Listener Questions for December, Ep #78

I love making podcast episodes as practical as possible and nothing is more practical than the real-life questions and scenarios that listeners pass my way. I decided to end up the year with a handful of episodes that focus exclusively on the questions my listeners have submitted. In this episode, you’re going to hear practical advice, in language you can understand. You can submit your questions (see the resources linked below). I’d love to answer your question in the future.

This episode covers a number of questions across a wide spectrum of topics. Should you move your portfolio to gold and silver to hedge against inflation? An elder-law attorney advises placing investments into an annuity and irrevocable trust to quality for medicare — is that a good idea? How do you work your way into retirement instead of going immediately into it? Should you hire an advisor if your spouse feels they can handle it?

You will want to hear this episode if you are interested in…

• Why I have a long disclosure at the end of my podcast (that nobody listens to)? [5:14]
• Should I move all my accounts to gold and silver because of inflation? [7:17]
• I’m nervous about my paycheck stopping & living on my savings [10:51]
• Linda asks about medical annuity & irrevocable trust to qualify for Medicaid [14:17]
• My husband handles finances, we don’t work with an advisor, do we need one? [18:40]

Should I move all my accounts to gold and silver because of inflation?

A listener says that their advisor has counseled them to move their entire retirement portfolio into gold and silver to protect against inflation. This may sound wise, but is it? First off, you need to keep in mind that retirement planning should be done with clear goals in mind. Those goals are the target you’re aiming to hit. If you want to hit it, changing your aim anytime the economy changes a bit is not going to be a good idea. Pulling all your investments in favor of gold and silver removes the potential of earnings or dividends. It also puts all your eggs in one basket, which I personally don’t care to do. Gold and silver may temporarily hedge your funds from inflation but remember, inflation doesn’t last forever. It’s possible that in a relatively short amount of time it won’t be an issue.

How do I learn to depend on my savings instead of my paycheck?

Every one of my clients has spent a lifetime earning money, saving, and preparing for retirement. They are in the habit of leaving their savings alone. Once retirement comes, they have to reverse that lifelong habit, spending what’s in their savings and not earning anything month to month. I have a great deal of empathy for how difficult that can be. If you’re struggling with that transition, perhaps you should consider a “graded” retirement or semi-retirement, so you have at least a little income each month to wade into the waters of retirement gradually. If that’s not possible, you may want to find a part-time role that you enjoy to keep some income flowing into your savings while you’re learning to spend your savings for living expenses little by little.

Elder law attorney: Create annuity & irrevocable trust to qualify for Medicaid

A listener writes to ask if the counsel received by an Elder-law attorney is something she and her siblings should consider to pay for her elderly father’s long-term care expenses. She says her father has over $1 million in savings/investments and the attorney is advising they transfer those funds into an annuity and irrevocable trust so Medicaid can pick up the bill for his long-term care. Scenarios like this get my blood boiling. What this attorney is recommending is wrong because it’s hiding her father’s money so the Medicaid system won’t know he could actually afford to pay for his care, himself. In situations like this, I think family members should be honest and honor their aging loved one by allowing him/her to care for himself/herself through the funds they’ve earned through the course of their lifetime. It was their plan and their intention, so allow them that dignity.