The Frightening Future of Social Security

11.10.23: Audio automatically transcribed by Sonix

11.10.23: 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 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 on today's show, we are absolutely bringing the heat again. So we're going to discuss what's happening with Social Security. And we'll also give you some tips to help strengthen your income plan so that you can enjoy a stress free retirement. 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, sir?

Producer:
I'm doing great, Mike. I'm doing even better. You know, hearing about stress free things, you know, that's right up my alley. It's yours and.

Mike Zaino:
Mine. Both. Brother. Stress kills.

Producer:
Oh my God, it does. And you know, and you may not like, you'll feel the stress and all of that in the moment, but then like eventually you have so much stress, you can. I mean, you'll feel it physically. It will take its toll on you. And you might not even realize it at the time, but like, it just builds up and can wreak havoc. Really.

Mike Zaino:
It can heart attacks, strokes. I mean, there are so many different health ailments that are, you know, led to stress. And so having a stress free retirement, I think that's what every person listening should be looking forward to.

Producer:
Yeah, 100%. And so that's why it really boils down to why we do the show here each and every week is because that's what we want for people, is for them to live that stress free retirement. And we'll talk about plenty of ways to get there and the help that is available to help you get there as this hour goes on. Now also wanted to take a moment here at the very beginning to thank you, our listeners, each and every one of you, for just listening to the show number one today. Amen. Whether you're here, you know, listening on as we are, you know, on the air each and every weekend or listening on the podcast whenever you might listen weekend during the week, holidays, whenever you can. Listen to us on the podcast. Just go to MoneyMattersWithMike.com or wherever you get your podcasts. That's all the all the big ones out there. If you have a podcast platform that you subscribe to, then you're going to find us on there pretty much. And if you don't let us know, because we guess we don't know it exists because we're on every one that we know exists. So so there's that. If you're looking for us, you can't find us. There's a problem. We're also on the socials. Just search Money Matters with Mike on Facebook, on YouTube as well. We got video highlights there. And also, you know, in addition to just going to the website, Money Matters with Mic.com and, you know, finding past episodes of the show and stuff like that. You can also send Mike an email at Mike at MoneyMattersWithMike.com. Easy to remember. It's Mike at MoneyMattersWithMike.com. So super easy super super easy.

Mike Zaino:
Or if you just want to be old fashioned and pick up a telephone, you know for for once right. You can call (704) 560-1573. And you don't have to press one for English.

Producer:
You don't have to press one or to even just talk to a human being. You know, it's like, I always hate that when it's the robot answers the phone and, you know, press whatever. If you know your party's extension, please dial it. Now, this is a call directly to Mike Zaino. 7045601573a lot to get to here on the show today, Mike. But before we get into kind of the meat of everything, wanted to just issue a couple of reminders. Reminder number one here is that it is the Medicare open enrollment period. We're kind of smack in the middle of it now. It runs through December 7th, and we really want people to take a look at their Medicare coverage, because if you do that, you might find some other options in there that you didn't know existed or weren't around at all last year.

Mike Zaino:
Yeah. Planes. Excuse me. Plans. Not planes, but plans change all the time. And by reevaluating your plan each and every year, you'll likely find that you can save some money on your Medicare expenses. And I have found that savvy retirees that. A smart ones. They do a Medicare coverage check every single year, just in case they have the opportunity to uncover some extra savings. And let's face it, money in your pockets is much better than money in Uncle Sam's.

Producer:
That's right. Because you don't know what all the Uncle Sam is going to do with it. But if it's in your pocket, you control what the money does and you put it to work for you, right? Also, you know, avoid scams during this Medicare AEP. They are out there. It seems like everywhere. And scammers come up with new ways to try and scam you and try and get better at it each and every day. Yeah, just use caution.

Mike Zaino:
Yeah. And just buyer beware. Right. So that's especially heading into not only Medicare's open enrollment season, but we're heading into the holidays. And so if you have any unsolicited contacts, whether they are phone calls, emails, door to door visits, and they're offering Medicare related services or any other services where they're asking you for your personal information, you need to be extremely vigilant in protecting that info as well as protecting your actual Medicare card. You want to keep that card very secure, and you want to avoid sharing your Medicare number with anybody other than your health care providers. And you, Matt, mentioned that these guys are getting good, and they are they have artificial intelligence that if you have voice snippets that are out there on the web anywhere, they can actually mimic your voice and, and get you to do things, posing as one of the members of your family. And so again, just stay vigilant. If anybody calls you and says they're so and so, make sure you send that person a text or, you know, say, hold on a second and then give them a call just to verify that it is who they say they are.

Producer:
Yeah. If it seems a little strange and out of place, chances are it is. So just. Yeah, take that extra step and make sure that everything is as it seems. All right, so coming up on the show, of course, we'll have our quote of the week to start things off here momentarily. A bit of a market update for you and a couple of different aspects to it. Mainly we're going to focus on the jobs report from the Labor Department that came out last week. It was, you know, had to do with the month of October. And there were some interesting numbers in there that we that we see. And so we want to run through those. Got some interest rate news as well that we will talk about baby boomers fleeing certain cities and headed to others. We'll tell you what cities they're leaving and why. Coming up. Retirement crisis here. A lot of people concerned about outliving their money. Boy, that would be a crisis. And a lot of people have that fear. As a matter of fact, it's the number one fear of retirees. We'll also talk about the Social Security problem in the country and the future of the program, its fate really in question and in doubt these days. We'll have some details on that and also how to protect your hard earned money, protect that savings, protect your investments in retirement, and some ways to do that in in light of those concerns about Social Security and other things as well. All right. So let's get into the meat of the show here, Mike, as we start off with our quote of the week.

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

Producer:
And our words of wisdom this time around come from Sir Richard Branson. Yes, he's he's been knighted over in the UK. But Richard Branson, if you're like, wow, that name sounds kind of vaguely familiar. Well, he is an entrepreneur. He's a business magnate known for his daring ventures in various industries. Virgin Group is his biggest thing that you'll probably know of. And the one that's made a lot of headlines recently is Virgin Galactic. Right? The space sort of tourism. Right. His business. But, you know, Virgin Hotels, Virgin Airlines, the old Virgin Megastores and all that stuff.

Mike Zaino:
Virgin Cruise lines, Virgin.

Producer:
Cruise Lines now. Yeah, that's it's all Richard Branson. And so when it comes to success, this is a guy you probably want to listen to. So Richard Branson said this once. He said, do not be embarrassed by your failures. Learn from them and start again. Great, great words there.

Mike Zaino:
Yeah, that that that really hits home. Right? Because, you know, a lot of folks tend to be embarrassed when they fail. And especially when we're talking about financial setbacks. Right? So Lord knows I've had them in my 20s and my 30s and heck, even in my very, very, very early 40s before I started wising up and got a little bit better and went and sought the information from experts. Singh got professional credentials and licenses and such, but embarrassment about financial setbacks on the journey to retirement is like being embarrassed about taking a detour on a road trip.

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

Mike Zaino:
Life is full of unexpected twists and turns, and the path to financial stability is absolutely no different. Okay. And so, you know, every financial setback is actually a lesson in disguise. And maybe you invested in something that didn't pan out. Or perhaps you haven't saved as much as you intended. But instead of being embarrassed, please view those experiences as valuable lessons that contribute to your financial education. It's like learning the quirks of the road so that you can navigate better and avoid those potholes that you know exist in the future. Okay, pressing on despite those financial hiccups builds resilience and life is unpredictable, and financial success is often a result of how well that you can adapt to your changing circumstances. So imagine your retirement plan is like a GPS system. Well, sometimes it recalculates right, but the important thing is to keep moving forward and understand that every challenge you overcome actually adds to your ability to bounce back stronger. And so you know, what is success? Well, it is a personal journey and it is not always a straight line. Financial setbacks allow you to redefine what success means to you.

Mike Zaino:
Maybe it's not about reaching a specific monetary goal by a certain age, but rather about achieving financial peace of mind. Okay, and embracing that perspective can help alleviate the embarrassment and refocus your efforts on what truly matters to you. So this week, you're actually going to get a bonus quote from Sir Michael Jordan. Yes, that's right, I just knighted Michael Jordan, the greatest basketball player of all time. You know, at the time he said this quote, he'd said that he had missed over 9000 shots in his career and he had lost over 300 games and 26 times. He'd been trusted to take that game winning shot. And guess what? He missed? And it was because he tried over and over and over again. And that is why he ultimately succeeded. So remember, the road to retirement is rarely a smooth and straight highway. It's more like a winding adventure with its shares of bumps and bruises and detours. And the key is to keep moving forward. Learning the journey, adapt as needed. Because after all, it is those twists and turns that make the destination all that much more rewarding. Matt.

Producer:
Yeah, that is absolutely true. And you know, I love that. It's all a matter of perspective how you see things, because you can see failures simply as that, as failures. But if you look at them as what they really are, which which is, as you said, learning experiences. Yeah. Boy, that really just just kind of kind of resets your mind and can make a huge difference in the way that you respond to those things, because that's the part that we can control. A lot of times we can't necessarily control what happens to us. We can influence it a lot of the times, but a lot of time, we can't really control all the things that happen to us from outside forces. We can control how we respond to it and whether or not we learn from it. So, so true, so true. Make that change in your brain and you will reap the benefits. Yeah, especially.

Mike Zaino:
If you're competitive, right? If you've ever played sports I mean they measure sports in wins and losses. W's and L's right. So you can actually if you learn to take the L not as a loss but as a double L a lesson learned and so and adopt the mantra that, hey, I either win or I learn a lesson, then you're going to be that much farther ahead in your financial journey for a successful retirement.

Producer:
Yeah, 100%. And a lot of people, you know, these days that that sounds great to them because a lot of people are struggling when it comes to that very thing. And so that's a little bit of what we're going to talk about in our market update here for the month of November. You know, we just got some federal data showing people working a lot of, you know, multiple jobs or a lot of people working multiple jobs, I should say not not a lot of people working a lot of jobs that now that would be something else. I have 15 jobs. No, I guess it's maybe not quite that bad.

Mike Zaino:
But do you guys, do you remember? The in living color back in like the late 80s and the 90s. And they like. How many jobs do you got, man? I have 15 jobs. Oh, I have 17 jobs. You know, it was it was hilarious, right? You know, if anybody out here in listener land remembers In Living Color, you remember those skits they used to do? They were hilarious.

Producer:
It's a lot of great skits on.

Mike Zaino:
Yeah, but what's not funny is this new federal data, for sure.

Producer:
It's definitely, definitely not as entertaining at all. But it is important to hear because a lot of people are working multiple jobs, and that number is actually reached its highest level since the beginning of the pandemic. That's a trend that really shows, according to the numbers here. And according to this piece that we saw in USA today, you know, a lot of people really feeling the pinch of inflation.

Mike Zaino:
Yeah. So so inflation inflation inflation. Yeah. Inflation I don't know what it is today with my tongue. It's like the first day with my new tongue. So you know inflation used to be called the silent tax okay. But now it's it's not too silent anymore. Over the last few years since the, the pandemic, it's been, you know, screaming at folks. Nearly 8.4 million people held multiple jobs in October, according to the Labor Department in their report last Friday. And that represents, you know, 5.2% of the entire workforce, which is, you know, the largest share, excuse me, of those folks who are doing that since the year 2020. And those employment statistics also showed that 5.9% of women worked multiple jobs in October, compared as only 4.7% of men. And then additionally, roughly 5 million workers have one full time job and then another part time job. So, I mean, people are having to take on more and more and more. And that's not just to, you know, bolster their retirement. That's literally just to make ends meet, which is, is, you know, can create a dire situation for a lot of folks.

Producer:
Yeah. If you're having to do that just to make your basic expenses, you're not able to put any aside. And and I speak from experience when I say this, I've had to do this as well in my life. And it's not fun. Talk about stress. The boy that can really stress you out. If you're having to work two jobs just to get by. It's not not a fun situation to be in. It's not.

Mike Zaino:
Especially if your shifts are, you know, you get off at, you know, 430 or 5:00 at one. You got to be at work at 5:00 or four, you know, at the other. And you're like, how do I get from point A to point B? I'm going to be late. Am I going to get fired? I mean, and then you end up driving faster and you may get a speeding ticket, God forbid, you get into an accident. I mean, it's just a lot of unnecessary stress.

Producer:
Yeah, I have been there, definitely. And a lot of people are in that same boat, a lot of people also feeling the weight of inflation as well. You alluded to that a second ago, Mike, and you know, high inflation numbers, higher interest rates as well, continuing to weigh on households in this country as of the month of September, which is when we have the latest numbers for here, 62% of adults said that they're living paycheck to paycheck. And the figure actually hasn't changed from last year, but still mean that's two thirds of the country living paycheck to paycheck.

Mike Zaino:
Boy, that that is a staggering statistic. I mean, an absolutely staggering statistic where two thirds of the American population, if you were to remove one of their paychecks, they they would be up the creek and without a paddle. Right. So the consumer price index, which is another closely followed gauge of inflation, if you believe it or not, also rose at a slightly faster than expected pace over the past month. And that was boosted by higher prices on food, higher prices on gas, although we have seen that come down a little bit now and then. Higher prices on shelter, right. Have you tried looking at home prices recently. And as a result real average hourly earnings actually fell. And so federal Chair Jerome Powell recently said that, quote, inflation is still too high, indicating that interest rates are also going to stay higher for longer. And it was funny because this past week they you know, I was reading some articles in Bloomberg, and the tenor of the articles at the beginning of the week was, you know, hey, we think the fed is done raising rates and then toward the end or the middle of the week, middle and end of the week, you know, that that that whole atmospheric shift happened when they said, you know what, we're not ruling out further price hikes. So 74% of Americans. Are saying that they are stressed about money and finances. And that was according to a separate survey that was also conducted in August. So inflation, rising interest rates, a lack of savings, a lack of financial education, all of that contributes to that stress and that fear of running out of money.

Producer:
Yeah. And, you know, I mean, a big part of that, as you said, is that lack of financial education, a lack of of knowledge that you need to make your situation better because a, there is help out there for you. If you are in a dire situation, there is help available to make things better. There are resources out there. But the thing is though, that and we've talked about this before, that people just are not offered on any sort of regular basis in a formal education setting. Public schools, things like that, even a lot of private schools. I'm sure he sort of, you know, personal finance education at all, you know, beyond just okay, well, here is, you know, a dollar and a quarter and a dime and a nickel and $5 bill, a ten and a 20 and 100, and that's our currency. Okay. Well, that's what we're going to look at. And moving on, that's kind of the extent of it. And it doesn't that doesn't really cut the mustard. You know it really doesn't.

Mike Zaino:
And so you know those dollars that folks are spending, they just aren't going as far. And that's due to the higher price of goods and services, that nasty thing called inflation. Again it used to be the silent tax. It is no longer silent. And so there are some things that that folks can do to help combat them for sure.

Producer:
Yeah. And one of those things, you know, I know that you are have grown very passionate about here, Mike, over these recent weeks that we've been kind of mentioning this on the show. There is a particular card that is out there that offers a lot of benefits for people. It's it's actually brand new, hasn't really officially launched yet. It's still kind of in the pre-launch phase right now for at least a few more days.

Mike Zaino:
And it actually it actually launches on Monday. Okay. And so for those of you who maybe didn't tune into the show that much over the last month, shame on you for first of all, no, I'm just kidding. But you know, I've mentioned this because once I was made aware, it just resonated with me. It resonated with the mission of this show, and that's to help people stretch their dollars, you know, even that much farther. So there is a debit card that you guys listening can contact me if you want one. And trust me, once I finish what I'm about to say, my phone is going to start blowing up. I'm I know that you are going to want one of these every time you spend money on this card, just like you do on your current card. And if you if you're like me, before I had this card, I had 3 or 4 different rewards cards, and the most rewards I would ever see is that I have personally as a 2% cash back on anything, anywhere. Well, I finally got a $2,000 check after a few years of utilizing one of these cards, and I had to spend $100,000 over those few years to get $2,000 back. Folks, this card that I'm talking about gives you dollar for dollar rewards. So if you fill your tank up with gas for 70 bucks, then you're going to get $70 in rewards dollars. If you take your family to the grocery shopping and it costs you $127 at the grocery store, you're going to get $127 in rewards dollars if you pay your utility bills on autopay, if you pay your Netflix subscription, your gym membership, anything that you would normally put on a piece of plastic, whether you swipe it or tap it, you're going to get 100% dollar for dollar rewards to then go and spend on their ecosystem.

Mike Zaino:
Online, you can purchase products like diapers. You can purchase products like running shoes, Adidas, Nike. You can get Bose headsets, virtual reality games for the kids. I mean, the list of companies that are participating in this is incredible. And the firepower that is backing this card, I don't know that I have ever seen anything like it. They are trying to revolutionize the way that banking is done. And I've said this before. Every once in a while there comes along what is known as a disruptor. Okay, I mentioned Netflix. Think how Netflix disrupts the old blockbuster model, right? You used to have to go to a to a a video store and rent a VHS, take it home, watch it, make sure it was rewound before you sent it back. Think about how Uber disrupted the cabbing industry. Think about how Amazon disrupted the, you know, commerce industry. And I really do believe that this is something that is going to disrupt the banking industry, because instead of the banks making all of that money, they're actually giving those interchange fees back to the users of the card. So if you get it before tomorrow, okay, it is $25 for life. They are going to waive the annual fee, something like this. You would expect to cost thousands of dollars or hundreds of dollars. It's a whopping 25 bucks. And then it's 25 bucks for the rest of your life. So if you want one of those cards, if you think that your family could get benefit by getting to spend their money not once doing something that you're doing anyway, but twice, then give us a call 704 5601573.

Producer:
You can also send Mike an email. Mike at MoneyMattersWithMike.com. That's Mike at MoneyMattersWithMike.com. Of course that means that Money Matters with Buy.com is also the website for the show as well. And that that let me tell you great, great option. I think for just about anybody, especially with that, that fee being waived for future use.

Mike Zaino:
Absolutely. And I forgot to mention they have just announced a travel club as a part of the benefit where you're going to get up to 65% off of resort stays, hotel stays, cruises and guess what? Even Airbnb is a partner now with this platform. So I'm telling you folks, it is going to change the way banking is done. Forever.

Producer:
Yeah, some big, big names, big companies and corporations and all involved here as well. So definitely, if that is of interest to you, give Mike a call once again, 704 5601573. And you know Mike, all of this, you know, we've been talking a lot about the struggles, right, that people are going through these days with inflation, with high interest rates, with people having to as a result, then work multiple jobs. All the things we've been talking about, and it's not necessarily a problem in all places at an even rate, right? A lot of places are much more expensive than others to live. So a lot of people, according to some new numbers here from Bank of America, they actually recently published this data revealing which cities baby boomers are are really trying to get out of and getting out of at the highest rates. So let's take a look at these top four cities. Now, the data inside this as we talk about it is going to offer a really, I think, an eye opening perspective as to why people are leaving.

Mike Zaino:
Yeah for sure. So the first one on the list is is Washington, D.C., and in Washington, D.C., the annual household expenditures, that's what people are spending just to exist. Okay, is almost $89,000, where the United States average is just over $64,000. Utility bills alone in the DC area cost 13% more than the national average, plus groceries and transportation. I don't know if anybody's ever driven in DC on the Beltway. I have. I speak in Washington DC quite often. Um, groceries and transportation are around 8% more than the national average, so it's understandable why people would be trying to get out of our nation's capital.

Producer:
Yeah, my first time ever riding in a cab in DC on the Beltway was a time when I really feared for my life. Um, so yeah, that part can definitely be rough. Yeah.

Mike Zaino:
I have a similar story for our next city.

Producer:
Oh. Oh, yeah. Okay, I got you. I've got plenty of stories about this place because I lived there for about ten years of my life.

Mike Zaino:
But you.

Producer:
Do? Um, new York is the next city on the list. And this one, you know, obviously it people one of the first places that comes to mind when you think about expensive cities to live in annual household expenditures there, though, you know, DC was over 88,000. New York is just over 77,000. And on the surface, that might seem like why is New York so much lower? But you've got to think the city of New York is all five boroughs. So you're not talking about just Manhattan. You're also talking about Brooklyn and Queens and the Bronx and Staten Island and all of those places. Those are those are working people boroughs. It's not the rich, you know, people that you think living on the Upper East Side of Manhattan. So there's a disparity there. And so that really is why that number is lower than than it is health care, though 9% more expensive in New York. Groceries, 29% higher in New York City. That that last number just does not surprise me at all, especially if you go to certain stores.

Mike Zaino:
Yeah, you're talking about food being, you know, almost a third more expensive in New York City. Now it is good food. All right. That is one thing I miss about leaving New York. When I go up there and leave. They have the best food in the United States and any kind of food that you want. I mean, heck, you could probably eat food from 400 countries if you really wanted to look for it. But, you know, we were talking about that transportation and your first cab ride in DC. I remember I took my wife up there when we were dating, okay. And she had never been out of the Southeastern United States. And her first experience in a cab in New York City was was a guy from another country who might have gotten his driver's license the day before, maybe even earlier that morning. Um, we were literally slamming into both sides of the doors, and she was like, please don't ever make me do that again. So yeah.

Producer:
Yeah, that it can be an adventure. One time I was going, I was in a New York City cab, and I was going to the airport, and it happened to be snowing that morning. And driver, you know, driver was fine. Driver was good. But it was it was a scary experience because of the snow, because all of a sudden you'd be sliding one way or sliding another on the road and was just like holding on for dear life. And eventually the flight did take off. But boy, that was that was a thrill ride in and of itself.

Mike Zaino:
Yeah, that and you know, we have we have a slower pace down here in the southeastern United States. Right. And if you take that pace up. There. They are not afraid to use their horn. They're not afraid to give you a one finger salute. I mean, it is just that in and of itself, you know, especially for, you know, just the southern belle that had never been outside of the southeastern United States. That was culture shock for her, for sure.

Producer:
I bet so. Another place that's on the list that people are getting out of because of all these high prices. San Francisco boy, this one, it's the highest as far as household expenditures go, $91,000 plus. And again, the US average is 64. So a lot of people saying, hey, let's live somewhere else, we can save ourselves some money.

Mike Zaino:
Yeah, not only that. I mean, it's in California and California as a whole. I mean, is very, very expensive. Utilities are 33% more in San Francisco, groceries 30% more in San Francisco, transportation costs 37% more. And health care is 29% more. They are all more expensive in the city. And that housing out there in San Francisco is the most costly in the United States of America.

Producer:
Yeah, and it's been at the top for years and years as far as those real estate prices go. And then of course, this one I thought was just maybe a little surprising. It surprised me was Seattle. Yeah. Beautiful city. Everything is so green because it rains all the time.

Mike Zaino:
Beautiful for about three months. Four months out of the year.

Producer:
Yeah, yeah. I mean, the vegetation gets taken care of by all that rain, but, I mean, it's expensive place to live. $86,000 a year, household expenditures and, you know, groceries at 23% more expensive than than the nation overall. Transportation 24%. Health care even more expensive than in New York. This 131%. Just all of those categories, exceptionally higher than the national average. Yeah.

Mike Zaino:
And like you said, I think everybody should go out and visit Seattle. It is an absolutely beautiful city. I was fortunate enough to live out there for a couple of years just outside of Tacoma and Fort Lewis. But, you know, everybody should make a trip out to the Pacific Northwest because like Mike or Matt said, because it rains all the time. Everything just grows so large. I mean, could you imagine finding cloverleafs like, if you're searching for a four leaf clover and the clover leafs are literally as big as your hand, you know, trees that are 300ft tall. I mean, again, it is absolutely gorgeous out there and everybody should go just check it out.

Producer:
Yeah, absolutely. And a lot of people though, you know, leaving from living there, they're like, you know, nice place to visit. Wouldn't want to live there.

Mike Zaino:
I think you can say that for all of these cities on this list.

Producer:
Yeah. There you go. I do a lot of times I do miss New York, and then I go back and visit and I remember how expensive it is. Yeah, I'm like, okay, going home. But, you know, I mean, and that really does not only people in those cities, but people all over the country because prices have gone up nationwide, not just in big cities, but nationwide. People are struggling, as we as we mentioned a little bit earlier, but people who are in that sort of retirement red zone, right, those few years, like say, five years before retirement and the five years into retirement are just not prepared to actually be retired. And I'm not just saying this out of the blue. This is actually from a survey from the Alliance for Lifetime Income, right? I mean, these these are these are real hard and fast numbers.

Mike Zaino:
Yeah. So I mean, millions of Americans, millions of Americans are going to turn 65 years of age. And guess what? Like you said, they are not ready for retirement so long. Gone are the times when most Americans could rely on a pension to provide an additional stream of income during retirement. So that has left a lot, many pre-retirees and retirees at risk of running out of money in the coming decades. Right? So here is what the survey found in Matt when we were talking about this, you know, just before going on air, we were both absolutely shocked at these numbers. So more than half, 51% of consumers between the ages of 45, which is still young and 75, which, you know, if you're 74, 75 is still young, they feel that they don't have enough money in their retirement savings in order to last them their entire lifetime. And if you think about that, you know, somebody that's 45, they still got a lot of work in years left. Somebody that's 75 probably doesn't. But if a 75 year old is fearful of running out of money, that is a major, major issue. Matt.

Producer:
Yeah. And as we have. Shared before, you know, there was a separate survey showing that that's really the number one fear of retirees. People fear running out of money in retirement even more than death itself, and for good reason. You don't want to be caught at the, you know, what are supposed to be your golden years with no money, just not a good thing. And also, you know, according to this particular survey, nearly a third of people are not confident that they're going to have. And this is 32%, by the way, is the actual number there, but almost a third just shy of a third, not confident that they'll have enough money in retirement to safely cover just their basic monthly expenses. That is scary.

Mike Zaino:
Yeah, that's the one that really hit home for me. So we're talking about, you know, seniors who are supposed to be enjoying their golden years and they're worried about putting food on the table. They're worried about having a table to a roof that that goes over that table. They're worried about paying for their health care. And you know, we as a country have to do a better job at preparing folks for what is to come during their retirement years. And so another one said 44% are retired already, and they have decided that they're going back to work. And it's not because necessarily they want to, but they're having to go back to work just to make sure they have enough money to make ends meet. And again, that is not a good situation to find yourself in. And if you had, you know, only had some knowledge prior, and if you'd only taken action on that knowledge prior, perhaps you might not find yourself in that situation.

Producer:
Yeah. And these statistics here that we're sharing a kind of a wake up call and they really should be. And you find yourself in a situation where you're saying, gosh, you know, I really don't know if I'm going to have enough money for retirement. It never hurts to take a look and see and make sure if you don't know, if you're unsure of where your road is headed as you move on toward retirement, as we all are, we're not getting any younger. Then have that that analysis done, have it looked at by an expert. I just happen to know a guy. His name is Mike Zaino. And that.

Mike Zaino:
Guy before.

Producer:
I've heard him. I've heard of him. Yeah, maybe once or twice. He's a good guy. But you could go to Money Matters with Mic.com. That's MoneyMattersWithMike.com. You can also send Mike an email at Mike at MoneyMattersWithMike.com, or call him (704) 560-1573. The consultation is completely free of any cost, free of any obligation. We'll talk more about it coming up and kind of what that process is like. It's very unintimidating that that whole process, let me tell you, I can assure you that right now I'm laughing.

Mike Zaino:
I'm sorry, Matt, because, you know, some I've been accused of being intimidating before. And I'm like, really? I'm a big teddy bear, you know, I call it like I see it. You never have to wonder about where you sit with me. But, you know, if your situation is broken, wouldn't you like to know before you actually have to depend on a broken situation? So I think so, and I do I do provide light at the end of the tunnel. So for those of you who think that your hope is gone and you are a lost cause, I can actually provide you with a roadmap that gets you through that tunnel and into the light.

Producer:
That's right. And and the you know, the light at the end of the tunnel is not a train coming at you. It's going to actually be the good kind of the light at the end of the tunnel where you're going to come out on the other side and things will be better. That's the whole goal here of everything that we talk about on the show and all of the things that Mike does each and every day. For people just like you out there who have issues and concerns and want to make their life situation better, especially their situation in retirement for their future, their golden years, and also, you know, all of these things, these survey results with with people being so concerned about not having enough money for retirement to last them the rest of their lives, not even for their basic expenses, let alone other things that they want to do to travel or do whatever else they want to do in retirement. All of that leads me to this part of the survey as well, which really stood out and not necessarily a surprising way, but an O because of all those other numbers. This really makes sense kind of a way. There's a really big and growing demand for protection for your retirement savings, and also a growing demand for annuities. Run us through this and explain the why of that to our listeners. Mike.

Mike Zaino:
Yeah, so so this should not come as a surprise to any of our listeners. So pension plans were mostly funded through guess what? Annuities. Your Social Security is funded through. Guess what? An annuity. If you if you were to win the lottery, you're going to have the option to take an annuity. And so annuities provide protection. They provide a lifetime guaranteed income stream if you wish to have one, almost like a personal pension if you will. And that survey also revealed how consumers want it as much as 80% of their retirement savings to be invested in safe investments, things they could not lose. And why do you think that is? Well, when you're retired and you're no longer contributing to your employer sponsored plans like your 401 seconds, your 403 B's, your IRAs, your thrift savings plans, right. It's going to take a lot longer to make up any loss. And so the key there is to have that protection in place. And so individuals who were protected either by a pension and or an annuity, they have a significantly more positive outlook on their retirement prospects, according to the survey. And my guess is, is that they know that they're not going to run out of money. And when you know that you're not going to run out of money, that provides a peace of mind that you cannot put a price tag on. And so also consumer demand for annuities has skyrocketed. To guess what an all time high amid concerns about an unprecedented market volatility environment as well as falling retirement investments.

Mike Zaino:
And that is according to the Alliance for Lifetime Income. So annuities can be a valuable part of a well-diversified portfolio. And so you just need to know which ones are right for you and which ones are wrong for you. Because there are many different types. The newer ones are not your dad's, not your granddad's annuities of old. And so investing in a personal pension or an annuity may be a great choice for you. If number one, Social Security is not going to be enough to cover your basic expenses. Number two, if you're concerned that you might outlive your savings account and your investments, that'd be a great reason. Number three, if you want to reduce risk and you want to protect a portion of your retirement savings, then yeah, personal pension or an annuity would be great. And then the last reason, which is an important reason not to be overlooked, is that if you want to reduce or eliminate completely any of the fees that you are currently paying in your portfolio, then we need to have a discussion. So if anybody out there is interested in learning more about your personal pension options and how you could fit that into your overall retirement plan, get in contact with me. (704) 560-1573 or you can learn more by going to the website MoneyMattersWithMike.com. We can help shop the market for the best options to help you delete those fees. Eliminate altogether any type of market volatility risk, and we can help you establish an income stream that you can never outlive.

Producer:
Yeah. Absolutely can. And you know even I know there's something that you've talked about before, Mike is is multiple income streams that people cannot outlive as well. I know that's part of your strategy. You know, when you get to a certain age also, you know, doing that sort of annuity laddering kind of a strategy so that you have multiple income streams, but you also mean that they're all kind of that same, that same sort of product. So you can have that guaranteed income for life and that income is going to for several years, go up and up each year because you turn on a new stream of income every year. That's just another way that you can use annuities like that to your benefit.

Mike Zaino:
It is. And many people might be familiar with Laddering CDs or Laddering bonds, because that was the old school way of thinking about things, right? But guess what CDs and bonds have? They have fees and they have risks involved, whether it's, you know, inverse correlation of market volatility on bonds. That was really fancy way of saying that when the interest rates go up, your value of your bonds go down, whether it is interest rate risk with CDs and that we used to call CDS certificates of depreciation, you can eliminate all of those by laddering fixed indexed annuities especially. And so like you said, I have a plan on buying one every year from the time I'm 55 to the time I'm 62, so that by the time I'm 62 to the time I am 69, I will have multiple streams of income. You add that to my 401 K, my rental income. I should have about ten. Streams of income at that point in time, and it's only because I am privy to the knowledge. Right? And I'm not just going to be that smart person who has the information and doesn't act on it. I'm actually going to put it into application. And, you know, the happiest people, the happiest people are the ones who are able to do what they want and pretty much to the extent they want while they are in retirement. And they don't have to run about or worry about running out of money.

Producer:
Yeah, that is like, you know, as you said earlier, the peace of mind part of that is really priceless. You cannot put a price tag on it. So absolutely something to check out folks. And once again you can go to Money Matters with Mic.com or call 704 5601573. Now, you know when we talk about your own, you know, building your own personal pension and things like that, the issue, I think, with a lot of people is that they might just say, okay, well, I've got, you know, maybe, maybe they have a 401 K, maybe they maybe they don't at their job or whatever. Maybe they've got, um, you know, some sort of other investment account or maybe they don't, but a lot of people and too many people really. We have found there's this new survey from nationwide that shows a lot of people don't even have that 401 K don't even have an IRA or any other type of investment account that is specifically geared toward their retirement years. They actually have no plan for retirement income beyond Social Security. 1 in 5 or 21% of adults 50 and older say they have no source of retirement income besides Social Security. That's another scary statistic here that that bears talking about and discussing because you want to obviously, you want to have Social Security, but you want it to not be the only thing you rely on. As a matter of fact, you want it to kind of be the cherry on top.

Mike Zaino:
Yeah, exactly. And the statistic that is actually up 13% from just, you know, a decade ago in 2014, and that's due to the limited availability of pensions in the workplace. And I think more largely due to the lack of education on alternative personal pension investments. Okay. A decade ago, almost half of the respondents in this age group said that they had a pension in addition to Social Security, compared with, you know, not even not even a third, a 31% this year in 2023. And that that growing reliance on Social Security comes as an increasing number of respondents said that they were doubtful that they were even going to ever receive their full benefits, according to that survey, and nationwide said that 75% of adults respondents who are aged 50 or older believe that Social Security would run out of money during their lifetime and, you know, wow, okay, that's all I can say is wow. Because all of us, if we've had a job and we're, you know, receiving a paycheck, we've all paid into the system, you know, since we've gotten a paycheck.

Producer:
Yeah. And that really speaks to the problem with Social Security, the way that it is structured. Because, you know, a lot of so a lot of people, right, as you just said, have these concerns about Social Security not being able to meet its obligations by the time that they retire or by the time that they're, they're older or by the time that they're graduating off of this planet. But that is really the the symptom and not the actual problem. It's the symptom of the problem. So the problem is that back in the 1930 going on 100 years ago now, Social Security was introduced, there were a lot more people paying into the system than the beneficiaries, drawing down benefits from the social Security system at that time. And that's really changed over the years.

Mike Zaino:
Yeah. Back then there were 45 people paying into every one person taking out, and that ratio has fallen to 3 to 1. And that's due to just population aging. And that's projected to drop down to 2 to 1 by the year 2034. Right. And at that point, the scheduled benefit levels would be unsustainable and the system could not afford to pay recipients, but 75%, and that's at best of their scheduled amount. And so, contrary to popular belief, folks, contrary to what everybody thinks is going on, the Social Security taxes that you've paid, there aren't just stashed in a jar that have your name on it. There is no personal savings account. It is definitely a pay as you go type of system. And so the Social Security Administration uses the FICA taxes it collects from current workers to pay current beneficiaries. Okay, I've said it before and I'll say it again. It is the largest legal Ponzi scheme in the world. If you are collecting retirement benefits, your check is being funded by all the younger generations that are still working. Money that goes in comes out immediately, which is why the ratio between workers to beneficiaries is so important to the financial stability of the actual system.

Mike Zaino:
So, you know, what can the government do? You might be asking, well, they can change the rules on us is what they can do. They can cut a percentage of your Social Security benefits so that all can continue to be paid. Um, they can increase taxes to make up for the shortfall in funds, or they can increase the full retirement age again. In fact, last week I was doing a presentation. Many of you regular listeners know that that I work with a lot of federal agencies. And I was talking to several from the Social Security Administration, and they shared with me that, you know, what is being hypothesized right now is that those between the ages of 20 and 50, okay, their benefits and their age, rather, is going to be moved. And so, you know, some people are thinking that it might be as high as age 70 just to get those full benefits again. So what should you do? That might be the question. And that would be one that is, you know, kind of a scary one to ask and answer, wouldn't you think, Matt?

Producer:
Yeah, definitely. All those things that are out of your control. Right. Being the problem because, you know, you can't really control what the government's going to do. I mean, you can obviously you can vote and that has a big impact. It's our civic duty as well to go out and vote. No matter who you vote for, go out and vote. Just do it. Educate yourself first and then go out and vote. But then nobody's got the crystal ball. I know that mine is in the shop. It's been there for quite a while. They can't figure out what's wrong with it, but I don't know what's going to happen to Social Security in the future. And you really can't control what the government's going to do, what anybody else is going to do. But you can take control of the things you can control. And that is. That's right. Save how carefully you craft your own retirement income strategy. And that really is I mean, it's so much more about retirement income than it is about one big nest egg money, one big, huge amount that you're left with because that income is what is going to get you through each and every month. And having that steady stream is so important.

Mike Zaino:
Yeah, it is. And you know, people say, you know, my you know what? What is your job on the show? Well, you know, I like to educate people. But, you know, part of my job is not necessarily to be your friend. I'd like to be your friend. But what I really want to do is, is shake you a little bit, rattle your cage a little bit, and get you to wake up. Okay? Wake up America, please. All right. Do you want to wait and see what the market is like and find out whether or not Social Security can actually pay after you decide to retire? I think a much better idea is to get started on your retirement income plan. Now, why? Well, so that you can relax and you can focus on what you're going to do with your paychecks and more importantly, your play checks that you receive each month in retirement. I think that is a much better course of action, don't you, Matt?

Producer:
Definitely. And if you want to get started on that course of action, which I would encourage, go to Money Matters with Mic.com that's money matters with Mike all spelled out.com or call Mike Zaino at (704) 560-1573. We'll give you those numbers again before the end of the show, which is just in a couple of minutes. But in our last couple of minutes, Mike, I wanted to have you go through kind of the basics of what that initial meeting and the full consultation, what all that's like when people do reach out either via the website or the phone number.

Mike Zaino:
Yeah. So I mean, somebody contacts me, the first contact is just going to be an introductory call. You know, I'll tell you a little bit about me and my credentials and my background and how I think I might be able to help you after learning about you and your current financial situation, as well as what your goals and what your objectives are. And then, you know, if we decide to dive deep, if we decide to have a follow up, then we're going to go deep. We're going to provide a comprehensive consultation, again at no cost to any of our listeners. And there's also no obligation. You'll only work with me if I can do better for you. Okay. So I'm going to look. And analyze your current financial situation as you currently have it. Okay. I can help you discover how much you're paying in fees, because you may think that the fee listed is all the fees that you're paying, and I can promise you it is not okay. I can help you cut any unnecessary costs out of your IRAs, your 401 S, or any other type of retirement type accounts. If you're of the age for Social Security, I can help you with Social Security maximization planning. If you are of Medicare age, we we've said it multiple times on our show, especially leading up to and through the APY or annual enrollment, um, you know, time of year that we can help you with Medicare as well. Bottom line is, is we're going to compare your situation to what is possible if you work with us at Money Matters with Mike, because, you know, we don't take the fact that it is your money lightly. It is important to you and therefore it is very important to us.

Producer:
MoneyMattersWithMike.com once again is the website MoneyMattersWithMike.com or 704 5601573. Well Mike, as I can see by the old clock on the wall, it is time for us to go. This time it has flown by this episode of the show. But tell you what, we've got plenty more to talk about next week and I am already looking forward to that. Sir.

Mike Zaino:
You know, I am looking forward to that too. But I am really looking forward to this evening when I will be in Athens, Georgia, watching our Georgia Bulldogs go up against a top ten rival in the Ole Miss Rebels, and hopefully we sail out of Athens later tonight with the victory. And I hope I don't have to eat those words, but I don't think I'm going to. So, you know, I know I'm going to have fun this weekend. Whatever you are doing, I hope you do it to the 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 financial and insurance expert who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit MoneyMattersWithMike.com or pick up the phone and call 70452601573 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. AmeriLife 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.

Sonix is the world’s most advanced automated transcription, translation, and subtitling platform. Fast, accurate, and affordable.

Automatically convert your mp3 files to text (txt file), Microsoft Word (docx file), and SubRip Subtitle (srt file) in minutes.

Sonix has many features that you'd love including automated translation, collaboration tools, world-class support, secure transcription and file storage, and easily transcribe your Zoom meetings. Try Sonix for free today.