Retire Right 06.18.17 Seg1.mp3

Retire Right with Alan Becker
Sunday, June 18th

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

Investing involves risk including the loss of principal no investment strategy can guarantee a profit or protect against loss in periods of declining values any references to protection benefits or lifetime income generally referred to a 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 are firm may be able to identify potential retirement income gaps -- me introduce insurance products like annuities as a potential solution talk to your financial professional and your tax advisor about -- Social Security benefits can fit into a complete retirement income strategy financial professionals are able to provide you with information but not guidance or advice related to Social Security benefits Allan Becker is an investment advisor representative and insurance professional with retirement solutions group retirement solutions group is an independent financial services firm that helps people create retirement strategies every -- using a variety of insurance and investment products to work toward meeting their specific goals we are not permitted to offer and -- -- -- during the show shall constitute tax or legal advice he 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 investment advisory services offered -- a wealth management LLC. This these three tire right with Allen back here. And the retirement views networks may get most active. Allah is the president and CEO what the retirement solutions group. With more than eighteen years of financial experience Alan and his team will help preserve and maintain his client's way of life. And the legacy they leave behind. This is retire right with Allan Becker. On the retirement news network. Hi Megan NASDAQ from the retirement news network so glad to be joined by Alan backer of retirement solutions group as you can reach out to Alan at any point during our show hearsay is number keep that he any of you have any questions about today's show topic. You can reach out. At 91368594. Suits you if you're ready to get serious about your retirement if you'd like to set that visit with Allen to come in talked with him about your plan for retirement. It's as easy as a phone call. 9136859. Ports YouTube Allen has a completely revamped website if you haven't been here yet check it out pre and you. Go to retire right Casey. Dot com that's retire right Casey dot com so they about this in less then ten years and 20/20 six the United States is gonna celebrate get says it's 250. Birthday pretty incredible right. Now this is a day when we celebrate our declaration of independence from Great Britain. This day as Americans I think independence is just in our collective DNA we love our independence right. Or country of free thinkers mavericks are people who are willing to speak up for what we believe and and we're not free to question the status quell in fact. I think we're driven to make progress to a vault to always find a better way. Says today we're going to be talking about how to build toward your own financial independence and Alan I'm glad to have this conversation with you I think it's really. Apropos as were getting closer to. The fourth of July I. And Megan is always a pleasure to be here I think you're talking about the revolutionary war and you know we've always had. Issues with taxation without representation. And you know we're not here to talk about red coats and tea parties necessarily poll we are talking about his financial independence and as we get closer and closer to retirement you wanna make sure we're prepared to enjoy the things that we've. I wanna do in retirement with the money that we've saved and you know the big question a lot of people have is do I have enough what am I gonna need. What should I be doing it is to make sure on the air so I'm looking for great show today. It is going to be a good one and I know that people are so interested in finding. That financial independence especially as he's thinking about retirement and you know on the financial world we've got a lot of products we've got Sony strategies out there when we're thinking about funding our future and and using their life savings to do that and sometimes we got a challenge popular thinking right about how our money's gonna be best handled. Fortunately financial professionals people like you Alan you can help us optimize our assets that nest egg that we worked so hard to build and achieve but we know Alan. Down at the professional were working with these really our ally someone who's got her best interest. Mine right. Yeah and me and we have to be questioning all the advice were giving him make sure that it fits in in what we want to accomplish in other words I'm a firm believer that when it comes to our money you gotta ask questions you gotta be working with somebody. That understands what you and your family are trying to accomplish. And that you're working towards same goal. You know money only has two purposes in this is really deep concept because there's a lot of things that come to people's mind when I say what is money do we really just spend it or given away. Everything else in between whether you're saving for retirement. But eventually you're gonna spend inner pass and on. So that money has to be positioned to accomplish the goals and it into what you wanted to do in retirement you just can't take it with yep. So there's something you want in life you might as well enjoy it and understand how your assets should be positioned to accomplish those goals otherwise educators can. I that's sports car when your money. Good point so we're either going to spend it or given away when you break it down and make it pretty simple. You know it's easy to get a grasp on how you're going to use that money so in this spirit of independence Alan we're talking about today. Let's begin to challenge some of those hard and fast financial rules that the establishment has given us right I wanna talk about what you think we should be questioning. Before we decide if perhaps that rule makes sense for us to follow. And share what. Rules that comes to mind is the 4% role not just the basic concept of starting with 4% of your retirement dollars and using that to live on and then offsetting out of for inflation each year. So that you tend to take a little bit more each year. And you really have to challenge that concept when we look at the market does correct. Every so many years and I understand. We've been in a bull market for many years and people tend to get amnesia and forget about the pain of you know nearly 20020089. But the truth is that if you're taken 4% a year and you have a correction. You're gonna end up taking a lot more than 4% and that's the ones that have that you know that Porsche has left the barn so to speak. You're gonna have a real hard time catching up so we have to challenge the 4% Roland think it somewhat has to do with. How our assets are positioned meat is another sign that as we've got the old 6040 rule and that talks about using bonds the we just and it. A time of unprecedented. In and in ever is we've got thirty years. Of a bull market in the bonds hasn't it. So we're pretty gal I mean look at a financial planner today were working in an environment with some of the lowest interest rates ever in the highest market ever. Wow okay so with that said. Why is it's so important to question net 4% rule the what do you think are are the biggest shortcomings. Well it's not a 100% full proof for one. And when we look at the different studies that have been done out there if you're gonna live a long life my grandmother she's a hundred years old she's been an assisted living in now on nursing home for several years and at an expense that's that's. Just astronomical to take care of somebody in a memory care unit in that something may have to take into consideration as medical expenses you have to taking consideration. Family who may need help for something are unforeseen things that may come to use such as needing a roof replacement or. A new car so there's expenses outside of the norm so all we're doing is taking our retirement assets we first have to know. What are we gonna spend in retirement so we need a budget. We need to figure out. How much we're gonna happen is it enough and then is that 4% gonna get us there. It you know I challenge that because. If your gonna live. 3040 years of unemployment or retirement there's a good possibility you're gonna run out of money when those corrections come so. That's what I'm really fearing that are a lot of our listeners are used to outdated concepts like that. And it's gonna put him for a real risk that they're not gonna make it to enter retirement without run out of money. Then your retirement solutions group and ours to investments. We utilize around they retire process that's designed to help our clients achieve simplicity and more financial security during the second half of their lives and it's focused around providing you a five star planning experience and in these five key areas we addressed in complaining investment planning. Tax efficient planning. Legacy planning as wells the health care planning. And sticky owe it to yourself. To come visit was somebody that understands. All the areas as you transition to the preservation and distribution portions of your life because most of visors are concentrating on the accumulation phase where it's read return on investment. Only wanna take our line redefined that his reliability event comes so comes in nineteen. Here retirements is sister but call me in 9136859422. That's 9136859. Before 22. What I wanted to news is what you do our proprietary roundtable retire process which you do that around their retirement review. At no cost no obligation and get some answers your questions so you know how long your money's no laster retirement and you can start planning for the future. 9136859422. Easy phone call that I get started 91368594. Exceed two to reach out to Alan and that team at retirement solutions group and course very convenient location for you right at 435 in Metcalf in Overland Park. You can call the set that visit to come in meet Alan and his team or you can check them out on cloning for more information go to retire right Casey. Dot com new website from talent it's retire right TC dot com. Allen holds ongoing dinner workshops these are great seminars and educational events there held at terrific restaurants right here in the Kansas City area if you'd like to get registered for one of those head to retire right TC dot com. For more information on Matt Allen haven't another rule something that's really common out there in the personal finance establishment but you think maybe we should. You area it. It's the 6040. Asset allocation Roland and I think we need a little background on this. The deal Alice come out and has put in place a fiduciary standard which says that if you're workhorse and has qualified money. You have to act in the client's best interest. And that means that anybody who's working qualified money going for have to put your interest above there out but there's a license for that it's a series 65 or series 66 fiduciary license that. It's a little confusing right now because a lot of people out there. Are acting as fiduciary is but they're not. Actually fiduciary as far as taking the tests and doing a liability and that kind of thing so there's that I think a lot of people are gonna be confused like. Am I working with that the this year they just acting as a fiduciary and I know that's a fine line but I I think it's real important. In the other side of that is dual licensing Megyn you've told our listeners quite a few times that I hold an insurance license as well as the securities license. And I think that comes full circle here. So when you're working with Sami just has a securities license that they don't hold the insurance license they're going to be giving advice a lot of times on something they're not licensed and which I have a problem went and they're also gonna look at the 6040 rule as a stock bond or relationship so they may say let's put 40% in bonds or as you get older switch that to 60% of bonds 40% in stocks. But they're using bonds. To let you shoulder the longevity risk used to shoulder the interest rate risk. Him and instead didn't in my world I like to use the portion that we would put primarily in bonds with an insurance company is a highly rated insurance company that can manage that bond. Or it fixed rate of return a lot better systems eluding my portfolios. And having our client children that risk. I shoulder that risk onto I highly rated insurance carrier and the reason for this as were living longer and we don't know how long we're gonna lip and you know. The great thing about financial planning as you need one if you have a long life if you if you pass away tomorrow planning is not that important. But that's the thing we don't know win something's gonna happen we also know. That's a lot of things out there that we may not know because we don't work with them each and every day meaning. Those of you that are listening in when you're working with a fiduciary and financial plan that works in this arena each and every day. Like myself has been doing this just under twenty years we've got somebody that's got a lot of experience they can share back to you. So just taking a hard fast rule and not challenging it. Keep give you a false sense of security and what we wanna do is eliminate that fault system just curious if possible and show you how to. Make it valid to retirement but through retirement and our roundtable retirement process is just a solution. To assist you in hopefully feel more comfortable through your retirement. Alan so much of what we're talking about his mention in your book you're the author of return on investment or reliability of income the true meaning of our ally in the golden years fantastic book and I understand if people come in to see you. They get a copy is that right. Now hitting your copy Megan they get a signed cup hopes again I. My mom thought that was a really great features a video of we we do hand those out I think it's gives of people agree window into kind of our philosophy and how. We give people to enter retirement and that all starts with proper income planning taking your streams of cash flow and dirt in determining. Your lifestyle. So we help use stabilizer cash flow more competent retire and that's gonna include pension optimizations Social Security optimization. As well as helping you figure out wind should you be taking Social Security benefits and then looking at your portfolio income and making sure. That you have a plan of where you should draw from and we do this. At no cost no obligation and for the next ten cars if they'll pick up the phone call me at 91368594. 22 that's 91368594. Point two. We're gonna get you on our calendar and teacher questions answered put you to our route to retire process. And that's gonna really help you with some concepts to get to to enter retirement to give us a call 9136859. Before 22. What kind of assumptions are you making about retirement planning coming up next Allen brings us more industry go to C news that deserve a second look. Will be right back. This is retire right we've Allan Becker on the retirement. News network. Whether you're approaching retirement or already retired transitioning into retirement can be daunting thought. We're looking to get income. What is the market drops how she can take Social Security doing this team from retirement solutions groups and IST investments for a discussion about these factors and more. All while retirement solutions group treats you to a complimentary dinner at 801 chop house in Cleveland. He's taken. PM on Tuesday June 24. Thursday June 22 at 801 chop house in England. Reservations are required so call 9136859422. To reserve Dorsey today that's 913685. And 9422. 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 by Casey dot com. Investment advisory services offered through eighteen wealth management LLC. This is retire right with the Alan Ackerman on the retirement. News network. Hi it's Megan NASDAQ with the retirement. News network I'm here with Alan backer of retirement solutions group and Allen he can help you build that retirement you always envision for yourself all it takes is. A phone call to get started here's the number. 9136859. Board suits you. That number at retirement solutions group. 91368590. Port 22 his web site check that out as well retire right Casey dot com. Today on our show were rethinking some long held even outdated assumptions about finances and retirement. And Allan great job showing us the limitations of got 4% rule its cousin has this 6040 asset allocation model. But what other assumptions are we putting too much faith and when it comes to our retirement strategy. Obviously when we talk about retirement may and we think about Social Security. And we also think about Medicare. A lot of people are putting not enough stock and too much stock on the same so here's what I mean. We think about social security and this is something that as we started today show we talked about the taxation without representation. And you know we have put these Social Security system in place it's been here. Since the early forties and it's not going anywhere but they're gonna have to modify it. So to think it's gonna go completely away I think is overkill but to think that it's not gonna change or just some. I think is under cal and then when we look at the fact of Medicare many people just don't understand how it plays then but I cut my teeth in this industry on Medicare. And my team here retirement solutions group we still spent a lot of time assisting our client family with navigating through Medicare the prescription drug plans and understanding it so let me give you an example where those two crossed together. First off Social Security was never designed to cover a 100% of the cost in retirement. So when that first came now let's kind of look at the the landscape that we are and we had an average life expectancy of 62 and a half any. Social Security system they kicked in it full retirement ages 65 so what a beautiful system the government came out with. That. Less than half the people would ever receive benefit but if we fast forward sixty years we now have a system. Or less people are paying into it compared to what are drawing out in other words. We're used to be fourteen workers for every one retiree now it's like two to one so there's definitely a lot less people paying in compared to what are using it. But they've only move the system by two years full retirement age is somewhere around 6767. And a few months the pending underage. And the average life expectancy if you're married couple one of you should make it in 92 according missiles period I guess if you're not married. Manner around 83 women around 86 so you have this concern that we're living longer but Social Security. It's gonna cover about 35 cents on the dollar for what we and potentially need your retirement and that's all relative that's. Mean even be saying that too is a little limiting in the sense of I don't know you yet and until I know what you're really spending and that's where all comes from. You can have all the money in the world but if you're going through it faster than that you can replace that you're gonna run out. You can have very little money and stretch of you know as far as you need to so it's all relative to whoever meeting went in and what they're working with in retirement. Apple what I wanna provide is you the listener to ability. To know what you could draw from and then making sure that it's. Eat working in a tax efficient way. And that you can whether you wanna support charity church children or your own lifestyle that you're using those funds and me good Steward of your money. In any direction so bringing that back to the Medicare side of things when you turn 65 now. If you're disabled for 24 months you can get on the Medicare system as well but if you are just turned 65. Healthy person you go on Medicare if you paid in for ten years or forty quarters you get your Medicare per day at no cost Medicare part B. There's a premium it's a little different depending on your age because they. There's these exclusion rules that basically say you can't. If they raise. Your Social Security payment they cannot raise your Medicare more than this'll security so different clusters might think that they're paying a different amount but it's around 400 and 45 dollars a month and day for somebody who's joining Medicare. Well if you're expecting. 2000 a month from Social Security at 65 you need to know that you have to lower your Social Security payment by that pattern 45 dollars for your Medicare part B premium many people don't factor at a I see a lot of financial people that. Look at cost of living increases as part of Medicare and Social Security to help them in retirement in two depend on that. I would never do that because if you look at the inflation over the last. Hundred years typically when there's an Medicare increase personal security increase excuse me the bat is eaten up. By the Medicare increase so. Most retirees can't plan on that going into their budget. So we really have to look at the plans that the government's put out force and understand how we can truly utilized them and how they fit into our overall. Puzzle to Allen when we think about Social Security would think about Medicare that likely it's not going to be enough to get two tier retirement so from an income perspective most people do need to find those other sources to generate a consistent stream of income that's gonna last as long as they needed to. Where turner well a lot of people think that putting money into their 40 and K there for a three B their IRAs to get to retirement should be enough and I and I think just depending on the out without doing the math than no in the numbers really leaves you with a big unknown. So you half to. Sit down and in budget through figure out what you're spending now what you plan on spending in the future factoring in inflation and there are looking at every day Saturday what do you wanna do any time you wanna keep working T wanna retire and and not work at all do you wanna know us start a foundation or spoil the grandkids are what is it that you want to do in retirement and then you share that with. Myself my team we're gonna help you make that a reality if at all possible and that's what we do each and every day because it's not so much what you spend. It's how you've invested. To what you have to spend it. There's no time like the president's plan for the future when you're thinking about retiring in and are you ready to retire there's a lot of questions that go through your head that's why we created the routes Avery tire process to give you a place to get those questions answers so you can address your income planning the investment planning. Making sure you have a tax efficient portfolio and are looking at how your diaries work and making sure that your not leaving your spouse with. Future taxes that you could've avoided also looking at your legacy planning we worked hand in hand with a estate planning attorney. We can work with years or you can utilize our. Either way we wanna make sure what you've saved all your life for those of the people places you want it to how does health care plan do you need long term care insurance. Do you have an alternative. And dressed for a long term care. Concerns about your Medicare your prescription drugs we look at all of these different areas. When we put you through our route to your retirement process. For the next ten collars were gonna do all this work free at no cost no obligation just pick up the phone and call my team at 9136859422. That's 913. 659422. Let's get started today 9136859422. And we're glad to have you with us here on the program meg and those act from the retirement news network alongside Allen backer. And I'd like to be as website if you've not been make sure you check it out free and you. Re tire right Casey dot com this is a great resource for you you can also find out. More about Allen's ongoing dinner workshops held at terrific restaurants right here in the Kansas City area get to know Alan and find out his philosophy on retirement income. Again that's retire right TC. Dot com so Alan do you ever come across people who think they do have a solid retirement plan you know maybe they've got a pension or 401K but in actuality. Their retirement income is completely inadequate it's not gonna meet their needs. Yet may I think while there's a certain level of awareness it's accompanied by a significant amount months of uncertainty. Because. How do you know that you're putting enough away to cover all of your expenses and are you doing just before OK I'm a big believer that you shouldn't put away mortal for ONK. Then what they match and depending on the match of your company you actually made up be putting enough away so there's other things you should be doing teaching now into retirement but they're retirement. And that's where an analysis of what you're doing and how it's all working together is so very important. And based on your individual risk tolerance and uniqueness working with a fiduciary. And that's somebody that understands that they have to put your means. Above any other solutions and and that's so important that we use a fiduciary approach. Everything we do is focused on your best interest in this. Your money and your retirement and we believe that it should you know it just shouldn't be that hard to give you advice. That is truly best for you in with no conflicts of interest are. So you have to look at how everything's gonna play together. In that sand box of retirement so that everything's working. Hand in hand and this comes up big time with people that has had DIY mentality do it yourself so we'll talk about that in our next section as well. I was recently talking to. A client family that he does a lot of his own planning incidents where fiduciary. Explains it to him like this I don't. Have to work with all of your fonts I just have to know. How all your funds are working so that I can make sure my recommendations. Are working hand in hand with years because the truth is when something happens. And he can no longer do his own investing doesn't wanna do is on investing or just wants to retire or not worry about it marked up passed on the top. I want my firm and myself to be there to be a sounding board a place to answer those questions someone to help out. And the other part of it is. If you're doing yourself yet you might be able to do the stock market part but can you do the insurance part if you don't have an insurance license. Are you going to be over work with the annuities with the life insurance as an asset class. Finding out how to create tax free income in retirement. Not just tax deferred war. Is there a better way to position things instead of just using bonds and and stocks the answer is. Most likely there is and you should know what else is of available for it. So come on in Simi suwannee other finishers have my office but give our calendar there's no time at the present we're gonna do. A no cost no obligation roundtable retiree view for the next ten collars at 913. 6859422. That's 9136859422. Are you in the driver's seat on your retirement. If you're the one living it you should want to be in the know on your own retirement strategies coming up Allen helps us look at some common. Financial practices that's next. You are listening to reach higher ranked with the Allen back on the retirement. News network.