Latest / Money In Motion with Klaas Financial / Making the Move

Transcript

Making the Move · Money In Motion with Klaas Financial

0:00
Speaker 1: On our phone lines. They are open for you right
0:02
Speaker 1: now if you have questions for our retirement planning professionals
0:05
Speaker 1: from Class Financial. I gotta do is pick up phone
0:08
Speaker 1: dial in this morning, get you on the air six
0:09
Speaker 1: oh eight three two one thirteen ten. That's six oh
0:12
Speaker 1: eight three two one thirteen ten. We'll get you on
0:15
Speaker 1: the air with CJ. Closs and Eric Schwartz of Klass Financial.
0:17
Speaker 1: You can learn more about Class Financial on their website.
0:20
Speaker 1: It's Cossfinancial dot com. That's Class k l Aasfinancial dot com.
0:26
Speaker 1: Telephone number for the office right here in Madison six
0:28
Speaker 1: oh eight four four two five six three seven. No
0:32
Speaker 1: charge for that initial get to know you appointment to
0:34
Speaker 1: that con Litt'll get together will be complimentary to you
0:38
Speaker 1: again their number six oh eight four four two five
0:40
Speaker 1: six three seven. And of course to get on the
0:42
Speaker 1: air this morning with your retirement related question. All I
0:45
Speaker 1: gotta do is call the station six oh eight three
0:47
Speaker 1: two one thirteen ten. That's six oh eight three two
0:49
Speaker 1: one thirteen ten. And CJ. How are you doing this week?
0:56
Speaker 2: Oh?
0:56
Speaker 1: Do we have CJ? I hear him, I see him.
1:00
Speaker 1: He might not be hearing me. Let's go to let's
1:02
Speaker 1: go to Eric. Eric, how you doing this morning.
1:05
Speaker 3: I'm doing great, Sean, how about yourself?
1:07
Speaker 1: I'm doing really good. I don't know. I see CJ's there.
1:10
Speaker 1: I see us sending a little behind the scenes stuff.
1:13
Speaker 1: I see audio going CJ's way, but I'm not seeing
1:16
Speaker 1: anything come back. So we'll get that. We'll get that
1:19
Speaker 1: all here.
1:19
Speaker 3: I'm talking through the wall, so he's talking.
1:25
Speaker 1: As you guys are, of course, at the beautiful Class
1:28
Speaker 1: Financial office right here in Madison, right off Seminole Highway.
1:32
Speaker 1: And Eric, We've got a great conversation this week, very
1:35
Speaker 1: timely as I'm looking towards the forecast going. You know what,
1:39
Speaker 1: I may not be retired, but it may not be
1:40
Speaker 1: a bad time to be thinking about having some winter residence,
1:44
Speaker 1: if not a year round. We're gonna be talking this
1:46
Speaker 1: week about a big question. It's an important question too
1:49
Speaker 1: in retirement, is should I move? Should I look into
1:53
Speaker 1: into making that change maybe looking downsize, leave the region,
1:57
Speaker 1: leave the area, stay in the area, get something simpler.
1:59
Speaker 1: We're to tackle that very question this morning and some
2:02
Speaker 1: of the considerations with our retirement planning professionals from Class Financial. Again,
2:07
Speaker 1: if you've got a question, love to have you join
2:09
Speaker 1: us this morning. Six'sh eight three two one thirteen ten.
2:12
Speaker 1: That's six soh eight three two one thirteen ten. Coss Financial,
2:15
Speaker 1: their website class financial dot com. That's class klaasfinancial dot
2:20
Speaker 1: com and their telephone number six oh eight four four
2:23
Speaker 1: two five six three seven. No charge for that initial
2:26
Speaker 1: get to know your appoyment tech Coss Financial. It will
2:29
Speaker 1: be complimentary to you again their number six O eight
2:31
Speaker 1: four four two five six three seven. And before you're
2:34
Speaker 1: rolling on this week's conversation, one of the other really
2:36
Speaker 1: cool features of the show is the CSS Quiz Question
2:39
Speaker 1: of the Week. That's a great opportunity for you to
2:40
Speaker 1: win a great prize from our friends at COSS Financial.
2:42
Speaker 1: They have provided a twenty five dollars gift card to
2:45
Speaker 1: Best Buy. Tell you a little bit later on in
2:47
Speaker 1: the segment how you could win that gift card A
2:49
Speaker 1: little tip. They'll pay close attention to the show. Just
2:52
Speaker 1: about every program the question answer come up during that
2:55
Speaker 1: week show. And before we get talking about that question
2:59
Speaker 1: about should I move, let's actually look back at last
3:01
Speaker 1: week's show and get the question and answer there as well.
3:05
Speaker 3: Eric, Yeah, I think one of these weeks we're gonna
3:07
Speaker 3: have to pull a fast one and not have the
3:09
Speaker 3: answer to the show. Yes, pay attention for that one.
3:13
Speaker 3: All right, thank you, Thank you to everybody for listening
3:16
Speaker 3: as always, And our winner from last week was Amy
3:19
Speaker 3: from Cottage Grove and the question was true or false?
3:23
Speaker 3: An annuity is a contract between you and an insurance company.
3:27
Speaker 3: And Amy knew that the correct answer was true. So
3:30
Speaker 3: thank you for listening and thanks for calling in.
3:32
Speaker 1: Nice work and pay coal's attention. You two can be
3:34
Speaker 1: like Amy, a great chance to win a great prize
3:36
Speaker 1: from our friends at Clause Financial, a twenty five dollars
3:39
Speaker 1: gift card to Best Buy and CJ. How you doing
3:41
Speaker 1: this morning.
3:42
Speaker 2: I'm doing great, Sorry about that.
3:44
Speaker 1: That's okay. Technology, I think we've talked about this. This
3:46
Speaker 1: technology is an amazing there's so many great tools out there.
3:50
Speaker 1: The problem is when something happens Now it used to
3:53
Speaker 1: be like you could quickly just kind of reach over
3:55
Speaker 1: and face and now it's like, oh, we got to
3:56
Speaker 1: do a complete system reset and things. But it's great
3:59
Speaker 1: to hear from you, and you know, we we've been
4:01
Speaker 1: talking this morning about this week's conversation, which is, you know,
4:05
Speaker 1: is it kind of near retirement or even folks who
4:07
Speaker 1: kind of settle into retirement. They start thinking about, you know,
4:11
Speaker 1: do I need to be here? Should I move? And
4:13
Speaker 1: you know, things like downsizing and literally relocating entirely. What
4:17
Speaker 1: are some things that folks CJ should should be considering
4:20
Speaker 1: before making such a big decision.
4:23
Speaker 2: Yeah, good question, Sean. It's definitely a big topic, and
4:27
Speaker 2: understandably so. When you retire, your daily routine shifts, and
4:31
Speaker 2: that can really open the door to rethinking where and
4:34
Speaker 2: how you want to live. Some people feel excited about
4:38
Speaker 2: the idea of starting fresh, while others feel completely overwhelmed,
4:41
Speaker 2: especially when they start thinking about sorting through a thirty
4:44
Speaker 2: plus or forty plus years of belongings. But here's the key.
4:48
Speaker 2: This decision shouldn't be about the house itself. It's about
4:52
Speaker 2: designing a lifestyle that supports your next chapter in retirement.
4:57
Speaker 2: Start by asking yourself, what do I really want my
5:00
Speaker 2: retirement to look like? For some that might mean a smaller,
5:03
Speaker 2: low maintenance place, maybe nearby. For others that could mean
5:07
Speaker 2: chasing sunshine or grandkids across the country. And here's here's
5:12
Speaker 2: a good gut check for kind of how to think
5:14
Speaker 2: about this. How many more moves do you really think
5:17
Speaker 2: you realistically want to make in your lifetime. That's a
5:20
Speaker 2: good lens to use as you explore your options. Keep
5:25
Speaker 2: in mind that in twenty twenty five, approximately four point
5:28
Speaker 2: one million Americans are reaching age sixty five, so you
5:33
Speaker 2: have a lot of people contemplating the same thing that
5:37
Speaker 2: you are. Again, that's four point one million Americans reaching
5:41
Speaker 2: age sixty five just in the year twenty twenty five,
5:44
Speaker 2: So you're not alone as you think about housing and
5:47
Speaker 2: where to live comfortably in retirement.
5:50
Speaker 1: Talking this morning with CJ. Class and Eric Schwartz. They
5:53
Speaker 1: are our retirement planning professionals from Class Financial online, Classfinancial
5:57
Speaker 1: dot com. That's Class klaas Financial dot com. They're telephon
6:02
Speaker 1: numbers six eight four four two five six three seven
6:04
Speaker 1: and to get on the air this morning, love to
6:06
Speaker 1: have you join us the number six oh eight three
6:08
Speaker 1: two one thirteen ten. That's six oh eight three two
6:11
Speaker 1: one thirteen ten. And CJ. I think sometimes you know
6:14
Speaker 1: is is and maybe it's just kind of the fact
6:17
Speaker 1: that we talk about and the show is called Money
6:19
Speaker 1: in Motion. We think financial, but it's not just a
6:21
Speaker 1: financial decision. As a matter of fact, there's there's more
6:24
Speaker 1: to it than just the house itself. It's really about
6:27
Speaker 1: things like lifestyle, isn't it.
6:29
Speaker 3: Yeah, And actually, Sean, I'm gonna I'm gonna take this
6:31
Speaker 3: well because we're gonna give CJ a little break here
6:34
Speaker 3: and now that he's on the air. Yes, before I
6:37
Speaker 3: jump into that though, I just that number just really
6:40
Speaker 3: floored me. Four point one million people reaching age sixty five. Unfortunately,
6:44
Speaker 3: it doesn't sound like the houses in those retirement hotspots
6:47
Speaker 3: are getting any cheaper. It's a lot of competition trying
6:51
Speaker 3: to get into one spot. But let's let's look at
6:54
Speaker 3: some of the reasons here why why relocating isn't really
6:58
Speaker 3: isn't really just about about money. It's about other things, right.
7:01
Speaker 3: Family dynamics are a big one. You'll hear plenty of
7:04
Speaker 3: suggestions from friends, your kids, even your neighbors about where
7:08
Speaker 3: you should retire, but remember this is your decision. It's
7:11
Speaker 3: your retirement. If being near kids or grandkids is a
7:15
Speaker 3: big priority, though, maybe you want to make sure you
7:17
Speaker 3: can catch those soccer games or be around for the holidays,
7:20
Speaker 3: that can definitely guide your location search. I mean, we
7:23
Speaker 3: see clients do this all the time. We've seen them
7:25
Speaker 3: move places like Idaho, Montana, Virginia, just to be near family,
7:30
Speaker 3: So that's a big factor for folks. Another one is taxes.
7:34
Speaker 3: This one is it's a one that a lot of
7:36
Speaker 3: people don't think about right away, but state income tax
7:39
Speaker 3: varies obviously state by state, and it can really affect
7:43
Speaker 3: your retirement income. Some states don't tax Social Security or pensions,
7:48
Speaker 3: and that can be a huge plus and a big
7:50
Speaker 3: boost to your your financial situation. Keep in mind, though,
7:54
Speaker 3: state income moving to a state with no state income
7:57
Speaker 3: tax doesn't always mean cheaper living. Sales tax, property taxes,
8:02
Speaker 3: they might be hired to make up for it. Remember,
8:05
Speaker 3: they still do have to operate the state, so they
8:08
Speaker 3: are getting revenue from somewhere. But it's still an important
8:12
Speaker 3: thing to think about, and we actually, for our Wisconsin listeners,
8:17
Speaker 3: we've recently seen some pretty big changes to the way
8:20
Speaker 3: that retirement income is taxed here in the state of Wisconsin,
8:25
Speaker 3: to the advantage of retirees, so check into that. The
8:29
Speaker 3: third one I want to talk about here is the
8:31
Speaker 3: cost of living. So you want to stretch your retirement
8:34
Speaker 3: dollars obviously as long as you can, so comparing the
8:39
Speaker 3: cost of groceries, healthcare, housing in different areas, it can
8:42
Speaker 3: really help you identify where your money will go, will
8:45
Speaker 3: go the furthest and this is something we help clients
8:47
Speaker 3: with all the time. I mean, I can think of
8:50
Speaker 3: a client right now who is trying to decide between
8:52
Speaker 3: moving to two different states. They had kids in two
8:55
Speaker 3: different spots, and they were trying to decide which one
8:57
Speaker 3: they wanted to go to, and we actually, you know,
9:00
Speaker 3: side by side retirement plans and we can figure out
9:03
Speaker 3: the difference and cost of living by you know, by
9:06
Speaker 3: percentage and actually build that out for them and help
9:08
Speaker 3: them make that decision. US News and World Report they
9:13
Speaker 3: did an analysis back in twenty twenty four looking at
9:17
Speaker 3: the best value states, and they compared the one hundred
9:21
Speaker 3: and fifty largest cities in the US as potential retirement spots.
9:25
Speaker 3: They weighed data like housing, affordability, happiness, desirability, retiree taxes,
9:31
Speaker 3: the job market, and access to quality health care. And
9:35
Speaker 3: their conclusion actually suggested that Fort Wayne, Indiana in Huntsville, Alabama,
9:40
Speaker 3: they scored the top two spots. So definitely do your
9:43
Speaker 3: own research and look at what is most important to you.
9:46
Speaker 3: But those two spots scored well on the on the
9:49
Speaker 3: best value evaluation.
9:51
Speaker 1: Seems weird to say where you live. I live in
9:53
Speaker 1: Fort Wayne. It just seems like a weird I don't
9:55
Speaker 1: know why it shouldn't job out of me, but that
9:58
Speaker 1: is it. That is I love the I love the
9:59
Speaker 1: re search and in getting some of that analysis about
10:04
Speaker 1: Eric Schwartz of Fort Wayne. No, it just doesn't riddle
10:08
Speaker 1: off the tongue. Madison is. No, we'll actually talk. You know,
10:12
Speaker 1: we kind of goofing on Indiana a little bit there.
10:15
Speaker 1: Alabama's definitely on nicer weather, and we're going to talk
10:18
Speaker 1: a little bit about about weather. And of course anybody
10:22
Speaker 1: that has to fire up the snowblower, I think, regardless
10:25
Speaker 1: of your agent situation, you're probably going, why am I
10:28
Speaker 1: doing this? We're going to talk about that so much more.
10:30
Speaker 1: Mentioned the website class financial dot com that's coss k
10:33
Speaker 1: l aas financial dot com recently redesigned and they make
10:37
Speaker 1: it really easy right on the website to schedule a
10:39
Speaker 1: complimentary conversation just heading over to class financial dot com.
10:42
Speaker 1: Of course, you can always set up the appointment on
10:44
Speaker 1: the over the phone at six oh eight four four
10:46
Speaker 1: two five six three seven. Don't forget that first get
10:49
Speaker 1: to know you appointment. It's going to be complementary to
10:51
Speaker 1: you again their number six oh eight four four two
10:53
Speaker 1: five six three seven. We're going to continue our conversation
10:55
Speaker 1: with Cjen Eric talk a little bit more about relocation
10:59
Speaker 1: and where should you move in retirement? Should you be
11:01
Speaker 1: considering a move in retirement. We'll get those details next
11:04
Speaker 1: as Money in Motion with Coss Financial continues right here
11:06
Speaker 1: on thirteen ten wib A fold lines. They are open
11:10
Speaker 1: for you right now at six oh eight three two
11:12
Speaker 1: one thirteen ten. That's six oh eight three two one
11:15
Speaker 1: thirteen ten gets you right on the air with CJ.
11:18
Speaker 1: Closs and Eric Schwartz, our retirement planning professionals from Class Financial,
11:22
Speaker 1: don't forget. You can learn more about Class Financial right
11:24
Speaker 1: on their website Cossfinancial dot com. That's Coss k l
11:27
Speaker 1: aas Financial dot com. Great website to learn more about
11:30
Speaker 1: Class Financial. Sign up for that weekly Market Pulse newsletter.
11:33
Speaker 1: You can also listen back to this and previous shows
11:36
Speaker 1: podcast again. That all available to you at Cossfinancial dot com.
11:39
Speaker 1: So we have great things available to you. The telephone
11:41
Speaker 1: number six oh eight four four two five six three seven,
11:44
Speaker 1: don't forget that initial gets to know your appointment at
11:46
Speaker 1: Loss Financial. It will be complementary to you, no charge
11:49
Speaker 1: that telephone number six oh eight four four two five,
11:51
Speaker 1: six three seven. Talking about the potential for relocating in retirement,
11:56
Speaker 1: and as we're kind of getting into those those mornings, especially,
12:00
Speaker 1: we had a frost and freeze warning overnight and it
12:03
Speaker 1: gets a little bit chilly, and folks start to think, well,
12:05
Speaker 1: what about that weather and kind of being a motivator
12:08
Speaker 1: for folks to move and see Jay, what are some
12:11
Speaker 1: reasons why folks may consider a move or downsizing.
12:17
Speaker 2: Yeah, good question, Sean. Weather is certainly a biggie a
12:20
Speaker 2: lot for especially for Midwesterners, because you know, we start
12:24
Speaker 2: thinking about exactly as you said, do I really want
12:26
Speaker 2: to get out the snowblower again? Do I really want
12:28
Speaker 2: to be shoveling? And believe it or not, shoveling can
12:32
Speaker 2: be the cause of a lot of obviously slips and
12:35
Speaker 2: falls that are harmful as we get older, but also
12:37
Speaker 2: than heart attacks. So certainly considering where you're going to
12:41
Speaker 2: live in terms of the climate is a big deal.
12:44
Speaker 2: But here's a few categories that we see commonly coming
12:47
Speaker 2: up for our clients as they think about living in retirement.
12:51
Speaker 2: Health needs. So if you're dealing with joint pain or asthma.
12:54
Speaker 2: A warmer or drier climate can be easier on your body.
12:58
Speaker 2: We're already talked about kind of slip sidewalks and icy
13:01
Speaker 2: driveways and these are no joke as we get older,
13:04
Speaker 2: lifestyles and other categories. So the question is like, do
13:07
Speaker 2: you want to be outdoors more golfing, hiking, fishing? Do
13:10
Speaker 2: you want to be near a city? You know, these
13:12
Speaker 2: answers to these questions can help to narrow down where
13:16
Speaker 2: you'd like to be, you know, because you were kind
13:19
Speaker 2: of joking about Fort Wayne, Indiana or Huntsville, Alabama. But
13:23
Speaker 2: the reality is, if all you primarily care about is
13:26
Speaker 2: the cost of living, these are very affordable locations when
13:31
Speaker 2: you kind of look at it holistically from a value
13:33
Speaker 2: perspective for retirees. But there's going to be some sean
13:36
Speaker 2: that are just like you that go Fort Wayne that's
13:39
Speaker 2: never going to move to Fort Wayne, right, And then
13:41
Speaker 2: there's other people who go no, no, no, no, it's not about
13:44
Speaker 2: where you live. I can travel to go visit family members.
13:46
Speaker 2: I just wanted to be affordable for my life and lifestyle.
13:50
Speaker 2: So just remember that is one of the I call
13:53
Speaker 2: it the beauties of the United States that we forget
13:55
Speaker 2: about is that we can pretty easily travel state by stay,
14:00
Speaker 2: city by city, buy and sell things on an open market,
14:04
Speaker 2: and make decisions. That's why when people often say I'm stuck,
14:08
Speaker 2: I can't do anything, that one of the most helpful
14:10
Speaker 2: things you can say to them is no, you're not.
14:14
Speaker 2: Just move or change or do something now. I don't
14:18
Speaker 2: want to sound overly cavalier everybody. I do understand that
14:21
Speaker 2: there are certain things that can impact people, like physical
14:25
Speaker 2: ailments that you can't just escape from. Right, freedom and
14:28
Speaker 2: liberty doesn't fix your sickness, but many times there are
14:32
Speaker 2: other things in lives that our brain is the jail
14:34
Speaker 2: that we are living in, and we need to remember
14:36
Speaker 2: that we have options. So think about that. And then
14:39
Speaker 2: obviously sunshine is a huge factor. So we see a
14:42
Speaker 2: lot of our clients retiring to Arizona, New Mexico, California, Florida.
14:49
Speaker 2: You know, these are commonplaces where people want to get
14:52
Speaker 2: more sunshine more days of the week, and that can
14:55
Speaker 2: also help help with seasonal depression and other struggles people
14:58
Speaker 2: might have. Kind of we call it the snowbird options.
15:02
Speaker 2: Some people aren't ready to fully commit to a new
15:04
Speaker 2: place so they kind of snowbird back and forth. We
15:06
Speaker 2: have a lot of clients in the Madison region who
15:08
Speaker 2: do this. They have a place in Florida or a
15:10
Speaker 2: place in Tennessee and they go there for the winter
15:13
Speaker 2: months and then come back up here for the summer months,
15:15
Speaker 2: because I think we can all attest Madison's pretty darn spectacular.
15:20
Speaker 2: Like most of the months of the year, it's really
15:22
Speaker 2: only those December, January, February, March months that get that
15:26
Speaker 2: get pretty cold, so a lot of our clients will
15:28
Speaker 2: just escape for those for those colder months.
15:31
Speaker 1: Do you see do you see clients as a still
15:32
Speaker 1: thing to get to get the RV and do some
15:35
Speaker 1: road tripping during those during those cold months. Do we
15:37
Speaker 1: still see that at all or is that something that's
15:39
Speaker 1: kind of faded.
15:40
Speaker 2: A little bit. Yeah, no, good question. For sure, we
15:42
Speaker 2: do because there's we call them, you know, quote unquote
15:45
Speaker 2: rving people, So people who just enjoy the rving experience
15:48
Speaker 2: and traveling a lot. We actually have some clients that
15:51
Speaker 2: will literally sell their home, buy an RV, and then
15:54
Speaker 2: travel permanently kind of you know, for the first few years.
15:58
Speaker 2: A week now. But what I would say as it
16:00
Speaker 2: relates to that is it's it's not it's a seasonal thing, right,
16:05
Speaker 2: It's like you have to be young enough to do
16:07
Speaker 2: it and not fall asleep at the wheel and deal
16:09
Speaker 2: with the stress of driving basically a house down the highway.
16:13
Speaker 2: And then we tend to find that even for those
16:16
Speaker 2: who love it and do it for a season, it's
16:18
Speaker 2: only a season because then as they age, they want to,
16:20
Speaker 2: you know, put down roots and not have to travel
16:22
Speaker 2: and deal with the stress as much. So I see
16:24
Speaker 2: a lot of different things. And that's again it goes
16:26
Speaker 2: back to the beauty of having freedom and choice. There's
16:29
Speaker 2: a lot of different ways to affordably live in retirement.
16:33
Speaker 2: You just have to decide are my expectations of retirement
16:38
Speaker 2: out of alignment with the finances of my retirement. We
16:42
Speaker 2: could do a whole show on that topic alone.
16:44
Speaker 1: It definitely you've got to do one.
16:47
Speaker 2: Exactly exactly. That's what we that's what we help people do,
16:50
Speaker 2: is like, hey, here, the good news is you can retire.
16:52
Speaker 2: The bad news is it may not be the way
16:54
Speaker 2: that you want to, right, yes, And so other people
16:57
Speaker 2: will say, well, I won't retire until I get to
16:59
Speaker 2: hear and I okay, just plan to work to eighty five.
17:01
Speaker 2: That's not you get the idea. It's there's constraints, but
17:05
Speaker 2: you are the constraint. Typically there can be some outside constraints,
17:10
Speaker 2: but typically it's our brains that act as a constraint
17:13
Speaker 2: of living comfortably in retirement.
17:15
Speaker 1: Talking this morning with CJ. Closs and Eric Swartz, retirement
17:17
Speaker 1: planning professionals from Class Financial website Class Financial dot com.
17:21
Speaker 1: That's Class Financial dot com. CJ thinking of, you know,
17:24
Speaker 1: kind of you know, restraints and things that kind of
17:27
Speaker 1: can make us feel freer and more liberated. Sometimes simplifying
17:31
Speaker 1: and downsize and can really have that effect, can't it exactly?
17:34
Speaker 2: Yeah, that's that's a great segue, Sean, because it is
17:37
Speaker 2: if we think of our our expectations as the constraint
17:41
Speaker 2: to our comfortable retirement, then we need to think about
17:43
Speaker 2: ways to reduce expenses or simplify. So so let's start
17:48
Speaker 2: there reducing expenses. Even if your mortgage is paid off,
17:51
Speaker 2: maintaining a big house can be expensive, heating, cooling, property taxes,
17:55
Speaker 2: all of that. It adds, it adds up. I actually
17:58
Speaker 2: needle at my wife quite often saying we are not
18:00
Speaker 2: going to be in this house when the kids leave,
18:02
Speaker 2: because it's just too big. Right now, I'm not making
18:05
Speaker 2: that as a firm commitment because my wife is also
18:07
Speaker 2: needling back at me, but the idea being, if that
18:10
Speaker 2: were ever a constraint to our comfortable retirement, the house
18:13
Speaker 2: has got to go. Another one would be utility bills.
18:17
Speaker 2: So a smaller space generally leans means lower bills. And
18:21
Speaker 2: this is again, this is no joke. If you don't
18:24
Speaker 2: believe me, think of your first apartment like a heating
18:28
Speaker 2: bill and now your home heating bill. Granted, inflation has
18:32
Speaker 2: adjusted that number as well, but bigger homes, bigger spaces,
18:35
Speaker 2: bigger costs maintenance. Again, we have a smaller place, your
18:39
Speaker 2: maintenance costs tend to go down because there's just not
18:41
Speaker 2: as much stuff that can go bad. Listen, we have
18:44
Speaker 2: a daughter who's a sophomore in college. Now her room
18:47
Speaker 2: sits empty, and yet amazingly we still got to heat
18:50
Speaker 2: the space and her herr shower door fell off. And
18:54
Speaker 2: it's on the one hand, I'm going, I don't need
18:56
Speaker 2: to fix it, nobody's showering there. On the other hand,
18:58
Speaker 2: I'm going, no, I got a You see the idea,
19:01
Speaker 2: even these empty spaces have to be maintained you know,
19:05
Speaker 2: more commonly, we're also seeing like fifty five plus communities.
19:08
Speaker 2: We're actually Eric and I would be big fans of
19:11
Speaker 2: these spaces. Some of them are more country club than
19:15
Speaker 2: they are you know, progressive living communities. So we have
19:18
Speaker 2: to decide what it is that you're looking for. But
19:20
Speaker 2: the idea being that, hey, I can move into a
19:24
Speaker 2: Capital Lakes or into an oak Wood or or at
19:27
Speaker 2: just a senior living community where I have progressive living
19:31
Speaker 2: care options. So this could be totally independent, even single
19:34
Speaker 2: family homes, down to like condos, down to apartments, down
19:39
Speaker 2: to actually skilled nursing care or memory care units inside
19:43
Speaker 2: of kind of one big unit. So this is great
19:47
Speaker 2: because it offers progressive living options and you're able to
19:51
Speaker 2: be around peers who are in similar stages of life
19:53
Speaker 2: to you. Now. Number one kickback we get from our
19:56
Speaker 2: clients about this is I don't want to go just
19:58
Speaker 2: live around a bunch of old people. I'm going to
20:00
Speaker 2: die faster. I go, wait a minute, it's actually not
20:03
Speaker 2: what these communities are. So I would encourage people who
20:06
Speaker 2: are thinking that slow down and maybe visit them, because
20:10
Speaker 2: there's plenty of people who are doing this in their
20:13
Speaker 2: mid fifties. Just to have the progressive living options and
20:17
Speaker 2: as they move forward.
20:18
Speaker 1: I know one of the ones you mentioned in particular
20:20
Speaker 1: right downtown, kind of right in the heart of like
20:22
Speaker 1: exactly real.
20:23
Speaker 2: That's actually if you hear the Capitol Lakes response to that,
20:27
Speaker 2: it's because there's a number of university professionals, professors, people
20:31
Speaker 2: who teach at the university, and other professionals who have
20:34
Speaker 2: worked downtown who say, I don't want to escape downtown.
20:37
Speaker 2: I love the life of downtown, but I want to
20:40
Speaker 2: have progressive care options. So a lot of options in
20:43
Speaker 2: the Madison area. And I realize this show reaches more
20:46
Speaker 2: than just the Madison area, So wherever you live, in
20:48
Speaker 2: whatever community you live, I encourage you kind of open
20:52
Speaker 2: back up your mind. This is not the nursing home
20:55
Speaker 2: of the past, right, that's what our brains say. It's
20:57
Speaker 2: a nursing home. No, no, no, no, that is not at
20:59
Speaker 2: all what is. So those are options to consider. And
21:03
Speaker 2: then you know, we talked about where people are moving to,
21:05
Speaker 2: but we often see them moving to places that have
21:08
Speaker 2: lower state income taxes. So even here in Wisconsin, this
21:11
Speaker 2: could be moving out of Dane County where you get
21:13
Speaker 2: lower property taxes, and so you know, those are options
21:17
Speaker 2: for people. If you want to stay in the Wisconsin area,
21:19
Speaker 2: maybe close to Madison, you can get outside of Dane
21:22
Speaker 2: County and often the costs go down, and then you know,
21:27
Speaker 2: rankings can also be deceiving, so we would encourage you.
21:30
Speaker 2: We find that typically what brings most of our retirees
21:35
Speaker 2: the greatest joy is the relationships that they have in
21:40
Speaker 2: the community where they will move. This isn't always the case,
21:44
Speaker 2: but often that is the case. So said another way,
21:47
Speaker 2: if moving to I don't know Tennessee or Florida is
21:52
Speaker 2: financially the best option, but all of your family is
21:56
Speaker 2: in I don't know, Massachusetts, and you're going to pay
22:00
Speaker 2: an extra eight percent in taxes and living costs to
22:03
Speaker 2: live there, But you can afford it by all means
22:07
Speaker 2: live in here your family. Yes, yes, for crying out loud,
22:10
Speaker 2: what is the money for if we're not going to
22:14
Speaker 2: kind of value those relationships that bring us joy throughout life.
22:16
Speaker 2: Now again, I hear what I said, if you can
22:19
Speaker 2: afford it, because you do have options, and often our
22:22
Speaker 2: brains are the constraints. So if everybody in your family
22:25
Speaker 2: is in New York City and you can't afford to
22:27
Speaker 2: live there then that's just what it is. But but
22:30
Speaker 2: that's often not the case. You just need to slow
22:32
Speaker 2: down and do some planning.
22:33
Speaker 1: Great perspective for sure. Talking this morning with CJ. Claus
22:36
Speaker 1: and Eric Schwartz, our retirement planning professionals from Class Financial Online,
22:40
Speaker 1: Class Financial dot com that's Class k l a a
22:43
Speaker 1: s Financial dot com and Eric. As we talk about
22:45
Speaker 1: this stuff, you know, sometimes folks are kind of feeling
22:47
Speaker 1: that it's to simplify, which what are some of those
22:50
Speaker 1: steps people should be taking to make sure that that
22:53
Speaker 1: it's the right decision, that they're making the right call there.
22:56
Speaker 3: Yeah, it's a big decision. And this is where this
22:58
Speaker 3: is where you want to slow down a bit and
23:00
Speaker 3: really assess your current lifestyle versus what you think you're
23:03
Speaker 3: going to need. So just a couple of questions to
23:06
Speaker 3: ask yourself, you know, really basic things like how many
23:09
Speaker 3: bedrooms and bathrooms do I truly need? Right? Like CJ
23:13
Speaker 3: just gave us a great example. You don't want to
23:14
Speaker 3: have extra bathrooms because the doors just fall off the
23:16
Speaker 3: shower and what do you do you want.
23:20
Speaker 2: To watch it? Oh man, now you're making sound, you know, vain,
23:28
Speaker 2: But yeah.
23:32
Speaker 3: All right, you also want to ask yourself, is my
23:34
Speaker 3: home currently accessible? Do I have laundry on the main floor?
23:36
Speaker 3: Do you have a bedroom on the main floor? I mean,
23:38
Speaker 3: these are big things as you age, and you know,
23:42
Speaker 3: you really you don't think about that in your in
23:44
Speaker 3: your younger years, but as you age, you know, are
23:47
Speaker 3: there stairs everywhere? Do you have you know, a couple
23:49
Speaker 3: of steps up here, a couple steps down to the
23:51
Speaker 3: living room there? That becomes a bigger issue. Will I
23:55
Speaker 3: still use a basement or is it just storage for
23:57
Speaker 3: stuff I haven't looked at in years? This is probably
24:00
Speaker 3: good question for for anybody, not just retirees, but you know,
24:04
Speaker 3: start thinking about the space you have now and determine
24:08
Speaker 3: whether or not it's something that you actually need in
24:10
Speaker 3: the future. What size garage makes sense in retirement? How
24:14
Speaker 3: much yard do I want to do I want to
24:16
Speaker 3: care for? Am I planning to keep a pet? These
24:19
Speaker 3: questions all help you kind of cut through the what
24:21
Speaker 3: ifs and give you a clear picture of what your
24:24
Speaker 3: your future needs might look like.
24:27
Speaker 1: Doug This Morning with Eric Swartz and CJ. Closs out
24:29
Speaker 1: retirement planning professionals from Class Financial Online, Class Financial dot Com.
24:33
Speaker 1: That's Closs k L A as Financial dot com tell
24:36
Speaker 1: number six O eight four four two five six three seven,
24:39
Speaker 1: No charge that initial get to know your appointment det
24:41
Speaker 1: Class Financial. It will be complimentary to you again their
24:44
Speaker 1: number six oh eight four four two five six three seven.
24:47
Speaker 1: We'll do our conversation with Eric and CJ. We're going
24:49
Speaker 1: to talk on the big one that I think a
24:51
Speaker 1: lot of folks are going. But what about healthcare and
24:53
Speaker 1: other services? We'll get the details on that wall through
24:55
Speaker 1: the class quiz question the week next as Money in
24:57
Speaker 1: Motion with Class Financial continues right here on thirteen wib
25:00
Speaker 1: A talking with our retirement planning professionals, Eric Schwartz and CJ. Closs.
25:05
Speaker 1: Of course you can learn more online class financial dot com.
25:07
Speaker 1: That's Class k l a A ask financial dot com
25:10
Speaker 1: and they're teleph number six O eight four four two
25:12
Speaker 1: five six three seven And Eric, what about healthcare and
25:15
Speaker 1: other things that we need? You know, they were kind
25:19
Speaker 1: of used to where we currently live.
25:22
Speaker 3: Yeah, that's a great question. I think something we we
25:24
Speaker 3: often forget about here in southern Wisconsin because we are
25:28
Speaker 3: pretty spoiled to have some great healthcare systems available to us.
25:32
Speaker 3: But when you're thinking about where you need, where you
25:34
Speaker 3: want to retire, you need to think about whether or
25:37
Speaker 3: not you're close to doctors or specialists, and if you're
25:40
Speaker 3: even if you are going to be in a new
25:43
Speaker 3: area that has access to these things. Are you ready
25:46
Speaker 3: to find all new ones or is it more important
25:49
Speaker 3: for you to keep your current providers and stay where
25:53
Speaker 3: you are? I mean, this is a big, big consideration.
25:56
Speaker 3: Another one would be just your everyday amenities right? Is
25:59
Speaker 3: grocery show upping easy? Are your hobbies? Are your volunteer
26:02
Speaker 3: opportunities close by? This is what often leads people to
26:06
Speaker 3: move to the villages down down in Central Florida that's
26:10
Speaker 3: so called Disney World for retirees because they've built a
26:16
Speaker 3: place where everything is nearby and easy to access. Transportation
26:21
Speaker 3: access is another big one. Are you still driving? If not,
26:26
Speaker 3: you know you need to make sure you have either
26:27
Speaker 3: public transportation, a ride service, or or that you are
26:32
Speaker 3: actually close to family that can can kind of help
26:34
Speaker 3: you get to your appointments, get to the grocery store
26:38
Speaker 3: through those those kinds of things. Home responsibilities. Are you
26:42
Speaker 3: ready to hand off yard work, snow removal? Do you
26:45
Speaker 3: still enjoy it? Maybe you want to move somewhere where
26:47
Speaker 3: there's no snow right. We see clients do that all
26:50
Speaker 3: the time. So thinking about kind of the limiting factors
26:54
Speaker 3: that your that your home imposes on you. And finally,
26:59
Speaker 3: equity in your home. So if your home is currently
27:02
Speaker 3: paid off, you know, could selling it free up some
27:05
Speaker 3: cash for your retirement lifestyle and give you some more flexibility.
27:10
Speaker 3: So there's really really a lot of topics to consider
27:13
Speaker 3: when you're when you're making this this big decision.
27:16
Speaker 1: It is a lot to consider. And one of the
27:18
Speaker 1: great things too, if you miss any part of the program,
27:19
Speaker 1: you want to hear back some of those considerations. Listen
27:22
Speaker 1: to it. Maybe you want to share it with somebody.
27:23
Speaker 1: If you head on over to classfinancial dot com, you
27:25
Speaker 1: can listen back to this in previous shows podcast. You
27:28
Speaker 1: can also schedule a complimentary conversation right from the website
27:31
Speaker 1: DELPHO number six So eight four four two five six
27:33
Speaker 1: three seven and CJ. If somebody is considering downsizing, how
27:37
Speaker 1: do you know, Like you know, I think a lot
27:39
Speaker 1: of us I'm not sure it's it's the right time.
27:42
Speaker 1: How do we how do we do that? How do
27:44
Speaker 1: we approach that question?
27:46
Speaker 2: Yeah, that's a that's a smart question to be asking
27:48
Speaker 2: yourself is am I really ready for this move? We
27:52
Speaker 2: have seen some of our clients believe it or not,
27:54
Speaker 2: as much as we are encouraging to have an open mind.
27:57
Speaker 2: We've seen some who have made the move out of
27:59
Speaker 2: their single family residences into either progressive living communities or
28:03
Speaker 2: an apartment and then actually end up moving back because
28:06
Speaker 2: they recognized they were not ready for that move. So,
28:10
Speaker 2: and there could be some real financial elements associated with this,
28:13
Speaker 2: like rising costs. So depending upon your mortgage rate and inflation,
28:17
Speaker 2: you might actually pay more for a smaller home than
28:20
Speaker 2: what you're in right now. You know. The example proferbabial
28:23
Speaker 2: example here would be we have clients who are in
28:25
Speaker 2: the Rockford, Illinois area, and they have paid off mortgages
28:29
Speaker 2: might be worth a few hundred thousand dollars, and it's
28:32
Speaker 2: it's a bigger home for them, right, maybe twenty five hundred,
28:35
Speaker 2: three thousand square feet. They go, it's just us, we
28:37
Speaker 2: don't need this, so let's move to I'm going to
28:39
Speaker 2: use a simple example to Madison and buy a smaller home. Well,
28:44
Speaker 2: if you know anything about Madison, Madison's more expensive than Rockford,
28:48
Speaker 2: and so a smaller home could be five or six
28:51
Speaker 2: hundred thousand dollars instead of the say three hundred thousand
28:53
Speaker 2: dollars in Rockford. And so then they've got a mortgage
28:56
Speaker 2: and they've gotten you know, mortgage payment property to all
29:00
Speaker 2: of that. So you see the idea just downsizing doesn't
29:04
Speaker 2: by definition mean that you are going to pay less cost.
29:08
Speaker 2: We're also seeing really low inventory. I mean, if there's
29:10
Speaker 2: any real estate agents out there right now, you guys
29:12
Speaker 2: can call in and basically we're running out of time here,
29:16
Speaker 2: but you can chime in on how low the inventory
29:18
Speaker 2: is in housing in certain cities like Madison. And therefore,
29:22
Speaker 2: when inventory is low and demand is high, what does
29:24
Speaker 2: that do to bryce as well? It keeps them pretty stable,
29:27
Speaker 2: if not rising, and so that can make affordability difficult.
29:31
Speaker 2: And then we're also seeing multi generational living. So sometimes
29:34
Speaker 2: our clients will say, I love the idea of downsizing
29:37
Speaker 2: and maybe moving to a cheaper community, but I've got
29:39
Speaker 2: family living with me in Madison or living with me
29:43
Speaker 2: in Florida. So that'll often keep them tied into their
29:46
Speaker 2: current housing. And then obviously there's some people who just
29:49
Speaker 2: say I just want to age in place, I just
29:51
Speaker 2: want to stay where I am. I just want to
29:54
Speaker 2: kind of like, enjoy my home, what I'm used to,
29:58
Speaker 2: my neighbors, all of that, and so they will just
30:00
Speaker 2: age in place and then bring the resources into their
30:03
Speaker 2: home as they need them so that they can stay
30:05
Speaker 2: there as long as possible. My parents are a great
30:09
Speaker 2: example of this. They live down in a Cherry Valley,
30:13
Speaker 2: Illinois or the Rockford, Illinois area. They have lived in
30:16
Speaker 2: their home since basically I was born and I'm mid
30:19
Speaker 2: my mid forties everybody, if you want to know, so,
30:21
Speaker 2: they've been there quite a long time. And my parents
30:23
Speaker 2: are getting older and could certainly justify downsizing or moving
30:26
Speaker 2: to a different community since their core family aka us
30:30
Speaker 2: kids and our spouses and children are not in that
30:33
Speaker 2: community anymore. But they have chosen to stay. They love
30:37
Speaker 2: their neighborhood, they love their neighbors, they love their home,
30:39
Speaker 2: and they've just started to hire out all of the
30:42
Speaker 2: resources that they need to maintain the exterior and the
30:45
Speaker 2: lawn and some of the inside things. And so you
30:48
Speaker 2: get the idea, everybody, there is actually no one size
30:51
Speaker 2: fits all, But we would encourage you to work with
30:54
Speaker 2: your financial advisor to start talking about what are the
30:57
Speaker 2: best options that you can afford.
30:59
Speaker 1: A lot of great options, a lot of great opportunities.
31:00
Speaker 1: It's a great day. Also to start the conversation, learn
31:03
Speaker 1: more about Class Financial their website coss financial dot com.
31:06
Speaker 1: That's coss k l aa as Financial dot com. Tell
31:09
Speaker 1: number six oh eight four four two five six three seven.
31:12
Speaker 1: No charge for that initial get to know a you
31:14
Speaker 1: appointment at Class Financial. It will be complimentary to you
31:18
Speaker 1: again their number six oh eight four four two five
31:21
Speaker 1: six three seven. Want to hold on to a telephone
31:23
Speaker 1: number now because it's time for the Class Quiz Question
31:26
Speaker 1: of the week. It works like this, in just a
31:27
Speaker 1: moment to ask you the class Quiz question the week.
31:29
Speaker 1: You will then have thirty minutes from the inter Today's
31:31
Speaker 1: program to call the Class Financial office at six oh
31:33
Speaker 1: eight four four two five six three seven. If you
31:36
Speaker 1: are the first caller with the correct answer, you'll win
31:38
Speaker 1: this week's prize, which is a twenty five dollars gift
31:41
Speaker 1: card to best buy. This week's class Quiz Question the
31:44
Speaker 1: week is this in twenty twenty five, how many Americans
31:49
Speaker 1: will be reaching age sixty five? Is it two million
31:52
Speaker 1: or four million? Telephone number six oh eight four four
31:55
Speaker 1: two five, six three seven. First call with correct answer
31:57
Speaker 1: win the twenty five dollars gift card two Best Spy
32:00
Speaker 1: CJ Eric. It's always great chatting with both of you, guys.
32:03
Speaker 3: Have a great day, Thanks Sean, Thanks Sean.
32:05
Speaker 1: Take care guys. I've got doctor Mardi Greer next year.
32:08
Speaker 1: On thirteen ten WIB eight