Latest / Money In Motion with Klaas Financial / Tracking Your Finances and Minimizing Debt

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Tracking Your Finances and Minimizing Debt · Money In Motion with Klaas Financial

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Speaker 1: Our retirement planning professionals from Class Financial love to have
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Speaker 1: you join us this week. Don't forget. You can learn
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Speaker 1: more about Class Financial on their website. It's a good one.
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Speaker 1: Class Financial dot com. That's coss klaas financial dot com.
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Speaker 1: Great place to learn about Class Financial. There's separate divisions.
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Speaker 1: Also an opportunity there to sign up for the weekly
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Speaker 1: Market Pulse newsletter. I mean that available at clssfinancial dot com.
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Speaker 1: They're telephone number six O eight four four two five
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Speaker 1: six three seven no charge for that initial gets to
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Speaker 1: know you appoyment at Class Financial. It will be complementary
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Speaker 1: to you. Join this week by Eric Schwartz and Kyle
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Speaker 1: Kite of Class Financial. Eric, how you doing this morning?
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Speaker 2: I'm doing great, Sean, how are you doing today?
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Speaker 1: And fantastic see you gets go first this week.
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Speaker 3: I know brand new.
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Speaker 1: Yeah, great to have you. Kyle, how have you been.
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Speaker 3: I've been doing good. Sean.
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Speaker 1: It's good to talk with both of you. And we've
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Speaker 1: got such a great topic as always, UH kind of
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Speaker 1: a very real topic as well. We're gonna be talking
0:54
Speaker 1: about financial behavior and UH and what what that does
0:58
Speaker 1: when it comes to UH, when it comes to your
1:00
Speaker 1: retirement outcome. We're going to get all the details from
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Speaker 1: Kyle and Eric this morning with money in Motion by
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Speaker 1: Class Financial again the website classfinancial dot com. That's Class
1:08
Speaker 1: klaas financial dot com. So much great stuff. Also win
1:12
Speaker 1: the program another great thing as an opportunity to win
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Speaker 1: a fantastic prize this week, have chance to win a
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Speaker 1: twenty five dollars gift card to Sephora with the class
1:20
Speaker 1: Quiz question of the week. Little tip if you listen
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Speaker 1: closely to the program, it's about every show the question
1:24
Speaker 1: and answer to the class quiz questionally comes up during
1:27
Speaker 1: the show. I'll tell you a little bit later on
1:29
Speaker 1: in the half hour about how you can win that
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Speaker 1: twenty five dollars gift card to Savora. And speaking up
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Speaker 1: the class quiz question a week before we start this
1:36
Speaker 1: week's topic, let's actually roll back and take a look
1:39
Speaker 1: at last week's show and get the question and answer
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Speaker 1: there as well. Eric.
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Speaker 2: Yes, so thank you to everybody for listening, and especially
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Speaker 2: Kathy from Madison, who was our winner last week. The
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Speaker 2: question was true or false. Jim Anderson did the research
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Speaker 2: to support the four percent spending role that was first
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Speaker 2: published in the Journal of Financial Planning in Night octomer
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Speaker 2: Over of nineteen ninety four. The answer is actually false.
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Speaker 2: That research was completed by Bill Benjin.
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Speaker 1: Yes, and that was that was I was. I was
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Speaker 1: reading that one last week. I often kind of giggle
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Speaker 1: a little bit as I'm reading some of them because
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Speaker 1: some are like, oh, these are these are great. I
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Speaker 1: loved the kind of the little little, uh, little trick
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Speaker 1: kind of there as well. Yeah, it was a hard one.
2:19
Speaker 1: It was hard. It was great work uh this past
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Speaker 1: week as well. Don't forget we'll have a chance for
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Speaker 1: you to win another another another gift card. Again with
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Speaker 1: congratulations to Kathy from Madison with with last week's winterest.
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Speaker 1: You can be like Kathy as well. So you know
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Speaker 1: today's topic, it's it's a real one. We're talking about
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Speaker 1: something that a lot of people don't always think about,
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Speaker 1: which is kind of their financial behavior kind of how
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Speaker 1: you behave on a day in and day out basis.
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Speaker 1: It actually matters more when it comes to your retirement
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Speaker 1: outcome than markets. And I think a lot of people
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Speaker 1: are are pretty supply surprised by that. Kyle, let's dig
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Speaker 1: into this explain.
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Speaker 3: Yeah, it's true, Sean, obviously none of us can control
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Speaker 3: the stock market and Marcus can fluctuate all the time,
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Speaker 3: and obviously long term growth is important. It's the decisions
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Speaker 3: that you make on a day to day, month to
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Speaker 3: month type of basis that really really impact this even more.
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Speaker 3: And what I mean by that is what's your savings
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Speaker 3: rate and how much debt do you carry and how
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Speaker 3: do you spend your money? Right, All those little decisions
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Speaker 3: add up to giving you more flexibility to be able
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Speaker 3: to put more away, or just flexibility in general, which
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Speaker 3: is what you want. So all those little decisions are
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Speaker 3: what truly shape your financial trajectory. Most people don't just
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Speaker 3: wake up at sixty five years old and have a
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Speaker 3: couple million bucks, right. It was strategic planning over years
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Speaker 3: and years of good decisions, because, for example, somebody who
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Speaker 3: consistently been percent of their income for over those thirty
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Speaker 3: years are likely to be far better off than somebody
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Speaker 3: who just chases hot stocks and doesn't have a saving strategy.
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Speaker 2: Right.
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Speaker 3: Some people say they're just trying to hit the lottery, right,
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Speaker 3: find the next Nvidia or Google or whatever it is.
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Speaker 3: But honestly, that's not the way that most people work
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Speaker 3: as far as being successful when it comes to this
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Speaker 3: kind of stuff. So you know, we like to say
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Speaker 3: that your habits built your retirement account more than any
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Speaker 3: bullmarket ever could. The average person isn't losing retirement security
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Speaker 3: because of market volatility. They're losing it because they didn't budget,
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Speaker 3: didn't play in, or spend too much.
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Speaker 1: That is, as the kids say, that's keeping it real
4:14
Speaker 1: right there for sure this morning, as we talked this
4:17
Speaker 1: morning with Kyle Kite and Eric Schwartz of Class Financial,
4:20
Speaker 1: great advice and guidance this morning, as always from our
4:23
Speaker 1: retirement planning professionals from Class Financially. If you've got a question,
4:26
Speaker 1: love to have to join us this morning. Six SO
4:27
Speaker 1: eight three two one thirteen ten. That's six SO eight
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Speaker 1: three two one thirteen ten. The website costs financial dot com.
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Speaker 1: That's coss Klaasfinancial dot com and they're telephone number six
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Speaker 1: SO eight four four two five six three seven. No
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Speaker 1: charge for the initial get to know you aployment at
4:42
Speaker 1: Colass Financial. It will be complimentary to you. Let's talk
4:46
Speaker 1: about budgeting Eric, and a little bit about spending as well.
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Speaker 1: These are really important behaviors and really important kind of
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Speaker 1: to our foundation of who we are, aren't They absolutely?
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Speaker 2: And I think we may need to just check in
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Speaker 2: real quick and see if the kids are still saying that.
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Speaker 1: But you know that the kids in their thirties and forties,
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Speaker 1: But yeah.
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Speaker 2: Exactly, exactly. Well, yeah, so your your budget. That's that's
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Speaker 2: kind of your blue your blueprint. And I've heard some
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Speaker 2: people call this instead of a budget, they'll call it
5:14
Speaker 2: like a spending plan. It sounds a little bit more.
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Speaker 2: I don't know, we can fool ourselves. It sounds better
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Speaker 2: to call it a spending plan, and it doesn't feel
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Speaker 2: like we're depriving ourselves of things. But you know, if
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Speaker 2: you don't, if you really don't know where your money's going,
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Speaker 2: how are you going to be able to control it?
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Speaker 3: Right?
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Speaker 2: A really simple example, tracking your expenses for thirty days.
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Speaker 2: It often surprises people when they actually look and say, oh, man,
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Speaker 2: I'm spending a lot of money going out to eat
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Speaker 2: or or you know, going out shopping or whatever it
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Speaker 2: might be. And they'll discover, wow, there's hundreds of dollars
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Speaker 2: going towards towards that, or or they'll say wow, those
5:49
Speaker 2: streaming services really really add up because you don't really
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Speaker 2: think about it in the moment, but over time they
5:54
Speaker 2: really can can become an issue for you. And every
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Speaker 2: dollar that you're over spending today is a dollar that
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Speaker 2: you're taking from your future self. So good spending habits
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Speaker 2: are kind of like muscles. You strengthen them over time,
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Speaker 2: and when you learn to live below your means, you
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Speaker 2: can create the margin to save and invest. And the
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Speaker 2: other great thing is when you retired, you have less
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Speaker 2: money to replace if you are living on less. And remember,
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Speaker 2: budgeting isn't about deprivation. I mentioned that here just a
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Speaker 2: moment ago. It's just about being intentional. You're telling your
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Speaker 2: money where to go instead of wondering where it went.
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Speaker 1: Like that perspective for sure. Talking this morning with Eric
6:32
Speaker 1: Swartz and Kyle Kite, our retirement planning professionals from Class Financial,
6:35
Speaker 1: don't forget if you miss any part of today's program,
6:37
Speaker 1: you can always listen back at cossfinancial dot com. That's
6:40
Speaker 1: Coss k l a A S Financial dot com. So
6:43
Speaker 1: as we then kind of break down in getting into
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Speaker 1: some of the other areas like savings and investing, how
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Speaker 1: do we kind of build that? I think some of
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Speaker 1: this stuff, Eric is kind of easier said than done.
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Speaker 1: How do we actually start getting into that discipline?
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Speaker 2: It is much easier said than done. And that's for
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Speaker 2: us why it always comes down to your behaviors, right,
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Speaker 2: We can't life's busy. Things happen, you know, life happens.
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Speaker 2: We can't expect ourselves to always be super disciplined and
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Speaker 2: make all of the right, right, hard decisions in the moment.
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Speaker 2: So what you have to do is is basically make
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Speaker 2: it hard for yourself to to not follow the budget.
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Speaker 2: So start by paying yourself first. We've always we've all
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Speaker 2: heard this adage. So before any bills are spending set
7:28
Speaker 2: aside money for your retirement, make them automatic contributions to
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Speaker 2: your four oh one K or your I RA or
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Speaker 2: just even if it's moving money from your checking to
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Speaker 2: your savings every month, make it automatic, make it right away,
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Speaker 2: and don't don't count on yourself to actually do that
7:44
Speaker 2: at the end of the month. Stay consistent regardless of
7:47
Speaker 2: market conditions. Okay, so let's say you're investing during a downturn.
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Speaker 2: Those contributions you're putting in, they can feel like, gosh,
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Speaker 2: I'm just throwing this money away, but really what you're
7:56
Speaker 2: doing is you're buying more shares at lower prices, which
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Speaker 2: is really good for your long term growth. And remember
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Speaker 2: it is about time in the market, not timing the market.
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Speaker 2: So it's not about choosing the perfect time to get
8:08
Speaker 2: those dollars in there, it's about making sure they're in
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Speaker 2: there for longer. And also keep in mind that you
8:14
Speaker 2: should match your investment choices to your risk tolerances in goals.
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Speaker 2: We've talked about this on a show before. For example,
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Speaker 2: a twenty five year old saving for retirement is going
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Speaker 2: to have a much different strategy than someone who's five
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Speaker 2: years out from retirement. So the key is having a plan,
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Speaker 2: sticking to it through ups and downs. And one thing
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Speaker 2: we rarely hear from clients is that they save too
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Speaker 2: much for their retirement. So if anything we hear they
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Speaker 2: we hear them say they wish they would have started earlier.
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Speaker 1: That's it's great perspective and great insight this morning as
8:43
Speaker 1: we talked with our retirement planning professionals from Coss Financial,
8:46
Speaker 1: Eric Schwartz and Kyle Kites. Of course, you can learn
8:48
Speaker 1: more about Eric, Kyle and the whole team at COSS
8:50
Speaker 1: Financial online Cossfinancial dot com. That's cost Klaasfinancial dot com.
8:56
Speaker 1: They're telephone number six so eight four four two five
8:58
Speaker 1: six three seven charge for that initial gets to know
9:01
Speaker 1: your appointment ach Colss Financial. It will be complimentary to
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Speaker 1: you again. Their number six oh eight four four two
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Speaker 1: five six three seven. Phone lines are open as well.
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Speaker 1: If you've got a question, love to have you join
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Speaker 1: us is more on six so eight three two one
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Speaker 1: thirteen ten. That's six soh eight three two one thirteen ten.
9:15
Speaker 1: We'll continue our conversation with Eric and Kyle and take
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Speaker 1: your call next as Money in Motion with Class Financial
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Speaker 1: continues right here on thirteen ten WIBI talking with our
9:24
Speaker 1: retirement planning professionals from Class Financial, Eric Schwartz and Kyle Kite.
9:28
Speaker 1: Of course, you can get to know Eric and everyone
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Speaker 1: and client Kyle as well, and everyone else at Clause
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Speaker 1: Financial on their website clausfinancial dot com. That's Class k
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Speaker 1: l aas financial dot com. Great website is eventually gets
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Speaker 1: to know the team. Of course, you can also learn
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Speaker 1: a little bit more about the separate divisions at cous
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Speaker 1: Financial how they can help you or if you're an employer,
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Speaker 1: some great options and information up at lasfinancial dot com.
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Speaker 1: definitely want to subscribe. At cossfinancial dot com, they're tell
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Speaker 1: forh number six so eight four four two five six
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Speaker 1: three seven, no charge for that initial get to know
10:11
Speaker 1: your appointment deck Laws Financial, it will be complimentary to
10:14
Speaker 1: you again. They're number six oh eight four four two
10:16
Speaker 1: five six three seven talking about the importance of savings
10:20
Speaker 1: this week and putting money away and of course having
10:24
Speaker 1: systems in place. And and Kyle, I know, one of
10:27
Speaker 1: the areas we talk about on the show quite a
10:29
Speaker 1: bit is reducing or avoiding debt. And let's talk about
10:32
Speaker 1: some of these smart behaviors we should be using when
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Speaker 1: it comes to this area.
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Speaker 3: Yeah, absolutely, Sean. You know, we kind of feel like
10:41
Speaker 3: a broken record because we're always harping on debt and
10:43
Speaker 3: this kind of stuff. But it's because debt is a
10:46
Speaker 3: guaranteed headwind that you're working against. What I mean by
10:50
Speaker 3: that is every month when you're paying those interest payments.
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Speaker 3: That interest is working against you instead of for you.
10:56
Speaker 3: So if you can avoid the debt, then obviously you
10:58
Speaker 3: could invest that money instead and earn interest instead of
11:01
Speaker 3: paying interest. So it's very, very key to keep an
11:05
Speaker 3: eye on your debt. Everybody's going to have debt at
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Speaker 3: some point, and we'll talk about kinds of debt that
11:10
Speaker 3: aren't as bad as others and things like that. There's
11:12
Speaker 3: some interesting stats out there. So currently in twenty twenty five,
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Speaker 3: the average American owes about one hundred and five thousand
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Speaker 3: dollars and one hundred and five and fifty one hundred
11:22
Speaker 3: five thousand and fifty six dollars across mortgage loans, home
11:25
Speaker 3: equity lines, your credit, auto loans, credit card debt, student
11:28
Speaker 3: loan debt, and other debts like personal loans and that
11:31
Speaker 3: kind of stuff. So again, over one hundred and five
11:33
Speaker 3: thousand dollars is what the average American has in debt
11:36
Speaker 3: right now, and what kind of debt matters big time, right, So,
11:40
Speaker 3: high interest debt, especially credit cards, can it rode well
11:43
Speaker 3: faster than any poor investment decision. And the reason that
11:47
Speaker 3: is is because of obviously the interest rate. Right, So
11:49
Speaker 3: a five thousand dollars balance on it that you carry
11:51
Speaker 3: on a credit card. Charging you eighteen percent is going
11:54
Speaker 3: to cost you thousands of dollars over time if all
11:57
Speaker 3: you make is those minimum payments. And Eric and I'll
12:00
Speaker 3: tell you it's very hard to find an investment that's
12:02
Speaker 3: going to consistently make eighteen percent, Whereas when you're paying
12:06
Speaker 3: eighteen percent interest, that's exactly what you're doing. You're just
12:08
Speaker 3: costing yourself at eighteen percent every single year. So to
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Speaker 3: credit itself isn't bad, it's how you use it. So
12:15
Speaker 3: if you use it properly, it builds your credit score,
12:18
Speaker 3: which obviously helps you with premiums, refinancing a mortgage in
12:21
Speaker 3: the future, or qualifying for better terms if you were
12:23
Speaker 3: to need a loan for something. But it's crucial to
12:26
Speaker 3: keep balances low and pay them in full every month,
12:30
Speaker 3: and especially don't fall for those now pay later traps.
12:33
Speaker 3: You know, this was a big thing, especially during COVID.
12:35
Speaker 3: Everybody was zero percent buy now, pay later kind of stuff.
12:38
Speaker 3: Those things can be a good tool if you use
12:41
Speaker 3: them properly, but you got to be very, very careful
12:44
Speaker 3: because a lot of those have it's zero percent for
12:46
Speaker 3: a set number of months. And then if you don't
12:48
Speaker 3: pay it off within that twelve or twenty four months,
12:51
Speaker 3: whatever it ends up being, then they just throw all
12:53
Speaker 3: that interest back on top of it. So you didn't
12:55
Speaker 3: do yourselfs any favor. And it may seem convenient, but
12:59
Speaker 3: they often lead to overspending because again, if it's only
13:02
Speaker 3: fifty bucks a month or one hundred bucks a month
13:03
Speaker 3: for twelve months, it doesn't feel as bad as writing
13:06
Speaker 3: that check for the thousand or twelve hundred bucks whatever
13:08
Speaker 3: it ends up being. And so that's why we are
13:10
Speaker 3: so you know, again, a lot of debt is because
13:13
Speaker 3: the freedom in retirement comes from avoiding debt payments. So
13:16
Speaker 3: when you don't have to make that money go out
13:18
Speaker 3: every single month to meet those debt payments, you just
13:21
Speaker 3: have so much more flexibility.
13:23
Speaker 1: So Kyle is a is you know, we talk about
13:25
Speaker 1: some habits. Let's talk about kind of the other side
13:27
Speaker 1: of that, which is setting goals and part I guess
13:30
Speaker 1: part of that not the other side, but part of
13:32
Speaker 1: those habits is setting goals. That's pretty impactful. Let's talk
13:35
Speaker 1: about why that is.
13:37
Speaker 3: Yeah, So the idea here is to take your goals
13:40
Speaker 3: and then obviously turn them into an action right, because
13:43
Speaker 3: they give you purpose for what you're doing. And you know,
13:46
Speaker 3: especially when we're talking about budgeting and saving and that
13:48
Speaker 3: kind of stuff, you have to know what you're saving
13:50
Speaker 3: for and what you're working towards, so you know, you've
13:53
Speaker 3: got to give your purpose to those to the money
13:55
Speaker 3: that you're saving. So, whether that's retiring at sixty two,
13:58
Speaker 3: or maybe you're saving up for a back at home,
14:00
Speaker 3: or you want to take a big travel a trip
14:02
Speaker 3: in retirement, whatever it needs to do, you need a
14:05
Speaker 3: plan to get there. So just saying, oh, I want
14:07
Speaker 3: to retire someday isn't very helpful at all, right, because
14:10
Speaker 3: what does that look like? If you say I want
14:13
Speaker 3: to retire with whatever the number is dollars by the
14:16
Speaker 3: age of sixty five, that's something that you can put
14:18
Speaker 3: a plan and start working towards. You got to know
14:21
Speaker 3: what you're working towards for that finish line and then
14:24
Speaker 3: review them regularly. Just is just as important because things change.
14:27
Speaker 3: You know, your plan should change when your life changes.
14:30
Speaker 3: You maybe have a kid, or you've changed careers, or
14:33
Speaker 3: got an inheritance or something like that. Those are all
14:36
Speaker 3: moving pieces that could change that plan that you were
14:39
Speaker 3: working towards. And this is why it is so important
14:41
Speaker 3: to have a financial advisor that you can regularly check
14:44
Speaker 3: in and run these ideas by. And then behavior wise
14:47
Speaker 3: writing down your goals and tracking progress increases follow through dramatically,
14:52
Speaker 3: very intentional. Like we said earlier on not only you
14:55
Speaker 3: know what you're doing with your money, but also writing
14:56
Speaker 3: down those goals, it's a win for your mindset to
15:00
Speaker 3: because then it just puts it into perspective of this
15:02
Speaker 3: is what I'm working towards, and this is what I'm
15:04
Speaker 3: trying to accomplish.
15:05
Speaker 1: Really great tips and guidance and advice. This warning from
15:07
Speaker 1: our retirement fanning professionals from Class Financial talking this week
15:10
Speaker 1: with Kyle Kite and Eric Schwartz, of course has mentioned
15:13
Speaker 1: they come to us from Class Financially. We can learn
15:14
Speaker 1: more online Class financial dot com. That's Class k l
15:17
Speaker 1: a A S Financial dot com. They're telling for number six.
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Speaker 1: So eight four four two five six three seven. So Eric,
15:24
Speaker 1: let's talk about then protecting your progress and we talk
15:27
Speaker 1: about the term smart risk management. What exactly does that
15:31
Speaker 1: does that look like?
15:33
Speaker 2: Yeah, it's a great question. H First of all, I
15:36
Speaker 2: just got to say I can't believe CJ. Is missing
15:37
Speaker 2: the show this night. We're talking all about eliminating debt.
15:40
Speaker 2: This is his favorite subject.
15:42
Speaker 1: I have a feeling, I have a feeling. Eric. He
15:44
Speaker 1: is listening on the radio, pacing back and forth, dwaning
15:47
Speaker 1: so bad. Look I just sitting there.
15:51
Speaker 2: Yeah, that'd be good, CJ. If you're listening, give us
15:54
Speaker 2: a call. But Lakey said, John, let's let's talk about
15:58
Speaker 2: protecting that progress. So at a very basic level, we
16:02
Speaker 2: want to start with an emergency fund, and that's three
16:05
Speaker 2: to six months of essential expenses, and that's something we
16:08
Speaker 2: would want you to keep in like a high yield
16:10
Speaker 2: savings account. We want you to get some interest on
16:13
Speaker 2: that if possible, because hopefully it's going to be sitting
16:15
Speaker 2: there for a long time. But really what it's doing
16:18
Speaker 2: is preventing you from going into debt when life does
16:20
Speaker 2: throw you a curveball, right, So, whether that's a job loss,
16:23
Speaker 2: a medical bill, a car repair, we want you to
16:26
Speaker 2: up somewhere you can go so that you don't have
16:28
Speaker 2: to go into debt in order to pay for that
16:31
Speaker 2: short that will expense on short notice. And then beyond that,
16:35
Speaker 2: this is kind of getting into another area, but we
16:38
Speaker 2: want to be thinking about insurance as well, so health insurance,
16:41
Speaker 2: life insurance, umbrella, long term care insurance. These are all
16:45
Speaker 2: financial tools designed to protect your income, protect your family,
16:49
Speaker 2: and protect your retirement. So being under insured can turn
16:52
Speaker 2: a minor set back into a financial crisis, and that's
16:55
Speaker 2: another great way to making sure you're properly insured is
16:59
Speaker 2: another great way to make sure that you're protecting the
17:01
Speaker 2: progress you're making.
17:02
Speaker 1: We talk this morning with our retirement planning professionals, Eric
17:05
Speaker 1: Schwartz and Kyle Kite. Don't forget can learn more about
17:07
Speaker 1: Class Financial their website class financial dot com. That's Class
17:10
Speaker 1: k l a A s Financial dot com and their
17:13
Speaker 1: telep number four four two five six three seven. No
17:16
Speaker 1: charge for that initial get to know you appointment tech
17:18
Speaker 1: Class Financial. It will be complementary to you again their
17:21
Speaker 1: number four four two five six three seven. We'll kind
17:24
Speaker 1: of get some final thoughts from Eric and Kyle will
17:26
Speaker 1: head on over to the money Me and Motion listener
17:28
Speaker 1: question corner and the Class quiz question weak. All of that,
17:31
Speaker 1: we've got an action packed final segment next year on
17:34
Speaker 1: thirteen ten wiv A. Talking this morning with our retirement
17:37
Speaker 1: planning professionals, Eric Schwartz and Kyle kite. Of course they
17:40
Speaker 1: come to us from Class Financial to website Class financial
17:43
Speaker 1: dot com. That's Class k l A A S Financial
17:46
Speaker 1: dot Com. Telph number six O eight four four two
17:49
Speaker 1: five six three seven. No charge for that initial gets
17:52
Speaker 1: to know your appointment Tech Laws Financial. It will be
17:54
Speaker 1: complementary to you again their number six oh eight four
17:57
Speaker 1: four two five six three seven. Talking this week of
18:00
Speaker 1: out the importance of developing good savings and planning habits
18:04
Speaker 1: and to kind of take things down the home stretch.
18:06
Speaker 1: Eric some final thoughts, and let's talk about why folks
18:10
Speaker 1: should be focusing in on their behavior and they should
18:13
Speaker 1: start today, shouldn't they?
18:16
Speaker 2: They should. I know that the topics we're talking about
18:18
Speaker 2: today aren't necessarily the most fun things to do, you know,
18:22
Speaker 2: being really disciplined about your spending and your savings. It's
18:25
Speaker 2: not the exciting stuff. But you make financial choices every day,
18:29
Speaker 2: and those choices are going to shape your future. You
18:32
Speaker 2: don't wait for the perfect job, the perfect stock market,
18:36
Speaker 2: mostly because you don't know when that's going to come
18:37
Speaker 2: or go. Just start practicing smart behaviors right away, budgeting, saving, investing,
18:43
Speaker 2: managing your debt, planning. Just get started the sooner the better.
18:49
Speaker 2: Your retirement is not just built on numbers. It's built
18:52
Speaker 2: on these habits that you're actually developing right now. And
18:54
Speaker 2: the sooner you take control of those habits, the more
18:57
Speaker 2: freedom you're going to have down the road.
18:59
Speaker 1: Really great guy this morning from Eric Schwartz and Kyle Kite,
19:01
Speaker 1: our retirement planning professionals from Class Financial. The website colssfinancial
19:05
Speaker 1: dot com. That's Coss Klaas Financial dot com. Great opportunity
19:09
Speaker 1: there to get to know the team at COSS Financial.
19:11
Speaker 1: Also sign up for the weekly Market Pulse newsletter. You
19:13
Speaker 1: can also email the show if you've got a question
19:16
Speaker 1: with the Money in Motion Listener Question corner, and Jennifer
19:19
Speaker 1: writes in this week she says, I just received an
19:21
Speaker 1: inheritance and I'm about three years away from retirement. Should
19:25
Speaker 1: I use that money to pay down debt or should
19:28
Speaker 1: I invest it for the future? What are your thoughts?
19:30
Speaker 1: And Kyle will send this one over to you.
19:33
Speaker 3: Yeah, first of all, Jennifer, sorry for your loss. Of course,
19:36
Speaker 3: losing someone's never easy, but you're you're asking a great question,
19:41
Speaker 3: And first it depends on what kind of debt we're carrying.
19:43
Speaker 3: So I kind of talked about this just in this
19:45
Speaker 3: last segment here. But if it's high interest debt like
19:47
Speaker 3: credit cards or maybe a personal loan, that's usually the
19:51
Speaker 3: first target that we would say to knock that out
19:53
Speaker 3: again because paying off that seventeen or eighteen percent interest
19:57
Speaker 3: is like percent guaranteed return, and like I said before,
20:01
Speaker 3: you just don't find that in the market on a
20:02
Speaker 3: regular basis, So that would be the number one thing.
20:05
Speaker 3: But if it's something a little different, maybe you were
20:08
Speaker 3: able to take advantage of those low mortgage rates we
20:10
Speaker 3: had a few years back, and you locked in a
20:12
Speaker 3: two or three percent interest rate, you might consider something
20:15
Speaker 3: a little more blended. So being close to retirement, flexibility
20:21
Speaker 3: and liquidity becomes a huge thing for you, and especially
20:24
Speaker 3: maybe you haven't been able to say for your own retirement,
20:27
Speaker 3: and this could kind of be the shot in the
20:29
Speaker 3: arm that you need to give you that flexibility. So
20:31
Speaker 3: keeping some of it invested, especially in a conservative, diversified portfolio,
20:36
Speaker 3: could help you and your retirement later on. Or it
20:40
Speaker 3: just could be that little emergency reserve that Eric was
20:43
Speaker 3: just talking about too. And ideally, finally, you really want
20:47
Speaker 3: to understand the tax implications because this gets in very,
20:50
Speaker 3: very deep into the weeds as far as what type
20:53
Speaker 3: of inheritance it is. Is it a CD or money
20:56
Speaker 3: market or a checking account balance or is it a
20:59
Speaker 3: a tradition IRA or four oh one K or a
21:01
Speaker 3: non qualified annuity. All of these things have different implications
21:05
Speaker 3: as far as taxes and your options and stuff like that,
21:08
Speaker 3: so we really want to understand that. Or it could
21:10
Speaker 3: just be property, you know, maybe it's rental properties or
21:12
Speaker 3: a primary residence, stuff like that that obviously has some
21:15
Speaker 3: different tax implications as well. Docor But again, when you
21:19
Speaker 3: get something like this, this is a perfect time to
21:21
Speaker 3: consult with the financial advisor or CPA before you make
21:24
Speaker 3: any major moves to avoid any of those big surprises.
21:27
Speaker 3: So like so much of this that we talk about
21:29
Speaker 3: on a weekly basis is that there's just no one
21:31
Speaker 3: size fits all answer. It's not a perfect little you
21:34
Speaker 3: know abc D thing. We joke that financial planning is
21:37
Speaker 3: as much art as it is science. But a good
21:40
Speaker 3: starting point is what gives me the most stability and
21:43
Speaker 3: peace of mind as I get closer to retirement. And
21:45
Speaker 3: like I said, it could be reducing the debt, it
21:47
Speaker 3: could be boosting your own savings, or it just could
21:50
Speaker 3: be a combination. Of both of those.
21:51
Speaker 1: Great questions, great emails of course, Jennifer. Nice work. You
21:54
Speaker 1: can two be like Jennifer submit a question for the
21:57
Speaker 1: Money in Motion listener question corner. Just head on over
21:59
Speaker 1: to Class Financial die dot com. That's coss k l
22:01
Speaker 1: Aasfinancial dot com. Now only can you submit a question,
22:04
Speaker 1: you can also learn more about Class Financial and UH
22:07
Speaker 1: and subscribe to the weekly Market Pulse newsletter. They're telephone
22:10
Speaker 1: number six soh eight four four two five six three seven.
22:13
Speaker 1: No charge for the initial get to know your appointment
22:14
Speaker 1: tech COSS Financial. It will be complimentary to you again
22:17
Speaker 1: their number six oh eight four four two five six
22:20
Speaker 1: three seven. You want to hold on to that telephone
22:21
Speaker 1: number now because it's time for the Class Quiz Question
22:24
Speaker 1: of the week. Works like this and just want to
22:25
Speaker 1: ask you the Class Quiz question of the week. You
22:27
Speaker 1: will then have thirty minutes from the in today's program
22:29
Speaker 1: to call the Class Financial office right here in Madison
22:31
Speaker 1: at six oh eight four four two five six three seven.
22:34
Speaker 1: If you are the first caller with the correct answer,
22:36
Speaker 1: you'll win this week's prize, which is a twenty five
22:38
Speaker 1: dollars gift card to spour up this week's Class quiz
22:41
Speaker 1: Question of the week is this In twenty twenty five,
22:44
Speaker 1: the average accumulated debt Americans OH is over one hundred
22:48
Speaker 1: and five thousand dollars. Is that true or is that false?
22:52
Speaker 1: Telephone number six O eight four four two five six
22:55
Speaker 1: three seven, first call with correct answer when this week's prize.
22:57
Speaker 1: Don't forget as well. It's COSS Financial Office right here
22:59
Speaker 1: in Addison. No charge for that initial gets to know
23:01
Speaker 1: your appointment. It will be complimentary to you again the
23:04
Speaker 1: number six oh eight four four two five six three seven.
23:07
Speaker 1: Eric Kyle, It's always great chatting with both of you.
23:10
Speaker 1: You guys, enjoy this day and we'll talk real soon.
23:12
Speaker 2: Thanks Sean.
23:13
Speaker 3: Thanks Sean, We
23:14
Speaker 1: Got news coming your way next here on thirteen ten
23:17
Speaker 1: wu ib A