WEBVTT 1 00:00:00.600 --> 00:00:03.759 Join this week by our retirement planning professionals, Malia Quavis 2 00:00:03.759 --> 00:00:06.599 and Kyle Kite. They come to us from Klass Financial. 3 00:00:06.679 --> 00:00:11.279 Their website Klossfinancial dot com. That's Class k l aa 4 00:00:11.439 --> 00:00:14.199 s Financial dot com. Their telephone number six oh eight 5 00:00:14.519 --> 00:00:17.879 four four two five six three seven. No charge for 6 00:00:17.879 --> 00:00:19.960 that initial get to know your appointment tech Coss Financial. 7 00:00:20.039 --> 00:00:22.559 It will be complimentary to you again. Their office number 8 00:00:22.559 --> 00:00:25.079 here in Madison, six oh eight four four two five 9 00:00:25.239 --> 00:00:27.879 six three seven. I'm gonna be talking about wrapping up 10 00:00:27.920 --> 00:00:30.640 the year and some retirement goal planning with Malia and 11 00:00:30.719 --> 00:00:32.759 Kyle this morning. Don't forget though, if you have any 12 00:00:32.840 --> 00:00:36.079 questions related to retirement. Of course, they are our retirement 13 00:00:36.159 --> 00:00:38.600 planning professionals from Class Financial and they are here for you. 14 00:00:38.759 --> 00:00:40.439 I just pick a phone, give us call six oh 15 00:00:40.479 --> 00:00:43.119 eight three two one thirteen ten. That's six oh eight 16 00:00:43.320 --> 00:00:45.200 three two one thirteen ten. I'll get you on the 17 00:00:45.240 --> 00:00:48.200 air with folks from Class Financial. Speaking of our friends 18 00:00:48.200 --> 00:00:50.759 from Class Financial, Malia, how are you doing this morning? 19 00:00:51.439 --> 00:00:55.759 Very good? That Christmas list is counting down quickly, isn't it. 20 00:00:56.200 --> 00:00:56.399 Yeah? 21 00:00:56.520 --> 00:00:59.079 With that late late Thanksgiving and it is it is 22 00:00:59.240 --> 00:01:01.640 just are you s keeping a warm. I know for 23 00:01:01.679 --> 00:01:04.519 folks that don't know you're you're originally a Califora It's 24 00:01:04.560 --> 00:01:06.439 been a number of years, but you're a California native. 25 00:01:06.480 --> 00:01:07.400 Are you standing war? Yeah? 26 00:01:07.560 --> 00:01:09.640 Yeah, this is a little chilli. I think we got 27 00:01:09.640 --> 00:01:11.280 to wear our extra long underwear. 28 00:01:12.480 --> 00:01:15.359 I think you're right on the Santa's on to something 29 00:01:15.400 --> 00:01:17.560 with that outfit. Kyle, how have you been? 30 00:01:18.840 --> 00:01:20.959 I'm doing great, Sean, good to talk with you. 31 00:01:21.079 --> 00:01:23.200 Are you are, Kyle? Are you from Wisconsin? Are you 32 00:01:23.480 --> 00:01:25.200 with native Wisconsin or Midwesterner? 33 00:01:26.359 --> 00:01:28.959 Nope, native Midwesterner. I'm born and raised right out right 34 00:01:29.040 --> 00:01:30.000 by our Rockford office. 35 00:01:30.079 --> 00:01:31.120 Oh fantastic. 36 00:01:31.159 --> 00:01:33.079 Which is I'm used to it? Yeah? 37 00:01:33.159 --> 00:01:36.439 Yes, sure you are as used to it as you 38 00:01:36.519 --> 00:01:40.120 can for sure. Of course, we've got a fun conversation. 39 00:01:40.159 --> 00:01:43.599 Had an important conversation ahead as well with Melia and Kyle. 40 00:01:43.599 --> 00:01:46.480 We're going to talk again about retirement goal planning. It's 41 00:01:46.519 --> 00:01:48.480 always great to listen to the program, but don't forget 42 00:01:48.480 --> 00:01:50.000 if you step out of the car, maybe you miss 43 00:01:50.040 --> 00:01:51.560 part of it, or you want to listen back. You 44 00:01:51.599 --> 00:01:54.599 can always check out the podcast available to you online 45 00:01:54.719 --> 00:01:57.799 at klassfinancial dot com. That's Closs k l a as 46 00:01:57.920 --> 00:02:00.680 Financial dot Com. Also great feature of the program is 47 00:02:00.719 --> 00:02:02.640 the class Quiz question the week. Your chance to win 48 00:02:02.680 --> 00:02:05.680 a fantastic prize this week is no exception. You have 49 00:02:05.719 --> 00:02:07.519 a chance to win a twenty five dollars gift card 50 00:02:07.519 --> 00:02:10.599 to Cheesecake Factory from our friends at Class Financial. And 51 00:02:10.639 --> 00:02:14.400 before we get to our conversation about retirement goal planning 52 00:02:14.439 --> 00:02:17.080 as we ring in the new year, let's actually talk 53 00:02:17.120 --> 00:02:19.800 about last week's class Quiz question week get the question 54 00:02:19.879 --> 00:02:20.919 and answer there as well. 55 00:02:20.960 --> 00:02:21.280 Malia. 56 00:02:22.000 --> 00:02:24.560 Yeah, so last week we had a great conversation about 57 00:02:24.560 --> 00:02:29.199 maybe considering raining in some of that holiday spending so 58 00:02:29.240 --> 00:02:31.360 they you don't end up on the other side of things, 59 00:02:31.360 --> 00:02:34.479 which is probably more debt on your on your books 60 00:02:34.520 --> 00:02:37.879 than you would care to have. So the question last 61 00:02:37.919 --> 00:02:40.919 week was true or false. Winter holiday spending in the 62 00:02:41.039 --> 00:02:44.039 US and twenty twenty four is estimated to be about 63 00:02:44.120 --> 00:02:48.159 nine hundred and eighty billion dollars true or false. Correct 64 00:02:48.159 --> 00:02:51.840 answer was true and it was as we saw black Friday. 65 00:02:52.159 --> 00:02:56.400 The results were tremendous out there, So congratulations to our 66 00:02:56.400 --> 00:02:59.039 winner from last week who correctly answered that that was 67 00:02:59.199 --> 00:03:02.400 Rachel of one on a key. So listen carefully. Today's 68 00:03:02.439 --> 00:03:04.120 question for the price. 69 00:03:04.080 --> 00:03:05.680 And again that's a chance to win a twenty five 70 00:03:05.680 --> 00:03:07.400 dollar gift card to Cheesecake. Fact, we'll tell you a 71 00:03:07.400 --> 00:03:09.439 little bit later on in the program how you can 72 00:03:09.479 --> 00:03:12.039 win that. As Malia mentioned though, it's definitely important to 73 00:03:12.039 --> 00:03:14.439 pay close attention because just about every time the question 74 00:03:14.560 --> 00:03:17.719 answer comes up during this show. Of course, the website 75 00:03:17.759 --> 00:03:20.400 of mbend their costs financial dot com. That's cost financial 76 00:03:20.439 --> 00:03:23.400 dot com. And as mentioned, we look towards the end 77 00:03:23.400 --> 00:03:25.840 of the air. Of course, twenty twenty five is nearly here. 78 00:03:26.280 --> 00:03:29.439 Are there retirement goals that we should probably be doing 79 00:03:29.520 --> 00:03:31.360 right now, Kyle planning. 80 00:03:31.039 --> 00:03:33.759 For Yeah, absolutely, Sean. As always, you know, these years 81 00:03:33.759 --> 00:03:35.800 fly by. I joke with people it feels like July 82 00:03:35.840 --> 00:03:37.960 fourth was just yesterday. But here we are already at 83 00:03:38.000 --> 00:03:41.520 Christmas time. But there's no better time than right now 84 00:03:41.520 --> 00:03:43.919 to start looking at potential adjustments that you may want 85 00:03:43.960 --> 00:03:46.840 to make into twenty twenty five, to make sure you're 86 00:03:46.840 --> 00:03:49.639 moving towards those goals that you're shooting for down the line. 87 00:03:49.759 --> 00:03:52.159 So today we've got some great ideas to help you 88 00:03:52.199 --> 00:03:55.240 start out on the right foot, but really to before 89 00:03:55.240 --> 00:03:57.240 we get into twenty five, the first thing that we 90 00:03:57.280 --> 00:04:00.240 should do is look back at what we where at 91 00:04:00.280 --> 00:04:04.400 today and what went on. Obviously, So the first one 92 00:04:04.879 --> 00:04:07.479 is to assess your current debt. Excuse me, so, as 93 00:04:07.520 --> 00:04:09.919 Malia said, sometimes around the holidays, people spend a little 94 00:04:09.919 --> 00:04:12.080 bit extra on those Christmas presents and things like that. 95 00:04:12.280 --> 00:04:14.479 So you got to include any of this that you 96 00:04:14.520 --> 00:04:18.160 may have just accumulated over the holidays here and really 97 00:04:18.240 --> 00:04:20.519 understand the amount of interest you're paying to hold onto 98 00:04:20.560 --> 00:04:23.480 that debt, because again, credit cards tend to be really 99 00:04:23.560 --> 00:04:26.759 high interest. But also look at your mortgage debt and 100 00:04:26.839 --> 00:04:28.879 does it make sense to make an extra payment or 101 00:04:28.920 --> 00:04:31.519 two per year, as you've heard us talk in the past. 102 00:04:31.600 --> 00:04:34.079 By doing that extra mortgage payment a year, that really 103 00:04:34.079 --> 00:04:36.800 cuts down on the time that you're paying on that mortgage. 104 00:04:36.800 --> 00:04:39.120 It's pretty pretty wild when you look at the big 105 00:04:39.160 --> 00:04:43.600 picture of it. And then can you another year to 106 00:04:43.639 --> 00:04:46.600 avoid a higher car payment? So obviously, car companies are 107 00:04:46.600 --> 00:04:49.160 really good about running good advertisements this year with special 108 00:04:49.199 --> 00:04:51.439 financing and all that kind of stuff to kind of 109 00:04:51.480 --> 00:04:53.560 tempt you into this. But if yours is doing fine, 110 00:04:53.600 --> 00:04:55.079 does it make sense to hold onto it for a 111 00:04:55.120 --> 00:04:58.959 little while longer to keep those payments lower. Obviously, and 112 00:04:59.079 --> 00:05:02.720 with debt obvious just comes your overall monthly budgets. Does 113 00:05:02.759 --> 00:05:05.399 your paycheck go every month? Is it going to just debt? 114 00:05:05.439 --> 00:05:07.079 Do you have so many bills out there that you 115 00:05:07.079 --> 00:05:09.759 don't feel like you've got a lot left over? Is 116 00:05:09.759 --> 00:05:12.199 it going towards something that you're not even conscious of? Right, 117 00:05:12.279 --> 00:05:14.120 so going out to eat a few times more than 118 00:05:14.120 --> 00:05:16.240 you realize, or spending a little more when you do 119 00:05:16.319 --> 00:05:19.600 go out those types of things, and then understanding where 120 00:05:19.639 --> 00:05:22.120 you and your household spend your income every month, will 121 00:05:22.120 --> 00:05:26.279 all properly allocate funds towards something beyond just today. So 122 00:05:26.319 --> 00:05:28.079 this is something that we always, you know, want to 123 00:05:28.319 --> 00:05:30.040 want to be conscious of and make sure we know 124 00:05:30.079 --> 00:05:33.600 where every dollar's going. Obviously, talking this small number three 125 00:05:33.639 --> 00:05:36.560 would be review your emergency savings account, so again make 126 00:05:36.600 --> 00:05:38.959 sure you have to you have a plan to have 127 00:05:39.000 --> 00:05:41.199 at least that three to six months is kind of 128 00:05:41.240 --> 00:05:44.600 the gold standard that he's shooting for, but it can 129 00:05:44.639 --> 00:05:46.480 always go up a little bit like that, and it's 130 00:05:46.519 --> 00:05:48.720 really a good good time to see if there's any 131 00:05:48.720 --> 00:05:51.000 adjustment you can make to start saving a little bit 132 00:05:51.000 --> 00:05:54.480 more here and there. And then reviewing your retirement account. 133 00:05:54.600 --> 00:05:56.560 So a lot of times you want to look at 134 00:05:56.600 --> 00:05:59.240 how much you put away last year and then did 135 00:05:59.240 --> 00:06:02.560 you take advantage of the full company match, and can 136 00:06:02.600 --> 00:06:05.120 you improve upon this in twenty twenty five by simply 137 00:06:05.160 --> 00:06:07.720 increasing your percentage. So this is one of those little 138 00:06:07.759 --> 00:06:10.040 things that we try to get people to do, is 139 00:06:10.079 --> 00:06:11.879 that a lot of times, as you go into the 140 00:06:11.920 --> 00:06:14.560 new year, you'll likely get a raise or something like that, 141 00:06:14.720 --> 00:06:16.839 and you should be taking part of that raise. And 142 00:06:16.920 --> 00:06:19.519 even just increasing your four to one K contribution by 143 00:06:19.560 --> 00:06:21.680 one or two percent, you may not even feel it 144 00:06:21.720 --> 00:06:24.519 on the paycheck, go a long way over the long 145 00:06:24.600 --> 00:06:26.639 term for you talking this morning with it. And then 146 00:06:26.680 --> 00:06:29.000 obviously when you're putting into the retirement accounts, you've got 147 00:06:29.040 --> 00:06:31.839 to be aware of what the contribution levels are. So 148 00:06:31.879 --> 00:06:34.480 these tend to adjust every year, and in twenty twenty 149 00:06:34.480 --> 00:06:36.959 five they're going to be going up slightly. So it's 150 00:06:36.959 --> 00:06:39.040 going to be going up to twenty three thousand, five 151 00:06:39.120 --> 00:06:41.279 hundred for just a regular four oh one K or 152 00:06:41.279 --> 00:06:44.199 four h three B planes that are under age fifty. 153 00:06:44.959 --> 00:06:47.399 But remember if you're over age fifty, you get a 154 00:06:47.480 --> 00:06:50.519 catchup of seven five hundred dollars this next year, so 155 00:06:50.560 --> 00:06:52.439 you could be putting in a toll of thirty one 156 00:06:52.480 --> 00:06:55.120 thousand if you're over the age of fifty. And now 157 00:06:55.120 --> 00:06:56.839 there's a new little wrinkle that we have to be 158 00:06:56.879 --> 00:06:59.439 aware of that if you're between the ages of sixty 159 00:06:59.480 --> 00:07:03.120 and sixty three, they've actually come out with an extra 160 00:07:03.240 --> 00:07:05.519 catchup contribution, if you want to think of it that way, 161 00:07:06.519 --> 00:07:10.199 to get your total catchup to eleven thousand and two fifty. 162 00:07:10.319 --> 00:07:12.160 So the most that you could be putting in as 163 00:07:12.199 --> 00:07:14.680 a sixty, sixty one, sixty two, or sixty three year 164 00:07:14.680 --> 00:07:17.279 old is actually a thirty four thousand and seven to fifty, 165 00:07:17.759 --> 00:07:20.279 not that thirty one thousand for people under the age 166 00:07:20.319 --> 00:07:22.959 of sixty. And remember these are four to one k 167 00:07:23.120 --> 00:07:26.240 contributions that I just talked about, But IRA contribution levels 168 00:07:26.240 --> 00:07:29.079 are a little bit different. So IRA contribution levels in 169 00:07:29.079 --> 00:07:31.279 twenty twenty five are going to be the same as 170 00:07:31.279 --> 00:07:34.120 they were in twenty twenty four, which is seven thousand 171 00:07:34.120 --> 00:07:36.560 dollars for people under the age of fifty and one 172 00:07:36.560 --> 00:07:39.000 thousand dollars catch up for those over the age of fifty, 173 00:07:39.079 --> 00:07:40.720 so you can put a total of eight thousand and 174 00:07:40.759 --> 00:07:44.480 if you're over the age of fifty. Nice. And then finally, 175 00:07:44.639 --> 00:07:48.199 the one big thing that sometimes people forget about these, 176 00:07:48.240 --> 00:07:51.199 and they're really really powerful accounts where big fans of these, 177 00:07:51.240 --> 00:07:55.199 which is a health savings account, So these are associated 178 00:07:55.240 --> 00:07:57.720 if you have a high deductible health plan through your 179 00:07:57.759 --> 00:08:00.319 employer or if you're on the exchange and a high 180 00:08:00.319 --> 00:08:04.680 deductible health plan. This is an account that you can do. 181 00:08:04.759 --> 00:08:07.079 It's a health savings account. As I mentioned, that's tax 182 00:08:07.160 --> 00:08:10.079 advantage way to save money. So this is what we 183 00:08:10.160 --> 00:08:13.920 call triple tax preferred here, so HSA contribution. So the 184 00:08:13.920 --> 00:08:16.800 money you put in actually reduces your tax will income. 185 00:08:17.399 --> 00:08:20.000 And then you can invest HSA funds. A lot of 186 00:08:20.000 --> 00:08:22.240 people leave them sitting in like a cash money market 187 00:08:22.279 --> 00:08:24.879 savings account type thing, but you can actually invest them 188 00:08:25.160 --> 00:08:27.759 if it's at the right custodian and if you if 189 00:08:27.800 --> 00:08:30.480 the investment grows, you're going to get tax free growth 190 00:08:30.519 --> 00:08:32.440 on that. And then as long as you pull it 191 00:08:32.480 --> 00:08:36.200 out for qualified medical expenses, it's actually tax free. So 192 00:08:36.240 --> 00:08:38.320 again that's the triple tax I was talking about. You 193 00:08:38.320 --> 00:08:40.159 get the deduction when you put it in, it grows 194 00:08:40.200 --> 00:08:42.159 tax free, and it comes out tax free as long 195 00:08:42.200 --> 00:08:45.600 as you use it for qualified expenses. And in twenty 196 00:08:45.639 --> 00:08:47.240 twenty five you're gonna be able to put aside as 197 00:08:47.320 --> 00:08:50.080 much as forty three hundred bucks for an individual and 198 00:08:50.120 --> 00:08:52.639 then eighty five fifty for a couple or a family 199 00:08:52.759 --> 00:08:55.200 with an extra thousand dollars catch up if you're over 200 00:08:55.240 --> 00:08:57.360 the age of fifty five, So again about fifty three 201 00:08:57.440 --> 00:08:59.320 hundred or ninety five to fifty if you're over the 202 00:08:59.399 --> 00:09:02.080 age of fifty. And another good thing about these is 203 00:09:02.120 --> 00:09:04.519 even if you do them for medical expenses, once you 204 00:09:04.600 --> 00:09:07.679 turn sixty five, they basically become another IRA and that 205 00:09:07.759 --> 00:09:09.320 you can pull the money out and you just have 206 00:09:09.399 --> 00:09:11.279 to pay the income tax on it, but you don't 207 00:09:11.320 --> 00:09:13.519 have to pay the penalty because if you take it 208 00:09:13.519 --> 00:09:16.840 out for non qualified medical expenses, they do penalize you, 209 00:09:16.879 --> 00:09:18.200 so you want to make sure you're using it for 210 00:09:18.240 --> 00:09:20.879 that if you can. But once you get over sixty five, 211 00:09:20.960 --> 00:09:23.279 that penalty goes away, which is a nice little thing 212 00:09:23.360 --> 00:09:24.360 to have with those as well. 213 00:09:24.440 --> 00:09:27.159 Yeah, sounds like an amazing tool to make use of 214 00:09:27.200 --> 00:09:29.799 this morning, as we talk with Kyle Kite and Malia Quavis, 215 00:09:29.799 --> 00:09:32.960 our retirement planning professionals from COSS Financial. You can learn 216 00:09:32.960 --> 00:09:36.480 more about Class Financial on the website cossfinancial dot com. 217 00:09:36.480 --> 00:09:39.679 That's COSS k l AA S financial dot com. You 218 00:09:39.720 --> 00:09:42.279 can learn more about the team at Costs Financial. You 219 00:09:42.320 --> 00:09:45.399 can also learn about the separate divisions and sign up 220 00:09:45.440 --> 00:09:48.039 for the weekly Market Pulse newsletter. It's a nice little 221 00:09:48.080 --> 00:09:50.240 email you get once a week. It's got a snapshot 222 00:09:50.360 --> 00:09:52.559 of what's been going on in the markets recently, as 223 00:09:52.600 --> 00:09:54.600 well as a link to the most recent podcast that 224 00:09:54.720 --> 00:09:57.600 is free to you over at cossfinancial dot com. That's 225 00:09:57.639 --> 00:10:00.720 Coss k l aa S Financial dot com. Scroll down 226 00:10:00.759 --> 00:10:02.639 towards the bottom you'll see a little envelope that says 227 00:10:02.639 --> 00:10:05.039 stay current. That's where you can subscribe to the weekly 228 00:10:05.080 --> 00:10:08.639 Market Pulse newsletter. Speaking of staying current and staying connected 229 00:10:08.679 --> 00:10:10.639 with COSS Financial. Of course, you can always call their 230 00:10:10.679 --> 00:10:12.919 office right here in Madison six ' oh eight four 231 00:10:13.000 --> 00:10:15.960 four two five six three seven. No charge for that 232 00:10:15.960 --> 00:10:18.120 initial get to know your apployment Tech Loss Financial. It 233 00:10:18.159 --> 00:10:21.039 will be complementary to you again that telephone number six 234 00:10:21.080 --> 00:10:23.960 oh eight four four two five six three seven. We'll 235 00:10:23.960 --> 00:10:25.440 get some details on some of the other things you 236 00:10:25.440 --> 00:10:28.679 should be considering doing when it comes to retirement goal planning. 237 00:10:28.879 --> 00:10:31.840 As we look towards twenty twenty five, with Malia and Kyle, 238 00:10:31.879 --> 00:10:34.080 we will do that next as Money in Motion with 239 00:10:34.240 --> 00:10:40.080 Coss Financial continues right here on thirteen ten. WIBI joined 240 00:10:40.080 --> 00:10:43.360 this week by our retirement planning professionals from COSS Financial, 241 00:10:43.399 --> 00:10:45.639 Malia Quavis and Kyle Kite. Of course, you can learn 242 00:10:45.679 --> 00:10:49.200 more about everyone at COSS Financial, including Malia and Kyle 243 00:10:49.200 --> 00:10:51.759 if you head on over the website cossfinancial dot com 244 00:10:51.799 --> 00:10:56.039 that's Coss Klaasfinancial dot com. Under the about tab you 245 00:10:56.039 --> 00:10:57.799 can get to know the team there. Speaking of being 246 00:10:57.840 --> 00:11:00.600 at the website, a lot of fantastic information about class 247 00:11:00.639 --> 00:11:03.480 financial things about their separate divisions. Also chance to sign 248 00:11:03.559 --> 00:11:06.200 up for the weekly Market Pulse newsletter that available to 249 00:11:06.240 --> 00:11:09.200 you at Cossfinancial dot com. There a telephone number office 250 00:11:09.240 --> 00:11:11.399 right here in Madison six' oh eight four four to 251 00:11:11.440 --> 00:11:14.799 two five six three seven. No charge for that initial 252 00:11:14.840 --> 00:11:17.039 get to know your appointment tech Loss Financial. It will 253 00:11:17.080 --> 00:11:19.639 be complementary to you again their number six oh eight 254 00:11:19.720 --> 00:11:22.639 four four two five six three seven. Looking this week 255 00:11:22.679 --> 00:11:27.120 towards twenty twenty five, talking about retirement goal planning and 256 00:11:27.320 --> 00:11:29.440 Malia as as we're kind of going through some of 257 00:11:29.480 --> 00:11:31.879 these steps, I've got to guess there's a lot more here. 258 00:11:31.919 --> 00:11:34.320 Are there some other areas we should be considering when 259 00:11:34.320 --> 00:11:37.279 it comes to planning and of course getting ready for retirement. 260 00:11:37.879 --> 00:11:39.919 Yeah, I think we've got to. We've compiled a really 261 00:11:39.919 --> 00:11:42.799 great list here today just for people to say, hmmm, 262 00:11:43.000 --> 00:11:45.600 am I missing something in some of these areas that 263 00:11:45.639 --> 00:11:49.720 we're discussing. So one of them, certainly is taking the 264 00:11:49.799 --> 00:11:53.759 time to review your asset allocation that you have within 265 00:11:53.919 --> 00:11:57.159 your retirement assets. So you know, I do think the 266 00:11:57.200 --> 00:11:59.320 holidays is a good time to slow down a little 267 00:11:59.360 --> 00:12:01.600 bit and take a peak, you know, under the hood 268 00:12:01.600 --> 00:12:04.720 and see what has happened this year. If you don't 269 00:12:04.759 --> 00:12:07.679 have a financial advisor you're meeting with, certainly do this 270 00:12:07.759 --> 00:12:13.360 on your own and really reflect how your investments have performed. 271 00:12:13.759 --> 00:12:18.240 And perhaps they're out of they're out of whack at 272 00:12:18.240 --> 00:12:20.360 this point. And I mean that in a good way, 273 00:12:20.480 --> 00:12:23.080 because what we've seen is a lot of growth in 274 00:12:23.120 --> 00:12:27.519 certain sectors and you may be needing to rebalance so 275 00:12:27.559 --> 00:12:31.279 that your strategy is what it should be at this 276 00:12:31.399 --> 00:12:33.960 point in your life. So really take time to make 277 00:12:34.000 --> 00:12:37.120 sure that you are allocated the way you should be 278 00:12:37.960 --> 00:12:41.519 for risk and then also looking at your time horizon. 279 00:12:41.639 --> 00:12:44.320 So many people are like, yeah, I mean, I'm not 280 00:12:44.360 --> 00:12:47.919 going to retire for fifteen years, well, that obviously might 281 00:12:47.960 --> 00:12:50.799 not be quite as important as someone retiring in five 282 00:12:51.279 --> 00:12:54.399 or two. So you really want to understand, you know, 283 00:12:54.480 --> 00:12:57.440 your situation and how much risk you should have out 284 00:12:57.440 --> 00:13:00.639 there on the table. Many people we've had shows about this. 285 00:13:00.759 --> 00:13:04.279 Many people are heavy in their own company stock. Nothing 286 00:13:04.360 --> 00:13:07.440 against your current company, whoever that may be. I'm sure 287 00:13:07.440 --> 00:13:10.519 they're high performing and that's great, and I'm sure when 288 00:13:10.519 --> 00:13:13.000 there's a great year, you believe that will always be 289 00:13:13.080 --> 00:13:18.159 the case. Same with certain certain stocks you might hold individually. 290 00:13:19.120 --> 00:13:22.799 But what we've seen is, especially when we're planning for retirement, 291 00:13:22.919 --> 00:13:26.679 we don't want that much risk concentrated in one single stock. 292 00:13:26.919 --> 00:13:29.919 And sometimes that happens without you even realizing it because 293 00:13:29.960 --> 00:13:33.120 as you do retirement contributions, those come in the form 294 00:13:33.159 --> 00:13:35.919 of company stock. So you really want to take us 295 00:13:36.480 --> 00:13:39.360 a good look at what is compiled in your current 296 00:13:39.519 --> 00:13:42.840 four oh one K or four oh three B. So again, 297 00:13:42.879 --> 00:13:45.399 as you get closer to retirement, it's important that your 298 00:13:45.440 --> 00:13:49.360 allocation matches up with your goals and timelines. The next 299 00:13:49.360 --> 00:13:51.600 item we want you to do is put together a 300 00:13:51.639 --> 00:13:54.159 net worth statement, So you want to take time to 301 00:13:54.200 --> 00:13:58.840 carefully review your bank and investment statements. Tally all your debts, 302 00:13:59.039 --> 00:14:02.320 I know that's the one. We'll gulp it and your savings, 303 00:14:02.519 --> 00:14:04.799 put it together. And what you're gonna do is you're 304 00:14:04.799 --> 00:14:09.279 gonna take your assets minus liabilities and determine your net worth. 305 00:14:09.360 --> 00:14:13.399 Now assets do include your home and your car and 306 00:14:13.440 --> 00:14:18.399 so forth, plus your investments, and then we subtract out 307 00:14:18.399 --> 00:14:23.279 your liabilities that would include of course some mortgage, car loans, 308 00:14:23.360 --> 00:14:27.000 personal loans, and of course credit card debt. And what 309 00:14:27.039 --> 00:14:28.799 we want to do is kind of try to stay 310 00:14:28.799 --> 00:14:31.639 on track from you know, quarter to quarter to make 311 00:14:31.679 --> 00:14:35.799 sure we are slowly decreasing that debt and hopefully increasing 312 00:14:36.120 --> 00:14:40.279 the assets, whether it be savings or savings in your 313 00:14:40.279 --> 00:14:44.240 bank or certainly your retirement savings. It's really important to 314 00:14:44.399 --> 00:14:47.519 know where you're at. And you know, speaking to my 315 00:14:47.600 --> 00:14:50.480 daughter the other day and I said, well, so have 316 00:14:50.559 --> 00:14:53.159 you looked at your four one K this year? And 317 00:14:53.279 --> 00:14:56.399 she's in her twenties and she goes, she goes, I can't. 318 00:14:56.440 --> 00:14:58.000 I'm not going to look at that because I know 319 00:14:58.039 --> 00:14:59.159 I can't touch that yet. 320 00:14:59.159 --> 00:14:59.440 Mom. 321 00:15:00.279 --> 00:15:02.519 And I'm like, well, it's always a good thing to 322 00:15:02.639 --> 00:15:05.159 see the baramna go up right, we don't like to 323 00:15:05.159 --> 00:15:07.279 see it go down. We all understand that, but just 324 00:15:07.399 --> 00:15:11.360 see incrementally that it increases. That should give you a 325 00:15:11.360 --> 00:15:15.519 good feeling as you approach retirement. We also want you 326 00:15:15.559 --> 00:15:19.720 to review your Social Security benefits. Either review or set 327 00:15:19.799 --> 00:15:24.679 up an account at social SSA dot gov Social Security Administration. 328 00:15:25.679 --> 00:15:28.200 You can get a statement online and that will give 329 00:15:28.240 --> 00:15:32.240 you information about your earnings records, your estimated benefits, and 330 00:15:32.279 --> 00:15:35.879 how much you or your family would receive in disability, 331 00:15:36.000 --> 00:15:39.600 survivor or retirement benefits. So you know, we have our 332 00:15:39.679 --> 00:15:42.320 clients do this on a regular basis. They no longer 333 00:15:42.440 --> 00:15:46.000 send out those nice little statements unless you request it, 334 00:15:46.320 --> 00:15:49.080 but typically just go online. You can see what your 335 00:15:49.080 --> 00:15:52.519 benefit's going to look like at your full retirement age, which, 336 00:15:52.759 --> 00:15:56.360 if everyone's listened to our show enough years, that's known 337 00:15:56.360 --> 00:16:00.720 as your FRA. And you know we also talk about 338 00:16:00.840 --> 00:16:03.440 you might want to hold back and not collect at 339 00:16:03.480 --> 00:16:06.519 your FRA. You might want to wait till age seventy, 340 00:16:07.000 --> 00:16:12.320 so those delayed retirement credits start adding into your future benefit. 341 00:16:12.360 --> 00:16:15.679 And those delayed retirement credits are as much as eight 342 00:16:15.720 --> 00:16:19.000 percent per year from that FRA up to age seventy, 343 00:16:19.480 --> 00:16:22.480 So you want to understand because social security for most 344 00:16:22.480 --> 00:16:25.519 people is going to be a good portion of their 345 00:16:25.559 --> 00:16:29.360 future income. We also want you to review your beneficiary, 346 00:16:29.480 --> 00:16:31.600 so we want to make sure all your investment accounts 347 00:16:31.639 --> 00:16:35.159 reflect who should receive your assets if you're no longer here. 348 00:16:35.720 --> 00:16:37.879 You want to make sure your will or your trust 349 00:16:39.039 --> 00:16:42.960 also reflect the same beneficiaries. And then we also want 350 00:16:43.000 --> 00:16:44.799 to want to make sure you have your power of 351 00:16:44.879 --> 00:16:48.000 attorney documents in place, so that would be power of 352 00:16:48.080 --> 00:16:52.879 attorney for property meaning investment assets as well as real 353 00:16:53.000 --> 00:16:55.480 estate and other assets. We also want you to have 354 00:16:55.960 --> 00:16:59.200 your health power of attorney in place so people could 355 00:16:59.240 --> 00:17:02.519 speak on your behalf if you were unable to, so 356 00:17:02.600 --> 00:17:04.839 make sure you do that. We would say review your 357 00:17:04.920 --> 00:17:09.240 beneficiaries on a yearly basis because things change in families 358 00:17:09.559 --> 00:17:11.440 and we want to make sure that your wishes are 359 00:17:11.440 --> 00:17:13.359 carried out as you would like them to be. 360 00:17:13.680 --> 00:17:16.160 Talking this morning with Malia Quavis and Kyle Kite. They 361 00:17:16.200 --> 00:17:19.160 are all retirement planning professionals from Class Financial. Their website 362 00:17:19.160 --> 00:17:22.839 class financial dot com that's Class k l aas Financial 363 00:17:22.880 --> 00:17:25.079 dot com. And the telephone for the office right here 364 00:17:25.079 --> 00:17:28.200 in Madison six so eight four four, two, five, six 365 00:17:28.400 --> 00:17:31.720 three seven and Malia. While we're reviewing things, there could 366 00:17:31.759 --> 00:17:35.319 be certain insurance policy life insurance policies. You probably want 367 00:17:35.319 --> 00:17:37.359 to make sure that those are up to date as well, 368 00:17:37.400 --> 00:17:37.720 don't you. 369 00:17:38.400 --> 00:17:38.640 Yeah. 370 00:17:39.599 --> 00:17:43.720 Interestingly enough, some people have carried life insurance policies for 371 00:17:43.880 --> 00:17:46.480 fifty plus years, like they got them when they're in 372 00:17:46.519 --> 00:17:49.759 their twenties, And we're reviewing with people and they're in 373 00:17:49.799 --> 00:17:54.039 their mid mid seventies, and well, we will really look 374 00:17:54.079 --> 00:17:58.039 at the death benefit, how much has been put into 375 00:17:58.200 --> 00:18:00.799 the policy? Is there a cash vew you attached to 376 00:18:00.839 --> 00:18:04.400 the policy? And what we hear many times is people say, well, 377 00:18:04.440 --> 00:18:07.200 I've been putting I've been paying my premium for fifty 378 00:18:07.240 --> 00:18:10.559 plus years, and I don't want to stop paying it. 379 00:18:10.599 --> 00:18:13.279 But then we look at really the details again and 380 00:18:13.319 --> 00:18:15.200 go does it make sense to be keeping it for 381 00:18:15.279 --> 00:18:18.599 that amount of death benefit? Or better yet, can we 382 00:18:18.640 --> 00:18:21.960 actually take that cash value and apply that towards the 383 00:18:22.039 --> 00:18:25.599 premium at the very least, So you really want to 384 00:18:25.680 --> 00:18:28.119 look at does that make sense to keep the policy 385 00:18:28.119 --> 00:18:30.720 in place? Please, please, please do not go out and 386 00:18:30.759 --> 00:18:34.480 cancel these policies until you've reviewed them with somebody. But 387 00:18:34.559 --> 00:18:38.039 you also want to make sure that you have beneficiaries 388 00:18:38.079 --> 00:18:42.480 on those policies that still reflect your current life. And 389 00:18:42.519 --> 00:18:44.759 then finally we're going to say, you know, we're big 390 00:18:44.799 --> 00:18:47.720 planners here, so we want you to begin goal planning 391 00:18:47.759 --> 00:18:50.960 for your retirement. I don't care if it's fifteen years, 392 00:18:51.200 --> 00:18:53.720 twenty years out, or five years. We want you to 393 00:18:53.839 --> 00:18:58.160 start planning. So when do you ideally want this to happen? 394 00:18:58.279 --> 00:19:01.799 Obviously that's a moving could be a moving timetable for you. 395 00:19:02.400 --> 00:19:05.559 Where would you want to live in retirement? How much 396 00:19:05.640 --> 00:19:08.279 money do you need to make that a reality? Again, 397 00:19:08.319 --> 00:19:11.279 you're going to sit down, hopefully with a financial planner 398 00:19:11.279 --> 00:19:14.519 at some point and say, okay, tell me what do 399 00:19:14.599 --> 00:19:16.640 I need and how am I going to get there? 400 00:19:17.119 --> 00:19:20.119 And so with that, they will tell you what steps 401 00:19:20.119 --> 00:19:22.640