New Year’s Resolutions We Can Help You Keep

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1.5.24: 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 as a show designed to arm you with information and give you plenty of meat on the bone to chew on every single week. And today we are absolutely bringing it again. First of all, though, I wanted to wish each and every single one of our listeners a very Happy New Year. I hope that you enjoyed the holiday season and are looking forward to 2024 as much as I am. So on today's show, we're going to talk about how to start 2024 off on the right foot, financially speaking, of course, 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, brother? Happy New Year to you. I'm doing.

Producer:
Great. My happy New Year to you as well. You know, it's it's been, um, a busy, busy time of the year for me, kind of surprisingly. But, um, it's been a good start to 2024 so far. I can't believe, you know, it'll probably be seemingly just a couple of weeks down the road we'll be talking about. Oh, well, Christmas is around the corner again because last year just really flew by. You know.

Mike Zaino:
Last year definitely flew by. In fact, the day after Christmas, I shared 364 days until Christmas and, uh, people started cracking up with that one. So, yeah, there's a lot of folks that that, uh, they live for that time of year. And, you know, I enjoy the holidays as much as anybody else. But, you know, I'm ready to jump back in by the time January starts and, and and get back to, you know, helping people and, and making a difference in folks lives. Yeah.

Producer:
And that's what the show is all about too, here. Um, and, you know, for anybody who's just tuning in, maybe for the very first time, um, that's really what the show is all about. As I said it, it's about that financial education. It's about really helping you as it is the start of a new year. Get things started in the right direction. If you know, being better with your finances. It's a popular New Year's resolution. How often do we stick to it? Well, that's another thing, but I know a guy who can help you stick to it. His name happens to be Mike Zaino, and he's the host of this show. So, you know, I get all kind of works out in the end here. Uh, but we'll talk a little bit about that, you know, some, some New Year's resolutions that we can help the listeners keep a little bit later on here. Mike, we've also got a New Year financial checklist. Uh, you know, things to jump start the new year for folks, rebalancing your portfolio to start off 2024. Maybe that's a good thing for you to do in your particular situation. At least look at it, explore that possibility. Um, and some other stuff that is all New Year themed as we start off this new year.

Producer:
Um, also want to encourage our listeners to go and find us online. We are at Money Matters with Mike.com. It's Money Matters with Mike.com all one word you can go there to find uh, podcast episodes, all of our episodes that we have done over the last a year and a half plus now um, are all posted online on the website, and you can also get them, uh, wherever you listen to podcasts. You can get them on, uh, Apple, on, uh, Spotify on iHeart and all the big ones, they're audible everywhere that you get your podcasts, you can find us. You can also go to our YouTube channel. Uh, just search Money Matters with Mike there. Same deal on Facebook. And if you are so inclined and we hope you are, give Mike a call as well. 704 56015737045601573. And, uh, we'll talk, you know, as we go along here about all of the different ways that Mike might be able to to help you out, because that's the thing, Mike, I feel like a lot of people either think that, oh, they, you know, maybe don't have enough money to get, uh, you know, advice from a professional or to need that advice from a professional. Or they might just be intimidated, you know.

Mike Zaino:
Yeah, yeah. And that's the biggest thing I, I seek to remove is any intimidation factor. I mean, if we want to have a phone conversation, we can if we want to meet at a Starbucks or a, you know, a coffee shop, we can if you want to come to the office. Do you want me to come to your house? I mean, if I'm within, uh, if it's within my power to be able to do so, I'm. I'm more than happy to remove any barriers, uh, and kind of just introduce you to the world of financial planning without any of the pomp and circumstance. So, you know, I definitely want all the listeners to feel very, very comfortable because I don't care whether you have ten grand or 10 million, everybody gets the same Mike Zaino.

Producer:
Yeah, absolutely. What you see and what you hear is what you get, uh, when it comes to that. Very, very much so. All right. So, uh, let's kind of start diving into things here this week for the first episode of 2024. And as we do that, we'll begin, as we always do, with our quote of the week.

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

Producer:
And this week, our quote comes from a man you may have heard of before, Franklin Delano Roosevelt, the 32nd president of the United States. Uh, FDR as he is, uh, as he's known and has been known for a long time, of course, uh, he was the longest serving president in US history, was elected to four terms, died very early on in the in that fourth terms in 1945, um, but served during the depression during World War two as well. A lot of great experience, of course, and and served as a great inspiration for so many people of that generation and beyond. And he did and shared a lot of wise words. And so definitely, I'm always reminded of the only thing we have to fear is fear itself. You know, I think those are some of the most famous, uh, words that he ever spoke. But this quote that we're sharing this week from FDR, is this the only limit to our realization of tomorrow is our doubts of today? Boy, another great, uh, quote there, and sort of in that same vein is the only thing we have to fear is fear itself. But, you know, talking about kind of our dreams, our aspirations and where we want to go and what's holding us back.

Mike Zaino:
Yeah. I mean, his quote emphasizes the idea that our doubts and our uncertainties in the present can be the primary obstacles to us actually achieving future goals.

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

Mike Zaino:
Today's meat on the bone segment. The very first one of 2024, I wanted to talk about his quote in the context of financial preparation for retirement, because I think that FDR is, quote, highlights the importance of overcoming doubts and then taking proactive steps in order to secure a stable and comfortable retirement. So the preparation involves planning. It involves saving. It involves investing wisely to ensure that you have sufficient income during your retirement years. It's not about amassing this big nest egg dollar amount, but in fact what that nest egg can produce in income. So the first thing folks have to do is overcome any doubts that you have doubts about the economy, doubts about any investment risks or personal financial capabilities. All of those can hinder retirement planning, and it is crucial to educate yourself about different financial matters and seek professional guidance to help you address those uncertainties. The second thing would be to make sure that you're setting very, very clear financial goals, because establishing clear retirement goals helps overcome those doubts and provides the roadmap for your financial plan itself. So you should be thinking about defining what type of lifestyle that you want to have during your retirement. You need to estimate any of your future expenses and then you need to set realistic savings targets. Don't make them so high that they're unattainable, but make them high enough to where they're a little scary. And that's going to help you invest for the future. Because the quote suggests that your doubts should not limit the realization of tomorrow. Because guess what? The sun's going to set tonight, and it's going to rise tomorrow, and it's going to continue doing that forever.

Mike Zaino:
Whether or not you're around, that's a different story. But, you know, time will pass on. So this means being willing to invest for the long terme. And so while markets may have short terme fluctuations, this week, you know, was not a very good start to the markets. But a well considered investment strategy can definitely lead to help, uh, growth over time. And always make sure, folks, that you are continuing to learn that you're keeping abreast of different financial trends, different investment opportunities, and different retirement planning strategies, because when you do that, it helps to reduce your doubts and your stress about the retirement planning process altogether. So continuous learning enables individuals to make informed decisions and then be able to adapt their financial plans as needed. And always make sure that you have some form of risk management strategy. And so instead of you being paralyzed by your doubts and paralyzed by the potential risks, you're actively managing and mitigating those risks by diversifying your investments, by reviewing your, uh, financial plan on a regular basis, and then by adjusting your strategies in response to those changing circumstances. That's going to. Help contribute to a much more robust retirement plan. So I mean, be adaptable. That's going to help you build confidence. And just in summary, FDR's quote just encourages individuals to overcome those doubts and take proactive steps in financial planning, especially when you're talking about planning for the rest of your life. And by addressing those uncertainties and setting clear goals, investing wisely, and adapting to changing circumstances, each and every single one of our listeners enhance their chances of realizing a secure and comfortable retirement.

Producer:
Yeah, some great stuff there, Mike. And yeah, it's it's really all about how do you overcome those those fears? I feel like a lot of times people think, oh, well, it's it's easier said than done to overcome fear. And a lot of ways it is, um, to overcome those fears and those doubts that you might have. And so much of it has to do with things that are outside of what you can control, you know, I mean, it's you can't control the markets, you can't control the economy, you can't, you know, control this, that or the other. What you can control is how you respond to it and how you prepare for it. And that's really, I think, where you can overcome a lot of those fears and doubts.

Mike Zaino:
Yeah. People say often, you know, they're like, well, what if I invest my money in the market goes down and I'm like, what if it goes up? You know, I'll just, you know, whatever you throw me, I'm going to put it. But what if the opposite happens, right? The fact is that we've said it a million times. Our crystal balls are broken. But over the long terme, markets always go up. And so I don't want people being so reactionary that they cause themselves doubt, um, and drastic reduction in, in, um, growth over the long terme because over time the market goes up.

Producer:
Yeah, that's absolutely right. And that's been historically the case for as long as the markets have been around. So you're absolutely 100% correct in that. And um, you know, we'll talk a little bit more too about, um, you know, preparing and, and, um, you know, how you respond to things and prepare for things that could very well come your way a little bit later on in the show. We've got, of course, as part of our, uh, New Year's, uh, episode of Money Matters with Mike here in this first week of 2024, we're also going to share some things, folks, that you can do here at the beginning of the year to really, um, get things started off on the right foot, uh, for your, you know, financial life, your financial plan and therefore your financial future. Um, it's all kind of one in the same there. And so what we want to do is share this checklist that we're going to go through some really important things here to, to consider, uh, and to do to check off that list. And the very first thing, the very first box to check is a super important one. Pay off your credit card balances.

Mike Zaino:
Yeah, I think a lot of folks may have, uh, put a lot of Christmas in and a lot of New Year's celebratory, um, beverages and, uh, you know, party accoutrements, uh, on their, on their debit or credit cards. And so, you know, if, if you have the ability to minimize those debts, you want to start with the highest interest rates first. Okay. And most credit cards are going to have, uh, annual percentage, um, rates of 20% and up, okay. Which is, you know, extraordinarily high. And so you definitely want to get those paid down as soon as possible. Yeah.

Producer:
And that'll just that'll just kill you if you, um, you know, financially speaking, if you have that balance rolling over each and every month, just the interest alone is, uh, kind of insane. Um, and also, you know, another good thing to do is to implement, if it's right for you, a Roth conversion. And so that really can help you, you know, sort of minimize your tax burden. Uh, when retirement comes around.

Mike Zaino:
Yeah. So a lot of folks are very familiar with, you know, 401 S and 403 B's. And if you're a federal employee, you have a thrift savings plan. And they're also familiar with IRAs, the the individual retirement agreements. Right. But all of those, uh, savings vehicles are tax deferred unless they offer a Roth version. Okay. But the big thing with doing a Roth conversion is you may have some room inside of your current tax bracket to be able to pay tax at a known rate and convert that money from traditional tax qualified money over to Roth money by paying the taxes up front. And then that money grows tax free for the rest of its life. One big thing to remember with Roth accounts is that there are no required minimum distributions when you have your money in. A Roth IRA, so if you have already paid the taxes during that conversion, Uncle Sam is already received his cut. So if he decides to change the rules on us later down the road and raise taxes, well guess what? You're not going to be affected because you've already paid the tax. And so you just want to make sure that you complete any Roth conversions before you turn age 73, when currently that's the age when RMDs are set to kick in.

Producer:
Yeah, because if you've paid the piper, that's the thing. Um, if you've paid the piper once, um, Uncle Sam is not in this particular situation. Maybe some other situations, uh, who knows? But in a Roth, he's not going to double dip. Right? You've paid the you've paid the piper, and now, um, you can just, you know, go about your go about your business in retirement without having to worry about paying that, you know, more in taxes. Uh, that's really the advantage of a Roth. Uh, right. Uh, right now, I mean, you know, we're looking at a situation two, Mike, where in the not so distant future, um, taxes are very, very likely going to go up for, uh, pretty much everybody. And, you know, I think all tax brackets are going to see at least some sort of an increase. So, you know, if you can implement a Roth conversion now, um, before that happens and is, you know, it's likely to happen again in the future, I'm sure. Um, then you can really save yourself quite a bit of money. Um, so that, that, you know, when you get to retirement, you've paid less in taxes, that money is going to you so that you can enjoy your retirement and not to Uncle Sam, so that, you know, the whatever happens to it, happens to it, but then it's really out of your control.

Mike Zaino:
That's that's right. Matt. And for our listeners, what Matt is alluding to is, is the, uh, the Tax Cuts and Jobs Act that was signed into law by former President Trump. Those cuts are set to expire on December 31st of 2025. And so that means we actually know the date. Unless something happens before then that taxes are going to go up and that is going to be happy new year 2026, right. So you've got two years to prepare for that.

Producer:
Yeah absolutely. Do I it makes you wonder too why. You know. Well why do people in Washington do anything but you know, why don't they just. Okay, this is this is, uh, in effect, in perpetuity until it's acted upon again by another tax rate being set. Uh, you know, uh, I guess this is why they're the politicians that I'm not.

Mike Zaino:
Yeah, exactly. Because, uh, you know, common sense in Washington that that's that's kind of like, uh, the biggest oxymoron I think I've ever heard of.

Producer:
It's a rare thing. Very, very rare. It's like seeing, like seeing a unicorn or something in, uh, in DC. Um, all right. So that is the, the Roth IRA. So now let's talk about the next thing on the checklist for the new year, setting a monthly budget for your retirement. And people say, okay, well, Mike, I know that, uh, your crystal ball is broken. Mine surely is as well. So how in the world am I going to know how much I am going to need during retirement? How am I going to be able to budget looking into the future? So how would you answer that question for them?

Mike Zaino:
Yeah, that's a that's a great question. The first thing that I would say is try to minimize all your debts and have as much debt paid off as you possibly can when you go into retirement. The happiest retirees are those that have no mortgage debt, no car debt, no credit card debt, and they're able to take the income that they have and actually just live and enjoy life doing it. So, you know, first thing to determine is, is how much income you are going to require in order to meet all of your needs. But then on top of that, all of your wants, right, what do you want to do? And most people don't want a lifestyle change during retirement. And the sad reality is that if you're watching me, um, you know, on, uh, YouTube right now or on, on Facebook during one of the clips, most people you know are making this much when they're working, and I'm raising my hand above my head, and then they are making this much in retirement, and I've got my hand down around my chin. And so almost everybody experiences a drop off in pay. Now, whether or not that affects your lifestyle depends upon how you have planned. You know, in the years prior leading up to that retirement. So again, we need to plan for inflation. We need to plan for future tax increases. There are lots of things that we can plan for, but the good news is proper prior planning prevents pitifully poor performance in retirement. So we can address each and every single one of those needs and make sure that, you know, within your power, you have the ability to minimize any lifestyle drop off in retirement.

Producer:
Yeah, and Money Matters with Mike. Comm is the place to go to get started on that, on that road, on that journey. Money Matters with Mike comm. You can also call Mike at 70456015737045601573. Well, you mentioned this just a moment ago, Mike, and it's actually so important we gave it its own position here on the checklist. And that is to develop a plan to pay off your house. You know, you mentioned it a minute ago and saying, you know, the happiest retirees have no mortgage payment. And that's that's got to be so true because it's such a huge, huge chunk of your budget, both in your working years and if you still have one during retirement.

Mike Zaino:
Look, I have clients that have a, you know, $550 a month mortgage. And then I have clients that have a $6,000 a month mortgage plus. Okay. And so the easiest way to increase your net worth, whether you're at the $550 a month level or the $6,000 plus level, is to eliminate your debts, because if you're not hemorrhaging that income in retirement, then that's more that you have to be able to enjoy life and be happy, right? That's why the happiest retirees have no mortgage payments. So make sure that you have a plan to go into retirement with no debt. And that means paying your house off.

Producer:
Yeah, 100%. And then also, you know, people might think that, you know, if especially if you're a little bit earlier on in your career or like your mid-career level, and you haven't really thought all that much about Social Security, you might think that, okay, when I retire, I just get what I get and I'm kind of stuck with it. But actually, you have choices when it comes to Social Security. So the next item here on our checklist is to maximize your Social Security income benefit. And there there are ways to do that. And they're not you know, some of them aren't all that difficult. They just got you know, you just got to make sure that you plan for it and make sure that this is a strategy that's right for you.

Mike Zaino:
Yeah. And so I mean, there's lots of different strategies when it comes to when to claim, uh, your Social Security. And that's probably the biggest question that I get inside of one on ones when I'm meeting with, you know, a couple or an individual who are trying to determine when they should grab Social Security. And, you know, the vast majority of people that I talk to believe that as soon as they turn 62, they're jumping on Social Security. And, you know, I start looking at other factors. I start looking at, you know, how healthy they are, what their, um, family history is as far as how long the folks in their family live, because, I mean, I've analyzed the numbers personally. And if I take mine at age 62 versus just waiting eight years until the time I'm 70, I'd be leaving over $200,000 on the table. If if we just make 90. Okay. And and I say if I just make 90, no one on my side of the family has made 90. But everybody on my wife's side in the family has lived well into their 90s. And so because of that, I want to make sure that I'm setting up my surviving spouse if I am the one to go, um, and by deferring your Social Security even one year, all right. Every single year that you defer taking the benefit, they're guaranteeing you an 8% compound return all the way up to age 70. And, you know, for those of you who do have longevity and who are in very, very good health, then I just think that is a smart idea. So, you know, there's different ways and different strategies that we can talk about what's right for each and every single person that comes in on an individual basis, because there is no one size fits all.

Producer:
Yeah, that's absolutely right. And that's why it's so important to meet with someone who can really take your particular situation, determine what is best for you. Of course, you mentioned there, you know, um, with spouses having different levels of income, while the spouse with a larger, um, income over those, you know, highest earning years, that is going to mean that they have a larger benefit in retirement. The other spouse will have a smaller benefit. So making sure that you take those, start taking those benefits at the right time and whatever's going to be the most advantageous for you, um, as, as a couple or as a single person as well. Um, you just got to make sure that those, you know, you consider everything, um, because having choices is great. Knowing which choice to make and making an educated decision about it, um, is super important. And, uh, you know, I know a guy who can help. Uh, it's Mike Zaino, and you can get in touch with him at Money Matters with Mike.com.

Mike Zaino:
That that is that is so funny. And it reminds me what you just said. Reminds me of a joke that I read earlier this week on on Facebook, of all places. I love to communicate with our listeners on Facebook, and one of them said that, you know, his, his, uh, or her wife, excuse me? Her husband gave her a surprise and hung a map on the refrigerator door and gave her a dart and just told her to throw the dart. And wherever they, uh, that dart landed, that's where they were going to spend a couple of weeks. And so she says, so we're spending the next couple of weeks behind the refrigerator. And I thought that was pretty funny. So, you know, rather than flying blindly and just throwing a dart and wherever it lands, it lands, people just develop a plan. It's very, very simple. I mean, the most important thing is to schedule a consultation today. All right. I'll show you any fees that you're paying and all of the risks that you may be taking in your current, um, plan. I mean, think about this. Do you really know more than your doctor? Do you really know more than your lawyer or maybe your general contractor? And so just as you trust those experts in those very important situations, we believe that nothing replaces a capable financial professional. And so the start of the new year is a great time to reevaluate those retirement plans, whether retirement is still several years away or it's this year or you've been retired already for a number of years. Bottom line is I'm just going to look at your current situation, and I'm going to recommend that you work with somebody that will always have your best interest at mind and looks to save you money, not lose more of what you've worked so hard for all of your life.

Producer:
Yeah, and money matters with Mic.com is the place to go once again, folks. Money Matters with Mike, that's all. One word.com. You can also call Mike Zaino at 7045601573704560 1573. And you know, Mike, that sort of reminded me when you said, uh, you know, do you know more than your doctor? Um, it sort of just brought back a memory of me just a few years ago. I, um, was just having awful abdominal pain. Just awful abdominal pain. Just kind of got worse throughout the day, and, uh, finally decided. Okay, I got to go to the emergency room. I got to see what this is about, and, um, turns out that I, um, had appendicitis. Needed to have my appendix out. Wow. It was. It was not fun. But once they gave me an IV with a certain, uh, certain type of pain reliever in it, um, that thing started feeling a lot better, but. So the world was good. Exactly. All of a sudden, the things looked much better. But, um, so, you know what? If I had looked at the when the doctor came in and said, well, it turns out you've got appendicitis and, uh, you really need to have that out. We're going to schedule you for surgery here, uh, just as soon as we can get you in. Um, if I had looked at him and said, oh, you know, no, thanks. I'll just go home and use a kitchen knife, cut it out myself. That would not have turned out so well. Um, so.

Mike Zaino:
Or if you asked your your brother in law's sister's cousin to come do it, who's not a financial. Excuse me? Not a medical professional, right, exactly.

Producer:
I mean, you got to. Right? Exactly. I'd be like, oh, well, you you got a Swiss Army knife, right? So, you know, just come on over with it and we'll take care of it, and I'll buy it on a wooden spoon or something, you know? But, uh, no, I'm, I'm glad that I went to the expert for that and trusted that expert to, uh, to do their thing. And when it comes to finances, it's the it's the same sort of deal. I mean, I am, uh, you know, someone who who needs guidance in a lot of those areas. I know that, uh, quite, uh, likely, uh, all of the listeners are as well. You know, I really think that when you go to the expert, you're going to get that expert help, expert advice, um, from someone that you can trust. I think that is more than a great thing to do. Mm.

Mike Zaino:
I agree.

Producer:
Well, all right, Mike, so as we continue on here with our New Year's edition of Money Matters with Mike, uh, we're going to talk about another potential way to start off, um, 2024, and that is to rebalance your portfolio. Um, you know, this is something that we talk about doing periodically here, and we've talked about it before on the show, but why might, you know, the first of the year be a good time for people to, you know, take that into consideration and say, okay, do I need to really rebalance things within my, my investments or within my retirement plan?

Mike Zaino:
Well, um, it's the beginning of the year, right? So there's something about starting a new year off fresh, and there's something to be said for reevaluating and then rebalancing your plan at the beginning of the year, instead of reacting to what the markets are doing later on during the year. So you may have a particular allocation that was right for you ten years ago, but guess what? You're ten years older right now, and so you may need to, especially if you haven't looked at it in a decade. Make sure that you're allocated properly that you know, so your risk matches your time horizon and your appetite. And if you don't know what your appetite for risk is, I actually have a risk profile questionnaire that will teach you all about, you know, how risky you as an individual should be. And you can find that at Money Matters with Mike.com there's a little tab that says Risk Profile questionnaire. It'll just ask you some questions and then it'll spit out, you know, how risky you should be based on how you answer those questions.

Producer:
And so we make it as easy as humanly possible for you there. If you want to know what your risk profile is, just click on the risk profile questionnaire. Um, and and I mean that and that's another reason here too, Mike, to, to seek advice from a professional because even when you if you say what you know, what's your risk profile. Some people might just say, oh, well that sounds like it's I need a degree in, in, you know, advanced trigonometry to figure out. But you I mean, it's it's going to be an easy thing for you to figure out when you're working with somebody who, you know, gives you a call or goes to the website because, um, you know, it all. It depends on several different factors. And everybody's situation is different, as we always say. Um, but it's not, you know, it's not something that has to remain a mystery if you don't know what it is. I mean, there's, uh, there are ways to find out. And of course, one easy one is you just said is to go to the website.

Mike Zaino:
Right. And so, so just everybody has to remember that the stock market always has its ups and it always has its downs. Some sectors are going to overperform other sectors are going to underperform. And so by rebalancing that portfolio to its original or to its updated asset allocation, you're taking steps to lock in the gains from the sectors with the best returns and then purchase shares in the sectors that have lagged behind. So think about that. You want to buy high and sell low right? No you don't. You want to buy low and sell high. And so if you rebalance your portfolio with a broker, it is likely that they are charging you upwards of 5 to 5.5% just in rebalancing fees. And that is absolutely not a fee efficient strategy. So we recommend that you work with somebody again, who has your best interests in mind and looks to save you money and not lose more of it or charge you more for that work.

Producer:
Yeah. That it's it's so important. You know, to make sure that you have that person in your corner who is going to do all of these things for you and to make sure that your retirement is the best that it can possibly be, not to line their own pockets and that that's all that they're looking out for, because obviously, unfortunately, that can happen. And that won't be the case with Mike Zaino. Of course, you can give him a call at (704) 560-1573 or go online. Money Matters with Mike.com. And so Mike, another thing that people might be thinking this year as we start off the new year, you know, um, a lot of people take New Year's resolutions, um, or make New Year's resolutions, I should say. And one of the things that they might resolve to do in the new year is to either a retire, if that's been their goal for a while and they've been properly planned for it and all of those things, or even relaunch their, uh, their career, maybe go into a second career, a second phase of their life. What are some signs that people might actually be not not only, you know, wanting to do that, thinking, oh, wouldn't that be great if I could do that? Um, which, yeah, it probably sounds great to everybody. Uh, one of those two options, um, but that they might actually really be ready to do that.

Mike Zaino:
Yeah. And for those of you who are again watching us on YouTube, I have a really big smile on my face right now as you were reading that, because there have been so many people, I mean, so many people that once I review their numbers and I show them a plan, they actually start crying tears of joy, not of pain, because I've shown them that they can actually retire much sooner than they had originally anticipated. So, you know, number one, if if your family home is paid off, if you have no mortgage left, if you have no credit card debt, um, you might be ready to retire or relaunch. And what do I mean by relaunch? You may want to start a business that may be some people's goals. If you have a fully funded emergency fund. And what I mean fully funded, I mean, you've got anywhere from, you know, 6 to 24 months of all your bills just sitting in an account that's that's earning you a decent percentage right now that that you're not going to touch come hell or high water, because that's your emergency fund. You might be ready to retire or relaunch. And so if you are no longer supporting any of your children or any other family members, you might be ready to retire or relaunch.

Mike Zaino:
Here is a really big one. All right. You have an income plan. And that plan makes sense. And that plan is sourced from multiple streams of income. Then you might be ready to retire or relaunch. And then I guess lastly, if you're losing interest in your current job, if you, you know, waking up every single morning is drudgery, then it might be time for a change in your life. And I would absolutely relish the opportunity to meet with you and discuss your future. I can help retirement feel like the next starting line for you, and not necessarily a finish line in your life. And so many retirees do continue to work and or volunteer some of their time on a weekly basis in order to stay active and involved. I know my mom, she's still working, she's in her mid 70s and you know, she does it because it keeps her socially, mentally and physically engaged. And then it puts a little cha ching in her pocket as well. So whatever your circumstance is, I can help you, um, make sure that you're looking forward to the golden years. Yeah.

Producer:
My my mom, you know, she worked for just about as long as she could. She's got some some knee issues and things like that. And she worked for just about as long as she could to, uh, not necessarily because she had to, but because she enjoyed it. She enjoys being out there and, you know, talking to people. I cannot tell you the amount of times she worked at the at the county tax and tax office here. So every, you know, at least once a year, she would see pretty much everybody in the in the southern part of the county that she lives in, because that was the, the satellite office that, that she worked at. And, um, I can't tell you the amount of times I'd get a text or a call. Oh, I saw so and so that you graduated with or I saw this person or that person that we used to go to church with or whatever. And, um, she so she just loved it. And so, yeah, I mean, you know, that was she's definitely always been a people person. And so that's why she worked for as long as she did. She is now, uh, happily retired, though. And, um, yeah, you know, I mean, if you if you do that, if that's your situation and you want to keep working because you love doing it, ideal situation for you if you have to keep working just to, um, you know, make a living and pay your bills every month. Not an ideal situation, but there are ways out of that situation.

Mike Zaino:
Yeah there are. And people ask me all the time, well, what if you're not around? Well, I'm like, as long as God sees fit to give me breath, I really hope it comes through on the airwaves. I know it comes through in person because many, many, many, many, many people have told me that I seem so passionate about what I do, and it's because I love what I do in the fact that every single situation is different. And I look at it as a puzzle that I have to piece together. And so I'm able to fly at altitude and look down and grab this piece and this piece and this piece and bring it all together for a very, very cohesive plan. I may not work, you know, six days a week when I'm in my 70s, but I will definitely still work as long as God sees fit to give me breath. There you go.

Producer:
And that's how you know when you love what you do. You never really work a day in your life, they say. So that's a great, great thing. Well, you know, mention this a second ago. And so let's dive into some New Year's resolutions. Now, Mike, we are not going to be talking about, you know, getting organized and losing weight and eating healthier. And, you know, maybe doing Dry January or anything like that. What we're going to talk about is some New Year's resolutions that we can actually help you keep from a financial perspective. All right. Um, let's talk about number one on this list. And that is calculating your net worth. You might people might be like, okay, well, why in the world would I want to do that? Um, because it's really an important number to know. Um, before you kind of go any further down the road of planning for your future, right?

Mike Zaino:
If you don't know where you are. All right, how are you ever going to figure out where you're going? And so any changes that you need to make become much, much more obvious after calculating your net worth and the way that you would start is you would total all of your assets. Assets are things that you own. So all of your account balances, whether they're at the bank, whether they're in your savings accounts, your IRAs, credit unions, wherever you have money. Uh, if it's online, cryptocurrencies, any of that stuff, uh, add it to your real estate holdings and anything else of value, and then you subtract your liabilities, which are things that you owe money on. So if you owe money on a mortgage, if you have any credit card debt, any student loan debt, any automobile debt, basically anything that you owe, you're going to subtract those liabilities from the assets to create a clear picture of what you're actually worth.

Producer:
Yeah. And that is, uh, you know, as you say, not a difficult thing to do. You just got to, you know, sit down and do it. And of course, if you, um, have all those numbers and you're like, okay, I just need help maybe figuring all this out. Mike Zaino, great person to talk to to help you figure that out as well. And also to do this, number two on our list of New Year's resolutions, check up on your retirement accounts. It's one of those things we've said this before. Don't don't just set it and forget it. That is not a strategy you want to at the very least, check in so that you know how your retirement accounts are performing and then if changes are necessary, make those changes.

Mike Zaino:
That is true because guess what just happened. The calendar flipped into 2024, and the IRS has changed the rules on us and allowed folks to actually save a little bit more money. So be sure to take advantage of any contribution matches. Number one, that may or may not be offered in your employer's retirement plan, especially if you're over 50. You can do that catch up contribution. And so last year you if you were 50 or older you could contribute $30,000. And this year they upped it by 500. So you can contribute up to $30,500, um, each and every single year as it currently stands. And if you're somebody who's in your 40s and you still have maybe 20 more years to go, that can turn into, uh, over $600,000 for you before the match and before any potential growth. So you absolutely have time, even if you're in your 50s and you have a decade left of work, then that can make a huge difference. So just make sure especially to if you are self-employed, get in touch with us about setting up and contributing to a what's known as a Sep IRA. Uh, there's also a thing called a solo 401 K or a solo K for short. So we can help you with all of those investigations to determine which one is the best course of action for you. Yeah.

Producer:
Investment investigations I love it. It's like, uh, Mike Zaino, private eye. Um, but, uh, you could go, folks, to Money Matters with Mike comm to get started on that road. Money Matters with Mike comm. Or you can call Mike at. 704560 1573. That's (704) 560-1573. Another great thing here to do, Mike, to resolve in this new year. And something that you can help the listeners do is to update their savings goals. Also an important thing it.

Mike Zaino:
Is, and I mentioned before in the meat on the bone, you know, if if you're savings goals don't scare you, then you're not reaching high enough. Okay. Warren Buffett once said don't save what is left after spending, but spend what is left after saving. And so you have to recognize the importance of paying yourself first and what so many people do when they get a bump, or they get a promotion or they get a a cost of living adjustment, is they start taking that home and inevitably they spend it. Well, if maybe instead of spending it, you added it to your savings, okay? Or your investments, that might turn out much more beneficial for your future self down the road, and that person will kiss you, as opposed to kicking you for taking it home and keeping up with the Joneses. And, you know, having what's known as lifestyle creep. So the sad reality is that the more money folks make, typically the more money folks spend. And so if you can get that spending under wraps by updating your savings goals, make them a little bit scary, then you're going to thank yourself in the future for sure.

Producer:
Definitely. So it's about just sort of reordering your priorities and making sure that you take care of future you. Because really and truly, you know, nobody's going to take care of you but you. So you got to do that. You got to get those those priorities in line and update those savings goals and also make a plan to pay off debts. Boy, that's a great New Year's resolution for people to have, because debt can really, um, just, you know, weigh you down instead of having money to save, instead of, you know, being able to put a good chunk in savings if it's all got to go to debt every month, and you just feel like you can never get out of that hole that you've dug yourself into. Boy, that can be a very sort of hopeless place to be.

Mike Zaino:
Yeah. That leads me to another thing I read that was posted by a buddy of mine who shall be nameless, but he posted on on his, uh, on his wall, you know, payday. Your checking account balance is, I forget what it was like 2400 something dollars. And then the day after payday or later on that same day, it's like $14.06, right. Um, and I'm thinking to myself, well, hopefully he paid himself first, but you need to make a plan, okay? To pay off those debts. It's so important. I think this is now the third time we have mentioned it on today's show. So decide how much that you can pay toward any of your loans, any of your debts, any of your mortgage accounts, and then consider paying some extra principal towards your payments each and every single month, because by doing so, what you're doing is you're earning what's known as a risk free return on that money that is equal to the interest rate and the cut down on the number of years that it will take to pay off whatever debt that that is. So if you have, uh, you know, mortgage debt, put some more principal towards your mortgage. If you have credit card debt, put some more principal toward the credit card debt. If you have student loan debt, whatever your debt is, put some more principal toward it. Um, and make sure that you're paying those debts off as soon as possible. Yeah.

Producer:
Great thing to do. And you know, this, um, next one here on the list of New Year's resolutions. Mike, we went in depth on it a little bit earlier, so we won't dwell on, um, but, uh, rebalance your portfolio. Uh, another great thing. And and like you said, if you rebalance with a broker, they're probably going to charge you a hefty fee, like about 5.5% to do that. And that, of course, not fee efficient at all. So, you know, rebalance. Um, but don't, you know, use somebody who's going to charge you an arm and a leg to do it. Right? Right.

Mike Zaino:
And so just remember how grim 2022 was, right? 2022 for the markets. I mean, there's no other way to say it. It sucked. 2023 started off that way, but then ended up on a positive note. And then so far in 2024, um, we're back to that grim reality that the market has its ups, but it also has its downs. So you want to make sure that you're positioned to take advantage no matter what the market does over time.

Producer:
Yeah. Absolutely. Right. And, um, number six on our list here is to pay down credit cards, uh, mentioned that at the kind of the beginning of the show here as well, but it deserves, um, to be mentioned again because it is so important because of those high Aprils, those annual percentage rates on your credit cards. Um, if you don't pay off that balance every month and this is me, it's speaking from experience. Um, you're that's. To one of the ways you can get into that sort of big, deep hole of debt and never feel like you're going to get out just because you feel like you're just and you really are. You're just paying big interest payments every month and not really touching that principal. And it just kind of grows and grows and grows.

Mike Zaino:
Yeah. And you may have had the best intentions, right, to pay it off at the end of the month. And then life got in the way. Something happened inevitably, that forced you to be have to spend more money than, um, you know, you would have in a normal situation. But think of this, you know, statement. No one has ever become rich off of airline miles, off of hotel points and off of cash back offers. Okay? And every single one of the airlines has a mileage card. In fact, it's their most profitable part of business. Think about that for a second. Why is that? Well, it's because of those high Aprils and the fact that they know that most people are not going to pay off those balances every single month. So you need to make that your goal to pay off the balance. And then also a credit card should never be your emergency fund. Okay? Your emergency fund is just that. You shouldn't have to place something on plastic, okay. To cover any, uh, emergency that might come up in life. So the emergency fund again, you know, I like people to have between 6 to 12 months or more, uh, just sitting aside just for those unforeseen emergency expenses that come up. Please, please, please, whatever you can, if at all possible, don't put them on credit cards where you're going to be subjected to those ridiculously high Aprils.

Producer:
Yeah, not a great thing to do, because you just get yourself in a worse situation than you would have been otherwise. And that emergency fund, as you said, super, super important to have, uh, to, to avoid going into that debt. Um, also, number seven, New Year's resolution here, review your credit report. And that's something that you can do, you know, for for free these days.

Mike Zaino:
Yep. You got a free credit report. Com I think you can contact any of the, you know, the credit monitoring agencies and you're entitled to one free credit report a year. And so by checking that credit report regularly and then taking any steps necessary to repair any negative aspects, higher credit just positions you better in life. Okay. You're going to qualify for lower, uh, interest rates, lower mortgages, lower car loans. And it just shows that you're a good steward of your money. So by reviewing your credit report, you're able to identify anything that might be out of whack and then take proactive steps to get it fixed. There is no excuse for not reviewing that important information because errors guess what? They're not uncommon. These these companies make them all the time. And a lot of times all it does is just it's a simple phone call. It's a it's providing some documentation, sending it to them through email. And then within 30 days it's off of your credit report. It's that simple, folks. There's no excuse for not doing that one. Yeah.

Producer:
And I could end up being, uh, depending on the situation. Uh, big bump in your credit score after that. Whatever negative information is there, um, is then removed, uh, if that's, you know, the case for you, um, and then also review your life insurance needs, that is the number eight New Year's resolution that Mike Zaino can help you keep. And, uh, you know, a lot of people, this is something that they, you know, might take for granted, um, or just not even really think about because people often, um, and, you know, rightly so, associate life insurance with the end of life. People don't like to think about the end of life. So they just kind of put it off and and don't really try to think about it. But it's important to think about and the new year, hey, as you're turning over that calendar to the new year here, um, it's a great time to just remind yourself, I need to sit down and check this out and see how much I need.

Mike Zaino:
Yeah. And so think about this. You know, as you move through life in general, through your career in general, both your life insurance as well as your disability insurance needs, they are going to continue to change. I didn't need a lot of life insurance when I was in my young 20s, but then guess what? I got married, I had kids, I wanted to make sure that God forbid anything happened to me. My wife and children were taken care of. At least college was taken care of. My wife would have a place to live without having to do anything like that. Now that I'm in my 50s, my kids are grown. They're gone. I still have other needs from a financial standpoint, from an income replacement standpoint. So I still have life insurance. And there will come a point in life where I may not need as much life insurance, but I think that having, uh, different and a combination of different kinds of life insurances to address different needs in a financial plan, I just think that is very, very smart risk mitigation that we talked about a little bit earlier. So, you know, if you are somebody who is still in your 40s and your 50s and indexed universal life policy, I think is a phenomenal way. And one of the only ways actually to generate truly tax free retirement income. So if that's something that's of interest to any of our younger listeners, then they should give me a call and we can determine if that is a right fit for your particular situation. Yeah.

Producer:
And 704 5601573 is that number 704560 1573. You can also go to Money Matters with Mike.com. And Mike when they when they do that our listeners go to the website or give you a call on that number. What's the process like from there. Sort of you know if they do have those, those doubts or those fears, like we talked about earlier, giving that quote from FDR, uh, to start our conversations today, um, if they have fears or doubts about giving you a call or going to the website, um, dispel those fears and those doubts, uh, for them here, because it's not as if, as if it should be an intimidating or complicated process at all.

Mike Zaino:
No, not at all. In fact, the first call is just that. It's a discovery call. Take ten, 15 minutes, get to know you and tell you a little bit about me and my philosophy when it comes to money and a little bit of my background. But, you know, if we decide to move forward, we're going to provide a, a very comprehensive consultation. And that's at absolutely no cost to any of our listeners, as well as there not being any obligation. We're only going to work together if it makes sense, and we can do better for you than your current situation. So when it comes to something as important as your money, we want to provide both you or you and your spouse, the one on one opportunities to ask those questions about your specific situation. And. Get ultimately give your money the attention it deserves and it needs in order to grow for your future. So whether that's discovering how much money you're paying in fees and helping you cut any unnecessary costs, um, whether that's in your IRAs, your 401 s, or any other type of retirement savings vehicles, or whether that is planning for Social Security maximization when you are approaching the age for Social Security, whether that is, um, uh, maximizing Medicare and all of the alphabet soup that comes along with planning for Medicare. You know, some people are just intimidated by working with financial professionals. And I want to help ease those concerns. So, you know, we're going to simply help you answer, you know, the important questions. Okay. Like we mentioned before, what does a successful retirement look like to you? Um, what are you doing? And probably more importantly, who are you enjoying it with? Right. And what are you looking to accomplish specifically? Right. Do you have any specific goals? Because the biggest thing that we want to make sure of is that you have peace of mind, because you cannot put a price tag on it.

Producer:
Yeah, that's very, very true. And you can't put a price tag on reaching out to Mike Zaino for that initial consultation because it is completely free of any charge and any obligation. So there is no price involved with that at all. Just go to Money Matters with Mike.com, Money Matters with Mike all spelled out there and all one word.com. Or call Mike at (704) 560-1573. Well Mike, I'm, I look on one side of my desk here and there are several pages of things left to talk about. And then I look on the other side of my desk, and I see that we're just about out of time. Uh, I mean, literally seconds left to go in the show here, it has flown by. Uh, much like last year flew by. This last hour has flown by. But, uh, I have enjoyed it once again, sir. And I look forward to another year of Money Matters with Mike and helping our listeners out each week.

Mike Zaino:
From your lips to God's ears, sir. And for all of our listeners, make sure you tune in, because the information that we didn't get to on this show, in fact, I told Matt I really wanted to hit what our next segment is going to be and we didn't get there. I guess I just spoke too much today about, uh, other important aspects. So whatever you're doing this weekend, I hope you enjoy it to its fullest extent. Matt, thank you for co-hosting, listeners. Thank you so much. Uh, you know, for for listening and tuning in every single week. And as always, make it a great day.

Producer:
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 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.

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