Good evening.

You've got more than money.

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

Pleasure to be serving you this evening.

If you're a loyal viewer of More Than Money, we thank you for returning to us.

If you're just finding us for the very first time, perhaps someone recommended it.

Two perhaps you found us.

Noodling around on the internet and found some of our, prior videos, and.

And you've checked it out today?

Not too bad.

Maybe this is somebody we should pay a little more attention to.

The answer is, you're absolutely correct.

You should pay a little more attention.

Because when someone offers you 780 years of experience, experience does teach things along the way.

That is absolutely, something that even I would pay attention to.

So during this gracious welcome, you may be surprised to find the type of topics, that we cover, because often I am surprised to find the kinds of questions, the kinds of concerns, challenges, that our, audience members share with us.

They send them by email.

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

They send those to us and the variety is infinite and and spectacular, in some cases sad, in some cases joyous and jubilant, some cases dramatic.

But in all cases, in all cases, they are sharing with us a bit of their lives and often one of the most, I guess, common, observations that folks will make, as they offer up their questions is, wow, you cover a lot of ground, and it's not all financial.

Well, of course not.

The title of the show is More Than Money.

So, yes.

Do we talk about, investments in Social Security amounts and colas and and standard deviations and, and retirement, all that kind of good stuff?

Of course.

Of course we do.

But we talk more about the people and that's, one of our, our great joys to be able to impact someone personally, perhaps their family, perhaps generations of their family, grandparents introducing us to children and then children to grandchildren.

It's a fabulous, opportunity, by the way, for some of you listening, particularly some of you who might be a bit younger, her saying, wow, that that sounds like a great job.

It's a great job.

It is a spectacular job with tremendous benefits.

Financial is fantastic.

There's no question about that.

But the psychic benefits, the personal satisfaction of being able to help people is remarkable.

Now, often we give you a peek behind the curtain, how all this TV stuff works or how the financial world works, how our financial advisory world works.

And I want to share with you just a little insight.

If you are soon to meet or you are anticipating to meet, or you would just have interest in meeting a trusted, experienced financial advisor, particularly about your retirement, the one question that you will undoubtedly be asked that in my experience, about 90% of the folks that I talk to cannot answer immediately.

And it's the most critical question to making decisions about your retirement.

And here's the question what amount of income do you need on a monthly basis so that your bills are paid?

You're happy and healthy now?

That's a lot of words that may be translated into the word budget.

Budget's not a, welcoming word, but the reality is, we need to frame it in such a way that it's a bit more encompassing because people I need to pay my electric bill.

If I have a mortgage, I got to pay that.

If I have a lease, car lease, I have to pay that.

These are budgetary items.

Bills are paid, happy and healthy.

It's a very different idea.

It's a very different idea.

Retirement often gives you the opportunity to do things that right now, you don't have the time to do.

So while currently your budget might be 3000 a month, if in retirement you're going to enjoy happy and healthy, it might need to be 4000 a month.

And I am here to tell you quite clearly that 90% of the folks I asked that question to say, we don't know.

And it's critically important that we have a very reliable number, not reliable that I verify, but reliable that you are confident in before we make decisions about, for example, when do we take Social Security?

If you take Social Security at normal retirement age, let's say it's 3000 a month.

If you take it early at 62, it may only be 2000 a month.

And if you waited until age 70, it might be 4000 a month.

How do we choose what's your, what monthly income do you need in retirement so that your bills are paid.

You're happy and healthy.

If we know that, then we know when we must take social Security.

If we know that and we know pension options, we know investment options.

We know so much.

We can answer so many questions.

And not knowing that means we can answer very few.

So, if you are listening this evening and saying, I think I'm pretty much on track, start with that question.

Make sure you have that question in and give an answer that you're confident in.

And you don't have to convince me, but you have to convince yourself and perhaps your spouse, that that's the right answer.

Because everything else, your confidence and all your other questions will be driven from that one ans Let's go to the questions, please.

Providing for a special needs adult child.

This is a response from, a trusted, attorney trusted, experienced, both the state and elder law attorney about a question around putting some money away for a special needs adult children.

And, his response was, I would say that the amounts, in terms of creating a trust is probably cost prohibitive.

This particular client was hoping to put 5 or $10,000 into an account for a special needs child, in the state of Pennsylvania.

However, he goes on to say there's an account called an Able Account ably, which is an account very similar to a 529, account, but it is for special needs, adult, the able account.

She's allowed to put up to $19,000 per year, and it will then grow tax free.

As long as the account stays below 100,000, it will be disregarded for the special needs child's eligibility for SSI and Medicaid.

A special needs children have, in many cases, not all, but in most cases, have a reliance on, Social Security disability payments, Medicaid payments, and often other governmental programs that are restricted as to income and assets.

And this particular account, state of Pennsylvania, every state has a variation of this theme.

So if you're listening in a viewing as in a different state, make sure that you're checking with a trusted, experienced attorney that can give you the guidance for your state.

To create a special needs trust could be several thousand dollars to create, obviously, for only putting 10 or 15,000 in.

That makes, not a great deal of sense.

If the trust generates income, there could be, additional tax preparation costs because they trust has to pay tax on its own, whereas this able account does not.

So for those of you who have, responsibility and care and love for a special needs person, an adult special needs person, an able account is something that you want to take a close look at.

For some of you, you're saying, I understand, but this is relatively limited.

Indeed, it is.

And is there still the the possibility that a special needs trust would be a better option for their particular your particular circumstance?

The answer is yes, absolutely yes.

How do you determine which would be best for you?

Consulting with an experienced and trusted estate and elder law attorney is your very first move, your most important move, because that person, he or she will be able to tell you, the pros and cons examine your specific set of circumstances, look at the specific needs of your child, and then determine.

Then come to the conclusion about what technique, what strategy best fits you.

For those of you're out there who are blessed as we are blessed, healthy children, your your your heart would ache if you felt frustrated or or unable to help your child at the greatest level that you possibly can.

These are ways that you can.

And for all of us who, either have, a special needs child in our family or, you know, someone who does, someone we care about, these kinds of issues are dramatically important.

So thank you for the question and thanks for the answer.

What's next up there, sir?

What would be best for her daughter?

Let's find out, young lady.

Right.

So I'm retired and divorced.

I'm 75.

I have one daughter.

Shall inherit everything I've got.

Seven years ago, I had catastrophic health issue.

Required me to be out of work for two years.

Can you imagine?

I was self-employed, responsible for the salary of five other people.

I had to sell all my investments, cash in my IRA, and deplete my savings.

I took out a reverse mortgage.

I have about 325,000 of equity in my home currently, with this reverse mortgage pay off of about 200,000.

Let me stop there for a second.

For some of you, reverse mortgages a new term.

It's basically it's a mortgage, no question about that.

But there are no required mortgage payments.

The key important key there are no required mortgage payments, but you could, if you wished, pay against the amount.

The debt, the lean that, the $200,000 reverse mortgage represents.

It does not mean you give up ownership of your home.

Lots of folks are confused by that point.

So when she talks about equity in her home, if I add her reverse mortgage balance of 200,000, to her equity of 325, her home is worth roughly three.

I'm sorry.

525 and if she were to pass and the home is sold, the mortgage 200,000 is paid off and the equity goes to her daughter.

So that's an important point I wanted to be clear about.

I went back to work for a few years and I made some money.

I've been investing.

I have about $80,000 in one and about 125 and the other.

She's done very, very well.

I would own my house free and clear if I took all that money and paid off the mortgage.

So she has 205,000 of investments in her reverse mortgage balance is 200.

My income is $3,500 a month.

I get, lots of, additional income bits and pieces here and there, and I'm able, on average, to save about $300 a month.

So her income is adequate for her needs and a bit more.

I managed to keep my home lesser, and I live a good lifestyle.

My question is about my daughter, my home debt.

Would I be better off taking my investment money, paying off the reverse mortgage balance?

And then I would own my home debt, debt free, and have access to $525,000 for my daughter.

What would be best for her daughter?

What would be best for your daughter is for you.

You to be, financially independent the entirety of your life.

That's what would be best for your daughter, taking all of your savings and paying off that the the reverse mortgage would be a simplistic approach.

It may even be a feel good approach.

It may give you some, what a peace of mind.

But financially, probably not the best approach.

If you were to pass today, we pray not if you were to pass today.

In essence, your home is free and clear because your daughter, as your sole heir, will receive a 525,000.

Our home, having necessarily to pay off a 200,000 mortgage.

But she would also inherit $205,000 of your investments.

So if she wished to keep the house, she could take the investment account, pay off that mortgage and keep the house if it's not her wish, if that home isn't her forever home, she doesn't need to do that.

The home would be sold.

The mortgage is paid off.

She would, in very simplistic terms, she would get the equity 325,000.

There would be costs, but 325,000 and the investment accounts.

So in that case, she would have over half $1 million of of assets, tangible assets.

So even if you do nothing, your daughter is in line for an inheritance currently of about a half $1 million.

Pretty, pretty strong position to be in now.

Reverse mortgages, they accumulate interest.

You're absolutely right.

They can be refinanced.

So if interest rates continue to drop, they have been dropping recently.

If they continue to drop your current interest rate, if I saw yes, six and three quarters, let's say it drops to four and three quarters, you could refinance the reverse mortgage to four and three quarters.

And the interest that would accrue would accrue much more slowly.

There's also the increase in the value of your home, assuming that your home's in a location that's a 525,000, our house, you would expect, would be in a nice location.

Assuming that it's growing at a nice level, let's say it's growing at 5% a year.

If your, mortgage is growing at four and three quarters and your home is growing at five, you're actually going to widen that gap.

You're going to have much more equity over time.

So paying off the mortgage would not be in your daughter's best interest.

Not to mention the fact that you've got about $200,000 of investments that should not gone would grow as well.

So if you are able to achieve a 7% return, I'm picking a number out of thin air.

No guarantees.

Over the next ten years, your savings will grow double.

They'll go from 200 to 400.

So if we can increase this gap between the reverse mortgage growth and the growth of the value of your home, maybe that goes to 400,000.

We have 400,000 here.

Your daughter's, inheritance grows larger and larger.

I would encourage you to stay on track.

I would encourage you to stay just as you are saving a little bit of money every month, having your savings intact, not having a mortgage payment and not worrying overly.

Not overly worrying about your daughter's inheritance.

When the time comes, none of us know when when the time comes, I think she's going to be in very, very good shape.

And you're setting a wonderful, role model for her.

What you've overcome and what you've been able to accomplish is admirable indeed.

Now, you you you stay happy.

You stay healthy.

You stay financially strong and independent for the entirety of your life.

And with any luck at all, by the time your daughter inherits this money, she'll be 80 years old herself.

Wouldn't that be cool?

Where do we go next, sir?

Oh, very good young lady.

Right?

I I've been considering retiring early to have more time with my husband during our younger years.

We are both married, for more than 20 years each.

We met when I was 46 and he was 54.

Our divorces, divorces did caused quite a bit of financial loss.

We have 105,000 in combined debt, not including our house payment.

The house payments, 2200.

It does not mention the mortgage balance.

I'm currently 51.

My husband is 59.

He has retired from a state job, receives a pension that that's about 3600 per month, as well as a life long health insurance.

Isn't that doesn't that just sound glorious?

Lifelong health insurance?

Once he reaches 62, we estimate his Social Security will provide $1,800 per month.

In four months, he can cash out a Roth IRA, which would pay off our outstanding debt, but not our mortgage.

I earn $130,000 a year.

Fantastic.

I put 15% of my for one k. I currently have a balance of 165.

Also rolled over an old 41K into an A managed account at 125,000.

Can I work and, stop working in three years when my husband begins collecting Social Security, I plan to stop contributing to my for one k at that point, how much you anticipate my account would be worth when I reach 59.5?

The money my financial advisor manages has been earning about 9% a year.

My employer matches 6% in my 41K, we would be downsizing, likely moving to a state with lower property taxes.

What do you think I should do?

Should I retire early?

Join my husband on this new adventure?

Thanks in advance for your advice.

Where did we start today?

My memory.

My memory's just fine.

Thank you.

In the monologue, we talked about the most important question that you can answer.

Well, about retirement.

And all other questions are driven off of that answer.

So the most important question that I would have for this couple, for this young lady particularly, is what amount of money do you need every month?

So your bills are paid, you're happy and you're healthy.

Do you get the impression I've asked that question a number of times?

I absolutely have, and I phrase it exactly that way because I understand what retirement truly means.

It does not just simply mean that your electric bill is paid, because sitting in your home with your electric bill paid is not a retirement anybody is focusing on.

Anybody is wishing for hoping for it.

That's not it.

What we're hoping for is the ability to confidently know that our bills are paid and we're happy and we're healthy.

This young lady does not give us that number.

So I'm going to pick a number kind of out of thin air and, see if this makes any sense at all.

He is 59.

He has retired from a state job, receives a pension that pays $3,600 per month.

So $3,600 per month, if they need 5000 is not enough.

She's not yet retired.

So with her income 130,000 a year, no worries whatsoever.

They can easily pay their 5000 a month.

By the way, if we are saying 10,000 a month, that changes the calculation.

Not currently, but certainly in the future, but let's use 5000 as our example.

They currently she currently has about $300,000 of investment.

She wants to know what might it be when she turns 59.5 in 8 years, if she can average a 9% return?

That's what her current advisor is getting for her.

Her money is going to at least double, so 300,000 will become about 600,000 when she is 59.5.

Assuming she doesn't take withdrawals between now and then, it also assumes she's not continuing to make 401 K payments or investments.

The reality is she probably will.

So that 600 is probably going to be closer to seven, maybe even 750.

Can she afford to retire in the next couple of years?

The answer does not appear to be yes, but we're missing a really important point, and this may be an issue for her husband.

Assuming that this new adventure is the two of them, I'm interested to hear what his plans are for his retirement at 59.

Now, I absolutely understand he has a, a rather generous pension, $3,600 a month.

Fantastic.

And I absolutely understand that at age 62, for him, what, three years away, he'll have Social Security available should he take it?

A different question, but available to 1800 a month.

If indeed 5000 is their number.

They're good.

They don't have to take anything out of their investments.

They don't have to tap their house.

They're good.

If the number is higher than that, they're likely not good.

So I again return my attention to the husband, largely, an invisible participant in this and the genre in this, in this situation as it's posed.

And, and bottom line is, at 59, are you seriously, seriously going to sit home?

That wife's going to work.

You're going to watch Oprah?

I mean, I don't I don't know, in my opinion, really bad idea.

Really bad idea.

Not a healthy idea at all.

Not healthy physically.

Not healthy financially not healthy.

Spirit is not healthy.

Now, I'm not saying he needs to go back to work.

He needs to do something.

But going back to work might very well be part of this process.

And here's why I say that he has a strong pension.

If he waits three years, he's going to get minimal Social Security 1800 a month.

Could he find a job?

Part time job?

Consulting, perhaps something that would pay him 1800 a month, something 21, 22,000 bucks a year?

The answer is probably.

And if that's the case, he doesn't need to take Social Security at age 62.

He can allow that to continue to grow the longer he can wait, the longer they can wait.

The higher the Social Security guarantee will be.

And that may be long term, very important to them.

Can she reasonably retire?

Not without a whole lot more work.

Pencils and paper.

Lots of questions to be asked and answered.

Analysis of where the money is and where it should be going.

That's got to be done first.

Can we do one more question?

Let's see what we got.

My mother recently passed.

She had blood cancer, was diagnosed in 2023.

I was to receive half her assets.

My brother, the executor, was coerced.

Coerced her?

My mom, during her illness to give him power of attorney.

My mother and brother liquified her significant 41K account to help her home nursing care.

My brothers now stating that the balance which was not consumed by those costs is lawfully his.

I requested a copy of the Power of Attorney document.

I have in hand all the wills by my mother and father clearly states all my assets are divided equally, including her for one k. I also have texting that the funds were liquidated for this purpose.

My understanding is that he failed in his fiduciary duty as the PRA was void at death.

What can I do?

Well, first you need to consult with an attorney.

Of course.

Powers of attorney.

You're absolutely right.

Do expire at death.

So he is not acting as power of attorney.

What he may be doing.

And I'm.

I'm reading between the lines.

What he may have done.

His power of attorney is set up an account where your mother and he were joint owners.

And if that is the case, then he is absolutely correct.

The remaining funds in that account at your mom's passing are his legally didn't he accomplish that through coercion?

Through duress?

The answer is, I have no idea.

I would and I would have no idea, approving that would be a real significant challenge.

But bottom line is, your brother was there for your your mom.

Your mom trusted him, gave him power of attorney.

So there is some basis here, for his actions.

Are they, justified?

No way to know until this is, adjudicated, brought into court, etc.. Do you really want to do that?

And the question might very well come down to, is this amount of money worth your relationship with your brother, which is already clearly strained and maybe fractured forever?

Money does funny things to folks.

And, you may decide that you want to spend all of that money in legal fees, to challenge this.

Or you may decide maybe the family relationship is more important.

I pray for you, and I pray for your brother.

And I'm sorry for your loss, folks.

We just have moments left in this edition of More Than Money.

We covered a lot of ground.

Some very interesting questions.

The questions that you will send me, I'm sure are every bit as interesting.

Even if they're not dramatic, they can be very insightful and very impactful.

And that's what we're trying to be.

We want to be the most relevant financial show on television today, no matter where, no matter how, no matter what time.

And the only way we can do that is if we are making an impact for you by answering the questions that you find most important in your life, send those to me.

Jean at ask mtm.com and we're happy to answer those back to you.

And maybe you'll see your question answered on a future show.

Hopefully you learned a little something along the way, maybe mildly entertained, and if so, maybe you'll circle the time on the date for next week when we're back with another edition of More Than Money.

Good night.