Retirement Gameplan: Control, Growth, and Guaranteed Income

5.2.25: Audio automatically transcribed by Sonix

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

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

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

Speaker3:
What's up people? Welcome to the show where we dive into the strategies, the insights and tools you need in order to secure a confident and stress free retirement. I'm Mike Zeno, and my mission is to help you protect your nest egg, outsmart retirement risks, and live the life that you've worked so hard to achieve. Whether you're nearing retirement or already enjoying it, we are here to guide you every step along the way. And boy, do we have a ton of great information for you today. On today's show, we're going to discuss prioritizing protection without sacrificing growth when it comes to your retirement portfolio. 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, sir?

Speaker1:
I'm doing great, Mike. I hope you are as well. I know we've got just so much stuff to get to and a lot's been going on here lately, so I think this is a super important episode for people who are either, you know, getting close to retirement or in retirement right now, just in those first few years, especially because, you know, things have been a little, a little, um, what's the technical term wacko lately?

Speaker3:
It's a tumultuous chaotic. I mean, you could throw any adjective out. Uh, as far as what is going on in the world today. But yes, when it when it comes to retirement portfolio planning sometimes, especially when folks are in that retirement red zone those ten years before and ten years immediately into retirement protection, uh, is a lot more important than growth. Uh, and so making sure that you have money that will last you and be preserved no matter how long you live, I think is really, uh, apropos at the moment.

Speaker1:
Yeah, it absolutely is. It's like, you know, you've already, you know, if you've if you've been saving up and investing in all that stuff and you've got this nest egg, well, you know what? You've already won the game. Uh, don't, uh, you know, make mistakes. Now this close to the, to the finish line and then, you know, find yourself in a place you don't want to be. Um, we're going to actually go through a lot of different scenarios today where, you know, you can actually get that protection and still get some growth and all of the things. And as you said, it's all about income and retirement, getting income, guaranteed income for your, um, your retirement years. But yeah, it's it's going to be a great, great half hour here that we spend with our listeners. And speaking of which, thank you for joining us here for the show, as always. Really do appreciate it. Whether you're listening on the radio in the Carolinas or whether you're listening to the podcast wherever you happen to be, uh, you could be in Timbuktu or you could be in Texas.

Speaker1:
You know, you never you never know, but you could be any of those places listening to us at wherever you are. We do really appreciate it. Um, you can also schedule a complimentary meeting with Mike, uh, just for listening to the show. You know, you don't even have to do anything else. All you have to do is hear the sound of our voices right here. And the meeting is 100% complimentary. Um, just get in touch with him. Money matters with Mike. Comm is the website that's Money Matters with Mike comm. You can also get in touch with them via the the old telephone machine there. (700) 456-0157 three. Yeah. The phone app on your phone. It still works. And you can call him at 704 560 1573. Um, also, you know, go find us on YouTube, find us on Facebook. Search for Money Matters with Mike, either of those places. And, um, you know, bottom line, Mike, as we as we like to say, if you're not finding us out there, you're just not looking because we're all over the place.

Speaker3:
We are all over the place. You know, I love helping our clients. I love when our clients share the content across social media, because it just helps us reach so many more uninformed people that have no idea about how to adequately and efficiently prepare for their retirement. And then you had mentioned it before, Matt, that I actually love meeting with people and helping them with their retirement planning, with their risk management, with their estate planning, and just a whole lot more, because building sound financial plans for our listeners is what we absolutely love to do here at Money Matters with Mike.

Speaker1:
That's right. And the website once again, to reach out, Money Matters with Mike comm. You can call 1573. All right. So we're going to tackle quite a few topics here today. One of them is going to be how to take control of your 401 K. You might think you don't have options outside of your 401 K environment. But you do. Chances are and we'll tell you what some of those are. Also talk about making some smart adjustments to your plan about being a little bit more agile, you know, and actually being able to make some adjustments as things go along depending on what's happening, because circumstances do change after all. And then we'll also talk a bit about the lost decade coming up here before we wrap things up. We'll tell you exactly what that means. First, though, we'll get some inspiration for our conversation, as always, and we'll do that with our quote of the week.

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

Speaker1:
And this time around, the quote comes from Teddy Roosevelt, the first Roosevelt to serve as president of the United States. And TR said this. Do what you can with what you have, where you are. Do what you can with what you have, where you are. It's you know, I think Teddy Roosevelt was one of those who who is sort of famous for saying a whole lot with a few words. And that's, that's one of the things that he, uh, is, is, um, you know, doing right there because it's very true. It's like, you know, control the things that you can control in your current circumstances. And that's really what all you can do in life. And I think that's, um, those are great wise words.

Speaker3:
Yeah. They are. I mean, a lot of people. And forgive me for saying this, a lot of people just like to make excuses of why they're not where they thought they would be. Um, and I think his quote is just so powerful. It's powerful advice for anybody who is planning for retirement, no matter their current stage in life, or no matter their current financial situation.

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

Speaker3:
So I kind of want to break down each one of those. Uh, you know, statements. Do what you can. Well, that means take action, no matter how small that action may be. A lot of people delay retirement planning because they simply just feel overwhelmed. Or they think that they don't have enough money to make a difference. But, you know, Teddy's wisdom reminds us that progress beats perfection. Okay. And whether it's starting a very small monthly contribution to an IRA, or maybe it's cutting a few expenses just to reduce some some debt. Right. Taking any step forward actually matters. Small consistent actions. They actually Compound over time. Matt, what do you think about that?

Speaker1:
I love that because, you know, and I think you said it right there in the beginning where, you know, don't let essentially don't let the perfect be the enemy of the good, right? I mean, it's like, right. Don't just always strive to. Well, if I do this, it's not going to get me right where I want to be. Yeah, but it's a step along the way. It's a step in that direction. So, you know, I mean, as much as we love instant gratification these days, it's not always possible, but get yourself moving in the right direction.

Speaker3:
No doubt. So, you know, do what you can. Was the first part. With what you have means that you need to be able to leverage your current resources, and you might not have a very large income or a very large savings yet. But guess what? You do have something. Whether it is a 401 K, maybe you have some equity tied up in your home. Maybe you're already drawing some Social Security benefits. Maybe you have time. Maybe you have knowledge. But you need to be able to maximize what is already in your hands. Contribute to your employer's retirement plan, educate yourself about investment options, or create a spending plan that actually prioritizes saving and investing. It is about using what is actually available rather than just waiting for that perfect setup.

Speaker1:
I love it, you know? I mean, not everybody has, you know, just a pot of, you know, millions of dollars sitting around and are able to do all of the things that they want to do, no matter what those things are. You know, I mean, it doesn't matter how much you have as far as your resources go, you can make moves that do actually matter and do make a difference in your financial situation. No matter what your situation is, you can get toward that better place. And hey, maybe you'll get to that point where you've got those millions of dollars just, you know, sitting there waiting on you to do something with them.

Speaker3:
That's right. So, you know, do what you can with what you have. And the third part is where you are. So people have to understand that you can start from whatever your current circumstances are. Maybe you are 25 years old and you have a lot of student debt, or you're 45 years old and you have kids in high school or in college, which, as we all know, for those of us parents who have had them in, uh, high school and college, kids are expensive. Or maybe you're 60 years old and you're feeling a little bit behind. And so his quote reminds you to not compare your journey to other people or not wish that you had started earlier. I mean, heck, everybody wishes they had started earlier, right? But you understand or need to understand that you can start where you are, not where you wish you were. And every stage of life offers different opportunities to prepare. Whether it is taking advantage of catch up contributions or maybe reassessing your goals and your timelines. Okay, his quote is a call to personal responsibility and practical courage. Retirement planning is not about waiting for all of the stars to align. It is about acting wisely and intentionally with what you have today. So let's talk about a couple of those age groups.

Speaker3:
All right, 30 years old. You've got limited income. You have no retirement savings. You're early in your career. You probably have student loans, right? Um, but what you do have is the biggest advantage, and that is time. Okay. If you have an employer 401 K with a match, great. Okay. So start contributing just enough to get that full employer match because it's free money set up automatic increases. In other words, every year that you work, you're going to bump your contribution to your 401 K or 403 b or TSP. You're going to increase it by 1 or 2% each and every single year, and then build a simple emergency fund to help avoid dipping into retirement later on. And so the impact there is that small early contributions can grow massively over 30 plus years, thanks to compound interest. And the match that you get from your employer accelerates that growth. All right, now maybe you're 50, you got kids in college, you're behind in retirement, you've got high expenses, limited savings. Okay. You're in the middle to late career. But what you do have is higher income potential and you have catch up contribution eligibility. So doing what you can, you can reassess your budget and redirect cash flow as kids leave the house. That frees up funds you can use for catch up contributions in your 401 K or your IRA, which is an extra $7,500 in a 401 K for this year 2025.

Speaker3:
You can get a retirement income plan, which, by the way, is what we specialize in. Um, to help you understand what is possible and not just ideal. And so with focused effort, with smart strategies like reducing tax drag. All right. You can still create meaningful retirement security in that final stretch of your working career. And then let's look at maybe your age 63. You're retiring soon. You have modest savings. You're literally knocking on the doorstep of retirement. That's funny. I knocked and my dog barked, oh, social security eligibility is there. Maybe you have your house paid off. Uh, in a couple of years, you're going to be eligible for Medicare. So you might consider delaying Social Security to age 67 or maybe even 70, if possible, to increase those lifetime benefits. You could, although this is very, very specific. Consider a reverse mortgage or maybe downsizing. If income needs are tightening around you and you can shift your savings to safer, guaranteed income tools like annuities to cover those essentials. And by optimizing your existing resources and avoiding risky decisions, you can create a plan that provides stability and peace of mind, even with limited assets. Matt.

Speaker1:
Yeah. I mean, that's great because, you know, I think it just highlights the fact that, you know, exactly what you were saying there, that no matter what your current situation is, it's not always going to be what your current situation is in the future. You know, future you will thank you if you make even just those small moves, those small decisions, those small choices right now can make a huge difference down the road, especially thanks to compound interest and especially thanks to consistency on your part. Um, and just, you know, committing to to doing those little things. And it doesn't have to be some difficult, huge, you know, burdensome thing. Um, it can be an easier thing than that. And so that is I mean, it's just great. And I think that it's one reason to, you know, folks, if you are, you know, seemingly overwhelmed by just the thought of, you know, getting your financial house in order or, or planning for retirement, making sure that you've got enough set aside, making sure that what you do have now is going to be able to last you through your retirement. If all of that gives you more gray hairs and more ulcers in your tummy, then what you need to do is give Mike a call because he can guide you through it and give you that peace of mind. Uh, the number once again, (704) 560-1573. Or you can go online. Money matters with Mike. Com.

Speaker3:
Yeah I think I think, Matt that Roosevelt's quote there is just a mindset shift from excuses, okay. That a lot of people love to give about why they're not where they wanted to be to empowerment. And and the key is no matter where you start is intentional action. And you don't need perfect conditions. You just have to have the willingness to act decisively and not later down the road to do it now. So that's what I encourage each and every single one of you listeners to do is take control of your hard earned savings for retirement, not down the road. Do it now.

Speaker1:
And the first step toward doing that is going online to Money Matters with Mike comm. That's money matters with Mike comm. Or you can give them a call. Once again the number is (704) 560-1573. And the consultation absolutely free of any cost or any obligation. And, you know, I mean, essentially, like when you boil down that quote to its essentials, it's basically control the things you can control, no matter where you are or what you're doing or what your situation is. Right. And so we want people to do that. We one of the things that you can actually control in most cases is something I think, Mike, that a lot of people don't necessarily think they have any control over. Um, at least not with, you know, taking some of those funds and moving them somewhere else, for example, and literally having more control over them and their future. Um, and that's in their 401 K, right?

Speaker3:
Absolutely. You know, if I were to ask the majority of Americans, hey, where is your 401 K or your 403 B or your thrift savings plan, your retirement, you know, employer work, uh, force sponsored plan. Where is it invested and why are you invested that way? Um, I would get the deer in headlights look like. Huh? You know, because they have absolutely no idea. Folks, you have control over where that money is invested. And we want to help you dispel the myth that you can't touch the money that you have saved in your retirement accounts. Okay. It is always our goal to help people take control of their assets so that they can protect and grow their hard earned savings. Okay. Most people can remain with their company, stay in the plan, and continue to take advantage of the maximum match from their employer while actually having access to their money. And why wouldn't you take control of your investments when it was possible? So if you are in or nearing the retirement red zone, okay, that we talked about a little bit before, you might consider taking somewhere between 40 and 50% of those dollars and protect that portion from all market loss. And we have ways to help you do that, that have zero fees. And the solution can help provide you with an additional income stream that you can never outlive. And I think that is very, very important when you're going into retirement, because the more guaranteed streams of income you have, the more confidence and the more peace of mind you have knowing that you're not going to run out of money.

Speaker2:
It's time for this week's Problem solver.

Speaker1:
And so that brings us to this. Mike. Yes. It's our very dramatic problem solver. Um, it always I love I love the drama that the, uh, the introduction to this segment always brings. Um, but we've got an example of how this works, how we were just talking about, you know, maybe taking an in-service distribution from a 401 K, moving those funds around and really taking more control of them. So I've got the problem here that we're going to lay out, and we're talking about a couple named Edward and Marie. They're married in their early 60s. Both of them. Uh, Ed is an accountant. Marie is an office manager. They both have retirement plans through work, and they're consistently saving enough to maximize. Just like you said, that free company match while reducing their current annual taxable income. They've been great savers. But you know, both are kind of disappointed in what's happened to their balances this year. They've at least seen about 15% losses year to date. As with all of the craziness that's been happening. So that's their problem. Mike, what would you say is a good solution? How would you solve this problem for Edward and Marie?

Speaker3:
Well, assuming that they have the ability to do so okay, they can each do what is known as an age based in-service distribution and roll over those funds into new accounts. And that allows them to implement a much more risk efficient, market efficient and fee efficient strategy by having them withdraw the maximum amount of funds that still enables them to remain in their company plan and take advantage of any free match, um, or currently unvested balances. And most folks can do this anywhere between 1 and 4 times a year, uh, to take better control of their assets. So I think that is is is one possible solution for Ed and Marie to just again gain control over their future selves?

Speaker1:
Yeah. That's right. I mean, if if you have been disappointed about your returns this year, just like Ed and Marie have, um, the course names have been changed to protect the innocent here. But Ed and Marie, our couple that we're talking about, um, but if you like them, have been disappointed in your, um, 401 K or your, uh, you know, other workplace plan, and you're just kind of afraid to look at it. I don't know how many times I've heard that so far this year, and people are just afraid to look at their at their balances, and that's definitely understandable. Hannibal. You know, it's been difficult to do that, but, um, you know, you've been saving consistently. You've been contributing consistently. So what I would encourage you to do is just is reach out and get that free consultation just to see what better situation might be out there. Could be that an in-service distribution from that 401 K is good for you. It could be that some other solution is good for you. It all depends on what your situation is. And really, you know, like we talk about this um, quite a bit and that's, you know, making smart adjustments to your plan. All of it really depends on you and your situation. There's no real one size fits all here. Um, and so what do we what do we mean? You know, when we talk about making smart adjustments to to your plan.

Speaker3:
I think that everybody should review their portfolio, review their retirement plan, at least at a minimum once a year, just to ensure that you are on track to meet your goals and that your money is on track to outlive you and not the other way around. And in reviewing those assets regularly allows you to know when you should rebalance, because over time, the performance of different assets can cause a portfolio's allocation to drift well away from how it was originally set up. So if you're, you know, in your 20s or 30s and you're mostly in equities because of the the growth and the time that you have to allow compound interest to work for you and you never rebalance until you're 80 years old, well, then you're going to be way out of whack because nobody in their 80s should be, you know, 100% in equities. And rebalancing helps you maintain your desired level of diversification and risk. And then additionally, rebalancing can help keep emotions out of investment decisions, which I cannot stress is so, so important, especially given the economic climate that we now face. Right? Um, it requires periodically buying assets that have decreased in value and selling assets that have increased in value. I'll give you an example. A few weeks ago, you know, we lost $5 trillion in a very, very short period of time. Well, contrarian investors were actually dumping money into equities at that point in time because stocks had lost almost 15% of their value. Right. So they were buying them on sale. And so we want to help take the emotion and more importantly, take the stress out of financial planning so that you can live a stress free retirement.

Speaker1:
And I feel like too, Mike, this is one of those times where a lot of, um, you know, maybe people have a financial pro that they work with or a financial advisor that they work with, and they, um, just haven't heard from them. That's been radio silence from them because that, uh, the advisor or Her probe may be able to just bury their head in the sand a little bit, or it may just be afraid to pick up the phone and reach out to folks because he knows he might get an earful. Um, so that's the thing. If you haven't heard from your advisor or your financial professional lately, I know, Mike, you're just, uh, you're waiting by your phone, waiting on people to call you because you're not afraid to talk to folks during these times.

Speaker3:
Yeah, my clients called me and thanked me for, you know, the fact that they didn't lose a single penny during this economic downturn and the people that were kind of just on the fence, they're kicking themselves right now for not acting maybe a little bit sooner. But whether you out there are looking to optimize your investment portfolio, it's a hard word for me to say today. Um, or you're looking to maximize your security benefits or create a comprehensive retirement income plan. Our team is ready to assist you every step along the way. Like I said in the introduction, all you have to do is call 704 601573 or go to Money Matters with Mike. Com to book that complimentary consultation right now. Okay. We look forward to helping you build that retirement plan that you can count on.

Speaker1:
And that is what it is all about. And boy, that does take the stress just right off your back. Um, when you, you know, have a plan that you know, you can count on and that is really what it is all about. Well, um, last few minutes here of the show, Mike, I wanted to talk about before we go. The lost decade. And I think this is an important conversation to have right now. If we're just able to skim the surface in these last couple of minutes. Um, but the lost decade, um, really refers to a period, um, really in the, in the aughts, as we would say, the, you know, between January 1st of 2000 and December 31st of 2009. Talk about why we call that the lost decade.

Speaker3:
Well, I mean, let's talk about just the statistics with regard to the S&P. Okay. The S&P 500 is an index of 500 large cap stocks. Okay. That's the largest companies in the index itself. Well, during that decade, they had a negative return collectively of 9.1% over the course of the entire decade. And so, you know, in 2000, they lost 9.1% in 2001, 11.9% in 2002, 22.1%. Well, then they had five good years before 2008 happened and the S&P was down 37%. So we want to help our listeners and protect our clients from what is called sequence of returns risk. Okay. We all know that Albert Einstein once called compound interest the eighth wonder of the world. But it is very important to understand that compound interest can work for you, but it can also work against you if you don't have a plan in place. And so again, think about somebody who retired in 1999 and then saw a ten year period where they lost 9.1% there. They won't have enough time to, you know, effectively make up because it took them ten years just to get back to where they were. So in essence, the lost decade and then another ten years just to get back to where they were. Because if you lose 30% overall, you got to gain 43% to get back to even. And that's what I think a lot of people don't understand. They think if they hey, if I lose half and I get half back, I'm back to where I were. No you're not. Okay. So that is why we want to help educate our folks. So please consider scheduling that complimentary consultation where we can help you implement a plan that allows you to capture stock market like gains, but without stock market like risk. Okay, go to the website Money Matters with Mike comm. Or just give us a call (704) 560-1573.

Speaker1:
It's as easy as that and it's as quick as that for the show. This week, Mike that's our time has come and gone. But I thank you as always, sir, for everything you bring to the table. And we'll do it again next time.

Speaker3:
Matt, thank you for everything that you bring to the table. Okay. But most importantly, thank you to all of our listeners. Whether you're listening live in the Carolinas, on the radio or anywhere globally on podcast, without you, we don't have a show. So again, share us across all your socials and whatever you're doing this weekend. I hope you enjoy it to its fullest extent. As always, make it a great day!

Speaker2:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with mike.com or pick up the phone and call 704560 Zero. 15. 73. 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 guarantee of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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