When It Comes to Your Money: Get More in 2024!

2.9.24 : Audio automatically transcribed by Sonix

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

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

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

Mike Zaino:
What's up, what's up, what's up? It's Mike Zaino coming to you from Fort Mill, South Carolina. Happy Saturday people. What a great time to be alive in these United States of America. Money Matters with Mike 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're going to talk about money, honey, and show you how to get more in 24. Plus, we'll see if you have a ticking tax time bomb for your retirement. And 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 are you doing today, brother?

Producer:
I'm doing great, Mike I love the alliteration. It's like the ticking time bomb. Uh, like, hey, it gets the point across because, uh, I hope I don't have one of those.

Mike Zaino:
Yeah, I have seen to it that I do not have one of those.

Producer:
I, I know knowing you as I do, I know you have done that exact thing. Yeah.

Mike Zaino:
You talk about alliteration, right? Proper prior planning prevents pitifully poor performance. So, uh, that's what this show hopefully is designed to help folks do and put those plans into place so they don't have that ticking tax time bomb.

Producer:
That's right. And we'll get into all of that coming up on the show. And also, uh, in just a little while, you know, it's uh, uh, boy, I can't believe it's it's Super Bowl weekend here. And we're going to talk about that's our inflation demonstration, the price of Super Bowl tickets. Boy, who are you going this weekend? Uh, you know what? I don't have a I don't have a dog in the fight. So, uh, you know, it's funny.

Mike Zaino:
You say that. I've got I've got dogs on both sides. And we're talking, of course, about Georgia Bulldogs. So go Dawgs. Right. So I just want to see a great a great game. Uh, I will go into mourning, um, next week. And when I say mourning I mean just my wife's. It's not like a real depression, but I live for for football and college football season. It's just my favorite time of the year.

Producer:
Yeah, it is, uh, definitely a fun time. And, uh, you know, an excuse to get to get together with, uh, with friends, especially, and watch some sports in front of the TV. Right? Boy, that's, uh, it's, you know, it's a good time. Um, but, yeah, it'll be it'll be different, uh, you know, because it's still, you know, it's going to be the winter time, but, uh, and that whole seasonal affective disorder thing is real. I think it's even more real when when football's not on the screen for football fans.

Mike Zaino:
So this is true. This is true.

Producer:
Well, a lot of great stuff to get to. First of all though, Mike, we want to say thank you so, so much to all of our listeners out there. You in the car, you at home, you listening to the podcast. Thank you so, so much. Because as Mike always says, without you, we we just don't have a show. So really, thank you for tuning in. Each and every week we're on the air on Re or uh, on the podcast version of the show. You can also check us out on YouTube. We're there with video highlights each and every week. Those are our brand new all the time too. Mike.

Mike Zaino:
Yeah, and the fact that our YouTube following has been growing, uh, you know, we're adding it seems, you know, and this may not sound like a lot of subscribers, but, you know, a dozen or so a week over the past couple of weeks. And that is that is huge growth. It shows that the show is being shared and being watched and hopefully being paid attention to. And folks are learning stuff. So, you know, YouTube is a great place. If you have not subscribed, please go there and subscribe to Money Matters with Mike on YouTube.

Producer:
Yeah, please do that. Definitely. And to add to those numbers for us as well, that helps the channel grow, that helps the show grow as a result and helps us just, you know, spread more great information around to folks who need it. If you've got something great out of the show here since you've been listening, do us a favor and spread the word about it. And as of course, as always, rather you can go to Money Matters with Mike.com or call Mike (704) 560-1573. We'll share that contact information as we go through the show here today. Because hopefully, you know, the goal is for something to spark your interest for for something that we say that we talk about and say, hey, I can relate to that. And I've got maybe a question for Mike or I've got an issue that I need Mike to help me solve, because when it comes to, you know, planning our financial future and especially planning for our retirement, you know, it's it's not, uh, necessarily the easiest journey and it's not the necessarily the easiest thing to put together. But, hey, if you're looking for. Somebody to help. If you're looking for some advice, I happen to know a guy.

Mike Zaino:
Yeah. And especially if that's not what you do. Right, I was talking I went to a doctor's appointment this morning just to have some labs drawn. And, you know, she was asking me what I did, and I told her, and she was like, wow, that's so awesome. And I'm like, yeah, but, you know, she said, I could never do that. And I said, you know what? I could never stick that needle in somebody's arm and draw blood out either. You know? I mean, you know, what? You know. And so what I know a lot about is answering questions and helping our listeners. So please, please, please do not hesitate to pick up a phone and give us a call. I'd love to meet with you to discuss how we can help you reach those retirement goals, because building plans for the listeners is what I do best. Okay? And I can help you, uh, you know, relaunch or just retire, because that's what it's all about, living those golden years and enjoying them.

Producer:
That's absolutely right. And once again, the number (700) 456-0157 three. You can also go online to Money Matters with Mike.com. All right. Before we get to all of the great stuff that we have to talk about in addition to the Super Bowl. You know we're going to we're going to actually discuss that retirement tax bomb, that ticking tax bomb in retirement that we were talking about. Also, we're going to have some ways to improve your finances, ten of them really actionable steps that you can take to improve your situation as you get closer to retirement. Speaking of closing in on retirement, you know, we often talk about the retirement red zone, which generally is five years either side of retirement, right, five years before or five years into retirement. Well, you're not quite there yet, but you are closing in on retirement. We've got some tips and advice for you to catch up on your retirement savings and get your plan. Uh, caught up to where it needs to be. All right. So that is coming up here in just a few. First, though, let's kick off the conversation. Hey, there's another football team. Let's kick off the conversation this week with 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 someone who didn't have anything to do with football. Really. He may have played at some point in time, who knows? But Roger Babson was this gentleman's name. He was an entrepreneur, an economist, a business theorist in the first half of the 20th century and best remembered for founding Babson College. So there we go. He's got a college named after him. He must be a pretty smart guy. And he said this quote, when I go to Zaino University later in life, I'll know that only smart people have the colleges named after them. Wow. Here. Here we go. So Roger Babson said this quote, uh, more people should learn to tell their dollars where to go instead of asking them where they went. I love that.

Mike Zaino:
I love that too. And the funny thing is, I've heard that quote before, but I had never heard of Roger Babson. But, you know, when we take and look at his quote and we break it down just to the basics, right? We're talking about proactive financial management being intentional about how and where you allocate your money, instead of just spending indiscriminately and then regretting it later. He suggests that people should have a plan. Does that sound familiar for their finances? Directing those dollars purposefully toward specific goals and specific investments?

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

Mike Zaino:
We're also talking about budgeting. We're talking about tracking. So understanding where your money is going is crucial. We've talked about that before on the show where I said, hey, for 90 days track where every single penny is going, because if you show me your bank statements and your credit card statements, guess what I'll do? I'll show you where your priorities lie. Right? So by creating the budget and tracking expenses, people can ensure that their dollars are being allocated in the right places, whether that's towards necessities or toward their emergency fund or their investments or other financial goals. And then again, we're talking about just investing for the future. His quote suggest that people should invest in their future financial security rather than just spending impulsively. And so those things could include contributing to retirement accounts, building that emergency fund, paying off debt, or investing in assets that guess what? Appreciate over time, not depreciate. So you know, when we look and breaking that down, first place I'm going to tell you to look for is retirement accounts okay. Contribute regularly to retirement accounts like a 401 K if your employer offers one. Or maybe it's a 403 B or a 457, or if you're a federal employee, a thrift savings plan. Or you can create your own IRA, your individual retirement account. And those accounts offer tax advantages as well as providing significant sources of income in retirement.

Mike Zaino:
So that's number one. Number two, we're going to beat a dead horse. The emergency fund, the emergency fund, the emergency fund. Right. You need to build that fund so that you're able to cover unexpected costs as life throws curveballs your way. And so, you know, we want people to save a minimum of six months, because when you have six months sitting in the bank, you walk around a little bit, you know, with your held, uh, excuse me, your head held high, your shoulders rolled back a little bit. It gives you a sense of confidence when you know that whatever life throws your way, uh, in the form of just something that is going to pop up, you've got enough finance to tackle it. Um, we're also talking about investing, okay? Investing is different than saving. So stocks, uh, and fixed indexed annuities. Consider investing in a diversified portfolio of stocks. Right. Diversified. What does that mean. You don't have them all in one sector. And then also consider that fixed indexed annuity for the income portion down the road. When we're talking about long Terme because you're able to use different, you know, ways of exposing yourself to various asset classes. One of those could be real estate okay. That can be a very valuable asset for your retirement income.

Mike Zaino:
I personally happen to invest in real estate. Um, you can invest in rental properties or you could try fixing and flipping, whatever that is. But that gives you an opportunity to have passive income. The next one I'm going to talk about, though, hardly anybody as a percentage of the population actually participates in in this blows my mind. How many people out there go to the doctor? I'm going to wait for you to nod or raise your hand. Right. All right, I see you, I hear you. Everybody's nodding and raising their hand. We all go to the doctor. Well, you guys may be eligible to contribute to what is called a health savings account or an HSA when you do that. You contribute pre-tax dollars, and then when you use them to go to the doctor, guess what? You don't have to pay any tax on that money and so they can qualify. You cover those qualified medical expenses 100% tax free. So if you're not using an HSA, you are throwing money away and just giving it to Uncle Sam. All right. Those are a few things. Let's talk about a few more things. How about education? How about skill development? Being able to invest in yourself by acquiring those new skills or investing in education. And that could lead to higher earning potential and a much more secure financial future.

Mike Zaino:
Right. Well, what about long tum care insurance? We don't like to think about down the road when our bodies may break down. And if we're in a spousal situation, look, I weigh about £225. My wife does Pilates. She works out. She's a strong woman, but there is no way that she is lifting £225 of dead weight in 25 to 30 years. It's just not happening. So consider purchasing Long Terme care insurance just to protect all of your other assets in case you require expensive medical care later on in life. And we're talking about in-home, uh, assisted living or full blown nursing care. Okay. And then the last piece of advice that we're going to leave you with is to always consult with a financial professional, okay? Guidance from financial professionals that can help you create personalized retirement plans that are based on your goals, your risk tolerance, and your financial situation will put you light years ahead of all of your friends and family members who got their, you know, got their financial advice from Facebook or friends and family. All right. That's what I'm going to leave you with by telling your dollars where to go in making strategic financial decisions, you absolutely can increase the likelihood of retiring comfortably and achieving financial independence. Matt.

Producer:
Yeah. Boy, that a lot of great information in there. And, uh, I bet if you're out there listening, you can really latch on to a lot of that information and relate to a lot of it. So, hey, if you can, if you've got some, some issues like Mike talked about with, you know, keeping a budget, not knowing exactly where your money is going, but asking where in the world it went at the end of the month, or, you know, every, every quarter, every six months, something like that. Give Mike a call 704 56015737045601573. Get you back on track. All right. Money Matters with Mike comm is the website once again. That's Money Matters with Mike. All one word.com boy. Great stuff there, Mike. Well, um, let's, uh, get into our, uh, tips that are specifically for people who fall into a particular category of people of a certain age. And we're not talking about people who are in retirement just yet. We're talking about a little bit, a little bit before that. Right? So at the beginning of the show, I mentioned that retirement red zone, which is kind of five years either side of retirement. So just before that, if you're say, you know, at some point in your 50s, uh, maybe even into your, into your 40s, especially getting on into your late 40s, this part of the show is definitely for you. So so those ears better be perking up, uh, out there as you're listening to us. But if you're getting close to retirement, we've got actually four steps to to boost your retirement savings. And Mike, you know, saw this actually originally and it was in MarketWatch. And they were talking about how saving and investing for retirement really is so important so crucial no matter how old you are. But as you get on you know, up in your up in your years and not, uh, you know, not nursing home age or anything like that. But as you get closer and closer to retirement, it gets even more important to just make sure that you've got your ducks in a row.

Mike Zaino:
No, I agree 100%. And you know, when people are in their 20s, most people in their 20s, they're it's almost impossible to think five decades, you know, four and a half to five decades down the road when they hit full Social Security age for retirement. You're just now coming out of your teenage years, you know, graduating high school, if college is your thing, whatever. Right. But you're just trying to figure out who you are. The last thing in the world that you're actually thinking about is retirement. You may be thinking about starting a family when you're in your 30s. You're kind of in the thick of it at that point in time. And, you know, in the 40s, you tend to start earning a little bit more money. In your 50s, you're probably at your peak earning potential. And then, you know, next thing you know, you're retiring in your 60s. So it is very, very important to understand that no matter where you are in life, the earlier you start, the better off you're going to be.

Producer:
Yeah, definitely. So get. That, get that head start to, you know, plan your financial future. And if you get, you know, close to that retirement red zone that we talked about, but you're not quite in it. We have some steps here that you can take to really catch up on maybe where you've fallen behind. And the first one, Mike, is to understand cash flow and be willing to make adjustments.

Mike Zaino:
Um, I love this one because what is cash flow? Well, that's how much money you have left over at the end of the month, okay. And hopefully you have more money than month. And it's not the other way around where you got more month than money. So at any age, it is important to assess, number one where your money is going as far as fixed expenses, right. Monthly expenses like mortgage, your rent, um, any of your, uh, utility bills or just basic living expenses. And then compare those with the typical discretionary spending. In other words, what your wants are, you have needs and then you have wants. And that'll help you get a handle on spending as well as your saving habits. And it puts a spotlight on any excess cash that could likely shift from the discretionary bucket into a get this folks retirement savings bucket so that your future self thanks you. And as you get closer to retirement, it might be time because you are hopefully in your prime, earning years to actually double down on spending less and saving more. Okay, for example, empty nesters. Okay, it might make financial sense to downsize your home a few years before entering retirement so that you can provide yourself with a cushion of, you know, additional cash as an asset. Uh, relocating might actually be a good move for you if it's putting you into a cheaper housing market and can unlock the assets as far as the home equity, further aiding the those folks that that are empty nesters in their retirement readiness plight.

Producer:
Yeah, it really could, you know, I mean, if it makes sense for you. And again, all of the things that we talk about, you know, we don't uh, there are some things that we do mention that are kind of, you know, universally true for, for pretty much everybody. It's, it's, you know, getting a budget in place, getting that emergency fund, things like that. But then, you know, stuff like moving to a new city. We're not going to tell you every, okay, everybody moved to a new city. Now, you know, it's it's if it makes sense for you if in your particular situation, if you, um, you know, can do that and if it happens to be maybe closer to loved ones or something like that, that could be a situation where A you save money, b you're closer to friends and family. Boy, that's that's good news all around for you. So that's one of those if it makes good sense for your situation. And that's where you need to, you know, maybe check in with Mike Zaino and you can do that at Money Matters with Mike.com. Um, the second little, uh, you know, tip here that we have, if you are getting ever closer to retirement, uh, and you still need to make some catching, uh, still need to do some catching up rather is, uh, small yet meaningful increases make those small but meaningful increases in your retirement account contributions as you go along.

Mike Zaino:
So one of the things that I try to do is be 1% better today than I was yesterday, and I've really tried to do that each and every single day, probably over the last, I'd say five years or so, when some when I read about somebody that was really putting that into practical application. So imagine putting that into practical application with your finances because Vanguard, they put out an annual, quote, How America Saves report. They recently highlighted that in 2022, nearly 25% of workers across America saved at least 10% of their income, and the average deferral rate remained at a, believe it or not, historic high of 7.4%. Now, when you combine that with an employer contribution, the total average contribution was 11.3%. So many Americans, about a quarter of them, are on a solid track, but there is still work to do. So you know, I always tell people, look, shoot for 15% of your income toward retirement savings. And folks, that's to start, okay? That's not where you want to end up, but aim to increase your contributions, whether it's to your 401 K or TSP or 403 b, aim to increase it by somewhere in the neighborhood of one, maybe 2% of a year. As you get a pay raise, increase your contribution to your employer sponsored retirement account because again, all that's doing is setting your future self up instead of taking that. Money home and spending it. Right? So, you know, while these minimal changes might not feel significant on the front end because of the power of compound interest, trust me, it will pay off big time over the long terme. So when an individual is about a decade outside of retirement, they should absolutely aim to contribute the highest amount possible to their retirement accounts.

Producer:
Yeah. Absolutely right. You know, some great, great stuff there. And even though it may, as you say, just feel like a minimal, like a little baby step boy, it really does add up in the long run. And, you know, a lot of baby steps make some big, big progress because it all adds up. It really, really does. Um, number three and this is for people age 50 and older. Right. Uh, number three is consider catch up contributions. Yeah.

Mike Zaino:
You mentioned catching up especially for those who started late. That's what catch up contributions are designed to do. Okay. Whether it's in your employer sponsored plan or it's in an individual retirement account, if you are 50 or older, you get to contribute an extra amount. The government allows you to do that. And so especially considering that you're in your 50s. And what do we just say that most people are during their 50s. They're in their prime earning years. You should have more disposable income now if you take that home and elevate your lifestyle to try to impress people you don't even like by buying stuff you don't even want. Uh, that's called keeping up with the Joneses. You're going to find yourself in debt. And I know millionaires that make $1 million a year. And guess what? They spend 1,000,001. They're broke. Okay. And then I know 40,000 heirs that make 40 grand a year and are excellent stewards of their money. So the catch up contribution just allows you, once you hit the age of 50 or above, to contribute more to your retirement accounts.

Producer:
Yeah. And just because you know you are a better steward of your money, that doesn't mean that you can never, you know, have go out and have fun. It doesn't mean you have to be a stingy person. It doesn't mean that you can't, you know, do things in life. It just means you got to know and control all these things that we're talking about. You know what's coming in, what's going out. You keep track of it and you control it. And then when you can go, you know, take a big vacation or do, you know, go out to dinner for a special occasion or whatever. You can still do those things. You don't have to live, you know, under a bridge somewhere, but you are you just know and and have control over where, uh, things are going and what's happening in your financial life.

Mike Zaino:
And it's amazing what happens, Matt, when you because you mentioned travel, you know, there are people that want to travel and they don't want to wait until they're in their golden years or their 70s or 80s like, we went to Europe for six weeks this past summer, almost six weeks, like five and a half weeks. My wife and I did, and we went to ten different countries. It was an aggressive trip. And I think of, you know, people that are in their mid 70s who maybe have never traveled before, and it's always been their dreams and aspirations. I don't know that they could have kept up with me. I was dying trying to keep up with my wife. Okay. We walked six, seven miles a day, sometimes on cobblestone. And so what I'm saying is, is people can actually plan and budget to travel while they're still young, as long as they have a plan and stick to the plan.

Producer:
Yeah, that's that's the thing is, you know, plan, uh, you know, make the plan and then you work the plan, right? It's to to butcher kind of an old, uh, anecdote there. Um, well, great. But still, it's true. Uh, even though it's not quite word for word, what it should be, it's still true. Um, all right, so number four in this section, you know, if you have got some catching up to do, uh, for your retirement planning, your retirement savings and investing is basically don't be scared about market volatility. Markets go up, markets go down. And when that's happening just don't be overly emotional about it.

Mike Zaino:
Yeah. And so that's really really hard for a lot of folks okay. And people got lulled to sleep. They were spoiled from 2010 until 2020. What happened. They saw the longest, uh, bull run in the history of the stock market. Nobody alive or dead had ever seen a ten year bull run. And so, you know, now that volatility is back in the stock market, you have to recognize the fact that that is normal okay. Volatility is normal. So quite simply you cannot let emotions get the best of you when you're investing. And Nate you know you need to never abandon your long terme retirement savings goal. Market volatility will always be present. But it's incumbent on long Terme investors to actually weather that storm. And that can be really, really hard, uh, to remember when the market is wreaking havoc on your portfolio, especially as you get closer to retirement. But for those that still have ten years, 15 years before they're going to retire, you have time. Okay. And this is where a trusted financial professional can come into play, as they can help assess or reevaluate your individual financial plan. Because, you know, we can be coaches, but more importantly, behavioral coaches as well, okay. Reminding investors that they need to stay the course and not freak out if the market loses 4% in a day, which has happened. Right? It happens all the time. But then guess what? If you go ahead and react to that by moving your money to safety, your likelihood of missing the rebound is almost 100%. So, you know, develop a plan, stick to the plan. And that is going to allow you to get where you want to go a lot faster.

Producer:
Yeah. And you know, it's funny how, um, things trigger a memory. So, you know, a few years ago, I was working, I was in New York, and I was actually I worked for a TV station, and I was the day side business reporter for the TV station. And there was one day and I. It's so funny because I actually just happened to be out that day. I was actually flying back from a vacation in Florida the day that the stock market just really just fell off a cliff. It's about 2018. There was a lot of market volatility that year. And um, I just I remember I landing and thinking, oh my gosh, what's happening? And boy what a day to miss work you know and the that kind of thing. Because there was a lot of that that year a lot of market volatility in 2018 which is kind of now that we've been through what we've been through, a little easy to forget, you know, but there were a lot of days where we saw, you know, five, six, 700 point drops in the Dow, um, like that. And it got to the point where that became so common. They I told would tell the producers, I'm like, hey, it's not really worth breaking in to, to the regular news for anymore because it happens so often. It's just become what the new normal is. Breaking news.

Mike Zaino:
Not so breaking.

Producer:
Exactly. Or it's just broken. Who knows? But uh, but yeah, I mean, so that kind of thing, it does happen and it can happen very often. So, you know, don't I'm not saying become complacent in those situations, but just don't let your emotions get the better of you. In other words.

Mike Zaino:
Absolutely. And if you haven't heard from your advisor lately, please pick up a phone or fill out the contact us page on Money Matters with Mike just to get a second set of eyes. And if you're doing great, guess what I'm going to say? Stay the course. You're doing awesome. But if I see anything that you may be able to tweak, well, then I'm going to make a suggestion. And then you have the decision to make on whether you're going to take me up on that. Guess what, folks? With zero pressure. I am not a sales guy, but what I can do is help you set your path to a successful retirement that you've always envisioned for both you and your family. So please, like I said, pick up a phone (704) 560-1573 that is my cell phone, folks. Millions of folks have it. Um, I answer the phone when I'm able. If not text messaging, you can do that as well. As always, the fastest way to get a hold of me or just go to Money Matters with Mike comm and fill out the Contact Us page. You can book yourself right into our calendar today, and people are standing by literally this week to take your call so you can schedule your free consultation and get started on your plan without delay.

Producer:
Absolutely a great thing to do and, uh, also a great thing to do is keep on listening to the show, because we're only about halfway through and we got lots of great stuff to come here on Money Matters with Mike, and that includes, you know, not one, not two, not three, four, five, six, seven or 8 or 9, but ten ways that you can improve your finances this year. Um, this was, uh, from US News and World Report, uh, came up with, with a lot of these and kind of added to and, and uh, tweaked here a little bit. But, you know, I mean, we want people to always thrive in their financial lives. That's really what this show is all about. When it comes right down to it, it's about educating you as a listener, and it's about making sure that you are in a great place, financially speaking, to have the future that you've dreamed of and that you've always wanted. And you can make happen. So if you want to improve your financial situation, if you're in a place where you say, well, maybe I'm, I think I'm doing okay, but I can do better. Um, we've got some tips for you, actually ten ways here, as I said, to improve your finances and get more in 24. All right. So, um, let's start with some short terms goals here, Mike. So maybe some things that are achievable for folks within a year. What's our first one here.

Mike Zaino:
Yeah I think that's important. Right. Achievable within a year that sets their eyes not so far focused on retirement but literally what they can get accomplished this year. The first thing is going to be just to perform a financial checkup, right. And review the past year, see where you ended up financially and then set goals for 2024. That's first and foremost.

Producer:
Yeah. And it's so important too, because you got to know where you've been, to know where you're going. Right? It's like, you know, don't don't put your blinders on and think, well, that's just in the past. I can't learn anything from it because you always can learn something from where you have been. Um, and you should as well. Um, number two then is to check your credit score, pull those free. Credit reports for accuracy and planning purposes and like that, that's a lot easier to do than it used to be. And you can kind of get those reports all over the place now.

Mike Zaino:
Yeah, I mean, you go to Freecreditreport.com and you get one a year and pull it. And the reason that you want to pull your credit report, whether or not you plan on applying for a car loan or a personal loan or a mortgage is just to know where you stand because your credit report, believe it or not, folks, dictates a lot of things in your life that you may not have had any idea it actually affected. The number one thing that I can think of right off the rip is your your how much you pay for your automobile insurance, right? People with good credit pay less, believe it or not, than people with poor credit. And we're not even talking about driving record. So your credit score definitely affects much more than you think. And it's very, very important to stay on top of it and make sure that you can increase it each and every year.

Producer:
Yeah, definitely. So and then number three here in short terms financial goals create a timeline for your goals. You got to balance some competing objectives and prioritize those based on the available income that you have.

Mike Zaino:
Yeah I think that's important. You know we're starting the year off now. Where do you want to be by summer? Okay. What do you want to do during the summer. Start with backwards planning. If you want to go to the beach, that's going to cost you how much money? Okay. Well then how many weeks do we have until that beach trip occurs that tells you how many, uh, weeks you have and just divide that money by the weeks. And that'll tell you how much money you should have to put away each and every week. Okay. Where do you want to be by the end of the year? How much do you want to spend on Christmas? Things like that. It backwards planning just gives you an idea of creating that timeline, and more so than creating the timeline, but gives you an actionable plan to save on a week per week basis to get you to achieving those goals within that first year.

Producer:
Yeah. Absolutely. Right. And then number four, reconfigure your budget by reviewing expenses, aligning spending with your values and identifying areas. This is an important one and a tough one. Sometimes identifying areas to cut expenses.

Mike Zaino:
You know, I just did this myself and I reviewed all of our subscriptions. And it's it's so funny because I remember when, uh, Game of Thrones was on HBO. Um, I think it was Max. You know, we added the HBO Max subscription. Well, guess what I've been paying for since Game of Thrones ended and haven't watched it since, right? I've been wasting a lot of money on that subscription, so I actually take my own medicine and we ixnayed HBO Max on that. And so any areas of subscriptions that you're no longer using to. And folks, there are apps I think one's called Rocket Money. Uh, don't hold me to that, but I'm pretty sure that's the name of it. But there are a few of them where you just put in, you know your information, and they'll tell you all the different subscriptions you got across the globe. Okay. And you may say, what I'm paying for that. So, you know, identifying those areas to cut expenses, I think is the biggest thing to take out of that by reviewing your, uh, expenses on an annual basis.

Producer:
Yeah, definitely. So and then also, you know, take time. This is number five here in the short terme. Financial goals take time to review and adjust your investment strategy at least once a year. And make sure that everything that you have going is aligned with your goals, your risk tolerance and your time horizon. Three very important factors to take into consideration. Right?

Mike Zaino:
And your goals again, have to be realistic. And we're talking about saving for retirement. Again, that could seem like a long way off. Or you could be right on the, you know knocking on that threshold about to cross over it. So your time horizon is definitely going to factor in as well as your risk tolerance. If you're younger you can take more risk. Why? Well, you have the opportunity to come back from any downturns in the market. But right before you retire, you really don't want to take that risk because the one thing you will won't have going for you in retirement is that you're no longer working. So that means you're no longer able to contribute to those retirement savings vehicles, and it just takes so much longer to get back to even when you're retired and not contributing. So that risk tolerance, along with that time horizon to help reach your goals is very, very important to to monitor minimally on an annual basis. I would actually like to see you do it quarterly.

Producer:
Yeah. And that's actually yeah, a great advice there because the more often you do that, the more often you check in because things can change. Right? Um, you know, especially, you know, if you have a big life event or if there are big events going on in the world that that mean, um, you know, things that you've been invested in haven't been performing so well. So maybe you need to make some adjustments there. Things happen all the time. So check in as often as you can. Yeah.

Mike Zaino:
You talk about life events, man I just want to hit on that. You know, so people may go, well what's a life event? Well, you know, if you had a baby this year, if you got married this year, if you got divorced. This year. If you got a job this year, if you lost a job this year, if you retired this year. Right. Those are if you bought a house this year, these are all examples of pretty major life events that can absolutely impact your longevity of your current plan. So you want to be able to adapt, improvise, and overcome any of those life events that happen. And in order to do that, you have to be liquid. You have to monitor. Like I said, I would prefer quarterly, but minimally on an annual basis, just so that you're not getting to the end of of your journey, recognizing the fact that you didn't make those necessary adjustments, and now you're way worse off than you could have possibly been.

Producer:
Yeah, 100%. All right. So that covers kind of the the short terme financial goals we want to go through. Now we've got five more. These are the long Terme financial goals here. And number one we're beating this horse again. Uh but it's a dead horse so we'll just keep on beating it. Uh build an emergency fund over time. And you can do that. Actually. And this is a good tip, uh, because it's one of the things that I do, actually, in my own life is by automating monthly savings into, you know, something like a high yield savings account, because, you know, that way you, you know, you don't have to do anything. You just it just goes into that account, you know, once a month or once every couple of weeks or whatever it is, and it's just done for you.

Mike Zaino:
Right? And so, you know, one of the things I have a Premier account with my bank and I was actually shocked at, you know, our banker called us and said, hey, you've got this money in this in this account. We can move that over into a 5% account just for sitting there. And I'm like, okay, do it. You know, I mean, do it. Why not get 5% as opposed to the, you know, .00001 9% that I was getting, you know, before interest rates went bonkers with the fed raising, uh, the rates. So building that emergency fund will accomplish, be accomplished a lot faster if the bank is giving you money.

Producer:
Yes. And getting that higher interest rate is, is so great because I've got one of those, uh, higher interest or higher yield savings accounts now, um, and, uh, boy, it makes a difference. Um, also, number two, long Terme increase retirement savings by adjusting monthly contributions to those retirement accounts, things like, you know, IRA 401 K, 403 B, uh, all of the different ones that we talk about. Uh, Sep. Ira, if you have that, um, you know, any type of fixed indexed annuity as well, um, you know, make extra contributions, increase those contribution amounts. Um, and boy, that, as we talked about earlier in the show, can also, especially because of the power of compounding interest, make a huge difference. I was just.

Mike Zaino:
About to say, Matt, is there an echo in here? It seems like I pointed that out in the very beginning of the show. Even if it's that 1%, that 2% if you get a cost of living adjustment, if you get a pay bump, any of those things, instead of taking them home, add them to your future retirement. Uh, you know, income is really what you're adding it to. Think of it that way. Instead of I'm spending it now, I'm going to spend it later, but I'm going to plant the seed, and the seed is going to grow into a nice, fruitful harvest for me during retirement.

Producer:
Yeah, you've got to plant it and fertilize it and water it and help it to grow. And then you'll have that nice big harvest come retirement time. Yes. Um, here's something that we haven't touched on, Mike. Is that number three in this long terme, uh, financial goals here, uh, is paying down debts. And this is especially true, you know, we keep seeing kind of like, you know, survey after survey, say that people have really run up a lot of debt over these past couple of years with inflation and everything, and credit card debt especially. And that is, you know, obviously some of the worst kinds of debt to have because of the high interest rate environment.

Mike Zaino:
It is, in fact, interest rate on credit card debt or what is known as revolving debt is is approaching criminal. Okay. I mean, the highest illegal amount that they can charge you is 29.99%. That's $0.30, folks. That means for every dollar that you pay down on that debt, $0.30 is going right back into debt. So think of it that way and paying down your high interest credit cards, car loans, um, home loans is one thing that that, you know, could be considered good debt as well. So really just depends on your individual situation. And we can point that out in a consultation on whether or not you need to pay off your home. Like for an example, I had a guy considering paying off his home this morning when I was talking to him and he said, yeah, oh, about $150,000. And I was thinking about taking it out of my 401 K to pay it off. And I'm like, well, first off, you know, you owe 150,000. But if you take it out of your 401 K, guess what you're going to have to do? You're going to have to pay taxes on that. So now that $150,000, um, home actually is going to. Cost you what, $180,000? I said, what is your interest rate on your mortgage? He said, well, I refinanced back during, you know, the pandemic and I think I had like a 2%. And I'm thinking, wow, I think we can earn more than 2% on your money. What do you think? He said, yeah, we could probably earn more than 2% on, uh, my money. And then why in the world would you want to pay that off? You see what I'm saying? He was like, yeah, that makes a really, really good point. But the high interest debt, the revolving debt, that stuff will kill you in retirement. So prioritize paying that stuff down immediately.

Producer:
Definitely a great thing to do because yeah, the high interest will just eat away at your at your money because it's just basically throwing it out the window. Um, number four long terme financial goal here. Increase earning potential by either exploring new job opportunities or the old side hustle. Uh, you know, updating your LinkedIn profile, gaining more skills. You talked about that during the meat on the bone segment as well. You know, get increase your skill set and, uh, you know, put that, uh, that hard work then to work for you so that you can make more money and again, future you will thank you.

Mike Zaino:
And that's that's applicable wherever you are in life. If, you know, even if you're retired and you may want to relaunch, or you may want to do something to get you out of the house, well, if you're going to do something and you're going to enjoy doing it, why not make a little bit of money at it in the same time? So, I mean, I love that idea of exploring, you know, new opportunities and new things that could put some extra jingle in your pocket.

Producer:
I gotta love that. And, uh, the jingle in the pockets a good thing, uh, especially if it gets louder and louder. You know, it just means there's more money in there. Um, number five in long terme goals, identify your personal financial priorities. Like saving for a down payment. That's a biggie, of course, and can take, uh, long time. That's why it's in the Long Terme section here. Because, you know, if you're saving for 20% of a down payment with housing prices, what they are could take you a while. Or building maybe an education fund for your children.

Mike Zaino:
Yeah. And either of those is going to take a long time. So everybody is going to have their own personal goals. Right. And that's why during the consultation we find out what those goals are because no two people are the same. And so because no two people are the same, no plan should be the same. We got to tailor them to what you want to accomplish. So I love the fact that this is in the long time goal, uh, you know, setting, uh, section just simply because you need to be able to figure out what your short time goals, your midtum goals, and then your long terme financial priorities are.

Producer:
Yeah. And you map that all out. And, you know, I mean, there's there's help and some tools to be able to help you along with this, you know, technology. There's uh, you know, even automation like we talked about for some of those financial tasks, like putting money away every week or every, you know, couple weeks, every month, whatever you want to set it, you can kind of set it and forget it a little bit where you, you know, just have it automated, like that. Um, budgeting apps, uh, can come in handy as well. Bottom line though, speak to a financial professional, somebody with experience, somebody who can help you build a plan that is absolutely tailored specifically for you and your situation. Because, Mike, you know, everybody's situation is different. And that's why we encourage the listeners not only to listen to the show, but to to call in or go to the website.

Mike Zaino:
Yeah. Well, I mean, what does it cost you to call? What does it cost you but an hour's worth of time? If we decide to go to a complete retirement plan consultation, all it's costing you is time. Folks, this is free and it's for our listeners. Okay? So take advantage of it, because what we're going to do is provide a comprehensive consultation at no cost for all of our listeners. There's also no obligation and definitely no pressure. If you have been watching me on this show or listening to me on this show now for going on almost two years, right? I have a very, very consistent message. I can't stand salespeople. Right? You're only going to work with me if I can do better for you. But what I can do is analyze your current financial situation. I can discover how much that you are paying in unnecessary fees and help you cut those costs. Whether those are in your IRAs, your 401 s, or any other retirement savings vehicles I can examine closely. Examine. We call it an annuity x ray. Any current annuities that you might have because all annuities are not created equally. Believe it or not, folks, there are annuities that I am not a fan of and there are others that I have my family like my mom and my mother in law. And so, you know, we can also help you with Social Security maximization planning. If you're somebody that's getting close to Social Security age. I'm actually in the process of becoming a registered Social Security analyst because it is very, very in-depth and comprehensive. So we can determine what is the best and most appropriate time for you to start taking those benefits. And again, bottom line is we're going to compare what's possible if you work with me. All right then where you currently sit. So take the plan we give you and decide for yourself.

Producer:
And you can schedule that free, no obligation consultation with Mr. Mike Zaino by going online to Money Matters with Mike.com. That's Money Matters with Mike.com. You can also give them a call at 70456015737045601573. Get in touch. Do it this week and he'll help you build and navigate that financial plan. All right Mike do you hear ticking in the in the distance. Is that is that your ticking ticking tax time bomb. We've got tips for how you can diffuse it and which wire to cut. If you're like, you know, if you're in those old spy movies, you.

Mike Zaino:
Know there's there's no doubt. So when we're talking about the ticking tax time bomb, think about your IRAs, think about your 401 S, your 403 B's. I want everybody to think about how much they've got saved in those types of vehicles. I'll wait. Well guess what? Now that you have that number, it's not all yours. That money does not belong to you because you have chosen to defer the taxes. And because they offer that tax free qualified withdrawals. Guess what? Roth IRAs and Roth 401, and then even Roth conversions can be a critical strategy for helping you defuse the retirement tax bomb that your traditional vehicles again, your IRAs, your 401 K's, your thrift savings plans, your your 403 B's and other pre-tax savings account can set you up for in retirement. And you may be asking yourself, you know, Mike, why does that matter? Well, it can protect you if the government changes the rules. So if I were to ask you if you thought, you know, we were in a relatively high tax rate environment right now, I would bet that the vast majority of the folks listening would say, yeah, we pay a lot of taxes, when in actuality, if you look at the historical tax rates in America were actually at one of the lowest tax environments in the history of the United States. So now that the national debt, okay, has added $3 trillion in debt since just the last time that we spoke about it on the show, and folks, that's counting. You can go to, you know, the US debt clock, which is at W-w-w dot US debt clock. Org and just see how fast that is spinning okay. And so that's why it matters because the country cannot continue to spend the money the way it's spending and not tax you more. Which means if they change the rules on you, guess what folks? More of your money that is in those tax deferred vehicles. All right. Your 401 K and more of that is going to Uncle Sam.

Producer:
Yeah. And that's what you want to do is protect yourself from those future tax increases because it's got to come from somewhere. And, uh, you know, it's going to come going to come from you and me, because not many other places it can come from. Um, but if you want to convert Mike to, to a Roth, if you want to at least explore, that is, uh, potentially part of your financial future here. Um, there are some specific windows where it can be best for people to do that, or even just flat out possible for people to do that. Right?

Mike Zaino:
It's yeah, it is very important. So first off, a lot of you may be asking, you know, what is a Roth conversion? That's first and foremost what needs to be answered. So if you have some room in your tax bracket before you get elevated into a next tax bracket, that may be five grand, it may be 20 grand, then you can actually convert some of your traditional money at the same tax rate that you're currently paying, and therefore convert that into Roth funds, which grow tax free for the rest of their life. So the first window for those Roth conversions are the years before you enroll in Medicare. But recall, okay, Medicare has a two year lookback as far as your income is concerned. So you want to make sure that any of those, um, Roth conversions are done prior to the age of 63, because, you know, that's going to ultimately determine what your Medicare Part B and part D premiums are going to be once you hit age 65. So again, that prime window for Roth conversions is between your retirement at whatever age and age 62. So if you do end up triggering Medicare means testing for a two year or two, rather, while you are doing your Roth conversions, you may find that it is still worthwhile, and then you may be able to appeal your Medicare decision through filling out an IRS form. That's SSA 44.

Producer:
That's right. And so if that is something that you need help with and help deciphering and making it all make sense to you, that's a good reason to reach out. Money Matters with Mike comm is the website to do that. The second window for Roth conversions, Mike is is between retirement and when you start taking either Social Security or any pension income that you might be lucky enough to get, right?

Mike Zaino:
Yeah. Because, you know, once you start taking Social Security, your pension income, you know, your income may be significantly higher and you may actually want to do smaller Roth conversions. So that's an additional argument for deferring Social Security benefits for a few years, to allow you to get in those Roth conversions and ultimately make sure that your Social Security is growing by 8% a year. Every year you delay.

Producer:
Yeah, max out that benefit. Definitely. And then the third window lasts until required minimum distributions. Those RMDs that we love to hate, uh, begin. And they begin now at age 73. Yeah.

Mike Zaino:
And our 40 year olds out there may not be, you know, going, what the heck is an RMD a required? Minimum distribution. Okay, so let's just pose a scenario. You've done so well with our financial plan that you don't even need the money that's in your 401 K. Wouldn't that be a great, uh, result of of planning throughout your entire career to have a nice retirement? And let's say that you don't need any of that money that's in your 401 K well, this year. All right, required minimum distributions are the age of 73. So if you attain the age of 73 the first year you have to take the money in April. But every subsequent year you get until the end of the year of the year that you turn 73, they're going to come knocking on the door. That's the IRS saying, pay me some tax. They're going to require you to take small distributions from money that you didn't need just so they can collect the tax. And so, you know, if you still sitting on that retirement tax bomb at that point, guess what. The conversion window for you. Well it's probably closed. So you want to definitely convert before RMDs are due.

Producer:
Yeah that's that's right. And you know just time is of the essence here. And so make sure and explore that plan are of course, what we're going to say to you at this point is don't enter retirement without a plan. Right. Without a plan for both taxes and Social Security. We just mentioned that a moment ago as well, because, you know, there's probably going to be some changes there, right? Mike.

Mike Zaino:
Yeah, we definitely anticipate changes to Social Security that are coming in the next decade or so. So it is critically important that you get in contact with us to learn how you can maximize your own Social Security benefits. And then we can tell you how whatever you do will affect your tax burden in retirement. So again 704 5601573 or go to Money Matters with Mike comm and schedule your free no obligation consultation today.

Producer:
Want to know where your hard earned money is going. It's time for an inflation demonstration.

Producer:
Boy, I've always known, Mike that I cannot afford to go to the Super Bowl in person. I've just. I've just known that pretty much my entire existence. Boy, I really know it this year because the prices just keep going up and up and up, right? I mean.

Mike Zaino:
Tickets to the NFL's big game, they're going for a pretty penny. But why is that? Well, it comes down to limited supply and very high demand. Plus many people are just willing to pay those cost of tickets. And so as long as people are paying the prices, guess what, folks? They're going to keep going up. So, you know, as usual with sporting events, the closer to the field you are, the more expensive the seats are going to be. But when you purchase tickets that are in a zone without a designated seat assignment, typically tickets are typically a little bit lower. So here's how much the tickets have been selling for on various websites. On StubHub. Get this folks from $6,561 all the way up to $89,100 plus stub or plus fees, rather, and SeatGeek and Ticketmaster and Ticketmaster and on location. All of those have equally outrageous ticket prices. Could you imagine spending 89 grand to go to a game?

Producer:
Oh no. And unless I made less, I had as much money as say, you know, somebody like Taylor Swift, Bill gates. Right. Exactly. The richest people in the world. Yeah, boy. Well, there you go.

Mike Zaino:
Never gonna happen.

Producer:
The inflation is hitting the Super Bowl. Definitely. Well, Mike, that's going to be all the time we have for this time around on the show. But as always sir, thank you for everything that you bring to the table. And we'll talk again next time.

Mike Zaino:
Matt I really appreciate you and everything you bring to the table as well. But most of all, folks, I appreciate you, our listeners, without you, I've said it before and I'll say it a million times again, this show doesn't exist. Okay? Our goal is to help you guys out. So if you know anybody that can benefit from what we put out on the airwaves, please share the show and whatever you're doing this weekend, enjoy that Super Bowl. And if you're not watching the Super Bowl, enjoy whatever you're doing to its fullest extent and make it a great day.

Producer:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with Mike.com or pick up the phone and call 704 560 1573. That's 704 5601573 not affiliated with the United States government. Mike Zaino does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information. Are you concerned about market volatility, rising taxes, economic uncertainty and how it could all affect your future in retirement? Then tune in to Money Matters with Mike to learn how you can protect and grow your hard earned money. Money Matters with Mike every Saturday at 9 a.m., right here on FM 100.1 and Am 1340. Schedule a free, no obligation consultation now at Money Matters with Mike.com.

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, automated translation, share transcripts, world-class support, and easily transcribe your Zoom meetings. Try Sonix for free today.