Retire Right 12.03.17 Seg1.mp3

Retire Right with Alan Becker
Sunday, December 3rd

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

This these three tire right with Allan Becker. And the retirement fuse network's Megyn 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. I it's Megan NASDAQ from the retirement news network I am here with Alan backer of retirement solutions group. You can reach out to Allen and a team that are as Steve by calling 9136859422. You hears that number again it's 9136859422. Draw also welcomed the log on his website at retire right Casey. Dad's com now if you ever watch professional divers may be at the Olympics you've seen all those careful steps that they take on the platform and springboard leading up to their drive. And those steps that they taped well they're just as critical as the dive itself. They're measured in practiced again and again because any misstep there can mean the difference between a medal winning dive in while the agony of defeat which brings me to today's topic keep financial steps you can take as you prepare to dive into retirement and here to take us through those steps up the latter an off the board is Allen of course and Alan prettiest start here with a client it comes to you they say boy Alan Murray tire. Right away really seeing. I may have I like the start at the beginning believe it or not you know instantly comes and our office for the first time. We never met them we don't know anything about on site I believe the first thing to do is to listen and formulate a picture if you like I can relate it's electric the other puzzle. Him many of us with ought to jigsaw puzzle but one together silence to go back to the point when you purchase that jigsaw puzzle. Yet to decide which one you're on a bye got to look at the picture on the front of the box that's what our first visit as we have to figure out what the retiree in front of us wants to do in retirement you know where they gonna spend their time each day each week each month. And what hobbies you like in what are you wanna try and pick up as the new hobby maybe you've always wanted to spend some time on the golf course will call things not inexpensive. So you have to prepare for those expenses those costs. So we like to build a nice picture of your bucket list and what you want to accomplish your retirement and then figure out while that's gonna cost as we decide to transition from the accumulation phase of retirement in TV. Preservation. Part of life. It's asking about that right Allan because as your looking at all that and someone does that has that feel for what they want their retirement to look like how do you then prepare for that lifestyle. There's lots of ways so you know one thing is the kind of taken on a test drive. I was just recently working with a couple that retired at a tough Fort Leavenworth they're actually a navy couple that were stationed out on the army base. And when they retired they wanted to travel. Fired RV and and go around the country well about a year before their retirements we started talking about the possibility of doing this. And then recently they did retire well we. Help them to sell a house and put it off to the side that money so when they come back from this adventure for the next couple years they have that money sitting there to purchase another home and they went out and got their RV now this is a pretty drastic example and if you're thinking about doing and I would tell you you know maybe rent an RV first and see if you liked the experience. I personally on and our Vienna I'll probably battle anybody this is boats are expensive to figure out which is worse. And her fear vote their staff listened Coston both but figuring out what you wanted to do retirement and then. Conan practicing it so that you can decide if that's really what you gonna do bombing cell of the house and downsizing her somehow some movement across country here by an RV. All of these are pretty drastic measures but I was talking to a couple of a workshop just the other day he asked me where the best place street tireless. And is looking for financial answered that based on taxes and what not I just look at a recent you know the best blistered tires were appeared grandkids are home at the June 5 set but as. His wife like that answer he went after another try. I say now I'm I'm sticking with that answer. We're glad you're spending some time with us here on the program today wanna give you Allen's website and haven't been near he had. Go to retire right Casey dot com that's retire right Casey. Dot com Allan as we're talking about these things today just understanding what retirements gonna look like and how to pay for it. Are there ways to create all. We're making as we help people. Finally you ready for retirement financially but mentally as well so. We have to get people to start thinking about he spent all these years saving three tire saving your money and then you get to this time and I'll send you get a start spending and nobody wants to watch their finances go down but ultimately. The number one fear retirees running out of money wouldn't be a fear if people haven't you know run out of money before we got to retirement. Which means people are living longer money's not lasting as long as it needs to. So we want to find solutions that help eliminate that number one fear which is running out of money. And we do this a lot of ways one ways to help with costs on our investments are looking at the fees that are associated with in the different types of accounts that we might have. And when I'm saying council can be talked about are forward K in the trading costs over the brokerage fees and there could be viewed new reason that fees that may be related to the writers on there are for the variable annuity the underlying accounts socially different places that can cost us in retirement and we may think it's insignificant but in my workshops I talk about two portfolios. To use an example one that pays six point 04% one pays six point 03% so just over 6% a year returned average over the last seventeen years. The interesting thing about these two portfolios over the seventeen year period that I am showing at the workshop. There's a half a million dollar difference in these two portfolios in the accumulation face in the distribution phase when you're preserving your assets and living on debtors. An 800000. Dollar difference between the two accounts matter of fact the one that is just trying to buy and hold strategy. Is the one it shows you where you gonna potentially run out of money and retirement if you live a long time. First is the actively managed portfolio so we really need to look. Can understand how or investing and think about what I just said to portfolios that are hundredth of a tenth of percent difference in returns over seventeen year period. In the distribution. Part of life that preservation part have over 800000. Dollars difference. And the wall with a six point 03 wins because it's a managed portfolio. That has a lot less volatility. Finding a financial professional that you can trust Allen they can feel comfortable with you know that takes time but I know can make. All the difference right when it comes to planning a successful retirement. And speaking of making a difference let's discuss another way another way with a lower. Our expenses in retirement. Yeah well the first thing you said those fighting a financial professional you can trust actually hear this all the time from our clients that they cabinet and wholesale -- on the radio when you made sense or I've been listening for awhile now decided to go to what are your workshops. And take that next step they'll ask around to people they work with their Brothers relaxes and you know here a lot of the same. Feedback that hey that he your book was really good and informative or I talked to a friend and they are working with you or whatever so after finding somebody you trust is very important and I act field. That we knew our finding someone to work with these should be duly license or I mean that is they have to have a life and health licensed in addition to securities license and they need to be an independent fiduciary fiduciary somebody who's legally required to put your interest before everything else. Also somebody that knows how to answer the long term care questions that health insurance questions. Can help you with tax efficiency and they don't have their hands cuff so to speak. When it comes to making recommendations because of that the big ivory tower behind and that's talent what they can he can offer so yeah it's very important find a financial professional that you could trust. If you come away at I don't want to I don't talent to be taken lightly it's very important. But we can also look at some other things you know consider where you're gonna live and retirement. You know that can be and downsizing and downsizing will let me change zealot let's call right sizing Megan because downsizing is and always less expensive. Hell out of a spot those houses years ago. And the price of real estate has come up and to move over to another house that may be smaller but have all the new bells and whistles you know it. Could cost more if not the same for four less so to speak. So we have to look at where we wanna live I said it earlier. Where the grandkids are I would tell you to look first especially if those those children of years that have those grandkids are cemented where they live. Some a look at it and you know we also look at paying off our mortgage on our primary residence. Could give us the ability to do other things because it creates more cash flow we are soft a look at you know the eight to waive fees maintenance costs. Lawn care can we do this on the maintenance of our house maybe it's too big maybe it's too small to all of those things come into play. Well we don't realizes that annual expenses can really take a whole lot of retirement and that comes from a lot of different places so we need to figure out when we should take Social Security. Make sure we understand how much are bills are going to be what needs to be covered those sorts of things. Lot goes into planning for retirement you know you're Smart you're listening to the show because. It means you're taking moves the steps that you at least the first one which is. Getting some information the next step would be to come and sit down with myself for my team. And get a fresh perspective on your retirement path. To do that and what you call my office call me at 9136859422. Seeking get a customized retirement roundtable review it's so important that you go into retirement with all the appropriate information in this customized assessment it's really gonna help you uncover airs where there's opportunity to help grow your retirement nest thing so your retirement provide enough income for as long as you need it. In this analysis includes things like announced a valuation how much you save for retirement how much China riskier assets are exposed to look at your retirement goals how much income you might need to support those goals just it's just so much value inside this roundtable retire review. In this analysis is completely customized based on your circumstances and there's actually no obligation but I am gonna limit it to the first ten dollars on today's show ready for retirement to retire sometime in the future you may call 9136859422. Coming out and customize retire around to a review of 9136859422. That's 9136859. Before 22. If you're ready to dive into retirement what are the key steps he need to prepare. Today Allen is sharing the best tips and strategies to retire on your terms stay with us. 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 would get income. One of 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. LLC. This is retire right with the Alan Ackerman on the retirement. News network. Hi it's Megan knows act from the retirement news network glad to have you with us today here on the program this is retire right with Alan backer. Allen's been helping people right here in our community greater Kansas City metro area plan for their retirement for more than twenty years now if you need help in this area. Getting ready for this next phase of life of retirement. I encourage you to reach out to Alan he'd be happy to sit down with DC where you are where you want to be in and create that plan to get there here's the phone number 9136859422. It's 9136859422. As are attacking today helping you died in their retirement on the show Alan I know it's important that we start to define what retirement it'll look like you know what will fill our days with what were out of the workforce. And we got that picture of our lifestyle on guessing we plan to pay for it hates how. We start here. Here are decisions you were a team so we have over ten people on our staff people to help you coordinate wind become in some to help put together a plan for yeah. Couple investment advisors. To me takes it takes a village it really does so first thing we like to do is after our first visit world where like to get to know you when you come in and the next that we use will create a statement of accounts are I. Because many people have accounts all over the place in anything from deferred annuities investments for McCain is higher as Roth. Life insurance real estate having the list goes on and on so we helped to simplify that just kind of separate his and hers qualified. Roth. Non qualified. He had a total of assets so we can figure out what we're working with that's. Liquid are available to use for income in retirement. Now when I say qualified. I'm talking about monies. That technically our ears yet you've not paid the taxes on them so you have. Future required minimum distribution on those assets and non qualified money is money party pay taxes on its come through your paycheck taxes been paid. And put in your bank brokerage account somewhere. And any money you take out of that are going to be. Taxed if in ordinary income if there are short term capital gains fear long term capital gains based on that rate. You're from 01520%. And you have access to them immediately if they're in the non qualified section where it's monies we can use for emergency fund our. To weather the storms of the market that kind of thing which brings us to another source of income that we need to look at which is. Looking at what organ user retirement creep income based on guarantees or nine guaranteed income sources. So let's talk about that because you know when you've got that guaranteed in the non guaranteed they have to kind of worked together that you really need to know. What's coming from where right. Oh absolutely. That's why I have two hats they gonna talk about it quite often but you know I put on an insurance had a can use a word like guaranteed. But I take that off and put on the investment happy and an investment advisors guarantees out of the vocabulary so it's very clear. That what we're looking matter what type of product client or solution to figure out what type of solution we can look at so. Guaranteed means a specific source of income that's been provided you with income for the rest of your life that may come in monthly quarterly semiannual annually you pick the general things like social security and pensions also could be from an annuity fixed indexed fixed or even a variable annuity. Then there's a non guaranteed sources of income and these types of incomes could be based on stock market or bonds mutual funds eccentric may even be some fluctuation in some forms of real estate that you B that can be getting in command. You know if you have a tenant inside your real estate but then they ain't. Another their leases up partner and move out you can have some downtime where it's McNamee is consistent for alive matter of fact you may have to put some money into depth. Pop rather than take it out. He really have to look at all these different pieces and how they're going to be affecting your income. And then all of that looking at the taxes of and as well because. Some monies are taxed differently than others and if you have tax free money you can use all that but if you have taxable money. I. Do you view less when you take it out for example if you take out 101000 dollars. Your point 5% tax bracket. In Italy keeper around 7500 of that so you have to take count more to be able to have more. All of these are factored into how we created income plan into retirement so against two and through retirement. Alan if retirement getting close you know or maybe already retired. Chief heat and invest in the stock market. MA in that's a tough question asking gates depends on so many factors as a fiduciary. Advice I can never answer that question without doing the research for somebody says it's not a one size fits all type question. You really have to look it's only things. Like your equities here and just what you're working with the years how many would you already have and annuities and pension and Social Security. Where you hole in the income from a what your budget once we figure out all those things then we have to go back and look at are what your actual risk tolerance I have had people coming here with. Millions of dollars that should be able to take all the risk in the world and they don't want or risk a nickel and people coming here with not enough money to survive in their wanna risk at all so unfortunately that. Is very disproportionate sometimes to what it should be aiming we've heard people say you take your age minus a 110. You know I mean so if year after fifty years old minus a 110. Yeah that would give you 60% to you can take 60% at risk. And 40% and safety has several of foam. It doesn't necessarily mean it's right for everybody but it's it's good starting place. And then we've really just need to figure out what you can tolerate and then paste your plan on that because they nice volatility controlled. Portfolio can you know give you a lot of great returns retirement. And maybe helped me get through retirements and what comes your retirement assets and how to maximize them to provide you with the income you need for as long as you need. You may not know what you don't know. What you need is an objective viewpoint for someone who does this each and every day every tire professionals who can provide you with a well thought out strategy designed to help. Manage and maximize your retirement income if you're one of the first ten collars on today show at 9136859422. I'm an apology through our roundtable retirement review. This process that we have created here retirement solutions drew help you with your income planning investment and tax planning legacy planning health care planning. Everything you need to get to enter retirement we want to fill. More compromise your income in your financial well being during your retirement so please don't pass up this offer. Just be among the first ten people today to call 9136859422. Call now 9136859422. That's 9136859. Before putting too. You can also go online to Allen's web site retire right TC dot com if you'd like to attend one of his dinner seminars he's our great educational workshops held right here in Kansas City metro at fantastic restaurants get to meet Alan in the team and then learn more about Allen's velocity and generating income in retirement which is so important it is key to a successful retirement. So to get registered and seats to fill up quickly go to retire right. Casey dot com Alan how about having cash emergency fund is that a factor when it comes to determining just how much to invest in the stock market. Yeah definitely that we look at a emergency fund is. Is a requirement within our plan for several reasons. I like to call mama's money somewhat jokingly but not really coming when you think about it happy wife happy life and I know in my household. If Christie's got some money set off to the side. And she knows it's there. She's comfortable. Because she can address emergencies anything she needs she doesn't have to come to me years ago anywhere to get anything she's got the ability to write the checkered. You know take care and that's so important retirement is it's it's your money I mean what do you have. A 100000 or hundred million it doesn't matter it cheers and you should be able to get to it know how to invest and I had a collar just the other day called me up from the radio show and was one scheduled visit and asked me several questions before. Economic calendar. And one of them just was about that they said they had a advisor for last several years that they didn't feel like they had anything unique in their plane and they didn't really have any control or any understanding salute your money and that's the first and foremost issue is you need to have communication with your advisor you know what they're doing why they're doing and you need to have some input on. He liked that response but that's you know that's just the way I was raised in this industry and it's the way I understand things to be and you know what you just have an emergency funds he can weather the storm of the market having a look at that is someone who's got everything in the market that a lot of advisors do recommend hey you need to have. A good chunk and safety so that when the market goes down you don't need to pull from it can store and a ball from a depleting asset. Well here retire solution to our thought process is real simple that money you want guaranteed that money that you want consistent for your retirement that you don't when he risk on we need to look at other alternatives other than the stock market. We can get big gains in the market but we don't need to. Put our money at risk in the market to very clear distinction of very big difference and that's what we do here retirement solutions to retrain separate that out have an emergency fund. Have some income that's establishing your keep your open that and then use the market for growth but control in the volatility all the same. If you need access none guaranteed income sources and to cover some of these expenses Allen is very guideline for how much you can safely with strong. You know there's a lot of rules up. Or Megan I have here the 5% rule for years they've lowered that to a 4% role. Now they've even says it's a 3% rules so what do my talk you know all these rules and we've done a few shows unless the key is that if you're gonna put all your money is into equities and the market tends to correct every five to seven years. So some months they were due now. You know dole withdrawal to higher percentage or you're gonna run out of money well the truth is what's the number one fear retirees. Run out of money right why is that the fear while earlier talk to her show about the six point 046 point 03 example of two portfolios that second portfolio. That had an 800000 dollar difference using the 4% rule is exactly the problem if you just put your money into a viable situation or just living and also the market and let's say we benchmark against CS and 4%. In your market has dropped 20% 30% 40%. You still need your 4%. And that wasn't 4% of the current number that was 4% of the before fell number. That can be very problematic is if you're taking money from. NASA let's say it was worth a million dollars or taken 40000 year 4% at now where 600000. You're still taken 40000 plus 4% more so much higher percentage on 600000. Dollar. Plus now that money's out of the account you don't have it in the air to grow to replace so. The number one fear retires is very valid. And a lot of those rules that we talk about. They tend to come from the standpoint of how to keep your money in the market. Rather than how to have a qualified retirement plan that takes away some of that market risk that's what we do here retirement solutions troopers we create plans to around him retirement processed Tiki view. Clear direction to get to two into retirement your numbers your fears your concerns. Who we give you a written plan in this round to retire process and our offer turn next ten dollars 109136859422. Actually no cost or no obligation that you got to calming 9136859. Before 22 that's 913. 68594. Point two. Other than simply investing more money in your retirement portfolio is there a week to actually make your assets last longer Allen will show us some options to do just that next. You are listening to retire right. With the Allen back. I'm the retire. This news network.