure.

All accounts have her three siblings as named beneficiaries equally.

She also has a will and the beneficiaries are also her three siblings equally.

She has no other assets, no house, no car, no outstanding debts.

It has been recommended that she open an account with no beneficiaries, so it is governed by the will with enough money in it to pay inheritance tax, any outstanding bills, final expenses and probate costs.

In Pennsylvania, the 12% inheritance tax would apply, so this account would need to be quite large but could be a brokerage account.

Do you think this is a good idea or do you have an alternative approach?

Would your answer be different for a person with a similar case but with ownership of a house and a car?

Thank you.

Thank you very much for your kind words.

This is interesting.

First of all, thank you.

Thank you.

You have taken on onto your shoulders the responsibility for caring for your sister.

That is very, very kind of you.

It is truly an American trait that we care for each other.

And that's fantastic.

Your sister has substantial assets.

That's very impressive, of course, and she wants to make the transition as simple as possible.

And that's quite admirable as well.

So the idea is the challenge for her, the challenge for her estate is that there will be certain expenses, taxes, of course, final expenses, etc., that may not be funds may not be available through the estate.

Everything is set up to go very smoothly from an account accounts, multiple accounts to her beneficiaries without going through probate, without being required to be deposited into an estate account.

Now the question at the very end of the email was Would my advice be different if they owned a car or a house, etc.?

The answer is maybe, maybe.

Let's pick a number and say it's a $400,000 bill that we want to pay attention to.

If they had a home, if she had a home, personal property that was worth four or $500,000.

Yeah.

Then that becomes easy.

You leave it in her name at her passing.

It goes into the estate that pays for all the bills.

Everything else is smooth.

That is not the case here.

So the question is interesting.

It's a strategic question how to make it easier on her beneficiaries.

Could she segregate some block of money?

We're using $400,000 as an example.

I think 500 is probably a better number.

So let's use that as an example.

$500,000.

Can we segregate that into an account that does not pass by a beneficiary?

Sure.

Yeah, that absolutely can be done.

Rather easily.

Is it necessary?

Maybe not.

Inside the various accounts that this young woman has, she can split the beneficiaries in very different ways.

So let's use $1,000,000 is a nice round number example in an IRA currently it's split three ways in two three brothers accounts.

Off we go.

It could be split into four ways, three for the brothers, three shares for the brothers and one share to go into the estate to pay for the taxes.

So very simple does not require a new account, does not require any great stress or anxiety of getting funds from one spot to another.

Rather simply done.

Now, if for perhaps non-financial reasons, maybe this young lady, the sister that we're assisting to help, is very adamant about getting things done cleanly, visibly.

I want it segregated.

I want a different account.

I would strongly encourage her, number one, to seek the counsel of a trusted and experienced estate planning attorney, at the very least an experienced tax adviser.

And most likely it would be useful to have a financial adviser take a peek as well.

But here's a thought.

Just a thought.

If we have that $500,000 in the estate, the tax is roughly $60,000 on the amount that's there for paying the taxes.

If, on the other hand, this young lady decided that she was comfortable gifting $500,000 into an account now controlled by her three brothers, her main beneficiaries, not only would that money then be available when the time comes, but that money also would be removed from her estate and the family.

She will be deceased.

Of course, the brothers will save.

The surviving family members will save approximately $60,000.

Where I come from, that's a lot of money.

So it is a very interesting variation on your idea, on your theme that might very well not only put her heart to rest, put her mind to rest and end up saving an awful lot of money.

It's something that she should look at very, very carefully.

And of course, if she needs additional assistance to get from point A to point B, reach back out to us, we're happy to help.

Fascinating.

Very, very good question.

Meghan, do we have another good one?

Of course.

Our next question is about retirement.

This one says, My husband passed away a few years ago and he had a4001k that I am the beneficiary of.

I'm not sure how to handle this.

401ki am 58 and I still have a year and a half until I'm 59 and a half.

I am worried about the taxes that I may have to pay.

I would like to retire at 59 and a half.

I have 560,000 in savings and 500,000 in a41k.

I do not have a mortgage, car payment or any other debt other than my taxes and basics like car insurance, phone, food, etc.. Any advice on any of this would be greatly appreciated.

Thank you.

Well, this is this is actually a far more common question than you might expect.

Unfortunately, folks do pass away at a young age.

This young lady has been passed away a few years ago, I'm guessing, in his mid fifties as well.

She's not even 60 years old at this point.

And she's wondering what are the best approaches that she should take?

There is one critical piece of information that is missing, sadly, from her email.

And as you are listening, if you're thinking, you know, I think I'll send an email along about retirement as well.

The critical piece of information that drives all retirement questions, all retirement questions, How much money do you need to have as a monthly income so that your bills are paid?

You're happy and healthy?

That's the pivotal question for every retirement question, people go away in retirement.

Can I travel?

How much do you need on a monthly basis So your bills are paid, you're happy, you're healthy.

That will tell me how much excess you might have for travel.

May I give gifts to my kids and grandkids?

How much do you need?

You're, you know, the mantra.

If we have excess, the answer is yes.

If we don't, the answer, sadly, is no.

So these are the kinds of investment questions.

I'll give you another example.

When should she start taking Social Security?

At this point, we don't really know.

We know that at this moment she has about $1,000,000.

It's a little more but round numbers, I don't get a headache.

So $1,000,000, roughly.

People go, she's a millionaire.

She can retire, she can do whatever she wants.

What if her monthly requirement is $10,000, $10,000, 120,000 a year against $1,000,000 is 12% spending.

That is approximately three times the 4% spending level that most financial advisors would agree is a reasonable approach to retirement.

So 120,000 against a million.

It doesn't work.

It doesn't work.

What if it were quite the opposite?

What if she said to us, I need about 3000 a month?

She's already said I have no mortgage, no car payment, no other debts other than taxes and basic expenses, etc.. What if she said to us, I need 3000 a month, $36,000 a year against $1,000,000.

It's about three and a half percent withdrawal rate, as we just mentioned, 4% is kind of a guideline.

It's used by many financial advisors as kind of an upper limit guideline.

Well, she's well under that.

Could she afford to retire?

The answer is yes.

If that is the case and making it even better, let's assume that is the case.

3000 a month is her target and she is.

So can she comfortably retire now?

The answer is yes.

And does she need Social Security Very quickly, The answer is no.

She's already able to pay her expenses on everything that she's saved, received from her husband, and saved it on her own.

And as a result, she can choose to take Social Security when it best fits her.

She is not forced to take it At 62, and it's really dropped dramatically reduced.

She can certainly wait until her normal retirement age, approximately 67.

She could even hopefully she has wonderful health, wonderful health.

She could take it at 70 when it's maxed and all of a sudden her 3000 amounts will become 6000 amount of income with no increase basically, of her expenses.

Now, when she says, Can I travel answers, of course.

Can I make gifts?

The answer is, of course, my car is 11 years old.

Can I get a new car?

Of course.

So you see, number one, that she has some great advantages.

Number two, she has some very interesting choices that she will be faced with.

And number three, until we know the answer to the magical question, the key question, the core question of all retirement questions, how much does she need on a monthly basis so that her income is sufficient to pay her bills and make her happy and healthy?

Until we know that we can't completely answer her question?

But my my gut says she's going to be fine.

Fasting, very common.

These are the types of interactive questions that we see quite often.

Meg's Where do we go next?

Well, let's see what kind of advice we can give the next people.

This is a dad trying to help his kids out.

It says, Thank you for providing such valuable information through your PBS and radio shows.

I have gained so much knowledge that I can use now and in the future.

The service you provide is very much appreciated.

I am writing because my wife and I currently have two sons in college.

They will both graduate in 2026, one with a bachelor's degree and the other with his doctorate in occupational therapy.

As he has always wanted to help people, our sons have needed to max out the amount allowable in federal student loans, and as such, my younger son will graduate with about $30,000 in debt and our older son would exit graduate school with about $150,000 in debt.

I currently have about 1.4 million in my retirement account and will be turning 59 and a half about the time that they are graduating.

I have no real plans to retire, but when I do, I will receive about 30 $500 a month pension when they graduate.

My wife and I would love to withdraw the amount of their student loan debt, plus enough to pay for whatever tax burden is incurred by doing so from my retirement account and pay off their student loan debt, we would gain much pleasure giving them a clean slate and allowing them to start their careers.

And the next stage of life without the burden of student loans.

I'm fairly confident that we can live comfortably off of my pension, future Social Security and the balance of my retirement account.

Even after subtracting the roughly $200,000 to pay off the student loans.

But I would love to hear your advice about this.

Thank you.

I'm not sure you're going to love to hear it.

How soon is too soon to help your children?

59 and a half may very well be too soon.

You have heard me mentioned on air many times the triple H Club, Happy, healthy 100.

That is our goal for everyone who joins our Triple H club.

And it's voluntary.

There's no dues, it costs you nothing.

Just decide.

I expect to live to be 100.

I expect to be happy and healthy the entire time.

I'm not crawling across the finish line.

I want to be robust.

I want to be full of life.

I want to be joyful and I want to be 100 pretty simple 40 years.

1,000,004 is a lot of money.

There's no question about it.

That is a beautiful thing.

Congratulations to you.

Tip of the hat For a 40 year journey that has twists and turns ahead of you that we can't even begin to predict.

I have serious concerns.

The pension helps me a lot.

You will have a guaranteed income of 30 $500 a month, which right now is lovely.

In ten years.

It's okay, in 20 years it's air.

And in 30 years it's not very impressive.

And you'll still have for ten more years to meet your happy, healthy, 100 goal.

I get how happy it would make you to assist your sons and have them be debt free.

I get that.

Is is this more about you or is it more about them?

It sounds to me like you have helped them dramatically.

It sounds to me like you've raised two fine young men who can stand on their own two feet.

By the way, I have a fair amount of experience.

My daughter went to a college where they had a program in physical therapy.

Many of her friends went on to get their doctorates.

They are what's the correct term.

yeah, Well, employ me now.

So yes, 150 grams a lot.

But if 150 grand allows you to serve people and also make 100, 125, 150 175000 hours a year, then handling your debt yourself could very well be appropriate.

Now, if you want to meet in the middle somewhere, I was going to use the word hybrid, but that that has such a political connotation these days.

Let's let's call it a compromise.

You want to meet in the middle.

If you take 200,000 plus out of your accounts, pay tax, all of that comes due in one year.

Your tax bracket goes through the roof.

Everything you're currently making is being taxed at a much higher rate.

It may have long term impacts on your Medicare premiums, etc., etc.. What if instead of 200,000 that in one year you took 20,000 out of a year for ten years, your income tax bracket likely will be much lower.

You would have the cash flow that you could turn to your sons as they work down this debt over ten years and say, I know you put 5000, I'll put 5000.

I know you spent 10,000 on your debt.

I'll put 10,000 in.

You'll keep your taxes low, you'll keep your principal intact, and yet you'll still be able to do everything you want to do to help your sons and reward them and work shoulder by shoulder.

These are grown men.

They are not interested in handouts, but in partnership that be fantastic work shoulder by shoulder with your sons, assist them on a year by year basis and getting debt free.

You know, it'll take a little more time.

But to be blunt, the feeling it won't be one time, it'll be ten times.

I think you'll do just fine.

Folks, we just have a moment or so left in this edition of More Than Money.

We are so blessed to be able to serve you.

We would love to serve all of you.

Send me your questions.

Gene GENE at ask MTM dot com.

Send me those questions.

We have an entire team that will answer every single question back to you.

Every single question is answered.

Back to the asker.

So if you have concerns, we can help.

And maybe, just maybe on a future show you'll say, wait a second, that's my question.

He's answering my question.

And that'd be a kind of a bit of fun as well.

So thank you so very much for your viewership.

Thank you so very much for being part of our audience.

Thank you so very much for your thoughts and prayers.

We appreciate all of that.

And we'll return right back here next week and bring you another edition of More Than Money.