Jude Wilson  00:31

 Oh, doing great. When you said mythbuster, I automatically started hearing the theme to Ghostbusters in my head.

 

Marc Killian  00:39

Great movie, great show as well, so go check that out. But anyway, so let’s talk about some financial myths, right? So I’m gonna give you some random ones. Let you just kind of react to them. All right, let’s roll. Since these, you know, YouTube reaction videos are all the rage, we’ll just kind of do that. So the more financial plan weighs Jude, the more valuable it is. So if you got war and peace coming out of your financial advisor’s office, if you got something like this, it must be awesome.

 

Jude Wilson  01:06

You know, it’s so funny to me, because early on in my career, that’s exactly what we used to do. We had these huge, thick books that we would give to clients take their data, and what I found was most of it was template and boilerplate stuff, bunch of graphs, bunch of statistics, but what actually pertained to the client’s goals, needs and planning probably could have been fit on less than five to 10 pages. And so yes, that is a myth that if you got some provider giving you a Bible size financial plan, it may not be 100% necessary for you to get to your goals.

 

Marc Killian  01:50

Yeah, a lot of people now kind of do simple one pagers, or it’s a few pages, because you do have to have some of the disclosures and things in there. But I think the meat and potatoes for people. Jude, to your point, is definitely much smaller nowadays.

 

Jude Wilson  02:04

Yeah, no doubt about it. And the last thing I’ll say on this particular topic is that, you know, there most people that come into our office have three or four things that they really want to accomplish, and then through our process, we tell them not only about the risk they do see, but the risk they don’t see, and then draw up a map on, how do we get you from point A to point B? Those things do not take a Bible like book to be able to express to you, go over, analyze and discuss and come up with action items to really facilitate getting to your goals.

 

Marc Killian  02:38

Well, that’s a great point, because these giant plans. I mean, are you going to read it? Are you going to follow to follow it? Are you going to be able to implement it? Most people aren’t, right. So having something actionable that addresses pain points, I think, is exactly right down the Reno, right down the alley, so to speak, that people are looking for. So, so that’s good one. All right, good job on that first one. How about this one? My spouse will be fine when I’m gone. They’re only going to need half as much money as we had together. That’s a myth that keeps hanging around people think, Oh, well, the bills are going to get cut in half once one of us dies.

 

Jude Wilson  03:09

This is one that pains me, particularly, because in my 27 years in this career, I’ve been fortunate enough to take clients from their working years to retirement years, and I’ve also walked alongside them during tragedies and spouses passing away. So from a financial planning standpoint, what actually happens is, oftentimes the bills don’t go down that dramatically, but the most important thing that people miss is is their tax filing status. You were filing married, now their surviving spouse has lost that deduction and has to file single and so taxes could possibly go up while income has remained the same, meaning the net in in that surviving spouse’s pocket is less. So there has to be some planning around that.

 

Marc Killian  03:54

Yeah, and income may not stay the same, right? If you, if you do have a pension, if you didn’t select the spousal continuation, that could drop in. And of course, you’re going to lose at least one social one Social Security, right? So you got to bear those in mind, especially, and that tax one is one that catches a lot of people off guard, because it’s like, I mean, for, let’s just say, for 30 or 40 years, you’ve been filing, you know, married filing jointly, and all of a sudden you’re just got to file single. And you hadn’t really thought about that, right? All the brackets shift. Everything changes. What’s the number? Jude, is it more like 80? 85% of the income you’ll probably still need, right? Because you’re gonna some things are 100% Yeah, 100%

 

Jude Wilson  04:31

it’s gonna, it’s, it’s, it’s not gonna be that drastic of a drop of the income need. And psychologically, you know how it is when, when something when, when life changes, you don’t dramatically drop our lifestyle something

 

Marc Killian  04:45

well, and who’s, I mean, yeah, yeah. And who wants to right? I mean, you’ve lost your loved one. You’re not looking to like, you know, go backwards, you know. So some things will change. But it’s not like, your property taxes get any cheaper. It’s not like, you know, if you have a mortgage payment, they don’t. They don’t reduce the price of the mortgage, right? So 100%

 

Jude Wilson  05:03

and all these things that you mentioned, and on top of it, taxes, we know that all these things are are becoming more costly, not less costly, as time goes on.

 

Marc Killian  05:14

Well, again, you got to be careful the myths, right? They’re out there. They’ve been there a long time, but they’re not really factual much. Maybe once upon a time they were, but, you know, they certainly aren’t. Now, let me give you a couple of other ones here. Gee, we’ll do another one or two. Social Security will take care of most of my retirement income. All right, so myth or not?

 

05:35

Holy cow, a big myth for most people.

 

Marc Killian  05:39

Look, it’s a lot of money. It can be a lot of money for people, right? And can people survive on just, on just Social Security? Yes, my mother does it, right? But it’s not the retirement she wanted.

 

Jude Wilson  05:49

Yeah, it’s not the retirement of your dreams, if you’re surviving just on Social Security. And like you said, Some people can do it. Got a few clients that do that, that do that, not very many, but do have a few. The thing is that Social Security is meant to supplement your retirement. It’s not to be your retirement. And so most people now are planning, and some of my younger clients believe Social Security won’t even be around when they retire. So we’ve got to plan for the additional income that may, may be necessary.

 

Marc Killian  06:20

Yeah, I mean, you’ve got to strategize for and you want to use it correctly, because it can’t be a big chunk of money, don’t get me wrong, right? I mean, certainly filing the right way for your situation, but it’s probably not going to be able to handle everything, and if it does, it’s, again, not going to probably be the retirement that you wanted. All right? Jude, another classic for you. I’ll be in a lower tax bracket when I retire. That one’s been around forever, and most people correct me if I’m wrong here, but most people wind up staying in the same

 

Jude Wilson  06:47

bracket, yeah, particularly the clients that we serve who have been high earners their whole life. They’ve been saving really well, putting money in their 401, K, 403, B, they may have a pension. And then when you calculate all that money and the distributions that they have to take out, their income level doesn’t usually drop that much. They’re usually pretty much in the same tax bracket or maybe one tax bracket lower, so it’s not a huge change as far as their tax bracket is are concerned. But here’s the thing that most people don’t talk about, as we’ve seen the tax cut and Jobs Act, it’s not only the brackets that we need to be concerned about, the number, the number, but the width of the bracket. You know how much money falls into that bracket, because the government can play with the width of the bracket, meaning it takes less income to jump into the next higher bracket. And we’ve said on this show and in my seminars and workshops, we all believe that tax rates may go up in the future. How they go up is outside of yours, and mind control, the politicians are going to decide what the actual taxes are in the width of the tax brackets. Yeah.

 

Marc Killian  08:05

And maximizing those steps is where people get really confused. Jude, because we don’t do this every day, and that’s where getting some extra information education, you know, coming out to a seminar or having a strategy session with someone like yourself is important. Because I think a lot of us think, Oh, well, I’m, you know, I’m in the 24% tax bracket, so every dollar I make is taxed at 24% but that’s not how it works. You’re filling up the bracket steps on your way up, which is why we often talk about maximizing a Roth conversion. If you’re going to do it so that you don’t bump a tax bracket,

 

Jude Wilson  08:36

you’re absolutely right. And it’s something that, if we space attention to and work with a professional or if you really understand this yourself, you can there’s so many strategies around understanding the width of the bracket, like tax bracket bumping. We don’t have time to go into the details about that, but just wanted to give an example of how powerful it is to know how these brackets work, and what strategies need to be used to get the most out of understanding your income and your potential income in the future when you in regards to these brackets?

 

Marc Killian  09:12

Yeah, and that’s a great point. Jude and you know, again, understanding and learning how your brackets, your numbers, where you fall, and how to maximize those steps. You know, can certainly be a good way to be tax efficient, so worthwhile to have that conversation, if nothing else, right? If you take nothing else from this financial show, take that right? So let’s do one more here. I’m gonna give you this one. I want to I’m gonna look these. Which one I’m gonna give you? I’m gonna give you a fun one here. All right, Jude, and this is actually a classic as well, because it does this one’s kept this one’s tough. Once I retire, my financial decisions will get easier.

 

Jude Wilson  09:49

Well, you know, to a certain extent, you’re kind of right. You anticipate that the kids will be out of the house, maybe the mortgage will be paid off, and you kind of look forward. To that being a simpler life. Unfortunately, it doesn’t always happen that way. You know, life throws us curve balls, particularly since, you know, we don’t control some how some of the laws have changed. You know, there’s been the passes of the secure act 1.0 the passes of the secure act 2.0 there’s been the tax cut and jobs act all these things changes the calculations on how we do planning and how that may affect the income that’s coming into your door. So yes, in some sense, life gets a little bit easier. But as always, keep in mind that it’s good to have somebody on your side that you can focus on just living your life, and they can focus on the planning of your income, your net worth, and how taxes may be affected.

 

Marc Killian  10:47

Yeah, I think financial decisions in some ways do get a little easier, but they also get more complicated in others, right? So they kind of, I don’t know, it’s like some of them get, you know, I guess less impactful in some ways, and more impactful than others. It’s kind of weird. I mean, it’s life, right? I mean, there’s always going to be something kind of going on, so getting help, especially in this phase, is really important. If anything, I would say it can be a lot more complicated, especially if you’re trying to do it yourself, because, as we’ve talked about many times on the show, if you pull one lever in retirement, it might affect seven or eight more things down the line, you know, versus just accumulating money. It may not that be as big a deal when you’re kind of, you know, building your wealth. So if you need some help, reach out to Jude and the team. Get some time onto the calendar. We’ll have links in the show descriptions below. Just click on one of the links. Go by the website, drop them online, let them know you need some help. We’ll have the phone number there as well. Of course, the phone number has been on the screen the whole time as well, for those checking us out on YouTube and video form, but if you do need to reach out to them, it’s 800-779-4592 if you’re listening in audio form, only 800-779-4592 Or visit them online at send trust fs.com that’s send trust fs.com and again, we’ll have links in all The show descriptions on whatever platform you guys use. Don’t forget to subscribe to us on Apple Spotify, and, of course, right here on YouTube, so you catch more of the Roth guy in the future. Jude, my friend, thanks for breaking down the myths.

 

Jude Wilson  12:11

Hey, we’re the financial myth Ghostbusters today.

 

Marc Killian  12:16

All right. Well, we’ll see you next time here on the Roth guy. Catch you later. Folks,

 

Walter Storholt  12:25

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