Good evening.

You've got more than money.

You've got Gene Dickison, your host, your personal financial advisor, and Megan Smale, your financial correspondent.

We are here to serve you our entire team.

Our PBS39 team.

Happy to be at your service for the next half an hour.

We are all yours.

And that's a pretty important thing, actually, when you think about it.

There's so few things in America today that's so reliable.

as every week having at your service a financial advisor with 780 years of experience.

That's where those mysteries has a possibility.

Such a youthful gentleman, obviously something strange there.

But we'll talk about more more about that perhaps later in the show.

But bottom line is we are here to serve you.

That sounds very altruistic.

And it is.

We're wonderful human beings.

Well, Meghan is bottom line is it is altruistic, but it's also very self-serving.

my goodness.

We are we lay claim on more than money to being the most relevant financial show in America today.

We lay claim that there are no other financial shows as relevant as we are.

For a very simple reason.

You you make is the most relevant because you send us your questions.

You set the agenda, you set the priorities, you share with us your concerns.

You share with us your challenges, you share with us your questions.

And that allows us to explore topics that are really important to you.

Yes, I could come on and I could bore you for the next half an hour with all these IRS subsection codes on Roth IRA conversions, you would fall asleep.

Likely.

So what I bottom line is that that's not how this works.

Well, what actually works for the only thing that ever has worked is a question that's important to you and an answer that helps you go from wherever you are to wherever you wish to be.

And that's what we do really, really well.

We've been doing it for, yeah, multiple seasons here on PBS.

And by the way, to all of you who are seeing our show across the country and from border to border, thank you so very much.

We're getting a lot of responses.

Again throughout the country.

So PBS systems are picking this up.

We appreciate that very, very much.

It gives us a chance to serve more and more and more people serving, by the way, is rather easy.

All you have to do is send us your email, Email Gene, G-E-N-E at ask MTM dot com G-E-N-E at ask MTM dot com.

We answer every single question back to our viewers.

We have a tremendous team that does have with us are more than money advisors are fantastic and every single question gets answers even the silly ones, even the rude ones, we don't get very many.

We don't get very many.

You are wonderfully polite audience Fantastic.

When I mess up your you apologize to me for correcting me.

I appreciate that very much.

You're very, very kind.

We answer every single, quite even the hard ones who we have to do some research.

We answer those back and maybe, just maybe, you'll see your question on a future show which would look kind of like this.

Megan, where do we start this evening?

Well, we're going to be talking about that 780 years a little earlier on in the show than you thought.

This one says, I have watched more than money for years now.

I'm confused about something Gene says.

He states he has 780 years of experience as an advisor.

It has been the same number of years experience ever since I started watching years ago.

It never increases.

Is this some kind of time warp?

I like the show, even if I don't always agree.

Thank you.

Well, first of all, thank you.

You're very kind.

Yes.

Time warp.

Not really sure about that.

This is not sci fi.

This is this is.

Well, maybe it is.

Who knows?

Lots of folks have noted that, especially on our radio show.

We've been on radio now for 34 years and 780 years of experience came on board, maybe ten years in.

So for the last 25 years, it's been 780 has not changed.

It's one of life's great mysteries.

Isn't it wonderful that there are mysteries still in this world?

They're just making discoveries all the time that you go, Wow, that is fascinating and it's mysterious.

I've been studying physics lately, and some of the things that are being uncovered are just, just staggering.

And how wonderful they are.

And up till now, they've been mysteries and we're just we're we're peeling back the layers of the onion is fantastic.

That's not really the reason we wanted to include this question in our email.

The line was, I like your show, even if I don't always agree.

That's one of the highest compliments I think I could ever get.

I think that's fantastic and I think that's a huge compliment to you.

I don't know you, but I send it back as a compliment to you and I would suggest my personal opinion.

I could certainly be wrong.

I'm not, but but I could be.

But I'm not.

That 98% of Americans are just like this person.

I don't always agree with you, but I like you.

I like your show.

I like.

I like the work you do or I like the church you go to or I like how you helped out that person or I like whatever.

That's America.

America, we we have lost track of the term melting pot.

Melting pot where folks came from.

So many different spots on the globe to come and join us.

And yet we're all Americans.

Yes, there are times when it feels like we're divided.

Actually, I think it's more times that we're being told by people who have agendas that we are divided.

But from this spot where I in broadcasting here in Bethlehem, Pennsylvania, I can walk in any direction.

I can find folks who are very, very wealthy.

I can find folks who are barely paying their bills.

I can find Republicans and Democrats.

I can find people of all races and creeds and religion.

And I'm going to guess and I would be right, 98% of them, they're fantastic.

They're just fantastic.

Two percent, Let's not talk about that.

We're on it.

We're on a positive note here because I have an opinion also about the 2%.

But that's not for tonight.

that was very kind.

Meghan, where do we go next?

Our next question is pretty brief.

It says you mentioned an investment that only goes up and never goes down.

So I'm wondering what it is.

Well, it's one of life's great mysteries and no one can know.

I'm kidding.

Just.

All right.

Humor is not always easy.

We have mentioned investments that go up and never go down.

And this question being brief opens up a kind of a different view on that topic.

The investments we were talking about, we're investing in the stock market where there's go up the investment platform goes up when the market goes up, but does not necessarily go down as the market goes down.

But the reality is if you're looking for investments that go up but not down, there is a fair number of those.

Start with CDs certificates of deposit go up.

They don't go down.

Now, admittedly, they may not go up very much.

Admittedly, they may not even keep pace with inflation.

But in a very simplistic approach, they go up, they don't go down, are fixed annuities.

Fixed annuities are very, very much in a very simplistic way of looking at it.

They are tax deferred CDs and your principal is protected by the full faith and credit of the annuity company and your interest is again guaranteed by the full faith and credit of the annuity company.

So they go up but they don't go down.

So there are a fair number.

Have always been a fair number of investments that go up and they don't go down.

What you're referencing is something that's relatively new to the investment world.

It is a platform that is referred to as buffered.

These are investments typically in the stock market.

It might be the S&P 500, it may be the Nasdaq.

There are lots of different types of investments that this can apply to.

But through the use of options, the investment manager can protect against losses.

Originally, when these platforms first debuted a number of years ago, the downside protection was typically -15%.

So you invested in the S&P 500.

If it went up five, ten, 15%, you earn 510, 15%.

You were typically capped out at 15% roughly.

So if it went up 20, you made 15.

If it went up 25.

You made 15.

If it went up seven, eight, nine, you made seven, eight, nine.

You made 100% up to the cap and then you were content.

And if the market were down five or ten or 15%, you lost zero.

Now, there are lots of you out there right now.

They're going to what?

How is that possible?

There is very easily possible.

It's very easily done.

It is relatively new five years or so.

So if you've not yet heard of this opportunity, where you invest in the stock market goes up, you turn a profit.

If it goes down, you don't lose money up to a point.

That's not unusual.

Lots of folks are not familiar with that.

Lots of financial advisors are not familiar with it.

So that's kind of fascinating to me personally as a financial advisor, 780 years of experience.

Bottom line for you is for folks who have concerns about the world, who doesn't for folks who have a need to rely on their investments and not lose a great deal of money, that makes sense, particularly folks who are retired or soon to retire.

These types of investments can give you great comfort.

Now, for some of you, you're saying, wait a second, wait a second.

-15 is good.

But back in eight, why do we even have to talk about it?

It went down 35%.

I was still lost 20% of my money.

Well, since this type of investment has debuted, there have been various iterations, various flavors of these investment platforms that have arrived.

Some protect down to -30, some protect down to -40.

And are you sitting down and why wouldn't you be why are you watching my show standing up?

That's weird.

There are types of investments of this variety that now protect down to 100%.

You can invest in the S&P 500 or other stock indexes.

If the market goes up, you turn a profit.

As the market goes down even 100%, you lose nothing.

That's pretty fascinating.

It is not for everyone, but it is very accommodating for most people.

In years past, these types of guarantees were available to the very rich hedge funds where you needed minimum to get into the fund, $5 million.

So that effectively eliminated 98% of us.

Now, through the platforms that we're discussing, exchange traded fund platforms, you could be involved in this type of investment for a thousand bucks, 1200 bucks, 1800 dollars at ETFs come in whatever amount of money you wish to invest.

Typically $1,000 is pretty pretty close to the minimum.

But you're sitting here going, This sounds great, but I bet it's for the rich people.

If you got 1500 bucks, it's still works.

It's a fascinating approach.

It is designed to protect.

That is the hallmark of this type of investment.

You can make very nice returns, not tremendous nice.

But when the market kind of punishes a lot of people, you don't have to be one of those.

Pretty fascinating stuff.

Megs, excellent question.

Hopefully you have another excellent question.

I do.

Our next one says I have been watching your PBS show for over a year now.

You need to say 781 years and counting because we are 83 and still counting.

I like your sense of humor very much.

And your to the point answers My Roth has well over 2 million in it and my wife has a little less than 100,000 in hers.

We've been helping our children, grandchildren and great granddaughter.

Every year we are living on our other accounts.

Two questions if I pass First, should my wife put my Roth into her account or keep them apart when she dies?

The will said the stocks will pass to our son and daughter.

Will they have to take the money out in ten years?

Thank you.

Well, first of all, thank you again for knowing 780 years.

That's always good.

Thank you for the kind words.

Okay.

Roth IRAs have kind of a different impact in an estate at your age.

And age is the key issue.

It rarely is the key issue, but in this case it is.

If you should pass before your wife, she can absolutely accept your Roth IRA as her own.

And there is I would be hard pressed to come up with a reason why she would not do that.

Typically, these kinds of decisions have some good news, some bad news, some pros and cons and age.

If she were under age 59 and a half, I would have a very different discussion.

She is not.

She is over that age.

She can accept that as her own.

Roth IRA, when your you have both passed and your family has inherited the Roth IRA, does it still come out in ten years?

The answer is yes.

But the difference is that it is not taxed.

The IRS makes you makes a beneficiary, remove the money and reenter it into the taxable world.

Potentially.

Potentially.

But there's no tax.

So using a Roth, as you have, has been brilliant on your part.

Brilliant indeed, and exceptionally brilliant with the impact on your family in generations to come.

Now, I mentioned as they take the money out, it's not taxable, it reenters the taxable environment.

Perhaps recently we had a fair number of these types of situations where I'll use a simple example.

An individual inherits a Roth IRA that has a $100,000 in it.

They know they have to take the money out.

And now the question is back into the taxable environment.

Well, maybe not if they are employed at that point.

If they have access to a401k, they may very well find that if they have not been maxing out their contributions 30,000 a year or so, they may have been putting in ten or 15 because that's what they could afford.

If they take 10,000 a year over ten years out of that Roth IRA, no tax.

Add that to the investment.

It's going into their 401k.

They have two choices.

They can add it to a tax deductible 401k, Wouldn't that be lovely?

The 10,000 comes out in the tax and you save perhaps $2,000 on tax going back in or in my opinion, a far better idea.

10,000 comes out of the inherited Roth goes into a Roth 401k there's no tax savings up front, but you pay no tax on the money to begin with.

And now it's in a new cycle, Roth IRA.

And that will grow for as long as you live tax free.

You can take that out as your grandfather or great grandfather has done tax free.

It is a very, very interesting strategy that has recently, particularly in recent memory, has as specifically helped a fair number of our clients as they've come through are more than money platform.

So very interesting idea indeed.

You have done brilliantly.

I hope your family appreciates and I'll bet they do.

I bet they do.

And by the way, 83 still counting 17 more years.

Happy, healthy, 100 Triple H Club.

Good for you.

We'll stick together.

We'll be all right.

Megs, that was fantastic.

Fantastic.

Next, our next question wants to clarify something that you said.

It says, I just finished watching today's show and have a question about the 17 year old grandson's gift from his grandparents.

I actually have a 16 year old granddaughter and did exactly as you suggested with one question.

You mentioned providing up to the four thousand dollars, which was earned by the grandson into an IRA after the rule of 72.

Explanation You pointed out that he had he would have a pile of money, my words at retirement that was tax free.

I did this exact thing.

However, I put the money into a Roth IRA.

I rewound the show and never heard you say the word Roth.

Did I do something wrong by using the Roth or did I misunderstand that donating to an IRA for the grandson would make this a tax free benefit for the grandson?

You do a wonderful job of helping people and never fail to encourage others, regardless of age, to watch your show.

Thank you in advance for your advice.

you're very kind.

I appreciate that very much.

Very, very kind words.

I never don't appreciate double negative goodness.

I mean, we'll start that over.

I always appreciate when our viewers are paying such close attention that they think they may have found a little something that, hey, is that exactly right?

Let's roll the tape now.

We don't have any tape.

Come on.

That's ridiculous.

Bottom line is, as long as I said it was going to be tax free, that means it was a Roth IRA.

So you are on solid ground.

What you're doing for your grants.

Fantastic.

Good for you.

That's one reason I wanted this to be here.

Second reason was the rule of 72.

Lots of grandparents particularly have taken advantage of this strategy of helping their grandchildren, not by giving them a dollar, not by giving them a gift, by giving them a toy or a PlayStation something.

It's going to go and be gone.

But setting up Roth particularly grandparents of young people that they're very proud of is show me a $64,000.

How do you make 4000 when you're 16?

You worked.

It's called work.

It's a beautiful thing.

Work is it's got such a bad reputation.

People think it's a four letter word.

It's not.

It is glorious.

It's the way you serve people.

It's the way you advance.

It's the way you get ambition.

It's the way you accomplish money and and accumulate money.

It is work.

It's fantastic.

Fantastic.

And if you've been told otherwise, you've been fibbed to.

And call me up, straighten you right out, people go, Yeah, but four grand, it's kind of.

It really isn't very much money.

Well, let's think about it for a second.

The rule of 72 fascinating rule 72 says that if you want to know how quickly money will double, take the rate of return that you're getting and divide it into 72.

So, for example, if I'm getting approximately 10% a year return, there's no guarantees approximately.

I'm going to double my money every seven years.

This young man is 16.

He's going to need this money.

Maybe in 50, maybe in 60 years, let's use 50.

So 4000 when he is 23 is 8000.

It's not very much money.

When he's 30, 16,000 who cares.

When he's 37?

He's 32,000.

All right.

That's nice.

44.

It's $64,000.

Well, that that's kind of interesting.

51.

It's $128,000.

I'm going to round that down to 125 because seven years later, it's 250 and seven years after that, it's half a million dollars.

So how would you like to be the grandpa that created a multimillion dollar future for your grandchildren?

You could not necessarily do that with one deposit of 4000, but let's say you did five.

So over the course of five years, you have invested in the future of your grandchild, $20,000 over five years.

Two and a half million dollars is the potential balance in a Roth IRA when this individual, your grandson, your granddaughter, retires tax free, how would you like to be the grandparent that does that?

Fascinating, Megs, I know our next one's long.

You got to go quick.

All right, here we go.

This one thanks us for our wonderful show.

We'll just breeze past that.

This one says, I am a 67 year old college professor.

I plan on working for at least three more years.

I have a 401k valued at about $700,000 at this time.

I do not have any credit card debt and I have not started to collect Social Security.

I own a house along with my former partner who has not lived here for 12 years.

The house was purchased at $450,000 and is now worth about $650,000.

We owe $200,000 on the mortgage.

The house is about 3000 square feet and is perhaps more space than I will need in the future.

But I love living here.

My former partner would like to sell the house if I were to buy my ex's half of the house, I assume I would have to take the money from my 401k, which I assume is not a good idea.

Are there any other ways to do this, or does it make sense for me to just sell the house before I retire?

Thanks.

Do not sell the house before you retire.

If if I'm reading correctly, it says I love living here.

Gosh, quality of life is it's tremendously dependent on where you live and whether you love living there.

Obviously, you love living there.

Now.

Your partner's not been there for 12 years.

There's obviously a back story here that has nothing to do with us.

Let's assume your partner is very reasonable.

You will owe him or her somewhere between 125 and 200,000 bucks.

Because if we're looking at I haven't been here in 12 years and I have not contributed in 12 years, you don't get the advantages of the higher current value.

You get what you put in at the value many years ago, which was 450, you get to 225, there's still a 200,000 mortgage.

Let's assume you owe half of that.

That's 100.

This gentleman who currently owes 200,000 on the mortgage will owe another 100,000 to buy His partner out.

That's fine.

If, on the other hand, this has been a little different and the partner has been paying on the mortgage, paying on the taxes, basically 5050 right on through, even though he or she doesn't live there.

Okay.

Now we owe 200,000.

And I get that.

So should he take that from his 401k, which is without a doubt largely what he's dependent on for his retirement on top of social Security?

The answer is no.

And there are two ways that immediately come to mind that you might consider taking a look at this.

Number one, at your age, you qualify for a reverse mortgage.

And a reverse mortgage is a mortgage just like any other mortgage, except they have no required monthly payments.

So if all of this kind of falls together appropriately, you would get a reverse mortgage.

It would pay off your current mortgage, it would pay off your partner, and you would have no increased monthly payments.

As a matter of fact, you would lose your current mortgage payment.

You would no longer make mortgage payments.

That's pretty cool.

So investigating reverse mortgages have lots of moving parts.

It requires that you deal with a trusted, experienced reverse mortgage expert that is absolutely mandatory.

That's how challenging they can be in terms of understanding all the pros and cons.

But that may very well be the answer to your prayer.

If, on the other hand, for whatever reason, the reverse mortgage doesn't work out exactly right, you are 67.

You are a normal retirement age.

Would you like to wait until 70 to take Social Security?

Perhaps, But maybe if you were to take Social Security now, you could negotiate with your partner of paying him off over time.

So let's say your Social Security now is 3000 a month.

You pay him 36,000 a year for three or four or five years.

And hopefully your partner sounds like he is or she is sounds like they're perfectly reasonable.

They would go, Yeah, it's been 12 years.

What's three or four more?

So there's at least two different ways that you can do this without sacrificing your financial future and without leaving a home that you love to live in.

God bless.

God bless you.

You folks ask the best questions.

It is it is a joy to stand here, allergies and all.

It's still a joy to stand here and answer your questions because you have fascinating lives and you're so generous with sharing those questions with us so that everyone benefits coast to coast.

Folks that that you will never meet will benefit from you asking questions.

If you would like to ask a question, we would encourage that.

That'd be fantastic.

We answer every single question back to you.

You send this to me, Gene G-E-N-E, at ask MTM dot com, G-E-N-E at ask MTM dot com We answer every question back and on occasion you may very well see your question on a future show.

It gives us such pleasure to be able to serve you in that way.

So please share our show with other folks, Spread the news and remember that you can tell them we'll be back every single week answering your questions and much, much more as we return with another edition of More Than Money.

Good night.