We've Got $1.1 Million, but Our Advisor Never Talks About Any of This

A wife wrote in to our live show with a question that stopped the room. Her advisor of 15 years had been brushing off every question that actually mattered.

Read the full article: https://news.americanretirementadvisors.com/1-million-but-advisor-never-talks-about-this/

American Retirement Advisors helps families in Arizona and Nevada navigate healthcare, retirement income, and inheritance planning.

Transcript

SPEAKER_00 0:01

Welcome to the American Retirement Advisor, coming to you from One to Three Z Studios. Real stories, real strategies, and straight talk about healthcare, retirement income, and inheritance planning. I'm Ian Schaefer, joined with Eddie and Betty. Let's get into it.

SPEAKER_02 0:16

The second caller on last week's Fiscal Fridays came from a woman named Candy. She wrote in on behalf of herself and her husband John. The subject line of her note said everything. We've got$1.1 million, but our advisor never talks about any of this. Ian Schaefer was sitting behind the cameras when his father read it out loud. The room got quiet. And then David said something Ian has heard him say a hundred times, but never quite like this. Looks like we may have a communication issue here.

SPEAKER_01 0:46

Here's what Candy wrote. She and John have been with the same financial advisor for about 15 years. He manages most of their money. She thinks he's done fine with the investments. But then a friend mentioned Roth conversions. Candy asked her advisor about it. He brushed it off. She asked about taxes when they start taking Social Security plus their withdrawals. He said, we'll figure it out when we get there. And then her mom passed away last year. The beneficiaries were wrong. There was no plan. Probate took nine months. And Candy realized she and John don't have a plan either. They have a portfolio, but she doesn't think it's the same thing. She's right, it's not.

SPEAKER_02 1:27

David Schaefer didn't start with the Roth question or the estate plan. He started with the brush-off. And this is the part that stuck with Ian. When your advisor brushes you off, he told the room, to me, that's a red flag. An important question to you is an important question to you. Doesn't matter what they think. Their role is to support you and get you the information you need so you make your own decision. He paused for a beat, then added, I'm not so happy with the person that she's allowed to dismiss something that's important to her. That word allowed landed hard. Because it's true. Most people don't fire their advisor. They just stop asking questions. And that's worse.

SPEAKER_01 2:10

This is the distinction Candy made on her own, and it's the one most people miss. Having a million dollars managed by someone is not the same thing as having a retirement income plan. A portfolio tells you what you own. A plan tells you what happens next, what income comes from where, what taxes you'll owe when you start withdrawing, what happens to your money if you get sick, what happens to it when you're gone, who gets what and when and how. Candy and John had the first thing, they didn't have the second. And their advisor of 15 years had never brought it up.

SPEAKER_02 2:48

What really pushed Candy to write in wasn't the Roth question, it was her mom's death. David Schaefer got serious here. When somebody passes away, if you're ahead of it and you do a little preparation, what you'd like to leave behind is happy memories and knowing that you didn't leave a mess behind. He used an analogy that made the whole audience nod. Remember when we were kids and we left our room a mess and our parents came in screaming? And then when we were parents, we screamed at the kids because they left it a mess. That's kind of what happens when folks say they'll take care of it. That's not a positive memory.

SPEAKER_01 3:24

Without a will, without the right beneficiary designations, without someone organizing the accounts, the average estate sits in probate for 12 to 24 months. Candy's mom went through nine months of it, and now Candy is looking at her own situation and seeing the same gaps. David broke it into three pieces of homework. First, find a retirement income planner, not just an investment manager. A wealth manager builds your portfolio, a retirement income planner builds the structure around it, which dollars come out when, how to minimize tax, how to create income you can't outlive. Candy's advisor was doing the first job, nobody was doing the second.

SPEAKER_02 4:08

Second, learn about Roth conversions before you do anything. David compared a Roth IRA to the cherry on top of an ice cream sundae. It's one piece of the plan, but it can be a powerful one. You put in money you've already paid taxes on, it grows, and when you take it out, no taxes. Ever. But converting a traditional IRA into a Roth creates a tax bill today, so it has to be planned carefully and done in stages. David pointed the audience to our Roth Conversion Playbook, which walks through the IRS rules and the math.

SPEAKER_01 4:45

And third, get the inheritance plan in order now, not later. David held up the most downloaded white paper in 25 years of practice, a guide to inheritance planning called Before Death Do Is Part. It's a checklist of everything most people haven't thought about: beneficiary designations, account access, power of attorney, what your family needs to know and where to find it. Ian isn't going to tell you to fire your advisor, but if you ask a question and get brushed off, that's a signal. If you ask about taxes and hear, we'll figure it out when we get there, that's a signal. If someone in your family passes away and it takes nine months to sort out their affairs, and your own plan looks the same way, that's a signal. The question isn't whether your advisor is bad, the question is whether they're doing the whole job.

SPEAKER_02 5:36

At American Retirement Advisors, the practice is built on three pillars healthcare planning, retirement income planning, and inheritance planning. Every client gets all three. That's not an add-on, it's how they work. If you're sitting on a question your advisor hasn't answered, or if you're not sure whether you have a portfolio or a plan, give the team at American Retirement Advisors a call. No pressure, no pitch, just a conversation about whether the structure matches the money.

SPEAKER_01 6:07

A quick note before we wrap up: today's episode covers financial topics for educational purposes only. American Retirement Advisors does not provide tax or legal advice. Please consult a CPA or tax professional before making any decisions based on what you heard today.

SPEAKER_02 6:24

This is Betty with the American Retirement Advisor. Thanks for listening. If this episode helped you think differently about your retirement, share it with someone who needs to hear it. You can read the full article and browse hundreds more at AmericanRetire.com. And be sure to subscribe so you never miss an episode. We publish daily. See you next time.

SPEAKER_00 6:47

Thanks, Eddie. Thanks, Betty. Until next time, this is Ian Schaefer coming to you from 123 Easy Studios. I hope you've enjoyed this recording of the American Retirement Advisor, where we make healthcare, income, and inherence planning 123 Easy.