And good evening.

You've got more than money.

You've got Jean Dickerson, you've got Megan Smale, you've got the entire team here at PBS bringing you for the next half an hour.

The very best that we have to offer you the very best service, the very best information, very best context, so that you can make the best financial decisions for you.

It's a pleasure.

It's an honor to serve you in just that way.

And so many of you are taking advantage of that opportunity.

That's fantastic.

It's an easy opportunity to take advantage of you.

Send me your emails, Jean, and ask mtm.com and we answer every single question back to you.

We have an entire team of financial advisors that can assist you.

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But there is good information and there's an opportunity for you to explore, perhaps ideas that you had not yet bumped into, maybe look at strategies, maybe look at financial tools that will bring you closer to your financial goals.

Maybe help your family succeed in areas that they had not yet explored.

Those kinds of opportunities are all at your behest.

Simply send me your emails.

I'm very, very pleased to have that opportunity to serve you for so very many of you who see us literally coast to coast and border to border, we welcome you every weekend.

Typically since we are based on the East Coast in Bethlehem, Pennsylvania, we are, bemoaning our winter weather while so many of you are out there enjoying the balmy, what, temperatures that are found in the in the west, in the south, in the southwest and southeast.

Not this year.

So I think we, we are comfortable sharing our collective angst with, both snow, cold ice goodness weather, winter.

It has been global warming.

We are kind of hoping for some global warming here in the next few weeks, but bottom line is that by the time you see our show, as we craft our shows in advance, by the time we see our show, we hope, absolutely hope, that the, the weather has turned far more fair than it is currently.

Because when you see the, the, the temperature where negative when it starts with negative, that's never a good thing.

What is a good thing is that the opportunity that we have here this evening is to serve you and answer your questions.

So let's go right to our financial correspondent.

And Megan, where do we start this evening.

Hi, Jean.

Our first question tonight, we're going to find out who's being a goof.

It says I'm 23.

I graduated a year ago, and I'm enjoying my first real job.

The pay is fine, not great, but fine.

And the people are great.

I'm learning a lot and I'm excited about my future with this company.

The problem is my dad.

My company has a 401 K plan that I can invest in.

I showed it to my dad and he was very impressed.

He said the investments were much better than the ones he has in his 41K.

I started investing 1% of my paycheck in the 401 K when I could, one year after I started.

The company also puts in 1% for me.

I figured I would get my feet wet and see how it goes.

Dad isn't happy and says I'm missing out on free money.

It looks like my plan matches something like 4% if I put in 4%.

Dad said this is free money and I would be a goof not to grab it.

I say I have lots of bills, student loans actually not very much.

My parents paid for almost all my college, but a car loan and I want to get money together to buy a house.

I don't think I should put any more into something that I won't see for a long time.

Can you help me convince my dad that I'm not a goof?

Thanks.

As the father of three daughters and a granddaughter, I would love to be the one that stands up for you and support you and challenges your father to not be a goof and goof, as you've probably already figured out, is a highly technical term that we use in the financial advisory arena.

To indicate someone who's thinking is not quite as sharp as it maybe should be.

But in this case, heaven's thanks heaven for me.

I get to defend your dad.

Your dad's not only not being a goof, he is giving you such good advice, such very, very good advice.

He is counseling you to grab up free money.

Free money.

Now, I'll use simple numbers there.

Obviously they're not in your email, so these are not the correct numbers.

But let's say that you were, fortunate you got hired.

You have a nice salary, $50,000.

You're putting in $500 a year if you're paid.

Every couple of weeks, as most folks are, you're putting in roughly $20 a pay, and your company is matching roughly $20 a pay, and your dad is saying you're missing out on an additional $63 a paycheck.

So if you were to put 4% into your 401 K, 4% of $50,000, roughly $2,000, your company would match it.

It would be one of the most magnificent investments you will ever make in your lifetime.

Where you are guaranteed not kind of not hopeful, not being led down the garden path.

It's not a scam.

It's none of those things you are being guaranteed 100% return on your investment.

My goodness.

By the way, it's not in your question.

But if you, if you asked your dad, if you asked me, inside the 41K, you've got options of being tax deductible or tax free, traditional or Roth, please use the Roth.

Please use the Roth.

You're 23.

And yes, retirement seems like an eternity, right?

And in many ways, it truly is.

It's a lifetime away.

But that's one of the reasons why you want to do this.

Because it is an eternity, a lifetime away.

Pick a number 50 years away where your money will be compounding, where it will be, doubling tax free, tripling tax free, quadrupling tax free until you retire.

And then if you're using the Roth option, it will come to you tax free.

So right now you'll be able to compound your 500 plus there 500.

That's good.

Certainly better than zero.

But if you could compound 4000 your 2000 there 2000.

All of a sudden just for fun, let's say it doubles every ten years.

4000 becomes eight, becomes 16 becomes 32 becomes 64, becomes 128,000 bucks from something that you did decades earlier.

And, oh, by the way, 128,000.

You said, well, that's nice, but it's not a lot.

Yeah.

Do that for five years and have 6 or 700,000 in terms of your retirement expectations.

And do it for a a career and have millions, millions.

Your dad isn't being a goof.

You're not being a goof either.

You you appreciate that?

He's trying to help.

And, I hope you really appreciate that.

He's trying to help because there was a line in your email.

Let me make sure I got it right.

Student loans?

Actually, not very much.

My parents paid for almost all of my college.

Wow.

What a tremendous gift they gave you.

What tremendous examples they set for you, either being able to afford to pay for that out of cash flow, out of their income, or because they saved diligently many years before they knew they would need that money so that you could graduate with basically no debt.

I think your dad's a pretty smart guy.

Maybe, maybe a thank you note just to sort of get yourself at least to the 4%.

So you get all the free money and discipline yourself, budget yourself so you can do all those other things that are equally important.

Excellent question.

Good for you.

Thank you for being a listener.

Our youth segment, our demographic increasing day by day.

Speaking of youth segment, Megan would fall into that category as youth segment.

So useful, young lady, where do we go next?

Thank you.

Our next question is from what I would call a good Samaritan.

This one says I moved in with my mother so that she could retire.

I'm 55 and she is 77.

She had no retirement savings, but she owns a small home with a mortgage.

Every month I give her money to pay the mortgage and other bills.

Her next door neighbor, who is 72, disabled, and has even more serious problems.

Her husband's death has left her with very little money, and she has no family in the area.

And a social security check that doesn't cover her food and medicine.

I've been giving my mother's next next door neighbor around $500 each, month to keep her afloat.

She doesn't like asking for or accepting help, but she can't make it without it.

I once offered to buy her home and she and let her stay there rent free.

However, she said she wanted to leave her house to her niece.

She has since changed her mind and asked me to draw up a contract.

I'm looking for advice on how to proceed with this.

Are there legal templates online that might be useful?

I confess that I feel like I'm offering her a reverse mortgage.

I don't want to take advantage of her situation, but the money I am giving her could also be used to pay down my own and my mother's debts, or be put aside for my own retirement, which is currently underfunded.

Any advice you have would be appreciated.

Thanks.

Well, yes.

Compassionate for sure.

Good Samaritan, without a doubt.

Is this the wisest way to approach this is a very, very different question.

No one, hearing your email, that's the sincerity of your efforts and your willingness to help.

Not just your mom, but but in essence, the stranger is so fantastic.

It's so wonderful.

And now we need to add just a little bit of context or a little bit of framework around your efforts to make sure that they are doing what they're intended to do and that it doesn't end up being a negative for either you or your mom.

And one of the first things I would suggest, this this issue of this, this young lady not being able to cover her food, her medicine, her bills on a monthly basis, that she's apparently about $500 a month short of and that you're assisting.

There is a phrase in your email that says she doesn't have family, local.

Okay, but it sounds like she has family.

And it would, it would be my first instinct.

My first recommendation that you make an effort to speak to her family.

The fact that they're not local doesn't in any way inhibit their ability to give their mom money to give.

It could be mom.

It could be grandma.

Could be an it could be uncle.

Could be she mentions a niece.

Could be a niece.

If the niece knew that in her aunt had this wonderful, instinct to leave her her home.

Would she, reciprocate and have a wonderful instinct to help her on in your, in your stead so that rather than you putting out this money rather than you taking this risk rather than you, making the effort and purchasing her home and going through the legal mechanics, etc., etc.. We'll talk about that here in a moment.

Perhaps that's more appropriate for a family member, certainly more appropriate for a family member who might end up, yes, helping out, month by month, bit by bit, year by year, but end up, benefiting rather dramatically at this young lady's passing.

Now, having said that, there is absolutely no guarantee, most of my audience, most of you have been around a bit.

You've got good experience, you've seen the realities of the world.

And just because someone might benefit doesn't mean that they are equally, compassionate or equally willing to assist.

So it's very possible that at some point, the family says we're not interested, we're not interested.

And then, your, request of are there templates, legal form templates that are available online that might guide you into the mechanics of how to buy this home, set it up so that she has cash flow, yada, yada, yada.

Is is a very misguided idea.

Extremely misguided idea.

This is not a transaction.

It is a do it yourself project in any way, shape or form.

You must have, the counsel of a trusted, experienced estate planning attorney.

Most estate planning attorneys that the term elder law has been around now for a couple decades.

And there are firms that claim that that is their specialty.

And the reality is that estate planning and elder law are very much, hand in glove, very much integrated.

So if you have an experienced and trusted estate planning attorney, it is 99% sure that they are also are very familiar with the elder law issues.

So you need to be extremely, well, counseled as to the steps that you must take, the disclosures that you must make, while it it is absolutely clear to everyone who has listened to your email that you're doing this from from a, a point of kindness, of of a good heart.

But if again, there are individuals within their, her family who at this point apparently are either unable, do not know or are unable or unwilling to assist this young lady.

When the time comes where they discover that the house that they expected to inherit isn't going to them, it's going to the lady next door.

Might there be some concern?

There might be.

Hey, someone took advantage of her.

And the answer is sure, unless.

Unless you are well represented.

Unless she is well represented, as well.

So that we are 100% sure you are 100% sure she understands exactly what she's doing.

She's doing it of her own free will.

She's doing it with complete understanding.

These are critically important issues if you are to accomplish what you're trying to do so willingly, which is to be helpful rather than the reverse helpful rather than the reverse.

Are you setting up a reverse mortgage of a fashion?

There are a number of ways that this can be done.

You can certainly purchase the home outright.

Get a mortgage, write a check.

That kind of thing would not be my first choice.

Could you set it up on a, I guess, a semi reverse mortgage, a private reverse mortgage basis and provide her with monthly payments against the value of the home?

The answer is, of course you can do that.

But again, at the very foundation of whatever you do, whatever decision you make that best suits you.

And this, assisting this young lady, make sure, make sure.

Insist trusted, experienced estate planning attorney to make sure that everyone is, everyone wins.

Everyone wins.

We talk about win, win, win situations.

This has to be one of those in order for you to reach your goal of being a compassionate person and being helpful.

God bless you.

And, circle back.

Certainly if you run into issues where you're not getting great, advice or you're in still searching for that kind of trusted counsel, please let us know.

Outstanding goodness.

Makes some pretty interesting stuff to start.

Are we going to continue the pattern?

We always have interesting questions.

This next one says my husband and I are both 69.

We understand that we get more deductions this year.

We don't know how much or if they will really help us much, but what can you tell us about them and what should we be doing now?

Thank you.

This is, this is a pleasure to talk about.

So often when we talk about, income taxes, the answers are not very pleasant.

And, nobody's happy about paying income taxes.

Anyway, lots of folks who are, grumbling about tariffs, fail to understand from a historical standpoint that that's how the federal government supported itself until 1913, there was no income tax.

Until 1913, the government was run on tariffs.

And, gosh, let's see, 150 years or so, did pretty well.

But and then times changed and, the income tax became part of the fabric of how we run our government today.

Maybe that changes in the future, but for the moment, it's not changed.

And we've got to be, we've got to be cognizant.

We have to be aware of what the rules are and how they might benefit us.

In this particular case, they are indeed beneficial.

So, $12,000 more tax free income is the, is the headline because for seniors 65 and older, they will each receive a $6,000 additional deduction above and beyond the standard deduction.

So for a married couple, the standard deduction in this year is approximately $30,000, $31,000.

So if we are both over age 65, we receive an additional $12,000 on top of that.

And that makes our initial $43,000 of income income tax free.

Now for some folks are saying, wait a second.

I thought that the big, beautiful bill was to make Social Security, tax free.

And the answer that was the original, suggestion proposal.

It was, not agreed upon by Congress.

And Congress modified this to say, no, we'll give $6,000 deduction to each person.

And for the most part, that does not cover all of their Social Security, but it also does not require you be collecting Social Security.

Isn't that an interesting wrinkle?

So if you are 65, don't plan on taking Social Security until maybe 70 when it maxes out.

You've got a five year window where you will get an extra deduction on top of your standard deduction against any other income.

So you may be looking at some investments where you saying this is a good investment, but it's going to create 4 or $5000 of, taxable income.

You're not really happy about that.

You go whoa whoa whoa.

Married couple.

We've got $12,000.

We can soak that up.

That's pretty cool, you may say.

Well, no, we are taking Social Security, but it's been pretty modest.

And so collectively, we take home, $45,000 a year, we receive of Social Security benefits, tax free.

Not a bad thing at all.

There are other scenarios where you might have, an investment that's coming.

Maybe you had a piece of real estate, that is, appreciating in value, and you're saying, geez, I'd sell it, but the taxes are going to be higher.

First, 12,000 of profit, tax free.

There's another opportunity that a lot of folks are looking into.

And it's a very, very interesting one for you to consider, particularly at 65, six, seven in that early part of your, retirement, perhaps not needing to take RMDs out until you are, in all likelihood of you're 65 now, until age 75.

So you got a ten year window.

This extra $12,000 might allow you to convert money from your IRA that it would normally come out taxable into a Roth IRA.

That conversion of that $12,000 no tax because of this new deduction.

And now you're starting to build up assets into a Roth IRA that will compound and grow and then be distributed either to you or your beneficiaries.

Absolutely.

Tax free.

Lots of different ways to use this.

Now that you're aware of it, make sure that you're employing as many of their strategies or whichever of their strategies fits you best and, advances you closer to your financial goals.

Pretty cool stuff.

Finally, something tax wise that we can talk about with a bit of a smile.

Next, we have a final question back there.

Sure thing.

Our last question tonight says I'm a frequent viewer of your show, which I see on PBS in Philadelphia.

I'm always impressed with your depth of knowledge of the financial world, but also of the human factors and relationships that always attend personal decision making.

So thank you for that.

I'm 84, in good health, live alone and considering alternatives to my current living arrangement.

A lovely six bedroom house built in 1890 on which I have made substantial improvements, and I'm looking at senior living options offered by the score throughout the region for myself.

These options have several financial aspects in common a going in fee and a monthly rent fee, which varies by facility with the size of the going in fee.

Recognizing that decision making in this regard is very much influenced by the individual circumstances.

Can you take a standard man approach and suggest a data or thought process one might use in guiding decision making in this important regard?

Many thanks for all you do in helping people navigate their financial geography.

Thanks.

Well, goodness.

So many kind words.

That was almost guaranteed to be read on there.

Yeah, know what I'm talking about.

Thank you so much.

That's very, very kind of you.

The, description that you're giving to our audience is very accurate for folks who are looking to transition from living in their home that perhaps they feel is too large for them into a a senior living scenario where they would have a bit less room.

Of course, but a bit more flexibility in terms of how they are, how they live and how they're cared for in their senior years.

Is, a struggle that many, many folks face.

The numbers can be quite daunting.

The entrance fees, for lack of a better word.

Are can be extremely significant, very geographically dependent in some areas, 500 and 600,000, $1 million in other areas, more modest 300,000 plus or minus.

And the monthly payments, even though you've bought in, can be substantial as well.

There are advantages, huge advantages, of course, because as once you've entered that facility, in almost every case, you are guaranteed that you can live out your life there no matter what level of care you may need.

So if you've never had long term care insurance at 80, for long term care insurance would really no longer be an appropriate option.

It is something that may give you peace of mind.

Now, if I were living in a lovely six bedroom house built in 1890, that that that would cause me pause.

I may not be excited about giving up that beauty, that comfort, that independence.

There are some options in terms of of creating that independence.

There are some retirement communities that are now offering those similar services.

But to folks who stay in their home, much less expensive, there's still an initiation fee, upfront fee generally high five figures, 70 $80,000 and a modest monthly amount.

So that's an option that you might not yet having multiple generations in your home.

If it's six bedrooms, you may have children, grandchildren, great grandchildren that you may be able to share that that that space with and may be able to reciprocate with some care and some attention to you as well.

You might look at a reverse mortgage in terms of creating a pool of capital where you could hire out the work on your home, the snow shoveling, the the mowing, that kind of thing, and live there much more comfortably or pay for some assistance on a daily basis, if that is necessary.

Maybe through a reverse mortgage and and perhaps with a lovely home, as you described, the family may want to keep that in the family.

And so having a conversation with your family about these decisions that you're making might surprise you and find out that there are folks who are willing to help, willing to, provide some support and assistance to you as you make these decisions and may find out that moving isn't necessarily in your best interest.

Lots of different ways to look at this.

So from a every man kind of a standard, the very first thing that we do is have an extended conversation about your specific your circumstances where they trusted, experienced financial advisor so that you have the biggest picture, you have the most context, the most information, so that you make the most informed decision that you possibly can.

That's in your best interest.

Folks.

Hopefully you have found this entire show to be in your best interest.

Hopefully you've learned a lot.

Hopefully some of these answers apply to you and then if not, hopefully you are sowing trees that you will send us your questions gene at Ask and Time.com so that we can answer those back to you.

And if that is the case, hopefully that also means that you're going to want to return when we're back here for next week for another edition of More Than Money.

Goodbye.