Retire Right 02.11.18 Seg-2.mp3

Retire Right with Alan Becker
Sunday, February 11th

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

You're listening to retire right with Allan Becker on the retirement. News network. Hi Megan mosaics here from the retirement news network joined by Alan backer of retirement solutions group. If you'd like to set a strategy session with Allen's talk about your retirement in get a plan in place he could call today 9136859422. You. Again it's 9136859. Ford two to. Living until age 100 could end up being a reality for a lot of us we've got advances in health care and medicine in this increased focus on individual health and wellness and all of that is extending our life stance which is great news. But it does mean the data plan for what could be a really long retirement and need you probably have some sort of retirement account right maybe you've got up 41 K or an IRA that's likely going to be your bread and butter and retirement along with some other income source is it's primarily what you're gonna re Lonnie and he gets you through retirement. So Allan what are some of the things to consider doing now to try to get those assets a better chance of lasting to age 100. We'll make it there's some big financial decisions for person to make leading up to retirement and one of the biggest. Is how to handle assets they've accumulated in their retirement accounts. So let's talk about pensions first now pensions have been around for a long time but their pack on the way of the go to birds at a speak they. They just not a lot of them left them in some executives that have and seems like unions still use the military but in general. The majority of companies have been moving away from the pension and towards a 41 K. But we look at pensions and what I'm talking about is he's defined benefit plans. And they're known as defined benefit plans because the employers typically define how much they're gonna put in forests or or pay out. Very few people again have these anymore but many of our listeners have been working for numerous years so they might have an old pension from an old company or. I'd run into people kind of two or 30 pensions from working at different companies but either way you have to make decisions with each pension. And some of those engines allow for immunization payments which means they can turn into. A form of an annuity that may leave some benefit behind for us house of something or happened some don't some even allow for a lump sum buyout. So there's a whole lot of unique. Concerns and questions. That come up wind starting to plan for retirement or looking at pensions should you take the buyout should you take the immunization should you leave some for your spouse or not. And what options are available that's where sitting down as part of a financial plan and and with a professional. Looking and all those options make him appropriate phone calls or get the appropriate documents. To see. Which would do better in many people do take pension benefits some take the buyouts it's there's no right or wrong it just opens a lot more questions and you know. Each one of those pieces. Is just that it's a piece of the puzzle. He got to look at that total asset base he got to look at your needs your wants your bucket list your desires and then see how it all fits together. Alan you know I was hurt harking about longevity today if someone is a lucky enough to have a pension boy that doesn't happen a lot. He's typically recommend that they take the guaranteed monthly income or should they take that lump sum. Turning into a monthly income yes. But not necessary with in the pension so what I'm talking about there is you may have a buyout option and which you can in the en route into. A traditional IRA and use a form. Of annuity. To. Create. Euro income stream that could be higher than the one the company collapsed so the purpose of that money was saved to create a eight pension or pension type instrument so and a new week is a pigeon type instrument their four. Getting the best pat is the most important thing and let's face it when people don't take the take that lump sum. You don't always know how to manage it properly and that just opens up to a lot of market risk different types of longevity risk and bond rate risk coming just. Volatility risk of aegis. The act he can't guarantee it's gonna be there and you have to make sure that if you take a lump sum pension the you can before all those elements of risk re. An Allen to most people with pensions opt for that monthly pay out of which any taint the lump sum. Well that's that's on getting and I viewed if you take that lump sum and you look at it like most people do. Here's a big chunk of money they don't budget rate many people run out of that money within a few years. It's almost like the lottery curse of you know getting a lump sum of money and and just spending through it. They also many people don't understand that taxation I've seen it time and time again where people will pay off my house with qualified dollars and then not understand what's going on. Housework and with single lady she's in her mid seventies inherited some money and couldn't understand we are having their Medicare conversation this year. And she was getting a costs from Medicare of about 500 dollars additional month. And this is because they're her modified adjusted gross income the government has a and texture packs if you will. That you'd pay a portion of the Medicare premiums well the interesting thing is usually living on 50000 a year or so how in the heck could she has had this extra income while because she wasn't looking at how all these extra dollars. Factored in and this is the same kind of situation in happy to take a lump sum of a pension. In depth pulling some of those dollars converting to a Roth or suspending him for an upgrade on how some vacation whatever. And all of a sudden you have an increased income. And now you have additional cost that you did not foresee. Because this is is something you. Addressed each and every day and you know the lady I was just talking about. She was working with and other financial planner previous to me the problem as the other financial planner. They didn't have an insurance license so they didn't know anything about Medicare that in knowing about the Medicare surcharge they weren't talking about a they weren't even concerned with the matter of fact. Lot of her portfolio was at risk. When it did need to be and generating dividends even though she wasn't getting the money so the only persons that are making money was the Arabs in the form of taxes. And her financial advisor and former fees but not the little lady and that's the kind of stuff that we like to help. Alleviate here retirement solutions troop we wanna make sure you know how your dollars work how your pension works how you can. Creating a plan in retirement so you don't run out of money. And making sure all these things work together. In a very comfortable way you know in an annuity one of the advantages of anonymity even if you don't need the income is it takes it off your tax return. Because he can use those non qualified dollars. And tax to further money that not the only option but that's a great option for some people keeping gains of the market without any risk. To first and taxes and lower which you have to pay to the government because you're not using those. That money yourself makes so much sense. Just have to. Find the right people so when it comes your financial future coming up short with your monthly income is just not an option it's totally unacceptable. To run out of money and retirement. If you can avoiding you'd deserve the assurance that the sources from which you obtain federal income such as 401K your Social Security your annuities. They'll provide the means to live the lifestyle you desire. Throughout your retirement years if you have a vision for your retirement if you want to dictate how your future unfolds rather than have. Financial limitations dictated to you you need a strategy for retirement that's exactly what our roundtable retiree you. Is designed to do it's a complimentary detailed analysis of your entire financial picture which means you'll walk out of our office knowing. How much are currently paying in fees if you're taken on too much risking your portfolio and strategies to help ensure your money can last as long as you do. And this analysis is completely customized based on year unique circumstances. And there's absolutely no obligation he won the first ten people call me at 9136859422. I want to get your own personalized roundtable retiree view in your hands. That number again is 9136859422. It never hurts to get a second opinion any retirement plan. And if you don't have one yet now's the perfect time to get started so give us a call 9136859422. Nine when 36594. When he too. Online as well you can go to retire right Casey dot com for more information so Alan we're talking about pensions and they really aren't that common anymore you know so many people don't have them but the do you have Oro one k.s or they have an IRA. So for those listeners what may be doing districts the assets they have and those accounts of the eighteen and last until age 100 or beyond. Eight. Borrowing K when you leave that employers if you wanna look at the option you can roll that into an IRA you can take that hiring. And at one of the vehicles you can put that diary and is a fixed or fixed indexed annuity. That annuity can caring TU a lifetime of income just like a pension so the short answer to that is the onus is on used to create your own. Pensions create your own defined benefit plan. The thing is union defying the benefit you want and that's something that I've helped. Tons of people with love to help you with but there's sole many annuities out there and there's so much. Information out that that people give literally analysis to paralysis they. The eighth just analyze it so much that they don't do anything. The whole point of an annuity is guaranteed income stream he can outlive and what's the number one fear retirees out living their money. So there's a vehicle. That fits and fixes the concern now you don't wanna put everything in an annuity. You won a mixture that you find the right annuity an example I'll like to use quite often is there's. Restaurants out there that consider themselves steak houses that serve steak some of me than our buffet style restaurants. I wouldn't call him a steakhouse and yes these are some of it resembles steak but the we have these. Other steak houses we pay a premium for their. Food and we go in there and we get a nice being quality steak knife and and a great meal. When like talking about here to read to restaurants that both call themselves steak houses one of him he's worthy of that name. Well there are new he's out there some that call themselves annuities. And others that really do what they're supposed to do and how low fees and can create you that piece for retirement. He need to find the right one and the best way to do that is not to go to a captive company that has. One offer but code to an independent. Financial firms like retirement solutions group we can show you all the available products and solutions out there and find the right one for you. You're gonna have to take income by seven and a half recalculate that requirement distribution every year. If you put it in the annuity it's on auto pilot you get your checking your mailbox every month every quarter. Semiannual annually your convenience. You can do the paperwork once and you can have it done for life that much simpler and how much easier. Alan if my plan my 401K as that and utilization option should I use it. Megan I'm a big fan of skiing all my options out there and looking at everything that is available to me and nine out of ten times. Looking at an individual annuity on the open market will have a better pay out that those plans inside the forward K. Not every time so it's a good way to look at your options. As is that reason Alitalia. That having a financial planner on your side somebody that you can ask those questions. And future the answers to those questions. Honestly and openly. Is what you mean and that's another part of our roundtable retire process. Is being somebody that's approachable. And available free anytime you need with a life changing event or just. Something that's on your mind that you need to get answered so be one of our next ten collars and come part of the retirement solutions troop. Family keep the answers to your questions. And get a customized roundtable retiree view just view clay it is anyone in the next ten dollars and 9136859422. That's 9136859422. Well to get your money to last until age 100 you need to make some Smart decisions about investing social security and of course health care cost. Next Allen helps you through some of those key decision points straight ahead. This is retire right with the Allan Becker on the retirement. News network. Retirement is all of decisions decisions you need to make before you actually retire. When she he takes Social Security are you too heavily invested in the market have you sink in that. Join the team from retirement solutions group and RSD investments and they've heated discussion about these factors and more. All while retirement solutions group treats you to a complimentary dinner and just engines steakhouse in Casey now. He's picked fifth and 6 PM on Tuesday February 13 or Thursday February 15 at ten cents in steakhouse in DC man. Reservations are required so call 91368590. Port 22 to reserve your seat today at 9136859422. Seating is limited so call now to learn more about these events and how you can attend retirement solutions group 9136859422. Or online at retire right BC dot com. Investment advisory services offered through eight wealth management LLC eight wealth management retirement solutions group and are risky investments are not affiliated companies. You are listening to retire right with Allan Becker on the retirement. News network. -- it's Megan mosaic from the retirement news network glad to have you with us here or retire right with Allen back hurt if you're ready to begin building your retirement future I wanna encourage you to reach out to Allen today you can set to visit in his office right in Overland Park very conveniently located at 435 and Metcalf dial 91368594. TU TU. It's 91368598422. She's online as well great website go to retire right TC. Dot com today we're attacking about the steps people can take right now to increase the chances that there income will last until age 100 or even be aren't. I know health tips here were not a factor is Elin and myself but. We do have some important suggestions to help protect you from longevity risk and that's this increasing chance that you're gonna run out of money as you get older in age. You know Allen a huge piece of the retirement income puzzle of course is Social Security we've got to talk about that and tins were focused on making our income last over the course of a long retirement what suggestions do you have for taking her benefits. Or Social Security benefits. Aegon Social Security is definitely one of those top three questions I get everybody's. Concerned about wind take Social Security they take it correctly and people will put more. Stock on the Social Security so to speak of they were on their own stocks. On their own portfolio. Making sure that their investments are situated correctly but you know so we we definitely have to address Social Security. And it's one of those things it's really misunderstood and you can started at 62 he can have to take it at seventy in attending any great summer around 66 or 67 major. Full retirement age. Than there's spousal options that come in there and people are worried about is it going to be there when I needed maybe I should take it early so that. At least I have some of it because when it stops. Yeah I don't work for the government. As a taxpayer. I feel that Social Security will always be there in some fashion they may have to push out the ages a little bit. But it's going to be there for or those that immediately and I don't know what we deal in this country of all of a sudden we took away twenty to 30% of that everybody's income in retirement. That would be cast Fiona I don't wanna be a part of but taking Social Security really depends on a lot of things and I think the number one thing is taxes. Let me. Explained our listeners for a moment here my mail how I see the midwest here and and how we live. Who were very fortunate to live in the midwest because our cost of living is one of the best in the country. Most people tend to be able to retire and actually they could make it on just their Social Security that we have. Pretty frugal area and it's pretty affordable live and there's a lot of things to do and I mean it just it's just a great MM was in the navy for. For years and eight months I grew up in the air forces and air force brat and all over the world and I chose to live and raise my family here in Kansas because. It's just a great place with great values. All that being said we're told all our lives from guys like me on the radios tuned just in now upbringing. Pay yourself first save money for retirement put money your borrowing came maximize your foreign K in the Dallas money in retirement. So what do we have we have a lot of qualified dollars. For the majority of us. That's sitting in our accounts and retirement we talked about that earlier today show haven't. 700 to a million dollars some of those two million or better. You are higher rates well. Here's the thing that no one's talking about you have to take that. Hire a money as force distribution and if you're single your tax brackets pretty short and if you're. Married even with the tax cuts and changes that are being made you're going to have a time in the future where you probably won't. Be married you more because one of you will pass away and when that happens. You're gonna have to tax bracket. With a higher force distribution. So understand. That that money keeps coming in which forces you to have to pay more more taxes. You need to take control of the tax situation you need to take control. Of the tax efficiency and Social Security is a piece of that puzzle for many of you with large area is waiting to seventy is a must. So that you can be drawn down on an IRA maximizing those tax brackets and taking several 100000 dollars of your higher rate. On your terms taking your Social Security. At full retirement age taking national security is 62 when you have. Hundreds of thousands of dollars sitting in your higher rate can be huge mistake. Listen to me it's so important that you make an appointment. Comment and learn about the part of our out to retire process which is tax efficiency. One of our core areas and you cannot take Social Security benefits if you don't understand. Tax efficiency they go hand in hand so give us a call today at 913659422. One of those next ten collars. Keep a copy of return on investment our reliability of income the true meaning Navarro in the golden years I address these kind of concerns inside my book. And we'll make sure you have one. If you won in the next ten collars. Because wanna see you and we wanted to take. And give you the peace of mind to get to enter retirement call today 913659422. That's 913. 659422. Allen another area where the action it's a antiques right now can actually reverberate well into retirement even perhaps. All deleted the 100 birthday. What I have to say another core area of around to retire process and that has health care planning because the cost of health care retirement can be. Outstanding now understand when I use these numbers and those numbers are 377. Thousand dollars in a lifetime of out of pocket retirement health care expenses and that is steadily going up. So a couple today at let's say 55 could spend 466000. Retirement. Osama that is your insurance premiums some of that is your Medicare premiums and that's co pays and deductibles on that's long term care expenses. So some of the trickles in overtime. And healthy you are the longer you may live which means that can be paid out over a longer period of time. But if you're unhealthy. Maybe have. A lot of expenses and a short time you know oratory about longevity you really need to look at health care cost and long term care cost incited your plan. But if you're talking to a traditional financial person. That does not have a life and health license because that's the majority they can't talked US healthcare they can't talk to you. About life insurance they can't talk to you about health insurance because they're not licensed to do so. When you come to some like retirement solutions group. Your health care if one of our five core areas we have the life and health license and were reversed on it and we know the risks. So we elect to include it in every plan where we talk about the tax efficiency we talk about the long term care planning. We talk about. The health care whether it's Medicare Medicare Advantage whether it's under age helpless under age I mean so that's not yet on Medicare. We will help you at those plans will kitchen dental vision and hearing program we can help you. To navigate all that landscape so that you know what your true costs are or can have a handle on them and know where you're gonna pull those dollars from. I have out of your income plan as you. Navigate through year. Retire landscape so we're here for you to assist in all those questions that the short answer to. My long wind and answer. Is health care is definitely a huge concern as people look at retirement. As we talked about health care and long term care you know it does sound like that's probably going to be. As having it's necessary for so many of us out there later in life how do you prepare for that Kelly Allen. There's a lot of different ways made him you know and I unfortunately had way more experience and an ever liked to have looked long term care. From. Many people near and dear to mind hearts you know. I've talked game. MS in their forties to you know alzheimer's. For one Graham parry in their seventies another grandparent or eighties and another. Grandparent and when she was inner ninety's and still hasn't had any 200 so I had to. Navigate longterm care my own personal family. Many times not fund wished on anybody but as you state it's. Fact of life these days. So you have to address it whether. We're looking at legacy planning and making sure that our trust making sure things are set up Brian a special needs trust for. He disabled family member or we get disabled in the future having those terrible powers of attorney you know who can make decisions for us financially medically. Making sure we have a plan for the financial side of it I. Do we have traditional long term care insurance where we would have a plan that would reimburse us for our costs do we have a an annuity. We're using for income that has a double pay out for. That time so that when were in in nursing home it pays twice what it was paying you know so if you're in 101000 dollars a year now pays 20000 dollars here. Do we have a life insurance policy that's built into our plan. And maybe that plan has 25% of the death benefit that's there for long term care expenses there's so many ways that we can address long term care we just recently or working with a couple that. Came to us through this show. They came and talk about long term care and now we're doing all their planning. Because it just made so much more sense in the incident in a traditional long term care plan. But to build it into their income plan so yes long term cares extremely. Important however there's a lot of different ways to address it. And because we do you have a life and health license and because I've taken the state. Partnership program and on the continuing and we can be resource and we can talk about it. And we don't have to pass on to somewhere else we can take care right here at retirement solutions here. Allen other great channel attacking that longevity today before we wrap up any final thoughts. Just it. Our listeners need to understand that a lot goes and the financial planning. And I know there's a lot of people that can feel they can do it themselves and that's fantastic but when it comes to taking care long term care and health care. That you need that insurance license you need to know which companies and carriers should be using in new leaks another part of that as far as which ones purchase and utilized so. We can be resource where there were 100%. Your team or whether were just there to help put the part that you can't do yourself until you're ready for that other part. Long term care so important income planning so important. But I also. Eighty institutionally managed. Volatility controlled stock portfolio. Is also I feel very important because there's a lot of growth availability in the stock market. And just as there's many people who do it themselves in the market whose many people that have a hands off approach the market they don't want revolt in Elway risk. And I am here to say that he that maybe missing a big vote too so. He had nice balanced approach. Of different asset classes different investments all working together. To create a complete and holistic retirement plan and process. Is what I've created here retirement solutions troops I'm really hoping that today's the day that you decide to take care of yourself to. Take your your family and picked up that telephone and down 9136859422. Maybe just wanted to come to one of our workshops. And with some other peers like yourself. You're about. What I do and what. My team can do for you and then make that decision to come and visit may be here ready to come in and see us now. Either way it starts with a phone call 91368594. Two to. We'll put you through this round table retirement review at retirements or sister. It no cost no obligation at all starts with a phone call it never hurts to get a second opinion. 9136859422. That's nine when 365. 9422. You've been listening to retire right with Allan Becker on the retirement. News network. Investment advisory services offered through eight. LLC retirement solutions group is an independent financial services firm that helps people create retirement strategies using a variety of insurance and investment products. Investing involves risk including the potential loss of principal any references to safety security or guaranteed lifetime income generally referred to fixed insurance products never securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company. Retirement solutions group is not permitted to offer and no statement made during this show shall constitute tax or legal advice. You should talk to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency.