Is Your Retirement Built on Income—or Just a Number?

5.16.25: Audio automatically transcribed by Sonix

5.16.25: 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 that 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 today. On today's show, we're going to discuss how to align your investments with your retirement goals so that your portfolio becomes a pension. And as always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matthew, how are you today, sir?

Speaker1:
I'm doing great, Mike. You know, we were talking just before we went on the air here about how busy things have been. I feel like for for both of us lately. But I also feel like for both of us, it's been a good kind of busy. Not just the busy, you know, that just keeps you busy for the sake of being busy.

Speaker3:
Right? No, it's it has been amazing so far this year. There are so many people who are, you know, uh, who have decided to call it quits on their, on their working career and enter their next chapter of life in, uh, enjoying their retirement and the comfort that they have, and the peace of mind that they have when we can show them the pathway to never running out of money. I think that is, uh. Well, number one, that's why I do what I do. Right, to help as many people live that safe and secure financial future as possible. But it just gives you a really, really good sense of fulfillment. Uh, so every day people are like, how are you doing? I'm like, man, I am doing amazing. I hope you are well.

Speaker1:
I am as well. And I, uh, you know that that's really what the show is all about as well. You know, just educating folks about how they can do just that, you know, not run out of money in retirement. Yes, it is possible. Um, and if you are one of those people who has decided to call it quits from your job and enjoy your retirement, I've got another call that you can make. And that is a call to Mike Zeno. And, uh, you can do that at 7045601573704560 1573. You can also go online to Money Matters with Mike. We'll share that information again throughout the show today. But yeah, thank you so much for listening. As Mike always says, without you we don't have a show. So we appreciate you joining us. Whether it's on the air throughout the Carolinas, on the radio or on the podcast, wherever you listen to your podcasts, we appreciate it so, so much. All of the previous episodes of the show are on the podcast feed. They're also over at Money Matters with Mike comm. You can find us on YouTube. We've got several videos there, uh, some shorts, some long form videos, several new ones coming out each and every week. So we appreciate you checking those out. Please like and subscribe if you can and if you will. We'd love that. It helps the algorithm folks. And that's what we're all we're all trying to figure out these days is how do you break through the algorithm? Uh, well, you can help us do that by liking and subscribing and also look for us on Facebook. Just search for Money Matters with Mike there. Um, it's really, you know, all about connecting with folks here on the show via the socials and and via the website or the phone. However, you can get in touch with us. Just do that. Because, Mike, I mean, it's really all just about helping people, right?

Speaker3:
I mean, absolutely, if you have questions, post them on the Contact Us page, post them on social media. I love interacting and answering these questions, especially on socials, because, you know, chances are, if you've thought of that question, so have hundreds if not thousands of other people across the United States and the world. And by you simply posting that question and me being able to answer it, I'm helping a lot of people, not just you. So, I mean, the the rising tide lifts all ships, as we like to say.

Speaker1:
Absolutely. Right. And once again, money matters with Mike. Com is the website search for Money Matters with Mike on the socials. Or give them a call (704) 560-1573. Well a lot coming up here on today's show. Uh, as as Mike was saying just a moment ago, you know, we've got, um, a lot to talk about as far as how to turn your retirement savings or investments, all of the things into a pension because, you know, really, pensions have kind of gone the way of the dinosaur. We'll talk about that a little bit. And you know how, uh, where have they gone? Um, why have they gone extinct? Right. So we'll we'll cover all of that. Um, are you too nervous to check your retirement accounts? You know, I mean, it's been a roller coaster ride so far this year. Luckily, we're we've been kind of on the up side of the roller coaster, uh, here of late. But, you know, you might have too much risk in your portfolio if you have been, uh, just really, really nervous about checking those accounts. Uh, we'll talk about that and what you can do about it. Why? People don't have a pension. Of course. We'll talk about that once again. And why income in retirement means a whole lot more than assets. We'll do all of that conversation coming up momentarily. But first we'll get some inspiration for it, shall we? And we'll do that with our quote of the week.

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

Speaker1:
And our quote this week comes from Robert Kiyosaki, who said this. The key to financial freedom and great wealth is a person's ability or skill to convert earned income into passive income and or portfolio income. Well, I feel like that's just so profound because, you know, we talk about how important income is in retirement. And you got to do that. You've got to take, you know, what you've earned over the years and then turn it into an income stream in retirement. That's going to be something that's reliable and something that's there for as long as you're going to need it.

Speaker3:
Yeah. No doubt. And for those who don't know Robert Kiyosaki, he is an author. He's done some TV shows, but the book that put him on the map was a book called Rich dad, Poor Dad. And it was basically the story of a young man who had a poor dad growing up. And then he had a mentor that was a rich dad. And then the contrast and just the mindset and the way they thought about money and preparing for life in general. So I really wanted to unpack this quote, because it speaks to the heart of what real retirement security actually looks like.

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

Speaker3:
Whether you are in your working years, especially your peak earning years, you are generating what we call earned income. And that's your your salary, your commissions, maybe income from a business or a side hustle. You are actively working for every single dollar that comes through the door. But here's the thing that kind of income has an expiration date whether you choose to retire or you are forced to. Due to health or life circumstances, that paycheck is eventually going to stop. And then the question becomes what is going to take its place? Okay. And that's where Kiyosaki's quote becomes so, so powerful. He is reminding us that the real measure of financial freedom, and especially retirement readiness, folks, is in your ability to convert that earned income into income that keeps coming in even when you are no longer trading time for that money, right? You're no longer working. And that is called passive income, which is really portfolio income. And for Pre-retirees, right now is your most valuable time window you are still earning. The question is though, are you using that earned income to build income producing assets, you know. Are you contributing to tax efficient retirement accounts? Are you building a diversified investment portfolio that can produce dividends and capital gains? Are you considering rental properties or other vehicles that could create passive income down the road? Are you exploring guaranteed income tools like annuities and personal pensions? Because every single dollar that you earn today has the potential to become a future income stream if it is directed intentionally and then for retirees, right? If you've already retired, your earned income days are behind you.

Speaker3:
But the principle still applies. The focus now becomes managing and protecting the passive and portfolio income that you have already built. Are your withdrawals sustainable? Uh. Is your investment Strategy built to generate income and withstand any type of market volatility. Do you have guarantees in place that protect you from outliving your money, and are you maximizing your taxes on your withdrawals from your Social Security? Right. Those are the questions that I ask. Because let's be real, retirement isn't just about not working. It's about freedom, confidence, peace of mind. And that comes from knowing that your income is reliable, it's sustainable, and it is not dependent upon how the market performs this week or next. Right. The bottom line is the ability to convert earned income into passive income. And portfolio income isn't just about financial strategy. It is a mindset. It is about being intentional, strategic. It's about building now to create freedom later in preserving what you've built so that you don't just survive retirement, but you're actually able to enjoy it. So whether you are on the doorstep of retirement or you're already inside. Ask yourself the question, is my money working for me or am I still working for my money? That right there is the key to financial freedom.

Speaker1:
That's right. I mean, you know, we say it a lot, but it's like, you know, you want your money working as hard for you as you've worked for it. And that really brings it home. I feel like, because, you know, you do work really hard for your money all throughout your working life. And then when you get to retirement, yeah, it's about not working. But as you say, it's about much more than that. It's about making sure that you have planned so that your money can work hard for you. You can have that passive income or portfolio income. You can have the freedom to then go about and do the things that you want to do in those years, because that's what that time really is all about. It's it's having that freedom. It's having that peace of mind and the control over whether or not you're going to have that really, by and large, is in your hands, folks. So you gotta you know, Mike, you got to just be prepared for it. And, um, what do we always say about proper prior planning? Right.

Speaker5:
It prevents pitifully poor performance, Matt.

Speaker3:
That is for sure.

Speaker1:
So of course, as you get closer to those retirement years, Mike, the question becomes really, really important. Are you taking too much risk with your retirement savings because, you know, as as you get closer to that retirement date, uh, whatever date you may have circled on your calendar or whatever date your money says you can retire, it is really you know, the runway gets a lot shorter, and you've got a lot less time to make up for any losses you might experience. So you've got to make sure that you're taking the right amount of risk for you and your situation right now.

Speaker3:
Yeah, there's no doubt both retirees as well as Pre-retirees have been facing some really difficult decisions lately as market volatility has been applying pressure to their wallets as well as their retirement plans. And some people who have retired are actually unretiring and are deciding to push back. The other folks who haven't are deciding to push back their retirement, and some are not even sure whether they're going to be able to retire at all because their portfolios have taken a hit. Right? Yet there is a common thread among American retirees, folks. They cannot seem to let go of their stock market habits. And so this recent Gallup survey found that among older Americans aged 65 and older, that almost two thirds so 63% still own stocks, which is owned or, excuse me, up from 53% of Americans in that same age group. That was prior to the Great Recession, which was in 2001 through And seven. So it is important to remember, folks, that as you near and as you enter retirement, you have less time to make up any big losses. Which means that balancing both safety and risk is an important point to consider with your financial professional. So when markets are good, people easily forget what happened pretty recently, right. We're going to talk about those here in a second Matt.

Speaker1:
Yeah. It's so funny because you know, we were we had talked about um, I feel like after, you know, things sort of went haywire post-pandemic with the markets and everything like that. And, and we had seen, um, you know, just very like even with, say, something like inflation, we would often talk about, well, you know, inflation came back and reared its ugly head. It's still rearing its ugly head these days. Um, after a period of very low inflation for a long time. So we were lulled into that sort of false sense of security, I feel like during, you know, up times in the market, those, those bull market periods, we sort of experience that same thing when we're thinking about our investments because we're lulled into a false sense of security thinking, oh, well, markets are going up right now and they've been going up for a while. It seems like they've always been going up. But but no, there have been times where that has not been the case.

Speaker3:
No, I mean, people tend to forget what we called the lost decade. And we spoke about this a lot on a show a couple weeks ago, and that's the ten year period from December 31st of 1999 through the next ten years, ending December 31st of 2009, when the S&P over that ten year period actually lost almost 1%. Right? Well, why did that happen? Well, we had the 2008 financial crisis, and from its peak, uh, in October of 2007 to its lowest point in March of 2009, the S&P lost approximately 56% folks, 56% of its value, and approximately 8.7 million jobs were lost between 2008 and 2010. And so what ended up happening? Well, the government intervened with bailouts and financial assistance to stabilize the financial system, but the Tarp act authorized $700 billion to rescue banks and other institutions. But how many of that actually filtered down, or how much of that, I should say, actually filtered down to the average American citizen? Not much.

Speaker1:
Yeah. You know, it's funny because it is very easy to remember what happened and forget what happened at the same time because it's like, is it, you know, we're we're, um, several years removed from all of that now. And so it's like, oh, yeah, you know, it's not top of mind, so you don't really think about. But if you take just a moment and remember what it was like during those days, scary, scary times for especially for anybody who was very close to retirement at that point. And, you know, we do have a, you know, down years. They do happen. But that time period. Uh, boy, we haven't seen much like that, uh, in, in our history.

Speaker3:
Yeah. And for any of you that may have worked with some of those older folks who might have been planning on retiring when when 2008 happened, you know, that wasn't a very fun topic at Christmas parties about, you know, how much money did you lose, right? And you know everybody. Well, I lost half. How much did you lose? You know, and and people near and dear to me got affected by that. I mean, I saw people literally lose everything. I was affected by that. My mom was affected by that. And and so, you know, now we try to develop, you know, strategies that no matter what the economy is doing, people in that that follow the strategies that we like to, you know, put into a portion of portfolios. They can have that peace of mind knowing that that never has to happen again, right? They don't have to worry about where their income, especially in retirement, is going to be coming from.

Speaker1:
Yeah. I mean, that's that's so true. And it really is, um, essential, you know, because you never know. Um, you know, I will say my crystal ball is broken. You never know when the market's going to have a down year, right? I mean, sometimes, uh, economists can be like, okay, look, things are not going to be maybe that great going forward in the economy. So then that could have an effect on the markets and market growth and all those things. And so what you've got to do as you get closer to retirement, of course you've got to be more prepared for that. I mean, you know, you look back historically and even as recently as like, uh, 2022, I believe it was 19.4% loss in the S&P 500. So, yeah, it was, um, you know, not that long ago where we saw significant downturn. Um, you know, again, it was it was not nearly as deep as, say, 2008, but it was a significant downturn in the market. So if you had planned on retiring in 2023, you were really feeling it because of that market downturn the previous year. So what I would encourage you to do, folks, is just reach out to Mike Zeno and get prepared for whatever comes, you know, the good times, the the not so good times. It can help you prepare for it all. Go to Money Matters with Mike. Com or give them a call at 70456015737045601573. And Mike it's it's an absolutely free consultation. You can you can just you know meet with folks and kind of, you know, get the ball rolling on a plan for them right.

Speaker3:
Absolutely. There is no obligation. You're only going to work with us if it's best for you. But in in doing the consultation, we can discover a whole lot of stuff, right? If you're paying unnecessary fees in your IRAs, your 401 S, we can help make those much more efficient. If you're paying too much tax, we can help you streamline that. If you are approaching Social Security or Medicare age, we can help optimize each of those claiming strategies. And then, you know, bottom line is it's it's your money. And if it matters to you, it matters to us. So (704) 560-1573 or just reach out on the web or on any of the socials, and we'll get you on track to financial freedom in, uh, in retirement.

Speaker1:
And that is what it is all about. And also you can Mike, can help you avoid big retirement mistakes. And there are a couple here that we wanted to highlight, uh, that, uh, that he can help you avoid and that we can help you avoid here on the show as well. Um, because, you know, hey, just by listening to the show, you're taking a step to educate yourself about retirement and about being prepared for it. Right? So, um, that is sort of what this segment is all about. Are these two retirement mistakes that we want to highlight that people make. And one might kind of goes to the heart of this week's show, and that is thinking that retirement is about one big magic number that they've, you know, saved up or invested over the years. And it's really not.

Speaker3:
It is absolutely not. The number is irrelevant. I remember, you know, a decade or so ago, fidelity used to run these these, uh, these commercials with people walking around with numbers floating above their head. And it's like, you know, what's your number? Well, the number actually is irrelevant. It's what that number can do and how the strength of your income plan is, is actually formulated. That is much more important than the total balance right of your savings. And so too many people have all or a majority of their retirement savings in tax deferred accounts, such as 401 S, 403 B's, Tsp's IRAs. And this means that the government is, uh, now a major partner in your retirement. You got Uncle Sam, you know, right there up underneath your right arm as your buddy in retirement. And so you're going to be subjected to significant and likely rising effective tax rates. And so to correct this, we recommend focusing on different sources of retirement income, social security pensions, annuity, uh, passive income streams. Right. That is what is going to help you and why we concentrated at the beginning of the show on a quote from Robert Kiyosaki.

Speaker1:
Yeah. Taking that income and or taking that, that earned income throughout your life, turning it into passive income in retirement. Super, super important. And then another big mistake too is, um, you know, it goes back to sort of another quote that we've, that we've, uh, said uh, a few times here on the show, Mike, and it's, you know, like, when's the best time to plant a tree? You know, 20 years ago or 100 years ago, however long ago. When's the second best time? Today? Um, but the second mistake that we want to talk about is that people don't start saving or planning early enough.

Speaker3:
Right? And so Albert Einstein, who's a pretty smart fella, I guess you guys would agree listening, right? He once said that compound interest was the eighth wonder of the world, and those who understood it would earn it. And those who didn't understand it would end up paying it. Well, the earlier that you start saving and investing, the more time that your money has to grow. And so that your hard earned money, remember, is actually working for you instead of against you. And it is never too late to catch up going on what you just said. When's the best time to plant a tree? Right? Waiting too long to plan for retirement could mean that you're going to have to endure a massive lifestyle downgrade. And so there are several factors that need to align and things that you should absolutely Consider. And those are social security planning, tax planning, pensions. You know, when should you turn on income and when should you take the lump sum? Right. That's a big, huge question. Um, have you established a spending plan that considers rising inflation and more importantly, considers rising taxes? Have you thought about legacy planning? Estate planning? All of these things that if you wait until you're in your mid 50s or, God forbid, 60s or beyond to start even thinking about you are way behind the eight ball, and that is not the place you want to be going into retirement.

Speaker1:
Yeah. Absolutely right. I mean, it's like, uh, you know, hurricane season just, uh, is is upon us here. And I think about obviously we're we're inland, uh, from from being concerned about the immediate impacts of hurricanes, although we've had the flooding, definitely. And all of that these past couple of years. Oh, Lord, have we have we ever. But, you know, people along the coast, let's say, because they get all the winds and everything. Right? And so it's like, okay, well, if hurricane season, you know, it's here right now. And so, um, you know what? I'm not going to start planning now. I'm going to wait until a storm comes. And then I'm going to see about getting, you know, hurricane shutters installed or making sure, you know, whatever else other preparations I need to make. Well, it's a little bit too late at that point. You know, if the storm has arrived, it's too late to prepare.

Speaker3:
There's absolutely no doubt. I flew into Fort Myers this past weekend, uh, to go to a conference to, you know, sharpen my brain. And that area was hit pretty hard, you know, for for by recent hurricanes. And and those who were prepared obviously did not suffer as much as those who weren't. So when the storm is imminent, you know, it's coming. You just don't know when the people who were prepared end up enduring much, much better.

Speaker1:
Yeah. Absolutely. Right. So you can withstand whatever might come if you plan properly. And you can do that by getting in touch with Mike Zeno and coming up with a plan for you that you know is going to weather whatever storm might come your way. Money matters with Mike comm once again is the website. And so, Mike, the bottom line really is that no matter what storm comes your way, you really should be, you know, working with a financial professional, someone who's licensed, someone who does this each and every day so that you can just just be prepared because that, you know, really is key, uh, to, to a successful retirement.

Speaker3:
Yeah, no I agree. And a lot of folks don't know that people can actually establish their own personal pension. Right. If you don't have a pension, if your employer doesn't offer one, maybe they have a 401 K, maybe you have some IRAs, maybe you have an old 401 K from a previous job. You can take that money and establish your own personal pension, which is a guaranteed lifetime income stream, using a similar strategy that companies and governments use to guarantee benefits to former employees. So this study from Northwestern Mutual. Of the attitudes and behaviors of American adults toward money found that 71% of them felt that their financial planning needed improvement, but only 29% work with a financial professional. So research definitely suggests that people who work with a financial professional feel much more at ease about their finances, and could end up with about 15% more money to spend in retirement. So do not partner with any advisor or any financial professional whose strategy does not align with you and your overall risk tolerance for your money, because that is a personal preference, right? But risk management strategies can vary widely among financial professionals. Some actually prefer aggressive stock market investments, while others may encourage more safe investments that can provide, you know, pension like income. So make sure that you look for a financial professional whose risk tolerance and strategies that they use align with what your goals and your objectives are for a safe and secure retirement. Matt.

Speaker1:
That's it. In a safe and secure retirement is the goal for each and every person who listens to this show. I know. And so, folks. Yeah, just reach out. Mike Zeno will help you get there. And you can give him a call (700) 456-0157 three or just go online to Money Matters with mike.com. Well Mike that's going to do it for this week's show. It has flown by as usual. But I thank you of course as always for the expertise that you bring to the table each and every week. And we'll talk to you next time.

Speaker3:
Matt, thanks for everything that you bring to the show, but most importantly, thank you to each and every single one of our listeners, whether you're listening anywhere in the Carolinas on a Saturday morning, on the radio or anywhere around the globe on podcast. If you learned something today, please share the show across all your social platforms. Because a rising tide does lift all boats. And if we help answer just one of your questions, chances are other people are asking the exact same questions. So whatever you're doing this weekend, we 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 comm or pick up the phone and call 704560 1573. That's (704) 560-1573. 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 guarantee of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

Speaker1:
Remember, all of Mike's listeners receive a free financial consultation just for listening to the show. Visit Money Matters with Mike comm to learn more and schedule an appointment. Thanks for listening to Money Matters with Mike and subscribing wherever you listen to podcasts.

Sonix is the world’s most advanced automated transcription, translation, and subtitling platform. Fast, accurate, and affordable.

Automatically convert your mp3 files to text (txt file), Microsoft Word (docx file), and SubRip Subtitle (srt file) in minutes.

Sonix has many features that you'd love including enterprise-grade admin tools, world-class support, secure transcription and file storage, automatic transcription software, and easily transcribe your Zoom meetings. Try Sonix for free today.