On this episode, Mike highlights some important last-minute tax reminders. Plus, we review the results of a new survey on retirees’ regrets – and also what they love about being retired. Finally, we will test your financial knowledge in a new edition of Right or Wrong.
Call Mike today at (704) 560-1573
or Schedule Your Free Retirement Consultation at MoneyMattersWithMike.com
Check out Episode Highlights on our YouTube Channel



4.5.24: Audio automatically transcribed by Sonix
4.5.24: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.
Speaker1:
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Speaker2:
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Speaker1:
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, what's up, what's up? It's Mike Zeno 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 today we are absolutely bringing the heat again. On today's show, we are going to give you the ultimate tax guide for Pre-retirees as well as seniors. Plus, we're going to share what America's seniors love and unfortunately regret about retirement. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matt, how you doing today, brother?
Speaker2:
I'm doing great, Mike. I hope you are as well, sir.
Speaker3:
I am doing very well. This week was a very, very busy week. I had appointments because I do appointments in the evenings as well. I was working till 1030 on a couple of evenings this week and so I am looking forward to today after the show of cutting back, relaxing and then watching some some games on on TV tonight.
Speaker2:
Yeah, there you go. You deserve a break. After all the the hard work and the long hours this week. Definitely. And you know what it is? It is that time of the year where people have money on their mind. And that's what we're going to be talking about today as we do every week, but specifically talking taxes. You know, we've got some important reminders for folks, as you said there at the top, we've got some, um, tax strategies for retirement as well, things that you can implement to really reduce your tax burden when it comes to your retirement years. Some great, great stuff there to talk about because you know that there stands Uncle Sam with his hand out. Just want he's like that old poster instead of I want you. It's I want your money. Right. So so there we go. Um, but thank you for listening to us this weekend and every weekend here on WRI and also on the podcast, uh, online, you can get us anywhere you subscribe to podcasts. I'm talking Apple, Spotify, iHeart, uh, all the biggies. Anywhere you subscribe to podcasts, you can find Money Matters with Mike. Um, so go there and subscribe. We'd love to to have you do that. And that'll send our numbers soaring.
Speaker3:
Absolutely. And one of the things that I've noticed, especially over the past couple of weeks, is the engagement on the Facebook page. You can go to Money Matters with Mike on Facebook, ask us questions, comment on any of our posts, and we love hearing from our customers and clients and listeners on, uh, Facebook as well.
Speaker2:
Yeah, absolutely. And check out, uh, YouTube highlights of the show. Also, just go to YouTube, open up the app, or go to youtube.com and search Money Matters with Mike. Like us and subscribe to us there as well. Really appreciate that and don't hesitate to reach out to Mike via the website. Of course it's Money Matters with Mike comm. Money matters with Mike comm can reach out there with your questions or to, you know, get a free consultation obligation free as well. You can get that at Money Matters with mike.com or by calling Mike's own personal cell phone that literally millions of people have this number. So, uh, and here's the thing. It's not like, you know, I sound like an old guy. It's like these kids today who don't answer their phones. Mike answers his phone. All right.
Speaker3:
That is that is that is true, Matt. You know, and I love meeting with our listeners and discussing how I can actually help them reach their financial goals. Um, I can help you with anything from retirement planning to risk management, uh, estate planning, setting up your wills and your trusts. We have people on the team that help with that and a whole lot more. Because, after all, building sound financial plans for our listeners is what I do best.
Speaker2:
Absolutely is. And that number is 704 5601573 704 560 1573. And the website One More Time is Money Matters with mike.com. Well, of course we do have a lot of tax talk to get to. But even more than that we're going to talk about those retirement regrets. Yeah. New surveys showing what America's seniors are actually loving but also what they're regretting about their retirement years so far. Have you changed jobs. Well, if you have, we're going to tell you what you should do when you do that. Or maybe you're expecting a change. We've got our cost cutter tip of the week as well, and also a session of right or wrong to play, uh, boy, a lot to get to, so I'm not going to hesitate any longer because we have to get started on all of that to check off all the things on our list here. And we'll start by doing our quote of the week.
Speaker4:
And now wholesome financial wisdom. It's time for the quote of the week.
Speaker2:
And this week's quote comes from the one and only Will Rogers, the humorist and speaker performer. He said the only difference between death and taxes is that death doesn't get worse every time Congress meets.
Speaker3:
Isn't that the truth, Matthew? I mean, it's it's it's it's unreal. I mean, people in America get taxed on the money that they earn from their jobs. And then whenever they go and buy something, guess what? There's this thing called sales tax. So they're taxed on the money that they spend. And the money that they spend is already been taxed. You know, when they earned it by the federal, state and local governments. If you live in in one of those states that does income tax, and then because you bought stuff with money that you earned that had been taxed and you were taxed again at the point of purchase, they just see fit to tax you again and call it property tax. So it seems like every time our governments meet, they figure out a way to squeeze more and more and more of our hard earned dollars into their pockets. And, uh, there's something that we gotta do about that for sure.
Speaker2:
Yeah. There you go. I mean, it's, you know, it's all the different levels of of government. Get in on the action there. And, uh, you know, here's the thing. Anytime we we have some sort of a tax related discussion, nobody likes paying taxes. And I don't honestly think that anybody would mind paying taxes if we knew that we were paying our just our fair share and no more. And if we knew that it was all spent efficiently, which, you know, efficiency and, and, uh, you know, a lot of the activities of the government don't really necessarily go together. So so that's the that's the rub.
Speaker3:
That is definitely the rub. I mean, especially local taxes. Like I don't mind paying local taxes, but fix the dadgum roads, will you? I mean, come on, I've had to replace tires and rims because my family seemed to be magnets for all those potholes in the road.
Speaker2:
Yeah, I've been dodging the same potholes for quite a while myself now too. And so, yeah, fix the roads, people. That's that. We're good taxpaying citizens. And we want you to fix the roads. All right. Well, um. Okay. Speaking of getting taxed, we do have our, uh, list of tax reminders to share with our listeners. Mike, of course, we are counting down to April 15th, which is tax day a lot of years here recently. You know, that date has seemed to have fallen on a weekend or some other type of, um, situation where it's gotten pushed back to like, say, the 18th, 17th or 18th. Seems like, uh, tends to have been the trend. But this year, do not delay your tax filing. It must be done by April 15th. And the number one thing that you need to do if you have not done this yet, we first of all, you needed to get it done like yesterday. Secondly, if you haven't, make sure that you have gathered all of those documents.
Speaker5:
No.
Speaker3:
Doubt, because you know, companies are required to send you those documents by the end of January of the year that your taxes are due. And if you're just now waiting until, you know, April, the beginning of April and you've got a week and a half, two weeks left until the deadline, you need to make sure that you're going out of your way to make that a priority. Collect all of those necessary documents for filing your taxes. And those, of course, include all of your W-2 forms. If you're an independent contractor, your 1099 forms. If you're drawing Social Security, you need to bring your Social Security statements. Any other income related documents. You absolutely have to make sure that you have every single one of those, uh, in place. And then also you needed to have hopefully you've already done this, but kept track of all of your medical expenses, any charitable contributions, including ties and all other potential deductions, so that you can hand that over to your CPA so that you make sure that you're doing everything above board and hopefully, um, break even. Right. We don't want people getting a refund, because that means you just gave the government a tax free loan of your hard earned dollars. So if we can come as close to zero as possible, that's the end and ultimate goal.
Speaker2:
Yeah. That is that is definitely the goal. You know, I mean it could feel nice to, uh, get that deposit, see that direct deposit in your account or get the check in the mail from Uncle Sam after tax Day. You're like, oh, hey, a free prize? Well, no, because you've been, you know, as Mike said, loaning the government your money interest free for, for months now.
Speaker3:
And not only that, how many people do I see when they get their income tax refund? They just go and blow it. I mean, they literally just go and blow it. All of a sudden that big screen TV, that new set of golf clubs that cruise to the Caribbean or the Bahamas, which is in the Caribbean, you know, all it looks attainable and attractive. But I mean, if you would just turn around and invest that money over the period of ten. 20, 30, 40 years. We're talking about compound interest really making a difference in your retirement security and financial future.
Speaker5:
Yeah.
Speaker2:
So instead of it eating away at your finances and eating away at your retirement, it can be working for you. And actually, you know, gaining that interest over time and then interest on top of interest. And it's like a snowball effect in the good way when that happens. Definitely. Well, step number two here, um, ahead of tax day, determine your filing status. Um, this is an important one and it's fairly easy to determine. But, you know, at least on the surface, I guess it is.
Speaker5:
Yeah.
Speaker3:
So I mean, obviously we're not tax professionals. So definitely consider consulting with a tax professional to determine which filing method is going to be most advantageous for you and your individual situation or if you're in a marriage situation. So whether you should file as an individual married filing jointly, married filing separately head of household, like all of these, you think it's common sense, but not necessarily. And that's where these tax professionals can look at your situation and determine the absolute best for your situation type of filing. So make sure you consult with a tax professional in order to make heads or tails of of that right there. Yeah.
Speaker2:
You know and that's why I say it's on the surface at least seems like it's kind of a common sense, easy to determine sort of a thing. But in the end it could be, you know, if you're married, it could be better for you to be, uh, filing married, filing separately instead of jointly because of some, you know, tax bracket considerations that you might have to take into account. So, as Mike said, uh, consult with a tax professional and make that determination there. All right. So step number three maximize retirement account contributions.
Speaker3:
Yes. I mean, you still have time to contribute, believe it or not, for last year. Okay? And if you're still working and you're contributing to any type of retirement account. So whether it's an employer sponsored plan like a 401 K or a 403 B, or if you're a federal employee, a Thrift savings plan or an IRA, which is something that you have opened up on your own. Ensure that you have maximized your contributions for the tax year 2023, so you still have time to do that. And it may mean that you take home less money over the next couple of weeks just to adjust your contributions to make sure that, uh, you have maximized any tax deductibility so that you can get that tax advantage for the year 2023.
Speaker2:
Yes, definitely. So, um, and it's important to make sure that you've got all those boxes checked before you make your filing. And again, a lot of these things too, are things not to only think about, you know, the week before tax day, but there are things that you need to be thinking about all year long as you're doing your planning as well. Take these into consideration. And also, you know, step number four is an important one that retirees have to consider and that is required minimum distributions. You got to consider those before you file.
Speaker3:
Yes you do. In fact, I literally right before this show was helping my mother with her RMDs. She has several IRAs that we have put into play for her over the, the, you know, previous years. And we wanted to make sure that all of those required minimum distributions were taken from those retirement accounts, because failure to do so actually results in the stiffest penalty that the IRS has in their arsenal. Okay. So, you know, again, if there's a couple things that I can just kind of highlight. Again, just consult with a tax professional, especially if you have a complex situation or you're unsure about certain types of tax matters, seeking advice from a licensed tax professional can absolutely ensure that you're taking advantage of all available deductions, as well as the credits, while staying compliant with tax laws. And so, you know, there's a big difference between your cousin who does taxes on the side and an actual tax professional that does this literally 365 days a year. And then absolutely, please, unless you have filed an extension, make sure to file your tax return by the deadline, which is April 15th of this year. And like I said, if you do need more time, you can file the extension. But guess what, folks? That extension has to be filed by April 15th and it only extends the time to file, not the time to pay any taxes that you might owe. A lot of folks make that mistake and think that if they, you know, extend until October, that they have until October to pay their tax. If you make that mistake, you're going to be hit with some penalties on top of the taxes that you owe. Yeah. And your taxes on time.
Speaker2:
Absolutely. That is not a fun situation. Uh, you know, if you if you owe taxes and then have to pay penalties on top of it because you didn't make the payment on time, you don't want to be in that situation. And yes, as we have been saying, Tax Day is coming up on April 15th and something to consider as well here. Mike, for our listeners, a couple of things, actually, um, to make Tax Day a little less painful and maybe a lot less painful in the future. Talk about the two tax free investments that are really the only two types of tax free investments available to Americans today.
Speaker3:
Yeah, we talk about this a lot on our show because we want our listeners taking advantage of tax free investments. Okay. And of course we are talking about Roth IRAs and life insurance. Okay. A lot of people say, well, Mike, what about municipal bonds? Well, remember, folks, those are not necessarily tax free simply because of the fact that they are sometimes subject to federal, state and local taxes. And then they can also impact Medicare costs, especially if you are a high income earner. So if you are at all concerned about rising taxes, please give me a call (704) 560-1573 or visit the web. Mike at Money Matters with mike.com is my email address. Or you can just go to Money Matters with Mike comm and fill out the contact Us page. And we can help you start building a smart tax plan for you and your family during retirement.
Speaker2:
And I wanted to go back and kind of highlight something, put it put a pin in something here, Mike, that you, um, spoke about a couple of minutes ago, uh, just briefly, um, is that you can actually make retirement contributions for 2023 up until. Till April 15th. Now, how how does that kind of work here? Because people might think, oh, I thought the deadline was the end of the year.
Speaker5:
Yeah.
Speaker3:
Well, a lot of people think it is the end of the calendar year, but it's actually the end of the tax filing deadline. So midnight on April 15th, 2024. You can up until that point, you can still contribute to your IRA and deduct those contributions from your 2023 taxes. So I mean, in IRAs, that limit is $6,500 if you're 49 and under. But if you're 50 or older, you get to deduct $7,500. Okay. That's one way. And you could also contribute to a Roth IRA. Um, but because this type of IRA does not let you deduct your contributions, you won't necessarily save on your 2023 taxes, but you'll be able to contribute much more money that you can take out tax free when you retire to and throughout retirement. So by paying the taxes now, your future self will thank you for all those years of tax free compound growth.
Speaker2:
Yeah, absolutely. I mean that is that's like living the dream right there in uh, in retirement. It, you know, you take withdrawals from like a, you know, a Roth account, uh, that they are all tax free. You're like, oh, I get this money. And then you eliminate one of those taxation steps that you talked about earlier. You know, we get taxed on the money that we make. You take that off the table. And, um, that is um, I don't know. That's that's music to my ears, I'll tell you.
Speaker3:
Yeah. I mean, everyone, everyone listening needs to fund their retirement. And retirement accounts are the best way to build yours. So stay invested because you won't want to take out money early before age 59.5 because of those huge withdrawal penalties.
Speaker2:
Yeah, absolutely. Money matters with Mic.com is the website. It's Money Matters with Mike. Com or call Mike at 704 5601573. Get yourself a free consultation there. Mike can also, uh, hook you up with a tax pro, uh, that he would recommend as well to handle any of these, you know, tax questions that you might have here around tax time, but then also help you with your retirement plan, give you some tax efficient strategies to help reduce your tax burden when you retire from the workforce as well. All right. So, um, I wonder if taxes are one of the biggest regrets that Americans feel about, uh, their retirement here? We actually have the results of a new survey that will reveal what retirees regret. And this is a survey reported by Thinkadvisor. And they, um, there's some really interesting results here. I think kind of the top line, though, Mike, is that that number one regret, the biggest regret of retirees today has to do with finances.
Speaker3:
Yeah. According to that recent survey, um, and again, that was by, I think advisors, the largest regret of retirees today is financial, okay. With 78%, 78% of retirees saying that they are sorry that they did not save enough money or prioritize their retirement saving finances early enough. Think about that. That's four out of five people. The biggest regret by far is financial.
Speaker5:
Yeah, it.
Speaker2:
Really is, um, such a huge concern. And, you know, we talk about that. Obviously it's money Matters with Mike is the name of the show. And we talk about money all the time. So it's always on our mind. It should be, especially if you are younger and you've got a long, longer time horizon to go until retirement. Let that be a lesson to you. That number be a lesson to you because you don't want to get to retirement and say, oh, I wish I had started planning sooner.
Speaker3:
The hardest thing for young people to do is visualize themselves 40 years ahead, 30 years ahead. Once you start getting into your 40s, you can start visualizing yourself 20 years ahead, and then by the time you're in your 50s, it's like, whoa, that's right around the corner. And then that is when you realize the fact that you have not saved enough money. And so if you can learn from the words that we're speaking on the airwaves today, if you can learn from your relatives who regret not having saved enough money, then do so early enough. Because if you're in your 20s and you've got 40 plus years of compound interest working in your favor, then you're going to be so much farther ahead of the game than those who wait until their 40s or 50s to get serious.
Speaker2:
Yeah, and more results from that Thinkadvisor survey. 52% of retirees. So just over half, they say they regret not having prioritized their health earlier in life, but 82% of them say that they are now making health a top. Priority. So, you know, you sort of regret not to having healthier habits earlier in life. But now it seems like the vast majority of retirees have learned that lesson and are making their health a bigger emphasis, making a bigger emphasis, a bigger focus on that.
Speaker3:
When I was in my 20s and 30s, I could eat whatever I wanted. I had a very strong metabolism. I used to laugh at people who did diets I didn't understand. Right. Well, then I I'll never forget the first time that I felt my belly jiggle. Okay, I went over a hard junction over an overpass, and I about got into a wreck when that happened to me, because I just looked down at my belly and was like, what just happened? And then when I looked up, I almost ran into the car in front of me, and it bothered me so much that I actually got off the next exit, got back onto the northbound lane, drove to the exit, passed the junction, got back on the southbound lane just to see if it would happen again, and lo and behold, it happened again. And I said, man, I have got to get serious about it. I was 36 at the time. I'm 53 now, and what I can tell all of our younger listeners and all of our older listeners are, you know, they're probably laughing, you know, their their heads off right now is that it only gets worse with age because of the fact that your metabolism slows down and, you know, it's it's just harder to lose the fat. Okay. So if you make that a priority earlier on in life and are able to maintain that, then you're going to be much, much healthier in retirement, which generally means less trips to the doctor, which means less money out of pocket. It means a longer lifespan, which means you've got to prepare for longevity, okay? But ultimately it allows you to do more of the stuff that you want to do in retirement and be able to actually enjoy it.
Speaker5:
Yeah, it gives.
Speaker2:
Gives you a longer period of time. Uh, more more likely a longer period of time not only to live, but to live and be mobile and, and actually be able to get around and do the things that you want to do in retirement. And actually, you know, 53% of the people who responded to this survey say that they're spending more time exercising in their retirement years as well. So people really are making that a bigger priority now, at least if they didn't do so back when. So that is at least good news. But for those of us who are not in retirement right now, make it a priority. I was, I was I was younger than 36 when I when I first felt that jiggle and um, not pleasant. So you know, I wish it had been more of a motivating factor for me. I got to go to the gym after this. All right. So the next results, uh, that we're going to share here from this Thinkadvisor survey, 21% of retirees disappointed that they didn't travel more before retirement when they were younger. I guess, you know, when they could get around more.
Speaker3:
You know, and this one, I think is is one of my favorite of this week's statistics. Okay. Because I had a life event happen to me and, you know, a few years ago I had a kidney transplant. And one of the things when I woke up that I swore that I was going to do is take advantage of my health while I still could. And so, like last year, we were fortunate. We went to Europe and we spent, you know, a few weeks in Europe traveling around different countries. And then I started thinking about, you know, the the folks in my life who are now well into their 70s, and there is no way that they would have been able to go, like my wife and I went in our young 50s, there's just absolutely no way that they could have walked six, seven miles a day, climbed all the steps in the rocks and the mountains that we climbed. Some of it was in city on cobblestone with very uneven, you know, surfaces. And and so, you know, I encourage people to get out and travel and you may say, well, Mike, I don't have the money to get out and travel. Well, if you understand that that 21% of the people are disappointed that they didn't travel before retirement, well, we can put a plan in place that allows you to allocate certain dollars so that we can at least have you take a trip. Maybe not every year, but maybe every other year or every third year while you're still saving for a very, very successful retirement. That way you have the best of both worlds. You're still able to go out and see stuff while you're young, healthy, and vigorous enough to where it's not going to affect you. And then you'll also be able to capitalize on more money in retirement as well.
Speaker2:
Yeah, there you go. And, you know, I mean, also, it doesn't have to be you don't have to do, you know, several countries in Europe in a single trip. Um, if you're able to do that, great. But I mean, hey, even if you want to see as much of this beautiful country as you can, um, in those years, you know, maybe in those off years where you're not taking an international trip, you can, you know, take a road trip and see a couple of states that you've never been to or something like that.
Speaker3:
Yeah. It's funny that you mentioned that, because on my bucket list is a place called the. Have a soup, a falls, and if you were to Google have a soup, it's I think it's Havasupai is how you spell that. Um, there is this magical place that has Bahama looking water like it's crystal clear, aqua blue. It's absolutely gorgeous, set in the desert mountains. And the thing about this is you actually have to hike like ten, 11 miles and they sell passes. The indigenous people, um, their tribe on, on their reservation. And those passes sell out very, very early in the year. But if you're not if you're not aware that this even exists, just Google it because it's absolutely a magical place. And if you're physically able to do it, I promise you that would be one of the top destinations in this country to go visit.
Speaker2:
And of course, what I did as soon as you said that was googled it. And it is absolutely beautiful. It just in pictures. It looks almost otherworldly, almost like kind of like a painting. Um, when you see it, those.
Speaker3:
Are no filters. No filters on those photos. Yeah, it actually looked like that.
Speaker2:
Every every photo actually looks just as beautiful as the last. It's really, really gorgeous. So yeah, if you get a chance to do that, folks, I would recommend it. Now I've got a new place to add to my bucket list too. Um, I've just got to exercise one of.
Speaker3:
Those passes because they do sell out very, very quick. I tried.
Speaker5:
Unsuccessfully, yeah, a few years I.
Speaker2:
Was going to say, and, and I've just got to exercise to make sure I can actually make it there. Um, first to do a little training for the, for the visit. Um, okay. So we've talked about a lot of, you know, what, what retirees are regretting. But with this survey, it's not it's not all bad news, right? People are loving a lot of different things about retirement. And we've got a list of these here. Now, 90% of retirees say they actually enjoy, uh, being retired. So that's good news.
Speaker3:
And why would you not enjoy being retired if you've been, you know, slaved at a job for, you know, 30, 40 years of your life, anywhere from 30 to 80 hours a week, why would you not enjoy that time off, the restorative time for your body, your mind, your spirit you get to spend time with, uh, your loved ones. You get to go and travel. You get to do the hobbies. Like who would not enjoy being retired if they're financially able, right?
Speaker2:
That's absolutely right. And, you know, take control of your life back from, you know, being at the beck and call of an employer or whatever. I mean, it's it's just it's all good news all the way around if you're financially able and if you have planned properly for it, you can really, really enjoy your retirement years. 72% of retirees in this survey say they actually feel younger than their current age. That's good news, too, even though a lot of them say, uh, you know, I haven't, uh, really made health a priority until now.
Speaker3:
You know, I remember growing up when I hit 30, they were saying that 30 was the new 20, and then when I hit 40, they were saying 40 was the new 20. And then when I hit 50, they're like 50 is the new 30. So it's like I'm hearing people that are in their 70s now saying that 70 is the new 50. And, you know, the advancements in technology and medications and people who are able to get out and, and remain healthy. Um, yeah. I mean, I think that's a great statistic. You know, 72% of the folks saying that they feel younger than they actually are. And one of the things that I'm reminded of and I still honestly cannot believe it to this day, I have one of our listeners gave us a call, and I met with her, and I'm thinking the whole time I'm talking to this woman, I'm thinking that she's like in her late 50s, maybe early 60s. And then when I asked to see her driver's license because I needed to get some documentation, you know, some numbers off of it for what we were doing. She was actually 83 years old, um, and did not act a day over 40. I mean, she had more spunk and more spirit than than most, uh, 40 year olds I know. And I was absolutely flabbergasted by the fact that she was 83.
Speaker2:
Wow. That is that is really saying something because, you know, I, I guess she's in that, uh, 72% saying that they feel younger than their current age. That's that's amazing.
Speaker3:
So I actually asked her what her secret was, and she said she made me laugh when she said this. She said, good living and cocoa butter.
Speaker2:
There you go. Well it was it's so funny. I remember when, uh, when I was, uh, working in TV in New York, we actually interviewed a woman one time who was turning like 104 or something, and the reporter who went out on the story asked of, what is your secret if you if you had to tell people what your secret was to a long life. She drank Diet Doctor Pepper every day. That was her. That was her secret. Yeah.
Speaker3:
That's hilarious. I mean, there are so many people because I've, I've, I've seen interviews with folks that are over 100 and they're like, I drink a glass of wine every day, or this one old lady said she drinks two beers every single day, you know, so there's lots of things that they can attribute it to and who knows whether or not that is the actual thing that has kept them, or if it's just good genetics.
Speaker5:
There you go.
Speaker2:
I could could be a combination of all of the all of the above. Um, well, also in this survey, boy, uh, more than nine out of ten people, 93% of retirees say that they can actually do things now they could not do while they were still working. And that's, you know, actually having the time to do stuff, uh, really makes a difference.
Speaker5:
I was about to say, go figure.
Speaker3:
Right. Why? Because now they have time on their side, and they're not spending those 30 to 80 hours a week, you know, beholding to a desk or, you know, swinging a hammer or doing whatever it is that they were doing while they were working. They actually have the time to go fishing. They have the time to spend it with the grandkids. They have the time to go on vacations. They have the time to do whatever it is that they have always wanted to do. So yes, I can see why nine out of ten people say that they can do things now that they could not do while they were working.
Speaker2:
And speaking of what people are doing, then these last three stats we'll share with you really speak to that. Almost half of retirees surveyed say that they've picked up a new hobby. Uh, about nine out of ten say it's important to travel in retirement, even if they, you know, aren't traveling as much as they might want to. And then 18% say they volunteer their time and expertise to organizations and causes that are meaningful to them. So that's kind of just an encapsulation of how people are spending their time in retirement.
Speaker5:
Yeah, no.
Speaker3:
Doubt I mean, the last one that you mentioned actually kind of surprised me a little bit that more people weren't volunteering their time, they weren't volunteering their expertise to organizations, um, or causes, just simply because, I mean, if more people actually gave, um, more consideration to others, I think we would all be in a much better environment. Hey!
Speaker1:
Oh! Let's go. Missed part of today's show. Money matters with Mike is available wherever you listen to podcasts and online at Money Matters with Mike comm. Fixed indexed annuities can help protect your retirement savings against market ups and downs. Nationwide's peak ten can help protect against market risk and provide guaranteed income for life. Peak ten also has an optional rider that offers an immediate 20% bonus based on your principal applied to your income benefit base. Call us now at (704) 560-1573. That's (704) 560-1573. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Speaker2:
Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering Annuity company. You may not receive the bonuses if the contract is fully surrendered, or if traditional annuitization payments are taken, and if the policy is partially surrendered, it could result in a partial loss of bonuses. Because these are bonus annuities, they may include higher surrender charges, longer surrender charge periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don't offer a bonus feature.
It's a bang, it's a bang. You blow my mind. Hey. Thank you.
Speaker1:
High inflation got you down. This is your weekend. Pick me up. You're listening to Money Matters with Mike.
Speaker2:
And now, as we continue our discussions here, we're going from talking about retirement, um, itself. And, you know, being in your retirement years to more about preparing for retirement and what you should do if you have experienced a job change, specifically if you, you know, maybe working somewhere for a long time, were unexpectedly maybe laid off and then had to go out and find a new job, or if you, you know, were maybe in a happier or not at your previous employer, but got a new opportunity that really excited you and you said, hey, I'm going to I'm diving in head first. I'm going to do this. Um, then that is obviously the the better of the two scenarios in, uh, you know, winding up in a new position. But we're going to talk about what you should do when you switch employers. Um, the first thing here, Mike, is to really evaluate your retirement savings progress. You don't want those accounts and everything to get lost in the shuffle, either. So you got to make sure that you have those T's crossed and those I's dotted.
Speaker3:
Yeah, especially, I mean, especially if you're in the interim. Right? You have just left the job. You're not sure whether or not you're actually going to have to have a hardship and take some of that money. And before you make any big decisions like that, you have to know where you currently are before you can eventually decide where you want to get to. And so, you know, that'll help you determine how switching jobs can impact your overall financial goals. So you want to consider things like pensions is, you know, do they offer a pension? Are they one of the 13.5% of companies in the United States that actually offers a pension plan? Um, are they, uh, enabling you to make retirement plan contributions? Do they offer an employer match type program? So all of these things should factor into the decision you make in going to work for another employer.
Speaker2:
Yeah. And make sure that you make enough of a contribution to get the maximum employer match. At least that's the least amount that you want to be contributing.
Speaker5:
Correct? Yeah.
Speaker2:
Free money. All right. So uh, number two, assess health care benefits. I mean, they can, you know, employer to employer, uh, employment, um, based health care plans can really vary quite widely as far as the benefits, kind of the structures of them. Is it a high deductible plan with an HSA? Is it a more traditional plan? There's a lot that goes into it.
Speaker3:
Yeah, I mean there is. And some employer plans are amazing. And while other employer plans leave a lot to be desired. So examining the health care benefits that are actually offered to you by your new employer can help you ensure that the coverage that you are offered meets your needs. And then you need to consider any potential gaps in coverage during that transition period that you may want to have what is known as supplemental insurance in the interim. And so, you know, health care coverage and costs can play a very, very big role in many people's job choices.
Speaker5:
Yeah.
Speaker2:
And should be a factor there, definitely, because you don't want to, especially if you have a some sort of health issue or concern. You want to make sure that you are going to be covered for that, um, and that the coverage is not going to be any worse in your new position than it was in the old. Um, and then also review retirement plans because, you know, just as health care plans can differ employer to employer retirement plans can as well. And and the offerings there, as you mentioned a few minutes ago, Mike, if maybe this employer is one of the very few that offers a pension, maybe they just have the 401 K, or maybe they have a 401 K with a bunch of different options in it, a Roth option of a 401 K. You know, there are a lot of different possibilities out there, but you've got to know what you're looking for and you got to find out exactly what is on offer.
Speaker3:
You do absolutely have to know. And a lot of people just, uh, accept it and are grateful that they have one without necessarily comparing it to what they had before or what to other potential employers might be offering with their retirement plan. So comparing things, um, like, you know, vesting schedules, contribution matching that you mentioned a second ago, making sure that all of those align with your retirement goals and comparing those to the existing plan that you just left, I think that is absolutely paramount. And then one of the things that I want to make sure that absolutely no one does okay, is leave your old 401 K or 403 B or TSP at the employer that you're no longer working for. And I like to use an analogy with this. Most adult people have moved in adulthood and. And I asked them, okay, you did not leave the car. You know that you own parked in the garage of the house that you no longer live at, and they kind of look at me strange, and they're like, no. And I'm like, then why would you leave your money parked in the garage of the employer that you no longer work for? And then the light bulb goes off and they're like, oh, you're right, you know, now if you left a more favorable situation for a less favorable situation, then that's an entirely different circumstance. And so that's where I think the last point that we want to hit is seeking professional advice, okay. Consulting with a licensed professional, um, to assess all of those financial implications of switching jobs will do nothing but help you make informed decisions. And when you're able to make educated and informed decisions, all right, on things like, uh, you know, personalized guidance based on your specific circumstances, they're going to absolutely net and put you into a much better position overall.
Speaker2:
Yeah. And help you make an informed decision because as you say, you know, if you're if you're educated, if you know what you are, um, planning for and if you know how to go about it with the help of a financial professional, you know, I mean, it's, um, you're just setting yourself up for a lot more success than you would otherwise, and, and, you know, I mean, here's the thing, too. We talk about pensions here and how few employers offer them. If you work for an employer that doesn't, which chances are that is the case. Or if you work for, um, the federal government, for example, who you know does offer a pension, you even you can get your own personal pension. But don't worry, you don't have to work for the government or one of those few companies to get a pension because you can, no matter who you are, establish your own personal one, and Mike can actually show you how to do that.
Speaker3:
There's no doubt about that. If you're at all interested in setting up a personal pension to protect your assets, as well as creating a guaranteed income stream for the rest of your life, simply get in contact with me this week, all right, so that I can show you your options for creating your own personalized personal pension. No company plan required. So if especially if you don't have one offered by your company, uh, I would be reaching out to me if I were in your shoes. So 704 5601573 is my direct number. Mike at Money Matters with Mike. Comm is my direct email address. Or you can fill out the contact us page at Money Matters with Mike comm.
Speaker1:
Here's the cost cutter of the week.
Speaker2:
And this week's cost cutter is, um, one that may actually save you a ton of money, depending on your particular situation. This is one of those like, you know, seek professional guidance on this because it may or may not be the best thing for you. And I know that, uh, Mike will will go more into that, but it is paying off your home mortgage. Mike, like I said, could be a great thing for a lot of people. For some people, uh, probably not. Especially if they, you know, establish their mortgage, uh, within a particular period of time.
Speaker5:
No, there's.
Speaker3:
No doubt about that. So, listen, folks, owning a fully paid off home can have significant benefits, especially when you're heading into retirement. So if you do own your home, its value has likely increased since the home was purchased. And what that does is turn it into a storehouse of wealth. And so, you know, I do caution, folks, as as Matt alluded to, that if you're an extremely low interest rate environment. So if your mortgage rate is in the twos or maybe even the threes, I don't know that I would ever want to pay off my house, because as long as the money that I'm earning and investing can earn more than that 2 to 3%, then I would be better off investing that money to get the return and then using the difference to pay down the house while still having a positive gain. So, you know, with no mortgage debt to worry about though, the worth of your fully owned home, what does that do? It represents 100% equity, and then having the fully paid off home significantly reduces your annual expenses by just eliminating your, you know, just say it's an average of of 1000 to $2000. And I know some of you out there are laughing right now because you're paying well above $2,000 a month for your home. But if you're a married couple and you still have a mortgage in retirement, the monthly payment will likely consume one of the two household Social Security checks. So that is definitely something to keep in mind. And that reduction in monthly expenses by having it paid off, can free up a significant amount of cash flow money that can be used for investing, for travel, for healthcare expenses, for anything else that you might want to spend it on.
Speaker2:
Yeah. Absolutely. Right. And. As we talked about, I think last week on the show, you know, downsizing to a smaller, less expensive home can also, you know, increase your retirement savings and provide additional financial flexibility. Not only that, though, it can also provide you just a home that's a lot more pleasant to live in and easier to get around. If you go to like a, you know, a ranch style home where it's all on one level rather than climbing the stairs all the time.
Speaker3:
Yeah, I know several people who have, you know, they've had a 3500 to 5000 square foot home, and it's now just the two of them because they had four kids, and now the kids are grown, they're gone. And it's like they're looking at each other going, we're heating, we're cooling, we're maintaining all of this square footage and we're having to climb stairs. Why don't we downsize? And so while prices, a lot of people say, well, where are we going to go? Right. Um, because prices have also crept up for those downsized and smaller homes, chances are, if you're willing to just go out a little bit further, maybe 10 to 15 minutes out of your comfort zone, you're going to find something that you can pay cash for and still have a considerable nest egg for your retirement, so that you can enjoy the rest of your golden years. Yeah.
Speaker2:
Absolutely. Right. And you know that, uh, of course you've got 100% equity in your home. That's 100% profit for you when you sell that home to then go and downsize. So, you know, a lot of potential advantages there. But like you say, Mike, if it's right for you, uh, then you'll want to do it. If, you know, there are particular circumstances where if you've got that low, low interest rate, uh, then you'll want to, you know, consider other options, maybe staying where you are or that kind of thing or just not you just continuing to pay that mortgage, whatever the case may be.
Speaker3:
Right. And if you if you have a low interest rate, say it's 3%, right? And all of your money is in a is in a, in a bank account that's earning you less than 1%, then you're somebody who I would say, go ahead and pay that house off if you've got the means to do so. But if you're somebody who is an investor and is is understands that putting your money to work for you so that it goes out and collects more of its buddies, um, and you're still around a 2 to 3%, then I would rather collect more of those buddies so that you can use the buddies to pay it off. And you still have your money to invest.
Speaker2:
And Mike Zeno is the guy who can talk you through all of this based on your individual situation. Uh, you just go to Money Matters with mike.com, or you can give him a call 70456015737045601573 is the number. And you can talk to Mike Zeno and reach out for that free consultation.
Speaker1:
Come on down as we test your financial knowledge in right or wrong.
Speaker2:
Ah, yes. Everyone's favorite financial game show. Um, where, you know, there's no prize. There's just pride if you get these right. But basically how this works, folks, it's like, uh, true or false? I'm going to make a statement here, and Mike is going to tell us whether that is right or wrong. You can test your financial knowledge as well. Play along with us here as we go through these different statements. We got four of them today, Mike. So number one is this from a fee perspective, ETFs which are exchange traded funds, are far superior products compared to mutual funds. Now that is from a fee perspective. Is that right or wrong Matt.
Speaker3:
That is absolutely correct. Etfs are much more fee efficient simply because they have no 12 B one fees. That's a type of fee that is charged in a lot of other investments. Plus they offer the same level of diversification. And so another benefit is that ETFs can be traded within a trading day, while mutual funds must be traded between trading days, meaning that you have much more control over your by and over your cell prices with an ETF.
Speaker5:
Yeah, absolutely.
Speaker2:
I think that's one of the things that a lot of people may or may not understand with mutual funds is that if you sell, um, you know, if you, you know, call up your broker or whomever and you say up, sell, sell, sell. Okay, great. Um, it'll be the end of the day before that can happen. And, you know, a lot can change given market volatility and all of the above before that sale actually happens. All right. Well, number two, if your employer doesn't offer a pension plan, there's no other way to create a personal income stream you can never outlive. Is that one right. Or is that one wrong?
Speaker3:
Well, Matt, if if any of our listeners have actually been listening to this show, they will know that that is wrong. So we talk a lot about on on our show, a lot of this product called a fixed indexed annuities that allow anybody to protect and grow their wealth, as well as establish an income stream that they never outlive, no matter how long they live, even if they live to be, say, 100 or 120 years old, which I don't think anybody's actually made to. And the reason being is that these annuities are tied to a market index, okay, that allows you to get market linked gains without any market like risk. Okay. Your principal is 100% protected, meaning the worst that you could ever do in any calendar year when the market is tanking is zero. Because when the market goes up, you participate in the growth. And then when the market goes down, you just flatline and zero becomes your hero. While everyone else who is exposed to market volatility is losing you. You didn't lose a single red.
Speaker5:
Penny boy.
Speaker2:
And talk about, you know, peace of mind. Uh, there that's that's one thing that can really give you that peace of mind. And as we often say, you can't put a price on that. All right. Number three here in right or wrong, the only ways to reduce your taxable income and get into a lower tax bracket are deducting your mortgage interest and taking advantage of tax credits. The only way stairs that right or is that wrong?
Speaker3:
Matt. That is wrong. And while those are two phenomenal ways of of reducing your tax bracket, they are not the only ways that one can do it. Anyone can reduce their taxable income during retirement by taking tax free withdrawals from one of only two types of tax free investments that I mentioned earlier in the show. And of course, those would be Roth IRAs and then life insurance. So if any of our listeners are interested in generating some tax free income during retirement, that I would absolutely encourage you to schedule a free and no obligation consultation with me today. It'll cost you absolutely nothing to find out how much money you could save on future taxes.
Speaker2:
Yeah, and that is a great return on that investment. If that is advice that you seek out and and receive, then you know you've paid nothing for that consultation. But then the benefits year after year down the road can really add up to a whole lot. All right. So number four here in right or wrong, if you choose to take a lump sum on your pension when you retire, you can receive up to a 20% bonus on your money. Well, that that's almost like one of those things that sounds too good to be true, Mike. I'm gonna say it once again. So our listeners have it. If you choose to take a lump sum on your pension when you retire, you can receive up to a 20% bonus on your money. Is that right or is that wrong?
Speaker3:
Matt. That is right. Believe it or not, it is not too good to be true. Okay? And this will also help you generate a better return on your money when you invest a lump sum into, for example, a fixed indexed annuity that offer that up to a 20% bonus. It can also generate a much higher income payout during your 30 plus year retirement. So if you have questions again, please get in contact with me this week 704 5601573 email me Mike at Money Matters with mike.com, or just visit the Contact Us page at Money Matters with mike.com, and you can schedule a complimentary consultation just to get your retirement accounts reviewed. If you don't want to jump into a full retirement plan consultation. So we'll look at your 401 or your 403 BS, your IRAs, your thrift savings plans. All of those things will factor into any decisions, and we'll see if we can't streamline them for you and maximize your input to them, which in turn will maximize your output from them in retirement.
Speaker2:
Yeah, and that is income in your pocket in your retirement years. So great, great news there. Get in touch with Mike. Once again the website is Money Matters with mike.com. All right Mike just the last couple of minutes here of the show. We want to update our listeners as we've been doing each and every week about the national debt. Now this this data is current as of Monday April 1st. But you would just hope that it were an April Fool's joke, but it was not. Um, update us now on the latest numbers here. Mike.
Speaker3:
You know, we're holding steady, albeit climbing at $34.6 trillion in debt. So that gerbil who's running around that wheel right there, I think we were joking about this before the show. Matt. He's he's getting a little tired. He's slowing down a little bit. But don't let that fool you folks. Um, I by next week's show, it's going to be $34.7 trillion. Which means that just in a week this week, uh, coming up, we will have spent over $100 billion in taxes. And there are many, many, many reasons why Americans should be absolutely concerned about the levels of the US national debt, for sure.
Speaker2:
Yeah, definitely. And just if you if you don't mind here, Mike, just before we, uh, run, just kind of hit the high points of just some of those reasons that people should be concerned about the national debt.
Speaker3:
Yeah. So, I mean, it can impact the sustainability of social safety net programs like, uh, Social Security, like Medicare, which are absolutely crucial for pre-retirees as well as retirees. It can impact our overall economic stability, which in turn affects retirement savings and investments. And high levels of debt can lead to inflation, higher interest rates, and reduced economic growth, all of which can erode the value of retirement savings. And then it has long term implications for future generations. So think your children's children okay, um, including pre-retirees and retirees, children's children. Right. Those grandkids as the debt grows it it's going to it's not can it's going to lead to higher taxes. It's going to reduce, um, government spending on essential programs, potentially burdening those future generations with financial challenges.
Speaker2:
No matter what happens, you want to have a plan that you can rely on and that you don't have to worry about. Oh, what if this happens? What if that happens? You control the things you can control and you are set up for success. Mike Zeno is the guy who can help you do that. Just go to Money Matters with Mike comm once again, or the number (700) 456-0157 3704560 1573. All right, Mike, I guess that is going to do it by looking at the clock here on the wall. Uh, we've just about run out of time, but I want to thank you once again, sir, for everything that you bring to the table each and every week. And we'll do it again next time.
Speaker5:
Sir.
Speaker3:
Matt, thank you for everything that you bring to the table each and every week and for setting me up just to deliver, you know, all of these nuggets to our listeners. But, uh, you know, more than and more important, I should say, than you are all of our listeners, because without them we do not have a show. So wherever you are listening, if you're tuning in in the Charlotte Metropolitan Statistical Area on WRNI, or if you are listening anywhere around the globe, uh, at Money Matters with Mike comm or on any of the platforms that we have, uh, put out there. Thank you. From the bottom of my heart. Whatever you are planning to do this weekend, I hope you enjoy it to its fullest extent. And as always, make it a great day.
Speaker1:
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. 704560 1573. That's (704) 560-1573. 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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