And good evening.

You've got more than money.

You've got Gene Dickerson, your host.

You've got Megan Smale in the waiting, always bringing us some of the most interesting questions ever.

And obviously special time of the year.

You've got our festive colors.

You got hockey pucks I mean candy canes.

These are fantastic.

The whole idea is to give you that sense, that sense of a very special time of the year, as it is, of course, the reason for the season.

As folks who are wise, we'll say, and we hope that your season is unfolding beautifully, that you're spending lots of time with friends and family and, you're having your heart touched by folks.

Maybe, maybe little ones, maybe babies and toddlers.

Maybe they're your children.

Maybe they're your grandchildren.

But that's what really touches us at this time of the year.

So I. I pray for you.

I pray for your family that you're getting all of that good stuff, all that wonderful stuff.

Yeah.

You get a present here and there.

So what?

Gosh, what do they say?

More blessed to give than to receive.

Once you embrace that a bit, you'll see the wisdom most of you have already seen the wisdom.

So, thank you for spending part of your holiday season with us.

If you're a new viewer or to more than money, there's a couple things that you might want to know.

We are the most relevant financial show on television today.

No matter what day of the week, no matter what station, no matter where you find us in the country, coast to coast or border to border, simply because of you, you send us the most interesting questions.

You send us the most interesting issues that you wish to have raised and, because of that, you make us the most relevant.

Yes, 780 years of experience certainly doesn't hurt you.

Pick up a little wisdom along the way, or at least we certainly hope so, that we can share with you.

780.

Not quite going all the way back to the first Christmas, but close or close indeed.

And sending us those questions.

Jean at ask mtm.com.

That's the email address allows you to reach out to us.

All those questions are answered back to you.

That's absolutely free.

There's no cost.

There's no pressure, no obligation.

It's simply an opportunity for our team of financial advisors to spread some of our knowledge to you and hopefully, hopefully, one of the great gifts that we give, at this time and throughout the year is peace of mind so that you're making confident choices, you're making confident decisions, you're, you're choosing confidently the direction that you wish to go for the new year and far beyond.

So, goodness, let's get right to it.

And, Max, where do we start this evening?

Hi, Gene.

Merry Christmas everybody.

Our first, we kind of a PSA to start off the show.

That has to do with the headline here.

So about financial exploitation schemes that are really targeting seniors.

So it says there are a few that you hear a lot about.

These scams and schemes are often underreported when they succeed because victims feel shame or concern about being deemed less competent and having their autonomy infringed upon.

There are grandparent schemes where scammers either call or email pretending to be grandchildren.

They're in distress, they're in jail, they ran out of gas.

They need money.

There are a lot of romance schemes, particularly among older widows or widowers.

People are lonely and they're looking for companionship, and fraudsters develop relationships with them.

There are a lot of government impersonation scams, people claiming to be from the IRS.

For example, I just got a text this morning.

Purportedly from the DMV, telling me that I had an unpaid parking ticket.

And if I didn't pay by July 9th, through the convenient link, they included my license would be suspended.

These are the kind of scams that are prevalent and more successful with older victims.

What are your thoughts on this?

Jean?

Well, the risk is, Pretending to be an older victim myself.

I understand these real well because of my exposure, my experience, my interaction with so many of you and so many of our more than money clients are indeed seniors.

And sadly, a number of them, small number, fortunately, have been victims of these kinds of, scams, without a doubt.

A couple things that you need to be aware of.

There is no shame in having someone else trick you.

There is no, or.

Gosh, you should have no feelings of personal feelings of shame.

You need, assistance.

This is a complex world.

Most of these kinds of scams are done electronically.

And in many cases involve technology.

It's very, very sophisticated.

So if you have a financial advisor that you trust, if you have a tax advisor you trust, you have a legal advisor you trust, and you bump into one of these things, at least you have someone that you can bounce this off of to see if, wow, does this seem hinky to you?

And, perhaps get some support, prior to making, prior to making a mistake, grandparent scams are very, very prevalent.

Particularly as, in our case, our granddaughter's less than two years old.

So, not we're not getting many phone calls from her, or scammers pretending to be her.

But as they reach teenage years and beyond.

Grandma, grandpa, I need help.

It is often, and particularly with AI now often the case that these impersonators are very, very skilled at, impersonating the person that you love.

One of the recommendations that we have been given recently by some folks who are experts in protecting folks against these types of scams, is a family code word devout?

Develop a code word, one that will only be known by your family.

Grandma, I need your help.

Good.

What's the code word?

Silence.

You know it's not them.

You know it's not them.

So, this government impersonation issue is not just electronic.

This, report mentions the DMV, and they got a, an email, a text saying, hey, you on money?

We recently within the past year, received a form letter from theoretically E-ZPass saying, hey, you missed this one thing.

You owe 11 bucks and the tendency is to say it's a small amount, pay it, get it over with.

The reality was, it was a scam.

So be aware this time of the year, we are all a bit more generous of spirit, perhaps a bit more forgiving, a bit more relaxed perhaps.

And so be very, very cautious.

And again, if you're not the senior, maybe you're the, the next generation, maybe you're a child or grandchildren of a senior.

Make sure that you're sharing as much protection, as much information, and as much support for them as you possibly can, letting them know whatever they may need.

You're there for them.

Speaking of, there for them, can we be there for our next questioner?

Megs?

We definitely can.

Our next email says, I'm still enjoying your show and always listen for questions and answers that might be of interest to me.

I was very happy to hear in a recent MTM show that you can answer questions outside of Pennsylvania.

This one is for my sister.

She married a bit later in life and has one grown daughter and two young granddaughters.

She was widowed last year.

She has very limited income but does own her home.

She would like to make her will so that her daughter would get the house when she's gone.

However, if her daughter should pass, my sister would like the home to go to the granddaughter.

Since the child is underage, my sister is afraid that this would not be possible.

Wondering how can the will be worded to specifically go to the granddaughter?

And is this possible?

Thanks.

Well, thank you very much.

Well.

Maybe I was a little too quick on the.

Thank you very much.

Still enjoying the show.

Have you been expecting that at some point you won't be enjoying the show?

I, that seems a bit harsh.

It seems like my feelings should be hurt, but they're not.

It's that time of the year.

We're very forgiving.

So first of all, thank you for still enjoying the show.

Thank you for asking for your sister.

Our condolences, of course, for her loss.

Understanding that what she wants to accomplish can be done in a number of ways.

Some are simpler than others.

But, in a number of ways.

So, we have a home that we want to make sure goes to the daughter.

And if the daughter has predeceased that, it eventually goes to the granddaughter.

And the answer is pretty simple to do.

Trusted, experienced attorney, no question about it.

You need, one of those in your corner.

If you have an elder law attorney, very often, if we're talking about estate planning and elder law, they go together.

But if you have an elder law attorney, particularly, then you'll have the opportunity to explore all of these options and see which ones fits best.

But I'll give you at least a couple of examples.

One is to create a life estate so that at your passing, your daughter receives the home she has access to, the home.

She can live in the home until she passes.

And at that point, the life estate that she owns disappears.

The granddaughter is is what's referred to in the law as the remainder man and as the remainder of the estate.

This this, asset, this home, goes to the granddaughter.

If you're concerned that all of this might happen before the granddaughter is of age.

First of all, great or, great piece of advice.

Live a good long life that solves all those problems.

Completely.

Hopefully your daughter does the same thing.

Your granddaughter doesn't see this home, and so she's, well up in years herself.

But if that's a concern to you that, hey, this may not happen or someone's health is a suspect, then creating a trust is not a terrible idea.

The trust then owns the home at your passing.

The daughter has access to it at her passing, it goes to the granddaughter.

And if the granddaughter at that point is still a minor, the trustee can manage the home until she reaches the age of majority, whatever that age may be, in whatever state she finds herself in.

One idea that she might consider absolutely would not be my first suggestion, but it's a very common suggestion, particularly among family members and particularly among, amateurs, for lack of a better word, people who are well-meaning but are not very experienced in the idea of a life estate.

They may have never heard of a trust that can go multiple generations.

They may not have heard of that.

They might very well say to your sister, just put the house in your daughter's name.

And that way when she passes, she can put it in her will that it goes to her daughter.

That may solve this question, but it may also cause some real issues, some real negative issues in terms of, income taxes in the future.

It is very important that when you're dealing with a trusted, experienced estate planning, elder law attorney that you outline not just all the things that you want to have accomplished, but make sure that you're sharing all the details about your daughter's situation and your granddaughter's situation as well.

It's very important where we're talking about multiple generations here, that we're looking at the family.

We're not just looking at your sister.

We're not just looking at one generation.

We're looking at the family.

And benefiting the family as as a whole is going to be the objective of, of good counsel, of good advice.

Thanks for still enjoying the show.

Well, maybe I'm being overly optimistic.

We're only halfway through the show, so that could change at any moment.

Meg, where to next?

Well, our next question is also from a fan of the show.

They're definitely seeking your second opinion.

They said, before I ask my question, I want to say how much I enjoy watching the TV program and think Gene is a very caring and sincere person.

A well-meaning friend has sent me info for a three year annuity at 5.25% for the first three years.

I am 84 years old, living on Social Security, with a few annuities of my own in the bank and a cushion of $50,000 in my savings with the bank.

I cannot afford to lose any of my money needlessly.

They are saying how much more I can earn by taking money out of the bank and putting it with this annuity.

Do you think this would be an intelligent move to make?

Thank you for taking time to answer my question.

Well, let's focus on the intelligent answer to this question.

And answer is, intelligently.

It depends.

It depends.

And it depends on a fair number of factors.

First of all, you're very kind.

In, in your introductory words to your question, goodness.

Isn't it amazing that in, in our current world, there's so much goof going on?

Goof is a, it's a sophisticated professional term meaning, that just, gosh, caring about other people and and, and being compassionate is considered to be extraordinary.

It isn't really.

She looked around.

There's lots of us.

So thank you for that.

If you have money in the bank that you don't expect to need for at least three years, this might very well be a good idea.

Very low risk.

And these fixed rate annuities, annuities come in lots of flavors, lots of flavors.

This one is perhaps, perhaps, the least complicated of all the annuity flavors.

You have a sum of money that you commit.

You're committing it for three years.

You're going to get, principal guarantee.

The company guarantees your principal.

So the annuity company, needs to be.

And you need to be assured, is sound, financially strong, certainly able that they can guarantee your principal for the next three years.

And you're confident they will be there to pay you back.

The interest rate is fixed.

It does not vary.

This becomes extremely important at this moment.

Not many moments ago, before we began, producing this particular show for you, the Federal Reserve dropped their interest rates again.

Fixed rate CDs, relatively short term, one and a half, two years.

Just a short while ago, or in the mid fives.

Now they're in the mid threes.

They're likely to go lower.

So if you have money in the bank earning mid threes call it three and a half.

Let's call three and a quarter.

Make it easy math.

And you can go to five and a quarter where they substantial sum of money.

That can be very very positive and impactful indeed.

And we expect over the next three years at that three and a quarter for CDs might very well drop.

We are not psychic.

It's iconic, of course, but not psychic.

And as a result, would that be completely wrong?

Of course it could.

We don't expect so.

So we don't expect it.

Interest rates are going to rise.

We think they're going to continue to kind of glide past lower over the next three years.

So assuming we start at three and a quarter and we're getting five and a quarter, an extra two percentage points, if you had $100,000 in this investment, that's an extra $2,000 a year.

That's real money.

It may very well, by the time this, this annuity matures in three years, that's three and a quarter might be two and a quarter might be one and a quarter.

There's simply no way, to accurately predict at the moment.

But it's far more probable that the gap will be wider, more beneficial to you.

Now, tying up your money, for three years is something you should be very, very thoughtful about.

You should consider.

Do I need these funds?

Will I need these funds?

Between now and then, it is very common.

Very common indeed in these types of annuities that there is a modest escape clause during that three year period.

If you want all your money back, there will be a penalty, a surrender charge, not unusual to be seven, eight, 9%, a lot of money.

So you've got to be clear about your, other assets, your other liquid assets that you can get your hands on, that you can put to good use should they become necessary in this particular case, this particular type of annuity, it is very common to have, a bit of an escape clause.

And the escape clause might very well say something simple like you may withdraw up to 10% of your investment per year with no penalty.

So assuming that this company offers something along those lines, $100,000 goes in the end of the first year, you go, oh gosh, I forgot about my real estate taxes.

It's $8,000.

You can take the 8000 out.

No penalty.

And to the second year.

Oh gosh, I forgot about I have this balloon payment on my car loan.

It's $7,000.

You can take that money out.

There's no penalty.

You get the idea.

There is always, That's not true.

There is nearly always an escape clause for, medical reasons.

Gosh, a diagnosis, maybe for disability, maybe for long term care issues.

So, many very high quality annuity companies offer these kinds of flexibility, these kinds of options, where you can get access to your money, without, being pinched, so to speak.

So make sure that whatever annuity company you look at gives you the kind of flexibility that you might need.

Now, it may very well come down to the fact that you need 100% flexibility.

I need this this money I have put away for an emergency, an unexpected emergency, and by its very definition, you can't expect an unexpected emergency.

So having the money illiquid, even though it may earn a far lower interest rate, is in this case, that case a far more important characteristic.

So, make sure that you're getting, all the information you need, the pros and the cons.

Consider getting a second opinion.

Take the information from the the bank, the salesman, whomever is trying to, what, in, in have you invest in this particular annuity and speak to someone who's not connected to that organization and see if you're getting a, a a similar, positive response.

So if you found all those things, I know it's rather long winded for what's apparently a fairly short question, but it it isn't.

Actually, we didn't cover all of the details.

So if you're dealing with a professional, someone who is a fiduciary put your best interests at heart.

They will have all those questions for you and lots more to make sure that whatever you do, whatever choice you make, it's what's best for you.

Thanks for the question.

Thanks for the kind words and we hope we helped a little bit.

And Merry Christmas, Merry Christmas Max.

Fantastic.

Fantastic.

Where to next?

Our next question says, I continue to be puzzled by all this cryptocurrency craze.

Just what is the intrinsic value behind the coins?

It seems the only thing driving it is the hope that someone will buy them for more than you paid.

The greater fool wondering can this end badly?

Jean?

Goodness, yes.

Basically, all investments can end badly.

All investments can have badly.

Literally yards away from where I'm standing, formerly was one of America's most prosperous, most successful, most impactful, particularly in a historic sense, most impactful companies ever in the history of America.

Bethlehem Steel, thousands, tens of thousands of folks throughout our region worked there, made their living there, made their fortunes, their, secured their retirements there.

And then it was gone.

That can go away.

And that had substantial assets, substantial history of productivity and yet gone.

A company many years ago, Enron at one point thought to be the sixth largest in the country, got lots of examples of investments going to be blunt, horribly wrong.

Exist throughout the history of investing.

So is it possible that cryptocurrency Bitcoin is one example?

But is it possible that bitcoin or cryptocurrency as a as a gestalt, as a big sector of an investment, platform could go to zero?

The answer?

Sure.

Over the last few weeks and again, where when we put these shows together, we're a little bit in advance.

So we're actually time traveling.

You're seeing this a couple of weeks from now.

But in the last few weeks, crypto Bitcoin in particular, had topped out at about 120,000 a coin and dropped as low as 81,000.

The coin that's losing over 30% of its value in a matter of days.

Now, did it go to zero?

The answer is no.

And did it bounce back a bit?

It has so far.

Is it possible it goes to zero or is it likely?

In my opinion, at this moment it does not appear likely.

No.

What's behind cryptocurrency?

Absolutely nothing.

Absolutely nothing.

Bitcoin was invented, created, almost diabolically, by an unknown individual who just simply said, hey, I'm not sure I trust the dollar, the yen, the one, the ruble, the euro.

I'm not sure I trust it.

Why don't we just set up our own currency?

Kind of outside of, all this government regulation.

And as a result, off it went.

Now, most of you have heard of Bitcoin.

Of course, lots of you have heard of a Etherium and several others.

Many of you are unaware, that there are thousands of cryptocurrencies, thousands, admittedly Bitcoin, Ethereum, some of them more popular or well-recognized names, represent the huge majority.

But thousands of crypto currencies have been issued.

Many of them have gone to zero.

So if you happen to pick the wrong cryptocurrency, you're already at zero.

But in a and in the bigger picture, is this an arena that's likely to go to zero?

The answer is no.

Is there any real value behind it?

The answer is no.

If you buy stock at Apple they own, intellectual capital.

They have assets.

They have real estate.

There's lots behind the stock of a particular company.

There's nothing electrons are behind these cryptocurrencies.

So my opinion, not something that most of you should be excited about.

But if you are, make sure that you get a second opinion from an advisor you trust.

Max, do we have a short one back there?

We do.

Our last one says, what are your thoughts on moving my money from a work for hundred one K to mutual funds?

Class A shares with a 5% front load sales charge.

Just trying to determine if it is worth the one time sales charge, or keeping it where it is in the 401 K in different funds.

Thanks.

Please don't do this.

This is a, Gosh, this is almost a a dinosaur in the financial industry.

Mutual funds have been around for, gosh, over 100 years.

Initially, this is exactly how they were sold.

You paid a 5% fee up front.

You invest $100, you lost $5 instantly.

You invest $1,000, you lost $50, you invest 100,000.

You lost 5000 bucks right off the bat.

And in order to turn a profit, you had to go, earn back the fee that the company has already taken.

And and and absconded rather just moved off with, and in order to get a positive return, you've got to get a 6% return to get back to zero.

These have not been useful in most cases for decades.

Most investments today, similar to the mutual fund platform that you're you're discussing now charge no upfront commission.

Relatively low annual management fees.

You're for 1KI would strongly suspect has a lineup that has a no upfront cost and fairly low annual fees.

If you're not 100% sure a financial advisor can absolutely do that analysis for you, tell you exactly what you're paying.

For one K plans are supposed to provide that to you every single year.

Some folks miss that, but you can get an advisor.

Look at that and in very short order give you a very clear idea of, exactly what you're paying.

Do not pay 5% upfront.

Do not pay that kind of commission.

There are too many high quality of likely profitable investments that can be had for far, far less cost.

Speaking of less cost, gosh, there's no, there's no cost involved in wishing you the the spirit of the season, a merry Christmas.

And, as it's coming up, happy New year.

There's there's no cost to wishing, all of us, the entire country and, and beyond, a better time, a better, interaction, a better way joining of our of our minds and our hearts.

So I wish all of that for you.

I want to thank you.

Thank you for spending part of your evening with us during this festive season.

Maybe you're singing a little bit later.

That's okay.

You can pick this up off the website.

That's fantastic.

If you have questions for us going forward, send them to us.

Jean at ask mtm.com.

Maybe you'll see that question on a future show, but you'll definitely see me next week when I'm right back here for another edition for you of more than mine.

Merry Christmas.