And good evening.

You've got more than money.

You've got Gene Dickerson, your host, your personal financial advisor, Megan Snell, our financial correspondent in the wings.

Ready to pose your questions to me.

See if she can stomp the star.

And no, not stomp the star.

That's not what I said.

Stomp, stomp.

Who are you people?

Aggressive.

Bottom line is, if you are just joining us for the very first time, welcome.

I think you're going to find that half an hour goes very, very quickly.

Occasionally you will find yourself being entertained.

Often you will find yourself being educated.

Sometimes you'll find yourself being annoyed.

That happens when you reach this stage.

You have your own opinions, and sometimes those opinions are in complete agreement with yours.

Sometimes not so much.

But that's okay.

That's okay.

We're all solid folks here.

We're all adults.

Wear it well, reasonably adult, and we can agree to disagree.

It works out beautifully.

Well, we don't have to agree on everything, but I'll bet, I'll bet I'll wager that we agree on lots and lots and lots, particularly the types of things that will help you advance, your financial life, help you achieve the kinds of things that you want to achieve for yourself, for the people that you care about, the people that you love.

And, if we can help that, fantastic.

The rest of it, we'll sort its way out.

And the way we do that is really quite simple.

We ask you to send us your emails, your questions by email.

You send this to me, Jean, at ask mtm.com Jenny and ask mtm.com.

We go through those.

We answer every single one of course.

No charge, no obligation.

We get that information back to you and then we'll take a selection of those, ones that are either, quite interesting, we think will be interesting to many, many people.

Maybe unusual, a little different.

That's always fun.

Maybe a little controversial.

That's fun as well.

So, a good mix.

That will give you an insight into the kinds of things that your friends, your family, your colleagues, your neighbors, are concerned about.

And you may share those same concerns, if not Gene and ask him, TMZ.com, send us your questions, and we'll make sure that will help you as much as we possibly can.

With the advent of the New Year.

It is a, it's not, a, What?

Celestria.

Celestria?

Yeah, Celestria.

It's not a celestria magnitude event.

Oh, goodness.

The calendar changed, but it feels different, doesn't it?

It feels like you got kind of a fresh start.

You feel like you make some resolutions, make.

Make a little change.

Maybe make several little changes and get yourself going in a bit better direction for whatever's important to you.

And if we can help do that, it's exactly what we wish to do.

So let's get right to it.

Megan, who can we help this evening?

Hi, Jean.

We're our first email tonight.

Is a bit of a brief question, but we'll see how brief your answer is.

It says I watch the show all the time, and I need a new car.

Wondering how do I get the lowest price from the car salesman?

Thanks.

Well, I like this question.

I saw this one.

And, as a as the father of daughters, I often am concerned about them as they go to negotiate.

Car, anything, car purchases, car sell, the sale of a car, car repairs.

It's dealing with the car industry, especially for young women, can be challenging.

So, Yeah, I'm.

I'm I'm happy to to field this question.

I'll give you the best I've got.

It doesn't mean that I know exactly how you're going to squeeze the last dollar out of a car dealer, but at least we can get you on the right path.

And you need to be on the right path.

People go, what's the difference?

A few hundred bucks here and there.

That's not the case.

It's not even close to being the case.

A recent like, just within the last 60 days study was done of buyers on one particular style a pickup truck.

Admittedly, the pickup truck, what the manufacturers the mSRP suggested retail price is, is quite high in the high 70s, but the end sales price over dozens of different, negotiations.

The difference was, are you sitting down $17,000 from highest to lowest cost to the consumer?

That's insane.

And so this question, whether it's coming from a young lady, young person, not really sure it doesn't matter, is is extremely appropriate.

So let's start with the basics.

Make sure you do your homework.

There is no excuse at this stage of technology development to not go to a dealership knowing exactly what that vehicle costs, what it cost, the dealership, what kind of markup they expect to get, what kind of parameters you can work with in terms of of options and add ons, what kind you wish to have, which can you absolutely don't wish to have?

There's absolutely no excuse to not having that information with you in writing when you're in negotiations.

Very often the the process, is one of trying to identify on the part of a salesperson the weakness.

Maybe they don't know that undercoating shouldn't cost 3000 bucks.

Maybe they don't know if they don't know.

If you don't know, you are much more easily a victim of a bad, experience.

Bad experience?

Translation.

You're paying too much having that information get you started on the right path.

Second tip I would give you particularly particularly for young women, take your dad with you.

Take your boyfriend with you, take somebody with you that looks, more, more manly than you do.

That should be easy and, perhaps more experienced.

Maybe our dad, grandfather, grandfathers look very extinguished.

And, and and they're, like, knowledgeable.

And they're less likely to try to take advantage of someone who has more authority.

At the very least, you have a second set of eyes and ears so that if the, salesman says one thing and then five minutes later says something different, I went, whoa, whoa, whoa, I thought you said, oh, I didn't say that.

Yeah, you did.

All right.

Witness right here.

Second set of eyes and ears.

Very, very important.

Always, always, always.

Take someone with your wingman.

Wing person with you, to help in this process.

The process can be tiresome and wearisome, and it can take some time.

And having, a support is a very, very good idea.

Be prepared before they turn you over.

And they will to the finance department.

Be prepared again with your data, with your homework, of the kinds of things you want, the kinds of options you may wish, and the kinds of things you simply don't want, so that when that person behind the desk, well, let's start doing the paperwork.

And of course, you want whoa whoa whoa.

I didn't say I wanted that.

Be very clear.

Be willing to step up, check your notes.

Make sure you keep good notes.

Both, that you bring with you.

And during the conversation with the salesperson, make sure you have all of that.

Take your time.

And last but not least, if you really want to spend the least amount of dollars, the one of the most important philosophies or approaches you must have be willing to walk away.

Even if you think this is the car of your dreams, the car of your dreams exist at some other dealership someplace.

And if you're not getting that, the price, the terms, the financing, the respect that that you deserve, be willing to walk away.

One of the most powerful things that you can do, in terms of any negotiation, is to walk away from the table, not in anger, not blowing off, not burning bridges, just saying, you know what?

I just don't think so.

I don't think you've done enough for me to say yes today.

And I know you really want me to say yes today.

So maybe you to do a little more.

Or if you can't, I understand.

I'll just leave.

You're at my number.

I'll just leave.

And that can be a very, very powerful, negotiating tool as well.

I wish you good luck.

Cards are wonderful.

They're great fun.

I've had lots and lots of different kinds and had lots of great fun.

Some disappointments along the way, of course.

But cars can be great fun.

But they can also create tremendous amount of stress, particularly in the purchasing process.

So if you follow some of those tips, I think you'll do just fine.

I hope it helps, grandfather, to whomever you are.

Meg, that was great.

Short question, but a lot of good stuff there.

Yeah, this next one's a little bit longer with some more detail.

It's from some newlyweds.

It says my fiancé and I are getting married next spring.

We are both 61 years old, and we are financially secure with enough savings to let us retire comfortably within ten years.

I'm in the process of moving into her house.

We both have very substantial equity in our homes as well as very low mortgage rates.

Once I have moved in with her, the plan is to rent out my house.

The rent should cover my mortgage, taxes, upkeep, etc.

and perhaps with a bit left over, all expenses will be paid.

One of my fiance's children is an adult who is disabled and living at home.

Her other child is away at college.

My eldest child is living in Seattle and is fully independent.

My other child just started coll It would not make sense for us to have me assume co-ownership of her house for various reasons, including the fact that she wants her house to be a resource for her children.

After she passes wondering, do we split the expenses 5050 or 3 ways as there are three of us living under the same roof?

How should we divide expenses equitably, assuming we keep ownership of both our homes?

And what other advantages will come with being married?

Thanks.

I like the fact that Megan kind of smiled, even maybe giggled a little bit.

What other advantages are there to being married?

What sorts of finances aside, I think you can figure that last part out yourself.

Or at least I hope so.

Goodness gracious.

No.

Interesting.

Getting married shortly, fiancé.

I'm not really clear.

At age 61, that boyfriend makes any sense.

Girlfriend makes any sense, but.

Okay.

Whatever.

Your fiancee went down on one knee.

Sometimes hard to get back up.

Maybe to get that knee replacement.

Bottom line is, this is a very common scenario.

They can't grade divorce folks who have gotten divorced, 20, 30, 40 years into a marriage.

Lots of folks, sadly, have lost their spouse, for one of any number of reasons.

And yet here we are re finding love now 61, if you go back, gosh, World War Two era, if they're getting married at 61, they could look forward to a long, happy two and a half years of marriage.

Then they both die because back then the life expectancy was, what, 65, 66?

Life expectancy.

Now they could very easily enjoy 25 or 30 or 40 wonderful years together.

I pray for that.

For them that the advantages of their marriage are, just wonderful, blossoming for all those decades.

Indeed.

5050 or 2 thirds, one third.

My opinion, it's just me.

And it's not a financial rule by any stretch of the imagination.

But certainly something that the two of you should end up having a very solid discussion around before you get married.

But I think you step up, you go 50, 50.

The expenses of having an adult disabled child are significant.

And having, a spouse that helps shoulder the burden.

Fantastic.

And I think that kind of, maybe, penny pinching kind of an approach might set a tone that you really don't want to send.

You're retaining the equity in your home.

She's retaining the equity in her home.

That seems to me to be an even split.

At some point in the future, you may decide to sell your home.

If you do, it would be wise for the two of you to have an arrangement where you can live in the home that you share with her.

As long as you live so that, or some reasonable period of time, a year or 2 or 3 so that, at her passing, should she predeceased you, that the children have children?

The adult, children, her, her adult children have, a reasonable expectation of being able to use their inheritance.

But you're not ejected, so to speak.

In short order, upon her passing.

So, elder law, attorney, sometimes elder law and estate planning go hand in hand.

If you do not have very clear estate planning documents, now is the time you must.

The two of you must.

And in my opinion, probably healthiest for each of you to have your own, doesn't have to be a separate attorney, but it certainly has to have a separate consultation so that you are your best interests are being represented.

Her best interests are being represented, and hopefully they intersect rather nicely.

In the event that they do not having at least separate consultations but potentially separate attorneys will allow both of you to explore, the right compromise, the right hybrid, the right middle ground, so that you can be happy and healthy and comfortable from a financial standpoint and put a lot of those issues to rest.

If you don't do that, I can almost assure you that at some point, not maybe right away, but at some point during the next ten, 15, 20 years, there's going to be a problem.

And it may not come from your spouse, it may come from your stepchildren, it may come from outside the family.

Having these things as clear as they can possibly be as early as possible is a huge advantage to peace of mind and peace in the home.

Happiness and serenity.

So, attorney for sure.

Financial advisor, perhaps.

But bottom line for the two of you, make sure that you're very, very clear about what's best for each of you and make sure that that whatever you do, whatever, solutions you come up with, they meet both of your needs.

And if you do that, I think you guys might end up in the club happy, healthy, 100.

Join us.

Come a lot.

It'll be fun.

It'll be fun.

Speaking of fun, it'll be fun.

To answer another question, it would.

Our next email comes from someone that's maybe a little worried.

They're not doing too well.

This one says I am 65 and I don't have enough money to retire.

I have $100,000 saved.

This amount represents 401 K savings from previous employment.

On the recommendation of a friend, I transferred my money to a financial advisor, and they deposited it with a large financial services company and then told me they were going to put it in an annuity.

I can't remember the name of it, but I think the return was around 10%.

Wondering, is that the best investment for my money?

At my age?

I am clueless when it comes to finances.

Who should I be turning to?

Jean?

Well, goodness, certainly not me.

I mean, I'm fairly close to it.

All right.

No, no, wait a minute.

780 years of experience.

Yeah, we can help, but we're going to disappoint you first.

Your friend did, you know, favors, your $100,000 of savings, if I'm reading your email correctly, is the totality of what you've been able to hang on to during your lifetime.

Not a small number.

No need to apologize, but any financial advisor, any financial advisor, worth their salt?

Respectable quality.

Trusted.

A fiduciary would never put all of your money.

All of your money.

$100,000 into an annuity of any kind.

Annuities are, by their very nature, designed to be illiquid.

They are not designed to be.

Well, you know what I just remembered?

I really need a car.

I need 15,000 of that for my down payment.

Nope.

Not a good idea at all.

It's a liquid.

It is designed to be a long term retirement plan.

Strategy.

Now, a piece of the 100, right?

Yeah, maybe.

Yeah, I would have to have much more information about your situation in order to agree to that, because there are so many different types of financial tools that are available today that seem very, very similar, to annuities in that they can provide guarantees, they can provide protection against losses.

That's fantastic.

They provide, strong income streams.

The one thing, that often is, is, suggested by annuity salespeople particularly is, well, keep in mind, annuities, the profit, that you earn through an annuity, excuse me, is not taxed until you take the money out.

Wow, that that's pretty cool.

Your money's already not taxed until you take the money out from your email, it says that you have saved it in 41K plans and savings plans.

So this is under A41K plan or an IRA.

You will not pay tax on any of the profit until you begin to pull it out.

Now in your case you're saying I'm 65.

I can't afford to retire.

You are likely likely on track to go and work at least until 70 C you maximize your for your Social Security benefit.

That means you've got five years at least for this money to grow.

Tax sheltered already tax sheltered.

So to pay an annuity company for the, advantage of being tax sheltered is not only redundant, but it's a loss of money and any quality, trustworthy financial advisor, not salesman.

Financial advisor would already know that.

What might cause someone to tell you to put all of your money into an annuity, when it probably isn't in your best interest.

The word that comes to mind is commission.

There are annuity companies that are less interested in your, the benefit to you and much more interested in the acquisition of your money.

And there are, sadly, annuity salesmen who are enticed by annuity commissions that can be eight, ten, 12.

The worst I have seen recently is 14%.

So in a short order, this person claiming to be a financial advisor, if they convince you to invest your 100,000 into this annuity, might make 8000, 10,000, 12, even $14,000 of commissions for what will likely end up being less than two hours of work.

A true financial advisor, number one, would not allow you to put all of your money into an annuity.

It would, they would insist that you have some liquid money, some intermediate money, maybe some long term money where an annuity might be useful.

They would also not be earning $14,000 in two hours.

Most trusted financial advisors, Quality Financial advisors, Fiduciary Financial Advisors would need to be a serving you for the next 10 to 14 years for you to pay them 14,000 bucks.

And hopefully, hopefully they do so well that as a small percentage of your investments, your investments grow beautifully and as as they grow, they get a little more money, but it will take them a decade or more to make what this salesperson potentially is trying to make in two hours.

Hopefully, I have dissuaded you from, taking this action that your, your, observation that it appears that they're saying it will make 10% guaranteed quality guaranteed annuities.

Right now, even ten year annuities are paying around six.

So if this one is claiming to pay ten, there's gonna be a little wrinkle in there someplace.

And I'll bet if you sat with a quality advisor for a second opinion, that advisor could find that wrinkle and show it to you and again convince you not right for you.

Speaking of not right, it wouldn't be not right if we didn't answer at least one more question.

Worst segue ever, I apologize.

I was thinking the same thing.

No, our last question says my wife and I are 60.

We have roughly $130,000 left on our mortgage on a house valued at $400,000.

Our son wants to pay off the mortgage so that we can live mortgage free as we enter into retirement in the next few years.

He's also the executor of our will.

My wife and I are very grateful.

We want to leave the house to him and his three siblings upon our death, wondering, should we put the home in a trust or in a will?

We want to maintain control of our house while we are alive and allow him to pay off the mortgage as soon as possible?

But we're afraid either he or we will get hit with a gift tax.

What should we do?

Jean?

First of all, you say thanks.

What should you do?

What?

What a wonderful, wonderful opportunity, for, a son to be able to be in position to help his mom and dad in such a substantial way.

It's really beautiful.

That's a cool thing.

So, tip of the hat to your son.

Tip the hat to you.

Obviously raised pretty solid, son.

My guess is his siblings are equally solid.

They have great parents as you.

Now, a couple things, I'm going to start with the last question.

Gift tax.

None.

Zero.

Not to worry.

Not not an issue.

Doesn't apply.

I think I've been pretty clear.

Gift taxes, are largely misunderstood.

Gifting is largely misunderstood.

I, I have lost track hundreds, probably thousands of times.

People say, yeah, you can only give 19,000 a year and then you're in trouble.

That's not true.

It's not even close to being true.

So is your son in a bad in a bind in trying to give you more than $19,000?

Absolutely not.

Can he give you 130,000?

In essence, it's a gift to pay off the mortgage.

Answer's yes.

Will there be any tax?

You know, none whatsoever.

It is.

A gift is not taxable income.

Never is.

So you're free and clear.

Is there any gift tax to him?

No.

For another reason, a different reason.

The first is that gift taxes is actually technically referred to as the gift an estate tax gift and estate tax.

So, it is a it is an integration of what happens during lifetime, in this case yours and your son's, and what will happen at your passing and at his passing.

Well, in addition, in addition to, the 19,000 per year, let's assume for a second your your son is married.

You can double that up so he can give 38,000 in an annual gift with no issues.

Let's assume he gives 38,000 to each of you.

Now we're at, what, 76,000 or more than halfway home?

We don't have to worry much beyond that, because in addition to the annual gift exclusion, there is a lifetime gift exclusion per person right now that as of the new big beautiful bill, $15 million that anyone can give away to as many individuals as they wish and pay no gift tax whatsoever.

So no gift tax.

This is a very, very straightforward now from the standpoint of sharing with his siblings.

Upon your passing, does the home need to be in a trust?

No, particularly not if you intend on.

If you expect that your children intend on selling the home upon your passing?

If that is the case, you really don't want it in a trust.

What you wanted is in your name alone.

When you pass, the children will get a stepped up basis.

They will end up selling the home for either no, gain whatsoever, no tax whatsoever, or likely a small loss.

And all of a sudden they can sell the entire value of your home and pay no income taxes.

That's a pretty beautiful thing.

One caution, and I would recommend that you absolutely meet with a trusted estate planning attorney.

Made sure that I'm picking the number.

The home is worth 500,000 at your in in your will.

It describes it quite clearly that the first 130,000 goes to your son, and then the remainder of the equity in the home is split between him and his three siblings.

So split four ways.

That way he is rewarded for his generosity and everybody gets their fair share.

Fantastic question.

Congratulations.

A wonderful son indeed.

If you have a question, maybe you'd like to just brag about your son and daughter.

Grandson, granddaughter.

Tell me how wonderful they are to you.

I'll be happy to read those, Jean, and ask him to end.

If you have questions about retirement insurance, estate planning, business planning, IRAs, Roth conversions, the list is pretty long.

We're willing to answer all of this, so please send me your emails.

Happy to help.

I'm thankful that you spent part of your evening with us.

Hopefully you enjoyed it.

Picked up a couple ideas and will want to return when we're back next week.

Right here for another edition of More Than Money.