that is the nature of the beast there and yeah always a busy time over there in your household i know you're gonna have to split afterwards but appreciate you taking time out of your schedule today to spend with the listeners let's go ahead and dive in there's a term called dead money and those are assets that aren't performing or could be working harder well now with inflation running around three and a half percent the conversation might need a change if these higher rates do continue are they going to trigger some money moves and if so what could they potentially be Yeah,

look, we come across dead money in different, let's say, sizes.

And when I say shapes, I should say account types.

We do see it where there's money sitting idle.

And look, there's a certain amount of cash that you have to have on hand, like true cash, emergency fund and operating fund cash.

But then after that, we need to make sure these dollars are productive.

And then we have to make sure that they're tax efficient as well.

John, how do you guys, you and the team at Matthew James Tax and Wealth Management, help clients manage the sources and timing of their taxable income leading up to and throughout retirement?

John, when somebody comes in with that assumption, how do you help them understand the real cost of health care and retirement and then factor that expense into the plan?

know the one thing that we look at too is whenever someone's trying to retire early it's what's your health insurance plan before 65 right and look there's some people that have you know an idea of what they were going to do or thinking what the expense was going to be some people forgot about it completely and that's that's a thing that you must calculate to retire successfully so from there what we have to look at is okay what options do you have you know some people look at you know utilizing cobra some look people looking at uh going on the marketplace maybe one person retired the other person's still working potentially they can get the health insurance under the one that's still employed that could be beneficial you know there's other options these meta share type plans but you know that's for a certain group individuals you want to make sure the right person for that it does save money but ideally you want to do the right thing calculate the right way so what we do is we we bring in a couple people that they focus on health insurance and Medicare benefits things like that and we let them take the the lead on it that's not our specialty I know just enough to be dangerous but I'd rather have someone that focuses on on that so we have some specialty things that we do in office but we also have partners that we refer people to that do other specialty type work in the financial world that could be banking that could be certain types of investment vehicles we give people access through by hey look go go see you know i'm just gonna use the word bob name bob go see bob we have a referral network you know if somebody comes in that's a business owner and they manufacture a lot of things well look you might be eligible for R&D credits I have a guy to Houston you need to talk to maybe you have let's say a lot of rental real estate and you're worried about vulnerability in the event if you get into a lawsuit where you know what's your exposure or your personal exposure where they could potentially come after you so I have a guy named Jeff That's his actual name out of Dallas.

I send people to and so he sets of different entities Between your the rental that you own and you your household personally to eliminate the exposure of a lawsuit So whenever you have a high net worth and you're renting out These locations to let's call it strangers people.

You don't know they're just they're part-time tenants or even long-term tenants you have to protect yourself and At all measures.

So we look at, you know, making sure you have the proper insurance.

We have to make sure that you have the proper legal entity set up to create a let's call it a force field so they cannot figure out who you are in that event.

And look, sometimes people find out about we know about this and we just refer them to that.

For those high net worth individuals, whether they're W-2 employees or what have you, what can they do to make sure that Uncle Sam isn't as noisy a business partner in their accounts as he could be?

So this raises a practical question, John, who would fill that role? And for somebody that's never planned for anything like this, what should they put in place before that time comes where they might actually need help?

Yeah, I mean, look, from there, I mean, it's a matter of hiring a team of professionals.

When it comes down to like that extended care, long-term care, I actually have an aunt.

I was actually riding my motorcycle, that's probably about three weeks ago, ended up going to False River.

And she, my aunt actually lives out there, but I like to just to go draw a ride on the weekends.

And i decided let me go down her particular street she lives right off the main highway and she just so happened she was walking outside so stopped over we talked she was showing me some updates that she's doing to the house unfortunately my uncle passed away last year and so it's it's she's like man this house is just a little too much From an upkeep standpoint, I'm trying to decide what I want to do.

I was looking at going into a home for retirees.

If somebody came into a lot of money, a windfall, John, you know, whether it is a rookie contract or an inheritance or something like that, what are some things that they probably shouldn't do?

When it comes to retirement planning, John, what questions can AI help answer? And when should a human advisor get involved?

Look, I mean, AI is a great research tool when you can do a very significant deep dive on the information that you're trying to find.

Now, there's certain things they probably won't have access to because some of that information is locked behind a door.

But the key thing is you can have a framework and you can do due diligence and you can look at options out there.

You could do budgeting.

I mean, there's so many things that you can research using AI.

We use it a lot, too, when we're evaluating different things or maybe what we want to put a bunch of facts about what we're offering on the table or maybe something that someone brings us we want to do a little bit of research on a particular subject or particular strategy or particular investment and so we just want to measure these things and ideally use it as an information gathering tool don't use it to make decisions for everything so what you want to do is talk to a licensed professional, seek counsel to get information to put yourself in the right position.

In retirement, many people do a good job planning for the necessities like housing and healthcare, those monthly expenditures, but how do you help clients account for those lifestyle expenses so that they can enjoy retirement without worrying about overspending?

that is the nature of the beast there and yeah always a busy time over there in your household i know you're gonna have to split afterwards but appreciate you taking time out of your schedule today to spend with the listeners let's go ahead and dive in there's a term called dead money and those are assets that aren't performing or could be working harder well now with inflation running around three and a half percent the conversation might need a change if these higher rates do continue are they going to trigger some money moves and if so what could they potentially be Yeah,

look, we come across dead money in different, let's say, sizes.

And when I say shapes, I should say account types.

We do see it where there's money sitting idle.

And look, there's a certain amount of cash that you have to have on hand, like true cash, emergency fund and operating fund cash.

But then after that, we need to make sure these dollars are productive.

And then we have to make sure that they're tax efficient as well.

John, how do you guys, you and the team at Matthew James Tax and Wealth Management, help clients manage the sources and timing of their taxable income leading up to and throughout retirement?