How to Start Your Own Personal Pension

6.14.24: Audio automatically transcribed by Sonix

6.14.24: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
Welcome to Nationwide's Peak ten fixed indexed annuity, designed to help provide guaranteed income for life. Peak ten offers protection against market losses, plus protection for a spouse through a joint option and an immediate 10% penalty free withdrawal. Call us now at (704) 560-1573. That's (700) 456-0157 three. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio.

Speaker2:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker1:
Welcome to Money Matters with Mike, with your host, Mike Zeno. Get set for a full hour of financial information and economic news affecting your bottom line. Mike works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for, and he can help you too. So now let's start the show. Here's Mike Zeno.

Speaker3:
What's up, what's up, what's up? It's Mike Zeno coming to you from Fort Mill, South Carolina. Happy Saturday people. What a great time to be alive in these United States of America. Money matters with Mike is a show designed to arm you with information and give you plenty of meat on the bone to chew on each and every week. And today we are absolutely bringing the heat again. On today's show, we're going to show you how to start your own personal pension and receive income for life. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matthew, how are you today, sir?

Speaker2:
I am, I'm hot. Mike I'm telling you, it is. It is getting hot out there.

Speaker3:
It is definitely getting hot out here and hot in here. It is. Uh, yeah, it's a Nelly reference right there from some of you that may, uh, recognize that song, but yeah, there's definitely been a heat wave sweeping, uh, the United States of America, especially through the southeast, for sure. Yeah.

Speaker2:
You couple that with the humidity that we're used to down here, and that's just, uh, you know, it's not a not a combination for a pleasurable time in the out of doors, but no, it's it's good. Otherwise, I hope you've had a, a great week. I know you've got some some travel coming up, some speaking engagements. So that's, uh, going to be great. I know, uh, for you.

Speaker3:
Yeah. In fact, uh, I get to speak to the Department of the Army at Fort Moore, which is formerly Fort Benning, which is where I went to jump school way back in another lifetime, when I used to like to jump out of perfectly good airplane. So all our veterans out there, I salute each and every single one of you, all of our Gold Star families as well. So, um, yeah, I'm looking forward to that, uh, speaking engagement.

Speaker2:
Absolutely. Great. Uh, thank you for your service. Always as well. And thank everybody. If you're a veteran listening, thank you for your service. Also, um, we don't quite say that often enough. At least I don't. So thank you, thank you, thank you for all that you have done for all of us. And thank you to everybody who is listening to the show, no matter where you are, if you're listening on the radio in the Charlotte metro area, or if you are joining us on the podcast, and if you didn't even know we had a podcast, if you are listening on the radio, uh, just go to the website Money Matters with mike.com. You can see the link there to all the different podcast platforms where the show is available. That's Money Matters with Mike dot com. That's also the place to go. If you would like to schedule a free, no obligation consultation with one Mr. Mike Zeno, you can also call him 704 5601573. That's another good thing for you to do there. All right. So also oh, I wanted to mention too, uh, the YouTube channel, uh, we got more and more content up there each and every week. So, uh, feel free to check that out. Just search Money Matters with Mike on YouTube and then of course on the Facebook. Uh, Mike very active there as well and always interacting with our listeners. And I know that's something that you really appreciate kind of getting that, that interaction. Uh, on the, on the socials. Yeah.

Speaker3:
I mean, whether it's Facebook, whether I think we're soon to launch an Instagram page as well, um, if it's on YouTube, wherever our clients like to get in contact with me, I like to respond. So, um, Facebook obviously is probably the most prevalent. It's the longest standing. And so therefore the most popular. But no matter what your questions are, if you have questions, hopefully I've got answers. And if I don't, I can find them out for you. But, uh, you know, you may be thinking of something that a lot of other people are thinking of too. So don't be shy. Just go ahead and throw it out there and we'll get an answer for you on the show.

Speaker2:
Yeah. Chances are, you know, if you have that question, somebody else has got that same question or something very similar to it, so don't hesitate to reach out once again. You can also schedule a free consultation by going to Money Matters with Mike comm or giving him a call (704) 560-1573. So Mike Zeno can help you reach your financial goals and build a solid financial plan. Um, a lot to get to here on today's show. Mike, we've got June is annuity awareness month. Um, that is a great time to highlight some of the things that we, we talk about on occasion here on the show, but we're going to really focus in on them today because of Annuity Awareness Month being this very month. And we'll detail how you, each and every one of you listening can start a personal pension for. For yourself. Three stats that concern financial professionals today, and how you can use that information to actually motivate you and help you build a better retirement plan for yourself. It. Do you have a Social Security strategy? Big question that we're going to dive into today. And if you do have one, what is it? Well, hopefully potentially make you make some or help you make rather some better financial decisions. We've got an inflation demonstration. And Mike, have you heard of someone known as the Iron Nun?

Speaker3:
You know, I have heard of the Iron Nun. I know that she did something that was just absolutely extraordinary, but I can't remember exactly what it was. So I think that, uh, we'll be we'll be highlighting her later on in the show.

Speaker2:
That's right. That's what we call a tease in the business. Uh, we're going to talk all about the Iron Nun, uh, as you get to know her as our retiree of the week here on the show. Coming up in just a little bit. First, though, let's get some inspiration for our conversations, shall we? It's our quote of the week.

Speaker4:
And now wholesome financial wisdom. It's time for the quote of the week.

Speaker2:
And this week, our quote comes from Steven Levitt, a renowned American economist known for co-authoring the international best seller Freakonomics. He also got degrees from Harvard and MIT. He became a professor of economics at the University of Chicago as well. Got a bunch of awards. So this is a guy to listen to when it comes to quotes about money, and specifically this one, a quote about annuities during this Annuity Awareness month, he said this people who buy annuities, it turns out, live longer than people who don't. And not because the people who buy annuities are healthier. To start with, the evidence suggests that an annuities steady payout provides a little extra incentive to keep chugging along. What do you think about Steven Levitt's quote there, Mike?

Speaker3:
You know, I think his, uh, his quote makes sense. I had forgotten his name. I did not forget his book. Okay. Freakonomics is a, uh, is a is an amazing, amazing read for those of you who like to read that kind of stuff and written by, I mean the guy is a genius, right? Harvard, MIT, um, professor of economics at the University of Chicago. You know, there's this thing called, uh, a selection effect. And, you know, being risk averse, being, uh, trying to live a somewhat healthier lifestyle, uh, being somewhat financially savvy, all of those self-selection mechanisms, um, a group of annuity buyers is not just a random sample of the general population. It instead, it consists of of people who, uh, on average, have characteristics that are associated with longer life expectancy and that creates that selection bias.

Speaker1:
Hungry for something to chew on. Here's some meat on the bone.

Speaker3:
Things like financial security. Um, the the the fact that annuities provide a steady income stream, which can lead to less financial stress and a higher quality of life in retirement, just having that financial security can contribute to better health outcomes, right? Because they're not literally pulling their hair out, worried about money. And it allows folks to, uh, afford health care, afford more nutritious food and other necessities. And then people who buy annuities usually engage in much more thorough financial and retirement planning. And that planning often correlates with a greater overall awareness of longevity and health, which leads to proactive health management and preventative care. And then there may be an inherent difference in lifestyle and health behaviors of those. Although his quote says, you know, not necessarily. But, you know, when we look at the correlation, those individuals might prioritize, uh, living longer and getting regular medical checkups as a result, which is obviously going to contribute to their longer life, uh, span. And then, of course, knowing that you have guaranteed income, a paycheck that comes in every single month, like clockwork that you can count on, that is going to reduce stress for the annuitants who own those annuities. And then obviously, the lower stress levels are going to be associated with much better health outcomes, including, uh, reduced risk of chronic conditions like heart disease. Okay, I didn't even know that until I was preparing for the show. But, you know, overall, the combination of all of those things contributes to the observed phenomenon that annuity purchasers actually do tend to live longer than those who don't purchase annuities. So folks, if you expect and want to live long and prosper, uh, yeah. Annuity just might be for you.

Speaker2:
There you go. I love the, uh, like a little Star Trek reference there, wasn't it? But yeah. No, that's, um. Absolutely right. Because, you know, I mean, the data really does back up the fact that, you know, people who do have annuities tend to live longer, healthier lives than those who don't. And for all of those reasons that you just mentioned, and of course, with June being Annuity Awareness Month, it's a great time to highlight that and also highlight a lot of the different features of annuities, because, you know, people who are listening might say, you know, if you've just happened to tune in, you might say, okay, I think I, you know, I've heard of annuities. I'm not really quite sure what they are. I've heard, you know, maybe people badmouthing annuities, uh, putting them under one kind of umbrella as, uh, a bad thing and to stay away from them. And then I've heard other people say that they're great and they're the best thing since sliced bread. So what we want to do is, uh, break that all down. Clear away the cobwebs, clear away any confusion, and give you the the truth about annuities here, Mike. Um, let's start with the fact that, you know, most retirees and pre-retirees today don't have a pension, but they can create a lifetime income stream for themselves, a personal pension, and more and more people are actually doing that, creating that long term income for themselves during retirement.

Speaker3:
Right? So, I mean, I think it's just real important for folks, first and foremost, to understand the, the basics of what an annuity is. Right. So an annuity is a contract with an insurance company. Um, it creates guaranteed income, uh, for the owner. And it lasts often. You can, you know, you can do it for a period of time. Uh, or you can do it for the entirety of your life. And then whenever you pass away, that money goes to your named beneficiaries. And there are a few types of annuities just to kind of be aware of. And those include fixed annuities, indexed annuities, variable annuities. Right. Those are the three kind of categories that we have. And each one offers different levels of risk as well as expected returns. So I think the first thing that a pre-retiree somebody who's preparing for retirement or somebody who's just entered into retirement needs to do is if they haven't already done it, is identify their retirement income needs. And and by that I mean consider how much money, how much income that you're going to need in retirement to cover all of your expenses, whether those are bills as well as, you know, your your desires and wants and travel and dining out and entertainment and stuff like that. Evaluate your current savings, uh, evaluate your expected Social Security benefits and any other income sources, because we can design the annuity to help you fill those gaps in your retirement income plan. And the good thing is, is that if you've got a nice chunk of change that you've amassed over the entirety of your career, we can use some or all, depending on your individual situation. We may not use, uh, need to use it all in order to fill that gap. So that is huge. But it is absolutely imperative that you do choose the right type of annuity for your situation.

Speaker2:
Yeah, 100%. And let's go through kind of those, uh, three main types of annuities that we want to cover today. First let's start with the fixed indexed annuity. Mike.

Speaker3:
This this one actually happens to be my favorite. Um, it's the one that I write, uh, 90% of the time. I have my family members in this. A fixed indexed annuity offers a guaranteed payout, which acts as a safe option for those who do need very stable and predictable income over the entirety of their life. And so the returns that you get on your money are based on an underlying stock market index, but you get the protection of not actually having your money participate in the index. So when the market goes up, you'll make money. But when the market goes down, you just flatline and zero becomes your hero because had you been in the market, you would have been losing. But because of the underlying, uh, protected downside, these are great options for those investors who are seeking growth but with less risk and a guaranteed lifetime payout.

Speaker2:
Yeah. And those are, of course, um, great options that we mentioned quite a bit, uh, here as part of the show as well. Now, also something that we mentioned, but not quite as often is, is called a mega, a multi year guaranteed annuity.

Speaker3:
Yeah. And these are probably my my second favorite ones especially in the with the the heightened interest rate climate a multi year guaranteed annuity provides you with a guaranteed rate of return for a set number of years on the principal amount that you use to purchase that annuity. And so, you know, if you have midterm money, money that you, you know, you don't need in your operating account, like in, in your checking account to pay bills with, but maybe this is five year money, then a mega may be perfect for you because of the shorter time horizon than a fixed indexed annuity has, which is typically a ten year or longer. We set those up for the rest of your life, so you can think of a mega as a very strong alternative to a bank CD, because with a bank CD, you have to leave it in there the entire time. Otherwise you're penalized where with a mega you have some flexibility and some liquidity options, and often much stronger than CD type returns and guarantees.

Speaker2:
Yeah, we often think of those as, you know, something that you can use to beat the bank CDs. Those are that's a segment we've done on the show before actually beating the bank CDs, taking a look at the interest rates that migas are currently earning versus bank CDs. And, you know, even with the higher interest rate environment these days, the bank CDs, just just generally speaking, do not keep up with most of the migas that are out there. So definitely a good alternative for our listeners there, Mike. And now let's talk about variable annuities. This is probably the one that people if they if they've heard people on the on the radio or wherever TV something. Badmouthing annuities. This is probably the type that they've been talking about really. But they'll just use the umbrella term annuities. But they're really talking about variable annuities specifically.

Speaker3:
Yeah. You know, variable annuities have their place. I think they have their place for much, much younger investors who, you know, have time to ride out market, uh, swings and downturns. But, you know, pre-retirees and retirees especially, you know, we've kind of rebranded them instead of variable annuities. They are variable annuities because while they allow investments in various funds, um, and, and they are suitable for those willing to take higher risks for those potentially higher returns, we do not recommend this type of annuities in most cases, especially in the pre-retiree and retiree beyond segment, because, I mean, bottom line is you just don't have the time to recoup what you have lost. So if you have an annuity and you look at it and you see the word variable on it, then we should definitely have a chat because I can rescue you from that and put you in something that's guaranteed to never lose a penny due to market volatility after all. I mean, do we have anything crazy going on in the world right now? How much of that do you have control over? Right. None of it. It doesn't matter if it happens locally, regionally, nationally or internationally, but how much of that can affect the bottom dollar of your portfolio? All of it. So this is where we just exercise prudence and caution. If you have a variable annuity, let's get you rescued from it.

Speaker2:
Yeah, absolutely. And uh, to to call Mike Zeno to your rescue. Go to Money Matters with Mike comm. It's like a it's like the bat signal. You know, you're just you're putting it up in the sky. You're saying, Mike, come save me. Money matters with Mike comm or 704 560 1573.

Speaker3:
You know, it's funny because I was a lifeguard for four years, so, you know, this is this. I'm saving people, uh, saving people's financial future and financial life as as well as their actual life in a lot of cases here.

Speaker2:
I love, love that. Definitely. So once again, folks, that number, uh, for lifeguard Mike 704 5601573. Um, another thing to do, Mike, if you are considering, you know, adding an annuity to your, uh, retirement plan, your retirement portfolio is to check the insurers, check the ratings, check the history of the particular insurer that you are considering, you know, uh, having a relationship with.

Speaker3:
Yeah. And I think this is really, really important. Um, you know, you want to opt for those companies that have very high ratings from different ratings agencies, whether it's Am Best or Standard and Poor's or Moody's or Fitch. You know, those are the ratings agencies that they're able to give you a really strong indication on the company's financial stability as well as reliability. And then you need to consider companies that have a long history in the business. They didn't just pop up a few years ago. Right. Because that shows that they have experience and that shows that they have resilience. Managing through the highs and the lows, through the calm seas and the choppy waters. You never judge a captain in calm seas. Right. And so, you know, I think it's important to highlight that we only represent companies that are multi-billion dollar, highly rated companies that have been doing this since before our listeners were even in diapers.

Speaker2:
Yeah. That's right. And, you know, a lot of them have been around since, uh, before any of us listening were born and sometimes before our parents were, you know, that, that kind of thing. They've been around a long, long time. Uh, and that is very, very important. And I think the most important thing here is, of course, to consult with a financial professional, like, for example, Mr. Mike Zeno, uh, to make sure that you're going about everything properly here and that everything is properly structured for your individual situation.

Speaker3:
Great. And I think this is also the most important one here, too, because not every advisor is well versed in annuities. Okay, I'll tell you that straight from the top okay. Annuities are extremely complex products. And so consulting with a professional who can provide clarity, walk you through the ins and the outs, and provide that personalized guidance is just the prudent and right thing to do, because a trusted advisor can help you navigate all of the different options and make the selection that's best for you, that enables you to reach those financial goals. So, you know, creating that personal pension through an annuity can offer you the peace of mind as far as that guaranteed income stream, uh, in retirement is concerned. And by carefully selecting the right type of annuity and ensuring that it fits within your overall retirement strategy, you can effectively create a financial safety net for your later years.

Speaker2:
Yeah, absolutely. Can you can create that, uh, personal pension. You can also reduce the risk in your portfolio, establish that lifetime income stream. It's all, uh, possible through the use of particular kinds of annuities. And if they are properly structured, they can work hard for you. You've worked hard for your money, so why not invest in something that's going to work hard for you, right. And and give you that downside protection as well? Mike Zeno is the guy to talk to. If you want to get started down that road, just go to Money Matters with mike.com. That's Money Matters with mike.com or call Mike at 7045601573704560 1573. Well, there's a new study here that we want to talk about, Mike, uh, from nationwide. It's their ninth annual advisor authority survey. Uh, that, uh, we just saw in this Morning Star report, uh, very recently. And it revealed actually three statistics about retirement that are concerning to financial professionals just like yourself. Um, and so, you know, the landscape for retirement really shifting here. As the economic landscape shifts, financial planners are facing new challenges, though, that could affect the future stability of retirees. And so we're going to go through these statistics that are very concerning that that underscore really how the landscape is changing and how it's becoming more difficult for a lot of people when they want to achieve a secure retirement. Um, and number one here, Mike, is, is concerning that you know, retirement at 65 is becoming really unattainable for a lot of people.

Speaker3:
Yeah. I mean, and if you think about retiring at 65, I mean, that used to be the actually it used to be 55. I mean, I remember growing up in the 70s and people would retire at 55 and then they'd be dead by the time they were 58 or 62 or, you know, I mean, that's just life expectancy back then, you know, according to the survey, 69%. So almost seven out of ten free retiree investors. And those are folks that are aged between 55 and 65. They believe that retiring at 65 is no longer within reach. And that sentiment reflects a stark departure from past generations expectations and highlights the growing uncertainty surrounding retirement. Okay, we're finding that people are, you know, at a minimum, now looking at 67, which is the current Social Security full retirement age, with many expecting to work well into their 70s.

Speaker2:
Yeah, that's absolutely is, uh, correct. And, you know, a lot of people even, you know, if you work into your 70s or beyond because you want to, that's one thing. But working because you have to obviously a completely different situation there. And so we want that that first option to be you, if that's what you want to do, if you want to keep active and all that and keep working into your 70s or beyond, great. And you're able to do that. Wonderful. But don't get yourself into a situation where you have to work just to make ends meet. And then when you're no longer able, um, then you're just, uh, you know, kind of out of luck there, financially speaking. Um, some increased financial challenges, uh, here for folks compared to previous generations. Mike, that's number two on this list of statistics that are, uh, sort of really concerning to financial professionals. Uh, what are these financial challenges that the current generation that's retiring, uh, is facing, that maybe previous generations didn't? Quite face.

Speaker3:
Right? I mean, and to the point almost seven out of ten, 67% expected to expect to face more financial hurdles than their parents and their grandparents did. I mean, number one, the, uh, the the wage gap, okay, keeps growing and and income are not keeping pace with the rising cost of goods and services. I mean, if we look at, you know, how much a car costs, the average car in the United States now is now over $50,000, where when your grandparents were alive, the average car was probably, what, about six, $7,000? Right. You know, the average house in America is over 400 grand. Where the you know, back then there was probably $40,000. So, I mean, when we talk about everything is becoming more expensive and then factor in that the wages are not keeping up that increase and anticipated challenges is causing many of those near-retirees to have to adjust their financial strategies, whether that be working longer, extending their working years, you know, or altering their savings plans. And, you know, I kind of jokingly say when I meet with people one on one, look, when you're working, you're making this much. But when you retire, typically, unless you've planned for, you know, that income drop, your income is going to drop down significantly. And so I would rather see people suffer. And I pause there. Right. And and I'm like, I'm just easing sacrifice a little bit, you know, especially during your, your higher income earning years in your late 40s, 50s and early 60s and beyond, um, to save more money for retirement so that there's you don't experience such a significant step down when you do become retired and people are, you know, say, hey, I've, I live on a fixed income. I'm like, so do I, but I fixed it right. That's the thing. If you can fix it, if you just take action.

Speaker2:
There you go. Control the things that you can control and you can fix your income instead of it fixing you. I guess money matters with Mic.com is the place to go to, uh, set up that initial consultation, folks. It's absolutely free of any cost and any obligation. Once again, money matters with mike.com or call (704) 560-1573. A big thing too, Mike, that a lot of people are, uh, really, uh, losing their confidence in is Social Security, you know, I mean, there's a lot of, uh, people out there who say, I just don't know if it's going to be around when it's time for me to retire.

Speaker3:
And my my retort to that is, is like, okay, let's set a plan up that it doesn't matter whether it's around or not. And if it if it is around, hey, great. It's the icing on the cake, the cherry on top, whatever you want to use. But, you know, a lot of people have expressed the lack of confidence in the viability of the overall program for their retirement. And furthermore, 43% are not counting on Social Security benefits as much as they had in the past, which definitely marks a significant shift in retirement planning, where, you know, by a lot of retirees that have been retired for, you know, 5 to 10 or more years, they're like, that's the majority of their retirement. And so when when you look at all of these statistics, they do paint a very concerning picture for the future of retirement. And that has to prompt people in the field, financial professionals, to adapt our strategies so that we can better support clients who are navigating all of those uncertainties. And as the retirement landscape continues to evolve, staying informed, right? Listening to the show, having regular meetings with financial professionals, and being flexible in your planning approaches is going to be key in achieving financial security later on in life, folks.

Speaker2:
Yeah, that's right. And you know, you if you do have any of these concerns, it's it's understandable that you fall into these categories because you're obviously not alone. Um, with, with all of these concerns. And so if you're concerned about Social Security, if you're afraid that you are, um, not going to be able to retire when you want to retire, whether that's 65, 67, whatever age, um, 73, you know, whatever you want to do, increased financial challenges if you're experiencing those compared to previous generations, like a lot of people expect to in this survey, I know exactly what you need to do, and I would recommend highly that you get in touch with Mr. Mike Zeno at Money Matters with mike.com, or give him a call (704) 560-1573.

Speaker3:
And that way, you know, we can provide you with a Social Security maximization plan that is customized with both you and if you're married, your spouse's benefit information. And again, at least you have a plan, right. Winging it. Flying by the seat of your pants. Hope is not a strategy.

Speaker2:
That's right. Not a strategy. Not a plan. Get one together and you can do that by going to Money Matters with Mike comm. That's step one there okay. All right. So I want to, uh, now introduce you, Mike, to the Iron Nun. She is our retiree of the week. Her name is Madonna Buder. Buder. Um, and she is the very young age of 93, uh, located in Spokane, Washington. And, uh, tell you a little bit about, um, Madonna Buder here. She was born Marie Dorothy Buder, uh, born in 1930, in Saint Louis. Um, she found a calling early on in life. At the age of 23, she entered the convent to become a nun, and then left in 1970 to join a new, more nontraditional community of religious sisters, the sisters for Christian Community. That allowed her the freedom to kind of choose her own ministry, choose her own lifestyle there, um, probably didn't have to wear the traditional habit and all of that, uh, as well. But here's the the huge thing about her. In addition to being a nun, she began her triathlon career. Yes, triathlon career at the age of 52, encouraged by a priest who saw it as a way to harmonize mind, body and spirit as she competed or completed rather her first Ironman event at age 55 and known affectionately as the Iron Nun, she's competed in or completed rather over 325 325 triathlons, including 45 Ironman distances, and at age 75, she became the oldest woman to complete the Hawaii Ironman and continued to break her own records, eventually setting the world record for the oldest woman to finish an Ironman triathlon at age 82. Boy, do I feel lazy, you know.

Speaker3:
I you know, she said. She started at 52. I'm like, I'm 53. And the the the sheer thought of of running and Ironman or a triathlon, much less a, uh, or, excuse me, a triathlon, much less an Ironman. Um, yeah. No, thanks. Just ain't happening.

Speaker2:
I'm telling you. Uh, you know, I'm I'm not quite to my 50s yet, but I'm. I can't even think of that at my age. Um, at all, at least at this point. So. Great. Uh, great job there. Uh, to the Iron Nun. And she really says that her, uh, motivation here is her her faith and her commitment to staying active. You know, I mean, that that priest really had a big effect on her harmonizing body, mind and spirit and all of that, keeping healthy inside and out. So, you know, she said she believes in the importance of being outside in nature. And she describes that as God's cathedral, uh, and finds motivation in the spiritual and physical discipline of that sport. And kind of a bonus quote of the week here from the Iron Nun herself. She said, I don't know what I do without running. I love the feeling I get when I whiz past people younger than me, and they say, I want to be like you when I get to your age.

Speaker3:
That's awesome. You know, I, I love spending time out in nature as well. I think it's just great for the soul. It reminds you how small you are in relationship to the world. Right. And kind of it serves as a, as a as a little bit of humility. I, I got a chance to spend some time out on the farm, uh, earlier this week and, uh, brought my dog out. They had cut some hay and and rolled up the hay. And Murray, who's my my lab, he I think he crisped up 87 bales, you know, roll bales of hay, um, running all over the farm. But it just it just when you're out, I don't run, I don't bike, I don't swim, like, you know, in the triathlon or Ironman events that the Iron Nun did. But just when you're out and about in nature, it's just so dadgum refreshing. It really, really is.

Speaker2:
And if you can find yourself outdoors, uh, as often as possible, I think it's just a very renewing sort of a thing, uh, as you say. And, you know, Madonna Buder the Iron Nun, she really does continue to inspire and motivate people around the world, even at the ripe old age of 93. So that is why she is our retiree of the week, something that we can all kind of strive to be. You know.

Speaker3:
I'd love her for sure.

Speaker2:
Absolutely. Well, okay, so, you know, we mentioned, uh, one of the concerns a few minutes ago of a lot of retirees and pre-retirees, according to that nationwide survey that we talked about, Mike, was Social Security and and kind of the declining confidence that it's going to be there. Um, so we've got some strategies here or some, I guess some, some suggestions for how you can determine a good Social Security strategy for you. So let's go into this now because, you know, a lot of people just think, okay, well, I really don't have, you know, I can choose when to take Social Security. But aside from that, I don't really have much say in anything or many decisions to make. But there are actually a lot of decisions to make when it comes to social. Purity.

Speaker3:
Yeah. I mean there are a lot. And so before making any decisions about Social Security, the first and foremost thing that you have to do, it's essential to evaluate your current financial situation. All right. Understand where you stand with your savings and how much you'll need to comfortably retire. And if you are unsure about how to evaluate your readiness, consider consulting. Hey, guess what, folks? A financial professional who can provide personalized guidance and a plan that is tailored for you that is first and foremost, right? So yeah.

Speaker2:
Yeah. No, absolutely. It is, uh, you know, the number one thing. And again, I just happen to know a guy, uh, Mike Zeno Money matters with Mike comm. Just want to get that plug in here. Um, number two on this list, Mike, is to consider your health and your longevity. Big consideration as to when you know you want to time, uh, the Social Security payments starting for you 100%.

Speaker3:
I mean, your health and your expected longevity. They play a critical role in deciding when to claim Social Security benefits, right? If you're in good health and you have a family history of longevity, then delaying benefits to increase the monthly payout could be beneficial, right? We're. Conversely, if you do face health challenges, claiming it earlier might be a much more suitable choice for you to ensure that you receive the benefits when you most need them. And so I always suggest people to go get a complete and very comprehensive, almost intrusive type physical and have all of your systems checked, like have them scan your heart, your lungs, your kidney, your liver, your brain. Have them check your arteries for calcium. Right. Do all this stuff. Because if you get a clean bill of health, right, and you're are aware of your family history, then it might make sense to delay.

Speaker2:
Yeah, it absolutely might. And once again, you know, it all depends on your individual situation like we say. So make sure you get get checked out. Work with a licensed professional like Mike Zeno to determine when might be the best time, based on all of the information that you have at hand. And then also, you know, number three here is to actually plan for a longer retirement. People are living longer these days so that it just makes sense.

Speaker3:
Right. And given that fact, it might mean that delaying Social Security benefits in order to maximize the amount that you receive later on in life makes sense for you. So starting your benefits folks at age 62 is is is giving the government a discount, right? You pay into this your entire working career. And if you start your your your payments at 62, you're getting $0.70 on the dollar. All right. That's how much your money, your monthly payments are being reduced. Whereas waiting until your full retirement age gives you 100% and then age 70 actually gives you a lot more. And so a lot of people out there are unaware of the fact that they can draw off of a widow or widower. If you have a spouse that has passed away, it might make sense for you to claim their benefit and allow your benefit to marinate to where eventually it might surpass what their benefit was. And guess what? You might have an ex that you were married to for over ten years. You're entitled to that ex's social Security as well, and you might have the option to do that and allow yours to marinate. So there's a lot of complexities when it when it comes to Social Security and a lot of different choices that you're going to have to make. And so again, we can provide you with a complimentary consultation as well as a social security maximization and overall retirement plan. And all you got to do is call 704 5601573 or go to Money Matters with mike.com to book that consultation today. We definitely look forward to helping you get on the right path to a financially secure retirement.

Speaker2:
Yeah, absolutely. Do. And you know, I mean it's all about taking charge of your own destiny here and your own financial future. And if you're a loyal listener to the show or, hey, if you're a first time listener to the show, you are, uh, one who has a chance. Uh, that's it's really a great opportunity to schedule that complimentary retirement and financial consultation with Mike Zeno. Again, the website to go to Money Matters with mike.com.

Speaker1:
Want to know where your hard earned money is going. It's time for an inflation demonstration.

Speaker2:
So we all know that things are costing more each and every day. We we feel it. We see it at the at the grocery store, at the gas pump, at, you know, everywhere we go, uh, to pay for things, goods or services. But how does all of this affect your retirement plan? Well, that's the conversation we're going to have today in our inflation demonstration. Mike, uh, talk about kind of the the overall view here. What is the impact of inflation on retirement.

Speaker3:
Yeah, I mean, well, I think everybody listening to the show, if you've listened to it more than once, uh, we talk about inflation a lot. Right. Because it increases the cost of everyday items, everyday items, groceries, gas, entertainment. And what that does is it erodes your purchasing power over time. I mean, if you just go back ten, 20 years ago, your money went a lot further and it's been much more noticeable all of late, particularly the significant inflation experienced during Covid, uh, the pandemic, right, and the economic chaos of 2020. And so, you know, ultimately, what we're seeing is that even though the fed is doing their best to, you know, combat it and bring it back down, companies are not really lowering their prices, right? They they jacked them up because they have to pay for the rising cost of goods and services and materials and making the products and, and services that we use. So, um, I just don't see it changing anytime soon. And if you are not factoring that into your retirement, you are, uh, you're making a very, very big mistake.

Speaker2:
Yeah. It's a it's a slow process to get those prices kind of back down to earth. Hopefully it does happen, but if it doesn't and or if it's, uh, um, you know, or if it does, you know, you've got to just plan, uh, that's the big thing is to have a plan that covers all of your bases. Um, and there are some specific challenges here that we want to go over. Mike, when you have rising prices. Right? One of them is it's it's a good thing that Social Security is, you know, indexed to rise according to a certain measure of inflation every year. But, you know, do they keep up with the actual cost of inflation? That's the question. So those Social Security adjustments, they can present a challenge.

Speaker3:
Yeah they can because I mean yeah they're going up. And I think the the I read yesterday as a matter of fact, that the, the number they're looking at for 2025 is around 2.7%. Well, I mean, if, if you get a 2.7% cost of living adjustment, but inflation is over 3%, you're still upside down. And so historically those Colas do not fully compensate for the inflation, which leads to a gradual loss of buying power. That's like death by 10,000 paper cuts because of the fact it's a slow bleed.

Speaker2:
Yeah, that's absolutely right. It just it's sort of like a you know, you think about a melting ice cube sort of a situation. It just slowly erodes over time. And that's, that's where you'll be as far as your buying power goes thanks to our good friend inflation. Um, also your savings and investments, what are some specific challenges for savings and investments that are pre-retirees and retirees might be facing? Mike.

Speaker3:
Yeah. Well, I mean, it's it's exactly the same, right? They might not keep up with the pace of inflation if not properly managed. And so we're talking about your savings and retirement accounts specifically like 401 S 403 B's. 457 Tsp's. If you're a federal employee or an IRA, it may not keep up with inflation, which again, is going to reduce that buying power over time. And why you want to have an experienced set of eyes who is fully capable of navigating choppy waters as well as calm seas in making sure that you're going to be okay?

Speaker2:
Yeah, 100%. And, you know, I mean, especially if you are somebody who has a lot of your funds put away in something like a savings account that's supposedly a high yield savings account or even a bank CD. A lot of the time, um, those type of vehicles or bonds. Yeah. Or bonds especially, you know, I've had a had a very rough couple of years here. Um, you know, it's, there's supposed to be making making money for you. Um, but if they are not keeping pace or beating the pace of inflation, you're just losing money. Yeah. Your balance may be going up in those accounts, but if the dollar doesn't go as far as it used to, then you're you're still upside down, right, Mike?

Speaker3:
Absolutely. So I mean, again, proper prior planning prevents pitifully poor performance. And if you want to put a plan together, pick up a phone, give me a call, visit us on the web at Money Matters with Mike comm. And and let's get you straight right. Let's get you prepared for the future. You have no one to blame but yourself if you don't take action.

Speaker2:
That's right. And it's the easiest thing in the world to do. Just go to the website Money matters with mike.com. Um, and now okay, so let's we've sort of laid out the problem here and some of those difficulties that people face. So let's talk about strategies to mitigate the risks of inflation. One of these that we wanted to talk about, Mike, specifically, is the, uh, allocation of your assets during your retirement. That may sound like, okay, that's kind of wonky financial speak here for a lot of our listeners, but what do we mean when we say that?

Speaker3:
So, you know, when you're building your nest egg and you're in your 20s and your 30s and probably even your 40s, you're going to have a lot of money in stocks and in equities, because that's where you really, really build. But, you know, as you enter or prepare for retirement, much less enter retirement, you need to maintain an appropriate portion of your portfolio in stocks so that you remain invested with a growth type mindset. But you also have to be sure that your retirement plan has a good balance of protection. Okay, that matches your own personal risk tolerance. And people say, well, how do I know what what my personal risk tolerance is? Um, well, I have a risk profile questionnaire that is on my website that anybody can go on. It's free of charge. You just click on the tab, answer some questions, and it'll tell you you know, where you should be. As for as far as a risk profile is concerned. But you know, you definitely want to think long term and for the rest of your life when when planning for retirement.

Speaker2:
Yeah, that's absolutely right. It's more about long term. It's more about, you know, what the future might hold and it's more about, you know, planning for all of the different scenarios that you could be facing in the future. Because, you know, especially inflation like inflation is an ongoing thing. It's just it's been highlighted these past couple of years because of the high rate of inflation. But it's always around. So inflation is not going anywhere. It's not just going to disappear but very unlikely. Yeah. It's I mean it could you could have deflation and all of that. That kind of thing is always a possibility. But chances are it's not going anywhere. So what you want to do is be prepared for whatever the future might hold. And it actually is a possible, you know, to to do that so that you're prepared for, no matter what the situation might be.

Speaker3:
Yeah. Imagine imagine a scenario where you are guaranteed a monthly check each and every single month, but every single year it also goes up indexed for inflation so that you no longer have to worry about, you know what inflation is, okay. It'll be indexed to inflation to make sure that you're keeping up with that pace, folks. That is a reality. That is what I do for my clients. I give them that confidence, that peace of mind going into retirement so they don't have to worry about that silent tax that ends up breaking and ruining a lot of retirees.

Speaker2:
That's absolutely right. And so, you know, when people do go to the website, Mike, to Money Matters with mike.com or they give a call to (704) 560-1573, what happens? Describe kind of what the process is like after they reach out initially.

Speaker3:
Yeah. So I mean, the initial reach out is we'll schedule about a 15 minute, you know, what I like to call a discovery call. We'll kind of get to know each other, um, find out, you know, how many kids you got. You know what your hobbies are, what your assets are. And then if we decide to, you know, move forward, we're actually going to take a deep dive, okay. We're going to discuss all of your financial goals, what your vision is for, uh, your retirement or the rest of your retirement. If you already are retired. We will look at if you have a current plan, all right, as well as your portfolio of assets. How does that portfolio, um, you know, coincide with the plan that you have, and then we'll walk you through what our recommended plan looks like. And a lot of times it could be very, very similar, just with a kind of a couple of minor tweaks. Right. We're not trying to reinvent the wheel. Um, but we're here to answer as many questions that you have about your individual retirement, because what was right for your brother in law or your mom or your dad or your best friend at work might not be right for you based on your individual circumstances.

Speaker2:
Yeah. I mean, it's very individualized. It's very, you know, everyone is unique and as unique as we all are. Um, you know, our our financial situation is just as unique. So, you know, I mean, you, um, have a particular set of, um, you know, investments and savings and all of that that is unique to you and your family and your scenario. So why not have something that is not just as I like to think of it, as kind of not just pulled off the shelf, not just a one size fits all kind of a thing, because, I mean, normally, you know, if you if you look at, say, if you go to the store and there's something there, oh, this is one size fits all, usually it doesn't fit anybody. Well, it like fits one person really well. And then if it's one size fits all everybody else, it just kind of either hangs on you or it's too tight or whatever. Um, that's kind of like, you know, if you just kind of go to maybe one of the big, the big box retail owners of, of the retirement world out there, that's probably what you're going to get. But if you go to Mike Zeno, you get a personalized plan.

Speaker3:
Yeah, there's there's a big difference. I mean, everybody's seen, you know, people that have a very fitted dress on or a very fitted suit, a custom tailored. Right. It's couture. It's it's made specifically for you. It just fits better. And folks, there are signs, right? There are a lot of signs. And if you just pay attention, if you just look for these signs, um, you can see that you know what? You need to have a portfolio analysis done. You need to have your 401 K or your IRAs looked at. And some of those signs are number one, if you are consistently saving for retirement, but you're not happy with the rate of return that you're receiving, um, you probably need an analysis done. If you feel like your money is not working as hard for you as you did for it, and you'd like to learn how to maybe eliminate some of the fees. Uh, and future taxes from your retirement, then that might be a sign. And if you aren't receiving much help, if any help from your work based retirement plan servicer or your work human resources department, well, then I think that's a glaringly obvious sign that you could probably use a little guidance. So you know, whether or not you are a risk taker or you are risk averse. We have solutions for you. Whether you have, you know, $100,000 or $100 million. We have solutions for you. And if you are risk averse but are still looking to be able to grow, but as well protect your money for retirement, one of the best things that we believe you can do is replace the bond portion that you are currently holding within your portfolio with the right fixed indexed annuity, because when you invest in a fixed indexed annuity, you effectively put a floor. In other words, you cannot go below that amount of money on that portion of your portfolio. The value can only go up. It can absolutely never go down.

Speaker2:
Yeah. And if you've got questions about any of that, just call Mike Zaino at 70456015737045601573 or go to Money Matters with Mike comm. You can do that. Schedule your complimentary consultation and 401 K or IRA review. And also fill out that risk profile questionnaire there as well, because that'll give Mike a great idea of what might be appropriate for you based on your particular risk tolerance. All right, Mike, so let's update, folks, as we have gotten to do each week toward the end of the show, uh, on our national debt, it's never, never the happiest discussion here. Um, but what are we looking like at, uh, as far as the debt goes? Uh, courtesy of US debt clock. Org.

Speaker3:
This week, we're at $34.81 trillion, which means we've added another $10 billion just in the past seven days. And the reason that, you know, this is important, and we highlight this every single week, is because it can, uh, impact and negatively affect the sustainability of social safety net programs like Social Security, like Medicare. And obviously, those two programs are crucial for both pre-retirees and retirees. And so a high national debt can end up straining those programs, potentially leading them to reduce their benefits or increase the eligibility requirements. So that's why we highlight the national debt. And, uh, yeah, $10 billion in a week.

Speaker2:
Yeah. Yeah, it's I mean, I could, uh, if they just want to give part of that to me, that'd be great. Um, I'll just, you know, I'll retire. I'll retire early myself. Um, and then, you know, point. But, you know, I mean, yeah, it's it's a lot. And, you know, when we actually, you break it down, that one of the things that I, I like to look at too, is kind of the debt per citizen or the debt per taxpayer that they break it down as so per citizen, more than $103,000, but the debt per taxpayer, almost $267,000. If they decided to call that debt one of these days and say, hey, we need this amount from everybody if you're a taxpayer, and they just went to the taxpayers and said, hey, this is the amount we need almost $267,000 from each and every one of us. That really does put, uh, a highlight on exactly how much that is.

Speaker3:
It is. And if you don't have $267,000 in your pocket right now to give Uncle Sam, then you might want to utilize your voice in the form of a vote coming up this election season in November, because, I mean, people all the time, you know, I'm a big proponent of speaking out. If you believe that you can make a change and if enough people do, then guess what? It can happen. Forget about the old oh, my voice doesn't matter. It's only one vote. Well, if 333 million people thought that way, right? We'd never get anything done. So that's why I'm encouraging each and every single person to go vocalize with the power of their vote. If you are unhappy with the 267 and thousand dollar and counting price tag that you are have been assigned by Uncle Sam, that's going.

Speaker2:
Up each and every day. Um, something that's coming down, actually, though, Mike has been over these past couple of weeks, at least, gas prices. And this is what we'll end on with maybe at least a slight, tiny bit of good news here. Although the average price is still around 344 a gallon, $3.44 a gallon here. Uh, as of a little bit earlier this week, um, which is still obviously way too high. But hey, at least it's a few pennies less than it was this time last week, so I guess we'll take it. But if they keep coming down, that'll be better news.

Speaker3:
Yeah, it would be better news. And, you know, it wouldn't surprise me if coming toward election time that, you know, the gas prices just magically started to come down. Right? But, I mean, bottom line is, folks, we you know, I'm not sure what anybody believes, but we have the ability to make gas almost free with the amount of gas that we have here in the United States, if we would just tap into it. Um, but, uh, hey, um, good news is it's coming down for now.

Speaker2:
And that's absolutely right. I, you know, we'll take it as long as we can get it. Uh, at least a little bit of relief at the pump. Well, that is that the the tiny silver lining around the big, uh, rising prices cloud here that will end on Mike. That's just going to do it for this edition of the show. But thank you all, as always, for everything that you bring. And we'll do it again next time.

Speaker3:
Matt, I appreciate you for everything that you bring to the show as well and how you team me up and our listeners, every single one of our listeners. Without you, we don't have a show. So if you are listening and you are in the retirement red zone, meaning that you plan to retire in the next five years, or maybe you've just retired in the past five years, please give me a call so I can help strengthen your financial plan. You cannot afford to lose too much during these years, which means protection and growth is key. Folks, whatever you're doing this weekend, I hope you enjoy it to its fullest extent and as always, make it a great day.

Speaker1:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with mike.com or pick up the phone and call 704 560 1573. That's 704 5601573 not affiliated with the United States government. Mike Zeno does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

Speaker2:
Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees, and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer.

Speaker1:
Fixed indexed annuities can help protect your retirement savings against market ups and downs. Nationwide's peak ten can help protect against market risk and provide guaranteed income for life. Peak ten also has an optional rider that offers an immediate 20% bonus based on your principal applied to your income benefit base. Call us now at (704) 560-1573. That's (704) 560-1573. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company. Nationwide peak ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

Sonix is the world’s most advanced automated transcription, translation, and subtitling platform. Fast, accurate, and affordable.

Automatically convert your mp3 files to text (txt file), Microsoft Word (docx file), and SubRip Subtitle (srt file) in minutes.

Sonix has many features that you'd love including collaboration tools, world-class support, transcribe multiple languages, generate automated summaries powered by AI, and easily transcribe your Zoom meetings. Try Sonix for free today.