Will Social Security Be Around When You Retire?

3.24.23: Audio automatically transcribed by Sonix

3.24.23: 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 day to be alive in these United States of America. Money Matters with Mike is a show designed to arm you with information each and every single week and give you plenty of meat on the bone to chew on. And today, we are absolutely bringing the heat again. On today's show, we're going to talk about how we help families prepare for retirement by providing solutions to problems that we all face. Okay. And as always, I have the distinct honor and privilege of being joined by the one the only my co-host and producer extraordinaire, Mr. Matt McClure. Matt, how are you doing today, buddy?

Producer:
I'm doing great, Mike. I'm telling you, we got a lot of meat on the bone this week for people to chew on. Boy, it's going to be a great, great show and I can't wait to just get into it.

Mike Zaino:
No, Well, let's let's jump right in because I fear we won't get done if we don't.

Producer:
That's right. That's right. There's only so much time over this next hour. And so we're going to take up every second of it as we can with all this great information that we have for the listeners. I do want to remind you, as we start off, though, folks, that you can go to the website MoneyMattersWithMike.com. That's all spelled out as one word. MoneyMattersWithMike.com to schedule a free consultation, the number to call for that as well. If you want to talk to a real person and buy real person, I mean, Mike Zaino calls 704 560 1573. You can also find us as a podcast wherever you listen to podcasts or on the website. MoneyMattersWithMike.com. Check out our YouTube channel as well. If you go to YouTube and search for Money Matters with Mike, you'll find us there. Same deal on Facebook. You know, where our Facebook audience is really, really growing. It's kind of grown a lot here just in the last couple of weeks and a month or so. So we want you to be added to the numbers that are growing on The Money Matters with Mike Facebook page. So do it and reach out to us. Post comments there because we love, love, love hearing from our listeners. And when you do reach out, you can also get a couple of things that we have for you.

Producer:
One of those being a copy of 23 retirement cost cutters for 2023. That's 23 retirement cost cutters for 2023. The free report yours today when you get in touch with us via any of those methods that I just mentioned on the socials or online or the phone, we're pretty much everywhere. You can also reach out for the book Annuity 360. It's everything you need to know about annuities and a lot of great information in that as well. Mike is holding it up right now. It is chock full of some great info. It's not like, you know, reading War and Peace here. You know, we're not asking you to read the Encyclopaedia Britannica cover to cover every volume, but it's got you would think that you do when you get to the end of it because you'll pretty much know everything you need to know about annuities. Well, a lot of great stuff coming up here on the show over this next hour. We've got a problem solver. We've got talk about paychecks and play checks. Will Social Security be around when I retire? All that and much more coming up. But right now, let's get into it with our Quote of the week.

Producer:
And now for some financial wisdom.

Producer:
It's time for the quote of the week.

Producer:
And those very words of wisdom this time around might come from Thomas Edison. Yes. The inventor of the light bulb. He lights up our lives each and every day to to use a quote from a song. And Thomas Edison said this, quote, We should remember that good fortune often happens when opportunity meets with preparation.

Mike Zaino:
That is a phenomenal quote. Right? And I've heard it phrased in so many different ways. You know, the luckier or the harder you work, the luckier you get or, you know, good fortune sometimes looks like opportunity, but dressed in overalls. And so, you know, you know, some iteration of that.

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

Mike Zaino:
If you are just kind of lazily going through your Saturday morning, I want you to stop what you're doing and actually tune in to what I'm about to say. Now, a lot of our listeners know that I travel the country and I do retirement preparation, educational seminars. I do them free of charge. It's just my way of kind of giving back to the community so that, you know, a rising tide lifts all boats. And then afterward, I will stay in that particular city for a few days meeting with people one on one. It's just one of the ways that I have to make sure that they are on track. And if I identify anything that needs to be tweaked within their plan, then we can make some tweaks. This week, however, I was in a market that I'm not going to name, but you know, I sat down with so many people who honestly. Did not have a clue. And so I need people to wake up and start taking control of your financial futures. I saw people that had literally been saving money in a shoe box as they could. I said that. Right. A shoe box. Okay. And at the end of the day, they're coming to me in their mid 60 seconds ready to retire, and they had less than $80,000. And so I don't care at what point in life you are. If you keep doing what you've always done, you're going to continue to get what you've always got. And we've said it before, the very definition of insanity is doing the same thing over and over and expecting different results. So I don't care if you're able to save $10 a week or $20 a paycheck, you know, 50 bucks a month, at least start doing something.

Mike Zaino:
Okay. I don't know if it was because the employers that these folks worked for were not doing a good job with educating people. If, you know, obviously the financial education system in America is broken, which is why we are on the airwaves so that we can talk about different money matters and how they impact people's overall lives. But the fact of the matter is, is that these people didn't take it upon themselves to get information. And in today's day and age, there is just too much information that is available for those of you who are willing to seek it out. And then once you have some baseline information, it's time to then put a plan in play. Okay? And so that's why people would want to call me and people would want to meet with me. I don't judge folks. I don't care if you have $80,000, I really don't. But getting with me early enough in your retirement planning, you know, whether you're in your 20 seconds, whether you're 30 seconds, your 40s, your 50s or your 60s and beyond, we can make sure that you have an actual an actual retirement plan that's going to deliver retirement income that you don't have to depend on Social Security. So, Matt, I mean, again, so many people and it doesn't matter if you're in the lower class or in the lower middle class or in the middle class or in the upper middle class or in the upper class, it just doesn't matter if you are willing to go out and seek the information. Wouldn't you agree with that?

Producer:
Yeah, absolutely. I mean, I think that's probably one hurdle, Mike, that we get a lot, is that people are just they think that they don't they don't make enough money to, you know, need help with planning their financial future because it's just not worth it. They're not going to be able to afford it. All of these things that they just keep telling themselves without really taking the time to learn what it's about. It's not about having X amount of money like some some big nest egg amount. It's really about what is your plan. And if you don't have one, you got to get one.

Mike Zaino:
I mean, you're like a ship in the wind without a rudder. You're just going to go wherever the wind blows you. And especially talking to folks in the lower class and the lower middle class, Right. That are living paycheck to paycheck, there are things that we can institute that will give you some breathing room and still prepare you for what's to come down the road Again, in a lot of folks are just they're blown away by my willingness to talk to people because in my world, right in the financial planner and the financial advisor and the registered financial consultancy world, unfortunately, if you don't have a lot of money, there are not a lot of people out there that are willing to talk to you or you're talking to a, you know, a 22 or 23 year old who just is now starting and hasn't had enough life experience to really figure out how these things are going to play out long term. And that's why you should never judge a captain during calm seas. Right. Well, we don't have very calm seas at the moment with all of the market volatility and banks going out of business that we're going to get to here in a second. So this is when you need somebody or at least another set of eyes that is able to guide you and make sure that you are heading in the right direction instead of just going wherever the wind is going to blow you.

Producer:
Yeah. And that's that's the thing is you don't want to just be at the mercy of whatever happens, you know? I mean, people who were just invested in maybe one thing, like maybe something that mirrored the stock market, maybe something that mirrored the Nasdaq, let's say last year. Well, they just lost a whole lot of money last year, if that was the only thing that they were invested in because they thought that they could handle it themselves or whatever, you know, you really do need help. You need that captain. You need that quarterback to to really. Call those plays. Steer that ship, whatever metaphor you want to use. You need some help. And, you know, even if you think that, you don't. Find out whether you do or not because that initial consultation is absolutely free. So you honestly don't have anything to lose. Right.

Mike Zaino:
And you know, Matt, this week I got a letter in the mail from the Department of Veterans Affairs, and several of you may have just your ears perked up because you are also a veteran. Okay? And this thing says, hey, the Department of Veteran Affairs has teamed up with the Association of Military Banks of America to create the Veterans Benefits banking Program. And while initially designed to help veterans and their beneficiaries find banks and credit unions, the program has now expanded to include financial education services. Don't wait to take advantage of the free financial and credit counseling services offered through the CBP. You can get help with setting up a budget, discovering the best ways to save qualifying for credit, buying a home and so many other things to make life better for you and the ones you love. I love and appreciate the fact that the Department of Veterans Affairs is doing that for veterans. I mean, veterans are always going to have a near and dear, you know, part of my heart just because I also was one of your brothers in arms. But. Don't just wait on a program like this to exist when you're listening to a radio show like Money Matters with Mike and you have a guy that is qualified to help you with this stuff. Everything that I just mentioned in that letter. And so that is my rant for the day. That is my meat on the bone section. It's just, Hey, look, I want you to wake up listeners and start taking control of your financial future. Hearing words is one thing. Reading books and reading words is one thing, but actually putting a plan in place that you can have confidence in to take you through retirement so that you can enjoy paychecks instead of paychecks. Right? That's what I'm here to help you do.

Producer:
Yeah, words and action to different things. And so you need to put those words into action and start to start that journey. You can go to MoneyMattersWithMike.com. To schedule a free consultation. MoneyMattersWithMike.com or call Mike Zaino 704 560 1573. 704 560 1573. All right, Mike, you teed it up here a few minutes ago, and we're going to get to it now. The banking crisis that we find ourselves in. You know, folks, if you if you missed last week's show, we went really in depth on all of this last week, probably about a good half the show, maybe a little bit more, was spent talking about this with all of the different aspects of things going on as we knew them then. Now let's give a little bit of an update here, Mike. And folks, once again, if you if you missed that episode, you can check it out on the podcast wherever you get podcasts. Just search Money matters with Mike, but let's let's give him the update here.

Mike Zaino:
Mike No. All right. So before March of 2023, only three United States banks had failed since the coronavirus pandemic had started last week alone. We had three. All right. Failed Silicon Valley Bank failed on March the 10th, and that was the 16th largest bank in the United States at the time of its failure and was also the largest bank by deposits in Silicon Valley. Signature Bank also failed on March 10th, and Signature Bank was a New York based full service commercial bank that failed when customers that got spooked by the sudden collapse of SVB withdrew more than $10 billion in bank deposits. And so now you have the collapses of signature excuse me, Silicon Valley and signature banks being the second and third largest bank failures in history. And those two happened on the same day in historically, if you look back at the 20 largest bank failures in United States history, ten of them happened between 2008 to 2010 during our financial crisis.

Producer:
Yeah, that and that one, of course, included the biggest one in our history, Washington Mutual, when it went under during the financial crisis back in 2008. Yeah. Boy, it was not not fun times and we haven't really seen anything remotely approaching that until a couple of weeks back now on March 10th. And those two big bank failures on the same day. Right.

Mike Zaino:
And then on March 16th, 11 of the biggest banks in the United States announced that they were going to put together a $30 billion bailout package for First Republic Bank in an effort to prevent yet another bank from becoming the just another failure in less than a week. So first, Republic serves a similar clientele as Silicon Valley Bank, which failed earlier in the month after depositors there withdrew over $40 billion in deposits. And it appears that first Republic, which had deposits totaling almost 180 billion as of the end of last year, they were facing a similar crisis. So here's what I'm going to say. Please be sure and verify that your bank is at least insured by the Federal Deposit Insurance Commission, the FDIC. Okay. They insured deposits up to $250,000, but it's per depositor. Okay. Not per account. So please do not hold more than $250,000 in deposits at any one bank at any one time. We want our listeners and our clients to understand current events that are happening in the economy as well as the financial system. And so if you have questions or if you're looking to reduce your investment risk, especially during times like these, please visit the website, reach out to us on the socials. Or better yet, pick up a phone and take some action by calling 704 5601573. That literally rings my cell phone. Millions of folks have my cell phone and I will answer it if I'm able. If I'm not, leave me a voicemail. I promise you I will call you back. So what do we do? We help our clients and listeners make informed financial decisions and make choices that leave them and their money safe and secure.

Producer:
Boy, Mike, I tell you what, as as producer of this show, I think I'm what I'm going to do now instead of doing the rest of the show, I'm just going to take that chunk of the show and just play it again over and over for the next remainder of the hour. I mean, this is this is some good some good stuff that we've got going here on the show so far today. Yeah, great, great advice for our listeners as well.

Mike Zaino:
And it's kind of like that loop, you know, that loop music that you hear when you're on hold. I wouldn't actually mind listening to that over and over and over again. Maybe if it was your voice, not mine. Right? But they say the average person needs to hear something, what, seven times before it sinks in. So that might not be a bad idea. Matt.

Producer:
Right. Hey, let's do it. That's. That's it. That's it. That's our show, folks. No, seriously, we've. We've got a lot more, including.

Producer:
It's time for this week's problem solver.

Producer:
Mike, I gotta say, I have missed our dramatic problem solver intro because it's been a minute, you know, since we've done a problem solver here on the show. But we've got a good one for you this week If you are unfamiliar with our Problem Solver segment, folks, I will present actually a real world problem here and Mike will talk about the solution to that problem, how he is able to help folks each and every day. People just like you solve financial problems. And so this is really one I think might sort of happen to just about anybody. You know, we recently had a woman who called after listening to the show. And by the way, we love hearing from our listeners and helping them with their financial and retirement goals. Not going to mention names here, but she said that we were welcome to share the story on this week's show. So the caller was 37 years old. Still is, I would imagine, unless she's had a birthday in the past couple of weeks. 37 years old. Her husband is 39. The wife works at a major bank. The husband has a blue collar job working with his hands in the manufacturing industry. A couple of years back, they actually received a sizable inheritance, unfortunately, from a family member who passed away.

Producer:
But fortunately for them, they were able to get this sum of money and that really allowed them to get a nice head start on saving for their own retirement. Unfortunately, though, and here's where the big problem comes in, the person who was managing that inheritance was doing something that we in the industry call churning, and that was excessively trading the assets to generate more commission dollars that that person that I won't even call them an advisor. I will say that that person, whoever it was that was handling that inheritance, they put that money in their own pocket. They were doing that for their own benefit rather than for the benefit of the clients. And the fees really just started piling up here with that excessive trading activity. They also experienced a 20% loss in the money that they inherited and Mike, I got to say, the very first thing really that I want to sort of inject here is you got to know who you're working with, first of all, because that send that sends up all kinds of red flags and sirens and all kinds of other things. When I when I hear this.

Mike Zaino:
No, absolutely. I mean, you have to verify trust but verify. Right. And I always say measure twice, cut once. Be very, very, very careful about who you're working with. This individual actually, we found out had no licensor, no adequate certifications. And in hindsight, they simply trusted the wrong individual without verifying that their money would be managed in a safe way. Now, unfortunately, a lot of folks lost, you know, over 20% last year just due to market volatility. But, you know, when we met with them, they were absolutely blown away by the fact that we never charge a penny for our services to the consumer. And compared to what they had been experiencing before, they think it makes sense that we allow 100% of their hard earned dollars to participate in each of the solutions that we provide, And we most definitely do not condone unethical practices and unnecessary fees. So they were also very excited that we were able to delete the fees that they were paying on the sizable portion of their portfolio that was allocated to bonds. And the way that we did that is we just replaced those bonds with a fixed indexed annuity, which paid them a 10% bonus up front to help them make up for some of that 20% that they had lost last year.

Mike Zaino:
Um, and so it really disappoints us when we see how hard working families get taken advantage of simply because. Matt They don't know any better, right? They're going to financial advisors, they're going to financial planners. They're going to registered financial consultants to seek advice. And they're trusting these folks. And sometimes those people do not have the client's best interest at heart. So we want our clients and our listeners especially to know that there is no amount of money that is too little for us in order to offer you some help. Simply put, if the money is important to you, then it's important to us. So this situation with this couple, Matt, is not uncommon and we find too often that people's savings are being dragged down by unnecessary fees and improper risk management. So that's one thing that I commit to everybody. I'm not going to sit there and churn in your account. And if I do, you have your, you know, my permission to come knock on my door, because as a client, every client gets my personal address as well as my personal cell phone number. How about them apples, Matt?

Producer:
There you go. I love it. And that self. Phone number. That personal cell phone number is 704 5601573. You can also go to MoneyMattersWithMike.com. And as I mentioned earlier, Mike, that that consultation is free and it's free of any cost. It's free of any obligation. And so, you know, really and truly, no matter what amount of money you might have, whether you think it's too little to to use the services of a financial professional or whether you think that, you know, your situation is maybe not complicated enough or if you're like a lot of us and you're kind of overwhelmed by your situation, there is nothing to lose when you call or go to the website schedule that consultation, especially not any money because, hey, it's free. And so and there's no obligation either. So there you go. Talk about that, Mike, and what that experience is like when people reach out.

Mike Zaino:
Yeah, so, so basically the first time we talk, we're just going to have a little discovery meeting. I'll tell you a little bit about me and my background. I'm going to learn a little bit about you and what you've got going on. But then when we sit down for a consultation, which again is at no cost to our listeners and no obligation, you're only going to work with us if it makes sense for you. Okay, we're going to really take a deep dive into your financial situation. We'll discover exactly how much you're paying in fees, help you cut any unnecessary costs, whether those are in your IRAs, your 401. K's, your thrift savings plans or any other type of employer sponsored retirement plan. We can help with Social Security planning. In fact, I was sitting at a at a at a discount tire today getting some new shoes on on my whip. Okay. And I mentioned this guy mentioned to me that that one of his neighbors had told him how he was taking half of his wife's Social Security, even though he was still working. And he was like, nah, man, that that can't be true until he contacted Social Security. And lo and behold, it was true. So we can help you with planning how to structure taking Social Security. Those of you who are turning 65 and need help with Medicare or every single year you want to do a medicare review to find out if the plans you're on still make the most sense. We can do that for you if you have an annuity, if especially if it's an older annuity, older than, say, five years, we can look at those annuities and examine them, kind of do an annuity x ray and see if maybe we can put you in a better position. Right. Bottom line is, is we're going to compare your current situation to what's possible if you work with us. And remember, it is your money. Okay? If it's important and it matters to you, then it's important and it matters to us.

Producer:
Absolutely. And you can go to MoneyMattersWithMike.com or call 704 5601573 to schedule that initial and absolutely free consultation. So Mike, I know that one question that comes up a lot for you in your in your day to day, whether it's doing a seminar, whether it is in one of those free consultations or with a long time client. I'm sure that these questions come up about Social Security. Will it still be around when I retire? And and, you know, sort of want to say, well, it depends. If you're retiring tomorrow, then I can say with pretty much, you know, some some certainty, yes, it will be around when you retire. But if your retirement is 20, 30 years down the road, my crystal ball is in the shop. So talk about what we know about Social Security right now and and sort of, you know, give some clarity to this situation. Sure.

Mike Zaino:
You know, as far as factual information, this is where we are right now. No matter where lawmakers stand on the future of Social Security, there is almost a universal agreement that the program faces funding challenges that need to be addressed. Okay. Sometime by the beginning to the middle of next decade, which is the 2031 of the trust funds that helps pay for Social Security is going to run out of money. And what that's going to do is leave more than 20% of the program unfunded. Okay. A report that was recently released by the Congressional Budget Office warned the Social Security trust fund could run out of money by 2032, which is a year to two years earlier than previously thought. If Congress does not make changes to be able to bring in more revenue and you know how they're going to do that or reduce benefit payouts to those who are collecting the cost of the programs. Outgoing benefits surpassed the amount of funds going into its accounts in 2021, which. The Associated Press reported then, was the first time such a happening had occurred since the early 1980s. And those of you who are alive and adults back in the 80 seconds, you remember what that climate was like. Okay. In 1981, Congress passed a stopgap funding bill that allowed for borrowing between the Medicare trust fund and Social Security's two accounts, which is the old Age and Survivors Insurance Trust Fund.

Mike Zaino:
The larger of the two that cover retirement benefits and the Disability Insurance Trust Fund. Okay, so beneficiaries of Social Security are expected to face steep reductions in payment if the program becomes insolvent, with some projecting declines of up to 20%. Matt And earlier this week, I read an article that was both in Forbes and in Bloomberg that said that legislation was being drawn up to raise the age from 62 to age 70. Okay. Just to be able to qualify for Social Security in the first place. And if you think back to the days when Social Security was first instituted, it's kind of bringing us full circle because back then you could draw at 62, but the life expectancy was 58. So you were supposed to have been dead for four years before you could even draw Social Security. And with people living longer, right, with advancements in medical technology, medicines and just knowledge in general, the program was just not designed to pay people for 20 to 32, even 40 years in some instances. It's just not long term sustainable. So something needs to happen.

Producer:
Yeah, it was really an anomaly if someone lived past that age of, you know, eligibility for Social Security back then. So yeah, that's right. It wasn't built for the way that society is now. It was built for obviously the way that it was back then and things have changed. And so, you know, people hear that they're like, okay, the the age of eligibility for Social Security may get pushed back to 70 or some people are projecting declines of up to 20% in Social Security payments If nothing gets done before, you know, whatever drop dead date is for for that over the next decade or so. So they say, okay, well, what in the world do I do then? Because I can't as one individual person, I can't control the Social Security trust fund. I can't control what's going to happen to to all these larger things, these forces that are outside of my control. So what can I control? What can I do to sort of craft a solution in my own life?

Mike Zaino:
Well, the one thing you can do is strengthen your retirement income plan. If you are relying on Social Security to be the best thing since sliced bread in retirement. I got news for you. You may want to change that reliance on yourself. Okay. Because I and and advise my clients to not count on Social Security. Okay. Imagine if you had a plan in place that didn't rely on Social Security. And then no matter what state Social Security is in, by the time you retire, your retirement plan is still in place. And then the Social Security is the gravy on top. Okay. And we all know that gravy makes everything taste better, right?

Producer:
Absolutely.

Producer:
I like I like a little biscuit with my gravy in the morning sometimes.

Mike Zaino:
Amen, brother. A little gravy on my mashed potatoes. But you have to remember that retirement is less about and you hit this nail on the head earlier today, less about the size of your portfolio and more about your ability to generate consistent income during retirement. And so many people I just mentioned this, so many people are relying way too heavily on Social Security to be their retirement plan, and it is not going to be that way. So if folks wake up and listen to the Meat on the Bone segment that I went on, my little rant about, you can actually establish your own personal pension, your own income stream by investing in a fixed indexed annuity that will provide you with the paychecks you need to cover the expenses that you have in retirement as well as the play checks that you want to live the retirement you deserve. Those annuities can provide you with an income stream that you can never outlive, even if you live to be 90, 100, 110. Heck, 120. Those checks keep coming in and they are backed by the insurance companies that, remember, are required to hold in reserve. Serves at least 100% of the cash on their deposits that they have out. So that's why banks go out of business, because they're only, you know, required to have 10% cash on hand. Where insurance companies are required to have 100% cash reserves. So when you invest in the fixed indexed annuity, you're effectively putting a floor on that portion of your portfolio, meaning that you cannot lose a single hard earned dollar of the money that's in the fixed indexed annuity. In many ways, annuities are a lot more attractive than bonds as a means to generate income in retirement as a means to manage risk with your investment and just overall guarantee your own personal pension.

Mike Zaino:
So we want our clients, we want our listeners to live the retirement lifestyle that they deserve. Do not live a just in case retirement where you are actually afraid to spend the money that you've saved for your golden years. Instead, you can establish a solid income plan and enjoy your paychecks, not your paychecks, but your paychecks. In retirement, we find way too many retirees are afraid of the news. They're afraid what's going on locally, regionally, nationally and internationally, and how they have absolutely zero control. They don't like looking at the stock ticker and as a result, they are petrified of spending money. And so when these just in case retirees pass away, well, their children, their heirs are going to enjoy the money and they're going to do all of those things that the retirees were planning on doing in retirement. So they're going on vacation. They're joining the country club. They're buying the new car. They're buying the boat. And, you know, some people have heard a lot of bad things in the past about annuities. And it's really a simple case of misinformation and the lack of education, either by the people selling them or the people buying them don't actually understand what they're designed to do. And as with any investment, there are many different kinds of annuities that fit many different types of situations. Okay, There is no one size fits all. So contact us today to learn more and see what roles an annuity could play in your own retirement plan.

Producer:
Yeah, and even with the same types of annuities, there are different variations, different potential benefits for for your particular situation. So, you know, that's something to keep in mind as well. You know, not all annuities are built alike, even if they're the same type. So yeah, give us a call. Give Mike Zaino a call that is (704) 560-1573. Or go to the website Money Matters with Michael M that is money matters with Mike spelled out as all one word.com. Well you know Mike this this next topic is one that I've been looking forward to talking about not because it's some some happy topic here, but because it's something that I think people need to know about and don't really think about. It's something that we're calling the widow's tax and some, you know, information here on on how to plan for it as well. So talk about when I say the widow's tax, you know, people are saying, well, wait, what if my spouse dies and then I have to pay another tax? Well, you know, it's it's obviously we have to we still have to pay taxes. Yes, we do have to pay taxes. But not even really talking about a specific tax here. I'm talking about a lot of different scenarios that can happen and you might not be prepared for them if you haven't considered that all of these things will be happening at the same time. And it really does amount to a tax on your income because it takes away from your income in retirement.

Mike Zaino:
It does. Matt And anytime one of the spouses loses their best friend, their mate for, you know, 30, 40, 50, 60 plus years, they're going to be grieving. All right. That is never, ever easy. And so to compound that with some of the things that I'm about to get into, it really seems unfair for that survivor. And so we just recently helped a 70 year old lady who had lost her husband. Her husband passed away too quickly, too soon, losing his battle with cancer. He was diagnosed. And then within a matter of weeks, he passed away at the age of 76. And so some of those challenges that she and many widows face and when I say widow, it's not just widows, it's widowers as well. So husbands out there, if you lose your your spouse, you're going to be faced with the same thing. Okay. Well, this lady is immediately going to lose 33% of her Social Security income because, remember, while she gets to keep the larger of the two benefits, her spouse's okay, the smaller benefit, hers goes away. And she now faces a higher income tax bracket because she's no longer filing married and jointly. Right. She's now a single filer. She's also going to lose a two tax deduction because of the fact that she's no longer married and is a widow. Her Social Security will therefore be taxed at a higher rate. Her Medicare surcharges will go up. Why she's now in a higher tax bracket in Medicare is means tested. So she must face all of these new financial challenges right after losing her partner in life. So any widow, any widower who meet with us will never have to face these challenges alone. So if you or somebody you know has recently lost a spouse and is experiencing the burden of what we call the widow's tax, please call us or share our information and get them to give us a call so that we can institute some changes and get them protected.

Producer:
Yeah, absolutely. And again, that contact information is on the web at MoneyMattersWithMike.com you can call 704 5601573. So a lot of different aspects to that that particular scenario Mike when one of the spouses passes away and how that can really just eat away at your retirement income, how much you would had been, you know, bringing in every month how much you had planned on bringing in for the years and years to come, especially if it's a sudden thing like that and you're really caught off guard. The emotions come into play. That grief comes into play, right? So you've got all those things to deal with. The last thing that you want to also then have to deal with is compounding on that a loss of a loss of income. So how do you prepare for it? How do you make sure that it's going to have the least impact possible on you if that does happen? Well, I.

Mike Zaino:
Mean, number one, if you don't have a solid retirement income plan and you're the provider and you're the breadwinner for the family, then we strongly encourage you to get in touch with us as well so that we can help you build a plan that will keep both you, your spouse and your family, you know, much more safe and in a good income, you know, environment well after you are gone. So it's very important to be working with a financial professional before you pass away. And Matt, there's a staggering statistic. It's over 80% of widows actually change their financial advisors that the husband had been dealing with because unfortunately, most spouses don't have equal say so and at least equal knowledge of we won't even say the say so, but we'll say equal knowledge of what's going on within the retirement plan. So we love meeting with both spouses because both of you are involved well before a spouse is even planning on. Not that we plan on passing away, but, you know, we kind of have an idea of when our people go based on longevity and based on our health, But ideally, before your health ever starts to begin a decline, the more time you have to work with, the more options you're going to have and the better off you're likely to be. Matt.

Producer:
Yeah, you're absolutely right there. And it's never too soon to start planning. You know, it's never too soon to think about these things because it does happen to to all of us. We all have a date where we're going to meet our maker, as it were, and we need to be planning, planning for that, not just for ourselves as as individuals and how we get there, you know, get to that point, make it to that point, have that retirement income that that we're going to put to good use, hopefully, and enjoy those play checks that we were talking about earlier, but also how we're going to leave some money and some security behind for those who are still here when we are not around. So, yeah, helping people in advance. That's really what it comes down to. Yeah, you.

Mike Zaino:
Definitely want to create that smart vision for retirement without your spouse well in advance. You know, how do you plan without your spouse to spend time? Is it with family? Is it with friends? Is it is it maybe working a part time to keep yourself socially and mentally and physically engaged? How do you plan on funding your retirement now with less income coming into the household, are you going to be forced to go back to work? You can create a solid retirement income plan, understand your expenses in retirement and establish income sources that you can count on to be there when you're going to need it the most. No matter if you live to be 90 or 100 or 110. Right. A great way to do this again is to replace those bonds that you have in a portfolio with fixed indexed annuities or heck, any money that you come hell or high water you don't want to lose and you're not willing to gamble with. That's a prime candidate for a fixed indexed annuity. You also want to measure your retirement income gap, which is bad, or your retirement surplus, which is a much better situation to be in before you retire. And this involves calculate weighting, expected expenses, balancing your budget. One of the things I do with all of my clients, once I understand where their income and expenses are and how that's going to differ in retirement is for at least the last 6 to 9 months while they still have income.

Mike Zaino:
I tell them to start living off of their retirement dollars. That way they can identify any leaks, you know, any place that they're hemorrhaging and they still have time while they're earning income to plug those leaks and to bandage those hemorrhages. Right. It doesn't matter if you're still in your 40s or your 50s. We can help build you a plan that is going to allow you to receive tax free death benefit when your spouse passes away. Also helping to ease the income pressure. We can teach you how to remove completely delete the IRS from your retirement account by implementing either a Roth ladder conversion An or Roth annuities as soon as possible. Immediately review and reset your financial plan upon the death of a spouse. If you have lost somebody recently and you have not looked at where your money is going, obviously you're dealing with a lot of emotion, and emotion should not be factored into decisions. Okay. But if it's been a minute and you've kind of come to grips with reality of that great loss, then you absolutely need to review and reset your financial plan.

Mike Zaino:
So whether it's a financial professional or a certified public accountant or tax professional, just make sure that you are incorporating all of those things to verify that you are on track. And so just keep in mind losing a spouse and it comes with a whole lot of emotional stress. And the National Council on Aging recognizes that the widowhood effect as a real factor in increased mortality of the surviving spouse. People literally are dying of a broken heart. In fact, there was a 2013 study that appeared in the Journal of Public Health and it showed that folks had a 66% higher risk of dying within the first three months, 90 days of losing their spouse. And that discovery held true for both men and women. So we know that you're dealing with a lot and dealing with the emotional burden of losing a spouse often takes time and support from family members as well as from professional counselors. But you can take steps in advance to ensure that the financial challenges don't add to the stress that you're going to experience at that same time. So schedule a complimentary financial and retirement consultation for your family today. Do it for them. If you're doing it for anything.

Producer:
Yeah, that's absolutely right. You know, you got to have in mind not only, as I said, your particular situation, but those others who are going to be affected as well. I mean, we know, you know, you love your family. Your family comes first. We'll put that into practice. And think about that when you're when you're looking at planning for your future and planning for the future of your family after you are gone, after you are no longer with us on on this earth. And yeah, you know, I mean, I can attest to the fact after seeing it firsthand with my mom after my dad passed away last year, you know, I am I am so glad that in those first weeks and months, she did not have to make any major financial decisions because she was not going to be able to do that. They were married for 51 years. I mean, this is not something that she could just, you know, pick up the next day and be like, oh, well, I'm fine. And here's I'm going to make all these, you know, financial decisions about my investments and income and all this other stuff. No, you can't do that. And yeah, I'm just glad that my dad at least had something of a plan in place. He had a pretty good sized life insurance policy and so that was able to cover a lot of the costs that needed to be covered and really gave my mom a lot of peace of mind, got rid of a lot of that stress and, you know, just did her a world of good. Did all of us a world of good, really, because it was so there were so many things that we in the end didn't have to worry about that we would have otherwise.

Mike Zaino:
And what a gift, right? What a gift to give to your family of not having to worry about the financial aspect of what's going to happen when you're gone. I mean, that's one of the biggest gifts that you can give anybody is that peace of mind, knowing that their money is at least going to last as long as they do. And that's what I hope that I can give you. Right. And the best time to prepare is not after the fact, but before the fact, which is another reason we like having both parties of the union, both spouses coming in and sitting down and meeting with me.

Producer:
Yeah. Get everybody involved. And that will be such a better situation going forward because when one of you is not there, then the other one knows what's going on. They have an involvement. They have an investment not only of, you know, finances, but also of knowledge that they know exactly what is happening within that particular scenario. And folks, if you want help on that score, if you want to get started down that road, go to MoneyMattersWithMike.com that is MoneyMattersWithMike.com or you can call (704) 560-1573. That is (704) 560-1573. Well a few more minutes here on the show Mike and I mentioned at the top you know as we were getting started the 23 retirement cost cutters for 2023. That is a free resource that we will send to you Absolutely free. A lot of great tips in there. And as the weeks go on here, kind of covering these tips kind of one by one. So we got plenty of them to to go here. But I wanted to give you just a taste of that advice that you'll get in there. And this one this week, I think is a very good one because a lot of people think, okay, I got to have a cell phone plan that is with one of one of the big carriers. Right. That that the big three that you'll hear their names in just a minute when you're when you're listening to this story. But, you know, and those are my only options. That's what people people might think because they're the big carriers.

Producer:
Right. And so they don't realize that when you go with another carrier that might cost a whole lot less, that can save you a big chunk of change every month because you're not paying for their infrastructure, for their network, the towers and all that stuff, the overhead of having all the call centers and everything like that and, you know, the physical, the real estate and all that stuff that they have to pay for, you can actually save yourself a lot of money by exploring different ways to get your cell phone service. So I think this is a good one. It's it's a pretty good tips in here. So listen to it. It's short. Just about a little over a minute. We'll talk about it on the other side. When trying to cut costs in 2023, take a look at your cell phone plan. I'm Matt McClure with the retirement radio Network. Powered by a marine life, cell phone plans with all the bells and whistles like unlimited talk, text and data can cost a pretty penny, especially if you sign up with one of the major carriers. But there are cheaper plans out there. Among the cheapest are prepaid plans from mobile virtual network operators or MVNOs. You'll recognize them operating under names like Consumer Cellular, Boost, Mobile, Mint, Mobile or US Mobile, just to name a few. These companies don't own their own towers. They operate by entering into agreements with the big companies like AT&T, Verizon and T-Mobile, which do own the infrastructure. The major.

Stetson Doggett:
Carriers sell access to their networks, to prepaid carriers at wholesale rates. These prepaid carriers then sell plans to consumers at significantly more affordable prices.

Producer:
That's Stetson Doggett, cell phone plan expert, YouTuber and publisher of Best Cell Phone Plans. Net. That website is a good resource to compare plans determine the features you need, like deciding if you really do need unlimited minutes and seeing if you qualify for any discounts. So are you paying too much for your cell phone plan? That's a key question to consider, and it's one of the 23 retirement cost cutters for 2023. With the retirement radio network Powered by Amara Life. I'm Matt McClure.

Producer:
You're listening to Money Matters with Mike. Listen closely because money matters.

Producer:
Here's Mike and folks to get your copy of the 23 retirement cost cutters for 2023. It's absolutely free and it's got a bunch of great info in there. You can go to MoneyMattersWithMike.com. That's all one word. MoneyMattersWithMike.com. Or call 704 560 1573.

Producer:
It's this week in history.

Producer:
A lot of big stuff happened this week in history. Mike, this this week is kind of chock full. You know, sometimes I feel like, you know, if we look at this week, a particular week in history, it's like, oh, you know, not a lot of huge stuff happened this week. Boy, we got a lot of big things here. And we start with March 24th and a big birthday there. I'll let you take it away.

Mike Zaino:
Yeah, So so for all you football fans out there on this date back in 1976, American quarterback Peyton Manning was born. And so Manning is obviously considered one of the greatest quarterbacks of all time. He played 14 seasons, mostly with the Indianapolis Colts, played some for the Denver Broncos as well, won the Super Bowl not once, but twice, won the most valuable player five times. And he's obviously a member of the Pro Football Hall of Fame. Okay. So that happened on the 24th. On the 25th. This is a big one. Back in 1942, American singer and songwriter Aretha Franklin was born, so she's often referred to as the queen of Soul. She has sold 75 million records, making her one of the highest selling artists of all time. And she passed away back in 2018 at the age of 76. Staying in the music genre. Okay, On this date in 1947, singer and pianist Sir Elton John was also born. And throughout his career, Elton John was. He collected multiple awards, five different Grammys, two Academy Awards, two Golden Globes. He is also one of the best selling artists of all time, having sold 300 million records worldwide over a six decade career in music. And this one, Matt, this one's a pretty good one. I'm gonna let you take this one because I love the way you framed this one.

Producer:
Oh, yeah. I mean, it's this is a good one. It really is a historical moment to tell you about because it was really a, you know, it changed entertainment really forever. March 25th, 1954, the company, RCA, manufactured the first color TV set. And this is sort of a little mini inflation demonstration here because back then in 1954, the RCA set had a 15 inch screen. Boy, boy. How huge? Large by by today's standards, very, very tiny. It sold for $1,000. And if you look at that, yeah, it's crazy. I mean, $1,000 then due to inflation, if you if you factor in inflation, that's more than $11,000 in today's money for just a 15 inch screen. It's that's crazy.

Mike Zaino:
I remember as a child we had I'm not even lying here a nine inch television. It was black and white until like 1982 when we got our first color television. So they'd been around for, you know, three decades, basically, by the time that we finally joined the color revolution. And then I remember heck back in 19, I want to say it was 93 when my mentor at the time, he spent $20,000 on the first iteration of plasma TVs and it was a 50 inch plasma was $20,000 back then and heck, now 65in all day long, you can get them for around 500 bucks or less.

Speaker6:
Exactly. That's. Boy, how times.

Producer:
Change with technology. But the more common it becomes, the cheaper it gets. And there you go. You know, it's go go out and buy yourself a 65 inch screen, guys. There you go. That's not official financial advice.

Speaker6:
Just putting that out there.

Producer:
All right, Mike. Well, that's just going to about wrap it up for this week. But coming up next, time around, six figures stand out as the most concerning for those who are preparing for or entering retirement these days. We're going to share those fears. We're going to have some solutions to help ease your mind. Coming up on next week's show. But that'll do it for this week's show. Mike, I have enjoyed it. I've learned a lot, as usual. And I thank you for all that you do, sir.

Mike Zaino:
So, Matt, again, without you, this show doesn't exist, right? As far as from a production standpoint and without our listeners, our show really doesn't exist. It's you guys that I'm doing this show for trying to give you as much meat each and every single week. So if you know anybody that could benefit from any of the information that we have talked about today or on any show for that matter, please direct them to the website MoneyMattersWithMike.com. Connect with us on Facebook. We would love to have you on one of our subscribers and definitely give us a like on YouTube as well. Bottom line though, thank you for tuning in today. I hope you learned something. Whatever your plans are for the remainder of the weekend, I hope you enjoy them and have a phenomenal rest of this weekend. 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 MoneyMattersWithMike.com or pick up the phone and call 704 560 1573.

Producer:
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.

Producer:
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.

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