Regrouping After a Loss
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Hey, guy, I know the holidays are coming up with a lovely time together with your family. Appreciate each other, you know, all the stuff that you are hopeful for. But of course I can help us sank.

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So you have piece of mine today, had the policy genius dot com to get your free life insurance quotes and see how much you could save that policy genius dotcom. Welcome to the jail on money show its saturday, november second. And we are here trying to help you make Better, less bad, more considered financial decisions.

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And coming up, we are going to do some year and financial planning and tax loss harvesting with A C F P. A. Michael, government is also A C P.

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okay. So today, before we get into our program, I just wanted to tell you a little bit about the october jobs report, which was released yesterday morning. You probably saw the headline that the economy produced elf thousand jobs.

It's the worst jobs report in four years. Everyone, calm down. This is about half the story because we know that we had a boeing strike that impacted this.

We know that we had to hurricanes. We know that this report could actually mean that we are going to see some bigger than expected reports in the subsequent months or not. We just don't know yet, but I wouldn't take this at face value as the takeaway being, oh my god, the labor market is rolling over.

I don't think we know that yet. I mean, IT could happen again, I don't know, but i'm not willing to say that from this one report. Also, I will tell you that couple things.

Additionally about this report, the previous two months were revised lower by a total of one hundred twelve thousand. That's a sizable revision lower. So that could mean that the labor market is cooling. We did squeak out this forty six consecutive months of job growth, wages up by four percent, and that is well ahead of the inflation rate.

So that should help out workers kind of bridge the gap between what you're making and how you experience higher Prices from the the kind of the hang over from the inflationary Spike we saw. Okay, that's IT. I just felt very much like I had to give you some context for that report in case you read the headlines.

And now you know that we just don't know. Isn't IT Better to just say that sometimes people don't know, you cannot read everything from one report? okay. Today we are talking to pam, who's on the line from i've been .

listening to your podcast for about a month and um I just have a lot of big financial decisions to make right now. My husband passed away about three months ago.

Oh no, i'm so sorry you.

Thank you. He had been sick for quite a while so I ve been taking carbon for the last four and a half years but um you know um we're very lucky that um he was a good financial planner. He he just he took care of business.

So but he always did the financial part. I did like the monthly bills and took care of the kids in the house and he did all the finances, the investments and love insurance policies and all that stuff and he did a great job. Um and so now i'm just left with what am I supposed to do? So we have a lot of a lot of stuff.

I am so so sorry. So ham, first of all, let's talk with some basic. How old do you?

Fifty four?

Oh my god, you're so Young. Oh my god, you have kids.

Yes, three kids. They are twenty five, twenty two and eighteen.

twenty five, twenty two and eighteen. So are twenty two and twenty five launched or they living with you?

Twenty five is launched. Twenty two is still with me in the middle college .

or eighteen and twenty are they in public or private school for on college?

Uh, the twenty year old is in private, but she's living at home. So that helps with the in expenses. Uh, the eighteen year old is going to public good please.

He got off the hook on one of them, cash. okay. So let's now talk a little bit about I know you've got a lot of different things going on, so what how do you want to do? You want to tell me the story or do you want to prompt .

with questions? What would you prefer? Um I can gonna tell you the story of A I will tell you that um my husband left about almost four million in life insurance policies.

Oh my god, that's a lot.

So that's the money that i'm trying to decide what to do. I have talked to a financial is a whose fee based. So I feel good about that. Uh, what we kind of plan on doing is doing two million in stocks, dollar cost averaging in over the next four to six months. Um one of my questions was he also wants me to do one million in a market linked investment. So this is something i'm kind of ensure about um IT has a twenty five point five percent cap in a forty percent down on side over three years call date each year. That was what my questions .

on that OK.

Um I will say I do have a million just in checking and savings just to be safe. I was used to having income coming in and I no longer having income coming in.

I got IT. That makes sense.

So so now what I have is what I have and I think i'll go back to work at some point, but I haven't worked over twenty five years.

Let me ask you question, the kids college money. Is that part of the million dollars in that in checking in savings already of separate assets? For that.

I have separate asset. I have five, twenty nine, nine. There's about three hundred and fifty four thousand dollars in there.

Okay, so that you .

think so? I X tomorrow.

O .

covered.

I went. I'm going to get back to this financial advisor in a second. Now let's just talk about the house. Okay, the how much is your house worth? Would you guess?

Ah between six hundred and fifty and seven hundred thousand.

Is there a mortgage still outstanding?

No, it's paid off.

Paid off. good. okay. Have you gone through this exercise of figuring out how much money you need to live on? And i'm not talking about paying college, but i'm just say, you know, just your your ongoing needs, what you spend in a given month or year.

I would say right now, I would like about fifteen thousand dollars a month at least. I mean, you know that I still, I have a big house. I have other expenses. Expenses.

of course, of course, and you know you you want, listen, sounds like you've gone through this horrible tragedy. We also want you to feel like you can do stuff now because you've been a full time caretaker IT sounds like for five years or so, which is exhAusting. You never noticed that. I know that always the patient gets all the attention, but I always think about the caretaker because it's such hard work. And boy, you've been through a girl you really .

have all right, pam, did your .

husband have a retirement account in addition to all that life insurance?

He did well um he had an R A. It's kind of confusing. He had annuities.

So there's one point four three million and annuities okay, eight hundred and thirty seven of that is non qualified. Five hundred and ninety six thousand is in an R A. Then there's a separate R A that about three hundred and seventy ty two thousand.

Game plan, just life game plan for pam is stay in this house for a while, make sure these kids get educated. Life is good. Do you think though that eventually, is there any idea about doing anything different in your life?

I don't want to stay in this housewife. It's a big house. So that next on IT is very expensive.

Bills election, so like that. So I know I do want to leave. I'm just trying to wait for my son to get through high school. And you know, I am having to make a lot of really hard decisions, right?

And of course, I the idea when there's something big like this that's going on to limit the big decisions, right, that we just want to like take a deeper breath. And okay, let's not do too much at once. And um obviously, you and your kids have been through a lot.

So that's important. If the money in the five twenty nine plants is all used up, that's one thing. If it's not used up, is there any of your three kids you think maybe heading .

towards graduate school? Yes, I think son, he wants to be a physician. My husband was a physician.

Oh wow, he wants to to go on to medical school. My daughter of its twenty two possibly may want to go on to be a nurse practitioner. So show header masters for that.

okay. So the money i'll probably get used up the unused portion of the five twenty nine. And is IT your intention to be able to pay for those graduate schools, if you can?

Yes, I would like.

what kind of doctor is your husband?

Internal medicine?

You know, it's amazing you had a lot of life insurance on him.

And his dad passed away when he was forty seven. I think that's why he got so much love insurance.

That's so interesting that is true, like you're experiences to shape you for sure. So we talked about retirement with the annuities and there's an account. And then how much in .

a broken age account do you about one .

three million? My god, you guys have a lot .

of money that I doing you any good right now.

So I know you'd rather have the husband, not the money, but that you got a lot of money. Number one, i'm wondering that none qualified annuity with eight hundred thirty seven thousand dollars and that where's the which insurance company is .

that held with? Um let's say that you said the non qualified nationality is when .

you showed this to this new financial advisor, you said fee based, but that's not fee only. I know you like this person, so I also want to be clear. I don't want to blow up all your plans. If you like this person, that's important. Tell me more about how you got this .

advisor a through my cpa.

How does this person would get a asset undermanning ever fee? In other words, the two million dollars to dollar cost average would IT be into individual stocks, would be in stocks, mutual funds, would to be stocks, bonds. What do you think the game plan? What is his or her game plan with .

that individual stocks?

I'm not a fan of that. I really tell you something. I really am not a fan of that at all. Because I want you to get a second opinion on this, because your husban's a doctor and the thing I love about doctors and in their spouses that they don't get there, no one gets their nose out of joint that doctors, good doctors are, we say get a second opinion because they're smart, right?

They say, you know, what could have another set of eyes and we're going to get another set of eyes on your situation. Does this person charge a percentage of assets under management for as a fee is at the fee basis? Yes, yes. And what's the percentage?

Seven percent.

okay. Um the linked market linked product. Do you know that that's probably that's just another annuity, I guess.

Well, I know it's through J P Morgan. It's like something to okay.

So it's A J P Morgan market linked product of some sort. Okay, yes, alright. So usually when you have a product like that, even if it's backed by a bank, he usually has some insurance component to IT.

I'm not a huge fan of this. Without going into very specifics, I want to first tell you, you've got plenty of money. Thank god.

As you said, your husband has left you with a lot of money, but a lot of questions. I understand that too. But if we do like a rough baLance sheet for you, you know you've got the four million dollars.

You have money in broken age four, five, six. You but like it's essentially seven million dollars about, okay. So if you think about IT, if we just say seven million dollars, right and we say, okay, what's three percent of that? Okay, that's two hundred and ten thousand dollars a year.

And the good news about that is that kind of what you need. You need to be creating couple hundred thousand dollars years of income for yourself and then you'll be able to float that fifteen thousand dollars. So you should be the good you're in great shape.

That's biggest picture. And you know like in the I was like to start with the the very good news. Okay, so that is the good news thankfulness, right? The second part is how do we manage the money so that you can feel comfortable with the approach that someone is taken? My concern is and and maybe i'm wrong, maybe I maybe this product from jape Morgan is great.

What I would love is if we got maybe a second opinion where we could find out if someone else who doesn't sell any sort of products that are linked to the place where they work and see what their ideas are because in some respects, i'm sort of like, okay, first things first, let's take that non qualified anuwa and annuity and give you some income. Let's use that. You know, maybe that's a good place to start that.

We start to empty that out because there's going to be taxed on that anyway. So let's get that thing going. And maybe instead of having all that money and checking in savings, we can say let's get fifteen, twenty thousand dollars a month out of this nationwide non qualified.

And nobody say not to worry about the markets and movement and all that. That to me, seems like a good place to start. And then you allow yourself the time to have the money invested.

I'm intrigued by the fact that someone wants to buy individual stocks for someone like you when we could just buy a beautiful basket of index funds. And in many respects, I believe that people often think that, oh, i'm picking, I can beat the market, but they can't. And my best engine around this is I think you're intuition is leading you to the right place, which is keep some money in cash, not a million dollars.

But i'm going to explain that in the second maybe annualize, the non qualified annuity because that has fees associated with IT. So we might also get the money out and that will give you consistency of come, especially for the next year or so, right? We know that next couple of years, you know, you could use that essentially, you could say the next three or four years, i'm just going to empty out that annuity.

They are going to withhold taxes on the way out. I'll get fifteen grand a month net to me every single month, and then i'm cool for a fit like three years. You could be getting that, which is great and that lets you get you a sort of like plant your flag of like, okay, let me kind of get myself together here and not, you know, feel so out at sea because you'll have income and that'll make you feel Better.

And by the way, it's also kind of smart because we're getting money out of a product that is expensive. That would be my thought. And then what I love to happen is to have someone else who is not selling any product at all give you an overview of what they think is important in terms of how to manage the money. I'm concerned that they didn't tell you to actually use the unity you have before buying another product that has some.

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Third of market linked mechanism to IT. So that's like kind of my my broad stroke. So i'd like to give you the name of somebody to talk to.

In fact, i'm going to give you the woman who I think at this firm would be very well suit to your personality actually, as I know you now, for how long have we've been talking, mark, let's see, twenty minutes. So now the pam, i've formed this very deep bond over the last twenty minutes, but I, I, I want another set of eyes in your situation. I really do.

And then let us know how IT goes. So number one, thank you so much for contacting us. But number two, I really am so sorry for everything you've gone through, and I want to make sure that we are taking everyone in the business is taking good care of you.

So thanks for hanging with us for a little bit and sharing your story, and we will definitely be following up with you. okay. So thank you for joining us.

Thank you. Thank you.

If you would like to run your various scenarios by us, you've got a big change going on, maybe a transition. Get in touch. Just got a drill on money dot com and click the contact us button.

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