Rules to Follow (and Rules to Break) for a Successful Retirement

12.22.23: Audio automatically transcribed by Sonix

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

Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty and how it could all affect your future in retirement? Then tuned in to Money Matters with Mike to learn how you can protect and grow your hard earned money. Money matters with Mike every Saturday at 9AM right here on FM 100.1 and Am 1340. Schedule a free, no obligation consultation now at MoneyMattersWithMike.com.

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, folks. Two days before Christmas and what a great time to be alive in these United States of America. Money matters with Mike is 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 some rules to follow and break for a successful retirement. And back in the saddle again, 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 you doing today, brother?

Producer:
I'm doing great. Mike I hope you are having a great holiday weekend. So far I am. I'm just glad to be back here with you. You know, it's, uh. I hate being sick, and I don't do it often. Uh, for good reason. Because it's just it's not fun. Yeah.

Mike Zaino:
I don't know anybody that actually enjoys being sick. And if you do, they're the. I don't know what to say.

Producer:
It sounds like you're, uh. What is that, a masochist or something? If you.

Mike Zaino:
Like. Sadist, a masochist, uh, one of those. But I am definitely, uh, glad to have you back in the saddle again. You know, last week we had a special guest, uh, co-host in in, in. Sam and Sam does a phenomenal job. And and then we had a, a special guest interview, and we interviewed the president of Tranzact card. So if you guys missed last week's show, definitely go back and listen to that one, because that was, you know, a classic example of how Americans can fight back against, uh, inflation and put more money into their pockets. So, uh, it's great having you back though, Matt.

Producer:
Thank you Mike I appreciate it. And it's it's great to be back, as I say, and I loved watching the video of that interview from last week. Show folks, you can find that on YouTube. Just search for Money Matters with Mike. If you go to YouTube on the app or online and you'll find it there. You can also get the full episode from last week by going to, uh, anywhere you subscribe to podcasts. Number one. Number two, you can go online to the website at Money Matters with Mike. Com and click on the episodes, uh, button there at the top of the page. And make sure and check out all of the previous episodes of the show. And we got plenty of them, because, you know, we've been doing this over a year and a half now. So there's, uh, you know, there's a bunch for you to choose from. And, uh, because let me tell you, we rarely miss a week around here. So you got plenty of knowledge and wisdom that, uh, Mike Zaino has imparted to you about all things money over this past year and a half plus. So a lot of great stuff online. And we are all over the place, even on the socials. Uh, Money Matters with Mike on Facebook as well. And as I said, uh, on YouTube, you can also in addition to going to the website, you can also give Mike a call. And um, that's another way to do it. And Mike will pick up the phone. He absolutely will. And if he doesn't, he'll give you a call right back.

Producer:
I can guarantee you that. (704) 560-1573 is the number Well, Mike, a lot of great stuff to come up here on the show today. You know, you mentioned that um, that we're going to talk about some rules and, and as we like to say, rules are meant to be broken. So we're going to tell you the rules to follow and the rules to maybe use as suggestions, but can also be broken here. Um, some, some guidelines. In other words, for your retirement planning, we'll also talk about smart review and making smart adjustments to your retirement plan. We'll of course reiterate what that Smart acronym is as well. So stay tuned for that. Uh, we've got some Smart legacy talk to go through. We'll do a problem solver on a stray 401 K. If you've got a 401 K, that's just. Out there floating in mid-air or it's, you know, running around to the the neighbor's back porch or something. I don't know, like a stray cat. Um, you want to you want to corral it, you want to bring it in, you want to take control of it. And we'll go through some ways that you can do that and talk about avoiding holiday scams. I cannot believe that the Christmas holiday is literally just around the corner now. I mean, it's been sneaking up on us quick. Um, but yeah, there are still some scammers out there that want to take advantage of you, especially during this, which is supposed to be like the happiest time of the year, right?

Mike Zaino:
It is supposed to be the most wonderful time of the year. And the song says yes. And there are people that that want to take and prey upon, especially the, the least suspecting and most vulnerable, uh, which happens to be, you know, the, the, the senior market and, uh, I just I've said it before, but there's a special place in hell for those folks.

Producer:
Yeah, I mean, it really and and perhaps a special place in jail as well. And we'll we'll exactly. We'll tell you how you can report, uh, those types of incidents if you find yourself becoming victim or suspect that you're a victim of one as well, and you can report those to the authorities. All right. So we'll go through that coming up a little bit later on. First though, let's kick off our discussions today with a great quote of the week.

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

Producer:
And those words of wisdom this time around come from Will Rogers, the American vaudeville performer, actor, and humorous social commentator. He did have some great quips, and this is one of them. Uh, Will Rogers said this quote, too many people spend money they earned to buy things they don't want to impress people that they don't like.

Mike Zaino:
And you know, Matt, when I when I hear that, I just think of, uh, man, how many people do that and how much money is, is spent and how much money is actually wasted during the holiday season. I remember, you know, as a, as a young father, my daughter was turning, I think she was about to be three years old or just turned three years old. And that particular Christmas, I bought my wife a, uh, piano, uh, you know, a digital piano. So a stand up piano that she could play on. She still plays it to this day. Um, but I had I think we spent maybe $200. And so we're talking about, like, 25 years ago. All right. Because my daughter's 27. And and so the fact of the matter is, I dressed up the box that the piano came in, okay. And she had more fun playing in that box that literally cost me nothing. Then she did for the $200 worth of, uh, let's face it, crap that we bought a three year old. Um, and I was like, well, why are we buying all of this? Uh, I remember as a young child, my grandmother used to give me pots and pans and a wooden spoon and some buttons, and and I would entertain myself for hours, um, much to her chagrin. I don't think she had earmuffs, but she's probably wishing that she had. But, I mean, that's what I played with. And then, you know, Army men and everybody listening is probably recalling the days when when parents just said, hey, you know, you go outside and don't come back to the streetlights, come on. And, you know, sipping water through a garden hose. And, you know, I think that's what, uh, that's what made us as tough as we are. So.

Producer:
Yeah. No, I remember those days, you know, when I was, uh, you know, a little kid, I would go down the street, you know, play with my my friends down the street pretty much all day long. Mhm. Uh, whether school was in or out, you know, after I got back from school, I go home, I'd hopefully do my homework and then I would go out and I would play with my, with my friends. I'd come back at night, I'd eat, I'd, you know, go to bed. And that was just the thing that you did every day. I feel like though, you know, a lot of times as we, um, as we get older and our, our priorities shift sometimes, you know, and we and we get, you know, we work, we, um, a lot of us, you know, we work very, very hard. I know that, uh, our listeners out there, you work hard every single day. And, you know, sometimes you just forget how, um, how simple life can be and how creative you can be with just those, those little things in life. Like, you know, you mentioned the pots and pans and stuff. I, I remember some of my favorite memories as a kid are just sitting on our living room floor and, um, my dad sitting on the couch and the two of us bouncing a balloon in the air back and forth to each other. Yeah. And that was just that was the most fun thing. Had to keep it in the air, you know. And that was just the like most do that for hours, literally. So the, the easy, simple things in life, uh, we forget about a lot of the time we do.

Mike Zaino:
And it's so funny that you mentioned that because, you know, I did that with, uh, you know, with my grandparents. I did that with my kids. And you're right. It's so funny. And what does a balloon cost? You know, $0.10 now, maybe. And so, you know, the fact that that people are spending money that they earn to buy those things, that they don't want to impress the people that they don't like. I mean, that's that's a classic example of of keeping up with the Joneses. And so don't feel tempted or I should say, should I say resist the temptation, uh, this holiday season. And I know it's probably too late, seeing as Christmas is in two days, but, uh, you know, so keep that in mind that that you don't have to impress anybody when your gift giving.

Producer:
So yeah. Exactly. If you're going to do some last minute gift shopping, um, don't feel like you got to go to, uh, you know, a big jewelry store, uh, down at the mall or something. Um, just give something from the heart that's really what matters. And, you know, when they say it's the. It's the thought that counts. It's really true. Um, because if you do put thought into something and you don't just give whatever because it's nice or fancy or you want to impress somebody, um, then that means a whole lot more to that person and shows them that you care and that you spend some effort.

Mike Zaino:
It absolutely does. And that can be something as simple as, you know, getting them a gift certificate to a car wash or, you know, offering to have them, uh, get a massage or, you know, just something instead of things and material stuff, you know, give them experiences and things that they'll remember. Yeah, that.

Producer:
Is a great, great point there and a great tip. Um, one thing too, though, that you can also do for somebody is pay their required minimum distributions. No, I'm just kidding. You can't pay their children, but you can pay your own before the end of the year. Required minimum distributions. Um, that's a big, big reminder for folks. Um, because and I and I, we jokingly say that because nobody likes doing the required minimum distribution thing because basically all it is, Mike, is the is the government saying, okay, look, you've held on to this money for long enough. It has grown, uh, over the years. You got to pay. Pay the piper here. You need to pay your tax bill.

Mike Zaino:
You do. And you have six days to to do that. Right. So, um, or seven days. Yeah. Seven. Yeah. Seven days to make sure that it's done by the end of the year. And so that deadline for the required minimum distributions is December 31st. And you know what? We do this proactively with all of our clients just to help them plan any annual distributions in an efficient manner. So missing that deadline could result in a significant penalty. In fact, it's the largest that the IRS has in their arsenal. So be sure to mark your calendars and prioritize. That's very important financial task before it's essentially too late okay. And then just a heads up, the IRS is actually, uh, extending some grace, if you can believe that or not. But they're waiving penalties for RMDs for some beneficiaries who inherited an IRA. And according to Kiplinger, they're going to waive the penalties for RMDs that were missed in 2023. From those IRAs that were inherited in 2020, two were the deceased owner was already subjected to required minimum distributions, and that is a partial extension of relief from the two previous years. Uh, bottom line is, is that can be really, really confusing, especially with inherited IRAs. So if you have any questions whatsoever, please pick up the phone. Give me a call 7045601573I can connect you with a qualified tax professional who can make sense of all of the mumbo jumbo when it comes to required minimum distributions, as well as the Internal Revenue Service.

Producer:
Yeah, which is no easy task to make sense of the IRS. Really? You could also go online. Money matters with Mic.com. That's money matters with Mike. All one word.com. Or just email Mike at Mike at Money Matters with Mic.com. All right. So you know we mentioned at the top there are some rules in life and there are rules that are meant to be broken. And so we're going to go through some of these now the ones that you should follow, the ones that you should consider as just kind of guidelines in general rules, you know, to to sort of keep in mind but not necessarily follow to the letter here. Um, but they're, they're going to be really some, some tips, some, some good advice to, uh, really make a more solid foundation for your retirement. The first is probably the easiest, I think, to understand, Mike. And that is the rule of 100.

Mike Zaino:
Yeah, the rule of 100 is a simple, but it's also an effective way to diversify your investments and plan for retirement. And the way it works is by you just take the total, uh, number of your age, okay, uh, plus your investments in, in stocks and ensure that it doesn't exceed 100%. For an example, if an individual is 30 years old, they should be 30% safe and have no more than 70% of their investments in stocks. And therefore, as they age, their percentage of investments in stocks and those more volatile type, uh, investment vehicles should decrease so that their total, um, age plus the percentage of investments in stocks doesn't exceed 100. That's the, you know, the plain old, you know, rule of 100.

Producer:
Yeah, yeah. And that's of course, why they call it the rule of 100, because you don't want to go over 100 and that and basically you take 100, you subtract your age. And then the left over amount is the amount that you should have at risk in the stock market. And then, you know, or some sort of, um, you know, riskier type of investment. And, and basically it's, you know, showing you that the older you get. So the closer you get to retirement, the more you want to have as far as the safe portion of your portfolio. That's right. Because you have that it's a time horizon thing. We're all getting closer and closer to retirement, so you don't have as much time to make up for big stock market losses. When you get older and closer to that date where you want to say goodbye, Mr. Boss Man, I'm going off on my own and enjoying my retirement years.

Mike Zaino:
That's that's true. And so, you know, by utilizing. That rule of 100, you're able to reduce your risk by limiting your exposure to market volatility the older you get, especially once you are within, uh, five years of retirement or the first five years in retirement. Of course, if you've been listening to our show for any length of time, you know that we have dubbed that ten year time period the retirement red zone, and that can help you protect your retirement savings and ensure that you have enough money to last you throughout your golden retirement years.

Producer:
Yeah, absolutely. So that is the rule of 100. Fairly easy to understand. There may be slightly more complicated. And this is one of those that that people should feel free to not necessarily completely break but adjust. You know, the number here based on their own individual situation because this is a very individualized thing. But it's the 4% rule. Yeah.

Mike Zaino:
So the 4% rule is another very popular rule of thumb for retirees to follow when it comes to managing the withdrawal or the drawdown of their retirement assets. And it suggests that you should not take more than 4% of your retirement savings in any one year in order to maintain that nest egg. And if you think you know, heck, if I take 4%, that should last 25 years. Why? Well, four times 25 is 100, and then 4% times 25 years would be 100% of your money over that time span. But that really will vary depending on your individual financial situation. And that rule is generally accepted as a safe way to ensure that your retirement will last, uh, those 25 years. It does take into consideration two very bold assumptions. Number one, that your money doesn't earn any money. Uh, and then number two, more importantly, that your money doesn't lose any value. So, you know, as with any rule, there are some exceptions. And depending on the situation, some experts suggest abiding by a 3% rule. So if you're retiring early or earlier, like maybe in your 50s or early 60s and you have extreme longevity in your family's history, then the 3% rule may be considered a safer way to keep track of your money. Okay. Especially when you consider, uh, factors such as the current inflation rate, uncertain market conditions. Um, so, you know, 3% may be a little bit safer amount and one that will increase your longevity, because if 4% lasts 25 years, assuming no growth and no loss, then 3% will last 33 and a third years, assuming no growth and no loss.

Producer:
Yeah. So that that's, uh, you know, the longer that can last, the less likely you are to outlive what you've worked so hard to save and invest over the years. Right? So that's what you want to do. You want to not have more, um, money. More life than money. You want to have more money than life, right?

Mike Zaino:
Yeah, absolutely. You don't want to don't want to run out because, you know, being alive and being broke. That doesn't sound like much fun, Matt.

Producer:
Oh, gosh. No. Uh, you know, just, um, you put me out to pasture or something because that that would not be a fun situation. Um, another rule. This is the last one. I know people are like, oh, God, it's the rules. I got to follow rules now. Um, but these, again, are more, you know, suggestions, guideline ones, that type of thing. Uh, rules of thumb really to for you to keep in mind for your retirement. This one is the rule of 72. And it has nothing to do folks with the age of 72 or anything like that, there's nothing magical that happens at the age of 72 that we're going to talk about here. Um, but it's a really, um, you know, good calculation. Uh, that's that's a very simple one for you to use to find out how fast your investments might grow. Right? It is.

Mike Zaino:
And so a pretty smart individual is credited with coming up with the rule of 72. You might have heard of them before, uh, Albert Einstein. Um, and so the rule of 72 is a straightforward calculation that's used to estimate the amount of time it's going to take for your investment to double in value. And so to calculate, you just simply divide 72 by whatever expected rate of return you think you're going to get. Uh, in order to get the number of years that you're going to need, uh, in order to double your investment, for example, if the expected rate of return is 8%, then it's going to take you nine years for your investment to double, right? Because 72 divided by eight is nine, and nine times 70 or 9 times eight is going to be your doubled investment. So again, by understanding the expected rate of return of any particular investment, investors can use the rule of 72 to estimate how long it'll take for their money to double in value, and that can help them decide which investments to make and how long to hold them. So for an example, right. The rule of 72 can be used to estimate that return needed to achieve a desired goal. Well, if you want your money to double in three years, you're going to need an expected rate of return of 24. Percent right, 72 divided by three is 24. Now, 24% return doesn't happen that often, does it, Matt?

Producer:
It does not. It has happened. It has been known to happen. And even more than that. But, you know, getting that rate of return really is not, uh, not an everyday occurrence. So yeah, it's, um, gonna help put things in perspective. The old rule of 72 there.

Mike Zaino:
So, you know, if you were to invest or you to start investing or continue investing, my question is, who would you invest with? If you've listened to this radio show for a long time and you'd like to give me a call, have a little conversation. Guess what, folks? You can. All you need to do is pick up a phone and give us a call. You've not made a decision until you actually take action, and by taking action, you're able to take control of your overall retirement plan and better project and grow your hard earned and hard saved assets. And again, that telephone number is 704 5601573. You can also visit the website at Money Matters with Mike comm. That's all spelled out. Or you can email me, um, you can send a carrier pigeon if you'd like. I'm teasing about that last one. But the bottom line is take action. Stop procrastinating.

Producer:
It's time for this week's Problem Solver.

Producer:
So the problem this time around, Mike, is the old stray 401 K. Mhm. Um, I just, I imagine, you know it being like a stray cat just kind of running around doing what it wants, which is kind of the truth because it, it really, you know, you have no, it's money that's yours, but you don't really have any control over it because it's sitting in a, you know, a 401 K from an old job that you had and left a few years ago. Um, and it's just kind of been sitting there, you know, growing maybe, perhaps. But you haven't really had any say on what the investments are or anything like that. So that is kind of the problem here. A lot of people really neglect to roll over those funds from a previous jobs retirement plan. And that's the the 401 K that has become astray. Or it's an orphan now. Um, we actually recently worked with someone named James, uh, purchasing executive who changed jobs a couple of years ago. He had a sizable IRA, but what he may or may not have actually realized in the beginning here is that he had a stray 401 K at his previous job. That could have been earning him a lot more. Mike. So what's the solution there? What was the solution for James anyway? Right.

Mike Zaino:
So, you know, we were able to take, uh, and roll over $80,000 that was just sitting there in James's old 401 K plan, and we rolled that over into an IRA, which increased the size of that account by 10%. And now he has many more investment options. He also has lower fees. And so not only is it more investment, lower fee environment, but he's getting a better rate of return on his investments because we helped him replace the bond portion of his old 401 K with a fixed indexed annuity. And so I just want to make sure that everybody understands if if you have an orphaned 401 K and or any money that's sitting out somewhere when you roll it over, that does not create a taxable event. And so this wasn't a taxable event for James. Had he cashed out his 401 K or converted that to a Roth account, he would have had to, uh, pay the piper in the taxes due Uncle Sam. So just remember that, set it and forget it is very often not a good strategy. I always ask my, uh, workshop attendees. I say, hey, you know how many people in this room have moved in their adult life? And almost everybody raises their hand? And I asked them, well, you didn't leave your vehicle parked in the garage of the house that you no longer live in, did you? And they all kind of look at me crazy.

Mike Zaino:
They're like, no. Well, then why in the world would you leave your 401 K parked at the employer you no longer work for? So we help people manage their hard earned and hard saved money in a much more efficient way that fits their needs. So let us help you take control of your retirement plan by rolling over any of your orphans. Okay? Any of your old work? Uh, 401 S, 403 B's. If you're a federal employee and you have a thrift savings plan that's just sitting there, uh, you we might even look at converting some of it and going to a Roth side so that your money grows tax free for the rest of its life. Just give me a call 704 5601573 or visit us online at Money Matters with Mike comm.

Producer:
And it really, Mike all comes down to what is best for the individual. You know, we talk about a lot of things. We talked about rules, some you know, rules of rule of 100, uh, rule of 72, all those kind of things, um, a little bit ago, 4% rule that are, um, that we call them rules. And, uh, you know, a lot of them, a lot of times they are rules that you should really, really stick to. Other times they can be, you know, kind of guidelines for you. Yeah. But, um, you know, they're really all comes back to the individual's personal situation and what is best for the person. Um, and that is really what it's all about where the, where the rubber meets the road, as it were. Um, to, uh, you know, reach out and get that initial free consultation that is absolutely obligation free and absolutely free of any type of fee or anything. Uh, in the beginning here, when you start this relationship, because it really is, um, something that can be very, very beneficial to you. And then, you know, once you establish that relationship, a great thing to do and a thing that I know that you do all the time with your clients. Mike is a smart review, right? A review of the performance of your your retirement accounts, your investments, things like that to see if anything needs to be moved around, changed, adjusted to see if your needs have changed. That's really where the personalization comes in, not only in the beginning when you set up an account, but as you just said, you don't set it and forget it. You make a changes as you go along. Based on that smart review.

Mike Zaino:
Yeah, you have to make the reviews as you age, because I don't know that I've ever met any one person whose circumstances were the same in their 20s and their 30s, their 40s, their 50s, their 60s, their 70s and beyond. Right. Life happens to folks. And so your plan has to be, um, liquid. It has to be able to evolve as you evolve and you go through. There is no such thing as always do this or never do that. And we definitely do not use a one size fits all. So it's very, very important to make sure that you're not setting it and forgetting it, but in fact, setting it and inspecting it and reviewing these things, at least on a quarterly or semi-annual basis, to ensure that you're staying on the right track in order to meet those, you know, retirement goals and dreams.

Producer:
Yeah, absolutely crucial to do that. And when you know, people reach out, Mike, for that initial consultation that I mentioned just a minute ago, um, what's that process like? Because because a lot of people, I feel like get intimidated or, you know, just kind of get freaked out a little bit to, to be very technical about it. Right? They get freaked out, uh, by reaching out to anybody who is kind of an expert in the financial space because they either think, oh, I don't have enough money to worry about, uh, you know, seeking help or advice or they're going to think that my situation is that I'm beyond help and that I just can't, you know, nothing can be done because I've got too much debt or I've got, you know, this, that or the other situation. But that's not at all the case.

Mike Zaino:
It's not matte. In fact, the first step is, is admitting that you have a problem. Right? And if you need some help, then I'm about as, as down to earth as, uh, I've ever met when it comes to a financial professional, I honestly, I don't care if you have $10 million or you have $10, it legitimately does not matter to me. What does matter to me is that you have some goals, you have some aspirations, and we put together a plan for you to reach those goals, those dreams, those aspirations. So again, we do that at no cost. And you're only going to end up working with me if it's best for you. So I'll take a deep dive. We'll look under the hood and we'll see where your money's going. We'll see. You know, if you're bleeding anywhere, if you're hemorrhaging. And we'll try to stop the bleed. And, you know, if you have annuities, we can look at those. You know, some people bought annuities way back when and those are the old school type. And we can rescue you from those. Those are the kinds that we do not like. There are several that we absolutely are major fans of. In fact, I have my mother and my mother in law in fixed indexed annuities.

Mike Zaino:
But, you know, we'll discover how much you're paying in fees. We'll help you cut any unnecessary costs. Um, and we can also help with Social Security maximization planning. If you're coming close to hitting the age of eligibility for Social Security, which is 62, unless you are disabled. And we can also help you with Medicare, which we just finished our annual enrollment period earlier this year or month rather. But, you know, if that's something that's coming up on your horizon for this upcoming year, trust me, you're going to be put on every turning 65 list there is, and you're going to have every Medicare sales agent, uh, on the face of the planet calling you and sending you junk mail. Um, and so if you want help deciphering all of that, just pick up a phone and give me a call. Bottom line, again, we'll compare your current situation to what's possible to working, you know, with me. And then bottom line is, is if you haven't heard from your advisor lately, um, please give me a call, get a second opinion. I want to make sure that you're on the path to retirement that you've always dreamed of.

Producer:
Yeah. If you have an advisor or a financial professional that you work with and they're Mia, uh, give Mike a call. And that will not be the case with him. 704 5601573704560 1573. You can also go online to the website there. It's MoneyMattersWithMike.com. Well okay Mike. So after that smart review happens then come uh opportunities all along the way to make those smart adjustments that we talked about. Yes. And and it really is, you know, a matter of knowing whether or not some adjustments need to be made and then making them in a way that is going to be beneficial to you, not just sort of, you know, throwing something at the wall and seeing if it sticks.

Mike Zaino:
Right? No. So just it's important for our listeners to understand what Smart stands. For Smart is actually an acronym and it stands for the S stands for specific. The M stands for measurable. The A stands for achievable, the R for relevant, and the T for time bound. So when we're making adjustments we want to make sure they are smart adjustments. So you should have your portfolio as well as your entire retirement plan reviewed at a minimum of annually to ensure that you are on track to meet your goals and not outlive your money. And so by reviewing your assets regularly, that allows you to know when you should rebalance over time. The performance of different assets can cause a portfolio's allocation to drift away from how it was originally set, and rebalancing helps you to maintain your desired level of diversification as well as risk. So, you know, imagine a 20 year old that's got 80% of their money in equities. Um, when you're 80, you don't want to have 80% of your money in equities because God forbid, the market tanks. Then there goes your livelihood with it. So additionally, rebalancing can help those, um, motions to stay out of investment decisions because it requires that you are able to just look at numbers and remove emotion from it. The smartest investors are able to do that. And periodically buying assets that have decreased in value, and then selling assets that have increased in value, obviously just puts you in a much better position, but we want to help you take the emotion. More importantly, take the stress out of financial planning so that you can live that stress free retirement that you've always dreamed of. So like we said, you know, I happen to know a guy.

Producer:
Yeah, absolutely. Me too. Uh, his name is Mike Zaino, and the website is MoneyMattersWithMike.com. That's MoneyMattersWithMike.com. You can also call Mike 704 5601573704560 1573. And Mike I'm going to throw in here. Just a couple more rules that just popped into my mind that people these are these are the rules that people do need to follow. One is don't invest with emotion, as you were just saying right there. And the other don't try to time the market. Yep. Um, because, you know, you can, as we've said previously on the show, you can get it right once, but getting it right twice because you got to get it on the upside. And on the downside, you got to get it right. You know, the buy low, sell high. Um, doing that all the time with any degree of regularity especially is super, super hard. So that is something to be avoided.

Mike Zaino:
Yes. I couldn't agree more. Um, in fact, most money managers don't get it right twice. So time in the market much more important than timing the market.

Producer:
Yeah, 100%. Absolutely. Right. And so, you know, I mean, if you are one of those people who says that I am 100% sure that I'm going to have a great retirement, um, then you're great. You're set. You're wonderful. Um, go, you know, go ahead and retire and, uh, and, you know, do do your thing. Um, but if you have any inkling of doubt, let Mike help you get started with that complimentary consultation and get a plan for you that's focused on your specific situation and your specific goals. Once again, you can get started down that road by going to MoneyMattersWithMike.com. All right. So another smart thing here that we're going to take a look at Mike is smart legacy. And you know this is something that you know it really involves of course planning ahead for future generations of your family of your loved ones. But people don't often like to talk about the end of their life. I mean, for good reason. It's not a it's not the happiest topic in the world to think about, but it's something that's it's necessary because you want to make sure that you are set up for your retirement, that you are are good to go for those golden years of your life. What should be your golden years of life? But you also want to make sure that your loved ones are taken care of after you're gone.

Mike Zaino:
Yes, Matt, and like you said, planning for the end of life. Um, that can be pretty tough to discuss. Okay. And I can speak from personal experience on this. Um, my mom, I've been after her for about five years, and literally just, uh, a week and a half ago, we set up her estate. Now, a lot of people kind of laugh when I use the word estate because they don't have a whole lot. Well guess what? My mom is comfortable, but she it's not like she's sitting on piles and piles and piles of assets and money. Family doesn't want to think about life without you, and they may choose not to make a plan just to avoid hard conversations. And so the reality. Is that planning for the end of life actually protects your family. In fact, it's one of the biggest gifts that you can give your loved ones because you've laid everything out for them. So you know, some of the benefits of of both the state and legacy planning. Um, number one, you can ensure that your assets are passed on to loved ones in a tax efficient manner. So by setting up both wills and trusts, retirees can avoid those hefty taxes associated with the distribution of assets after death. And they can also ensure that the assets are distributed according to your wishes. Okay. And that eliminates any possibility of family disputes over who should receive this and who should receive that. So the ability to provide for your loved ones in the event of your death can provide extreme peace of mind. Knowing that your family is going to be taken care of even after you're gone.

Producer:
Yeah. I mean, you know, the disputes over, uh, inheritance and stuff like that, they might make for entertaining plots of movies and stuff, but you don't want to find yourself in that situation, you know, and you want to make sure that your wishes are carried out and that, um, where you want those things to go is where they go. If you want some to go to charity, that it goes there. If you want some to go, you know, a certain portion to go to this person, a piece of real estate to go to that person. You know, all of the things, uh, get this, you know, estate plan and, and will in place and that's really going to make sure that that happens. Now you mentioned of course Mike will and a trust there are differences of course, between the two. I think sometimes people might get them a little bit confused. Um, so just kind of go through what are some of the similarities and differences between wills and trusts?

Mike Zaino:
Yeah.

Mike Zaino:
So a will and a trust, they're both a legal document and they're both used to manage a person's assets. After their death. But they do serve different purposes and have some key distinctive, uh, differences. Okay. So a will that is going to outline how a person's assets should be divided upon their death. And it also outlines the person that's going to be appointed as the executor of this, the estate. And then who should receive any of those assets. Now, a trust, on the other hand, that's an arrangement that allows for a person to transfer their assets to a trustee during their lifetime. And then the trustee is then responsible for managing the assets and distributing them to the beneficiaries that are named in the trust. And so having both of these documents in place can help you avoid probate, um, which is where the state comes in and takes over and then also takes a portion of those assets. So, you know, our two big tips as far as planning your legacy is concerned. Number one, have a will, okay. Don't leave your legacy in the hands of the courts and the state and make your last will clear so that your family doesn't have to bear any additional burden after you pass away. That's number one. And then number two, make sure you have a Roth IRA, because those funds within the Roth IRA pass on to your beneficiaries tax free. And any growth within those Roth IRAs that is tax free as well. So don't let your family inherit a ticking tax time bomb that's going to explode on them after your demise.

Producer:
Yeah, absolutely. And so, you know, folks, if that piques your interest in getting some of these things set up, if you're like, you know, like I was talking about earlier, you thought, oh, I don't have enough money to worry about, uh, you know, coming up with a financial plan for my retirement. I don't have enough money to worry about a will or a trust or any of those things. Uh, chances are, yeah, you're wrong about that. And so if this has piqued your interest and maybe helped change your mind a little bit, or even got you curious about it, um, give Mike a call A7045601573704560 1573. You can also go online to Money Matters with Mike comm and get you connected with some experts there who can help you make that process absolutely as easy as possible. It all sounds complicated and overwhelming, I'm sure when you go into it, but it does not have to be overwhelming or complicated for you. Mike Zaino can help you make it much, much easier. Uh, easier to understand and easier to to implement as well when you reach out. All right. So, yeah, as we talked about earlier, you know, the Christmas is just about here. It's literally staring us down at this point. And, um, there are still those Grinches out there. Lurking around the corner, trying to get your hard earned money, trying to part you from that money and your personal information so that they can get more of your money. So don't let those Grinches steal your holiday cheer or any of those funds that you have stashed away. Um, there are ways that you can avoid holiday scams this year, but they're everywhere, Mike. I mean, I know that I've gotten, um, you know, a bunch of the texts saying, oh, your package could not be delivered. Please click here for the. And it's like, no, I, I don't have a package coming today. So you're full of it and I am ignoring you. Yeah.

Mike Zaino:
No, I mean, the holidays are a great time. They're supposed to allow you to gather with friends, with family, uh, with food. Okay. And in a time of fun and giving to others. But these scammers, these cyber criminals, they also take advantage of this time of year to cook up schemes, um, to steal from those folks that are just very unsuspecting. And according to a 2023, um, Fraud Watch Network report that was done by AARP, about 80% of US consumers, 80% have experienced or been targeted by at least one form of fraud that can be tied to the holidays, including those, uh, requests from often fake charities, uh, online shopping scams, fraudulent communications about shipping problems that you just mentioned. Uh, I received two of them today. Um, and I'm like, uh, you know, it's so aggravating. Most scams are variations on everyday fraud that are ramped up to match seasonal spikes in spending as well as web traffic. And not surprisingly, they often center on shopping, especially online. And so these scammers, they're good, y'all. They can create fake ads that link to very realistic looking websites, but they're nothing more. I mean, nothing more than vehicles to harvest your credit card numbers, your date of birth, your last four of your social. Um, and fraud involving drained gift cards also shift into high gear this time of year.

Mike Zaino:
Yeah, I've.

Producer:
Heard a lot about that this year as well, and seen a lot of that on the news about people going in messing with gift cards so that when it's activated, they can just drain that of any funds that you've put on it immediately. Um, it's really kind of a scary deal. Um, so go through some of the kind of big hallmarks of the season. I know that, uh, there's a there's a particular TV network that shares that name, hallmark that my mom loves to watch this time of year. But we're not talking about that kind of hallmark. We're talking about the hallmarks of the season that provide opportunities for these grifters. Uh, and this is some information here from AARP and that study as well.

Mike Zaino:
Yeah. The first one is, is the charity scams. Okay. So one third, believe it or not, one third of all charitable giving is done during the month of December, according to network for good. And that means that more sham charities that are built just to exploit Americans goodwill, uh, via fake websites and pushy telemarketers, they're going to be more prevalent. Those charity scams, um, the the next one is delivery scams, especially since holiday packages are crisscrossing the United States of America. These scammers send out phishing emails, uh, and phishing text messages that are disguised very well disguised. I may add, uh, as UPS or as Fedex or as the United States Postal Service. And they're fake notifications about incoming or missed deliveries. And so they provide you with a link to click. And that phony sign in page asks you for all your personal information. And or it leads to a site that's infested with malware so that as soon as you click on that link, they can, you know, they can mirror or copy every single stroke on your computer. So you have to be very, very wary about those types of emails or text messages. And then I think, uh, another major one is travel scams. And a lot of criminals will send scam emails as well as texts that are offering promotions like free flights, uh, free hotels, um, anything that is going to enable you to start sharing your credit card information, your personal information, or click on those links that again, download the malware onto your computer. Um, I always say people, look, if you didn't seek out the information, don't click on a link.

Producer:
Yeah that's 100% true. Great, great advice there. And there's some big warning signs here to watch out for too. Mike, when you encounter a scam or potential scam, some some ways you can kind of know that it's a scam. Um, if you see things like these big, big discounts on some of the big hot gift items of the year, um, especially on social media posts, things like that. Uh, there may be, you know, links there to unfamiliar websites. They might look legit, like you were saying, and be very convincing. Um, but they could very well be a scam. So you want to be really careful about that? Yeah, the biggest one for me, the spelling errors and the shoddy grammar. Right? I mean, on a shopping website and an email or a text, if they're all just riddled with punctuation errors and grammatical errors, misspellings. Uh, that's probably a sure sign that you're not dealing with a professional organization or company or.

Mike Zaino:
Anybody in the United States where English is their first language.

Producer:
Also also very true. Uh, could be someone who, you know, even working through Google Translate or something. And in a foreign country as well, if it sounds like broken English when you read it out, maybe they're not the misspellings or anything, but it just some of these words seem like they're in backwards order. And the sentence or something. If it doesn't seem right or feel right, then you probably just want to steer clear. Also, unsolicited emails like you said, if you didn't reach out for it, if you didn't request the information, uh, avoid it. If it asks you to click a link or download an app to access a deal or arrange a delivery, stuff like that, steer clear. And also, you know, too much pressure from a charity fundraiser to donate right away if they're really, really giving you, uh, pressure to to oh, no, you got to donate right now. You got to donate right now. Um, that's probably not a real charity, right?

Mike Zaino:
Probably not a real charity. You know, most most charities are not going to pressure you into giving money. I mean, again, I'd like to say use common sense, but it's becoming more and more and more difficult to use common sense. And because of how good the fraudsters are becoming. So, you know, there are ways to protect yourself. The first one, just like I just said a minute ago, rather than clicking the link, okay, from an email or a text message to get that hot deal, just go to the web browser and type in the web address of the company that was purportedly offering this said great deal, and I think you'll find out that you know what? Lo and behold, it's not that great. Um, I actually looked at one on Facebook. I actually was on Instagram. It was a pair of shoes, a brand of shoes that I that I like to wear. They're very comfortable and I like to think they're somewhat stylish. So this, uh, this scam little post was offering them at 80% off. And I'm like, come on, man. And so I go to I go to the web address. And of course they were not 80% off. So I actually reported it. And we'll tell you how to do that here in a minute. Um, another way to protect yourself. Pay by credit card. That way you can dispute charges and you can limit the damage if the Tranzaction was actually fraudulent.

Mike Zaino:
Um, you can buy gift cards online directly from the issuing business instead of buying them from a retail rack where those cards can actually be tampered with. And when you receive a gift card as a present, register it if that's an option, and utilize it sooner rather than later. I know a lot of times gift cards just end up in that drawer of procrastination, but by using them sooner rather than later, you're giving any fraudsters less time to, you know, go ahead and take the money that was placed on that card. Um, avoid conducting shopping while you are connected to public Wi-Fi. In other words, if you're doing online shopping, make sure that you are doing it from your home network or at least using what is known as a VPN or virtual private network to protect your information there. And then, you know, like Matt said, those pushy charities that can be an indicator that the cause is bogus because legitimate charities will accept your donations, uh, as little or as much as you want to give. And they'll do so on your own timeline. So anytime you're prompted to make a purchase or you're prompted to make a donation, or you're asked to do a wire transfer or asked to provide gift cards, guess what, folks? It's a scam.

Producer:
Plain and simple. It is a scam. And so, you know, folks, if you find yourself a victim of a holiday scam, or if you just encounter one, you don't become a victim. But you're saying, hey, I need to get the word out about this. I want to warn, uh, the authorities so that other people can really avoid this to, um, file a complaint with the Federal Trade Commission. They are all over this this time of the year, and you can contact them at (877) 382-4357. Once again, that's (877) 382-4357 to. Get in touch with the Federal Trade Commission. You can also go online. Ftc.gov is the website and you can report it there. You can also report it to your state attorney general's office and the consumer protection office there in your state. Really super important to do that. And hopefully then that stops these fraudsters from making other people victims. Yeah.

Mike Zaino:
If you just ignore it and you don't do anything about it, you're you're asking these fraudsters to, you know, do this to your grandma. Um, you're asking them to do it to your best friend's mom, right. And the only way we can stop them is, is by actually reporting it. And let these investigative institutions do the investigating and put these people in jail.

Producer:
It's this week in history.

Producer:
All right, Mike, so December 23rd, as we start off this week in history, a historic moment in 1975 when President Gerald Ford time signed the Metric Conversion Act. This is one that was quickly undone a few years later, but it declared that the metric system was the preferred system of weights and measures for the US Congress. The metric board was actually abolished by President Reagan in 1982, but it still is the metric system used today by scientists and academics across the US. This is why it's very, uh, confusing for me when I drove in Canada once. Yeah, because everything in, you know, kilometers and meters and all that stuff. And I'm just like, wait, hold on. What the speed limit is what exactly?

Mike Zaino:
And I almost wish now, now, Reagan was my commander in chief. I love President Ronald Reagan. I'm never going to say anything bad about the man. Um, but I really wish he'd not changed it and let us keep the metric system because of the fact that the rest of the entire world is on the metric system. And just like you said, anytime you travel abroad, it is definitely a much more difficult conversion.

Producer:
Yeah, it really, really is. Talk about this big moment, Mike. For us, that happened on December 24th.

Mike Zaino:
In.

Mike Zaino:
1968, folks, Apollo eight became the very first manned space exploration to orbit the moon. That crew orbited the moon not once, not twice, but ten times without landing, and then departed safely back to Earth. And those three astronauts, Frank Borman, James Lovell and William Anders, were the first humans to witness and photograph the far side of the moon, not the dark side of the moon. For you Pink Floyd lovers, uh, and an Earthrise.

Mike Zaino:
Yeah, absolutely.

Producer:
And if you've ever seen those photos, they're very famous and just really, really beautiful as well. And of course, December 25th here, aside from being Christmas Day, of course, uh, December 25th also had some big happenings in sports. In 1971, it was the longest game in NFL history that took place in a matchup between the Miami Dolphins and Kansas City Chiefs. The Dolphins went on to defeat the Chiefs 27 to 24, in double overtime. That contest lasted on the clock 82 minutes and 40s. So boy, that was a long one. And then in music on this date in 1955, Bing Crosby's White Christmas entered the Billboard chart for the 11th time. It sold 100 million copies around the world, with 50 million in singles sales as well. So a lot of big things, of course, happened. And as I mentioned, Mike, it is Christmas coming up here in just a couple of days. Hard to believe, but I hope that you have just the merriest and brightest, sir. Same goes for all of our listeners and really appreciate you. We'll talk at you again next time.

Mike Zaino:
That's right folks, and if anything we shared on this week's show makes sense to you at all. Or you could use some help with one of those free and no obligation retirement consultations. Please don't hesitate to pick up the phone. Give me a call if we want to start off 2024, uh, with a bang and in a good way, as in a plan for the rest of your life when it comes to retirement. Then let's go ahead and get a jump start on on booking that appointment, because I do book up very, very quickly. Again, thank you for listening to the show. Without you guys, we don't exist. Matt, thank you for your production value and your co-hosting. Uh, just I couldn't do the show without you. So whatever you're doing this holiday season, I hope you enjoy it to the fullest extent. Friends, family and food. 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 MoneyMattersWithMike.com or pick up the phone and call 704 560 1573. That's 704 560 1573 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.

Producer:
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Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty and how it could all affect your future in retirement? Then tuned in to Money Matters with Mike to learn how you can protect and grow your hard earned money. Money matters with Mike every Saturday at 9 a.m. right here on FM 100.1 and Am 1340. Schedule a free, no obligation consultation now at MoneyMattersWithMike.com.

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