MMWM Full Show_0715.mp3: Audio automatically transcribed by Sonix
MMWM Full Show_0715.mp3: 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 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 Mike Zaino.
Mike Zaino:
What's up? What's up? What's up? Happy Saturday, people. It's Mike Mike Zaino coming to you live from Fort Mill, South Carolina. And what a great day to be alive in these United States of America. Today, we have a packed show full of meat for you to digest this week as you go through your week. And I have the distinct honor and privilege of working with my co-host today, the one and only Mr. Matt McClure. Matt, how are you doing today?
Producer:
I'm doing great, Mike, how are you? Good weekend so far.
Mike Zaino:
Great weekend so far. I woke up and I'm staring at branches and not at roots.
Producer:
I love that. That's always that's always a positive. That's the best way to start the day, right?
Mike Zaino:
Absolutely. Any day you wake up above dirt is a good day.
Producer:
Absolutely. And at least, you know, that's been that's been my experience so far. But, yeah, we do have a packed show today. You know, you're talking about meat for everybody to chew on. If the question is, where's the beef? The answer is right here this week because there's a lot to talk about. Money matters with Mike is the show. And of course, folks, money matters with Mike. Wwe.com is the website. You can go there to schedule a free consultation. You can also subscribe to this show wherever you listen to podcasts, including Spotify, Apple Podcasts, all the biggies, and you can leave us a rating. We'd really appreciate that as well. So Mike already asked you about how the weekend is. How was the week? You know, we had this inflation report come out midweek and it was just it was worse than people expected.
Mike Zaino:
It was. It was. And again, people are feeling the pain and they're feeling it at multiple places, whether it's the grocery store, whether it's the pain at the pump. We're all feeling it right now.
Producer:
Yeah, absolutely. And it was what came out was the consumer price index. That's the sort of the measure of inflation. So what you're paying for goods and services in the month of June, what you paid on average in the month of June compared to the year before, in the month of June. And so that was up 9.1%. Overall costs are 9.1% higher this June than last June. Of course, now we're in the month of July. One of the good things is that hot, highly volatile category is energy prices always. And that really has an effect on the overall consumer price index, which is that measure of inflation. And so the good news is for us in July that gas prices have started to come down and they've been coming down for a few weeks. So hopefully maybe that'll continue.
Mike Zaino:
But your lips to God's ears, brother.
Producer:
Hey, I'm. I'm an optimist.
Mike Zaino:
Yes. Yes, you are. I mean, I don't know if a lot of our listeners understand the Consumer Price Index. Heck, I'm in the business and I have to go research it a little bit before we talk about it, just being honest. But to put that in terms that most of our listeners can understand, if your money is in a bank and a savings account and you're earning less than 1%, you may think, Hey, I'm earning on my money, but you're actually losing 9.1%, which plus your gain of one, you're down 8.1%. And that's what that means. And overall, it's just a horrific time to have your money in those vehicles that are going to be exposed to all of these types of of attacks.
Producer:
Yeah. And the losses that that go along with, it's the markets have been so volatile as a result of inflation and other things that are that are happening with the economy, not only here in the US but around the world. It's just it's rough everywhere. So yeah, it's been something that that we're watching and trying to trying to not only tread water, but we're trying to to help folks really know exactly what to do during this time. And we'll get into a lot of that kind of a theme of today's show, Mike, is Who do you trust with your money? So I'm just going to kind of start things out here as we get into the meat of the show. As you said earlier with that question, who should people trust with their money?
Mike Zaino:
Well, you know, one of the fundamental building blocks, if you will, of building wealth is that you should be careful with whom you entrust your money to. And this is because trusting people without screening them only makes you vulnerable to both theft and dishonesty. And actually, it's one of the fastest ways to lose your money or be taken advantage of. One of the things that I like to do for people is show them my credentials. So if your. Financial advisor hasn't volunteered to show you what he is licensed to do. You may want to ask him or her the next time you have a conversation to do that. So I am a registered financial consultant, which means that I had to go through a pretty strenuous curriculum. To pass tests of knowledge and proficiency in every two years. I have to continue with continuing education. I'm also a member of the National Ethics Association that has me. Pay money to have them vet me for complaints and for. Marks or dings against my record. And I'll have you know, I've never had one. And so I've actually been very blessed and have written articles that have been featured in and contributed to major publications from U.S. News and World Report to Money magazine, Time magazine, The Huffington Post, Yahoo! Finance and and several others throughout the years. And so, again, you just want to make sure that you're dealing with somebody that you can trust.
Producer:
Yeah, and that's a huge thing if you don't have trust when you're talking about any relationship. Right. I mean, if you hear people who are relationship experts or marriage counselors, that sort of thing, you have to have trust in a relationship. And if you don't have trust in that relationship, then you can't really go anywhere from there. It's not built on a strong foundation. So that's a that's a big, big point.
Mike Zaino:
It is. And think about this. You guys all remember the story of Bernie Madoff, right? Oh, yeah. Yeah. When Bernie Madoff passed away, he still had 139 years left on his prison sentence. And anybody over the age of 30 remembers that story. So there's this guy named Bernie Madoff. He swindled thousands of investors for billions of dollars and ran one of the most elaborate Ponzi schemes in the history of Ponzi schemes. Well, in an ideal world, Madoff's conviction that would have been the ultimate deterrent for those wanting to commit fraud. In other words, purging the investment world of all those swindlers and of all the schemes, then investors could easily trust advisors with intelligent strategies and good credentials and so on and so on. But we don't live in an ideal world. Fraud is still happening in the schemes are getting much more sophisticated. I, I see clients all the time. I see attempts on me personally all the time. How many of you out there have gotten emails from the Nigerian prince who wants to give you, you know, $527 Million, if you'll just send him all your banking information. Right. And I guess I think that's probably how it started way back when. But they have gotten much, much more sophisticated to the point where I've received emails that I actually thought were from Wells Fargo, but they're asking me to do things that I know that banks would not normally ask to do. So I just called the bank and say, Hey, are you aware of this? And they put me in contact with their 800 number and they're like, No, absolutely not.
Mike Zaino:
That is fraud. Would you mind forwarding that to us? And so I did. And I'm just wondering how many of you out there in listener land have have experienced the same exact thing? Text messages are starting to become huge for fraudsters out there in the way that they will send the text. Again, you don't know who it's from, but it's got some of your information and it's phishing for the rest of your information and they make it look great. Where all you got to do is click on this link. People never click on link any link that you get, especially if it's asking you for financial data, phone calls. How many of you have gotten the phone call from somebody posing to be from the IRS? All right. And that if you have this lean against you and if you don't act immediately, then you're going to be arrested. They're going to send the police to your door. And the unfortunate thing is that the older we get, the more prone we are and the more susceptible we are to these types of scams. And it's really unfortunate because, you know, I thought I'd like to get a hold of one of those people that takes advantage of the elderly and, you know, do my own little bit of counseling with that person, so to speak.
Producer:
You and me both, because, I mean.
Mike Zaino:
It drives me nuts.
Producer:
It does mean, too, you know, because it's it's they take advantage of those who are the most vulnerable and those who are either in retirement or nearing retirement and can't. Afford to be sending somebody thousands of dollars or their banking information or whatever it is. It's just it's just absolutely wrong to take advantage. You know, we should we should be holding our seniors to. Putting them up on a pedestal, basically, and honoring them. Not trying to cheat them out of their money. It's just ridiculous.
Mike Zaino:
Absolutely. And so so one of the things for everybody to understand is that the IRS will never call you Social Security will never call you your banks, your credit card companies. They will never call you. They will never email you either asking for this information. If they're going to do it, they're going to do it in official writing and they're going to send it through the United States Postal Service to you so that everything is tracked. So if you're not getting something in the mail, and even if you do get something in the mail, make sure you make a phone call before you act just to vet it out. Another one that I see. Matt Hey, my friend or my relative, he met this guy, and I'm using air quotes when I say that. And he's been making so much money. Getting obscene rates of returns on investment X or investment Y or investment Z. And it seems like there's always a new next big thing coming up if he'll only give them another $10,000. Well, don't do that, because every Ponzi scheme has one thing in common. The investors are asked to give the money directly to the person that's committing the fraud or to an account that the fraudster controls. So don't ever, ever do that. Your money should only be held at a major third party custodian. And we work with only the best. We're talking about highly rated, multibillion dollar companies who have a lasting reputation that stood the test of time, the majority of which have been around since well before most of our listeners were in diapers. You want to make sure also that you are listed as the account owner for sure?
Producer:
Yeah, absolutely. Just great advice there to keep your money out of the hands of those who don't need to have any control over it or any control over you. You know, it basically it's one of those things if you hear somebody say, I know a guy who knows a guy red flag. Right. So so there you go again. Unless you.
Mike Zaino:
Unless you actually see the credentials and you vet the person and you make sure that they are who they say.
Producer:
They are. Right? Totally. And that's one thing. That's who you should trust with your money. If someone has those credentials, if someone is certified to take control of other people's money, give people advice on how to control their money and invest their money and make sure that it's safe and that they get a good return on that investment. That is someone who you should trust. So that is that that answers that question. Mike. So there we go. As we move on through the show here, of course, we like to share a little bit of financial wisdom in our Quote of the week. And this one comes from Warren Buffett this week.
Mike Zaino:
Or was that.
Producer:
So? It's some some guy, some schmuck who's never made a penny in his life.
Mike Zaino:
Only the most successful investor in the history of investing.
Producer:
Exactly. Oh, that guy. Well, this one comes from Warren Buffett, our Quote of the week. And it's the most important thing to do if you find yourself in a hole is stop digging. I love that. I mean, that's something, you know, it's like if you have a major debt or something and you want to get rid of that debt, don't go taking out a bunch of loans to pay off the other debt because you're just going to you still have the same amount of debt. It's just in another form. So that's one example. But I think that's that's great advice.
Mike Zaino:
It is great advice. And a lot of us men, we can use that as personal advice when dealing with the women in our lives, too, when we find ourselves in a hole. Stop digging. I know I've gotten myself into so much trouble when I just keep talking. So I have learned through time to just, you know what? My zip it. All right? You've dug the hole, you've made the bed. Now you got to sleep in it, right?
Producer:
That's right. Or sleep on the couch, whichever is going to be the case for that particular day after you've dug yourself that hole. All right. Well, good. That's our Quote of the week here. And hopefully you get some some advice and take take that to heart, folks. And now I like to we like to have a little fun here on the show. As you kind of know, if you if you joined us over the past several weeks, we've been on the air so far. But today what we're going to do is kind of debut a little bit of a new form of having fun in a game that you can play right along with us if you're in the car, if you're at home and just stay safe and don't get to, you know, emotional if you're behind the wheel because, you know, we're really going to rally up. No, we're really not. We're just going to have some fun. It's a game called Right or wrong, and it works basically like like, you know, like a true or false kind of a thing. So what I'm going to do is present a question or a statement, rather. And Mike, you're going to tell us whether that statement is right or wrong. All right. Okay, sir, here we go. So let's let's play right or wrong. And here's the first one. It could cost you as much as five and a half percent to buy a mutual fund from a stockbroker that works at a bank. Now, is that right or is that wrong?
Mike Zaino:
Matt. That's absolutely right. Five and one half percent is what it could cost you. You should not walk into a bank with, say, $30,000 to invest and leave that bank with $28,350 invested in a mutual fund. Or, you know, you could buy a fixed indexed annuity that includes up to a 10% bonus. And instead of you walking out with $28,350, you walk out with $33,000 in an FI account and then you can generate income in as little as 30 days, actually.
Producer:
Yeah. And that that's definitely a huge difference there. You want to walk out with less of your money or more? I think a lot of people would say, oh, I want to I want to leave with more. Okay. So that's number one. Here's number two. A variable annuity involves market risk and can lose account value. Is that right or is that wrong?
Mike Zaino:
That is 100% right. A better option is a fixed indexed annuity because you can never do worse than zero. In other words, zero becomes your hero if everybody else in the market is losing money. Take this year for an example. None of my clients have lost not one single penny due to market volatility, and it can help generate an income that you can never outlive.
Producer:
Yeah, and that's music to the ears of a lot of folks who are thinking about retirement right now and trying to plan for their future. All right. Two down, one to go here. And here's number three. Our last one, a variable annuity has 3 to 6% in product fees and is a mutual fund wrapped inside an annuity. Is that right or is that wrong?
Mike Zaino:
Once again, Matt, you are absolutely right. The word variable means change. We like to call them scary ible annuities. If you currently hold a variable annuity or any other annuity for that matter, that isn't meeting your expectations. Give us a call today and let us get a second set of eyes and see if we can improve your situation.
Producer:
Yeah, absolutely. And when you do that, folks, of course, that is 100% free and get a free consultation by giving Mike a call or going to the website. It's Money Matters with Mike. Com And talk about that just a little bit, Mike, and what it's like when people call you for that free consultation.
Mike Zaino:
And just like you said, we're going to be able to provide comprehensive consultations at absolutely no cost and no obligation to our listeners and only work with us if that's what's best for you. If it's a if it's a fit, we'll work together. If it's not, we'll part as friends. No harm, no foul.
Producer:
Yeah, absolutely. So that's that's great to know and great for our listeners there. Well, moving along here in the show this week, Mike, we're going to listen to a little bit of of advice and insight from our friend Ford Stokes, who is a great guy and knows just about all there is to know about annuities.
Mike Zaino:
And he's written a book guy.
Producer:
Yeah, he's written this book called Annuity 360, which is very, very insightful. It has a lot of great info spelled out in plain English, which I love, because, you know, that's how I like to operate. But here's chapter two of the book. We're going to listen to it and get a little bit of insight from it. It's called Why Annuity and Life Insurance Companies are Competing for Baby Boomer Dollars. Let's listen to it. We'll be back right here on the other side in just a couple of minutes.
Ford Stokes:
Chapter two Why Annuity and life insurance companies are competing for baby boomer dollars. Big idea. Annuities counter one of a retiree's biggest fears outliving their wealth. Annuities create lifetime income streams. There are 73.4 million baby boomers in the United States that are close to or are already in their retirement years. Baby boomers put between nine and 10% of their pay towards their retirement. Only 55% of boomers have any money saved for their retirement. More than four in ten boomers inaccurately believe that Medicare will cover long term health care costs. Baby boomers hold $2.6 trillion in buying power. They've had more time to build their wealth in comparison to other generations because some might still be in the workforce and making more money. Baby boomers control 50% of the nation's wealth, outspend younger generations and are more likely to spend their retirement savings on themselves rather than passing them down. Total US retirement assets are about $28 trillion. More than half of those assets were either defined contribution plans or individual retirement accounts. Some other facts about baby boomers and their spending habits. 69% of baby boomers either expect to or are already working past age 65 or don't plan to retire. Only 26% of baby boomers have a back up plan for retirement if they are forced into retirement sooner than expected. Baby boomers make up 46.8% of pet spending. Baby boomers are expected to spend 3.4% more on health related purchases than their parents did. Why are annuity companies targeting baby boomers? Boomers face many issues when planning for retirement.
Ford Stokes:
The three primary reasons are, number one, growing the money they have already saved. Number two, dealing with and preparing for unforeseen expenses, the largest of which are tied to health care and long term care. Number three, optimizing their financial plans when their exact lifespan is unknown. Annuities exist to help boomers with the last issue with an annuity. A retiree gives an insurance company a lump sum of money in exchange for an annual income that will last throughout their lifespan. Annuities have the potential to become useful tools in baby boomers portfolios when planning their retirement. They offer protection from market volatility while also eliminating the risk of outliving one's retirement savings, which are not guaranteed by portfolios that lean heavily on stocks and bonds. The demand for retirement income amongst baby boomers already exists, and annuities are the only products that can provide a hedge for a long life like longevity insurance reasons. Baby boomers should be interested in annuities. They are falling short of their retirement goals. Roughly 10,000 baby boomers retire every day, but a very small percentage of them believe they can retire and live comfortably throughout their golden years. Only 25% of baby boomers think they have enough money to retire comfortably. Many couples may be on the right track, but unforeseen circumstances such as health problems or staffing cuts might force them into retirement earlier than planned, leaving a much larger income gap. Baby boomers are looking for a reliable source of retirement income and annuity.
Ford Stokes:
Companies are beginning to tap into this market because they recognize the need. Not all annuities are created equal. There are two main types of annuities immediate and deferred. The right kind of annuity depends on your financial goals, your situations, and your needs. One thing that makes annuities so attractive is that there are so many options available. While it may seem overwhelming, a financial advisor can help you sort through all of your available options and make a smart choice for your money security for their income. Annuities can help build a secure retirement through different income strategies, while also alleviating any stress or fear they may have left over from the financial crisis of 2008 and the bear market. Annuities can play an important role in a plan, along with your Social Security, health care and other factors. Annuities can address issues such as maximizing your Social Security benefits, which help create an income that you can never outlive. How annuity and life insurance companies have responded to Baby Boomer needs interest in hybrid products. Baby boomers don't want to pay a fortune for something that offers them only a part of what they need. With less income to be counted in their retirement years, already paying for individual products to meet each of their needs can be too expensive. Life insurance companies heard these concerns and responded with new hybrid products. Many life insurance companies now offer some kind of long term care rider on their whole life or universal life products. Generally speaking, these riders provide coverage for long term care should you need it or you receive a death benefit if you don't.
Ford Stokes:
These combination products have grown from 6 million in 2008 to 2.6 billion with a B in 2013, and they are still growing need for guaranteed income. Baby boomers are also concerned with outliving their money. They want to enjoy their retirement, but they also don't want to run out of funds. The industry responded to these fears by offering a variety of products with guaranteed lifetime income. These products include variable and indexed annuities with guaranteed living benefit riders and immediate or deferred annuities. The annuity industry has been transformed by these new products, according to PricewaterhouseCoopers Employee Financial Wellness Survey. Since the economic downturn of 2008, 76% of retirees say that creating a guaranteed income is their top retirement planning priority. Annuity companies rose to the occasion to create products to meet the needs of baby boomers and provide them with a sense of security. The need for advisors. Annuity companies have created many products to meet the needs of their consumers. This is a good thing, but it can make for a tough decision on the part of the investor with so many options to sort through. Some pre-retirees and retirees can't sort through all the information. Many are afraid to make the wrong decision, which leads them to make no decision at all. A large part of the planning process involves an advisor educating their clients on all of their options so they can make the right decision.
Producer:
The weather is warm. Are you planning to use some of your hard earned money to get out of town? I'm Matt McClure with Retirement Radio Network Powered by a Metro Life. Whether you prefer a trip to the mountains. Soaking up sun at the beach. For the thrills and chills of a theme park. Here's a destination for pretty much anyone who's looking to travel over the summer. The consumer finance website, Wallethub, recently did a study ranking the top summer travel destinations. Orlando came out on top, followed by Washington, D.C. and Tampa, Florida. Austin, Texas. And Salt Lake City, Utah. Rounded out the top five. Wallethub analyst Jill Gonzalez.
Stephanie Asymkos:
The study was based on 43 metrics, including cheap flights, number of delays, hotel costs and COVID numbers.
Producer:
In the meantime, inflation probably has you watching your budget more closely than before. So when considering travel costs and hassles, the website says Santa Rosa, California, is your best bet. At the other end of the spectrum, McAllen, Texas has the highest costs and most hassles. But what if you have your heart set on escaping to a specific destination and it's on the pricier side? There are ways to save no matter where you're headed. Travel expert Mark Ellwood recently told The Today Show.
Ford Stokes:
Before you do anything, if you were a member of a warehouse club like Sam's Club or Costco, go to their websites because they sell travel at a big discount.
Mike Zaino:
Brilliant. So that's immediately you might find you could suddenly cut the price.
Producer:
Of course, there are also travel websites like Expedia, Travelocity and Kayak, just to name a few. But if you're looking for discounts specifically geared toward retirees, the senior list has a pretty extensive directory of them, including which airlines, hotels, cruise lines and rental car companies give discounts to those over a certain age. So how can you head away for a warm weather vacation without breaking the bank? That's a key question to consider as you keep a close eye on your budget with the retirement radio network powered by a mirror life. I'm Matt McClure. Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer.
Producer:
You're listening to Money Matters with Mike. Visit Money Matters with Mike.
Mike Zaino:
Nibbling on.
Producer:
Sponge cake. Well, that was a clip from Annuity 360, the book by Ford Stokes and the chapter there. Why Annuity and Life Insurance Companies are competing for baby boomer dollars. Huge, huge dollars there because there are so many baby boomers retiring each and every day and every month and every year. So, so very important info. Well, okay, Mike. So I am really excited about our next segment, which is also this is the first time we're actually kind of doing this segment as a as a formal thing. And I say formal because there is an intro which is the most exciting thing for me because I love the intro to this segment. So. So the segment itself could just could be awful, but, but hey, the, you know, the intro to it really makes up for it. So here we go. It's very it's very dramatic. Be prepared, everybody, for the intro to our new segment called Problem Solver.
Producer:
It's time for this week's Problem Solver.
Producer:
Now that I told you, Mike, that was that's big and dramatic. So there we go. We can't disappoint people now with with our segment after that. So what I'm going to do in our Problem Solver segment, Mike, you always like to say you like to be a problem solver. So what I'm going to do is present you with a problem, which I present problems to people all the time. So I'm used to it. But I'm going to do this to you here today, Mike, and you are going to give us some suggestions for possible solutions to this problem. So this week's problem to be solved is how can I minimize the impact of inflation on my retirement? We talked a lot about inflation at the toward the top of the show. It's on everybody's minds. How can people minimize that impact of inflation on their retirement right now?
Mike Zaino:
That's a that's a great question. And I think a lot of it has to determine or be determined, I should say, with one's time horizon before retirement. You know, if you're still young, you're in your twenties listening to this show, your thirties, your forties, even stay invested. Don't freak out because of a little bit of market volatility. One thing that history has taught us is that markets tend to repeat themselves. They are cyclical. So what goes up must come down. What goes down must go up. It's just the cycle of the economy and over time you want to stay invested. And for those of you who have lost a little bit of money and you still have time to make it or allow it to come back, don't freak out because again, it will come back over time. Those of you, however, who are later in your careers or you are knocking on the doorstep of retirement or who are already retired, well, you guys have to take some action and stop the bleeding. And so there are ways that you can do that, whether that's through a portfolio adjustment or a spending adjustment, either one. So a lot of folks out there have money in bonds that are underperforming and bonds tend to lose value as interest rates are going up. And the Fed has already announced that they're going to continue to raise interest rates to kind of get a hold on this inflationary period.
Mike Zaino:
Well, if I were you and I were in your shoes, I wouldn't be overpaying for an underperforming product at all. In fact, I would probably look toward other solutions that are available to you where you can participate only in market gains, only in market gains, and none of the market losses. And so if that's something that you may be interested in, then obviously you want to give me a call and you can do so by either reaching out at 704 or 5601573 or by going to the Contact US page on money matters with Mike again, that's Money Matters with Mike. One word all spelled out and minimizing the impact of inflation as far as retirement is concerned. For those of you who are again right there or going to be there within just a few short years, you need to wrap your brain around income as opposed to assets. Just because you have one big number or you've acquired a lot of assets doesn't necessarily mean that you're going to be able to make that those assets turn into income during retirement. You need to have a plan that focuses solely on generating the income that you need to live during retirement and enjoy the life that you've worked so hard to build.
Producer:
Yeah, that's great advice there, I think for a lot of folks because there's this focus, at least socially by people, I believe and correct me if I'm wrong here, Mike, but I think people think that, okay, I've got to have X amount of dollars in some big nest egg account somewhere and that I need to reach this goal of having this big lump sum of money. But that is not really necessarily for for everybody the way to go about it.
Mike Zaino:
No, exactly. We've talked about that on several of our previous shows and that one of the biggest mistakes that people make when planning for retirement is they think they have more money saved than they actually do. So if you have a lot of money in your 401. K or you have a lot of money in an IRA or multiple IRAs or 403 B's, you cannot forget that those vehicles are tax deferred accounts, which means you owe the government taxes on those distributions and they can tell you when to take them too. There's a thing called required minimum distribute. Musicians that many of our listeners are already familiar with because they're being forced to take them now, whether they need the money or not. If you have money in a tax deferred account and are fortunate enough to where you don't need the money, the government is going to come knocking on your door the year that you turn 72 with their big greedy paws out saying Gimme, gimme, gimme right, and you're going to have to pay them taxes on minimum distributions that they force you to take. So that is why retirement is actually more about income than it is about acquiring assets and or having one big nest egg.
Producer:
Yeah, that's right. I mean, you know, your you've lived your life with an income and, you know, budgeting based on that income. And that's a good thing to keep in mind going into retirement as well. Is having that income for your later years, especially an income that you you cannot outlive? Just before we go into our next little segment of the show, because we're going to talk about more about retirement planning and why people need to plan right now and why it's great to have a plan. I wanted to share with our listeners this story that I put together just this week about a story that I actually saw online on CNBC. And it's sort of the origin of this. And it talks about the potential for people to get used to the idea of retirement by sort of taking a semi-retirement or a partial retirement beforehand. Right. To sort of prepare not only to get prepared financially, but mentally, emotionally as well, which is also a very important thing. So let's listen to this and we'll we'll talk about it on the other side. How do you plan to prepare mentally for retirement? I'm Matt McClure with the Retirement Radio Network. Powered by a mirror life. When you think of retirement preparation, money is likely the first thing that comes to mind. And while getting your financial house in order is extremely important, it's not the only thing to consider. The Mayo Clinic, the world.
Ford Stokes:
Famous Mayo Clinic, has studied retirees, and they've discovered.
Producer:
That there is a 40% likelihood that in retirement.
Ford Stokes:
People are going to experience elements of clinical depression. That's an astounding.
Producer:
Figure. Riley Moynes is author of the book The Four Phases of Retirement on his YouTube channel. Moynes says leaving your career behind can be a difficult thing to get used to. It's a.
Mike Zaino:
Time, actually.
Producer:
When we begin.
Ford Stokes:
To miss the routines that.
Producer:
We had. We miss our colleagues.
Ford Stokes:
We miss our our work. We miss the sense of purpose that we may well have had, and we become kind of disconnected from, it seems.
Producer:
The world, for example, before retirement, you may imagine yourself loving your newfound free time, but for many.
Ford Stokes:
Retirees, it's exactly the opposite of what they expected and hoped retirement would be.
Producer:
So how do you tackle the potentially negative feelings that come along with retirement? Well, one suggestion is to try a partial retirement before you jump in with both feet. A recent article in The Motley Fool says, You can do this by checking with your employer to see if they're comfortable with you scaling back your work hours. You might be surprised at their flexibility, especially if you've been with them for a long time. Now, if that's not possible, try getting a part time job with a different company or starting your own freelance business. Doing that could give you the opportunity to still earn money, leaving your retirement accounts intact longer and see how you handle having more free time. And the article says that means you can potentially avoid mental issues like depression. So will you quit working cold turkey or take retirement one step at a time? That's a key question to consider as you prepare financially and mentally for the future. With the Retirement Radio Network Powered by a life. I'm Matt McClure.
Producer:
If you've got money problems, Mike Mike Zaino has money solutions. You're listening to Money Matters with Mike.
Producer:
So I kind of like that idea, I think, Mike, about taking a partial retirement just to get used to it. I think one thing that people don't necessarily take into account because we talk so much about financial planning for retirement, is that mental and emotional side of it? Because I know my self and I'm in my forties now and so I know that I have to be doing stuff all the time. That's just the way that I'm wired. And my dad was that way and I feel like I just feel like I have to be productive all the time. I've got to be going, I've got to be doing something. And so that's the way that I really feel and that's the way that I am. And I think that a lot of people are that way, too, and they don't necessarily take into account when they get to retirement. They got a lot of time on their hands.
Mike Zaino:
They have an absolute lot of time on their hands. I had a really good buddy of mine named Brad VSP. Brad, I hope you're doing well out there. He retired. He signed just a massive deal back in the day, and he was able to retire at 51 years of age. And after eight months, I'm talking to him and he's like, Mike, I am so bored. He goes, I don't know whether to turn left or turn right out of the driveway. When I get to the top and I'm thinking to myself, That's no way to live. He's like, All my friends are still working. And he goes, I can only work out so much. And he's a pretty buff guy anyway. And so one of the biggest pieces of counsel that I can give anybody who's considering retirement out there is Don't retire on emotion. Don't retire just because you're eligible to retire. You may have been working for a place for 20 years and you're tired of working there, but really, if you retire at 60, 60 is still young people. People are living now to be 100 years old. And so you're talking about 40 years of doing what? And so unless you have a plan as far as how you're going to attack that time and typically in retirement, what I see is the first ten years of retirement, we call those the go years.
Mike Zaino:
That's when people who are able to and have prepared for retirement, they're going they're travel and they're going to see things and do stuff that they always wanted to do and really, really taking advantage of the time that they have on their hands. And the next ten years of retirement are the slow go years. They're still traveling. They're may be not going every other month or every month. I've seen people do vacations, but they're going to take one or two vacations a year. They're probably going to revisit some of the places that made great impacts on on their lives so that they can create more memories. And they're going, but they're just not going quite as much as they did those first ten years of retirement. And then the last ten years, we call those the no go years. They're the ones that are they're sitting on the on the back porch of the front porch, sipping lemonade, watching the grand young'uns play in the yard and reading books and just taking advantage of the fact that they can live their life. But again, that's that's that's what I have learned by working with the senior market or the retiree market for, for the last dozen years is that you absolutely want to have a plan for how you're going to spend time in retirement.
Mike Zaino:
And there's a big difference between eligibility and also affordability. And we talk about this on every show because I want to make sure that this does not get glossed over and that all of our listeners understand that just because you're eligible to retire does not mean you can afford to retire because nobody wants to retire, only to find out eight months later that they have to go back to work, not because they want to, but they have to go back to work because you've just left the job that presumably was paying you a decent amount of money on an annual basis may or may not have had some benefits, and now you've got to go get an hourly job unless that job will take you back. So that's why I think that that partial retirement, you know, that that eases you in. My mom, she still works and she's in her mid seventies right now and she does it to for the social aspects, number one of being able to be involved. And she does it as well for the financial impact and she does it for the mental impact just to keep herself engaged. So people are living longer and therefore are working longer as well.
Producer:
Yeah, that's right. And you know, that brings us to sort of this idea of everybody sort of no matter what stage you're in. But, you know, at least as far as I'm concerned, the earlier the better. Well, everybody needs to have a plan, right? It's now is the time to plan because you need to have that in. Place so you know where you're going. It's like it's kind of like your roadmap, you know, for for your future, right?
Mike Zaino:
Absolutely. I mean, wherever you are going about anything, plan it out and then work that plan. Do you want to launch quickly or exceed your goals? You may be able to start now by yourself, but if you want the best for yourself, you can't do it by yourself. That's why you need to seek the help of a professional. So if you want your spouse to be well taken care of after you're gone, then it's very important to give us a call and get started on a comprehensive plan for your family. After all, women are living longer than men. I always say we like to give up first. I remember. I remember, you know, what was it? Not The Jeffersons, but. Oh, my goodness, Sanford and son. Oh, those of you are old enough to remember Sanford and son. Oh, Weezy. Looking up at the sky. Right. So you want to reduce the fees that you're paying as soon as possible. And if that's you, you want to make sure that your portfolio has more room to grow. Well, we can eliminate fees with an effective bond replacement strategy. Well, why else would you need a plan? Again, inflation. We talked about it today at an all time high. You don't want to go back or have to go back to work, let's put it that way. Right. And so that we know that running out of money is the biggest concern that people have in retirement. And having a plan that takes all of these factors into consideration will enable you to not have to go back to work. So if any of what I just spoke about hits a nerve with any of our listeners, give us a call and let us get a plan for you so that you can actually start working that plan and have confidence in your retirement.
Producer:
Yeah, absolutely. And that once again, the website folks, with all of the contact information there and the Contact US page on the website is Money Matters with Mike Dotcom and that is the great place to go for that free consultation. You can also find out more information about Mike and the show. You can hear past episodes. It's a great place to check out Money Matters with Mike Dotcom. Well, you know, you spoke just a little bit there about women living longer than men, Mike. Let's actually take a listen to another story that I have put together here for the show about women in retirement and women, you know, not doing as much of the financial planning for retirement as men do. Let's take a listen to this and we'll come back on the other side and get closer to the end of our show today. Here we go. This is women in retirement. When it comes to saving for retirement, who is winning the battle of the sexes? I'm Matt McClure with the Retirement Radio Network Powered by America Life. The gender gap is a real thing in the US with women making less money on average compared to men. Congress passed the landmark Title nine law more than 50 years ago prohibiting gender based discrimination in education, and that resulted in women pursuing careers that had previously been considered off limits. And while females have made strides over the years when it comes to finances, a new study from TIAA shows it's men who are setting aside more money for retirement 27% more, to be specific. And while that number is better than in years past, it's still a significant gap.
Stephanie Asymkos:
And in the past year, 78% of men have increased their retirement portfolios through stocks, compared with 51% of females. And now this imbalance really underscores not only the gender wage gap, but it also has really far reaching implications for long term retirement security.
Producer:
Stephanie Asymkos with Yahoo! Finance recently reported on the gender gap in retirement savings.
Stephanie Asymkos:
When stretched over the course of a career, a woman's lower wages really directly impact her ability to save for that nest egg and then live comfortably in retirement.
Producer:
And she says, the pandemic surely didn't help the situation. In fact, it got worse.
Stephanie Asymkos:
Because of the pandemic. A preponderance of women have downshifted, taking time away from work to really concentrate on these pandemic measures of supervising remote schooling for children or caring for aging parents.
Producer:
The TIAA study also showed women have some catching up to do when it comes to financial literacy. When asked financial questions in a survey, women got 45% of them write, compared to 55% for men and alone with. Tiaa told CNBC that all of this underscores the need to equalize financial education among the sexes. So women. Do you have a sound retirement plan in place? That's a key question to consider as all of our retirement years draw closer with the retirement radio network powered by a micro life. I'm Matt McClure.
Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty and how it all could affect your future in retirement? That 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 noon right here on FM 100.1 and AM 1340. Protect your hard earned money today and schedule a free no obligation consultation now at Money Matters with Mike. You're listening to Money Matters with Mike. Listen closely, because money matters. Here's Mike.
Producer:
So Mike, when we're talking about retirement, of course, we're not only talking to the guys, we are talking to the women as well. And that story just reveals a little bit about how women need to be more involved in retirement planning based on the statistics that we see.
Mike Zaino:
Absolutely. It's one of those things where women tend 80% of of widowed women change their money managers. They change the relationship because they never had the relationship going into losing their spouse. And so because of that, women are very near and dear to me. And my I'm married. I have two daughters without women, men, we don't exist. Right. And so if you're a if you're a woman out there and you don't have a plan together, let me let me help you get on track if you're a single mom. My mom was a single mom raising three boys, working multiple jobs growing up. And so single moms out there, if you don't have a plan together and I know sometimes it's a struggle and you're just trying to make ends meet and put food on the table. But if there's any way that I can help you, I am happy to do so. And so again, women are living longer and because of that need to be very, very careful with where their money is being invested and how their money is being spent to ensure that they never run out of money during their lifetime because. The longer we live, the more money we'll spend.
Producer:
Right. That's a very important point to to kind of stick a pin in, because women are already living longer than men and everybody has been living longer over the past, you know, several years. Life spans have been getting longer across the board. So it's important that women are going to be living the longest that they've ever lived potentially. So that's why it's so important, right, to have that plan in place, not only for men, but but especially for women. As you say, it's very, very important thing to to point out. Well, just about to get to the end of our time together for this week here, Mike. It's kind of it's actually kind of flown by. We've we've had a lot of fun and we get a lot of great of information, a lot of great information to folks. But I want to close out the show by just asking you one more time how folks can get in touch with you and what it's like when they do have that initial conversation with you about their retirement planning.
Mike Zaino:
So again, the easiest way to get in contact with me is to go to the website. Money matters with Mike. Fill out the contact us page or call me 704 560 1573. That is my direct number. The only time I won't answer my phone is when I'm on the other line. When I'm with a client, if I am with my wife or daughters on a date night, or if I'm just taking some personal time, which I rarely do, but I do need to do that every once in a while just to recharge. But my commitment to everyone is that if you leave me a message, I will call you back within 24 to 48 hours. The easiest way to get a hold of me is through text messaging. I mean, heck, you can send me an email. You can send a carrier pigeon. I'm joking on the carrier pigeon. Okay. But you know, what we're going to do is we're going to analyze your financial situation. We'll dissect what you currently have. You may have some annuities that that that are underperforming. You may be, as we stated earlier today, in a variable annuity. And you want to stop losing money, stop the bleeding. We'll find out what fees you're currently paying. And then two of the biggest areas that we help a lot of folks in are Medicare and in Social Security planning. So the biggest thing that I can tell people is that we're not salespeople here. We are consultative in nature. We are not transactional. If we can help you, we'll make suggestions whether you take us up on those suggestions or not. Totally up to you. You know, our goal is to get you to wake up and start looking out for yourselves, because most folks have not been looking out for themselves for the last 20 plus years. And in this type of economy, it is extremely important that you take matters into your own hands and be your own advocate, but you can't go it alone. You must seek the counsel of a professional to help guide you through these times.
Producer:
For sure. Absolutely. If you want the best for yourself, you can't do it by yourself, as you said. And that's that's a very important note, I think, to end on. Again, this is money matters with Mike and money matters with Mike dot com is the website. Well Mike it's been great. I am ready to enjoy the rest of my weekend. I hope you are as well. And we'll do this all again next week, shall we?
Mike Zaino:
We shall, sir. So out there in listener land, I hope you have enjoyed today's show. Please. If you know anybody who's not listening, go ahead and share money matters with Mike and let them know that we have a lot of meat on the bone when it comes to financial topics and we can help you earn more and keep your money protected in retirement. So thank you for listening today. Without you, we don't exist and go on and enjoy your week ahead wherever it may take you. And as always, make it a great day.
Producer:
Thanks for listening to Money Matters with Mike. You deserve to work with a financial and insurance expert who can offer strategies for protecting and growing your hard earned money to schedule your free no obligation consultation visit money matters with mike dot com or pick up the phone and call 704560 1573 That's 7045601573 Not affiliated with the United States Government. Mike 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. It does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. AmeriLife assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness. Are the results obtained from the use of this information?
Producer:
Remember, all of Mike's listeners receive a free financial consultation just for listening to the show. Visit moneymatterswithmike.com to learn more and schedule an appointment. Thanks for listening to Money Matters with Mike and subscribing wherever you listen to podcasts. How long will inflation last? I'm Matt McClure with a retirement radio network powered by a married life. Americans and people around the world are struggling through the worst inflation we've seen in four decades. Everything from a gallon of gas to the food you buy at the grocery store is all more expensive these days.
Stephanie Asymkos:
We're also seeing it in all sorts of other everyday services. Nail salons, hair salons, you name it, you're seeing difficulties in terms of higher prices.
Producer:
Tara Sinclair is a professor of economics at George Washington University. She says the inflation situation is a bit of a vicious cycle right now.
Stephanie Asymkos:
Employees are asking for higher raises and then employers are trying to figure out how to pass those costs on into the goods and services that they're selling.
Producer:
Ongoing supply chain issues are a huge factor driving inflation. In an ideal world, Sinclair says, fixing those issues would be a perfect outcome.
Stephanie Asymkos:
If we could provide all the goods and services that people are demanding at the current prices, then we would be in much better shape and we wouldn't see this competition to buy these goods and services. That's really pushing up the prices, but.
Producer:
It doesn't usually work that way. Instead of increasing supply, the way we usually tamp down inflation is on the other side of the equation.
Stephanie Asymkos:
And so instead it's about slowing the demand for goods and services. And the way that that happens is through the Federal Reserve, our central bank, raising interest rates.
Producer:
And that means things like car loans, mortgages, home loans and credit cards get more expensive. It's not the most pleasant way to do it, she says. But that is likely how inflation will cool down in the coming months. The Fed's interest rate hikes have also caused a lot of volatility in the markets. But Sinclair says if you're planning for retirement, it's not all bad news.
Stephanie Asymkos:
It is important to remember that they have seen strong years of growth recently up until now. And so we're seeing a lot of people that have a lot better financial conditions now then, particularly if we think about people that were trying to retire after the global financial crisis.
Producer:
And she says many pre-retirees are looking to move assets into safer investments.
Stephanie Asymkos:
And there are these higher interest rates from the Fed or good news. So hopefully they can look forward to to that and maybe be able to find a steady annuity that will support them in retirement.
Producer:
So how will you respond as interest rates go up in an effort to bring inflation back down? That's a key question to consider as you plan for your retirement years with the retirement radio network powered by a merrill life. I'm Matt McClure.
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