Retirement Planning: Social Security, Medicare, IRA/401k, Long Term Care, Income, Estate Plan, Tax - YouTube

Channel: Cardinal Advisors

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Today's Cardinal Lesson is going to talk  about, whether you want to call them the:  
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Seven Things or the Seven Worries in  retirement, the Seven Subjects: Medicare,  
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Long-Term Care, IRAs, Retirement Income, Estate  Planning, Income Tax, and Social Security.  
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And I had- it's kind of funny- on my YouTube  channel, I had a lady address me as: ‘Mr. Cardinal  
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Advisor.” And I thought, well maybe that'll be  my new name. So these are the Seven Subjects or  
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the Seven Worries or the Seven Things that Mr.  Cardinal Advisor thinks you need to be concerned  
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about if you're in your 50s, 60s, 70s, and beyond  and planning out your retirement. Or another  
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way to put it is I've divided all the areas of  Retirement Planning up into these seven subjects  
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and today's video, what we're really talking about  is: What We Are, What We Do, and What We're Not.  
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And many people, when I they find out  and they meet me socially, and they  
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you know I'm a Certified Financial Planner CFP,  and they're thinking, ‘Okay so what this guy does,  
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is he takes your money under management.’  -I'll take your money- ‘and then he looks at it  
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and then he decides I'm going to buy this  stock, and that stock, and these bonds, and  
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kind of mix it all around.’ And then I'm going  to get the said return. I'm going to make,  
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make them some money and then that money that I  make, you, or that you earn with my management,  
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or your return that's that and your Social  Security are what they're going to live off of.  
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And there's a lot of people that just simplify,  they if you really sat them down, and said ‘What  
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does that guy do? Or what's he going to do  for you?’ That's what they're going to say and  
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what, what I have to say to that, is that is a  small part of what we do. Okay, and we certainly,  
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we feel like we're good at it. I don't think that  I'm especially that much better at it than a whole  
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bunch of other people that do, that I mean you  can only be so good at picking stocks, and mutual  
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funds, and ETFs, and doing all that and earning  a return is you can only be as good as you can  
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predict the market. And I just, I think you  know the safety, a lot of things come into play.  
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What we really do is we put together a Retirement  Plan for clients, and what we do is we go around  
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and we address all Seven of these topics.  And if you'll notice my YouTube channel  
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is broken down into those Seven subjects, and  then it has several videos under each topic  
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that go over what you need to learn about  that particular topic. Like under Medicare,  
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I mean you're going to have stuff on should  you buy an Advantage Plan or do a Supplement.  
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Or you know, how does IRMAA work? You know an  IRMAA is: Income Related Monthly Adjustment  
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Amount. It's a Medicare Surtax on wealthy  people, and how does that work? How do the  
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penalties work? I mean we could go on and on- we  have different videos on each of these subjects.  
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You can watch them, you could sit down with me,  and I can bring you up to snuff about Medicare.  
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Same thing with Long-Term Care. I mean we have  some of the issues, I mean the biggest thing  
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with Long-Term Care that comes into my world- is  if this happens to you- if you need somebody to  
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care for you. You need care or you need it at  home, or you need to go to an assisted living;  
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Where's the money going to come from? Or is this  thing going to disrupt your whole Retirement Plan?  
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What's Custodial Care, are you going to get this  at home? What's Assisted Living? Then, we get  
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down to where most Middle Class, Upper- Middle  Class, however you want to do it, mass affluent  
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people, where they have most of their money is  already inside what's called a Qualified Plan,  
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in an IRA, or it's still in the 401k. And  usually this is what they're talking about  
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when they're thinking I'm going to invest  that for them, and I could certainly do that.  
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Point of this video, there's a whole lot more to  it than that. I mean we go and we look at IRAs  
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and 401ks- I'm a big disciple of Ed Slot and the  IRAhelp.com. And I have him, or I go and attend  
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his stuff to really learn so I can be an expert  on all of these subjects related to IRAs. Now  
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we know when we have an IRA and you have a lump  of money, and most of your assets are there when  
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you get retired, and we're putting together the  Retirement Plan, we have to create an Income. And  
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then what really becomes important is it's easy  to create an Income. I mean you, what do you, you  
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know you got $500,000. You know if we want to take  out $50,000 a year, it's going to last 10 years-  
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maybe into the 11th, 12th, and 13th  years depending upon how much we earn  
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on the remaining balance. Or less than 10  years if we help you lose some money, but  
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lifetime incomes under IRAs and under the  retirement are all about the 80s and 90s. So  
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when we set up a Retirement Plan, we've got to  set things up where you're making withdrawals  
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in such a way that you're not going to run out  of money when you're 84. Or your spouse isn't  
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after you pass away, and he or she lives up into  their 90s, we've got to do all this in such a way  
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that they're not broke when they're old. You know  Retirement Income, which is related to these two,  
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talking about the 90s and beyond- we got to really  look at market losses, what's the potential? A lot  
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of retirees in today's day, environment, they're  just very worried and they're worried about the  
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fact that of watching their Balances being washed  away in a week or two, or a matter of days.  
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If there was some kind of event like happened  March a year and a half ago, when it started,  
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people are worried about that, or something more  catastrophic than that. How do you predict that?  
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But when we're looking at all your stuff and we've  got a big pot of money, or a medium-sized pot of  
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money, that we're going to create an Income  for you we have to look at that because if  
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that all of a sudden happens in your third year of  retirement it's going to blow our plan sideways.  
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Now you know we sit down with people and we talk  to them about Estate Planning and some people,  
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clients, that's the most important thing in  the world. That's the first thing they talk  
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to us about is, you know, they're concerned and  they're very desiring to leave a sum of money  
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or a substantial sum to their children and  their grandchildren. Other people we talk to  
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they're a little more moderate, they're saying  hey they get what's left. This savings and this  
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whole plan is for me, don't spend a lot of time  on this,because whatever's left the kids can  
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divide it up. And then we have other people that  they don't want to leave anything to their kids,  
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I mean they just there's nothing, maybe they've  had trouble with that you know, I mean it's not my  
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business to start telling people how to think or  how to be but... So, so with all of these subjects  
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we, we need to sit with clients and we need to  find out how important they are or where they fit  
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on the level of importance. Many times with this  Estate Planning issue we find husbands and wives  
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in different places, so we're going to interview  them and you know we might find one spouse wants  
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to leave a certain thing or certain amounts to  the children and grandchildren. The other spouse  
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maybe doesn't. They're not in a position  of not wanting to give them something,  
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but they're just saying, ‘Hey that's for us- not  a priority now.’ Income Taxes, I find it kind  
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of funny, is because my assistant I don't know  if this happened by chance, is she did all the  
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all the workings here in brown. You know which  is kind of like the least desirable color and you  
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know I'm just looking at that and I just think,  but a lot of people they just hate paying Income  
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Taxes, or that it's certainly not one of their  favorite subjects. And you know, I got thinking  
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about that, Income Taxes become my favorite  subject when I can reduce them for my clients.  
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They're even better for me when I can eliminate  Taxes. Okay, and I'm certainly not promising that  
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to everybody because there's the word legal in  there is that we've got to work within the tax  
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code to make sure that everything that we suggest  and we do is all proper, but Income Taxes, I'm  
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kind of talking about them at the end, because I  don't like to talk about them. First, people that  
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put Taxes up at the, or reducing Taxes at their  highest priority a lot of times coming into me,  
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I don't necessarily want to take them in  as clients because they're going to end up  
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making bad investment decisions, because if all  they're looking at is the Tax benefits many times  
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Tax benefits camouflage a poor investment behind  that. And then what was really first up here in  
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the corner, that I'm getting to last, is Social  Security. You know, and with Social Security,  
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if you've already filed for it, well then the  only thing we're really going to talk about it is  
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how you can pay less taxes on your Social  Security check. But for many people coming  
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in and doing Retirement Planning, either they or  their spouse or both of them haven't filed yet.  
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So they have that decision, and there are  96 different dates between ages 62 and 70  
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for you that you can choose for Social Security.  Now we're not going to sit down and evaluate every  
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one of them, but I just wanted to make the point  if you haven't filed for Social Security yet,  
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that Social Security check is going to be  at the cornerstone of this Retirement Plan.  
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It's going to be the first money that shows up  in the bank every month,and it also is going to  
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be coming in when you're in your 90s. And it's  going to have inflation on it so it's real. You  
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know if it's not important to you it's important  to me, and when I'm doing this Estate Planning  
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I've got to really take these decisions and make  them important to you. Now if you started early  
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you're going to diminish your Social Security  check for the rest of your retirement, but there  
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are reasons to start it early so I'm not trying  to give blanket advice here. If you delay it  
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and you wait till 70 to take it, you're going  to get a much bigger check, but you're going to  
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have missed out on all those checks if you would  have taken it at 66. So you know there's pluses  
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and minuses to everything here. Taking it at 70,  which is what I plan to do, and the reason I'm  
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going to do that is I think my wife is going to  live to be a hundred. We're going to her Aunt's,  
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uh, 100th birthday party this month and it's  her Mother's Sister, and I think there's a good  
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possibility of that, and if I wait till 70 and  then I die somewhere after that she is going to  
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get my check, my inflated check for the rest  of her life. So I'm really setting her up to  
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have a really good Social Security check after I'm  gone. We also have such a thing as Life Insurance  
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to take care of widows and widowers  added to the Social Security check. So  
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the point I wanted to make, and all this stuff  I've just been spitting out a lot of facts  
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at you, is any one of these subjects you  can get yourself boned up pretty quick.  
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You call me up, you hire me to do some Estate  Planning or Retirement Planning, and you know,  
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or maybe you're just interested in Medicare and  we sit down and one of my associates just goes  
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over Medicare. We can bring you up to snuff in an  hour or two where you can really consider yourself  
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an educated person about the subject of Medicare.  We can do the same thing with Social Security. I  
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just started down that road with a little bit of  reading on your part and some tutelage from us,  
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you can, you could sit down and say I now feel  educated enough to make decisions about Social  
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Security. You start going around the wheel on any  one subject, not that hard to do, but that's not  
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really what we get paid to do. I mean that's part  of it what happens, is life happens to all this  
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stuff, is is that people who come to us. All this  stuff starts working together, like for instance  
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we we put together this Retirement Income plan.  All the money's in an IRA, we decide to take out  
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$5,000 a month out of the IRA and start  sending that to you. that's $60,000 a year.  
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Well we gotta then look at how much Income  Tax we're going to pay on that $60,000 a year,  
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because you're not going to get that- they're  going to send that straight to the government.  
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Then what does a $60,000 income- besides Social  Security, is that going to cause you to pay tax  
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on your Social Security and how much tax?  I mean I could just go on and on when you  
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mess with one subject it starts kicking in other  subjects and then you get into the other subject  
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you start making decisions there. It's all like  a big pot of soup where you've just thrown in  
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all these different ingredients, turned on the  fire and you start cooking. It's going to have  
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a certain taste to it. What, what we do is, we put  together a Retirement Plan that's unique to you.  
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People have different assets, different incomes,  different Social Security records, different  
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preferences, and how they get their health care,  different wishes for their Estate Planning,  
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they're in all different places and  then you get the individual people.  
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Different things happen to them at  different points in their life, so  
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this all needs to be done very specific to  you. But it's not an exact science either,  
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it's bouncing things against each other and  we don't have the luxury of just finishing.  
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‘Oh it's a big pot of soup,’ and you know  the best you can do. We really have to  
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get all Seven of these Areas, make some  recommendations, and then project to you  
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how we think it's going to work out in  all of these areas. So I'm Hans Scheil,  
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and you know we have all these topics on this  YouTube channel. We have all these videos,  
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I, I give them away to people. There's there's no  cost for it. We're a small, family-owned insurance  
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agency. My brother works in here, my sister-in-law  works in here, my son used to work in here.  
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A number of the people that are with me  have been here, well more than five, six,  
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seven years. I have a lot of young people that  work in here. We're in all 50 States, in DC,  
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so we can serve people anywhere in the United  States. These modern technologies like Zoom, that  
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kind of thing, have made it very easy for us here  in Durham, North Carolina to sit with somebody in  
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California and plan out all this stuff. So we can  do that. Many of you are reluctant to reach out  
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to somebody because there's a lot of vultures out  there, you turn your phone number into something,  
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and you know it's all chaos. If you want to reach  out to us, if you want to go to our website:  
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www.cardinalguide.com and just ask us a few  questions. You don't have to tell us who you are,  
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just, I guess you're going to have to  give us your email address to answer them.  
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But, um you know we we respect your privacy. I'm  very passionate about this and really want to  
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teach people, and I'd like for all the people  watching to make good decisions. Whether you do  
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that stuff with me or not. I'm Hans Scheil  and I thank you very much for watching.