The Jon Sanchez Show

12/04-How to talk to YOUR kids about YOUR money

How many of you discussed your personal finances with your adult children when you gathered last week for Thanksgiving? I bet a few of you did, but it probably wasn’t the best time to do it. You see, discussing personal finances with your adult children can feel sensitive, but it’s an important step for fostering transparency, preparing for future responsibilities, and aligning expectations. This afternoon on the Jon Sanchez Show at 3pm, we’ll share with you how to effectively have that conversation.

Duration:: 35m
Broadcast on:: 05 Dec 2024
Audio Format:: other

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I feel like I had seven days today, so yeah, I don't even know what end is up right now to be completely honest with you. Exactly, exactly. That's the truth. Oh goodness. Well, let me tell you what Jason and I have lined up for you this afternoon. We, of course, will tell you about this record-setting day of trial. I effect our record closes for the major averages. We're going to give you the details, the reasons behind it, and so on and so forth. And then we're going to get into our topic. Yeah, we're going to pick on our kids. Now, I didn't have Bailey. My daughter joined me this Wednesday. Yeah, we got to pick on her. I didn't want her to pick on me on this subject here. But I figured you and I would hand to this one. Let's do it. But yeah, you got it. We can do it. So here's a question I want you to be thinking about here for the next few minutes before we jump into the topic. How many of you, I brought this up last week, that this was going to happen. I'm curious. Let me see a show of hands to all of you. How many have you discussed your personal finances with your adult children when you gathered around the Thanksgiving table last week? Well, I bet a few of you did. I bet a lot of you actually did. It always happens. Politics and money seemed to always find your way at the holiday table. I know. Not the two things you want, but it just ends up happening that way. Definitely not the best time to do it. And that's why I kind of gave out a little warning last week. Don't do this. It's not the time, but again, it always happens. But if you found yourself discussing your personal finances with your adult children, many of you are going to go, you know what? This is a really, really sensitive area. It's an important area, an area that, of course, we want to talk about fostering transparency, right? Jason and I have clients that say, I am not telling my kids one doggone thing about my finances. That's none of their businesses, we say, they add a few choice customers to that. Others are like, yeah, you know, I want to bring my kids to the account reviews. I want them to know everything that's going on. So what's that worth? Jim? OK, how do you go? Yeah. That was not planned, folks. But the bottom line is, it's up to you to determine, you know, what level of transparency you're going to be giving your adult children when it comes to your finances. We're going to talk about aligning expectations. That's something else that's very important. So the bottom line, what Jason and I are going to do for you this afternoon is we're going to share with you how to effectively have that conversation with your adult children. Again, we know it is not a comfortable one. It's a difficult one. But I think some of the highlights and things that we're going to go through with you will make that conversation, even if you already had one, it may be time to go back and do it again as we share with you, again, some ways that you want to really effectively communicate. Because you and I, again, well, let's do real life. Let's go back to the meeting you just had. What happened with that? Yeah, I mean, the thought was they brought in their daughter who's an adult to walk through how the process works. And they're not an older couple, but they're 70s, late 60s. And have the conversation about the what-if, how things work, how to IRAs work, how to trust work. And I'd literally sat there. And as you know, I very well love. I stood up and just give a teach-in, right? Let them understand, here's what happens if mom passes away. Here's what happens if dad. And these are conversations that we have all the time. And kids will see numbers on the screen that are probably in some cases bigger than they are used to seeing, right? And you know, you try to frame it just like we do is, yeah, that's a big number. But how much does that asset generate for you, success or beneficiary, or, you know, in your life, right? That you know me in analogies, you don't want to eat the tree. You want to eat the fruit, right? So this, how much fruit does this tree generate for you? And here's a way you should be thinking about it. This is how your parents think about it. You know, they worked hard, but you know, when they make the jokes of, you know, they'd better be nice and so on and so forth. You can change those, right? I said, yeah, I can take it right off there if you want. But no, it's just, it's a very important topic. And I would argue dovetailing into a different conversation I had with a different client today whose husband had passed away. I implore you. Please talk to your spouse about what you do with finances. Like, I mean, it, you think you are being helpful sometimes by doing all of X, Y, or Z. And something happens to you and they are completely confused and don't have a understanding of how the banks work and how the mortgage works. And this works with your kids too. These are things and I've talked to you before, right? You know, my wife and I, we talk to our kids probably too candidly, right? My kids, I talk to them as peers versus, I'm your dad, no, no, no, no, no, no, no. Unless they tick me off and I really do that. But, you know, they need to understand what things cost when you buy something, how does it work? What did you finance? You know, like, those are all conversations that, you know, we mentioned kids and it's, this is great to have with young children, adult children, especially as you're older. You know, again, we all have family reasons why we don't feel comfortable talking about it. Guess what, when you're gone, they're going to know. So, having these conversations now from a structure as far as trust or retirement accounts, you know. And lastly, you know, you talk to people and they're like, I always wanted to save 500,000 for Tina, so I'm eating cat food, right? And Tina probably doesn't need $500,000. She'd be thrilled if, A, like most kids, we want you to enjoy your life and what is left is ours, but maybe the right answer in these conversations helps spur more of a productive conversation. And you and I play moderator to some extent, right? Not in a negative sense, but we see these things, right? You know, I talked to all kinds of folks about all kinds of things and that's why we're advisors. Thank you so much, Kristen. You know, that's why we're advisors is we're here to provide knowledge based on experience that we've had. So yeah, it's a great topic, you know, introducing your kids at all walks, but certainly as you get older, it's good to start having those conversations so they know what, you know, what you want. And, you know, to your point, I mean, I'm older than you, but I'm still not a little old and definitely you're not. But yeah, we have these conversations with our kids now because you and I live and eat and breathe this, right? We see what happens. I mean, Lord knows that we can be taken off this earth at any time, age has nothing to do with it. You know, one of the reasons I kind of developed this topic this morning, part of my Thanksgiving weekend, I got to spend doing continuing ed. Listen, it's abrupt about it as you were getting it done months ago and it kind of waited the last minute. I'm like, oh boy, I've got a bunch due on December the 1st. So yeah, honey, I locked myself in my office for a bit. Yeah, exactly. But, you know, there was a lot of discussion of something, again, that you and I deal with and our staff deals with and that is, you know, having a trusted person. And this is something our industry folks, if you don't have an account with us, you may be hearing this from your advisor, which is the industry, our regulators, really, really want the advisor, i.e. Jason and I, to talk to you about having a trusted person. And again, age has nothing to do with it. But if we can't get ahold of you, maybe you're traveling for a month, most of our clients will let us know if they're gonna be gone for any length of time, which we greatly appreciate. But if we need to get ahold of you, we're gonna call that trusted person. If something happens to you, we need somebody that we can communicate with, especially if you are living on your own. And so this, again, is something the regulators really want everybody, regardless of age to have, is that trusted person? Let your advisor know. We can't talk real specifics about them unless we have a power of attorney and so on and so forth. But this is something somewhat new in our industry, 'cause to your point, Jason, it used to be very close-lipped, right? I mean, you know, by no means do I am gonna have a trusted person come in and meet with me or meet with my advisor and learn about my accounts. Well, you know, now we have clients that bring in, you know, especially if they're, like I said, a frown or whatever. - A frown or 100%. - Bringing their friends, exactly. Hey, I want, you know, my best friend Sally to know what's going on in case something happens to me. And we love it, we love it. The more people that we can, you know, stay in contact with the better off we are. The real quickly, the seven areas that we're gonna be touching on this afternoon, and we'll do our very best to get through all of these, is we're gonna talk about the first point, which is setting the tone for this discussion. Again, it's not gonna be at the Thanksgiving or the Christmas table. We'll give you some advice on, you know, when the right time and right place to do it. Helping you prepare what you're gonna share with these people, your children. Be transparent about the goals. Our fourth point, encouraging open dialogue, right? As Jason just said, he has a, you know, his kids are not even in their 20s yet. Well, let's see, how old is he? - No, he's 18, yeah. - He's not 14, yeah. - 18, yeah, yeah, exactly. But you need to have an open dialogue and be transparent on things. We'll talk about how we come into play, again, using professional guidance, whether it's us, your account, your attorneys, so on and so forth. We'll talk about expectations and then round things up, wrap things up with the importance of having this conversation on a regular basis. This is not something you do in December of 2024. This is something that you should be doing, probably at least once a year, if not more. If you have a lot of money, maybe on a quarterly basis, kind of like where you meet with your advisor on a quarterly basis, bring people up to date and let them know what's going on. 'Cause there's no harm to it, there really isn't. They can't come into your account and steal your money from you and so on and so forth. But let me tell you, we greatly appreciate it when we know there's kids involved and so on and so forth. So again, a very exciting topic. While I'm on the housekeeping side, let me squeeze this in before we go to break and then we'll come back and get to the market. We do have a great event lined up for you next Wednesday, Wednesday, December the 11th. Go to our website at sandchillswealthmanagement.com, click on upcoming events and sign up. It's our 2024 economic recap and 2025 investment outlook. We're gonna be talking about, is Jason and I always stress, it's important to learn all the time. That's what we love about this business. We learn each and every day, right? No one ever has this market completely figured out. So we're gonna go back and kind of recap, what happened in 2024 and what are the things that we can learn from and then that helps us build a strategy for success next year, right? So we're gonna be talking about a 2024 snapshot. We'll talk about some of the challenges that we face like inflation, interest rate volatility, et cetera. And then again, open up the crystal ball and peer into 2025. What's the economic and market forecast we have for next year? How are we aligning our portfolios, so on and so forth? And so we're really looking forward to it. We're gonna cover a lot of things. It'll be at 6.30 p.m. next Wednesday, webinar, it's all free. Just go again to the Sanchez Wealth Management site, click on upcoming events, put your name in and you're good to go. 6.30, December the 11th. We just can't wait again. 2025, obviously it's gonna be here before we know it and we gotta hit the ground running as we always do, right? We don't wanna wait 'til the third or fourth week in January and say, "Oh, you know what, what's my allocation? "What do I need to be thinking of this year?" It's too late at that point. Gotta hit the ground running as the saying goes. So we look forward to seeing all of you there. All right, let's turn it over to Kristen Snow. We heard from her once. Let's see if we can hear from her again. (laughing) Hi, Kristen. Welcome back to the John Sanchez Show on Who's Talk 780K, which was Jason Gump. All right, let's get down to the market recap and then we'll get into our topic. How to talk to your kids about your money. All right, here's how we finished up. As I mentioned earlier, record setting day for the major averages. A 309 gain on the Dow, 0.69%. We closed at 45,014. The NASDAQ gained 254 points, 1.3%. Closed the day out at 19,735. S&P up 37.61% with a close there of 6,086. Take it away, my friend. Give us the details. Yeah, I mean, we had carryover from some of the news that was announced over in Asia as far as semis and the restrictions and good numbers out of Marvell, pure storage, CRM knocked the cover off the ball, saying all the things you wanted to hear as far as their agent force AI, which is they're gonna be front footed as far as the endeavor to reduce some redundancies, some parts of the workforce that can be automated. They're gonna be the first one out there. And it was early in the quarter and people had expected that there wouldn't be a whole heck of a lot of number increase for what they've started to already witness as far as companies looking to adopt that in their own ecosystem, but it was much better than expected. And it sounds like Sky's the limit. AI, AI, AI, I think they've said it like 28 times on the call. So, you know, these are things that are going to be great in the future to have some of these stocks, maybe over a shot because of all the times that they say those things into the quarter time will tell, but there's been a big move back into the mega caps. You've seen the all other areas, the financials, utilities, industrials, they all underperformed a bit today. As the last two sessions, you've seen mega caps pick up again. They had lagged for a while and people are now moving back into these cash cows, the meadows and Googles and Salesforce, for example. So that was a big part of, I would say, the underlying theme today. We get a decent amount of economic data. I would say the ADP number coming in at 146,000 versus 170 being the estimate a little bit lighter than expected. Got people moderately excited about the jobs number. We're going to see here pretty darn soon that we're not overheating and that the Fed is still on a glide path to lower rates here in a week or two. You had Powell today at the Deal Book Conference. It was, I thought, pretty well spoken, discussing where the economy is. Andrew Ross's working through quite a few crypto questions and dollar demise type questions. I mean, he went as far as pushing back, saying that we are in a good spot, even debt to GEP-wise, sort of as we've talked about. You know, but the trajectory is poor, right? He's talked about that it's unsustainable to continue on this path, right? That the thought is, if we can get a balanced budget and even somewhat inflate our way out of it, that the patient's not dead yet is, I would say, the takeaway, but judging by your-- Your face is your say that. I'm smiling, I'm smiling. But I don't think the US is dead, right? I think that the debt levels are very much unsustainable in terms of the growth rate, but they're still in line with GDP, right? The simple analogy that I've been talking about, I'm not trying to defend it by any stretches, you know, if you've got someone who makes $500,000 a year and they have a $500,000 home and they're paying seven to eight percent interest rates on it, you wouldn't say that they were dead, right? And that's really the case of where we are now. Our GDP is in line with our debt levels and they're paying a four percent interest rate, right? So it will get worse if we continue on this path, but I would say that we're not, you know, where I'm not dead yet if you can modify it on it a bit. You're 26% debt to GDP ratio, right? Roughly, yeah, but it's the debt level, right? Or rather the cost of the debt, right? That, you know, how much does it cost you in terms of percentage of GDP? And that's what I was saying. It's about seven percent of GDP is spent on debt servicing, to think of an analogy of, eh, I got a seven percent interest rate on my home, but yeah, it continues to get worse every single day, right? And until we get a balanced budget, having a two trillion dollar deficit just makes debt worse. And like we talked about before, the average yield on our debt is three and a half percent. And if you go look at the bond market, you know, the best rate on the board is what, 420? So no matter what, wherever they're choosing on the curve to refinance their debt, rates are going up in terms of the cost, right? And kind of the pickle that some baby boomers are in if they wanted to downsize their home, if they're keeping a mortgage that's of similar ilk, their payments are gonna go up, you know, two, three X from where they had before. So, you know, it can get worse, but hopefully we get this all figured out that the Department of Governmental, whatever E stands for, efficiency, can poke some holes in all this garbage spending and we can get some things fixed. But, you know, I'm cautiously optimistic, I told you. - You are, yes. - I am too, mm-hmm. - I'm just impressed, I'm just impressed. Like I said, I think the tables have turned. I've become you, you have become me. - As long as we both don't become one side of the boat, then we're, yeah. - Right. - Yeah, our clients have a problem. - Yeah, right, exactly. - That's true. All right, excellent summary. And we do wanna mention back to the sales force side of it. You're wondering why the Dow was so strong. It was just because of sales force, I mean, the stock just rocked it today. $36.44 gain up, 11%, $3.67, 87. So it, and waiting a video had a good day today, too. You mentioned some of them. - Yeah. - Right now, including a little after hours, up $4.40 at 3.14% gain, $1.44.66. And, I mean, go right on down the list. - Yeah. - And, you know, it's just, it's like the little train that you just can't stop. It's just, this market just keeps going and going. But as I mentioned to a client right before the show, you know, what goes up must come down at some point. So this is the time that we always like to remind everybody. Don't get out over your skis, as Jason likes to say. Don't get out over your skis. You know, be careful with everything. Don't get overly giddy about, oh, this market's gonna do nothing but go up. It's just so easy to do when we're in the, in a bull market like we are in at this point. Just take it, you know, stride by stride, day by day. Be appreciative of these gains. Because, you know, we're in that territory now, folks, where we're setting these records day after day after day. We're in that territory, we're literally, they'll say it a million times. - Rug pull. - Yep, you got it. Rug pull, you wake up and the traders go, enough is enough for closing the books. We're heading south and boom, they start selling everything off and ego. What happened, what changed? Nothing changed. It's just, we've had, I mean, one hell of a year, now stacks up 31 and a half percent. S&P is up 27.6, Russell's up 19.7, Dow's up 19.4. I mean, close the books now. I wish today was December 31, Jason. We could be done with it. We don't have to worry about between now in the next couple of weeks. But I think 2022 is a good playbook, if you're playing the bear case, right? We came into the end of 2021 into 2022, incredibly optimistic, right? And by mid-January, things started to make lower highs and lower highs, and then by May, we were down 27%, right? That's how fast things can happen. - I just had that give them the same client. I said exactly that same thing, my friend. And I said, look, right now we're on a sugar high because Trump's gonna do all kinds of great things for the economy, but that sugar high will come to an end when reality sets in after January the 20th. And tariffs are implemented and some of the things that he wants to do that the market may not be too thrilled about, that sugar high is gonna come to a quick end. And again, you've got to be careful about it. And that's why I keep saying don't get overly optimistic. Be always have that defensive plan ready to go. You know, if you're in an IRA, there's nothing wrong with taking some money off the table and preserving some of those gains. Not saying you need to, but be ready to, right? You don't have any tax consequences, et cetera. So we're gonna enjoy it. Like use a surfer analogy. We're riding the wave all we can. And at some point when that wave starts to crash, we're gonna get the hell off and be ready for the next set that comes in, so it's interesting times we're in. It's great, it's a lot of fun. It really is. A lot of good stuff to talk about each and every day. Speaking of talking about, we're gonna be talking about how to talk to your kids about your money. Not their money, your money. Got some great ideas for you. And we'll share those with you when we come back. But first, let's turn it over to Greg Neff. He's got news trafficking with her. Hey, Greg. Welcome back to the John Sanchez Show on his talk. 780k awaits with Jason Gump. We finished up 309 on the Dow. The NASDAQ gained 254, the S&P, higher by 37. Oh, it record closes. You know, I don't get involved in social media, but I did the other day download Trump's Truth Social Jason. You know, so I got the app on there. So, you know, obviously get updates. And I was just looking at when that just came in. I think it was right before the show started about who he nominated as the new IRS Commissioner, et cetera. But if you scroll down a little bit, somebody posted on this, I had to read this, this is so perfect. This is the biggest scam in life. Okay, ready? One, paying taxes on the money you make. Two, paying taxes on the money you spend. And three, paying taxes on things you own that you already paid taxes on with the already taxed money. That makes sense. Yeah, very well said. That you like that one. All right, speaking of money, how do you talk to your kids about your money, right? We're going to get into our details here because this is a very touchy area. But again, as we said at the beginning of the show, very, very important that you have this discussion with your adult children. All right, we're going to start with the first pile. Take the first one, Jay, you go number two, et cetera. We'll start with this one. Setting the tone. Well, as I said last week, as I said at the beginning of the show, hopefully you did not have this conversation at the Thanksgiving table. Please don't have it at the Christmas dining table or around the Christmas tree as the grandkids are opening presents. That is not the time. You got to choose the right time. You got to choose the right place. Look at it as a business meeting, right? This is not you with your kids. This is you acting as a CFO, pretend your kids are basically your board of directors, right? You're not going to sit down in your pajamas if you're a CEO or a CFO and talk to your board. You're going to be dressed nicely and you're going to be in the business environment. Do the same thing. Pick a quiet, private setting where everyone feels comfortable. Limit the distractions. Don't have the kids running in and out. The dogs running in and out. You want to be able to get everybody's undivided attention. And then the last point on this one is frame the conversation. Let them know why you are bringing up the finances. I promise you, if this topic has not been brought up between you and your kids, they have thought about this. Whether it's like, hey, I wonder how much money I'm going to inherit or, hey, you know what? People aren't stupid. Hey, how many take care of mom and dad? If they fall to poor health or whatever the case is. So you got to frame it up. Tell them why you're bringing this topic up. Whether it's, hey, I want to be transparent with you. I want to tell you exactly what's going on in our financial lives, whether you're talking about the futures we'll talk about. These are the things we're thinking about down the road. Or if you're ready to make a specific decision, right? Hey, I realize my mental faculties are going by the wayside at kids. I need some help right now. I read a great article today in the Wall Street Journal. I forget the gentleman's name. He's been around for a million years. He's somewhat semi-retired. And he wrote the title of the article was, "The older you get, the more you rely upon your kids for advice." And he talks about how his adult children have he and his wife and a lot of their major decisions nowadays. And I'm thinking, you know what? That's kind of what happens. That's just kind of the transgression of life, right? You get older and you go, you know what? I'm not as mentally sharp as I used to be, but man, my kids got an MBA or my kids, you know, a real success and they monitor their money. Well, let me get his or her advice on that. So there is nothing wrong with that. Let them know why you want to sit down and have the conversation, but set that tone. Number two, Jay. Yeah, I think, you know, have a guideline of some kind of what you want to talk about. So it's not just a yammer session, right? You don't get anything accomplished where you're just sort of discussing everything all at the same time, right? Retirement plans, goals, you mentioned earlier, you know, how much money, mom and dad do you have saved for, you know, long-term care? You know, what does the situation look like if one of the two of you got sick? Do we have a trust in place? How do the beneficiaries work, right? It's just educational and oftentimes the kids don't know and the kids don't even know they don't know, right? And so like we talked about earlier, if you have an advisor, this is a great place to have that conversation. Because you've got someone in the room who, you know, I always say I speak jive, right? Like I know the words that you're trying to get out because I do it all the time, right? And so, you know, the secret airplane, I speak jive, it's amazing. (laughing) But yeah, but it is true. And having someone there who can help on both sides, right, where the kids are asking questions that they're not quite sure what they need to ask and same for you, but you know, the caregiving, the estate planning, the retirement goals, it's a good place to get things started just so the kids have a good understanding of what their future looks like too because we make assumptions, right? Oh, you know, if I get sick, you know, my kids will take care of me or maybe they're not or they're not part of that plan, right? They think they may be yet you have long-term care and you've already planned out some things. It's often nice to let people in on sort of what your thoughts are. - Absolutely. And you know, just to expand a little bit further on what you just said or actually, excuse me, what I just said earlier, look at this as a business meeting. I love your idea of doing this in the advisor's office. I think that's a great point I didn't think about. But come prepared, right? This is again, this is a business meeting. This is not mom and dad and kids, you know, sitting around and having hot chocolate. This is a serious business meeting. You got a lot of money at stake. It's your life savings and so on and so forth. Have an outline, you know, what the meeting's about. Bring current financial papers, you know, here's my income, here's my savings, the brokerage accounts, bring the copy of the trust, so on and so forth. I mean, Jason and I can whip through a trust at no time, right? Other people, it's hard, right? It's like, geez, what page was this on? And again, this is where an experienced professional will definitely help you and again, make that quote, that business meeting. All right, our third point. Be transparent about your goals. Explain why you are sharing this information. It will absolutely benefit everybody. For example, what I mean by this is, reduce the financial surprises. Jason gave the story earlier of a client that he met with. I've had my own stories, of course. I've shared with you over the years. Kids do not want financial surprises. Spouses do not want financial surprises. Communicate with everybody. Secondly, help them understand the role in the state planning or caregiving arrangement. Nothing puts the hair up on the back of my neck more than when we sit down and talk to a client about their trust. Oh, by the way, who did you name as your trusty? Oh, you know what, I name my son. Did you tell your son you named him as your executor? Well, no, he's my son. No, let that person know. Son, daughter, friend, family, it doesn't matter. Let them know. That is a very, very serious situation and position that they must take. Not everybody is qualified to do it. Let them know, understand what the roles are gonna be and the same thing on the caregiving side of things as we discussed. And then finally, financial literacy, right? If you may be surprised that your kids don't know as much as you do. They probably don't have the amount of money you do. You, as we've said over and over again on this show, you have an obligation, a responsibility to your child to teach them what you know, right? They're gonna make their own mistakes just like you did, but hopefully they won't repeat your mistakes. They're gonna make their own, right? But teach them about finances. Tell them about the show. Have them listen to our podcast. Read, give them real life examples. Hey, you know what? Mom and I started with, you know, $50 a week paycheck and, you know, now look, we got a multi-million dollar portfolio. How did you do that? Well, we did it this way. Did it that way. You can, and you're gonna get tremendous satisfaction teaching your kids how you built up your net worth. And, you know, bottom line is teach them, teach them, teach them. Let's wrap it up with Kristen Snow. She is in there right now. Traffic center. She's gonna teach us about the highways and highways. How are we doing, Kristen? Welcome back to the John Sanchez Show on Newstalk 780KOH. Well, if you missed any of our shows, we invite you to pick up our podcast at any of your favorite podcast distributors. All right, this will be on a podcast here shortly. What are we talking about? How to talk to your kids about your money. A very delicate subject. Hopefully, what we've shared so far is gonna make this conversation much easier for you. We've covered setting the tone at the meeting. Prepare what you're gonna share. Be transparent about your goals. Jason, take us away on number four. I think, you know, open dialogue is very, very important. You know, you don't wanna talk at your kids. You want to really help answer any questions that they have, right, and at the same time, it probably helps you feel more comfortable that they're aware of what your concerns are or, you know, what you want them to be caught up on, right? Versus just saying, blah, blah, blah, blah, tell, tell, tell, tell, tell. They probably have questions, right? They've never done this before, too. You're the only parents they've ever had, just like we talked about with retirement. You've never done this before, right? It's normal to be nervous about it or concerned. This is the same thing. When you're talking to someone about something that may be uncomfortable, it makes sense to say, you know, do you have any questions about us or any questions about what our plan is? And go from there. I think it's an emotional conversation. I mean, oftentimes you're talking about end-of-life planning, right? No one likes, no, no, no, mom and dad are gonna live forever, right? Like, that's kind of how it goes, it's not. And it's a good thing to talk to them when they're in a good spot. It's not a, I'm gonna die and, you know what I mean? So it needs to be sort of, as you talked about at the beginning, right place, right time. It isn't a spontaneous conversation and sometimes structuring it where it can be an open dialogue with a moderator of some kind. As I mentioned, a financial advisor or friend who does this professionally, it can be helpful. - Absolutely. I just wanna add to just one more emphasize what you just said. It was so great, greatly a moment ago. And that is, as parents, we forget that this is an emotional discussion, right? You may think that your kids are all worried or, I shouldn't say worried, maybe excited (laughs) that they're gonna be getting an inheritance. But I promise you, they are more concerned about, how do I take care of mom and dad from a health standpoint? What happens if dad dies and mom's left alone? They're thinking of all the emotional things. So yes, we're in a business setting where, you know, we came prepared, we've got financial statements and so on and so forth. But remember, you are talking to your siblings, right? Or siblings, you're talking to your children and they may have their siblings there with them. It is a very, very touchy, difficult conversation. And that brings us to the fifth point, which we're not gonna spend much time and we've already mentioned it. Do it in the room with, you know, another professional, with a financial advisor, your estate planning attorney, maybe your CPA, or the great thing, especially if you have a larger state, bring all of us together, right? Get the CPA, the financial advisor and the attorney, all sitting down at the conference room table and have everybody there. Because if you have a complex estate, there's gonna be tax questions, there's gonna be, maybe we wanna bring in a real estate professional, you know, there could be real estate questions, there could be a number of different things and that's why to Jason's point, have that open dialogue. So my fifth point, Jason, incorporate professional guidance wherever possible. You don't have to be the person that has all the answers. That's why you have professionals, that's why you have a team to take care of you. Let's go to number six. - Yeah, you know, expectations. You know, like we talked about a bit earlier, do you expect, as a child, do you expect me to be your primary caregiver if something happens to one or the two of you? Remember, these are conversations that are way easier to have when everyone's of sound mind versus later on when it is a much touchier subject, rather, and emotional. These are, sometimes it's more, you know, more clean for everybody to be frank about things versus, oh my gosh, now we are in it, what do we do? So yeah, it's an expectation conversation and it, you know, it's good to have earlier rather than later. - And I think to your point, this conversation I had with our clients right before the show, this person was taking care of, of a parent that's not in the best of health. We had a long conversation, exactly as we're talking about. This is real life stuff, folks. Something to remember, if you'd say you want to take care of mom or dad, you better clear it with your spouse because I've seen this happen many times where the other, your spouse, that's not the child of the parent that you're taking care of, gets really upset. You've changed your lives, basically, and you're taking care of this, you know, father-in-law, mother-in-law, it can put a lot of strain on a marriage, so make sure that you involve your spouse in these expectations and in these discussions. And as we said earlier, revisit the conversation regularly. It's not just a one-shot deal. Talk to them on a frequent basis. Great job, Jason. We'll do it again tomorrow on the John Sanchez Show. God bless, have a great evening. - This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting John at Sanchezwealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer, and investment advisor. Remember FINRA SIPC. Securities offered only in states John Sanchez is registered in. Sanchezwealth management LLC and independent financial group LLC are unaffiliated entities. - It can get lonely climbing Mount McKinley. So to entertain myself, I go to ChummaCasino.com. At ChummaCasino, I can play hundreds of online casino-style games for free, like online slots, bingo, slingo, and more. Plus, I get a daily login bonus. 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