He's 62 With No Retirement

0:00Zander shops all the top term insurance companies to save you money get started at zander dot com calling relating to my dad he's 62 and about a month ago had a conversation with him about retirement and where he was with that and I found out that he is a little over $3,000 to his name right now and a checking account and he makes good money at his job makes over $100,000 a year but he has really high expenses and recent medical that has wiped out a lot of his savings so my questions relating to how can I help him start moving towards realizing our actual retirement in a timely amount of time. Mostly it would be coaching him, right? That's what you mean by help, right? Showing him some things to do. Number one, why did medical debt wipe out his savings that he not have health insurance? He does but he has he has a chronic health condition and so his

1:03deductibles really high and he has to he's had a couple procedures over the past couple years that he's had to pay out a pocket for because his deductible didn't cover all of it. Well, now after the deductible then co-pay kicks in. Yeah, I mean, I don't I don't know the specifics of this. Well, that's how insurance here's how insurance works. The deductible you pay 100% of the bills until you meet the deductible. After you meet the deductible typically it's an 80-20 after that they pay 80% and you pay 20% and so do you have any idea what is deductible? Is it like 10 grand or something? Yeah, it's it's pretty high something like that. Okay, so so he's gone through 20 grand by meeting the deductible two different years and then he had a procedure beyond that that he owed 20% of that procedure and that took some more money maybe another 10 or 15,000 we'll just call it so maybe he's gone through 30 or 40,000 dollars so he still didn't really have any money. Right. Right, I mean he didn't go through 200,000 bucks he went through 30 or 40.

2:07That's great. Okay, all right, I'm just making sure that we get the the table set here so he's worked all his life and he makes six figures and he saved no money. He's what we're really dealing with. Yeah, yep. Okay, and so is he single? Yeah, yeah, my parents divorced a few years ago so he's been on his own for a while. Okay, well if he called us on the error we would say get on a detailed written budget and pow cash. You make 100 grand. Well, my expenses are high, cut your expenses. You're living too high on the hog as we say in Tennessee. So what is his thinking expenses? From what I know and he's shown me he pays about 4,000 a month in expenses. Okay, well he makes 80, 500 or 80, 800. Yes, so yeah, that's part of my dilemmas. I don't know where. Yeah, I don't know where the money's

3:07going. He doesn't either. There are basics every family needs food, shelter, transportation, and term life insurance. Term life is simple. If you pass away it pays money to your family so they can keep paying the bills. Protecting the people you love is part of winning with money and when you're ready to do that go with who I trust. Zander insurance. Zander shops top companies to find the right coverage at the best price and they've earned my recommendation for nearly 30 years. Go to zander.com today. I don't know where the money's going. He doesn't either. Okay, so that, you know, so if you took over a company that was bringing in $100,000 a year and spending $48,000 a year and they didn't know where the other money was going the first thing you would do is they need a better system, right? They need to know where their money's going and so if you're going to coach him he needs to know where his money's going and if he doesn't pay attention he's going to retire and eat alpo. Yes. It's time to get your crap together. You're 62. You

4:08probably got 10 years of good hard work to do and he could pile up several hundred thousand dollars in the next 10 years making a hundred grand by managing very, very carefully. He could have a decent nest egg at retirement. Yeah, there's a second part to this as well if you have the time for it. Okay. He was recently involved in a real estate deal that went sideways and there's a chance he could be looking at a judgment payment to a bank of around $500,000. Well, that will bankrupt him. Yes. He hasn't seen $500,000 ever. Right. And so the only chance he's got there is to negotiate down and do you have partners in that deal? Yes. He was one of five partners. Yeah. And they didn't have him signed up because they thought he was going to pay. They had the other guys signed up because the other guys had assets. They're not going to bother your dad. Yeah. They're not. I mean, there's zero chance they're going to get any money out of your dad.

5:13Zero. He has no money and if they start putting lean on his stuff he'll just file bankruptcy. They know they're not going to get money out of him. And by the way, they knew that when they got his signature because he was already a broke guy then. Right. So they must have been leaning on someone else's asset base to make this loan. That's correct. Yeah. So they're going after they're going after the rich guy, not the poor guy. That's what they do. If I'm suing them, I'm going after the guy that's got money that I want to get the money. I'm not going to bother your dad. That's a waste of paperwork. Yeah. If they don't pursue him heavily, he shouldn't declare bankruptcy. No, he doesn't file bankruptcy on what might happen. Okay. If he has $200,000 saved and they're going to come get that, we'll have to talk about what we do. But he doesn't have any money today. And so what I'm going to do is not worry about that. I don't put that on the shelf and let it sit over there and cook. And I'm going to get my crap together and start stacking cash and building get with a smart investor pro. And let's get this stuff filled up and get your expenses cut and quit spending money like you're in Congress.

6:13You know why he did the real estate deal because he was desperate and scared and thought he's going to retire bankrupt. Yeah, exactly what it was. Exactly what it was. It's a move of a desperate man. And so let me get let me stop doing desperate things and I'll start doing steady things. Steady, steady, steady, steady, the tortoise wins a race, not the hare. Yeah, just would encourage you, Josh. This is going to be really hard to hear and even harder to do. At some point, you're going to have to talk to dad and see if he's willing to be guided or coached by his son. And if he's not, you're going to have to put up a boundary there. And it's going to be really, really hard. And the reason you have to put up a boundary is because you can't make your dad do anything and you're just going to have to really grieve that and then move on. So I hope that doesn't happen. But super clear in your heart and your desire to help. If he doesn't receive it, you're going to have to put up a boundary. Yeah. So mathematically, your dad has the ability to build a nest egg about 72. That's pretty substantial. But 62 years of sucky habits are

7:16in the way. Right. So is he going to train? Is he going to look in the mirror and go after 62 freaking years? I'm going to grow up or not. And that's not up to you as Ken's point. That's up to him. Yeah. Yeah. I need to come to Jesus moment. Yeah. He does not you by looking in the mirror and going, you're the problem. It's not somebody nobody took advantage of him and it's not medical. That's not the problem. None of these excuses for the problem problem is you make a lot of money and you piss it away. And it's got to stop. And that's that's what it comes down to. Now you don't want to say that to your dad. But that's what it comes down to. That's the math that we've got. And fixing the math is easy once the human being starts to get their crap together. But the humans are now the humans are an issue. But the math thing is pretty easy. So what we say around here all the time, personal finance is 80% behavior. It's 20% head knowledge. The problem with my money is the guy in my mirror. If I can get him to behave, he can be skinny and rich. But

8:19he likes donuts. It's a problem. And that's an issue. So I mean, but it's a behavior thing. It's not a it's not it's not a lack of knowledge. It's not a lack of ability. It's not it makes a hundred grand. It'll do it. The donuts are good, though, Dave. They're really good. Shut up, Ken. Zander is the best place to find term life insurance to protect your family. Visit zander.com for quotes today.