Upticks: Bank of Mom and Dad, HELOCs, and When to Delegate Money Management

By Jake Falcon on February 16, 2024

Tune in to this week’s episode of Upticks as Jake and Cory talk about the Chiefs Superbowl win, how the early bird may not get the worm when it comes to filing taxes, and what to do if you are worried about social security.

4.1 million Americans are turning 65 this year, and some parents are shutting down support for their adult children. What is the 4% rule and why do some advisors not believe in it? If you have equity in your home, a HELOC may work for you. Finally, with old age comes the hard decision to delegate your money management to someone else.

Thank you for joining us this week! If you have an article suggestion, please send it to service@falconwealthadvisors.com. Jake and Cory would love to discuss (or debate) articles sent their way.

Read a summary of the conversation below:

1. Chiefs Win the Super Bowl:

Jake and Cory kick off the podcast by celebrating the Kansas City Chiefs’ historic Super Bowl win. The hosts share their excitement over the game, including the thrilling comeback in the second half. The mixed reviews on understanding overtime rules add an interesting twist to the discussion.

2. Baby Moon in Sunny Naples:

Congratulations to Cory on his upcoming baby moon to Naples, Florida! The hosts share their plans for upcoming vacations, highlighting the importance of taking a break and enjoying some relaxation before significant life events.

3. An Early Bird’s Guide to Preparing Tax Returns:

Moving on to financial matters, the hosts provide an early bird’s guide to preparing tax returns. Listeners receive valuable tips on navigating tax season, including checking state deadlines, understanding standard deductions, and exploring federal and state-level approaches.

4. Social Security and Medicare Trouble Ahead? Money Pros Weigh In:

The hosts address concerns about potential funding issues with Social Security and Medicare. Cory assures listeners that most clients are unlikely to be significantly affected, while Jake emphasizes the importance of patience and awaiting potential tweaks in Washington.

5. America Has Never Had So Many 65-Year-Olds. They’re Redefining the Milestone:

Explore the evolving landscape of turning 65 in America. With nearly 20% of Americans aged 65 and older employed and a focus on higher purpose in retirement, this demographic is redefining traditional expectations.

6. These Families Are Shutting Down the Bank of Mom and Dad:

Delve into the changing dynamics of parental financial support for adult children. Jake and Cory discuss the shift in parental attitudes, urging parents to distinguish between love and financial assistance while encouraging self-sufficiency.

7. Does the 4% Withdrawal Rule for Retirees Still Make Sense:

Critique the controversial 4% withdrawal rule for retirees. Cory and Jake express skepticism about its effectiveness as a financial plan, emphasizing the need for a more personalized and nuanced approach to retirement planning.

8. Homeowners Are Sitting on a Ton of Equity. How to Tap It Wisely:

Explore the potential of tapping into home equity wisely. Jake highlights the use of home equity lines of credit for necessary expenses during retirement, offering an alternative to traditional financial instruments.

9. Managing Money in Old Age: When It’s Time to Let Someone Else Do It:

The hosts discuss the challenges and signs indicating it may be time to let someone else manage money in old age. From declining memory to an abnormal fear of investment risk, they provide insights into when individuals may need assistance in navigating their finances.

Thank you for tuning in, we hope you have a great week!