Latest / Money In Motion with Klaas Financial / Looking Beyond the Will to Manage Your Estate

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Looking Beyond the Will to Manage Your Estate · Money In Motion with Klaas Financial

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  Speaker 1: And our telephone lines. They are open to you right
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  Speaker 1: now if you've got questions for our retirement planning professionals
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  Speaker 1: love to have you join.
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  Speaker 2: Us this morning.
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  Speaker 1: Our telephone number to get you on the air six
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  Speaker 1: SOH eight three two one thirteen ten. That's six oh
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  Speaker 1: eight three two one thirteen ten. Of course, our retirement
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  Speaker 1: planning professionals from Class Financial, CJ. Closs and Eric Schwartz
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  Speaker 1: are here for you. They'd love to answer your question,
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  Speaker 1: take your call. You can learn more about everyone at
• 0:22
  Speaker 1: Class Financial. You can also schedule a complimentary chat. Listen
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  Speaker 1: back to this and previous shows podcasts all online at
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  Speaker 1: class financial dot com. That's Class klaas financial dot com.
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  Speaker 1: They're telephone number six SOH eight four four two five
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  Speaker 1: six three seven. No charge for that initial get to
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  Speaker 1: know you appointment tech loss Financial. It will be complementary
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  Speaker 1: to you again. Their number six O eight four four
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  Speaker 1: two five six three seven and the number to get
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  Speaker 1: on the air this morning six SOH eight three two
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  Speaker 1: one thirteen ten. That's six so eight three two one
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  Speaker 1: thirteen ten. And joining us this week as mentioned our
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  Speaker 1: CJ Closs and Eric Schwartz, CJ. How you doing this.
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  Speaker 2: Morning, I'm doing great, Sean.
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  Speaker 3: How are you?
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  Speaker 1: I'm doing great? Is there a winter equivalent for soccer?
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  Speaker 1: Footsal would that be the closest in that?
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  Speaker 2: And you're right, yes, it's foots all him. Why isn't
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  Speaker 2: it in the Olympics. We working on that.
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  Speaker 3: That's a great question, Sean.
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  Speaker 1: Next time you and I have some time to chat,
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  Speaker 1: I have over the last year or so, I've started
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  Speaker 1: to become a bit more obsessed with soccer.
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  Speaker 2: So we're gonna have to talk a little bit about that.
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  Speaker 1: So joining us as well, Eric Schwartz, Eric, how you doing.
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  Speaker 4: I'm doing great, Sean.
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  Speaker 2: Are you watching the Olympic coverage?
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  Speaker 4: I am not as much as I would like this
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  Speaker 4: time around, but you know we're staying busy over here.
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  Speaker 1: Yeah, I bet, I bet, And I know you guys
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  Speaker 1: always got a lot of great stuff going on at
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  Speaker 1: Claus Financial. And we're gonna be talking about kind of
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  Speaker 1: putting together a blueprint beyond the will and why you
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  Speaker 1: may be missing something when it comes to your estate strategy.
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  Speaker 1: And we're gonna get the details from c J Eric
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  Speaker 1: this morning on the program. A couple of things, as mentioned,
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  Speaker 1: phone lines are open, whether you've got a question, about
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  Speaker 1: the feature topic of week, or any type of retirement
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  Speaker 1: related question. Love to have you join us at six
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  Speaker 1: eight three two one thirteen ten At six oh eight
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  Speaker 1: three two one thirteen ten. Another cool feature of the program,
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  Speaker 1: it's the Class Quiz question of the week, your chance
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  Speaker 1: to win a fantastic prize. This week no exception, our
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  Speaker 1: friends from Class Financial provided a twenty five dollars gift
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  Speaker 1: card to Texas Roadhouse. A little tip listen to the program.
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  Speaker 1: Just about every show, the question and answer to the
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  Speaker 1: Class Quiz question in the week come up comes up
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  Speaker 1: during the program.
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  Speaker 2: Again.
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  Speaker 1: We'll get into details on how you can win a
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  Speaker 1: little bit later on in the show. And before we
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  Speaker 1: start this week's conversation, let's actually look back at last
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  Speaker 1: week's show and get the class Quiz question and answer
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  Speaker 1: there as well.
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  Speaker 4: Eric absolutely thank you everybody for listening as always, and
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  Speaker 4: congratulations to our winner from last week. And last week
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  Speaker 4: we were talking about employer sponsored retirement plans. So the
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  Speaker 4: question was in twenty twenty six, as an employee, assuming
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  Speaker 4: that you are under the age of fifty, what is
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  Speaker 4: the maximum dollar amount that you can contribute to your
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  Speaker 4: four oh one K plan? And the correct answer was
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  Speaker 4: twenty four thousand, five hundred dollars.
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  Speaker 1: And that, of course program was a really really good one.
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  Speaker 1: As always, you know, listen back right at class financial
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  Speaker 1: dot com. That's coss k l a A S Financial
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  Speaker 1: dot Com.
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  Speaker 2: Don't forget.
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  Speaker 1: We'll have another question later on in the program, chance
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  Speaker 1: to win a great prize as MATCHA. We're gonna be
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  Speaker 1: talking about kind of that blueprint beyond the will, and
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  Speaker 1: the topic usually ends up kind of you know, for
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  Speaker 1: a lot of folks in a dusty binder of Manila
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  Speaker 1: folders somewhere that you're throwing a file and never really
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  Speaker 1: look back, which is a state planning. But we're going
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  Speaker 1: to be looking through some of the different kind of
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  Speaker 1: a different perspective today, and you know, you think about
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  Speaker 1: a state plan most of us assume, well, it's a will,
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  Speaker 1: and of course it's just fine to kind of throw
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  Speaker 1: in the back of the filing cabinet.
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  Speaker 2: Why CJ. Is that kind of a dangerous mindset?
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  Speaker 3: Yeah, you're right, Sean. Most people see a state planning
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  Speaker 3: as some sort of legal chore that they have to accompli.
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  Speaker 3: They go to an attorney, they sign a will or
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  Speaker 3: a trust and they think, you know, check i'm done.
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  Speaker 3: But a class financial we see it differently. We tell
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  Speaker 3: our clients that the attorney is the builder, but the
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  Speaker 3: financial advisor is the architect. So the attorney drafts the
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  Speaker 3: legal documents, but the advisor knows where all the furniture goes,
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  Speaker 3: the iras, the brokerage accounts, the life insurance policies, so
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  Speaker 3: on and so forth. If the builder builds a house,
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  Speaker 3: but the architect didn't plan for the plumbing, you've got
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  Speaker 3: a problem. So this is another way of saying everybody
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  Speaker 3: plays their role. We call this your financial team. We've
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  Speaker 3: referenced this fighting or we've compared this financial team to
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  Speaker 3: like a team of medical professionals before a general physician
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  Speaker 3: versus a versus a surgeon versus you know, something else.
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  Speaker 3: So in a similar way, you need a financial team.
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  Speaker 3: Each team member is critical. But we often call your
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  Speaker 3: financial advisor your quarterback. In this case, we're referencing the
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  Speaker 3: financial advisor as the architect and so. And remember we
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  Speaker 3: aren't attorneys, so we don't draft these documents. However, we
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  Speaker 3: work close mostly with our clients estate planning lawyers, because
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  Speaker 3: we manage the actual assets that those documents are meant
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  Speaker 3: to govern. If your will says one thing, but your
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  Speaker 3: investment account is titled another way, the will might not
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  Speaker 3: even matter. So that's the idea here, everybody. That's the
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  Speaker 3: missing link we're talking about today. The builder aka the
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  Speaker 3: attorney is critical, but the financial advisor is the architect.
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  Speaker 3: Make sure that both are involved in your estate planning process.
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  Speaker 2: Talk this morning with CJ.
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  Speaker 1: Closs and Eric Schwartz, our retirement planning professionals from Class Financial.
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  Speaker 2: The website class financial.
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  Speaker 1: Dot com that's colss k l a A S Financial
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  Speaker 1: dot com and their telephone number six so eight four
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  Speaker 1: four two five six three seven. So I'm guessing it's
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  Speaker 1: it sounds like we're talking coordination here, And I've got
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  Speaker 1: to think, when somebody comes in to Class Financial, Eric,
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  Speaker 1: how often do you find that their legal documents and
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  Speaker 1: their financial accounts are actually uh talking to one another?
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  Speaker 4: You know, that's a that's a really good question, and unfortunately,
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  Speaker 4: more often than you would expect, there is a disconnect.
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  Speaker 4: People spend a lot of money on some new estate
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  Speaker 4: planning documents, but if you don't do the last step
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  Speaker 4: of actually implementing them, that disconnect is where you're going
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  Speaker 4: to cause a lot of stress for your errors later
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  Speaker 4: on in them when you're no longer here.
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  Speaker 1: Talking this morning with CJ. Closs and Eric Schwartz. And
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  Speaker 1: I guess to me, that's pretty surprising, Eric. And let's
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  Speaker 1: get into the weeds a little bit on that. Now
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  Speaker 1: we've identified some of the pillars in this process, the
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  Speaker 1: four fill pillars in this process, let's start with kind
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  Speaker 1: of that big one, the difference between a will and
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  Speaker 1: a trust. And from a financial perspective, why does that
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  Speaker 1: differentiation matter?
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  Speaker 4: Yeah, and we could probably start by defining what we
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  Speaker 4: mean by estate planning, right. It's kind of a legalize
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  Speaker 4: term that we talk about, and it sounds I think,
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  Speaker 4: I think sometimes it sounds like, oh, that's for wealthy
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  Speaker 4: people or something that you know, somebody with lots of
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  Speaker 4: fancy assets needs. But really, when we're when we're talking
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  Speaker 4: about estate planning, it's the legal process of arranging and
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  Speaker 4: managing and distributing in individuals assets, your liabilities, and all
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  Speaker 4: your personal affairs, both during your lifetime and after your death. Okay,
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  Speaker 4: so it involves creating documents. You know, we're talking about
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  Speaker 4: wills and trusts and powers of attorney and designating beneficiaries.
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  Speaker 4: There's usually some aspect of looking to minimize taxes, and
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  Speaker 4: making sure that you have a guardian for minor children
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  Speaker 4: that may be left behind, and basically in general making
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  Speaker 4: sure that your wishes are honored. Not only when you're
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  Speaker 4: no longer here, as I said earlier, but if you are,
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  Speaker 4: for example, incapacitated, so you're still alive, but you're not
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  Speaker 4: able to make your own decision. So the most common
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  Speaker 4: documents that we're going to see in this space, especially
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  Speaker 4: for the folks that we work with, is going to be,
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  Speaker 4: you know, a basic will, a revocable living trust, perhaps
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  Speaker 4: definitely want to see powers of attorney, health care directives,
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  Speaker 4: so this can also be called living will, and these
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  Speaker 4: are the documents that tell your loved ones what measures
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  Speaker 4: you want taken if you are critically ill and medical
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  Speaker 4: decisions need to be made, and then just basic things
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  Speaker 4: like beneficiary designations and how should this account be titled?
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  Speaker 4: So to go back to your original question here, shawna
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  Speaker 4: start kind of talking about the four pillars of what
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  Speaker 4: we would call it here is deciding between whether or
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  Speaker 4: not you need a will based a state planned or
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  Speaker 4: a trust based a state plan. And it often comes
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  Speaker 4: down to pillar number one, which is privacy and probate.
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  Speaker 4: So in Wisconsin, if you pass away with just a will, okay,
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  Speaker 4: so a document that that says I want this asset
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  Speaker 4: to go here, I want I want leave my house here,
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  Speaker 4: that document needs to go through a public process called probate.
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  Speaker 2: Okay.
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  Speaker 4: So when you go through probate, anybody can see what
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  Speaker 4: you owned and who it's going to.
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  Speaker 2: Okay.
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  Speaker 4: So with a trust, on the other hand, when you
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  Speaker 4: actually have funded it correctly, it's like a private contract.
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  Speaker 4: It keeps your family's business off of public records. So
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  Speaker 4: a will public and has to go through the probate process,
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  Speaker 4: which can be long and expensive. And then a trust,
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  Speaker 4: which as long as you fund it correctly, you take
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  Speaker 4: that last step. As I was mentioning earlier, that's where
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  Speaker 4: you're going to be keeping that your family affairs private
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  Speaker 4: and generally not have to go through the probate process. Now,
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  Speaker 4: the second pillar is your beneficiary designations. So this is
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  Speaker 4: the biggest kind of gotcha in our industry. You can
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  Speaker 4: have a beautiful fifty page trust, but if your IRA
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  Speaker 4: still lists your expouse or your deceased relative as the beneficiary,
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  Speaker 4: that money is usually going to bypass the trust entirely.
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  Speaker 4: So we spend a ton of time with clients auditing
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  Speaker 4: those old beneficiary designations to make sure that their match
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  Speaker 4: I'm sorry, to make sure that their math kind of
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  Speaker 4: matches the law, so to speak.
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  Speaker 1: And that's always to be also one of the most
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  Speaker 1: fascinating parts of this. I think a lot of I
• 9:57
  Speaker 1: don't think I'm alone by any means. I think a
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  Speaker 1: lot of us kind of assume it's the other way
• 10:01
  Speaker 1: around about what Trump's what. But definitely important, as we
• 10:04
  Speaker 1: talked this morning with Eric Schwartz and CJ. Closs, our
• 10:07
  Speaker 1: retirement planning professionals from Class Financial, really important to have
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  Speaker 1: this stuff reviewed, to have this these these documents as
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  Speaker 1: well as we talk this morning, don't forget if you've
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  Speaker 1: got a question, love to have join us so eight
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  Speaker 1: three two one thirteen ten. That's six so eight three
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  Speaker 1: two one thirteen ten. We'll get you on the air
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  Speaker 1: with CJ and Eric. Don't forget about Class Financials website
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  Speaker 1: Class financial dot com that's coss k l a as
• 10:27
  Speaker 1: financial dot com. And some of that gets scary too
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  Speaker 1: when you start talking about you know, designations and other
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  Speaker 1: things and maybe an ex spouse or deceased relative, and
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  Speaker 1: it really kind of creates a scary situation and I
• 10:40
  Speaker 1: think kind of an unfortunate sometime. What about things like gifting, CJ.
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  Speaker 1: I know people often want to see their kids and
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  Speaker 1: grandkids enjoy actually see them enjoy the money now, enjoy
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  Speaker 1: the money now.
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  Speaker 3: Yeah, good question, Sean. So that's that's our third piller
• 10:56
  Speaker 3: gifting strategies for twenty twenty six. The annual gift TACs
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  Speaker 3: exclume illusion amount of nineteen thousand dollars per individual per
• 11:03
  Speaker 3: year is a great tool. We often help clients look
• 11:07
  Speaker 3: at their cash flow to see if they can afford
• 11:09
  Speaker 3: to give while they're living, so they can actually see
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  Speaker 3: the impact of the wealth that transfers. It's a psychological
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  Speaker 3: win as much as a tax win. And the fourth
• 11:19
  Speaker 3: pillar is tax efficiency. We look at things like step
• 11:23
  Speaker 3: up in basis. So if you give an appreciated stock
• 11:26
  Speaker 3: to a child while you're alive, they might owe heavy
• 11:29
  Speaker 3: taxes later when they go to sell that stock and
• 11:32
  Speaker 3: use the proceeds because the basis gets transferred along with
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  Speaker 3: the stock. However, conversely, if they inherit that same appreciated stock,
• 11:41
  Speaker 3: those taxes might vanish due to something called a step
• 11:44
  Speaker 3: up in basis upon death. So we help clients navigate
• 11:48
  Speaker 3: these types of timing decisions. Listen this whole fourth pillar
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  Speaker 3: of basis and step up and appreciated assets in and
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  Speaker 3: of itself. We could dedicate a day's worth of shows
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  Speaker 3: to this topic and the pros and cons of different
• 12:02
  Speaker 3: decisions that people can make. And if you only have
• 12:05
  Speaker 3: to deal with this once in your life, it's really
• 12:07
  Speaker 3: hard to navigate all of those complexities. Fortunately for us
• 12:11
  Speaker 3: on our team, this is what we deal with every
• 12:12
  Speaker 3: single day, and so we've looked at different ways of
• 12:14
  Speaker 3: addressing it. We've seen how it works out and how
• 12:16
  Speaker 3: it doesn't, and hopefully we can bring that wisdom to
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  Speaker 3: bear on your financial plan.
• 12:21
  Speaker 2: Talking this morning with CJ.
• 12:22
  Speaker 1: Closs and Eric Schwartz, Yes, they are our retirement planning
• 12:24
  Speaker 1: professionals from Class Financial.
• 12:26
  Speaker 2: Don't forget about the website. I hope you have a
• 12:27
  Speaker 2: chance to check.
• 12:28
  Speaker 1: Them out online Coss Financial dot com.
• 12:30
  Speaker 2: That's Coss k l a a S Financial dot com.
• 12:33
  Speaker 1: From the website, you can learn about COSS Financial, the team,
• 12:35
  Speaker 1: and the separate divisions there. You can also schedule a
• 12:37
  Speaker 1: complementary chat right from the website. Speaking of complementary chats,
• 12:41
  Speaker 1: not only can you do that right Onlineaclassfinancial dot com.
• 12:43
  Speaker 1: You can also call the office right here in Madison
• 12:45
  Speaker 1: the telephone number six oh eight four four two five
• 12:48
  Speaker 1: six three seven. No charge for that initial get to
• 12:51
  Speaker 1: know your appointment ach Coss Financial. It will be complementary
• 12:53
  Speaker 1: to you again their number six oh eight four four
• 12:56
  Speaker 1: two five six three seven. We're gonna assemble that a
• 12:58
  Speaker 1: state team and talk about communication. We'll get the details
• 13:01
  Speaker 1: from Eric and CJ. We will do that next as
• 13:04
  Speaker 1: Money in Motion with Coss Financial continues right here on
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  Speaker 1: thirteen ten doll Will you ibi talking this morning with CJ.
• 13:11
  Speaker 1: Closs and Eric Schwartz, our retirement planning professionals from Class Financial.
• 13:14
  Speaker 1: I forget about that website Colss financial dot com. That's
• 13:17
  Speaker 1: Coss k l A A S Financial dot com Delpha
• 13:20
  Speaker 1: number six so eight four four two five six three seven.
• 13:23
  Speaker 1: No charge for that initial get to know your appointment
• 13:25
  Speaker 1: at Loss Financial. It will be complementary to you talking
• 13:28
  Speaker 1: this week about looking beyond the will when it comes to,
• 13:32
  Speaker 1: of course, putting together your estate strategy. And you know,
• 13:36
  Speaker 1: I think about CJ kind of assembling that team, and
• 13:40
  Speaker 1: I know you guys work on the same same side
• 13:43
  Speaker 1: of the table with your client when it comes to
• 13:45
  Speaker 1: the state planning process, can you describe kind of what
• 13:47
  Speaker 1: that all looks like and do you like talk to
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  Speaker 1: the attorneys? How does that all go? CJ Yeah, good
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  Speaker 1: questions on sean.
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  Speaker 3: So we we we we often joke that we speak
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  Speaker 3: financial ease and the attorneys speak legal ease, and we
• 14:05
  Speaker 3: act as a translator for the client. So we want
• 14:08
  Speaker 3: to make sure that if the attorney suggests a certain
• 14:10
  Speaker 3: trust structure, we've checked the portfolio and financial plans to
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  Speaker 3: make sure it's feasible. So I'll give you a real
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  Speaker 3: world example here we had a client who had a
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  Speaker 3: wonderful trust drafted by a top tier local estate planning firm,
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  Speaker 3: but five years later, they opened a new brokerage account
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  Speaker 3: without any beneficiaries and forgot to title it in the
• 14:29
  Speaker 3: name of their trust. If they had passed away, that
• 14:32
  Speaker 3: specific account would have potentially been stuck in probate for months.
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  Speaker 3: Because we do consistent reviews with our clients every year,
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  Speaker 3: we caught that error and retitled the account accordingly. So
• 14:43
  Speaker 3: for us, you know, sitting on the same side of
• 14:45
  Speaker 3: the table with our clients and really you know, helping
• 14:49
  Speaker 3: them interpret what the lawyer has drafted. Making sure that
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  Speaker 3: everything is titled appropriately is a big part of our job, so.
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  Speaker 1: I certainly don't want things lost in translation. As we
• 14:57
  Speaker 1: talked this morning with CJ. Closs and Eric Schwartz of
• 15:00
  Speaker 1: Class Financial, and I know, you know, we kind of
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  Speaker 1: I look at what you guys are able to do,
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  Speaker 1: kind of be that safety net. And CJ, let's talk
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  Speaker 1: then about making sure that that that plan stays in
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  Speaker 1: motion as life changes.
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  Speaker 3: Yeah, exactly, life isn't static. You buy a second home,
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  Speaker 3: you have a new grandchild, tax laws change, the plan
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  Speaker 3: must of all for sure.
• 15:23
  Speaker 1: Talking this morning with CJ. Class and Eric Schwartz Class Financial,
• 15:26
  Speaker 1: our retirement planning professionals and Erica, you know, as we
• 15:29
  Speaker 1: kind of as we kind of wrap a little bit
• 15:31
  Speaker 1: of this section of the program up, what are when
• 15:34
  Speaker 1: we talk about, you know, folks and talk to folks,
• 15:38
  Speaker 1: what's their kind of Monday Morning action steps?
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  Speaker 2: What should they be doing to kind of get that start.
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  Speaker 4: That's a great question, Chron and I think a lot
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  Speaker 4: of times on the show we talk a lot about,
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  Speaker 4: you know, things people should know, but but sometimes people
• 15:52
  Speaker 4: aren't exactly sure the first step they should take. So
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  Speaker 4: I would say the first step is what we would
• 15:57
  Speaker 4: call in a state audit. So pull out that old binder.
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  Speaker 4: If it's older than five years, or if you had
• 16:03
  Speaker 4: a major life event I think like a marriage, a divorce,
• 16:06
  Speaker 4: a death in the family, it is likely outdated. Okay,
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  Speaker 4: So bring that into your financial advisor or a state
• 16:11
  Speaker 4: planning attorney to let them look at your accounts alongside
• 16:15
  Speaker 4: your documents and you know, see if there's any kind
• 16:18
  Speaker 4: of flashing red lights that need to be addressed right away.
• 16:23
  Speaker 4: And the interesting thing about this is I may be
• 16:27
  Speaker 4: speaking to folks who don't even have that binder yet,
• 16:30
  Speaker 4: right That is that makes up a lot of people
• 16:33
  Speaker 4: who haven't gone in, haven't done that a state plan yet.
• 16:36
  Speaker 4: So don't be intimidated. People love to avoid this because
• 16:40
  Speaker 4: it's a conversation about their mortality, but really it's also
• 16:44
  Speaker 4: a conversation about conversation or I'm sorry, a conversation about stewardship.
• 16:50
  Speaker 4: So it's about making sure that your money actually gets
• 16:52
  Speaker 4: to the people and the causes that you care about
• 16:55
  Speaker 4: most with the least amount of friction. So bring these shoes,
• 17:00
  Speaker 4: Bring these questions to your trusted professionals, whether that's a
• 17:03
  Speaker 4: financial advisor. Maybe you already work with an attorney and
• 17:08
  Speaker 4: get some answers to these questions. And then the last
• 17:10
  Speaker 4: thing I'll add here is we I often joke with
• 17:14
  Speaker 4: my clients that because you know, you meet with them
• 17:17
  Speaker 4: and you say, hey, here's an attorney you should talk to,
• 17:19
  Speaker 4: we really need to get an estate plan in place.
• 17:22
  Speaker 4: Then you see them six months later and oh haha,
• 17:24
  Speaker 4: we didn't do that yet. It's like, oh, okay, well,
• 17:27
  Speaker 4: you know we I'll joke that it takes about five
• 17:31
  Speaker 4: years of me telling people to do it before they
• 17:33
  Speaker 4: actually go and do it. We much prefer that that
• 17:35
  Speaker 4: it happens quickly, because, as as CJ was saying, life
• 17:38
  Speaker 4: happens and things change. But take that first step, ask
• 17:43
  Speaker 4: the questions and get yourself on the right track.
• 17:46
  Speaker 2: Really important conversation this week.
• 17:48
  Speaker 1: Don't forget if you missed any part of today's program,
• 17:50
  Speaker 1: you can always listen back at class Financial dot Com.
• 17:52
  Speaker 1: That's coss k l a as Financial dot Com telephone
• 17:56
  Speaker 1: over for the office here in Madison. Six So eight
• 17:58
  Speaker 1: four four two five six. We're gonna head on over
• 18:01
  Speaker 1: to the money and Motion listener question corner. We're also
• 18:03
  Speaker 1: going to wrap up our conversation about your estate strategy.
• 18:07
  Speaker 1: We will do that next as Money in Motion with
• 18:09
  Speaker 1: Coss Financial continues right here on thirteen ten Double u
• 18:12
  Speaker 1: ib A talking this morning with CJ. Closs and Eric Schwartz.
• 18:16
  Speaker 1: They are our retirement planned professionals from Class Financial. Don't
• 18:19
  Speaker 1: forget we do this each and every Thursday at eight
• 18:20
  Speaker 1: oh five. If you ever have questions, you can call
• 18:23
  Speaker 1: during the program. Also another way to reach Coss Financial anytime.
• 18:26
  Speaker 1: Six oh eight four four two five six three seven.
• 18:29
  Speaker 1: That's our office right here in Madison. No charge for
• 18:31
  Speaker 1: that initial gets to know you apployment at Colss Financial.
• 18:33
  Speaker 1: It will be complimentary to you again. Their number six
• 18:36
  Speaker 1: oh eight four four two five six three seven on
• 18:38
  Speaker 1: the website Coss Financial dot com. That's Coss k l
• 18:41
  Speaker 1: aas Financial dot com. Before we get to our Money
• 18:44
  Speaker 1: and Motion listener question corner, let's kind of wrap this
• 18:47
  Speaker 1: stuff up.
• 18:48
  Speaker 2: Eric.
• 18:48
  Speaker 1: I know, I know on that last segment you really
• 18:50
  Speaker 1: did a really nice job of talking about the importance
• 18:53
  Speaker 1: of that stewardship conversation. Anything else you'd really like our
• 18:57
  Speaker 1: listeners to be thinking about.
• 19:00
  Speaker 4: Yeah, I know, I said right before the break that
• 19:02
  Speaker 4: it was the last thing I was going to say.
• 19:03
  Speaker 4: But if you if you ask any of my clients,
• 19:06
  Speaker 4: I say that about three times before I let them
• 19:08
  Speaker 4: leave the office. But one final thought here. You know,
• 19:11
  Speaker 4: if you if you're listening to our conversation today and
• 19:14
  Speaker 4: you're kind of anywhere on that spectrum of either I
• 19:17
  Speaker 4: have I have a legal or I have some legal
• 19:20
  Speaker 4: documents in place, but they're old all the way down
• 19:23
  Speaker 4: to I've never even sat down and talked about this before.
• 19:27
  Speaker 4: Wherever you are in that process, feel free to reach
• 19:31
  Speaker 4: out to our office. We as we always talk about,
• 19:35
  Speaker 4: we do an initial, no no cost, initial consultation and
• 19:40
  Speaker 4: we are not attorneys, but we work with attorneys on
• 19:42
  Speaker 4: these topics all the time and we can help you
• 19:44
  Speaker 4: at least get those conversations started. And if you're not
• 19:48
  Speaker 4: sure where to where to start with an attorney, we
• 19:51
  Speaker 4: can always refer you to someone as well.
• 19:53
  Speaker 1: Very important stuff this week every week on the program,
• 19:56
  Speaker 1: and that's why it's so important. If you miss any
• 19:57
  Speaker 1: part of the show, you can listen back at Coats
• 19:59
  Speaker 1: financial dot com. It's also important to subscribe to the
• 20:01
  Speaker 1: podcast right online. Just head on over to class financial
• 20:04
  Speaker 1: dot com. That's class klaas financial dot com. While you're there,
• 20:08
  Speaker 1: you can also submit a question to be answered in
• 20:10
  Speaker 1: our Money and Motion listener question corner, and Diane rides in.
• 20:14
  Speaker 1: She says, I listened to your show last week about
• 20:16
  Speaker 1: employer sponsored retirement plans like four oh one k's. I'm
• 20:20
  Speaker 1: sixty one years old and I've always just done the
• 20:23
  Speaker 1: standard ketchup contribution, but you mentioned something about a super
• 20:27
  Speaker 1: catchup for people my age in the year twenty twenty six.
• 20:31
  Speaker 1: Can you clarify how much more I can actually put
• 20:34
  Speaker 1: away this year? And CJ, I'll let you answer Diane's email.
• 20:39
  Speaker 3: Yeah, I love this question, and thanks so much for
• 20:41
  Speaker 3: submitting this online, Diane. And that's a good reminder for
• 20:44
  Speaker 3: anyone listening. You can either call in during one of
• 20:47
  Speaker 3: our shows to ask a question live, or you can
• 20:49
  Speaker 3: submit a question online like Diane did by emailing our
• 20:52
  Speaker 3: company at Clossfinancial dot com. And of course we'll do
• 20:55
  Speaker 3: our best to ask your question on one of our
• 20:58
  Speaker 3: future shows. But back to diane question for twenty twenty six.
• 21:01
  Speaker 3: Thanks to the Secure Act two point zero, there is
• 21:04
  Speaker 3: indeed a new super catchup provision for a very specific
• 21:08
  Speaker 3: age group. So love that Diane's asking this question, but
• 21:12
  Speaker 3: everybody's ears should be perking up right now, if you
• 21:15
  Speaker 3: are ages sixty, sixty one, sixty two, or sixty three
• 21:20
  Speaker 3: by the end of twenty twenty six, okay, so you
• 21:23
  Speaker 3: have to be one of those ages by the end
• 21:25
  Speaker 3: of twenty twenty six, you are allowed an alternative catchup
• 21:29
  Speaker 3: contribution of eleven thousand, two hundred and fifty dollars. This
• 21:34
  Speaker 3: is significantly higher than the standard eight thousand dollars catchup
• 21:38
  Speaker 3: for those who are over fifty. When you combine that
• 21:43
  Speaker 3: with the standard amount in twenty twenty six of the
• 21:46
  Speaker 3: deferral limit of twenty four thousand, five hundred, a person
• 21:50
  Speaker 3: in your age bracket Diane can potentially put away a
• 21:53
  Speaker 3: total of thirty five thousand, seven hundred and fifty dollars
• 21:57
  Speaker 3: in twenty twenty six into their employer sponsor retirement plan
• 22:00
  Speaker 3: like a four to one K plan. And that is
• 22:02
  Speaker 3: for those you know following along with the math, that is,
• 22:04
  Speaker 3: the twenty four thousand, five hundred plus the eleven two
• 22:08
  Speaker 3: hundred and fifty combined of that special ketchup contribution gets
• 22:12
  Speaker 3: you up to thirty five thousand, seven hundred and fifty dollars.
• 22:15
  Speaker 3: So yes, if you are turning or or will be
• 22:19
  Speaker 3: sixty sixty one, sixty two or sixty three by the
• 22:21
  Speaker 3: end of twenty twenty six, and you are looking to
• 22:24
  Speaker 3: cram as much into your retirement plan as possible, well,
• 22:27
  Speaker 3: twenty twenty six is a year that you can start
• 22:29
  Speaker 3: doing that now. One quick note here, and this is
• 22:33
  Speaker 3: why I like getting these questions through a website because
• 22:35
  Speaker 3: it gives me a little bit more time to think
• 22:36
  Speaker 3: about them and prepare. But one quick check on this
• 22:39
  Speaker 3: would be if you are a what's deemed a quote
• 22:41
  Speaker 3: unquote high earner, meaning you earned more than one hundred
• 22:44
  Speaker 3: and forty five thousand dollars two one hundred and fifty
• 22:47
  Speaker 3: thousand right in that range in the previous calendar year,
• 22:50
  Speaker 3: the IRS now requires those ketchup contributions to be made
• 22:53
  Speaker 3: as WROTH contributions. So while you can still save that
• 22:58
  Speaker 3: total amount, you just want to make sure you're wrecking
• 23:00
  Speaker 3: those extra dollars into the right bucket in your plan.
• 23:03
  Speaker 3: And final thought would be if your employer doesn't offer ROTH,
• 23:08
  Speaker 3: you actually can't do a catchup contribution, So immediately go
• 23:11
  Speaker 3: talk to your CFO and say, hey, I need you
• 23:15
  Speaker 3: to add that provision because you're literally limiting my ability
• 23:19
  Speaker 3: to save and do a catchup. So again, everybody, we
• 23:23
  Speaker 3: can go down a million rabbit holes and all of this.
• 23:25
  Speaker 3: Main thing you need to know is, as you know
• 23:27
  Speaker 3: according to Diane's question, you can save more from there,
• 23:30
  Speaker 3: go talk to your financial advisor and account and figure
• 23:32
  Speaker 3: out what you should be doing.
• 23:33
  Speaker 1: And you can of course submit a question just like
• 23:35
  Speaker 1: Diane did. Right online Class Financial dot com. That's Claus
• 23:39
  Speaker 1: k l aas financial dot com. Great website with a
• 23:42
  Speaker 1: lot of great information about Class Financial as well, also
• 23:44
  Speaker 1: an opportunity to schedule a complimentary chat right online. That's
• 23:47
  Speaker 1: Coloss Financial dot com k l aa s Financial dot com.
• 23:51
  Speaker 1: They're telephon number six, so eight four four two five
• 23:54
  Speaker 1: six three seven. You want to hold on to that
• 23:55
  Speaker 1: telephon number because it's time now for the Closs Quiz question.
• 23:58
  Speaker 1: The week it works like this and just moment I
• 24:00
  Speaker 1: will ask you the Class Quiz question. In the week,
• 24:02
  Speaker 1: you will then have thirty minutes from the inter Today's
• 24:04
  Speaker 1: program to call the Class Financial office right here in
• 24:07
  Speaker 1: Madison at six oh eight four four two five six
• 24:10
  Speaker 1: three seven. If you are the first car with correct
• 24:12
  Speaker 1: answer win this week's prize. We say twenty five dollars
• 24:14
  Speaker 1: gift card to Texas Roadhouse. This week's Closs Quiz Question
• 24:18
  Speaker 1: of the week is this for twenty twenty six. What
• 24:22
  Speaker 1: is the annual gift tax exclusion amount per person telephone
• 24:27
  Speaker 1: number six oh eight four four two, five, six three
• 24:29
  Speaker 1: seven first cost. Correct answer win that twenty five dollars
• 24:31
  Speaker 1: gift card to Texas Roadhouse.
• 24:33
  Speaker 2: Don't forget as well.
• 24:33
  Speaker 1: That's Class Financial's office right here in Madison again the
• 24:36
  Speaker 1: number six oh eight four four two five six three
• 24:39
  Speaker 1: seven CJ.
• 24:41
  Speaker 2: Eric.
• 24:41
  Speaker 1: It's always fantastic talking with both of you. You guys,
• 24:43
  Speaker 1: enjoy this great day and we'll talk real soon.
• 24:46
  Speaker 3: Thanks Sean, Thanks Sean.
• 24:47
  Speaker 2: Take care, guys.
• 24:48
  Speaker 1: News comes your way next right here on thirteen ten
• 24:50
  Speaker 1: wuib A