Legacy Planning with Pride: Why It Matters More for LGBTQ+ Families

Episode 60: Audio automatically transcribed by Sonix

Episode 60: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
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Speaker1:
Get set for a show full of education and insights with your host and advisor, Matt McClure. We recognize every family is unique. The goal of the show is to help you achieve financial freedom so you and your loved ones can have the retirement you've always dreamed of, a retirement you can take pride in. No matter who you are, where you're from, or who you love. So now let's start the show. Here's Matt McClure. Hello and welcome to another edition of Take Pride in Retirement. Matt McClure here with you, your host, your advisor, your friend, your pal and your confidants. Thanks so much for being a part of things. As always, really do appreciate all the time that you spend with little old me. Um, I really, really do. And, uh, you know, this has been going on now. Almost. Gosh, it'll be two years here, um, of the show, which is kind of crazy, but, uh, yeah, it's it's time just has flown by so far. And still a lot more time to come here on the show. Um, of course, this is the show where we celebrate the LGBTQ plus community, helping you take pride in every part of your financial journey, from budgeting and investing to even things like Social Security, Medicare, legacy planning. And the whole point is, it's not just about money. You know, this show is not just about money. Your retirement is not just about the money, it's about freedom. It's about being authentically who you are.

Speaker1:
And it's about making sure that people and causes that you love are taken care of. And that is true. You know, no matter what the future holds. Right. This episode is a big one. And we're going to talk a lot about sort of what I just alluded to here. It's why legacy planning matters so much for the LGBTQ plus community. You know, I mean, we're talking about legacy planning. And, you know, some people may say or use the term estate planning, right? You're like, I don't have much of an estate. Um, you know, I mean, even even if you have, uh, some things, like the stuff on my bookshelf back there, that's kind of my my estate, I guess, you know. But, like, even if if that's the case and that's what you have, that's your estate, that's fine. You don't have to have a big estate to do some estate planning to get wills or trusts or things like that in place. So we'll talk about that on the show this week. And, you know, if you're part of the LGBTQ plus community, the topic carries a lot of weight. It really does. Because here's the truth. You know, our relationships have not always been protected by the law. And some of us are unmarried. Some of us have blended families. Many of us have chosen family members, um, who mean the world to us, who may not be related by blood. They're related in each and every single way except by blood.

Speaker1:
People we want to care for but who aren't automatically recognized in legal documents or automatically recognized by the by the law. And so that is why legacy planning is so important. It's more than just about the money. It's about making your voice heard, protecting your loved ones, leaving behind a legacy that reflects your life and your values, and does all of that with pride. So that's going to be the bulk of the show today. I'm also going to talk to Joan Alker, who is executive director and co-founder of the center for Children and Families at Georgetown University. She's going to talk about some new research that actually shows how big Medicaid cuts that are being proposed now could have a huge impact on small businesses across the country, could affect your bottom line as well, affecting your wallet. So we'll look at that and talk to her about that research and what it shows. And so that'll be a great topic as well. As always, if you want to reach out about any of the topics that I discuss on the show this time or any time. Easy way to do that is to go to take pride in retirement. Com. Even there you've got a couple of options. You can contact me. Just click on the contact page, fill out the form that'll send an email directly to my inbox. If you're ready to take the next step in your financial journey and you want to schedule that consultation, it's absolutely free of any cost or any obligation.

Speaker1:
I encourage you to do that. Go to take pride in retirement. Once again, click schedule a consultation. It's right there on the screen. It'll take you right into my calendar, show you my real time availability, and we can get you in a place where you need to be. We'll take a deep dive into your finances. We'll look at it, go through it with a fine tooth comb. Make sure that all the T's across the eyes are dotted, and that you are in a good place to have a retirement that you can take pride in. Because no matter who you are, where you come from, who you love, how you identify, how much money you have, any of the things you deserve, a retirement you can take pride in. That is what this show is all about. And that's what I try to to live each and every day in my practice as a financial advisor, as an SSA registered Social Security analyst, as a CAS, a certified annuity specialist. Um, all of these things, uh, are so important to me because they're so important to you. It's your money. It's your life. It's your pride. And I take pride in helping people, um, you know, improve their situation each and every day. So let's get into it now. But before we, uh, sort of dive in, we got to get some inspiration for our conversations. And we'll do that with our quote of the week.

Speaker2:
And now for some financial wisdom. It's time for the quote of the week.

Speaker1:
This week's quote is an anonymous one, but it is one that is very appropriate for this week's episode of the show. And it is. This estate planning is an act of love. It's how we care for the people we cherish, even after we're gone. I love that. Estate planning is. It's an act of love. I mean, you know, we, um, of course, do the things that we do to love those who we love while we're here. But while we're gone, we can also take care of them. Right? We can plan ahead. Make sure that they are taken care of in such a way that is really just, you know, whatever we we want. I mean, it's just because we're gone. Does it mean that our wishes can't be honored? Um, as a matter of fact, it's exactly the opposite. And that's a lot of what we're going to discuss today is making sure that your wishes are honored when you are now no longer here, and that your loved ones are taken care of no matter who they are. And so you want to leave behind a legacy, right? So this is about legacy planning. You don't want to leave behind a mess. So how do you do that? How do you leave behind a legacy and avoid leaving behind the mess? Well, it starts with kind of this, you know, sort of complete inventory of things. Um, you got to list out the things that you have, the things that you would count as your assets.

Speaker1:
Right. Your your retirement accounts, real estate, life insurance, Any debts like mortgages, credit cards, personal loans and the people? Yes. The people that you want to take care of. Right. Or the charitable organizations that you want to benefit from your legacy. If you want to, you know, say if you have chosen family, you know that they're taken care of, but you also have this charitable organization that you've been really involved in. Or if you've got, you know, a religious group that you've been involved with, if you've got, you know, anything community, organization, whatever the case may be, those sort of nonprofit entities can be part of this plan as well. And bottom line, when you're thinking about starting your legacy planning process, it's not always fun to think about, um, it's just not because you're thinking about, you know, death and what's going to be happening when you're not here. Um, but it's actually, you know, it's one of the most empowering things that you can do, especially when your family structure doesn't fit into some neat traditional box that the world likes to try and boxes in. You know, the husband, the wife, the two and a half kids. Uh, the cat and the dog. The white picket fence, you know, and the minivan. Um. It's not. Maybe you have a minivan, but chances are you don't have all the other things. Uh, at least not that entire collection.

Speaker1:
So, um. Yeah, I mean, it's when you don't fit into that neat little box, it makes the planning process all the more important. And don't think that you have to go it alone at all. Like, don't ever think that you have to go it alone. Um, you know, you've got your host, your advisor, your friend, your pal and your confidant here to support you, to work with you not only through the show, but through a consultation, through working with you as your financial advisor, as, um, your registered social security analyst, certified annuity specialist. So basically focusing on retirement income, that's really what I love to do for people above all else is make sure that they have guaranteed income for the rest of their lives, no matter how long that life may be. It's just so important to have someone that you can trust to work with. And I think that it's so important to have that income that you can count on for the rest of your life as well, because, you know, there are so few guarantees in life that having just some guarantees, having a handful of guarantees is better than having none and having a guaranteed income. So you know that you've got a financial foundation for the rest of your life. Boy, that's peace of mind. Like, you know, just being able to create that income stream is just so much peace of mind for you and for your loved ones.

Speaker1:
And then potentially, you know, those two can be coupled, right? Because a lot of times when we create an income stream for people that comes along with not every time, but a lot of the times will come along with a death benefit. So if there is, um, you know, if you've lived your your life, you lived to be, you know, 150 or whatever, then, uh, if there is a death benefit amount still left at that point on that particular policy, then someone can inherit that. Whomever you have designated as the beneficiary on that account can inherit that. So that's one way to build that legacy. You kind of cover the legacy part and the income part at the same time. So kind of cool, right? Um, so yeah, we'll go through more about all of that. We'll go through more about wills and trusts. We're going to talk about that in just a few minutes. But first I do want to talk a little bit about, uh, Medicaid and how it has a big impact on so many people's lives and so many businesses as well. Well, a new study finds that small businesses are facing some serious risks from Medicaid cuts that are being proposed in Congress. Joining me to talk more about that, Joan Alker, who is executive director and co-founder of the center for Children and Families. Joan, thank you so much for taking some time for me. I really do appreciate it.

Speaker3:
Well, thank you, Matt, for having me.

Speaker1:
Well, so first off, you know, this study really kind of is is eye opening here. And, you know, a lot of times, I think people who think about Medicaid don't necessarily make the connection between Medicaid and small businesses. But obviously, this study does reveal the relationship and bring it to light. What do we find out here in this study about that relationship between Medicaid and small businesses?

Speaker3:
Yeah. So Medicaid plays a really important role on our health care system in many ways. And what this data shows us is that Medicaid is playing a really important role as an insurer for small business employees, their children and other household members, and even some owners of small businesses. So what we found was that one third of everybody enrolled in Medicaid nationwide was connected to small business, either as an employee owner or as a family member.

Speaker1:
Wow. So that's huge numbers there, one in every three. And, um, what kind of I guess when we're looking at the impact here, are there any sort of particular industries or, um, you know, types of workers that are going to be hardest hit by the proposed cuts?

Speaker3:
Yeah. You know, one third is a huge number. I'll say this is the first time that we've looked at this data. I haven't seen it before. And when you think about the one third number, of course, we've got folks on Medicaid, uh, seniors who are getting their long term care through Medicaid because Medicare doesn't cover that. So, uh, in fact, if you look at the working age population, that's probably even bigger than one third that are connected to small businesses. And I think that's because, you know, obviously large companies have, um, it's much more affordable for them to provide health insurance for their employees and particularly for their employees dependents. So one of the industries we've looked at closely in some other work is the childcare industry. And I think this is also true of home health care workers. A lot of times these are relatively small firms and they have, you know, really fixed, um, income. I mean, you cannot charge a lot for child care. Child care is already unaffordable. Home health care is already incredibly expensive. So these kinds of small businesses just simply don't have the cash, the liquidity, to be purchasing private health insurance for their employees and particularly for their employees, dependents and their children. And that's where Medicaid comes in as playing this, this role of an affordable insurance source so that folks who want to work in these industries, who want to be caregivers, who want to be entrepreneurial and maybe are self-employed, to try to start a business, are really relying on Medicaid, and I should say, also the Affordable Care Act marketplaces, so that they can do that. And both of those health care systems are under threat in this bill.

Speaker1:
Yeah. And of course, this the bill that we're speaking of is the so-called, you know, one big, beautiful bill that it has so many aspects to it. Of course, these Medicaid cuts being one. And, you know, I mean, are there any other provisions in this legislation that would, you know, also potentially have a big impact on health care costs for families and children and parents and everyone, um, who may not be enrolled in the Medicaid system.

Speaker3:
Yeah. So. So the one big beautiful bill does also, uh, includes cuts to the Affordable Care Act marketplaces. These were, of course, started rolled up in 2014 after passing the Affordable Care Act. And, uh, there are premium subsidies that are set to expire. The bill does not renew them. The bill makes other cuts to the marketplace. So, um, that coverage is going to be a lot more expensive. So that's also going to affect small businesses. So it's just a world of trouble here. And, you know, I'm very concerned. I don't think really I haven't heard any discussion by members of Congress about how this relates to small businesses. And and I remember before the Affordable Care Act was passed. So we used to talk a lot about job lock, about folks who would be working maybe at a large company. Um, and they wanted to start a business, but they couldn't because they needed the health insurance. And so both Medicaid and the Affordable Care Act marketplaces right now offer a really solid, affordable option for folks who are working with small businesses, and particularly for their children and other family members, that allows them to do that. And frankly, both of them are at risk in the one big beautiful bill.

Speaker1:
And a lot of people might say, well, there, you know, there's Cobra coverage that you can continue that is so expensive. And I know that from having changed jobs just in the past several years like that, especially if you know you're someone who is already on a tight budget, that is not going to be a viable option for you, right?

Speaker3:
That's absolutely right. I looked at Cobra myself. It's incredibly expensive. And, you know, this is the heart of the problem our health care system is is just too expensive. If you're not very rich. And both Medicaid and the Affordable Care Act. Marketplaces offer an affordable path to coverage. And then that is, you know, we want to see that. We want folks to feel like they can do the work they want to do. They can start a small business if they want to. We want to have that kind of system where we encourage and support that kind of risk taking. And so that's why, you know, this data really was it was pretty astonishing to me. I knew the large number, but, um, but Medicaid really is performing a vital role in supporting our small businesses.

Speaker1:
Yeah, it really does. The numbers definitely bear that out. And, you know, I mean, and I don't um, I would be sort of remiss if I didn't mention, um, you know, the impact as well on rural Americans, uh, especially who, you know, a large number, um, are Medicaid recipients themselves. But any, you know, rural hospitals we've seen in the last several years a lot of closures in my home state of Georgia, of rural hospitals. And from what I have seen and heard about these proposed cuts, that could really just exacerbate that problem that already exists.

Speaker3:
Yes. Absolutely. Right. We've done a couple of studies. We've been looking at rural health for many, many years now at Georgetown. And as important as Medicaid is everywhere, it's even more important for rural communities. We see that children and non elderly adults do rely on Medicaid for their health insurance at higher rates in rural areas. And that's because, frankly, rural areas are not doing as well as urban areas. So incomes are lower. And rural hospitals, as you mentioned, we've seen a lot of closures. And one aspect of that that I think is very troubling, that we've done some work on is looking at labor and delivery units and obstetrics capacity. The majority of rural hospitals today do not have how a labor and delivery unit. So that's only going to get worse because Medicaid is the largest payer for births. It's such an important piece of the puzzle for maternal and infant health, and there really is going to be no way for rural communities to grow and thrive. If a mom cannot safely have a baby within a reasonable distance of where she lives in a rural community.

Speaker1:
Yeah. Very true. All right. So just about time for us to wrap things up, but I just wanted to ask kind of a two part question here. Um, what should our, our listeners do prior to the the votes, the final votes on these proposals? And what should lawmakers be doing prior to the final votes on these proposals as well?

Speaker3:
Yeah, I definitely encourage listeners to reach out to your members of Congress. Let them know how you feel. Uh, this is not a popular issue. We've seen polls from many pollsters, including President Trump's own pollster, saying that voters of all political stripes Republican, Democrat and independent do not want Medicaid cuts. This is not something that that anybody wants. So if that's how you feel. And now is the time to contact your members of Congress, because this is going to be decided in the next few weeks. And then I guess, you know, with respect to members of Congress, um, I would love to see them work on, uh, bipartisan health care reforms that are really focused on bringing down the cost, for example, a prescription drugs or other aspects of our health care system where we desperately need reform. But unfortunately, just cutting Medicaid is not going to do that. It's only going to jack up costs for the millions of people who are going to become uninsured entirely.

Speaker1:
And is there anywhere, Joan, that our listeners can go to learn more about these issues?

Speaker3:
Yeah, we have a ton of, uh, data on our website. Our blog tries to keep folks informed in terms of what's going on in Congress. And our website is si si f.georgetown.edu. You can just Google the center for Children and Families at Georgetown University. It'll pop right on up.

Speaker1:
Very good. We'll direct our listeners that way. Well, Joan Alker is executive director of the center for Children and Families. And also, I should mention, a research professor at the Georgetown McCourt School of Public Policy. Joan, thank you so much. We really do appreciate your time.

Speaker3:
Thank you so much, Matt, for your interest.

Speaker1:
All right. So wills versus trusts. Which one is right for your plan? Maybe both. Who knows. Um, we're going to talk about these two things because they're kind of the tools behind everything, right? They're they're the tools that you can use. Keep in your in your tool belt for your legacy plan. Um, and they can get kind of complicated and can get kind of in, in the weeds here. Um, you know, as we talk about them. But I want to, you know, kind of compare and contrast a little bit. So, you know, when it comes to estate planning, people who are, um, retiring, people who have just retired, people who are near retirement have a unique set of considerations. You know, the goal is to make sure that your assets are distributed how you want them according to your wishes, that they protect your legacy, they maintain harmony in your family structure, whatever that structure may be. Because we know emotions can come into it. Of course, they provide for those loved ones, no matter who they might be, with the the precision and the control that you want. And so two of the most common tools, of course, that are used in estate planning or legacy planning are the last will and testament. The will where there's a will, there's a way and a revocable trust or a revocable trust if you if you prefer, but a revocable trust, both of them kind of have their own sets of advantages and disadvantages.

Speaker1:
They can be used in tandem as well. But understanding these things can really help make an informed decision about which one is best. So will. Um, first of all, is a legal document that outlines how your assets should be distributed upon your death. And again, that can be financial accounts, that can be physical things. You know, I remember, um, watching an old because I'm just an old soul, um, watching an episode of the Dick Van Dyke Show, which was one of my favorite shows growing up. Um, I watched it on Nick at night. Yes. I'm not old enough to have watched it the first time around, but I watched it on Nick at night when I was a kid and, um, and and a teenager, and it's such a funny show, but the Dick Van Dyke Show, there was this one episode where, um, uh, Rob Petrie, the character played by Dick Van Dyke, his uncle, uh, dies, or his great uncle. I think it was great. Uncle Hezekiah dies. I remember that name because we named a dog Hezekiah after that character. But the great uncle Hezekiah dies, and there's this whole big, you know, fight basically over the will. Um, this one of the like the daughter or somebody gets, um, 3000 pair of 3D glasses or something like that. Like it's just like he leaves like dumb stuff to people. Um, and then ends up leaving. Spoiler alert ends up leaving Rob the Dick Van Dyke character, um, his most valuable possession, which is.

Speaker1:
But he has to, like, solve this riddle to find out what it is. Um, and it ends up being a picture. A photograph of Abraham Lincoln that's in the desk. This roll top desk that he leaves him kind of crazy. Um, but all that to say, emotions can run rampant in these, you know, situations where the there's a reading of will, there are belongings that are being distributed, there's money that's being distributed. I mean, in that particular episode, there were things like not only the 3D glasses and, I don't know, toothbrushes or something, but there was also like, you know, stock and um, and cash, you know, the savings and all that stuff. And it's, you know, understandable that emotions come to play here because not only have you lost a loved one, but you're dealing with all of the stuff and stuff carries emotions with it, right? Like, you know, there are things that like, since my dad passed a couple of years ago, there are things that bring back memories of my dad that I didn't even think would, um, that they're just like, kind of around the house or, uh, that are, you know, things that maybe he bought for me or made for me because he was he was pretty handy. Um, and, you know, I mean, it just there's a lot of emotion around the stuff too. And so, you know, will is a fundamental part of an estate plan really despite that.

Speaker1:
But there are several key features that are important to consider. Now there are pros and cons. As I said, the advantages disadvantages. The pros would be that it's easy in comparison to trust, right? Generally easier. Generally less expensive to establish compared to trust. Basically, you know, you sit down, you write it on a piece of paper, preferably with the assistance of a lawyer. And you're you're done. Um, it does allow for guardianship designation for minor children in a will. And the will can be updated over time in a, you know, a letter of memorandum in certain states. Um, it's pretty easy to do that and it be a part of the updated will um, going forward because circumstances change, right? And people's lives change. And so maybe your wishes. Ten, 15 years ago when you wrote the will initially aren't the same as today. So you can make those changes. Now the cons are that it can be public. The will can be public. I mean, it's subject to a public court, supervised probate procedure, uh, to validate that will settle debts and then distribute the assets. Right. And then the contents of the will also becomes public record once they're filed. So and that causes potential privacy concerns if you don't want everybody to know in your business. That can be a consideration there as well because they could find that business, um, if they know where to look for it.

Speaker1:
And there's really no safeguard to protect assets from creditors or, you know, your beneficiaries from mismanaging the assets after you're gone and after those assets are dispersed. So then how about using a trust? Then when you say, well, the pros and cons to wills, there are also some pros and cons to trust. A revocable trust is a legal entity that just is kind of like a, I don't know, a container, right? Think of it as as a Tupperware container. And your assets are all the things that go into that container. That's what the trust basically is. It holds your assets. It manages those assets according to what you stipulate. And you can transfer ownership of assets to the trust during your lifetime. And then the trust continues to manage and distribute them upon your death. So it acts like, you know, as if you were still around because you have, you know, directed the trust to do X, Y, and Z after you're gone, essentially. Um, pros it's not subject to the probate procedure. And if it's in a trust, um, that can get messy. I had a couple of former coworkers who had, um, their loved ones passed away without a plan and things got, you know, were subject to probate and things got messy with family and, and infighting and all that stuff. So you don't want that to happen. And it became just this long, drawn out process. It's not a fun thing.

Speaker1:
Um, details of a trust. Unlike in a will, the details of the trust are not made public. They remain private. If you become incapacitated, your successor trustee can access and manage the assets in that trust without court intervention. So you can name someone as a successor trustee to act on your behalf. In other words, there are some cons here. I mean, setting up that revocable trust requires legal guidance. You have to have it. It requires funding. It requires asset titling. You've got to make sure that the things are named as assets of the trust, and the assets in the trust have to be properly titled. They cannot be incorrectly titled. If there's a mistake there, then that could still require the probate process. So you've got to make sure that everything is correct in that titling process. And for individuals who don't have a whole lot of assets, the cost and complexities that can be involved with the trust could outweigh the benefits. So that is that that's sort of like, you know, individuals, um, you know, choosing between a couple of different, uh, I don't know, items on a menu at a restaurant. Right. If you're if you're at a restaurant. I was just at one last night, um, which is now making me hungry because it was very good food. But if you are, um, you know, at a restaurant, there are different things on the menu. Wills and trusts are a couple of options on the menu for your, um, legacy plan.

Speaker1:
Right. And choosing between a will and a trust really depends on several factors. Um, the size of your estate, like I just mentioned, is one. Privacy concerns. Uh, your your legacy planning goals, those specific goals that you have. And so there are some key considerations to really help you decide. Right. So the first again the estate size and the complexity small estate A will will probably do a high value estate talking millions and millions of dollars. That revocable trust can be more advantageous because then you can avoid the costly, time consuming probate process, and it provides more control over how and when those assets are distributed. There are those privacy concerns. Once again, if you're concerned about public disclosure of your estate and your family information, a revocable trust is probably the better choice there because it's confidential. If you're not really all that concerned about privacy, you know, then a will is probably just fine. Keep in mind, though, that the probate process can still expose your estate to public scrutiny. So that is you've got to just kind of bear that in mind. How important is that privacy piece of the puzzle to you? Um, then there's family dynamics, of course, as I've mentioned, beneficiary management. You know, if you have a blended family, if you have minor children, maybe from a previous marriage, even, uh, beneficiaries with special needs, you know, whatever your family situation is, a revocable trust can provide more flexibility and control, and you can set up specific conditions for asset distribution.

Speaker1:
If this happens, then this asset gets distributed. If that happens, then this asset gets distributed. Maybe you don't want your grandchild to have access to a certain pot of money until after they finish college. And so when they graduate college, then they've got access to that money. Maybe they've got a bunch of student debt by that point, and they can pay all that off with the money that you have given them. And boy, won't that feel good for them, because I know a lot of people have student debt that they're still paying off today. At least my peers are doing that. I'm in my 40s, for crying out loud. Um, for those with straightforward family dynamics, a will could be adequate. It just depends on your individual situation, right? And your family dynamic, your family situation. And so whether you choose a will revocable trust combination of both, the most important thing is to have a plan in place. That's really what it boils down to. I mean, estate planning is not a one size fits all solution, and what works for one person may not work for another. I mean, have you ever gone to a store and picked something off the rack that said one size fits all? I don't see them as much anymore. But I remember when I was a kid, I used to walk through, walk in a store and occasionally run across something that would say, oh, this is one size fits all, and then you try it on.

Speaker1:
What are the chances of it actually fitting you pretty darn slim, right? And I use that term loosely because if you are, uh, pretty darn slim, the one size fits all thing is pretty much not going to fit you. And if you're not pretty darn slim, it's really not going to fit. It's like you have to be a particular certain size, um, to actually fit into the thing. If it's one size fits all, chances are it's not going to fit very well. So if you want to get started on a financial plan and on a legacy plan with you in mind, that's not one size fits all. That is something a lot more than that that's customized for you. I encourage you go to the website, take pride in retirement, take pride in retirement.com, or give me a call 85524692118552469211. I'm also on the socials. I keep expanding the socials people. All right, so if you are on Facebook, if you are on Instagram, if you're on threads, I'm on all of those. Of course, I'm on YouTube as well. Under all of those, I take pride in retirement. Just search for them there and you'll find a lot of content, a lot of videos, several of them uploaded each and every week. Also just brand new. I'm on blue sky. I just search for take pride in retirement or at blue Sky.

Speaker1:
I'm. It's at. Take pride in retirement. Com is the the handle on blue sky. So yeah. Feel free to do that. I mean, it's, um, a great, great thing. I'm starting to upload videos there and, uh, you know, picking up a few followers here and there, but it literally I literally just started that account. So help me pick up the numbers. I'd appreciate that. So follow me on blue Sky as well. Take pride in retirement. Com. Uh, there. All right. So, um, let's talk about some ways to transfer your wealth in a tax efficient manner. Um, and again, you don't have to be super wealthy. I always say, of course, no matter who you are, where you come from, who you love, how you identify, or how much money you have, any of those things you deserve a retirement you can take pride in. You also deserve a legacy plan that you can take pride in, so that you can have that peace of mind that comes along with it, and so can those people who are going to be here after you're gone. They deserve that peace of mind as well, especially after you're gone. Because then not only are they in the morning process because you're gone. Um, they are, you know, trying to figure things out from a standpoint of all of the money, all the assets, all the things. And if you can take care of that and let your wishes be known ahead of time.

Speaker1:
Boy, talk about peace of mind. Right. So for from a tax efficiency standpoint, no matter how big or small that, you know, pot of money might be, that you might be leaving behind to people a few things that you can do to really pass along in a more tax efficient manner. Number one, convert to a Roth IRA. If you convert now, if you've got money in a 401 or a traditional IRA, um, 403, be a TSP. If you're a federal employee, any of those tax advantaged plans that are tax deferred. Right. You haven't paid taxes on that money yet, but you will when you make the withdrawals. Um, whatever that situation might be, if you've got those types of accounts, make sure that you convert at least a good chunk of those to a Roth account. Yeah, you'll pay the taxes on that money now, but when you go later on to make withdrawals, you'll see that that money that's been in the Roth has grown tax free. And the money that's in the Roth will be withdrawn tax free. So you don't pay taxes again at all on that money, not even on the gains, not even on the gains, and certainly not on the principal, because you've already paid the money, the tax money on that principal that's gone in. And you can do that if you just, you know, convert from traditional accounts, whether it's again, that 401 K, the traditional IRA.

Speaker1:
Et cetera. Et cetera. You can Convert that into a Roth and never have to pay taxes on that money again. And then you can leave that to your loved ones. Your loved ones can inherit a Roth. And so then in that particular case, they don't pay taxes either. So it's a really great thing to be able to do for them. You can give up to $19,000 in a calendar year as well if you want to, you know, give to your loved ones while you are alive and see them sort of reap the benefits of your generosity to them. You can gift up to $19,000 a year, or 38,000 if they're a married couple. You can do that without a tax penalty right up to those limits. Direct payments for education or medical care. You can do that as well. Great for helping a niece or nephew, a child. Um, you know anyone who might need to pay for their education? I mentioned student debt earlier. Why not nip the student debt thing in the bud But already. And, you know, make direct payments for their education or for any medical care that they might need, has to be used for those purposes. Otherwise you're going to be taxed on it unless it's a gift up to that $19,000 or $38,000 limit, but still an option. Charitable giving you can support LGBTQ+ causes that align with your identity, that align with your passions, that align with your legacy.

Speaker1:
And big thing to do, really, is to educate your heirs, your potential heirs. You know, I always think when I use the word heir or heiress, um, I always think of that episode. There was an episode of The Golden Girls and, um, I forget what the situation was, but it was Sophia and Dorothy were having a conversation. And so Sophia says, uh oh, I was going to leave you x, y, z thing, like whatever it was like some, some sort of pittance of a silly thing. Oh, I think maybe it was the episode where Sophia kept buying things at the big box store, like the the membership club thing, and she would buy, um, you know, like 150 gross of toothbrushes or whatever, you know, or cans of sardines, I think was the thing. And so, um, she tells Dorothy she's going to leave them to her in the will. And Dorothy says, oh, this is what it feels like to be an heiress. Um, just the snark and the sarcasm I just love. But if you have your your heirs, whether you're leaving them, you know, thousands of toothbrushes or cans of sardines or hundreds of thousands or, you know, whatever dollars. Um, have honest conversations with them to reduce stress, to reduce confusion later on, to make sure that everybody's on the same page. Right. To make sure that everybody is, um. I don't know, all the oars on the boat or rowing in the same direction as far as expectations go.

Speaker1:
Right. So these are some, some powerful strategies. I mean, if you have these strategies in mind, if you pair those with the right legal documents and seek legal help with these documents, then that can create a legacy plan that is built to last. If you want to be connected to an estate planning attorney, if you want to be connected to a tax attorney or another tax professional, um, then I would be glad to point you in the right direction and point you in the direction of someone who is affirming. Someone who will, um, do their best for you no matter what your situation is. And then we can take that piece of the plan that they work on with you and work that into your own retirement and financial overall plan. Right. And have all the pieces of the pie come to make one delicious pie. Actually, I had speaking of earlier, I was talking about going to a restaurant. I had some delicious peanut butter pie last night at the restaurant. So I don't know why. I just have to make myself hungry again. But if you want that delicious pie, whatever flavor it is that you like, it's all up to you. It really is. And seeking the right professional help for each and every aspect of it is so important. And if anything that I've mentioned, talked about on the show has hit home for you. You know, if you've ever wondered what in the world happens to my partner or kids or niece or nephew, chosen family, whatever.

Speaker1:
If something happens to me, it's time to take action. You haven't made a decision until you've taken action. And right here at Take Pride in Retirement and at Active Wealth Management, we offer complimentary consultations, absolutely free, 100%. And we can talk through everything, walk you through your current plan, the road that you're on right now and help build one from the ground up, using what you have now to sort of reconstruct everything and show you what's possible if you were to work with me. No obligation, no judgment, no pressure, just help. And just getting you to that point where you've got that retirement you can take pride in will help protect your loved ones, reduce your taxes in retirement. Plan a legacy with purpose, one that fits in with your identity and your own personal situation concerns, hopes, and dreams. Just go to take pride in retirement. Take pride in retirement and that is going to be, you know, a great place for you to go to reach out. You can also go there and hear past episodes of the show if this topic is, you know, sparked something in you and you've got a question about something else, then feel free to go to the website. Take pride in retirement. All of the past episodes of the show are there, and then I've got clips from pretty much all the past episodes on YouTube and the other socials, so follow me there again, YouTube, also Facebook, Instagram threads, and now blue Sky as well.

Speaker1:
And hey, if you prefer to pick up the phone and just give me a call. Feel free to do that right? 85524692 11. (855) 246-9211. Is that number? I will be glad to get back to you. Um, just call and leave me a detailed message, and I'll be glad to get back to you then. All right. So here's the thing, folks. It is not just about the documents. It's not just about the dollars and cents. It is about, you know, legacy planning is really one of the most thoughtful and loving things that you can do, both for yourself and for the people who matter most to you. So let's make sure that your legacy is is one of clarity. It's one of confidence, and it's one of pride, not confusion, not courtrooms, and not the mess that so many people leave behind. Right. So that is going to do it for this episode of the show. I really thank you once again for joining me again. Take pride in retirement. Reach out. Schedule a consultation there directly on the website. I really appreciate that. Like and subscribe on YouTube and here on whatever platform you listen to your podcast. I appreciate that as well. Until next time, take pride in yourselves and take care of each other. We'll see you then. Thanks for listening to.

Speaker4:
Take Pride in Retirement. Members of the LGBTQ plus community deserve to work with a fiduciary financial advisor who puts their needs first. To schedule a free, no obligation consultation with Matt McClure and the team at Active Wealth Management, call (855) 246-9211 or go online to take pride in retirement investment advisory services offered through Brookstone Capital Management LLC, BCM, a registered Investment advisor. Bcm and Active Wealth Management Incorporated are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Matt McClure. An act of wealth management are not affiliated with or endorsed by the Social Security Administration or any other government agency.

Speaker1:
Hey, it's Matt McClure of Active Wealth Management and host of Take Pride in Retirement. Are you worried about outliving your retirement savings? Nationwide's peak ten fixed indexed annuity is designed to help you feel secure and confident. With Nationwide Peak ten, you'll receive protection for your principle, keeping it safe from market downturns. Growth opportunities tied to market indexes but not invested directly in the market. Guaranteed lifetime income and protection for your loved ones with spousal income options and a death benefit. Call me now 85524692 11 or go to take pride in retirement. Com to connect with me and learn how P10 can help you retire with confidence. Let's take pride in retirement.

Speaker4:
Com investment advisory services offered through Brookstone Capital Management LLC. Bcm, a registered investment advisor. Guarantees and protections referenced are subject to the claims paying ability of Nationwide Life and Annuity insurance Company. Nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its other entities are associated or affiliated with Active Wealth management.

Speaker1:
Registered investment advisors and Investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosures of any conflicts of interest. Please refer to our firm brochure, the ADV two way item for for additional information. Information provided is not intended as tax or legal advice and should not be relied on. As such, you are encouraged to seek tax or legal advice from an independent professional. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company, not guaranteed by any bank or the FDIC.

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