He's 62 With No Retirement

Zander shops all the top term insurance companies to save you money get started at zander.com calling relating to my dad He's 62 and about a month ago had a conversation with him about retirement and where he was with that And I found out that he has a little over $3,000 to his name right now and a checking account and He makes good money at his job makes over a hundred thousand a year, but he has really high expenses and Recent medical debt has wiped out a lot of his savings. So my questions relating to how can I help him? start moving towards Realizing our actual retirement and a timely amount of time Mostly it would be coaching him, right? That's what you mean by help right showing him some things to do number one Why did medical debt? Wipe out his savings. Did he not have health insurance? He does but he has he has a chronic health condition and so his deductibles really high And he has to he's had a couple procedures over the past couple years that he's had to pay out-of-pocket for Because his deductible didn't cover all of it. Well, no after the deductible then copay kicks in Yeah, I mean, I don't I don't know the specifics of this. Well, that's how insurance here's how insurance works the deductible You pay a hundred percent of the bills Until you meet the deductible after you meet the deductible typically it's an 80-20 after that they pay 80% you pay 20% and so do you have any idea what his deductible is like 10 grand or something? Yeah, it's it's pretty high something like that. Okay, so she so he's gone through 20 grand by meeting the deductible two different years and Then he had a procedure beyond that that he owed 20% of that procedure and that took some more money maybe another 10 or 15 thousand We'll just call it. So maybe he's gone through 30 or 40 thousand dollars. So he still didn't really have any money Right, right. I mean he didn't go through 200,000 bucks. He went through 30 or 40. That's correct. Okay All right. I'm just making sure that we get the table set here So he's worked all his life and he makes six figures and he saved no money is what we're really dealing with yeah, yeah, okay, and so Is he single? Yep, yeah, my parents divorced a few years ago. So he's been on his own for a while. Okay Well, if he called us on the air, we would say get on a detailed written budget and pile cash You make a hundred grand. Well, my expenses are high cut your expenses You're living too high on the hog as we say in Tennessee So, what is his stinking expenses From what I know and he's shown me he pays about 4,000 a month in expenses. Okay. Well he makes 8,500 or 8,800 Yes, so yeah, that's part of my dilemma is I don't know where yeah, I don't know where the money's going He doesn't either there are basics Every family needs food shelter transportation and term life insurance term life is simple If you pass away it pays money to your family so they can keep paying the bills Protecting the people you love is part of winning with money. And when you're ready to do that go with who I trust Zander insurance Zander shops top companies to find the right coverage at the best price and they've earned my Recommendation for nearly 30 years go to Zander comm today. I don't know where the money's going. He doesn't either Okay, so that that you know so if you took over a company that was bringing in a hundred thousand dollars a year and spending $48,000 a year and they didn't know where the other money was going The first thing you would do is they need a better system, right? They need to know where their money's going And so if you're gonna coach him, he needs to know where his money's going and if he doesn't pay attention He's gonna retire and eat Alpo. It's time to get your crap together. You're 62 You probably got ten years of good hard work to do and he could pile up several hundred thousand dollars in the next ten years Making a hundred grand by managing very very carefully. He could have a decent nest egg at retirement Yeah, there's a second part to this as well. If you have the time for it, okay he was recently involved in a real estate deal that went sideways and There's a chance he could be looking at a judgment payment to a bank of around five hundred thousand dollars Well that will bankrupt him Yes, he hasn't seen five hundred thousand dollars ever and So the only chance he's got there is to negotiate down and do you have partners in that deal? Yes, he was one of five partners Yeah, and they didn't have him signed up because they thought he was gonna pay They had the other guys signed up because the other guys had assets. They're not gonna bother your dad Yeah, they're not. I mean there is zero chance. They're gonna get any money out of your dad zero He has no money. And if they start putting lean on his stuff, he'll just file bankruptcy They know they're not gonna get money out of him And by the way, they knew that when they got his signature because he was already a broke guy then Right, so they must have been leaning on someone else's asset base to make this loan That's correct. Yeah, so they're going after the they're going after the rich guy. Not the poor guy. That's what they do If I'm suing them, I'm going after the guy that's got money. I want to get the money I'm not gonna bother your dad. That's a waste of paperwork Yeah, if they don't pursue him heavily is he shouldn't declare bankruptcy No, he doesn't file bankruptcy on what might happen if he has $200,000 saved and they're gonna come get that We'll have to talk about what we do, but he doesn't have any money today And so what I'm gonna do is not worry about that I'll put that on the shelf and let it sit over there and cook and I'm gonna get my crap together and start stacking cash and buildings get with a Smart Vista Pro and let's get this stuff filled up and get your expenses cut and quit spending money like you're in Congress You know why he did the real estate deal because he was desperate and scared and thought he's gonna retire bankrupt Yes, there's a Hail Mary. Yeah, exactly what it was. It's exactly what it was It's a move of a desperate man. And so let me get let me stop doing desperate things. I'll start doing steady things Steady steady steady steady the tortoise wins the race not the hare. Yeah, I just would encourage you Josh This is gonna be really hard to hear and even harder to do at some point You're gonna have to talk to dad and see if he's willing to be guided or coached by his son And if he's not you're gonna have to put up a boundary there and it's gonna be really really hard and the reason you have to put up a boundary is because You can't make your dad do anything and you're just gonna have to really grieve that and then move on So I hope that doesn't happen But super clear in your heart and your desire to help if he doesn't receive it, you're gonna have to put up a boundary Yeah, so Mathematically your dad has the ability to build a nest egg by 72. That's pretty substantial But 62 years of sucky habits are in the way So is he gonna try is he gonna look in the mirror and gone after 62 freaking years? I'm gonna grow up or not and that's not up to you as Ken's point. That's up to him Yeah, yeah, I need to come to Jesus moment. Yeah, he does not you by looking in the mirror and going you're the problem It's not somebody nobody took advantage of him and it's not medical that's not the problem No, none of these excuses are the problem problem is you make a lot of money and you piss it away And it's got to stop and that's that's what it comes down to now You don't want to say that to your dad, but that's what it comes down to That's the math that we've got and fixing the math is easy once the human being starts to get their crap together But the humans are now the humans they're an issue, but the math thing it's pretty easy So what we say it around here all the time personal finances 80% behavior It's 20% head knowledge The problem with my money is the guy in my mirror if I can get him to behave he can be skinny and rich But he likes doughnuts It's a problem and that's an issue. So I mean, but it's a behavior thing. It's not a it's not it's not a lack of knowledge It's not a lack of ability. It's not that makes a hundred grand. It'll do it. The doughnuts are good though day They're really good. Shut up, Ken Xander is the best place to find term life insurance to protect your family visit xander.com for quotes today