Do You Really Have a Retirement Plan?

11.22.24: Audio automatically transcribed by Sonix

11.22.24: 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'm Mike Zeno, coming to you from Fort Mill, South Carolina. Happy Saturday. We have got a ton of great information for you today, because we're going to show you why a properly balanced plan is key to a stress free retirement. Okay, 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, brother?

Speaker4:
I'm doing great there, Mike. I really I'm always doing great whenever we're here on the show together because, you know, talking about all of the different topics regarding money and helping educate people is just really fulfilling. And I know that it's what you do every day with, you know, just talking to people who are clients of yours already and then doing it to a mass audience here on the air and on the podcast and everything. It's just great. And I feel like, as you often say, the educational system as far as the financial education system in this country is broken. And so we're just trying to help fix it here, one episode at a time.

Speaker3:
Absolutely. One episode at a time. I love it. In fact, we love meeting with our clients and discussing how we can help them secure a financially Confident plan a plan that gives you peace of mind. And we can talk about everything retirement planning, whether we're talking about things to invest in, risk management, estate planning and anything else that you might want to talk about because building sound financial plans, Matt. After all, that's what we do best.

Speaker4:
That is absolutely correct. And you can give Mike a call at (704) 560-1573 to get started on your plan. 704560 1573 is that number or go online to Money Matters with mike.com. Money matters with mike.com. You can go there to schedule a consultation which is free of any cost and any obligation. You're only going to work with Mike if you decide on a mutual basis that it's the best thing for you to do, and then also more stuff that you can do online on the website. You can find back episodes of the show here. All of the previous episodes are available there to listen to, to download and all of that. You can subscribe to the podcast. There are also links to the socials there. Find us on YouTube. Find us on Facebook. Just search for Money Matters with Mike comm. On those particular social media channels. Now the question is, Mike, for today's show. And for our listeners in particular, do you have a real plan for retirement? And people might think, yes, but a lot of times I feel like the answer is is actually no. And and here's the thing. Just because you have, you know, a 401 K or an IRA or something like that, that you're putting or, you know, a TSP if you're a federal government employee, that kind of thing. If you have one of those types of accounts, that's not a plan. And that's going to be so much of what we get into today, right?

Speaker3:
It is going to be a lot. Matt. So why don't you kick us off with our quote of the week?

Speaker4:
That's absolutely right. Let's do it. This is our quote of the week.

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

Speaker4:
And it comes this time around from Earl Nightingale, who said this. As in all successful ventures, the foundation of a good retirement is planning. I love that you don't want to go into it blind. Right? You want to have a plan in place?

Speaker3:
You definitely don't. And you don't want to build your house on a foundation of sand. I think that is a very, very well known fact. Okay. And so my question to each and every single one of our listeners today is, do you have a real plan for your retirement?

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

Speaker3:
Over half of the folks that I talked to do not have an actual plan in financial planning from a professional goes beyond just simply having a retirement account. Okay. A true retirement plan is going to address things like your current income as well as your current expenses. It's going to project your future income needs as well as your future expenses in retirement. It will include inflation considerations, tax considerations, and other things that you have absolutely no control over whatsoever that could derail a plan. If you haven't accounted for them, it will create a roadmap for achieving specific financial goals like funding a grandchild's education, maybe traveling the world or leaving a legacy. And we provide our listeners with complimentary consultations as well as retirement plans. All they have to do is pick up a phone and call (700) 456-0157 three. Again, that's 704 (704) 560-1573. That rings my cell phone. It is the only telephone number I've had since 1997, and millions of people have that number. You can also visit us on the web at Money Matters with mike.com and book a complimentary consultation. Folks, we look forward to helping you reach your retirement goals.

Speaker4:
And that really is what it's all about helping people reach their individual retirement goals or their, you know, retirement goals as a couple, as a family, you know, whatever your situation is, whoever you are, and however long you've worked and however much you have saved or put aside, you need a plan. And that's, you know, kind of it goes to not only your retirement plan. I feel like, Mike, there is this other, um, kind of survey that was done, I believe, by Charles Schwab here saying that, you know, really people who, you know, have a financial plan as far as, you know, planning for their retirement and things like that, and something in writing. Also have, you know, healthy money habits in general. Right. I mean, it really does. It sort of bleeds over into other aspects of your finances.

Speaker3:
It does. Where they found in that survey that 65% of planners have an emergency fund, where 33% of non planners do not. 71% of planners. All right. These are people that plan. That's who I'm talking about. They are aware of fees and investment costs associated with their financial plan. While 45% of non planners have absolutely no idea about the fees and what it truly costs to, you know, put together a plan. 87% of planners regularly rebalance their portfolio, where 63% of people who don't plan that, they just leave it as it is. And so what is right for them at 20 years old is also right for them at 85 years old, right? Know your circumstances have changed, right? 47% of planners never carry a credit card balance. They always make their payments on time, and they have very little to no debt, while 29% of non planners fall into those categories. So I think that just goes to underscore the importance of having a strategy. Having a formal written plan and just taking the step and the action to put the plan together with a financial professional.

Speaker4:
Matt. Yeah that's right. And I mean, you know, we can sit here and say, well, it's really important that you have a plan. It's really important you have a plan. But you know where kind of the rubber meets the road here is. Okay, what are the benefits of that actually happening? Like, what is it going to mean to me in my own personal sort of financial journey? And we want to actually share There are six benefits, very clear benefits here that we want to share of having a comprehensive plan. Now, like I said earlier, you know, if you've got a 401 K, great for you. If you've got a TSP, great for you got an IRA. Great. That's not a plan. Those are, you know, types of accounts. But that's not a plan. You need a comprehensive financial plan. And we're going to go over six clear benefits here. The first one is that you really do get the full financial picture. You know, you're not just taking a look at one aspect. Oh well I got this credit card debt or I've got this auto loan or this house payment, whatever. You get a really overall view of your finances and that can be so helpful.

Speaker3:
It can. All right. Many people are shocked, okay. They're surprised by how seeing everything they own as well as everything they owe in one place, how that changes their perspective in a 360 degree view allows you to understand your financial standing much better and enables you to prioritize goals like debt repayment, saving and investing. That.

Speaker4:
Yeah, absolutely. Right. And then number two, big benefit here is building confidence in financial decisions. That can be a struggle. I feel like for a lot of people okay am I making the right decision here am you know is this is this right for me? Is it you know, and you've got to be able to build that confidence and that can that can be definitely something that takes a little time.

Speaker3:
Yeah. I mean, it is no surprise to me that a Charles Schwab survey found that 65% of people that have a plan guess what? They feel financially confident, compared to only 40% that don't have a formal financial plan. So, I mean, when we're talking about confidence in a plan, peace of mind, having that security and knowing that you're going to be okay. I mean, when the single biggest fear for folks approaching retirement is running out of money. Fear it more than death. It just makes sense that those with a plan are going to feel more confident.

Speaker4:
Yeah, and that comprehensive plan also, you know, kind of gives you the permission to actually enjoy spending money, which is kind of crazy. It's like, you know, people might think it would be the opposite, right?

Speaker3:
No, not at all. You know that you've prepared for it. So whether you want to travel or whether you want to give gifts to your family or spend on hobbies like golf or yachting or tennis or whatever, you know, expenses come with the hobbies that you want. It alleviates spending guilt, right? You can actually enjoy your retirement knowing that you're not jeopardizing your future. So I think that's huge.

Speaker4:
Yeah, it absolutely is. I mean, you know, talk about peace of mind that gives you gives you a lot of it there. And it also, you know, having having this comprehensive plan provides peace of mind during times of market volatility, like when everybody else is freaking out. You know, you can actually keep calm and carry on, as the old saying goes.

Speaker3:
Yes, Matt. I mean, I see so many people when the market just has a significant drop or dip, they freak out and they move everything over to cash. And what they've inevitably done is just locked in their loss. Because what's going to end up happening is that as soon as it drops, it's going to rebound. Okay. And by moving your money into a safe haven, you don't participate in that rebound. And so market fluctuations yeah they cause panic for a lot of folks that don't have a plan, but a financial plan that accounts for that volatility keeps you focused on your long term goals, reducing the urge to make rash decisions.

Speaker4:
Yeah. And that's you know, you want to keep the emotion out of the investing out of out of your investing life in that way. And that really helps you do it. Also having a plan a clear and comprehensive financial plan can give you those annual reality checks that you need to just, you know, stay focused and making sure that you're still on course.

Speaker3:
Yeah, every single year we have annual reviews with our clients that wish to have one. It kind of gives them a checkup from the neck up. Right. And gives them peace of mind. Things happen. Life changes. You may have a career shift. You may have a new grandchild. You may have sold a home, moved into another home. Right. And many of those might prompt adjustments in savings or spending to help you stay on track. So that annual reality check, I think, is critical to the overall success of one's plan.

Speaker4:
Yeah, the only thing constant is change, right? So there you go. And the more things change, the more you don't want them to stay the same on the financial side, because you've got to make adjustments as you go to account for those changes in life. And then number six here is the comprehensive plan will help you to avoid major financial surprises. You know, if you've got that plan in place, especially if you've got a buffer, an emergency fund, you know, whatever you you want to call it, you've got that peace of mind because if a financial surprise comes your way, you know it's not going to, you know, put you in the poorhouse, in other words.

Speaker3:
Yeah. And we could even address, like, what if scenarios. What if I have an unexpected medical expense? What if inflation, God forbid, returns to 9.1% like it was in in June of 2022, right. How does that impact my success of my plan? Okay. The preparation, it offers a safety net for those unforeseen challenges.

Speaker4:
Yeah, 100% right there. And, you know, I mean, if you need help in any of these things, if you, you know, if talking about these different benefits of having a clear financial plan. A comprehensive plan in place has really sparked something in you and saying, okay, well, maybe I do have the 401 K or whatever account, but I don't really have a plan for what to do to make sure I'm accumulating at the rate I need to be, to make sure that I can turn that into income, that I can actually live on in retirement, or any of the other things that you might be worried about. Give Mike Zeno a call because, you know, you want your money to work as hard for you as you have worked for it. So just give Mike a call at (704) 560-1573. 704560 1573. You can also go online to Money Matters with mike.com. And you know either of those ways to get in touch with Mike. He'll be glad to help you out and get you started along the road to a comprehensive plan for you. And you know, Mike, this really kind of brings into focus. I feel like people, a lot of folks, you know, I'm a kind of a DIY kind of a guy, right? Like, I like to if if something breaks in the house and I can fix it, I want to fix it myself rather than call, you know, the plumber, the electrician, the flooring guy, the you know, whoever.

Speaker4:
Right. So I've done a lot of that in, in my day. I get that from my dad. But what people might not and that might be great. You know, for people who are listening to the show today, that might be something that they do as well. But there are a few reasons here why you might not want to have that attitude when it comes to your financial life and your financial planning, because there are a few things that professionals like Mike Zeno, by the way, um, can add, can add the value to your financial plan and to your financial future to add value to to you. Um, by doing a few things. And one of that, one of those things rather is providing some objectivity. Right. That those objective insights because, you know, you're not emotionally invested here. Um, you know, Mike, you give guidance based on what you see. You know, taking a look from the outside in.

Speaker3:
Yes. I mean, the bottom line is that finances can be emotional, but professional planners, they provide objective, fact based advice, especially helpful when markets are in fluctuation or when you're faced with tough financial decisions. We are able to tailor strategies for very unique goals because every single person that I meet with, their financial needs are different, and we're able to professionally customize a plan to cover goals, from estate planning to minimizing taxes to optimizing retirement accounts, and then make regular adjustments as life changes, right? Financial plans should not be static. Set it and forget it plans. They should change with life events. Whether you are getting married, whether you lost a loved one and they left you an inheritance. Whether you start a business, a good financial professional can help adjust the plan and make provide strategies for each of those milestones. Okay, there's a long term payoff working with a professional. All right. 87% of clients who do work with a financial professional reported feeling financially secure, with similar high percentages, reporting better mental health and increased family satisfaction. So all of the other emotions that go along with preparing for retirement, they saw a bump in productivity just from not having to worry about their financial future. Matt.

Speaker4:
Yeah. That it just takes a lot off of the table as far as, you know, having to, you know, spend that energy in, in focusing on your own financial future, you really kind of leave it up kind of to the professionals here. In other words, like if, if plumbing and and, you know, fixing lights and all that is not your thing. If performing brain surgery is not your thing and you need brain surgery, go to the brain surgeon. Um, don't try to DIY that. Don't try to DIY your finances either.

Speaker3:
No, I mean, there are other DIY drawbacks, right? Financial professionals provide a level of guidance that is hard to replicate independently, so without professional help, you could miss out on tax saving strategies. You could underutilize useful retirement tools you could take on risk that ultimately does not align with your needs, your goals, your objectives, your overall lifestyle. So I mean, the statistics speak volume.

Speaker4:
That's absolutely right. You know, working with a financial pro can really help you out in so many ways. There are so many benefits here. And you know, one of those first statistics fpsb.org did a survey, um, that, you know, trusting pros is beneficial here. Almost all clients trust their financial planner to act in their best interests. And, you know, trust really is crucial. I think, Mike, in creating that peace of mind and especially like we talked about earlier during periods of market volatility. Right. It's got to be you've got to have trust in your financial pro at that point.

Speaker3:
Yeah you do I mean the quality of life enhancement I mean we realize that financial planning is not just about money.

Speaker4:
And then also, you know, financial confidence and resilience, 73% of people with a financial professional feel resilient enough to handle unexpected costs. And that really is vital to for for retirees who face costs, like we've talked about previously on the show, like the rising cost of healthcare, unexpected home repairs. Like like I like to DIY sometimes, but you know, sometimes those are above my pay grade. And I got a call in the pros at that point. And so if you if that kind of thing happens to you as it is inevitably bound to do because things break, you know, you got to be prepared and people who have a financial pro feel more prepared.

Speaker3:
Yeah, no doubt they are also better positioned to save for retirement. They're better positioned to reduce debt as they are guided in building. Building consistent and achievable goals. And you know what? Income does not matter. Those with an income under $60,000 a year who have a financial professional in, you know, in their back pocket, like on their team, they still report improved family life, better social connections, and greater job satisfaction compared to those who do not have a financial plan. So if financial planning sounds too complex to tackle alone. Let me help you simplify it. Just simply reach out and call 704 5601573, or go visit us on the web at Money Matters with mike.com. You can set up a complimentary meeting with me, and you can learn how I can make planning feel extremely manageable and rewarding for your financial future.

Speaker4:
Yeah, and it can be very rewarding. As we've talked about, you know, future. You will thank you for that. You know, you want them to future you to kiss you, not kick you. And that's a good way to do it is have a financial pro like Mike Zeno on your side. Once again money matters with mike.com is the website. And just as important, Mike, as it is to have a financial pro on your side, it's important as well to be open and honest and transparent in your financial situation With your spouse or your partner, right? I mean, this is something that I'm sure you see all the time because a lot of times one spouse will do all the, oh, he handles the money, or oh, she handles the money. And the other spouse kind of is is in the dark there.

Speaker3:
Yeah. The couples, no matter who is significant in your life, right. Should aim to discuss those financial basics, including every single one of your accounts, all your investment strategies, and where to locate important documents. Okay. Periodic reviews for both of you that both partners can can kind of look at and discuss just helps each of the partners feel very confident, simply because there's a vulnerability that occurs when one spouse handles all of the finances. Imagine that spouse passes away unexpectedly. The surviving spouse is going to feel overwhelmed when they are left to manage everything alone, that they have no idea even where to start. So not having a clear picture of your financial accounts, your investments, and your monthly budgets can lead to very hasty decisions and financial mistakes. So we have some planning tips for couples. And number one is to create a financial binder. Keep all of your stuff in one place that is locked up and secured, and that should include account numbers, passwords, key contacts, and a roadmap of where assets are held because a professional can assist in organizing those essentials so that anybody that's left behind knows where to start.

Speaker4:
Matt. Yeah, and knowing where to start obviously is a great, great thing. And, you know, if you have all of that in one place, you've communicated where that is. That's fantastic. And also, you know, as you were sort of mentioning a minute ago, Mike, number two here is scheduling financial reviews with a pro and make that a thing that you do together?

Speaker3:
Yes. I mean, and so while you as a couple should probably review your finances quarterly, at a minimum, you both, as a couple should establish a annual check in, whether that's in person or whether that's virtual or on a phone call that both partners in the arrangement, okay, are going to both attend and stay informed. And that also gives a chance for each of you to ask questions and clarify anything that you might have a need for more information about.

Speaker4:
And then also, you know, I love the way that this that we put this setting up a financial date night. Um, you know, I mean, it's not exactly as, uh, maybe as enticing as it sounds like, you know, going to a fancy Italian restaurant or something like that, but, you know, a financial date night is very important as well.

Speaker3:
You can dim the lights, you can throw on a couple candles, and you can pour yourself a, you know, a bottle of wine if you need to, but, you know, make finances less daunting by setting aside time each and every single month for both of you to review your accounts, to review your savings goals and your investments in a relaxed environment and talk about the future, you'll be amazed at what that does for your relationship.

Speaker4:
Yeah, and you got to have a backup plan too, right? A plan B that's actually number four. Make sure that your financial plan B is documented, that it's in writing.

Speaker3:
Yeah. Outlining your backup plans for income for for budgeting or spending money as well as investments. If one partner becomes unable to manage the finances. Okay. Not having a plan B is planning to fail for that person who is left behind.

Speaker4:
Yeah, 100%. And then of course, you got to list those key contacts. You've got to have contacts in one place again where everybody knows exactly where they are.

Speaker3:
Also have a financial power of attorney well before one is needed, and that will give that surviving spouse the authority to go into each and every single one of those accounts if, God forbid, they're not actually listed on the account.

Speaker4:
Yeah, absolutely. Right. And Mike, just a couple of minutes here left in the show. But one thing that I did want to kind of get to is, um, going, you know, looking at the interest rate kind of situation here because the fed is lowering interest rates. Obviously, we just had the election not long ago fed in the meantime, lowering interest rates as we head toward a new year. So the question is for our listeners, I know, how does that apply and affect people who are planning for retirement?

Speaker3:
Yeah. I mean, no matter what the fed does with the interest rate, whether it goes up or goes down, it absolutely can affect an overall retirement plan. All right. When the Fed's lowering of interest rates, while that might stimulate the economy it also compresses As yields on safer investments, potentially pushing retirement investors to reconsider their portfolio strategy. It's a balancing act between seeking higher returns and managing increased risks, much like deciding if you should keep dancing at a party after the DJ announces the last call, right? Sometimes it's just better to stay on the dance floor and switch to a slow song so you know, if you have any questions about any of the things that we've talked about. If financial planning to you seems a little bit daunting. Okay. And like, it could be a problem. Let me help. Just give me a call. (704) 560-1573 I'm here to make sure that both you and your spouse feel comfortable, safe, and secure no matter what the future holds.

Speaker4:
And that is that number once again. 704560 1573. The website Money Matters with Dot com. Well Mike that is going to do it. As I look at the clock on the wall here, I really do appreciate, though, your knowledge and wisdom and everything that you bring to the table each and every week. And we'll do it again next time.

Speaker3:
Matt, thanks for everything you bring, but most importantly, thanks to each and every single one of our listeners. I really hope you got something out of this show. And if you did, please share it with your friends, your co-workers, your family, your loved ones. We don't want them making mistakes either. And whatever you're doing this Thanksgiving week, I hope you enjoy it to its fullest extent. Be thankful for everything you have. It could be a lot worse. Again, give thanks. Appreciate you each and every single week for listening in 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.

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