And good evening.

You've got more than money.

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

Happy to be serving you this evening.

And welcome, if you are joining us for the very first time, an exceptional welcome to you.

For those of you returning to us, thank you so very much.

That means, we we got you here in the first place.

But you decided to come back, and that means a great deal to us as you are.

The reason that we laid claim, more than money to be the most relevant financial show on television today.

No matter what station, no matter where you are.

A coast to coast, border to border, 24 over seven 365.

It's us.

Not because of my 780 years of experience, although that adds a bit.

I'm sure.

But because of you, you're asked the most interesting questions and you put us in, in position to serve folks far and wide who share those questions or share those concerns, share those challenges, with, serving them with our answers.

So you are very, very kind, to do so.

The way it works is remarkably simple.

There's a simple email address, Jean at ask mtm.com.

Jean at MT ask mtm.com ask mtm.com.

Those emails come to us.

I have a complete team of financial advisors to answer all of those emails back.

And goodness help as many of you as we possibly can.

Some of those appear on future shows.

We couldn't possibly air all of those, but perhaps if you are so inclined and you take advantage of that service, you might find your question being explored on air for the, the PBS audience to see far and wide.

And when we say far and wide, we mean exactly that.

Because of the miracles of modern technology and websites and PBS passport and so many other, PBS systems, we are seeing coast to coast and border to border.

You're very, very kind to spend some of your time with us.

Now, speaking of behind the scenes or in this case, kind of a peek behind the curtain, we do that on occasion.

It's kind of fun to let you see how the show is constructed or how financial advisory work, applies.

Or or not or not.

You'll see.

That's foreshadowing.

You'll see what I mean here in a moment.

There is a common theme this time of the year, quite often.

And the issues are, during reviews with clients in terms of how have we done year to date and, what adjustments might need to be made.

It is a very common question to, to have, a client, ask, what do we see for next year?

What do we see for next year?

What are you anticipating for next year?

What, what trends, what investment areas should be best for next year?

How will inflation be?

How will interest rates be?

How will tariffs be?

How are all of these things come together for next year.

And it's a reasonable question.

It's certainly, a natural question.

Everyone would most everyone, particularly amateur investors, would like to think that if they have some, insight, some, peek into the future, that that will give them an edge in terms of their ability to invest successfully.

Well, Let's be blunt.

There is simply isn't, any investment system worth its salt that is based on the advisor or the investor having accurate knowledge of the future.

The great American philosopher Yogi Berra.

Once said that predicting is very, very hard, particularly about the future.

Translation the term psychic is so rarely used, in our world because, it doesn't exist now.

Psychotic.

Check with my wife.

That might be a term that you might want to consider.

But psychics certainly not, my, I'm a white crystal ball.

All right?

It's actually a snow globe.

Little Rudolph in there.

Red nose lights is very acute, but it's useless in terms of knowing what the future may bring.

Now, are there probabilities?

Of course there are.

Are we probably heading towards lower interest rates?

Probably.

Are we probably heading towards inflation?

That's relatively under control.

Probably.

But probabilities.

Again, if you're basing your investment approach on either psychic abilities or confidence in probabilities, it's likely your investment approach is not correct.

The term evergreen is one that we use often, in the more than money world headquarters because, we are, intent, we are committed to creating investment portfolios that to the greatest extent humanly possible.

And with the advent of, I emphasize, humanly possible.

We'll talk about I, on a different show, but to the greatest extent humanly possible, we want an investment approach for an individual client to be successful.

However, that client defines successful year in, year out, up cycles, down cycles, good economies, not so good economies.

In other words, we want more consistency than we want exceptional shooting star results.

Shooting stars go up and they are magnificent.

Sadly, they always come down.

That's the part we'd like to to every, gosh, to every extent possible, to avoid the coming down part, but gives you a little bit of an insight if you're thinking psychic.

Not a great idea thinking psychotic.

Hey, you turn you turned in.

What's I got you here?

Let's go to our first question.

Reasonably retire.

Now, that's a fascinating question.

Reasonably.

We we shall see.

I'm contemplating retiring at the end of the year.

I'm married.

Will receive two monthly pensions, 3600 from my military service.

Thank you for your service.

1500 from civil service.

Our projected monthly cost of living will be covered by these.

That's excellent.

That will make our 3500 and joint Social Security income completely disposable.

Disposable?

That I've never found any dollars I considered disposable, but I understand the use of the term.

We'll circle back.

I don't have much in savings.

I have 140,000 between the Thrift Savings Plan as a government plan and cash savings, our take on total each month will be just over $7,000.

Excellent.

After taxes, medical, all that kind of stuff.

Total cost of living will be about 4000.

My wife will be 65 in January.

And I hit that age 13 months.

Later.

My wife of 20 years, her only income once I retire will be the spousal benefit from Social Security.

I will enroll my wife in survivor benefit plans for both of my pensions.

These combined with an increase in social security, will give her about $5,000 a month if I predecessor plus a one time $240,000 life insurance payment.

She'll also receive spousal benefits based on my working record while I'm still alive due to my military service, we have Tricare to cover all of our Medicare expenses above medic, all of our medical expenses above Medicare.

Can we reasonably retire?

You may find, it natural that when folks come to a financial advisor, particularly folks of a certain age, they have some trepidation, some concern, perhaps even some anxiety about, can we retire?

Is this something that's even possible?

This gentleman asks, a slightly different question.

I think he's quite clear that he can retire the word reasonably.

I found interesting, because it is almost a request for a confirmation, is what, in his case, I think he's saying is what I'm seeing a reasonable conclusion is what I'm, proposing, reasonable to someone who's a professional.

The answer in this particular case is yes, it's it's quite reasonable.

And for a number of reasons, pensions for example, are very powerful financial tools.

And if you are the recipient of, in this case, two pensions, it means that you have income that you cannot outlive.

Fascinating.

Most folks.

Number one concern about retirement.

Will my money go away before I do.

And in this case, with pensions, the answer is no.

And if he sets this up as he's described where they joint and spousal survivor benefit, it will last as long as either of them lives, so they will never be without income resources.

Add to that Social Security.

Some of you may say, whoa, whoa, whoa.

I don't know that Social Security will be there forever and ever.

The answer is, no one knows that for 100% surety, but it certainly appears as if it will.

I think it's a higher probability to hearken back to my opening monologue.

It is a higher probability that it will then that it will not.

But add pensions and Social security under the same umbrella of lifetime income money that you cannot outlive will be there as long as you live.

And all of a sudden we're in a very, very strong position from a cash flow standpoint.

Now.

His concern understandable, understandable.

What happens when he's no longer here to maybe in his own mind, provide, for his wife?

Well, the answer is, quite nice.

As a matter of fact, if you consider that during their retirement, especially the early stages, they'll be able to save in some way, shape or form somewhere between 2 and $3000 a month.

So let's assume, just for the sake of argument, that they spend all of that and they enjoy themselves and they travel and they do all the good stuff that retirement folks, like to do.

Then good.

Where then does her financial security come at his passing?

Life insurance.

Life insurance that he quotes at 240,000.

If we add to that the current savings of 140,000, she will have, pensions.

She'll have her survivor benefit on Social Security, which will be likely his current benefit, stepping up to his benefit.

And she'll have access to the income that could be spun off of nearly $400,000 a year.

If we use very, very rough numbers, to give her some sense of what she might be able to draw from that 400,000 without hurting herself in the future, it would be roughly $18,000 a year, roughly $1,500 a month.

So she's got survivor benefits on, on on Social Security, on two pensions and roughly $1,500 a month, from her investments.

And when I say, 1500 a month, that's not the total return.

That's just the cash flow that she'd be able to draw from her.

This pool of money that would be left to her at her husband's passing.

A very strong position to be in.

So, again, reasonably retire.

It's an interesting phrase.

I think I understood exactly the intent.

I hope that I met that intent.

And the answer is, oh heck yes.

Well done sir.

And again, thank you for your service.

Outstanding, outstanding.

You might be surprised.

Another peek behind the curtain of a financial advisors life.

You might be surprised how many folks come to us having done just as this gentleman has a very, very good job of of marshaling resources, collecting, resources, whether they're cash flow pensions, whether they're financial assets, life insurance, and yet there's still that there's that underlying anxiety.

And when a financial professional, I lay claim to that title, when a financial professional turns to them and says, you can retire, not only is it reasonable, it's very confident that you can retire.

The relief that we get to see the the joy in many cases that we get to see, it really doesn't make the job a lot of fun.

It really does.

Speaking a front, answering your questions makes this job a lot of fun.

Where do we go next?

Tell her sister, play fair and do what she wants.

Sounds dramatic.

Since I've already dealt with this email, I know it's dramatic, so, buckle em.

My sister has made the choice to pass my inheritance on to my children, leaving me and my husband in financial distress for the rest of our lives.

That's about as dramatic as you can start.

Great fun.

Indeed.

I find it hard to describe how I feel.

It is somewhere between hurt and furious drama.

Indeed.

They.

She talks.

It's very long when, I'm going to summarize her mom originally.

Two sisters.

Her mom originally, had a will that said, each sister got half of, mom's estate.

As mom's illness progressed, and her sister was very active in caring for her mom.

She acknowledges that, mom changed her will and said that the, sisters will be bypassed and the, the 5050 will be sent to the children of the two sisters.

That's her big, well, that's the start of her big, issue.

My sister and I have two children each, so the estate's going to them.

My husband and I have struggled mightily over the last decade.

A mixture of poor health, Covid related, business, downturn and bad luck.

Circle back to that for sure.

And has seen our nest egg dwindle.

We've been relying on this inheritance from our parents, from my parents to help us repay our mortgage, etc., etc., etc.. My sister is the executrix.

Sounds naughty.

It's not the executrix.

Executor.

Gentleman.

The executor tricks young lady of mom's will.

She knows that my mom's original intent was to give me the money.

Does she not?

Her estate and I. My sister is very comfortable with her half going to her children because she already has enough.

I know their hand.

I'm shocked and disappointed at this change of plans.

I have asked my sister.

Hang on.

I have asked my sister to just ignore the codicil to the will and give me the money mom originally intended to give to me, so I need it for my well-being.

However, my sister claims that this is impossible and we have had a big row.

I'm very frightened that this outcome could leave me in dire straits, but my sister claims there is nothing she can do.

She goes on, in a very long paragraph, to say that it is my responsibility to straighten her sister out and make sure her sister does what she wants.

I sure hope she's watching, because the disappointment.

I'd love to see the look on her face.

The answer is that you're completely wrong.

You have created your own scenario.

The negativity of this scenario is of your creation.

Goodness gracious.

A number of lessons here, a number of really important points to be, to be considered.

Number one, I expected this inheritance.

If you're sitting in your financial life, planning your financial future based on, your insistence that you receive an inheritance from anyone, mom, dad, anyone in this world you are, you have made another serious financial error.

Bad luck.

Bad luck is generally in the financial world.

A function of making bad financial choices, making a choice to live your life kind of to the edge.

Maybe, spending right to the very edge, with.

Hey, I know I'm going to get a lot of money when mom passes.

Really bad idea.

Really bad idea.

Poor choice, poor choice indeed.

That that's the situation you have put yourself in now.

Your sister says it is impossible for her to change.

Just ignore the codicil and give you the money.

She's right.

Your sister is the executrix, is a fiduciary.

She is responsible financially, legally, morally, ethically responsible to do what your mother's documented in structure, to do the the thought, the suggestion, that someone who is in charge of an estate has tremendous power and authority, and they decide where money goes and who gets it is absolutely a fallacy.

It is not a reality.

And in, in law, check with any estate planning attorney worth his or her salt and they will tell you the the role of the executor.

The role of the executrix is precisely to follow the instructions of the decedent.

So in this case, mom had a will, added a codicil named your sister.

I think I understand pretty clearly why she named your sister as the executrix.

And the executrix is honor bound, legally bound to follow those instructions to the letter, whether it's fits you and your vision or not.

If you and your sister have had a row over this, a row over this, if you've had a fight over this, that is on you that has nothing to do with hers.

She's done nothing wrong.

And you really need on some level, my apologies if this is too harsh.

It's not too harsh.

Grow up, grow up.

Goodness gracious.

Now, are there is there a potential solution?

Answer?

Sure, sure.

If you are so convinced that this is a miscarriage of justice, and if you are, well, better able than you were to convince me.

But if you are able to convince your children that this is a miscarriage of justice and that you and your husband are in dire straits, tell them to give you the money.

It's very simple.

The kids get the money, they give it to you.

Problem solved.

Now, I have no idea of whether your children would find that, acceptable.

Agreeable.

Or not, I have no idea.

But that in terms of your scenario, your situation, the one that you've basically created for yourself, it's legally the only reasonable, resolution.

The children get the money, they gift it to you, and and, yes, there are gift rules, but I assure you, unless, the the numbers that we're talking about here are measured in excess of $10 million for each of your children.

So unless this estate, your half of this estate is something 20 million or more, it can be done simply, easily.

No fuss, no muss, no tax.

So it can be done quite well if if, if you can convince your children that giving you the money is in their best interest.

I would, if your children are listening, please send me an email.

I would love to be counseling you as to whether this is the appropriate thing to do or not.

Interesting.

Fantastic.

A lot of drama.

Let's see if the next one next question has drama.

Let's see.

Investor has a little drama.

Investments drop over 100,000 bucks.

If you lost 100 grand on your investment portfolio, that would get your attention.

Young lady.

Right.

So my husband and I are both 61.

We're planning on retiring in four years.

We're in good health.

Our home is worth about 350.

No mortgage.

Excellent.

We have no debt of any kind.

We both have.

For one case.

We do not work at the same company.

He has about 625.

Mine is about 4 or 15.

Wow.

Fantastic.

When the market went down last month, our accounts lost about 120,000 bucks.

This really scared me.

What, what if that happened just after we retired?

What if, what can we do between now and retirement to keep our investments growing, but not risk it all when we need it the most?

Excellent questions.

Fantastic question.

This issue of timing, saving for retirement, and then the timing of their retirement is a critical one.

It is, well, in football, they talked about the red zone.

You get inside the 20 yard line, you want a score, you don't want the ball to be turned over.

You don't want to fumble.

You don't want an interception.

You don't want to turn the ball over.

So the red zone is critical in retirement.

The red zone is that 3 or 4 years just before retirement and 3 or 4 or five years just after retirement, if at any point in that kind of red zone, you have a dramatic loss in this case, they would have lost about 10% of their investments.

If you have a dramatic loss, it can have a tremendous impact, negative impact on your long term, ability to pay your bills if you lose $120,000, roughly speaking, you're losing for the rest of your life.

Somewhere between five and $8,000 a year for the rest of your life.

That's a tremendous amount of money.

So are there ways to, protect, continue to grow your money and still have some assurance that you will be protected in the case of a significant downturn?

The answer?

Sure.

There are a number of investment platforms that would address exactly these concerns.

Some come in the form of exchange traded funds, ETFs, often referred to as buffered ETFs.

Buffer.

It is a it's a polite term.

It addresses the mechanism where an ETF can, hedge its bets, so to speak.

So you could be invested in an exchange traded fund in the S&P 500 or some other index.

And if the market goes up, you go up, but you go up to a limit.

There's a cap to how much profit you can make in current numbers.

If you are in the S&P 500, you've got a one year buffer, an ETF, the current limit right around 12%.

So over the next year, if the market goes up 8%, you get eight, goes up ten, you get 1012, you get 1215, you get 1220, you get 12.

That's the cap.

That would be the quote unquote give up.

If the market goes up 30%, you get 12.

But if the market goes down, anything up to -15, you lose nothing.

Markets down five, seven, ten, 12 and you lose zero.

If it's down 16, you you lose one.

So there's the downside protection the upside limit.

And if that kind of fits and of course in this particular email question it would fit rather nicely.

So it would seem then taking advantage of that is is something you have to look at very, very carefully.

By the way, that same mechanism comes into play in a number of other scenarios.

There are what are referred to as Riley's registered index linked annuities that have similar functions.

There are structured notes that have similar functions.

So you have that opportunity, to choose from a number of different platforms.

And certainly with $1 million, you're going to want to broadly diversify, take advantage of a number of different ways that you can protect yourself.

Now, your most of your money is in a 4 or 1 K. Is it, available.

Are these investments available on a four month K generally no, no they aren't.

But you are of an age that they will allow an in-service rollover.

So a 401 K for someone who is 55 and older, you can stay employed at the company.

But move the current balance in your 41K out of the 41K into an IRA.

And then all of these investments are available to you, and you can build as much protection into your investment platform as you wish.

You are still involved in the four of one K. You're still employed by your employer.

You're still making contributions.

But in this case, over $1 million would come out.

It would be placed in your IRAs.

You build in that protection and then you're assured that should one of these big dips a 10% dip, you wouldn't feel any loss whatsoever.

If you, if you take advantage of this mechanism in service rollover from four one K's into an IRA and then protected investments inside the IRA.

Great question folks.

We covered a lot of ground in a short period of time.

That's kind of our pattern on more than money.

If you're a loyal viewer, you know that it moves very, very quickly.

We try to answer questions that are important to as many people as we can, or at the very least, has some entertainment value of somebody getting really dramatic.

That's kind of fun, too.

Hopefully you picked up some really good ideas, so you took some notes perhaps.

But if your question, your challenge, your concern wasn't addressed this evening, make sure you send us those emails.

Jean at ask mtm.com.

They come directly to me.

We answer every single question back to the folks that are asking.

Make sure you check your spam filter.

If you don't get your request, your your response in a, in a timely fashion, and then we pick a few of those as we did tonight, answer live on air.

So first of all, thank you for spending part of your evening with us.

We know you could be anywhere, but you're with us, and hopefully you learned enough that you want to be back when we return next week for another edition of More Than Money.

You know.