01: How to Retire on a Lump Sum

The New York Times reported that people leaving California outnumbered newcomers by more than 700,000 people between April 2020 and July 2022. A further breakdown shows that over 407,000 people left between July 2021 and 2022, plus an additional 343,000 people left California in 2022 alone. That's the highest exodus of any state in the US in history.

So, why are we seeing such a mass movement? The reasons are plenty, from cheaper homes and lower cost of living to lower taxes, escaping a rise in crime, the desire for a more relaxed, family-friendly lifestyle, and even political dissatisfaction. But alongside this significant lifestyle change, there are many elements to consider, like how to choose a state, what will my new cost of living look like, if healthcare needs will be met, what types of social or recreational activities there will be, the logistics of moving, and so much more. 

In this episode of A Place of Possibility, we’re joined by Keller Williams Certified Real Estate Planner Lucien Cazanave. Lucien is a born-and-raised Bay Area native who started in the emergency medical field and spent 20 years as an Oakland firefighter. His interest in real estate was piqued when he was tasked with packing equipment for retiring firefighters, where he routinely heard of their dreams and plans of moving elsewhere. These conversations with those firefighters and his personal experiences in moving and helping others move built his passion for helping people buy and sell their homes and even relocate across the country. 

Listen in as we discuss:

• The most important factors to consider when moving to a different state
• How taxes and cost of living in California compare to other states
• The best ways to learn more about the area you’re considering calling home
• Rules that need to be met when establishing your new domicile 
• And much more!

Whether you have years to go before retirement or you’re already there and ready to shake things up, we’re positive you’ll find valuable nuggets of information in this episode. Perhaps what you learn from here will shift your perspective and provide new and exciting insights as to how you should spend your golden years. So get comfy and press play!

With the roller coaster of inflation, interest rates, and more, 2023 was a wild ride. But the real driving force seems to be the dramatically pessimistic media. If one of your goals for 2024 is to improve your financial health, then you’re in the right place. In our opinion, the first step is to ignore market predictions, no matter how scary they seem. They’re usually far from accurate! We have real-life examples and stories to prove it if you don't believe us. After all, the market has shown time and time again that it always bounces back.

Along with a look back at 2023’s good, bad, and ugly, we’ll also be sharing special money-saving tips and insights that are not widely known or discussed. Uncover the secret to locking in a 3% fixed mortgage rate despite the current market, get resources on negotiating college financial aid packages to your benefit, and much more!

Plus, to combat the effects of negative media, we’re setting a positive tone for 2024 by sharing a few major wins from the year before. These include important medical breakthroughs, strides toward eliminating food waste, and even reduced our carbon footprint. You can rest assured that despite what you’re hearing, things are looking up!

“Listen in because this is the first and only time you'll ever hear this, probably in DMG history. Our marketing prediction for 2024 is that the stock market will fluctuate. That's all we can guarantee, folks.”

So, join us on our first 2024 episode of A Place of Possibility as we discuss:

• Some of the worst market predictions ever and how they negatively impacted the lives of many,
• Secret money-saving tips to help you navigate 2024 and come out on top,
• Positive highlights of 2023,
• How you can save money by being mindful of food expiration dates,

And more!

We know this year has a lot of great things in store, and we can’t wait to share the journey with you. Happy listening!

As the calendar pages flip towards the imminent 2024, it’s the perfect moment to execute those strategic financial maneuvers that will set the stage for a successful tax season and ensure you leave the year on a high note. If you’ve been tuning in regularly, you already know we’ve been through the year-end rodeo before, and for our newcomers, buckle up because we’ve meticulously crafted a hit list that’s bound to elevate your financial game. You’ll want to act quickly; many must be completed by December 31st.

In this info-packed episode, we’re diving deep into the realm of tax arbitrage, Roth conversions, backdoor Roth contributions, and tax loss harvesting – all crucial moves in your financial playbook. Discover the secrets to maximizing your retirement contributions, unravel the mysteries of tax law changes that could reshape your financial landscape in 2024 and beyond, and stay ahead of the curve with essential deadlines that demand your attention.

But wait, there’s more! We’ll uncover innovative ways to save through charitable donations, business and environmental investments, and exploring other financial gems that often slip through the cracks. When we proclaim that the time is now to whip your financial affairs into shape, we mean business!

So, join us in this episode of A Place of Possibility as we discuss:

• Required minimum distribution deadlines – this is important for our older followers!
• Tax benefits related to Qualified Charitable Distributions.
• How to lower your tax rate with specific retirement contributions – 401(k) and 403(b) contributions must be made this year!
• The tax-free wonder known as Health Savings Accounts.
• Special money-saving tips for those who are self-employed.
• Why Medicare beneficiaries must be mindful of their monthly adjusted income (MAGI) to avoid paying thousands in extra taxes.

AND MORE!

The countdown has begun, and we’re here to ensure you usher in 2024 with financial confidence. Get ready for an episode that’s not just informative but also transformative. Let’s make it a year to remember together!

Discussions about the housing market are always a hot topic. Here in the Bay Area, the housing market has been interesting, to say the least! Local reports say that since August of 2023, home prices are back on the rise after a 14-month decline, the longest period since 2012. And yet demand is still high, with some homes selling within just nine days of being on the market and interest rates hitting around 7% at the time of recording this episode. Many people panic over interest rates, but if we look at it from a historical perspective, it’s still historically low.

“The market supply is still low, and demand is still high, but interest rates have been challenging. Lately, we’ve seen some buyers back off as rates surpass 7%, while others are back and jumping into the game. It’s also interesting to see how fast homes sell in some locations. We had a house in San Ramon sell in nine days, and another in San Francisco, in the Richmond District, that went with 12 offers in about 12 days.”

Whether you’re looking to buy or sell, navigating the current market can seem challenging. How do you know if it’s the right time or if you’re making a smart move? Fortunately, it’s not all doom and gloom, and we have esteemed real estate expert Nathan Jines to help. Nathan holds an incredible reputation in the Bay Area for his commitment to excellence as a Broker Associate. Furthermore, he’s earned a master’s degree in education, has a deep passion for community service, with over two decades of Pastoral work, and is a Harvard School of Business-Certified Expert in the Mastery of Negotiation. Plus, his family has been in the real estate business since the 1800s. It’s safe to say you’ll definitely want him on your team!

Join us for this episode of A Place of Possibility as we discuss:

• What the current real estate climate is like in the Bay Area
• Why investing in real estate is a smart long-term strategy
• How to get the most out of selling your home
• Things to consider as a home buyer 
• How to navigate the market regarding interest rates

And much more!

We hope this episode answers your questions and gives you the insights to make your next smart real estate move. We learned a lot by sitting down with Nathan; we know you will, too. So, tune in for incredible insights, advice, and stories you don’t want to miss!

Elder abuse - it’s a topic often avoided because the reality of it is difficult to face. However, it’s a vital conversation and brings forward the importance of combating mistreatment through education and advocacy. Unfortunately, the elderly population is more susceptible to being taken advantage of due to physical and mental decline, and believe it or not, 1 in 10 Americans over the age of 60 will experience some form of elder abuse. It can come in various forms, from neglect and psychological abuse to physical and financial abuse. To make matters worse, only 1 in 44 cases of elder abuse are reported, according to The National Adult Protective Services Association.

If you’re like us and you find yourself wondering how such a serious issue among so many older adults can be allowed to go unreported and unresolved, then you’re in the right place.

Awareness is the first step to preventing elder abuse, and that’s why, in this episode of A Place of Possibility, we’re facing the complex realities of elder abuse head-on. After all, it’s easier to have a difficult conversation than it is to live with abuse.

Together, we’ll be talking about:

• The different types of elder abuse and what they look like
• Recognizable signs of elder abuse that may be impacting loved ones, whether at home or in a facility
• The best ways to protect yourself or a family member from abuse
• What to do if you suspect elder abuse
• What the legal ramifications are for elder abuse

And more!

During the discussion, Richard also shares a personal story about how financial elder abuse touched his family, specifically his father, who was 80 at the time:

“My father was a victim of financial abuse. He had a line of credit with a checkbook that he had never used sitting in one of his drawers, and unfortunately, his girlfriend, who was living with him, started writing checks and signing his name, but the money was going to her. Over two years, she stole about $80,000. We had no idea, and she was hiding the statements from him. Once I got wind of this, I called the authorities and tried to talk to him, but he didn’t want to take action because he was afraid of losing her companionship. We did eventually get the money back after she passed away.” 

At Del Monte Group, we want to help you protect your wealth and health. All older adults deserve to age with dignity and respect, so we hope this episode will provide more insights and help you take action.

Retirement is a milestone we all aspire to, and for many, choosing a lump sum can be the key to financial freedom. However, it can also be daunting. While enticing, the prospect of receiving a substantial cash payout from your employer can come with a particular responsibility and the need to make critical financial decisions. This lump sum represents your life’s work, and it can be challenging to make it last throughout your retirement. The fear of not outliving your savings, the uncertainty of how to invest wisely, and the ever-present question of whether you’re making the right choices can cast a shadow of unease over this opportunity. 

“There’s this old adage that once we retire, we have to be really conservative with our investments. And it comes from this place of not having a ton of historical stock market data. But today, you don’t have to do that anymore if you allocate your investments properly.”

In this episode of A Place of Possibility, we aim to shed light on this complexity and empower you with the knowledge and strategies needed to navigate this path with confidence and clarity. We’re diving deep into the world of lump sum retirement planning, guiding you through the crucial steps to retire with confidence and security.

Join us as we discuss: 

• The three main aspects to consider retiring on a lump sum
• How to tackle inflation in order to continue living comfortably through your later years in life
• Rule of thumbs to follow for keeping a healthy and effective retirement portfolio
• Tips for developing and maintaining a retirement budget
• Why must factor end-of-life support and care into your budget

And much more!

Our goal is for you to walk away with a wealth of tips, tricks, and strategies to help you successfully retire on a lump sum. Regardless of whether you have a high-risk tolerance or not, it is achievable. Your next phase of life is a place of possibility, and we're here to help arm you with the knowledge to make the most of it.

With aging comes many difficult decisions. One of those is determining the best living situation for your later years, specifically, choosing a senior living community. In fact, the US Department of Health and Human Services estimates that the number of adults 65 and older who will need to move into senior living communities is expected to reach 27 million by 2050. That’s a lot of people! While many options are available, ranging from independent living and assisted living to memory care and boarding, it’s easy to become overwhelmed. So, whether you’re looking for opportunities for a loved one or are interested in your future, this podcast will provide clarity and deep insights.

Join us as we sit down with Bryan Riddle, Owner of Care Placement Advisors, to discuss senior communities, resources, guidance, and more. Bryan has over 20 years of experience as a care placement specialist, making him the perfect person to answer all our questions. He and his team work hard to find the best options for each family’s unique situation while working to educate, empower, and go the extra mile to meet a loved one’s preferences, needs, and goals. 

“Sometimes the children want to push mom or dad into a community because they feel guilty. They’re worried and wonder - ‘Is mom okay?’ ‘Is she taking her medications?’ I love how much the children love mom or dad. However, if placement is to work, we want mom or dad to have buy-in. They must have some say in the process.”

In this episode of A Place of Possibility, we’ll be discussing:

• The variety of senior living options available for older adults and how to determine the right choice for your needs.
• We’ll do a brief overview of pricing, but it’s hard to pinpoint because costs do vary.
• The little-known fact that Medi-Cal doesn’t cover costs associated with a senior living community.
• Why you should consider working with a care placement specialist.
• An in-depth look into the process of working with a care placement specialist.

And more.

The decision to transition a loved one to a senior community isn’t easy and, as Bryan points out, often comes after a crisis, such as a sudden fall. It can be a scary and stressful time for the whole family. However, it’s not something that has to be faced alone and should be thought about outside of crises, too. Join us as we travel this journey of senior living possibilities together, uncovering new insights, opportunities, resources, and more!

Contemplating what will happen to you after you die can be emotionally challenging, so it’s no wonder most of us avoid it at all costs. However, certain end-of-life choices have to be dealt with one way or another. 82% of people don’t pre-plan their funeral and cemetery details, which means their family members are left to make tough decisions at the last minute while grieving, as well as take on financial burdens. In fact, 37% of funeral overspending is due to a lack of pre-planning.

In this episode of A Place of Possibility, we’re ripping off the band-aid, discussing death and how to plan for it. But don’t worry, we’re keeping it light and having fun along the way!

Joining us is Molly Gleason-Kodama, a dedicated Advanced Planning Advisor for Oakmont Memorial Park & Mortuary. She has a wealth of experience and expertise in guiding individuals and families through the intricate end-of-life planning process.

“Most people don’t realize there are two sets of arrangements. There’s the funeral arrangements, and then there’s the cemetery arrangements, and there’s a big difference between the two.”

For ten years, Molly worked as a Marketing Director in Assisted Living and Memory Care. The entire time she was doing so, she had a “second job” as an end-of-life support for the individuals and families she represented. Finding fulfillment in helping people with difficult decisions, she decided to make a career change, obtaining a degree in Mortuary Sciences in addition to her previous Masters in Gerontology. Molly’s journey into this meaningful profession is a testament to her compassionate nature and commitment to helping others during one of life’s most challenging phases.

Tune in as we discuss:

• The big decisions you must make when pre-planning your funeral and cemetery arrangements.
• Why pre-need planning is so vitally important. Hint: It ensures your wishes are met and saves your family the decision-making and costs when the time comes. Plus, there are NO cons when planning ahead. 
• What happens if you pre-plan your funeral but the mortuary later goes out of business?
• Environmental issues that may come up regarding burials and some green options that are popping up.
• Why using Costco or 1-800-Caskets isn’t the best option for purchasing a casket.

And more!

Pre-planning your funeral is a choice that empowers you to leave a lasting legacy and provide solace to your family during a difficult time. So, please take advantage of this opportunity to gain deep insights by joining us as we discuss the critical topics every audience member needs to consider.

Have you ever heard of the adage “shirtsleeve to shirtsleeves in three generations?” It refers to the inability of children and grandchildren to manage family wealth that has been passed down. And it starts with the classic American dream story. One of the first generations hits it out of the park with success, but by the third generation, two things have happened: One, the money is all gone, and two, family relationships have been laid to waste because of the impact of the money on the family.

In fact, there have been studies done on affluent families to understand the reasoning better, and it’s not because of the lack of planning – less than 5% of failures are due to any failure to plan, so the pros are doing it right – fist pump in the air! Instead, they found that 60% of these failures are due to a lack of communication and trust within the family. Unprepared heirs cause another 25% – no one is setting them up for the roles and responsibilities they will have once mom and dad are gone. In addition, many people will raise their children to believe they are poor or middle class – not letting them know there is any family wealth. We highly recommend against this!

Finally, the last 10% of failures are caused by having no vision or mission of what to do with the money. We’ve been working on family legacy planning for years at DMG. We put together the “Living in Possibility Process” to help families address these issues, and Richard even wrote a book called Endless Inheritance that also walks a family through how to address these various causes of failure. To order a copy of his book, follow this link, and to learn more about family legacy planning, please visit https://aplaceofpossibility.com/family-and-legacy/.

One solution to the failures we discussed is creating a family legacy video. If you think about it, there’s the traditional way of passing things on through simple conversations, but they can quickly become forgotten and disappear over time. Photos are good for capturing a single moment; books and letters can give us valuable information, and audio can preserve one’s voice. But nothing compares to a video.

It instantly takes you back to moments in time that can be shared and passed down and ultimately helps foster connections for generations to come. That’s why we’re excited to sit down with a true expert on the topic, Stephanie Shaterain. Stephanie owns fLO Content, a video production firm specializing in documentary-style pieces that serve specific goals or strategies, and one of their specialties is legacy videos.  

In this episode of A Place of Possibility, we’ll be discussing:

• The shirtsleeves-to-shirtsleeves phenomenon of family wealth dissipating through the generations and how to prevent this from happening.
• Inspiring family stories that were preserved through video, including one from the Del Monte family!
• An inside look into fLO Content, how they got started, how it works, and what to expect when working with them.
• Special tips on how you can help preserve your family’s wealth, traditions, and values.

And much more!

To all the parents and grandparents who want to secure the future of the upcoming generations, this podcast is for you. It’s never too early to start thinking about the future. Join us as we dive into the secrets to maintaining wealth and family legacy through the generations.

In simple terms, retirement planning is what we do to prepare for life when we stop working – financially and via lifestyle choices. It’s about determining specific goals for this future time in our lives and how we can achieve them by identifying income sources, estimating expenses, building necessary savings plans, and much more. We all know that preparing for retirement is an important endeavor that you can never start too early.

However, it can be a challenge that even the savviest individual can struggle with, making mistakes that cost them significantly in the long run - especially if they are trying to do it on their own.

Here at Del Monte Group, we’ve seen it all. Decades of retirement planning experience have given us deep insights into what works and doesn’t. We know what it takes to get the most out of retirement, and we’ve learned how to avoid the pitfalls along the way. In this episode, we’re going over the top 10 retirement investing blunders, starting from the bottom of the list and working our way up to the number one mistake people make when planning for retirement.

We’ll be talking about:

• How to plan for your retirement, when to start, and what options to consider
• Unexpected things that could be affecting how much you’re putting away in retirement funds
• How to get the most returns for your investments

And more!

Whether you’re just starting or have been saving for decades, this podcast applies to you! Retirement planning is crucial, and we want to ensure you’re not making any mistakes that will be detrimental to your overall financial and retirement health, so join us as we share our list and set the record straight!