How to Strengthen Your Retirement Plan This Summer: 5 Smart Moves to Make Now

6.13.25: Audio automatically transcribed by Sonix

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

Speaker1:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker2:
Welcome to Money Matters with Mike, with your host, Mike Zeno. Mike works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for. And he can help you too. So now let's start the show. Here's Mike Zeno.

Speaker3:
What's up people? Welcome to the show where we dive into the strategies, the insights, and the tools you need in order to secure a confident and stress free financial future. I'm Mike Zeno, and my mission is to help you protect your nest egg, outsmart retirement risks, and live the life you've worked so hard to achieve. Whether you're nearing retirement or already enjoying it, we're here to guide you along every step of the way. And boy do we have a ton of great information for you today. On today's show, we're going to show you how to improve your retirement plan this summer and offer you a step by step guide, plus free retirement planning support. And as always, I have the distinct honor and privilege of being joined by the one and only my producer extraordinaire, Mr. Matt McClure. Matthew, how are you today, sir?

Speaker4:
I'm doing very well, Mike. I hope you are as well. And, uh, you know, enjoying the enjoying the warm weather here.

Speaker5:
Uh, yeah. I don't know about that so much.

Speaker3:
I'm doing very well. I like it a little cooler. Personally, I like it fat guy. Friendly is what I like to call it. Uh, you know, 60s to 70s is perfect weather for me. Uh, once it starts getting up into the high 80s and 90s. Uh, man, you can keep that stuff. Well, yeah.

Speaker4:
Especially, you know, here in the South where, uh, you know, we we love our humidity around here. And by love, I mean, we don't love it, but it's it's around. Yeah.

Speaker3:
It's, uh, I tell you, in the last few days, with all the rain that everybody's been getting down south, it's been very, very humid. I guess I picked the wrong area of the country to live in, right?

Speaker4:
Right. I mean.

Speaker3:
I wouldn't have it any other way, though. I love where I live.

Speaker4:
This is this is very true. You and me both. Uh, but, yeah. No, I'm doing well. And, uh, thank you. Of course. And thank all of our listeners as well. Thank you for listening to the show, because, you know, we would not be here without you. So we really, really do appreciate it. Whether you're listening to us on the radio in the Carolinas or if you're listening to us via the podcast, wherever you get your podcasts, and yes, you can subscribe there, just go to your favorite podcast app or you can go to the website. Money Matters with Money Matters with mike.com. Once again is the website and you can listen to all of the previous episodes there. We've got just about three years worth of them now. So, you know, chances are we've talked about a topic that you are curious about with your finances and do not hesitate to reach out to Mike Zeno because he wants to help you retire successfully, just like he has helped so many other people who have listened to the show and beyond. Right. So you can give him a call as well. (704) 560-1573. That's 704560 1573. That is the phone number.

Speaker4:
And of course, again, the website is Money Matters with mike.com and uh, yeah help help you you know, get started with retirement planning, risk management, estate planning, all the things. And uh, building sound financial plans for listeners is what Mike Zeno loves to do the most. All right. So, Mike, we got a lot of great stuff coming up here on the show. Uh, today, as you sort of alluded to a moment ago, we're going to get to a step by step guide for our listeners and how they can get ready to retire with confidence, hear what it's like to work with you. We're going to go through that as well. And how, uh, not intimidating it is to work with Mike Zeno. Um, we'll also talk about a little Social Security planning. Uh, we've got an inflation demonstration coming up, a lot of stuff to get to, and we've only got a half hour to do it. So how about let's get right into it, shall we? And we'll do it. Get some inspiration for our conversations as we start off. We'll do that with our quote of the week.

Speaker6:
And now for some financial wisdom, it's time for the quote of the week.

Speaker4:
Well, the quote this time around comes from an anonymous source. And no, that doesn't mean that it's like, you know, some shady something. It's actually an inspiring quote. And I love this one. It is this retirement is when you stop living at work and begin working on living. Huh? Boy, doesn't that sound good.

Speaker3:
Man. It absolutely. I mean, just think about that for a second. It says it all, does it not? I mean, for most of your life, you've been trading time for money, doing what needed to be done to provide for your family, to build a future and to keep the wheels turning, punching the clock, meeting deadlines, putting in the hours, sometimes sacrificing your health, your hobbies, and even your happiness just to make ends meet and do right by the people you love. And let me tell you something. That kind of sacrifice is honorable. It's admirable, but it is not supposed to last forever.

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

Speaker3:
Retirement is the time when the tables finally turn. It's when life becomes less about obligation and more about opportunity. That's the actual reward for it, all right? It's when you finally get to reclaim your time. It's when the question shifts from, what do I have to do today? To what do I want to do today? But here, folks, is the part that most people don't realize. If you don't plan for it, you won't fully enjoy it because retirement without a solid financial strategy is just a different kind of stress. See? True retirement is not just about having free time. It's about having the freedom to enjoy that time without constantly worrying about whether your money will last, what the markets are doing, or if you'll have enough to cover healthcare to cover inflation and everything else that life might throw your way. And that is where I come in. Okay, my mission, both on this show and in my day to day work, is to help hard working Americans, just like you, design a retirement that's built on clarity, on confidence and control. Not guesswork, not hope, and definitely not winging it. Right? I help people turn their nest eggs into predictable streams of income that they cannot outlive.

Speaker3:
I show them how to protect what they've earned from all of the market volatility, from taxes, and definitely from unnecessary fees. And more than anything, I help them sleep better at night knowing that they've got a plan and not just a pile of money, but a real plan that supports the life they want to live. So whether retirement is right around the corner for you or it's still a few years down the road, I want to ask you one important question. Are you ready to stop living at work and start working on living? If the answer is yes, or maybe even I'm not sure, I invite you to reach out. Sit down with me for a no cost, no obligation retirement consultation. I'll help you understand where you are today, what your options are, and how to build a plan that puts you in the driver's seat. And all you got to do is give me a call at (704) 560-1573, or visit the website at Money Matters with Comm. Just remember, retirement isn't an age, it's a destination. And let's make sure that you get there with purpose, with peace of mind, and with freedom to live life on your terms.

Speaker4:
Yeah, boy, that's that all sounds great to me. And a lot of people, you know, might, might say, okay, yeah, I'm emotionally ready to to stop living at work, right? I really want to do that. But the thing is, is. Okay, have you prepared? Are you actually ready? Like, do you have a plan written down on paper that you can say, yes, I really am ready. And I think for a lot of people, the answer to that is either no or I don't know.

Speaker3:
Right. I talked to a 37 year old yesterday just to kind of, you know, laugh a little bit. He's like, I'm so done with work. And I'm like, you're 37. She goes, yeah, I just I can't stand working anymore. And I'm like, are you independently wealthy? And she said, no. I said, do you have a sugar mama or a sugar daddy? And she said, no. And I'm like, are you planning on living off the grid? And she said, no. I'm like, let's get a plan for you.

Speaker4:
Yes. That would be essential, I think, in that in that particular scenario, that's that's hilarious, I love it. Well, yeah, I'm you know what? At 37 I was probably saying some similar things. But, you know, I mean, you gotta you gotta, you know, power through. And of course you've got a plan. And and here's the thing. I mean, you said at the very beginning of the show, we have a step by step guide for our listeners to help them get prepared today. And I am excited to go through all of these steps because, you know, it really, uh, just just dovetails very, very nicely from what we were just saying here in that if you want to meet that goal of not living at work, uh, then you've got to actually plan for it. And step one is to really make your retirement goals. I mean, it's like, you know, I've said it before, but it's like, you know, where where are you going? What's your destination? It's almost like a GPS, you know.

Speaker3:
Exactly. It might be shocking to know that only about 52% of people have taken the time to calculate exactly how much money they're going to need in order to enable them to retire comfortably. And that's according to the 34th Annual Retirement Confidence Survey that's conducted by Greenwald Research. Right. So if you are in the early stages of retirement planning, you've got some questions that need answers. So you need to ask yourself, you know, first and foremost, when do you want to retire? What is the catalyst that is going to drive that decision? And then more so what do you want to do in retirement? Right. How are you spending your time? Who are you spending that time with? And more importantly, how are you going to fund it? Because you should have a very clear picture of what your ideal retirement lifestyle will look like, because that's going to help motivate you to achieve those goals. Matt.

Speaker4:
Yeah, it absolutely will. I mean, you know, if you've got that goal in mind, it's going to it's going to help, you know, keep your eyes on the prize basically, and keep working toward that throughout your working years. Just have that goal. So it's almost like dangling a carrot out in front of you. You know you're going to keep running for it, right? Well, then step two is to, um, you know, really, after you've set that goal, come up with a plan and implement a plan. But it's got to be the right plan. And I think that the only way really to come up with the right plan for the vast majority of folks is to work with a professional.

Speaker3:
Right? I mean, while you're still working, I think it's really important for people to try to save at least 15% of your income as you invest for the future. And people may be going, what, 15%? I can't do that. It's a mindset, folks. You would be shocked that if you set it at 15% and you get used to that. You'll actually find that you can live more confidently, because you know that you're preparing for the future. And the reason for the 15% goal is simple it's high enough to make serious progress towards your retirement goals. While it still leaves some room for you to work on those shorter term financial goals. But let's just say the household income is $100,000 a year. Gross, okay. And you invest $15,000, which is 15%. And whether you put it into ETFs or, you know, whatever you're going to invest it into, if it has an average annual return of 8% after 25 years, you're going to have shy just shy of $1.1 million. And that's assuming that you never increase your contribution amount, right? So if you're closer to retirement, you should prioritize saving and investing as much as possible. So a simple rule is if you get a pay raise, increase your savings. If you get a cost of living adjustment. Increase your savings. And when I say savings, I'm talking about investments because no one ever got wealthy by saving money in a savings account, right? So you're not going to have as much time if you're near to retirement. But larger contributions because of higher earning ability can go a long way toward protecting you financially.

Speaker4:
Yeah, it really can. And then, of course, you know, you have the ability as you get older as well to make those catch up contributions also. So, you know, I mean, you've got a higher threshold that you're able to put in your retirement accounts. So that can help you along the way the closer you get to your retirement date as well. Um, and then number three, this is super important as well, is to pay off your debts. And boy, I'm telling you, from personal experience, uh, you know, if you're if you're getting behind, if you are underwater when it comes to your month to month finances, and you're just constantly having to make these payments on on debt and things that you financed and blah, blah, blah. It can just feel like you are underwater and never going to get to the top of the never, never going to get to the surface of the water, you know, because it can just overwhelm you. So paying off debts super important.

Speaker3:
Yeah, I think it's one of the most important steps in preparing for a successful retirement. But I want to I want to be, you know, very definitive on what kind of debt I'm talking about because believe it or not, folks, there's good debt. All right? Good debt allows you to leverage that to, you know, purchase income producing assets and just overall generate more and more and more wealth. And then there's bad debt. And what I'm talking about is that revolving debt, right. So if you have credit card payments, if you have, you know, a second mortgage on your home because you had to do a renovation if you took out a personal loan, if you've got, auto payments, anything like that, that is what you want to pay off. Because if you don't, those payments alone will likely consume at least one of your monthly Social Security checks coming into the household in retirement. And that's just not a good situation to be in.

Speaker4:
Yeah, it's really not, um, because you don't want to be in a situation where you're only, you know, able to rely on part of what's coming in to actually do the things that you want to do in your retirement years. You know, um, and then step number four here is to the big one you just spoke about Social Security. Decide how you're going to claim those Social Security benefits, because, boy, that can make a huge difference in your retirement.

Speaker3:
Yeah, I mean, Social Security is likely going to be a significant building block in your overall retirement income plan. And according to the Social Security Administration, Social Security is the primary source of income for nearly half of all US workers, and for older individuals, it accounts for at least 90% of their household income. However, I'm not sure if you've been paying attention. Um, the program isn't exactly stable, right? If nothing changes by the year 2033, the Social Security Administration will have depleted all of its excess reserves, and this means it won't be able to pay out the full benefit amount to all retirees. And so, rather than relying on Social Security, we like our clients to just count it as the cherry on top right. Viewing it as extra income. The icing on the cake, if you will. You need to be able to consult with a financial professional on how best to claim those benefits. And those are, of course, based on your unique situation.

Speaker4:
Yeah, everybody's situation is different and unique, as you say. And so that's why it's so important, even with something like Social Security and especially with something like Social Security, because it's such a big deal. It's such a big part of so many people's retirement. You know, we want you to consult with a pro and then get that advice on how to best claim those benefits. Again, money matters with Mike. Com is the website to reach out to Mike Zeno and get started on a full retirement plan, including what to do with your Social Security benefits. Money matters with Mike. Com. And then okay, so Mike, once you've come up with a plan, you've worked with a pro, you've decided how you're going to claim your Social Security benefits, all the things you've got to, as step five says here, continue to invest and optimize your plan. It's not just a thing where you can just kind of set it and forget it, right. You've got to be, you know, on on your toes. And that's again, we're working with a professional comes in handy because they can help you watch out for these kinds of things.

Speaker3:
Yeah. Sure thing. We always say that you have to inspect what you expect, okay? Making sure that you're taking advantage of all of your retirement accounts, that you're maximizing your contributions up to the limit whenever possible. If you are eligible to contribute, say, to a Roth IRA or a Roth 401 K, prioritize making those investments so that you can build a tax free retirement savings, because tax free money is way better than taxable money, right? Um, finding ways to cut monthly costs, uh, so that you're able to invest the excess or just use that, uh, extra to pay off debt or pay the taxes, maybe on some Roth conversions. Right. We like to find money. We call it found money so that no more money has to come out of your pocket. We just reallocate where that money goes. And then sometimes you may even consider pushing back retirement just by a few years, and then defer taking income benefits just to be able to increase your future retirement income.

Speaker4:
Yeah, absolutely. Especially if you've got longevity on your side. That would be a good thing to consider as well. And, you know, I mean, it all comes down to your individual situation, as we've been saying here folks. And, you know, Mike loves to connect with people and and listen to people and then help people. You know, I mean, Mike, for those who do go to the the website Money Matters with mike.com or if they give you a call at (700) 456-0157 three, uh, talk about kind of the process and all of the things that you can provide them in that absolutely free consultation.

Speaker3:
Yeah. So I mean, obviously there's no obligation to work with us. You're only going to work with me in the team if it is best for you. So, you know, what do we do? Well, we analyze your current situation and then we compare it to what is possible. If you work with us, right, we'll discover exactly how much you may be paying in fees in your current portfolio and help you cut unnecessary costs. Whether those are in your IRAs, your 401, or any other retirement savings accounts. We can also help you with Social Security maximization and Medicare planning. And, you know, ultimately, we understand that your money matters to you. And if it matters to you, it matters to us. So our main goal is just to put focus on making you as as confident in your retirement, knowing that your money will last at least as long as you do. That is what we do best.

Speaker4:
Yeah. Absolutely right. And, you know, that's especially true. I feel like if you're in the retirement red zone and folks, if you don't know what the retirement red zone is, stay tuned because we're going to talk about it before the show is is over with. And I mean, you know, there are a lot of different scenarios and situations in which people might want to reach out. I mean, of course, we've been saying, if you don't, you know, if you don't know that you are 100% confident in your current retirement plan, or if you don't have one, that's a big reason to reach out to a financial professional like Mr. Mike Zeno. But Mike, what are some other reasons that that people might want to, um, you know, consider meeting with you just to, you know, have that second set of eyes, if nothing else.

Speaker3:
Yeah. I mean, number one, if you don't have a formal retirement plan, you should probably meet with a financial professional, right? If you don't understand, maybe some of the risks that you may or may not be taking with your investments. I see people all the time that are in cash and there is no risk there. But guess what? There's no return there as well, right? So we find that happy medium that you are comfortable with. That's called risk tolerance. And then if you don't understand how you should manage that risk within your portfolio, rather as you age, because the allocation amounts should change as your time horizon gets shorter and shorter, right? Well, we kind of know those blends and where most people should be. If you don't know whether or not you should pay your house off, or if you don't know or if you don't have a vehicle plan. Most people retiring in their 60s guess what? They're going to need another vehicle or two by the time they pass away. We need to have a plan for that. Uh, you know, if you don't understand what an expense ratio is, you need to meet with an advisor or financial professional that can teach you all about this stuff. And, you know, if you don't have a healthcare plan in place, you need to be accounting for one of the biggest, if not the biggest cost in retirement planning for your health. So contact us again. (704) 560-1573 just to learn more and to schedule your complimentary consultation, because we can tailor a plan for your specific situation and your individual needs.

Speaker4:
And money matters with Mike. Com is the website as well. That's Money Matters with Mike dot. Well and you know Mike, we've been talking a lot about Social Security uh so far on the show here And one other kind of big thing to highlight for folks is the Social Security check is hitting a big milestone this very month, and that is that it's set to break $2,000. The average Social Security check breaking $2,000 for the first time ever.

Speaker3:
Yeah, that's a big thing, right? I mean, when the Social Security Act was signed into law in 1935, its purpose was to provide a financial foundation for America's aging workforce. Now, here we are, nine decades later, this mission is still being fulfilled, with the added bonus of also providing protections for workers with disabilities and survivors of deceased workers. So, yes, this month, the average social security check surpassed $2,000 for the first time ever. But while this may sound like good news, it underscores the need for retirees to have stronger retirement income plans, you know, plans that include additional income sources beyond just Social Security. Because I don't know anybody out there who wants to live on $2,000 a month, right. So, according to a May 2023 analysis from this nonpartisan senior advocacy group called the Senior Citizens League, the purchasing power of a Social Security dollar actually dropped by 36% in the three previous years from January of, uh, excuse me, 23 previous years, from January of 2000 to January of 23. And a more recent analysis points to a 20% additional loss of buying power between 2010 and July of 2024. So what is that saying? Your retirement social Security dollars are not going as far because of the rising cost of living, otherwise known as inflation.

Speaker2:
Want to know where your hard earned money is going. It's time for an inflation demonstration.

Speaker4:
This is a little bit of a look at how rising costs are impacting retirees and pre-retirees in like. The Sow Research Institute released its initial findings from its biennial retirement risk survey and finding, you know, since 2001, actually, they've been doing this survey. It's explored how retirees and pre-retirees understand and manage risks in retirement, including inflation. And so what did that survey find?

Speaker3:
It found that 51% of Pre-retirees and 35% of retirees reported being impacted by higher food costs and higher daily living expenses. And additionally, 45% of those pre-retirees and 29% of retirees reported that rising utility expenses so their water, their power, like everything, has gotten higher and that had impacted their retirement funds. So those respondents were also concerned about inflation's impact on the overall value of their retirement savings with 78%. So almost 80% of Pre-retirees and then 58% of retirees expressing concern about their savings, ability to keep up with that rising cost of living. And additionally, about 40% of pre-retirees across all income brackets have considered delaying retiree, uh, just simply or returning to work. Okay, to help offset the rising cost of living.

Speaker4:
Yeah, absolutely. And and of course, there's a big tip here for those folks who are, you know, wanting to retire or, you know, getting just into their early retirement right now. And that is to adjust your plan for Decumulation. You've been focused on growth all these years, but you've got to flip a switch, you know.

Speaker3:
You know, I've used this analogy multiple times on previous shows. But imagine preparing to climb from Mount Everest, right? Or Mount Kilimanjaro or any of the highest mountain peaks in the world, K2, whatever they are. Most people who take those tasks on train for months, if not years. All right. On how to climb, climb climb climb climb. But guess what? Most of the deaths actually occur on the way down on the descent. And so what I see in my business is that most of the financial deaths occur during the decumulation phase. What does that mean? Well, that means the spend down phase when you actually get to enjoy your money, the period when people have retired and begin drawing from their retirement funds. That's called the Decumulation phase. And while the main goal for the accumulation phase is growth, the decumulation Accumulation phase is more focused on a stable income, on risk management, and on ensuring that your retirement savings lasts throughout your life.

Speaker4:
It's so important to focus on that, especially Mike, if you are in the retirement red zone, which I promised we would talk about before the show is over. And I am not going to disappoint the folks, even though we've got just a few seconds left here. Um, the retirement red zone is what we use that phrase a lot. So what does it mean? Yeah.

Speaker3:
So the retirement red zone or the 5 to 10 years immediately preceding, uh, retirement, as well as the 5 to 10 years immediately in retirement. This, folks, is the most critical time period to avoid market volatility. And because you don't have enough time to recapture any, you know, significant losses once you retire, right, you're no longer contributing to those accounts. So if you know this or if anything on the show today made sense to you, please give us a call. We've enjoyed meeting and helping our listeners feel much more confident about their retirement and their future, uh, in general, right? We like to take the stress out of retirement planning.

Speaker4:
A lack of stress is a very good thing, and that is going to do it for this edition of the show. Thanks so much, Mike. It's of course, as always, for everything that you bring to the table and we'll talk to you next time.

Speaker3:
Hey, listen, Matt, thank you for what you bring to the table. But most importantly, thanks to all of our listeners, whether you're listening live on the radio or anywhere around the globe on podcast, without you, we don't have a show. Whatever you're doing this weekend, I hope you enjoy it to its fullest extent and as always, make it a great day.

Speaker2:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free no obligation consultation, visit. Money matters with Mike. Com or pick up the phone and call 704 560 1573. That's 704 5601573. Not affiliated with the United States government. Mike Zeno does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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