Planning for Your Go-Go Years, Slow-Go Years and No-Go Years

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

Speaker1:
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Speaker2:
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.

Speaker1:
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, what's up, what's up? It's Mike Zeno 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 each and every week. And today we are absolutely bringing the heat again. On today's show, we're going to talk about how Social Security, how inflation, and how Medicare impacts retirees budgets and will show you how to maximize your spending power in 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. Matthew, how are you today, sir?

Speaker2:
I am doing great there. Mike. I hope you are as well and I've had a nice week.

Speaker3:
I am been a busy week. Uh, it seems that they're getting busier and busier, and more people are wanting to take advantage of everything that we have to offer and, uh, you know, put them on a path to financial security in retirement. So, yes, I have had a very busy but very blessed week. We've helped a lot of folks.

Speaker2:
That's awesome and great, uh, news there. And of course, that is the goal with the show as well. So hopefully you, our listeners, get something out of this week's episode as you do each and every week here. And a lot of great stuff to get to. Of course, as you alluded to there, Mike, in the the top, we're going to talk about Social Security and Medicare, how they're still facing financial trouble, but have been given at least a little bit of a, of a lifeline here. We'll go into details on that retirement spending. We'll explain how that is a u-curve a U-shaped curve, kind of a big smile, you know, and we'll talk about that illustration of it and how to plan for that. We've got a retiree of the week kind of a little bit of a new feature we'll do here every once in a while on the show, because a recent retirement is, uh, a very high profile one who's someone who's been around for a long, long time, uh, in each and every one of our lives and on all of our TVs. So we'll talk about that. We'll have an inflation demonstration as well. A lot to get to here. First, though, we do want to say a big, huge thank you to all of our listeners. Mike, I know that without you out there listening, whether it's on the radio or on the podcast, we would not be able to even be here. So we're super grateful to everybody who tunes in, however it is that you do it in the Charlotte metro area or wherever you happen to be. Um, also mentioned the podcast. You can go to Money Matters with Mike comm and get the latest episodes there. Subscribe on wherever you listen to your podcast. Also whatever podcast platform you use the YouTube channel. Getting more and more active each and every day. Just search for money Matters with Mike there. And of course, Mike, you are always on the old Facebook, uh, talking to our listeners as well.

Speaker3:
I am, uh, you know, when it comes to social media, I love being able to interact, and some people would rather interact that way than just picking up a phone and calling or texting me. But you know what? Uh, I think that the social media platform, as far as the Facebook is awesome because, you know, when people ask me questions, I can respond to them either through a private direct message or I can just comment in response to their comment and then everybody can benefit from the answers. So if you have any questions. That you think other people might want to know the answers to. Go ahead and put them. Load them up on the Money Matters with Mike Facebook page. All you have to do is search Money Matters with Mike on Facebook, and I'll be happy to get those answered as well.

Speaker2:
Yeah, absolutely. Right. And of course you can always reach out via the website, which once again is Money Matters with mike.com. Or call Mike at 70456015737045601573. All right. We'll get to the meat of the show and the meat on the bone here in just a minute. But first, let's get some inspiration for our conversations today with our quote of the week.

Speaker4:
And now Folsom Financial Wisdom. It's time for the quote of the week.

Speaker2:
This week's quote comes from the always witty the late Will Rogers, who said this once. He said, I don't make jokes. I just watch the government and report the facts.

Speaker3:
Which is a joke in and of itself. You know, I kind of subscribe to Will's philosophy there. I love, you know, just watching and laughing at some of the decisions the government makes. And I think each and every single one of us can relate to that and how it has impacted, uh, your wallet, I mean, your, your lifestyle and your overall, you know, quality of life. And so, you know, it's it's both funny, but also kind of sad because when I look at the candidates being put forth, it's like, come on, folks, we've got to do better. But then again, on the flip side, I see why nobody really wants that job, right? Because when they go into, uh, office, it seems like they look young, they're all vibrant. And then when they come out, it looks like they've just absolutely been put through the wringer and have more gray hairs than I do.

Speaker2:
It's, you know, it's true. It's very, very true. Yeah. It's not an enviable position for anybody to be in, I don't think. And, um, you know, Will Rogers of course, was no, uh, no huge fan of, of government at all. And neither which is as seen in many of his quotes, not only that one, one of the ones that I thought was pretty funny that he he said one once back in the day and back in his day. Um, and still kind of seems to be true, is that statistics have proven that the surest way to get anything out of the public mind and never hear of it again is to have a Senate committee appointed to look into it.

Speaker3:
Yeah, things. When when the committees start looking into things, they just kind of disappear after a while. Right? You just typically don't hear about it unless, you know, one particular party has a, uh, has an agenda and they want to bring it back into limelight.

Speaker2:
Yeah, that's very true. And then another one I don't I guess he picked on the Senate a lot I don't know. But another one that he said was, um, Confucius perspired out more knowledge than the US Senate has vocalized out in the last 50 years.

Speaker3:
I'm not going to touch that one with football. But man, I tell you, he, uh, he was on point with some of those, uh, statements for sure.

Speaker2:
Absolutely right. Always, always witty and always had something to bring to the table, especially when it came to criticizing our leaders or supposed to be leaders anyway, in Washington, DC. All right. Well, um, a lot of, uh, meat to get to here on the show today, Mike, with some news actually out of Washington, which is kind of funny, um, some Social Security and Medicare funding challenges, which we know exist, but there are some new updates to tell you about. And for once, it's not bad news when we're talking about Social Security and Medicare. It's a little bit just a little teeny tiny morsel of some good news.

Speaker3:
That is true. According to, uh, CNBC, one of their, uh, reports, the timeline to replenish Social Security is actually folks being extended because the federal retirement program said Monday that it may not need to cut benefits until 2035, which is one year later than previously forecast because of, uh, stronger performance by the United States.

Speaker2:
Yeah. And that new projection is from the Board of Trustees of Social Security, that annual report that they come out with, they say it's good news for the program, 70 million beneficiaries. Um, the commissioner of Social Security, Martin O'Malley, said that in a statement. And he urged Congress, though, to do this. This is important to take steps to shore up the program to make sure that it can pay full benefits into the foreseeable future. Because, you know, Mike, whether you know, you extend the expiration date of Social Security, if nothing changes, you know, as as we see things now, if you change that expiration date, just push it down the road, kick the can down the road by a year. Okay. You know, that's, you know, maybe a little tiny glimmer of of hope. But it's not a solution to anything.

Speaker3:
I think this just goes to highlight Will Rogers facts about, you know, just watching the government and reporting what they do. But what I will say is that even if the Social Security trust funds are depleted, the program will still have revenue revenue rather from payroll taxes. And so benefits will still go out, although they may be reduced unless there is a total reform of the, the, you know, the, the whole actual system. So Congress could fix the problem by raising taxes that support Social Security, um, by reducing retirement benefits, uh, or some combination of the two. Right. Which is not what any of our listeners want to hear.

Speaker2:
Absolutely right. And I mean, 70% or 75. Actually of adults over 50. I believe that Social Security is actually going to run out in their lifetime. According to a Nationwide Retirement Institute survey that was conducted last year. And so here's the question. You know, how do you plan, you know, when when a Social Security is in kind of such a state right now? Um, to at the very least, if you're, you know, closing in on retirement, how can you at least maximize what you know is going to come in the, you know, several years now, ten, 11 years that we know it's going to be around or at least projected to be around.

Speaker3:
Yeah, I mean, there there seems to be like this, this, this rush, almost as if there was a gold rush by, you know, pre-retirees and retirees going out and grabbing Social Security as soon as they turn 62 years of age because of the fear that it is going to run out of money. They want to do that Steve Miller band, you know, uh, kind of go on and get your money and run type attitude. And, and I kind of think that that's, uh, a little premature, right? Because, you know, and this is just my opinion and I've stated this before, I don't think Social Security is going anywhere. Okay. Because if it did, if they just eradicated the program, we're talking about a global economic meltdown that affects the world and not just people that reside in the United States of America. But, you know, when it comes to when to draw Social Security benefits, the longer you wait, the more that you actually receive. So for an example, somebody who is eligible for $2,000 a month at age 67, which is full retirement age for the majority of of folks, may instead only get $1,400 a month if they start claiming at age 62 and waiting until age 70, it would instead provide 2480, so almost an extra $500 on top of that. So retirement experts agree on the value of delaying Social Security benefits unless there is a personal reason, such as either a lack of income or, you know, poor health condition or, you know, less longevity in the future that prompts a need to start those benefits early.

Speaker2:
Yeah. And you mentioned there, of course, two ages, which of course were 62. Um, at, uh, you know, the age where people are first eligible to, uh, draw their Social Security benefits and then age 70, which is the age where everybody maxes out, right? It's not going to go up anymore after the age of 70. And then, of course, 67 is another age you mentioned. So actually three ages in there. Uh, that is the full retirement age for most people, but not everybody, right. Like there are some people who it's 66 and then 66 and some months. Right.

Speaker3:
That is that is true. In fact, you know, if if some of our listeners may be a little unsure or it's been a minute since they've, you know, revisited what their actual retirement age, your full retirement age is, if you were born between the years 1943 and 1954, then your full retirement age is 66. Even no months attached to that. If you were born in 1955 through 1959, okay, we're going to add either two, four, six, 8 or 10 months to the age of 66. And then if you were born in 1960 or later, then your full retirement age is 67. And why is full retirement age so important, you might ask? Okay. Well, a lot of folks want to retire from their, you know, 40 hour or plus, uh, a week job. And then after the first month or two, they kind of get a little bored and, you know, they start twiddling their thumbs and they're like, all right, maybe I should go back part time and keep myself both, uh, socially and mentally and physically engaged. Like my mom. She still works. She's approaching 75, and she still likes to work. You know, 2 to 3 days a week at some point. But if you go to work before your full retirement age, the amount of income that you're allowed to earn before it actually affects the amount of Social Security that you draw, okay, is limited. And so once you reach the age of 67, you can make as much money as you want, and your Social Security benefit payments won't be reduced by any amount. How much you make as far as from an earned income perspective. So that is very, very important to understand. And if any of our listeners are concerned about Social Security and worried about future cuts to Social Security, that obviously would affect your retirement, we'd love to provide you with a Social Security maximization plan that is customized with you. Okay. And your spouse, if you're married, uh, all that benefit information so that you can. Make informed decisions instead of just, you know, flying by the seat of your pants.

Speaker2:
Yeah. Absolutely. Right. That's, uh, not the best plan flying by the seat of your pants. Because it's not a plan at all. Uh, but if you want to reach out, of course, go to Money Matters with Mike comm. That's money matters with mike.com. Or call Mike at (704) 560-1573. That number one more time 704560 1573. All right. So that covers Social Security. But I mentioned at the top of this segment that Medicare also is getting a bit of a lifeline here and actually a little bit bigger lifeline than Social Security Mike.

Speaker3:
Yeah it is. They're go broke date okay. Um, for its hospital insurance trust fund was actually pushed back five years all the way to 2036, according to the latest report by CBS news, thanks in part to higher payroll taxes, uh, the income that they get from that, as well as lower than projected expenses. So Medicare is the federal government's health insurance program that provides coverage to folks that are age 65 and older. Uh, unless you're disabled, you can get it younger. Um, and those that have those, you know, severe disabilities or illness can claim it, you know, much, much earlier, it actually covered more than 66 million people, uh, last year, with most of those being age 65 and older. Yeah.

Speaker2:
And once those reserves become depleted, Medicare would just be able to cover about 89% of the costs for inpatient hospital visits, hospice care, any nursing home stays or home health care that follow hospital visits as well, of course, just for a limited time. Because, as we know, Medicare does not even now cover long term care, but it would be a cut of about 11% of the things that Medicare actually does cover. If we get to the point where things are not able to be funded at the same levels that they are right now. So definitely still some concerns there, Mike, but it's not, um, maybe as concerning or as quite as urgent as we thought based on those, uh, those positive funding, uh, attributes that you just, uh, quoted.

Speaker5:
There, we'll just wait.

Speaker3:
For the government to change their mind again and put out some, you know, contradictory information here in the future. So it's just one of those things like it is what it is. Um, there's very little any of us can do about it. So we just like. All right. Yeah. It's going to go broke. Let's just see if we get it. You know, by the time those of us who are not claiming either Social Security or Medicare get to those qualifying ages. So, you know, who knows? That's the biggest that's the biggest question I have. Like, I just I don't even think they know.

Speaker2:
Right. This is true. This is very true. But, uh, you know, the thing is you got to have, um, and just really does highlight the fact that you got to have a plan. And the best thing to do to get a plan in place is to work with an expert. I just happen to know a guy who knows exactly what he's talking about in all of these, uh, fields here and can help you, uh, with the planning for your retirement future. And his name is Mike Zeno.

Speaker3:
Yeah. Imagine, folks, just for a second, if you will, a scenario in which you don't have to worry about when drawing Social Security is a benefit to you, right? Because Social Security is just the icing or the cherry on top of the cake. Right? We're not counting on that. And that's what I seek to provide all of my clients in knowing that their money will last them at least as long as they do, if not beyond. Yeah.

Speaker2:
Absolutely. Right. So once again, folks, just reach out. Money matters with mike.com or call (704) 560-1573. All right. So um, we're talking about the U-shaped spending curve of retirement here in our next segment. And Mike sort of describe that to our listeners so they know what we're talking about here. When we say that it's a U-shaped spending curve in retirement.

Speaker3:
Right. So contrary to the common belief that retirement spending is constant, um, retirees actually tend to have initially much higher rates of spending and then a dip in the middle years and then increase costs again toward the end of retirement, which forms that U-shaped curve. Okay. And we like to describe the phases of retirement as three different phases the go go years, the slow go years, and then the no go years. So in the go go years, this is normally your first, you know, 7 to 10 years of retirement. You are going right, you're going and traveling and you spend a lot of money due to a much more active lifestyle and large trips. Okay. After that, your second 7 to 10 years, those are your slow go years, so you may not be traveling quite as much. Maybe revisiting some of the places that you really, really enjoyed and so you're spending has been decreased a little bit as your lifestyle becomes a little bit less active. Okay. And then of. Course the no go years. You are not spending nearly as much because you know what? You're not physically able to get up and move as well as you used to move. And so health care and long term care needs, that tends to drive the costs back up for those folks in their no go years. If you're not sipping lemonade, watching the grandkids in the in the dogs. Um, you unfortunately may need to prepare for those higher health care and long term cost needs.

Speaker2:
Yeah, it's the the the reasons for the spending going up and down. They change over the years, as you say, during those go go years, the slow go years and then the no go years. So then you know, the question becomes Mike, how do you prepare. How can you sort of maximize your spending potential at those different stages in your retirement?

Speaker3:
Yeah, I think it's very important for people to have a smart vision for their retirement and understand personal retirement goals that they have, and then ensure alignment, especially if you are in a couple or spousal type of situation. You know, one of your, uh, you know, participants or in that marriage may have an entirely different view of how they want to spend their retirement. So, um, just aligning both of your dreams and having that vision, I think is very, very important. And then, you know, the ability to manage your expenses, uh, and reduce those fixed expenses like mortgages and car payments and other debts that can actually provide much more financial flexibility, which is essentially important during market downturns. Right. Nobody wants to, uh, have to pay out a whole bunch of money in debt, you know, and payments when their money is not growing because of the downturn in the market. And so, um, I've said this before and a couple of shows, but I like to really, you know, illustrate the importance of having an income and distribution plan. And I kind of relate it to mountain climbing.

Speaker3:
So I'm not sure if any of our listeners have actually climbed Mount Everest, um, or Mount Kilimanjaro or any huge mountain that people prepare for, you know, months if not years to climb. And if you have climbed one, I would love to hear from you. Okay. But you have to be careful when you're preparing to climb a mountain. And unfortunately, most people spend way too much time in the preparation for the climb. But very little, uh, time is spent preparing for the descent. And in fact, most deaths actually occur not on the way up, but on the way down. So not having an income and distribution plan, your retirement can die on its way down. So you have to be very careful about withdrawing your assets too quickly, as that can affect your tax rates. It can affect how much you pay in Medicare because there are income related adjusted amounts or Medicare surcharges. And so what we can do is actually help you establish the income and distribution plan that includes guaranteed lifetime income solutions and again gives you confidence and peace of mind.

Speaker2:
That's right. And that is something, as we all often say, that you cannot put a price on at all. Another thing, you know, goes back to kind of what we were talking about earlier is, if at all possible, if it works for you and your individual situation, delay Social Security because that you're giving yourself a raise every year that you wait.

Speaker3:
Yeah, there is absolutely no doubt in that by waiting to claim Social Security, the fact that it will significantly increase your monthly payments, which arguably, uh, will provide more income for later in life during retirement. But even above and beyond that, I think folks need to plan for long term care costs. Okay, consider long term care insurance, especially when you're younger, in your 50s or similar type products that will help at least address a portion and help you manage higher costs later in life. Because without insurance, saving a significant amount of money is definitely recommended to cover those potential long term care needs. And of course, we can provide you with a complimentary consultation and retirement plan that addresses everything that we have talked about so far. All you have to do is pick up a phone and simply dial (704) 560-1573, or go to the website at Money Matters with mike.com just to book your complimentary consultation. And I absolutely look forward to helping you reach your retirement goals. Yeah.

Speaker2:
And you can go through, of course, with Mike, all of those different options for, uh, planning for long term care, whether it's long term care insurance itself or another type of product, maybe an annuity or life insurance policy, something like that, that has a long term care rider, like a living benefit that you can take advantage of. Those could be options for you as well. And of course, you know, depending on your particular situation, it might might work for you.

Speaker3:
You know, you just mentioned something about living benefits. And I urge and encourage each and every single one of our listeners to, uh, revisit your life insurance policies, because if you have life insurance, that is old. And when I say old, it's older than, say, ten years old. It most likely does not come with what are known as living benefits. Today's life insurance policies address things like what happens if I die too soon? Well then guess what? You got a death benefit that goes to your beneficiaries. Uh, what happens if I live too long? Well, you can actually take tax free loans against the, um, death benefit, okay? That you will never pay back. It'll just be offset when you eventually do pass away. And then, more importantly, what happens if I get sick in the middle? Well, today's life insurance policies have living benefits that address things like chronic critical terminal illnesses, Alzheimer's, all these things that happen to folks as, uh, the body deteriorates with age. So if you have an older life insurance policy, I'd be more than happy to review that with you as well. Again, just pick up a phone and give us a call that number.

Speaker2:
Once again (704) 560-1573. Ah, yes, I talked about this at the beginning of the show, teased it a little bit, and you can probably guess who we are talking about now. Um, his name? Pat Sajak, retiring from Wheel of Fortune. Um, boy, you know, it's one of those things I you kind of take for granted. Pat Sajak just kind of always being there because he's been on the show for 40 years. But his final episode of Wheel of Fortune just aired on June 7th. Mike.

Speaker3:
Yesterday. Um, unbelievable. 40 years. I definitely been a part of my life. I mean, I used to, I guess, back when I was a child, um, you know, my parents, my grandparents, they would watch the Wheel of Fortune and not for nothing. I like trying to figure out the puzzles myself. But, you know, when we, um, talk about a character or a figure head that has been in every single one of our lives, like, if you don't know who Pat Sajak is, you probably have, uh, lived off the grid for the past 40 years. But, you know, in in a recent interview, he kind of reflected on those 40 years, and he shared his feelings about his departure, which he had time to accept since he actually announced his retirement a year ago. So he had an entire year to prepare for his last show, uh, yesterday evening.

Speaker2:
Yeah. And in this interview, he also said that, you know, the roles the show had a big role in popular culture, as you said. And, um, it became a really significant part of viewers lives. Um, and said that, you know, he's really gratified to have been a part of something like that for four decades. Pat Sajak and Vanna White, that team being broken up now. Uh, but Pat is looking forward to to his retirement. He says, uh, here, Mike, he says he looks forward to simpler pleasures, such as doing crossword puzzles, which is not a huge departure.

Speaker5:
Yeah, puzzles.

Speaker2:
Not a huge departure from what he's been doing, although just not in front of a bunch of people. Um, and spending more time with family, uh, hinting at enjoying future grandchildren as well. Yeah.

Speaker3:
And you know what, I, I guess I was, I was really, uh, happy to find out is that the legacy is going to continue because Wheel of Fortune is coming back. And Ryan Seacrest, okay, the host of American Idol, is going to be the new host. And Vanna White has actually extended her contract all the way through the 2526 season, which ensures continuity for the show. So, I mean, I'm not sure how old Vanna is. I mean, she still looks like she's in her 40s, but I think I think she's had a had a little work done to to look as awesome as she does in her. I think she's in her 70s, if I'm not mistaken. But you know, I can't I can't wait to see that tandem because I think they'll they'll work really well together.

Speaker2:
I do too. And, you know, Ryan Seacrest is, of course, a veteran host, and I think we'll do a great job in that format, uh, of Wheel of Fortune and interacting with contestants and stuff. I think he's going to be great at, um. And so Pat Sajak, yeah, he is our retiree of the week. As we celebrate his long standing contribution to TV and the joy that he has brought to the lives of countless viewers over the years.

Speaker3:
He will be missed.

Speaker1:
Want to know where your hard earned money is going. It's time for an inflation demonstration.

Speaker2:
So costs keep going up at the grocery store, and we've got some new insights on exactly how much they've gone up here. Um, this is, uh, a new report showing that Americans paying roughly 25% more, 25% more on groceries and on dining out this March, March of 2024 than they paid in January of 2020. And that makes it outpace the rate of inflation overall.

Speaker3:
It does. And you know, I kind of like this hits home for me because I often see my wife come home with the groceries. Now she's the one that does the grocery shopping 99% of the time. And on the odd occasion, she'll ask me to pick up X, Y, or Z. And and you know, she said to me, because I love to eat fruit. And she actually just said this to me last night. She goes, do you realize that you're spending about or eating about $50 worth of fruit each and every single week? And I started to think about that, you know, because I eat grapes and I like bananas and watermelon and and, you know, I just like them. Right? Strawberries, especially in the summer time, that's how I try to stay healthy and try to stay away from the Double Stuf Oreos that I just bought last night. Um, you know, so I feel that, um, because I can relate to it on a personal level. And so especially when going out to eat, you know, things are costing way much, you know, way more than they used to cost, because not only are the cost of goods more, but then on top of the increase in the cost of goods, the restaurants are actually having to mark that up to maintain their margins. Right? Which just costs us literally an arm and a leg when we want to go out and enjoy a meal prepared by somebody else.

Speaker2:
Yeah. That's right. I mean, it's, um, you know, not a cheap thing to do. And it's always been a situation. Mike, where going out to eat has been the more expensive of the two options, right, than going to the the grocery store and buying food and preparing it at home. Like, obviously you have to put in effort there and all of that, and you're still buying the groceries, but at a much cheaper, uh, rate than you would be buying that same meal prepared by somebody else in a restaurant. And it's still the case. But it's it's like, you know, it almost feels like if you're walking down the aisle of a grocery store these days, it's a little bit like, pick your poison.

Speaker3:
Yeah, yeah. I mean, and some people may say, hey, you know what? The juice isn't worth the squeeze. And I would rather go out to eat and have somebody cook for me and clean up for me and pay just a little bit more because of the effort that it takes to go out and, you know, buy your groceries, prepare your groceries, and then clean up after the meal. So, I mean, Americans paid, uh, 95% more for a carton of eggs, uh, 33% more just for £1 of ground beef, and then 22% more for a gallon of milk than they did before the pandemic. So, you know, when you consider all those, those rises in, in the cost of the things that we consume each and every single day, it is no wonder that people are feeling the pain at the grocery store. Yeah.

Speaker2:
That's right. And Department of Agriculture is saying the average American spent 11% of their disposable income on food in 2022. That is the latest year we have those numbers for. And it's the highest amount in nearly four decades. Uh, that year alone, grocery prices rose more than 10%. And that's the largest annual increase since the 1970s. Um, yeah. And it's it's kind of crazy to my talk about this, this concept of shrinkflation as well, because that's something that is a little hilarious to me and sad at the same.

Speaker5:
Time, not.

Speaker3:
Infinite shrinkflation everybody can relate to this. It's not just that the prices are going up, folks. It's the fact that food products are actually getting smaller. And that's a phenomenon that the pundits have called shrinkflation. Okay. So think about, you know, a a thing of peanut butter. They have since put this little like concave indentation in the bottom that reduces the amount of actual peanut butter that you get by somewhere between 10 and 15%. Um, think about ice cream. They used to actually get a half of a gallon. Well, now it's like a third of a gallon, and the prices are more expensive than they used to be. And so, you know, another report from Groundwork Collaborative finds that changes to package size accounts for 10% of all price increases on key household expenses, especially those snack foods. And so Americans who try to save money by heading to the drive thru, well guess what? They're facing a new reality too, because a study of the country's biggest fast food brands by Finance Buzz found that all of them are menu prices have outpaced general.

Speaker5:
Inflation rates.

Speaker2:
Yeah, we actually just on the show a few weeks back, we were talking about some changes that some of the chains are making, like McDonald's coming out with new nationwide value menu items and, and things like that. And so they're trying to, you know, lure customers back in because they've seen a big hit to their bottom line, because people are just, you know, it's not seen as kind of the deal that it once was. Right.

Speaker3:
I think it is all the more important to highlight the fact that, folks, it's it's we're halfway through. We're in June, right? June of 2024. It is time to get serious. This is an election year, and there's already so much uncertainty in the world that affects you, whether you're a retiree or a pre-retiree. Please do not wait until you are ready to retire to start planning for your financial future. If you have any questions, just pick up a phone and call us again. (704) 560-1573 or visit us on the web at Money Matters with Mike comm. We can get you scheduled for a complimentary consultation. We can do a 401 K review. We can do an IRA review. Bottom line is, is we can get you on the path to a safe and secure retirement.

Speaker2:
Yes. Do not adjust your radios, folks. We were talking about our second game show of the day. We talked about Wheel of Fortune earlier, and now it's Who Wants to Be a millionaire? But there is a particular reason we've got this music playing, and we are talking about that particular show, and it is because our version of it kind of is who wants to be a 401 K millionaire? Um, Newsweek is reporting that a record number of Americans with 401 K savings plans have saved at least $1 million. Now this year, as of the end of 20 20/24 first quarter. Um, and that's according to an update from fidelity. A lot of people might have more than $1 million in their 401 K now.

Speaker3:
Yeah. When you say a lot of people, according to that report, uh, 485,000, uh, folks between just January and March of this year had eclipsed that seven figure amount inside of their 401 K. So that is something that is is huge. But people have to be careful because and keep in mind the fact that the IRS is actually a partner in your 401 K, or if you have a 403 B or a 401 A or a thrift savings plan, any of those employer type uh plans are tax deferred unless they offer a Roth option. And you saw the the magical opportunity that is tax free growth for life and actually pulled the trigger to participate. You have a partner in your retirement.

Speaker2:
Yeah. That that's absolutely right. I mean and you of all um, entities that you want to partner with, I don't think that the IRS is probably one in your retirement. You want to minimize that partnership as much as you can and, and talk about, you know, how people can do that through those vehicles that you mentioned, Mike, like a a Roth IRA or even, you know, investing in the right kind of life insurance, for example.

Speaker3:
Yeah. So before I hit that though, and I'll get to that, I want to talk about the benefits of actually participating in your company's 401 K or 403 B or 401 A or TSP or whatever. It is, right? If you have an employer sponsored plan, you should absolutely participate in it because those contributions are taken from your pay before income taxes are applied. Unless, right, you opt for that Roth option, which you're going to pay the tax up front, but then you never have to worry about paying the tax again. Uh, a lot of companies out there are actually matching, uh, deposit contributions to the plan. And so even if they are depositing $0.50 for every $1 you contribute, uh, up to maybe three, four, five, 6%. Um, folks, that's free money. Okay. And inside of a 401 K, you don't owe taxes annually on the interest, on the dividends or the profits earned. And you won't pay taxes until you withdraw the funds, uh, in retirement. But again, if you want your money to grow 100% tax free, right, for the life of it, then you basically are whittled down to two options.

Speaker3:
And that is your Roth options, which in and of itself that has a Roth IRA or TSP or, you know, 401 K or any, any of that kind of stuff. Right. And then you have life insurance. So life insurance, you can take tax free loans against the death benefit or the cash value. And in a properly structured plan, and I highlight properly structured plan that income can be set up to be also guaranteed for the rest of your life. So it is very, very important to get your, uh, employer sponsor plan working as hard, uh, for you as you do for it. And so we invite you to give me a call and receive that free 401 K review so that I can analyze the fees that you're paying. Uh, the risks, whether they are, you know, good risks that you're taking or unnecessary risks that you're taking, and then performance as far as look at the overall performance of your portfolio. So again, don't delay. Pick up a phone call today (704) 560-1573.

Speaker2:
And you can also go to the website. It is Money Matters with mike.com. That number once again (704) 560-1573 as well. Well um Mike another type of retirement account retirement investment that we like to highlight quite a bit here on the show is getting highlighted by a lot of people this month because it is Annuity Awareness Month, and it's a great time to sort of re-up people's knowledge of annuities, because I feel like we're sort of constantly fighting a battle against the people who have sort of badmouthed annuities in general over the years. And they and they do that for a couple of reasons. Right? They'll do it either because a. They've got skin in the game with another type of product, and they don't want you putting your money in in annuities at all. They want to sell you whatever they're trying to sell you, or b they just don't understand what annuities actually are. They've they've been confused by a particular kind of annuity and think that all of them are the same and they're not.

Speaker3:
No they're not. In fact, I mean, again, there there are well over 100 different types of annuities. Some of them I would not put my worst enemy in. And I think those are the ones that give annuities as an asset class, if you will, a bad rap. Right. So the old school annuities, you would give an insurance company a sum of money, uh, they would charge you a fee, they would pay you back your money, uh, on a schedule. And guess what, folks charge you a fee. And then when you died, guess what they did with your money? They kept it. And so, you know, nobody, uh, should do that. That makes zero sense whatsoever. And and another thing that gave annuities a bad rap or this, this particular one that you alluded to called a variable annuity, we jokingly call it a variable annuity because of the fact that, you know, the word variable means change. And so you can make money and then you can also lose money depending on the performance of the stock market. So especially those pre-retirees and retirees who are within that retirement red zone, meaning the ten year or excuse me, the five years immediately before and the five years immediately in retirement, creating that ten year window where you cannot afford to lose if you are in a variable annuity.

Speaker3:
Um, we need to talk and I can show you a much, much, much better way because today's fixed indexed annuities, for an example, um, can allow you to take the money that are in those bad types and transfer them into the good type with zero tax for the transfer. All right. And in most cases, we can guarantee income for the rest of your life for zero or very low fees lower than what you're paying right now. And I mean, when you pass away, that money goes to whoever you name as your beneficiary. It is a much better situation in today's annuity landscape than has ever been in the past. And that's why we see so many people leaving the bond market and instead replacing that portion of their portfolio with annuities. So this month, we're going to share various resources and information to help you better understand annuities and explore how the right type of annuity can be a great asset within your retirement portfolio.

Speaker2:
Yeah, absolutely. Ah, we'll do that each and every week here throughout the month of June. And of course, um, as you were, you know, alluding to there, Mike, an annuity is actually an insurance product that provides steady and predictable income for life or for a particular number of years or for life, plus a particular number of years, um, with guaranteed interest rates and protection from market volatility, those market crashes. You said that, you know, that one type of annuity, a variable annuity, all of your money is exposed to the whims of the market. But in other types, whether it be a fixed annuity or a fixed indexed annuity, you make money each each year, but you don't lose it. There's always a floor and the markets go down. If you're in a fixed indexed annuity, you don't lose a penny.

Speaker3:
Yeah. There's a very, uh, I guess, famous guy in, in, in the industry anyway, called Ed Slott. And he always uses the analogy of going to a casino. And, you know, imagine you sit down at a table and at that table the dealer says, hey, at my table, you can't lose. If if I win, we'll push. We'll call it even. And if you win, I'll pay you half of your bet. And I'm like, well, how long would you sit at that table? And if he's asking me that question, I'd be like, they're 24 hours a day, right? If I can't lose and he's going to pay me half of whatever I put out in front of me. Um, I think that's a really, really good analogy to expose people to the power of zero. Okay. Which by you know, is a is another book written by a guy named David McKnight. So free plug for you, Dave. Uh, that's a it's a great book.

Speaker2:
Absolutely. Absolutely right. And a lot of great info out there about it and a lot of great books to, to get, uh, as well with a lot of wonderful information about annuities. And, and there was actually a survey, um, on retirement and annuities. This was done by USAA. And one of the big sort of top line numbers here is 58% of adults actually now recognize an annuity as a retirement savings and income strategy, but 42% are actually unclear about what an annuity is. So there's a lot of room to really educate folks about annuities in general. Mike.

Speaker3:
Yeah, I think you hit the nail on the head with that one. Education, folks, is key. And just because you may have heard somebody speaking ill of annuities or bad about an experience that they had.

Speaker5:
With an annuity.

Speaker3:
Um, most likely they did not, um, and were not put into the right type of annuity to fit their individual situation. So, I mean, it all comes down to the individual. Everyone is unique. And that extra 42%, we just need to provide them with a little guidance and ultimately more clarity about how an annuity can fit into their portfolio and actually perform better than what they expect.

Speaker2:
Yeah, and that same survey showed that 79% of adults that were in that survey say that they value having a guaranteed monthly income in retirement over a specific saved dollar amount. Now, we say this all the time. Retirement is more about income than it is about that one big nest egg number. Seems like at least people in this survey are catching on. Mike.

Speaker5:
Yeah.

Speaker3:
I mean, again, the more streams of income, guaranteed income that you can have in retirement, the more confidence that you're going to have walking through. You kind of walk back and maybe even strut a little bit, right? So I mean, obviously if you are fortunate enough to have a pension, well, that's guaranteed until you die and then Social Security that's guaranteed until you die and then some with the survivor benefits, if you are in a, uh, married situation. And then obviously you can create a personal pension by utilizing annuities as a tool. So the more streams of income that you have, the best, the better. I should say that you are going to feel in retirement, and especially when 40% of adults are concerned about the longevity of their retirement savings. I mean, what more can you ask for than peace of mind and knowing that your money won't ever run out?

Speaker2:
Yeah, and along those same lines, nearly half of Gen X and millennials. So those are people 35 to 54 believe that they're never going to be able to afford retirement. You can if you have a plan. That's the important thing. You've got to have a plan just sitting back and, you know, hoping hope is not a plan. Uh, you know, it's not not going to work out too well, generally speaking.

Speaker3:
Not a plan, not a strategy. But did you know that you can reduce the risk in your portfolio and establish a personal pension that creates a lifetime income stream with one simple strategy? And of course, I'm alluding to what we've just been talking about over the last few minutes. So, you know, if you want to learn a little bit more, be sure to listen to our show each and every single week this month to learn all about how annuities can power your retirement.

Speaker2:
Yeah, that's absolutely right. And you can reach out to Mike at Money Matters with mike.com. That's Money Matters with Mike all one word.com or call Mike at (704) 560-1573. All right Mike. So I guess it's time for everybody's favorite part of the show each week.

Speaker5:
Checking.

Speaker2:
In on the national debt. Um, our update this time around, Mike, is.

Speaker5:
What our.

Speaker3:
National debt is now at $34.8 trillion. And, you know, it's been a few minutes since I've actually, uh, explained how big of a number a trillion is. So I'm going to go into that if and, you know, if you don't mind, if you've heard this before, it may just help to solidify, because most people don't have any way to fathom how big of a number a trillion is. That's 12 characters after the first number. So I always ask people, look, if you go back in time, 1,000,000 seconds, you know how many, you know how long ago in time was. And I get all kind of all over the board, you know, from years to decades to the fact of the matter is, it was 11 days ago, right? 1,000,000 seconds ago was 11 days. And if we just change the M to a B and go back 1,000,000,000 seconds again, all kind of answers all over the place. Well, that was 32 years ago. So that's a big jump from 11 days to 32 years. And then if we change the B to a T and go back in time 1,000,000,000,000 seconds ago, uh, most people aren't even close with their guesses here. We're talking about 32,000 BC, when dinosaurs still roamed the Earth. So when we're talking about our national debt and what that actually means, you know, when we're looking at a debt per citizen.

Speaker3:
All right, there's what, over 330 million US citizens. We're talking about the debt load that that would, if they ever decide to call that debt, be over $100,000 for every single citizen, whether they're a day old or, you know, a centenarian does not matter. So I think that is why we highlight the national debt as much as we do, because, you know, you have a voice and you need to exercise that voice with your vote, because we can't as regular, normal American citizens spend more money than we have. I mean, I guess we can on credit, but once our credit is maxed out. All right, what happens? The creditors start calling, you know. Do they want their money? It just seems as though that America can just print more of it. And there really is no check and balance system to rein in how much we're spending. And of course, all of that has issued, you know, or effects both Social Security and Medicare. Uh, it can definitely impact the sustainability of those safety net programs. And those programs are crucial for pre-retirees for retirees. And a high national debt can absolutely strain them, potentially leading to reduced benefits or increased eligibility requirements. Like, they're talking about moving the age of 62 all the way out to age 70 just to be able to claim Social Security.

Speaker2:
Yeah, that's absolutely right. And, you know, I mean, you got to be prepared for those changes. Again, I'll say it one more time. You got a plan. If you don't have a plan for it, you are going to be left in the lurch potentially when you get to your retirement years. They should be your golden years. But it may be more like waking up on Christmas morning and finding a lump of coal in your stocking. You know, it's that kind of thing. Rather than gold. You get the lump of coal. Um, and we're also going to just highlight one more thing here, Mike, as far as an increase in something, we've been talking about the increasing national debt. Let's talk about gas prices now, which have actually been coming down here over the last several weeks. Um, gas prices, uh, as of this last week, um, at the beginning of the week were right around 353, $3.53 a gallon nationwide. Um, which you might say, oh, well, that's, uh, that's really high. And yeah, it is, but it is lower than it was. So at least there's there's a tiny silver lining around that really big dark cloud.

Speaker3:
There definitely is. And I don't know about you, Matt, but I, I know our listeners in the local areas, it seems that the gas prices have been extremely bipolar as of late. You know, I saw it get down. Honestly, I saw it get down to like below $3. And then all of a sudden it jumped back up to like 339 in my area, which I'm like, what the heck is going on? Right? And it's just because something in some faraway land caused, you know, the, the oil companies to jump the price of oil. And then obviously that has that trickle down effect. So you know, yeah, it just while they're coming down, they're still pretty ridiculous in my opinion.

Speaker2:
Yeah. Still definitely on the ridiculous side. Luckily you know, South Carolina, North Carolina generally tend to be on the lower end of the spectrum as far as gas prices go. Of course, where I am in Atlanta, we're kind of right in the middle, but at least we're not out, you know, in, uh, California or Hawaii or Alaska or any of those type places because they just have astronomical gas prices on average, up to over $5 a gallon. So that's, uh, that's, you know, definitely a strain on the old wallet.

Speaker3:
That is definitely a strain. And I'm glad I do not live on, uh, the left side of the country.

Speaker5:
There you go.

Speaker2:
Well, um, in our last couple of minutes here that we have Mike, let's talk about you know, we've talked covered a lot of ground today, really have about some some great topics, talked about, you know, Social Security, talked about inflation, talked about the national debt, obviously about planning for spending in retirement. And we've said, you know, the thing that you have to do is have a plan and get started on that plan. Now, don't don't wait one day longer because, you know, it could, uh, be that if you wait longer, you don't have as much time to plan, obviously. And the, you know, the plan that you come up with might not be as effective as you listening to my voice right now and doing what I'm telling you, which is getting in touch with Mike Zeno. So if you do that very thing, talk about what listeners can expect throughout that process of working with you.

Speaker3:
Yeah. I mean, so first thing we're going to do is take a look at your portfolio and your assets. Obviously, this is after a discovery call. Right. But as far as what can we do? We can discuss your financial goals. You know, what is your vision for retirement. How are you spending it? What are you who are you spending it with and how are you going to finance it? We can take a look at your current plan, uh, as well as any assets that you currently have. We can design and implement and walk you through what our recommended plan would be, and we can answer as many questions that you have about retirement, because you might not even recognize the fact. But there are signs everywhere you look, right? Signs that appear before you. And some of those signs may indicate that you need to really look at how you're saving, especially in a 401 K, we can provide that 400 and 1KX ray or portfolio analysis. And so one of those signs would be you know what I'm saving for retirement. But you know I'm really not happy with the rate of return that I'm receiving. If that resonates with you, then you need to give me a call, right? If you feel that your money is not working as hard for you as you do for it and you'd like.

Speaker3:
To learn how to, you know, eliminate future fees and taxes and kick the IRS out of your retirement. Well, then, if that resonates with you, then we should probably speak. And then if you aren't receiving much, if any, help from your work based retirement plan servicer or your human resources department, we can provide you again with that complimentary consultation and full retirement plan by simply giving me a call 704 5601573 or going to the website at Money Matters with Mike comm. Right. If you are in the retirement red zone, meaning that you plan to retire within the next five years or you've just retired in the past five years. What I seek to be for you is your easy button. You guys remember the staples Easy button from about, you know, 20 years ago. You press it and this is what it said that was easy, right? That is what I seek to be for you. And very easy way to make sure that all your ducks are in a row, your I's are dotted, your t's are crossed, and whatever other you know, phrase you'd like to use in there. But bottom line is, you have confidence and peace of mind in your retirement plan and can walk a little taller and maybe even strut a little.

Speaker2:
That's the way to do it. Just go to Money Matters with mike.com to get started or call 704 5601573. Well Mike, that's going to do it for this edition of the show sir. I've really enjoyed it as always. And we'll do it once again next time.

Speaker5:
Yeah, this is.

Speaker3:
A great show Matt and I hope all of our listeners got as much from it, honestly, as I did preparing for the show. Uh, I thank you for everything that you bring to the show and the production quality. But most of all, I gotta, you know, give a big heartfelt thank you to each and every single one of our listeners. So whatever you are doing this weekend, I really hope you enjoy it to its fullest extent. And as always, make it a great day.

Speaker1:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with mike.com or pick up the phone and call 704 560 1573. That's 704 5601573 not affiliated with the United States government. Mike Zeno does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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