Financial Planning for the Future

AMERICA IS PREPARING FOR A MASSIVE WAVE OF ADULTS NEARING OR ENTERING RETIREMENT DRIVEN BY THE BABY-BOOMER GENERATION. THIS IS LEADING TO A TRILLION DOLLAR SHIFTS TOWARDS THE NEXT GENERATION. WITH FAMILIES BEING ENCOURAGED TO MAKE TRANSITIONAL PLANS WHEN IT COMES TO FINANCES. HOWEVER, IS WGCUS TEDDY BYRNE LEARNED THESE CONVERSATIONS ABOUT MONEY ARE DIFFICULT AND LEAVING SOME GEN XERS AND MILLENNIALS FIGURING OUT THEIR FUTURE ON THEIR OWN. >> SO TO LEARN MORE ABOUT THE IMPORTANCE OF PLANNING AHEAD. I'M JOINED BY JAY JAY PEREZ, SENIOR VICE PRESIDENT OF NATIONWIDE STRATEGIC CUSTOMER SOLUTIONS. THANK YOU SO MUCH FOR TAKING THE TIME TO TALK TO US TODAY. >> YEAH, THANK YOU FOR HAVING ME. PLEASURE TO BE HERE. >> SO THEY SHUN RYAN RELEASED A NEW SURVEY THAT SHOWS 47% OF INVESTORS DO NOT DISCUSS FINANCIAL PLANNING WITH THEIR FAMILIES. NOW, THIS COULD PUT THEIR FISCAL SECURITY AT RISK AT ANY AGE. SO WHY IS IT IMPORTANT TO COMMUNICATE YOUR PLANS AS YOUR SAVINGS BEFORE YOU REACH RETIREMENT? >> GREAT QUESTION. REALLY? MANY REASONS. SO ONE, WE KNOW THAT AS BABY BOOMERS RETIRE THE CURRENT STATUS OVER 100 TRILLION AND ASSETS ARE GOING TO BE MOVED FROM ONE GENERATION TO ANOTHER OVER THE NEXT 2025 YEARS. BUT TO ME, THE ASSETS ARE ARE ONE ELEMENT OF IT. AND THAT'S IMPORTANT. I MEAN, I THINK IT'S CRITICALLY IMPORTANT THAT YOU'RE HAVING CONVERSATIONS WITH YOUR FAMILY MEMBERS. AND WITH THAT SAID, PFIZER, THAT KNOWS WHAT THEY'RE TALKING ABOUT. PART OF THIS THAT WE DON'T ALWAYS THINK ABOUT THIS JUST AS IMPORTANT IF NOT MORE IMPORTANT IS, YOU KNOW, HOW ARE YOU THINKING ABOUT WHAT YOU WANT AT THE END OF YOUR LIFE? YOU KNOW, AT SOME POINT I WON'T BE ABLE TO TAKE CARE OF MYSELF AND I WILL NEED PROBABLY MY KIDS ARE OTHERS TO HELP ME I DON'T KNOW WHEN THAT WOULD BE LIKE, I WOULD HOPE THAT THAT'S NOT FOR ANOTHER 50 YEARS. BUT YOU KNOW, THERE COULD BE A CAR ACCIDENT OR SOMETHING THAT HAPPENS THAT LEAVE THEM UNABLE TO COMMUNICATE. AND SO HOW AM I TELLING THEM HOW I WOULD LIKE THINGS TO BE AND ALL I WOULD LIKE THINGS TO BE PLANNED FROM A LONG-TERM CARE PERSPECTIVE FROM A FAMILY PLANNING PERSPECTIVE. AND SO I DEFINITELY THINK THE ASSETS ARE THE GREAT CONDUIT. YOU KNOW, FROM A WEALTH PERSPECTIVE, THERE ARE DIFFERENT WAYS TO HANDLE THE TRANSFER. BUT HOW ARE WE THINKING ABOUT ALL THE PLANNING THAT NEEDS TO HAPPEN? SO ITS INTERESTING THAT NOT ONLY NOT ONLY TO 47% OF FAMILIES NOT HAVE THOSE CONVERSATIONS. AND I WOULD SAY I PROBABLY INCLUDED IN THAT AS WELL. WE HAVEN'T HAD REALLY GOOD CONVERSATION AROUND IT. BUT ALMOST A 3RD OF BABY BOOMERS WERE SAYING IT. THEY DON'T NEED THAT. THE CONVERSATION. VERSUS YOU REALLY SEE A DIFFERENCE IN GENERATIONS WHERE YOU CONTRAST THAT THE GENERATION Z AND ONLY 8% ARE SAYING THEY DON'T NEED TO THE CONVERSATION. AND MANY MORE ARE SAYING, YES, WE WOULD LIKE TO HAVE THESE CONVERSATIONS. WE THINK THIS IS IMPORTANT. 60% OF MILLENNIALS ARE SAYING I NEED TO HAVE THIS CONVERSATION WITH MY PARENTS AND I WOULD LOVE TO HAVE MY FINANCIAL ADVISER HELP FACILITATE THAT CONVERSATION. >> AND THEN SO WHEN DEALING WITH THOSE TRADITIONS OF HOW PEOPLE TYPICALLY WOULD HANDLE WITH MONEY, A LOT OF, YOU KNOW, OLDER GENERATIONS WOULD SEE WHEN DISCUSSING FINANCES CAN BE VIEWED AS TABOO. SO FOR ANYONE THAT IS LOOKING TO BEGIN THIS TYPE OF CONVERSATION, ESPECIALLY WITH THE SENIOR MEMBERS OF THEIR FAMILY, YOU HAVE ANY TIPS ABOUT HOW THEY CAN BEGIN THE CONVERSATION ABOUT FINANCIAL PLANNING. >> YEAH, GREAT QUESTION. GREAT QUESTION. THAT'S WHERE I THINK FOR US FINANCIAL ADVISOR CAN BE REALLY HELPFUL. NOW, HAVING SAID THAT, LIKE YOU STILL NEED THAT, THE TEA, THE CONVERSATION UP WITH THEM. SO, FOR EXAMPLE, MY OWN EXPERIENCE, MY FATHER INTRODUCED ME AS FINANCIAL ADVISOR YEARS BACK. AND SO MY WIFE AND I USE THE SAME FINANCIAL ADVISER. WE REALLY HADN'T HAD THIS CONVERSATION. AND SO AS PART OF IT, RE OUT ON THE RESEARCH THAT WE'VE DONE, YOU KNOW, 3 WEEKS AGO, I SET DOWN MY THAT WE'RE HAVING BREAKFAST. I SAID, HEY, IT OCCURRED TO ME THAT WE'VE NOT TALKED ABOUT THESE THINGS LIKE I KNOW YOUR FINANCIAL PLAN FROM THE PERSPECTIVE OF PERCENTAGES THAT GO TO DIFFERENT PEOPLE IN THAT ARE GOING TO CHARITY. THAT'S PROBABLY THE EASIEST PART. IT'S THE DETAILS THAT WE SHOULD TALK ABOUT. SO I THINK THE THE FIRST PLACE I WOULD START IS, YOU KNOW, IF THINK ABOUT IT FROM THE CONCEPT THAT IF I EVER NEED HELP, HERE'S WHAT YOU NEED TO KNOW. HERE'S THE BANK ACCOUNTS ARE THE INSURANCE POLICIES, THE PASSWORDS, THE CODE TO THE SAFE EMERGENCY CONTACTS, THOSE TYPES OF THINGS THAT THAT IT'S HARD FOR ME BECAUSE I WALK AROUND KNOWING THE SAYING MY KIDS HAVE NO IDEA. MY WIFE, YOU KNOW, SHE KNOWS MOST OF IT, BUT MAKING SURE THAT YOU'RE STARTING THERE AND THEN GETTING INTO THINGS LIKE THE WISHES THEY HAVE. YOU KNOW, LATER ON IN LIFE, WHAT KIND OF SET UP WOULD YOU LIKE? HOW LONG YOU WANT TO STAY ALL? HOW DO YOU FEEL ABOUT ASSISTED LIVING IN THOSE TYPES OF THINGS? AND REALLY ALL OF THIS LEADS INTO. BECAUSE THERE ARE THINGS OUT THERE THAT WILL HELP YOU FROM A LONG-TERM CARE PERSPECTIVE IS YOU'RE ULTIMATELY THINKING ABOUT MOVING INTO A FACILITY LATER IN LIFE, WHICH WOULD YOU KNOW, THAT WOULD PROBABLY MY PLAN AS WELL. THERE ARE THINGS THAT CAN BE STRUCTURED THROUGHOUT THE FINANCIAL PLANNING CONVERSATION THAT CAN HELP FROM A TAX PERSPECTIVE TO LIGHT A SAFE FOR THOSE TYPES OF THINGS. THE LAST THING ON SAYS THIS ISN'T A ONCE AND DONE SO REALLY MAKING AN ONGOING CONVERSATION. DOESN'T THAT'S NOT SOMETHING EVERY TIME YOU TALK. YOU HAVE TO TALK ABOUT. BUT, YOU KNOW, ONCE A YEAR SAYING HAS ANYTHING CHANGED FROM A FINANCIAL PLANNING PERSPECTIVE? YOU KNOW, I'VE HAD EXPERIENCES THAT WOULD CHANGE. I THINK ABOUT END OF LIFE AND THE THINGS YOU WANT TO WANT TO YOU HOW YOU WANT US TO TAKE CARE OF YOU WHEN THAT TIME COMES. AND IT REALLY IS SOMETHING THAT YOU KNOW FOR ME, I THINK IT BE A PRIVILEGE TO BE ABLE TO TAKE CARE OF MY PARENTS. THEY DID GREAT JOB RAISING TO TAKE CARE OF ME AND ALREADY JOKE WITH MY KIDS SOMEDAY YOU'RE GOING TO TAKE CARE OF THESE ON FINDING THE BEST I CAN WITH YOU RIGHT NOW. SO THAT YOU PAY BACK LATER ON THE FUTURE. >> AND THEN IF OLDER INVESTORS DON'T SHARE THEIR WISHES FOR FINANCIAL ACCOUNTS AND ASSETS BEFORE PASSING IT, WHAT OPTIONS DOES THAT LEAVE? THEN THEIR CHILDREN AND HEIRS IN THE EVENT THAT THEY STILL NEED THESE KIND OF ASSETS? CAN THEY STILL WORK WITH THE PARENTS? ORIGINAL FINANCIAL ADVISER, OR IS THIS A DIFFERENT PROCESS THAT THEY WOULD NOW HAVE TO LOOK INTO? >> YEAH, I THINK THERE ARE OPPORTUNITIES TO WORK WITH THE FINANCIAL ADVISOR. THINK THAT'S WHERE, YOU KNOW, JUST ANOTHER BENEFIT THAT THEY CAN BE A CONDUIT TO THAT. I'VE ALSO HAD SITUATIONS WHERE I'VE SEEN THAT THAT. THE KIDS AFTER THE PARENT HAS PUT A SITUATION WHERE THEY CAN'T COMMUNICATE THEIR NEEDS ANY. I'VE HAD A REALLY DIFFICULT TIME GETTING ACCESS TO MAKE ACCOUNTS, GETTING ACCESS TO DIFFERENT TYPES OF FINANCIAL SERVICES ACCOUNTS BECAUSE THOSE THING THOSE ARE VERY HIGHLY PROTECTED, RIGHT? THERE WERE ALWAYS IN THE FINANCIAL SERVICES INDUSTRY PROTECTING AGAINST FRAUD. AND SO. HAVING THOSE CONVERSATION BEFORE HAND, A BIG HELP. THERE ARE TYPICALLY WAYS TO GET THROUGH THAT AFTER THE FACT. BUT IT COULD TAKE A GREAT DEAL OF TIME. AND IT'S IT'S NOT SOMETHING THAT YOU REALLY WANT YOUR LOVED ONE TO HAVE TO GO THROUGH. AND REALLY, AGAIN, THEY DID THAT JUST TRYING TO TAKE THE BEST CARE OF YOU. >> I THINK THIS IS A LOT OF GREAT INFORMATION TO HELP PEOPLE CONTINUE THEIR PLANS FOR THE FUTURE. SO MISTER PEREZ, THANK YOU FOR TAKING THE TIME TO TALK TO US TODAY. YEAH, THANKS FOR HAVING ME ON. APPRECIATE IT.