This week, Mike reveals how truly preparing for retirement means considering healthcare costs, income streams, and unexpected expenses, ensuring you’re not just snacking on financial solutions but enjoying a full feast! Embrace the wisdom of tackling problems head-on and learn how to build a robust retirement plan that will see you through life’s ups and downs. Why settle for appetizers when a full-course meal awaits?

 

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

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10.11.24: Audio automatically transcribed by Sonix

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

Speaker1:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker2:
Welcome to Money Matters with Mike, with your host, Mike Zeno. 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 Zeno.

Speaker3:
What's up people? Welcome to the show. I'm Mike Zeno, coming to you from Fort Mill, South Carolina. Happy Saturday. We've got a ton of great information for you today. And we are going to talk about solving common problems for pre-retirees and retirees and why an ideal retirement is actually closer than you think. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matthew, how are you doing today, sir?

Speaker1:
I'm doing great, Mike. I hope you are as well and have had a great week.

Speaker3:
Uh, I have been extremely busy this week. Last week I was in, uh, the left state out there in California in Monterey, enjoying some meetings on the green room at some bucket list destinations. I had a chance to meet with a couple clients as well, but yes, I have been recovering and paying for that week being gone this week. So digging out, as they say.

Speaker1:
Exactly. You got to do that anytime you come from come back from being out of town and kind of out of the fold for at least a few days, it can, you know, just put you a little bit behind. But if anybody is good at getting caught up, I know it is Mr. Mike Zeno here, uh, and helping folks solve their, their issues. Um, you know, regarding planning for their financial future planning, especially for their retirement. Of course, that's what the show is all about. And folks, we thank you for being a part of it and you are a part of it just by listening. Yeah. If you're like in the car, if you are, you know, headed out, doing some some errands this weekend, if you are listening to the podcast, wherever you are, just because you turned on the radio or pushed play, you are part of the show. And I will say probably the very biggest part of the show, right, Mike?

Speaker3:
Absolutely. You know, I absolutely love Matt meeting with, you know, callers who call in and actually set an appointment to discuss how I can help them reach their financial goals. Right. We can help you with no matter what those goals are, whether it's retirement planning, risk management, estate planning, and a whole lot more because building sound financial plans is what we do best.

Speaker1:
Yeah, and you can actually start along the road to getting a sound financial plan for you by going to the website. It's Money Matters with mike.com. That's all. One word. Money matters with mike.com. You can also, as Mike said call kind of do it that way if that is what you prefer. And Mike is one of those people who actually answers the phone. I know it's a rare thing these days. 704 5601573704560 1573 is the number.

Speaker3:
And one of the things I can promise you folks is you won't have to press one for English, and I, as a human, will answer the phone unless I'm in a meeting with another client, uh, you know, on a date night with my wife or adult daughters or taking some personal time, which is a rarity, but does happen just so that I can recharge and better serve all of my clients.

Speaker1:
You also won't hear listen closely because our options may have changed. You know, it's it's not that kind of it's very you call Mike and you'll actually get Mike Zeno on the phone. It's crazy. You can also hear a lot more of Mike Zeno, uh, talking about all things financial and and retirement planning as well. By subscribing to the podcast, you can get all of the episodes on the website Money Matters with Mike comm or wherever you get your podcasts. You can also find us on YouTube. Just search. Money matters with Mike. There we've got special content, weekly videos that are uploaded there as well, and you can find us on the socials, specifically on Facebook, where Mike does a lot of interacting with the listeners and, and folks in the, in the area and really around the world. I mean, you know, it's we're global here. We're not just local. We are global on money Matters with Mike. So there we go. All right Mike. So a lot of great stuff to get to here over this next half hour. You know we've talked about or you did kind of teed it up there at the top. We're going to be solving some common problems for pre-retirees and retirees. And those problems are not the thing that that are going to define you. We're going to talk about a lot about really how you overcome those problems and the solutions to those problems and how you go about solving those problems. That's the thing that matters, right? And absolutely, that's actually get some inspiration for that part of our conversation today with our quote of the week.

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

Speaker1:
And this week's quote comes from one of my favorite and the wisest people on the on the face of the planet. Anonymous. Um, anonymous said this one time start facing your problems head on. It isn't your problems that define you, but how you react to them and recover from them. I love that, and it's one of those things. Mike. I sort of try to live by a lot of the times. It's, you know, it's not the things that happen to us, but it's how we deal with them, in other words, that really do define us as human beings.

Speaker3:
Absolutely. Matt, you know, um, we've talked about that on our show many times before. You know, when when you respond to something that is positive, when you react to something typically negative, right? Think of a reaction to a medication that you take that gives you hives, right. Nobody wants those. But I think this quote is all about taking control of life, especially when things get tough.

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

Speaker3:
When it comes to preparing for retirement, this means being proactive and not ignoring all of the challenges out there, like figuring out how you're going to live comfortably once you stop working. It's not about the problems themselves, like rising cost of living or unpredictable markets, all right, but it's in fact how you tackle them and actually bounce back. That really, really matters now. You know, having a 401 K or a little money stashed away in a savings account is phenomenal. But here's the thing, okay. It's like bringing snacks to a potluck and thinking that you've catered the entire meal. Okay, sure. Those snacks that you brought, whether it's a 401 K or maybe you got some money in CDs, stocks or mutual funds. That's a great start. But a real feast, just like a comprehensive financial plan, needs a lot more ingredients. So a solid retirement plan should cover all of your bases, how you'll manage your health care costs, what your different income streams will look like, and how you'll handle those unexpected expenses. Once life throws that curve ball at you. And just having a few bucks in different places does not guarantee that you're going to enjoy your golden years stress free. Think of those individual savings vehicles like your appetizers right? They're tasty, but they are not the whole dinner. You need the full spread. You need an income strategy. You need to be preparing for taxes and retirement. You need to consider different estate planning needs and a whole lot more. Matt.

Speaker1:
Yeah. I mean, you you know, you. What is it? You shall not live on bread alone. It's kind of like that sort of a thing, right? It's like, you know, you've got to have the full, uh, the full gamut of everything that you need. And. Yeah, I mean, if you think about it, if you just eat snacks the rest of your life, if we're going to, you know, stick with the whole meal metaphor here. If you just eat snacks the rest of your life, that's not not probably not the healthiest thing to do, right? And you're not going to be getting all of the nutrition that you need to be as healthy as you need to be. Same goes with your finances. You've got to have that well-rounded diet, those full meals with all of the things that you need to get, all the nutrition that you need and you know, this is why. Dietitians, dietitians, and people who, you know counsel people on what to eat and all of that. This is why they exist. Because, you know, in America, a lot of times we, you know, sure, a Snickers bar tastes great, but it is not all of the nutrition that you need for your life.

Speaker3:
No doubt. I need a nutritionist and a dietitian on my team for sure. Because, you know, this boy likes to eat. But, you know, in context of his quote, I want to break it down. You know, when I say his Mr. Anonymous, I want to break the quote down, focusing on how to build a real retirement plan beyond just having a few accounts here and there. Now, this past week, I told you I was digging out. I actually had three different people contact me and explain to me that they were so far behind. And yes, they had pieces of the puzzle, but it was not a complete financial plan. You know, one person had a 401 K. Another one had a thrift savings plan. Another one had a, uh, an Esop, which is, uh, you know, when when the actual shareholders own the company and they do a, a participation plan there. And it was good that they realized that they had a problem. It's like the first step in Alcoholics Anonymous, right? The first step is admitting that you have a problem. So, you know, the first step here is facing those problems head on when it comes to retirement. Burying your head in the sand won't help you. Okay. The challenge is like wondering if you're going to outlive your savings or how you're going to have to deal with those rising health care costs. Those aren't going to just disappear because you ignore them, right? Facing these issues head on means proactively planning for them, not hoping they'll magically sort themselves out once you turn 65. Okay, it's not enough to say, hey, well, I got a 401 K, so I'm set, right? Matt.

Speaker1:
Yeah, that's absolutely right. It's like, you know, you've got to have more than that. It's that's a good start and a good part of what can be a comprehensive plan for your future. Um, and obviously we don't want to, you know, be, uh, saying that or be misinterpreted as saying that. Oh, well, 401. S are bad or anything like that. They're great. They're wonderful. But it's just part of the overall picture.

Speaker3:
Yeah. And it's not just about the problem itself. The real key is how you respond to those concerns. Okay. Reacting wisely means that you're willing to educate yourself. You're you're you want to seek professional guidance and then really understanding that you have to adjust as needed. Because just as I mentioned before, life is going to throw curveballs, those unforeseen expenses, those market downturns, inflation. Well, you are going to have to improvise, adapt and overcome. The more flexible that you're prepared to be, the better you're going to weather those financial storms and your retirement success will depend less on how big the problems are and more on how you tackle them.

Speaker1:
Yeah. And you know, talking about, let's say, a 401 K, for example, as you sort of teed up a second ago, or even, you know, even a savings account, for example, if you've got, you know, money that you've just been kind of putting away in, in a savings account for a long time, those are, again, great things to have. But again, just part of the plan really just just kind of the first step in having something that's a lot more comprehensive.

Speaker3:
100%, let's be real, folks. Having a 401 K or a savings account or stocks or mutual funds or real estate, that's a great start. But it's like owning a really good hammer if you're starting to build a house. Okay, just because you have a hammer doesn't mean the house is going to build itself. A 401 K is just one tool in your retirement toolbox, and it will not cover everything you're going to have to have a comprehensive plan that looks at the big picture. And here's where those tools might fit in. Right. So the 401 K is a great way for sure to save. But it's likely tied up in stocks or mutual funds or equities, meaning that its value can go up and it can go down with the market. Plus there are limits on how much you can withdraw. And then once you do withdraw them, guess what you're going to have to do? Pay the piper. Who's the piper? Uncle Sam, what do you have to pay him? Taxes. Right. Unless you're in, uh, a Roth 401 K and certain companies do offer them, and a lot do not. So, you know, there those things are things that you have to consider. And let's look at savings accounts and CDs. People like them because they are safe, right. But generally they offer extremely low returns. Those types of accounts are great for short term needs, but then inflation can eat into their value over time. And like I just mentioned with your 401 K. Stocks and mutual funds have higher potential for growth but also come with a lot more risk. So what if the market drops right when you are going to need the money? Right. So while all of those individual pieces are good to have they do not cover everything. And you know, things like what if you face high medical bills? What if your kids or your grandkids need help? Or what if you just want to travel, right. You may need to be thinking long term and start to diversify your overall plan. Yeah.

Speaker1:
I mean, get that, you know, go from just having the snacks to the full buffet here, right? I mean, it's you need to be diversified. You need these different types of accounts and different options to have this comprehensive plan. So let's talk about that. Let's talk about that big full feast. You know the big buffet of things that go into this comprehensive plan.

Speaker3:
Yeah. No doubt. So the first thing I want to talk about is the different income streams. Right. Besides your 401 K and besides Social Security, are you going to have other income sources like a pension? Like an annuity. Do you own real estate that's going to, you know, pay you passive income? Um, you're going to need to figure out how to replace your paycheck once you stop working. And here's a newsflash, folks. Typically your 401 K and your, your, uh, Social Security are not going to do that. Right. So that's one thing. Income streams. The other thing is healthcare planning. That includes long term care. Okay. Healthcare expenses will not can will skyrocket in retirement. And you need to budget for those Medicare costs, maybe some supplemental insurance and potentially long term care insurance like nursing home or assisted living because, you know, people are living longer, which means a longer retirement, which means your money has to last longer. And so a healthcare plan must be a key component of your overall retirement strategy. We mentioned a few minutes ago paying the piper. Right. Different accounts have different tax treatments okay. Some accounts, like a Roth IRA, allow you to actually take tax free withdrawals, while others, like most 401 K, 403 B and TSP accounts are fully taxable as ordinary income when you go to pull that money out. So you're going to need a strategy for when to withdraw from each account in order to minimize your tax hit in retirement.

Speaker1:
Yeah, it's a lot to think about and a lot that goes into it. And of course, there's even more that goes into it. But I wanted to take this moment to say, folks, if you, you know, are hearing all of these things, you have to take into consideration and you are like, oh my gosh, this just sounds overwhelming. It can be, but it doesn't have to be right? You can get help from a professional like Mike Zeno. He is the one that I would recommend that you reach out to. And you can do that at Money Matters with mike.com. Money matters with mike.com is the website. You can also call Mike at (704) 560-1573. That initial consultation is free of any cost or any obligation. You're only going to work together if you decide that it is best mutually right. It's a it's a two way street here. And, you know, I mean, there is a whole lot that goes into it. And just giving people peace of mind and taking a lot of stress off the table for them. I know, Mike, that is really what what gets you going every morning when the when the alarm clock goes off and you wake up?

Speaker3:
Matt it's literally why I do what I do. I made every financial mistake in the book because I didn't have the greatest examples of how to treat money. Okay. And so once I figured out that I was in trouble, um, I made a commitment to myself to learn everything that there was about it and to help as many people as I could not make the same mistakes that I made. Right. So that's why I do what I do. But to kind of you said there were more things and there are. And I do want to hit on a few of those. Um, because comprehensive plan includes things like estate planning, you know, you have to decide who gets what once you're gone. Right. It's more than just a will, and it involves making sure that your assets are passed on efficiently and with the least possible tax burden for your heirs and folks. We have folks on our team that are very well versed in estate protection. Okay. What about that nasty silent tax that we've talked about time and time again, especially over the past few years, called inflation? Guess what your money today day will not have the same purchasing power in five, ten, 15 or 20 years from now. So a good plan needs to account for inflation so your savings do not shrink over time. And then we always talk about the fact that life happens even in retirement. So whether it's home repairs, health issues, family emergencies you are going to need to have a cushion, an emergency fund to help handle those unexpected costs so that you're not having to pull from your retirement accounts. And then retirement just isn't all about money. Okay. What do you want your life to look like when you are no longer working? Are you traveling or what hobbies do you want? How much time do you want to spend with family? But guess what, right? All of that costs money. Unless you're just going to be sitting on the couch or on the front porch talking with family members, and your plan should reflect the kind of lifestyle that you hope to enjoy in retirement. Yeah.

Speaker1:
I mean, if you are planning on, as you say, you know, sitting around, sitting around the house and, you know, maybe sitting on the front porch enjoying an adult beverage on occasion, like if that's your idea of your dream retirement, which is which is great. If that's you, that's not going to cost us nearly as much as, you know, doing a lot of world traveling and going to Europe and, you know, traveling to Asia and Africa and and going to South America, Central America, Mexico, Canada, wherever you want to go. Um, you know, it's going to cost money. And so, yeah, you have to take that lifestyle that you want to live into account. And it doesn't have to be something like that is, you know, this overwhelming thing like we talked about a few minutes ago. And it doesn't have to be something that is just stressful. It can actually be a fun thing to retire to. To plan for your your retirement because it's, you know, if you're planning for the retirement of your dreams, that should be a fun process.

Speaker3:
Yeah. I mean, think about it like preparing for an adventure, right? You would not go on a camping trip and just bring along a sleeping bag, right? You'd need a tent, you'd need food, you'd need water. You'd need a map and a whole host of other things to bring with you on that camping trip. And retirement folks, is no different. Having a savings account only is like bringing that sleeping bag important, but it's just not enough. And a solid plan makes sure that you are ready for whatever comes your way with a lot more comfort as well as fun built in. And you know it's okay to kind of build a little humor when you're doing this planning. If you think of, uh, back when you were a kid, at least when I was a kid, I used to love to go out into the woods and build forts. Okay. And sometimes we built them in the house, you know, with pillows and sheets and stuff like that. Well, if you think of retirement planning as building a financial fort that's going to defend against life's unexpected hits, it's so much less stressful. And the more tools that you have, from tax planning to healthcare inside of your fort, the much more secure you are going to end up being in retirement. So please do not just rely on 1 or 2 things and assume that you are all set. Get the entire fort ready and then kick back and enjoy that well-earned rest.

Speaker1:
There you go. I love that and the whole, you know, building the fort thing, I think is a great way to think about that and really, you know, make it a little bit more fun and a lot, but, you know, potentially a lot more fun for, for folks. I remember I used to kind of do that same thing. I would, you know, I'd do it more inside the house. But, you know, like you were saying with like the pillows and the I would my this is kind of Funny, but my grandmother lived with us when I was a kid, and she used a walker. And so I would take her walker and put, like, towels over it. And that was like my, you know, part of the part of the fort that I would go and I would hide in, you know, and but it was, you know, however you need to do it, but there are a lot of different pieces that need to go into place to build that fort. Right? You got to have the, the different bricks for the wall and then, you know, but really knowing how to do it, knowing how to put all those pieces together is key. And that is where working with Mike Zeno comes in handy, because as a financial professional, somebody who does this each and every day for folks all across the country, really, um, you are someone, Mike, who can can navigate for people who, you know, might, may or may not know what issues they're even facing or what what the pieces are that need to be part of that wall of that fortress.

Speaker3:
Yeah, absolutely. I mean, the most of the people that I've been talking to you know, especially over the past month or two, are extremely concerned about stock market volatility, and they're wondering what to do with their investments during these uncertain times. Right. So we've been hearing much more concern about market downturns because folks feel like we are overdue for a correction and the election results or recent global conflicts could negatively impact, uh, you know, their overall portfolio and investments. And some are also concerned about the so-called October effect, which Investopedia defines as the psychological anticipation that financial declines and stock market crashes are more likely to happen this month. If you look at the bank panic of 1907, the stock market crash of 1929 and Black Monday in 1987, those all happened during the month of October. So, you know, it is natural for your risk tolerance to go down as you age, especially if you're in the retirement red zone. Those ten years immediately before and the ten years immediately into retirement. Um, and so if you have a buy and hold strategy, or at least that's been your strategy, now could be the right time to take some of that risk off the table. And I urge you just to get in contact with us and let us make sure that you're, you know, on the right path to a sound financial retirement.

Speaker1:
If you are concerned about that market volatility, there are solutions out there for you that can take a lot of that concern off of the table, at least for a good chunk of your overall retirement plan sort of picture here. And, you know, there are vehicles that can protect and grow your hard earned money. And Mike Zeno, of course, can tell you all about them when you give them a call. (700) 456-0157 37045601573. You can also go online to Money Matters with mike.com. Schedule a consultation there as well. And just a couple more minutes left in our time here together Mike. But anything that you wanted to add to that about, you know, sort of taking some of that volatility off the table for folks.

Speaker3:
Yeah, I mean, a lot of people don't just want to wait and see what the market is like when they're going to decide to retire, right. Um, they would much rather get to those guarantees in life and start planning what they're going to be doing with their paychecks, as well as play checks that they, you know, guarantee they are never going to run out of money. And we are huge fans of one instrument that's called a fixed indexed annuity, or FICA for short, because those fees are long term investments that both protect and grow the savings for retirement, you can make a lump sum deposit. You can transfer funds from existing IRAs or 401 S or any other employer sponsored plans. And the fact that your investments performance is tied to the market, but it's not directly invested in the market. So you don't therefore have to ride the ups and downs. You instead only participate in the gains and eliminate any chance of loss. Okay, that means you won't lose any of the money that you put into a fixed indexed annuity. And then once they are set up as a personal pension, that means it creates another income stream, okay, that you can absolutely never outlive. So folks absolutely love those things in retirement as a portion or a component. One of the tools in their retirement toolkit.

Speaker1:
That is great. And you know, one of those tools that can really help take a lot of that stress away. Just the stress will just leave your body when you get in touch with Mike Zeno, call him (704) 560-1573. You can also go online to Money Matters with mike.com. All right Mike, that's going to do it for this episode. But I appreciate you as always sir. And everything you bring to the table. And we'll do it again next time.

Speaker3:
Matt, thank you for everything you bring to the table. But most importantly, I'd like to thank each and every single one of our listeners. Without you folks, we do not have a show. If you learned anything today or think that any of your friends, colleagues, family members could learn or benefit, please share the show. Okay, so whatever you're doing this weekend, I hope you enjoy it to its fullest extent. And as always, make it a great day.

Speaker2:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free no obligation consultation, visit Money Matters with Mike. Com or pick up the phone and call 704 560 1573. That's (700) 456-0157 three. Not affiliated with the United States government. Mike Zeno does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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