Are You Lost on the Road to Retirement?

9.27.24: Audio automatically transcribed by Sonix

9.27.24: 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 an arc in Fort Mill, South Carolina. Happy Saturday people. Boy, we have had a lot of rain this week. And if you live in the southeastern part of the United States, I hope that you and yours have been safe and secure and Godspeed to all the ones that experienced any type of damage. Listen, folks, we've got a ton of great information today, and we're going to show you on today's show how to bring your retirement vision to life. After all, we love helping listeners take action and improve their future. 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, sir?

Speaker1:
I'm doing great, Mike. Yeah. Trying to trying to stay afloat over here as well. Um, not in my normal surroundings this week as I'm usually in the in the studio, but I'm actually recording at home because I'm like, you know, I don't want to have to to swim over to the studio. So yeah.

Speaker3:
It's been it's been a wet one for sure with Hurricane Helene.

Speaker1:
It really has been. And so yeah, all of our best to anyone who has experienced any sort of damage, any flooding, wind damage, anything like that. Hope that everybody is staying in a in a safe spot. But other than that, other than the whole staying afloat thing, I have had a good week. I hope you have as well, sir. Um, you know, we've been dealing with some with some issues with the pets this week. I know that you've had it's been it's been an exciting one. We can say that.

Speaker3:
Yeah. My, my six year old lab got, uh, tagged on the face by a copperhead last Sunday, and so he he looked like the elephant dog for a few days. But, uh, the shot cocktail of of anti-venom and, you know, pain meds and antibiotics got him straight. So he's back to his normal, goofy self. And, you know, this is the time of the start of football season where all the venomous snakes, the copperheads in our area. And if you're a little bit south of us, the water moccasins, you know, they're going to start hatching. So just, uh, if you've got any wooded areas, just beware.

Speaker1:
Yeah. Lord, keep an eye out for that. Definitely. So. And one thing that we want you to pay attention to is the website as well. We want you to go online to Money Matters with mike.com and schedule a free 100% complimentary consultation with Mr. Mike Zeno. Any situation financially that you might have that's going on that you need help with. Mike Zeno can help you whether it's retirement planning, you know, getting the budget in line so that you are set up for success in your retirement or, you know, heck, even getting you there because, you know, right now, chances are you're probably on the that accumulation side of your life where you're trying to build up the money that you are going to be able to live on in retirement. And and Mike Zeno can help you through both of those phases. Right, Mike? The accumulation phase and that distribution phase as well. Yeah.

Speaker3:
That's right. Matt. So many people, uh, meet a financial death. I liken I'd use the the analogy of climbing Mount Everest and most of the deaths don't occur on the way up, but in fact, on the way down. And so and that the reason is, is not a lot of people give credence or as much credence as they should to the dissent to that preservation and distribution phase. So I would love to meet with you and discuss how I can help you reach your retirement goals, whether that be with planning, risk management, estate planning, and a whole lot more. Because building sound financial plans for my listeners is what I do best.

Speaker1:
That's right. And also you can if the website isn't more your speed and you want to give Mike a call on the phone, you can feel free to do that as well. 704 56015737045601573. It'll ring right there in his pocket and he will answer it. If he doesn't answer, he'll give you a ring back just as soon as possible, because it's rare that he doesn't pick up the phone. And if he doesn't, though, he will give you a call right back. You can also go to the YouTube channel Just search Money Matters with Mike on YouTube and also on Facebook search. Money matters with Mike there as well. All right. A lot to get to here in our show this time around, Mike. But first, as we get inspiration for our conversations, we do that as we do each and every week 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 time around, the quote comes from the former Secretary of State for the United States, Henry Kissinger, who said this. If you do not know where you're going, every road will get you nowhere. I love that especially, you know, that kind of hits home for a lot of us guys who don't like to stop and ask for directions.

Speaker3:
Yeah. The profundity of his quote is, is powerful. It is a powerful reminder of the importance of clear direction and planning.

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

Speaker3:
So when we apply that to retirement planning, it suggests that without a concrete vision of what you want your retirement to look like, you may end up unprepared or worse, dissatisfied despite years of saving and investing. So I'm going to break down how it applies, along with some common obstacles and maybe some creative ways to better prepare. So if you have not thought about your retirement goals, things like where you want to live, which activities you want to pursue and the lifestyle, the overall lifestyle that you envision, any financial plan may fall short, just as you would not start a journey without knowing the destination, entering retirement without clear and concise goals can leave you feeling lost or financially stretched, and there are some common obstacles while planning for retirement. The first one is lack of clarity when it comes to goals. Many, many people save and they save for retirement without a detailed understanding of what it is that they actually want, you know, are you going to travel and if so, what type of travel is that? Because, you know, pulling a camper and traveling the national parks requires not a whole lot of money traveling, you know, business class on Emirates and staying at the Four Seasons or the Ritz Carlton. That is going to require a different level of capital. So depending on how you travel, how extensively you travel, do you plan on starting any new hobbies? Because golf is expensive. Okay. Shooting is expensive. Tennis is expensive. Um, do you plan on downsizing your home? And so having vague goals often results in insufficient savings or inappropriate investment strategies? Matt, what do you think about lack of clarity as far as, you know, goals and planning for retirement?

Speaker1:
Yeah, no, that's absolutely right. You know, I think of planning for retirement and the process of getting there, sort of like, you know, setting your GPS up for a, for a trip. Right. The very first thing you got to do is put in that destination. And so if you don't know where you're going, how in the world are you going to get there? Um, it's just not going to happen. And the thing is, is once you put in that destination, what then happens? Then you have that roadmap to get there, and the GPS can guide you along the way to avoid any of those obstacles, like like the ones that you were just talking about.

Speaker3:
I absolutely love it. And you know, my GPS and I think pretty much everybody's GPS, especially if you're using Google Maps, can warn you of cars that are stalled in the middle of the road. You know, speed traps that are coming. That's my personal favorite. Um, accidents and may provide you with an alternate route that will save you some time. And that's really, um, what a financial plan is about being able to adapt, improvise and overcome no matter what life throws at you. Okay. The number two very common obstacle is simply underestimating costs in retirement. Okay. People fail to accurately estimate some pretty important expenses. Number one being health care expenses. Folks, the cost of health care has been rising exponentially over the past 30 years in the United States of America. And we're not even talking about things like long term care, uh, and how ridiculous it is just to pay for one month of either in-home health care, assisted living, uh, you know, accommodations or nursing home, 24 hour nursing home. And then what about all of those things that are tied to inflation? You know, the just the regular cost of goods and services, things that you consume each and every day that can absolutely derail even the best laid out plans. If you have underestimated and not built into those things. So unanticipated expenses can chip away at retirement funds much faster than what you would actually expected and planned for.

Speaker1:
Yeah, that's 100% correct. And that's the thing too, is we often say, you know, we don't expect you to have a crystal ball because our crystal crystal balls are broken. You know, it's like that mind's been in the shop for a long time. You don't have to be able to predict the future, but the thing that you do need to have is a plan that's going to be good no matter what happens in the future, no matter if inflation, you know, rears its ugly head to the extent that it did just a couple of years ago when we were looking at 9%, you know, inflation year over year. So you want to be able to to be prepared for no matter what happens, all those what ifs in life.

Speaker3:
Yeah. I mean, it goes back to the adage it's better to have it and not need it than need it and not have it right. I would much rather have it and not need it than the opposite. Okay, the third most common, um, obstacle that can derail retirement is simply relying solely on traditional savings. Okay, so if you're relying just on retirement accounts like a 401 K or 403 B, or if you're a federal employee, a thrift savings plan, or maybe you don't even have one of those. But you now have an IRA, and you haven't explored alternative sources of income, and you haven't explored diversifying your portfolio, and you haven't explored, um, tax efficient strategies for your portfolio, then you are absolutely missing the boat, and that could derail your retirement altogether. Yeah.

Speaker1:
And that is not a situation that you want to find yourself in at all. I mean, there's a lot that you need to be prepared for. And here's the thing. I think that, you know, once we when we go through kind of all these, these different obstacles that people might face in, in their retirement plan and throughout their, their life in retirement, it can seem overwhelming. It can seem overwhelming. It can seem like how in the world am I ever going to make it then? Well, that is why you need help from a professional, from a financial pro like a mike Zeno to help you navigate through it. Because, Mike, this is what you do each and every day.

Speaker3:
Yeah, it is what I do each and every day. And I always ask people a very simple question when they look overwhelmed, you know. And my question to them is how do you eat an elephant? And they kind of look at me like I have a third eyeball in the middle of my forehead. And they're like, what do you mean? I'm like, how do you eat an elephant? That's a very large undertaking. Well, you start by doing it one bite at a time, okay? Just like you had to, you know, rock back and forth before you could crawl and you could crawl before you could, you know, stand up, and you had to be able to stand up before you could walk and walk before you could run. You have to take those baby steps when it comes to retirement planning. And the sooner you do it, the more time to have that effect be compounded. All right. And then the fourth biggest obstacle that I see is just lifestyle adjustments. Okay. Retirement can bring on emotional challenges like the loss of purpose or social isolation. A lot of people, you know, going to work each and every day is what they live for. They live to work, which, you know, is a problem in the United States of America. There are many other countries, especially in Europe, where they don't live to work. They live to live. Right. Um, you know, social isolation, if you're by yourself and you no longer have to go into an office or get to go into an office to provide that interaction with people that you know, whether you like them or not doesn't matter. There's just some, you know, interaction there that can definitely derail because typical financial planning doesn't normally address those issues. And without preparing for those psychological shifts, your retirement just might feel unfulfilling.

Speaker1:
Yeah. You know, and that's one thing. I mean, I remember back when my dad retired and he, you know, had a good little time for a while, kind of sitting around the house and not doing much of anything. But then he was like eventually and not it didn't take that long. He was like, okay, I got to do something. I can't just, you know, sit around and not feel like I'm of any use and not interact with people and all that because, I mean, for, for a good 40 years, he was going into the factory every day, you know, and, and interacting with all these people that he had known for decades and all this. And suddenly, as you were saying, it wasn't seeing anybody, wasn't doing the things that he had always done, which some of that was a relief, and then some of it was just kind of a shock to the system. And so, yeah, I mean, it really can lead to that. So you got to have the, the sort of financial wherewithal to be able to help, you know, Make yourself get out there and and actually do some things in retirement. Um, because, I mean, you don't want to be in a situation where you have to go back to work, right? You want to if you if you love working and you want to do something. Sure. But if you, you know, don't you don't want to find yourself in a situation where you have to, to work. So if you don't have to work, then you want to have the financial resources to be able to do the things that you want to do and, you know, do these kind of fun things with people who are friends, family and loved ones.

Speaker3:
Yeah. No doubt. The good thing is, is that there are some strategies, and some of them are creative strategies to help you overcome those obstacles. So if you have a lack of clarity, then you want to visualize your retirement life, but do it in detail, right? Take the time and actually write down your ideal day to day life in retirement. Where are you living? What are you doing? Who are you doing it with? Are you going to volunteer? Are you going to work part time? Getting specific can help guide your financial choices and ensure that your plan aligns with your goals. Okay, the second thing is obvious diversify your sources of income and maybe you look outside the box. As far as income strategies, consider things like rental properties. Maybe you start a small business, or you create passive income streams like royalties or dividends through investing. Don't rely solely on a fixed pension or, God forbid, Social Security. Okay. And you have to budget for the unexpected. Build a what if fund right to account for those unexpected events like healthcare crises, or maybe helping adult children financially. That's real folks. I have I've had to do that and I get to do that. That's a privilege. Okay. Consider insurance options that can cover those risks. Maybe long term care insurance or a health savings account and then invest in non-financial resources. So, you know, it's one thing to have financial wealth, but it's another thing to build social capital and building that strong relationship with your friends, your family. Developing community networks can become crucial support systems when you actually do retire, and that social engagement can help prevent isolation. It will improve your mental health and even, believe it or not, reduce medical costs. Right? Matt.

Speaker1:
100%. And that is something, I think, that people don't necessarily connect the dots in their mind with because, you know, if you are doing better from a mental and emotional standpoint, you've got less stress. Well, the amount of toll that stress can take on the body is huge. So if you avoid that then yeah, you avoid these higher, you know, medical costs potentially you are just in a better spot from a wellbeing standpoint overall. Not just mentally, not just emotionally, but physically as well.

Speaker3:
Yeah no doubt. So the key takeaways in as far as I'm concerned are to keep evolving your vision. Retirement is not a static phase. As you age, your preferences may shift. Your needs will probably shift and set aside some time every few years to revisit your goals. Adjust your plan as needed, which is going to allow flexibility for personal growth as well as changes in circumstance. And then you might consider coaching or counseling to help adjust to the emotional aspects of retirement. Having a purpose driven retirement, whether it is volunteering, learning or mentoring will make the financial aspect much more rewarding. So, you know, I love Kissinger's quote. It reminds us that a vague, unplanned retirement could lead to dissatisfaction and even financial shortfalls. And obviously, to avoid those things that nobody wants, you need specific evolving goals, as well as a holistic approach to planning that accounts for emotional well-being, unexpected costs, and diversified income.

Speaker1:
And it's definitely, as you say, not a static thing. You've got to be able to make those adjustments. You've got to know that change is coming. I think that is super, super important here. And and folks, I will say to you as, as our listeners to the show, it is easy to get started along a road to a better retirement, one that you have a peace of mind about, one that you can have some assurances about, and know that you're going to have enough money to last as long as you do. And you know at least enough money to last as long as you do. Plus, you know those $2 to pass along to the next generation as well. And and any other, you know, beneficiaries that you want to name or that you have in mind. And that's just kind of the the tip of the iceberg as far as what Mike Zeno can do for you. I want to encourage you to go to Money Matters with Mike. Com once again, that's Money Matters with mike.com. You can also give Mike a call 70456015737045601573 and set up a consultation that's absolutely free of any cost or any obligation. And Mike, one thing too, that you help folks do when they when they make that call, when they go to the website and schedule a consultation with you. One of the very first things that'll kind of be on the docket for discussion here, after you do the kind of getting to know you phase of things is coming up with what we like to call that smart vision for retirement. Like, where do you want to go and what do you want retirement to look like.

Speaker3:
100% by making clear where you are going. You can create that roadmap that not only gets you there, but allows you to actually enjoy the journey. And so, you know, defining what you're doing, who you're doing it with, who you're taking care of, and what your goals are, as well as how to plan and to fund a 30 plus year retirement just simply because people are living longer. If you don't start with a clear vision and a clear set of goals for your retirement, you could experience a lot of unknowns down the road.

Speaker1:
Absolutely. And there's some surveys that have shown recently that 37% of Americans feel that they need more education on retirement planning, I would say that the number is that number is probably a little low in my in my estimation there, because that's a little over a third of people in this particular survey. Maybe others do feel like they have enough financial education for their retirement planning, you know, aspect of their life. But that's probably, you know, they might be fooling themselves a little bit and might think that they know that might think they know more than they actually do.

Speaker3:
Matt, I don't know enough. And I'm in the business, right? I am constantly questing and on a journey and searching for you know what next? How do I better prepare? And if I'm doing that, folks, and this is what I do on the daily, people ask me, well, when do you work? I'm like seven days a week, every day that ends in Y. What are your business hours? Eyes open to eyes shut. And they kind of look at me like, what? And I'm like, yeah, that's how I operate. I'm, I'm a I'm a strange breed. What can I say? I want people to succeed. Okay. So if you call me (704) 560-1573, I'm going to recommend that you sit down with your spouse, with your family, and consider some important factors that will affect your golden years. And we're going to address each one of those factors right here real quick.

Speaker1:
Yeah, absolutely. In about four minutes left in the show let's talk about Social Security. First of all. Yeah.

Speaker3:
So many seniors assume that Social Security will cover the bulk of their retirement financial needs. And unfortunately that is not the case okay. So that's first and foremost what you want to, um, prepare for.

Speaker1:
Yeah. You want to make sure that, you know, you've got Social Security as part of your financial income plan for retirement, but emphasis on part, not all. Another thing that you want to address is taxes and planning for your tax burden in retirement as well.

Speaker3:
Yeah. So a common tax misconception is that your tax rate will dramatically decrease once you stop working. And you cannot count on that actually happening. So did you know that from 1960 to 1963, the current 24% tax rate, it was actually 56%? Okay, so what happens if the government changes the rules on us? You have to plan now for tax rates changing during your retirement, so that you get to keep more of your hard earned money, because after all, life expectancy is increasing. Those rates have more than doubled over the last 200 years. So most people that I sit down with are not planning on their retirement lasting even to age 90, which is a huge mistake. I love to plan at least to. 95 okay, and if we can get you there and you live that long, God love you because in truth, your money will last past 100.

Speaker1:
Yeah that's right. And that's why I say, you know, get that plan in place so that your money lasts at least as long as you do. You got to also, you know, plan for healthcare and including Medicare coverage. What it covers and what it doesn't cover is super important.

Speaker3:
To know it absolutely is, because people make the mistake of thinking that Medicare takes care of long term care, and it does not. Medicare covers everything from hospital stays to doctor visits. And as well as you know, you can add prescription drug coverage, but there is no long term care add on for Medicare. And as you age, especially with longer life expectancy, it's much more likely that you're going to have a higher need for any of these long term care expenses than people in the past.

Speaker1:
Yeah, absolutely. Right. Because that as we were talking about, that life expectancy keeps getting longer and longer. And so that just makes the need for all of these things and for planning to, to last throughout your retirement for this money that you have worked so hard for and, and saved so diligently over your life and invested so diligently over your life to last, no matter how long you last. So important, and I would say it's important for you to go to Money Matters with Mike. Com once again, that's money Matters with mike.com. Schedule that free consultation or call Mike at (704) 560-1573. Well Mike that's going to do it for our time here together this time around on the show. But I thank you, as always for everything that you bring to the table every week. And we'll do it again next time. Sir Matt.

Speaker3:
Again, thank you for what you bring to the table. It wouldn't be the same without you. And but most of all, from the bottom of both of our hearts. We want to thank each and every single one of our listeners, because without you, we don't have a show. If you learned anything today or you know anybody who could benefit from anything that was said on today's show or any of our past shows, please share the show. Go ahead and like us on the socials. Subscribe to YouTube because this is how we reach more people and effect greater and better retirements for all. So whatever you're 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 704 560 zero. 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.

Speaker1:
Remember, all of Mike's listeners receive a free financial consultation just for listening to the show. Visit Money Matters with Mike comm to learn more and schedule an appointment. Thanks for listening to Money Matters with Mike and subscribing wherever you listen to podcasts.

Speaker2:
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.

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