How to Build a Smart Retirement Plan for Your Future

12.8.23: Audio automatically transcribed by Sonix

12.8.23: 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 today we are absolutely bringing the heat again. On today's show, we're going to teach you how to build a smart retirement plan for 2024 and beyond. And as always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matt, how are you doing today, sir?

Producer:
Hey there Mike, I am doing great, sir. Uh, it has been getting cold here in, uh, in Georgia. I mean, it is December. I guess I shouldn't be too surprised, but, uh, yeah, I've come in from the cold and, uh. And for a good reason. And that is to be with you here on Money Matters With Mike. So I'm. I'm a happy guy at the moment.

Mike Zaino:
Yeah, it's it's a little chilly here. It's actually, you know, today is, is, is a little bit warm, but it's a little bit gloomy out. It's going to rain tomorrow. And so I decided to wear a little bit bright colors because to try to get myself out of, out of mourning, because my bulldog's, uh, succumbed to the Alabama Crimson Tide last week. Uh, kudos to all the tide fans out there. I really feel bad for all the Florida State fans out there, but, uh, you know, I'm I'm just looking for a good, uh, football postseason without my dogs. And, uh, looking forward to to to the 12 team playoff next year.

Producer:
You and me both, because, uh, obviously they would be, uh, in it, you know, if that were the case this season. But yeah. Boy, what a tough, tough loss. And like they do pretty much. And like they have all season long I feel like the second half for the dogs this past, uh, time around was much stronger than the first half of the game. And they almost, almost came back from behind to to beat Alabama, but just fell three points shy. Yeah.

Mike Zaino:
You can't you can't give a fumble up right there on the goal line. And and then Doink a 50 yard field goal off off of the uh upright and expect to win against Alabama. Just can't do it. Yeah.

Producer:
It's you can't bank mistakes like that. Absolutely. Well we're going to try and help listeners avoid financial mistakes today here on the show. And uh, hopefully some retirement planning mistakes that you can avoid as well. We got a lot to get to here over this next hour. Um, first, though, we want to remind you folks that you can always find the show past episodes. Uh, information. Get in contact with Mike. You can do all of that. Actually, several ways. The best, easiest way. And the easiest to remember is to just go to the website, which is MoneyMattersWithMike.com. That's Money Matters With Mike. That's the name of the show after all. Dot com. And then uh, also you can call Mike at 70456015737045601573. Get a pen out, get your cell phone out, whatever you need to do, because we'll, uh, get that number to you a few more times over the course of the show here. And, uh, of course, you can follow us on Facebook. Uh, Mike's very active there and interacting with folks. Our YouTube channel, uh, has all kinds of highlights from the show. Uh, you can also find the show as a podcast anywhere you listen to podcasts out there. Basically, as as we like to say around here, if you can't find us, you're just not looking. And, uh, you know, maybe you need to get some, some new glasses or something because we're out there.

Mike Zaino:
Come out from under the rock.

Producer:
That's right. Where have you been? Um, well, so also, you know, as we're getting in closer to the end of the year, you know, this, this past week, uh, we had the end of the annual enrollment period for Medicare. So that has been a busy time. I know for anybody who is Medicare eligible and of course, all of the the agents and folks that that help them out. Still, though, until the end of the year, that is the time period that you have. If you are of a certain age and you have a qualified plan, retirement plan, you've got to take a required minimum distribution. They're not fun, but they can be slightly less irritating if you work with a pro and I, as I say, happen to know a guy. Mike Zaino.

Mike Zaino:
Yeah, there is no doubt that, uh, those can be slightly irritating. Nobody likes having to pay taxes. On the money that you've earmarked for retirement. But you have to remember, if you've deferred those taxes because you're in a traditional 401 K or 403 B or TSP or IRA, or any of the other numerous vehicles that are available to savers out there, um, for retirement as you approach the end of the year, December 31st is the deadline for claiming those taxes. If you don't claim the right amount. This is the largest penalty in the IRS's arsenal. It's a 25% penalty. It used to be 50%, but it's 25%. So you know, missing the deadline could result in significant penalties. So be sure to mark your calendars and prioritize this important financial task before it is too late. And as a side note, we do this proactively with all of our clients to help them plan any annual distributions in an efficient manner. And just to remind folks, RMDs from employer based retirement plans and those traditional IRAs. All right. If you are 73 or older, that's been changed. It used to be 70.5. Then it was changed to 72 and it is now 73. So if you're going to be 73, um, before December 31st, you owe those taxes.

Producer:
Yeah, that is absolutely right. And not that anybody enjoys it, as you say, Mike, but it's something that's got to be done. And so just be aware of that and be aware of that before the end of the year. Um, a lot to come. As I mentioned on today's show, the Smart Retirement Plan, we're going to go through some of the aspects of that, including smart inspection and uncovering the truth about your retirement savings, what you have right now. Also a smart vision. We'll talk about smart, safe strategies for your retirement as well. Also, we're going to cover one of my favorite sort of yearly things. Now we've you know, PNC has been doing this, uh, report for like 40 years. We haven't been covering it as long because, you know, we've this is only our second holiday season on the air here, but, um, I love doing this. Now, every year it's become an annual tradition. Uh, it's pnc's annual CPI, which is the Christmas price index. And, uh, that's how they measure inflation in kind of a fun way, uh, through the items that are given as gifts in the 12 days of Christmas. So there's that and it's going to be it's going to be fun. You might be surprised about a couple of them too, especially one that is everyone's favorite to sing the five gold rings, uh, part. So we'll get there. You'll see what we're talking about. And then eight ways baby boomers run out of money. All that much more to come here on the show. But first, let's kick things off with our quote of the week.

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

Producer:
And a familiar person said this one time in our words of wisdom for this week, Warren Buffett's The Oracle of Omaha. Uh, the man who unfortunately just lost, um, his business partner, his longtime business partner there at Berkshire Hathaway not long ago. But Warren Buffett is still going strong here. And he said this. The most important thing to do if you find yourself in a hole is to stop digging.

Mike Zaino:
That is, uh, very profound by by Warren Buffett, you know, so I'm going to I'm going to concentrate today's meat on the bone segment on that portion of, uh, his quote.

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

Mike Zaino:
His quote suggests that if you realize that you are not adequately prepared, or if you are, uh, facing financial challenges, it is crucial to halt any actions that might exacerbate the situation. So I have a few, uh, examples to help illustrate the concept when we're talking about the context of planning for retirement. So the first one would be excessive spending. All right. If you find yourself in a situation that you're spending more than you should, you're accumulating debt and you're not saving for retirement. Guess what? This quote, uh, suggests that the first step is to stop unnecessary spending, cut back on those expenses, and actually create a budget that enables you to redirect funds towards retirement savings. Okay. If, uh, there's another situation you might find yourself in, you're taking on more risk within your investment portfolio then the, you know, the situation would be you've invested in high risk assets hoping for quick returns, right? Get rich quick schemes if you will. But the market is not favorable and your portfolio is actually suffering. Kind of like a lot of folks got themselves into last year. That situation or that solution, I should say, would be instead of taking more risk on okay or making impulsive investment decisions, the quote advises you to stop, uh, further investing in those riskier type assets. So you might want to reevaluate your investment strategy and you might want to seek more stable options. Okay. Um, a lot of folks, especially over the past few years, and we're going to talk about inflation later on in the show. You've delayed your savings. So if you start to realize that you haven't saved enough for retirement in the years, time is slipping away. I think there was a song Time Keeps on slippin, slippin, slippin right into the future. Um, again, don't, uh, don't judge me, guys. On my singing, please.

Producer:
That's pretty good, actually.

Mike Zaino:
Yeah. The quote implies that procrastination will only make the situation worse. Okay, that crucial step right there that you can take is to start. Okay? Stop delaying. Start saving immediately, even if the contributions are small, because time is your most valuable asset when talking about retirement planning. And the sooner you start, the better off you're going to be. Okay. Um. Another one ignoring financial planning altogether. Okay, you might not have created a comprehensive financial plan for your retirement, and that can cause uncertainty about your financial future. Well, the solution is instead of avoiding the issue altogether, you know, his quote suggests stopping the ignorance. Take the time to assess your financial situation, set some clear retirement goals, and then create a plan that includes both saving, investing, as well as creating multiple income streams. Okay, and speaking of income streams, there are a lot of folks that listen, uh, who are planning on relying solely on Social Security. And so if you haven't saved that much for retirement and you're counting on Social Security benefits as your savior, uh, um, the solution might be quickly recognizing the inadequacy of relying only on the Social Security system. Um, so consider contributing to a retirement account like a 401 K, or starting your own IRA just to help supplement your income in retirement. So, in essence, Buffett's quote emphasizes the importance of taking proactive stances when it comes to retirement planning. So if you find yourself falling short, the key is to stop any detrimental actions, um, and make positive changes to secure a more financial, uh, stable financial future. Uh, for yourself. Yeah.

Producer:
And you know, as, uh. We've said before, and I'm paraphrasing this here, but like, you know, the best time to start financial planning was was what, 20 years ago? But the but the second best time is now. Um, like it's it's always the right time. If you haven't started taking action, if you haven't started doing those proactive things that you're talking about, do it now because it will be to your detriment if you don't. Um, and you have like, you know, you have the knowledge, you've got the inspiration to do it by listening to this show, you know, for example, you've become educated about things to do, and you don't do that. That will be to your detriment. Because one of the things that we talk about is time horizon, right? You know that from doing financial planning for folks for, for years. And the longer you live, basically the shorter your time horizon gets, the, the shorter period of time you have to plan and to make adjustments and to take those actions. So do it now. Why not?

Mike Zaino:
No doubt about it, it is never too early. It is never too late. And it is never too often to plan your retirement.

Producer:
Yeah, absolutely. So great stuff there. And, um, you know, as we continue on here and move to the Smart Retirement Plan series that we're going to talk about, that's a big chunk of what this really is. But being smart about your retirement planning, it's it's about taking action and it's about knowing what actions to take. Um, and really, you know, it's it's super important to get, uh, you know, a smart retirement plan, not just any old retirement plan, but a smart retirement plan in your, um, in your, you know, wheelhouse, in your repertoire, in your, uh, in, in your whatever, um, in your life. Just have it in your life. That's why words are hard. The the the thesaurus in my brain just couldn't flip the pages fast enough there. But anyway, you get you get the gist, I.

Mike Zaino:
Get it, I get it. And and a lot of people, we say the word smart a lot. Right. And and you may be thinking, well, why do they keep repeating the word smart? Well, the word smart in the way that we use it is actually an acronym. And the smart, the S stands for specific. The M stands for measurable. The A stands for achievable, the R stands for relevant, and the T stands for time bound. So when we say smart planning and smart risk and smart inspection and all the smart stuff that we say we're talking about specific, measurable, achievable, relevant, and time bound um, plans that that you can absolutely count on and take with you, uh, with confidence. Yeah.

Producer:
Definitely. So and, and it's a great way to sort of break that down, um, so that people can sort of get, oh, it's not just a word they're using. Um, which, you know, for me, apparently that's difficult today anyway. But, um, you know, it is super important, though, for people to have a plan like that. Something that is a smart plan. As you just mentioned, 75 million Americans, mostly baby boomers, expected to retire by the year 2030. What we're in right now is, is being called the great retirement. You know, we just we we went through the Great Recession not that many years ago. Um, this is much more enjoyable time for those of you who are retiring. Uh, these days, it's the great retirement. And and so many people listening are preparing to leave the workplace and start the next chapter of their lives. Mike.

Mike Zaino:
Yeah, they are, in fact, you know, a study from Fidelity Investments, uh, you know, found that 1 in 4 Americans are absolutely less confident about retirement now than they were before the events of the Covid 19 pandemic. And that just stands to reason, right? I mean, Covid and the the world shutting down for the length of time that it did, that caused a lot of uncertainty for a lot of people in a lot of different areas for sure. Right?

Producer:
Yeah, it absolutely did.

Producer:
It upended everybody's lives. And so it does stand to reason. Um, and also, you know, 71% of Americans very concerned about the impact of inflation on their retirement preparedness. That stands to reason as well, due to, well, the fact that our wallets are lighter these days.

Mike Zaino:
There is no doubt about it. If you had, you know, an inflation protection plan in place, you likely planned for a 3%, maybe a 4% hedge. Okay. And when inflation hit, you know, 9.1%, uh, in 2022, that can quickly derail even the best laid out plans that were laid out to combat a normal inflationary period. In fact, 31%, according to the fidelity survey, uh, 31% of Americans, they don't know how to make sure that their retirement savings actually can keep up with the rising cost of living. And so, you know, that's something. That we on the show take to heart and do our absolute best to educate our listeners on exactly how to have confidence in their plan, and to make sure that their hedge against inflation is indeed just that.

Producer:
Yeah, absolutely. So and, you know, with so many people not knowing how to make sure that their retirement savings keep up, that is one of the the main reasons that we go through this smart retirement plan, um, with our listeners here, Mike. And and the first step that we talk about with a smart retirement plan is I like to think of it like the like a financial GPS, right? You get in the car you go to to go somewhere. If you've never been there before, unless it's, you know, you're going to the store that you go to every week or whatever that you know. But if you're setting a new destination, that's what it is. That's what kind of what it's like when you're talking about a smart vision, setting your destination in your GPS because you've got to know where you're going.

Mike Zaino:
Yes. And again, smart, specific, measurable, achievable, relevant and time bound. So some questions that you might want to ponder before you even start planning uh retiring or you're planning your retirement is number one, you know, what are you doing during your retirement years? Um, who are you doing it with? I mean, are you doing it by yourself? Are you trying to enjoy it with a significant other, with friends, with extended family? Are you taking care of anyone? Is that a person? Is that a pet? Right? Do you have any specific goals that you would like to have accomplished? Do you want to retire, or do you maybe want to relaunch and create, um, a business in retirement and turn a hobby into something profitable? And, and I think the bottom line is, is how are you going to fund all of it? Okay. So we encourage all of our listeners, all of our, um, clients to sit down with their spouse or their family or their significant others or their friends and really think about what their goals are for retirement. And this will help determine how fiscally smart you need to be now, today, in order to be able to do what you want to do during your retirement. And then it'll help us help develop a winning plan to get you there. So remember, folks, retirement looks different for every single listener in listener land. Okay, there are no two situations that are the same, but regardless of whether you want to travel, regardless of whether you want to spend time with family, start a new business, or pick up some new hobbies, or just sit on the back porch sipping lemonade and watching the grand youngins play. It's going to. You're going to need an adequate cash flow to fund your expenses and achieve your goals.

Producer:
Yeah, absolutely right. It's got to be you said specific and, you know, measurable, achievable, relevant and time bound. Those are all of the letters in smart. And that is what we continue to talk about. We'll keep bringing those up because those are good to highlight here. Um but yeah I mean if you want a smart vision for your retirement, if you don't necessarily have one, you know, if you if Mike asked you those questions a couple of minutes ago and you said, well, you know, okay, I might know the answer to 1 or 2 of them, but maybe not all. It's time to sit down and think about that. And I would suggest that you sit down. You think about that with Mike Zaino. Uh, you go to Money Matters With Mike comm. Click on the contact page there. Set up an appointment with Mike. It's an initial conversation at first where it's just kind of a getting to know you sort of discovery call very quick thing. And then you'll go in depth with Mike. After that it is all free of charge. Um, until you decide if you want to work together or not. And it is a mutual decision as well on that. On that score. (704) 560-1573. You can also reach out to Mike via the the old phone that he keeps in his pocket at all times. MoneyMattersWithMike.com once again is the website folks. It's a no obligation consultation. So really absolutely nothing for you to lose there. Um okay so then that by, you know, saying, okay, you're going to get in touch with Mike, you're going to have him take a look at everything that really Mike is a is a smart inspection of your retirement plan or your lack of one, whatever the case may be.

Mike Zaino:
Again. Smart inspections smart, specific, measurable, achievable, relevant and time bound. So you want to know what we do for every single one of our listeners who reaches out to us and all of the clients that we serve. Okay. And it's not just here in the, in the, uh, the Charlotte metro area. I have clients almost in all 50 states. Okay. So number one, we're going to review all of your accounts. If you have an IRA, if you have a 401 K, a thrift savings plan anywhere that you hold assets including cash. So if you have a Raymond James and, uh, an Edward Jones account, you know, some form of Charles Schwab or Merrill Lynch, any of that, we're going to look at all of that and assess your current account balances. We're going to assess your current fee structures. And we're, you know, going to ask the questions. You know, how much have you been able to save for retirement? What are you currently paying in fees for the management of those funds. And many people that we work with, they're often surprised by the fees that they're currently paying because, you know, there is a a line item that says fees. But what a lot of folks don't know because they don't know how to read the prospectuses that get sent to them, is that each of the mutual funds that they are in are laden with their own fees.

Mike Zaino:
So when we start totaling up the fees and we find that most people are paying between 4 and 5, 5.5%, they are shocked at how much that they are actually paying. When we'll review all of your rates of return over the past 12 months, we can go back three years. We can go back five years and determine the answer to this particular question. Do you have an income gap in retirement or might you have an income surplus? And when we're talking about the difference between a gap and a surplus, trust me, the surplus is better. You do not want to have more months than money okay. We can also do an X ray. And what do I mean by an x ray? We'll look through any pension plan or any type of annuity that you may have. And we can determine the best personal pension options. And words are hard for me today, too. Apparently, personal pension options that are currently available to protect your hard earned savings. Um, you might actually have a tax problem.

Mike Zaino:
Well, we're going to find out if you have one of those. If you are overly exposed in tax deferred accounts, then you might want to consider doing what's called a Roth conversion to help you delete future taxes and kick the IRS out of your retirement plan. We can do, um, real estate reviews and look at your real estate assets. So if you have obviously your family home, if you have any rental properties, if you have raw land, farmland, commercial land, any stuff like that, we can review your life insurance coverages. We can help care, uh, take care of any additional coverage needs that you have. We'll investigate cash values of your policies. How much is available for tax free withdrawals? Um, we might consider doing a 1035 exchange and moving some of the cash over into a different type of policy that can both grow and protect your money. Um, and then there's this thing called a Social Security maximization report. And that report can show you how to best maximize your Social Security earnings in retirement. And we have tips and tricks to help you take advantage of everything that you're entitled to, just so that you can enjoy additional income in retirement. Yeah.

Producer:
It's all, um, you know, part of that, that review, that inspection that you do and it really is I think the, the s in the Smart acronym is really, um, apropos for this section. The specific part of it and measurable as well. You know, it's also, um, very important to, to remember all of those things when you're getting that, um, that inspection. And, and here's the thing, folks, if you kind of hear all of this and you think that, oh, it sounds overwhelming, that's a lot of different aspects, a lot of different things that go into it. Yeah, it is, but don't be overwhelmed because you got help. You got Mike Zaino, uh, to help you along and make sense of it all.

Mike Zaino:
You know, I was thinking, as I was saying, all that just going, wow, that's a lot of words that I'm that I'm putting out there right now. And I'm wondering if my if my listeners are keeping up. Um, so that also reminded me of, of a commercial back, I don't know, ten, 15, maybe even 20 years ago from staples. I don't know how many of you guys remember the staples. Easy button. Do you guys remember that? Well, Mike Zaino is your easy button when it comes to retiring and retirement planning. If you want to make it as as task free and rewarding for. Yourselves as possible. Just pick up the phone and give me a call, because that's what I do. I'm everybody's easy button.

Producer:
Mike Zaino, the easy button, I love it. I do remember those commercials, too. Those were. Those were great. Um, and so, folks, if you wish you had an easy button for life. Hey, you do now you just go to Money Matters With Mike comm. That's Money Matters With Mike. All one word.com or call (704) 560-1573. Once again the number is (704) 560-1573. All right. So that takes care of the smart vision and the smart inspection parts of the discussion today. What about smart safe. That's the next here on our list Mike. And you know people um, uh, don't don't take safety lightly. I feel like these days because of all of the, the turmoil, the upheaval, you know, since the Covid pandemic, really, as you mentioned a little bit ago, um, that caused so much upheaval not only in our everyday lives. It caused upheaval in the markets, it caused upheaval, therefore, in people's retirement plans and things like that. And then also the inflation picture, the uncertainty in the market since like it's just been a rocky several years now. And so people want safety. I think a lot of people have been flocking to it. Really.

Mike Zaino:
Yeah, I think they definitely want safety. And everybody is aware of the fact that the older they get, the closer they get to retirement while they're in retirement and no longer contributing to especially to employer sponsored plans and receiving matches. If that was a thing, um, you know, you're supposed to move toward safety. But what a lot of people don't realize, I don't think, is that sometimes your, your, your own personal risk profile changes over time. And so I'm going to make it available. Anybody that wants to go to MoneyMattersWithMike.com I have a risk profile questionnaire that'll just ask you some questions and help you determine how much risk you should be taking. But by and large and again that's money matters. With mike.com there is a risk profile questionnaire that you can, you know, fill out and determine for yourself how much risk is appropriate for you because every single person is different. I know 80 year olds that are 100% in the market, but they have really, really, really deep pockets and so they can afford to be. And then I know other folks who have less than, say, $2 million who aren't anywhere near as aggressive. And so, you know, again, Money Matters With Mike. Fill out that risk profile, uh, questionnaire for you. But when we're talking about smart safe, I've noticed and we've talked about this a lot on our show before, that a lot of folks used to adhere to the old 60, 40, you know, stocks and equities and bonds. That was the rule of how they put their portfolio together. And that's not really been the case really, over say I would say the last 10 to 15 years, as we see a big movement away from bonds and a lot of folks are doing what is known as a bond replacement and actually using fixed indexed annuities, um, to actually accomplish the replacement of those old and outdated bonds that they are paying fees for. And that can actually lose value.

Producer:
And one of the big reasons for that here, you know, it used to be, uh, this well-established and was something that was, you know, the case for a long, long time. That inverse relationship between stocks and bonds didn't want to be 100% in the stock market because, well, you know, the the the Great Depression happens, the stock market crash, uh, back in the late 20s. And that led to all of the upheaval that lasted for years and years and years in the Great Depression. Um, you know, years like, uh, 2007, 2008, um, when Lehman Brothers went under stock market crashed. Then it was, um, you know, you don't want to be because of the risk involved, 100% in the market. So people said, oh, well, we can hedge with bonds because there's that inverse relationship used to be when the value of stocks went down, the value of bonds would go up with the situation with rising interest rates and all that here lately, that Mike has not been the case.

Mike Zaino:
That hasn't been the case, in fact, that also has an inverse relationship. So when the fed raises interest rates like they have numerous times, especially in 22, um, that's why you saw 2022 as the worst year in the history of bonds. So you may be asking yourself, you know, why should I replace my bonds if that's what my grandfather used and his father used and my dad's even using it, like, why should I replace my bonds? Well, you know, bonds have fees, number one. So if you'd like to delete the fees on at least a portion of your overall portfolio, which. That portion often makes up, you know, 40% or more of your portfolio. And what that'll end up doing is reduce your overall expense ratio. You know what you're paying for your portfolio. And by replacing your bonds with certain fixed indexed annuities, you could also receive a bonus on your principal, which allows your savings to, you know, grow exponentially faster because they're turbocharging your day one starting amount that you invest with. Um, I think the biggest reason to utilize fixed indexed annuities is that you get to participate in stock market like gains to a linked market index like the S&P 500. Imagine being able to participate in the S&P 500 and not have any risk, or the Nasdaq REIT or any of the numerous other indices that are available to you without having the risk of your money being directly invested in stocks.

Mike Zaino:
Okay. That's a huge, huge, huge benefit. It allows you to eliminate interest rate risk from that same portion of your portfolio, not to mention the fact that fixed indexed annuities allow you to establish an additional retirement income stream. We like to call it a personal pension, and that may be a great choice for you. If Social Security isn't enough to cover your expenses, it may be a great choice for you. If you are concerned that you might outlive your retirement savings. Because the income from a fixed indexed annuity can never be outlived, it might be a great choice for you. If you want to reduce risk and protect a portion of your retirement savings. It's okay to gamble with a little, but what is the amount that you don't want to gamble with and that you would not feel comfortable going below? That's the amount that you can protect in an FIA, and then it might be a great option for you too. If you just want to reduce and delete fees, period on a portion of your portfolio. Because we use multi-billion dollar, highly rated companies that have been doing this since most of our listeners before, most of our listeners were in diapers. And guess what, folks, there aren't any fees. None. So I mean, show me a better option.

Producer:
Hey, there you go.

Producer:
Yeah, I think a lot of our parents or grandparents were probably in diapers when a lot of these companies because, you know, they've been around a long, long time, many of them 100 years or more. So it's, you know, that should give a lot of assurance, I feel like, to to folks who may be a little bit skeptical about some trying something that they've never tried before. And, you know, that's that's really human nature. I feel like, Mike is that, you know, people are people are afraid of things that are strange. A lot of times people are afraid of things that they have never tried, options that may have been out there that they didn't know about, that they think, oh, is does this sound too good to be true? But that really is kind of where you come in and from an educational standpoint, no doubt.

Mike Zaino:
All right. There are a lot of people out there that have had heard a lot of bad press about annuities, and so they may just hear the word annuity and totally dismiss it, like it's not even an option for them, when in fact it absolutely should be an option. The reality is, is that there are many types of annuities now old school annuities, they used to trade your money to an insurance company. They would turn around and charge you a fee to pay you your money back. And then when you passed away, guess what? They kept your money. I mean, whose money is it? It's yours, right? Not the insurance companies, but new school annuities are absolutely not designed that way. And so you can name beneficiaries. Your money still grows, okay, even though you're getting a payment of whatever X payment you're, you're receiving, and then you still have liquidity, you can withdraw lump sum cash if you need to. I mean, it's it's kind of like a Swiss Army knife and that there are a lot of flexibility and options for you to take advantage of while, um, enjoying the benefits of a guaranteed lifetime income stream.

Producer:
Yeah. And that as, as you said, is probably the biggest thing. Well, the market like growth without the market risk being the biggest thing. Also that lifetime income getting income that you can never outlive. Um, boy, that is a great guarantee to have for your life because as you talked about earlier, you don't want to have more month than money, and you definitely don't want to have more life than money either. You don't want to run out.

Producer:
Yeah.

Mike Zaino:
And one of the things that I'm really thankful for is that the major companies, um, who spend billions of dollars in advertising, uh, Nationwide Financial is one of them. Right? They have Brad Paisley and Peyton Manning. You guys have heard of those folks? Brad Paisley is a Grammy Award winning country artist. Um, Peyton Manning is a Super Bowl winning quarterback, right? Well, these guys are out there and they're they're singing the nationwide song and they're talking about fixed indexed annuities. Brighthouse financial is another one that over the past several years, especially during like the US open, both golf and tennis, uh, they're airing a lot of commercials. And all that's helping do is raise awareness and combatting the other commercials that say, you know, we hate annuities, right? Because they don't, you know, offer them. That's why they hate them. And they're not always doing what's in the best interest of their of their clients.

Producer:
Yeah.

Producer:
That's, uh, absolutely correct. And, um, I was gonna I was going to say, that's right, but it's not right that they do that, but it is correct that they do that. Uh, and that's the reason for it really, by and large. And so, yeah. Exactly. Yes, very much so. Well, you know, along those same lines, Mike, I think that because people have heard that, uh, you know, annuities are bad or, you know, whatever, or they might just be intimidated by a lot of the different things that we've been talking about so far. Those things they haven't tried, um, just talking money anyway, like at all, makes some people uncomfortable. There are several reasons why a lot of people might feel, you know, nervous or intimidated about meeting with a financial professional like yourself. So help ease those concerns for people a little bit and kind of talk about, you know, what it's like, um, to work with you so that people know that there is, you know, the only thing to fear is FDR said, is fear itself.

Mike Zaino:
This is definitely true. So you guys have absolutely nothing to fear when talking to Mike Zaino or meeting with Mike Zaino. What you hear and what you see is what you get. I am absolutely no different. I don't care whether you have $10,000 or $10 million, you are going to get the same. Mike Zaino. One of the things that I pride myself on is the my ability to take very complex and very, you know, comprehensive financial topics and just break it down into plain English that my people who are meeting with me actually understand. And everybody out there has a different level of sponge. Some people can absorb a whole lot more. So whatever level of sponge you have, however much you want to learn about these complex and comprehensive topics, I'll spend as long with you as as you need to get it. Because once you understand the why behind my recommendation, why I'm recommending what I'm recommending. Guess what, folks? I have never had a complaint, and I wear that like a badge of honor. Because when you consider the thousands upon thousands upon thousands, I mean, I'm because of my speaking engagements, I'm approaching, um, 50,000 people that I've counseled in my career. And I've never had a complaint that should tell you something about who you get when you deal with Mike Zaino. So if you want to know what a successful retirement looks like, um, and you want to know how to accomplish it and how to set those specific goals and how to create that income plan for you to enjoy what you have envisioned. Just reach out to me. Give me a call 704 5601573. You can email me Mike at MoneyMattersWithMike.com. You can reach out on the website on the contact us page that's at MoneyMattersWithMike.com. Like again if you can't find me you're not trying.

Producer:
You're just not looking at all because it's not a difficult thing, uh, to find if you are actually looking once again, the website Money Matters With Mike. Com you can also search for Money Matters With Mike on Facebook and on, uh, YouTube as well. And you'll find the show there. Um, so, you know, I mean, there are a few things here, Mike, that, um, people might have be experiencing, uh, that we just wanted to touch on really quick before we get to our our Christmas price index here in a moment, because I just love that so much. So we have to get to it before the show is over. We got a little bit of time here, but, um, I think a lot of people, especially given given the uncertainty in the market, all the volatility in the market, I think at least from, from what I have heard from, um, other people, other financial professionals, that a lot of people out there have not heard from their advisor or their financial professional that they work with lately. Um, a lot. I feel like a lot of them are just afraid to to reach out to their clients and talk to them because they don't want them to see what their portfolio looks like right now. Um, and a lot of them might be just told, you know, hang in there, uh, even and that which is could be appropriate for somebody. Who's in their 20s. But if you're in your 60s, not so much.

Mike Zaino:
Yeah, you definitely want to stay liquid, right? And what I mean by liquid be like water. Bruce Lee used to say be water. And the the ability to pivot and to rotate when you need to pivot and rotate is, is essential in that, um, you're always going to end up in a better position if you are proactive rather than reactive. So I mean, again, if you're just being told, uh, to hang in there unless you're in your 20s or 30s, that might not be the best case for you. And and some of you out there might not even have a financial professional that you can count on, uh, that you can go to. You wouldn't even know where to start. Well, I'm going to tell you to start by picking up a phone and just giving me a call, and let's see if we're a fit, you know, um, that's that's the the biggest thing to do is start the conversation.

Producer:
Yeah, 100%. And, you know, a lot of people too, if you work for a bit, especially if you work for a big corporation, um, you might not even know that you have that, that retirement plan that your company offers or, you know, the maybe different plans if they offer some options, there is somewhere a retirement plan manager that that oversees that plan. It doesn't. It's not just a thing that exists. There is actually a human being involved somewhere. Uh, but you don't. But chances are you've never met this person and they have never met you. And you are a number on a ledger somewhere. And that's kind of it.

Mike Zaino:
I think those chances are very close to 100%. And I mean, like 99.99999999999%, right? Simply being most folks, believe it or not, folks, your HR department is not there to provide you with guidance and clarity, right? They can't there's liability that they have because they're not, you know, duly licensed to, you know, provide advice. Nice. Um, but when we're talking about plan administrators, these are, these are salespeople that go around to companies and convince them to open up a, a 401 K with their company, and then they in turn are deemed the plan manager. Um, so there are a lot of those folks that have, you know, a great job in their ability to go out and create, you know, money for themselves. But you guys, the employees are left wondering what to do with the plan that you have and how to actually strategize and maximize the plan that you have. So, you know, I think that if you haven't, uh, spoken with your plan manager, then it might be time to speak to a professional who sits on the same side of the table as you do.

Producer:
Yeah, 100%. And along those same lines, too, Mike, I think because of that lack of a relationship with whoever's managing the, uh, the retirement plan, a lot of people don't realize. And, and because, you know, it comes out of, you know, pre-tax, out of your paycheck every two weeks or every week or every month, however, however often you get paid. So it just comes off the top and you don't you don't really see this, so you don't really necessarily have a chance to think about it. But fees, I mean, a lot of people don't really realize the fees that they're paying, uh, for their retirement plans, whether they're through work or whether they're individual retirement accounts, whatever they might be.

Mike Zaino:
I remember a 60 minutes segment that Steve Kroft, when he was on the show, um, did and it was called the 401 K dilemma or Crisis or something to that effect. And it just highlighted the fees that are just laden within 401 K and employer sponsored plans. So, you know, if you don't understand the fees that you have within your current plan, you might want to speak to somebody that can actually outline those for you and at least prepare you for what you're about to experience.

Producer:
Yes, absolutely. So and so, folks, if you have, you know, been listening to this chunk of the show, if you have any questions about some of the questions that we've been asking here, uh, because these are common scenarios and things that you might find yourself dealing with. Just go to MoneyMattersWithMike.com. That's all one word. MoneyMattersWithMike.com or call (704) 560-1573. Set up that no obligation consultation with Mister Mike Zaino himself.

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

Producer:
It's about the CPI, which you might think, oh that's inflation. That's consumer price index. Oh no, not this one. This is an annual survey done by PNC Bank where they do they call it the Christmas Price Index. And they've been doing this for 40 years now. It's an annual tradition. It shows the current cost for one set of each of the gifts that are given in the song, The 12 Days of Christmas. I love this, Mike.

Producer:
Yeah.

Mike Zaino:
On the first day of Christmas, my true love gave to me, right? Um, wow. There's a lot of stuff over there. And when you when you consider these things, uh, the first one is a partridge in a pear tree. And the current cost of a partridge in a pear tree is up 13.9% and would cost somebody $319.18. Okay. Rents are again rising for the partridge in 2023. The price of the bird stayed flat, but the tree it lives in grew by 15%, which reflects the overall growth in housing costs. Yeah.

Producer:
I mean, if the partridge gotta gotta live somewhere, it might as well be that pear tree. There it goes. Um, two turtle doves. The next gift on the list here. The cost of two turtle doves, up 25% this year. Uh, one of the higher ones here. $750 for two turtle doves. That has actually been the most volatile gift in the index. At least this year it has been. Anyway, there was another one that didn't change in price. Surprisingly, this year that usually is the most volatile, but 25% and the cost increase reflects the rarity of turtle doves.

Mike Zaino:
Also, you don't find turtle doves that often, do you?

Producer:
No, I don't.

Producer:
I can't remember the last time I found one in a shop somewhere.

Producer:
Exactly.

Mike Zaino:
Now, contrary to turtle doves. Three French hens are only up 3.5% or $330. That's what it would cost you to purchase three French hens. And they grew modestly in price. And that was due to rising labor and energy costs. And they're still among the most affordable birds in the index, at just $330.

Producer:
I've often wondered why there are so many birds in this song, because you know who gives birds is a is a gift. But anyway, I mean, I, you know, I guess as a pet, whatever. It's a it's an old song. I'll stop thinking about it. But speaking of birds for calling birds the actually the same price as last year. Um, yeah, but they're not cheap. They're. They are not cheap, though. Yeah, almost just shy. Just just a few cents shy of $600.

Producer:
Yeah.

Mike Zaino:
That is, that is not a, uh, $600 purchase I'll be making. And what do they call anyway? That's my question. Like what do calling birds call.

Producer:
I don't know, I.

Producer:
Don't know. Will they call a customer service uh, department for me sometime so I don't have to listen to the on hold music for an hour?

Mike Zaino:
Yep. No, I hear you there. Or press one for for English. Right. So one of the surprising ones also was the price of five golden rings. Um, gold never goes out of style, but apparently plain gold bands do. In fact, the price for five gold rings stayed flat for the first time in more than five years at $1,245. That's how much it would cost you to buy five gold rings.

Producer:
Wow. Uh, six geese a laying is the next day here. Those prices did go up. Up just a little over 8%, $780 for six geese a laying. Um, the they're inspired by their very expensive swan cousins. They say the six geese are laying have been on a growth run in recent years. Since 2018, they've grown in total price by almost $500 in just those, uh, you know, five years. Really? So that that's, uh, kind of surprising.

Mike Zaino:
That is surprising. And like you said, they're trying to keep up with their, uh, seven swans a swimming because seven swans are cost. You would cost you $13,125. But the good news for true love is that the price of those seven swans are swimming, um, which has been the most volatile gift, stayed flat year to year. The bad news? They still cost $13,125.

Producer:
That is the bad news.

Producer:
Eight maids a milking now also stayed the same. Just $58. Uh, because they do that, they calculate the eight maids a milking by the federal minimum wage. And that, of course, remains unchanged this year, as it has since it seems like the beginning of time. Uh, the maids available for. $58 this holiday season once again.

Mike Zaino:
Yeah, the fact that that hasn't moved since time is a travesty in and of itself. I mean. But anyway, um, nine ladies dancing and there are a lot of folks out there that this is their favorite, right? Nine ladies dancing costs $8,308.12. And so last year, in 2022 that those nine ladies cost a a hefty 10% more, which was their first increase in almost a decade. Um, the price to hire a dance company stayed flat this year, though.

Producer:
Yeah. That's right. And, uh, so, you know, if you've if you budgeted last year, you're okay this year for your nine ladies dancing there, ten lords a leaping. They are the actually the most expensive gift in the index and rose by another 4% this year, $14,539. Um, the whole held off the stagnant swans with a 4% increase in 2023. And I got to look up why that is, because that's, uh, that would be very interesting. I guess. Lords, they're just, you know, they have a rank, so they're very expensive.

Producer:
The Lords are.

Mike Zaino:
Expensive, especially leaping lords.

Producer:
Apparently. You got to you got to pay them extra for the leaping.

Mike Zaino:
Well, you know, if you would like to hear a Piper pipe, get ready to pay for it, okay? A tight labor market means a 6.2% increase in the cost for those musicians. So 11 Pipers piping comes in at $3,207 and change.

Producer:
Yeah, up.

Producer:
6.2%, as you said. And then that is also the case for the 12 drummers drumming the same labor conditions. They're the 12 drummers drumming setting that beat for a 6.2% increase this year for their services. And that is $3,468 and a little bit of change there. So yeah, just absolutely. Um, gonna going to set you back a little bit for those 12 drummers.

Mike Zaino:
No doubt the total Christmas price index, if you were to go through and buy the 12 days of Christmas, that's going to cost, uh, you $33,604.86, and that represents the total cost, obviously, of all those gifts bestowed by true love, when you count each repetition of the song totaling 364 presents. I wish I had 364 presents. I'm just teasing. I wouldn't know what to do with that many. Right? Spreading cheer throughout the year in 2023 is going to end up costing you 2.5% more, um, than, uh, 2022.

Producer:
Yeah. And back when.

Producer:
They first began measuring, uh, the folks there at PNC began measuring the cost of the 12 days of Christmas happened back in 1984 when they began all of this. The total cost was just $20,069.58. I mean, that is one heck of an inflation demonstration for this week. Um, because those those prices are they're a lot more than they used to be.

Mike Zaino:
They are.

Producer:
It's this week in history.

Producer:
Well, this week in history, uh, Mike has a very heartwarming one for us to start off with. On December 9th, 1965, it was a Charlie Brown Christmas first airing on American television.

Mike Zaino:
I used to love watching that. And from time to time, he's even as a almost 53 year old adult, I will still watch A Charlie Brown Christmas. That was the first TV special based on the comic strip The Peanuts that was, of course, written by Charles M Schulz, and the idea for the special was initially met with skepticism from both CBS executives and their production team. However, it went on to become a massive critical and commercial success and has since become a beloved holiday tradition for many, many, many folks.

Producer:
Yeah, and they say, though, that despite that success, it almost didn't happen. Uh, the network was initially disappointed with the finished product. The creators had to fight to keep certain elements, like the very now famous jazz soundtrack and the inclusion of the biblical passage. You know, when, uh, I believe it's Linus reads, uh, the the story of the Nativity, uh, there from from the book of Luke. I think, uh, that that version of the the story in the Bible. Um, but December 10th, another big day, because on that day in 1966. So just one year later, the Beach Boys went on to have a number one hit on the US singles charts with the song Good Vibrations. And it's going through my head already right now, just saying the name.

Mike Zaino:
They're dancing to it already in my head, too. In 2017, the Library of Congress selected Good Vibrations for preservation in the National Recording Registry, recognizing its cultural, historical, and artistic significance. Brian Wilson. Than is stated that the inspiration from the song's title came from his mother, who used to tell him that dogs could pick up good vibrations from people, meaning they could sense positive or negative energy.

Producer:
I believe that.

Producer:
About dogs, actually. I think that dogs can can really sense people. So that's interesting.

Mike Zaino:
Absolutely. 100% correct.

Producer:
Sir. That is that's a.

Producer:
Very Ed McMahon of you. You are correct, sir.

Producer:
Yes.

Producer:
Um, well, on that note, the time has come and gone for the show this week, Mike, but it's always great to spend time with you and I look forward to doing it again next time.

Producer:
Sir.

Mike Zaino:
Matt, thank you so much for bringing this, uh, content, this quality setting us up for, you know, the questions and, and just the way you do without you, the show doesn't exist in its in its current format, um, to our listeners out there, but whatever you're doing this weekend, I hope you absolutely enjoy it to its fullest extent. And as always, make it a great day.

Producer:
Thanks for listening to Money Matters With Mike. To schedule your free no obligation consultation, visit Money Matters With Mike comm 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 terme 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.

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.

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