Afternoon podcast 9-10-26

0:00Welcome to the afternoon Rob Blackshow podcast a guaranteed human podcast which can also be heard on AM-1220KDOW weekdays at 5 p.m. and on 860 a.m. the answer week nights at 11 p.m. The views and opinions expressed in the program are not necessarily those of this radio station or its sponsors and should not be construed as legal tax or investment advice You should always consult the appropriate advisor before making any financial decision all rights reserved Now, new focus on wealth, new focus on wealth, get a new focus on personal finance, wealth management, Wall Street and the economy Now, Rob Black. I'm Rob Black. We had a down day on the market, count them up, that's four in a row September is kind of living up to its reputation is it not? There's some winners and some losers on the market but the overall trend was negative

1:00the SP 500 down a little bit more than one half 1% I knew where it was all day long The Dow Jones industrial average down 60 basis points at 6 tenths of 1% the Nasdaq down 65 basis points It's about two thirds of 1% and they're also 2000 down just about 1% Bitcoin was down 1.3% Crude oil was the winner-winner chicken dinner if you will today up 7.2% up 7 dollars 103 dollars a barrel Taking a look at the treasuries this was the story of the day. It's not a sexy story It's not a story that you can be happy with But the treasure yields on the 30 year treasury hit 5.36% I've got enough money to last till the day I die and I've got some cash Right now, do I want to put money in a treasure yield getting me 5.3% Or do I want to put it in the stock market that looks like you can have a 5 to 10% correction any day now

2:04The 30 year is attractive For a sit on your money like a chicken sits on its head Egg to hatch I know am I kind of makes a metaphor is maybe I Got to be really careful because you mix a metaphor and you're done in this city Junior trim Junior treasury is at 4.94 percent which is too high I've been honest with you since I've been on the air over 30 years And one of the very first tenants of my business is E-Buy bonds when the treasury is over 4.5% E-Buy stocks when the junior treasury is under 4% And the further it falls below the more you buy stocks and the further it goes above 4.5% the more you buy stocks 30 year bond hits 5.35% its highest level in 19 years This comes right after the hot PPI data showed producer prices rising faster than expected Adding to inflation fears. It's also happening the same day that U.S. Treasury tripled its bond by back to 6 billion

3:08An effort meant to bring down yields It's not working Scott Bessett is Showing me that he's in it for the money for the graphed Because he doesn't know what he's doing Jeffrey gunlock who is the bond king referred to Bessett said Bessett said I am the house Bet against the house if you want and Jeff gunlock said they're betting against the house and they're winning So what's amazing about the global bond sell off is how many people are saying rising yields adults are about strong growth When you think about rising yields in Japan France Italy and the UK are they about growth or is it just the United States We are in a global Growth shock Of debt And it's real You'd look at Japan Germany United States UK Italy France Australia Canada Switzerland The cost to borrow money is going up for obvious reasons that we've borrowed too much in the world is the is the conclusion for now

4:16Ain't that something So the Dow tumble 300 points not a four-day drop the Iran war is raging on seven months. We're into now The Republican midterm convention kind of looked like a joke with its attendance like America's angry Fight the power if you will seems to be what I'm hearing much more than I'm one way or the other High-made-a-chip stocks that have led the bull market were lower today showing us what happens when interest rates rise Some of the biggest growers and fastest skiers like Intel and micron were down 5.6 percent and this is 4 percent equally Alphabet and micro foot soft finish up the day by less than 1 percent Apple shared Shares surged 3.6 percent following a successful launch of the company's first foldable smartphone What I'm hearing again and again is people want it I'm going to have two segments with CFP Chad Bertanon today because we have a seminar come up on Saturday

5:22It's financial planning wealth perturbation retirement planning in Lafayette 10 o'clock to noon Sign up at robblockshow.com So we saw a tame wholesale inflation report today that failed to lay fears coalescing around the higher rates and oil prices August's producer price index a measure of wholesale inflation Rose is seasonally adjusted four tenths of a percent in line with expectations But on an annual basis it rose at a 5.4 percent. That's a grotesque handle That's bad. I mean, it's inflation's there and interest rates should be higher Does wash have the cahoney's to do what he needs to do in front of Donald Trump and raising interest rates after all the crap that Trump piled on drone pal The ppi release itself was inconclusive in that it doesn't really help to settle the question of hike or no hike from the fed next week But oil prices have surged back above $100 in the last three weeks. They've really

6:23rose and risen quite a bit and Worsh's watch that during his tenure As short as it is Expectations for tater monos cherry policy Also increased following the mornings eight august ppi number The cme fed watch tool now assigns a 73.1% probability to a rate hike following the report this morning up from 61.2% yesterday So we're to see higher interest rates and that's common in their next meeting You ask me to bet on 70% odds I would Let's see if I'm right or wrong The pressure remained widespread through the closed day with nine of the 11 s and p 500 sectors finishing lower The material sector ended at the bottom of the standings of its declining precious metal prices with particular weakness and copper Some weakness today out of Nvidia down 2.3% in Taiwan's semiconductor manufacturing down 1.62%

7:27Taiwan semiconductor manufacturing tech or ticker sold TSM Stock I told you to buy two and a half years ago on January 1 Is decline despite reporting a 53.3% year over year increase in august revenue Skyworks was up 10% today in Corvo up 6.7% There's some increased investor optimism that they're proposed merger will ultimately close Cooper was down 14.6% after big revenue mists and downside guidance American eagle down 13.9% bring back Sydney, sweetie So it says the weirdo in the front row I lost in the sweet Right Oh

8:28She could be the worst actress of all time Just see now that what I like about her is the acting skills just in case you were confused American Eagle brand and a modest reduction of to back to To back half operating income expectations overshadowed string fed airy which is one of the brands from American Eagle Right it was up 6% here one of the better performing S&P 500 components con castles up to 0.3% There's called a Goldman Sachs communico Pia Plus technology conference where they got to talk Talk about the competitive intensity Oracle came out with numbers tonight, but before I get there They're up 10 bucks Let's tease the Dodgers industrial averages of 8.3% for the year DSMP 500 up 10.9% the S&P mid cap 400 up 11.5% Now as that composite up to 12.2% that also 2000 up to 16.5%

9:31Oracle is trading higher In after market performance They had earnings per share of a buck 92 versus expectations of buck 74 The revenue growth was over 30% year over year This is the quarter last year where they announced a huge deal with open AI and the stock jump I believe 25 plus percent in one day Much of Oracle's expansion is tied towards data center growth as the company tries to become a bigger player in the artificial intelligence boom Oracle has a weaker cash position than the hyper scalar competitors in a lower credit rating Company now sits on 125 billion dollars of debt And negative free cash flow came in at negative 5.4 billion compared with negative 362 million a year earlier He gets I now for my event this Saturday the 12th 10 to noon in Lafayette at the library It's wealth preservation retirement planning coming up. I got two segments of CFP Chad Burton mixed into the middle of that

10:31You know, he's big segment on a stock that I think is attractive for the dividend yield I'm Rob Black You These days retirement planning is more complicated than ever So set aside Saturday morning September 12 and get ready to learn some strategies for wealth preservation and retirement planning from Rob Black Ryan Ignacio and Julie Channel Rork this event will focus on retirement income Tax strategies estate planning alternatives and funding retirement if you're at or near retirement with at least 500k Ininvestable assets this seminar is for you you'll learn how to transition your portfolio from the accumulation phase to the income phase Which accounts to draw from first how to protect your estate from long-term care costs and much more learn how to invest during inflation and Interest rate moves social security strategies and managing IRAs and 401k's in retirement Rob Black will share market happenings and trends that Saturday September 12 tend to noon at the Dom Tatson Community Library in Lafayette spaces limited

11:32So sign up today at robblackshow.com that's robblackshow.com Investments not if the IC and shared best performance does not guarantee future results not on after to seller as a Listen to buy any security member finray s upc You're listening to new focus on wealth joining me now On new focus on wealth CFP Chad Burton Chad tax planning becomes very important in retirement What are the top tax issues people should be aware of before retiring That's good question because it comes in phases and I think that To try to create a list of the top things I think one basic that I see people come in with their own spreadsheets rob is you got to remember your 401k's and IRAs have never been tax So when you pull the dollar out you got to pay the feds and you got to pay California if you live in California So that's number one to remember that's part of your budget is your overall tax bill and where you can add a lot of planning If you have different asset types and retirement and not a ton of tax planning besides Roth conversions

12:33If all you have is a 401k in your home because everything in your 401k If it's all pre-tax it's just you to pay taxes that comes out When you have different asset types it gets you can be much more creative, which is something we go over at the event So the other thing to think about is that 85% of your Social Security is likely going to be taxable if you can afford to retire Okay, it's just an odd number And I always joke that this was this law was put in place on whiskey night in Congress because the formula doesn't even make sense, but it's the if you're modified adjusted gross income which even includes your tax-free bond income plus one half of your Social Security is Over a certain amount and it's very low limits like 25,000 and 32,000 married family and jointly then 85% of your Social Security is going to be taxable I don't know why it's 85% I don't know why it's not 100 But comes out as a tax and then paying taxes on it again is a little rough, but that's the way it is okay And then so that's one thing that I think people think about Social Security sometimes is tax-free, but it's not

13:35Now the other thing to note is your IRAs your 403b's 401ks Those types of plans that you put money in pre-tax when you hit age 73 or if you were born 1960 or later that's now age 75 Your required minimum distributions kick in that's RMD that's what when you hear that term That's what it means you have to start taking money out And then you take the year-end balance and divide it by a Factor based on your age and that's how much you have to take out each year And so that is going to create taxable income that you have to think about so That's why a lot of times putting off your IRA income because people like they're like okay. I have other assets I've got cash. I've got Stocks that if I sell it. It's capital gains rate, which is a lower rate. That's another thing to think about capital gains rates a lower rate in many cases than ordinary income And so they wait they pull money out of different areas and they wait forever on their IRAs and all of a sudden they lose control of their bracket

14:36So we talk a lot about that Medicare premiums rob that's another tax issue. It's called Irma. Okay. I RMAA So recently I never remember what it means It I've been doing this for 25 years. I still don't understand what it means I just think it's like a funny name right it's yeah, but Essentially what it means is that if you're Modified adjusted gross income and whenever you hear modified adjusted gross income you have to look at your tax return Okay, and you can clearly see on the front page what your adjusted gross income is towards the bottom of your 1040 But then you have to go back and add in your tax-free bond and come to that And so if that number is over 103,000 if you're single or 206,000 if you're married filing jointly The there's you pay more for your Medicare part B premiums It's called an Irma right an Irma surcharge And so essentially what happens is they look at your income every two years and adjust it

15:37So if you get really high income in 2025 You're going to get a notice in 2027 that your Medicare part B premiums are going to go up Okay, so that's another important thing because it's it's really a tax for high income earners And then and each bracket of that Irma Rob is about an extra 1000 to 6000 per year in Medicare part B&D premiums The other thing that when people retire and they're talking about these conversion strategies where you know what I'm going to take some money out of my IRA and convert it into a Roth pay the taxes now One of the things that you have to be able to have software that shows is does it trigger Irma or not? You know, we really have to go through the phases of retirement. There's from let's say you retire when you're 62 There's retirement To when you take Medicare right and you might have that Irma tax and then there's from retirement to when you take Social Security Which is somewhere between 67 to 70 first depending on when your advisor tells you to take it And then there's the date the income planning and the tax planning phase from the date you take your Social Security

16:40Let's say it's age 70 to when you're required minimum distributions kick in from your IRAs and let's say that 75 And so there's different phases of planning and different ways you can play with the tax system But in all of it, it's really understanding the difference between the capital gains tax bracket Which goes from 0 to 20 percent and then the ordinary income tax bracket Which goes from all the way up to 35 percent and so understanding What ordinary income is like from your job or from interest on your bank account versus capital gains Which is selling stock real estate or business that you've owned for over a year And I think the next top one rob that we can move on after that is what your charitable giving strategy should look like So usually when you're giving money to charity to a thousand dollars or more or more You want to give appreciated stock to your favorite charity they all brokerage accounts you can shift some shares of Microsoft or Nvidia over to your favorite church or charity

17:40But there's this little law called a qualified charitable distribution where once you hit age 70 and a half You're actually allowed to give up to a hundred grand a year directly from your IRA Directly to your charity. You don't pay taxes on that distribution and your charity doesn't pay taxes on the distribution So those are some top ones that you really need to think about going into retirement Fascinating stuff and again, I keep the nuances that you throw to it. It's great What about choosing to itemize deductions or take the standard deduction? This is where I think that If you've got kids in college and most jobs or You're under concern regarding AI there's already a shortage of tax people in this world And I tell you this one big beautiful bill made stuff even more complicated. It's actually really good in 2017 the bill was really really good rob for kind of the middle class retiree And most of most people over 65 it was a really good bill increase the standard deduction and lowered

18:44the ordinary income tax brackets for your IRA and 85% your social security and all that so it was really good. I just got better and The issue is that whenever you're filing your tax return. Let's say you're doing it yourself with software or your CPA is doing it on the side They're always calculating what is better for you taking the standard deduction which everybody gets and that's 15,750 If you're single or 31,500 if you're married And then there's an extra 1600 to 7,600 now if you're 65 and older rob under this one big beautiful bill act And so it just made a lot more of your income free of taxes for 65 and older for the next four years It goes away after 2029 But in the background you're always calculating that versus your itemized deductions And your itemized deductions are things like your health care costs over 7 and a half percent of your just a gross income A state and local taxes up to 20,000 single or 40,000 married

19:45But that's phased out that new rule if you have income over half a million that gets phased back down to 10 grand But if your health care costs the state and local income taxes mortgage interest charitable deductions If those all add up to more than the standard deduction then you're an item your person that's itemizing your deduction And that could change on an annual basis depending on how your income looks in retirement Now back to new focus on wealth mortgage rate Across the 7% mark for the first time in more than a year with the average 30 or fixed rate hitting 7.07% For a buyer purchasing a 430,000 dollar median home in the United States with 20% down That more rate means roughly $244 more per month than it did at the end of February The good news for buyers is inventories improving with 1.62 million homes for sale the highest supply

20:46Level in more than a decade the bad news is prices aren't cooperating With median existing home sales price hitting a record of 429,100 up 1.6% year over year Homes are to start take longer to sell averaging 31 days of the market Investors and second home buyers have pulled back to sharply SpaceX is becoming more than just a rocket company SpaceX Is back of the headlines after launching another classified payload for the US space force and apparently the government is trusting you on musk with things They're not exactly putting on the lunch video payload is classified, but it could involve a star shield SpaceX's military communication network, which is essentially starlings tougher more secretive a cousin The bigger story here is the sheer scale of the operation space x is launched more than a 100 Falcon 9 missions this year Following 165 launches in 2025 and accounting for more than half the global launches last year

21:52Interestingly, SpaceX's share of global launches is slipped from To roughly 49% as companies such as european startup iSAR aerospace begins getting rockets into orbit Market share isn't necessarily the right way to measure the opportunity There's still a lot more stuff that people and businesses around the world want to put in space that only rockets are capable of carrying SpaceX recently went public That's just should remember that stock is still relatively difficult to trade because a large portion of shares remain locked up About 2.6 billion of more than 13 billion shares are currently available to trade with another 2.3 billion expected to become available by the end of 2026 It's really not a rocket company. It's an infrastructure company with a rocket attached to it if you will because they do rockets satellites military communications broadband and eventually AI in space Okay, someone got my attention today

22:53Da da ba da ba Let me try that again My pitch is not perfect these days McDonald's trades at a 52 week low today After solid start to the year McDonald's reported in early august that the business slowed significantly In the second quarter with management also acknowledged that it did not execute at the level it needed to You don't think of a company that makes nuggets which is like part beak part hoof Part gizzard Put in the emulsifier make a paste Shape it into one of four shapes for a nugget and sell it The tone around McDonald's day is more of an interesting pullback than a broken business Down 8% of last month Valuations finally come down This is probably the biggest reason McDonald's is getting attention right now. It's gone from a roughly 326

23:54330 dollars all the way down to the mid 250's With an absolute bottom right around 240 In Mario opinion The consumer is the question right now They're trying to win back to back they're trying to win back price instead of customers with value offerings And a broader restaurant industry is dealing with a consumer who is increasingly watching every dollar McDonald's has a pretty good recession playbook If things do get worse here in the economy with higher interest rates being a true true negative McDonald's can push value lean on its franchise model and use its enormous scale to keep restaurants competitive If it doesn't need consumers to suddenly become wealthy again. It just needs them to keep beating At $254 you're getting a lot less risk with more reward Someone who was spending $25 to sit down in a restaurant suddenly decides a big Mac fries and coke is pretty acceptable

24:57It will have its day in my opinion But I do want to take a look at McDonald's and tell you the thing that I kind of like about the stock Now please keep in mind. I'm older I'm not a 20 year old man looking to like you know, I scorch my way into the investment hall of fame I've done it I've already turned a very little amount of money into A ridiculous amount of money I'm pleased with that stock was slightly lower today taking a look at the dividend yield 2.9 percent That's what I like about it trades at PE of 20 times earnings. It's always going to it's kind of like Coca-Cola and kind of like Apple You're always going to be paying For it because everyone knows what's going on there Now I would only own it for one reason not the delicious chickening out the nuggets no no no no no

26:01I would own it because it's hit that chart angle that I like where it's pulled back significantly From its 52-week high About 340 So I find that attractive because a lot of risk is already out I take a look at the last three years when I see it's it's bottom maybe 3% 5% lower than it is today But we could say it doesn't look horrible Is it for you? I don't know I really really don't But I'm going to be doing a segment tomorrow on how to buy stocks or wind buy stocks And this is a stock that hit that screener Again, is it for you? I don't know Um, but it has pulled back significantly. So maybe that's your entry point if you will It's going to be part of my conversation tomorrow and part of my conversation on Saturday

27:05Saturday September 12th 10 to noon. I'm going to be in Lafayette. It's a Lafayette library I'm going to speak 10 to noon at the wealth preservation retirement planning. I'd love to see you there It's my final one in the East Bay and honestly I got to talk to my boss this next month If I'm going to be doing these next year, so Lafayette 10 to noon this Saturday Just show you what you're competing with my mother-in-law's about to pass Um, but I just got all the similar I'll be there Let's talk about some of the other issues that we saw out on Wall Street today The iPhone duo is the generation Z dream the stock was up roughly 10 points today Which is odd. It was up 11 points in fact It's odd because the market didn't do that great But AI the big question mark is tied towards Oracle But the iPhone there's not a lot of question

28:05I don't think they messed it up yesterday with the iPhone full Launched the Apple's iPhone duo has taken the internet by storm google search trends over the last 24 hours for a foldable iPhone We're up 2400 percent compared with the same time last week TikTok videos of guests that attended the event or a buzz With people's opinions the new device Pricings coming up obviously in conversations when it starts at $1999 almost three thousand dollars for fully loaded a fat storage Once again of all the cat videos that you want I Nebula Pupal a senior research director at IDC says given the high price I don't believe the young consumers of the target market for the duo Creamy them consumers with a large disposable income are likely at the duo's ideal market We're looking at you Rob My generation is not averse to spending big money on stupid products and owning things like coach bags Lulu living leggings and high-end cosmetics I think of the Apple

29:05Full-able iPhone as a product Soley meant for older folks except for You can do a live preview of a photo taken on the device's outer display Rather than seeing just a lens photo subjects We'll also see their pose in real time on one of the duo's screens So for those of you generation Z influencers This is a particularly attractive feature so you can control your poses correctly Mealias research analyst Ben Rightzis says an he's an Apple bull he says The father of three he's the father of three generations Z daughters. He told me they are all Ready asking him if they can get the phone He's been criticized for being a horrible picture taker. He says now they get to see themselves posing No more excuses no more yelling at dad It's a weird thing, but there you go So I like McDonald's because it's had a big pullback. I like the dividend yield. That's the only reason I would own it

30:08I like the iPhone and it makes sense that it was up today I think it's getting working in good economy or bad economy due to it being a luxury item SpaceX is interested in because they did a secret special Star force space force excuse me don't get that one wrong They do their uniforms do kind of look like the evil empire Microsoft. I mean So that's what's on my mind right now You could always find me online at Rob Black show twitter rob black show youtube rob black show Anytime you want to talk you have a question driving email rob rob black.com. I appreciate it I'd love to see it sign up for my event. It's coming up saturday From 10 to noon the 12th in Lafayette at library at robblackshow.com. It's wealth preservation time planning event. It's my last event in the east bay Coming up again CFP Chad

31:08Burton This is new focus on well joining me now CFP Chad Burton Chad my mother passed away back in 2021 It's been a while but the last few years of her life were very expensive. It involved long-term care I got imagined that today a few years past it's even more expensive What do I need to know seeing that I hope I've got another 30 years before I go into long-term care or Maybe I'll marry a younger wife and she can take care of me Yeah, there you go Yeah, good luck on that one The first thing you mentioned something there that I want to hit on first especially those listening that are close to retirement going into retirement and that kind of sandwich generation Make sure your parents have the proper will trust health directive power of attorney a lot of parents We'll just I'm just gonna put the kid on as a joint owner on my accounts That's technically a gift and can cause all sorts of problems

32:10If you want something to be oh, yeah over and over again and then it causes family issues on the death because it's like Let's say Rob your mom names you as a joint account on a half a million dollar account She dies it goes all to you So if you want to make your brother and sister whole you would have to give them a gift Which eats into the amount that you can leave to your kids tax for you when you die So major problems there So if you want to help your parents while they're alive, but incapacitated they need to have a living trust Which names you a successor trustee That covers everything but retirement accounts and then if you want to be able to deal with all the other accounts That aren't under the trust like IRAs and 401k's you have to have a power of attorney and has to be updated So part of your retirement plan should be making sure your parents have proper documents Because it's just a nightmare if they don't and if you're still working man Really want to encourage people to use hsa accounts the right way So The proper use of an hsa account in my opinion because it is a very powerful account

33:12You put the money in you get a tax deduction It grows tax-free forever as long as when you draw the money out. It's for health care costs So the proper way to use an hsa is to It's in you have a high deductible plan So it means you have to be able to afford to pay the deductible out of pocket because the idea is to fund the hsa But don't touch the account while you're working Rob I see this mistake all the time and even try to talk to CPAs about it Because if you fund that hsa account and you get this big Roth healthcare account You can fund it up until you turn 65 and then once you're 65 and you retire You're gonna have all these years of Medicare Part B premiums D premiums copays health care and dental costs So it's really good to put the money into the hsa get the deduction now And then let it grow tax-free forever and ever and then I'll boom at 65 You got this great pot to draw from for all of those health care expenses that we're talking about Hsa account switch I'll admit I did not do until last five years

34:15When eligible for tax-efficient medical savings and retirement tell me a little bit more about that Yes, sure, so at 65 right no matter when you retire, but let's say it's 65 You can't you can no longer fund these things anymore As soon as you start getting on Medicare the issue is that when you retire you get Medicare part A for free But Medicare part B you have to pay for It gets about a hundred and nine bucks a month But as we mentioned earlier in the show there's Irma So your cost could go up to 500 close to 500 bucks a month if you make a lot of money And then on top of that you still have copays you still you have your supplemental insurance first of all that right now is open enrollment So a lot of people are looking at a new Medicare supplement plan that supplements your Medicare part A and B But then you have Copays on top of that and then you have dental costs A lot in retirement as well Those are all eligible medical expenses that you can if you just let that Hsa build up and you invest it in when index fund or balance portfolio Just like any other account

35:17Once you turn 65 you just start drawing on it and you can draw on it tax-free So none of the growth will ever be tax as long as you use it for those items that I'm talking about Okay I'm wealthy what do you consider wealthy first And when you're wealthy should use trusts and which type because we're all different and I feel like a trust is a legal document It's locked You have kids the person who is listening right now driving on 101 may not Another one may be inheriting money soon in a trust can you put a trust in a trust everyone has questions about this stuff. What do we need to know? Well, we stick on the idea that we're dealing with the healthcare and long-term care The living trusts like I said at points not only a successor trustee to step into place if you're incapacitated So let's say you get Alzheimer's or dementia and you can't handle your affairs anymore names who's gonna step in But inside your trust you can also say look I never want to be in a nursing home. I want every single last dollar To be spent on in-home care now. I don't know how I don't really

36:21Like that. I would rather have somebody I would rather put in the trust document That's a take my preferences to be at home and then have a successor trustee that you trust to help make that decision when you can no longer when it's no longer safe to be at home or the cost of Care is ridiculous and you're gonna run out of money too soon On California, that's very important because The trust is helps you while you're alive handle a affairs, but you're incapacitated but alive So that's the trust and the power of attorney And then it helps your family avoid the cost of probate which is really high in California The probate costs and the delays of the probate court in California are ridiculous So you do want a living trust for sure Where you start to get into the irrevocable trusts is if you are Single and I'm gonna be worth over 15 million when you die or you're married and you're gonna be worth over 30 million When you die and that's when you can either have trusts that are created after you die or you can fund them while you're Live Hey, I want to put a trust together that It's gonna benefit my children

37:22But it's gonna protect the money from Devourses and things like that. So I'm gonna do a generation skipping trust Or and most of these are intentionally defective grant or trust where you put a bunch of money in You create a trust you put a bunch of money in the account you invest it for your child you let them use it You can even while you're alive you can see them use it But after you die there's a trustee in place And then after your child dies that money is locked in for your family tree the kids from your grandchildren It's not gonna be lost in a Divorce settlement or things like that or alimony If you do it the right way. So there's GSTs there's hey, I want to gift a bunch of money away But I want it to be available for my spouse in case They need care and I'm gone So you can do a spousal lifetime access trust which makes the money still even though it's irrevocable It makes the money available to pay for your spouse's care But it will definitely go to your children From that marriage when you pass away And so a lot of those have to do with people that are worth over 15 if you're an Oregon or Washington

38:24You have to start thinking about these things at a much lower level rob because of the state death taxes in Oregon and Washington It's a lot to think about What's the craziest trust story that you have maybe if you could think of one in 15 seconds or less If it's always the little things rob like wealthy families that had a Meet grinder for hunting that everybody fought about after dad's death and held up the estate for over a year Because nobody could figure out who's gonna get to keep this thing So it's always the small things. It's not the big thing So the rings the cars the antiques those are the types of things you spell out I think I'm gonna go get a meet grinder and put it in my trust and make my kids fight over Thanks Chad You