Retire Right 11.26.17 Seg2.mp3

Retire Right with Alan Becker
Sunday, November 26th

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 it's Megan those act from the retirement news network I'm here with the founder and president of retirement solutions group Allen Becker. And you can call him today if you'd like to set a strategy session with him to discuss your retirement maybe get that second opinion talent is available here's the phone number it's 9136859. Ports YouTube. Again 9136859. Ford YouTube today you're covering some of the key issues that you need to address as you prepare for retirement so here's a question. Do you plan to pay for access health care or even long term care expenses. Allen their expensive. So how much should we expect to pay for some of these big costs in retirement. Now Megan on average were talking about a quarter of a million dollars per person or more. It's expensive when you're talking about long term care expenses health care co pays health care insurance. The whole gamut. In this. Topic brings to light brings to the forefront so so brightly that you need to work with somebody that has an insurance license and a petition to. The financial planning background or the securities license. And what I'm talking about is a license fiduciary somebody that's a series 65 series 6060 fiduciary licensed to legally. Obligated to act in your best interest but on the second side of that is as insurance license so they can answer those health questions those long term care questions. Easy to walk in dad. Any financial planning firm and ask of you should mile long term care. And they're probably gonna answer that question but should thank truthfully should they be answering a question if they haven't taken the eight hour certification through the state. Also taken for our continuing education and had the insurance license exam prior to that. And done everything it takes to maintain that. It's a question that should be answered by a qualified. Financial planner who holds both licenses so that you can get the answers you deserve my grandmothers over a hundred years old. She has spent the last eight years. In assisted living in grandma hounds a lovely person but in her mid seventies she asked somebody if she should buy long term care. And she was told by the individual who has not places in the insurance. Arena that she should not buy it but yet he didn't do any background check to see. That her mom had spent several years and a long term care facility. What the cost of long term care less he just figured. With half a million dollar Sheikh itself insurer so he gave an answer because he didn't want her spending in the premium and taking that away. From the money he had to invest and that's not right. And that's what I wanna save our listeners from the make sure that they understand that there's a solution. Out there somewhere where you can go somewhere like retirement solutions through the cost. Of long term care. Can be astronomical. You have a one out of one chance you gonna pass away evil latitude chance that you're gonna make it to a nursing home at some point in your life. Nobody wants to admit that nobody wants to go. Put these facilities are everywhere they're popping up every day because we have 101000 people retiring every day these baby boomers and for about fifteen years those baby boomers are going to be traveling and doing what we do in retirement. That back fifteen years. Is a good chance we're gonna have a IE huge surge. Of people needing some form of long term care so I really want our listeners to know that we're here to help and who wanna be there for yet. And I know that he you mentioned your grandmother adding but it was both your grandmothers that were so instrumental in getting you into this industry in the first place because he saw Sitchin need to help people based on what they experienced. Yet ground Dina was. The one that that took the whole family out and watched me graduate from boot camp she's the woman lived here locally that I can grew up with and when I got out of the navy. About four years and eight months after that boot camp trip. She forgot how to speak she basically home than it was it was a very hard way to see such a strong willed. Lee somebody that. I mean you had in program on Venus she was. She had a kind heart but a stern way to. To present it. Just like my mom. And did she suffer a stroke Allen. Now it's just and it's occur slowly. Just one day she starred in forget apple and so nobody in my family's really. Ever suffered from any type of heart attacks strokes or anything like that cancers fortunately but alzheimer's one of those little long time minute panic and take it slowly and don't wish upon anybody but yes fresher. Gotten in this industry seeing that. And how it's how much Stanley experienced that grandma Helen I was thirty in the industry as she started transition things I was there to be the advisor and help and fortunately we still have few 100000 of that half a million that she's been living on for the last. Forty years. So she's gonna be okay we hope that you know that she won't outlive her money. But it's very important that your work with somebody that can help you understand what your options are. In order take risks to your principal at the same time here in the day live on that and he can't afford those losses to you won't have time to rebound. So let's let's just talk about it either of these expenses that you brought up earlier I mean in 25260000. Dollars. And that's per per cent over the course of our retirement not a lot of people just to have a quarter million dollars in extra cash slain in a round so what do you do and help people in this area because this is a tremendous acts back. There will make and as I look at a person's retirement and we go out 2030 years of unemployment mean retirement such a new concept. In the past you just kind of worked until you die the average life expectancy a hundred years ago is was right around 45 minutes slowly crept up. Over the last you know hundred years. Now we're looking at 8387. If you are 65 now you've got to. 50% chance you're gonna make it to you 92. You have a 25% chance you're gonna make it in 98 the thing that you wanna do is make sure you have the assets and and the ability to make it there now. Don't meet scarier completely. Understand that some of these expenses you're paying now. And you're used to when they're kind of party budgeted for example. You're probably paying a little bit for prescription drugs. Probably not what it's gonna cost you later you know there's a lot of terrible portable medical equipment that we don't think about anything from. Seep that machine oxygen. Adult diapers insulin I mean there's so many things as we get older. That coming in these have these cost and we see it all the time I was just recently talk and a merry. And she is literally. Not taking insulin because she's in the donut hole and having. Other health problems if she can't afford the cost for care right now because of the way the government's got the prescription drug plan now or work with there to get her to the manufacture to see if she can get some prescription assistance directly that oilwell is look at other avenues and opportunities and everybody's got a unique situation and that's what you need a team behind you who assessed. But again some of these cost there are either one I mean that he's got a Medicare. Co pay or Medicare. Type in planned cost or an advantage plan cost when you're paying something for health insurance. Rate your are you paying something potentially for co pays. So there's a cost that we add that up over. You're twenty or thirty years that's where we get to a quarter of a million dollars. But long term care expenses at four to 5000 a month maybe 78000 a month depending if you want us you know private room or if you. The memory care assistance that's the money that we're not prepared for and began if you're living in retirement and you've got a budget in you're not going to be traveling has your nursing home some of that monies are there to put there's a good sting of it. That's not and that's screening a look at long term care options and this is something that we do as part of around him retiree views if you're one of the next ten collars at 9136859422. I'm an apology to our roundtable retirees you have absolutely no cost and no obligation. And we're gonna look at your unique situation and how election now what you should do to address long term care economic advisors so I'm going to you work for you. And help you know understand your different options. You ultimately get to make the decisions but that's where financial advisor worked with viewing your best interest. To assist you to enter retirement so gimme a call let's look at your unique. Questions concerns and make sure we address some 9136859422. That's 9136859422. That number again 9136859422. To reach out to you Allan Becker and the team at retirement solutions group. What about long term care insurance because there's two things we know about this Allen number one is you probably get in needed even though you think you don't that's a lot of people organ in the unit number two. It isn't really expensive. So it what should we do should we. All be looking at long term care insurance is it and it's something everyone should have. Great question you know long term care something that. Everybody wants or wants to address but not everybody needs it not everybody should have it I was just meeting with John and Mary the other day that's what they came in the they heard one of our previous radio shows came and they wanted to talk about long term care. And told them he said you know there about a million dollars in assets they're still putting away money they really wanted to address long term care. So for them it probably makes sense but then again with. His military background and pension with his work pension he's fortunate that he has some fixed income coming in manufactured Social Security. And that million dollars and qualified money he doesn't really have an income problem so he was gonna nursing home or his wife. They're gonna have a cash flow of ten to 121000 dollars a month and retirements and they've done a very good job does that make sense to buy an insurance policy that they have a 50% chance of using or should they look at alternatives that we might have another couple come and this is Errol -- talk about long term care they have a 10200000. Dollars to their main wheel they're not set up. For long term care matter of fact one of the partnership program certification. Questions is if you have less than 200000 and assets. It's really not suitable for some made awfully long term care. Because you don't have enough assets to protect you should we worry more about living and enjoying life and then you know flip the cards and a follower they may on the rest of it. Any if you want to pile on from here even after that being said then you have to sign a waiver saying I was told not to buy it but I still want it it's a real interest in business. If you think about it there were 89 companies offering long term care few years back now there's like three. It's really been a awful product for the insurance companies they didn't expect people what one and as much as they did or we keep it as long as they do. Or use it as much as well and that's exactly what's happening you know one of two people are using it. And then you've got its. Nobody's dropping their policies once they get it so. It's been a a policy that's been very expensive for the insurance company to make. And maintained and it's been a policy that people really want to have in their portfolio. That's why taking to the alternatives because there's not as many companies offering it. Because of the cost of the insurance and the chances that you may not use it. Especially if you're one of those people that never experienced long term care and your family you you're gonna have a hard time thinking that's gonna happen to you. We can look at life insurance policies that have long term care benefits. The key to that is maybe we can find a solution that has double duty. If we can fix your income problem if we can fix here. Legacy concerns and then have those also cover your long term care needs. You're really in the situation where you're getting two birds with one stone and that's much better much more affordable. But it's one of those things that if you're not working win if if financial advisor that's a fiduciary and financial advisors that also as an insurance license. You're not gonna get those answers they're not licensed those products they don't know the alternative solutions. Just had an issue with the aim client recently. Where he went out and got a second opinion in which is fine I said bring the other guy with you let's talk about it but the issue was the other guy I was given them. Answers where it was. Obviously was either only an insurance license person he didn't understand the direction we're trying to use the products of his answers. Warren is concise because he didn't he didn't know the clients whole situation how we were using the product and we talk about tax efficiency that is so important. Because people gets hung up on the product rather than the solution and for most people once we understand the solution and the benefit. Then we're okay with figuring out what product does that mean who actually wants to buy seamen at. You know that hardware store but if you need seamen to. Pick Chicago creator whatever port news and you're gonna go buy it suit you gotta find the appropriate solution. And then figure or product fits that malt. Not the other where some places nation by an annuity that's that's a wrong answer he should you have any impending issue a year conservative. And you also cover long term care maybe you should consider an annuity let's look at bats wholly different way. Of accomplishing your goal and what you look at that. You may call 9136859422. That's 913685942. To nineteen and I will help you decide. And figure out. What's the best direction. 9136859422. You may have done about how you'll generate income in retirement and you may have even started to plan for health care costs in your later years I'd have you factored in all the risks. Alan outlines another major risk to your income and how to plan for it that's coming up next. From everyone here retire rescissions group we hope you have a happy Thanksgiving. Oh. Whether you're approaching retirement or already. Retired transitioning into retirement can be daunting thought we would get income. What does the market drops how she. And RSD investments for a discussion about these factors and more all well retirement solutions group treats you to a complimentary dinner. At 801 town house in Cleveland. You think today's 6 PM on Tuesday December 5 fourth Thursday December 7 at 801 townhouse in anyway. Reservations are required so call 9136859142. To reserve Dorsey today it's 91368590. Port 22. Seating is limited so call now to learn more about these events and how you can attend. Retirement solutions group 9136859142. Or online at retire right TC dot com. Investment advisory services offered through eight eat wealth management LLC. You are listening to retire right with Allan Becker on the retirement. News network. Hi Megan mosaic from their retirement news networks here with Alan backer of retirement solutions group ought to get the allens phone number today on the show it's 91368594. Or TU TU if you're looking to put together a retirement strategy. That's something that you know you media haven't gotten there yet he just Evan started Allen can help you make that first stab it's 9136859422. To begin that journey to and through retirement. Or outlining on our show today key areas of retirement planning that you simply can't afford to overlook these are really important and Alan we need to be aware that the cost of everything it's gonna go up right over the course of tend will need thirty years if we need to experience. Five to 7% rise in these health care costs along with inflation there were seen in other parts of the economy Connolly plan for inflation and keep it from destroying our savings. Well you're gonna get hit with certain things tire and hits and inaccurate. For health care inflation and taxes you've got to address all three you're not just looking at how much is my raider returner tire. That's so out dated this is not a buy and hold you need to look. And eating too into retirement. And corrections happen. And when you're taking money out of your retirement the key you just can't afford those big losses. At least in the money your living and that's what we look at that bucket approach we separate out things. We look at. Health care legacy. Inflation. Confessed investments. As well as income planning and tax efficiency we look at all these different areas. So specifically though inflation. One of the things I like to use is either a portfolio. With a high dividend producing. And that's conservative and with a low volatility approach but that still leaves some market risk it when I'm worried about more than anything. Is longevity risk the fact that you're gonna live too long and run out of money so we will look at using fixed indexed annuity cover that. And the fixed indexed annuities that I like to utilize now in productivity gains in the market without any downside. But they also gave view. The ability for increasing income the market does increase when you're taking income it gives you the ability to get to an increase in year. In your monthly checks so that will definitely people that inflation and he can't turn that CDs and money market these days they're paying less than 1% which is not keeping of inflation in their own design that's where fixed indexed annuity may be right for. Decision we have all our assets and annuities and Alan how little capsule in that definitely need diversification. Now sometimes were really conservatively like the looks of the annuity but he's still have to have an emergency funding need. Mean let's face it the market over the last fifty years has averaged over 7%. So do you really wanna give up. A 7% average return you just need to be worked with a financial professionally he trust. And it has. Help you to understand diversification and market or elation market timing and just so that you can. Weather those storms and quite frankly separate out the income that you're going to be needing to live on Warren. The market risk that you're willing to take the lead should be separate not just to lose your portfolio by bonds like so many people do these days. Really set pre out with different types of vehicles in different types of asset classes and wisely diversified portfolio. You know arf. Are powerful as average sixty different countries eighteen different asset classes and 1210121000. Positions and we're talking about diversification. Diversification. Are right to that's a big word and we hear this allow we're talking about retirement retirement planning how do you address that though which your client tidy make sure they're. They're actually properly diversified Allen. What would diversification. It doesn't mean have three to five different advisors so that you've got money Oliver towns that you feel like you're diversified your game different advice. What it means about as making sure that your assets are correlated you're not sitting around with with three different mutual funds and a hole in the same. Primary holdings silly if there is a change in the market itself and go down with the ship. Diversification. Is exactly why we use those managed portfolios. Because they're actively managed there regularly read balanced and they have thousands of positions. Amongst. Several different asset classes. In front of several different countries so that. We are. Really raced for whatever the world throws at us now does that mean not lose any thank you know whenever you're dealing with the stock market. You have to judge. Be able to afford some rest. If you want to eliminate risk completely that's where you have to look at the insurance products which has come full circle again to say you have to be working with somebody. As both an insurance license any securities license. And I say securities license I mean series 65 or 66. Somebody that has to be a fiduciary. And working your best interest it's so important to get you to enter retirement. Three working with somebody that can talk about what you need in retirement and not just talk or rate of return. We've been horrible market for the last nine years it's pretty easy for an investment person to do good in an up market is this the time to jump back him. That's not what I'm saying what I'm saying is. You need to have a complete diversified portfolio. Where you using all the different buckets so that you can look at a new age you can look at life insurance Roth's. Traditional wire days. Real estate. All the different pieces out there and make sure. That it's all working together you're Social Security your pension your HSAs that's all played together nicely in the same sandbox. So that it's all get along so you can get too into retirement this is why he won in the next ten dollars and 913. 6859422. So that we can teach you into our round today retire her processed into the front of the calendar. So we can address your concerns we need to take social security and let's make sure that you have a longevity plan. That you understand volatile markets that you have a plan for the rising health care costs long term care inflation. We all do this at no cost no obligation 9136859422. That's 9136859. Before 22. Allen's web site you can check that out by going to retire right TC dot com that's retire right Casey dot com you know there are so many threats out there when we think about retirement threats they can attack our nest day egg cause it to take a major hit so how every day retiree come up with a plan Allen to start to avoid some. Those risks I'd say it's a solid foundation and and I plan to make it to enter retirement. Somebody like our roundtable retirement process forward to address the income planning. The investment tax planning health care legacy. Having that you plan having longevity risk volatile markets. The rising health care costs long term care inflation these are all true considerations posters many more I mean inflation risk. Is something that. You know lately has been pretty low but it's. You know. That's its faults the governments can keep women down and at some point it's gonna have to creep back up there so we need to have. Something to address each of these concerns and that's where around ten retirement process comes in so if you have a written plan bring them with yet. And let's review that you should definitely have a written plan everybody should. So if you don't that should make you one come see us all that much more so give us a call 913685914. To. Alan it's been a great show today as we've talked about some of these big questions that need to ask yourself Asia getting ready for retirement. Any final comments here to share with us today. Maine it's always such a pleasure to be sharing these fairways with you and I enjoy our time together each week with. One thing I enjoy more than anything sitting down with our two local families and having them come and get their questions answered. That's the thing about is not a job. It's a way of life it's a Trier I'm passionate about it hopefully my passion comes out over the airwaves. I've gotten a lot of good calls from our listeners. Saying that they they can feel that I I'd like what I do and it. They think that I help element and that's the truth is. I am very very passionate about this industry and I love it so blessed and fortunate I was able to find my calling something they enjoy doing in the and good that the key to it is. It's only people. Think we've either got a handle on it or that they know all the questions to answer. Until this Annapolis summit that specialize or retirement planning. And they find out you being fixed indexed annuities aren't all bad war they find out that. There's more to Social Security or Medicare or different people have different motivation socialist I think it's. Fantastic that our listeners take the time to listen to our show than you think about what we say pretty universal. Half the battle relieve you have to dial the phone number go to the website. Read my book you have to start the process whatever your processes. We'd like to please you are around there retire process I would hope that our listeners would say. Okay we're given them some food for thought how are taken that to the next level coming up to one of our our great workshops are just just really. Retiring radio life I get up there with a white board and that start answering questions we just talk about. Tax efficiency or retirement Social Security. All the great topics that you and I talked about each and every week Megan but we do that lives at a very nice restaurant get a great meal good dessert. And hopefully. At that point scheduled visit command personally visit to their listeners while one and that's something that I would encourage. Each of their right to do is to give me a call 9136859422. Very important phone number. Because he gets into my office where we will keep your questions answered 91368594. Teach you to retirement planning is about. Understanding and having a plan to get you to enter retirement. Retirement is a journey and proper planning is the key. You need somebody's experience team helped you to know all the questions to answer so whatever you've done for living. I pitch I could do your job I would imagine. That with my help you can get your retirement little it better sometimes experience. Is what you're really looking forward on the today 91368594. To achieve this 9136859422. Until next week. Want everybody to retire right this is now Decker we'll see you next week. You've been listening to retire right with Allan Becker on the retirement. News network. 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 and 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 day using a variety of insurance and investment products to work toward meeting their specific goals we are not permitted to offer and no statement made during -- show shall constitute tax or legal advice -- 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 you -- wealth management LLC.