Don’t Worry, Retire Happy! Practical Tips for Pre-Retirees & Seniors

5.3.24: Audio automatically transcribed by Sonix

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

Speaker1:
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Speaker2:
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.

Speaker1:
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, what's up, what's up? It's Mike Zeno coming to you casual from Fort Mill, South Carolina. Happy Saturday people. What a great time to be alive in these United States of America. Money matters with Mike is a show designed to arm you with information and give you plenty of meat on the bone to chew on each and every week. And today we are absolutely bringing the heat again. On today's show, we're going to teach you how to build a stable foundation for retirement with a pension like income. And 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?

Speaker2:
I'm doing great, Mike. I'm loving the casual look. For those of you listening on the radio or listening to the podcast version. Mike always is dressed very nicely in a golf shirt, you know, and looking great. It's got the baseball cap on. He's got the t shirt on today. Uh, just. And the only reason is because it's been a really busy day.

Speaker3:
It has been a super busy day. In fact, I've got to fly, um, uh, to to Saginaw, Michigan to go speak with the Department of Veterans Affairs and let them know everything that we do for veterans and for federal employees. So pretty excited for that opportunity. So today's a travel day for me.

Speaker2:
Awesome. So great. Great stuff there. And uh, safe travels of course, as well uh, for that trip. But yeah. No, I'm I'm doing great. I know you are as well, because it's, uh, it's a good kind of busy that you've had, uh, this week with, uh, all that's been going on there and, uh, the weather's warming up, and so we are in for a great weekend here as well. Now, I got to say thank you, thank you, thank you to everyone who is listening, whether you are listening on the radio, on WRI or you're listening via the podcast, maybe you're watching our YouTube channel or checking us out on Facebook. We're everywhere. And if you can't find Mike Zeno, you're just not looking hard enough, right?

Speaker3:
That that is true. And, you know, you know, you make a point there that if you ever want to get in contact with me, please do. Whether it's via phone (700) 456-0157 three, going to the website and filling out the contact us form at, uh, Money Matters with mike.com or across any of the socials. We love to meet with potential customers and clients just to show how we can help you reach your financial goals, and we can help you with retirement planning, whether that you know, including risk management, estate planning, and just a whole lot more. So. Building sound financial plans is what we do best for our listeners.

Speaker2:
And that's what we're going to talk about here on the show today as well. Got a jam packed one full of a lot of great info here for you. So you're going to want to stick around for this entire hour, folks. So here's what we're going to talk about. Actually, you know, you may have a ticking retirement tax bomb and not even really know it. Um, we're going to talk about that and how to how to defuse it. Which wire to cut on that. Uh, you know, if you've ever seen the, like, the spy movies and stuff, those action films and everything. Okay, why is it the red wire, the yellow wire, the green wire? We're going to tell you which of the wires to cut here to defuse. That retirement tax bomb. We're also going to do a lot of talk, as you said here at the top, Mike, about pensions. Where did the pensions go? You know, Americans want pensions, but they've generally gone the way of the dinosaur. And we're going to talk about them, how reliable income in retirement is essential for you and how pensions provide that, and why pensions provide security for you for the rest of your life. And you know how you can kind of battle the fact that the pensions have gone the way of the dinosaur by creating your own, so putting the power back in your hands. And then also if you want to live to 100, which more and more Americans do these days, and it's becoming more of a reality for people as we're all living longer. Um, we're going to discuss how much it's going to cost if you live that long, potentially, at least in today's dollars. So stick around for that discussion and much, much more. First of all, though, let's get some inspiration for our discussions today. And we'll do that with our quote of the week.

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

Speaker2:
This week's quote comes from someone who used to be the state treasurer in the state of Ohio, which is a wonderful place that I've spent several, uh, several weeks of my life, several months of my life, probably at this point, at least up in the Cleveland area. And, uh, a lot of friends up there. So, hi. If you've downloaded the podcast and you're listening in the Cleveland area, hello to you. Um, but this is a quote from Josh Mandel, who used to be in office there, and he said this once, quote, I believe when hardworking citizens have earned their pension, it's wrong for Washington bureaucrats and politicians to take their pensions away. What say you, Mike? Zeno?

Speaker3:
You know, today's meat on the bone is going to be brief. I agree, Josh, that is it's criminal for the Washington bureaucrats and politicians to take your pensions away. So, you know, 100% agree with your opinion. There you go.

Speaker2:
Very short meat on the bone. But it didn't have to be long because, you know, it's it's just, you know, short, sweet and to the point, uh, this time around, that's all you need.

Speaker3:
And if you don't like the way that Washington or any of your elected officials are passing, you know, reform and passing regulations and legislator, guess what? You can affect change by voting. So get out and vote. This is an election year, people, and it's more important than ever.

Speaker2:
Yeah, absolutely. Get involved. Vote. Find out where your precincts are. Make sure you're registered. Do all the things uh and put in the the effort. It's not even a lot of effort that you have to put in. And it is, uh, I think not only a right, it's an obligation that we have as Americans to go out and make our voices heard at the ballot box. Definitely. So the first thing that we're going to address today, Mike, in the show, uh, that we sort of previewed a minute ago, is that retirement ticking tax bomb. I feel like I need like mission Impossible music here or something as we try to diffuse.

Speaker3:
Uh, the, uh.

Speaker2:
Uh, is it, uh, well, you know, there is, I believe, for a lot of people who are out there listening, a retirement tax bomb just waiting for them in retirement, they don't even realize it. Right? I mean, what what is the the issue with that? And why do why do we say, you know, kind of use that terminology of a tax bomb.

Speaker3:
Yeah. Because I mean, we find that too often most people who have access to 401 or 403 BS or some other type of tax deferred retirement account in their workplace, okay, uh, or even in IRAs, individual retirement agreements. You know, while we're happy to see the fact that they are actually saving money for retirement, what definitely concerns us is the amount of taxes that you're going to pay once you finally withdraw the money that you want to spend in retirement. And so, you know, a lot of my speaking engagements, I ask everybody just to think of what their balance is, and I give them about 10s. I'm like, everybody got a picture of what your balance is, and everybody's nodding and I'm like, guess what? And they're like, what? And I'm like, it's not all yours. You have a partner in your retirement. And he's very greedy partner named Uncle Sam. And people you know might come back. But Mike, I'm going to be in a lower tax bracket, you know, when I retire, right? And I'm like, well, potentially, if number one, you have planned to be in a lower tax bracket and more importantly, number two, as long as the government doesn't change the rules on us again, which they have had many precedents in the past where they like to change the effective tax rates. So, you know, there are a lot of folks out there that are in for a big shock when that time, that ticking tax time bomb explodes. On them in retirement.

Speaker2:
Yeah. That those tax deferred that that tax deferred bucket is often too big in the retirees and pre-retirees that we see. So you know any time you have to withdraw whether it's RMDs, those required minimum distributions or elsewhere in your retirement years, then you're going to be hit with that retirement tax bomb. So give us an example here, Mike, maybe of someone who either you have have worked with or someone that you know you've encountered along the way here that has had this retirement tax bomb kind of facing them as they get ready to leave the workforce.

Speaker3:
Yeah. I'm actually going to give you two examples. Okay. The first one, you just mentioned RMDs. And a lot of our listeners may not know what we're even talking about when we mention RMDs. And the acronym stands for required minimum distributions. And so let's just say that you're fortunate enough that you've done well within your employer sponsored plan, but you've also done well with investing and saving on the outside of those plans. And you don't need to touch the money inside of your 401 K. Well, now, as it stands, if you have not yet turned 73 years old, uh, and eventually that's going to be phased out to 75 years old by the year 2033. Uncle Sam is going to come knocking at your door and asking you to take minimum distributions. He's not going to ask. He's going to require you to take minimum distributions just so he can collect the tax base. Isn't that nice of your uncle? Yeah, well, that's one example. And then I think a much more appropriate example is let's just say that you have made right, you've crossed the threshold into retirement, and now you and your spouse are both in your 60s, and you decide that it is time to go on that bucket list vacation.

Speaker3:
Maybe it's a trip to Europe. It could be a mediterranean or even worldwide cruise, or even a great American road trip to visit some of our national parks. Because we Lord, we have a lot of them here in the United States. So let's say that this vacation is now going to cost take around three weeks to complete and your budget is $10,000. So here's the rip when you go to withdraw your $10,000. Okay. Um, from your tax deferred retirement account, you have to now pay the taxes. And so for this example, let's just say that your federal tax rate is 24%. So with 24% going to Uncle Sam, you only have $7,600 left for your trip because you've had to spend $2,400 in taxes. So if you need actually spend ten grand to budget for the trip, you'll need to withdraw $13,100 just to cover both the expenses and your bill to Uncle Sam.

Speaker2:
Wow. And that is what we mean by waiting for that retirement tax bomb to just go off. And you might not even see it coming, as this example shows you. So then, Mike, what is the solution here? What what would you tell folks to do if somebody came in to your office or gave you a call at (704) 560-1573 and had a situation like that?

Speaker3:
Yeah. I think it's critically important for folks to start saving when they're at least in their 40s. Okay, earlier if possible. And if you haven't started by the time you're in your 50s or 60s, it's not too late. But I love to see folks starting to generate what are known as tax free investments and implement also what is known as a Roth conversion strategy. And so you'll no longer have required minimum distributions on that portion of your portfolio. And then when you're in retirement and want to take that bucket list trip, you can withdraw the money 100% tax free. Okay. And so meanwhile, the money that remains invested in those types of accounts, okay, the tax free investment accounts and the Roth conversion accounts, that money is going to continue to grow tax free over time, taking advantage of compound interest. And if you should choose to leave your Roth to a beneficiary after you pass away, guess what, folks? That money will be passed down 100% tax free. So as long as you have a plan in place to kick Uncle Sam out of your retirement plan, okay, then that is going to be much better for you down the road and ultimately much better for any money that you leave to your heirs.

Speaker2:
The best kind of money is free money. The second best kind of money is tax free money, and that is what you can achieve through using some of those strategies, perhaps even others, if they are correct for you and your particular situation. And that is really what it boils down to, Mike. Right is what's right for an individual in their particular situation because it differs for everybody.

Speaker3:
It absolutely differs for each and every single person. Because guess what? We're all unique and therefore all have unique financial circumstances. But if you are interested in maximizing your retirement savings and learning what a Roth could do for you, then just get in contact with me at Money Matters with mike.com or by calling 704 5601573. And as always, our consultations are 100% complimentary, which means free folks, there's absolutely no obligation to work with us whatsoever. We just want to help every single one of our listeners, because we truly believe that a rising tide lifts all boats.

Speaker2:
Say three is good. And, uh, that's, uh, kind of what we like to specialize in around here. Sounds like, especially on this week's edition of the show. Well, um, here is kind of a disheartening, uh, number that we're going to talk about next. Mike. And this comes from a study out of AARP. They actually, uh, just published this, I believe, this past week about 1 in 4 US adults ages 50 and older who haven't retired just yet. So they're still working. They say that 1 in 4 of them don't expect that they're ever going to retire. Boy, that's disheartening.

Speaker3:
You know, it's disheartening if they wanted to retire but now are unable to because of the rising cost of living and the diminishing value of the dollar and so on and so forth. Not as disheartening if they actually enjoy what they do and, you know, want to work until they die. I do find that most people, including myself, like I'm one of the people that I don't necessarily plan on retiring because I love what I do and honestly haven't worked a day in the past 15 years. Um, but I'm going to slow down a little bit, right? So I'm not, uh, well, I'm definitely not going to work as hard as I work now, but I don't think I'll ever stop helping people. But, you know, according to the survey, about one quarter of us adults aged 50 and older who are not yet retired say they expect to never retire. And then 70% of those folks are concerned about prices, prices, not prices, but prices rising faster than their income. And that's again, according to the AARP study.

Speaker2:
Yeah. And about 1 in 4 say that they have no retirement savings at all. Um, and this was yeah, this was released this previous week. And it shows that the aging population in America is worrying more and more about how to make ends meet in retirement. And that is due to a couple of things that you just mentioned there, Mike, especially the rising cost. And that, of course, means that the dollar doesn't get you as far as it used to.

Speaker3:
Yeah, I mean, this is the reason that those people don't ever plan on retiring. It's because they can't because they haven't planned adequately enough to save for retirement. So, you know, and I don't mean to sound, you know, like a jerk or, you know, just just be a naysayer or a, you know, a doomsday kind of person. But look, if you don't take action, if you find yourself doing the same thing over and over and expecting different results, um, that's the very definition of insanity, where if you keep making excuses and find every reason why you're not saving, well, then you're going to be one of those people. Like there's no ifs, ands, or buts about it. You are going to work not because you want to, but because you have to. I don't want that for you, because most people do want to be able to enjoy their golden years, spend some time with friends, with family, heck, spend it by themselves in the mountains or on a lake, or, you know, on a beach, wherever you like to do it. But you have to take action. It's not just going to happen for you.

Speaker2:
Yeah. That's right. I mean, you and you might say, okay, well, I now, you know, I'm, you know, feeling the pressure, feeling the heat here. I'm going to make this decision and I'm going to, you know, actually come up with a plan and all of this. But and those are great. Those are great intentions. But that's all they are intentions. Until you actually take action and and do something about it. And, you know, we believe that doing something about it means if you're in that situation, especially getting in touch with a licensed financial professional like Mr. Mike Zeno, you can do that at Money Matters with Mike comm or by calling (704) 560-1573. And, uh, it's an easy process there, Mike, but it can mean a lot of difference in people's lives.

Speaker3:
You know, it absolutely can. I mean, just just having a feeling of knowing where you're going and knowing how to get there gives people an enormous amount of confidence and peace of mind. And we've said it before, and I'll continue to say it, that's something you just absolutely cannot put a piece or excuse me, a price tag on. We're talking about peace of mind.

Speaker2:
Yeah. That's right. It gives you that sort of financial GPS to know where you're going and how to get there. Turn by turn along the way and you know, you will see those turns coming because you've got that plan in place so that no matter what happens, you'll be all set. And of course, folks, as we were saying earlier, this is a big election year as well. You can make your voice heard. We encourage you to do that. Um, and, you know, I mean, this data that we're talking about how, you know, a quarter of Pre-retirees don't think they're ever going to retire, and also a quarter probably about the same people in that survey say they don't have any savings for retirement at all. These numbers are going to matter this year. I mean, it's a big election, presidential election this year coming up.

Speaker3:
It's huge. Whether you're voting for Biden or whether you're voting for, you know, rival Donald Trump. Each of the sides is trying to win support from those older Americans who traditionally do turn out in high numbers. All right. And they're trying to win support with their policy proposals. Right. So a looming issue that will affect American's ability to retire, period. Okay. Is the financial health of both Social Security and Medicare. And the latest annual report from the program's trustees says the financial safety nets for millions of older Americans will run short alright, of money. That means they're going to be bankrupt and won't be able to pay the full benefits within the next, it says decade, but nine years right? In 2033 is when it's going to run short. And so we're not talking about, you know, just small programs either Medicare, which is the government sponsored health insurance coverage plan that covers 65 million older people, as well as disabled people will officially be unable to pay benefits for inpatient hospital visits, as well as nursing home stays by the year 2031. Well, that's only seven years, okay. According to this report. Um, and then just two years later, Social Security will not have enough cash on hand to pay out full benefits to its 66 million retirees.

Speaker3:
So, guys, girls, it is time to get serious in 2024. All right? This is an election year, and there's already so much uncertainty in the world that affects retirees. As three retirees, please do not wait until you're ready to retire to start planning. Okay. I have, uh, an assistant. His name is Jonathan. And, you know, he said, you know, this this week. He's had so many conversations with people that say, you know, I'll just wait. I'm not ready to retire yet. And I'm like, Jonathan, let's ask the folks, you know, when would you like this information? When you've already made the bed and you're retired, or would you have liked to have had it 3 to 5 years or so before retirement, so that we could put a plan in place that enacts some change, tweaks some things, and so that by the time you actually do retire, your retirement situation is much better. And he goes that Mike makes a lot more sense. I said, you think?

Speaker2:
Yes, as a matter of fact, the time is now to start planning. You know, you can't. You can never start too early, but if you wait too long, it can be too late to really make as big of a difference, especially as you know you have when you're younger. Because time is your friend, when it's, you know, still on your side and you have more time left, some, some, you know, longevity to look forward to, some time to plan and save and invest and all of the things. So if you need help in that realm, folks go to Money Matters with mike.com or call 704560157. Three. Now, this is some data that really kind of backs up what we've been talking about here, Mike. There's a study from Northwestern Mutual that shows really why you should be working with a financial professional.

Speaker3:
Yeah. So this study from Northwestern Mutual, um, it was a study about the attitudes and the behaviors of American adults toward money. And it actually found out that 71% of people surveyed felt they actually felt like their financial plan needed improvement, but only 29% actually worked with a financial professional. So where is the the disconnect there? That's my question. If 71% of them feel like their financial planning needs some kind of help, um, but yet only 29% hired a professional that does this every single day. Why has that other percentage just not taken action? And so, you know, I can't answer that question, right? You've all heard the phrase you can lead a horse to water, but you can't make them drink. Um, if if you need help, like, only you can seek the help that you need. And research suggests that people who work with a financial professional feel more at ease about their finances, and could end up with about 15% more money to spend during their golden years in retirement. So this was from Northwestern Mutual, but it was just this morning I was reading in Bloomberg the exact same thing from a different source. Right? So obviously the people that have a financial advisor, all right, or any financial professional for that matter, do much better than people without.

Speaker2:
Yeah, exactly. And some people, you know, are are intimidated by, uh, financial professionals. They say, you know, it's okay. They're going to be talking above my head and saying things that I don't understand and all of that, or I don't have enough money to to work with somebody. It's going to cost too much. All of the things, um, but those, you know, in the end, especially when you see results like that, that, that are borne out in data and actual data in different surveys and studies and all of the above, you know, it makes that excuse or those excuses, at least in my mind, easier to get over because, you know, you'll come out much better on the other side.

Speaker3:
And guys and girls, if you're if you're afraid of meeting with with somebody like me, I wish you could go to YouTube and see me. Right now I'm in a ball cap and a t shirt. Um, and when I talk to folks, man, I can talk to people in their own home. I can talk to people at a coffee shop. You can come to my office. We can do a virtual meeting. Like, it is as easy to have a conversation with me as it is with your best friend. So, um, I think another key point is that you want to partner with an advisor whose strategies align with what you're trying to accomplish, because everybody has their idea of risk and how much they should tolerate. And your overall risk tolerance for your hard earned money is a personal preference. Okay. But risk management strategies, those can vary widely among different financial professionals. And some they prefer really aggressive stock investments, while others may encourage more safe investments that can pay you pension like income. And so you want to look for a professional whose risk tolerance and strategies, um, align with what it is that you are actually trying to accomplish.

Speaker2:
Yeah, absolutely. Right that you agree that you're on the same page and that someone isn't trying to, you know, push you into doing something that might be, um, you know, too uncomfortable for you. I mean, of course we all need to be pushed out of our comfort zones a little bit in life. But if you're being asked to do something that just makes you really uncomfortable, probably a bad sign.

Speaker3:
Yeah, it is a good sign. Go with your gut. Look, I tell people all the time, you know, uh, does this make sense? If it or ask them, I should say, does this make sense? And if I see any hesitancy, then I'll go back and I'll revisit things. And I do have an ability to break down very complex financial strategy into plain Old English. And the last thing that I will ever say is, look, if you have 1% doubt, don't do it, okay? Because the last thing I want you to do is wake up at 2:00 in the morning going, oh my gosh, what did I do with my, you know, whatever, whether it's your entire life savings or a significant portion of your portfolio, you don't need that stress. And I don't want that for you. Trust me, I speak, I sleep very well each and every night.

Speaker2:
And that's what we want for you as well. Listening to the show is to be able to sleep well at night. Uh, you know, after working with Mike Zeno, coming up with this plan and getting that into action, uh, because that is what is going to make a huge, huge difference in your life and for your retirement years. You. Got no obligation consultation provided absolutely free of any cost to you by going to Money matters with Mic.com. Money matters with Mic.com. You can call Mike as well that number 704 5601573. Again 704560 1573. Well, you know, Mike, when we talk about the way that people plan and save and do all of the things for retirement and invest for retirement used to be that there was this three legged stool that we would talk about, right? Where the first leg really was pensions, the other leg was any personal investments or savings, and the other leg was Social Security. Well, correct that we already talked about kind of how wobbly the Social Security one is, at least looking like it's going to become within the next nine years, especially unless something gets done. But that pension leg boy, it's it's basically just been been cut off.

Speaker3:
Yeah. Where did it go people might ask. In fact, you know, I think we've stated on our show before that only 13.5% of companies out there actually offer a pension. So unless you're working for a state, local or federal type government position where they do offer you a pension, um, chances are you don't have one. And so the Congressional Research Service found that those are called defined contribution plans. Uh, like 401 S or 403 B that rely on employee contributions and are at risk in the market. Those began to overtake the defined benefit plans, which are better known as pensions, all the way back in the mid 1980s. And so just over half of baby boomer population has $250,000 or less in assets, potentially leading to a depleted savings and increased dependence on Social Security. And folks, that's a problem because the future of Social Security, as uncertain as it is and its funds may only sustain benefits barely through the next decade. Um, that's a big issue.

Speaker2:
It really is. And the dependence on Social Security needs to be, as we say often here, just the cherry on top, just the gravy, just, you know, whatever you want to whatever food metaphor you want to use. Um, that's just making me hungry. So I'm going to move on. But, uh. Right. The sprinkles. What, what whatever you like as your favorite topping. That's what you want Social Security to be. You want a plan in place that's going to provide you with income for life no matter what. Something that you can count on. And then Social Security ends up being just a bonus that you get every month when that direct deposit comes through or the check arrives, whatever the case may be, and you don't want it to be something that you rely on solely, uh, for your income in retirement.

Speaker3:
That is true. And even so, I do know that many people are worried about the future cuts to Social Security and how it might affect their individual retirement. And so for those people who are concerned about Social Security, I want to provide you with a Social Security maximization plan that is customized with you. And if you're married, your spouse's benefit information in mind, at least we can do that for you to give you that piece of your puzzle, um, all laid out in a simple plan on how to maximize your benefits.

Speaker2:
Yeah, absolutely. Right. And you can do that once again, folks, go just go to Money Matters with mike.com. That's money Matters with mike.com. Or you can call Mike at (704) 560-1573. And there are more stats here that we want to share with you about people's views on pensions. Um, there was a study from the National Institute on Retirement Security that showed that a large majority of this was actually a study of women in America, a large majority of American women, 82%. I mean, that is a huge majority say that all workers should have a pension so that they can be independent in retirement. Um, that's that's a huge number. And, I mean, it comes at a time, I think, where the, the country seems so polarized on a lot of different issues. You can't even get people to agree that the sky is blue on any given day. So that tells you something. Yeah.

Speaker3:
You know, that doesn't really, uh, shock me though. I mean, women in general more a little bit more so than men. And I think all of our listeners will agree. They like safety, they like security. They're the nest builders, right. And they want to make sure that they are safe, warm and secure. While traditionally men are the risk takers. Now, obviously there's always the exception to that rule. But I think that. 75% of those surveys agree that those people who actually have pensions are much more likely to have a secure retirement. And so, um, you know, I think that just that just goes to bolster the fact that those with pensions, uh, tend to do much better than those with without in retirement in their golden years.

Speaker2:
Yeah. And a lot of people say as well, you know, that there are several reasons that retirements only getting harder. Uh, for them, 76% say retirement is only getting harder. And they blame inflation, mostly rising health care costs as well. Lack of pensions. Uh, hahaha. And debt, which that, you know, consumer debt. Every time we see a report, it seems like you're lately on consumer debt. Mike. That's a number that just keeps growing and growing and growing. And people are holding that debt for a longer period of time.

Speaker3:
They are I mean, it's the consumer debt is at the highest level it has ever been in the history of the United States of America. And folks, that's a problem, okay? If you're carrying high balances of revolving debt. And what am I talking about? I'm talking about your high interest credit cards. I'm talking about your high interest car loans. I'm talking about your high interest mortgages even. Right. Uh, personal loans, all of these forms of revolving debt, um, are doing nothing but anchoring you down. They're tying and weighting you down. And a lot of folks find it very, very difficult to get out of that downward spiral.

Speaker2:
Yeah, that is very true because it can just bury you. Uh, and that's the last thing that we want for you. And so I know that's the last thing that you want for yourself as a listener to this show. Um, and this survey, I think, bears out as well what we have been talking about, that something needs to be done to safeguard Social Security. Right. And almost 9 in 10 of the women surveyed here say that it is important for the next administration, whoever might be in the white House, for that administration to work together with Congress and develop a Social Security solution, uh, to really shore up that program and make sure that it's around for generations to come, like it has been for, you know, generations past. Because here's the thing. We've paid into it. Um, you know, we better we better be getting it when it comes our time to leave the workforce.

Speaker3:
That's right. 6.2% of every paycheck you've ever earned is gone into the Social Security call. And, uh, the fact that you might not be able to get as much as you put in, uh, folks, that's a travesty. So, again, please exercise your vote, uh, this coming November. But, you know, I'm going to ask a simple question to my listeners. Did you know that you can actually reduce the risk inside of your portfolio and establish what is known as a personal pension that creates a lifetime income stream that you can never outlive? And you can do both of those by using one, uh, simple strategy. Okay. If you've got questions, give me a call. This week, 704 5601573. Or please go to the web at Money Matters with Mike comm. To hit the the Contact Us page and schedule your complimentary consultation as well as your 401 K or IRA review.

Speaker2:
That is right and that is an easy thing to do. Uh, just, uh, go to the web there. As Mike mentioned, money Matters with mike.com or call 704 5601573. And you know, Mike, I feel like we're, we're, uh, being a little bit doom and gloom here with, uh, some of these survey numbers that we have, uh, going through. But we're, you know, we're kind of spelling it out for people about how important it is to have a plan in place and, and a comprehensive plan for retirement for the rest of your life and for what is going to happen when you, um, you know, exit off of this planet and, uh, and, you know, you have your loved ones left behind, what is going to happen to those belongings, to those investments, to all of the things. And that involves an estate plan. Now, here is the rub, though. Another survey from Ameriprise says that, you know, majority of vast majority of us couples don't really have an estate plan at all. Um, and that's and I say vast majority is actually a slim majority, but it is the majority don't have an estate plan, so most people don't have one. But it is crucial that you have one in place, right?

Speaker3:
It is. And Matt said, you know, we're not trying to be all doom and gloom. Look, folks, I'm not trying to be your friend on this show. I'd love to be your friend. But what I would much rather do is shake you a little bit, rattle your cage a little bit, and get you to start looking out for yourself, right? Because I have a saying, if it's to be, it's up to me. Well, in this case, it's up to you to take. Charge of your financial future. And when we talk about the fact that, you know, in married situations, 95% of the couples agree that they are honest and they are transparent with each other when it comes to their finances, and 91% say they share the exact same financial values. Okay, but only half. Barely over half. 52% said that they actually have yet to set up an estate plan. So that is not shocking to me. Um, because in other in order to set up an estate plan, it's just like setting up a financial plan. You have to pick up a phone and contact a professional that can help you do that. So don't be intimidated by the concept of putting a financial plan together or putting an estate plan together. It's about, you know, making decisions about what you want to happen to you, uh, to your belongings, to your money after you die, or in the event that you're incapacitated and cannot make health related or financial decisions on your own. So, I mean, that's what it's about. And it's it's actually super simple to, to enact and to put into place. So you just gotta do it. So stop putting it off, especially if you're in your 50s or beyond. Okay. And get it done.

Speaker2:
Yeah. And, you know, I mean, a lot of times my people might think, and, you know, this is something that we've talked about, I think before as well, when we talk about, say things like life insurance because people don't like to think about the end of end of life and those types of issues. It can be a difficult thing to discuss because it's not a happy subject. Um, but it's a very, very important thing and it can be a happy subject if you, you know, know that you have the peace of mind of having a plan again in place this time around. Of course, we're talking about an estate plan, but having a plan is a whole lot better than not having one, because you know you're not going to be happy with that situation, and neither are your beneficiaries or your heirs or whomever.

Speaker3:
Yeah, you know, my mom, I'll use her as an example. You know, she was a little reluctant, um, when she was in her 60s, to to even think about the concept of life after her. Right. She didn't want to think about that. And it was it wasn't really until years and years and years of me just kind of quietly dropping seeds as as one of her three sons, um, just quietly dropping these seeds and encouraging her. Hey, have you done this yet? Hey, have you done that? What do you think about this? Oh, I heard about this person who passed away and their kids had absolutely no idea. Right. I had to frame it in several different ways while I was planting those seeds, and then watered them and allowed those seeds to germinate. And it was just this past, uh, I guess, January that we put everything in place. And, you know, after she did that, she just felt so relieved and she felt like a big weight was off of her shoulders. And obviously I helped her through that process and and not saying, yay, Mike, for being a great son. Although I am, uh, because I love mom and I don't know who doesn't love mom, right. So but if you're out there and you're listening to the show and maybe your parents haven't set some things in place yet, just you, you might need to do the same thing to encourage them, because ultimately it will make them feel much better knowing that a plan is actually in place.

Speaker2:
Yeah. Absolutely. Right. And it's also a situation where if you put an estate plan in place, Mike, you'll want to revisit that periodically. It's not just a set it and forget it kind of a thing. You'll want to revisit it at least every probably five years or so or after a big life event. Right. So so some, you know, of those big life events, either it's, you know, something like the birth of a child, the birth of a grandchild, even a divorce, certainly, or the death of someone else, that those types of things are all things that can lead you to be triggered to update that plan. And you need to because you don't want it to be outdated.

Speaker3:
You definitely don't want it to be outdated. So you listed a few other things I mean, I can think of maybe you got an inheritance, or you've acquired a new property, or added another big type of asset to the portfolio, right? All of these things need to be accounted for. And if any of those events were not addressed inside the older plan, that's a sign that your plan needs to be updated. So it's not a set it and forget it. It is an evolving document. And trust me when I say that your children will be very grateful not having to guess what has to happen or who wants what, because it's all spelled out inside of your estate plan documents. So again, I'm just going to encourage each and every single one of our listeners to take charge of your financial and retirement future today and is loyal listeners. We are offering you an opportunity to schedule that complimentary retirement and financial consultation with our expert team. So again, I can preach on the airwaves all I want to, but unless you pick up a phone and give us a call at (704) 560-1573 or contact us on the web at Money Matters with Mike comm. Um, you're just going to keep doing what you've always done.

Speaker1:
If you've got money problems. Mike Zeno has money solutions. You're listening to Money Matters with Mike. Welcome to Nationwide's Peak ten fixed indexed annuity, designed to help provide guaranteed income for life. Peak ten offers protection against market losses, plus protection for a spouse through a joint option and an immediate 10% penalty free withdrawal. Call us now at (700) 456-0157 three. That's (700) 456-0157 three. 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.

Speaker2:
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.

Speaker1:
Want to know where your hard earned money is going. It's time for an inflation demonstration.

Speaker2:
We talked about the the reason that a lot of people are saying, you know, retirement is getting more difficult to achieve a successful retirement anyway is because of inflation. So yes, on this edition of our inflation demonstration, there's more research here that shows rising prices, even though the rate of inflation has come down. Those like big year over year numbers that we saw more than 9% inflation and all of that, those have have tapered. But the prices are still going up and you're still paying a lot more than you were for most things just a few years ago.

Speaker3:
There's no doubt about that. There is still pain in people's purses or if you're a guy in your wallet, or heck, if you don't even carry anything like I do in your pocket. How about that? So, you know, the fact of the matter is, is while they say that the inflation rate has been tamed, I mean, that's the packaged up and nice little tied bow on top package that they want to feed you. Um, but if you really look at the underlying causes and the real statistics that are out there, there is a website called Shadow stats.com, I think that is a is a really huge eye opener to see what the real inflation numbers are. And when we have, you know, nearly six out of ten. Pre-retirees believes that inflation poses the most immediate challenge to their retirement portfolios. And we're just talking about over the next 12 months, okay, we're talking about managing day to day expenses is getting more difficult just due to the rising cost of living we're talking about. Over a quarter of them indicate that they are saving less money for retirement because of inflation.

Speaker3:
And, you know, all over a third, 41% of Pre-retiree investors are avoiding unnecessary expenses just so they can save more money for retirement. So we're talking about a drastic cutback in standard of living is what that is really talking about. Um, investors say that the norm of retiring at 65 is laughable. In no way does that now apply to them. They think they're going to have to work until 7072 or heck, never stop working just to be able to afford to live. And the fact that pre-retiree investors are adjusting their spending and savings habits, all of these are red flags. Why? Well, there's a lack of confidence in our systems, right? The viability of Social Security upon retirement is influencing Pre-retirees to rethink their retirement planning strategies. Now, folks, if any of what I just talked about resonates with you, right now is a great time to meet with a financial professional and start putting a formal plan in place. All right, with time on your side, there is a lot that you can do to improve your own financial future.

Speaker2:
Yeah, we're not magicians here, Mike. Zeno cannot turn back the clock for you. But what he can do is make your future as bright as it can possibly be with a customized retirement plan just for you, based on your individual situation and your scenario, how things are shaking out for you right now. And just make that even better than it ever was going to be in the first place, and give you a little bit or a lot of peace of mind before you call it quits and head into your retirement years. And, you know, a lot of people, we talk about longevity risk, Mike, a lot on the show. And that is the risk of living too long, right. And outliving your money, which, by the way, is the number one fear of retirees even more than death itself, according to several studies that have been done. And a lot of people are living to be the age of 100. I think we talked about maybe last week or week before about how that's one of, if not the fastest growing segments of the population. Uh, it is centenarians. Uh, it is it's crazy. Yeah. And so a lot of people, most of us want to live to be that old. But how in the world much is that going to cost for us to live that long and have such a long retirement?

Speaker3:
Yeah. No doubt. Right. I mean, I want to live to be 100. I'd be the first transplant recipient, um, to, to make it, to become a centenarian. So that is definitely one of my goals. I put that out there, uh, into the universe. I speak it, so therefore it should happen. Right? But, you know, I'm not alone. More than half, 54% say it's their goal to live to 100, according to a new report from Corbridge Financial. Um, which is, you know, another financial services company. But when analyzing the price tag that comes along with living to 100, I mean, those numbers, Matt, they're absolutely staggering.

Speaker2:
Yeah, they really are. I mean. The people say that, um, what it costs to live to 100 here. You know, as a rule of thumb, financial planners have always said that we should expect to spend about 80% of our working income in retirement. So you take whatever it is you've been making on average in the years before retirement, and cut about 20% off of that. Right? So the nation's median household income right now is shy of 75,000. So you might need, if you're a typical family, about 60,000 a year in retirement. And so the average American retires at the age of 62. And so Mike, I'm going to let you do the big reveal here. But if you live to the age of 100, that means 38 years of retirement. So what does that mean about the total cost? Those 60,000 bucks a year add up to what?

Speaker3:
Right. Well, I mean, if you're going to retire at 62 and you have 38 years of retirement at $60,000 each year, and we're not even factoring in inflation, that works out to a retirement budget that you're going to need of $2.3 million, okay, $2.3 million. Now, Social Security income will cover at least some of those costs. Okay. Um, but even so, only 25% of those or, excuse me, 27% of those surveys said that they are confident that they won't outlive their retirement dollars. Two thirds. Two thirds of the folks said that they do fear running out of money more than they fear death itself.

Speaker2:
Yeah, that's, uh, wild numbers there. 2.3 million Social Security. Definitely not going to cover that. Um, so and and here's the question too, Mike. I mean, you know, we talked about, uh, I think the CDC has said that a lot of people are living, you know, longer and the overall age expectancy, even with, uh, Covid took a took a dip, but now is climbing once again. And the number of Americans ages 100 and older is forecast to more than quadruple, uh, by the year 2054. That means 422,000 people, uh, would be over the age of 100. And those are, uh, according to some figures analyzed by Pew Research, some census numbers that they took a look at, no doubt.

Speaker3:
I mean, people are living longer. Heck, the number of centenarians that are alive today is over 100,000. That's nearly triple the number who were over 100 just in the year 1990 alone. Okay. And here's the rip men, okay? 78% of the centenarians that are alive today. Guess what, folks? They're women. Okay. So, uh, you know, I have some ideas about that. Men tend to give up a little bit sooner. Uh, we go to the doctor a lot less than women, and and just women in general have longer life expectancies. But, you know, here's here's what I would strongly advise that you start thinking about. And if you're looking, uh, for another reliable stream of income in retirement, get in contact with me today so that I can show you, actually show you how a personal pension plan can become a key component of your overall retirement plan. Because, again, those with pensions have what the most belief and the most confidence of having to never run out of money.

Speaker2:
And so, Mike, if someone is listening to the show this weekend or whenever they might be listening, if they've downloaded the podcast, if they are listening to the show, what would you say if they had, say, a question like this? Well, Mike, how do I know if I am someone who needs to reach out? Maybe I have a little bit of doubt about my retirement plan or something like that, but how do I really know? What are the signs that I need to look for that I might be someone who needs that portfolio analysis, that 400 1KX ray and that deep dive into their financial situation.

Speaker3:
All right. The first thing is, is if you are consistently saving for retirement, but you're not happy with the rate of return you're receiving, you should probably get a second set of eyes on your portfolio. Um, if you feel that your money is not working as hard as you do for it, then you may need to speak with a financial professional. And here's a big one, right? If you are receiving much, if any, help from your work based retirement plan servicer or HR department, hello ding ding ding ding ding. You may be somebody that could absolutely benefit from speaking to a qualified financial professional. So, you know it's important that you get your 401 K's, your 403 B's, your tsp's. If you're a federal employee working as hard as you do, and we invite you to give me a call just to receive a complimentary review so that we can analyze everything from the fees you are paying, the risks you are taking, and the correlation of your assets. So again, 704 5601573 is the number or reach out over the web or any of the socials 100%.

Speaker2:
And that is so, so easy to do. And Mike, just a couple minutes left here in the show, but I wanted to update the national debt. You know we talk about a Social Security being under pressure. This is the biggest reason really that it is under pressure. And so talk about what the national debt is right now. Mike, where where do we stand today?

Speaker3:
We have crossed the threshold, uh, to $34.7 trillion, which means that between the last couple of weeks and today, the government's debt told another $100 billion that goes on there. And we've now crossed the 34.7. That is a significant red flag, especially for our listeners, because 10,000 baby boomers are retiring each and every single day, which means that the number of workers that are paying into Social Security via payroll taxes has been falling relative to the number of beneficiaries. And what that does is create the imbalance. And that's why Social Security's finances are under pressure. Combined that with the fact that the beneficiary SES that are receiving them are living longer, as we've just discussed. And as a result, without any action from lawmakers that Old Age and Survivors Insurance Trust Fund that supports Social Security is estimated to run dry by 2033. So if you're in that retirement red zone, all right, those are the five years immediately preceding retirement and then the five years immediately in retirement. If that is you, please give me a call so that I can strengthen, help you strengthen your financial plan, because you cannot afford to lose too much money during that ten year time frame, which means that both protection as well as growth is key to your overall success.

Speaker2:
Money matters with Mic.com is the website and the number is 704 5601573 704 5601573. Well, as I look at the clock here, Mike, that is going to do it for this edition of the show. But as always I thank you, sir. I think our listeners as well. And uh, we'll just do it again next week.

Speaker3:
Sounds like a plan with me. Matt, thank you so much for everything you bring to the table. But above all, thank you to each and every single one of our listeners. And whether you're listening live in the Charlotte Metropolitan Statistical Area or anywhere globally, uh, on any of our podcast partners, without you, we don't have a show. So thank you from the bottom of our hearts and whatever you're doing this weekend, we hope that you enjoy it to its fullest extent. And as always, make it a great day.

Speaker1:
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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