Control the Controllables

11.15.24: Audio automatically transcribed by Sonix

11.15.24: 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. Just wanted to wish everybody a happy Saturday. We have got a ton of great information for you today, and we're going to show you why it is time to take control of your retirement savings, and we'll discuss some smart adjustments to make as we approach 2025. 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. Matt, how are you today, sir?

Speaker1:
I'm doing great there, Mike, I love this. You know, now is the time to take control of your retirement savings. Anytime is a great time to do that. And I would say anytime is a great time to spend a half hour talking to Mike Zeno about all things money and retirement as well. Yeah.

Speaker3:
You know what? I love meeting with our clients, discussing how we can help them reach their financial goals. We can help with all things retirement planning, whether that is risk management, estate planning, and a whole lot more because building sound financial plans is what we do best.

Speaker1:
Yeah, absolutely, folks. And if that is something that you need help with and of course, over this next half hour, if something sparks your interest or, you know, makes you think, oh boy, I do need help with this, I do need help with that Aspect of my financial life, especially as I get closer and closer to retirement because hey, we all are. Then you can just go online. Money matters with mike.com is the website that is Money Matters with mike.com. You can also call Mike at (704) 560-1573. (704) 560-1573. He's got the phone on him right now and always. And unless he is asleep in a meeting or out on a date night with his wife, he is going to answer that phone and and or get right back to you. If he is doing one of those many things or just a couple of things there that I've listed.

Speaker3:
You got that right, Matt.

Speaker1:
That's right. It's a priority is you. And that really is what the show is about too, right, Mike? I mean, the priority is the listeners and and, you know, spreading this financial education that we do each and every week.

Speaker3:
Yeah. Our financial education system in America is broken. Okay. And that's one of the ways I have of giving back is just to kind of put some Very basic financial principles out across the airwaves or on podcasts, wherever you may be listening around the world, so that people can educate themselves and just make better decisions when it comes to their money and planning for retirement.

Speaker1:
Yeah. And you can also find back episodes of the show online at Money Matters with mike.com. So if you want to listen and educate yourself some more about a lot of the topics that we talk about here on the show each and every week, that is the place to go to do that and also to subscribe to the podcast. All right. Mike, well, we've got so much to get to here during the show today. I am not going to waste any time because I've got, I think, one of my favorite quotes of the week here to share. And we're going to have a nice conversation about this. I know you've got some great points to share with us as well. So let's get started, shall we, 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 Catherine de Vries, who I was not all that familiar with until I saw this quote, and then started looking up things about Catherine de Vries. And she is a speaker and author, actually from Australia, spends her time now traveling the world and is just like her. Social media feeds are amazing because the photos are all so beautiful of different places that she's visited and people she's met around the world. And some wise words Catherine de Vries sharing with us today are these. Focus on what you can do rather than stress about what you have no control over. Ah boy, that that speaks to me on a very deep level. I think it.

Speaker3:
Speaks to me as well, and I hope it speaks to our listeners, because I truly believe that this quote is like a soothing massage, especially in the, excuse me, the chaotic world of retirement planning.

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

Speaker3:
I want everybody just to picture this. Right. You are staring down the barrel of retirement, and it sometimes can feel like standing at the foot of Mount Everest. And you don't even have any hiking boots on, right? The temptation to stress about things like market crashes, Social security reform, or the potential for an unexpected 50 year life expectancy post retirement. Guess what? Well, that's real okay. But here's the thing. Just like we can't control the weather on Mount Everest, we can't predict every single twist and turn on the road to retirement. What we can control is how we prepare for it. So, you know, when we talk about applying this to retirement planning, the first thing that you can do is and I've said it before and I'll say it many times again, control the controllables. Okay. What do you have to control? Well, you have to control your savings rate as well as your spending habits. So instead of spiraling into worry about potential future stock market volatility, focus on those things that you can control today, how much you're saving, how your spending habits are, and how you can maximize those contributions to each one of your retirement accounts. Think of it as training for the Everest hike. Okay, you can't guarantee the summit day will be sunny, but you can show up fit and prepared.

Speaker1:
Yes, that's absolutely right. And, you know, I mean, nobody climbs Mount Everest without doing a lot of training and preparation ahead of time. And when you look at it through the lens of retirement, I mean, you've got to do the preparation. You've got to make sure that you are ready for it when that day arrives and not just say, okay, well, here I am at the foot of Mount Everest, and I'm wearing my flip flops and and my shorts and tank top, because that's not you're not you don't have on the proper outfit and and none of the equipment to make that climb successfully.

Speaker3:
Absolutely not. The second thing, Matt. Shift your mindset from stress to strategy. I love this one. Okay. Because stressing about whether you're going to have enough for retirement is kind of like stressing about whether or not there's going to be enough toilet paper at the grocery store in a pandemic. Right. Remember the the great toilet paper shortage during Covid? The anxiety itself doesn't solve the problem. Action does. And so by focusing on actionable steps, setting a savings target, diversifying your investments, and adjusting your plan as your situation changes, you can create a sense of both progress as well as control. Matt.

Speaker1:
Yeah. You know, I mean, we had to get creative during the pandemic, buying not only toilet paper, but things like, you know, disinfectants and and all that kind of thing. And I remember, you know, having, having to get creative. I think I bought online at like a warehouse club's website. A big thing of toilet paper. It was the only brand that they had in stock throughout the entire company. I think I got one of the only boxes of it that was left, and because none of the local stores had anything. And so you do what you have to do in those types of situations and you got to you got to get creative sometimes.

Speaker3:
Absolutely. I mean, I was just thankful I have a Japanese toilet that has a built in bidet. But I tell you, even bidet sales went through the roof during the pandemic, something that the Europeans and the rest of the the world have been light years ahead of America on. But, you know, just a plug for bidets if you don't have one. I'm telling you folks, it's a game changer. Um, there are some out of the box ways to help you cope with long term retirement planning. And so here's where you can kind of get a little bit creative. Um, because the idea of preparing for something that may be ten, 20, 30 years away feels like you're trying to nail Jell-O to a wall. Okay. And here are some strategies that might make the process a bit more enjoyable or at least tolerable. Um, gamify your savings. Turn your retirement savings into a game is what I mean by that. You might create many challenges for yourself, like no spend November. I remember they used to have no shave November. Well, you can have no spend at November or save an extra 50 bucks a week in January. And then every time you hit a milestone, give yourself a small but guilt free reward, because it's like leveling up in a video game. Except instead of defeating a virtual dragon, you're slaying future financial worries. What do you think about that, Matt?

Speaker1:
I love that. I mean, you talk about, you know, just giving yourself that little bit of motivation and making it kind of fun is is great because, you know, I mean, people you challenge yourself, make it a game. I love that idea.

Speaker3:
Yep. Number two, we want to invest in experiences, not just assets. Okay. Yes, the stock market is important, but so is living a life that you love along the way. So instead about stressing out about maxing out your IRA every single year, try investing in skills or hobbies that could bring you joy or even generate income in retirement. So, you know, one of the things that that a lot of people like myself, I love dogs. So maybe you might consider becoming a dog walker. In retirement, you can earn a little extra income and you get to pet a lot of, you know, fur babies. So, you know, now is your chance to kind of prepare for things like that. I love that idea about not just stressing out, but actually investing in those types of experiences. Yeah.

Speaker1:
And my my dad was kind of that way, like in early on in his retirement actually, he got, you know, he was one of those people who could just never sit around the house with nothing to do anyway. But he's always had, always loved cars, and so he got a job, like a part time job at the local auto auction that was like just, you know, a couple minutes down the road from their house. And that was just such a great thing for him because he got to spend time, you know, working with something that he always had enjoyed. And so when you're able to take something that you love and, and make money with it, that is a great, great thing.

Speaker3:
Yeah. Number three, we're going to talk about the future. You exercise. We always talk about whether or not you want your future self to kiss you or kick you. Right. So imagine having a conversation with your 75 year old self, your 85 year old self, you know, what would they thank you for doing today? And it might sound silly, but it's a great way to keep perspective. Plus, you can picture them sitting there in a pair of snazzy slippers, right? Sipping tea and saying, hey, thank you for not blowing all that money on avocado toast, right? I mean, there's lots of things we can waste money on each and every single day. But your future, you you want to thank you and kiss you and not kick you.

Speaker1:
Yeah, absolutely. That's, uh. That's great. That's, you know, a lot of avocado toast, but, hey, it adds up. I mean, you know, think about how much that adds up over time and, you know, put it into that kind of perspective, too.

Speaker3:
No doubt number four is going to be to automate and forget about it, but in a good way, right. We never say, you know, set it and forget it because you always want to inspect what you expect. But when it comes to automating your savings and investments, you should do that as much as possible. Think of it like setting up a Roomba for your finances. It's quietly going to sweep your money into the accounts while you just go about your life, and you'll be amazed at how quickly setting up automation and forgetting about it can build wealth without you having to obsess over every single market dip. Matt.

Speaker1:
Yeah, that takes a lot of the the stress off the table. You know, when you are, when you're not worried about oh, what's you know, what's the stock market doing today. You're watching the stock ticker at the bottom of the screen. You're obsessing over it like you said. And and that just consumes so much energy. And you know, when you, when you don't have that to worry about, it leads to less stress, which leads to better health, better moods, longer life, and more enjoyable life all around.

Speaker3:
No doubt. So also you should have a quarterly, what we call financial freakout meeting, where you designate one day every three months to sit down and actually look at each and every single one of your retirement accounts so that you can assess your progress. It is your scheduled time to maybe congratulate yourself because you're doing awesome, or worry about it a little and maybe make some adjustments the rest of the time. Of those three months, you can just let it go and live your life. It's like a pressure valve. You're going to release steam regularly every three months so that it doesn't blow up at inconvenient times.

Speaker1:
Yeah, that's that's right. If you if you don't release that pressure, you never know when it's going to come out. You never know when it's going to that that valve is going to blow, you know. So that's a that's a great thing to do just periodically, you know, release that stress and have a look at everything. Make sure you're headed in the right direction no doubt.

Speaker3:
And sometimes, Matt, folks have to get a little bit philosophical about things. Right? Sometimes the best way to cope with the magnitude, the enormity of retirement planning, is to kind of just zoom out. In the grand scheme of things, all we can do is make the best choices with the information that we have today. So go ahead, prepare, save, plan. But remember that nobody has a crystal ball. Mine's been broken for almost 54 years, so when in doubt, you should adopt the A motto plan like you're going to live forever, but enjoy life like retirement starts tomorrow. So in short, do not let that enormity of retirement planning paralyze you. Focus on what you can do today and let the rest work itself out. After all, when it comes to the unknown future, we are all in the same boat. Okay, some of us just have a paddle and a few extra snacks.

Speaker5:
That's right, that's.

Speaker1:
Right, a few a few extra snacks. A few better snacks too, probably. You know, there's a difference between the no name brand, you know, chocolate bar that's been sitting on the shelf for a couple of years. And you know something? That's what I'm trying to think of. What my favorite chocolate bar is like one of those 100 grand chocolate bars or something. You know, there's a difference there, and you want to make sure that you are well equipped for your retirement years and for your journey in the boats. That same boat as everybody else. And you know what? If your boat has a few leaks in it, or if you don't necessarily think that you have a paddle or that paddle is not working very well for you, maybe the paddles got a hole in it. Go to Money Matters with Mike. Com because Mike Zeno is a guy who can help you out with that. Go through everything with a fine tooth comb and, you know, really just take a look at all of your planning for retirement or get you started along the path of planning for it. You might say, hey, Matt, I got I got nothing right now, except maybe I've been investing in my 401 K.

Speaker1:
I've been putting stuff in there, but beyond that, I don't know what to do. Money matters with Mike. Com great place to go. Click on the contact page and schedule a consultation there. Call Mike as well. (704) 560-1573. 704560 1573. That initial consultation, absolutely free of any charge or any obligation because, hey Mike, Zeno just wants to help you out. And that really is what it is all about. Um. And it's so funny, Mike. You know, I used to use the kind of use the analogy we're talking about boats and talking about. Well, maybe your boat has a hole in it. Um, actually, we're going to talk now about some holes that you can fill in your financial plan and kind of how to do that. Uh, this was something that we saw from Yahoo Finance here recently, and it some really great info that I think is, is applicable to a lot of folks. Um, the number one kind of thing here that we want to talk about, and these are not really necessarily in any particular order, but five ways here to fill those costly holes in your retirement plan. And the first one is safely draw from retirement accounts.

Speaker3:
Yeah. So that recent Yahoo finance survey found that 46%. So almost half of Pre-retirees and 27% just over a quarter have not, uh, as far as retirees have not figured out any type of withdrawal strategy. And I've often said, we mentioned earlier about climbing Mount Everest. Right. Most of the deaths in somebody's journey of climbing Mount Everest don't occur on the climb. They actually happen on the descent. Because, no, almost nobody in the financial world talks about the income and the distribution and the preservation plan. Right. So we don't want you dying of financial death on your descent when you're taking money out. So there's a guideline called the 4% rule that we've talked a lot about before. And so, you know, if you're younger when you retire, you may even want to be a little bit more conservative than 4%, which means that you're going to take less than 4% per year out of your retirement plan. And you need to adjust that every year after by whatever the prior year's inflation rate is. Right. So like I said, it's not a hard and fast rule, but it's one that you should actually go by. Um, if you're not speaking with a financial professional that can show you better ways. Okay. There are much more efficient ways to generate income that you need to live on during retirement, and we can absolutely help you with that. So just again, (700) 456-0157 three or visit us at Money Matters with mike.com.

Speaker1:
Yeah. Great thing to do there because as you say, there are much more efficient ways to get that income. Basically, take what you have saved and turn that into an income stream that you can never outlive. And there are a lot of other benefits potentially there as well. A death benefit. So you can pass that along to loved ones to any beneficiaries. There are other things that can be a part of that also. And and just give you a whole lot of peace of mind. Um, and number two, kind of along those same lines, peace of mind comes along with certainty, right? So you want certainty to have that peace of mind. And that really is what we're going to talk about next, building certainty into your plan.

Speaker3:
Yeah. And to create more certainty into your retirement plan, you might consider things like maximizing your Social Security benefit, which means delaying taking Social Security, especially if you are healthy and you feel like you have a clean bill of health from the medical community. Your family history is such that all of your people live well into their 80s, if not 90s and beyond, and you think that you're going to live longer. We're not guaranteed tomorrow. But I mean, we can use educated, you know, decisions based on information and medical data, because when you claim your benefits as early as possible at age 62, that's going to permanently reduce your monthly check by up to 30% per month, rather than if you wait until your full retirement age, where you're getting 100% of your benefit, or age 70 as it currently is, where you're going to maximize your benefit. So the to further improve certainty in retirement, you can strengthen your income plan by investing a portion of your portfolio in fixed indexed annuities that help you, you know, establish that personal pension. Matt was just talking about that generate lifetime income streams that cannot be outlived and come with a host of other benefits as well.

Speaker1:
Yeah. That's right. Definitely. You know, something that's well rounded and can give you that that peace of mind and that assurity, you know, those, those guarantees. And so you can have that certainty about your retirement plan that we've talked about. You also got a plan as well for long term care. That's something that can be you know, we're just talking about fixed indexed annuities. There are some that have, you know, particular features or riders that can go on those plans that can, you know, pay for things like long term care. There are also, you know, separate long term care plans out there, but they are getting few and far between and more expensive these days. But the bottom line is Medicare is not going to pay for it. So you've got to have a long term care plan.

Speaker3:
Yes. And in fact, it can be one of your largest expenses in retirement because the annual median cost of care nationally is $62,000 for a home health aide. That's just an in-home health care, right? $54,000 for assisted living, and then $108,000 for a private room in a nursing home. And those statistics are from 2021 by a survey that Genworth Financial did. So while you may never need long term care, you might want to plan for how to pay for it just in case, right? You don't want to need it and not have it. It's always better to have it and not need it.

Speaker1:
Yeah, and those plans are only or those costs rather for long term care and health care in general, just like everything else. Those are only going up. And that's one thing that you need to keep in mind as well when you invest is to help limit help mitigate inflation's impact overall.

Speaker3:
Yes. So when asked for the biggest financial surprise in retirement. Over half of retirees, 53%, cited higher than expected inflation. Okay. Retirees generally shift to a much more conservative portfolio over time, but they could still need stocks or similar equity investments just to help keep up with inflation. So the bottom line is that, folks, you need to get a second opinion. Okay. We don't want you dying of financial disease, right. Think about if you had cancer and you were diagnosed with that, you were going to get a second opinion. This is no different. Okay. According to the recent survey, half of Americans are do it yourselfers when it comes to retirement, which could lead to overlooking, overlooking some critical planning essentials. And so if retirees could do things, over 40% of them said they would have started planning earlier, worked with a financial professional, and by doing so, that can make all the difference. If you want to be on the right track to avoid costly mistakes and surprises in your retirement plan.

Speaker1:
Money matters with Mike. Com is the place to go to get started on your financial plan for your successful retirement. Mike Zeno is a financial pro himself and can help you out along the way. Money matters with Mike. Com once again or you can call him (704) 560-1573. Now, Mike, I know that you hear a lot from folks about all different kinds of retirement planning issues and things that they might have going on in their lives. One of those things I know is, is, you know, people might have an old 401 K kind of what we talk, talk about being an orphaned 401 K, right. Or maybe a pension or another retirement account. If folks have a situation like that where they've got this old account that's just kind of sitting there. What should they do?

Speaker3:
Yeah. I mean, the fact of the matter is, most people have changed jobs in their careers maybe a few times. And an estimate indicates about 29,000,401 K accounts remained forgotten about, you know, last year, which amounts to $1.65 trillion in unclaimed retirement benefits. And that's nationally, according to a report by capitalize. So it's such a big issue that a new federal retirement savings lost and found was required as part of the Secure act 2.0, which was signed into law in late 2022. And the first steps would be contacting your old employer, looking for old statements, old paperwork that might offer some information about the plan and if the company is still in business, just try to reach out to the plan administrator directly, and sometimes you'll even get a notice from Social Security regarding a potential private retirement benefit information, and you should definitely not ignore that, because when somebody leaves an employer and they have a vested benefit, the employer is required to notify the IRS. And then the IRS shares that information with the Social Security Administration. And so the United States Department of Labor has an abandoned plan search program to find out if a retirement plan has been terminated after a business went bankrupt or merged or just went out of business.

Speaker1:
Get in touch with Mike Zeno and he'll help you, you know, find those resources to track things down. Money matters with mike.com once again is the website to set up that free of any cost or obligation? Initial consultation. All right Mike, well, just about time to start wrapping things up here. But a couple of reminders to share with listeners before we have to run. Um, Medicare's annual enrollment period. We're pretty much right in the middle of it right now. And, you know, that means people need to look at their Medicare coverage.

Speaker3:
Yeah, you have a few weeks left. And by reevaluating your plan every single year, you'll likely find that you can save money on some of your Medicare expenses. And we know that savvy retirees do Medicare coverage checks every single year, just in case they have the opportunity to save some extra money. Who doesn't like saving money?

Speaker1:
I mean, I love it myself. That's just. Maybe that's just me. Also, the dreaded required minimum distribution as we approach the end of the year. A good thing to remember are those RMDs, Mike.

Speaker3:
That's correct. So that has to be done by the end of the year, December 31st. And what are we talking about? If you've got money in tax deferred accounts like 401 S or IRAs or any other type of account where you elected to kick the can down the road, so to speak, as far as your taxes, even if you don't need the money, you have to start taking those out. If you've turned 73 this year. So we do this proactively with all of our clients to help them plan any annual distributions in an efficient manner because missing that deadline that has significant penalties, it's the largest penalty in the IRS's arsenal. You definitely do not want to miss it.

Speaker1:
Yes, you do not want to miss that at all because you know, the RMD is it's obviously annoying, but the the penalty for not taking one that is much, much worse. All right. Well Mike, that's going to do it for our time here together this week on the show. But as always sir, thank you so much for everything that you bring to the table. And we'll do it again next time.

Speaker3:
Absolutely, Matt, thank you for what you bring to the table. But most importantly, thanks to each and every single one of our listeners, whether they're listening on the air or on podcast, wherever they might be. 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 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.

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