Think estate planning is only for the wealthy? Think again! This week, Mike explores why everyone entering retirement needs an estate plan to protect their assets, avoid unnecessary taxes, and make their wishes known. Learn how to navigate the process with professional tips and practical advice.

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About the show:
On the show, you’ll learn key strategies to help protect and grow your wealth and provide for lifetime guaranteed income. Mike is committed to helping retirees hold onto more of their hard-earned wealth and is a big advocate of helping his clients reduce the total taxes they’ll be required to pay during their retirement.

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1.17.25: Audio automatically transcribed by Sonix

1.17.25: 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? Happy Saturday and welcome to the show. I am Mike Zeno, coming to you from Fort Mill, South Carolina, and today we have a ton of great information. Uh, again, I wanted to extend, since we're only brand new into January. Happy New Year to each and every single one of you. If you listen to last week's show, you know that I was losing my voice. Um, I I completely lost it. And now I'm in the stage of getting it back. Okay. But on today's show, we're going to talk about why estate planning is essential for every stage of your retirement. Really important stuff. 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. Matthew, how are you today, sir?

Speaker4:
I'm doing great, Mike. You know, 2025 is well underway here now. And yeah, it's it's off to a pretty good start, a busy start, but a good start. It's like a good kind of busy, you know.

Speaker3:
Yeah, man, my phone's been ringing off the hook with people trying to get all their financial ducks in a row. That is for sure.

Speaker4:
Yeah. Absolutely. Right. Those those financial New Year's resolutions. Uh, you know, I, I feel like you're going to be much more successful with those resolutions if you are to reach out to somebody like Mike Zeno particularly and preferably Mike Zeno himself. And you can do that very easily at the website Money Matters. With Mic.com you can schedule a free consultation there at no cost, no obligation to continue on, and we'll talk more about that and kind of what that entails as the show goes along. Um, this money matters with Mic.com. That is the website. You can also, of course, call Mike (700) 456-0157 three. The number once again 704560 1573. Um, you can find us on the website as well. You can listen to all of the previous episodes via the podcast, which is available there on the website, but it's also anywhere you listen to podcasts. And I do mean anywhere, you know, Apple, Spotify, iHeart, all the biggies there. Uh, and many, many more. Uh, so subscribe like us, leave us good ratings. And we would really, really appreciate that very, very much. Um, also, the YouTube channel I wanted to mention, because we got a lot of great highlights for you on the YouTube channel, some great shorts there as well. Uh, Well highlights from the show, and don't hesitate to contact Mike with any questions because you know you're here really to help the listeners. I mean, that's what this show is all about, right?

Speaker3:
It is, it is. I mentioned on last week's show how broken our financial education system is, and that's why I do the show. Right. Just to help everybody learn a little bit more about how maybe to put themselves into a better financial situation down the road. A rising tide lifts all boats.

Speaker4:
That is absolutely right. And we will show you how you can get your tide rising coming up in just a little bit. Of course, you know, we're going to talk a lot about estate planning and why it's not just for the rich and famous, why? It's not just for those elites, it's for everybody. And we'll talk about why you need a plan. Um, and we'll tell you, you know, how many Americans actually have a will? It might be a little bit surprised there. And what would kind of motivate people to get an estate plan in place? Some surprising numbers in there and some you just have to kind of shake your head about. But we'll talk about that in due course. First, though, let's get some inspiration for our conversations this week. It's our quote of the week.

Speaker5:
And now for some financial wisdom. It's time for the quote of the week.

Speaker4:
And this week's quote attributed to Richard Cushing, who said this. Plan ahead. It wasn't raining when Noah built the ark. It's very, very true. Um, you know, he didn't wait until the until the waters were over his head. He built it ahead of time so he'd be ready.

Speaker3:
Yeah, I think, uh, and number one, I like I like the fact that we're going biblical with this this week. Right? I mean, this emphasizes the importance of preparation and foresight. And it suggests that proactive planning is crucial even when there are no immediate signs of a challenge or crisis.

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

Speaker3:
By the time the storm arrives, whether literal or metaphorical, it is often much too late to start preparing. So, in terms of planning for the future, this quote underscores the idea that, number one, anticipation is key. Like Noah, who built the ark before the flood, it is important to prepare for future possibilities or future risks, even if they seem extremely distant or unlikely in the present. Number two avoiding complacency. Waiting until the rain. Okay, a problem or crisis begins can leave you unprepared and extremely vulnerable. By acting early, it allows you for a well thought out plan rather than a rushed reactions. The difference between responding and reacting right. And then number three investing in long term security. Whether it's financial planning, saving for retirement or building an emergency fund, taking action now lays the foundation for security and peace of mind later. For example, in retirement planning, especially folks in their 20s, they might not feel urgency to save during those younger years because that rate of retirement is literally decades away. But by starting early. Again, just like Noah building the Ark, they can create a stable foundation that ensures their financial safety during all of those unforeseen storms. Whether that is a market downturn, rising cost of healthcare, outliving their savings, getting married, getting divorced, having babies like the list goes on and on and on, right? So just make sure that you are planning and investing in your long term security.

Speaker4:
Yeah, it's so important to do that and have your eyes on that prize. You know, know what the prize is, right? And set that goal for yourself and then take the steps to actually prepare for it and to, you know, prepare for whatever storms might come along the way. As we said there, you know, it wasn't raining when Noah built the ark. And so you've got to make sure that before it rains, you have a plan in place. Is it going to be building a, you know, a gigantic sailing vessel? Um, no, probably not anyway. But, uh, you know, you can take some steps to get your financial house in order so that no matter what does happen, you know, you've got a plan in place that accounts for no matter what happens. I mean, it's it's really, really crucial and, and important to have that in place because not only does it give you that you that financial security? It gives you a lot of peace of mind.

Speaker3:
It really does. Right. And you know, we mentioned or you mentioned in the in the intro that, you know, a lot of people think retirement planning and legacy planning especially is only for those wealthy elite folks, you know, just for the billionaires that have sprawling mansions. Those folks need to think again, because no matter the size of your assets, a legacy plan is essential to protect the loved ones that you have and make sure that your wishes are honored. Matt. Common misconception, again, is that it's only for the Uber rich, but in reality, it's more than money, right? It's about more than money. It's about ensuring that who you wanted to get, what gets exactly what they were supposed to. And it makes sure that each and every single one of your loved ones are cared for.

Speaker4:
And that's really, you know, where the rubber meets the road here as far as estate planning, because that is really what it's about. It's not just about the dollars and cents. It's about the people. It's about making sure that, number one, your wishes, as you said, are carried out, but also that the people you leave behind are taken care of in the way that they need to be taken care of and the way that you intend. If you, you know, go without any sort of a plan in place, particularly, you know, a will or an estate plan of, of some sort, you know, chances are that your assets are going to end up in probate, and you don't want that to happen, because I've seen it happen with some former coworkers of mine. Actually, two former coworkers in the same year had lost a loved one who died without, you know, some plan in place for what they wanted with their assets. And it ended up being big fights with family and all of that. Like it can just be an ugly situation you get yourself into.

Speaker3:
It can be extremely, extremely, you know, just debilitating for those that are placed into those situations. And another thing, and, you know, I'm not even not even sure if we're how far we're going to go into this later is simple things like a healthcare power of attorney or a medical directive, um, knowing what your wishes are, if it ever comes down to that, is is easy for your kids or your loved ones because they don't have to go back and forth and and labor over a decision. You've already told them what you want. And so, I mean, imagine making your child okay or your spouse of 50 years make the decision of whether or not to pull the plug. I mean, I don't envy anybody in that position. Okay. You can preempt that by letting them know exactly what your wishes are and having it put down on paper and notarized and filed.

Speaker4:
Yeah, it's it's so important to do that. Those, uh, you know, medical directives and all that living will. In other words, just making sure that you have your wishes carried out while you're still here and, you know, while you are not here anymore as well, making sure that you've got the estate plan in place to. To get things, you know, carried out as you wish. And, you know, people might have a. Lot of reasons they say, according to this survey that we're looking at from Caring.com about why they have not engaged in estate planning. So people who haven't engaged in estate planning as of last year's Caring.com survey say that, well, it just procrastination. 43% say it's just they've taken it as you like to say, Mike. They've taken that, um, you know, estate plan or the the plan to estate plan, I guess, or the idea of it. And they've put it in that drawer of procrastination and forgotten about it.

Speaker3:
They have. And the next thing you know, five, ten years go by or worst case scenario, you pass away and it's too late, and then you've just thrust all of your family members into the long battle with probate and the decisions that not everybody might agree with, and you've just put them into a into a situation that could have altogether been avoided. Have you just put it down on paper? Yeah.

Speaker4:
And then right behind that reason is the number two reason here. 40% say not enough assets. But this goes to this segment of the show is saying, folks, we're I'm taking you by the shoulders and I am just shaking you a little bit here. It's not just for the Uber rich. Your estate plan doesn't have to mean that you have mansions and and yachts and all this stuff. It's it's about taking care of your loved ones. That's what the bottom line is.

Speaker3:
Bottom line there, the number one coming in number three was, you know, people who just don't know how. And well, that's an easy one if you listen to this show. Guess what folks. We can help you with that. We have a team of people that can help you with putting your wishes down on paper to ensure that your loved ones never have to come to terms and grips with reality of making choices that you may or may not have wanted to have happen with your legacy. So these are things that we can definitely help you with that.

Speaker4:
That's right. And you can go to Money Matters with.com to get started. That's money matters with Mike. Schedule a free no obligation consultation there. You can also call Mike Zeno (700) 456-0157 3704560 1573. And so yeah, I mean, we're talking about why it matters for everybody here. Even modest assets like your home, your car or even sentimental items benefit from a plan. Right? You know, you've got those family heirlooms that you want to go to a certain person that because emotion comes into play when you're talking about those types of things.

Speaker3:
Exactly. Who gets the necklace? Who gets the ring, who gets the the the serving dish that has been in the family for, you know, three, 4 or 5 generations, right? Even the smallest things can be hammered out. And ultimately it's just going to prevent those family disputes. And it also here's the thing Can ensure guardianship for minor children. Now, who am I talking to? They're obviously younger listeners of our show who still have minor children. It is even more important for you guys to have this plan in place. And if you knock it out now and then review it every five or so years, you're just going to set yourself up and those that you love for a much, much, much more protected scenario for your loved ones and keep them away from the lengthy and costly probate process.

Speaker4:
Yeah, absolutely. And, you know, I mean, here's the thing too, Micah. We want to also provide on the show, not just okay, here is the here's the problem. We want to provide solutions, right. We want to explain, okay. If the problem is not enough, people have estate plans in place, um, you know, plans for the future, plans for their loved ones after they are gone. So we want to say as well, what can they do about it? Well, what are some maybe just some quick, actionable tips that you can give our listeners who might fall into that seemingly very large camp of people who have not started planning.

Speaker3:
All right. So the first thing is start. Okay. Just act, create some, get a piece of paper out and write out a simple will to outline what your basic wishes are. That's the first and foremost thing that you can do. Um, and then you may consider tools like trusts. If you have enough assets to ensure smooth asset distribution and to avoid probate. And then add in those powers of attorney in healthcare medical directives and proxies to cover unexpected situations that might arise. And again, folks, no matter, your net worth doesn't matter. Legacy planning is one of the most thoughtful gifts that you can give to your family. And I know we just finished the holiday season and a lot of gifts were given and you spend a lot of money doing that. The good news is you don't have to spend a whole lot of money creating a simple will.

Speaker4:
Yeah that's right. It can be a very, as you say, you call it simple. It is a simple process, potentially if you, um, you know, just take that initiative and do it. But starting is the big thing. You got to get started to actually do that. And you often say, you know, you haven't made a decision until you've taken action. And that really, um, you know, is, is a stark reality when you're talking about something like a will. Um, and just a little bit more, you know, about the state of, you know, estate and legacy planning in the US. Um, this Caring.com survey found that fewer than two out of three US adults have a will. And that is the lowest rate since back in 2020. The sort of big pandemic year there. Um, it's fewer than two out of three. I just, um, you know, everybody needs it needs to be 100%. Yeah.

Speaker3:
And, you know, 40% of those without a without a will say that they don't have enough assets to leave anyone, which is malarkey. Okay. Estate planning rates among young adults, those that are 18 to 34, they've actually increased by 50% since 2020. Okay. Driven by the pandemic as well as digital solutions. And then African Americans have increased estate planning by 19% since 2020. So we're looking at groups and segments of our population that are taking action and doing things, which is a notable trend when compared to the declines in other demographics. Wake up people. Get this done. It's important.

Speaker4:
That's right. And you know one thing to that, that the survey is showing that it's kind of having an impact on people's estate planning. Just thought process even is really it's inflation which has been you know, thankfully it's been coming down at a kind of a steady clip. We're not nearly where we were when it was at its highs. And, you know, a couple years back with a, you know, nine over 9% inflation rate. Um, but, you know, we're still paying those inflated prices. And so that really is having at least a mental impact on people when they say, can I even afford to to do this. How is it going to affect me?

Speaker3:
Yeah. Because, I mean, while the speed of the increase, uh, is coming down, the amount of money that we are paying is still going up, like the cost of living and goods and services is still going up. The speed at which it goes up has come down. But you know what I found really, really eye opening and made my heart kind of smile is that younger Americans are 57% more likely than older adults to feel that inflation affects their estate planning views, which just goes to show me that they have woken up because of the fact that they can't afford the things that their parents could or their grandparents could. So they're really keen and aware of the fact that they are going to have to incorporate that into their plans.

Speaker4:
Yeah, that's right. And that is that is heartening to know that at least at the very least, it's sort of opened people's eyes and helped them to pay attention. At least the younger generation pay attention to that impact that inflation has. But there are some challenges, you know, I mean, lower income Americans are less likely, as we've been talking about, to create estate plans. A 16% drop in planning rates among that group since 2020. And many, you know, really perceive estate planning as unnecessary or too expensive, which then leads to like among those groups of people who, you know, are just not interested in estate planning at this moment in time. Anyway, this Caring.com survey asked, okay, if you don't have a will, what would motivate you to get one? Um, the number one response by far in this is 43%. A medical diagnosis or a health concern would be a motivating factor.

Speaker3:
Yeah. You know, I've shared on this show before, you know, I had a plan that when I turned 50, I was going to do some really high level financial maneuver, you know, maneuvers. Right. The month before I turned 50 years old, I had a kidney transplant. Okay. And so before my wife and I were going to be splayed open because believe it or not, folks, my wife was a perfect match, okay? She donated her kidney to me, and I am alive and well because of it. But before both of us were being splayed open on those stainless steel slabs, we wanted to make sure that all of our ducks were in a row. So we got the health care powers of attorney because there was no guarantee that either of us was going to wake up. We got the will put in place, and we went to step forward and put a trust into place. So that just again underscores the importance of and what would motivate you to get one. But don't wait like me until you actually have an event, okay. Get it done beforehand.

Speaker4:
Yes, that's absolutely right. Do it now. Um, you know, while while you're thinking about it, uh, at this moment as you're listening to the show, now's a great time to start. There is no time like the present. Um, and, you know, kind of going down this list of things that would motivate people, um, in the survey, uh, the ones that came in at distant second, third, fourth, fifth and sixth, uh, death of a loved one, a family expansion, purchase of a home retirement or other age milestone or an employer benefit. If that was offered, they'd say, okay, that'd be easy to sign up for. Um, you know, it's all those kind of things, those big, um, sort of life events that happen. But then there's 23%, almost a quarter of people say that nothing would motivate them, nothing to get a will in place, just a simple will in place for their future.

Speaker3:
Matt, you can't fix stupid. All right? If I offended you by saying that I am not sorry, okay? I'm really not. You need to do this for not only you, but for the people that you care about, the people who care about you. And if calling you a name okay is out of place, I still again, I don't apologize. I'm trying to wake you up. One thing I will never do is mince words. Get it done. There is no excuse whatsoever.

Speaker4:
Yeah. That's right. I mean, if you are in that position, if that is your position on this very important issue, that nothing would motivate you to get a will in place, that you're just you're not nothing is ever going to get better for you. You're going to leave your family with and loved ones behind with nothing but a lot of heartache potentially, and a lot of frustration, wondering what's going to happen and having decisions made for them. You can make those decisions for them right now, and you know, if you need help, if you have questions with any of this surrounding sort of estate planning or the, you know, planning for your future, your family's future, especially after you're gone. Just go to Money Matters with Mike comm. That's money matters with Mike. Mike Zane will be glad to answer those questions for you and help you out however he possibly can. You can also call Mike Zeno. He actually answers his phone and if he doesn't answer, he'll call you right back as soon as he is able, because the only time he doesn't answer is if he's asleep. Uh, if he's out with his wife. Because they do, like, a date night thing. I think once a week, I believe is the is the current schedule anyway. Or if.

Speaker3:
He's in county.

Speaker4:
There you go. Or if he's in a meeting with another client or potential client. Other than that, he's going to pick up the phone and answer you answer your questions. Uh, go (700) 456-0157 three. That's the number to call 704560 1573. All right. So, Mike, you know, let's talk about in the last several minutes of the show here, just some basic steps that people need to know as far as legacy planning, because that's where it starts out, right? I mean, you got to know the basics in order to even just get started on things here.

Speaker3:
Yeah, I think you do. And I think the number one thing for most folks would be to check their beneficiaries, because as life happens to us, circumstances change. You might have gotten together with somebody and had a baby and then you got divorced. Well, if the ex is still listed as a beneficiary, um, that could be a problem for you, right? If you were to unexpectedly meet your demise. Well, look at different things. Maybe you got promoted and you need to increase, you know, life insurance because you're making more money. So all these things. Right. Ensuring that your retirement accounts, your life insurance policies, they are going to reflect your current wishes, your current situation and outdated designations can lead to unintended outcomes.

Speaker4:
That's right. And and the number two thing here like a step number two here is also very important. We talk about you know the most important thing is just kind of getting started here. Well you can in step two as we're saying here start small and start smart. What do we mean by that.

Speaker3:
Well again start number one and begin with a will. Just a simple sheet of paper. Outline what your wishes are and then gradually add in the powers of attorney, the health care, medical directives and proxies. And then if it if you have a lot of assets, consider a trust. Okay. But the will is the cornerstone of any legacy plan. So make sure that you get that done. And then number three, which I think is very important work with a financial professional who can aid and assist you getting all this done and make it as task free and rewarding for you as possible, because an experienced advisor can help you organize your assets, can help develop a very comprehensive plan, and then provide guidance for your family after you're gone.

Speaker4:
Yeah. And then you also might need to be sort of proactive about reviewing the plan as time goes on because of things like, you know, the need to check those beneficiaries that you mentioned earlier and other things that need to be maybe adjusted and changed because, hey, life happens, right?

Speaker3:
Absolutely. Marriage, divorce, birth of a child. Purchase of a home. Selling a home. Buying a second home, retiring all of these things would cause me to want to review somebody's estate plan. And the easy thing about it is that we provide complimentary consultations in retirement plan, as well as estate plan reviews at no charge. Right. All you got to do is pick up a phone and call (700) 456-0157 three and or visit our website. Money matters with Mike. Comm, and we will get you on the path to making sure that you know that all of your wishes will be taken care of in the event of an untimely demise.

Speaker4:
Yeah, and that's what you want to be is prepared ahead of time. Because going back to our quote, you know, it wasn't raining when Noah built the ark after all. Um, and so, you know, it's early in the year still, maybe you've made a financial resolution to, you know, take things to the next level by implementing a retirement plan, implementing an estate plan in 2025. Well, I know a guy who can help, and his name is Mike Zeno. And talk about, you know, sort of how the process works. Mike, when you start working with someone and you take a look at their portfolio, take a look at their assets.

Speaker3:
Yeah. I mean, some people I meet with don't even have a portfolio, right? I mean, they have no assets. And we start saying, okay, let's figure out where you are and then where you want to go. And then how do you get from where you are to where you want to go. So the first thing that we're going to do to do is basically just have a simple conversation. I'm more of a discovery call where I'll just ask you some simple questions, and you kind of get to know me and my style. And then, you know, ultimately we're going to have a sit down and we're going to discuss all of your financial goals, what your vision is for retirement. We'll obviously take a look at your current plan as well as all of your assets. And you know, if there are tweaks or suggestions that we have, we're going to make them. We're not going to require you to do them with us even. Okay. Even if you have another financial advisor, wouldn't it be great to have a second set of eyes confirming that the plan you're on is the right plan? We will also walk you through what we would do differently with our recommended plan, how we implement our strategies to make it make it much more market efficient, tax efficient and fee efficient for you. And all you got to do again is just pick up a phone and call or go to the web and, you know, type.

Speaker4:
And all you have to do is type in money matters with Mike. That's money matters with mike.com or call the number (704) 560-1573. Well Mike that is going to do it for this week's edition of the show. Time for you to get some rest and let that voice finish healing up just a bit. But, uh, but I really appreciate it. Of course, I know our listeners do as well. Each and every thing that you bring to the table every week. And we'll do it again next time. Sir.

Speaker3:
Matt, thank you for your production quality and everything you add to the show. It wouldn't be the same without you. But most importantly, we say this every week. Thank you to all of our listeners. Without you, we do not have a show. So whatever you're doing this weekend, I hope you enjoy it to its fullest extent and as always, make it a great day.

Speaker2:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit. Money matters with Mike. Com or pick up the phone and call 704560 1573. That's (704) 560-1573. 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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