Jun 23, 2014|
Automatically Generated Transcript (may not be 100% accurate)
We're back with -- -- -- -- sandy beach his Chicago Tribune has an article by Janet kids start quoting some financial advisors saying. Don't risk your retirement to pay for your kids college. And is or asking if your retirement comes first serve the college comes first. And also. Sting was worth 306 million says that to his kids he's got six kids. Andy says don't expect they trust fund because we're gonna spend the money while we're alive and I think that's a good idea. And I said many times that things that you do not work for. You don't appreciate as much as if you work for them a gave an example of a classmate of mine who have parents use the and his sister. His parents were -- were doctors who were killed and train crash. And they inherited a million dollars each and this is a million dollars was a million dollars okay. And that he was broke a couple of years later. One of the things he did is took a wild crazy trip to Las Vegas well before any of these movies about a wild weekend in Vegas. It -- or my friend Don from Pennsylvania Don who still remember that trip. -- I remember you telling me about a non -- This is wild so basically he inherited a lot of money when I was young and and it was gone not to long after. Yeah you mentioned that he Easter he inherited when you think he actually had to wait till he was 21. Oh was it when they won by an object. But but he. But. They have returned 41 meaning. He was taught that tropical won't do a lot. So tell us your biggest trip by UN and I guys just inherited a million dollars. Well it was -- incredible because the day we left it was right after Christmas and you know. And he came over my house in cash at that time and this is back in the early 1960s. Basically. He threw about 40000 dollars in hundred dollar Bill Clinton so. -- -- He does which agent looked. Out the window wonder what was the name out there ready to commit. Or you're surrounded by the swat team. -- And now it's it's it's kind of where he got the money and I don't think if he had heard that money you would did over the way like you did -- God -- he was a victim about slow horses and -- woman to being -- and I think kind of intrigued him. Udall a story about going to a car wash and told me this story telling that story. While my job was to keep track of his money. 0100 dollar bills and we left with I talked him into putting some of that money in the bank is before we left. But he had a 8000 dollars in cash. We had in the apartment. Deeper. In front seat and we it was the wintertime and it was trial -- Orange Bowl Iowa Indiana one of those places. And we stop that the -- war we had to get out of the car and it. The that was -- -- our war what you weren't in the -- bunch of guys in their cleaning you know losing this match. And I I did such a poor job of watching his money invested in the compartment while I was. Was once you McConnell we value it okay. And it. And as -- I was pretty stupid well anyway. We get child was and being lost we were on the road heading towards Vegas and it took me a long time to count their money. Believe me we were like me be separate miles and rolled by atomic counted it. Crisis I think at 100 dollars -- And once it counted again that we don't vote counting and sure enough. It was a hundred dollar mr. and all he did was laugh and they did that the guys are probably nervous about money like that. And he has the intelligence only 600 dollars that they can hold once more that would have been obvious. Yep that's that's true and -- when you first all that's -- have never forgotten is that it's it's a great stories of when you went to Vegas. And and had today -- -- vacation like that make movies out of now. All yeah I mean I'm walking around there. We've got there on New Year's Day and bear this in mind I was eight days shot you've been wanting one. And I don't know they still have that rule out there and -- you have to be 21 to be walking around the casino right. And outlook I'm walking around like protection in New York City looking and everything. Back and a cop comes over to me and says -- or anyone and I is that knowledge is -- -- one he is what you can't stay in there. Well it is what you gonna have to leave. And the manager must've seen what was going on and he and he saw my body on all the money around so he didn't you need him will be. It's exactly -- wanted to get used to community and especially -- like when he. All of them come over explain that crop it. You know we can make an exception has all the personal now pop that's rated -- scorpio that the war is now. Relegating the with the task. Make sure nobody bought in a -- Now if you're glad and a quick lesson life right then in the -- if they -- yeah. And now I went best we all and this was a long time ago the last time. We knew he was driving a -- in Boston right. He was driving a -- I still maintain. It. -- His constant all kinds of marks the -- yeah she's she's -- I have. We have a lot of dealings in the mail and I talk with a he had been a cabdriver in Boston in -- Got kind of -- Hans. -- spoke to show up for a class reunion. He never made it. And I as far as I know we still live and I haven't had any communication with him in any way shape or form from the day we return from that trip to Las Vegas police. Well you know. Now they make a lot of money on movies like that and they had had a screenwriter nomads story probably would have written -- into -- -- and Don thank you I'll be over your house I've got 34 dollars in cash on spread on your rug. -- -- -- -- First -- -- -- -- people think you make stories up his his pay attention. Imagine getting that kind of money a million dollars. And then it's gotten. Just gone because I'll tell you one thing if you -- around games of chance. Doesn't matter how much money you got it can be on this on. And -- realistic and you do it for entertainment purposes which is what most people do but in that case he didn't and though we kind of lost track of them. All right we come back we wanna here for you don't risk your retirement to pay for college I know you don't want your kids stay in to have. Debt these are all lessons learned well. The lesson learned of borrowing in repaying is a good lesson. Instead of being one of -- out on the street. Who borrowed all this money from the government and other protests -- they have to pay it back they're looking for you know amnesty from debt. What kind of a lesson is there is that. If the government doesn't want what would they expect -- they expect the supermarket to do -- the car dealers do it. Not a good lesson. The lessons to be learned -- earn an honest living spend an honest dollar and enjoy your life. That way will be back with -- wanna -- thing is going the right thing by set up by spending his money. Instead leaving it to his kids will be back after the Purdue is reaching governor by the way those numbers we translated it. Our Chris dug up by our government calculator. And 40000 dollars of that time would convert right now. To 3151000. Dollars so imagine putting 3151000. Dollars in cash. In your car in an off to Vegas is that something that they write a movie about. -- -- Carl's junior and happily ever Carl's junior is franchise. For that -- that's and a million dollars which is what he inherited. At the time is approximately eight million. Sony's is gone is gone and it's easy it's easy to do that but the second question we have two questions your retirement. Should come first according to financial planners before you offer any money for the kids -- go to school. And then. Are you gonna spend your money. Well you gotta make every effort to leave the kids the last sent. Sting made news by saying he's worth 306 million dollars according to the Sunday times of London's rich list. 306 million and he told the kids they're not going to be trust fund children and he said there might not be anything left goes where you are going to spend it. He said that money will be an albatross around their neck and as outrageous as that sounds to some of -- I think he's right. I think he's right first of all I think he's right to spend as he will. It's his money and he and his wife -- ever. He should spend at the way he wants that there's no obligation to give it or spend it anyway except what they want the people that -- it. Secondly I think Vietnam. There's a lot of lessons to be learned about there's not giving a kid a free ride to college student loans oh learn borrowing and repaying. Part time job -- and help out with something that's fine but just hand them money or just writing the tuition and housing and food Jack. I think as a mistake because an -- lessons there there really aren't. And so are masking what well how you feel about it Tony you have two children. What do you think could you put your retirement piracy yet had extra money. Whatever -- -- and you're deciding where should I invested should I put it in a student loan and they student college fund or should I put it in retirement plan. Probably retirement plan I went through -- happy for my own college through grants and loans and it had to pay those -- back you learn things that -- so yeah I think I learned lessons from that and I don't because I see you know. Things and see it in your retirement that I would need to I would want a certain lifestyle I would not wanna just be. A locked in homer something that you -- your life yes -- -- retirement would be the way to. And look like this if -- hot what good would you be doing your children. If you put all of them for them they went to college and you had no retirement in your living very -- eagerly or even worse than that. And then you would be a burden to of them because hopefully they feel some obligation. Aren't you better off putting them on honest Omnia. Better financial plan so they make their own way and -- take care of from you take care of a situation for yourself plus the I think it would make them hungrier to succeed I think so I really -- You know obviously some people roll their eyes. What you can do anything you want with the money if you wanna give all the kids given all the kids who want a demo for her argument for right. What I'm saying is part of our obligation as parents is to teach children. How to live successfully. And living successfully doesn't mean waiting for your parents to de -- get their money that's not why that's not be enough just on a plan that should be in your head. Your head should be I'm self sufficient I'll do what I have to do to get through college -- pay back my loans and then I will spend the money where I want that's mine. As as I said many times before. My financial goal is simple and I've always -- -- -- I've always live within my means I made a spiral -- -- -- -- -- But I always lived I've never had a bill collector never a phone call on knock on the door ever. OK but my game plan is this I wanna have the minute I croak the exact amount of money. That there is to bear and I want the funeral director to say to whoever's looking after him after me. It will cost 101234. Dollars and eighteen cents. And the person will say exactly what he had even the eighteen cents as -- -- -- that. There we all come even and that's my goal. I don't think a lot of people's policies to be the leave a ton of money when they die for what point. You know if you have a charitable organization you -- Leave it to that's fine no problem that your money do it as you well what do good good things whether that's fine. But I don't think it's a Smart move to be giving your kids -- a full ride to college I really don't. Is going to be part counterproductive -- -- All right Jane -- Janet kids Stewart. In the -- Chicago Tribune. As financial planner -- Michael Gary offers advice to clients balancing retirement and college savings goals. And he says his advice is falling on deaf ears. I tell them not to do anything in terms of college spending that will jeopardize retirement. And they all fight me on that so the parents think. It's their obligation. To send their kids to college when indeed it is not. People look at how much money they're making and they don't want their kids to be burdened with -- debt. Now I can understand the thought process on that but I think there is a lesson to be learned on that. That you stay you've still live within your means and whatever debt you -- you -- back I mean look at all these people around the country. The era you know they've got their little signs in their marching to trying get their their college loans forgiven. That seems to be the big thing amnesty for repayment what the outcome analysts and -- and -- that nothing. And Obama is signed an executive order within the last couple weeks saying that the repayment. On college loans could not be more than 110% of gross monthly income you have so there already playing games -- -- find a way to forgive. And MLB no lesson. -- except what a soccer the rest of us were. Those student. It's of throes of a student that is a big problem parents rarely consider possible income sharks like job loss. They could derail. Both goals. The Yardley wealth management founded -- we just quotas says his clients are mostly late career. Or newly retired professionals with -- assets of more than half a million dollars. Affluent and more modest investments investors alike. Particularly those are putting their kids through college during the final years before even in retirement should keep these tips in mind. Deal with the debt upfront. Dumping of the parent who blindly takes on debts or child to pursue a college major that has little practical value in the job market bing bing bing. Keep in mind. I'm not down. I'm playing colleges or colleges will -- you what they have to sell. I know one person who sent their candidates or a woman girl. To college and in -- degree was in advanced degree in museum management. Now there's nothing wrong with museum management -- jobs you think there are four museum managers. -- a feeling Iraq at time. You know and so when you get out of school all that money all network and you've got something a degree in something that there's no demand for. So -- -- I like this financial planner he makes a lot of sense. A lot of kids get very comfortable in college. And and that they get through their normal college years chronologically and they stay in there and he taking advance courses because they like being a student. I think he -- like being grown up and when your college studies are done you get out of work like the rest of the people. The big people you know the ones who. Actually have learned not to vote democratic and that's another story that for a different time will be back with more or beach company we want your thoughts. Whether you come first your kids come first and saving for college or saving for your retirement also is staying at the right idea. What was kids there's six of them don't wait to get my 306 million I'm gonna spend it bad for him will be back there. You're hearing the voice of buffalo WDN. Callus now 8030930. Cell calls are free and star 930 or toll free line is 180616. 9236. We're back live -- -- did you pay your own way and call. What if Baghdad you and did you love payback or any student loans you have and well wouldn't it have been better if mom and -- a ponied up the money out of Frerotte didn't have to up. The theory is if they did that that you wouldn't have taken part time job -- concentrate on your studies the reality is. I don't think there's as much appreciation there and I think there's more if you have a part time job or student loan or combination of the 20. And Arnett and then pay it back it's it's it's a sense of accomplishment and the financial planners in this article say exactly the same thing. They also mention. Dealing with debt because a lot of parents don't want their kids -- have to rack up all that debt because they have to work for years and years sometimes. To get a paid off before they can even start their life has grown up. But they said 01 thing you should do. Is make sure that you give them as much information land or encouragement as possible. To study something in college that's applicable. To the marketplace. As far as a job as concern. It's one thing to take museum management. I know a friend of mine who has -- and a couple of advanced degrees said that the college's -- what they have this idea. And oftentimes -- you know and think of your students. Am I going to be able -- knows this. Allied to get a job or to help me get a job and if not. Give -- -- it's one thing to take things that just interest -- and that's fine -- wrong -- that. But if you're going to need your college education to help get to a job it should be something. In a field that is hiring. The -- according to its financial planners helping a child choose education that will feed him. Or horror career passions and then manage that debt that's the way it is they they also say encourage work. Talk what your college bound student in terms of the investment the family is making. This advisor said get the student to evaluate courses based on the scales here issue on the for the future. And to start early to translate those skills and internships and jobs and that's the kitty. That is an absolutely. I mean if you were going into the service. They would teach you things that you need for big jobs you'll need to do in the service. Then probably not a teacher museum management and I'm in this as an example because it's the most outrageous example I've ever heard of -- vote -- a few jobs there might be. Oh why not shoot for head of NASA or something like that. Legislation was introduced last month that would raise the annual income level to 30000 from 23000 and ensures maximum federal. Grant funding. -- key targets for financial -- very low income families tend not to have highly variable income. And that would change the financial -- equation so what we're looking at his area there is help available scholarships available. Financially it's available your parents below or some some relatively low once they help you financially. That's all fine on the wrong with -- but as a parent I don't think you should feel obligated. To take care of your kid your kids' college needs first. And and and neglect your own retirement plan because then they're gonna have been taken carry you assess the way it is. And regarding what's things that according to the London times this thing is worth 306 million dollars. And he has six children think about it give me fifty million have changed. About that. I've I've gathered -- six children -- You're each gonna get fifty million dollars a day that's only six million for me and mom to have a good time he's not gonna do that. He's already told them in not gonna get -- we're gonna spend. I'd love to be honest I really do because how hedonistic would you have to be. And it's things dates through planned to spend 306 million dollars and that's what he's worth now. Yeah I'm sure that it's not sitting at a coffee can in the backyard. I'm sure it's invest it somewhere. And if it is invested somewhere will be worth more than 306 million dollars. But I think the right plan is if you really want. What's best for your children. And you have costs and you're on stable ground. It's best to have them earn as much as they can of -- if you wanna album that's fine. But I idea highly skeptical of just saying go to college. Will pay for your books here -- your tuition and here's the car. Going on vacation going to spring break our area will pay for that I mean. I think that's the wrong ones and knowing that it's destructive Watson because -- show no respect for money. In and really I know you're not gonna believe this but no respect for word came from. It's just mom and dad have it -- gave it to me so I'm gonna -- it's like they -- I'm hung up on this 300 million paying that much -- that are really have been able to get past that how. Could he spend the watch party -- me he's not in his twenties. My guess is probably. Upper fifties or at least you know of these what's he gonna spend on the if you would have left for the kid if -- Just wanted to spend that he going get a gulfstream jet. -- no problem that would take a big chunk out of out right now yeah right here he could have vacation homes in various parts of the world probably does. You could -- I mean if you want to have if that was your goal. You can spend that money and the bottom line is when you -- you're gonna sell at all anyway because gonna go to your state. And you'll big kids -- Arafat. I mean if you wanna do that just take insurance large insurance policies out spend videos spend the 306 million dollars and then they get the results of insurance policies you don't have to give on the nest -- with things that you burn you burned. You can go but of course. Now when you're talking about it and act like Kos thing. Which -- I'm sure has has ago. Publishing rights and it's funerals all kinds of royalty rights things like that that's the gift is gonna keep on giving for a long time. Because his stuff is still -- still selling is it's not like he's a tiny Tim. In his catalog isn't worth a dollar 83. But that's I but I think it's right thing to say I know it sounds it sounds really selfish doesn't have to spend your own money. It's not selfish at all you are a bit you spend it. That's the way I think everybody should think. It's one thing to help your child and guide your -- another thing -- over indulge your child as I said. Think about the things that you earned. -- from the time you were kids all the time you're an adult you learn that you work for it doesn't matter what it is you have a great appreciation for that. Think about things that -- given to you. Yes you're grateful thank you very much yes I really appreciate it. But it's not the same it's not the same it was given to you you might have a thought that you appreciate the gift but it's not the same as earning it. Get your kids into a good rhythm of earning it because even begum fifteen million each. I mean there's a parable in the Bible isn't there. About about the big a gold coins -- -- of being distributed by different to different people some buried amendment grounds some made him grow. And today they came back with different results no biblical scholar but that is from the Bible. It makes sense to have them manage their own lives if you can help him a little bit that's fine. But don't try and do all the heavy lifting form or you're not going to be here forever. And when you're gone and are going to be helpless. And people will try and take advantage of them if they have immense amount of money Bill Gates has the right idea most of his money is going into the foundation. And warm Buffett most of his money is going to Bill Gates and Melinda Gates to invest in that foundation but there's so early some for their kids and that's fine. But it shouldn't be everything but the kids will be back with more. What do you say good money for retirement first. The kids as savings account for college. And is a staying right that he's gonna spend his money before he dies so don't wait for that trust fund to show up. That's his message who has six children will be back after the -- let's get to our calls -- this would be a Cynthia in Laporte thanks for colleagues of the you're on WB yeah. Alone in these Cynthia are you saving far. A retirement or college money are what what should come first. I am -- all they had. I I looked like it was equally. But the the problem now is. I want -- to college and and married student in 1960000. But to clear up in the middle and finished in 1972. In 1970. My university. Of buffalo tuition. Was 185. Dollars a semester. Today. Making that much any leak. I didn't have to pay that I had what's called it regents scholarship which you cannot get anymore. And every one had a chance to get the regents scholarship. When I took time off I -- the scholarship I paid her one semester and then they called me in the opposite end of the lovely. Federal government had a grant from any free tuition free fees. And a 198 dollars a month to live and they act in 1970. While still view it you know you got the government's -- right away. I'll only had promised to work out in the community. Which I tried to do that no one would hire me and that was signed. Now. My minimum wage job. But -- that school I cleared 99 dollars every two weeks. So in a month I could pay my tuition if I had to. Now a minimum wage person working radio essentially make 660 dollars a month the community college. Tuition. In Niagara county is 1944. -- residents the total. Non resident fully sixty well. University of buffalo -- an -- with these at 42127. Feet high while none resident 8905. But with a total. Of 101182. With a face. Why I'm standing in and I have heard this out later. What end student loan problem. Our program came up. Previously. Colleges. Get too tired what the trip that would bear. Once don't want came and they went crazy. They yet money can get and they got it. -- -- -- -- I think that's what had the problem of the student loan program itself. Yeah I think I think you'll you could be right about that the second question sting says he's gonna spend eight in Arizona Pamela got to spend their money and and not that necessary leave it to the kids. Is that a good idea or he says it would be a burden on the children is worth 300 and six million dollars. If you do emptied partially. Help them through school so that they have a stake in school and have worked for at. And you have given them the tools to be independent. And your mind. I'm with Leo and and and yeah you're right if you've given them the tools of a vacant make their own way then it's up to them you let go you take the training wheels off and it's up to them to keep a balance in life and a I think that's the best lesson you can teach -- We're on the same page Cynthia thank you very much. Yeah I mean as she's got exactly the right edit my thought on parenting or education is to prepare people. For being a grown up. That's what do you prepare them their life's lessons there are lessons learned from mom and mom and dad and your teachers and your professors and whatever. Those are all designed to do one thing to let you fly on your loan. All right and if if somebody is prohibiting that. And actually enabling you. To be something that. That doesn't require that then they're not doing any favors because when your run out of the fuel which in this case will be the money. Then you know on how to proceed in life fuel used to getting it for nothing now what do you do. As opposed to having the skills. Two to be able to adapt who -- the marketplace who's hiring what kind of jobs are available. Provide for your own family. Other than that you're always going to be. With your hand out your parents and I think the parents showed. Basically help with you can but there's no obligation to do it and there's a lot of questions to. About. Not end of life but near end of life treatment and care. There's a lot of vote and places that -- are really good job but none of them are Archie none of them are inexpensive. And so you can burn through a lot of money like that you gotta make sure that you're okay before you can help your kids. But there are there's some thoughts out in the community that. The grandma is actually squandering your inheritance. That couldn't be more wrongheaded it just -- and he. Grandma doesn't owe you anything without Graham are you wouldn't be here got it 'cause with a program are you wouldn't have a father or mother of one of the two anyway so you would have been enough thought somebody else's mind. So let grandma enjoy grandma's life. If there's any left over at the end that -- left over but that grandma and grandpa should be able to enjoy the fruits of their labor. They worked very hard probably their whole life. And you shouldn't be a thinking that it's your money already. And so that's a very strong feeling about that because I think a lot of people think like that. That it's it's there is it's just they're just waiting. You're not Prince Charles waiting for queen Elizabeth the step off the throne. Are you should make your own your own way Chris we've got some FaceBook postings logic give me one. Yes we do this -- comes from Thomas he says I don't agree with sting unless he -- has money to charity he can't take it let them. -- also saved my money for retirement because college is a -- Well of first all stinks says he's -- those kids are gonna get because they're gonna spend it -- part of -- spending could be you know. Certainly charitable organizations I think he does a lot of charity work anyway. And so yeah I don't think he's gonna just -- employed on fleet of airplanes but the bottom line is I think that that posters right. I don't think colleges scam but I do think they're college does try to sell you what they have to sell. And if they have a museum management class. -- and you think could be a nice way to kind of drift off and spent a few hours a shot I. Then sign up for -- expected to help you get a job when you need a job because it ain't gonna happen and there are very few of those jobs around patient and gas. It Altria Montreal 1806169236. -- 930 retirement or kids' college which comes first for you. The financial planners say retirement should. And are you gonna spend your money. Or he's going to there's some people who are you know living a threadbare existence when they die they -- six million dollars. You can't figure out why. May is maybe they just want the kids that have the money what kids -- -- -- -- obviously no appreciation for. Spend your own money while you can come out even at the end that you want a successful life will be back after this.