Estate Planning & Elder Law Hour - 7.21.17

Saturday, July 21st

The opinions voiced in this show (program) are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult with your attorney, accountant, and financial advisor or tax advisor prior to investing. This information is not intended to be a substitute for specific individualized tax advice. Ryan Financial and LPL Financial are separate entities and are not affiliated with Skip Reynolds or Skipton Law. Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value. All performance referenced is historical and is no guarantee of future results. Government bonds are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

 

I believe that Estate Planning is here to give you control over who is in charge of taking care of you and control over how you take care of your family after you are gone.  Without proper planning you can lose control and your family will not be able to take care of you as easily, or you will not leave your estate for the benefit of your family according to your wishes.

I had an experience in my own family where during a crisis, we lost control over where my grandmother was going to receive care.  This caused my grandparents in their last years to be separated by a long distance after more than 60 years of marriage.  I believe that my grandparents have drawn me into the field of estate planning and elder law to affect the lives of my clients so that they can have a different experience at the end of their lives than my grandparents did.

I place a special emphasis on protecting the assets of aging loved ones and educating families about complicated laws and the best options available to them.  I am passionate about helping others preserve their money, avoid probate, and achieve lifetime estate planning goals. 

I started my post law school career working for a large financial company helping financial planners with advanced estate planning and tax planning. I utilize this financial services experience to bring a different perspective to my estate planning and elder law clients.  My number one priority is to educate and empower clients to make the best decision for them and their family; there is no one way to do things.  I strive to give clients options and let them choose which direction they want to go.  I like to say, “If you don’t ask yourself the right questions, you never get the right answer for you and your family.”

00:54:14

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This is the estate planning an elder lauer with skip Reynolds. We dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome everybody to DC planning an elder law hour with me skip Reynolds thanks so much for joining me this Saturday afternoon hopefully you're having a great day so far. And I hope to make it continue that way. Real fast before we can get in today's show I wanna go through what I always go through a sorry for those of you listen all the time they hear this but effort as you might be here man my voice for the first time. The reason that I do the estate planning an elder law our show. Is because I found in my office is so many people make choices about their state plans in about other kinds of things surrounding estate planning an elder law. Based upon things they hear from their neighbors their friends their family their coworkers. These in my read on line or hear on the news. And sometimes what happens with these things is we hear one thing and then we make a decision based upon that and because we've taken that. Being that we herder seen. As a fact and sometimes when you could have fact and a half back together you don't get a whole fact you have to separate half facts. And if we make mistakes. Often times in my world these mistakes end up costing. Significantly. More than hagee just found out a little bit more or had you known a little bit more and so my goal is to make you. How more of that knowledge C make better decisions for you in your family. City you can take care of your family the way you want when you're not here. And that they can take care review the way that you want when you're still here but maybe can't take care of yourself the way you had previously. All right so today show Obama is sponsored by Ryan financial each day our wealth management firm here in Denver Colorado. They're securities are offered through LPL financial a member of finreg SIPC. And their investment advice it has offered to ride financial each. Which is a registered investment advisor and separate entity from LPL financial. But I've got Bob Ryan and Eric Anderson here with me this afternoon. You may have heard demo on with me last month as well but welcomed. In thanks for being on joking guys could exist give thanks a lot thanks listeners and and also just for those you may be didn't hear. You guys are with me last month. Tell us a little bit about who you guys are what Ryan financially is kind of your overall philosophy of how you guys were. With clients. Yeah sure this is Bob I'll go first. You know Ryan financial is sub. A Colorado corporation we incorporated back in 2000. I'm although I've been in the industry for right at thirty years right now. It was great moving back to Colorado about 22 years ago and starting the firm. And job yeah I mean it's been awesome we have great client base and plays that I know they're out there listening today's solo everybody. You one of exile say is that Erica and myself for both certified financial planners what that means is that we are held to a higher standard. As far as Smeal overseeing our clients. Investments in their financial plan. Is this word that we are held to this fiduciary standard and you know that's really important. Where did you are looking for a financial advisor so well. You know again we're going to be talking today about retirement incomes. And CEO we're excited to share with you some of the things that we look for in a financial plan and with that retirement income. But with that said Eric and I met about seven years ago and they're working together. For those complete seven years so Eric once you told a little bit about yourself. Surge so again I've met Bob about seven years ago we have agree practice I think for a lot of people out there what they should really. Focus on and be concerned about is. You know what are the advisors you meeting with pushing with a lot of people right away are gonna start pushing with the product a new life insurance you need an annuity. And we just think that's backwards we start with a solid financial plan. Who wanna build this really solid roadmap for our clients and then let the investments to with a man and that's really what I think separates Bob and myself from a lot of our competitors out there. Sure well and and I'd wanna make a mention too. For all the listeners out there who may be here these different designations like CF PN. Fiduciary and all of that on you guys are welcome to chime in and give your spin on it but. You know the way I look at these scenes from the estate planning perspective is the CFP is a higher level designation. You know there's people out there that are accountants they're book keepers. And then there are CPA Spain which is it totally different designation. And I would argue that the CFP is akin to that CPA your. Potentially even AGG. As it is which I have to be an attorney you have to go through rigorous testing process. You have to meet high level of standards. It and you have to be committed to your craft. You can't just be. Selling and slinging insurance or whatever might be you've got to know everything across support. So these guys really do you knew no. A lot about what they do in their very dedicated to it and it shows not only how they work with their clients but in these different designations like. The CFP that death. Yes it is a lot of course work on you know you're going through investment class taxes insurance state planning retirement planning. And then did the overall test is very very difficult itself so yes something both Bob my. Both Bob and myself are proud that we have and along with that to mean you know you're doing continuing education. No Tony for hours every couple years it's it's it is a lot of work but we can really feel like it's important for our clients for us to have that. Sure and then one other point that I wanna make for you listeners out there. You hear this word fiduciary flung around all the time. On the fiduciary on the fiduciary in the fiduciary. On what the registered investment advisor means is that they must act in your best interest and with that also means it reg it it regulates how they are paid for working with you as a client. They you end and the client are working side by side not across the table from one another where one person's being compensated more. For. You know so nice desk the most I guess for lack of better term. And and so I think that's important too is these if you're looking for an advisor. On to hope you you know looking your portfolio come up with a plan. This CFP and and their fiduciary Dell RIA standard is in my opinion what you're looking for. Via definitely. Yet. A commitment yet banks and again you mean as we've said enemy we really lead with the financial plan and it's not about products it's all about. That plan and making sure that were taking a look at all the assets but also looking at those cash flows over time which we're gonna go. Well lit more in depth today to figure out how important it is to. Understand in retirement what those cash flows are gonna look like over time says so let's let's talk about that so. I mean the theme of today's show folks is we're gonna talk about. What do we do during retirement and mean everybody who's in retirement are nearing retirement one of their number one fears is. Am I gonna have enough income in retirement and I got to run out of assets in retirement thing and I mean not I just the way I see it is it's a gigantic game. Yes some degree earth mama but you gotta know where to place your pieces spin on the end and so. Why don't we start where if Social Security I mean so security is kind of the backbone for most people not everyone I mean there are people out there that have pensions are. Maybe didn't work enough to get Social Security I don't know. But that's kind of the backbone of what I see in my office so how do you guys see Social Security how do you talk about it with your client. It's so let's start or just some basic rules around Social Security we number one is that the earliest stage that you can apply as age 62. Unless there's spend a death. You're also a spouse could potentially collect earlier of their stealth spouse passed away before 62 but it says thus have to be over 62 Yasser there's some special planning that goes into that so you know and as I said typically for most people it's going to be age 62 but if you have a special situation where. You've been divorced for many years or your spouse passed away be forced. The age of 62 contact us and we can go through those scenarios but toilets concentrate more of that than normal retirement. Age 62. You'll also hear this full retirement or FRA. Thrown out there are a lot so. Yeah a lot of people are under this perception that hail middleweight title that FR a full retirement age. And then there's 870 and that's going to be the age where you are going to maximize. Out of your benefits. You know what we find statistically though is less than 10%. Of people actually wait too late seventy. Ellie yes well that's that low of a percentage so you know and there's many reasons for that. But we'll get into. A little bit of that but they're quite cheap talk a little bit about what we do is affirmed when we have somebody coming in with the financial plan. To figure out what might be best for them. Sure so one of the very first things we'll have a prospective client do or current clients as a getting closer to those ages. Is you wanna go on to SSA dot gov Social Security Administration dot gov. You wanna make an account there and that's you can download your Social Security statement years ago these to mail out this really paper exactly every single year. As most people know Social Security isn't in great financial shape so they stopped sending it out yearly. Now once you do turn fifty every five years they'll mail that out to you but you can go on online any time create a profile download that's. That Social Security statement and see what your benefits would be at 6266. Or later. And really we kind of service that you know we look at the different ages we asked our clients a lot of questions you know how long do you plan on working until. What other sources of income might you be eligible for you know that you happen to be covered by an old pension plan. And then we search really kind of look at different scenarios if a client was to start. Taking Social Security. At age 62 vs 66 vs seven. Strategy for the particular client. I tip well in and correct me if I'm wrong I mean. Retirement today is a lot different than it used to be. And these Social Security. You know was important but I think it's changed in its importance for most people. On the in retirement income and in retirement in general I mean it. Woody I see there an how does that play into your advice about what to do. Social Security. So much of it is around life expectancy is I was just looking at some life expectancy tables this morning. And since 1970. The average US resident. Right now is living and an extra nine years. Greater than where they were back in 1970 so you know we're looking at. Or a male right now the average life expectancy around 82 for a woman around age 84. But you know. At Bryant financial we have many many clients that are in their late eighty's and ninety's that are coming into the office are asking great questions along the way. And some you know they made these decisions obviously. Decades ago. You know there are. Even saying that for their children they wish that they had to bring you more planning in place that they they're really feel that that's an important strategy that they need to be looking at. Sure well and in something that I've read awhile back now. In May be asking refuted or agree with it is. If you reach age sixty your life expectancy actually goes up because you've. Outlive all of the kids it died in the people they die in their forties and fifties and thirties for various different reasons. It's in your life expectancy actually jumped even higher than. Those stats that you just sat exactly so it it is key it's it's a really important. Part of any financial plan. And we have different programs that we look at where Eric and I can sit down and figure out what is going to be. The year where you would maximize. Oh with Social Security. And I'll share that a lot of times though it is. More of a personal decision even though that we can come up with you know you would maximize the benefit by waiting to a particular age. Sometimes people just look at and say well you know in my family. People haven't lived his long so genetics plays a part of that. And sometimes it just comes down to you know what I've worked all these years I'm eligible now and I want to start collecting at so here you know we're going to get to guy made along the way we always say we guide you decide so we're going to be able to guide you and show you. How are you could maximize that benefit. But we also realize that you as an individual to made to make a different decision. Says so what are some of the factors that you guys look at with clients trying to figure out okay. Do they take it therefore retirement age is now like 66 or 66 and half right now you can bomb or why we til seventy. Mean how are you guys coming up with some of these you know. Recommendations obviously it's client by client. Exactly really is but some of the key things are who you know how is your current health. Do you have a longevity in your family and then what is the age discrepancy between the spouses because that can be a big factor as well. A lot of times one spouse was maybe the breadwinner. Especially if they're a little bit older and if they are gonna pre decease their spouse or really make sense at the breadwinner. Tried to hold on as long as possible to start collecting because if they do pre deceased or spouse. Now that spouse has a higher benefits for the rest of their life right because they can take their spouse's benefit exactly exactly so that's just goes in the some of the cleaning here in. No I don't wanna back up and just talk about you know that this whole retirement planning has changed in the last sixty years you know used to work for one company for your entire career. You retire at age 65 will saying you've had a nice pension and you you know you live to a fifteen years then passed away. What kind of all blew that up was Bethlehem steel. They're the first company backe back east that actually went bankrupt defaults on their pension no longer paid out that tension many had airlines do it. In the late eighties early ninety's and so this whole financial planning really became more important. Especially with the Social Security equation. You know when to take it so it is a big part of it. You know as reading a Social Security statement this week. And it says right on there in a Social Security is only supposed to be about 40% of the retirement equation. Too many people have this notion that no it's gonna be my entire paycheck and it just isn't so you have to have other savings if you're not covered by pension as well. Well in and correct me if I'm wrong I mean he can't go too high with your Social Security. I mean I think the most have ever seen is close to 3000 dollars I don't know what the highest number is but I mean because of the way. Caps out in your income mean you really can only contribute so much to the system at least the way it's currently constructed so meeting kind of caps out. At some level is that right. Yes Ed so you're right it's a little over 3000 a month right now as that cap. But you know again it is here with stating if you're only relying on Social Security. It's not going to be a great retirement. So you know that's why two and were working with so many folks that are in their forties and fifties. That you know we can sit down and look at that road map for financial plan. To ensure that they are doing the right things along the way. You know as we were talking in the last show it's so important to not just be diversified wrong. Among different types of investments but also to be diversified among different types of accounts. And we talked last time about how important it is to have a Roth account. Your 401K or 403 B plan is gonna be a big part of your retirement. But also those individual. Savings accounts Seattle that hopefully there inside investments have their long term. We are. Looking at that road map and just ensuring that. You're gonna be in good shape by the time you get into your sixties or seventy to turn on that Social Security chair. Absolutely. So I kind of wanted to. Take a break here but no one else. No first ask you question it's always a question I'm sure but every year at a dinner party or whatever. Somebody asked you but mean. What are you guys seen right now in the marketplace I mean there's a lot of things going on you you you hear the news regardless of what side of the news you're listening to you can do about global factors about. You know terrorists about. You know whatever it might beat it might be influencing the market what do you guys seen how we talk with your clients about that right now. It'll also I'll start off last year 2017. Was almost a perfect here. And he we had every single month last year where the stock market was positive. That's never happened before in history. So I didn't you know that so what happened for you know our clients and everybody out there is that every single statement you got last year was up slightly in value and for the year was. An amazing year at the end of the year the S&P 500 was upgraded 120% for the year. This year also started off gangbusters the first few weeks of January the markets were up well over 78%. And then all of a sudden volatility came in by the third week of February the stock market was down just about 10%. Since that time we've seen the market's level loud and things have been moving higher. At the midpoint here which we just side and the end of June the stock market was up between four and 5%. So feel so far you know a decent year you know most financial professionals out there are calling by year ran that they think the stock market will be up. High single digits to possibly 10% but you know as we all say the stock market trying to predict. What it's gonna do in the next six months of the next twelve months it really becomes a fool's game right I mean we all know that we need to be long term investors. Even this past week. A great company like Netflix. All of a sudden disappointed. And this past Wednesday the stock was down well over 10% so we know that those types of things can happen and why it's so important to. He'll always be looking at your portfolio making sure that your properly diversified for where you. Where you are in the stage getting closer towards retirement. Chair I just like dad seen us give a lot of this stuff that you're mentioning to a lot of times it really is just noise it's talking peace is it something that's. Continue to Tony four hour news cycle out there. But really what we care about the fundamental companies out we're going to invest in and right now most companies are reporting their profits how did in the second quarter. And right now the expectations are high they're really good they're saying that most companies probably will have profits 20% greater than when reroute a year ago. So a lot of that's due to some tax reform. But it's also the due to the fact we saw the very strong American consumer you saw really low interest rates seemed a finance basically anything a thirty year mortgage and vehicle. Go to best buy and finding its anything for 0% effort you know a couple years. In these low interest rates really are still helping the economy so we're still pretty optimistic out there but again you know it kind of depends where you're out if you're close retirement in retirement. How aggressive or conservative you wanna be sure. Absolutely. Well it is somebody wanted to come and no C don't you guys. Look at their portfolios. Are talking about what you guys might. You know suggests that they might do with their poor play how did they get in touch with you yes yes so you can always call into our office. You would get here and or Jill typically are answering the phone because Erica and I are appointments but our phone number is 303. 2433380. Eight's. Another great way to check a sound is to golf tour web site course at WWW Ryan financial ink dot com. OK and so please do you reach out to these guys they who'll treat you right but when we come back from the break we're gonna continue our discussion talking about retirement. Retirement income in the different strategies to try to maximize that or use a stick around. This is the estate planning an elder lauer with skip Reynolds we dive into wills trusts powers of attorney and so much more. Now here's your host skip Reynolds. Welcome everybody back to via C planning an elder law hour with me skip Reynolds let's have had special guests of Bob Bryant Derek Anderson from Ryan financial. And death for those do you might have missed the first segment of the show we are talking a little bit of Social Security. Different ages in which you can take it. The way that they can kind of analyzed for their clients okay what makes sense. Worry you whether you're an individual whether you're a couple city you can have more information to make the right decision whatever that might be for you. So what we're gonna kind of continue that. Discussion and I'm here to start out but we are talking about during the break a little bit about Social Security the program. Itself. And you know how you Hugh things on the news in whatever. What are you guys seen and it or hearing or reading or talking about with your clients about the viability of this program long term. Sir it's a great question it's something that comes up a lot skip you know there's ton of news and articles out there that you know Social Security's not going to be around so. Taker right now why you came before runs out. You know just to kind of back and Timmy and Social Security. When it first came out the life expectancy I believe was early sixties you can take it to 65 so it was a lot different than it is now where a person can turn on. They're benefited 62 and they might live to their late eighty's or ninety's it was never designed to last. For somebody for 2530 years. So you know there are some obvious issues with Social Security. Right now it if you kind of take them at their word in the year 2033 the fund itself it's set is set to dry up. Mean that there would be no more trust fund and what would happen is basically as long as there's still people paying into the system though there are always paying their fight it taxes every single paycheck. You know. If you're receiving Social Security you'd always get something but it could very well could be reduced right now the rough numbers are may be your benefits reduced by 70% in that year. Not reduced by seven reduced none of us I was all right not off I 70% year benefit yeah. Got out and I was really count and I found I'm not gonna be other retire ever. But they I mean one of the things it that I've read too is. Back with Social Security started like Garrett said you know the number of people paying union was something like. 421. Person taking out in hand whereas this stats are here in the next few years is going to be two people paying in for every one person taking out. Which changes you know not only the amount of money it needs to be in the fund but how many people are pulling off that. Fun. With that said I mean we know that eventually there's going to have to be effects right. I mean politically. Nobody wants to tackle this but eventually here I would say sometime in the next. Two to ten years where you were gonna have to put our arms around this and come up with some solutions. You know some of the things that have been thrown around out there is that we would push out. For younger folks that they would it not he'd be able to start collecting at age sixty to use that might be pushed out to age 65 or 67. Possibly even age seven d.s with life expectancies where they're they're going to use so that's one fix that's out there. You know potentially too that it's. You know that I don't love this one because I I'm getting closer to one day be taking Social Security that there might be some type some means testing put into place. So that's another thing that's been talked about what I heard out yeah but hopefully you know what it would just be is that. That we would push out those states I've seen stats that you show that if we were to tackle that and push out the time frames. That that would draw actual security much further out to the future. Chart in all this adds that it's happened before congress in the past has looked at it. They've seen issue and then they have made changes mean right now it used to be a 66 was full retirement age and then they started bumping that out between 1955. In 1960 if you're born in those years. Now it's you can start collecting. 66 and two months four months six months eight months and then now does that total Max would be age seventy so we've seen that the other. Quote on quote fix would be to take the income cap off of the Social Security benefit. So right now if the total amount is roughly 128000. Dollars for married couple if you're making more than a 128000. You're no longer paying in the Social Security so. Know there's a lot of people making between two and 500000. That if they just took that cap off their appeal pay a lot more into the system. Enough attention while obviously would help the the program out. Sure he had just bring that level up a little bit higher exactly more money in the system sure absolutely to wrap up so I would say if you're getting close. And you're looking at social security and one. What is going to be the best time for you to take it. Air can I have a number of programs that we look at that can. Can put out statistically what is going to be best for you as I mentioned earlier. Yeah you can then decide to I mean we can show you how to maximize that ultimately it's gonna be your decision. As to when to start taking it but we can die happily show you how you can maximize that benefit. And also look at if you are married you know what that might do as a benefit to your spouse. Also went as far as the estate plan. Sure absolutely and I just wanna make one comment that I see in my office with Social Security is that. So many of the people they do come into my office especially those people that are. You know in touring the long term care. World whose mom daddy is their main source of income and typically it is. Not a significant amount as we talked about the maximum is around 3000 almost people didn't make the maximum. And so. It makes it did so call if you interior later years in your needing some level of care see you pay for that care. With just Social Security. You're gonna need other assets you're gonna need other planning. On and these guys are going to be able to help you do all of those things. So I mean this kind of switch gears a little bit off of Social Security as the only form of retirement income obviously there's other ways to. Subsidize our retirements mean what do you guys seen in your office what are you talking about you know in retirement planning with. Assets now or not. Just Social Security chirp I'll just start off you know everybody is going to be and one of two phases of life. There's this accumulation phase switch most of us you know know that we're saving money. In our retirement plans at work whether that's a 401K or for a three B plan. The hopefully you've guided a Roth account going and other investments along the way. So we're building up right we've got this accumulation phase going but more what we're talking about two days is this distribution phase. I would say that. Our practice is about 5050 we've got it half the people are stillness accumulation phase but we've got a good 50%. Of folks that are in this distribution phase and how important that is a lot of people don't give that a lot of thought right there just didn't. Thinking I just needing. Go on auto pilot and continue to save in my plan and you every single paycheck I've got money going in but you know eventually you reach this reached this peak. And he'll once you hit that he can you all the sudden turn on this distribution distribution phase how important it is to do this correctly. Yet they can be scary skip for a lot of the people that we've see aiming probably at least a couple times a month we have clients that are OK I am retiring today. That's awesome congratulations. Let us hold your hand for this next phase because you go from saving every single paycheck and seen that nest they get bigger and bigger and bigger. Now all of a sudden you're stopped saving and now your polling. From your investments and you're starting to see it go the other way so for a lot of people that first year two years of retirement. Can be a little bit uneasy so you know. Obviously we're biased we think for graded this who wants you to come work with us but for a lot of people we just recommend go talk with the financial advisors your chance of having a successful retirement. Is so much more. Probable if you do work with an advisor verse just trying to do this on your own so the distribution phase I liken it to climbing a mountain most people don't get injured when their climbing up the mountain it's when they start going back down right did exactly and I kind of look at that as a distribution phase making sure you're making good decisions along the way where you take the best assets to. You know talk about your tax burden houses can affect Social Security Medicare everything. Us right. And one of the things you know I've I've read I've heard is there's all these standards like he shouldn't take more than 4%. Or. 5% or whatever the numbers are. My feeling on that and feel freed a Chinese news. Desk kind of just so he plucked that out of a computer program could mean that is not a steam injured for every single client do you guys. Exactly right I mean we were talking earlier. Of we're in this very very low interest rate environment that's had a huge impact on financial plans right I mean. Just even 1015 years ago you could go out and get a savings bond or CD guaranteed at 56. Sometimes even 7%. Those days are gone the only way to get rates like that is to take on some significant risk to do that so. It goes back to your portfolio. And how important. That it is to have the proper diversification. So again if you are a very conservative investor you're gonna need a bigger nest day. To get you there that 4% rule is not a standard out there that's going to work for everybody right so with our practice that's one of the things we're doing right we keep talking about this roadmap. We're putting together this road map everybody is different. And we wanna build a road map for use that you can understand that you know are you gonna make it are you gonna make it along the way. Erica I always say too it's our job not to over promise right so we're running these plans somewhat conservative we feel like the investments. Will be better for you but in the plant itself. We are making sure that we are running these plans and such a way that those assets are going to be there for your full retirement. Sure or or you're having a hard conversation that you know hey that your current spending. This is going to be a problem for you at some point if you lived out all definitely and you know some of those conversations are hard to have. But I think a lot of clients get it and and again it goes back to what Bob was saying we're not trying to over promise we wouldn't be doing our job if we just told everybody you're fine judge keep going. A lot of people do need to make some adjustments maybe have to work an extra couple years maybe you do need you know if you could take work fifteen hours a week for your pre retirement type of job once you leave the corporate world. That's is gonna help that much more out so. Yeah I mean we take SI really serious about it in against bombs armor not turn over promise I and we have had to have some difficult conversations along the way. In my guess is you guys are making you doing illustrations you're running calculations from different software programs. It explain a little bit about how that works his I've seen some of that in my experience. On to be frank. There are ones that are better than others on the you can make statistics look good and hang on and make people feel like they're gonna you know. Hire you because you're gonna you know. Hit the moon forum chair. You know obviously expenses. Are going to play a big role and two how long the plan is gonna last rites so it's. Our job to do really drill down and figure out those expenses. Lot of times we'll start with your tax return right I mean we know that right now you've had a certain amount of income. You've been putting monies into a 401K. And at the end of the year. There's only so much in savings it's really easy for air and I took back into off of that tax return to figure out what your true expenses are. Once we have the expenses in place it's important a look at inflation. Nearly government's telling us that. Inflation for this past year is running a little over 2% so if you are collecting Social Security right now one of the things you can look forward to is the benefit is gonna go up a little more than 2% this next year. When we're doing the planning were looking at more of the long term inflation rates here right now in the cycle that were and everybody's concerned about that the UK is going to be higher inflation in the future. So Erica and I are looking at the long term inflation right that's closer to three and a half to 4%. Over time and making sure that that plan. Is in place with those higher inflation rates share. Absolutely willing. I've I've had conversations are clients in my office. You know and it have bunch of money in the bank mom you know their very risk averse and I completely understand that but. Just because your account value using going negative. Doesn't mean that you're actually not losing money you know is that correct thinking. Exactly I recall you know inflation is a silent killer you don't see it out there. When we see same things give you people with too much money in the banker. There are savings or retirement is too conservative we tell them hey if the banks paying you 1% which by the way most banks are paying 1% of guys you know that exactly and inflation's going up by two yes your money safe at the bank but it's very safely losing your money every single year. Because of inflation so. You know it's a tough conversation people don't like that but quite frankly. A lot of people need to really look at what inflation is doing to their overall savings account. It's content so once we have the plan in place we know your expenses were looking at how much more you'll need every single year going forward. Eric and I then released stress tests that plan with different scenarios. In you talked about long term care earlier right so what death. One of you on a married couple has say a situation later in life where one of them needs long term care whether that's in the home are in a facility. What will that do to the plan. For folks that are still working right now and are in their higher income years. You know how important is Social Security or I'm sorry life insurance. Leading up to retirement making sure that they are they a proper coverage that it's one of them were to pass prematurely how is that going to affect the plan. So it's our job to stressed stress tests that plan. Once we have that put together for different scenarios to make sure that we're we're looking at everything that possibly could happen in life. Make sure that plants still gonna be in place willing you guys are sitting down with your clients and how often on on average. So typically once the clients on board you know the first year will probably get together about four times. But certainly with all of our clients at least twice a year reading together with them are doing it for a review over the phone. Seeing if there's any updates what's changing you know given Moroccan market cycle we wanna give more conservative or aggressive so we're we're always have these conversations and to this point you know we wanna deal look these clients in the eyes twenty years from now and make sure that. We're giving you solid advice today because we are all about the relationship business so that. You know when you are in your eighty's you know we we did things the right way and we don't have too much eons ago we should have done XYZ. In a lot of that just comes from. You know Bob building a successful practice in having clients for 25 years and we see the clients I have a very successful what we call carefree retirement. In others where it gets pretty tight later on in life. Patrick so. I wanna kind of take a break here and then and then come back and something that I know that a lot of people here from people in your industry. Are are. Things about a new ease when a kind of keep your philosophy year and how you look at annuities are not in in somebody's portfolio. I'm because I know that I see a lot of them in my office sometimes good sometimes bad depending on the scenarios. Armed but before we get into that after the break. How can people get in touch with you if they wanna sit done have you guys stress test the air plan and talk about what you guys could help them win it. If they want that kind of help. Yeah I'll just mention that in a few would like to come in that Yale. Our first meeting is obviously completely complimentary we would like to sit down with you and take a look at it we would explain any. Costs and how we are compensated along the way. But calling into our office he would reach either Jill or Aaron are phone numbers 303. 243. 3388. And of course you can go out to our website there's a lot of great information out there air can I have a blog also and that is WWW. Ryan financial ink. Dot com. Okay and have folks please do get in touch then they'd love to sit down with you. And see what's going on for you and can give you this is their best advice but also wanted to remind anybody if you missed any part of today's show this is the end of the second segment of the show. We need ton about Social Security meantime our retirement income. He missing the parts that show you good to cruise in 1430 web site. Good news show page didn't find the weekend shows you go to the steep planning an elder a lot hour or you go to my web site. Skipped ten the law dot com and you can find this showed there as well under the blog have those jot down and have this show and past shows as well. So stick around when we come back we'll continue our discussion about retirement income specifically talking about annuities. This is the estate planning an elder lauer with skip Reynolds. We dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome back everybody should be estate planning an elder law power which he skipped Reynolds thanks so much for joining me this Saturday afternoon. Again as you've been listening got T special guest here from Ryan financial income got Bob Ryan and Eric Anderson. We've been talking about retirement income specifically. In the first saying that we talked about Social Security kind of carried over into the second segment then we're talking about how do look at. You know the distribution fees of retirement vs the accumulation phase. And now kind of wanna talk moral about that distribution phase a bit. Specifically talking about I knew easy and it is all kinds different. Beings each year in the news about any easier from your neighbor your co workers whomever. Mean where do you guys see you nude ease if at all playing now in someone's portfolio in retirement. Share you know the annuity products it is not for everyone right I mean there's going to be folks that have done a great job of putting monies away and they they really have. Have no need for an annuity but even for someone that's done a great job all at times they wanna look at. Turning on their own pension how could they develop a pension for themselves. I think you know look the word a newly for a lot of people right away. Is that a bad connotation there's been a lot in the press about how old a new duties were oversold and to some point they are black box where people didn't understand all the fees and expenses that were inside complex they are complex. So you know again Eric and I try to make that sense of them like we said we don't believe there for everybody. Yeah what our current clientele I would say it's or somewhere around twenty maybe 22%. Of our clients have been a new employees and just say you know folks that's not a high percentage not at all though you know and I'll share with you you know personally I mean I'm in my fifties I own two annuities. That I have had for well over fifteen years now and I would that is. He it makes sense again I shop for the lowest cost possible product and we do that for clients also we explain any fees are out there. But it was just important for me and my financial plan when I was looking at a fifteen years ago is how can I develop my own pension. You know I I'd years ago you go work for a company and you they automatically set up a pension for you. You know we didn't have that in place so I started develop my own one. And you know I feel good about the annuities that I have an all our clients said do you have annuities feel good about the ones that they have. But feel they are complex. And he really need somebody that understands them to sit down with you and explain. Why it may or may not make sense for you and your financial plan. You know we've come across several clients skip where after talking with them. Maybe it was an inheritance may be it's a windfall they've never really had investments before. And sometimes it just makes sense some people really just have that fear of the market or whatever they're just not used to. You know gains and losses and so a lot of times the nudity can make sense but to Bob's point Sosa with new clients because the with these low interest rates. The annuity contracts aren't as rich as they were ten years ago. So in today's world I would say it's probably about 5% of our clients today new clients are doing an annuity that we have. Several of them ten years ago that Bob got them in when they're grandfathered into these really rich guarantees that we're just not seeing today. Share well in I think some of it too is depending on what your portfolio looks like. In that people come in to me and have a new mideast you know I think some of them unfortunately have gotten into the game where. It's it's been used as a safe money investments. On hand. On because of some of the quote unquote guarantees on these insurance products them on the that's not what's always going on with the actual money inside of the account. It's actually just an income base. That you can take a higher amount off but most of these people are not taking it as an income stream can be how are you guys. You know talking with people balancing that I'm sure you have people come in they'd have found that guy this sells ice to eskimos moved around with these different products as they walk in your off. That's yeah that's so you're you're absolutely right we have folks coming in that maybe they happen all the new Eddie. Sometimes it does make sense to look at a different product that's gonna have much lower cost. One of the things that air can I made a commitment a number of years ago. Is coming on board with annuities where there word surrender charges right so we offer annuities now where. If you decide to do it one day but you've then decide even six months later or even the next day later that this wasn't the right product. Even get out without any surrender charges at all you know that that is unusual because. In the past they were sold by people they got a huge commission and what that did is it locked you into this product that you couldn't get out without a big feet. Yes seven years ten years some of them I heard about. 159. Years to get out before you paid them money to get your own money back exactly and they were pretty sorely sold to people that didn't know any better in a lot of times it would be a single person. That was probably already in their seventies or eighties and they don't even realize they're locking their money up for ten years and we meet him a few years later unfortunately have to explain all the ins and outs of the product in in the pros and cons so. Now they're definitely a sold out there on but again they can make sense for certain clients today if it is a perfect fit. I'll I'll bring up a scenario so we had a gentleman recently they came into our office he had an inheritance. He ill and was looking at the stock market and said you know I'm really nervous right now what we're we are in the cycle expend. Now nine years coming off the stock market bottom. You know Erica nicely as we mentioned earlier still believe that there's this market could continue for a while but you know he was nervous so. What we said is if we can get you some guaranteed income that you will you can't out live. And we have a portion of the monies into a product like this and and you could invest the other portion conservatively. To try to do better than the bank. It would that make sense and for this individual it made perfect sense and that's the direction we went. Sure so he got the incoming was looking for the security there. In could still be you know maybe not aggressive bit a little bit different with his other money to try to offset. You know that piece that had to get set off to. Satisfies incoming. It's been exactly in there really wasn't a game changer for the general mania of Social Security but. Just an extra 500 dollars a month for a given that little room and now we've got this other bucket of money that we did not put in the in new media that's his kind of liquid money in case you know is. His furnace goes out there just replace a vehicle whatever we've got this other money on the side sure. Absolutely. A so I mean what I'll see you guys seen in this this speaks. With guaranteed in calm man we need you this were guaranteed you know be frank. I get a little queasy about it. And I think the other thing too on the in this happen to somebody that I worked with here in the last couple years where they could a significant amount into a new duty. Into a non IRA and you use a non call five and annuity strictly to avoid taxation and who. On but you know from the estate planning perspective because a brand new problem. You know twenty years from now when this individual passes away then for his family not seem. Makes it more complex if you will when he dies. Yes so that word guarantee right that bid does. Throw up a red flag right away because there's very few products that all that we can say have a guaranteed to them write a government bond. Definitely has a guaranteed by the US government. These annuities have a guaranteed by the insurance company. And there is protection in place but ultimately what we would explain to a client is the guarantee is true that insurance company. That's why it is important to to look at the credentials the rating of that insurance company. You most pension plans that there are still out there today. Are guaranteed by some type of insurance companies so it's important that you're doing your due diligence and we would help you with that. To choose a company that is going to protect you. Through your lifetime that you see you looking at their rankings in their ability to pay him what they've gotten reserve and all of those kinds of things in addition to what the product features are. Exactly exactly because. It again goes back to these low interest rate environment so. If we see a company or even we haven't you know client to say hey I see some investment paying 7% Bob and I just look at each other and saying. In today's world why would anybody be pain. A really high interest rate when you don't need to right we have these low rates so. The higher the interest rates and they're going to be paying out the riskier it is and it could be with some these insurance companies maybe they just need of a big inflow of capital so they put out this high interest rates just to get a bunch of of inflows. IChat OK see you kind of got to look at the whole picture it sounds like yet I mean how many. When people come into your office and they've got a news. Our most of them in higher rates are most of them in non higher res I mean but what do you guys see. Yes you know. It's kind of a mix that's out there I mean I believe ideally it's great to have an annuity and and all of a higher rate because. Now you're getting tax deferral you got this tax deferral that you didn't happen place prior. You know there's there are quite a few annuities inside retirement plans but you know you already had the tax deferral. So if you were paying some fees for this annuity I mean you you're actually paying for something you already had in place. The reason that somebody would put an duty inside and hiring a again would be for the protection of income over their lifetime. So these insurance companies do offer that that a you know they as far as this income that would come to them or them in their spouse over their retirement years. Well Bobby mentioned something to you during the break about when annuities in house so many people bought a new reason it's a single life in duty. Susan explain that a little bit further for the listeners now so a lot of folks that purchase and didn't realize when they. They got it again it could be that the husband. They they put the annuity and his name and then they did it over his lifetime. We know statistically that typically women outlive men right that's just does that say that right right. So again a scary thing could be that if the spouse out lives whoever what was named in that annuity is dangerous that. Now you might get a lump sum paid back tier that's much much lower it could even be zero. So that is real important when you're choosing how to take this pay out over you know lifetimes that we're looking at. Doesn't make sense insured over both people's watch. As much if not more than we had when he died. You know when we wanna make sure that we picked the right options even with the new duties if we're going that direction. To ensure that that happens it's. Facility and you've seen it to skip it even as an estate planning tool. That you know annuities are not necessarily the best asset to pass on to you know your children or grandchildren so if you have an annuity out there you're not sure how works we'd be happy take a look at it for you contact us. At our office we'd love to sit down with you see what you haven't and we can tell you what advice we give you. Sure so if they wanna sit down and having guys your view that he knew he or talk to that. Them about their portfolio what you guys and I recommend. How can they get in touch with key guests so let's play if you call into our office you most likely will get Jill or errant and they. Would love to talk with you and set up a time for you to come in. You can reaches set our office here in the tech center at 303. 2433388. Another way to Ted check this out is to go up to our website and website is www. Ryan financial ink dot com. And again there's a lot of information about our firm. Erica and I have been doing a blog and they've you can learn more about our firm by going to our web site also. Sure and I just on a mission for everybody out there and today's show was sponsored by Ryan financial mean there are a wealth management firm here and amber. This securities are offered through LPL financial who's a member of finreg SIPC. There investment advice is offered through Ryan financial. Which is a registered investment advisor and a separate entity from. LPL financial so no one don't think you guys again for being on here. You know it always helps me when I talk to you guys because I see so many portfolios in my office. It's important to understand how these different things are working in the kind of advice that they're getting so I really do appreciate. You guys come and on and given this great information to my listeners thanks for having us on it is yeah thank you so much at civilian and then for everybody else out there. I wonder remind you if you missed any part of the show you can find it on. The crews in 1430 website under the estate planning an elder law hour. Or you go to my website skipped in law dot com and funded under the blog page no drop down how the radio shows. When he give one last plug for those do you listen regularly I do you free public workshops talking about estate planning elder law. All these different topics Medicaid trust wills powers of attorney. I have one coming up this week. It is on Wednesday the 25. He will be from one to 3 PM it's actually hear a decrease in 1430 building which is just off of by 25. And Bellevue so if you want who attended that workshop you need to get in touch with my office at 720. 4402774. Stacy your I want DE signed up or you go to our website actually sign up there. Had skipped in law dot com click on workshop page and you can find it there. And thank everybody for listening in this Saturday at. Thanks for listening to the estate planning an elder lauer would skip Reynolds. Tune in next week where we talk about some great new topics this is the estate planning an elder law hour with skip Reynolds that's every Saturday from two to three on cruise in 1430. You can Reynolds is a licensed attorney Colorado all the stories and content of this state planning an older life hour are not intended to be directly to a vice they are for illustrative purposes only additionally no attorney client privilege has been performed with the law officers have been Reynolds LLC we're still in Reynolds as wire went to seek legal counsel before making any estate planning or elder Watson did all of the views of the guests of the show are their own and are not views of the law office looks at the Reynolds LLC or skipping right over Esquire. Nor is there appearance and endorsement of goods or services for the law offices of have been Reynolds LLC was get to Reynolds Esquire.
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