Episode Transcript
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Speaker 1 (00:00):
Live from the w g y iHeart Studios. Welcome to
Retirement Ready with your host Dave Kopek from the Retirement
Ready Show. Every week, Dave and his team discussed the
ways they can help people make informed decisions about a
wide array of retirement planning information that can support you
and developing a more certain financial future for you and
(00:21):
your family. Now it's time for Dave Kopec, w g
wi's retirement planning specialist.
Speaker 2 (00:54):
All right, this is Dave Kopeck. Good afternoon. If you're
not up, get up. It's twelve o five, it's nooner, noontime.
This is Retirement Ready. It's a topic specific show and
(01:14):
as we always do, we want to make sure that
you're educated and informed and ready for your retirement. So
glad to be here today. It's a little bit cold,
blistery out there, a little bit of snow on the ground,
but that's okay, that's okay. And before we get in
today's show, want to cent our prayers thoughts to all
(01:39):
of our family members and loved ones and members of
this great society that we live in. In that horrific
situation out in California. A lot of you probably do
not know My brother's a professional actor and has lived
in LA for an extreme period of time, I think
(02:01):
over thirty years now, and you know, they're very scared,
very concerned, not only about the short term but also
the long term. What are they going to have when
this is all said and done. So may God bless
those people out there, and may they have a quick recovery,
and may this insanity stop. I mean, it's really when
(02:23):
you say that it's horrific, it's probably an understatement a
little bit. But if you're not familiar with the show,
I am WG Wise retirement planning specialists, but on the
radio now. This is my twenty fifth year and I've
been in the business for forty three years. We do
a lot of work with hardworking savers. Our mothership who
(02:43):
we custodian all of our assets is Fidelity. We are
part of Fidelity Institutional Wealth Advisors FAIWA open architecture platform.
We have no biases, no predetermination for your assets, and
we are independent, my own registered investment advisor. We act
in a fiduciary capacity and our focus is really on
(03:06):
four specific areas investment management, retirement income distribution, building out
your retirement income distribution, plan, acid protection, and of course
the legacy that you wish to leave your loved ones.
If you're listening outside the five one eight area code,
we have five locations now in New York, Syracuse, Oneona,
(03:28):
Glens Falls, Aubany, Multi Slash Saratoga. If you would like
to have a chat with us, be more than happy
to do it. Simply just dial five one eight, five
eight zero one nine one nine. That's five one eight,
five eight zero one nine one nine, and someone from
my office will basically facilitate the appointment. Whether it's by plane, train,
(03:51):
face to face, automobile, whether you want to swim to us,
I want to swim to you, whether we want to
get on a ring central Zo. But the most important
thing is to get going, to get going, because we're
all quite well aware, is that we live in a
society today where a lot of us are going to
have to basically take the ball and run with it.
(04:11):
It's the monkey is on our back now. We're going
to have to be responsible for our retirement years, for
all the things that are important. And one of the
most important things is that we're going to talk a
little bit about today is how do you find the
right team Yeah. When I say the right team, I
(04:32):
mean team, and I emphasize team because no one this
business today is so complicated. When I started in the
business in nineteen eighty two, it wasn't as complicated as today.
But not only do you have to handle the investments,
you got to handle the insurance protection, you got to
handle the legacy planning, asset protection. You've got to basically
build out portfolios for retirement income distribution. And to say
(04:56):
it's a daunting task is kind of an understatement. So
today is really it is the eleventh of June, June eleventh.
We're gonna blink our eyes and it's going to be
what I say, June I meant to say. Did I
say June zach I met January eleventh? Yeah? Yeah, I
(05:17):
got the wrong jay, all right, I got the jay
in June rather than I'm thinking. What I wanted to
say is that we're gonna blink our eyes that we're
going to be in June and we want to make
sure that we're basically getting our plan in place. So
we're gonna talk a little bit about how do we
do that. You know, it's a new year, it's a
new opportunity it's a new ability for us to basically
(05:37):
grab the bull by the horns and do the things
that need to get done. So we're gonna talk about
how do you conquer this monumental task of retirement planning
and getting ready is only half of the goal. That's
why having the cash cushion, having the tax plan in
(06:00):
place really basically puts you in a much better spot
as far as a successful retirement. Now. Earlier today, when
I did the retirement Planning show, we talked a little
bit about the game plan. Here we are, it's the
eleventh we're going to soon be you know, at the
end of the month. And the thing is is that
(06:21):
when you get into your retirement years, you want to
basically investing during retirement. I can't overemphasize this as not
it's entirely different than it was during your accumulation years
when you're working. When you're in retirement, your time horizon
is extremely different. You do not have a paycheck for
(06:44):
most of us, ninety percent of us are going to
have to what create a paycheck, and you want to
make sure that you're not selling assets or depleting assets
to to create the cash that you need in order
to facill it. Take your monthly, weekly, annual income. And
(07:06):
there's also a few things to account for which were
extremely important and they will always be important for a
lot of us. Our Social Security payments, how we select them,
required minimum distributions, and then of course medicare premiums for
(07:26):
people that are sixty five and older. And if you're
fortunate enough to have enough money in the box, how
you're going to deal with long term care? Because right
now that's the biggest achilles heel that we see for
a lot of our clients that have been in retirement
for an extended period of time. So when we talk
(07:46):
about our behaviors, what's our behaviors when we stop receiving
a check and now we have to develop develop a
check and how do we do that and what's the
best way to do it? Now? The thing that I'm
always flabbergasted by is the amount of information out there
(08:11):
that is inconsistent. And what I would basically say is
it has a bias or an agenda to it. Now,
before we came on the air, we had a gentleman
that called in. I wanted to talk about a five
percent guarantee. The five percent guarantee on his portfolio. He's
(08:32):
receiving it right now for the next five years. And
I said I would address it. And I said I
would address it on the air at the very beginning
of the show, even though it's a little bit off
a track and a little bit off the beaten path
or what I wanted to discuss today. But let me
just tell you about fact not fiction. We currently have
(08:56):
five percent guaranteed. And this gentleman that called in, okay,
he actually called me because he has my cell phone.
He wanted to know what are the disadvantages or the
advantages having five percent guaranteed for the next five years.
And I said to him, I don't think there's any
disadvantage unless unless you feel like interest rates are going
(09:21):
to go much higher over the next five years, or
that five percent is not adequate enough in order to
facilitate what you're looking for as far as cash flow
off your portfolio. So little historical data, Okay, what has
been the net return on modern portfolios over the last
(09:46):
ten years? How much money can I receive on a
monthly basis based off of historical data? And I say
ten years, because that's a pretty good number, right, ten
years on a historical basis on an investment. How many
years can I go and get what? What's my question mark?
(10:11):
So what has been the average return on a portfolio? Well,
according to recent data over the last ten years, then
that return on a bond portfolio has been about two
and a half percent total return two point five percent
(10:31):
over the last ten years. That's what you've made in
a bond portfolio. So I've got a million dollars, You
got about twenty five thousand dollars a year that you
can take off the portfolio. What did I just say
at the beginning? I said, at the beginning, we can
now give you five percent guarantee, right, five percent guarantee
compared to you know, twenty five thousand dollars versus fifty
(10:55):
thousand dollars. That's one hundred percent more that's in your pocket.
So what's the disadvantage. Well, the disadvantage is that you're
locking the money up just like a CD. This is
what we call an MYGA, a multi year guaranteed annuity
just like a CD. Guarantees principle and interest, guarantees that
(11:16):
the money's going to show up at your doorstep every month,
Guarantees that at the end of the term. That guarantee
the money's going to be there and you can decide
what you want to do with it. After five years,
you can get ten percent off the portfolio nine to
one one if you need to take more without any penalty,
which you can't do with a CD. And by the way,
(11:38):
this investment, the multi year guaranteed annuity, the five percent
guaranteed for five years, is all back by five one
hundred thousand dollars of protection through the New York State
Insurance Fund where SIMP it gives you what two hundred
and fifty thousand, So you got to double on both sides.
You've got to double on both sides. Yeah, instead of
(12:02):
having two hundred and fifty thousand dollars of protection, you
got five hundred thousand, and based off of historical data
information right net returns been two and a half percent.
We're going to lock you in for five Now. Should
you put all your money into any one particular investment,
Absolutely positively not. If you're doing that, you're foolish. Diversification
(12:25):
is your friend. We like to build out laddered bond
portfolios with corporate CDs, treasuries. We add in a little
bit of this what we just talked about. As far
as the multi year guaranteed annuities. Oh yeah, and oh,
by the way, we all add some alternative investments what
we call yield enhanswers to the portfolio. And right now
our portfolios are generating somewhere between six and a half
(12:48):
and seven percent for our clients as far as cash
flow off of the portfolio on the fixed income side,
on the fixed income side, So don't be bamboozled out there.
Don't be bamboozled. Don't listen to these people that really
(13:09):
have no idea what the hell they're talking about in
regards to the guarantees that are associated with annuities, because
they have an investment bias. An investment bias. An investment
bias means that they don't like it because they probably
can't get paid on it. They don't like it because
(13:29):
they're probably you know, it's not in their wheelhouse. They
don't like it because they think they're better and they
can do things better. And the end result is for
a lot of you you want safety and guarantees. Well,
right now today, as of the closed business on Friday,
I don't know what's going to happen on Monday, But
we can get you five percent guaranteed for five years
(13:50):
and not say to myself and my clients and everybody
else that's listening, that's a pretty damn good rate to
return on a historical basis, five for five guaranteed. Take it,
dive it in. At the end of the term, you
decide what you want to do. Keep the money there,
roll it. If a certain interest rates are up, interest
rates are down, who knows, nobody's got a crystal ball,
(14:13):
then you decide. But it's a great way to walk
into retirement. Second thing, red zone planning. Hey Dave, I
got X number of dollars I want to retire in
the next five years, okay, or you're in the red zone.
Make a lot of sense. You want to basically walk
into retirement. You got to decide what you're going to do, right, Well,
(14:35):
what you ought to do is basically build out your
bucket of a money approach. And what you want to
do is that you want to be in a position
that you know what's going to be in bucket one,
what we call the cash bucket, the conservative bucket. Bucket one,
bucket two, bucket three. That's basically how we set up
our portfolios. We have a short term, an intermediate term,
(14:57):
and a long term bucket approach. But all three of
those buckets have what we have strong dividends, and we
also have the ability in order to turn the valve
off when we have enough. In bucket one. So if
I've got a five year plan, I have five percent.
I got a million dollars, Bucket one is gonna load up.
(15:20):
I'm gonna have fifty thousand dollars a year for the
next five years. When I walk into retirement, my corpus
is protected, the original investment is protected, right, and then
I also have two hundred and fifty thousand dollars guaranteed
in bucket one, so I can go into the sunset
and the yellow brick rotor retirement and I can basically
(15:41):
have safety guarantees and protection and guaranteed income, which seven
out of ten of you want, seventy percent of you want.
So that's the facts, no fiction. What that is is
that it's a hard number. It's a number that we like.
Anytime you can get a five handle on a guarantee,
(16:03):
I think you should definitely take a look at it.
If you're looking for safety and guarantees, then you need
to pick up your telephone and give us a call.
Because the Retirement Planning Group, this is what we do.
We build out retirement income distribution strategies. I'm gonna take
my first break. I know that Zach is extremely happy
that I'm taking my first break, aren't you? Zach say
I've good, Zach say yes. Break for me, baby, break baby,
(16:28):
I want some break dance and music. When we come back,
I'll be right back the eighty six percenters. Do you
know that eighty six percent of the population has no
defined benefit pension plan. For most of us, we have
to take our life savings and create a paycheck for
the rest of our lives in retirement. What is your
plan for retirement income distribution? How you manage your assets
during the most critical years of your lifetime. Nobel Prize
(16:49):
winning economist William Sharp has called retirement income distribution the nastiest,
hardest problem in finance. He points out that investment, uncertainty
and mortality can derail the most careful laid out retirement
income plan. Call our offices today to start the process
of building a retirement income distribution plan. After forty one
years of being in the financial services business, you need
(17:11):
to start taking action to start building your own personal
retirement income distribution plan. How do you do that? To
take action? Five one eight, five eight zero one nine nine.
That's five one eight, five eight zero, one nine one
nine or RPG retire on the web. Don't procrastinate, motivate
to start building your retirement income distribution plan five win
(17:32):
eight five eight zero one nine one nine. The greatest
risk in retirement most of us have no plan for
or insurance to cover the expense A long term care
event can impoverish a spouse, drain your life savings and
cost stress and anxiety on your family. What is your
plan and how will you pay for a long term
care event? Call a retirement planning group today. Discuss options
you should consider to protect your estate and have choices
(17:55):
and independence. Take action call today five one eight, five
eight or one nine one nine or RPG retire on
the web. All right, we are back. Glad to be here.
(18:43):
It is Saturday. Hopefully you're enjoying the day. Be careful,
a little bit slippery out there, a little bit of snow.
You don't want to slip and fall. Believe me, we
had a wonderful clients with clients for ours for about
twenty five years. She fell. This past week, Mary Alice
go to Bless You, We Love You. You know, she
listens to the show every week and she broke a
(19:06):
couple of ribs, and that is very painful. If you
never had a broken rib, folks, you don't want one.
You don't want one. Today we're talking about it. It's a
new year. We're talking fact versus fiction. We're talking about
cash flow and how you handle cash flow during your
(19:26):
retirement years. You know, I always like the pinocchios that
talk about things that they really don't understand, and I
also like just kind of set aside what's fact and
what's fiction. You know, there's really kind of four types
of guaranteed rates out there, right. You got corporate bonds
(19:48):
corporations at issue from a private company. You got treasuries
right notes that are issued by the US government. You
got municipal bonds, which are notes that are issued by
local governments. Then the fourth component is the one that
most of us, most of us deal with, and those
are guaranteed rates that are issued by banks, credit unions,
(20:18):
or insurance companies, which you call an annuity, which is
either a multi year guaranteed annuity. They used to call
them single premium defer to annuities. But the key to
all of this is one thing. There's a coupon, there's
a guaranteed rate, and which one is the safest of
the bunch, Which one gives you the sleep at night
where the other ones might not necessarily give you. Corporate bonds, right,
(20:43):
they're only as good as the company that is issuing
the bonds. Treasuries pretty safe issued by the US government. Right,
you don't think the government's going to go broke. Maybe
they will go brooke the way they spend money down there.
And municipal bonds, right, municipal bonds are only as good
as the municipality that's issuing the bonds and the revenue
(21:04):
that's being generated. And then of course you've got CDs,
which are backed by the CIPICK for two hundred and
fifty thousand dollars. Then you've got myga's multi year guaranteed
annuities that are guaranteed in New York this is specific
to New York to five hundred thousand dollars backed by
the New York State Insurance Fund that guarantees principle and
(21:27):
interest so what's the negative? So what's the negative? Why
do you hear, you know, the screaming monkey say, you know,
I don't like them because they're an annuity. I don't
like them because they're issued by an insurance company. Well,
I don't think there is a negative. And I've been
doing it a long time, and I know of all
the years that I've been dealing with these types of investments.
(21:49):
There was one situation in the eighties where Executive Life
got into trouble with the yields that they were basically
giving investors, and New York State Insurance Fund took them over.
MetLife took over the company. Instead of getting like fifteen
sixteen percent a year, they ended up getting twelve percent.
Nobody lost the penny. Everybody got the money that they
(22:10):
were due. So here's the real deal. I know the
corporate bonds, they have risks, there's defaults. I know the treasuries, right.
The problem with treasure is you buy them at a discount.
You can't get the income, right, you can get the
income once the bond matures. Then of course you've got
tax remunicipal bonds. Most of you are in a situation
(22:33):
where they're probably not warranted because of the yield on
the tax remunicipal bonds versus your tax bracket and the
state that you live in. And then you got to
really make a selection. What do I want for guarantees?
If you want guarantees, and seven out of ten of
you said that you want guarantees, what's the chassis and
what's the one that you want to go with. So
(22:55):
here's your selection. Selection one is a senior at a bank.
If you move it early, they're going to penalize you. Right,
you're going to get the interests and the interest is
going to be taxable as far as ordinary income. No
matter what happens, you're going to get taxes ordinary income. Okay,
there's no tax preference. Now let's go to the other
(23:17):
side of the balance sheet. Here we've got multi year
guaranteed anudies that guarantee principle and interest. Here's the advantage.
You don't use the income, you don't pay tax on
it because it grows on a tax deferred basis, so
you can utilize them in iras, outside of iras and
non qualified assets, and that means that the money grows
(23:38):
tax deferred, zero tax consequence, so you control your destiny.
I like that right. So there's one check on the
right hand side that I think is pretty advantageous, meaning
that my money will compound without any ten ninety nine
at the end of the year. Okay, option too. Can
I take it as income? Yeah, of course you can
take the CDA's income. Can the multi year guaranteed annuity?
(24:00):
Can you take it as income? Yep, you can take
it as income. The interest comes off and you can
get an additional ten percent. For a lot of the contracts,
not all of them, of some of them you get
additional ten percent. So if you put in one hundred
thousand and you get in five percent, that's five thousand.
You get a nine to one one. You can take
on an extra ten thousand dollars without any penalty at
(24:21):
all at the end of the fifth year. Five years,
these coming three and five, seven and tens, just like CDs.
But at the end of your term, then you got
the decision do I keep it where it is or
do I move it somewhere else? Just like a CD.
Do I keep it at the bank, do they write
me a check? And then I move on to where
I can get a higher ratear return. It's no different
(24:45):
same thing. So here's the real catch. I got two
hundred and fifty thousand dollars on SIPIK and I got
five hundred thousand dollars through New York State Insurance FUNE.
So as I said at the beginning, I got twice
as much. On a historical basis, the bond portfolio has
done about two and a half percent in the last
(25:05):
ten years total return. I'm getting five percent. My corpus
stays principal intact. Don't have to worry about one hundred
thousand dollars going away. And oh, by the way, I
get five thousand dollars to either accumulate or take it
as income. That's the facts, no sizzle, no biases, No
(25:27):
my personal feeling is this. I don't care what your
personal feeling is, right, All I care about is what's
the most competitive rate of return I can get with
the most amount of safety. And I'll tell you what.
If you're looking for that, you should probably give us
a buzz because we've done millions and millions of dollars
in these in the last few months. And the reason
is because it's straight forward, no questions, guarantees, guarantee payment.
(25:53):
So we're going to be back. I have to take
a break. Boy, that was a quick half hour. I'm
Dave Kopek. This is the Retirement Ready show.
Speaker 3 (26:18):
That's the way, that's the way, that's the way. Where
do you take me? Tell me where you get me?
Speaker 2 (26:48):
And do it all right? We are back. Oh that's
the way. Like it, like exactly, like it, like it,
like it, like it. Get those feet moving, get the
blood flowing, get outside, it's fresh air. I'm Dave Kopik.
This is retirement Ready. We're talking about the beginning of
(27:12):
the new year. We're talking about how to get going
to conquer the retirement that you desire. As we talk
about getting to retirement is only half the goal. The
rest of it is making sure that you dot your eyes,
(27:35):
cross your t's and understanding exactly the apple that you've
picked off the tree. So when we talk about retirement
time horizon for a lot of us is going to
be different. Some of us want to retire at sixty two,
sixty five, FRA, sixty seven, sixty eight, seventy, whatever it
(28:01):
may be. Social security selection for a lot of you
will be different. Medicare the premiums, the type of policy
that you get, and then oh, by the way, long
term care. But our investment behaviors can change too when
you're not receiving a check, and you may develop that
(28:26):
little disease called loss adversion or what we call the
fear of losing money in the investment markets during your
retirement years. And that's okay, that's okay because there's ways
to structure your portfolio that you can have safety and
guarantees and still have participation in the stock market. Okay.
(28:52):
Everybody's gonna basically attack the retirement a little bit differently
than the others. But what's going to be different is
that you're going to look at things a little bit
differently than when you were working. And there's four things
that I want to focus in on this half hour,
four that I think are critical. And as I enter
(29:16):
two thy and twenty five as the president of the
Retirement Planning Group and wgui's retirement planning specialists, I'm going
to give you the secret sauce. Okay, So you can
pull over and take your pencil out your car. You
can go grab another cup of coffee. If you're home,
(29:39):
you can go get the spouse and say, hey, listen,
he's given out the secret sauce the recipe. You know
a lot of you women don't like to give out
your secret recipes, but I'm going to give out the
secret recipe today. Number one, I personally find that my
(29:59):
retired clients retirement plan, I say, mine the retirement planning group.
Clients sleep a hell of a lot better at night
when they have safety and guarantees in cash on the
sidelines with a good chunk of their money when the
(30:20):
stock market craters like it did in twenty twenty two. Remember,
cash on hand was a panacea. It was a welcome relief.
So generally, when I say cash can be king short
(30:43):
term T bills, savings account, money market accounts, blah blah blah.
Each liquid asset that's conservative right, serves a purpose on
the bucket one approach, we usually recommend somewhere between one
(31:04):
and a half to two years of living expenses in
liquid assets. That's high yielding money market accounts, that's cash
equivalents money market accounts. They've given us great yields over
the last couple of years. So even sitting in cash,
it was basically an asset class that we felt comfortable with.
But bottom line gets down to is that cash is king,
(31:27):
especially when you walk into your retirement years. Now, hold
on tight for those that you have undersaved, those that
have a nice nest egg, maybe not as large as
(31:51):
you would like. There are things that you can do
with that home equity in order to basically put another
tool in the toolbox. It's like a line of credit
and it's called the reverse mortgage. Now, people say, Dave,
you know, why are you talking about this, Because I've
(32:13):
had clients where it's made a huge difference in their lives.
We get no compensation, there's no money in this for us.
But I'm a major advocate of it. And if you
do it early, guess what, The money grows, even though
you're not tapping into it. It grows and money becomes
larger because of the compounding. It's a handy fix for
(32:37):
what unexpected expenses. It's like a line of credit that
you can use over your lifetime and it's all tax
free and you can basically tap into it at any
time as long as you're over the age of sixty.
Big So you remember when you were a kid, you
had that little piggy bank. I call it the piggy bank.
(32:58):
The piggy bank. If you've undersaved and you need to
have some creature comforts or some things that you want
to do in your lifetime. Nothing wrong with it, You
just need to educate yourself on it. Is it suitable
for everybody? Absolutely positively not? Is it suitable for some people? Absolutely? Yes. Taxes?
(33:25):
Where are you going to be, where are you going
to live, what's your zip code? What's the tax liability
where you are? How important it is for you to
basically have a strategy so your tax situation is not
eating away at your budget. We all know what's happened
(33:47):
here in New York with our taxes not fun. I
run and hide. I run and hide in September and
January when we get all the tax bills. School tax
is in September, property taxes in January. Right, So you
(34:09):
take all your dividends and interests and all your income
and social security and pension benefits and what we've created
as far as and you try to figure out is
there going to be enough in the pot in order
for me to pay my property taxes, my school taxes,
sales taxes, whatever it may be. And as I go
(34:30):
down the road, is there going to be a problem
for me to maintain my quality of life under this
current situation that I'm in. Problem with most of us
is our retirement assets is basically allocated into you know,
maybe two or three different types of investments four one
(34:53):
K four H three b TSPs New York State deferred compensation.
These are moneies that are always pre tax, always at
tax liability, moneys that will always be difficult, always be
difficult in our lifetime. And then you have to figure
out if it makes sense for you to continue down
(35:14):
the path to allow that money to keep on growing
and keep on growing until that magical age is seventy
three when you start getting required minimum distributions and the
distributions get larger, they don't get less, and when you
least want the money to become the greatest And then
you're sitting there eating your mapo, sitting in the nursing home,
and you got to check that's coming for fifty sixty
(35:35):
seventy thousand dollars, which is not going to go to you.
It's going to go to the nursing home. So our
whole thing with minimizing taxes and maximizing the yield to
you is to do it sooner in retirement rather than
later in retirement because guess what, most of you are
going to live a hell of a lot longer than
what you anticipated, and you're going to be sitting there
(35:58):
in this situation getting distributions when you at least want them.
Had a client not that long ago. I went down
to her home, heard her husband wonderful people, salt of
the earth. So we got to talk to you, Dave.
(36:22):
He s, all right, up now on. We don't want
you to come up to the office. We don't we
don't want to go up to the office. Want you
to come down here. I said, Okay, ill come down.
So I got in the car, I took a ride
down to their house and there I am. I'm sitting,
I'm sitting, I'm sitting. We're talking, we're talking, we're talking.
I can tell you that they feel uncomfortable, comfortable, uncomfortable.
They can't let the cat out of the bag, and
(36:44):
they go we got a problem, I said, really, what's
the problem. It's kind of unique. But we got too
much cash. What do you mean you got too much cash? Well,
we got too much cash and we're trying to figure
out what to do with it. Said, well, there's a
(37:08):
lot of things you can buy and do and she goes, no,
I don't mean it like that. We're receiving a lot
of cash. We take the cash and we've been filling
up our safe. He said, okay, and what's the problem.
She goes, well, we can't fit any more cash in
the safe. They said okay, And I said, we'll buy
a second safe if that's where you feel comfortable putting
(37:29):
the cash, because ultimately they want some cash in the safe.
So when they pass away, the kids got cash. And
she said to me, well, how big of a safe
can we get because there was other assets that they
wanted to put into the safe also. So the thing is,
(37:51):
is that really where you want to be when you're
later in life? And he got these large distributions of
a qualified plans iras four O one case and they're
coming and you're going to the bank or whatever. You're
cashing it out, or you're taking cash on a monthly basis,
whatever it is, and now you got this large stack
(38:11):
of money sitting inside your house. There's a different way
for everybody to do certain things, and there's a mix.
You know. What we always say is that everybody has
a different way in order to allocate their money and
also build out their wealth management strategy. But the thing
that doesn't change is r MD required minimum distribution. It's
(38:36):
going to happen to all of us. It's just a
question do you get proactive in your retirement what we
call the three years or there the three seasons of retirement.
Go go slogo, no go, go gos when you want
to cash slog Maybe a little bit of cash, no go,
(38:58):
you don't want to cash. So the proper allocation of
your investments on the front end and the distribution, the
speed of the distributions makes all the sense in the world.
All right, I'm going to take a break. I'm going
to come back and finish up my last segment. This
is Dave Kopek. This is Retirement Ready today. We're talking
about getting ready for twenty twenty five. Do you have
(39:20):
a plan for your retirement. If you don't, We've got
five locations now in New York, Syracuse is our new
office Oneanna Aubany, Glens Falls, Saratoga. We would love to
be able to sit down with you, have a chat,
see if we can be of assistance to you. If
we can, it's pretty simple. Just called Jim or someone
(39:41):
in my office at five one eight, five eight, zero,
one nine, one nine, say hey, listen, listen to Dave
like I always say, plane, train, boat, whatever it is, ring, central, zoom,
however you want to meet is fine by us. But
the thing is is that it's a new year. It's
a new opportunity for you to basically put the pieces
of the puzzle together. We'll be right back, your partner
(40:03):
for success. David kopikair WG WISE retirement planning specialists, the
Retirement Planning Group. We understand that retirees face many important
decisions that can affect their long term financial success. Some
of these decisions revolve around making investments that will help
create a hedge against outliving their assets, the impact of inflation, taxation,
(40:26):
and rising health care costs. Most of our clients lack
the time, the desire, or the experience to manage their
own investment portfolios. We consider it to be an honor
and a privilege to help our clients make sound investment
decisions though contribute to a secure financial future for them.
Because over ninety percent of our clients or retirees with
(40:47):
similar concerns, we are in the best position to approach
such challenges with experience and skill. Give us a call
today at five one eight, five eight zero one nine
one nine five one eight five eight zero one nine
one nine or RPG retire on the web. Will you
run out of money in retirement where your investments provide
income for possibly decades? How do you navigate the two
(41:08):
greatest risk in retirement sequence of returns in longevity? At
the Retirement Planning Group, our Bucket of Money approach addresses
these concerns and we offer a complementary consultation to discuss
this with you. Call our office today for a free
complimentary consultation to develop your own personal retirement income distribution
plan at five eight five eight zero one nine nine.
(41:30):
That's five eight five eight zero one nine nine.
Speaker 4 (41:48):
Baby with the loms. I can see you watching and
the nine hellollo me. We're waiting fall the sun all right,
(42:12):
we are back when I feel cold.
Speaker 2 (42:16):
I'm Dave Kopek, your host wg wi's Retirement Planning Specialists,
celebrating my twenty fifth year on radio, which is hard
to believe, forty third year in business. So anything that
I'm discussing, it's from the heart, it's from my experience
and hopefully you'll heed it or at least listen to
(42:37):
what my position is. It doesn't mean that it's right
for everybody absolutely one hundred percent, But I know in
my heart that by doing this for as many years
as I have, that I think I have a pretty
good idea of the proper allocation, the mix, how to
structure your overall retirement wealth management. So let's talk about
(43:01):
asset allocation, because that's the one that we spend a
lot of time on initially with people because they get
out of whack as far as their mix of stocks, bonds,
alternative investments, commodities, real estate, which we all know is
what portfolio asset allocation that mix along with your RTQ,
(43:27):
meaning how we basically have to manage your money based
off of what you've filled out your adverse ability to
handle risk in your portfolio? Where is it, what's the gauge,
and what's our responsibility to you as far as building
out your portfolio. Now, as we're all quite well aware,
(43:50):
no one sector or asset class is the clear winner
every year, and as we're quite well aware, some years,
sitting in cash cash is king, Like in twenty twenty two,
it's better than sitting in bonds. Or stocks was ugly.
(44:13):
It was ugly. But the proper mix of your investment
depends on a lot of factors. Big one and most
important one is your stomach. How much risk can you
stomach and much risk that you have in your current portfolio?
(44:38):
Should you allocate based off of your stomach? Well, that
sounds kind of weird, Dave. What do you mean by that? Well,
you don't want to be in a position where you
can't sleep at night and you got ulcers because you're
going through gyrations with your portfolios. So this is what
(44:58):
I would say to you a retiree today who's afraid
of losing money, because you can lose money immediately. People
that got into the market in January, they're looking at
their portfolio right now they're saying, I'm down. You know,
(45:19):
you're down. Stocks and bonds have not done well at
the beginning of twenty twenty five. So if you're afraid
of losing money as far as your actual value of
your portfolio, you only lose money when you cash out
and go to the sidelines. Is really someone who doesn't
(45:42):
have enough guaranteed money understand that if your stomach is
telling you I don't like this there's got to be
another solution for me in order to sleep at night
and not worry about am I going to have an money?
There is? There is? I just said, you give five
(46:04):
percent now guaranteed for five years. Is that enough? I
don't know. You know what happens five percent four or
five years ago? You have them standing on line from
here to New York City. But now five percent, I
don't know. Maybe I'm looking for eight or ten. It's
like the guys or gals that call me clients of mine.
(46:27):
Don't you think I should have more? You know, my
money allocated to stock because the stock market is doing
so well. No, no, I don't. So the thing is
is that as you go into retirement and you build
out whatever type of a pension or retirement income distribution
(46:48):
plan with your Social Security because you don't have a pension, right,
you got to say to yourself, I need this money
for how long? What's my foreseeable future? How long do
I think that I'm going to need to manage these
assets or have the assistance of the retirement planning group?
Five years, ten years, twenty thirty, forty, who knows. But
(47:13):
the problem is a lot of people walk into it
and they say, Okay, here's my cash, mister wonderful or
missus wonderful. And I know that you've got this great
track record and everything is rosy and happy, go lucky,
and I know that you've got stellar performance, stellar performance. Right, Well,
(47:38):
what happens when there's underperformance? That's what you got to
ask yourself. What happens when there's underperformance and the market
treats you ugly? And now you're down fifteen, eighteen, twenty
twenty five percent based off of that selection. As far
as the asset classes that you're involved in, that's fun.
(48:03):
It's not fun for the advisor either, and it's not
fun for the client. Now, I know that there's some
things in my last bullet point here that we can't
as advisors deal with. You're going to have to deal
with it, and that's emotions. Emotions, your emotions. See at
(48:31):
the retirement planning group. I don't want to have any biases.
I don't want to have any past experiences that I
think are not suitable for you as a client during
your pre and post retirement years. And the one that
we talk about all the time is retirees past experience
(48:55):
with loss aversion the feeling of winning is not as
strong is that of losing. Right, In other words, you
feel your loss is more than your gains. We don't
hear from a lot of clients when things are good,
dancing in the street and you know you're up to three,
(49:16):
four five percent in one month. But loss aversion can
cause an investor to what, pick up the telephone. You know,
what's going on? What is going on? This is the
stock market. There's nothing going on. The stock market has
ten percent down drafts consistently on an annual basis, maybe more.
(49:43):
The key is to be aware of those emotions and
not let them control your decision making. The key is
to be aware of those emotions and do not let
them make your decision making. For instance, that a retiree
has a high degree of loss aversion and then when
things are starting to get ugly, they call up and say,
give me a cash, give me a cash, Like, there's
(50:06):
six and a half trillion dollars right now sitting in cash.
That's loss adversion. And what did they do well last year?
They missed out on a major run in the market.
So here's here's my secret, sauce. Okay, you wanted the
secret sauce. Excuse me, I apologize, we got a little
cold here. Retiring concerned about losses should have more and
(50:27):
guaranteed investments, guaranteed sources of income in cash okay, simple
as that there are no sorts of investment biases that
we can't facilitate a correction to okay. In other words,
you may be your own worst enemy. And that means
(50:50):
that you basically you're allocated into an investment program that
your bellie can't take. And then you have an investment
advisor that tells you that certain investments are bad and
they're horrible, and this and that and all this, and
they're dancing in the street because they're charging you one
percent a year no matter what the value your portfolio is. Right,
(51:13):
that's the facts. They're winning, whether you're down or up,
that's the facts. So my final thoughts for today this
If you're getting to retirement, I can tell you right
now it's a monumental task. Many things have to go right,
many things have to go right. You need to get
(51:35):
ahead of it. I say four to five years at least.
But the bottom line gets down to if you're in
a situation where you're contemplating retirement and you want some
help and assistance. That's what we do with the Retirement
Planning Group. We tell you facts, not fiction. We have
open architecture, We do not have biases in the bottom line.
(51:58):
We would love to have the opportunit unity to sit
down with you and I'll let you know a little
bit about our platform and what we can do. God
bless and I'll see you next.
Speaker 1 (52:07):
Thank you for listening to Retirement Ready hosted Buying Dave Kopek,
w G wise Retirement Planning Specialist. If you'd like to
talk with Dave or someone of the Retirement Planning Group,
call five one eight five paid zero nine nine. That's
five twenty five eight zero one nine one nine during
business hours, or visit RPG retire dot com. The Retirement
(52:29):
Planning Group has five convenient offices located in Albany, Malta,
Glens Falls, Syracuse.
Speaker 2 (52:36):
And Oneana.
Speaker 1 (52:37):
Tune in again next week for retirement planning strategies with
Dave Kopek right here on WG wise Retirement Ready. The
information or services discussed on this show is for informational
purposes only and is not intended to be personal financial advice.
The investments and services offered by US may not be
suitable for all investors. If you have any doubts as
to the merits of an investment, you should seek advice
(52:59):
from an independent NACIAL advisor.
Live from the w g y iHeart Studios. Welcome to
Retirement Ready with your host Dave Kopek from the Retirement
Ready Show. Every week, Dave and his team discussed the
ways they can help people make informed decisions about a
wide array of retirement planning information that can support you
and developing a more certain financial future for you and
(00:21):
your family. Now it's time for Dave Kopec, w g
wi's retirement planning specialist.
Speaker 2 (00:54):
All right, this is Dave Kopeck. Good afternoon. If you're
not up, get up. It's twelve o five, it's nooner, noontime.
This is Retirement Ready. It's a topic specific show and
(01:14):
as we always do, we want to make sure that
you're educated and informed and ready for your retirement. So
glad to be here today. It's a little bit cold,
blistery out there, a little bit of snow on the ground,
but that's okay, that's okay. And before we get in
today's show, want to cent our prayers thoughts to all
(01:39):
of our family members and loved ones and members of
this great society that we live in. In that horrific
situation out in California. A lot of you probably do
not know My brother's a professional actor and has lived
in LA for an extreme period of time, I think
(02:01):
over thirty years now, and you know, they're very scared,
very concerned, not only about the short term but also
the long term. What are they going to have when
this is all said and done. So may God bless
those people out there, and may they have a quick recovery,
and may this insanity stop. I mean, it's really when
(02:23):
you say that it's horrific, it's probably an understatement a
little bit. But if you're not familiar with the show,
I am WG Wise retirement planning specialists, but on the
radio now. This is my twenty fifth year and I've
been in the business for forty three years. We do
a lot of work with hardworking savers. Our mothership who
(02:43):
we custodian all of our assets is Fidelity. We are
part of Fidelity Institutional Wealth Advisors FAIWA open architecture platform.
We have no biases, no predetermination for your assets, and
we are independent, my own registered investment advisor. We act
in a fiduciary capacity and our focus is really on
(03:06):
four specific areas investment management, retirement income distribution, building out
your retirement income distribution, plan, acid protection, and of course
the legacy that you wish to leave your loved ones.
If you're listening outside the five one eight area code,
we have five locations now in New York, Syracuse, Oneona,
(03:28):
Glens Falls, Aubany, Multi Slash Saratoga. If you would like
to have a chat with us, be more than happy
to do it. Simply just dial five one eight, five
eight zero one nine one nine. That's five one eight,
five eight zero one nine one nine, and someone from
my office will basically facilitate the appointment. Whether it's by plane, train,
(03:51):
face to face, automobile, whether you want to swim to us,
I want to swim to you, whether we want to
get on a ring central Zo. But the most important
thing is to get going, to get going, because we're
all quite well aware, is that we live in a
society today where a lot of us are going to
have to basically take the ball and run with it.
(04:11):
It's the monkey is on our back now. We're going
to have to be responsible for our retirement years, for
all the things that are important. And one of the
most important things is that we're going to talk a
little bit about today is how do you find the
right team Yeah. When I say the right team, I
(04:32):
mean team, and I emphasize team because no one this
business today is so complicated. When I started in the
business in nineteen eighty two, it wasn't as complicated as today.
But not only do you have to handle the investments,
you got to handle the insurance protection, you got to
handle the legacy planning, asset protection. You've got to basically
build out portfolios for retirement income distribution. And to say
(04:56):
it's a daunting task is kind of an understatement. So
today is really it is the eleventh of June, June eleventh.
We're gonna blink our eyes and it's going to be
what I say, June I meant to say. Did I
say June zach I met January eleventh? Yeah? Yeah, I
(05:17):
got the wrong jay, all right, I got the jay
in June rather than I'm thinking. What I wanted to
say is that we're gonna blink our eyes that we're
going to be in June and we want to make
sure that we're basically getting our plan in place. So
we're gonna talk a little bit about how do we
do that. You know, it's a new year, it's a
new opportunity it's a new ability for us to basically
(05:37):
grab the bull by the horns and do the things
that need to get done. So we're gonna talk about
how do you conquer this monumental task of retirement planning
and getting ready is only half of the goal. That's
why having the cash cushion, having the tax plan in
(06:00):
place really basically puts you in a much better spot
as far as a successful retirement. Now. Earlier today, when
I did the retirement Planning show, we talked a little
bit about the game plan. Here we are, it's the
eleventh we're going to soon be you know, at the
end of the month. And the thing is is that
(06:21):
when you get into your retirement years, you want to
basically investing during retirement. I can't overemphasize this as not
it's entirely different than it was during your accumulation years
when you're working. When you're in retirement, your time horizon
is extremely different. You do not have a paycheck for
(06:44):
most of us, ninety percent of us are going to
have to what create a paycheck, and you want to
make sure that you're not selling assets or depleting assets
to to create the cash that you need in order
to facill it. Take your monthly, weekly, annual income. And
(07:06):
there's also a few things to account for which were
extremely important and they will always be important for a
lot of us. Our Social Security payments, how we select them,
required minimum distributions, and then of course medicare premiums for
(07:26):
people that are sixty five and older. And if you're
fortunate enough to have enough money in the box, how
you're going to deal with long term care? Because right
now that's the biggest achilles heel that we see for
a lot of our clients that have been in retirement
for an extended period of time. So when we talk
(07:46):
about our behaviors, what's our behaviors when we stop receiving
a check and now we have to develop develop a
check and how do we do that and what's the
best way to do it? Now? The thing that I'm
always flabbergasted by is the amount of information out there
(08:11):
that is inconsistent. And what I would basically say is
it has a bias or an agenda to it. Now,
before we came on the air, we had a gentleman
that called in. I wanted to talk about a five
percent guarantee. The five percent guarantee on his portfolio. He's
(08:32):
receiving it right now for the next five years. And
I said I would address it. And I said I
would address it on the air at the very beginning
of the show, even though it's a little bit off
a track and a little bit off the beaten path
or what I wanted to discuss today. But let me
just tell you about fact not fiction. We currently have
(08:56):
five percent guaranteed. And this gentleman that called in, okay,
he actually called me because he has my cell phone.
He wanted to know what are the disadvantages or the
advantages having five percent guaranteed for the next five years.
And I said to him, I don't think there's any
disadvantage unless unless you feel like interest rates are going
(09:21):
to go much higher over the next five years, or
that five percent is not adequate enough in order to
facilitate what you're looking for as far as cash flow
off your portfolio. So little historical data, Okay, what has
been the net return on modern portfolios over the last
(09:46):
ten years? How much money can I receive on a
monthly basis based off of historical data? And I say
ten years, because that's a pretty good number, right, ten
years on a historical basis on an investment. How many
years can I go and get what? What's my question mark?
(10:11):
So what has been the average return on a portfolio? Well,
according to recent data over the last ten years, then
that return on a bond portfolio has been about two
and a half percent total return two point five percent
(10:31):
over the last ten years. That's what you've made in
a bond portfolio. So I've got a million dollars, You
got about twenty five thousand dollars a year that you
can take off the portfolio. What did I just say
at the beginning? I said, at the beginning, we can
now give you five percent guarantee, right, five percent guarantee
compared to you know, twenty five thousand dollars versus fifty
(10:55):
thousand dollars. That's one hundred percent more that's in your pocket.
So what's the disadvantage. Well, the disadvantage is that you're
locking the money up just like a CD. This is
what we call an MYGA, a multi year guaranteed annuity
just like a CD. Guarantees principle and interest, guarantees that
(11:16):
the money's going to show up at your doorstep every month,
Guarantees that at the end of the term. That guarantee
the money's going to be there and you can decide
what you want to do with it. After five years,
you can get ten percent off the portfolio nine to
one one if you need to take more without any penalty,
which you can't do with a CD. And by the way,
(11:38):
this investment, the multi year guaranteed annuity, the five percent
guaranteed for five years, is all back by five one
hundred thousand dollars of protection through the New York State
Insurance Fund where SIMP it gives you what two hundred
and fifty thousand, So you got to double on both sides.
You've got to double on both sides. Yeah, instead of
(12:02):
having two hundred and fifty thousand dollars of protection, you
got five hundred thousand, and based off of historical data
information right net returns been two and a half percent.
We're going to lock you in for five Now. Should
you put all your money into any one particular investment,
Absolutely positively not. If you're doing that, you're foolish. Diversification
(12:25):
is your friend. We like to build out laddered bond
portfolios with corporate CDs, treasuries. We add in a little
bit of this what we just talked about. As far
as the multi year guaranteed annuities. Oh yeah, and oh,
by the way, we all add some alternative investments what
we call yield enhanswers to the portfolio. And right now
our portfolios are generating somewhere between six and a half
(12:48):
and seven percent for our clients as far as cash
flow off of the portfolio on the fixed income side,
on the fixed income side, So don't be bamboozled out there.
Don't be bamboozled. Don't listen to these people that really
(13:09):
have no idea what the hell they're talking about in
regards to the guarantees that are associated with annuities, because
they have an investment bias. An investment bias. An investment
bias means that they don't like it because they probably
can't get paid on it. They don't like it because
(13:29):
they're probably you know, it's not in their wheelhouse. They
don't like it because they think they're better and they
can do things better. And the end result is for
a lot of you you want safety and guarantees. Well,
right now today, as of the closed business on Friday,
I don't know what's going to happen on Monday, But
we can get you five percent guaranteed for five years
(13:50):
and not say to myself and my clients and everybody
else that's listening, that's a pretty damn good rate to
return on a historical basis, five for five guaranteed. Take it,
dive it in. At the end of the term, you
decide what you want to do. Keep the money there,
roll it. If a certain interest rates are up, interest
rates are down, who knows, nobody's got a crystal ball,
(14:13):
then you decide. But it's a great way to walk
into retirement. Second thing, red zone planning. Hey Dave, I
got X number of dollars I want to retire in
the next five years, okay, or you're in the red zone.
Make a lot of sense. You want to basically walk
into retirement. You got to decide what you're going to do, right, Well,
(14:35):
what you ought to do is basically build out your
bucket of a money approach. And what you want to
do is that you want to be in a position
that you know what's going to be in bucket one,
what we call the cash bucket, the conservative bucket. Bucket one,
bucket two, bucket three. That's basically how we set up
our portfolios. We have a short term, an intermediate term,
(14:57):
and a long term bucket approach. But all three of
those buckets have what we have strong dividends, and we
also have the ability in order to turn the valve
off when we have enough. In bucket one. So if
I've got a five year plan, I have five percent.
I got a million dollars, Bucket one is gonna load up.
(15:20):
I'm gonna have fifty thousand dollars a year for the
next five years. When I walk into retirement, my corpus
is protected, the original investment is protected, right, and then
I also have two hundred and fifty thousand dollars guaranteed
in bucket one, so I can go into the sunset
and the yellow brick rotor retirement and I can basically
(15:41):
have safety guarantees and protection and guaranteed income, which seven
out of ten of you want, seventy percent of you want.
So that's the facts, no fiction. What that is is
that it's a hard number. It's a number that we like.
Anytime you can get a five handle on a guarantee,
(16:03):
I think you should definitely take a look at it.
If you're looking for safety and guarantees, then you need
to pick up your telephone and give us a call.
Because the Retirement Planning Group, this is what we do.
We build out retirement income distribution strategies. I'm gonna take
my first break. I know that Zach is extremely happy
that I'm taking my first break, aren't you? Zach say
I've good, Zach say yes. Break for me, baby, break baby,
(16:28):
I want some break dance and music. When we come back,
I'll be right back the eighty six percenters. Do you
know that eighty six percent of the population has no
defined benefit pension plan. For most of us, we have
to take our life savings and create a paycheck for
the rest of our lives in retirement. What is your
plan for retirement income distribution? How you manage your assets
during the most critical years of your lifetime. Nobel Prize
(16:49):
winning economist William Sharp has called retirement income distribution the nastiest,
hardest problem in finance. He points out that investment, uncertainty
and mortality can derail the most careful laid out retirement
income plan. Call our offices today to start the process
of building a retirement income distribution plan. After forty one
years of being in the financial services business, you need
(17:11):
to start taking action to start building your own personal
retirement income distribution plan. How do you do that? To
take action? Five one eight, five eight zero one nine nine.
That's five one eight, five eight zero, one nine one
nine or RPG retire on the web. Don't procrastinate, motivate
to start building your retirement income distribution plan five win
(17:32):
eight five eight zero one nine one nine. The greatest
risk in retirement most of us have no plan for
or insurance to cover the expense A long term care
event can impoverish a spouse, drain your life savings and
cost stress and anxiety on your family. What is your
plan and how will you pay for a long term
care event? Call a retirement planning group today. Discuss options
you should consider to protect your estate and have choices
(17:55):
and independence. Take action call today five one eight, five
eight or one nine one nine or RPG retire on
the web. All right, we are back. Glad to be here.
(18:43):
It is Saturday. Hopefully you're enjoying the day. Be careful,
a little bit slippery out there, a little bit of snow.
You don't want to slip and fall. Believe me, we
had a wonderful clients with clients for ours for about
twenty five years. She fell. This past week, Mary Alice
go to Bless You, We Love You. You know, she
listens to the show every week and she broke a
(19:06):
couple of ribs, and that is very painful. If you
never had a broken rib, folks, you don't want one.
You don't want one. Today we're talking about it. It's a
new year. We're talking fact versus fiction. We're talking about
cash flow and how you handle cash flow during your
(19:26):
retirement years. You know, I always like the pinocchios that
talk about things that they really don't understand, and I
also like just kind of set aside what's fact and
what's fiction. You know, there's really kind of four types
of guaranteed rates out there, right. You got corporate bonds
(19:48):
corporations at issue from a private company. You got treasuries
right notes that are issued by the US government. You
got municipal bonds, which are notes that are issued by
local governments. Then the fourth component is the one that
most of us, most of us deal with, and those
are guaranteed rates that are issued by banks, credit unions,
(20:18):
or insurance companies, which you call an annuity, which is
either a multi year guaranteed annuity. They used to call
them single premium defer to annuities. But the key to
all of this is one thing. There's a coupon, there's
a guaranteed rate, and which one is the safest of
the bunch, Which one gives you the sleep at night
where the other ones might not necessarily give you. Corporate bonds, right,
(20:43):
they're only as good as the company that is issuing
the bonds. Treasuries pretty safe issued by the US government. Right,
you don't think the government's going to go broke. Maybe
they will go brooke the way they spend money down there.
And municipal bonds, right, municipal bonds are only as good
as the municipality that's issuing the bonds and the revenue
(21:04):
that's being generated. And then of course you've got CDs,
which are backed by the CIPICK for two hundred and
fifty thousand dollars. Then you've got myga's multi year guaranteed
annuities that are guaranteed in New York this is specific
to New York to five hundred thousand dollars backed by
the New York State Insurance Fund that guarantees principle and
(21:27):
interest so what's the negative? So what's the negative? Why
do you hear, you know, the screaming monkey say, you know,
I don't like them because they're an annuity. I don't
like them because they're issued by an insurance company. Well,
I don't think there is a negative. And I've been
doing it a long time, and I know of all
the years that I've been dealing with these types of investments.
(21:49):
There was one situation in the eighties where Executive Life
got into trouble with the yields that they were basically
giving investors, and New York State Insurance Fund took them over.
MetLife took over the company. Instead of getting like fifteen
sixteen percent a year, they ended up getting twelve percent.
Nobody lost the penny. Everybody got the money that they
(22:10):
were due. So here's the real deal. I know the
corporate bonds, they have risks, there's defaults. I know the treasuries, right.
The problem with treasure is you buy them at a discount.
You can't get the income, right, you can get the
income once the bond matures. Then of course you've got
tax remunicipal bonds. Most of you are in a situation
(22:33):
where they're probably not warranted because of the yield on
the tax remunicipal bonds versus your tax bracket and the
state that you live in. And then you got to
really make a selection. What do I want for guarantees?
If you want guarantees, and seven out of ten of
you said that you want guarantees, what's the chassis and
what's the one that you want to go with. So
(22:55):
here's your selection. Selection one is a senior at a bank.
If you move it early, they're going to penalize you. Right,
you're going to get the interests and the interest is
going to be taxable as far as ordinary income. No
matter what happens, you're going to get taxes ordinary income. Okay,
there's no tax preference. Now let's go to the other
(23:17):
side of the balance sheet. Here we've got multi year
guaranteed anudies that guarantee principle and interest. Here's the advantage.
You don't use the income, you don't pay tax on
it because it grows on a tax deferred basis, so
you can utilize them in iras, outside of iras and
non qualified assets, and that means that the money grows
(23:38):
tax deferred, zero tax consequence, so you control your destiny.
I like that right. So there's one check on the
right hand side that I think is pretty advantageous, meaning
that my money will compound without any ten ninety nine
at the end of the year. Okay, option too. Can
I take it as income? Yeah, of course you can
take the CDA's income. Can the multi year guaranteed annuity?
(24:00):
Can you take it as income? Yep, you can take
it as income. The interest comes off and you can
get an additional ten percent. For a lot of the contracts,
not all of them, of some of them you get
additional ten percent. So if you put in one hundred
thousand and you get in five percent, that's five thousand.
You get a nine to one one. You can take
on an extra ten thousand dollars without any penalty at
(24:21):
all at the end of the fifth year. Five years,
these coming three and five, seven and tens, just like CDs.
But at the end of your term, then you got
the decision do I keep it where it is or
do I move it somewhere else? Just like a CD.
Do I keep it at the bank, do they write
me a check? And then I move on to where
I can get a higher ratear return. It's no different
(24:45):
same thing. So here's the real catch. I got two
hundred and fifty thousand dollars on SIPIK and I got
five hundred thousand dollars through New York State Insurance FUNE.
So as I said at the beginning, I got twice
as much. On a historical basis, the bond portfolio has
done about two and a half percent in the last
(25:05):
ten years total return. I'm getting five percent. My corpus
stays principal intact. Don't have to worry about one hundred
thousand dollars going away. And oh, by the way, I
get five thousand dollars to either accumulate or take it
as income. That's the facts, no sizzle, no biases, No
(25:27):
my personal feeling is this. I don't care what your
personal feeling is, right, All I care about is what's
the most competitive rate of return I can get with
the most amount of safety. And I'll tell you what.
If you're looking for that, you should probably give us
a buzz because we've done millions and millions of dollars
in these in the last few months. And the reason
is because it's straight forward, no questions, guarantees, guarantee payment.
(25:53):
So we're going to be back. I have to take
a break. Boy, that was a quick half hour. I'm
Dave Kopek. This is the Retirement Ready show.
Speaker 3 (26:18):
That's the way, that's the way, that's the way. Where
do you take me? Tell me where you get me?
Speaker 2 (26:48):
And do it all right? We are back. Oh that's
the way. Like it, like exactly, like it, like it,
like it, like it. Get those feet moving, get the
blood flowing, get outside, it's fresh air. I'm Dave Kopik.
This is retirement Ready. We're talking about the beginning of
(27:12):
the new year. We're talking about how to get going
to conquer the retirement that you desire. As we talk
about getting to retirement is only half the goal. The
rest of it is making sure that you dot your eyes,
(27:35):
cross your t's and understanding exactly the apple that you've
picked off the tree. So when we talk about retirement
time horizon for a lot of us is going to
be different. Some of us want to retire at sixty two,
sixty five, FRA, sixty seven, sixty eight, seventy, whatever it
(28:01):
may be. Social security selection for a lot of you
will be different. Medicare the premiums, the type of policy
that you get, and then oh, by the way, long
term care. But our investment behaviors can change too when
you're not receiving a check, and you may develop that
(28:26):
little disease called loss adversion or what we call the
fear of losing money in the investment markets during your
retirement years. And that's okay, that's okay because there's ways
to structure your portfolio that you can have safety and
guarantees and still have participation in the stock market. Okay.
(28:52):
Everybody's gonna basically attack the retirement a little bit differently
than the others. But what's going to be different is
that you're going to look at things a little bit
differently than when you were working. And there's four things
that I want to focus in on this half hour,
four that I think are critical. And as I enter
(29:16):
two thy and twenty five as the president of the
Retirement Planning Group and wgui's retirement planning specialists, I'm going
to give you the secret sauce. Okay, So you can
pull over and take your pencil out your car. You
can go grab another cup of coffee. If you're home,
(29:39):
you can go get the spouse and say, hey, listen,
he's given out the secret sauce the recipe. You know
a lot of you women don't like to give out
your secret recipes, but I'm going to give out the
secret recipe today. Number one, I personally find that my
(29:59):
retired clients retirement plan, I say, mine the retirement planning group.
Clients sleep a hell of a lot better at night
when they have safety and guarantees in cash on the
sidelines with a good chunk of their money when the
(30:20):
stock market craters like it did in twenty twenty two. Remember,
cash on hand was a panacea. It was a welcome relief.
So generally, when I say cash can be king short
(30:43):
term T bills, savings account, money market accounts, blah blah blah.
Each liquid asset that's conservative right, serves a purpose on
the bucket one approach, we usually recommend somewhere between one
(31:04):
and a half to two years of living expenses in
liquid assets. That's high yielding money market accounts, that's cash
equivalents money market accounts. They've given us great yields over
the last couple of years. So even sitting in cash,
it was basically an asset class that we felt comfortable with.
But bottom line gets down to is that cash is king,
(31:27):
especially when you walk into your retirement years. Now, hold
on tight for those that you have undersaved, those that
have a nice nest egg, maybe not as large as
(31:51):
you would like. There are things that you can do
with that home equity in order to basically put another
tool in the toolbox. It's like a line of credit
and it's called the reverse mortgage. Now, people say, Dave,
you know, why are you talking about this, Because I've
(32:13):
had clients where it's made a huge difference in their lives.
We get no compensation, there's no money in this for us.
But I'm a major advocate of it. And if you
do it early, guess what, The money grows, even though
you're not tapping into it. It grows and money becomes
larger because of the compounding. It's a handy fix for
(32:37):
what unexpected expenses. It's like a line of credit that
you can use over your lifetime and it's all tax
free and you can basically tap into it at any
time as long as you're over the age of sixty.
Big So you remember when you were a kid, you
had that little piggy bank. I call it the piggy bank.
(32:58):
The piggy bank. If you've undersaved and you need to
have some creature comforts or some things that you want
to do in your lifetime. Nothing wrong with it, You
just need to educate yourself on it. Is it suitable
for everybody? Absolutely positively not? Is it suitable for some people? Absolutely? Yes. Taxes?
(33:25):
Where are you going to be, where are you going
to live, what's your zip code? What's the tax liability
where you are? How important it is for you to
basically have a strategy so your tax situation is not
eating away at your budget. We all know what's happened
(33:47):
here in New York with our taxes not fun. I
run and hide. I run and hide in September and
January when we get all the tax bills. School tax
is in September, property taxes in January. Right, So you
(34:09):
take all your dividends and interests and all your income
and social security and pension benefits and what we've created
as far as and you try to figure out is
there going to be enough in the pot in order
for me to pay my property taxes, my school taxes,
sales taxes, whatever it may be. And as I go
(34:30):
down the road, is there going to be a problem
for me to maintain my quality of life under this
current situation that I'm in. Problem with most of us
is our retirement assets is basically allocated into you know,
maybe two or three different types of investments four one
(34:53):
K four H three b TSPs New York State deferred compensation.
These are moneies that are always pre tax, always at
tax liability, moneys that will always be difficult, always be
difficult in our lifetime. And then you have to figure
out if it makes sense for you to continue down
(35:14):
the path to allow that money to keep on growing
and keep on growing until that magical age is seventy
three when you start getting required minimum distributions and the
distributions get larger, they don't get less, and when you
least want the money to become the greatest And then
you're sitting there eating your mapo, sitting in the nursing home,
and you got to check that's coming for fifty sixty
(35:35):
seventy thousand dollars, which is not going to go to you.
It's going to go to the nursing home. So our
whole thing with minimizing taxes and maximizing the yield to
you is to do it sooner in retirement rather than
later in retirement because guess what, most of you are
going to live a hell of a lot longer than
what you anticipated, and you're going to be sitting there
(35:58):
in this situation getting distributions when you at least want them.
Had a client not that long ago. I went down
to her home, heard her husband wonderful people, salt of
the earth. So we got to talk to you, Dave.
(36:22):
He s, all right, up now on. We don't want
you to come up to the office. We don't we
don't want to go up to the office. Want you
to come down here. I said, Okay, ill come down.
So I got in the car, I took a ride
down to their house and there I am. I'm sitting,
I'm sitting, I'm sitting. We're talking, we're talking, we're talking.
I can tell you that they feel uncomfortable, comfortable, uncomfortable.
They can't let the cat out of the bag, and
(36:44):
they go we got a problem, I said, really, what's
the problem. It's kind of unique. But we got too
much cash. What do you mean you got too much cash? Well,
we got too much cash and we're trying to figure
out what to do with it. Said, well, there's a
(37:08):
lot of things you can buy and do and she goes, no,
I don't mean it like that. We're receiving a lot
of cash. We take the cash and we've been filling
up our safe. He said, okay, and what's the problem.
She goes, well, we can't fit any more cash in
the safe. They said okay, And I said, we'll buy
a second safe if that's where you feel comfortable putting
(37:29):
the cash, because ultimately they want some cash in the safe.
So when they pass away, the kids got cash. And
she said to me, well, how big of a safe
can we get because there was other assets that they
wanted to put into the safe also. So the thing is,
(37:51):
is that really where you want to be when you're
later in life? And he got these large distributions of
a qualified plans iras four O one case and they're
coming and you're going to the bank or whatever. You're
cashing it out, or you're taking cash on a monthly basis,
whatever it is, and now you got this large stack
(38:11):
of money sitting inside your house. There's a different way
for everybody to do certain things, and there's a mix.
You know. What we always say is that everybody has
a different way in order to allocate their money and
also build out their wealth management strategy. But the thing
that doesn't change is r MD required minimum distribution. It's
(38:36):
going to happen to all of us. It's just a
question do you get proactive in your retirement what we
call the three years or there the three seasons of retirement.
Go go slogo, no go, go gos when you want
to cash slog Maybe a little bit of cash, no go,
(38:58):
you don't want to cash. So the proper allocation of
your investments on the front end and the distribution, the
speed of the distributions makes all the sense in the world.
All right, I'm going to take a break. I'm going
to come back and finish up my last segment. This
is Dave Kopek. This is Retirement Ready today. We're talking
about getting ready for twenty twenty five. Do you have
(39:20):
a plan for your retirement. If you don't, We've got
five locations now in New York, Syracuse is our new
office Oneanna Aubany, Glens Falls, Saratoga. We would love to
be able to sit down with you, have a chat,
see if we can be of assistance to you. If
we can, it's pretty simple. Just called Jim or someone
(39:41):
in my office at five one eight, five eight, zero,
one nine, one nine, say hey, listen, listen to Dave
like I always say, plane, train, boat, whatever it is, ring, central, zoom,
however you want to meet is fine by us. But
the thing is is that it's a new year. It's
a new opportunity for you to basically put the pieces
of the puzzle together. We'll be right back, your partner
(40:03):
for success. David kopikair WG WISE retirement planning specialists, the
Retirement Planning Group. We understand that retirees face many important
decisions that can affect their long term financial success. Some
of these decisions revolve around making investments that will help
create a hedge against outliving their assets, the impact of inflation, taxation,
(40:26):
and rising health care costs. Most of our clients lack
the time, the desire, or the experience to manage their
own investment portfolios. We consider it to be an honor
and a privilege to help our clients make sound investment
decisions though contribute to a secure financial future for them.
Because over ninety percent of our clients or retirees with
(40:47):
similar concerns, we are in the best position to approach
such challenges with experience and skill. Give us a call
today at five one eight, five eight zero one nine
one nine five one eight five eight zero one nine
one nine or RPG retire on the web. Will you
run out of money in retirement where your investments provide
income for possibly decades? How do you navigate the two
(41:08):
greatest risk in retirement sequence of returns in longevity? At
the Retirement Planning Group, our Bucket of Money approach addresses
these concerns and we offer a complementary consultation to discuss
this with you. Call our office today for a free
complimentary consultation to develop your own personal retirement income distribution
plan at five eight five eight zero one nine nine.
(41:30):
That's five eight five eight zero one nine nine.
Speaker 4 (41:48):
Baby with the loms. I can see you watching and
the nine hellollo me. We're waiting fall the sun all right,
(42:12):
we are back when I feel cold.
Speaker 2 (42:16):
I'm Dave Kopek, your host wg wi's Retirement Planning Specialists,
celebrating my twenty fifth year on radio, which is hard
to believe, forty third year in business. So anything that
I'm discussing, it's from the heart, it's from my experience
and hopefully you'll heed it or at least listen to
(42:37):
what my position is. It doesn't mean that it's right
for everybody absolutely one hundred percent, But I know in
my heart that by doing this for as many years
as I have, that I think I have a pretty
good idea of the proper allocation, the mix, how to
structure your overall retirement wealth management. So let's talk about
(43:01):
asset allocation, because that's the one that we spend a
lot of time on initially with people because they get
out of whack as far as their mix of stocks, bonds,
alternative investments, commodities, real estate, which we all know is
what portfolio asset allocation that mix along with your RTQ,
(43:27):
meaning how we basically have to manage your money based
off of what you've filled out your adverse ability to
handle risk in your portfolio? Where is it, what's the gauge,
and what's our responsibility to you as far as building
out your portfolio. Now, as we're all quite well aware,
(43:50):
no one sector or asset class is the clear winner
every year, and as we're quite well aware, some years,
sitting in cash cash is king, Like in twenty twenty two,
it's better than sitting in bonds. Or stocks was ugly.
(44:13):
It was ugly. But the proper mix of your investment
depends on a lot of factors. Big one and most
important one is your stomach. How much risk can you
stomach and much risk that you have in your current portfolio?
(44:38):
Should you allocate based off of your stomach? Well, that
sounds kind of weird, Dave. What do you mean by that? Well,
you don't want to be in a position where you
can't sleep at night and you got ulcers because you're
going through gyrations with your portfolios. So this is what
(44:58):
I would say to you a retiree today who's afraid
of losing money, because you can lose money immediately. People
that got into the market in January, they're looking at
their portfolio right now they're saying, I'm down. You know,
(45:19):
you're down. Stocks and bonds have not done well at
the beginning of twenty twenty five. So if you're afraid
of losing money as far as your actual value of
your portfolio, you only lose money when you cash out
and go to the sidelines. Is really someone who doesn't
(45:42):
have enough guaranteed money understand that if your stomach is
telling you I don't like this there's got to be
another solution for me in order to sleep at night
and not worry about am I going to have an money?
There is? There is? I just said, you give five
(46:04):
percent now guaranteed for five years. Is that enough? I
don't know. You know what happens five percent four or
five years ago? You have them standing on line from
here to New York City. But now five percent, I
don't know. Maybe I'm looking for eight or ten. It's
like the guys or gals that call me clients of mine.
(46:27):
Don't you think I should have more? You know, my
money allocated to stock because the stock market is doing
so well. No, no, I don't. So the thing is
is that as you go into retirement and you build
out whatever type of a pension or retirement income distribution
(46:48):
plan with your Social Security because you don't have a pension, right,
you got to say to yourself, I need this money
for how long? What's my foreseeable future? How long do
I think that I'm going to need to manage these
assets or have the assistance of the retirement planning group?
Five years, ten years, twenty thirty, forty, who knows. But
(47:13):
the problem is a lot of people walk into it
and they say, Okay, here's my cash, mister wonderful or
missus wonderful. And I know that you've got this great
track record and everything is rosy and happy, go lucky,
and I know that you've got stellar performance, stellar performance. Right, Well,
(47:38):
what happens when there's underperformance? That's what you got to
ask yourself. What happens when there's underperformance and the market
treats you ugly? And now you're down fifteen, eighteen, twenty
twenty five percent based off of that selection. As far
as the asset classes that you're involved in, that's fun.
(48:03):
It's not fun for the advisor either, and it's not
fun for the client. Now, I know that there's some
things in my last bullet point here that we can't
as advisors deal with. You're going to have to deal
with it, and that's emotions. Emotions, your emotions. See at
(48:31):
the retirement planning group. I don't want to have any biases.
I don't want to have any past experiences that I
think are not suitable for you as a client during
your pre and post retirement years. And the one that
we talk about all the time is retirees past experience
(48:55):
with loss aversion the feeling of winning is not as
strong is that of losing. Right, In other words, you
feel your loss is more than your gains. We don't
hear from a lot of clients when things are good,
dancing in the street and you know you're up to three,
(49:16):
four five percent in one month. But loss aversion can
cause an investor to what, pick up the telephone. You know,
what's going on? What is going on? This is the
stock market. There's nothing going on. The stock market has
ten percent down drafts consistently on an annual basis, maybe more.
(49:43):
The key is to be aware of those emotions and
not let them control your decision making. The key is
to be aware of those emotions and do not let
them make your decision making. For instance, that a retiree
has a high degree of loss aversion and then when
things are starting to get ugly, they call up and say,
give me a cash, give me a cash, Like, there's
(50:06):
six and a half trillion dollars right now sitting in cash.
That's loss adversion. And what did they do well last year?
They missed out on a major run in the market.
So here's here's my secret, sauce. Okay, you wanted the
secret sauce. Excuse me, I apologize, we got a little
cold here. Retiring concerned about losses should have more and
(50:27):
guaranteed investments, guaranteed sources of income in cash okay, simple
as that there are no sorts of investment biases that
we can't facilitate a correction to okay. In other words,
you may be your own worst enemy. And that means
(50:50):
that you basically you're allocated into an investment program that
your bellie can't take. And then you have an investment
advisor that tells you that certain investments are bad and
they're horrible, and this and that and all this, and
they're dancing in the street because they're charging you one
percent a year no matter what the value your portfolio is. Right,
(51:13):
that's the facts. They're winning, whether you're down or up,
that's the facts. So my final thoughts for today this
If you're getting to retirement, I can tell you right
now it's a monumental task. Many things have to go right,
many things have to go right. You need to get
(51:35):
ahead of it. I say four to five years at least.
But the bottom line gets down to if you're in
a situation where you're contemplating retirement and you want some
help and assistance. That's what we do with the Retirement
Planning Group. We tell you facts, not fiction. We have
open architecture, We do not have biases in the bottom line.
(51:58):
We would love to have the opportunit unity to sit
down with you and I'll let you know a little
bit about our platform and what we can do. God
bless and I'll see you next.
Speaker 1 (52:07):
Thank you for listening to Retirement Ready hosted Buying Dave Kopek,
w G wise Retirement Planning Specialist. If you'd like to
talk with Dave or someone of the Retirement Planning Group,
call five one eight five paid zero nine nine. That's
five twenty five eight zero one nine one nine during
business hours, or visit RPG retire dot com. The Retirement
(52:29):
Planning Group has five convenient offices located in Albany, Malta,
Glens Falls, Syracuse.
Speaker 2 (52:36):
And Oneana.
Speaker 1 (52:37):
Tune in again next week for retirement planning strategies with
Dave Kopek right here on WG wise Retirement Ready. The
information or services discussed on this show is for informational
purposes only and is not intended to be personal financial advice.
The investments and services offered by US may not be
suitable for all investors. If you have any doubts as
to the merits of an investment, you should seek advice
(52:59):
from an independent NACIAL advisor.
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