The Top Financial Concerns of Retirees

3.29.24: Audio automatically transcribed by Sonix

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

Producer:
Nationwide's Peak 10 fixed indexed annuity is designed to help protect and grow your savings to generate income you can never outlive. Peak 10 also has an optional rider that offers an immediate 20% bonus based on your principal. Apply to your income benefit base. Call us now at (704) 560-1573. That's (704) 560-1573. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak 10 is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

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

Producer:
Welcome to Money Matters With Mike, with your host, Mike Zaino. Get set for a full hour of financial information and economic news affecting your bottom line. Mike works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for, and he can help you too. So now let's start the show. Here's Mike Zaino.

Mike Zaino:
What's up, what's up, what's up? It's Mike Zaino coming to you from 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 single week. And today we are absolutely bringing the heat again. On today's show, we are going to discuss the top concerns of retirees today, and then how seeking help can help you improve your plan as well as your life in retirement. As always, I have the distinct honor and privilege of being joined by the one and only. My co-host and producer extraordinaire, Mr. Matt McClure. Matthew, how are you today, sir?

Producer:
I'm doing great. Mike, I know you just got back from a little trip out west and I came back all in one piece, so I'm glad to see you again this weekend.

Mike Zaino:
I had an opportunity to go skiing with a few of my friends in Utah, and that was an absolute blast. And yes, thank God I was able to come back in one piece. In fact, I did not fall one time this time and it was a successful trip. I learned a new phrase um, I'd never heard of Thunder Snow before, and we were caught in a couple of days of thunder snow and it probably dumped, I don't know, a foot and a half on us while we were there and made for epic, uh, powder conditions out there. Wow.

Producer:
I mean, you would think that in late March you'd be done with the snow, let alone the thunder snow. But, hey, it's, uh, good, I guess. Makes for good skiing weather after at least after it's, uh, come and gone.

Mike Zaino:
Yeah, it gives me a chance to kind of recharge and my batteries and focus on the important things in life, which obviously is family first, but then taking care of my clients any way I can possibly do that and being able to recharge those batteries, I think for anybody who's in business is a very, very important thing to schedule.

Producer:
Yeah, you need to do that and you need to, uh, yeah, just make time for yourself. That is, uh, so, so important. Reset, recharge all of the above. That's absolutely right. And, you know, speaking of of scheduling things, uh, we want to tell you that you can schedule a free consultation with Mike Zaino. We'll tell you more about that as we go along here. But, uh, of course, we want to have you go to the website. That's MoneyMattersWithMike.com. MoneyMattersWithMike.com. You can check out past episodes of the show, subscribe to the podcast there as well. And, uh, link to us, you know, on YouTube and on Facebook and all of the above. Just remember, once again, MoneyMattersWithMike.com. Or you can give Mike a call 704 560 1573. That's 704 560 1573.

Mike Zaino:
And folks, feel free to text that number as well. That number is my personal cell phone number. It is the only telephone number I've had since 1997. So if you want to just shoot me a quick text and say hi, let me know what you're thinking about the show. I'd love to hear from you that way as well.

Producer:
Yeah, absolutely. And of course, Mike would love to meet with you, discuss how he can help you reach your financial goals and help you with retirement planning, things like risk management, uh, a whole lot more as well. Uh, building sound financial plans is what he does for our listeners. Once again, you can go to MoneyMattersWithMike.com and reach out via the website. Well, of course, as you said, Mike, at the top of the show, uh, we are going to talk about the top concerns of retirees in America. These are from a recent study that was done by a couple of big organizations, and surveyed a lot of folks to find out what their biggest concerns are, uh, for retirement. And we'll actually share some solutions to those issues. We don't just want to present a bunch of problems and then leave you with that doom and gloom feeling. You know, we're not going to play the part of the lump of coal in your stocking on Christmas here today. Uh, we are going to help and show you the light at the end of the tunnel and, uh, give you some solutions to those. Also, you're going to talk about a, uh, kind of just hang in there. Retirement. You've seen that poster. What is it with the of the kitten hanging on to the the rope or something? I like a motivational poster in an office. It's like, hang in there, but we want you to not just hang in there, uh, because we want you to take action, improve your retirement scenario, improve your future, financially speaking. And, uh, we're going to talk about that. Also discuss longevity risk. We've got some cost cutter tips for your retirement this week as well. So a lot a lot to get to over this next hour of the program. First, though, let's get some inspiration for our conversations today as we get our quote of the week.

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

Producer:
And this week's quote comes from a very rich human being, a very successful business person as well. Very innovative guy. Uh, no matter what you you might think of him, he's also becomes sort of a polarizing kind of a guy here over the last several years. Yeah, but it's Elon Musk who said this at one point in time. He said, quote, I think that's the single best piece of advice. Constantly think about how you could be doing things better and questioning yourself. Hey, I can't argue with that at all.

Mike Zaino:
You really can. And when you talk about an individual, the word that you chose polarizing? Absolutely correct. Some people love him, some people hate him. I just respect the work ethic. The man works over 100 hours a week. He's developed multiple multi-billion dollar net worth companies, and I don't know very many people who have that track record. But, you know, when we apply that quote to kind of talking about saving and investing and finances, um, doing better financially, it involves you adopting a whole bunch of different types of strategies, as well as establishing really good habits that can help you manage your money much more effectively and then grow your wealth over time.

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

Mike Zaino:
Things that we mention on this show all the time, like creating and sticking to a budget that allows you to track your income and your expenses, and helps you to identify areas where that you can save a little bit more and allocate funds towards your future financial goals. Um, contribute to a 401 K or other type of uh, employer sponsored plan or any other type of retirement account. Right? Managing debt, paying off your your high interest debt like credit card balances. That helps you free up more money to save and invest and prioritizing the debt repayment, right. Things like continuously learning and keeping yourself informed. One of the great things that our listeners are doing is listening to this show helps them, you know, prepare a little bit more for retirement. We want you to stay on top of the different types of investment strategies and economic trends that help you make much more informed decisions about your money. And so, of course, you want to set financial goals, and of course you want to diversify, right? And of course you want to seek professional advice, because consulting with financial professionals, with tax professionals or other investment experts can provide valuable insights, much needed guidance, okay, tailored to your individual financial situation and goals. But one of the things that he's pointed out Elon did in his quote was, you know, questioning yourself and constantly striving to improve. Well, if you question yourself and constantly strive to improve your retirement nest egg, that's largely, hugely important because of some things that we're going to talk about in this show. Number one being longevity risk, what people are living longer today, which means that retirement savings guess what, folks? They need to last longer as well.

Mike Zaino:
And so reassessing on a regular basis, improving your retirement savings can help ensure that you have enough funds to support your lifestyle throughout your retirement years, no matter how long you live. Well, what about that silent tax that I know we've talked about a lot on the show called inflation. Well, what does that do? Over time? It erodes your purchasing power. And by regularly reviewing and then adjusting your retirement savings as well as investment strategies, you. Can mitigate the impact of inflation and still maintain your standard of living in retirement. What about economic uncertainty? We've got a little bit of that going on right now. Economic conditions can change over time and that can affect investment returns. Returns rather as well as retirement planning assumptions. That's the worst thing you can do is assume we all know what that stands for, right? Okay. By continuously evaluating and adjusting your financial plan, that can help you adapt to changing circumstances and protect your retirement nest egg from unexpected events. We talk about being fluid and being proactive instead of reactive, and then you just want to make sure that your goals are ever evolving because goals and priorities change over time. What's important to somebody in their 20s is likely not as important in their 40s. 50s and 60s, right and beyond. So, you know, due to factors such as career changes, family dynamics, lifestyle preferences, regularly questioning yourself and revisiting your financial plans simply ensures that your retirement savings strategy remains aligned with your current goals and circumstances. So all of these things that I've just mentioned, you know, tie in to Elon Musk's quote about just constantly striving to do better and always questioning yourself.

Producer:
Yeah. And that is I love that you highlight that part, especially because I think that's the most important thing is, you know, questioning yourself, reviewing things, making sure that as you say, things are updated and and align with your current, uh, needs and wants and wishes, especially when it comes to things like, you know, estate planning, things like that, making sure that all of that stays updated. That's part of what we talked about last week in our sort of spring cleaning episode, where we're talking about making sure that your beneficiaries are updated, that you have, um, you know, anything else, uh, in your will or your trust or whatever that is part of your estate plan. Establish one if you don't have one, and if you do have one, revisit it and make sure that it's all updated because that's all part of it. It's not just a set it and forget it kind of thing. You've got to constantly be going back and reviewing because, you know, life happens and things change.

Mike Zaino:
Life happens. And that is the one thing constant is change, right. So again, much better to be prepared, uh, for things that come and, uh, you know, have a plan in place.

Producer:
Yeah. 100% better to have a plan than not. That is for certain. Well, um. All right, so let's get into kind of the meat of today's show after our meat on the bone segment there. Uh, we've got the top concerns of American retirees. This is according to a study done by Corbridge Financial and the Longevity Project. They studied, uh, almost 2300 US adults to find out their concerns about retirement. And we also took some, uh, some numbers from the Corbridge 2018 study on retirement concerns to kind of compare and contrast where things are now versus where things were, uh, just a little over five years ago. And, um, we also, you know, have some additional stats in here that we're going to be talking about. But the top three retirement concerns are what we're going to concern ourselves with today. And number one is that 66% of respondents to this latest study, they fear running out of money more than death itself. And that's up, mike, from 59% in 2018.

Mike Zaino:
Yeah, I mean, just think about that up 59% since 2018. Well, we've had a few things right that have happened since 20, uh, 18. What has happened? Well, we had Covid and then we had, uh, you know, that lasted for a few years before the actual end was declared. And then we had 2022, where the market saw between a 20 and 35% decline in bonds, lost 15%. And so as a result, a lot of folks lost a lot of money. And now, you know, they're thinking, heck, is my money going to last me as long as I need it to last? Because when you lose money, a lot of people think, hey, if I just gain that same percentage back, I'll be back to even. And that's not the case. When you lose, you have to gain much more just to get back to even. In fact, if you lose 30%, you got to gain 43% just to get back to even. So, you know, when's the last time the market returned 43% in a year? Um, uh, never. Okay. So it's like, whoa, you know, if this is something that concerns you, then we recommend creating a very strong income plan for retirement. That includes a thing that we call a personal pension. And you fund that by using a fixed indexed annuity. So if you have think about this, if you have contractually guaranteed income for life, you're going to be much less concerned. Right. About running out of money because you know that that money is going to last you as long as you live. And if you are not sure how to get started with a fixed indexed annuity, guess what? We work with multi-billion dollar companies, highly rated companies that have been doing this since before most of our listeners were in diapers. So, you know, picking up a phone and giving us a call is a great start to setting up your own personal pension.

Producer:
That's right. And 704 5601573 is that number (704) 560-1573. And as Mike said you can also text the number as well. That is his cell. So text that MoneyMattersWithMike.com. You can go to the show's website and reach out that way also. And yeah I mean according to this survey, Mike, this is not just a concern or a fear of, you know, say the baby boomers. It's actually a concern of multiple generations. And as a matter of fact, you might be a little surprised. Gen X, they're the ones really talking about this the most. Seems like.

Mike Zaino:
Well, yeah, the Gen Xers, I mean, I'm in that generation. I'm 53 years old. I'm in the prime earning years of my life, as most people who are in their 50s and early 60s are. You know, traditionally the longer you work, the more money you make. But the money that we're making may not be enough to sustain us if we're living well into our 80s, 90s or becoming centenarians. So, you know, the highest level there is cause of concern expressed by Gen X, and that's followed by baby boomers and then millennials. Okay. Which are the the. Generation right before us and the generation right after us. And the thing that I found, I guess most astonishing is that Gen Z. That's the the people who are in their young 20s right now. Right? They're the only generation to say they fear death more than running out of money. That that was a little shocking right there. But I guess it's because they're so young and they haven't had a chance to really get out and live life yet.

Producer:
Yeah, that's very true. And, you know, I mean, it's the only generation though, so just that small, uh, comparatively small section of, uh, the American public, demographically speaking. Uh, really, uh, sharing that concern rather than running out of money. That says a lot. And, you know, I mean, there's the the thing is, as you talked about, uh, the personal pension, we've been talking about pensions here lately. It's been in the news. I mean, you know, I talked about IBM, uh, bringing back their pension plan. The federal government offers, uh, pension plans for, uh, federal employees, uh, also a few big corporations. I think Coca Cola is one of them based here where I am in Atlanta. Um, and a few other big corporations still offer pensions. But if you want a pension, guaranteed income for life, chances are it's up to you to do that and to to use a fixed indexed annuity, uh, to get you there.

Mike Zaino:
Yeah. And if you're if you're one of those people that fall into the 13.5% of of folks in America who actually do have a employer sponsored pension plan, then kudos to you. You can also set up a personal pension. And even if you don't have a pension afforded to you by your employer, guess what? You can set up your own personal pension plan. You don't need to work for the government or one of those few companies that still offers pensions in order to guarantee income for the rest of your life. Just pick up a phone, text, email however you want to get in contact with us, and we can start you well on your way. Uh, to a much more secure financial future.

Producer:
Yeah, and MoneyMattersWithMike.com once again. Is the website there? All right. So concern number one. Not surprising to Mike or myself anyway. Uh, the number one concern of retirees fearing losing money or running out of money rather in retirement more than death itself. Concern number two. According to this survey, 58% of respondents said that losing their independence. Mike, that is their top concern in retirement.

Mike Zaino:
I think that's probably my top concern, right? I mean, obviously I'm in the financial profession, so I don't fear losing money as much because I've taken the steps to put a plan into action. And I'm very confident in that plan. But, you know, losing my independence, losing my mind, okay, that is what fears me the most. And if, you know, I think the. Fact of that underscores the importance of having a smart health plan for your retirement. So whether that means living a healthy lifestyle and exercising and staying fit and active and making sure that you're eating healthy and you're not just literally sitting on a couch all day watching, you know, Maury and and all the reruns of TV shows that aired 40 years ago, whether that's minimizing those habits that are damaging to your health, like I have definitely made a start in doing in a family pack of Oreos is no longer a force serving, um, pack for me. Uh, I've actually cut out Oreos all together, you know, and I think ensuring that you are covered by the proper health care plan. So for those of you who are over 65, of course, we're talking about Medicare. If you're not covered under an employer sponsored plan in retirement and then being backed up by the protection of a good long term care product, because a lot of people think that Medicare will cover things like assisted living and nursing home care. And the fact of the matter is, it does not.

Producer:
Right. Absolutely. I mean, that, uh, anytime we talk about Medicare and we usually do that to kind of toward the end of the year when we're at the annual enrollment period. But yeah, there are, you know, a lot of things that a lot of people think, sure, that's going to be covered by Medicare, but no, uh, that is not one of them. Long term care of any sort is not covered under Medicare. So you got to have a plan for that. And that's one of the reasons that losing people's independence is their top concern about retirement. That's our concern number two. Now concern number three from this survey is being a burden to family. Kind of goes hand in hand with number two there. As 52% of survey respondents say that they are concerned about becoming dependent on their loved ones as they age.

Mike Zaino:
Yeah, yeah. And you know, like you said, it kind of goes hand in hand with number two. I mean, I've said this before on the show, I weigh about £225 on A59 frame. Um, my wife is very, very fit and she's strong, but she's not lifting £225 much less in 25 years to 30 plus years. Right. She's not going to be able to do that. So you can help alleviate this concern by having a strong retirement plan that improves guaranteed income so that you're not having to rely on other people, but then also making sure that you have a proper estate plan, because that can help ensure that your family and loved ones are taken care of as well as you. If you ever have to have any of those care protections in place like in-home living or in-home nursing, assisted living, or full blown nursing home, and then planning ahead can help minimize taxes. It can also help establish a lasting legacy, if that's important to you, and wanting to leave an inheritance for your beneficiaries, that is what planning ahead can help you achieve. So, you know, again, we've said this before hope is not a strategy, folks. You can schedule a no obligation consultation. And guess what? You can do it today. And that's a $1,500 value that's provided for our listeners at no cost whatsoever. And we can take a look at all of the personal pension options that are available in the FIA marketplace, and we can help you choose the option that best fits your needs.

Producer:
Absolutely to get in touch this it can schedule that no particular station consultation strictly matters with Micah is the website. You can also call or text 704 5601573. That number one more time 704560 1573. Mike will help you build and navigate a financial plan that is tailored for you. And you know the point of the of the entire sort of discussion here, Mike, is to encourage listeners not to just kind of hang in there. You know, there may be putting money in into their 401 K, they may have an IRA, they might have, you know, a savings account that is drawing more interest than it was, but still not a lot these days. Yeah.

Mike Zaino:
And no doubt, especially when over half, 57% of the folks that we talk with don't believe that their current retirement investments will provide income for more than 20 years. I mean, that is hanging in there if I've ever heard it right. If more than half of the people don't think their retirement money is going to last them for longer than two decades, please don't just wait and see how long your money lasts, because you can start building a plan with a licensed professional who can help you turn your hard earned dollars that you've saved, you know, into grandkid income. Okay, so again, give us a call today. An individual's retiring this year might need their money to last for three decades or even longer for that longevity risk that we talk about is one of the main reasons why so many people are concerned about running out of money in retirement.

Producer:
Yeah, 100% correct there. And let's talk about longevity risk here for a moment. If we if we can, while we're on the topic. I mean, that really is, you know, kind of the possibility or the risk of living longer than expected and living longer than you anticipate. And so that does, you know, increase that chance of if you don't have a proper plan in place anyway, running out of money before you, you know, run out of lifetime.

Mike Zaino:
Yeah. I mean, think about Social Security to start with. When Social Security first came into existence, the average life expectancy was 58 years of age. You were supposed to have been dead for four years before you could even start to claim Social Security. And back then there were three people paying inhibitor for every one person taking a nap. Now we've got people living where it into their 90s. You sign beyond any of that life expectancy up rise your retirement to just account for, I don't know, potential three year plus retention. Right. And so that you would know you know when we get that to social 60 promotes it just wasn't promoted for that type of to go to long term and all dissonance okay true. Then think about living your retirement savings. The low that do you live. Well higher risk we have of depositing your entire retirement nest egg. If you don't have guaranteed income sources in place, things like health care costs, right? The rising cost of just getting basic health care needs can significantly impact retirement finances. We've talked about it before that the average couple just for health care needs to have over $300,000 earmarked just to make sure that their health care expenses are taken care of. And then please don't forget about inflation. We you know, we've talked about that a couple times. I alluded to it, you know, in the meat on the bone segment and then market fluctuations, we have no control over what happens locally, regionally, nationally or internationally. But all of those things, anything that you hear going on in the news, has the potential to negatively affect your retirement nest egg, okay. It can erode your purchasing power. It can just decimate your retirement savings over time. So the reality is, is that people feel much more confident when they know they have a plan in place. And that way when things happen, they're like, don't worry, I've got a plan in place for that. And so it just gives you that peace of mind that you absolutely cannot put a price tag on.

Producer:
Yeah, that that is 100% priceless. And I will say, you know, that's a thing that I'm a big advocate for. Number one is controlling the things that you can control. Because as you just said, there are so many things that we can't control in life. So take control of the things that you can. And number two, have a plan. Because if you what is it? If you fail to plan, you plan to fail, right? So have a plan in place and plan for, you know, whatever might happen so that no matter what does happen, you are secure for the rest of your life and into your retirement years.

Producer:
I'm picking up. You're listening to Money Matters With Mike visit. Matters with Mike comm. Good vibrations. Welcome to Nationwide's Peak 10 fixed indexed annuity, designed to help provide guaranteed income for life. Peak 10 offers protection against market losses, plus protection for a spouse through a joint option and an immediate 10% penalty free withdrawal. Call us now at (704) 560-1573. That's (700) 456-0157 three. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak 10 is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio.

Producer:
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 about stuff.

Producer:
Here's the cost cutter of the week.

Producer:
And we actually have several cost cutter tips for you this time around. Um, to help make your money last. Um, this number one on on our list of, you know, things to help make your money last Mike, is something that, you know, a lot of retirees do, a lot of empty nesters do, whether they're retired or not. The kids, uh, grow up. They move out of the house, and you're left with a big house. And, you know, two people probably, maybe even just one person living in that house. And, um, you know, I don't need all this space, and I don't need that huge mortgage payment anymore. So, number one is downsizing your home.

Mike Zaino:
It is. You know it. It amazes me sometimes when I see a couple or an individual that's building their home of their dreams, right? And their home of their dreams is actually bigger than the house that they raised their family in. And I just scratched my head and thinking to myself, well, that's extra heating costs. Extra cooling costs, probably the same water, right? Probably less water because you don't have anybody living there. But I mean, the cost to build the fact that there's still a mortgage unless you can pay cash, but, you know, selling a larger home and then moving into a smaller one can help boost your retirement savings. And many retirees choose to downsize, uh, to like a ranch style home, which eliminates regular trips up and down staircases. I've even seen, uh, a trend in our area, especially toward the coast, where people are having elevators installed into their homes. And a lot of people don't realize that they're really not that expensive. And if you have the ability to add one and you are, uh, somewhat, uh, discomforted by going up and down stairs because your, your knees, your hips, your ankles are just bothering you, then that could be a viable solution for that as well. And we like to recommend relocating to a location where your children, your grandchildren, and your family and friends will want to come visit you, such as the beach or the lake or the mountains. And that'll help nurture your social life and prevent expensive and taxing cross state, as well as cross country trips to avoid or excuse me to visit loved ones, not avoid loved ones, but visit loved ones.

Producer:
I might be some loved ones that you want to avoid, but yeah, these are the ones that you want to pay a visit to, to you. And you're. And you're absolutely right. I mean, you know, that that, um, it helps your, your, your mental health as well when we're talking about, you know, being socially active, seeing your friends and your family on a regular basis and living somewhere that they want to come visit and or living, you know, somewhere that's close to them, where you can all visit each other on an even more regular basis. Boy, that, uh, will do a lot for your mental health and your attitude and really affect your physical health in the end as well. Um, okay. So number two, in our cost cutters here to help make your money last throughout your retirement, continuing to invest. Now, you might say, okay, how's that a cost cutter. But if you are continuing to invest, you are actually building your money. You're building your nest egg, you're building your income, uh, perhaps for retirement, depending on the type of investments that you have and, and what you are putting in place.

Mike Zaino:
Absolutely. I mean, despite uncertainties with Social Security investing in the stock market over the long term, and that's the key over the long term can provide significant upside growth potential. So check out our previous episodes or give me a call (700) 456-0157 three. Just to learn about how you can maximize your contributions, whether it's to your employer sponsored plan or to your IRA, or to your personal pension plan. And if you are 50 years of age or older, definitely give us a call so that we can help you take advantage of what are known as catch up contributions. And that benefit is only available to those who are at least age 50 or older and are still working.

Producer:
Yeah, and that can mean a world of difference to you. You know, you might not have as much time as you would have previously to let you know. Compounding interest have its effect, but you can really boost your retirement savings and investments there by using the taking advantage of the catch up contributions, really increasing the amount that you're putting in those accounts and, you know, giving yourself the best opportunity to have more money when it does come time to quit and leave the workplace because you want to and, uh, you know, because you want to spend time with those family members we were just talking about. All right. So another, uh, sort of, uh, tip here, if it is something that you want to do again, you know, this is one of those situations you don't want to be in if you have to, you want to. This is a if you want to or if you can kind of situation work longer.

Mike Zaino:
Yeah. I mean by staying employed, whether that's full time or even part time, you can provide additional income to cover those rising expenses like housing and food costs and utilities and health care, without actually depleting your retirement savings too early. And so there are a lot of people who voluntarily choose to unretire just for a few years into retirement, because they actually miss the social aspect and the personal fulfillment of working alongside other people. It helps keep you, you know. Socially, mentally, physically engage. And that engagement does well for your overall wellbeing. So try to make it to your full retirement age, which for most of our listeners is going to be their 66 to 67. Okay. And in order to maximize your benefits from Social Security and avoid dipping into your retirement nest egg savings too early, because if you reach in and start hitting it, you know, uh, as soon as you're eligible to hit it, which would be 59.5 for some people, that becomes very, very addictive, almost like crack cocaine, right? They hit it one time and it's like, ooh, that felt good. Right? And so they hit it again and they hit it again, and then they hit it again. And that addiction comes in. The next thing you know they go to hit it again and they're broken out of money. And that's the situation that we want to help you avoid.

Producer:
Yeah 100%. And you know I know to crack that that's it. That's it. And uh, you know, I mean, it's true because a lot of people can get addicted to things like that on the, um, you know, especially as easy as it is to do this today, the, you know, the retail therapy kind of, uh, scenario where you, you know, you buy something online and, uh, boy, that that feels it feels good to walk up to the front porch and see that, you know, box from Amazon or wherever. And, um, you know, then eventually that can just really get out of hand. If you do that and buy things you don't need and you find yourself on that hoarders show or something, you know, it's a situation you don't want to be in. No.

Mike Zaino:
And in fact, I mean, I have a few clients that if they if they were Transformers, right, their name would be Amazon Prime.

Producer:
There you go. I can't imagine what that transformer would look like. It would just be all Amazon boxes is like the legs and arms and stuff. Uh, but anyway. So yeah. So there you go. That is, uh, something to definitely, uh, avoid, uh, those, those different types of addictions that we just discussed. Uh, our last cost cutter tip here is a good one, because it is really the bread and butter of what you do every day, Mike. And that is seeking financial advice.

Mike Zaino:
Yes, okay. Consulting with a licensed professional and getting a second opinion. Like even if you're in good shape and you have a financial advisor and you're doing well, it's always good just to let a second set of eyes view your situation and give you that opinion, that second set of eyes on there, because that will help you make sure that you are making the most informed investment decisions that will impact your future self. Right? We've always said you want your future self to kiss you and not kick you. And so many people, so many people make the mistake of thinking that it is just way too expensive to work with a licensed professional, but in many cases, we're actually able to save people money by helping them make the right decisions and get into the right types of allocations for their time horizon, for their appetite for risk, ultimately put more money in their pocket in retirement.

Producer:
And that's why this is on the list of of cost cutters here. Because you might say, oh, well, I'm going to if I, if I work with a financial professional, does that mean I'm going to be, you know, spending money to work with them and all of that? Well, here's the thing. The consultation is absolutely free of any cost and any obligations. So no, initially, and also by helping cut fees and making sure that you are in a much more cost effective, fee efficient, tax efficient strategy, or you can come out a whole lot better on the other side.

Mike Zaino:
Yeah. And we also recognize the fact that a lot of you have difficulty and you find managing your 401 s or managing the investments within your IRAs, you find it to be overwhelming at times, and sometimes even downright frustrating because you don't know what you're doing. Well, guess what I do. So schedule your no obligation consultation today so that I can help you with a complete 400 and 1KX ray or IRA x ray, and review your situation to help you make the most of those valuable contributions for your retirement. Again, that number is 704 5601573. Or you can go. MoneyMattersWithMike.com.

Producer:
That's right. Absolutely. The two places to go. Or you can actually email Mike as well. It's just Mike at Money Matters With Mike.com. Easy to remember. Um all right so while we're on the subject here, Mike of of uh, talking about those consultations and, and talking about how, um, you can help folks when they do meet with you. Let's go through five reasons. The top five, actually, that we have listed here and compiled about the top five reasons why people meet with you and how you can be of help to our listeners. Also, because, you know, I think a lot of people do, they feel a bit a bit nervous or a bit, uh, intimidated maybe by the idea of working with a financial professional. But it doesn't have to be that way.

Mike Zaino:
It does not have to be that way. In fact, I've told people, you know, on the airwaves before, if you don't want to come into an office and you'd rather do it, uh, from the comfort of your home, and you have a computer that has a microphone and a camera. In other words, if you've purchased that computer in the last, say, 15 years or so, then we can do a virtual meeting over zoom. Right. Um, I can meet you at a Starbucks if you want it to be less intimidating. But guess what? Retirement planning is hard. It is difficult. It is complex. It requires professional guidance as you look to build a plan that has to last 30, sometimes even 40 years. Folks. People call us every single week with their questions about budgeting, which I call a spending plan. It sounds less restrictive, right? Income planning, personal pensions, tax planning, health care planning, even estate planning. We we can help you with all of those, uh, concerns that you have in a financial professional can help avoid outliving your money. All right, by making informed social Security decisions and being prepared for all of those questions that I just mentioned here a second ago.

Producer:
Yeah. And another big reason, too, that people might, uh, get in touch is if they have, say, a windfall of some kind or an inheritance, you know, uh, old, uh, aunt Sally passed away and she had this big pot of money, and you were the favorite niece or nephew, and she left it to you, boy. Good for you. Now, what do you do with it? Right.

Mike Zaino:
I'd love to have an aunt Sally.

Producer:
Maybe you and me both.

Mike Zaino:
You know, and sometimes it's not an aunt Sally. Unfortunately, sometimes it's the spouse. And when one spouse has the relationship with the financial professional, um, you can almost bank on the fact that the surviving spouse is going to seek somebody else. So when you receive a sudden influx of cash or assets, that is going to require careful tactical financial management. And the best time to save money, folks, is when. You actually have some money. And we are pleased that so many of our listeners are seeking help. They want to make informed decisions. They want to build a more financially stable future for them as well as their families over the long term. And so if you happen to come into, you know, some unexpected funds, whether it's through death or whether it's through just some windfall or you win the lottery. We have a plan for that.

Producer:
Yeah. And we can help you come up with that plan that's tailored specifically for your needs as well. It's so important to do that. And of course, money matters with Mic.com. Once again, is the website. All right. So reason number three that people might seek out your advice and your, you know, seek that initial consultation or, you know, reach out to you. Mike is buying or selling a home. We talked about downsizing a little bit earlier. This kind of goes to that buying or selling a home, a business or some other type of property.

Mike Zaino:
Yeah. I mean, that's those are major transactions, right? They require very careful financial considerations. And a financial professional can help provide guidance on managing debt. For example, I see a lot of people who want to tap into their 401 K, uh, their traditional 401 K to pay off their house. And that doesn't always make the best sense. In some instances it does make sense. But in most cases, especially, uh, where most people's interest rates were if they refinanced over the last five years or so before the rates climbed, it doesn't necessarily make sense because they're not accounting for taxes for an example. Right. So, you know, guidance on the debt, the down payments, on aligning housing decisions with those long term financial goals. These are all things that need to be considered. And if you are a business owner yourself, so many business owners are really good at running their business. But they are terrible at preparing for what's next, what comes after the business. And a lot of people make the unfortunate assumption. We talked about assumptions, but they make an unfortunate, unfortunate assumption that their business will be their retirement. And the likelihood of that actually coming to fruition is much less than most business owners actually realize. So if you are a business owner, we can help you establish the right type of retirement plan so that you can pay yourself first. And you don't fall into the habit of putting so much back into your business that you forget and fail to save for your own financial future.

Producer:
Yeah, it can be so easy to do that. Knowing the business owners that I have known the focus so much of the time is on running the business and, you know, you yourself kind of fall by the wayside there. Unfortunately, especially future you, you know, you might be focused on present you, but future you uh, kind of can get neglected there. Reason number four that people, uh, seek out your advice and and your sage wisdom. Mike Zaino is life transitions. I think any big life event, uh, can lead to folks saying, okay, what are what do I do? This this affects my finances. How?

Mike Zaino:
Yeah. I mean, you can have a marriage, and sometimes two people are not equally yoked financially, right? You may marry somebody that's a couple hundred thousand dollars in debt due to college expenses. Okay, what if you have a baby or multiple babies and bring those children into the fold? Guess what, folks? Kids are expensive. Um, what happens if the marriage doesn't work out and you get a divorce? Guess what, folks? Divorce is expensive, especially if you've been married for over ten years. Or even if during your working years you switch careers, you change your job. Okay, all of these things come with different, uh, stresses financially, emotionally. Um, they are going to be, uh, situations that you find yourself in where you may need some help and some guidance, navigating through some otherwise choppy water. And so the financial professional, um, can help navigate those financial challenges. Uh, as far as estate planning is concerned, uh, and they can ensure your financial security as well for blended families. I know there and my wife comes from a blended family. It's kind of like the Brady Bunch, right? Where, you know, the mom has these kids, the dad has these kids, and they come together and now they have all the kids. So if you're going through some sort of life transition, now would be the perfect opportunity to check in on your financial health and then realign your strategy with your overall goals.

Producer:
Yeah. And then maybe, you know, you might be able to afford a, uh, to hire an Alice, you know, the housekeeper there. Uh, if you are a Brady Bunch type family like that, but you got to have a plan and that's got to be in your budget or in your spending plan, as as Mike likes to call it instead. Um, and then reason number five, this this goes to the sort of makeup of the family also either starting a family for the first time or expecting another child. That could be another big time. Because we talk about kid kids are not cheap. I'll tell you that.

Mike Zaino:
Kids are definitely not cheap. And you think it gets easier once they, uh, you know, become adults? Not always the case, right? Planning ahead for those financial challenges of raising a child can be downright intimidating. Okay? Families have life insurance needs as well as a lot of questions. And did you know that the average cost of raising a child to the age of 17 now stands at a whopping $310,605? And that's according to Brookings analysis. So, again, a financial professional can help, uh, with those college. Savings plans and balancing retirement planning with the other financial needs for the family. So if you don't want your golden years tarnished by financial stress again, you need to be prepared with a solid plan. So 704 5601573. The only thing stopping you is you from picking up the phone and dialing those numbers. Or by going to our website at Money Matters With Mike.com, so that we can provide you with a complimentary no obligation consultation.

Producer:
And it is that easy to do, folks, just the number or the website. And the number is, as Mike just said, 704560 1573. You can also go to MoneyMattersWithMike.com to sort of take charge of your retirement and your financial future today. And, um, you know, I mean, this is a free consultation that Mike is offering to our listeners. Again, as we said earlier, $1,500 value. Right? That's provided at no cost. And what do people get, Mike, when they give you a call or, or go online to book that, that free consultation? Yeah.

Mike Zaino:
I mean, whether you're looking to optimize your investment portfolio, you're looking to maximize Social Security benefits or figure out the alphabet soup that is Medicare, or you just want to create a comprehensive retirement plan. Our team is ready to assist every step along the way. And so the first thing that we do is we do a comprehensive analysis, and we will thoroughly assess your financial situation as you currently stand. We'll help you build a personalized plan that does align with what your goals, your dreams are for retirement. And of course, this is, um, something that is no cost. It's also no obligation. We'll look and evaluate all of the different types of fees that you may be paying, so that you can discover exactly how much you're paying in fees for the different retirement accounts that you have. And we'll help you identify any unnecessary costs and find ways to optimize your investments. And then we talked about Social Security planning, right. If you're unsure about the best time to for you, because there is no one size fits all to start taking Social Security benefits, we can guide you through that process and ensure that you make informed decisions based on, again, your unique circumstances.

Producer:
Yeah, and there are a lot of things, you know, that fall within those different categories to discuss. And and a lot of people really do say, uh, after those consultations, that there are several things that they find valuable in discussing. One of those being balancing risk and reward. I mean, you know, it's it's what is their particular risk tolerance, for example, how does age play into it? A lot of different aspects that go into into that and other things that people like to discuss.

Mike Zaino:
Yeah. And we've talked about risk and time horizons and in the past. Right. If you're somebody that's that's younger in your investing journey, you can afford to take a lot more risk. Why? You have a lot more time. And that's why investing in the stock market over the long term is amazing. But if you're somebody that's in that retirement red zone and you cannot afford to lose money, that's those five years immediately preceding and those five years immediately into retirement, then you need to be much more concerned. And now you need to look for a realistic rate of return for an expected amount of risk. So we'll help you navigate the investment landscape and ensure that your portfolio aligns with your risk tolerance, as well as your retirement objectives.

Producer:
That's right. And we also talked earlier about building yourself an income plan in the form of a personal pension. That's that's guaranteed income that you can't outlive. But that's really not the only, you know, thing that you might talk about as far as income goes. There could be several different sources of income. I know one thing might that you, uh, have talked about previously on the show is, you know, maybe an income property, for example, maybe some some other investments of that type.

Mike Zaino:
Yeah. No, I am a big proponent, a big advocate for multiple streams of income. Even beyond your 401 K, your IRA, your personal pension, or if you're fortunate enough to have an employer pension. Right. And a great way to do that is by having rental income where you have a tenant paying off of your mortgage, if you have a mortgage, or if you don't have a mortgage, that's pure cash flow coming in and, you know, having one, two, three, ten, however many properties that you can personally take care of that is an excellent source of retirement income. So, you know, whether it's, again, building the income plan, establishing the personal pension, maximizing social security benefits, talking about alternative investments and multiple income streams, don't miss the exclusive opportunity to work with our team at no obligation. So again, the number is 704 5601573. Call us this coming week or go to Money Matters With Mike.com to schedule your complimentary consultation, as well as your 401 K or IRA review.

Producer:
Well, very good Mike. And just in the last a little over five minutes left that we have here in the show, let's do a little Social Security talk just because, you know, just mention Social Security there and that list of different aspects of people's finances in retirement. And of course, Social Security is a big one that a lot of people rely on and a lot of people rely too much on, which is a lot of times part of our discussions. But, I mean, this is the closest thing that a lot of people have to a guaranteed, you know, sort of a pension, an income for life, but it's really facing some financial pressure and also some big potential changes coming up down the road.

Mike Zaino:
Yeah, I mean, Social Security and its future are going to remain a prominent topic as well as, um, be one of the platforms that is surely going to be a topic for the 2024 elections. Right. And and what's going to happen with Social Security? And how can they make changes? Because according to their, uh, their board of directors and the trustees that trust fund that funds Social Security is is going to go bankrupt in the year 2033 and not be able to meet but 70% of its obligations, which for people who are on fixed income to lose 30%, uh, overnight. Just like that. Um, that's a big, big, big red flag. And so, you know, when we look at the population that are aged 65 and over, that has grown nearly five times faster than the total population from 1920 to 2020. So we're talking about an entire century seniors. And those are considered age 65 plus now represent one out of every six Americans. So, you know, when we're talking about that great source of income for life, and I'm using air quotes when I say that that is facing some dire financial pressure. And some things definitely need to change in the upcoming future.

Producer:
Yeah. And one of the things that we have been, uh, checking on each week here as we talk about this particular topic, is one of the reasons why the, um, you know, Social Security trust funds are, um, running out of money. Uh, is the national debt. I mean, it just keeps on climbing here, Mike. And what are what are the latest numbers that we've seen?

Mike Zaino:
Yeah, as of as of, uh, yesterday, it's it's it's crossed over $34.6 trillion. Okay. Last week it was 34.5. The week before, 34.4. The week before that, 34.3. So folks we're talking about each and every single week we are adding $100 billion to our national debt. And so to address that, the US is likely going to have to do what cut spending. That's never going to happen. Or they can cut benefits for retirees and other Americans, or they can increase taxes, or they can do both cut benefits and increase taxes. And so when you look at things like excessive government borrowing, well, that can lead to inflation, which is going to erode the purchasing power of retirees, fixed incomes and savings. So folks, wake up, National debt is a huge problem. And you need to have a plan in place so that you don't fall victim, you know, and be one that's just left out in the cold because you didn't have a plan.

Producer:
That's right. And to get your plan underway to get it working, go to Money Matters With Mike.com. Money Matters With Mike.com is the website. You can also call (704) 560-1573. Well you come up next week on the show. Mike, a lot of great things that we're going to talk about. Uh, as a preview, some retirement regrets. There's going to be some new data that we'll share and some survey results about what people today who are in the retired generation, what they wish they had done differently when it comes to retirement, things they wish they knew is one of those. If I knew, then what I know now kind of situations. Um, we'll also talk about tax savings for retirees and pre-retirees boy, it's tax time. And we're going to share with you how you can lessen your tax burden. Not necessarily for this year, but definitely in the future. And we're going to help bust some common money myths in another game of right or wrong, as we put your financial knowledge to the test. All of that coming up next week on the brand new edition of Money Matters, with Mike coming up next weekend here on W re and on the podcast, all the major podcast channels you can find us there as well. Well, that's going to do it here for this edition of the show. Mike, I always, always appreciate you, sir, and we will see you again for all of those discussions and more next week.

Mike Zaino:
Matt, thank you for everything you bring to the table. I am already looking forward to next week's show. Hey listen folks, a personal thank you. Without you guys, we don't have a show. So from the bottom of my heart, I hope whatever you're doing this week. Again, 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 MoneyMattersWithMike.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.

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 secure transcription and file storage, powerful integrations and APIs, automatic transcription software, upload many different filetypes, and easily transcribe your Zoom meetings. Try Sonix for free today.