Ten Ways to Run Out of Money Part 7

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  • Whatever size your home, let’s go to #7, getting hurt
  • Who has a close friend or family member who experienced a crippling injury?
  • Luckiest client ever, had a client fall from the top of the ladder, only bruises
  • LUCK FAVORS THE PREPARED!

  • 2019 numbers put nursing home cost in KY at $8.6k per month.
  • Numbers are from https://www.genworth.com/aging-and-you/finances/cost-of-care.html
  • Second assignment, one month’s premium upgrading your home
  • Hand rails, lights and non-slip first priorities!
  • Not age specific! We have a client with many of these requirements in his 30’s.
  • Too much ego? Make it safe for your future self or a ‘friend’

View the AARP HomeFit Guide here for smart solutions to making your home comfortable and safe.

Ten Ways to Run Out of Money Part 6

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What is the smallest house you have owned? How much bigger is your current home? We had our first child, Emma, in a 1,600 square foot house, built in the 20’s. When son James was born we moved to the south edge of town. There were several factors, but size of the house was certainly one of them.

This is an example of being “intentional” about expenses. This is not judgmental at all.  But the best choices can be made with the clearest information. I am not qualified to tell you whether you are spending too much money on housing. I can suggest you bring the numbers up where you can see them. Maybe you do the math here and decide the current numbers are just fine. Maybe you want to talk about how these numbers could be improved. We are always happy to talk.

Ten Ways to Run Out of Money Part 5

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This is a scary one. It’s scary because it threatens our self image. “How could I fall for that?” Unlike identity theft which has protections built in, there really aren’t any protections with scams. Apparently the Nigerian Prince is not coming to Bluegrass Field to drop off my inheritance. Which is sad.

The math in the image above works out to $3,421 per victim. That isn’t a whole lot of money per victim. I will bet my now uncertain fortune that those numbers are much higher. Who would really want to come forward with a story like that?

Which leads us to the antidote, and the reason the scam works in the first place. The scam works, at least in part, because the victim feels bad about being scammed. We have to agree that part of our role in your financial life is to answer questions and clarify confusing things. We need to be the safe place you can call and say “I got a call about my Social Security number yesterday. Apparently I’m a wanted fugitive now, got any advice?”

In reality, very few financial issues require immediate response. The organizations that could be asking you for information do not move quickly and they do not require immediate response. That’s part of the con. If the perpetrator can get your fear response to kick in, it literally turns off the higher executive function in your brain. The critical thinking areas turn off and the quick reaction side takes over. The brain uses the same processes it would use if you were living in a cave and worried about the big tiger in the tall grass.

Call us. We’ll talk it through and come up with a strategy to address the threat.

Reach out to your loved ones, they miss you!

Ten Ways to Run Out of Money Part 4

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  • Remembering life expectancy, inflation and ‘too old’ brings us to #4
  • Panicking in the next bear market
    • Only one call and doesn’t count as she was a new client
    • Don’t hesitate to call or schedule a time to come in
    • WE WILL ALWAYS CALL YOU if action is needed
  • Hope for the best, plan for the worst.

Some of you have seen this tool. The idea is that box on the lower right side there has the current investment portfolio in the middle, with an upper and a lower guardrail. When the Investment account goes above or below the guardrails, we make an adjustment to the spending. As long as the account value stays within the boundaries, things stay the same.

The box on the lower left has the numbers that make up the chart on the right. Same data, just a different way to look at it.

  • Like an unknown windy mountain road with cliffs on the edge
  • WHEN, not IF
  • The idea here is to adjust spending if the investment
  • Adjust income accordingly

Should I consider a Roth Conversion?

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There are a lot of important considerations to weigh before doing a Roth Conversion. As a result of the current market condition and changes due to the SECURE Act, Roth conversions are becoming an important strategy that advisors are discussing with their clients. This flowchart addresses some of the major decision points to help guide you in the right direction.

If a Roth Conversion sounds like it might be a right move for you, give me a call, I’d be happy to discuss over the phone to answer any questions or concerns you might have.