Set Yourself Up for Retirement Success

11.1.24: Audio automatically transcribed by Sonix

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

Speaker1:
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.

Speaker2:
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 people? Welcome to the show. I am Mike Zeno, coming to you from Fort Mill, South Carolina. Happy Saturday. We have got a ton of great information for you today. And we're going to talk about things like how you can have your retirement your way, as well as why getting a formal retirement plan should definitely be on your to do list. 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 doing today, buddy? I am.

Speaker1:
Doing great. Mike. I got back from a little vacation. I went on a cruise for the very first time up to like New England, Canada area and it was just beautiful this time of year. So I am good. I'm I'm rested, recharged and ready to go. Sir. How are you doing.

Speaker3:
Buddy? I am, uh, I'm busy, but a good busy. I spent the first half of the week up in our nation's capital up at DC. Um, talking to some government agencies up there advocating for financial awareness. It's one of the things that, you know, I have a very, very strong passion about making sure that America, um, as a as a whole is educated financially because boy, let me tell you, we're not. And I think we're going to talk about that a little bit later in the show. So I don't want to steal the thunder.

Speaker1:
Yeah, I was going to say that's a perfect way to tee up what we're going to talk about here. Coming up in just a little bit because, you know, we we've got some improvements to make when it comes to, you know, being compared to other civilized countries around the world and our retirement system, it just the grade is not is not a good one. We'll just tee it up that way I guess. Yeah.

Speaker3:
You think.

Speaker1:
Yeah. Right. Yeah. It's your GPA. Would not be too happy at that point with this kind of grade, but we'll we'll get there momentarily. Um, we wanted though, you know, go over I think, Mike, a great thing to do here. As we start off, if this is your first time, maybe listening to the show to Money Matters with Mike here on the air, let's just take a moment to talk Mike about why we're here, why you do what you do every day, and why we do this show every single week, both on the air in the Charlotte metro area and on the podcast at Money Matters with Mike comm. Yeah.

Speaker3:
You know, I have a passion for educating people about money. Okay, I did not have the best examples of money growing up or money management, I should say. And that manifested itself into my adult life. And I made every mistake that there was to make with money to the point where after the collapse in 2008, I literally lost everything and had to start over again. Um, I went back to school, I got my education, then I got my professional licenses and credentials, and I have made it my mission to help as many people educate retirees as well as pre-retirees by providing valuable information as well as insights to help you make informed decisions about your financial future. Um, we understand that Applied knowledge is power, and we don't want our listeners or any of our clients to ever feel powerless in retirement. And that includes things like staying current with the latest developments, the latest trends and best practices in retirement planning. The financial world itself is not stagnant. It keeps moving and we don't want our listeners left behind. So that is the number one reason that we do the show, Matt.

Speaker3:
Number two, we want to address all of the different types of retirement challenges that retirees and pre-retirees often encounter while offering smart strategies as well as solutions to help navigate each and every single one of those obstacles. Number three, we want to empower smart financial decision making by sharing our knowledge and expertise, as well as examples of just how we are helping our listeners as well as our clients each and every single day, month, week and year. We want to promote financial literacy because so many people feel like a financial freedom is just simply out of reach. And we're here to answer questions and to help you understand what you need to do in order to reach those retirement goals, right. We want to serve as your trusted guide. We are your resource for any questions to help you manage the complexities and prepare for not only just existing in retirement, but thriving in retirement. Matt. So that is, in a nutshell, why we do this show and why I have such a passion for helping people, financially speaking.

Speaker1:
Yeah, and I love the fact that, you know, you sort of do a twist on that old saying that knowledge is power, right? You mentioned that a moment ago and it really, truly is applied knowledge. That is real power. Because if you don't use the knowledge that you have, you know, you can you can hear somebody talk until they're blue in the face about all the different concepts that we talk about here on the show. But unless you apply that to your life, you know, it's not going to do anybody any good. Um, and so, yeah, I mean, I encourage folks not only to listen here each and every week, of course, but also to go to Money Matters with Mike comm or to schedule a consultation with Mike Zeno. (700) 456-0157 three. And then that is how you can really apply the knowledge that you learn here on the show, right? I mean, that's really where the where the rubber meets the road, as it were.

Speaker3:
It is. And I think that, you know, when we talk about all of the different topics that we talk about as it relates to retirement, I know that it jogs questions in our listeners minds. And so I would encourage each and every single one of our listeners to write down those questions so that you don't forget and then get in contact with me. I don't care if you get in contact with me on the social media, whether it's Facebook or YouTube or any of the channels that we're on or through, money matters with Mike, or just pick up a phone and give us a call. I mean, we are here to help you get all of your questions answered and prepare for a very, very healthy and fun retirement.

Speaker1:
That's right. And once again, the website is Money Matters with mike.com. You can also call Mike Zeno directly on his phone. That's right in his pocket at all times. Unless it's charging, you know, kind of in the middle of the night kind of thing. Uh, Mike, Zeno's number is 70456015737045601573. All right. So we've talked about all that knowledge that we are sharing each and every week with the listeners of the show. So why don't we get right into it and drop some knowledge for the listeners to pick up here. I will do so by starting off with our quote of the week.

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

Speaker1:
And this week's quote comes from author Alan Larkin. Alan Larkin was, you know, someone who really wrote a lot about time management and, you know, preparing for the future, right. So apropos of the things that we talk about here on the show as well, and the quote from Alan Larkin is this planning is bringing the future into the present, so you can do something about it now. I think that's such a great way to look at planning, Mike.

Speaker3:
You know, I love it because we often say, man, if I had only known then what I know now. And that's, you know, that's why they call hindsight 2020. Right? But planning is the tool that allows you to see the future and enact the future that you had always envisioned. I mean, it means that, you know, taking your future goals, your future needs, your future concerns, bringing them to the now, the present, and by understanding and preparing for them now, you can take steps today that will shape a comfortable and secure future. And taking this approach will transform your retirement from just a vague someday type of concept into something concrete, which gives you control over how you prepare and ultimately, how you experience it.

Speaker2:
Hungry for something to chew on? Here's some meat on the bone.

Speaker3:
So I want to go over three examples of how this idea applies to your retirement. So we've talked a lot about, you know, building an emergency fund and preparing for healthcare and all this stuff. But, you know, how about building an emergency health care fund? Okay, you might not anticipate significant health issues in the future, but we know health care costs tend to increase with age. And by setting aside a specific fund for future medical expenses, you're actually addressing future concerns. Now, in the present, in establishing this reserve early on, reduces the likelihood of you having to dip into your main retirement savings. It also provides you peace of mind that healthcare needs will not compromise your lifestyle in retirement. Matt, what do you think about, you know, creating an emergency fund, but specifically for healthcare?

Speaker1:
Yeah, no, I think that's a wonderful thing to focus on because, you know, we do often talk about building that emergency fund, you know, just a general emergency fund. Let's say something goes wrong with the house. You need a new HVAC system, you need a new roof. You know, you know, you have, God forbid, some sort of accident in the car. And you've got to have some, you know, some money to go out and buy a new car. You know, all of those type things that you're planning for the unexpected in life. But, you know, especially in retirement, I mean, healthcare is going to become one of, if not the single largest expenses that you have. Because the older we get, the more the body breaks down, right? So it only stands to reason. So having that specific money set aside for that purpose, I think is just a great idea for every single person listening to the sound of our voices here today.

Speaker3:
I hope they agree with you, Matt, because I certainly feel that way. All right. Number two, um, we talk about retirement as the golden years. Okay. So that means you should create that bucket list spending plan. Okay. Many people have dreams of traveling or pursuing hobbies once they retire, and rather waiting until you retire to figure out just how you're going to be able to afford each and every single one of your goals. Start budgeting for them now. For instance, if you want to travel to specific destinations, then start calculating the potential costs and then set aside a small monthly amount each and every single pay period for that travel fund that brings the future vision into present planning and makes those dreams far more attainable. Matt, I love to travel. How about you?

Speaker1:
I do as well. And as I you know, as I mentioned at the top of the show, I just got back from a cruise for the very first time and met a lot of people who had actually done that sort of very thing that, you know, they had saved up for a long time to be able to go and and do all of the things that they've wanted to do and go places they've never been before. You know, I got to go, um, to four cities that I had never been to before. And, you know, two of them in Canada, you know. So it was it was just a really great place to go and a really wonderful thing to experience. And, you know, if you have those bucket list items being, you know, places that you want to go, things that you want to do, you save up for those because you can, you know, really and truly bring that dream that you have into the present and make it a reality for your future self.

Speaker3:
Yeah, people ask me all the time they're like, Mike, how do you travel as much as you do? And the answer is, is, you know, I plan for it. And so every time I get paid, I take a little bit of money and we put it aside and we just know that that money is for travel. You know, I also do that with taxes. You know, I pay a little bit aside for taxes. I put a little bit aside for the emergency fund, and it's just a matter of getting control of your finances instead of letting your finances control you. And the last and final thing that I want to talk about is Maybe you want to take on new hobbies, or you want to continue what is called lifelong learning. And so, you know, retirement often brings the opportunity to explore new interests, new hobbies, but, you know, learning a new skill or maybe even joining a club that can have a lot of costs associated. And so by identifying what you'd like to pursue in retirement, whether it's gardening, whether it's woodworking, or even going back to college and taking classes that you're actually interested in, because when you're interested in, you tend to apply yourself, okay, you can begin setting aside those funds and perhaps even time for those interests today. Now in the present. All right. You might take introductory classes or build a network with others in the field so that by the time you retire, you're ready to jump into those activities and enjoy them to the fullest. Matt. Yeah.

Speaker1:
I mean, that is great. And, you know, a lot of times people talk about instead of necessarily, you know, retiring, maybe reinventing themselves in their retirement years. Right. And so, you know, making those, um, those hobbies that you might already even have, turning those into something that you do more as more than just a hobby. Maybe you enjoy woodworking and it's just something that you've done kind of in your garage, but you want to do it more because you've got more time on your hands. Turn that into something that can make you some money as well, so that you can you can cash in on the woodworking or the painting or the, you know, things that you like to do. My my mom, when she, um, you. Well, when I was a kid, she used to take painting classes. And then after she retired, she kind of, you know, would paint some and then take those to, like, a local market, uh, random weekends and sell some of her paintings and stuff. So it's, you know, it's cool. You can you can really take time to learn new things and reinvent yourself. And not only have that be a fulfilling thing for you know yourself, emotionally and mentally and all that, but also have it be a fulfilling thing for your wallet.

Speaker3:
Yeah, there's no doubt. I mean, have you thought about what you want to do maybe in the next chapter of life?

Speaker1:
Yeah. You know, I mean, I have thought about a lot of different things. I want to travel a lot. I do want to travel a lot. That's going to be, I think, number one for me. But I also, you know, I enjoy, um, you know, getting in and like, doing things with my hands, which is why I mentioned, like, the woodworking thing, the painting thing, like building stuff I've always enjoyed. My dad was actually very good at building furniture. I have a, I have a bookcase that I've had since I was a kid that my dad built back in the day, and I'm like, this is the kind of thing that I kind of want to do, even if it's just like small pieces of furniture or whatever. I just want to, like, get really good at it and then, you know, either just do it, you know, for myself or maybe go and try and sell some pieces somewhere, you know?

Speaker3:
Yeah. No doubt. I mean, I've actually thought of of going back to college, uh, to get a law degree. You know, just just to have it. I mean, it just sounds like something that would be interesting, uh, would keep me engaged, at least. And, you know, I know I've got a couple buddies that that, uh, are attorneys, and they're like, dude, you're crazy. I'm like, you know, I don't know, maybe I maybe I am stop doing what I'm doing because I have a passion for this and I love it so much. But I just think that that could definitely complement when we talk about financial law and stuff like that. I just think it would be a cool addition to the to the repertoire.

Speaker1:
Yeah. And even like, you know, things like tax law and stuff like that. I mean, just adding that to the book of Knowledge, I mean, that does get into the weeds a little bit, right? That does get into the weeds. Just a touch. But. Yeah. No, it's it's true. But yeah. No. Understanding different aspects of the law I think is great too. But yeah, I mean you might be a little bit crazy, but hey, you're crazy like a what's the saying? Crazy like a fox? No, I don't know. It's one of those crazy, like some kind of animal. I have no idea. Sly like a fox, I think is a thing, but crazy like some animal. That's crazy, I guess. I don't know. Um, speaking of crazy things, um, one thing that is kind of crazy here is this new study. That was a global study that was done. And we'll go into a little bit more about who did this study and all that. And just a second, but as we were talking about at the top of the show, the US retirement system has not scored very well in this particular study. Um, and I think I mean, because we are, you know, the number one economy in the world, we are, you know, the the envy of the world when it comes to so many different aspects of our lives, the retirement planning situation in the country, not one of those things because we got like a c-plus grade in this study.

Speaker3:
You know, And pardon me for being blunt, but we suck when it comes to retirement planning as a country. Matt. And that is why I am so impassioned about, you know, teaching people that listen to this show and that I come in contact with and that come to, you know, my retirement workshops. I'm trying to give them a leg up so that they perform way better to an A or A+ level. It's just I mean, it's unacceptable is what it is. It's absolutely unacceptable. But the financial education system in the United States of America is broken. Therefore, it stands to reason that our retirement system, okay, is also going to be broken. And I think that manifested itself now for the second year in a row, um, we've received a C, um, and, and our numbers are actually steadily declining.

Speaker1:
Yeah, yeah. That's right. And we've never gotten above a C plus in the many years of this study. It started in 2009. This is the 16th annual Mercer CFA Institute Global Pension Index. We have come in 29th out of 48 countries. Um, and I mean, they say here, Mike, that the big reasons for this C plus grade include concerns over pension funding, of course, and shortfalls in private retirement savings. That I think is, again, why it's so important that you do what you do all the time, whether it's again here on the radio or podcast or in the seminars that you do. You know, I know you speak to a lot of federal employees, federal agencies, even, you know, advocating for pre-retirees and retirees around the country. That's why that work is so important, because it's not just what we talk about a lot, which is the, you know, pensions kind of going the way of the dinosaur in this country and the funding of what pensions are. They're not really being all that great either. But the private retirement savings, the savings that you know, where the onus is now falling onto you as the individual to be able to save up for your retirement, invest for your retirement plan, for your retirement. That is, as you said, a direct result of the financial education system not reflecting the reality of what daily life is like in America.

Speaker3:
Yeah, no. And when you really start diving into the statistics, right, only 21% of workers in the United States have an actual pension because only 11% of companies offer the pension, they have definitely shifted the onus onto the employee. And according to the Census Bureau, only 1 in 5 Americans who are expected to reach retirement age by the year 2030 are actually prepared. So 20% are prepared, 80% are not in this age group is the first ones to face that milestone without cushions like full social security benefits and defined benefit pensions. Okay, so this is why it absolutely matters to have not just a plan, but a strong income plan in retirement. You don't just want to wait and see what the market is like when you decide to retire. That would not be prudent, right? Wouldn't you much rather get to the guarantees and start planning way ahead of time for what you're going to do with the paychecks, as well as the paychecks that you're going to receive each and every single month? My proper prior planning prevents pitifully poor performance. The seven P's. We cannot not forget that. And we got to do something to elevate the grade of C plus. Um, you know, why can't we be like the Netherlands, like Sweden, like Iceland, like Denmark? It's it. It is no surprise to me that those are the happiest nations year in and year out, because they're financially savvy, and having money provides them with options.

Speaker1:
Yeah, that's absolutely right. They're financially savvy. The workers, you know, are provided for with a lot of different, you know, benefits, more benefits than we enjoy in this country a lot of the time through our employees in in the US. So yeah, I mean they are just gonna be right up there with not only the the happiness scale being to the max, but also scoring way above us when it comes to retirement planning with pensions and all of that kind of thing as well. And the way that you can start folks getting to those guarantees, getting the paychecks and the paychecks set up for you in retirement is by going online. Money matters with mike.com. You can reach out there directly, schedule a consultation which is absolutely free of any cost. It's free of any obligation as well. You can also call Mike (700) 456-0157 three. That's 704560 1573. All right. Mike. So, um, let's go through in the last few minutes of the show here this time around, the sort of the biggest regrets that people have had when it comes to planning for their retirement. There was another study that was done here, um, of 1000 older Americans, people between and. I love that they say older Americans. And the lower end of this is the age of 48. Um, but it's Americans between the ages of 48 and 90 told Business Insider their biggest regrets in life. Two of the most common answers involved planning for retirement. And this number one, one that had to do with retirement was just to piggyback off of exactly what we were talking about, not saving enough for retirement.

Speaker3:
Well, Matt, that tracks right. I mean, people who don't save enough are not going to have great retirements. And so that is why we, you know, have the grade that we have the consistently declining grade. Okay. Some people describe saving for retirement as a trial and error process, saying that they wished they had worked with a financial professional or taken courses on growing their wealth. And meanwhile, nearly every respondent said they had wished they saved more. Period. End of sentence. Many people said they lived too much in the moment and didn't consider putting money into retirement accounts or investments throughout their lives. Maybe they thought they wouldn't live that long. Who knows, maybe they were just into the instant gratification. Like the entire American society is, right, but they just didn't lend too much credence to the future, and thus they found themselves in a less than desirable retirement situation.

Speaker1:
Yeah, and that will happen again when you don't have the proper education to be, you know, planning in a way that is prudent for you and your situation and, and then you get to retirement. A lot of people have said in this particular survey that their biggest regret was mistakes that they made during the retirement process.

Speaker3:
Mhm. You know, so many of those respondents said that they claimed Social Security way too early and they received less money each month than had they waited until their full retirement age to collect more. Some said that they had to collect Social Security early because they needed the money, though others said they didn't realize how much more money they could have gotten if they'd waited. And that's just a simple education issue. Matt, something that our government has dropped the ball on. They are not educating us again, why we do our show. So if any of our listeners have any questions about your benefits, you know, choosing correctly when to start taking your Social Security is perhaps the most important decision you will ever make when planning for your retirement. And folks, you want to get that decision right. So let us help you consider all of your options with our free Social Security Maximization report. It's part of what we provide any of our listeners who simply reach out.

Speaker1:
And you can reach out by calling Mike at (704) 560-1573. 704 560 1573 or going online to Money Matters with mike.com. All right Mike. Well that is going to do it for this edition of the show here. But as always sir, I appreciate everything that you bring to the table and we'll do it again next time.

Speaker3:
Matt, thank you so much for your production value and your extra commentary and helping tee me up for the things that I say without you, you know, my show is not what it is. But most importantly, without our listeners, we don't have a show. So thank you from the bottom of both of our hearts. Whatever you are doing this weekend, I hope you enjoy it to its fullest extent and as always, make it a great day.

Speaker2:
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 704560 1573. That's (704) 560-1573. 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. Nationwide's peak ten fixed index annuity has arrived. P10 is designed to help provide a guaranteed lifetime income stream and offers protection against market losses with nationwide peak ten. You'll benefit from the flexibility to choose 1 or 2 year terms, protection for a spouse through a joint option, and an immediate 10% penalty free withdrawal. One of the attractive benefits of P10 is its optional bonus Income Plus rider, which includes a 20% bonus based on your principle apply to your income benefit base. Plus, this rider provides an 8% simple interest roll up for the first ten years or until the first withdrawal. Call us now at (704) 560-1573. That's (704) 560-1573. And discover how peak ten can help you plan now to retire with confidence later. 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.

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