Helping You Make Smart Adjustments to Your Retirement Plans

2.24.23: Audio automatically transcribed by Sonix

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

Producer:
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.

Producer:
Welcome to Money Matters with Mike, with your host, Mike Zaino. 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 Zaino.

Mike Zaino:
What's up? What's up? What's up? It's Mike Zaino coming to you from Fort Mill, South Carolina. Happy Saturday, people. What a great day to be alive in these United States of America. Money Matters with Mike is a show designed to arm each and every single one of you with great information. Some meat on the bone that you can chew on each and every single week. And today we are absolutely bringing the heat again. On today's show, we're going to talk about the top concerns of American retirees and how we help people navigate those obstacles during retirement. Today, we have sent our co-host and producer extraordinaire, Matt McClure, out on special assignment. So today I'm being joined by Sam Davis of Retirement Radio. Sam, how are you doing today?

Producer:
Mike I love the energy. I'm doing well. And if I wasn't before, I'm happy now because just hearing that voice, hearing that energy gets me ready to go. So I'm excited to bring a lot of good information to the people over there in South Carolina on the border towns. And man, we got a lot of stuff to talk about today, and I love that energy.

Mike Zaino:
Thank you, sir. I try to bring it each and every single week.

Producer:
Absolutely. So, you know, Mike, it has been a while. I think it's been months since I've appeared on your show. So you know, what's been happening. What have you been talking to the people about and what are we going to talk about today?

Mike Zaino:
Yeah, we just finished our Smart retirement planning series and we talked about a whole lot of different steps. So if anybody out there listening has missed any of each and every single one of those successive episodes, I strongly urge you to go to MoneyMattersWithMike.com and catch up on everything that you have missed because there is so much good information out there. So this year in 2023, we have talked about the 23 retirement cost cutters that's packed with ideas for hanging on to more of your hard earned dollars. So if you haven't gotten your free copy of that, you definitely want to give us a call. (704) 560-1573. Reach out on Facebook by searching Money matters with Mike on there and you can ask for your free copy of that. You know, we talked about the Secure Act 2.0 that just went into effect this January 1st. And all of the changes that came along with the passing of that act, namely the the deferring of RMDs required minimum distributions for those of you who have not yet started taking them, that is now age 73 and eventually will phase all the way out to age 75 in the next ten years. So, you know, we've talked about a lot of good stuff over the past little bit, Sam. And like I said, if anybody has missed that, they they need to go back and tune into each and every single one of those episodes for sure.

Producer:
Absolutely. The website is MoneyMattersWithMike.com it's the name of the show MoneyMattersWithMike.com and you can find the show wherever you listen to podcasts or whether you got an iPhone or an Android or just a home computer. You can find us wherever you listen to podcasts, just search money Matters with Mike and yeah, Mike it's important to catch up because every year it seems we're having these little tweaks, little adjustments to the way that retirees need to be thinking and strategizing as they move forward with their financial lives. So what do you say we get the show started and and let them know what they need to know?

Mike Zaino:
This week sounds like a plan, my man.

Producer:
And now wholesome financial wisdom. It's time for the Quote of the Week.

Producer:
Okay, Mike. This week's financial wisdom quote of the week comes to us from Jim Rohn, American entrepreneur. You may have heard him as a motivational speaker. He's got a really cool story that we can talk about. But here's the quote. A formal education will make you a living. Self-education will make you a fortune. What do you think about that, Mike? Wow.

Mike Zaino:
I mean, self-education is probably the single most important activity that anyone can undertake if they truly want to be successful. Okay.

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

Mike Zaino:
Today's meat on the bone is going to center around that self-education. And for a basic introduction to sound financial concepts, you really can't do much better than a than a very, very well written and short book called The Richest Man in Babylon. If you want to learn some some basic financial concepts, that is a phenomenal start for you. And then after that, if I were you, I might continue with managing your Money for Dummies. You know that the For Dummies series of books, you might think, well, am I a dummy? Well, I don't know. If you don't know a whole lot about something, then you might start there because they put it into plain English. And those books can definitely help expand your knowledge base of basic money concepts. After you've read those books, you might have an idea of specific topics that you'd like to learn more about. I'd head online and start googling. Okay, There is a wealth of free information if you are willing to just put some time into it. In fact, there's so much information it'll keep you busy for weeks, if not months. Another way is to surround yourself with successful people. Okay, that is a must. I often say that if you are the smartest person in the room, you need to change rooms. Okay? There are lots of networking events, for example, that are free to attend and you're likely to meet some extremely successful people and be able to talk to them directly.

Mike Zaino:
Have conversation. Okay. And most successful people that I know are happy to share their journey. Okay. So talk to entrepreneurs, talk to financial professionals, talk to bankers, talk to business owners, especially if there's anyone who is already doing what you want to be doing. Okay, Build relationships with them. Offer to work for them for free so that you can learn by doing. The bottom line is don't be afraid to fail. It's through falling and then getting back up again that you actually learn you'll miss 100% of the shots that you don't take. And for me, there is no such thing as wins and losses. I either win or I learn a lesson. That's what the L stands for. If I'm taking an L, it's a double L. I learned a lesson and I failed at many, many things in life. But I've refused to quit until I figured it out. And that is my hope for each and every single one of you out there listening. If you really want to learn how to self educate, you're off to a great start just by listening to Money Matters with Mike every single week now.

Producer:
Wow, that's fantastic motivation. Mike. You know, I've always found that determination is the factor that really sets people apart more so than any prerequisite skill or knowledge, the more determined individual is likely to come out on top most of the time. And it's one of those things, Mike, that I wish I knew when I was younger that, you know, I was always so worried, Oh, I don't have what I need to do this. I don't know what I need to do this. But it's really that determination, which is sometimes hard to muster, but it is the key in most situations, you know.

Mike Zaino:
It is the grit, the stick activity, the absolute refusal to give up. And the more times you do something, the better you're going to get at it. I'm not a good golfer. I enjoy playing golf. At one time, I actually was a decent golfer because I was playing four times a week. Now I may play, you know, maybe once every other month, once every three months, and you're just not going to get really good at anything, especially golf, if you're not continually doing it. And so, you know, from a coaching standpoint, I would rather have somebody that has that grit, that tenacity, that the stick activity, if you will, then somebody that has all the talent in the world. But that's lazy, right? Because I can work with somebody who just won't give up and who is willing to learn somebody that's lazy. I can't fix lazy.

Producer:
Yeah, absolutely. That quote of the week comes to us from Jim Roan, who is an American entrepreneur, author and motivational speaker. He was born in Yakima, Washington. Mike, have you ever been to Yakima, Washington?

Mike Zaino:
Actually, I have been to Yakima. We used to live not not too far out of, you know, the base in Tacoma, Washington, Fort Lewis. And so I'm familiar with where it is.

Producer:
I need to get up there to the Pacific Northwest some more. Some good weather. Oh, yeah. So Yakima, Washington was where Jim Rohn was born, but he was born into a poor family. The Roan's owned and worked a farm in Caldwell, Ohio. That's where Jim was raised. He left college after one year, became a millionaire at age 30, went broke at 33 and later became a. A millionaire again. And that sounds to me like a determined man. What do you think?

Mike Zaino:
Yeah, absolutely. I mean, like I said, he fell and he got back up and he probably fell a lot of different times, you know, within that three year period before he was able to build himself back up, you know, pick himself up by the bootstraps, so to speak, and get down to business. And, you know, anybody can do that as long as they have the drive and the determination, you know, especially when it comes to learning about finance and how to manage your money and how to prepare for a much, much better retirement, which, let's face it, that's what the show is about. Yeah. It's so.

Producer:
Important. You know, we talk about this, you know, in my in my circles all the time. You know, nobody teaches us what to do with our money. You know, if you go to high school, you know, growing up in America, you know, you know, maybe they taught you how to fill out a check. Maybe they taught you how to spend some money, but they didn't teach you how to manage your money. And so it's so important for people to be able to have access to information like this that we share on the show. All right, Mike, we're going to give the listeners a little pop quiz today. And you did give them a hint during the intro, so it's time for right or Wrong.

Producer:
Come on down as we test your financial knowledge. In right or wrong.

Producer:
The rules of this game are very simple. I'm going to read a statement. All of us are going to listen. We're going to consider that statement. We're going to decide if that is right or wrong, and then you're going to give us the answer and a little bit of information. So it makes sense. That makes sense to me. All right. Right or wrong, Number one, the age at which you must start taking required minimum distributions is 72. Is that right or wrong, Mike?

Mike Zaino:
Sam, that is wrong. Okay. As I alluded to earlier in the show, the Secure Act 2.0 was signed into law and went into effect in January so that RMD the age at which you must take required minimum distributions is now 73. And for those of you listening and have absolutely no idea what a required minimum distribution is, let me explain. So let's just say you're saving in your 20s, your 30s or 40s, your 50s and your 60s and you're saving in tax deferred type accounts like an employer sponsored plan for an example of 401 K, a 403 B if you're a federal employee, a thrift savings plan. If you have your own business, it could be a SEP or a simple, but it's tax deferred. You've chosen to defer the taxes until a later point in time. Well, let's also say that you've done such a good job planning that you never need to touch the funds in any of those accounts. Well, now the year in which you turn 73, that's Mr. IRS, your greedy uncle is going to come out with his big greedy paws going, Gimme, gimme, gimme. And he's going to force you to take money out of those accounts. Why? So that he can collect the tax. Okay. Types of accounts that are subject to the required minimum distributions can now continue growing tax deferred until the age of 73 for the owner of the account. And if you would like to learn more about planning for those required minimum distributions and possibly implementing a Roth conversion so that you avoid taxes altogether, please give me a call or visit me online. MoneyMattersWithMike.com. Reach out to me on Facebook at Money Matters with Mike and let's schedule an appointment.

Producer:
All right, Mike. We got the first one out of the way. It was a bit of a trick question, but it's an important change from Secure Act 2.0. The RMD age is now 73. Here's the second statement. The rule of 100 is a simple calculation to help determine how much risk one should take inside their portfolio of assets. Is that right or wrong?

Mike Zaino:
Sam That is right. You can simply take 100 and subtract your age. And whatever the resulting number is, is the percentage of your assets that you could have at risk in the market. Okay. The idea is the younger that you are, the more time you have to make up for any significant losses. And as you age, you might want to have more of your savings in what we call safe investment products, such as a fixed indexed annuity, for example. All right. If you're 20 years old, you can afford 80% of your money at risk. If you're 80 years old, you can afford 80% of your money at risk because when the markets drop, it takes time for them to come back. So if again, if you're not sure how to properly manage risk within your savings and retirement plans, I'm happy to help educate you in a complimentary consultation, whether that's on the phone, whether that's coming to the office or whether you are comfortable doing a virtual Zoom meeting wherever you are.

Producer:
All right. And you can get in touch with him at MoneyMattersWithMike.com. And Mike. I think the rule of 100 is is a great fundamental that I wish I'd just understood earlier and it makes sense you know as you get closer to that day that you're going to retire, you're going to stop working. So you're going to need to convert your savings into income. You've got to hang on to more of those savings. You don't want to have that risk be too risky as you get later and towards retirement. So here's the third item on right or wrong. This week we've got four of them. Here's number three. It's too expensive to work with a financial professional, and most people are better off managing their own financial and retirement plans. Is that right or wrong?

Mike Zaino:
That couldn't be further from the truth. Sam, that is wrong. I don't understand why people think that it is so expensive to work with financial professionals. We can actually help you save and keep more of your hard earned money. So you talk to those people that have the proper licenses to find out what you could be missing inside of your employer's cookie cutter investment plan. All right. For example, beware of target date funds with extremely high fees. Okay? It's important to work with a licensed professional that can help the spouse and family just in case. The family member who is doing all the financial planning passes away. Okay. Don't leave that on your spouse and your family. As far as having them, just guess what they need to do. We offer complimentary consultations for all of our clients. Love to get the spouses involved, okay? And we can provide what we call results in advance planning. Yeah, it's.

Producer:
Such an important thing for people to understand. Mike. You know, in the finance world, we want to protect the money. You know, we want to budget, we want to have a plan. And, you know, I think a lot of people are concerned with giving up control of the money that they've really worked hard to save. But it's it's not like you're handing it that over. You know, it's quite to the contrary. It's your money. And working with a professional is really a partnership to make sure that you are going to be able to do what it is that your goal is in retirement. It's like selling your house. Mike the realtor doesn't doesn't all of a sudden own your house and he's selling it. It's a partnership. There's going to be a vested interest there for both of you to succeed. And and it's similar in the financial world. It is.

Mike Zaino:
Similar. I mean, if I have a toothache, I go to a dentist. If, you know, if I'm having chest pains, God forbid, I'm going to the hospital, but I'm going to go see a cardiologist, Right. If my car is breaking down, I'm taking it to a mechanic. A mechanic. If my finances are broken and I need help, you need to speak with a financial professional. Period. End of sentence. Yeah.

Producer:
You know, whenever you find yourself in a situation where you could end up causing yourself more pain and more damage, like, you know, we had we had roots in our line. I lived down here in Georgia. Mike And we're a city amongst trees and sometimes those pesky roots get in the line, Well, I'm not going to get in an excavator and dig up that section and replace the pipe myself because I'm going to cost myself a lot more money than I ended up having to put on my Amex when the guy came up to the door to collect payments. So don't cause yourself more pain. Don't pull that tooth out yourself and and don't do your own retirement planning.

Mike Zaino:
So, Sam, it is never too early. It is never too late, and it is never too often to start planning for retirement.

Producer:
All right. Last one on this week's Right or Wrong. A fixed indexed annuity offers investors protection from market volatility, but still allows them to participate in the gains of an underlying stock market index. Is that right or wrong?

Mike Zaino:
Sam, That is absolutely correct. It used to be, you know, when you talk to old school advisors, they would say that 60% stocks, 40% bonds, that was your granddad's and maybe even your father's portfolio composition. Okay. Today we're starting to see bonds being replaced with fixed indexed annuity because with a fixed indexed annuity, zero is your hero. You get to enjoy market like gains without any of the market like risk. Okay, so if the market loses money, you lose nothing. You cannot do worse than zero. So zero becomes your hero, right? And then many of them can be set up to provide a guaranteed lifetime stream of income that you can never outlive. That's like creating your own personal pension. So again, let us help you manage the risk inside your retirement plan. Shop the market for the best safe money solutions that fit your and your family's growth, protection and income needs for retirement.

Producer:
All right. And that wraps up this week's Right or Wrong. Hopefully everyone listening, you know, did pretty well. Hopefully you learned something. And if you have any questions about those topics that we just discussed, get in touch with Mike. You can do it a couple of different ways. Number one, MoneyMattersWithMike.com. Get on the computer, get on your smartphone unless you're driving. Of course, wait until wait until you pull over at the QuikTrip or wherever you're stopping to fill up. MoneyMattersWithMike.com on that website you'll also find a phone number 704 560 1573. That's 704 560 1573. All 50 states can reach Mike right there at that number. Get in touch, ask your questions, schedule an appointment. He'd be happy to work with you and your spouse and your whole family on building out the right financial plan for you. We're going to take a quick break. And when we come back, we're going to get into the five habits of happy retirees. What are the happy, successful retirees doing that maybe we could learn from right now? And if you're currently in retirement, what could you be doing to live the good life a little bit better. Money matters with Mike. We'll be right back.

Producer:
Remember, all of Mike's listeners receive a free financial consultation just for listening to the show. Visit MoneyMattersWithMike.com to learn more and schedule an appointment. Thanks for listening to Money Matters with Mike and subscribing wherever you listen to podcasts. With age comes wisdom and senior discounts. I'm Matt McClure with the retirement Radio Network. Powered by a life. As the old saying goes, everything gets better with age. It's true of a fine wine, a happy marriage and opportunities to save money. People of a certain age can get discounts ranging from 5 or 10% to 25% or more at restaurants, shops and other businesses. Many times they'll promote those extra savings. But Jim Miller, senior editor of Savvy, told Oklahoma's News four. Sometimes you have to be proactive. So the first thing.

Jim Miller:
Is, is you always need to ask, because a lot of businesses and organizations offer senior discounts, but they don't advertise them. So don't be shy about asking to save time.

Producer:
You can search online for lists of up to date senior deals at large retailers like Amazon, Kohl's and more. If you're willing to dive a little deeper, you can find more discounts in a variety of other places. And if you're looking to stay healthy, Silver Sneakers is a program that provides fitness classes for those on Medicare at no cost. That's right. You don't get a bigger discount than free. So are you taking advantage of the big senior discounts you're eligible for? That's a key question to consider. And it's one of the 23 retirement cost cutters for 2023 with the retirement radio network Powered by a mirror Life. I'm Matt McClure.

Producer:
Call Mike today at (704) 560-1573 or visit. MoneyMattersWithMike.com to get your free copy of 23 retirement cost cutters for 2023.

Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty and how it could all affect your future in retirement? Then tune in to Money Matters with Mike to learn how you can protect and grow your hard earned money. Money matters with Mike every Saturday at 9 a.m. right here on FM 100.1 and AM 1340. Schedule a free no obligation consultation now at MoneyMattersWithMike.com.

Producer:
And we're back. You're listening to Money Matters with Mike. And we're here with Mike Zaino. Mike, how are you doing? I am.

Mike Zaino:
Doing phenomenal. How are you doing, Sam?

Producer:
We're doing great. We're having a good show. We've gotten some good information out to the listeners already. And now we'd like to talk about the Five Habits of Happy Retirees. Just some tips for Living the Good Life and many retirees who have successfully made that transition into the post working world. We've got some strategies and habits that they've shared what is leading to their high quality of life in retirement. And, you know, the first thing that's being highlighted here in this article, Mike, is planning the work and working the plan. How important is having a plan at any point in life, but especially for retirement?

Mike Zaino:
Well, say if you don't have a plan, plan to fail. Okay. Happy retirees often spend much of their careers actively laying that financial groundwork for their retirement. And by establishing and sticking to the right plan early, you are going to increase that likelihood of success. So again, it's not expensive to schedule a consultation with a financial professional and have your plan reviewed and then stress tested. What do I mean by stress tested? Well, you know, you should never judge a captain in calm seas. Okay. From 2010 to 2020, a monkey could have made money by investing in mutual funds or index funds or just throwing money at the stock market. Okay. But guess what's back volatility. The markets are up. The markets are down. They haven't been too pretty so far this week. And so we provide consultations at no cost to our listeners who wouldn't take advantage of that.

Producer:
Yeah, absolutely. Just get that plan checked in on if you don't have a plan. Never too early to get started. And if you're in that retirement red zone, which is the years leading up to retirement and those years right after you start retire, right after you've become retired, you know, it's so important to have that plan dialed in so you know that it can be doing all that it can for you, especially when it comes to producing that income that you need, you know, to live on and enjoy.

Mike Zaino:
You hit the nail on the head when you said, you know, just before and just after we've coined that phrase, the retirement red zone, Sam, And that's the five years immediately preceding retirement and then the five years immediately in retirement because, you know, most people want to go and travel and do stuff. And especially in that first decade of retirement, that's when you're going and you're traveling and you're doing well. If you're drawing down on your money and the market is losing, guess what? It's never going to last you as long. So you must have a plan and must, you know, check in on that plan and make sure that it is fluid and you are able to respond instead of react.

Producer:
The next item on this list of habits of happy retirees checking in on your money. So it's not enough to just get that plan in place, set it and forget it. You know, on the contrary, you want to check in. You know, you were talking about a ship captain Mike. You know, they're not just going to set off in one direction and trust that they stay true to their course the whole time. They're going to make adjustments. They're going to check in, you know, make sure that they still want to head to the same destination. Maybe they get word that there's not much there on that island. They need to divert course. So how important is it to check in on your money?

Mike Zaino:
Extremely important, Sam, whether you are, you know, ten, 20 years from retirement or it's like literally right on your doorstep, you might be tempted to just stick it on cruise control, so to speak. But regardless of your age, regardless of your portfolio size, it is very prudent to keep a sharp eye on those investments as well as the income flow and also stay on top of any any government rule changes. Okay. Or any other situations that could impact your retirement income sources, because in retirement it's about income, cash flow, right? The amount of money that is left over after you are paying your expenses, it's not about the size of your nest egg, the size of your 401. K, the size of your IRA. Financial professionals like me can help you review the health of your retirement plan each year and make sure that you're still on track and help prevent problems from arising as time goes by. Because as time goes by, going back to the rule of 100, your risk tolerance should diminish, right? The older you get, the less risk you should be accepting as part of your plan.

Producer:
Yeah, absolutely. Because, you know, people work hard to earn that money. They work even harder to save it. They want it to be working as hard for them as they did work for it. So you want to get some growth out of that portfolio, but you want to have that protection as well. You know, I know that when I get to retirement, Mike, I want to know what my income is going to be because I want to enjoy those play checks just as much as I enjoy the paychecks knowing that another paycheck is going to come next month. All right. Next item on the list of habits of happy retirees staying healthy and staying active. I think this is great at any point in life, but especially as you enter retirement, you don't want to slow down. You want to keep going.

Mike Zaino:
You do. And before anybody makes the decision to retire, the number one thing that everybody should do is to go get a comprehensive physical. Think about this. How many people have you seen retire and then within a year or two, they drop dead. Okay. Most of those people had absolutely no idea they were sick. And if they did, they would have definitely made different decisions about how they spent their time, about how they spent their money. Right. So paying attention to your health now can pay off in retirement, quite literally. Okay. And while seniors can take advantage of fitness discounts like the Silver Sneaker program and other breaks, staying fit can offer long term security against increasingly steep medical and health expenses. Believe it or not, older Americans, they can expect to pay an estimated $315,000 on medical expenses alone just in retirement. Help cut down on those costs by eating healthier foods, drinking plenty of water, participating in daily exercises. I don't care if it's just walking right. You don't have to hike. You don't have to swim. You can play tennis. You could play golf. I mean, there are lots of activities that you can do as a senior adult. Just don't sit on the couch because sitting okay is literally as bad as smoking. That sedentary lifestyle will kill you.

Producer:
Yeah, you want to make sure that you get out, you get that heart pumping, get that blood moving. I like to do that early in the day. Mike You know, it seems counterintuitive, but I feel like staying healthy and staying active almost keeps me more energized that I won't be able to find the time in the day if I don't make the time to get that workout, get that exercise in.

Mike Zaino:
Everybody has the same 86,400 seconds, right? It's just how how you prioritize and what you prioritize getting done.

Producer:
Absolutely. Next item on the list of habits of happy retirees is learning new tricks. You know, everybody has their interests. But you know, keeping that mind active as you enter retirement is something that keeps people pretty happy.

Mike Zaino:
It is. They say you can't teach an old dog new tricks. Well, that's baloney. Okay. You know, people that pick up new hobbies or learn new skills, it keeps their mind sharp. Okay. Not only is it fun, but it has other ancillary benefits. My mom, for an example, is in her 70s and she goes on, I think it's Duolingo and she's learning Spanish. And she spoke Spanish already. But, you know, after years of not using it, it's it's neat to watch her go in there and try to just every single day she's on Duolingo. I mean, there are people who do crosswords. There are people who do you know? What is the Wordle thing that has taken the entire Internet and Facebook and social media escape by storm over the past couple of years? The mental exercise and problem solving that is required to learn even things like playing the guitar or learning to play the piano or taking up painting is rewarding and the benefit is that it can help prevent cognitive decline.

Producer:
Yeah, and I think learning a new language or even if it's just for fun, you know, I think that can do so much for that. You know, you can have that social experience as well. Maybe you've got a trip planned to Mexico, learn a little Spanish, maybe you're going to go to Paris, learn a little French, and, you know, it'll just make that experience so much better and it'll keep your mind sharp as well. The next item on this list, keep up your social network. I think a lot of people disregarded this one, Mike. Until a few years ago when COVID struck, we realized how important those social networks are to who we are as human beings.

Mike Zaino:
Right? Right. It was like the world shut down and you had to stay in your house and you weren't allowed to go visit your friends. You weren't allowed to go visit your family. Okay. So that definitely showed. And research shows that retirees report higher levels of happiness when they're when their social engagement is increased. Okay. And similar studies found that isolation actually has links to things like heart disease, stroke and dementia. So even before you retire. Think about the different ways that you're going to find stimulation, purpose, community in your later years. Okay. Maintaining your connection with your family and friends, which, as the research shows, will keep you happy and reduce your stress. You might even consider going back to work 2 or 3 days a week just to keep yourself socially engaged. Mentally engaged, physically engaged. Okay. And the ancillary benefit there is you've got a little extra jingle in your pocket.

Producer:
Yeah, absolutely. You know, I hear more and more, Mike, so many people who have retired are going back to work. And it's not because they need the money. What they need is they need the rhythm, right?

Mike Zaino:
They need that, that, that constant hey purpose in life that gets them up in the morning, gives them something to look forward to, but has the ability to say, you know what? If somebody's getting on your nerves, I like to call them Johnny Paycheck jobs, right? If somebody really ticks you off, you can just tell them to take this job and shove it. Ain't working here no more. Right? So, again, just just being able to go out there and have that social engagement, mental engagement, physical engagement and the extra jingle, I think that's not a bad thing.

Producer:
Absolutely. Being able to walk away in any situation is a great bargaining chip for sure. And I didn't know we were going to get a little bit of karaoke here on Money Matters with Mike on the weekend. But but I like it. I like it. So kind of reviewing those five Habits of Happy retirees plan the work, work the plan. So important to have a plan. Check in on your money. Make sure you make adjustments to those. Plan number three was stay healthy and active. You know, what's the point of working hard if you don't have the health and the time to enjoy it? Right. Also, learn new tricks. Keep that mind sharp. And the last one, keep up your social network. So I hope that was helpful to all of you listening. Take a little bit of that. You know, Mike, it's so important to have people check up on their money. That was number two on this list. But even for those that are still working, you know, what can you do for folks with just a simple complimentary consultation? Yeah.

Mike Zaino:
So we do, you know, comprehensive consultations again, at no cost to our listeners. There's also no obligation. You're only going to work with us if it's best for you. We can actually analyze your current financial situation. What does that mean? That means we take a deep dive and find out where your money is, what money you got coming in, what money you got going out, how much you're paying in fees. We can help you cut unnecessary costs in your 401 seconds, your IRAs or any other types of retirement savings accounts that you might have. We can closely examine any annuities that you might have if you have an annuity and there's the word variable in front of it and you are approaching retirement, you absolutely need to give me a call. Okay. We can also help you with both Social Security planning and Medicare. So bottom line on this, folks, is that we're going to help compare your situation to what's possible if you work with us here. So 704 5601573. That's my direct phone number. It rings this phone. The only time I won't answer it is if I'm in a meeting with another client on the, you know, on the air right now like I am, or if I'm spending time with my family. Okay. Or taking some personal time. So you call me, you leave me a message. If I don't answer, and I will call you back and then do connect with us on the socials again. Search Money Matters with Mike on both Facebook and YouTube. Just to stay on top of all of the data and the research and the little things that we put out each and every single week on the socials.

Producer:
Absolutely. And no matter no matter how much money you do have, it matters to you. And that means it matters to Mike. And you can call him at 704560 1573. And the phone number is also on the website MoneyMattersWithMike.com. Well Mike, there's a lot of concern out there amongst today's retirees in a recent survey determined through a study that these are the top concerns of retirees. So of course, retirees face many different factors that can affect their ability to generate income and live that lifestyle that they've always dreamed of. But here is what they're concerned about. The number one concern, 71% of survey respondents said they're concerned about inflation. And aren't we all I.

Mike Zaino:
Mean, who isn't concerned about inflation? Okay. At one point last year, it was over 9%. We've seen inflation that a lot of people alive actually haven't seen in their entire lifetime. It's the highest that we've ever seen in the last 40 to 50 years. So 4 to 5 decades there. And the Fed is doing their absolute best. To not put us into a recession by raising these interest rates. But, you know, the very definition of a recession is what, two declining quarters of GDP? Well, guess what? We've had two declining quarters of GDP. So whether they like to admit it, whether they try to redefine what it is, we are in a recession. And the silent tax. Okay, that is inflation. The bottom line is you're feeling the pain at the grocery store. You're feeling the pain on all goods and services that you you do, especially if you're, you know, in the construction field or you need to remodel something. Heck, prices have literally doubled to tripled in the construction realm. Okay. And everybody is wondering when it is going to stop.

Producer:
Yeah. You know, it's it's amazing looking back, You know, we've already talked about it a little bit during the show. But, you know, I've just found myself more and more Mike shaking my head, remembering back to three years ago in COVID when the world stopped. And, you know, it didn't stop for all that long. It felt like a long time. But, boy, they supply chain issues have continued. Years later, all of that economic stimulus that got dumped into American's pockets really watered down the money supply and prices went up, you know, faster than those stimulus checks could keep up with them. And and inflation is here and it's and it's here to stay.

Mike Zaino:
So one of the things that I actually had the privilege of doing last week was going up to Washington, D.C. And I spoke at a legislative conference and was amazed at how many people there are actually trying to support legislation that will fix the supply chain. Okay. The Fed is trying to attack it from a different angle. But ever since this happened, I've been saying, look, if you fix the supply chain, the rest of it will iron itself out. And that's hopefully what they are going to concentrate on this year in 2023.

Producer:
Yeah, absolutely. Because for now, the high prices will change. You know, consumers a little bit. I mean, I haven't picked up quite as many eggs as I had, you know, maybe in the past year or two because of those prices. But the inflation, the supply chain has not come to a good resolution yet. That was 71% of people are concerned about inflation and you can't blame them. 51% of respondents, Mike, said that they're concerned about future health care needs and expenses. And what has me really thinking about this is here's an interesting fact 75 million baby boomers are expected to retire by 2030, 75 million. Now, when you think about over the course of your life, you go to a lot of doctor's appointments at the very beginning, even more as you get to the end. And those 75 million baby boomers are going to put some incredible stress on an already stressed and and really battered down from the recent pandemic health care system in our hospitals and our doctors. You know, I think that health care expenses are going to continue to rise just when we need it the most.

Mike Zaino:
Yeah, I mean, like you said, 10,000 baby boomers are reaching retirement age and retiring each and every day, Sam. I mean, that that is the largest generation in the history of the American population. And you couple that with the rising cost of health care, the rising cost of drugs, Big Pharma should be ashamed of themselves. They absolutely should. I'm all for capitalism, but there is no reason that a single pill should cost $1,000. And I've seen it. I've shared on this show before that I had a kidney transplant back in 2020, and some of the drugs that they were proposing that I take or I might have to take were literally, SAM, $1 million a year. And I'm like, who can afford that? I mean, I don't know many people that can afford that. Thankfully, they did just pass for for insulin for folks that are dependent on insulin, that insulin is not going to cost them more than $35 a month, which is, you know, still a lot better than what it used to be. But Big Pharma just needs to do better. They've got record earnings with all of their different drugs that are out there, and I understand that there is a market for it, but in every other developed nation, they don't have to pay the exorbitant health care costs and drug costs that we get away with or they get away with, I should say, charging Americans.

Producer:
Yeah, it's it's really interesting the way our health care system operates in the United States, Mike. And, you know, I heard something that only two countries in the world permit advertising of pharmaceutical drugs. And the United States is one of them. And I'm sure that. We've seen some of those, you know, pharmacy and those drug commercials recently, followed by the 20/32 of possible side effects at the end of the commercial.

Mike Zaino:
Yeah.

Mike Zaino:
I mean, I actually saw a 32nd commercial that had 2.5 minutes of possible side effects. And I'm thinking to myself, wow. Okay. The commercial was 30 seconds. The side effects were 2.5 minutes long and some side effects are really serious. I had a buddy of mine and here's if you guys didn't know this, nobody likes to go to the the doctor to have a colonoscopy. Okay. It used to be that that age was 50. It has been lowered to age 45. So if that's news to you and you have not had a colonoscopy yet, it is now at 45 where doctors are suggesting that you go and have one. It's not that bad. It really isn't. You're in, you're out. You don't even remember what the heck happened. But he went in at 45 years old. Okay. And he was diagnosed with stage three colorectal cancer. And they found that at stage three, it quickly progressed to stage four. And he was put on an immunotherapy regimen. And an experimental drug that is is actually 102 days later, he was 100% cancer free, no detectable cancer in any of his scans. But he has had many, many, many side effects from these drugs, including neuropathy, where his hands are numb and his feet can't feel his legs. He said the inside of his mouth was was feeling like it was on fire. But he did say, you know what, Mike? It beats the alternative. I could have died and I'm alive today. So, you know, that's the positive that we take out of that. So, again, you know, if you haven't had a colonoscopy, please go and get one. And because the earlier you detect this stuff, the more curable it is.

Producer:
Yeah, absolutely. Just like we encourage people to seek out a professional with checking in on their finances each year, you definitely want to check in with your doctor each year. Preventative care is so important. It's covered by most health insurance plans that keep it very affordable. You know, even if you go there and you find out that you're right on track and there's no problems at all, it was worth going in because not every year will that be the case. And yes, absolutely. Please get screened. I've had members of my own family be affected by this. It is affecting more and more men every day. Definitely go and get screened. So 51%, Mike, 51% of respondents said they're concerned about future health care needs and expenses. And the third biggest concern, 46% said they're concerned about potential reductions in Social Security. I mean.

Mike Zaino:
Who isn't concerned about potential reductions in Social Security for those who are on Social Security This year? They got an 8.7% raise, which is awesome for those folks already, you know, drawing it. But folks that are not yet drawing it, you should be concerned. The last statement that I actually got, it's been a minute because they're not mailing paper anymore. You can go to ssa.gov, sign up for a my social security account. If you haven't done that, to at least be able to predict how much your benefit estimates are going to be. But the last report that I got said that by the year 2034, okay, that Social Security was only going to be able to meet 70% of its obligations. Now, is it going to go broke? I doubt it. Seriously. All right. That is going to or would cause a global epidemic on a scale I don't think anybody's ever seen, because there are people all over the world that are Americans and drawing Social Security. Right. So I don't think that's going to happen. But they're going to have to do something, Sam.

Mike Zaino:
They're going to maybe move the needle a little bit where the current retirement age is between 66, 66 and either two, four, six, 8 or 10 months or 67. Right. They may move that now to, I don't know, 72, 72. Somewhere in there. 75. Why? Well, people are living longer. And when Social Security was first signed into law, there were three people paying in for every one person taking out. And by the way, you were supposed to have been dead for four years. All right. The average life expectancy was 58 and you couldn't start drawing it until you were 62. Right now, there are 40 people taking out for every one person putting in. And the life expectancy in the United States, although it's come down a little bit, is still around 84 years of age. So if you can start it at 62, okay, now you're taking it for another 22 years. It just wasn't designed to be that long term sustainable. So everybody that is concerned about the viability of Social Security absolutely has a right to be concerned.

Producer:
Yeah, absolutely. Good information there. Social Security is the largest and most popular social program in the world. So I doubt that it'll go away myself. Mike But it is something to be concerned about because, you know, it is an 80 year old program. They're going to have to make some adjustments to it. You know, we're used to that as Americans. They're changing the tax code. They're changing the rules on us every single year. So we got to be flexible. We got to be able to pivot. And I think, you know, when it comes to building a financial plan for retirement, you need to be able to build in some of that flexibility in your income plan. If you can make it work, you absolutely.

Mike Zaino:
Flexibility is key, right? I talked earlier about responding instead of reacting. Think about it in medical terms. If you take a medication and you have a reaction, that's not good, okay? If you have a response and you respond to medication, that means things are getting better. So in order for you to make sure that your financial plan and your money is is able to last you for the rest of your life, no matter how long you live, you need to have a good, solid plan that you can trust just to give you that peace of mind. And so that you don't have to worry about what is going on on the news, whether it's locally, regionally, nationally or internationally, and how it might negatively affect your portfolio. Because, Sam, how much of that do you have control over? None, right? But then how much of that can impact your portfolio to the negative? All of it. So just use common sense folks and make sure that your plan is stress tested and can stand the test of time no matter how long you need that time to last.

Producer:
If you need a check up on your financial plan or maybe some help getting your retirement plan started, get in touch with Mike at Money Matters with Mic.com. You can find the phone number there. 704 560 1573. Well, Mike, we've got six minutes and change left in today's show. And you know, pack your bags. We've got a list of top domestic and international travel destinations where retirees are traveling today. Mike, I know you love to travel. Let's go through some of these top US destinations because, man, we've got 50 states, we've got territories, we've got Alaska, we've got Hawaii, we've got all these different places you can go and you don't even need a passport. So here are the top four destinations in America for retirees coming in at the top of the list. Not a big surprise here. Florida, the Sunshine State.

Mike Zaino:
Yeah, they have 825 miles of beaches. Right. They have warm weather year round. I've lived in Florida for a period of time. It gets really hot in the summer, but it is glorious in the winter. And the native Floridians cannot stand when the snowbirds come down for the winter to winter in in Florida. Right. They've got fishing. They've got golf. It's just an overall great state.

Producer:
Absolutely. Yeah. I lived in Florida for a couple of years myself, Mike and oh, boy, man, June. July got pretty tough with the heat. But hey, come come November, December and the holidays. My family was coming to visit me because the weather is just fantastic there in Florida. It's hard to beat number two on the list of top US destinations for retirees. California, Big Coast out west, California.

Mike Zaino:
Is a great state to visit. Okay. I don't know that I would want to live there. I'm sorry if you guys are from there. Anybody listening? But why is it a great state? Well, there are nine national parks. There are 280 state parks. You have wine tours, you've got coastal tours. You've got big cities like San Francisco in the north, Los Angeles in the south, and then San Diego in the extreme south. I happen to absolutely love the San Francisco and San Diego just simply because they're two extremes of the state. You've got lush forest, you've got some arid areas and you don't have humidity. And that's what I like.

Producer:
Yeah, it's a big state. You can do a lot. You know, Northern California, you've got the big sequoia trees. You've got such a distinct city like San Francisco, the Golden Gate Bridge. I mean, you've got mountainous regions of California. Heck, you can go skiing there, but you can also go to San Diego, go to the beach, visit that big zoo, you know, play those world class golf courses out there. No wonder why California is a top destination. And and here we go. We're going to go from two states to just a city. Viva Las Vegas. Number three on this list, Mike.

Mike Zaino:
Well, what's.

Mike Zaino:
Not to love about Las Vegas? All right. If you're a gambler and like to play games, you've got a plethora of casinos, you've got pools, you've got live events, you've got shows, you've got amazing food. And after all, what happens in Vegas stays in Vegas.

Producer:
That's absolutely right. And number four on this list, Texas, warm weather, barbecue tours, so many distinct cities in the big state of Texas as well.

Mike Zaino:
Yeah, in Texas is, you know, the largest state in the continental US. Okay. And so you have warm weather. You can do barbecue tours. There are historical sites such as the Alamo. You can go coastal, you know, like in the Panhandle area, just some really, really beautiful places in the state of Texas.

Producer:
All right. And if you've got a passport and if you don't, you can just head over to your local post office. I'm pretty sure they still take passport applications at the post office. It's been a while since I've submitted one of those because they're good for ten years. So once you have them, you've got quite a few years to travel. Get some pages added in there if you're really making your way around the globe. But here's the top international destination for retirees. Mexico.

Mike Zaino:
That surprises me, really. But Mexico is an amazing it's probably one of my favorite places to to visit because I speak a little bit of Spanish and I'm able to communicate a little bit. You've got beaches, you've got resorts, you've got ancient ruins, you've got Mexico City, which is a, you know, just a vibrant and bustling city. There are food tours that you can take, and you've got two coasts that have just phenomenal coastal atmospheres.

Producer:
All right. And across the pond to number two, France for an international destination.

Mike Zaino:
Yeah, I've been to France. You've got Paris, you've got the Eiffel Tower, you've got the Louvre, you've got the French countryside, you've got the Alps. I mean, there's lots to see in France.

Producer:
Good food there as well, and great food at this next destination, Italy at number three on the international destinations. Right.

Mike Zaino:
What's not to love about Italia? Okay, Ancient Rome. You've got Tuscany, you've got Pompeii, you've got the Amalfi Coast and the whole Italian coastline. You've got some beaches. You could go to Venice. The whole city is literally floating with canals. You've got Lake Como, you've got the Italian Alps. Italy is a fantastic vacation destination.

Producer:
And rounding out this list of international destinations, Ireland feeling lucky.

Mike Zaino:
I've actually not been to Ireland and I cannot wait to go. I mean, Dublin, you've got all the castles, there's the beautiful cliffs that you see, picturesque villages and of course, some world class golf.

Producer:
Absolutely. The links over there look lush and green. I can't wait to make it over there myself. And Mike, that brings us to the end of this week's show. We've brought the listeners so much good information and I'll hand it over to you for the final word as we wrap up. Money Matters with Mike.

Mike Zaino:
Listen, thank you so much. People out there that tune in religiously each and every single week in the Charlotte metropolitan area without you guys, this show does not exist. Okay. So from the bottom of my heart, thank you so much. If you know anybody that needs to hear this stuff, please share us. Okay? Share us on the socials. Share us just by telling people to go to MoneyMattersWithMike.com. Whatever you're doing this weekend, I hope you get the most out of it. And as always, make it a great day.

Producer:
Thanks for listening to Money Matters with Mike. You deserve to work with a financial and insurance expert who can offer strategies for protecting and growing your hard earned money to schedule your free no obligation consultation. Visit MoneyMattersWithMike.com or pick up the phone and call 704 560 1573 That's 704 5601573. Not affiliated with the United States government Mike Zaino 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.

Producer:
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. With soaring inflation continuing to wreak havoc on everyday budgets, there's never been a more important time to cut costs, but do you know where to begin? I'm Matt McClure with the retirement Radio network. Powered by Mirror Life, There is no question costs have been soaring.

Sharon Epperson:
About one third, 34%, say they are worse off financially this year than a year ago. Almost half, 46%, say they've had to cut household spending due to inflation.

Producer:
Cnbc correspondent Sharon Epperson recently reported on a survey that sheds more light on how inflation has been impacting us all. Even those who earn six figures a year.

Sharon Epperson:
These high earners say the first expenses to go are dining out at restaurants, entertainment outside the home and travel and vacations. As more than half also say they'll delay big household purchases.

Producer:
That high inflation has led the Federal Reserve to respond with interest rate hikes. The goal is to increase costs to tamp down demand. Esther George is president of the Kansas City Fed.

Esther George:
Already we've seen the committee's policy actions lead to a very sharp tightening of financial conditions.

Producer:
But it hasn't done enough yet and costs still keep rising. So what should you do? Well, we have a free resource called 23 retirement cost cutters for 2023. It's full of ideas to help you make the most of every penny. Things like take advantage of senior discounts, eliminate unnecessary subscriptions and cut back on clothing expenses.

Sharon Epperson:
Look at your needs and wants, Figure out what's optional and what you can cut out.

Producer:
The last one on the list of 23 retirement cost cutters for 2023 is perhaps the most important. Seek advice from a trusted financial professional. That's the best way to get in-depth financial advice in retirement planning that's customized to you and your goals. Just make sure whoever you consult for financial advice has years of experience and credibility you can verify. So do you know the best way to cut costs in 2023? That's a key question to consider as our budgets get stretched to the max with the retirement radio network powered by AmeriLife. I'm Matt McClure.

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