Spring Cleaning for Your Finances: Essential Tips to Improve Your Retirement

3.22.24: Audio automatically transcribed by Sonix

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

Producer:
Fixed-indexed annuities can help protect your retirement savings against market ups and downs. Nationwide's Peak 10 can help protect against market risk and provide guaranteed income for life. Peak 10 also has an optional rider that offers an immediate 20% bonus based on your principal applied to your income benefit base. Call us now at (704) 560-1573. That's (704) 560-1573. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company Nationwide Peak 10 is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

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 South Carolina in Fort Mill specifically. Happy Saturday people. 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 in. On today's show, we're going to talk about doing some spring cleaning, but this time for your finances, and we'll point out ways that we can help you get organized so that you can thrive in retirement. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matt, how you doing today, brother?

Producer:
I am doing great. Mike. I hope you are as well and ready to clean some.

Mike Zaino:
I yeah, I'm not exactly ready to clean, but I do like, uh, staying on top of my finances so that I keep them clean and pristine 365 days a year.

Producer:
There you go. It's more fun than doing the windows and taking out the trash, you know? Yeah.

Mike Zaino:
Or doing the garage, which is, uh, something that I have never been a fan of, but it is an unnecessary evil because it always amazes me how much stuff we just accumulate and stick it into a corner of a garage, never to be seen or heard from again until the the purging event happens, and then it all gets carried out to the to the, you know, street to be picked up on uh, on trash day.

Producer:
Right. You're like, where did all this come from? And then the getting rid of it is not the easy part. That's the heavy labor of the whole thing. But, you know, it'll be easier talking about spring cleaning for your finances than at least physically, you know, the doing all that physical work there. So we've got a lot of great stuff to talk about as far as that goes. Uh, actually seven specific things that our listeners can do today to make things better for their financial picture, get things cleaned up, and make sure that their future is set up to be better than what it would otherwise be. Right. So we got that coming up. Uh, we also have, um, a little bit of a renaissance for pensions, at least of the personal kind. Um, and, you know, I mean, workplace pensions are those trying to make a comeback. We've got maybe at least one data point that shows that, uh, and another data point that really shows people want them to make a comeback. Anyway, uh, we'll discuss that coming up in just a bit and also talk about how you can build your own personal pension if you, uh, which odds are you do work in a place where you don't get offered one, uh, by your company? Um, safeguarding social security as well.

Producer:
Uh, and then we'll talk about how Mike, of course, can help you live the future of your dreams out there listening to us and speaking of listening to us, thank you for doing that. Either on the air, on WRI or listening to us via the podcast. Uh, if you're if you're, like, listening to us on the radio and you say, wait, they have a podcast. Yeah. We do. Uh, you can find all episodes of Money Matters with Mike, each and every one of them going back almost two years now online, anywhere you listen to podcasts, or you can go to Money Matters with Mike.com and find all the episodes there as well. So, you know, a lot of places to get us. Uh, you can also find us on Facebook, on YouTube, uh, basically anywhere online that you go, uh, if you search for Money Matters with Mike, you will find us. And, uh, as we like to say around here, Mike, if you're not finding us, you're not looking hard enough.

Mike Zaino:
Not not not even close to looking hard enough. Because, you know, our whole goal is just to be able to meet with our listeners we love. Meeting with you folks and discussing exactly how we can help you reach your financial goals, and whether that's with, you know, instituting a financial plan, tweaking your own financial plan, whether it's talking about risk management, whether it's talking about estate planning and all the things, right, all of the things that go into building a sound retirement plan. Guess what? We can talk about it. All right. Building sound financial plans for our listeners is what we do. So just pick up a phone. Give me a call (704) 560-1573 or visit us on the web at Money Matters with Mike comm.

Producer:
Couldn't have said that one better myself there, Mike. All right, let's get started with our discussions today before we do a little spring cleaning. Let's have a little springtime inspiration here. Uh, as we get our quote of the week.

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

Producer:
And this week's quote comes from Mahatma Gandhi. Uh, talk about some wisdom. Uh, for us, as we as we start off these discussions, uh, and it's very appropriate here. One time Mahatma Gandhi said this. The future depends on what you do today. Boy, it's very, very true.

Mike Zaino:
That is especially true in the context of financial planning, folks. And his quote underscores the importance of making wise decisions and taking proactive steps today in order to secure a more stable and prosperous financial future.

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

Mike Zaino:
You know, take savings and investing. For example. If you start saving money and investing money wisely today, you're likely to have a much more financially secure future and setting aside a portion of your income for retirement savings or for investments. Guess what? It's going to compound over time, which that compounding effect will help provide a significant nest egg for your future needs. While contrast that delaying or neglecting saving and investing today can mean less financial security and stability in the future. Another thing you're spending habits today greatly impact your financial future. And so by creating and sticking to a spending plan and the key word there being plan, you can ensure that you're allocating your resources efficiently and not overspending. For example, if you consistently overspend on unnecessary items today, you might struggle with debt and financial stress in the future. But if you prioritize budgeting and you have mindful spending, well, then you can build a much more solid financial foundation rather for, you know, the future years to come. Another thing to think about is debt. Uh, how you manage debt today influences your financial freedom down the road and taking steps to pay off high interest debt and avoiding accumulating more debt. Unless, of course, it's what I call good debt, um, can lead to greater financial flexibility down the road. And just the opposite, ignoring the debt or continually accruing more debt. Um, well, that's just going to lead to a lot more financial strain. It's going to lead to limited opportunities in the future, more financial stress about how you're going to pay stuff off.

Mike Zaino:
Um, and it's just a bad place to be in altogether. Well, then what about career and education choices? So investing in your education as well as your career development today will lead to most likely higher earning potential and better job opportunities in the future. And pursuing additional education or acquiring new skills can also open new doors to higher paying jobs or advancement within your field, while neglecting opportunities for growth and development may limit your earning potential as well as your career prospects in the future. And then please, please, please do not forget about insurance and risk management planning for the unexpected. Those unexpected events and actually mitigating risks today can protect your financial well-being in the future. So for an example, just purchasing adequate insurance coverage, whether it's health insurance, whether it's life insurance, whether it's disability insurance, those things, God forbid, in the event of the unexpected, can provide financial security for both you as well as your loved ones in the event of those emergencies or unforeseen circumstances. So, you know, in summary, Gandhi's quote serves as a very poignant reminder that the actions we take today have profound implications for our future, especially in terms of financial planning. And so by making more informed decisions, by prioritizing savings, by managing your debt responsibly, by investing wisely, and then planning for the contingencies, we can lay the groundwork for a much more secure and prosperous financial future. Matt boy.

Producer:
Great stuff there, Mike. And, you know, it's, um, an important discussion to have because I think we as human beings kind of get caught up in the moment a lot of times. And we, uh, you know, just think about the here and now and not necessarily what our actions that we take today, uh, what impact those might have on the future. And, um, you know, one of the, one of the things I love that you mentioned there, too, uh, was the, the debt conversation managing that effectively. And, and I have a feeling some of our listeners might think, okay, well, what's the difference, then, between, say, a bad debt and and some kind of good debt? Could you expand on on that part of it for us? Yeah.

Mike Zaino:
So so you know good debt is, is debt that you're actually purchasing what are called income producing assets. So a good debt might be, you know, getting a second residence or rental property and then renting it out. And so what ends up happening is your tenants are actually paying off the mortgage for you. And in the meantime, you're getting the capital appreciation from that property. And hopefully you're actually cash flowing, which means you're you're your rent is actually more than. The mortgage itself. So of course you're going to have to hold some money back right there for any contingencies, right? What happens if the appliances go bad or need to be replaced? You're going to have to carry the proper insurances on the house. But you know, that's an example of good debt. I love good debt because all it does is enhance somebody's personal balance sheet. Whereas bad debt, revolving, uh, debt, high interest credit card debt, personal loan debt, auto loan debt, you know, all of that stuff is bad debt because what you're doing is taking on the debt to finance a depreciating asset, something that is going to be worth less money as time goes on. So those are the big differences, right? You know, good debt is debt where you're purchasing assets and bad debt is debt where you're purchasing liabilities.

Producer:
There you go. That makes complete sense. And, uh, folks, if you have too many liabilities and not enough assets, maybe you want to speak with somebody like a mr. Mike Zaino, and you can do that by calling (704) 560-1573 anywhere you hear the sound of my voice right now, you can give him a call at (704) 560-1573. Or you go online to Money Matters with Mike comm. And, uh, he can come up with a plan that's based on your personal needs and your situation and and all of that to really customize it for you. It's not one size fits all at all. So just just keep that in mind as you listen to the show and as you reach out to Mike, which we definitely hope that you do. Um, okay, so on to our spring cleaning now. And we're not talking about getting out the broom and dustpan or anything like that. We're talking about, uh, putting your, uh, your listening ears on with your thinking cap and, uh, just, uh, paying attention as we go through seven moves to make now with your money so that you can feel better about your financial future. These are all things that you can do right now. And actually, I think number one is my favorite because by the time we get into March. People have forgotten that they even made New Year's resolutions a few months back. But it's revisiting your financial New Year's resolutions. And those are those are very common.

Mike Zaino:
They are me and you. I think it's your favorite because so many people have forgotten they take the gym for an example, you know, in January that you can't even get on a piece of equipment or have any floor space to do any kind of exercises, because everybody has made the New Year's resolution to do what? Get back in shape, lose some weight, get that bikini body or, you know, whatever they want to do, right? And then by March, by the end of March, you can find any floor space you want, get on any machine that you want, because setting and sticking to a workout regime is hard. It takes discipline. Well, revisiting your New Year's resolutions, your financial New Year's resolutions in the spring provides the perfect opportunity to kind of restart and make progress towards obtaining your financial goals. And if you have not made much progress, guess what, folks? It's still early in the year. Use the spring to hit the reset button and regain momentum, taking advantage of our complimentary consultations. Guess what? That's a great place to start so that we can help enable you to reach those goals that you set forth. Only 8%, which is astoundingly low. Only 8% of people achieve their financial resolutions each and every year, according to a survey by Fidelity Investments. And we want to be able to help you achieve those goals this year. Make 2024 the year of more.

Producer:
Yeah, that's absolutely right. And change those statistics right. Make that number go up of people who, you know, achieve those financial resolutions each and every year. Make 2024 the best year for you financially. And Mike can help you do that. Once again, Money Matters with Mike. Comm is the website, uh, number two here in these seven, uh, spring cleaning steps for your finances, clean out your financial junk drawer. Uh, you know, I've got I've got a junk drawer. I think there is, uh, an old rusty pair of scissors and, uh, some paper clips that I've never used and some old pens that are probably dried up and that kind of thing. Uh, this we're talking about, of course, your financial junk drawer, Mike. What might be in there?

Mike Zaino:
And this is one of my favorites in here, too. Everybody has what I call that drawer of procrastination, right? They just intend to do stuff, and they stick it in the drawer, and they shut the drawer, and then they just forget about it. Well, spring is the perfect time to clean out your financial junk drawer where you stash all of your paperwork, all of your statements that guess what? Need attention. Um, you know, the one that drawer in your office or your kitchen that ends up holding all of the documents that you're going to take care of someday, okay. And sorting through the neglected paperwork can help ease your financial stress. So please take the opportunity. If you don't need the paperwork, don't just throw it away, shred the documents, or burn the documents. Especially, you know, the ones that are going to have any pertinent, uh, account information or personal information on them. You want to make sure that nobody could piece those together. You want to file all of your important documents, and you want to address all of the outstanding financial tasks. And if you have any questions about any document that you've received, don't hesitate to give us a call.

Mike Zaino:
All right. We love helping our listeners get their finances in order. And then what's coming up here in just a few weeks? Well that's tax time okay. So don't forget to organize any tax related documents that you've received since the beginning of the year. And then if you have a, uh, any inkling to set up a folder. Right. I've just set up, put all your documents in one area for your 2024 tax documents, including receipts, any official forms like your w-2s or your 1099. Okay. Consider consulting a tax professional as well to ensure that you are withholding the amount, uh, the correct amount from your paycheck. If you find that you are getting a refund every single year, then guess what, folks? All you're doing is allowing the government alone. Basically, you're providing the government, Uncle Sam, a loan, and then they're just returning the money that you gave them, and you didn't charge them any interest on that. So you want to get the the taxes to where they're as close to zero as possible. You're not owing anything, but you're not getting a refund either.

Producer:
Yeah. It's you know, it kind of feels good to see that deposit come once a year if you do get that, uh, that refund. But, you know, it's not, uh, necessarily the ideal thing because then you don't have that money spread out throughout the year that would make your paycheck larger each and every time you get it. So it's, uh, you know, a little bit of, uh, just taking some, some time to do your due diligence to make. Making sure that those withholdings are at the right levels for you. Um, and that's especially true, I think, Mike, for people who might have more than one source of income, especially if you know, you've got like a full time job and a part time job, and that part time job maybe throws you into a different tax bracket, those kinds of things super important to to take care of.

Mike Zaino:
Yeah, I would much rather have that money in my account earning me interest than in Uncle Sam's account. Trust me, he as much as he has his greedy hands out saying give me, give me, give me. He doesn't need our money. He can just print more.

Producer:
That's right. And and he has shown a willingness to do just exactly that thing. Uh, but yeah. So we can't do that. You know, you could try to print your own money. It may be in your basement or something, but I guarantee you, uh, the the police are not going to like that too. Well, you might.

Mike Zaino:
End up in Leavenworth.

Producer:
Exactly. Number three here on our spring cleaning checklist for your finances is to pay yourself first by maximizing your retirement contributions. A lot of this is goes back to what we were just talking about with your your paycheck, you know, making sure that you're withholdings, your tax withholdings are set at the right level while also make sure that those recurring contributions to your retirement plan through your workplace are set at levels that they need to be and are maximized for you and your particular situation. And also if you have individual accounts that you're putting enough money in those as well.

Mike Zaino:
Yeah. So I mean, this is actually my favorite one, paying yourself first. That's where the the foundation, the principle cornerstone, if you will, of of any financial security starts. And it's with paying yourself first. And so a lot of people don't know that they can open up an IRA, uh, if they have earned income. So if you don't know that, if that's a news flash to you, guess what? You can contribute to an IRA by April 15th of this year to maximize your 2023 savings. And so the contribution limit back in 23 was $6,500 if you're under 50 and $7,500 if you are 50 or older. And both of those limits have actually increased by 500 for this year 2024, which allows you to save even more this year. So start early and contribute to your IRA for 2024, so that you can take advantage of the compounding effect and allow your savings to grow over time. So that's number one thing. If you are working at a place, uh, that does offer you a 401 K or a 403 B, or if you're a federal employee, a thrift savings plan. Okay. Challenge yourself to contribute more to that workplace employer sponsored plan, which has much higher contribution limits of $23,000 this year 2024. So increasing your contributions gradually can help bring you closer to financial independence. And then finally, if you're not somebody who has access to a 401 K and you don't really feel comfortable with an IRA, at least save, you know, 15% of your paycheck and stick it into an emergency fund so that you can address any contingencies that might, you know, pop up. Okay. But you if you have one of those plans, you should always at a minimum put match what the the company is willing to match. So if they're doing 5%, you need to put in 5%. If they're doing 6 or 7%, you need to do 6 or 7% y so that you maximize the generosity and the free money. Over time, those opportunities can help, uh, increase your overall worth down the road.

Producer:
Yeah, absolutely. Don't turn down free money. I mean, and that that's the bottom line there. And, uh, you know, that money is just going to grow and the the interest on top of interest that's going to compound over time. And you're just going to have, uh, you know, a better time in your retirement because your nest egg is going to be larger when you get there. And, you know, a lot of people might, might find that, that managing 401 KS and IRAs is kind of overwhelming or frustrating to them. But that's why we want you, our listeners, to schedule a consultation with Mike. And and you can actually take a look at those types of accounts. Right?

Mike Zaino:
No, 100%. You can bring your your investment options within your plans, uh, to me. And we can strategize. We can look at things which make the most sense for you based on your time horizon, based on your appetite for risk, and based on what you want your retirement to look like. That 400 and 1KX ray, if you will, is a complete x ray to help review and let you make the most of those valuable contributions that you're making inevitably, hopefully, for your retirement.

Producer:
Absolutely right. Just give Mike a call at (704) 560-1573 or go to Money Matters with Mike calm. All right. Number four on our spring cleaning checklist here for your finances. Make sure your beneficiaries are named and up to date. Boy that's important and oftentimes get overlooked. You know, when when big life changes happen.

Mike Zaino:
I cannot begin to count the number of single women or single men that that come to me for for it, you know, some some guidance, some clarity. And when we're reviewing. Their beneficiaries. They still have their X listed as the person who gets the keys to the kingdom. Can you imagine if you are in a divorced situation, you pass away and now the ex gets your money. I mean, you might revisit from the grave, right? Naming beneficiaries is a crucial step in retirement planning as well as life insurance policies. So the beneficiaries are the individuals who are going to inherit your assets should you pass away. And so, you know, reviewing your current beneficiaries ensures that they align with your current values. So again, if you have that former spouse still named as a beneficiary, you're probably going to want to make some updates and some changes. And important thing to note, even if you have a will that that specifies you know, who gets what. If the beneficiary forms on any of your documents state differently in a court of law, the beneficiary forms supersedes the will.

Producer:
Yeah. I mean, so you gotta make sure that those are up to date as well. Don't think that just changing the will is going to cover all your bases all at once, because as you just pointed out there, Mike. No, not the case. Not, uh, definitely want to make sure those are up to date. Well, number five on our spring cleaning financial checklist. Dust off your estate plan. Or if you don't have one, establish an estate plan for the very first time.

Mike Zaino:
Yes. So, you know, speaking of beneficiaries. All right, uh, it is recommended to review your estate plan each and every single year or whenever a major life event occurs, whether it's a job change, whether it's a marriage, whether it's a divorce, or whether it's the birth of a child. Um, I have shared before on the show back in October of 2020, I actually went into end stage renal failure, and my doctors told me that I would need to have a kidney transplant. And that was a big shock. And, uh, I actually had 17 people that were willing to fill out an application, submit the application. They were willing to give me a kidney, of course, my family. Right. They were going to do it. Um, but I had friends. I even had acquaintances that said, hey, if I'm a match, you can have one of my kidneys completely humbled me. They, uh, started testing my wife, and they never had to test anyone else. So, you know, you want to talk about divine intervention? The woman that I chose on a dance floor back in, you know, 1991, um, 33.5 years later, ended up being, uh, we're still together. Uh, ended up being my my perfect match, um, not only in life, but for a kidney.

Mike Zaino:
And so before we went under the knife, she was on one stainless steel metal slab and I was on the other, and we were both getting splayed open, and they were going to take a kidney out of her and put it into me. Guess what? We made sure that we had in a row all of our ducks, all of our eyes were dotted, all of our T's were crossed. And so if one or the other of us didn't wake up, which we weren't guaranteed right then we knew beyond a shadow of a doubt that our kids would be taken care of the survivor and the kids as well. So estate planning is not a one time task. It does require regular review, regular updates just to ensure that it aligns with your current circumstances as well as your current wishes. So take the time to consider if any changes need to be made to your estate plan, including updating those beneficiaries or if you don't have one. Guess what, folks? We can help you, uh, and get you in contact with attorneys that specialize in that kind of stuff. And we don't charge you anything for the connection. And that will ensure that your assets are distributed according to your current intentions.

Producer:
Yeah. So important. And, you know, it doesn't have to be like a, you know, a big life change, like needing a kidney transplant, like the situation with you, which obviously is, uh, you know, wonderful that your wife was the one who got to to do that. And they didn't have to even test anybody else. I just love that so much.

Mike Zaino:
My brothers were sweating. Let's just put it that way. Right.

Producer:
Right there. Yeah. There you go. There, there you go. There you go. Hold on. Can I make it with just one? Um, but the, uh, you know, the, the other part of it is doesn't have to be as anything that big. It can be just, you know, any kind of life change or just the passage of time. And your circumstances may have changed in several different ways over that amount of time, or your your wishes might have changed over that amount of time. You might have new kids or grandkids over that amount. So, you know, get all of those ducks in a row, um, on a, on a periodical basis just because life happens.

Mike Zaino:
That's one thing guaranteed to pass as time, whether you want it to or not.

Producer:
Exactly, exactly. You know, that's the time. And us eventually. So that's the two of the reasons you need to have that estate plan, uh, in in place here. Um, number six, in our checklist for spring cleaning for your finances, have your entire portfolio reviewed by a licensed professional. We talk about this a lot because, you know, obviously it's what you do on a daily basis, Mike. But also it's important because, I mean, there's just this tiny little small sliver of the population that actually does this. And it's really something that is very, very needed, uh, because of all the different things that we talk about. I mean, you know, we talked about earlier was 8% according to one survey, 8% of people, uh, are only that amount actually achieve their financial goals as they go into the new year. And that's just kind of sad, but it makes it a lot easier if you have that professional help.

Mike Zaino:
Yeah. And even if you have an advisor, right, get a second opinion. Somebody that's on the other side of town that that is maybe specializes in something a little bit different so that you're at least getting two viewpoints. Right. And and I know when people come to me and they have other advisors, then if they're in great shape, I tell them, look, you're in great shape. Keep doing what you're doing, you know, or I'm not trying to take anybody away from their advisor. Uh, if I see any room for improvement, I'll say, hey, you may want to discuss with your advisor doing this, this or this and see what they say, and then let me know. Spring is a great time for that checkup to review your investment portfolio and ensure that your asset allocation aligns with both your financial goals, your risk tolerance, as well as your time horizon. And speaking of time, over time, the mix of investments in your portfolio can drift, so it is important to check to see that it still reflects your desired allocation. So for an example, if I'm young and I'm 100% in equities by the time I'm 80, I probably don't want to be 100% in equities. Why? I'm probably going to need that money. Uh, and I don't want to have it exposed to as much volatility. So consider taking advantage of a complimentary consultation with us so that we can help review your portfolio, make any necessary adjustments, and more importantly, answer all of your questions. We can help identify opportunities for you to save money, to reduce fees, as well as to optimize your overall strategy and regular portfolio. Reviews can help you stay on track towards your financial objectives and make informed decisions about your investment portfolio and your overall financial well-being, as well as your retirement.

Producer:
Absolutely. And the place to go is money matters with Mic.com. That's money matters with Mic.com. Or you can actually give Mike a call 704 5601573704560 1573 is that number. And and I'll tell you, Mike, this last, uh, tip is kind of the the most fun made me laugh. Yeah. Of all of our tips because, you know, if if you do, this is one of those things that if you do it far enough in advance, boy, you can save a lot of money. And we're talking about planning your 2025 vacation now so that you can save a lot of money. Um, you know, because if you're trying to plan for spring break, as you said before we went on the air, Mike, they're trying to plan for spring break this year. You probably missed out.

Mike Zaino:
You probably paying a lot more money this year than you would have had you planned this years last year. So let's look forward to next year, because booking your 2025 vacation in 2024 can lead to significant cost savings, and it can provide a much wider range of options for both flights and accommodations. If you've always heard the early bird gets the worm, this is one of those things where planning your vacation a year in advance allows you to take advantage of early booking discounts. Uh, promotions and studies have proven that the anticipation of a vacation contributes significantly to the overall enjoyment, so putting next year's vacation on the calendar today can enhance your psychological value for the next 365 days. My mother has been, uh. She was invited to go on a cruise here back in January for March, and she thought it was this March. And then when she found out it was March of 2025, at first she was a little disappointed. But guess what? Now, every time I talk to her, she's talking about how excited she is to go on that, that cruise in 365 days, basically. So another really poignant point is to check your expiration date of your passport if you are going to be doing international travel because passports, the renewals can take, you know, anywhere from six weeks to six months, depending on how busy the US passport office is doing. So if you're going to be doing an international vacation and you want to avoid. Any last minute complications. Make sure that you review that expiration date on your passport today.

Producer:
Yeah I would not be fun to, you know, find out at the last minute that your passports expired. Actually mine expires next year. Mentioned mentioning that. So I got at some point between now and the middle of 2025. Have to get on that myself and get that renewal in place here. Um, and you know, bottom line is, you know, you don't you want to avoid as much stress as possible. And if you do, make sure that all those those t's are crossed, the I's are dotted as far ahead of time in advance, especially for a thing like traveling, especially internationally. Um, that's really going to make the trip itself that much more enjoyable.

Mike Zaino:
It will. You need to be prepared. You need to have a solid plan. And that's why people actually pick up the phone and they call (704) 560-1573. That's why people reach out on Money Matters with Mike comm on the contact Us page, because they want to take advantage of the complimentary and no obligation consultation. Folks, what you hear on this radio show is what you get in person. I'm about as real as real gets. I am not some kind of stuffy financial guru. I'm down to earth. I'll probably be in a, in a in a pair of jeans and in a in a golf shirt when we talk. Right. I, I, I wore a noose around my neck for 16 years. And the only time I wear them now or at funerals or if I wear a bow tie. So, you know, don't spend your retirement watching the ups and downs of the market. Many people like working with a professional who can look out for their best financial interests. In many cases, consulting with a professional will actually save you money in the long term, and it can help you find the peace of mind when you're thinking about retirement, knowing that you have to have a plan in order to avoid many of those risks that face retirees. So whether you are looking to optimize your investment portfolio, whether you're looking to maximize your Social Security benefits, or whether you're looking to create a very comprehensive retirement income plan, our team is ready to assist you every single step of the way. All you got to do is not put it in the drawer of procrastination. Pick up a phone and call 704 5601573 or visit us at Money Matters with Mike comm. And you too can book your consultation now. We absolutely look forward to helping you achieve your retirement dreams. And so we want to do everything in our power possible to help you get there.

Producer:
That's absolutely right. Help along the way is what it is all about. The guidance to get you to the place that you want to go for your retirement years. And like I said earlier, it is customized for you. Uh, and based on your particular situation, uh, when you go and give Mike a call, uh, once again, the number is (704) 560-1573 or go to Money Matters with Mike comm. All right. So teed this up a little bit earlier. And, uh, you know, it's it's funny because we were talking about this a little bit before we went on the air here, and it's, um, you know, there there are some statistics, at least one, one data point that shows, hey, could pensions be making a comeback in the workplace? And then there are a lot that are saying, well, they're still make up, just a very small sliver of the, uh, retirement benefits that are out there, especially in corporate America today. Uh, what was it? Ibm, I believe, was the company that just brought back its pension plan for employees after it was in the wilderness for a couple of decades. Decades.

Mike Zaino:
Right? Yeah.

Producer:
And I mean, you know, other big, uh, companies, Coca Cola, for example. Um, there's some other big corporations do have pension plans that are offered to employees, but most have gone the route of the defined contribution plan, the 401 K or another type plan like that. Right. But there's a there's an appetite out there. Uh, Mike, for, for uh, pension plans. And, you know, people can actually build them themselves, uh, which could come as a surprise to a lot of people. Yeah.

Mike Zaino:
So I mean, I think the, the most recent statistic was that 13.5% of Americans have access to a pension. Uh, and I'm thinking, wow, that doesn't seem like a comeback at all. To me, that means 86.5% of Americans do not have access to a company sponsored pension plan. But like you said, a lot of folks don't know that they can create their own pension, their own source of retirement income that's guaranteed for the rest of their lives, just like a normal pension would be, like Social Security would be. And they can create that additional revenue stream. As you approach your retirement years, it is essential to confront the current state of the United States retirement system and take proactive steps in order to ensure your financial future. So recent stock market gains is going to provide some optimism. Right. But the reality is that the decline of traditional pensions and misguided participation in defined contribution plans has left many retirees facing financial insecurity. But if you're taking action now and you're working with a financial professional, we can help navigate those challenges and we can create solid retirement plans for each and every single one of you that will help ensure a comfortable and worry free retirement. So I mean, that's what we all want, right? A don't worry, be happy type of retirement. I already hear the woo. Doo doo doo doo doo doo.

Speaker5:
Doo doo doo doo doo doo.

Mike Zaino:
In my mind right now. As I say don't worry. Be happy.

Producer:
Right. Exactly. It's going through my now. Now I won't be able to get it out of my head the rest of the day. Uh, but yeah. No, it's. But that is the kind of retirement that you want, right? I mean, you want to be able to do the things that you want to do in retirement, whether that is, you know, sitting on the beach with, uh, you know, a cocktail with a little umbrella in it, or if that's, you know, continuing to do some kind of work that might be, um, you know, starting your own business, reinventing yourself in retirement, or if it might be traveling all over the whatever you want to do. You know, having the tools to get there is super important. And and getting there in a sound way that makes sense, that you can wrap your mind around is so important too, because, you know, understanding the plan that's in place, I think is so important for people so that they can, you know, take ownership of that. And it's not just, oh, yeah, you know, this is something this, this, this guy might put this together for me and I don't really understand it, but I guess it's good. You know, that's to understanding and having that grasp is super, super important as well.

Mike Zaino:
It is because I mean, I want everybody to understand the why behind my recommendation. Right. And if if they need more time, if they're stuck on a point, guess what? I'll I'll be a broken record. Okay. I'll skip as many times as I need to skip and repeat the same thing over and over and over again. And when it comes to, uh, retirement, I guess, uh, comprehension of some of the most complex strategies and financial terminology, I have a way of breaking that down into plain English. Take for an example the difference between defined benefit plans, which are, you know, more commonly known as pensions and then defined contribution plans, which people know to be those things like 401 S, 403 B's, tsp s, okay. There's a big difference in them. The defined benefit plan, where the company had all of the responsibility to make sure that you had guaranteed lifetime income. Well, as we've stated, those are gone for the most part, 86.5% of you don't have one. All right. But the defined contribution plan, which companies have gone to in favor of, uh, so that they're not having to bear the brunt, they just shift all of the, the onus.

Mike Zaino:
All right. All of that responsibility on you as the employee. And so recent survey data from the National Institute on Retirement Security shows that over 80%, 80%. So four out of five respondents believe all workers should have access to a pension in order to protect their financial independence, as well as their self-reliance in retirement. And the decline of pension benefits from employers, has been perceived by more than three quarters 75% over that, um, as making the American dream more elusive, more impossible to achieve, which highlights the need for effective solutions that address this retirement crisis. Okay, over half of all Americans are financially, uh, facing it or should say facing a financially insecure retirement. And that's according to a recent report from the Senate's Health, education, Labor and Pensions Committee. And get this, folks, in 1975. So we're going back 49 years, okay. Almost 30% of the workforce had pensions. And today that number has decreased to just 13.5%. So that's a huge, huge decline. And like I said, puts all the responsibility on you as the American worker.

Producer:
Yeah. Absolutely. Right. I mean it's uh it's a big, big drop there. And so what we want to do for our listeners, Mike then, is really help equip them to build their own personal pension. Right? I mean, because right now, you know, you said 13.5% of workers, most of those probably work for some type of government agency, something like that. Those still, by and large have pensions, a few corporate. Operations, like I discussed earlier, still have pensions, but the vast majority do not. So everybody else, if you're in that, you know, 86.5% of us, uh, can actually take control and build your own pension.

Mike Zaino:
Guess what, folks? You don't need to work for the government or one of the very few companies or for the state. Or if you're a teacher, um, that, you know, any of those entities that still offer pensions in order for you to protect your assets and create guaranteed income for the rest of your life. We use an insurance tool. It's called a fixed indexed annuity that offers pre-retirees, as well as retirees, the opportunity to create their own personal pension like income stream. And these annuities often include features such as an immediate bonus, or they have a guaranteed minimum interest rate for a certain amount of years, and your principal is always 100% protected from market downturns. And these aren't your grandpa's annuities. Back in the day, annuities got a bad rap because you paid an insurance company a premium. That was your purchase price for the annuity. Then they charged you to pay you back your own money. And then when you passed away, they kept your money. And that is not how the new ones, um, actually, uh, operate. So personal pensions that are created by these fixed indexed annuities offer the potential for additional interest earnings based on the performance of a specific market index. Take the S&P 500 for an example and what that allows you to do, especially in years like we've had, you know, this year and last year, this allows you to experience stock market like benefits without the risk of stock market like volatility.

Mike Zaino:
So fixed indexed annuities provide a level of security as well as stability and it allows individuals to plan for consistent income throughout retirement. Personal pensions can serve as an extremely valuable tool for diversifying retirement income sources, which helps you reduce your reliance on Social Security or any other singular or multiple investments. And as more people seek to establish their own personal pensions and secure their own financial future, the demand for fixed indexed annuities, um, is already at record highs and is doing nothing but continually growing. In fact, it's expected to continue growing in perpetuity at this point right now. So, you know, my biggest message to you, again, schedule that no obligation consultation. It's a $1,500 value. It's provided at no cost to our listeners. And we can take a look at all of the options available that are in the marketplace and which ones might fit your specific needs, as your individual situation is going to be different from your cousins, your neighbor, your person at work, your coworker, right? It no one size fits all. So that's the biggest thing that I want you to to to remember. And that if you want to figure out a way that benefits you and your needs and your goals the best, simply get in contact with me this week so that I can help you build and navigate your financial plan. 704 5601573 or Money Matters with Mike comm.

Producer:
Those are the contact methods to use to get in touch with Mike. Of course, you can also reach out, you know, via any of the other things that we talked about at the beginning of the show. Facebook, for example. Mike is a very active there if you want to if you've got a particular question or if you want to leave a comment on one of the videos or posts that are up on the Facebook page, just search for Money Matters with Mike there as well. Um, in the last several minutes of the show here, Mike, we want to talk about Social Security and and really big issue that a lot of, you know, recipients of the program are facing today, scammers and scams out there, how to spot them and how to avoid them.

Mike Zaino:
Yeah, I mean, with the prevalence of Social Security scams targeting unsuspected individuals, it is crucial for folks to be vigilant and be informed in order to protect themselves from just flat out fraudsters, and by understanding common scam tactics and then taking proactive measures, folks can safeguard their personal information as well as pension information, but personal information and ultimately safeguard their financial security. So, you know, beware of unsolicited calls, unsolicited emails claiming to be from the Social Security Administration or the abbreviation SSA. The Social Security Administration will never contact individuals to request personal information, and they will absolutely never threaten legal action. So that's one thing. Another thing avoid sharing sensitive information like your Social Security numbers or your bank account details over the phone or through the email. Unless you're the one who's initiated the contact and you are certain of the recipients identity as well as their credentials. So if you suspect that you've fallen victim to a Social Security scam, or you're at least aware that one is going on, please be vigilant in reporting it immediately to the Social Security Office of the Inspector General, which is the OIG, by visiting ssa.gov. Okay, but seek guidance from those trusted financial professionals.

Mike Zaino:
If you're unsure about the legitimacy of a Social Security related communication or request, it is better to be cautious and verify and validate before you share any of your personal information. So I've got some peas. You guys know that I'm a a big alliteration guy. Money Matters with Mike. You know we talk about the seven P's proper prior planning, preventing pitifully poor performance. And so today we've got four more P's. And those P's are pretend problem pressure and pay. But scammers let's look at the first one. Pretend scammers pretend to be from an agency or an organization that you know in order to gain your trust. Scammers say that there is a problem. That's the second p a problem or sometimes a prize. Okay, scammers will pressure you. That's the third P to act immediately. And then scammers will also tell you to pay. That's the fourth pay P in a specific way. A lot of time it's by gift cards. Trust me folks, the Social Security Administration or any agency in the United States government will never, ever, ever ask you to pay via gift cards.

Producer:
Yeah. Not, uh, not likely to to happen there. Uh, the chances of that. Absolutely zero as a matter of fact. But I mean, you know, the scammers, they've come a long way here over the past several years from being the Nigerian prince asking to, if you send me $1,000, I'll send you 10,000, you know, or whatever. Um, but still, I mean, the the whole thing that I think is the one of the biggest red flags, maybe the more, more obvious red flag is that sense of urgency that they want to create in, in people. Right? I mean. Oh, you have to do this now or you're going to be arrested or you have to do this now, or, you know, you're going to, uh, have a lawsuit brought against you, like just making it so, so important that you send this X amount of dollars in this specific way right now. Um, you know, that's not like Social Security administration's not going to call you up and say something like that.

Mike Zaino:
They're definitely not. And unfortunately, the people who fall victim most of the time are the elderly. So if you're the daughter or son of an elderly parent, please make sure that you're making them aware of these types of things. Please make sure that you're telling them not to click on links that they don't know. You know where they're from, open up emails that they're that they just didn't, uh, ask to receive in the first place. Be vigilant and protect your parents because those are the ones. Unfortunately, like I said, that fall prey, uh, to these types of scams most often.

Producer:
Yeah, that's very true. And, uh, just watch out for, uh, our, our parents and grandparents and those who have, uh, you know, been the ones who have raised us and, uh, you know, done so much for us over the years. We gotta, we gotta do for them now. And part of that is watching out for these, uh, scammers and trying to take care of our parents, grandparents and older generations in that way, uh, by helping them avoid falling victim to these things. Um, speaking of speaking of being victims, uh, Mike, one quick thing here before we before we go, let's, uh, recap a little bit of the national debt, shall we? Because we are all victims of the national debt. I feel like these days, uh, because every time we look at this number, it gets larger and larger. Um, and this emphasizes really, I think, folks, the importance of having a plan in place. We don't just say this just to get, you know, have a laugh or to make our blood pressure go up or anything like that. Um, which tends to happen when we have this discussion, because you got to laugh to keep from crying.

Mike Zaino:
But you definitely have to laugh to keep from crying.

Producer:
It's true. But where does the national debt stand now, Mike?

Mike Zaino:
Okay, uh, as of the latest readings, we are pushing $34.6 trillion now. A few weeks ago, it was 34.2 when we started mentioning it. Then the next week it was 34.3. Then last week it was 34.4. The week two weeks ago, 34.4 last week. Like it seems to be going up by $100 billion each and every single week. Folks. And imagine if your debt load was going up by that much. How would you combat that? Right? Well, if you're the United States government, most likely they're going to have to increase taxes and or cut benefits for Who retirees as well as other Americans. So excessive government borrowing can lead to inflation, which obviously erodes the purchasing power of fixed incomes that the retirees have. So, you know, that's why it's important to come and give me a call, because during our consultations, many pre-retirees and retirees find value in discussing things like how they can combat, uh, their portion of what will be due on, uh, you know, sale that do on sale clause. Right. We'll talk about things like balancing risk and reward. We'll talk about building an income plan or fine tuning your own income plan. We'll definitely talk about, you know, if it makes sense, establishing that personal pension and then maximizing your Social Security benefits. All of these things can be talked about because you don't want to not you don't want to be in a position of not having a plan when Uncle Sam, uh, is going to send you your due on sale clause for your portion of the national debt bill.

Producer:
Yeah. And and it will come, you know, one way or the other, the time will tell exactly how, uh, all that shakes out. But one thing that we can pretty much say with 100% certainty, or as close to it as possible, is that taxes will go up and so you will be paying a portion of that debt. We all will, uh, in the future. So you want to make a plan, you want to have that plan in place. And I know the guy who can get you a plan if you are lacking one. At this point. His name is Mike Zaino, and you can reach out to him. Money Matters with Mike. Dot com is the website. Once again, that's all spelled out. It's Money Matters with Mike.com. Or you can call him at 70456. 0157370456. 01573 well Mike that is going to just about do it for our time together this time around sir. As I look at the old clock on the wall here. But I thank you for all of the insights and information that you bring to us and to the listeners, especially each and every week. And we'll do it again next time, sir.

Mike Zaino:
Yeah. I mean, it always amazes me how fast an hour goes by, right? And this week was no different than any other week. It was chock full of nuggets that if people pay attention to ingest and then digest, they're going to end up in a much, much better situation. I just want to give a huge shout out to each and every single one of our listeners who tune in live each and every single Saturday morning, as well as all of our listeners who listen at their own leisure, whether locally, regionally, nationally or globally. Uh, to Money Matters with Mike Comm on podcast. Without you guys, we don't have a show. Big thanks to Matt, uh, our producer over here. And, uh, you know, just teeing me up. Whatever you guys are doing this weekend, I hope you enjoy it to its fullest extent. And as always, make it a great day.

Producer:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with Mike comm or pick up the phone and call 704 560 1573. That's 704 5601573 not affiliated with the United States government. Mike Zaino does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information. Nationwide's Peak 10 fixed indexed annuity has arrived. P10 is designed to help provide a guaranteed lifetime income stream and offers protection against market losses. With nationwide Peak 10, you'll benefit from the flexibility to choose 1 or 2 year terms, protection for a spouse through a joint option, and an immediate 10% penalty free withdrawal. One of the attractive benefits of Peak 10 is its optional bonus income Plus rider, which includes a 20% bonus based on your principal apply to your income benefit base. Plus, this rider provides an 8% simple interest roll up for the first ten years or until the first withdrawal. Call us now at (704) 560-1573. That's 704 5601573. And discover how Peak 10 can help you plan now to retire with confidence later. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide Peak 10 is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

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