Learning From the Habits of Wealthy Retirees

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11.8.24: 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. 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 Zeno.

Speaker3:
What's up people? Welcome to the show. I am Mike Zeno, coming to you from Fort Mill, South Carolina. Just wanted to wish each and every single one of you a happy Saturday. We have got a ton of amazing information for you today because we are going to show you just how you can develop some really healthy money habits, as well as how you can change your mindset about saving and preparing for retirement. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matt, how are you doing today, brother?

Speaker1:
I'm doing great, Mike. You know, I'm just about back into the swing of things I told you last week I had I had just gotten back from a vacation then, and I think now my my brain is just working right again at this point. So yeah, it's it's it's taken a while. You know, if you go on a vacation like that, especially one that lasts longer than just a few days, the brain decides to take some time off, and it can be sometimes a little bit of a challenge to get it up and running again.

Speaker3:
Yep. Just need that jumpstart, right? Nothing like diving back in and having to dig out from everything you missed to get that jump start happen, and I, I relate to that remark? Absolutely.

Speaker1:
Exactly. How are you? How are things going as far as your daily life, sir?

Speaker3:
You know, we are thriving. We are helping a lot of folks. You know, we have health, which is, you know, first and foremost, paramount. I can't thank God enough for that. We have happiness, you know, and we're changing the lives of our listeners. And I don't make that statement lightly. Okay. When I see the light bulb go off in people's eyes, when I see streams of happy tears running down the faces of folks because I've just shown them how they can retire, making the same or similar money as when they were working. Um, you know, that that that just makes me so, so filled with joy and and the fact that I sleep very, very well at night. Uh, you think I look a lot better than I do?

Speaker1:
Uh, y'all look fine to me in.

Speaker3:
In that arena, for sure.

Speaker1:
There we go. Well, no. And but seriously though, it is why you do the show each and every week. It's also why you do the work that you do working with individuals and, you know, and families to get their financial boat and going the right direction. You know, all the sail pointed the right way. Um, and so, you know, folks, if this is your first time listening to the show, first of all, we say thank you so much. If you're listening to Money Matters with Mike for the very first time. Um, but also want to give you a bit of a preview or an explanation. That is, as we start off, with why Mike Zeno has chosen to do this show and and does it each and every week on the air in the Charlotte metro area, but also on the podcast and, you know, on social media and, and elsewhere. Um, also, Mike, it really starts with education. That's that's kind of the number one thing here.

Speaker3:
It is. And we mentioned this on last week's show. And by the way, folks, if you did not listen to last week's show, I urge you to go back and listen to those 30 minutes of pure gold. It was an excellent show. It was packed with a lot of really, really good, digestible, um, you know, tidbits in there. So please go back and do yourself a favor and listen to that. But again, number one is the fact that I just want to help educate both pre-retirees as well as retirees and provide valuable information as well as insights that enables you to make much more informed decisions about your financial future. Um, I understand the fact that applied knowledge is power. Knowledge is not power. It's only if you take it and actually put it into practical application. And we don't want any of our listeners or our clients to ever feel powerless in retirement. And that means things like staying current on the latest developments, the latest trends, best practices as they all relate to planning for a successful retirement. Because the financial world continues to move, it is not stagnant and we don't want any of our listeners left behind.

Speaker3:
Number two, I want to address all the different types of challenges and obstacles that you know pre-retirees as well as retirees often face, and offer them some smart strategies as well as solutions to help navigate each and every single one of those obstacles. I want to empower smart financial decision making by sharing knowledge and expertise, as well as examples of how we are helping our listeners and our clients each and every single day. Right. I want to help promote financial literacy. The financial education system in America is broken. That was a juicy segment in last week's show. So many people feel like financial freedom is just simply out of reach. And that's not the case. I don't care how much money that you make. If you are smart with what you have, you can turn that into something that is able to bear fruit. Okay, we are here to answer your questions, to help you understand just what you need to do in order to reach your own specific retirement goals. And I want to serve as your trusted guide, your resource for any questions to help you manage the complexities of preparing for and thriving in retirement.

Speaker1:
And that is all to say that Mike Zeno is, of course, here on the air, also on the podcast, but also just a phone call away. Um, just reach out to him, get your custom retirement plan started today, because that is where the rubber meets the road, right? 704 5601573. 704 5601573. Mike's answering that just as as we speak here. Money matters with mike.com is the website as well. That's website once again money Matters with mike.com. There's a no obligation consultation that can be yours if the price is right. And let me tell you the price is right because it's absolutely free. Right Mike.

Speaker3:
Mhm. It doesn't get any better than free.

Speaker1:
That always fits right into my budget. So there you go. Money matters with Mike. Yeah money matters with Mike. Dot com once again is the website. All right. So a lot of great stuff to get to here today including some money habits that wealthy retirees had in common before they retired. We'll go into that in detail here momentarily. First though, let's get some inspiration for that conversation, shall we? It's our quote of the week.

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

Speaker1:
This time around, the quote comes from Jim Rohn, who said, this motivation is what gets you started. Habit is what keeps you going. And I love that because it's like, yeah, you got to have some motivation, but that, you know, the motivation is the thing that helps you, you know, take that first step or take the first few steps. Then once you have that, you know, sort of ingrained in you, it becomes habit.

Speaker3:
Yes. One of my good friends, one of my mentors, I'll even throw his name out there. His name's Greg. He always says that the habit is the goal, right? You should make the habit, the goal. And I think Jim's quote applies very well to retirement planning.

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

Speaker3:
In the beginning, motivation might drive somebody to start saving. Maybe you, uh, envy. A friend's retirement lifestyle? Or you just simply realize that time is ticking and that can definitely spark a sense of urgency. The initial motivation is essential as it pushes people to take those first crucial steps, right? Setting up their retirement accounts. Learning about investment options. Seeking professional guidance. But motivation can fluctuate okay. And that is where habit becomes key. And the goal? Habit. The habit is the goal. Okay. By developing consistent savings habits, automatically setting aside a portion of your paycheck each and every single week, you know, routinely reviewing your investment allocations, a person can stay on track even when the motivation itself wanes a little bit. And just as habits sustain other long term goals. Um, those small, steady actions tend to accumulate over time, ultimately building the financial security that you guys are aiming for in retirement. So make the habit the goal.

Speaker1:
Yeah, the habit, make the habit, the goal, and then whatever that other thing that maybe was the motivating factor in the beginning that, you know, retirement goal or whatever goal you had set for the future that can become reality. If you make that habit like you have that goal in your sight, right? But then you focus. You make your focus on just building that habit and making the the thing that you need to reach that goal become a habit. And over time, you're definitely going to reach whatever goal you would set for yourself. In the beginning.

Speaker3:
You know, I saw a great visual on this very thing. I'm not even kidding. Yesterday I was scrolling through some of the people that I follow on Facebook and, you know, some people have some motivational quotes and some people just have some really, really good information. And it was a chart and the first chart was on the top and it was motivation. It had this big, huge bounce and then a smaller bounce, and then a smaller bounce and a smaller bounce and the bounce. Just think of a ball. If you throw a ball up in the air, it's going to bounce hard and high first and then it just slowly wanes out. And then below that it just said consistency and it was just the same bounce over and over and over and over and over again. And it was so powerful. And I just realized we had already had this set up as a topic to speak about. But I just realized how applicable that is in, you know, this particular segment when talking about retirement planning.

Speaker1:
Yeah. No, it really is that. That's absolutely right. And, you know, you got to build, as we say, build those habits. Um, and that visual very apropos for the way that that motivation just kind of, you know, can can wane over time. And your motivations for doing things can change over time. So build the habit, you know. And here's the thing too. I mean, it goes directly into this story that we ran into about about habits and about wealthy retirees and what habits they had before retirement and how that relates to today's pre-retirees. Right. So this was on Gobankingrates.com. And, you know, when it comes to retirement planning, wealthy retirees did have certain money habits in common during their working years. And the first of those that became a habit for them was that they prioritized savings. So, so important.

Speaker5:
It is.

Speaker3:
Important. And I want to point out to each and every single one of our listeners, because I know we have listeners who are not wealthy. Okay. I was not wealthy when, you know, I was in my 20s and 30s and even 40s, I had to learn a lot of different things, you know? So no matter how much money you make, what we found in this study found is that wealthy retirees made it a point to save a substantial portion of their income consistently, regardless of economic conditions. You know what that translates into? You know, for me, Matt, they paid themselves first. They understood the importance of doing that. Number one, paying themselves first. But just as important, if not more important, they understood the importance of living below their means and focusing on long term financial goals over short term pleasures. Okay. Those individuals invested wisely. They diversified their portfolios in order to minimize the risk and then maximize their return on their money. Yeah.

Speaker1:
And those are that's, you know, something. And all of those different individual portions of prioritizing savings that you just sort of went over. There are things that people can do every day, as you said, no matter how much you might have. And we talk about wealthy retirees today because they're wealthy today. Maybe they necessarily weren't wealthy back in the day when they started first retirement, their first bit of retirement planning or focusing on the future. Right. They're wealthy today because of these habits that they established. And that very first one is so important. Prioritizing savings, they also maxed out their 401 K plans. You got to do that. I mean, because if you don't do that, especially if you have the employer match, right, like you talk about, if you don't take the employer match and get and max that out, at least you're telling me you don't like free money.

Speaker3:
Yeah, yeah. I'm like, you don't like free money, do you? And they're like, what do you mean? I'm like, well, you told me your employer matches 5%, but you're only doing three, right? And so you're leaving 2% on the table plus the 2% that they're going to contribute on your behalf. So it's really 4%. And when you do that month in and month out, year in and year out, decade in and decade out, that adds to a considerable amount of money. But wealthy retirees didn't just contribute to their retirement accounts, they actually maxed them out. And so we know that a lot of people are not in a point in their career when they can max out their retirement accounts, but do more than the minimum. I think that's the message, right? Do more than the minimum. And once you hit stride and you're in your prime earning years and the you know, the kids are not on the teat as much, so to speak, and you're able to have a little bit more discretionary income instead of you're using your discretion to take a vacation or to buy a new set of golf clubs, or to buy that new pair of shoes instead, save it. Okay? Most people contribute about 3% of their paycheck to their 401 K plans, whereas the wealthy people themselves, they challenge themselves to save before they spend spending comes as a reward only after they have paid themselves first.

Speaker1:
Yeah, and if you do that future, you will definitely be thankful to present day you for doing that. Very much so, because eventually Future You is going to be present day you. So keep that in mind as well. And then, you know, here's one thing that I love to do and we don't meet. And I don't mean this phrase to sound like, oh, you just do this one thing and you leave it alone and you forget about it. Right? But the old saying from the old, what was it, the Ronco, um, uh, late night infomercials. Right. Set it and forget it. This is one thing that you can do, setting it and at least forgetting it for a while and then revisiting it. Right? So set the automated investing to take place. Just just set that in motion so that you can get it done. And you don't have to think about it all the time. You don't have to actually take that action if it happens automatically. Boy, that makes your life so much easier.

Speaker3:
It does. Wealthy retirees, folks, they don't necessarily day trade. Instead, they automate their investments into low cost index funds or mutual funds that that have very, very low expense ratios. I remember talking to my daughter, who opened up an acorns account that just simply rounded up the change, okay. On every single purchase that she made just to the next whole dollar and started an investment account for her. Now, at first, you know, after a little bit of time, she had it allocated completely wrong. It was all in bonds, and at the time she was like 21 years old, you know, and so a 21 year old does not need to be in bonds, folks. She needs to be exposed, you know, to the stock market. And so when we made that switch, it's amazing how much faster it grew, to the point where she's actually loving that automated thing. That's just one example of something that is super simple to do. Even if you're in your teens or your 20s, much less your 30s, 40s, 50s 60s and beyond. Right? So when you automate your investing and pay yourself first, it is so much easier to live below your means.

Speaker1:
It really is. It changes the game for you there once. If that is set up automatically, you know it's it's not as if you have to make that conscious decision each and every time you want to invest or you know, you can you can really just set it up to go at a regular interval or do something, like you said, that whole round up thing. There's also, I think some where, you know, for each transaction on a, on a debit card or through a checking account or something like that, they can they'll take it and, and put a dollar or, or $0.50 or something like that inside an investment account or savings at least, or something like that. So there are ways to automate all of those things, which I think just just really help so, so much because you don't have to keep it always top of mind. Automation can work in your favor. And this one I love. I think this is probably my favorite of this whole list of things. The habits of the wealthy retirees today. They did not subscribe to the keeping up with the Joneses mentality. That's so important because you know what the Joneses could be, and they might have nice cars and nice houses and stuff, but they may be in debt up to their eyeballs.

Speaker3:
You know, it's so funny. And you can see people keeping up with the Joneses in all areas of life. Right? Think of a Saturday morning. You start here. You hear that first lawnmower crank up in your neighborhood, and then, you know, that guy's out there cutting his grass. Well, then by the mid-afternoon, it's like everybody's out there cutting their grass. Or you see one person that, you know, washes their vehicle that day. Well, by the end of the weekend, everybody's got a clean vehicle. You see one person that you know does something neat in their in their backyard. Then the next thing you know, it's like the entire neighborhood is doing something neat in their backyard. Well, one of the most powerful habits that wealthy retirees share is a mindset of living below their means. They're not busy trying to impress people that they don't like with by buying things that they don't even need, right? They focused on building wealth for their future, rather than spending unnecessary money just to keep up with their friends, their family, their neighbors, the Joneses. Well, guess what, folks? Now those people are retired and the Joneses are still working to fund their overinflated lifestyles. I love not keeping up with the Joneses.

Speaker1:
And then I mean, one really important thing to I think actually the second, my second favorite on this list, is that the people who are now retired and are wealthy as a result. It's really spent time asking the pros. They went to professionals and didn't just try to do it on their own.

Speaker3:
Yeah, I mean, let's face it, whatever you do in your professional career, I would assume that you're pretty good at it, right? Otherwise, you would not keep your position working for said company. Okay. Well, people who don't work in retirement planning day in and day out and see hundreds and thousands of different types of scenarios, they're not going to know how to how to react and respond to different obstacles in the financial world that get thrown at them. So if they don't take the time to meet with a financial professional who does this day in and day out about their specific situation, well, those people miss out on valuable advice and guidance. They miss out on tax strategies, as well as just plain general financial planning that provides so much more clarity about the future. Matt.

Speaker1:
Yeah. I mean, that's the thing. You and you said it, you know, go to the the person who is doing the work that they do each and every day and are really good at it. Like, you know, if I need brain surgery, I'm not going to go to a car mechanic. You know, that's just just not what it's going to happen. If I need my car fixed, I'm not going to go to the brain surgeon. It's the works both ways, right?

Speaker3:
Nor are you actually going to try to, you know, do neurosurgery on yourself, right? I can't imagine that ever being in the realm of possibility. Uh, I mean, but yet why people think that they can, you know, go alone, okay. On their own financial journey. It really kind of just blows me away. You wouldn't you wouldn't try to cross the Atlantic in in a dinghy by yourself. Right. You would much. Hopefully you would want to have a lot of preparation, a lot of professional advice and guidance to, you know, just strengthen your chances of success. And when you look at people who have retirement or financial advisors or planners or professionals, right, those people tend to have around a 60% more success, more successful, I should say retirement than those who don't. Okay. So if that is not a sobering statistic, I don't know what is.

Speaker1:
And that is very sobering, very eye opening. I feel like for a lot of people, and I know a pro that you can start working with today, his name is Mike Zeno, and you can actually reach out to get started on your own customized retirement plan. You can actually do that right this very second. All you have to do is go to the website. It's Money Matters with mike.com. That is money Matters with Mike all one word.com. You can also give him a call on the phone. 704560 1573. Is that number. And Mike, I know that this is really what you love doing is getting into the weeds with people and going through with a fine tooth comb, their financial situation and helping them with their plan.

Speaker3:
Right. So I mean, my my plea to those that are out there in listener land is, let us help you with your plan. We want our clients, as well as our listeners, to live the retirement as well as the lifestyle that you deserve. Okay, don't live that just in case. Retirement, where you're afraid to spend money that you saved for your golden years. Okay. You need to establish a solid income plan and then enjoy those play checks that you work so hard for. We find that way too many retirees become fearful of the news, all right? They can become fearful of the stock market, and as a result, they are super afraid to spend any of their money. Well, when those just in case retirees actually pass away, then their children and their heirs enjoy all the money and they do all the things that the retirees were planning on doing, but then were too scared, like going on vacations, joining the country club, buying the fishing boat, and doing all those things that they should have been doing. Right. Don't be that person. Be somebody who is prepared and is confident in their plan. Contact us today. Learn more at Money Matters with Mike comm. Pick up a phone call (704) 560-1573. Schedule your complimentary consultation and let me help you get on track. Okay. Many of our listeners have enjoyed seeing the various personal pension options that are currently available in the marketplace today, but in order for you to see it, you got to give us a call.

Speaker1:
Yeah, right. Absolutely right. And that number once again 704 5601573704560 1573. Well just a couple of minutes left here in the show, Mike. And we're going to use our time to talk about something that is so uplifting. It is actually the the national debt. We like to give periodic updates here on the show as to how much in debt we are as a nation. And right now, actually, just as of, I don't know, not long ago, last time we checked $35.89 trillion. Mike. Is that. That's correct.

Speaker3:
That is correct. $35.89 trillion and counting to the tune of about $10 billion. Okay. Each and every single day. It's it's it's not it's not a number we like looking at. And, you know, when we talk about the national debt and what it means, we're talking about things like inflation concerns, increased government borrowing to finance the debt can contribute to inflation, and that erodes the purchasing power of retirement savings, as well as all the retirees who live on fixed incomes. Think about things like the tax implications, okay, to service the national debt, the government might need to raise taxes, which could reduce disposable income for retirees and pre-retirees. Not to mention, you know, the programs of Social Security and Medicare, because national debt can put pressure on those government programs, potentially leading to cuts or reduced benefits. And let's face it, folks, many retirees, most retirees rely on that stuff. Economic stability is threatened, okay, which can affect the overall financial markets and the value of each and every single one of our listeners portfolios, and then understanding the national debt, as well as its potential impacts, can help Pre-retirees make much more informed decisions about their retirement planning, such as how to diversify investments, how to prepare for potential economic changes. So if you feel like real inflation, not the numbers that they want to give us, but real inflation is outpacing your annual cost of living adjustments, okay. We certainly believe that. Okay. Then you owe it to yourself to have a retirement plan reviewed and make sure that you won't lose buying power in retirement. Okay. Listeners can meet with us just by giving us a call. (704) 560-1573 or by visiting Money Matters with Mike comm.

Speaker6:
And I would.

Speaker1:
Encourage all of our listeners to do that very thing right now. Well, that is going to do it, Mike, for this edition of the show. And as our time has just run out here, but I thank you for all that you bring to the table each week, and we'll do it again next time.

Speaker3:
All right, Matt, thank you for what you bring to the table. Okay. But most importantly, thank you to each and every single one of our listeners, whether you're listening local in the Charlotte Metropolitan Statistical Area or you're listening anywhere globally on podcast. Without you folks, we don't have a show. As a general reminder, if you did not hear the last 30 minutes of last week's show, go back and listen to it. And if you learn anything, please share the show with all your friends, your coworkers, your family members, anybody that you think could get benefit. 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, Siltation. 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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