- And good evening.

You've got More Than Money.

You've got Gene Dickison, your host, your personal financial advisor at your service this evening, helping you in any way that I am able to get you from Point A to Point B in your financial life with a little less fuss, a little less muss, maybe a little less agita along the way.

There's plenty of reasons to have agita these days.

They seem to be around every corner, but there are also pinpoints of light at the end of that tunnel.

There are also reasons that we should be cautiously optimistic.

And of course, we want to get you into that frame of mind where you can enjoy not just your financial life, but enjoy the all of your life.

And, of course, one of the foundation pieces of that is your finances.

And whether it's a question about investments, "Hey, how do I set up my retirement?

"How do I set up my college funding?

"How do I save for my first home?"

Whether it's income tax issues, could be a 401k selection, could be a Roth IRA conversion, it could be, "Do I take a standard deduction or itemize?"

Whether it's an estate planning concern, "Should my kids be on the deed to my house?

"Should I be making gifts now?"

"Should I be concerned about long-term care insurance?"

Or business, starting a business, running a business, liquidating a business, perhaps, or maybe passing it on to the next generation in a way that makes you happy and healthy.

All those are fair game and so much more.

The reason I believe that More Than Money has been such a popular choice among the viewers of PBS, such a go-to, so to speak, is that we are without a doubt the freshest financial show on television.

We answer what is of most concern to you right this moment.

I confess, I think I could put together a pretty interesting show on my own.

But I guarantee you that More Than Money is far more interesting because of you.

Because your questions, your lives are far more interesting than anything that might come out of a dusty old textbook, or even out of one of those national financial magazines.

I think you're far more interesting.

And one of the ways that we're going to prove that to you is to start right now by answering your questions.

If you've got a question for us, send them along, Gene@AskMTM.com.

But in the meantime, enjoy as we discuss some of the concerns your friends and family have right here when we go to our financial correspondent.

Megan, where do we start this evening?

- Hi, Gene.

Our first question tonight says, "I am a divorced 53-year-old lady and inherited "an IRA from my aunt.

"She passed in December of 2020.

"It is currently invested in a Pacific Life annuity.

"In the past 12 months or so, the value has decreased "from $242,000 to $192,111, "with only $10,303 actually being withdrawn.

"Minimum required distributions."

"I am worried at the rapid decline and I'm considering "withdrawing a large portion to pay off an auto loan, "and also invest some in a safe short-term CD.

"At least by paying off my auto loan, I'd have "something tangible to show for this money.

"My question is if I make this withdrawal at a loss, "can I deduct the loss when I file for taxes for 2022?"

This email was sent a little while ago, but... - Goodness.

Well, first of all, inherited IRA.

This is a type of an account that has very specific rules.

One of those rules is that this money has to leave that account within ten years.

You must, either in pieces or in totality, take the balance out of the account within ten years.

Anything that you take out will be taxable.

There will not be a penalty, even if you're not yet 59-and-a-half.

That's one of the interesting wrinkles about an inherited IRA.

Now, having said that, should you take money out of the inherited IRA, pay tax to pay off an auto loan?

The answer is, it depends.

It depends on how large the auto loan is.

It depends on the interest rate on the auto loan.

If the auto loan is relatively small and the interest rate is relatively large, I think it's a good idea.

You'll pay some tax.

We understand that you're going to pay tax at some point.

So, if we can make your life a little simpler by getting rid of a relatively small amount, $10-15,000 auto loan that has a relatively high interest rate, 5-7%, I think that might not be a bad idea, and a first step towards getting you real benefit from this inherited IRA.

Inheriting money, difficult way, often very unhappy way to get money.

We've got to put it to its best use.

Now, one thing that you should be aware of, it's currently in an annuity.

Not an easy thing to say, but in an annuity.

It doesn't have to stay there.

It should stay within the inherited IRA umbrella.

But you have tons of choices.

I mean, literally buckets of choices of how you could invest this money and be much happier than you currently are.

The fact that it has declined to the extent that it has means that it was largely, if not 100% in the stock market.

And, as the market has dropped, so has that account.

Inevitably, it's the nature of the beast, but it doesn't have to stay largely in the stock market, whether it's within Pacific Life, whether it's an exchange to another type of annuity, whether it's leaving the annuity world completely behind and investing in items that are much more appropriate for you personally, you've got lots of choices.

You need to explore your choices.

You need to explore your options and compare them apples to apples to see which one best fits you and your financial goals.

In my opinion, prejudice though it may be, as a financial advisor for a long, long time, some have suggested 780 years.

Hoo, that's a little harsh.

I think I'm hanging on better than that.

Bottom line is, I think sitting with a financial advisor who can walk you through your options across the entire spectrum of options.

Not an annuity salesman, not a real estate salesman, not a stockbroker, but a financial advisor, a true financial advisor, a fiduciary.

Someone who is legally bound to act in your best interest, I think makes a great deal of sense.

You can compare the Pacific Life annuity to other types of annuities, there are many different types and flavors, to other types of investments, all under the umbrella of the inherited IRA, so you're not forced to pull money out and pay taxes when either it's not to your best advantage, you're not happy about doing it, you're not willing to do it.

It's just a, "Hey, this isn't going well.

"I need to get out."

You don't need to get "out" of the Roth IRA.

You may need to get out of the annuity that you're currently invested in.

So, sit with a trusted, experienced financial advisor.

Get all your options, and then, make the choice that's best for you.

Megan, good start.

Excellent start.

Good question, indeed.

What's our second question this evening?

- Our second question says, "My husband and I are thinking "about our retirement and if we are ready for it.

"We don't have a financial planner and recently met "with one at our credit union.

"We meet with him again in a few weeks after he plugs in "our numbers and presents us with our options.

"I heard you on the radio and remembered about MTM, "which is how I got to your website.

"I did read you only work with a certain number of people, "and I'm not sure that you would even work with us.

"My husband basically has three 401s from previous employers, "totaling around $85,000, he would like combined into "one account, and of course, earn money on it.

"He is 62, and honestly, we are not even sure we are "set for him to retire.

"I thought of reaching out to you to get a second opinion of "what we have to do before we do anything."

- Well, that's very kind of you and, as an assurance to you, second opinions in the More Than Money world are free.

We don't charge for second opinions.

There's no cost.

There's no obligation.

There's no pressure.

It's an exploration.

And that's an important place to start, because you mentioned early on that in your email that we don't accept everyone who comes through the More Than Money doors.

And that is true.

And it's odd, some folks are assuming, "Well, they must "only take people with lots and lots of money."

Not true at all.

The real litmus test, the chemistry involved, is such that we only accept clients that, in our opinion, we can reasonably serve, effectively serve benefit for at least 20 years.

And for some of the young folks in the office, they go for 30, maybe 40 years.

I'll stick with 20.

Bottom line is that some types of clients fit us beautifully.

Some types of clients we fit beautifully.

And when those two things match up, it's beautiful.

And if they don't, that doesn't mean that you shouldn't have a financial advisor.

It means that we're not the right financial advisors for you.

You should continue your exploration.

And "exploration" is the right phrase.

You are interviewing financial advisors to see if they are the right ones for you.

And a good, trusted, experienced financial advisor is doing the same thing, interviewing you back to see if there's a good fit.

If there is a good fit, having a professional financial advisor can be fabulous.

And if there isn't, it can be pretty dreadful.

So yes, should you have a second opinion?

The answer is absolutely yes.

Are you available for a More Than Money, absolutely no-charge secondly opinion?

Of course.

I heard you in several different places in your email, though, say something very important, very, very important to you.

"We're not even sure we're ready."

That's a wise place to start.

And one of the things that you might do is use the services of a financial advisor that has the ability to project to a model your retirement.

In the More Than Money world headquarters, that program is called Journey Guide.

It's a proprietary software developed by partners of ours that allows us to put in all of your financial information, and then, all of your expected expenses, all of your dreams and wishes for your retirement, and then, project out and give us a number to tell what percentage of probability of success you might have of living a full, happy retirement and not running out of money, which in most people's minds is the real litmus test of a successful retirement.

Did you make it to the entirety of your life and not run out of money?

A really good goal, by the way.

So, Journey Guide allows you to plug in your numbers, plug in your goals, plug in your budgets, plug in your income and Social Security, etc, and get a really, really good sense of whether you're on the right track or not.

It also allows you, in just moments, to compare different things.

So, your husband is 62 now.

We can do a retirement at 62, and then, compare that to, what if he were to wait until he's 65?

Longer time to save money.

Higher Social Security benefits.

You can compare those side-by-side and come down again to a number.

Are we 95% sure that we can retire without running out of money?

Are we 55% sure?

55 is no more than a coin flip.

95 gives you some real confidence that you will be successful.

So, I think you're on the right track.

I think exploration is really important.

I think second opinion, you're spot on.

You are absolutely looking for exactly the right thing and making sure that you gather all the information you need to make that confident decision.

Retirement is right for me now or not yet.

Very, very good question.

Gene@AskMTM.com allows you to send us your questions.

That's where we got this next one.

Miss Megan?

- Our next question starts off by saying, "As a financial professional myself, I love your show.

"I have a young adult son who is autistic.

"Though he's highly functioning and holds a regular job, "there are some things that he struggles to understand, "and I fear he will never understand.

"I recently became aware that one of those things is the "concept of cash flow, and the timing between earning money "and having it available to spend.

"When I was his age, I purchased everything with cash.

"But his purchases are all online and electronic.

"Even his paycheck is processed via direct deposit.

"He has authorized charges in his credit union checking "account that are available, and occasionally multiple "small charges hits his account before his paycheck does.

"If you add up the overdraft fees, he is being charged.

"It would exceed the highest credit card fees and "interest rates, hundreds upon hundreds of dollars in fees "for relatively small transaction amounts.

"He has no backup savings or credit card.

"As a parent, it breaks my heart to observe this struggle.

"But I know rescuing him is not a kindness, and the absence "of comprehension cannot be solved with money.

"Are you aware of any account type or product that'd simply "reject a charge if there are insufficient funds to cover it, "rather than allowing it and charging $32-39 "per incident fee?

Thank you for your help."

- Thank you for your question, and our prayers go out to you, as they do to any parent struggling to keep their children on the right track.

In this particular case, the word "autism" jumps out.

Goodness, it shouldn't.

Autism touches families far and wide in numbers that none of us could have understood even just a few years ago.

So, it is an issue, no question about it.

Your concern about will he ever be able to grasp the elements, the basic elements of financial cashflow management, is a real one.

But don't believe for a moment that it's restricted to the parents of autistic children, that they have these concerns.

Trust me, 780 years of experience, I have dealt with folks as they approach the age of 60 who still have no clue about cash flow management.

They earn whatever they earn, and they spend more than they earn, and they always have.

So, they're in debt.

They have credit card balances, they have a mortgage, they have a second mortgage, a home equity line of credit.

They have auto loans and student loans at age 60, which I don't know if they're going to get, what, refunds, or not, get rebates under the new plan.

But bottom line is, there are folks not on the spectrum who have exactly the same challenge.

And, yes, do we pray that we can work out a system?

Of course we do.

One of the things that I would encourage you to do is to introduce your son to a program called Financial Peace University.

It is produced by Dave Ramsey.

Dave Ramsey has been around for decades, a financial advisor prominent on TV and radio.

He's out there, and he has put together a program, I think, in my opinion, one of the very, very best at teaching people, whether they're young and on the spectrum, or whether they're 60 and they've simply gotten themselves into real financial difficulties, it is, in my opinion, one of the best training tools to get people grounded, get people to understand, and it can be done in group settings.

Lots of churches sponsor them.

It can be done in Zoom training.

It can be done online at the pace of the student.

And it's very, very inexpensive.

So I would strongly encourage you to, at the very least, expose your son to the opportunity to be educated, for the opportunity to get the fundamentals presented in such a way, and, having gone through the program a number of times, both with friends and with clients, in a very absorbable way, you may find that he has the opportunity to embrace some of these and take real pride in his cash flow management skills.

That may work.

It may not.

One of the things I would suggest, in terms of your immediate problem of so much money being spent on overdraft charges, is to speak to his bank, explain the situation, and see if they can set some sort of limitations that will prevent overdraft charges.

There are a number of banks who have already announced that they will end overdraft charges, either have already ended them, are going to end them in the near future.

You may want to explore a change in banks.

Another option that you may want to explore is to take a relatively small amount of money, relatively, $1-2,000 of your money, and put it in his account as a buffer, as a shock absorption, so that if, for whatever reason, his ability to manage his cash flow does not improve, he's not being drained of his assets because of timing.

Because of timing.

If there were $1-2,000 in there, he always catches up.

"Hey, money went out, I mistimed it, "but the paycheck shows up."

That way, your $1-2,000 should remain intact, basically forever.

And that gives him the opportunity to, again, a little bit of breathing room so he can learn how better to manage his cash flow.

I'm very proud of you for recognizing that the word "rescue" is not an appropriate one here or anywhere.

Parents have gone through tremendous challenges and, in many cases, have attempted to do "the rescue".

It never works.

But assisting is not rescuing.

Training, educating, that's not rescuing.

That's what any responsible parent would do to assist any child with any challenge.

So, hopefully one or a combination of those suggestions will help.

If not, please circle back.

Please circle back, and we'll do whatever we're able to, to assist you in helping your son be the best he can possibly be, which is what every single parent wants for their kids.

Megs, that was a very, very challenging question.

Hopefully the next one you bring to me gives me a little more breathing room.

What do you got next?

- I hope so, too.

I guess we'll find out.

- This email says, "I retired last July at the age of 75, "and I'm still trying to figure out what to do with "my money to make it last.

"I have $278,000 that is still sitting in my 401k plan "at Bank of America, where I worked for 20 years.

"I also have $90,000 in a money market fund.

"My income consists of a pension, Social Security, "and annuity and RMDs from my Merrill Lynch IRAs, "and so far, that is meeting my needs.

"I'm wondering what should I do with the 41k funds and some "of the money market fund?

"Should I put them in a Vanguard index fund?

"I-Bonds?

Merrill Lynch IRA?

Other options?

"Should I move the Merrill Lynch IRAs to Vanguard "to save their fees?

"Thank you very much for your help with my questions."

- That's a lot of questions.

It is a lot of questions, but it's fundamentally one question.

This woman has worked a long, productive career.

She's retired now at 75.

I'm not a big fan of retirement, but her time she chose, and now she's retired.

Her concern is a realistic one, her ability to outlive her money, rather than her money outliving... No, she wants her money to outlive her, rather than vice versa.

She wants to not run out of money.

Currently, she can cover her bills with her distributions.

Her concern is in the future.

Very real concern.

We're at a time of 50-year historically high inflation rates, which means heating her house this winter will be much more expensive.

This means driving to and from wherever she needs to drive to and from is now much more expensive.

Food is much more expensive.

Even if that eases back, and we expect it will over time, over her life expectancy, another 20-plus years, she will need to allow for increasing retirement income to offset the increasing cost of living.

Cost of living, indeed, COLA for short, but cost of living adjustments indeed.

One of the things that will be very useful for her to do is to determine in her own mind kind of when those points of increased income may come.

It may be age 80, 85, 90.

These are often referred to as the Stepladder Effect, where we're at a certain income, let's pick a number, say it's 4,000 a year, at 80, I expect I'll need 5,000 a year.

At 85, 6,000 a year.

And you can invest and make your investment choices to target certain points in time so that your income becomes available when you expect to need it.

We mentioned two questions ago about the program that we use in our office called Journey Guide that allows you to project out your retirement.

You can do tons of what-ifs in just a few moments, of what if I need money at age 80?

What if my home needs to be renovated?

What if I need extra cash flow?

What if?

What if?

And custom tailor this so that your targets, your financial goals become very, very clear.

That's the important first step because once you know what your financial goals are, then you'll know how much rate of return you need to target to get to your financial goals.

So the question about, for example, should I move from one account to the other to save fees?

Maybe.

How would you know?

Well, the important part is the litmus test of how you would know is, what rate of return do I need to get to successfully reach my next goal?

If it's modest, 3-5%, you can do that with guaranteed accounts.

If it's exceptionally large, I need 8-12%, you need to get very, very aggressive and you need to save every dime you can along the way.

It is incredibly important that you take the time first, I know you're anxious to decide how to invest your 401k, it's a lot of money.

You've got other assets, as well, but you've got to do... Don't put the cart before the horse.

Make sure the horse is leading.

And the horse in this case is, what are your financial goals, and when will they come to fruition?

Once you've identified those very, very clearly, and once you've identified perhaps with the assistance of an online software program, perhaps with the assistance of a trusted, experienced financial advisor, perhaps on a do-it-yourself basis, you can project out to see I need 4% a year net after all my expenses to meet my goals.

Piece of cake.

I need 8%, that's a different challenge.

And it's going to be a pretty significant challenge, and one that you'll need to do the next step of homework before you decide you need to explore your options.

So, are there opportunities out there to make a 4% return?

Sure.

6-12?

Of course.

They all come with pros and cons.

Make sure that you explore the ones that are appropriate to you before you make your ultimate decision.

And then, thereafter, you're only 75.

You're very, very young.

Make sure that not only do you set it up correctly, get a good strategy that fits you, but make sure it's monitored either by you or by someone that you trust so that you can make adjustments along the way.

Because I'm here to tell you, about the only financial guarantee I can give you on More Than Money is that things will change, your life will change, things will be different both for you and the investment world, and the world at large.

So, don't think that we can set this once, a set-it-and-forget-it strategy.

It doesn't work that way.

We've got to set it up now using all the intelligence that we currently have available to us, and then, make adjustments along the way.

And if you do that, you'll have a wonderful, wonderful retirement.

Speaking of wonderful, it's wonderful that you spent the evening with us.

Very, very kind of you to share some ideas and some time.

Hopefully you picked up some ideas that may be of use to you.

If you have questions that you want to expand for yourself personally, Gene@AskMTM.com.

Works very, very well.

We'll answer every single question right back to you, and maybe you'll see your question on The Future show.

Folks, thanks for being with us this week.

Hopefully you were encouraged enough that you'll return next week when we're back with More Than Money.

Goodnight.