How to Beat Inflation and Protect Your Hard-Earned Dollar’s Buying Power

10.20.23: Audio automatically transcribed by Sonix

10.20.23: 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 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 boy, let me tell you, today we are absolutely bringing the heat again. On today's show, we're going to provide some inflation updates, provide and discuss some important reminders for the end of the year, as well as teach you how to make your money last in retirement. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matt, how are you doing today, buddy?

Producer:
Hey there Mike I'm doing great, sir. I know that you've got a little extra pep in your step this time around, because we got some great stuff to talk about here on the show. You know, not only how to make people's money last in retirement, how to put their money to work for them. But also, you know, maybe how to how to get get paid a little bit more, get some more, more bang for your buck in your everyday life too.

Mike Zaino:
I think I think everybody who's listening, their ears might have just perked up because yes, I do have a nugget for you that every single listener of this show is going to want to take advantage of. And the good news is that every single listener of this show, as long as they're at least 18 years of age, can take advantage of what I'm about to tell you guys.

Producer:
Yeah, it's not like you have to have, you know, a certain amount of income or you have to have a certain credit score or anything to take advantage of what we're going to talk about a little bit later on in the show. This is something that is literally for every adult within earshot of our voices right now. And and that's that's pretty cool because, you know, people have been putting up the two, two things that can be beneficial to you. People are putting out what you want to put up walls around it. Like, you know, Delta just got a bunch of trouble for that, you know, putting up more walls to the to reach an elite status in their frequent flyer program, they had to walk that back. This is like the you know, the opposite of of that. This is like a company wanting to to give you more perks instead of take them away.

Mike Zaino:
Yeah, I can't wait to get to that part for sure.

Producer:
Yeah, definitely. So so we got a lot to do before we get there, though. Of course we got a bunch of inflation talk, as we've been mentioning. We have, you know, reminders about the Medicare annual enrollment period. I'll talk about that in just a second. First though, folks, of course, as Mike said, welcome to the show. This is Money Matters with Mike. You can find us online. Money matters with Mic.com. That is the website. You can also search for Money Matters with Mike on YouTube and on Facebook. Connect with the show there. Connect with Mike there on Facebook personally as well. Give Mike a call. Also the number 704 5601573704560 1573 is the number to get in touch with him. And of course, a little bit later we'll tell you about the free consultation that you can take advantage of as well. And also okay, so here's that reminder for you folks. Put a pin in this at least through December 7th. Anyway, it's the Medicare annual enrollment period. And Mike, it's a very important time for those who are not only, you know, maybe just looking at Medicare, maybe just turning 65. It's always an important time for them. When they turn 65, they have to sort of, you know, make make decisions. But it's an important time for everyone who's a current Medicare beneficiary, because it is time to review, review, review what you have right now.

Mike Zaino:
Absolutely, Matt. So savvy retirees, those folks are going to do a Medicare coverage check every single year just in case they have an opportunity. Why? To save some extra money okay. And so by reevaluating your plan or plans, if you're, you know, in a spousal situation where you both have Medicare and by doing that every year, you will likely find out that you can save money on your Medicare expenses. Why? Because people are or the companies are competing for the same business. So definitely. Let us know how we can help you with your Medicare. You can either visit us at MoneyMattersWithMike.com, or give a call at (704) 560-1573.

Producer:
That is absolutely right and a good thing to do. And a very easy thing to do as well. Well, we will have a little bit of more discussion about, you know, your your health care costs and, you know, scams to avoid during Medicare, AEP, the annual enrollment period here coming up in just a bit, a bit later on in the show, that's going to be an important discussion. More important discussions to come to talk about Social Security as well. We learned the the Cola, the cost of living adjustment for 2024 just about a little over a week ago. Now we're going to talk about what that increase is and whether or not it is actually keeping up with the pace of inflation, how Americans have responded to inflation as well. We got some results of a poll there that really shows a lot of different people did different things and are doing different things still to make those adjustments in their lives. And the vast majority of people are doing something, but there are people out there who are doing nothing, which surprised me. I guess all those people are just really, really rich. We have an inflation demonstration to which you will want to bring your sweet tooth today. And then, of course, we'll get to that discussion of, you know, some something out there that you probably have not heard of that I know Mike is really excited about. I'm kind of getting more excited about it, too, the more we talk about it here behind behind the scenes. But we'll get there. It could be a very rewarding thing to for a lot of people to take advantage of, and we'll kind of go into a little bit of a deep dive on that. And of course, much, much more to come here. Let's get started, though, right now with our quote of the week.

Producer:
And now wholesome financial wisdom. It's time for the quote of the week.

Producer:
And those wise words come from Jim Rohn, who is no longer with us, hasn't been with us for several years now, but unfortunately, because he is really a kind of a great, you know, inspirational guy, motivational speaker and entrepreneur and author. And he had to overcome a lot of financial challenges early. So a lot of his, you know, road to success has to do with financial success and that kind of discipline. Right? So here's what Jim Rohn said once. Quote, we must all suffer from one of two pains the pain of discipline or the pain of regret. Now the difference is discipline weighs ounces, while regret weighs tons. Oh, boy, I can I can testify to that.

Mike Zaino:
Yes, we can preach on that all day. Right. And in fact, that's that's what I'm going to use today is meat on the bone segment to just kind of differentiate the two, because Jim's quote highlights a fundamental choice that every single person faces throughout their lifetimes.

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

Mike Zaino:
It's about that trade off between the short term discomfort of discipline and the long term agony of regret. So, relating his quote to preparing for retirement, let's discuss the pain of discipline. Okay? Discipline involves making responsible choices, taking actions and making sacrifices in the present in order to secure a much better future. So in the context of retirement, what does that mean? All right. Well, let's talk about your savings and investments, right. Saving a portion of your income and consistently investing it for the long term. That's what it means. Well, that requires that you live within a budget and you make choices that are going to prioritize saving over immediate consumption. Okay. And so the pain is forgoing that immediate gratification in order to obtain future financial security. So you have to educate yourself. Discipline in retirement planning also includes educating yourself about all the different types of financial instruments that are available to you, different investment strategies, different retirement options. And that might require you to spend some time learning and speaking. You know, seeking, I should say, guidance and advice, which can also be challenging. Okay. But then it also leads into or bleeds into living a healthy lifestyle because maintaining a healthy lifestyle and planning for health care expenses in retirement definitely is going to involve discipline, right? Regular exercise, eating a balanced diet, making sure that you're going to the doctor for those medical checkups at least annually for physicals.

Mike Zaino:
And the discomfort there is the effort that's required to maintain the habit. Okay, so that's talking about the pain of discipline. And now let's flip it and talk about the pain of regret. So regret comes when you fail to take disciplined actions in preparing for retirement. And that pain of regret. Guess what, folks? It's much more profound as it involves that you realizing, coming to the realization that you did not take the necessary steps in order to secure your financial future. So examples of that pain can include having inadequate savings. Without discipline, you might not have enough in order for you to enjoy your golden years, and that results in the pain of financial insecurity during those golden years, right? If you don't have a lot of investments or your investments are limited, and failing to invest wisely can lead to regret. When you realize that your retirement fund has not grown sufficiently, and that pain of regret there is the knowledge you knowing that you missed out on all of what could have been as far as potential growth, and then neglecting your health can also lead to regret in retirement, as you might have to deal with health problems that could have been prevented if you just left that family sized pack of Oreos.

Mike Zaino:
And yes, I'm talking to you, Mike Zaino. Okay, in the kitchen pantry. And you didn't touch it. Okay, the pain here is the physical and the emotional suffering. And then lastly, having inadequate knowledge. If you didn't educate yourself about retirement planning, you're probably going to make poor decisions, okay? Leading to financial instability during retirement. And that pain of regret is then only. Compounded again by the realization that you could have made better choices had you only had the knowledge and known better. And we say all the time, when you know better, you do better. Or at least you should. Okay, so the the key distinction in Jim's quote is that the pain of discipline, though it may be challenging in the short term, is manageable and comparatively lighter than the pain of regret, which can often be overwhelming and very long lasting. So in the context of retirement, disciplined financial planning and responsible living will help you avoid that heavy burden of regret that comes with inadequate preparation. It's a reminder, a constant reminder that the choices you make today will significantly impact your future. And the pain of discipline is small price to pay, a very small price to pay for a comfortable and regret free retirement.

Producer:
Yeah, and the thing that hits home for me in all of that is that, you know, you don't want to get to a certain point in your life and look back and kick yourself because, you know, then that you could have done something to prevent the situation that you find yourself in. Now, as you said a minute ago, it just compounds the already bad feeling that you have about being in the situation that you're in. And it just, you know, that that regrets weighs you down. It doesn't doesn't help the situation because you can't go back in time and change things. You know, we haven't invented time travel just yet.

Mike Zaino:
Not yet. And the sad thing is, is that we all have regrets. Maybe we don't have that many. Maybe you're fortunate and you don't regret a lot. And even if you do regret a lot, I certainly wish I had done things differently in the past. But I have let go of that because why? I know better now. And now I'm putting my knowledge into practical application for my future self down the road. And the good news is that each and every single one of our listeners can do the exact same thing.

Producer:
Yeah, 100%. And future you will. Thank you for doing that. And that's really what the show is all about, giving you the knowledge, which was one of those things that you talked about a minute ago, Mike, giving people the knowledge to really make a difference in their own lives and give them a help helping hand to go about making a big difference in their own financial life, which of course, will have a huge impact on all aspects of your life. Because, you know, I mean, the number one fear of retirees running out of money in retirement, you don't want to get there itself. Yeah, more than death, and you don't want to get there and realize that you don't have it, that there's no plan for income in retirement. You know, you've saved up your nest.

Mike Zaino:
Egg done better, and you.

Producer:
Could have done it, and then you'd be kicking yourself. And all the things that we just talked about will be the case for you. You don't want that to be the case for you. You go to MoneyMattersWithMike.com or call (704) 560-1573. And hey, I can tell you I know this this guy well, this mister Mike Zaino and he can help you out. And if he can't help you out then, you know, chances are you're in a you're in a pretty good place because, you know, if you need help and Mike can help you, he will absolutely do that, you know, because it's your money. So it's important to you. And I know that it is. It's definitely going to be important to Mike Zaino.

Mike Zaino:
Yeah. One of the things I always say is, is you know what? If you let me help you, I will. I mean, and the sad reality is that, you know, only about 8% of the folks that I sit down with, for whatever reason, you know, choose not to let me help them. And we part as friends. Hey, I wish you the absolute best of luck. The other 92%, um, they're the ones that are sending me Christmas cards on the regular and thanking me for the plan that I've put them on, because they have the absolute confidence in knowing that their money will last them as long as they do. Yeah.

Producer:
And which is just so I mean, peace of mind, right? You always say something cost you your peace of mind. It is absolutely not worth it. And that is the, you know, some, some guaranteed peace of mind for you when you know you have the income to make it through the rest of your life, no matter how long you live. All right, so speaking of payments, for as long as you live Social Security, we hope that it's going to be there when we're of a certain age. And if you are a Social Security recipient right now, you're hoping it's going to be there. You know, every time the direct deposit is scheduled into your account, or do they even send out paper checks anymore? If they do, every time it's scheduled to show up in your mailbox, you're hoping and praying that it's going to show up. But they did announce the cost of living adjustment a little over a week back. The Cola as it's known for 2024. The question is, and Mike, I'll let you sort of explain what the Cola is for this coming year and kind of that number there, how it compares to. Years and then kind of maybe try to answer the question anyway, that is it. Keeping up with the real pace of inflation.

Mike Zaino:
Matt, I'll just simply answer that question saying, absolutely not. It's not. But you know, this year, Social Security recipients will receive an annual cost of living adjustment of 3.2%. When I say this year, I mean this upcoming year for 2024. Well, that's a much smaller increase than the inflation fueled boosts of the past two years. Okay. And Social Security, just the administration just announced that last Thursday. So the lower adjustment reflects the fact that inflation has moderated this year. According to you know, our government recipients had received okay increases of 8.7% back in this year 2023 and then 5.9% the year before that, 2022. And so combined, those two years were the largest increases since the early 1980s. Okay. So again, 2024 and this was just announced last Thursday that it's going to be 3.2% in 2023, 8.7, right, 2022, 5.9%, which was exactly the same in 2021. And then 2020, the year of Covid, it was only 1.3%. And the funny thing there is that was actually set prior to the Covid 19 pandemic. So, you know, many, many folks, especially those at the Senior Citizens League, they remain critical and very skeptical that these cost of living adjustments accurately represent that real increases in the cost of living in the United States of America, especially for seniors who spend much more on services like health care.

Producer:
Yeah, that's very, very true. Because, you know, health care, it's such a big expense and is getting more and more expensive for everybody these days. And so if you are, you know, heavily spending a lot of your, your money, a good proportion of your money in that category, that is going to be something that is a struggle and causes your personal rate of inflation to go up much, much more. And there was actually an independent economic research group called True Flation, Mike. And you can find this folks at True deflation.com. That's true for inflation. And they've determined that the real level of inflation since January of 2020 is actually 23.9%. So nearly a quarter right of what we were, a quarter increase compared to what we were back then. So the question is, you know, are you keeping up if your income is not increasing, you know, at that pace, if it hasn't increased at that pace since then, what are you doing to try and keep up? Because that's that's tough.

Mike Zaino:
Yeah. That that is really tough I mean 23.9%. And that's on true inflation. There's another side out there I think it's called shadow stats okay. And the way that he is calculated you know the cost of inflation is actually higher than that. So you know the government changed the way they calculate it so that they can make it look a little bit more appetizing for Americans to swallow up eat up America. Yum yum. Right. But you know, the true fact of the matter is, is that 64% of all of the people who have responded to these ways and how they're adjusting their lifestyle because of inflation, 64% of them said that they are spending less on non-essential stuff. Okay. 64% also said that they're paying more attention to bargains, okay. And deals and sales that are going on trying to buy stuff when they can get more bang for the buck, because at the end of the day, if your purchasing power is increased, that is going to help you out and put your family in a much, much better situation. Matt, what do you think about 64% in, you know, the non-essentials and, you know, looking for bargains and looking for deals type of arena?

Producer:
I feel like those, you know, looking for bargains and deals, those extreme couponers. Do you remember those from a few years back that show that used to come on, people would go to like the grocery store and they'd buy what normally would cost, you know, like $500 worth of groceries. And they're like, yeah, I paid four bucks or whatever. You know, I'm like, first of all, how? Secondly, they these people are just probably having a hay day right now. Yeah. They could go to the grocery store, come back with enough paper towels to last them the rest of their life.

Mike Zaino:
Got behind one of these people in one of the few times that I actually went to the store to, my wife asked me to go and pick up some stuff, and there was only one register open and. I literally had like six things. And this woman had four carts. She literally had four carts of stuff. And I was looking at she had like 64 things of toothpaste. You know, 32 rolls of bounty. You know, the grater picker upper. You know, I mean, she had all these multiples of everything, and she must have had. I'm not lying, mat. She must have had a 6 to 7 inch thick stack of coupons. And when the when the poor cashier, you know, when she brought out those coupons, he just looked at her like, are you for real? And I think they actually owed her money. When it was all said and done, like the guy came out of his cash register and handed her money and this was like, you know, 40 minutes later, I'm teasing. But it took forever. But yeah, those extreme couponers man there, that takes some discipline for sure.

Producer:
Well, yes, it does that. And, you know, I mean, unless you are just, you know, left with a bunch of unused stuff that you bought and ended up not needing, that would be the only regret, I guess maybe that you would have in the end, because you did save a lot of money, at least. So. So there's that.

Mike Zaino:
There were a couple other stats, you know, in there that, you know, 39% of folks that that responded, 39% of them were cutting back on non-essential journeys in their vehicle. Why? Well, because gas is through the roof, right? And they did not go out for lunch or for dinner nearly as much anymore. Why? Well, because everything has gone up. The price of food, the price of supplies. So the restaurants have jacked up prices, and then a 32% use less gas and the electricity in their home. And this was kind of concerning because, you know, we live here in the Southeastern United States. And, you know, it's typically in the high 90s, low hundreds in the summertime. And if they're using less electricity for their cooling system, you know, a lot of more people are going to be exposed to heat stroke. And we're coming into the winter. And while we don't have winters like they do in Wisconsin, okay, it still gets below freezing here. So if they're using less gas to heat their home, maybe they're, you know, using wood or fireplace, which brings in some hazards there, right? Whether it's carbon monoxide or burning your house down. So I just I guess I fear for most for those seniors who are living on those fixed incomes and who may be a little bit more susceptible to heat and cold fluctuations, those are the ones that just kind of breaks my heart to see that are having to do this. And then 27% gave up on a lot of their hobbies. You know, they weren't playing golf, they weren't playing tennis, they weren't going out to the movies. They weren't doing stuff that they would normally do. That costs money because money costs more these days.

Producer:
Yeah. And does not grow on trees. And then there's that, there's that. And if gardening is your hobby or very disappointed in that, and then there is that 11%, Mike, who did not change their behavior at all. And I just have to wonder, are these just all millionaires and billionaires who just, you know, are independently wealthy and never have to worry about money because it seems like everybody, at least that I know, has had to make some sort of adjustment to make it. I know I.

Mike Zaino:
Have. I mean, we have I mean, at first when I saw the 11%, I was like, where's the decimal? It should be like 1.1% because we're talking about the one percenters, right? But no, it actually said 11% of folks didn't change their behavior, which makes me scratch my head. Their pockets must be really deep or they're sitting on an inheritance or something. So, you know, or they're just just stubborn.

Producer:
Maybe that that's another definite possibility there for a lot of people. But then, you know, I mean, we talk about, okay, the adjustments that people are making there to keep up with the pace of inflation or at least make ends meet during a time of high inflation. So, you know, that's a good question to ask. It is a, you know, an important one to ask about, you know, how are you adjusting things also maybe should ask, should you adjust your retirement plan? Is your retirement plan working for you? And because, I mean, you're going to have to make ends meet and then some in retirement because you're going to want to do the things that you're going to want to do during that time.

Mike Zaino:
Yeah, especially you know, we're talking about paying yourself first. And we've always talked about on this show as a as a tenet of financial responsibility, don't wait until the end of the month after all the bills are paid to save and invest, right? If you don't pay yourself first, you're not going to ever have enough money. But if you do pay yourself first, all your bills end up getting paid. So over the last few weeks, many of you have likely received your third quarter or Q3 statements from your 401 K, from your IRA, from your investment accounts, and you might have taken a gander and looked at that and were like, whoa, what happened? You know? And so my question to you is, are you satisfied with how your portfolio has performed for you lately and what is lately? Well, over this quarter, over this year, over the last three years especially, you know, have you heard from your financial professionals? Have you heard from your. Advisor. Lately, a lot of them aren't being very proactive right now because, you know, they don't want to have to deal with all the bad news of everybody losing money in their portfolio. Right? So that's where I got to say, you know, if you haven't heard from your professional, take advantage of our full retirement plan consultations because we provide these comprehensive consultations at no cost to our listeners as well as no obligation.

Mike Zaino:
You're only going to work with us if it's best for you. And so I can analyze your financial situation where you are currently. I can look at where you want to go, and we can determine if you stay on the path that you're on. If you're ever going to get there. We'll discover how much you're paying in fees. We can help you cut unnecessary costs. And those costs could be in your IRAs, your 401 K's, or any other type of retirement savings accounts that you have. And we're getting to that time for many of our listeners, you know, we can help you with Social Security maximization planning as well as Medicare. We already said we are right in the beginning of the annual enrollment period, and the savvy seniors are going to shop around each and every year to see if Medicare plans have changed a little bit, maybe offer you more bang for your buck. Again, bottom line, we're going to compare your current situation to what's possible if you work with us, okay? Because it is your money. And if it's important to you, it's important to me.

Producer:
Yeah, 100%. You can contact Mike for that free consultation by going to MoneyMattersWithMike.com. That's MoneyMattersWithMike.com. Or give him a call at (704) 560-1573. That number once again is 704560 1573.

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

Producer:
So Mike, we talked about a lot of prices going up everywhere. You know, we're paying more for just about everything. I got to say though, this one kind of hurts, especially if you're if you're like me, you got a little bit of a sweet tooth a little bit. He says. Girl Scout cookies are going to cost 20% more in the coming months. I feel the tears welling in my eyes right now. I'm not going to be able to afford as many of them as I have been.

Mike Zaino:
No, I mean your favorite Girl Scout cookies, right? They used to sell for $5. They're going to cost $6 in many parts of the United States. And the reason that all of these regional councils are raising the price of their popular cookies is to help cover the rising costs at the two commercial bakeries that make the treats. And so many cookie lovers are surprised that their Thin Mint purchasing power is thinner than it used to be. And so a $20 bill that used to buy four boxes of cookies now is only going to cover three boxes of cookies and give you a couple dollars left over. And that's huge when you consider the fact that nationally, okay, Girl Scouts, they sell about 200 million boxes of cookies each and every single year. And that is more than my beloved Oreos. Even though Girl Scout cookies are only on sale just for a few months of the year, typically between January and April. Boy.

Producer:
Sort of feel like now. Now I know why McDonald's only brings back the McRib every so often. You know, it's like we're bringing it out of the vault. Everybody buy it. Yeah, exactly.

Mike Zaino:
Make people go nuts for Girl Scout cookies. I mean.

Producer:
Absolutely.

Mike Zaino:
When we're talking about what's your favorite?

Producer:
Oh, gosh. So I would have to say it's either between the, the tagalongs. Right. It's like peanut butter and chocolate or the Thin Mints. For some reason, I like the mint and chocolate combo. Like my favorite ice cream is mint chocolate chip for some reason. I love that, but I also love peanut butter and chocolate. So it's kind of like, you give me either one of those and I'm I'm a happy guy.

Mike Zaino:
Yeah. No doubt. And, you know, I was asked the other day, you know, what is your favorite Girl Scout cookie? And I thought about it for a second and I said yes. And he kind of looked at me strangely. I'm like, don't care if it's Thin Mints, if it's Samoas, if it's Tagalongs, if it's, you know, the Dosey Doe's, if it's the the lemon ups, you know that they have I love cookies. That's probably the reason that I weigh what I weigh. And if I could just cut out cookies. I'm not a big pie eater or cake eater. I like cookies and I like ice cream. And that is what, you know, puts the weights on the weight, I should say, on my on my waistline.

Producer:
I'm right there. I'm a fan of the cookies. You're also also give me some some ice cream, but I will also go for some cake and some pie. You know, this is why I tend to guess everybody's this way to at least to some extent. But I tend to put on a lot around the holidays because my mom, of course, every year cooks all of my favorite desserts. And it's just, just it's a happy time. But then after that I'm like, why don't my clothes fit? Oh yeah, that's why. But and then, you know, of course, now if you go to buy those Girl Scout cookies, your wallet is going to be just a little bit lighter.

Mike Zaino:
And I love putting the Thin Mints in the freezer.

Producer:
Oh, yeah. See, that's a good that's a good thing too. It just muddy.

Mike Zaino:
And then I'll eat a sleeve at a time. Yeah, that's the bad thing because it's like a Lay's potato chip. You can't eat just one.

Producer:
Oh it's true, I used to sit down back when I had a metabolism. I would sit down and eat just a bag of Lay's potato chips in a sitting and and drink sweet tea at the same time. Yeah. And and then I couldn't eat. You know, I was in my early 20s back then. Then suddenly I started not being able to just eat whatever.

Mike Zaino:
It's funny how that happens. Yes it is. Catches up with everyone.

Producer:
Exactly. You reach a certain age and it happens. Well, but you know, Mike, with prices going up, I feel like, you know, everywhere, as we've talked about, people are looking for maybe some different ways to get some of that money back. Right? I mean, it's it's a struggle and there's something that you have have come upon here that I think people might be interested in at least hearing about or exploring because it's it sounds like a neat thing.

Mike Zaino:
So, so, yes, Matt, and you alluded to this at the very, very beginning of the show when we talked about rewards. Right? And so if you're driving right now, I want you to stop, like I want you to pull off to the side of the road, okay? If you're shopping right now and listening to me on earbuds, just stop for a second. Whatever you are doing, please pay attention to this next segment. It is that important and I feel that passionately about it because, you know, this whole. The goal of the show is to give you guys information, right? It's to help you make better decisions. So every once in a while, there comes along what is known as a disruptor. Okay, I want you to think about it Amazon. Uber, Netflix. They all disrupted an industry. Okay. And next month the banking industry is going to be disrupted as well. I found out about a visa rewards card last week that absolutely blew my mind. So I'm just going to ask you for a second. You may have a rewards card in your wallet that you use and you get points for travel, or you may get some cash back that they send you on a whenever you ask for it basis. But what's the biggest reward you have ever heard of? Matt? On a on a credit or debit card?

Producer:
I mean, most of the time I feel like I hear about, you know, you get the most common anyways, like probably 1% cash back or something like that. I've heard of, at least back when I had a different credit card a few years ago. Certain categories you could get up to like 5% cash back, that kind of thing. I feel like that sort of the top, at least that I've heard of or experienced in my life.

Mike Zaino:
I mean, so I have, you know, we have a I think it's a venture card that that gives us points for travel, you know, and we can, you know, if we take a flight, we can literally just write that flight off and it disappears off of our off of our bill, which is pretty cool. Um, my business uses a spark card where I get 2% cash back on anything that I spend. Right? So, I mean, I think that's a pretty good deal. But like you, the biggest reward that I've ever heard of is on 5%. And it's typically on like rotating categories. Right. Which drives you nuts because you got to be on top of all of the different categories and what gives what and when they give it. Right. And it might not line up with when you need to purchase whatever it is that you needed to purchase. Folks, this visa rewards card, you may need to like, wear a chin strap to hold your chin to it up into your mouth so that your jaw does not hit the floor. This card is going to give 100% in rewards. In other words, if you spend $100 on an electricity bill, they are going to give you $100 in what are called Z bucks. And they didn't name it after Mike Zaino. You know, I kind of like it because it sounds like they did. But you know, Z bucks. Now what are Z bucks? Well, $1 equals one buck and they have an online store that is, you know, got over 380 major brands that you actually would want to purchase. They've designed this store and are continually adding to it with over 1.2 so far million products. Okay. That you can then go and use your Z bucks for and literally double your purchasing power. Matt, what do you think about that?

Producer:
I mean, that sounds amazing. And it's, you know. Well, it's one of those situations where I feel like, you know, a lot of people might be saying to themselves, well, that sounds great. It also sounds like it's possibly too good to be true. You know, I mean, but it's like, is there a like, what's the catch? Is there a catch to this? You know? So it sounds like it's great, but but is there some kind of catch to it or something that people will have to worry about?

Mike Zaino:
Right. So first off, I will tell you that there is a cost for the card. The cost of the card is a whopping $25. Okay. And there's an annual fee. Actually, I think it's a monthly fee of like $4 and 90 something cents. So call it rounded up to five. Call it 60 bucks a year. However, because they are in pre-launch right now, anyone who signs up for the card gets it for free. They are going to rebate the $25 back to you and your annual fee will be waived for life, so it literally costs you nothing. So imagine that when you go out and you fill your tank up with gas, whether you spend 50 bucks, 70 bucks or 100 bucks, they're going to deposit 50, 70 or $100 into your Xbox account. And then you decide to take, you know, your buddy out or your spouse out to dinner, and you spend, you know, another 50 to $100 on a dinner, and then you get another 50 to $100 added to your Xbox account. And then you have to pay your Netflix subscription, your Hulu subscription, your Spotify subscription. And then every time you use that card, they're going to add more bucks to your account. Then you go on to the on to the club store, and you are able to purchase things from Nike, purchase things from Lululemon, purchase things from The gap from Banana Republic.

Mike Zaino:
You can buy Mizuno golf clubs. Like I've looked at their store and it's growing every single day. So as a consumer, the ability to double your purchasing power. Think about the single moms out there or the mothers that have multiple children who are going through diapers, you know, literally one right after the other. Now diapers have gone through the roof, okay. And the last time I happened to just pass through, you know, I don't have diaper aged children, but I look through and Pampers were like 60 bucks and I was like, Holy cow. Well, now you can use your Xbox and buy the Pampers for $30. You know, that is going to help people. How about the seniors who are living on a fixed income that you know they have to buy stuff at CVS or they have to buy stuff at, you know, Walmart, and now they can get it literally at half price when they use their Xbox and they can shop it every place else. They can go to Amazon and look how much it is there. They can look how much it is on Walmart. And they will see the exact same product in the Z club store.

Mike Zaino:
Except now by using their Xbox, they get it half off. I mean, I've never seen anything like it. And so what makes me really excited is that this is being backed by the FDIC. That's the Federal Deposit Insurance Commission, okay? They're not just going to back anything. Visa is got their name on it. So that's a pretty well known company right. And by the way, the card will be used you know accepted anywhere that visa is accepted. And then you've got some pretty major star power behind it as well. Everybody from the Republican National Convention to the Democratic National Convention or convention, that was a Freudian slip to former President Obama, to Lady Gaga, LeBron James, Garth Brooks, I mean, huge star power behind this. Now that says a consumer. So everybody think for a second. You know, if I go out and all I have to do is change the plastic that I swipe in my hand, right. Nothing else changes. I don't have to buy anything that I wouldn't normally buy. I don't have to stock anything that I wouldn't normally stock. Right. The only thing that changes is the plastic that I'm using to purchase it with. So as a consumer, that's a pretty good deal.

Producer:
It shows me how people should be treated by financial institutions. Now instead of being charged more fees, instead of being, you know, really put through the if you don't maintain a minimum balance of so and such in your account, we're going to charge you this fee every month. If you don't swipe your card often enough, if you don't do this, if you don't do that, that is just, you know, the big banks probably need to take notice. I feel like.

Mike Zaino:
Right. So you guys are hearing this first from Mike Zaino from The Money Matters with Mike radio show, because I do, in my heart of hearts, believe that this is going to be huge because it's a positive social impact approach to banking. We're not talking about the big institutions. We're putting the power back in the people's hands. And so this launches officially on November the 13th. There's a huge kickoff in Las Vegas for two days. They're going to be kicking this card off. And as a consumer, anybody who gets in prior to the end of this month. So we've got another two weeks. Basically they're going to not only waive your annual fee and rebate your $25, but for the first year only they're going to double your Xbox Rewards. So for every $1 you spend, you're going to get $2 to spend in the club store. Now, I mean, Matt, I don't know about you, but that is and has the potential to be a huge social buzz, right? Because in three months from now, when people start talking about everything that they're able to purchase and how much it's saving them overall to help combat the rising cost of living, it is going to grow exponentially. Then, six months down the road, then nine months down the road, I'm guessing that there will be over. I'm going to conservatively say a million card users, okay, by the end of the year of this year.

Mike Zaino:
And then that and that's going to be within two months of them launching this. Now that's as a consumer, we have also on this show talked about, you know, side gigs and the ability to generate some extra income. They are offering the ability to almost buy a franchise okay. It's called a digital branch office. And they're offering that for just under $500, $495. And you can sign people up to use that card. Okay. And again, you're not trying to convince people to do anything that you wouldn't already do. And then anybody who is in your branch, you actually will earn a percentage every time they swipe their card. So if they go out and play golf, if they take their wife to the movies, if if they pay for their water bill, every time they do that, you're going to earn basis points, which are very fractional pieces of pennies. But over time, that adds up and could build an extreme residual income in years to come. So again, that is something to be cognizant of. Be aware of it. If this is something that interests you, you need to reach out to me, because as soon as I heard about it, I'm like, this is an absolute no brainer. And I signed up in full disclosure as a digital branch office. Because you know what? I know a lot of people who use plastic.

Producer:
Yeah, I mean, we all do pretty much these days. Can't tell you how many businesses I go into. And it's like, you know, they're cashless cards only. And so it's like the only option, by the way, it's like, right. But what happened to the good old greenback, you know. But still I mean, it's so many places are that way. And, and you know, I mean, so literally everywhere you could be reaping literally reaping those rewards of just swiping a different card.

Mike Zaino:
Yeah. And like I said, if you guys are interested in this, reach out 704 5601573. Go to Money Matters with Mike. Send me a note that just says Visa Rewards card and I'll let you guys know all about it. Trust me. Yeah, there you go.

Producer:
I mean, it's really, really sounds like something that could be a great, great thing for many different people, if you like money and and most people I know do well. And if you don't like parting ways with, with your money, Mike, then this next part of the show is for you. Because, you know, seniors, when you reach a particular age, used to be 72. Now it's 73. Because of the secure act 2.0, you have to take a required minimum distribution from certain retirement accounts, right, IRA for example. Yeah. So a lot of people don't maybe necessarily think about it if they're, you know, of that age right now, maybe it's their first time having to do this. Maybe they're a couple years away and they didn't know that it was something that was coming up. But it is. So if you have if that is you if you have turned 73 this year, this calendar year, by December 31st, you got to take a required minimum distribution. And that is, you know, not not fun because the IRS wants their money and they want it from you.

Mike Zaino:
They do. And the big the big takeaway is that if you miss that deadline, it is the single largest penalty in the IRS arsenal. It used to be 50%, but they have cut that in half to 25%. So you're penalized 25% if you don't take the amount that you should have taken. So that is huge right there.

Producer:
Yeah. Absolutely is. And so you know you have to take. As we say that RMD required minimum distribution by December 31st. And don't forget, this is the entire reason it is taxable as we said. There's one exception though. When you turn now the age of 73, you have until April 1st of the following year to take the RMD and pay taxes on it. But Mike, it's not quite as good of a deal as it sounds, right?

Mike Zaino:
It's not because, you know, first off, they chose April 1st, right? April Fool's Day. Okay. To slip it in there a couple of weeks before traditional tax day of April 15th. But you know, when you have to take that RMD, they're going to give you a three month grace period. If you have to take it in the same year. Okay. They would give people that Congress determined they would give people that three month grace period to get their first RMD. But then again, you'll also have to make another one by December 31st of that same year, which in effect has two RMDs coming out in one year and could possibly push you into a higher tax bracket. So you have to be very, very careful about the, you know, when you take your RMD. So we just tell people, look, the year you turn 73, make sure you're taking your first one. That way you don't have to worry about getting caught with two in the same year. But there's even more benefit for those who are listening to the show. Because if you want to say goodbye to your required minimum distributions, if you want to kick the IRS out of your retirement plan, we can help you do that by implementing a Roth conversion. So tax free withdrawals. Let's talk about those Roth IRA contributions are made with after tax dollars. So therefore anything that money gains okay. And any time you take money out they're all tax free in retirement which gives you flexibility because unlike a regular traditional IRA, you are no longer required to take minimum distributions. Why? Because you've already paid the tax on the seed money that you've converted into the Roth right. And that gives you some tax diversity, because doing a Roth conversion provides you the ability to diversify your tax liabilities. So it gives you access basically to both free as well as taxable sources of income in retirement.

Producer:
And that's really what it is all about is about retirement income, not necessarily one big nest egg number. And you'll want as much of that to be tax free as possible, so you can keep more of your own hard earned money in those retirement years. And a good thing to do, folks, if you want to learn more about this and how to get rid of the IRS as your partner in retirement, go to MoneyMattersWithMike.com or call 704 5601573. Of course you can talk to Mike about that. He'll be glad to to talk you through it. Do that full consultation for you as well. Or he can also provide you with a free report that we have prepared for you, called tax Free Investments for a Better Retirement. A lot of great detailed information in there, as well as some tips for getting started. So once again, schedule that consultation and talk to Mike about it. MoneyMattersWithMike.com is the place to go or call 704 5601573. Well, you know, Mike, I guess one other thing to remind people about before we we go on and talk about our, our orphans, our poor little, poor little pitiful orphans that we're going to talk about here in a minute, is that both Roth IRAs, which we just talked about tax free, as you as you described in retirement, when you take those distributions from your Roth IRA, that is tax free. Also, life insurance is tax free as well. On on those any distributions payouts from that the death benefit or whatever. You can take tax free loans on certain types of accounts in retirement. And that can be a source of income for you. Those are really the only two types though. So it's only two types, right? It's not like there are a bunch of free investments.

Mike Zaino:
Yeah.

Producer:
I mean, a lot of people will say, well, aren't municipal bonds tax free? Some, you know, some on the surface appear to be, but no, not really. So yeah, it's those are the only two. So they're the only two options that you have. And people need to explore the options within those options because your options have options here.

Mike Zaino:
That's a good thing. We don't want to have zero options. Options. Options provide you with flexibility and choice. And at the end of the day, if I'm going to have choices, that just puts me in a much better position than if. I don't have any whatsoever.

Producer:
That's right. And to navigate those choices, I know a guy who can help you. His name is Mike Zaino, and you can go to MoneyMattersWithMike.com for help with that navigation. He'll, you know, be the be the navigator. You can you can still captain the ship, but he will be your navigator telling you where to go along the way. All right.

Mike Zaino:
No doubt about it. I will help you get where you need to go. Matt, just a minute ago, you talked about orphans and know I'm like. We're not talking little Orphan Annie here, are we?

Producer:
No, I'm not going to sing a chorus of Tomorrow or anything like that. Although, could, you know, then we'd have to pay the rights for the song and all that. But orphaned 401 seconds are a thing, and people might say, okay, well, what in the world does that mean? But, Mike, you know that this probably happens more often than we would realize.

Mike Zaino:
It does. And it used to be, think about this, guys and gals. It used to be that when people went to work for a company, they worked there for 20 to 30 years, right? The company took care of them and they got this gold watch and a and, you know, and a nice big severance upon retirement. The fact of the matter is, it's just not that way anymore. And according to at least the statistic that I read and I read this a couple of years ago, the average person back then was changing jobs not once or twice, not 3 or 4 times, but seven times during their career. And I'm thinking to myself, Holy cow, right. So you might have an orphaned 401 K if you work for a company for a year or two, or for 3 or 4 years and then left. Okay, many people neglect to roll over those funds from their previous employer's retirement plan, and that's why we call it the stray 401 K or the orphaned 401 K, and sometimes it's a 403 B, and sometimes it's 457. And if you're a federal employee, you may have a thrift savings plan. Well, savvy Pre-retirees threes and retirees take the funds from previous employer's retirement plans, and they roll it over into an IRA that provides them with more investment options and lower fees.

Mike Zaino:
Think about this for a second. If you've moved in your lifetime right, you would not leave your vehicle parked in the garage of the house that you no longer own. You take it with you so you can even establish a personal pension by purchasing an annuity with these types of funds so that you're not setting it and forgetting it, you're setting it and setting yourself up for income, for life. That's the personal pension strategy. And we help people manage their hard earned and more importantly, hard saved money in a much more efficient way that'll fit their needs a heck of a lot more than hoping and praying. Because we've talked before, hope is not a strategy. So if you want your own customized retirement plan and you want it today, you don't want it tomorrow, you don't want it next year, you're not going to wait, right? You're a person of action. Reach out 704 5601573 or go to Money Matters with Mike all spelled out.com.

Producer:
So as we mentioned Mike earlier on in the show, we started off with a reminder that Medicare's annual enrollment period is upon us. Unfortunately, that also means that scammers are out there trying to make folks, you know, part ways with their hard earned money. It's an unfortunate truth, but it's the truth.

Mike Zaino:
It is. Unfortunately, there are people out there with mal intent. So you have to be very, very aware of unsolicited contacts, right? People who are going to call you, people who are going to email you. Believe it or not, there are people who are going door to door offering Medicare related services. You got to be aware of them. Okay? And please, whatever you do, do not share your personal or your Medicare information with anybody who contacts you first, okay? You need to do your own diligence and be your own best advocate. Research all of the plants, okay? Everybody who's on Medicare gets a red, white and blue card. That's your Medicare card. You want to protect that at all costs okay. Keep it secure. Avoid avoid sharing your Medicare number. And, you know, Medicare cards. The good thing about them is they no longer display Social Security numbers. And they did that to enhance security. Okay, here's the thing. You guys need to fall into the trust but verify, you know, mentality. Regularly review your Medicare statements so that you can see if there's any discrepancies on or charges rather that. You don't recognize because sometimes you know what Billers and the billing department, they make errors. They could double bill you for something. Any time you see something show up that you know you didn't have, well, that could be potential Medicare fraud. And so you need to report that to your state seniors Medicare patrol if you do report it.

Producer:
I want to just reemphasize the importance of reporting those incidents. If you do experience one, because then that hopefully will prevent other people from being taken advantage of as well. Yes, yes. All right. Mike. Well, looking at the old clock here, it looks like it is just about time for us to wrap up. The show has gone by at lightning speed this time around, but thank you for everything that you do for all of our listeners every week. And we'll talk. Catch you next time, sir.

Mike Zaino:
And Matt, thank you for everything you bring to the show. We couldn't do this show in the format that we do it without your production ability. So more importantly, most importantly, thank you to each one of our listeners without you guys, we don't have a show and therefore do not exist. So thank you for tuning in each and every single week religiously at 9 a.m. on the local radio station at WRI, and anywhere else that you may be listening across the globe. So whatever you're doing this weekend, I hope you enjoy it to the fullest of its extent 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 704 560 1573 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:
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.

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