Checklist for Confident Retirement: Income, Taxes, Healthcare & More

4.25.25: Audio automatically transcribed by Sonix

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

Speaker1:
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.

Speaker2:
Welcome to Money Matters with Mike with your host, Mike Zeno. 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 where we dive into the strategies, the insights, and the tools you need in order to secure a confident and stress free financial future. I'm Mike Zeno, and my mission is to help you protect your nest egg, outsmart retirement risks, and live the life that you've worked so hard to achieve. Whether you are nearing retirement or already enjoying it, we are here to guide you along every step of the way. And boy, do we have a ton of great information on today's show. We are going to talk about how to take control during times of chaos, as well as providing some helpful tips for retirees wanting consistent results. 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. I'm doing great, Mike. What do you mean? Times of chaos. Is there anything been happening lately? I don't know.

Speaker4:
Happening right now?

Speaker1:
No. We should have plenty to talk about. Uh, as far as the show goes today, but, yeah. No, I'm. I'm doing great. I hope you are as well. I know it's been busy times for you always.

Speaker3:
I, you know, people ask me how I find time in the day, and I'm just like, everybody has the exact same amount of time. It's just where you put your priorities. And I put my priorities on helping as many people as I possibly can prepare for and succeed in retirement.

Speaker1:
It's the absolute 100% goal I know of you each and every day, and the goal of the show is to help educate people along those same lines. So thank you for joining us for the show. You know, without you, the show doesn't exist. So we appreciate you listening. Spread the word as well. Um, you know, the podcast is out there available on all of the different podcast platforms. So, you know, spread the word, tell, uh, the people that you like and even the people that you don't like to listen. Uh, we would really appreciate that. Subscribe. Leave us a nice, uh, positive rating on any of those platforms, and we really would appreciate that.

Speaker3:
Matt, you just made me laugh because I also, I often tell people like who are still working, I'm like, hey, if you have somebody in your office that you don't particularly like and you want to see them retire and get out of your hair, go ahead and give them my number. I'll help them retire.

Speaker1:
I love that. Well, hey folks, if that's you. (704) 560-1573 is the number 704560 1573. And Mike Zito can help you with that initial consultation that is absolutely free of any cost or any obligation. And he can help that annoying coworker as well, if you would like for him to. Um, money matters with Mike. You can do the same thing there. Just reach out via the contact page at Money Matters with Mike. Com of course Facebook, YouTube, all the different places you can find Mr.. Mike Zeno. I mean, he's helped a lot of listeners so far, and he would love to add you to that list. Right, Mike?

Speaker3:
Absolutely. And if you've learned anything along the way, guys, please go ahead and like the content on social media, share the content on social media and subscribe to our pages. That way you are sure to not miss anything moving forward.

Speaker1:
Absolutely right. Well, a lot of stuff coming up here on the show today. We've got our checklist for retirees. We're going to run through here in just a couple of minutes to make sure that you are covered and that you can retire with confidence also, you know. Have you heard from your advisor or your your professional, your financial professional lately? Uh, we're going to provide some personalized guidance or tell you how you can get that from Mike Zeno. Uh, coming up here in just a little bit. And then, of course, if we if we get there, Mike, because we got a lot to to go through here this next half hour, some common misconceptions about finances in retirement and some things that our listeners need to know. First, though, before we get to any of that, we get started with, uh, well, as we do each and every week, it's our quote of the week.

Speaker5:
And now for some financial wisdom, it's time for the quote of the week.

Speaker1:
And this week's quote comes from Dave Ramsey. Uh, another, you know, guy you might have heard of, uh, once or twice, maybe, uh, on a radio or a YouTube video or something like that, a TV show. Uh, but he, um, has these words of wisdom for us this week, and I think this is a good quote from him. He said, you must gain control over your money, or the lack of it will forever control you. Boy that's good. I think it's, you know, control the things you can, right? And you gotta just rope that money in.

Speaker3:
It is. And Dave and I don't always see eye to eye, but I wanted to take some time on this quote because I think it's an absolutely powerful principle when it comes to both financial planning and especially retirement income planning. It speaks to the importance of intentionality, to discipline, and to financial clarity. All right. Not just saving money, but truly owning your financial life so that it does not own you. And I want to break it down as to what he really means in that if you don't take charge of where your money goes, meaning if you don't plan, if you don't budget, and if you don't prioritize, then you are always going to feel behind, right? Like stressed out or maybe even enslaved by your current and future financial situation.

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

Speaker3:
And in terms of financial planning, there's a simple equation and clarity plus intentionality plus execution equals control. So let's break down each of those clarity. Know exactly how much is coming in each month as well, and more importantly, how much is going out each month. Be intentional. Decide in advance how every single dollar is going to serve your life's goals and then execution. Stick to the plan. Adjust as needed and avoid, uh, emotional money decisions. So once again, clarity plus intentionality plus execution equals control. What do you think about that?

Speaker1:
It's a good equation. Um, I feel like, you know, I was, uh, in school. I think math was always the subject that I least looked forward to going to that class each and every day. But, hey, I can handle an equation like that.

Speaker3:
It was my favorite. Yeah.

Speaker1:
Which is why you're in the line of work that you're in. Of course, you know, or at least one of the reasons these days.

Speaker3:
No doubt. So in retirement income planning, here's something to consider. Once you are no longer working, your paycheck stops. But guess what doesn't? Your bills. So gaining control means knowing what your monthly needs are, understanding what income sources you are going to have like Social Security, a pension, uh, annuities, cash withdrawals, right? All those different sources and creating an actual written plan so that your income is going to last your entire life. So I wanted to provide some real world examples, uh, of, you know, let's talk about person number one, who has no budget and who's always scrambling. Let's say Susan retires at 67 years of age. She has a half $1 million in savings, and she's going to get Social Security. Well, she never really made a retirement budget and figured that she would just wing it. And so what happens is that she overspends in her earlier retirement years, and then inflation eats away at her buying power. And at 77, she realizes that her money won't even last her another ten years. And there is a lesson to be learned here, because Susan never gained control over her money with a clear spending plan. Um, she's now being controlled by fear and uncertainty. Matt, what do you think about Susan?

Speaker1:
Yeah. You know, I mean, if you don't have that, um, that plan, then, yeah, you're going to be like, it sort of goes back to exactly the quote, you know, control your money or it's going to control you, or the lack of it is going to control you. Well, poor Susan, you know, she didn't have a proper plan going in. And so that money, um, or lack thereof, or at least the, the lack thereof in the, in the future that's always going to be looming over her. And she can't enjoy the years of her life that she's supposed to be enjoying the most.

Speaker3:
Right, right. I'll give you another example where having an income plan provides peace of mind. So let's look into a scenario where maybe a couple named John and Maria, uh, they retire with $700,000 in assets, and they work with a financial professional to estimate their monthly expenses to layer. Guaranteed income sources from Social Security and annuities and other things like that. They allocate other investments using a bucket strategy to cover their short term, their mid-term and their long term needs. And what ends up happening is that they know that their bills are going to be covered. They have confidence to be able to spend money on travel and on family without any guilt. And they have, uh, this freedom feeling, right, this, this feeling that they can do whatever they want in retirement. And it's what their golden years are supposed to be and not necessarily, uh, fearful. Right. They took control early, and now they are living life on their terms. And they're not dictated with what their bank account says each and every single month. A much more favorable scenario. Matt, don't you think.

Speaker1:
I know I'm sitting here like, ah, I like that story a lot more than poor Susan's story. Um, yeah. No, I mean, it's, you know, if you if you have those plans and you have those different, like you said, those layers of, of income, um, then you know that you're going to be set up for success in retirement. That's the thing is, not only is it the actual sort of, you know, logistics of, uh, you know, being able to make pay your bills and all of that and do the things that you want to do every month. But it's also that most important thing, to my mind, anyway, is what you said is that peace of mind. That just is something you really cannot put a price on.

Speaker3:
Yeah. You can't. And so I think, you know, going in and giving a last example would be having a lot of debt in retirement because that equals no control right. A couple retires, but they still have $40,000 in credit card debt. And they have two car payments and most of their income is going to pay fixed payments. And so what ends up happening is they feel pinched every single month. They're stressed. They have no margin for fun or forgiving or God forbid, for emergencies. And so I think there's a lesson here in that bad debt equals a lack of control. And instead of money working for them, it's actually working for the bank because they are financially trapped by choices that they did not plan for. And so the takeaway is that if you don't tell your money what to do, it will consistently tell you what you can and can't, more importantly, can't do. And so in retirement planning, that means making sure that you have a written retirement income plan, eliminating consumer debt, or as much of it as you possibly can before retiring, knowing your monthly income needs and then build in flexibility for fun, for emergencies and for legacy.

Speaker1:
Yeah, you got to have all of the above, you know. I mean, it's it's not just like you can go and plan for retirement the exact same way that your parents did, or your uncle, your aunt, your neighbor down the street, your good friend from work or whatever. It's unique to you, and you've got to have a plan that is tailored to you that covers all of those things that you just mentioned because, you know, if you don't, what worked for, you know, any of those other people may have been great for them, but it may be terrible for you because your situation is unique, it is your own. And you know you've got to plan for you. Not not for somebody else.

Speaker4:
Right?

Speaker3:
Absolutely. You know, you know, we're going to talk about some things here kind of going into a taking control and preparing for the future checklist, if you will. For those of you who want to retire with confidence, because if you're nearing retirement age or you're maybe freshly retired, you might not understand how critical it is to actually understand how to manage your financial life and how it differs from when you were working and actually earning a salary. Because earning passive income during retirement does not need to be difficult. And you can start this week. And guess what, folks? We are here to help. Money matters with Mike COVID-19 (704) 560-1573 is my personal cell phone number. Give me a call and we can get you on track to do the following. Okay. Number one, start tracking your expenses. Every single successful business has to have a well balanced budget. And you should treat your entire households finances the same way. Matt, what do you think about that?

Speaker1:
Yeah, it's absolutely right. I mean, you've got to look at it that way, you got to balance those things. You've got to balance your income with your expenses. You've got to make sure that you are saving and investing for the future. And, um, you know, I mean, if you if somebody is sort of overwhelmed by that a little bit like, like say that they, they don't have that solid financial background or solid financial footing, um, and they want to get started on the road to doing that. Like, how can they just do that? Because, you know, I mean, I feel like it's um, like you're given it's almost like taking me back to school years and you're giving a kid a bunch of homework all to do. And what all this is due tomorrow is don't put so much pressure on yourself, but just, you know, maybe get the ball rolling at least. Right?

Speaker3:
Right. They don't know where to start. So, I mean, I think a really good starting point would be to take a look at your last few months worth of expenses, even go back as far as a year and come up with an average monthly budget. How much money have you been spending? And when you look into your finances, you might actually discover ways to save money? Uh, such as maybe canceling some of those unwanted subscriptions or memberships. Now, nobody's going to get rich off of subscriptions and memberships unless you are just addicted to them. But our goal in helping you prepare for the retirement is to be able to replace those paychecks that you received while you were working with paychecks, so that you can enjoy your retirement. And this is done by using a combination of passive income streams, right. Social security pensions, personal pensions coming from income from IRAs or fixed indexed annuities, and then safe withdrawals from those retirement accounts. Think of it this way. How much of your retirement income do you want to be dependable and predictable and guaranteed? And then how much do you just want to leave up to chance?

Speaker1:
Matt takes me back to the casino. Uh, and, you know, I mean, you don't want to leave your retirement up to chance at least. At least I wouldn't anyway. I think I want as much guaranteed as I could possibly get, and I have a feeling a lot of people are the same way. And you know, Micah, one of the biggest things that you're going to have to account for in your retirement years is actually number two on this checklist. And that's healthcare. And this number two sort of item here is to secure healthcare coverage.

Speaker3:
Yeah. No doubt. I mean, no matter how old you are, hopefully you are covered by some form of healthcare, whether your employer offers it or you're buying it through the marketplace. But once you become age 65 or older, you can actually qualify for Medicare benefits and healthcare coverage. And then think of it this way, because Medicare covers, you know what, 50 million Americans right now? Um, I've actually been on Medicare. I've shared in the past that I, that I had a kidney transplant almost five years ago now and I'm doing extremely well. Thanks for asking. Um, no, I'm just teasing. But, uh, while I was in those first three years, I was offered Medicare, and I took advantage of it. And, folks, let me tell you, it was the best insurance I've ever been on. So not that I'm trying to wish years away from my life, but I can't wait to get back on Medicare. Uh, if you are retiring before age 65 especially, you're going to need to have a plan to cover yourself for those healthcare expenses, because a lot of times your employer healthcare is not able to be continued into retirement, which can be extremely costly for people in their 50s and early 60s. So those people might actually consider working longer, especially if your employer has a solid plan. And no matter which route you go, it is very important to get your healthcare coverage in order. Otherwise, you may be one emergency away from depleting your entire retirement income savings?

Speaker1:
Yeah, it's I mean, you know, if you ever have any doubts about that aspect of things, go look at, you know, maybe an explanation of benefits or, uh, a medical bill and look at the numbers before the insurance coverage kicked in and even something that may be simple or small or whatever, put it in perspective and see what the actual charge was, and then see what insurance covered. And then if you didn't have that coverage, look at what amount you would have had to pay. Um, it just really, I think is can be very, very eye opening.

Speaker3:
Astronomical, right. I think another thing to do, and make sure that you have done on a checklist is to allocate your investments and your retirement savings properly, especially given market swings. Right. If we had any of those lately, Matt, uh, market swings can be extra daunting when you are in retirement, so make sure that your retirement investments are properly allocated. And what that means is, well, as people get closer to retirement and even older during and in retirement, their tolerance for risk should go down because you don't have as much time to make things up. When you're younger, you have time to catch up after market losses, but those who are nearing or maybe already in retirement don't have that privilege. So there's this thing that's called the rule of 100, where you can prioritize building a solid income plan with guaranteed and dependable income sources. And that's definitely something to consider. And if you don't know what that is, money matters with Mike comm or (700) 456-0157 three.

Speaker1:
How's that for a good teaser there? You know, just call them up or go to the website and find out, folks. Um, number four on our checklist here. Mike is super important. And, you know, I think kind of often overlooked by people because they may not necessarily realize that they do have choices to be made in this area, and that is to plan your Social Security strategy.

Speaker3:
Correct. You know, and if you have not already figured it out, it might be time to nail down your Social Security strategy as far as when you're going to start collecting your benefits. It is one of the most important decisions in retirement, and it sets the initial building blocks of that retirement income plan. It's probably the number one question that I get from people who are not yet age eligible. As far as, hey, Mike, when do you think, based on what I'm showing you, I should start and begin taking those payments. And so obviously that's on an individual basis and not every single person is created equally. But Social Security does pay out higher benefits to those who delay turning on income each and every single year beyond age 62, all the way up to age 70. But not everyone should wait as long as possible. It really depends on your health. It depends on your own personal timeline. It depends on your income needs. You might need to start receiving those benefits a little bit earlier, and we can help you determine the best time to turn those on and create a complimentary income plan for your retirement, so that you can get to the guarantees and start to plan for those income sources that will ultimately fuel your lifestyle and fund all of those retirement expenses.

Speaker1:
Yeah. Absolutely. Right. I mean, you got to have that plan in place. And you've also number five on this checklist. You know, a couple of weeks ago we went through everybody's favorite time of the year, tax time. The tax deadline was back on April 15th. And um, if you don't go into retirement understanding your tax responsibilities, which is number five on our checklist, then, uh, you might be in for use this term again, a world of hurt.

Speaker3:
Yes. It is the worst part of the game to take a quote from a crying kid on some, uh, Facebook video when playing monopoly. The IRS is not a good partner for retirees, folks. When your income and your expenses may be lower in retirement as compared to when you were working. Guess what? You're still on the hook for taxes. So consider using the two types of truly tax free investments to help power your retirement plan. And again, if you want to know what those are, give me a call or go to Money Matters with Mike. Com. Do not forget, folks. Please do not forget that all of the savings in your 401. S your 403 B's your TSP. If your federal employee, your 457 your IRAs, all of that savings is tax deferred. So you have a ticking tax time bomb. And that means that you're going to be charged income taxes when you begin to make withdrawals. Guess what? That means that your nest egg is nowhere near as big as you thought it was. That, folks, is a problem. If you want to overcome that problem and have a plan for tackling it. (704) 560-1573 or Money Matters with Mike. Com.

Speaker1:
Yeah. And you know money. Money matters with Mike. Com of course again is that website. And nobody enjoys paying taxes. Um and so what you want to do is minimize that burden as much as you can in your retirement years. Absolutely a smart thing to do. And also I will emphasize here, a smart thing to do is number six on our checklist. And that is to work with a licensed professional and receive personalized guidance. I would encourage everybody to do that because like there's nothing I don't think that is a substitute for that. Having that that outside look at your own personal situation and getting that guidance that is just right for you.

Speaker3:
Matt. There is no substitute for that whatsoever. If you are somebody who wants to maximize your lifetime income, a financial professional can help you unlock strategies like optimizing Social Security or creating tax efficient withdrawals, and ensure that your money lasts as long as you do. If you are somebody who wants to gain clarity and confidence because retirement planning can feel overwhelming, but when you have expert guidance, you're going to have a clear plan as well as the peace of mind that goes along with knowing that you are on the right track. If you are somebody who wants to avoid costly mistakes because small missteps can have big, huge consequences in retirement, a financial professional can definitely help you avoid making those and keep you focused on what matters most for your future.

Speaker1:
And that is what matters. And you know what? That's why the show is called Money Matters with Mike. It's, uh, the website as well. Money matters with Mike comm, and you can call them (700) 456-0157 three. So, Mike, just a couple of minutes here before we have to run for this week's show. But I wanted to get to these five common financial misconceptions, these myths that need to be busted here. And misconception number one is that employer matching doesn't matter.

Speaker3:
Um, it absolutely matters. Many people don't Understand that you know how much it can significantly impact their retirement savings. But folks, let me just tell you, you must take action and maximize your contributions to take full advantage of all of that employer match.

Speaker1:
Absolutely. Misconception number two. This is probably my favorite of the bunch. Annuities are bad.

Speaker3:
Yeah. Annuities are so misunderstood, but they can provide income for life and tax deferred growth. And some annuities are not ideal. And you need to know which ones are good and which ones to stay the heck away from.

Speaker1:
That's right. Not all are bad. Misconception number three is that Social Security benefits are finite.

Speaker3:
Yeah, there's a lot of confusion about the longevity of those Social Security benefits, even though they're designed to last a lifetime. The problems that are facing the funding presents a lot of challenges. And so we want you to have a plan to not even rely on Social Security. Just count it as the cherry on top.

Speaker1:
Yes, absolutely. Misconception number four is that I'm not going to live long. I'm not going to live into my 80s 90s and, you know, forget 100.

Speaker3:
Yeah, most people underestimate their life expectancy. And the average life expectancy post age 65 is almost 20 years, which means 85, right? And there's variations between gender. So making sure your money lasts as long as you do is imperative. We want it to last more than you do.

Speaker1:
Absolutely right. And then misconception number five is that Medicare is going to cover all of my healthcare needs in retirement.

Speaker3:
Yeah it doesn't. There's nothing I can more I can say about that. It does not. You need to plan for additional healthcare expenses that aren't covered by Medicare.

Speaker1:
And any of those things that we've just I think those missed if we we've quickly busted here that you want to, you know, make sure that you have a plan for get in touch with Mike Zeno. Money matters with Mic.com is the website. The number is (700) 456-0157 three. Well, Mike, that's going to do it for this week. But we'll do it again next week sir. And thank you for everything that you bring to the table. And we'll do it again next time around.

Speaker3:
Matt, I appreciate you and everything you bring to the quality of this show, but most importantly, I appreciate each and every single one of my listeners. Whether you're listening to us in the Carolinas, on the radio or anywhere across the globe. Thank you, thank you, thank you. If you learned anything, please share the content across all of your social medias. Make sure you tag Money Matters with Mike and 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 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. Mera 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.

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 enterprise-grade admin tools, share transcripts, transcribe multiple languages, upload many different filetypes, and easily transcribe your Zoom meetings. Try Sonix for free today.