Ten Steps to Take to Prepare for a Successful Retirement

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

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 people. What a great time to be alive in these United States of America. Money Matters with Mike as a show designed to arm you with information and give you plenty of meat on the bone to chew on each and every week. And today we are absolutely bringing the heat again. On today's show, we're going to teach you ten steps to get you ready for a winning retirement. And as always, I have the distinct honor and privilege of being joined by the one, the only my co-host and producer extraordinaire, Mr. Matt McClure. Matt, how are you doing today, brother?

Producer:
Hey, Mike. I'm doing very well, sir. I hope you have had a great week.

Mike Zaino:
I have had a very, very busy week at a couple speaking engagements, met with dozens of clients and put a lot of them on the path to a safe and secure retirement. It has been a very, very successful week.

Producer:
That's awesome. And we're going to do, of course, more of that here on the show today, helping the listeners do that very thing, you know, giving them some great tips as we go along here, uh, ten of them, ten steps to take to get prepared for retirement. And number ten, I would say is the most important, if I do say so myself, because it's something that only a very, very small percentage of people actually do.

Mike Zaino:
Blows me away. I'm not sure why a lot of folks don't actually take advantage. Maybe they're scared. Maybe they don't know that they can actually do number ten and without a whole lot behind them either. So we'll get to that here in a little bit.

Producer:
If you don't do number ten, then that's number two for you. Um, I don't know. It's bad, bad joke. But you know, I've got I've got a lot of those. Hey.

Mike Zaino:
I'm laughing.

Producer:
There you go. Maybe somebody else is, too. Uh, at least I got one. Uh, but anyway, no, we do have a lot of great stuff to get to, uh, here today on the show. Of course. I wanted to say, uh, as always at the beginning of this show. Thank you, thank you, thank you so much to all of the listeners joining us, whether it's here on the radio, on WRI, or if you're listening to the podcast version of the show, we really appreciate you subscribing, liking us, leaving us comments and ratings wherever you can because that really helps. The algorithm helps the show grow. Uh, same deal on YouTube. Like our YouTube channel. Subscribe to it. Uh, anytime you see our videos posted there, uh, give us a like and comment. And we would really, really appreciate that, no doubt.

Mike Zaino:
And in fact, whatever your comment is, I welcome it. If you think, uh, I can improve on some stuff, hey, I want some constructive criticism. So just go ahead and make those comments on Facebook, make the comments on YouTube. But you know, above all, I would actually love to meet with each and every one of our listeners individually and discuss how we can actually help you guys reach your retirement goals. And so, you know, my goal is to help build confidence and peace of mind in the in the retirement plans for every single one of our clients. So, you know, reach out (704) 560-1573 or visit us on the web at Money Matters with Mike com.

Producer:
Yeah, once again, Money Matters with Mike com. That is the place to go. And you can also find previous episodes of the show there as well. Sift through those and and see if there's, you know, a topic that we've talked about that piques your interest because chances are there is one we've got, you know, going on two years of shows in the bank at this point. So chances are we've talked about something that is going to have an impact on you and your your life, your situation and hopefully inspire you to make a change because you haven't made a decision until you've taken action. And we want to inspire you to actually do that here at Money Matters with Mike. Well, coming up here on the show today, we do have as, as Mike said in the very beginning, ten steps to get ready for retirement in ten years or less. So if the if the clock is ticking and it's ticking for us all, but if you hear that clock ticking a little bit louder these days, maybe, um, you've got ten steps that we want you to take advantage of to get you ready for retirement. Uh, we'll also go through a national debt update before we close out the show as well. And we've got other stuff on the docket if we get to it. But yeah, it's, um, the national debt thing. That might be all you can handle for the show. After we get through our ten steps for retirement planning for all of our listeners. But first, let's start things off as we do every week with a quote of the week.

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

Producer:
And this time around, it comes from the guy that I know, Mike, Zaino, and many other people refer to as the goat, Michael Jordan. He said this obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it. Boy, great words there from Michael Jordan.

Mike Zaino:
I mean really, really are. I mean, Air Jordan wasn't just renowned for his prowess on the basketball court, but obviously from that quote, from his wisdom and insight, especially when it comes to life in general. But, you know, in retirement you might encounter obstacles, whether they are financial, whether they're health related or personal. Right? And instead of giving up, view those challenges as opportunities to find creative solutions and continue moving forward, I think that's extremely important. Always press on toward the mark, right?

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

Mike Zaino:
But we're going to give you a bunch of, uh, bonus quotes today because, you know, uh, Matt said that I. I'm a big Michael Jordan fan. I remember him just going to town against the likes of Larry Bird and Magic Johnson, and it didn't seem to matter who was guarding them. They couldn't write. And he is arguably, and in my opinion, the greatest basketball player of all time. And I know some of you may be out there saying, well, what about LeBron James? Come on y'all. Right. All right. So a bonus quote from MJ was this one I failed over and over and over again in my life. And that is why I succeed. And so from a retirement perspective perspective, you can use that as an opportunity to embrace new challenges and endeavors and recognize the fact that failure is just a stepping stone to your success. One of my favorite, uh, Michael Jordan quotes was, you know this I can accept failure. Everyone fails at something, but I can't accept not trying. And so retirement is a time to continue pushing your boundaries, trying new things, and refusing to settle for a life of inactivity. Because as soon as you start doing that, you start dying, folks. A fourth one bonus quote is that limits, like fears, are often just an illusion. So do this folks. Break free from any preconceived notions about what retirement should look like. Instead, embrace the possibilities and do not be afraid to push beyond those perceived limitations. Okay, the fifth one. You have to expect things of yourself before you can do them.

Mike Zaino:
And that one, I think is pretty profound. Setting high expectations for yourself in retirement is great, because if you aim for an eagle and you bag a pheasant, you're not going to eat crow, okay? Whether it's pursuing a hobby, whether it's starting a new business, whether it's dedicating time to a cause that you're very passionate about, believe in your ability to achieve your goals. The sixth quote okay, the game has its ups and downs, but you can never lose focus of your individual goals, and you can't let yourself be beat because of lack of effort. Okay, retirement is going to have its challenges. But if you stay focused on your personal goals and you put in the effort time and time and time again, that effort will eventually lead to success and fulfillment. And then the last one that I want to leave you with. And it's funny because Matt alluded to what our number ten is going to be, but it's the seventh quote from Michael Jordan talent wins games, but teamwork and intelligence wins championships. So remember that retirement doesn't mean going it alone. Surround yourself with a supportive network of friends, family members, colleagues and financial professionals to achieve even greater success in this new chapter of your life. And so, by embodying all of those principles, anyone can embark on a retirement journey filled with purpose, growth and achievement. Just like the Goat himself, Michael Jordan approached his basketball career. And with that, I'll leave you with one more quote that just fits right. And that quote is just do it.

Producer:
Love that. And and you know, that's great. I mean, talk about inspirational words from someone who achieved so much in life on and off the court, you know, I mean, it really is, is just just inspirational from, you know, from someone that has done so much and really does know what he's talking about in so many things. And I love how you brought those quotes into kind of the financial world and how that applies to, you know, our listeners, because, you know, chances are people out there are listening to us, Mike, are not necessarily professional basketball players or even amateur basketball players of any, uh, of any great caliber. Anyway. Maybe maybe you are. Maybe you're fantastic, but you're not in the NBA. Um, but it can apply to you in your financial life, all of these different things. And as you said, I like that that last one as well, because teamwork does indeed make the dream work.

Mike Zaino:
Yes, sir.

Producer:
All right, well, let's get to going here on our. We've been through our seven quotes from Michael Jordan. Let's get into our ten steps to get you ready for retirement in ten years or less. You know, I mean, here's the thing that we often say, Mike on the show is that if I'm not feeling well, I go to the doctor. If I have some sort of legal issue to take care of, I'm going to call a lawyer if I want to add on to my house or if a, you know, I've got something like if my floor is caving in or whatever, I'm going to call a contractor. I'm not going to try and do these things myself. Now, if, you know, changing a light bulb, I can do, you know, changing the oil in my car, I can do. But it's, you know, if I need to put on a new engine, I'm calling a mechanic. It's like, you know, if you need, uh, some financial help, call the professionals. That's really what this boils down to. And and really, Mike Zaino is the professional that can help you with all of these steps that we are about to go through.

Mike Zaino:
Right? And just like you trust those other experts and those important situations, we believe that nothing replaces a capable financial professional and understand that planning for retirement can be an extremely daunting task. Right? But you don't have to go it alone, as we just said in the Michael Jordan quote. So if you find yourself ten years away or less from retirement today, we are going to discuss those ten steps that you should absolutely start on. Okay. To give yourself and your family the best retirement possible.

Producer:
Yeah, that's absolutely right. And number one, Mike, very important to start off with. And that is diversify for growth.

Mike Zaino:
It is I mean I'm sure our listeners have heard the saying hey you know what. Don't put all your eggs in one basket. Right okay. Well diversify education is a way to reduce investment risk by spreading the risk across different investments and different asset classes. So you want to make sure that you're arranging your portfolio that way in order to reduce the impact, um, of a decline of any one singular investment or even one singular asset class. So smart investing involves so much more than just stocks and bonds. Each and every asset class has its different risks as well as return characteristics, and diversification will absolutely help you stabilize your returns and shield you from market volatility in one single area.

Producer:
Yeah, we've seen a lot of volatility this year in um tech stocks especially, you know, a lot of big swings one way or the other. And if you want protection from that sector you want to be you know, you want to have some investments in other sectors of the economy. You also want to have protection in other vehicles that are not, uh, equity stocks, for example. I mean, we'll talk about all of that as we go through. You want to have a certain amount of of safety, of course, in your portfolio. And that is not something that is necessarily what you might be thinking of. You might say, oh, well, if stocks are risky, then bonds are going to be safe and not necessarily so much, especially the way that they've behaved here over the last couple of years. Right, Mike?

Mike Zaino:
That's absolutely crazy, right? The way I mean, they've they've gone up, they've gone down, they've gone way up. They've gone way down. And uh, you know who you like. We've, we've said time and time and time again our crystal ball is broken. Right. So all we can do is have a plan in place that is going to take into consideration your success no matter what the market is doing.

Producer:
Yeah. And that that's absolutely right. As we talked about, I think a couple of weeks ago on the show results in advance planning that really is what it boils down to is planning for no matter what happens in the future, planning for the different possibilities that could happen so that no matter what happens, you are set up for success in your retirement years. Uh, number two on the ten steps to take to prepare for retirement in ten years or less is to eliminate debt. Boy, this is a big one that people see as very, very daunting.

Mike Zaino:
Yeah. I mean, if you've got a pile or a mountain of debt that you're facing, it may seem like there is no light at the end of the tunnel. And the reason that you're feeling that way is because debt erodes your savings and it hinders your retirement savings efforts because of the way that compound interest is working against you. So do everything in your power possible to eliminate your debt, including your family, home, mortgage, and always, always, always folks, please avoid making that minimum payment. That is what the lender. Would love you to pay, because when you do that, the interest that is added to it just puts you deeper and deeper into the hole. Okay. And so by paying off your debts early would in effect, you're doing is paying yourself first and improving your overall financial well-being for the long term. And of course, when we're talking about eliminating debt, we're talking about bad debt. Okay, there is a such thing as good debt. And so I want to make sure that that our listeners understand the difference between bad debt and good debt. And if you don't understand that difference, that is an absolute reason to pick up a phone and give me a call and let me explain it to you.

Producer:
Yeah, absolutely. 704 5601573 is the number to reach. Mike. (704) 560-1573. You can also go online to Money Matters with My.com. One of those examples Mike of a of bad debt would be as you sort of alluded to there, carrying a balance on the credit card, especially the high interest credit card, which is pretty much all credit cards. Um, if you carry that balance on a high interest credit card month to month, you are just getting killed by the compounding interest. That is not a good kind of debt to have.

Mike Zaino:
Not at all.

Producer:
Yeah. So we'll of course get more into that on a future. We could do a whole show just on that. But you know, we'll we'll do that at some point in time in the future, I'm sure. Um, number three on the ten steps to take to prepare you for retirement. Maximize your retirement contributions. Do that early and often, right?

Mike Zaino:
Yeah, I love this one because it is the single biggest thing that I think each and every single one of our listeners who have an employer sponsored plan can take advantage of. Okay. And it may sound simple, but saving more money in your retirement accounts now is going to set you up for even more success inside of your golden years. Okay, to whatever extent it is possible within your budget, because not everybody is going to be able to contribute the max, but you can do your best to maximize your own individual deposit accounts, for an example. Right. Um, the IRA maximum annual contribution for 2024 is $7,000 for anybody that is 49 and under, but 50, excuse me, but, uh, $8,000 for those who are 50 and older. So they get a catch up contribution. It's an extra $1,000 that they can contribute. Okay. And additionally, if you have a workplace employer sponsored plan, things like a 401 K, a 403 B if you're a federal employee, a thrift savings plan, all of those. The annual contribution limit for 2024 is $23,000. But if you're over 50, 50 or over, you get an extra 7500. So if you can afford to do it and you're 50 years of age or older.

Mike Zaino:
The maximum you can contribute is $30,500. Now, if you do that for ten years straight, guess what, folks? You have over $300,000 before any potential company match or any market growth. So you could have well over a third to a half $1 million in your account just in that one decades time. At the very least, please be sure that you're contributing enough to take advantage of the employer match if they offer one. Um, for an example, if your employer matches contributions up to 5% and you're only matching, or you're only contributing 3%, what you're telling me is that you don't like free money and a lot of people are going, what free money? What do you mean? Well, the other 2%, if you'll just put in two more percent, they're going to give you 5% for free. And that is that match can absolutely double your investing power. So I think again, Matt, this is the single biggest thing that most of our listeners have access to and may not be really taking advantage of everything it's designed to do for them.

Producer:
Yeah. If you like free money, then have we got a deal for you? Just make sure that you are contributing the the amount to max out that employer match. Absolutely crucial that you do that and that you know it is absolutely free money there. You can also number four here on our list is maximizing your retirement income plan. Now we talked about maximizing your contributions right. That's sort of the the building up of the the nest egg that you're going to have in retirement, that sort of big pot of money. But then you also in number four want to maximize your retirement income plan because that is something that's more crucial, really because what are you going to live on? A month. That's what it boils down to.

Mike Zaino:
It does. And so for people who are thinking about how would they go about maximizing right, they need to first know where their sources of income are coming from. Right. That is crucial for, you know, proper planning. You can calculate that figure by taking every single income stream into account, including your Social Security. Right. Which means you cannot start taking Social Security until you're 62, right? Uh, unless you're disabled. But if you're able to delay, that allows you to start receiving larger contributions once you eventually do, turn them on. For an example, waiting until your, uh, 65 years of age will boost your Social Security income by about 24%, and you can absolutely max out your Social Security by waiting until age 70. So Social Security is one source of income. Another source of income is going to be your personal investments, your personal savings. So a lot of retirees perceive part of their income or, excuse me, receive part of their income by making annual or monthly withdrawals from their IRAs, from their 401 s and from other retirement type accounts. So remember, you can leave your retirement accounts untouched if your other income sources are sufficient. However, um, if they are in tax advantaged type accounts like 401 S or IRAs where you have deferred the taxation, you must take those required minimum distributions or RMDs by the time you turn 73.

Mike Zaino:
As it currently stands. That, of course, will be phased out to age 75 by the year 2033. And so a lot of folks in retirement choose to follow what is known as the 4% rule, and they never withdraw more than 4% of their retirement assets. But in actuality, an appropriate amount is going to vary depending on the individual's specific situation. If you retire in your 50s and your folks live into their 90s, all of a sudden you're planning for a 40 year retirement and you might have to take less on an annual basis versus somebody that's retiring in their 60s. And their people only live into their late 70s or early 80s. So, you know, the the 401 K's, the investments, the savings, all of those things are an additional source of income. And then, of course, annuities that help establish personal pensions or is definitely something to consider. An annuity is a contract that you purchase with a guaranteed payout during retirement, and those payout periods can last a specific number of years. But most people that we talk to are going to choose an option that provides them with a guaranteed lifetime income stream, one that they can never outlive. And then the monthly amount that you receive is going to depend on how much of an initial, uh, dump you place into that particular annuity itself.

Producer:
Yeah, and we're talking about a cash dump. They're not, uh, any other kind. Just going back to the whole number two thing that I talked about earlier. Um, if you were listening to the beginning of the show, you know what we're talking about. But if you are not sure about what your income is going to look like during your retirement years, then give us a call. Give Mike Zaino a call 7045601573704560 1573. If you're not exactly sure where that that, uh, income is going to come from in what should be your golden years.

Mike Zaino:
That's right. I can show you the absolute best personal pension options, fixed indexed annuities, everything that's currently available in order to help you maximize your retirement income. And these are great, great tools for protecting and growing your savings, while at the same time generating an income that you can never, never outlive.

Producer:
That's right. And you can actually also go to Money Matters with Mike comm to reach out. That's Money Matters with Mike all one word.com. All right. Number five on our list of the ten steps to get you ready for retirement, especially in ten years or less is plan for your retirement expenses. So we talked about income the income side of that. Right. An important way to know how much income you are going to need in retirement is to know how much you're going to need to spend, what are your expenses going to be?

Mike Zaino:
Yeah. And so, you know, everybody hates the word budget. So I prefer to use the term spending plan. So creating a detailed spending plan for retirement expenses, what that's going to do is ensure that you're adequately prepared. And so a solid budget should account. Out for all of your major monthly expenses, including your housing, your utilities, your groceries, your transportation, your insurance, and then your lifestyle is also going to impact the amount of money that you spend on a monthly basis. So your hobbies, whether you play golf, that's pretty expensive. If you're a hunter, that's pretty expensive, right? Uh, all these different things, uh, whether it's travel that you like, how often you travel, where you travel and how you travel, your eating habits are all of these things are going to affect your bottom line in a significant way. And then don't forget about that pesky silent tax that's known as inflation, because that in and of itself is going to raise those costs by an average of 3% each and every single year. And so if you want a cost cutter tip, um, I can give you one right here. You can drastically cut housing costs and save thousands on interest by paying off that mortgage when you retire, or even earlier if possible.

Producer:
Yeah, that's absolutely true. If you're able to do that great thing to do and just get that taken care of. So you're not constantly having to make that payment in retirement that, you know, if you want to travel, it just takes away from the money that you can travel on, you know, just take care of it as soon as possible if you absolutely can. Um, number six is to prepare for medical costs. This is one of those things, Mike, that I think people don't even necessarily realize exactly how much it's going to cost them in retirement, but it is just when we're looking at the average costs, it's a lot of money.

Mike Zaino:
It is a lot of money. And if you don't have a plan for covering your health care expenses in retirement, um, I think you're going to be rather shocked by some of the figures that I'm about to mention, because it's often one of the largest budget items for retirees, and it only increases as you age. So don't forget, if you retire before age 65, you can't start receiving, uh, Medicare until you're 65, right? Unless you're disabled. Okay, so that could mean that you're going to face a huge gap in health care coverage if your employer plan does not go with you into retirement. So just on a recent show, we were discussing how much, according to research, uh, people need to have saved in order just to prepare for, like you said, Matt, average health care costs in retirement. And when I was looking at these, I was going, Holy cow, man, there are a lot of people out there that are just simply are not prepared, okay? A 65 year old man who just has average premiums, average health care premiums is going to need approximately $184,000 in savings just for health care. Okay, a 65 year old woman is going to need $217,000. Now, why do you think there's that big discrepancy? Well, women live longer, so they're having to go to the doctor for a longer period of time. Couples are going to need $351,000 together. And then a couple with a particularly expensive prescription drug plan is going to need almost a half $1 million. So it is very important to note that these estimates do not include, uh, services that aren't even covered by Medicare, things like dental, things like vision or hearing. And they also do not include long term care, whether that's, you know, uh, in-home assistance, assisted living facilities or full blown nursing care. So, folks, you need to prepare for the health care costs in retirement, and you need to start now.

Producer:
Yeah, 100%. And if you want to get that spending plan as, as Mike says, underway and uh, and in effect, uh, go to Money Matters with Mike Dot com that's Money Matters with Mike.com and reach out and you were just you know you were mentioning there Mike the things that are not covered by traditional Medicare, original Medicare, they're the dental vision or hearing, even just the hearing. I mean, you know, if you need like the legit hearing aids, when you are, uh, getting a little older, the hearing starts to fail. I mean, that you're talking thousands of dollars, probably to get those if you have to pay out of pocket. And that just, you know, adds to those health care costs that come up in retirement. It's, you know, if you don't have a plan in place for it, boy, that can really, um, just put a big dent in what you want your retirement to look like.

Mike Zaino:
What did you just say, Matt? I couldn't hear you.

Producer:
Hey, I see what you did there. We're gonna. Mike's going to the, uh, the hearing aid place down the street right after we're through now, but, uh, anyway. So. Yeah, but hopefully you have a few thousand dollars there, Mike, to, uh, to pay for those, uh, number seven. I'll speak louder, just so you hear, um, review your Social Security benefits. Um, and this is an important one, too, because people might think, oh, Social Security, I, you know, it's it's a government program. So it's going to be kind of a one size fits all sort of a thing. But no, it's not. There are a lot of variables in there.

Mike Zaino:
Yeah, there are a lot of moving parts. There are over 2700 rules that govern all the different possibilities of taking Social Security and understanding how Social Security works and more importantly, when to start taking benefits is absolutely crucial. It's probably the number one question that I get, uh, in our consultations where people say, hey, Mike, based on everything that you've gone over, all of my individual situation, my finances, my health, like everything based on all of that, when do you suggest that I start drawing and, you know, so then when I can actually give some guidance and some clarity, but, you know, you can turn on Social Security as soon as you turn 62. However, waiting is going to increase your payout by roughly 8% each and every single year that you delay all the way up until you hit age 70. So a lot of people don't also realize that that Social Security uses the top 35 earning years when they calculate your annual benefit, and so therefore working an extra year or two when you're earning more income than you were in your in your teens or your 20s or even your 30s, that is going to boost your payout dramatically. And then in addition, if you are married, you need to start considering different strategies for maximizing spousal benefits. The lower earning spouse cannot receive more than half of the higher earning spouse's benefit, and so as a result, the higher earning spouse can work longer to maximize their benefit. While early retirement will not affect the lower earning spouse's benefit at all. So, you know, again, please, please, please don't underestimate the importance of Social Security and do not enter retirement without a plan for how to maximize your own Social Security plan. We anticipate some major changes coming to the Social Security program in the coming years, so it is critically important that you get in contact with me immediately to learn how to maximize your own benefit based on your own unique situation and goals.

Producer:
Yeah, that's right. And you can call 70456015737045601573 or go online to Money Matters with Mike comm. Another one. And this one kind of goes hand in hand, Mike, with uh, something we were talking about a few minutes ago with health care costs in retirement, and this is making a plan for long term care. One of the costliest things having to do with health care in retirement. Your retirement years is going to be long term care should you need it. And a lot of people are. And it ain't cheap.

Mike Zaino:
No. And the sad thing is, is like I remember from personal experience, when we had to place my grandfather into an assisted living facility, my grandmother had passed and he just wasn't, you know, he was starting with, uh, some dementia and he wasn't really doing well. And then he kept escaping from the assisted living facility, and they kept catching him, you know, several miles down the road. And they finally put him into a full blown nursing care with 24 hour lockdown. And it wasn't, uh, it wasn't cheap. Okay. Instead of doctor visits or hospital pays, long term care helps people who can no longer care for themselves. And it could involve, you know, assisted living, in-home assistance or nursing care. But it's very expensive. It can cost upwards of $100,000 on an annual basis. And fortunately, asset based long term care insurance is available, which, uh, that's a type of life insurance coverage. But the death benefit, uh, can pay for care expenses. So insurance is just one option for long term care. And then sufficient income producing assets such as retirement accounts and rental properties can also provide the necessary resources.

Mike Zaino:
But unless you're independently wealthy and have multiple millions of dollars, I think most folks are much better off. You know, with with, uh, some form of long term care type policy. Unless. They have family that is going to be willing to take care of them. Now, I weigh roughly £225 and I'm 53 years old. My wife's in great shape, you know, she's 51 years old. Um, but if I fast forward 30 years, I don't think at 81, my wife is going to be able to lift £225. I in fact, I know that she can't do that. So if you don't want your golden years to be tarnished by financial stress, then you're going to need to be prepared for all of those rising costs of health care, and especially in the long term care arena. So again, pick up a phone 704 5601573. Let's talk about some of the different options that you have and get all of those retirement related questions when it comes to health care and long term care answered.

Producer:
Yeah. And also you can go to Money Matters with Mike.com to reach out as well. Just fill out the contact form there and get in touch with Mike Zaino for that free, no obligation consultation and get your questions answered, folks. Number nine on our list of the ten steps to take to prepare for retirement, especially with ten years or less to go until you leave the workforce, is minimize your future taxes in retirement. Uh, we I think we said on a recent show, what was it we want to, you know, pave, of course, what we owe to Uncle Sam. But we don't have to leave him a tip.

Mike Zaino:
Yeah, we definitely don't want to add anything extra. I got a text message this morning from my tax planner that says, hey, you know what? All your tax documents are due by tomorrow. And I'm like, uh, kicking the gut, right? So tax efficiency is crucial in order to maximize the longevity of your retirement savings. And so we're going to talk about some different, uh, strategies that are actually common strategies that will help preserve your wealth. Instead of leaving that tip for Uncle Sam and the IRS. So number one is going to be to understand your tax bracket and knowing your tax bracket lets you make informed decisions about when, as well as how much to withdraw from each of your retirement accounts. Okay, tax bracket determines the or, I should say, tax brackets determine the percentage of your income that goes toward federal taxes. And the more income that you draw each and every single year from assets other than Roth IRAs, the more taxes that you're going to owe that.

Producer:
Yeah, that's absolutely right. I mean, you got to pay attention to that and know what tax bracket you fall in and have a plan so that you don't end up, you know, owing more in taxes than you really should. And you mention a Roth IRA there, one of the two types of tax free investments people can take advantage of. And it's because, you know, you pay with post tax dollars into the into that account in your working years. And then when you retire, the growth and the withdrawals, all of that, the principal the growth on top of it, that is all tax free. Like you don't have to worry about paying taxes on it in retirement. And that's why there are no, uh, RMDs, which we're going to talk about here in just a second.

Mike Zaino:
That's right. And, you know, I don't just talk the talk. I walk the walk 100% of my contributions to my employer sponsored plan, as well as 100% of my wife's contributions to her employer sponsored plan. Guess what? They're going, folks. They're going into the Roth 401 K for me and 403 B for her. Now, if I'm doing this, you might need to ask yourself why are you not right? Because if you think that taxes are going down in the future, I think you got another thing coming. Right? So then the last thing that we're going to talk about, uh, in this is, is to make withdrawals before your required minimum distributions are actually due. Okay. Although you can wait for RMD legislation to force you to make those withdrawals, doing so is is going to result in much higher monthly payments. And that scenario leads to potentially higher income taxes than if you had taken distributions in previous years.

Producer:
Yeah, absolutely. And also, you know, one thing to consider here as well is replacing the bonds in your portfolio, um, and other underperforming assets that are inside the portfolio with something like a fixed indexed annuity. That can also be a more tax efficient strategy for folks as well.

Mike Zaino:
It is I mean, there's no can be about it. It is a much more tax efficient strategy because establishing a personal pension and generating an income that you can never outlive. And even if you were able to convert some of your traditional money, your tax deferred money, over into Roth money by paying the taxes up until the limit, of course, we're talking about conversions. Um, that is going to help, uh, alleviate some of the tax burden down the road that you'll have. And so bond replacements will also reduce the amount of your required minimum distributions when you reach age 73. And then a lot of you may even consider moving to a tax free state. There are some states that don't have income taxes and that can absolutely benefit retirees. So considering you're considered downsizing, I should say, and moving to states like Florida, Texas, Nevada and several other states that have financial benefits for seniors.

Producer:
Yeah. And those are, you know, of course, we don't want to lose you here in the Charlotte metro area or, you know, upstate South Carolina area that we are in. We don't want to lose you. But, you know, if we do, at least we know you'll be paying no state income tax. So that would that would be a bonus, uh, for for you anyway. Not for us, because we'd miss you as a, as our listeners, but just follow us and, you know, subscribe to the podcast and you can still listen. Uh, but number ten here, this is the one that I feel like I need a drum roll sound effect or something. Uh, that we have kind of been building up to, and I. You teed this up at the very beginning of the show as kind of the most important one of all of these steps. And it truly, truly is, in my estimation, that is meet with a licensed financial professional to get the help that you need. Because as you said, Mike, don't go it alone. You don't have to. So why would you want to?

Mike Zaino:
Yeah, many people think that it costs just way too much to work with a financial professional. Um, but we can actually help save you money as we work to protect and grow your hard earned assets. And so regular consultations with a financial professional provides valuable insights and ensures that you're on track to meet your retirement goals. And it doesn't matter how much money you have, um, your money is important to you, and therefore it is important to us. And I tell people repetitively, I don't care if you have ten, you know, $10 or $10 million. Well, there's a plan for you. So do me a favor. Contact us this week, we'll get you in for a complimentary retirement and financial consultation. And doing that means no cost, no obligation to our listeners. You will only work with us if it is best for you.

Producer:
Yeah. And absolutely help you really do a deep dive as well. I mean, this I know obviously the the initial kind of conversation when people reach out for these consultations, Mike is kind of sort of getting to know you sort of a thing, kind of a discovery call, just, you know, learning a little bit about each other, the potential client, about you, you about them and all of that. But, you know, if you do go forward with that full, comprehensive consultation, it's not just to skim the surface kind of a thing. This is a this is a deep dive into your full financial situation.

Mike Zaino:
It is I mean, we're going to take an x ray. We're we're going to poke and prod and peel apart and peel down layers. And we're going to look and try to discover exactly, you know, where you are. And then couple that with where you want to go. We'll try to identify any unnecessary fees that you're paying. We'll look at your IRAs, your 401 s, any other type of of savings vehicles that you have. And you know, we can also help, obviously with Social Security maximization planning. We can help with Medicare planning. I mean, it truly is a 360 degree comprehensive consultation where we can grab pieces of the puzzle from all different directions and just bring it together into a comprehensive plan that you not only have confidence in, but that gives you peace of mind and allows you to sleep much better at night. And as a side note, if you have not heard from your financial advisor lately, please just pick up a phone, give me a call and let's have a conversation right? We can help set you on the path to the retirement that you've always envisioned for both you and your family.

Producer:
And you mentioned, you know, peace of mind there and sleeping better at night. That's something you really can't put a price on. So call Mike 7045601573704560 1573. You can also go online to Money Matters with Mike.com and schedule that no obligation consultation with Mike today. And you know Mike I said you can't put a price tag on it. But if we were going to put a price tag on the consultation, it's really about a $1,500 value provided to our listeners at absolutely no cost. I mean, when's the last time somebody offered you $1,500 worth of anything free?

Mike Zaino:
Yeah, without strings attached. But I promise there are no strings attached to this. My goal is just to see you in a much better financial situation, especially going into and through retirement.

Producer:
Yeah, 100%. And that website once again folks, Money Matters with Mike.com. Or you can call (704) 560-1573. Well, um, so Mike, I, I teed this up at the beginning as well because it's just something that we, uh, you know, have to look forward to. Um, and that is an update on the national debt. Last week we were checking in at US debt clock org. And, uh, we looked at it, it was a little bit over $34.2 trillion. So where do we stand this week?

Mike Zaino:
Uh, this week it's it's over 30. And I'm crying, right? I'm laughing, but I'm crying. It's over $34.3 trillion. And as fast as that debt is adding up, imagine if your savings account or your investments account could go up that fast. It's like it's it's astronomical how fast it is moving. And a lot of people have no clue how big the number a trillion is, right? So a million, everybody thinks, all right, $1 million. That's a lot of money. It used to be a lot of money. In today's day and age, it's not right. But $1 billion is a thousand millions. Okay, that's a lot of money as $1 billion. And then $1 trillion is a thousand billions. So we're talking about 12 zeros following the number. If you had to spend $1 every single second, you would never spend $1 trillion. In fact, you'd have to go another 32,000, uh, plus years to even come close to spending $1 trillion and to address the national debt, our country is likely going to have to increase taxes, or they're going to have to cut benefits for retirees and other Americans. And that is just the sad state that we find ourselves in, because excessive government borrowing that can lead to inflation, which can erode the purchasing power of retirees on fixed incomes, erode their savings, and then high levels of national debt can absolutely undermine investor confidence and lead to market volatility, which in turn impacts, uh, retirees investment portfolios and their retirement savings. So the national debt is a problem. I don't know how they fix it. Um, I don't think the people up in Washington know how they fix it either. So they just ignore it, which is not a good strategy.

Producer:
Yeah. Been kicking the can down the road for many, many years and, uh, you know, doing things that aren't paid for and all of that. And it's, you know, it's been a not to not to get political because it's really been people, you know, members of both parties that have done it. It just needs a solution. And getting people to agree these days that the sky is blue is like a difficult thing. So. Yeah. And if you say.

Mike Zaino:
It's a different color, if you say if it's a different color, they're all over you, you know, and it's like, come on man, can't anybody have an actual opinion anymore without one of the, you know, getting a ring and fight?

Producer:
Right, right. Exactly, exactly. I mean, that's what it's what it's gotten to at this point. But, uh, yeah, I mean, it is a it's a big issue and it needs to be solved. And so, um, but that's the thing, Mike, is when we talk about, uh, results and advanced planning and when we talk about, um, all of the different steps to prepare for retirement, it really does come down to preparing. No matter what happens, no matter what the solution is. Um, hopefully out of Washington, that's going to take care of the national debt. We need to plan for that. We need to plan for all of the different possibilities. And that's why, you know, I think I wouldn't want to go that alone. You know, I wouldn't want to be alone in that, in that planning process. So I would hope that our listeners kind of feel the same way I do, that they need professional help when it comes to that.

Mike Zaino:
And not only do they need professional help, but guess what? I'm a professional and I seek professional help because I don't know everything, and that keeps me on my toes to better serve my clients as well. So, um, I just think that no matter what you're doing in life, I hope that these ten steps, especially if you're going to, uh, retire within the next ten years, I really hope you take them to heed and start putting them into practical application.

Producer:
Yeah, 100%. And so, Mike, just here in our last few minutes of the show, let's go through because you mentioned you got a call from your tax preparer about tax forms being due and all of that, which is so much fun. And so that means we are smack in the middle of tax season right now. Um, people get get your taxes done before April 15th or I don't wait until the last minute. Don't procrastinate. But Tax Day officially is on April 15th, and, um, we wanted to give you a couple of retirement tax strategies here to be mindful of as we are in tax season, because we talked about one of the steps in in our our ten steps to prepare for retirement was minimizing your tax burden. This is going to be a couple of ways to do it right Mike.

Mike Zaino:
Yeah, I mean there are only two tax free types of investments that are available in America. And we can help you with each one of those. If you give us a call and you schedule a complimentary consultation. And of course, I'm talking about Roth IRAs as well as life insurance. And yes, people, you can use life insurance as a means to generate tax free income in retirement income that you never have to worry about outliving because it's guaranteed for the rest of your life, and offset by the death benefit and the cash value within. So, you know, a lot of people say, well, Mike, what about municipal bonds? Well, they're not necessarily tax free. And there's sometimes subjected to state federal as well as local taxes. And they can impact Medicare costs for high income earners. So if you're concerned at all about the rising tax environment, pick up a phone call (704) 560-1573. Go online, uh, in your browser. Type in Money Matters with Mike.com. Okay, just get in contact with me so that we can help to build a very smart tax plan, a tax efficient plan, a market efficient plan for you, for your family during retirement. The cost of taxes will significantly impact you if you do not have a plan. And having a proper estate plan is even another thing that you can do. If you're interested in minimizing your total tax burden in retirement, folks, we can help you with each and every single one of these different avenues and save you money instead of just leaving that tip for Uncle Sam.

Producer:
Yeah, yeah.

Producer:
He's standing there with his hand out, and, uh, you don't want to give him a handout. So there you go. Go to Money Matters with Mike com or call Mike at (704) 560-1573.

Producer:
It's this week in history.

Producer:
All right. So some significant things happened in our history on a couple of dates. Uh, coming up right here this week. That's why the segment's called This Week in History. After all, March 3rd, 1847 was a big day because inventor and scientist Alexander Graham Bell was born. If you've ever spoken on a phone, um, you have him to thank, right?

Mike Zaino:
No doubt about it. He is. He is credited, uh, with having patented the first telephone. He also co-founded the American Telegraph and or Telephone and Telegraph Company, which is AT&T folks, way back in 1885. So he was a a pretty important person in, in the life of, uh, here us here in America, for sure.

Producer:
Definitely. And around the world. Also on March 3rd, 1931, the Star-Spangled banner, which is a song you may have heard once or twice written by Francis Scott Key, was originally or officially rather adopted as the national anthem by Congress. And boy, I'll tell you that one is is a big one in our history.

Mike Zaino:
It is a very big one, Matt. And, you know, I don't know if you do this, but every time I hear the Star-Spangled banner, right, because of my military background, I will stop what I'm doing. I if I, I will place my hand over my heart or if it's appropriate for a salute, I will do that. But every single time I hear that song, I get chills. And it doesn't matter how many times I've heard it, every song or how badly it's sung, every time I hear it, I get chills.

Producer:
Yeah, there have been some renditions that will go down in history not for being great, but, uh, and have gone down in history. I'm just thinking of Roseanne Barr, for one. But, you know, um, there we go. Uh, so. Okay, moving on. March 4th, 1967, the Rolling Stones went to number one on the US singles chart with Ruby Tuesday, uh, the group's fourth number one single. I love that song. That's a nice little, you know, song to kind of bop your head to, I love.

Mike Zaino:
Yeah. You know, it was there. I think rolling Stone ranked that song, uh, 310 out of the top 500 songs of all time. So it was definitely a powerhouse song for, for, uh, you know, the Rolling Stones.

Producer:
Yeah, absolutely. Was, uh, also on the date of March 4th in 1968, boxer Joe Frazier, uh, took his career record to 20 and zero with a victory over Buster Mathis in 11 rounds to capture the vacant World heavyweight Championship. At the time. Boy, Joe Frazier, talk about somebody who he. He was a fighter, that's for sure.

Mike Zaino:
Yeah, no. No doubt. I mean, and the only person I think I enjoyed watching, uh, you know, as equally or maybe even a little bit more was Mike Tyson in his prime and then Floyd Mayweather, those are those probably were my three favorite boxers right there. And of course, I mean, we can throw Muhammad Ali in there. But you know, he he was a dancer and I liked the big guys that just got up there and weren't afraid to throw licks. But hey, how about this date on this? On March 4th, in 1801, Thomas Jefferson was the United States very first president to be inaugurated, and then Abraham Lincoln was also inaugurated as the 16th president in 1861. And then FDR was inaugurated as the 32nd president in 1933. So we had a lot of inaugurations, uh, on these dates, uh, or on, on on March the 4th and 1801, 1861 and 1933. Yeah.

Producer:
Just before Congress, uh, moved that date to January, which is now when we have the inauguration of the president every four years. All right, Mike, well, that will do it here as I look at the clock, uh, for this week's show. But I thank you, as always, sir, for everything that you bring to the table, all the wonderful, uh, sage wisdom that you share with our listeners each and every week. And we'll do it next time.

Mike Zaino:
Matt. I couldn't do it without you. So thank you for everything you bring to the show and the way you team me up. But the most thanks that we want to throw out there is to each and every single one of our listeners who tune in religiously on Saturdays in the Charlotte MSA and who tune in religiously on podcasts, no matter where you guys listen. Without y'all, we don't have a show. So from the bottom of our hearts, thank you so very much. Whatever you're 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.com 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.

Producer:
Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer.

Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty and how it could all affect your future in retirement? Then tune 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 Money Matters with Mike.com.

Producer:
Remember, all of Mike's listeners receive a free financial consultation just for listening to the show. Visit Money Matters with Mike.com to learn more and schedule an appointment. Thanks for listening to Money Matters with Mike and subscribing wherever you listen to podcasts.

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