Legacy Planning with Mike Massey, 8/12

Legacy Planning with Mike Massey
Saturday, August 12th

Legacy Planning with Mike Massey, for August 12.


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

Keep up with the latest breaking news in Austin and around the world take allow it to make sure you're following us on Twitter at top thirteen 7011 trading began. Just one more way to stay connected with top thirteen seventy the right choice. Great afternoon and thank you for listening to legacy planning that might. Massey home of the legacy planning challenge. Here on this show Lee's financial tools to help you impact the world through your legacy. Our toolbar includes financial retirement and estate and many other planning tools. Each of us says unique opportunity and responsibility. To create a legacy. Well you create a legacy and take your legacy plan from hopes so tuna so. So take my legacy planning challenged to find that if your legacy plan is built on the foundation. Of rock or a stand. I'm your host Mike Massey some wealth manager and partner Lacey one financial advisors. You can call me to submit a question. We're scheduled time for us to meet complementary meaning we can mean simply over the phone or in person. With a great made offers an arboretum. And at times a mountain about may be a Dmitry at a coffee shop. The number to call is 512968512968. 512900. 68. Let's get to today's first question. What are some fixed income options in the months based that I should consider. Well it's a broad question which is great as we can cover lots of things with this question. We have lots of concerns out there right now. We have rising interest rates most likely they certainly been done that a little bit. We're coming off from all time lows. In interest rates therefore they really only have one direction to go in my opinion. Do you wanna think about that what that does to bonds. So bonds and interest rates and an inverse. Relationship. When interest rates go up the prices of bonds go down generally speaking. So if we anticipate that interest rates are going to rise which most people generally agree will happen. The amount and the speed at which it'll happen people differ upon. But as those credit interest rates goes up and go up the prices of bonds go down why well yeah. If you paying a hundred dollars for a bond that's paying you 2%. And next month your neighbor buys a new bond for a hundred dollars that has arisen rates and is now paying 3%. Well no one's gonna wanna pay the same. For your 2% bond when making gone by and you went to add 3% so they're gonna offer you less than what you're originally paid. And the example that we're talking about. So you wanna think about different things that are going on when bonds different types academy. Hours there's core bonds. You'll have the mark is aggregate which is coming your intermediate. Term corporate grade bonds. We'll have short term bonds and those can be governmental when they can be corporations. You'll have your long term bonds and the longer you go on bonds he might be able to get a better yields. But you're also taking more risk in regards to interest rate risk. There's floating rate bonds floating rate bonds are bonds that flew in their interest coupon payments. And they'll float with generally less the same crime so if prime interest rates go up the new interest payments that bond and the debt holder. Asked to pay will increase. And you as the bond holder who owns a piece of paper will get a higher. And conversely if rates go down. There's foreign bonds those kids being. Bonds that are issued. By foreign governments by foreign corporations. My foreign corporations. Act risk of default which may be a high yields foreign bonds. They can be short term mid term and immediate term long term. They can be from a developed market from an ever emerging market. There's also tactical bonds and these are bonds that. Move around so for example one in my head I won't give the name or nor promote the product but I'll just give me an idea what this man look like. There's one that I know of and it sits a 100% and they assets in high yield bonds. Or treasury bonds or cash. If it likes. The opportunity to risk were returned. Paradigm that's going on in knee high yield bond market then it will be completely and I yield bonds. But if it doesn't like that opportunity than it would move to treasures. And if he doesn't like that up and then just in cash. That's just one example there's numerous examples out there on the market. And be happy to talk to him person determine which strategy may be most appropriate for you there's also flexible bonds. Many managers out there. In the active space that wolf. Have the flexibility to move between them bonds within their funds so. Maybe they like the long into the cared for the short term and I think Herbert an Armenian earth and they favor foreign over. Domestic US or government over corporations or vice Versa or high yield or floating. There's dozens hundreds of different variables that there. Entering into the equation as chairman where they wanna be where they wanna overweight where they wanna underweight where they want to steer completely clear from. And there are some great opportunities out there and is flexible funds. So there's a lot of different things going off and I can't tell you which is best for you and in generic setting like radio show. Today would love to sit down on human person. Hopefully in my office we can also do it over the phone as a complementary meaning like to get to know you. You're risk tolerance which are looking for your goals your age your income your. Asset level to determine what may be appropriate for you because what may be appropriate for you maybe. Different for your next door neighbor. For your friend for your colleagues for your family member a loved to sit down it's not anymore and see how we can help you. To submit your questions or to schedule your legacy planning meeting with me which is complementary. We can do an in person or over the phone. Just combing one to 96080. Here's our next question. What's the best 529 college savings plans to go to let's take a step back. And talk about what if 520 minus. 529. Isn't qualified college savings plan. It allows someone to invest. Or someone else's college. Of course she can invest for yourself as well but typically it's done by a parent for a child or by grandparents her grandchild. Multiple people can contribute to his set he set it up your friends in your grandparents can contribute to it so. But some people do is say instead of getting my child that. Peace and jumping toy that's 25 dollars this is gonna break in they're gonna get dozens of anyways. Money you contribute to the 529 her for Christmas instead of getting the couple hundred dollars worth of stuffed into Louise about you contribute to my child's 529 and overtime. Under here under their 500 years 500 there. You've got a great chunk of the college tuition college room College Board. But out of the way as you've got the funding for and it's gonna grow not only tax deferred tax free. So for example if you put in a total of 50000 dollars overtime to a 529 plan. And that grew 200000. Dollars. Well normally outside of a 529 and because you have 50000 dollars in danger dimple not pay taxes on. Not with the 529 with a 529 if you pulled money out for qualified expenses which loosely loosely defined our. College tuition room and board books and the like and then IRS defines it and there's different descriptions that we can help you walk through in this regard. But you ample Lemony I'm not paying any taxes so you're avoid all the taxes would that would have been deal on 92000 dollars in gain in this particular example. There's lots of great options of which 529 intent to use there's probably. Thirty maybe as many as fifty. 529 plans though I times not a state specific 529 planets. Maybe who view if you live in a state with and in a state income tax views that states and Texas went on a state income tax. That's that doesn't enter into the equation for us over here and and you have summon one in particular that I am staring my clients towards at the moment. And and things you wanna consider our. Investment options so what kind of investment options that they have do you like the companies feel like the indexes like actively managed funds that they offer what does that look like. How many either either five choices and their fifty choices. Can and you have the freedom to invest or you want are they forcing you to go to modeled there's nothing wrong with model. Is wanna know if you have a choice to have the freedom to choose your own funds if you're going to be adding to use what they have bundled together in a model. He also won what it costs because each different fund as different costs and that's one of the things that should enter into the equation. Or look at on the countries as some states charge a percentage fee on an ongoing basis maybe it's. Point 05%. Or point 2% or whatever that number is. Or maybe it's a dollar amount maybe it's ten dollars per contract for 529 planner. Fifty dollars or whatever the number may be so these are different things that enter enter into the equation. He also won on checked the service they take your calls and nice and knowledgeable to have a calculator that can help you figure out how much you should be contributing. And me as a wealth manager. How to recommended equation. Well currently with 520 nines like you know my clients with 520 nine's. And can help with calculation we can walk through the big decision of how much we need to fund it with now how much we need to contribute monthly. Ongoing monitoring over the years that we don't over fund or underfunded try to hit the target just as well as we possibly can. And there's some things they enter the equation might do we really want a 100% are we comfortable with targeting a 50% funding greater 70% funding rate because maybe that child gets. Scholarship for May be dame. Don't go to college so all these things and iron to the equation and loved to have this conversation with you in my office again we have a huge office in the arboretum. And when loves it down and talk with you my name's might mess him a partner and wealth manager legacy one I'm here to help you with legacy planning. You can calming and 51296080. 51296080. I'd be more than happy to sit down with you and talk about whatever may be on your mind. In my Sherman in my practice selective focus on holistic wealth management. And along with that comes at a deep understanding and indeed desire to do legacy planning with my clients which is more than just money yes money comes into the equation how much. A year learning how much she's saving how much do you spend how much do you need to have her retirement how much you wanna have them deeper than that it is. Why are you doing what you're doing what everybody's in a race to get retired but what are you gonna do when you get there. Is going to be as great as you thought very MB board unity playing golf seven days a week and well that boy you can be fishing and five days a week and will that no longer becoming this great. Hobby that you look forward to that it just becomes something it's almost monotonous. Fill your days start thinking about that story living intentionally. From what you want your legacy to look like because it is going to transcend money is going to involve behavior. Which your children your grandchildren your neighbors and your community remember US. Read this grumpy person who just worked all the time. Did you give alliance how did you give where you just trying to get accolades for yourself but it will look like. And we want to walk through that is money is and means to an end and they can help you get retired can help you stay retired can. Help reduce some of the stress the money in itself is not just gonna make you happy he's only walk through this journey they call life. In this thirty or forty year journey that we call retirement a wanna help you call me a Mike Massey and partner. And a wealth manager. Legacy one financial advisors 51296089608968. Thank you so much for listening we'll be back right after a short. Hi this is Gordon Deal join me weekdays 4 this morning America's first news to hear the stories you'll be talking about and searching for all day as we go beyond the headlines and above the chatter weekdays at five on talk thirteen seventy. Welcome back to legacy planning with Mike Massey and your host Mike Massey NI MA wealth manager and a partner. The legacy one financial advisors and I am here. To Serbia. Yes like answers certainly generically over the radio show and give you some information answer questions hopefully give you some wonderful insight. Making just a little bit smarter in one area. When you hear this show is my hope. And and really wanna sit down and meet with you in person that we can do and it over the phone at first in get a feel for me and get a feel for use you for didn't match. Working with a good wealth managers much like the dating you wanna make sure that it's a good match if we're not a good fit for each other. The nation know that insane that in this go our separate directions but. For those views were different fit for mean I'm a good fit for you then we're gonna pursue this relationship and not be over the decades to come. We can help you with financial planning. Putting and her writing nineties. Clinton out there in space it's in writing so we can only pulled each other accountable to what we're doing. And we can walk through knowing how much worse than your spending and saving. And the goals in the first hitting those goals and what that looks like. So that it's not guesswork you know I'm just San I'm working on an office there's something at the end of the rainbow. Domingo and deep with that in the legacy planning and making sure that if you. Pass a way that the right life insurance is in place prayers and generally speaking. I use term life insurance it's cheap it's easy. Lotta people can get. A million dollars in coverage firm 500 bugs so I'm kind of bugs. Usually doesn't cost much pressure. Pass a certain age he had a certain health conditions so for a lot of people you can get it. For very low cost relative to your income and we can run that calculation orient about thirty seconds when she give me on the phone. So it's really easy and we'll send bids out to dozens of companies and let them fight over who wants to give you the best rate. We can also the Social Security analysis of those views were over 55 and a half it is extremely. Important. Do you get the proper Social Security analysis done. Because if you don't you're probably not gonna make the right Social Security decision and I can tell you that of the people I met with the most of them get it wrong to take it at the wrong time. Tickets to her link for no reason for not for the right reasons Michael walk you through on my show. An impersonal wonder what I typically see the mistakes that people are making. Somebody things that we can do to help in the first meeting is completely complimentary in if we decide to pursue we'll show you what that looks like them a fee based financial advisor. And now we have our where registered investment advisor we run our money for a a very low fee we're gonna help you out. We can use stocks bonds bond funds ETFs mutual funds index funds whatever we need to do to get the job done for you. And be happy to sit down and talking about what that looks like in your particular situation just only 51296080. 9608968. Here's a question they say I have an annuity. But I'm not sure what it is or if I should keep it. We've talked about annuities in general. And all those questions to you but really we can't get to the heart of the matter unless we sit down look at your statement. Get on conference call together to the new recounting and ask him some questions lots of questions because. There's dozens and dozens of moving parts to every community that I've seen out there. First there's different kinds of communities there's that immediate and noting often known as SPF single premium immediate noting. There's a fixed annuity which typically looks like a ponders CD. In its structure. Then there's the index annuity is also known as I fixed indexed annuity FIA. And then there's a variable annuity also known as Zain is via. So wanna know what that looks like one another term is a completely liquid seek to pull your money out tomorrow if you wanna team. Forty has some type of commitment that you have to stay with the company for. Three years five years seven years ten years or for even as long as fourteen or fifteen years that I've seen on some of them. And what's the cost to get out if you wanna get out of bitterly when look at all those things. Do you have a writer. On it are you paying extra for our writer or included a non price whatever that may be. And often these come in the form of income benefit or a death benefit. And income benefit as a brief example might say. A guarantee joining come of 4%. Of the high watermark every year for the rest your life even if the value to zero precious an example. And death benefit might say something like this it's it'll pay you and me. Greater. The highest value ever achieved on a contract anniversary of that once a year valiant or no market value whichever is better. Assuming you never took withdrawals out which could produce that so the death benefit might say if you put in a 100000. And in year seven it was worth a 150000. But he hit a bad marking past when it was only we're 70000. Once and again the 70000 dollar value maybe they'll pay you the 150000 which is the greatest value ever achieved. So there's a lot of different things look out there. We will look at the costs what are you paying some annuities are completely fee free you don't pay a penny. Some term one or 2% summer 33 and a half 4% or even more than 4%. So if you call me we can look at what those numbers are put pen to paper and decide if that's what you wanna be doing with your money. Some people album because they give on some kind of peace of mind. From an income standpoint or an inheritance and legacy standpoint. Some people really like them because they can help with tax deferral. And even the benefit of tax deferral may be profound and a very positive way overtime especially if that tax deferral continues to the next generation. And some people may not like and they may not like insurance companies in general they may not wanna pay the fees in May not wanna be committed first certain amount of time. As a variety of reasons that we can sit down and learn your situation and decide if and annuity is good or not good indoor situation for your particular. An appetite and if you're in an annuity and you wanna stand that's great we may even be able to find a better annuity for you because. You can do what they call at 1035 you can move from one annuity to another annuity. Without a tax consequence. On not even if it's non hiring money it's gonna and terror America section 1035 exchange. And maybe just one get out of the annuity altogether or maybe your band a lot of fees for certain writers but I. And you've got a big gain in their original one pay the fees anymore because you've got a big gain and you don't care about for detecting that. I value for whatever reason. Then we can go into an annuity rescue type a situation where we can move it down and take your cost from three or 4% down them maybe one and a half percent. So there's a lot of different options that we can consider there. And we also wanna know how concentrated are you what percentage your portfolio there's some advisors in town and they put a 100% of the clients. Money into annuity and if that your case we definitely wanted to talk because you've probably wanna have more money liquid. The nag you probably don't wanna be over allocated to any certain company than as I guarantee. And maybe even industry in general. Without going into specifics it's best if we sit down and talk in person so that I can educate you more on this topic. This annuity analysis that I can help you with. It's completely free I don't charge of any. We'll walk through at Shea exactly when you have we'll put pen to paper will determine if it's good for you we'll share a year options. Whether we can improve your situation lower your costs. Or just shake your hand say you've got something that you really like can you just stick with it. Can make all we'll talk about it we'll sit down over a meeting in person or on the phones completely complimentary. We had a large office and number arboretum where we can meet on numbers 51296080. One to 96080. I'm Mike Massey M wealth manager and a holistic wealth manager that. And I do legacy planning. And loved to help you with anything that we can help you with 12. 968. Next question what do I do in regards to finances and estate planning when my mother dies and some married since I'm named in her will. So I wanna know if you're the executive secretary is basically the one you takes that will to court. It's approved up to the judge and rubber stamps. Go out and inventory the estate and distribute the estate is a year is someone else if it's not you. Then we wanna know who it is and if that is you've been you've got responsibilities you've got a duty. To the beneficiaries to act in their best interest and to make sure that you do in an orderly and accurate. Inventory and distribution of that state. We wanna know if you're a beneficiary. Then maybe if you know me the other beneficiaries are sometimes people just inherited beneficiaries who wanna make sure that you're not disappeared and if your beneficiary is probably a good idea that you at least see what you're entitled to receive from the states you asked that an executor and nascent. Be able to give you that in writing and show you the Porsche in at a minimum the portion that. Well in the trust in your case and will that says how much you inherit much here and there. There may be stipulations there may be a further trust that's been put there sometimes people leave their money and further trust we call them. Pop up trust that they pop up at the moment of that person's death they can get children Strasser an ongoing trust or are real estate trust. And that just basically says that you just don't get all the money at once maybe get a portion our portion. At a certain age and another portion certain danger percentage per year. So there's a lot of different things going on and an attorney can help you with that we have on our office. Mean mig and I didn't have to know how much money you're looking at for the total state and for a year inheritance portion. And they good idea to have a family meeting so. Here your mom hasn't passed away it sounds like so I think it's important as a mom would you be comfortable cause we're not quite sure how your state passes which can be comfortable. I'm getting anybody named in your Weller all of them. Children or grandchildren and everything might be important. In and sit down and kind of talk about the estate who's gonna inherit what who's gonna administered as he exacted her. Anything else wanna talk about funeral arrangements Nnamdi when he cremated or buried. You want what you want your funeral look like what do you want on your tombstone. Was. Very mom your Christian when Bible verses you already here. Funeral what's songs to you what song is there any pasture that you want to speak anybody else you want to speaker you're reading. I think it's a wonderful thing to plan is on invention and truly in my practice one thing anchored my clients to do is read love letters. Two people were important to them. To their spouse to the parents to their child. And if she when we meet on even giving a template to make this so easy I give you things to say in the letter like you were so important to me because. The thing that I will miss the most about you will be. I prayed that when you're gone. When I'm gone you will. I'm sorry. That. That's a big one because it's really hard for people say they're sorry so many times in life. We take this letter he's. Stick it in the estate planning minuses please read in my passing and you leave one for each person is important T I can help you with this. If you need. So you planning and you can talk to the attorney in our office just called the same number are we can help you out 51296085. And two. 968. One to 900. 68 there's a lot that we can help you with in the first meeting is complementary and totally free let's get together let's see if I can help you. Let's see what your situation looks like and then we walked together for the next couple of decades. And help reduce the stress you can maximize your legacy to the next generation and might mess your host of legacy planning with Mike Massey. I don't partners wealth manager and I'd love to sit down with. On 512968512968. 5120968. Advisor services are offered her legacy one financial services LLC. Mike Massey is a wealth manager and partner of legacy one financial advisors advisory services are offered through legacy one financial services LLC. We know Austin traffic can via. Challenged. These continue with time saver drastic mornings and afternoons on talk thirteen 73 right choice.