Simply Money

Episode Transcript

(00:06):
Tonight. Sometimes we like to stepback and say job well done, as
we see investors staying put making smartlong term decisions despite all the headlines,
including major tension in the Middle East. You're listening to simply Money present of
my all Worth Financial. I meanyou Wagner along with Andy Schaeffer in for
Steve Ruby. Tonight. It feltlike a long weekend, any I've got

(00:28):
to tell you because I ran attackedIsrael of course over the weekend, and
then it was like all of thedominoes started to follow. My phone started
blowing up. Producers were trying tofigure out, should we do special shows,
What is going to happen in thestock market, what's going to happen
with oil prices? This gas andhis skyrocket. We even brought in the
brilliant Edfink. And when it comesto global economics, there's no one I

(00:52):
trust more. And it was actuallyAd who said, I don't know that
it's going to be a major dealwhen it comes to be those four one
k's in the stock market. Keepan eye on oil prices, but I
think we're going to be okay.And of course i'd think the brilliant man
that he is well he was right. Well, first of all, I
love Ed and he usually is righton those types of things. Yeah,

(01:12):
but it was interesting. I actuallytook Monday off. I had it on
my calendar because I was playing ina charity golf outing and I had some
friends over on Saturday and we werewatching the Masters and it broke in and
to say that Israel was attacked byIran. And MY first thought was,

(01:32):
geez, should I should I cancelmy golf outing and come into work on
Monday? What is that going tolook like. I was really worried about
it. And you know, Mondaycame around, you know, and the
markets didn't really respond to bad AndI think, you know a lot of
the reason why was because i Ranpretty much signaled that they were going to

(01:53):
attack on the previous Friday. Andif you remember, on that previous Friday,
the markets were down. You know, I Ran did signal that,
hey, we're going to do something, you know, because of you know
the fact that Israel targeted some oftheir generals, and you know, I
Ran felt like they had to respond, and I think the markets in a
way exhaled a little bit because weknew it was coming. We just didn't

(02:15):
know what it was going to looklike. And so obviously I RAN sent
over about three hundred drones and missilesto Israel, and you know, the
neat thing about it was Israel wasable to shoot most of them down.
And what it suggested was that theirdefense system really was fairly robust, and
it showed the world that, hey, you know, Israel can handle these

(02:38):
types of attacks. And now thatI Ran set their message there was minimal
damage. Investors kind of exhaled tosome degree because now, you know,
the uncertainty was out of the way, and hopefully at this point cooler heads
can prevail. Markets hate the unknown, right, And on Friday, that's
what we had. We had thethreat of an attack. We didn't know

(03:00):
what it was going to look like, we didn't know how bad it was
going to be, you know,what kind of destruction was going to be
done. By Saturday, it appearedthat we knew that held our breath kind
of collectively on Sunday, nothing new, and yeah, I think I think
Monday morning it was like, okay, we were really worried. Of course,
no one wants unrest anywhere, youknow, but when you kind of

(03:21):
see how this played out from amarket standpoint, it was like, Okay,
we're good, We've digested this andwe're moving on. And that's sort
of exactly what the markets did well. And you know, you know,
I've been in financial services now foralmost twenty five years and the Middle East
has always been challenging and it's beenon the radar, and you know,

(03:42):
there's been unrest you know, throughoutmy whole career there, and it has
been something that you keep an eyeon from a geopolitical standpoint, and I
think you know, for most investors, the issue is what is oil going
to do? Right? And becausethat really affects us here at home.
If there's unrest in the Middle East, that can cause a lack of supply
of oil, which raises oil prices, and you know that, you know,

(04:06):
that's a part of our everyday life. You know, that affects you
at the pump, It affects oursupply chains with shipping domestically, and so
that's really what we keep an eyeon. And when you look at oil
prices, they've actually come down overthe last couple of days. You know,
they spiked on Friday. Again,you go back to Friday and you
look, you know, when IRan signaled that they were probably going to

(04:29):
retaliate. Oil prices spiked, butyou know, since Friday they've come down
quite a bit, and I thinkthat helps investors breathe a little bit easier
as well. Yeah, and overthe weekend there were headlines along the lines
of oil prices going up to onehundred dollars a day out right, and
it's like, oh no, whichwe, by the way, have seen
these prices before. It does hurt, but it's not any territory that would

(04:50):
be brand new for us. Wehave twenty fifteen. Yeah exactly, we
have been there before and we allsurvived it. But yeah, not at
all what happened. You can makeit great point too, because gas prices
are in our face all the time, whether you are filling up at the
pump or just getting off of anexit somewhere. It is like this,
this blinking reminder, and for manyof us, it's the litmus test for

(05:12):
how the economy is doing. Whengas prices are down, you feel really
good right about the economy. Youfeel like things are going well. And
by the way, step back fromwhat's going on in the Middle East,
and we have a presidential election thisyear, a lot of the talk is
going to be on the economy.You can bet the oil prices and in
our you know, our company orour country's ability to supply our own oilpl

(05:32):
all of those things will be partof the conversation. But yeah, I
think for those of you reading anyof these headlines over the weekend thinking this
is going to be bad, right, things are going to go south,
wake up Monday morning. You know, futures who are up. Market's open
markets are up, and you knowit hasn't been a major crisis ever since.
You're listening to simply Money presented byall Worth Financial. I mean you

(05:54):
Wagner along with Andy Schaeffer, ourgood friend and for Steve Ruby tonight as
we digest what the mares have beendoing in response to Middle East. In
fact, Andy, markets actually wereup. Yeah, you know, we
got a little bit of bump thebeginning part of this week because we continue
to have decent retail sales. Youknow, the first quarter company earnings have
gotten off to a positive start,and it shows that, you know,

(06:16):
our economy really dominates you know,the markets in general, and you have
to remember that seventy percent of ourtotal economy is because of you and meat.
It's about the consumer. And aslong as we have jobs and the
labor market is fairly strong, thatmeans that we are able to continue to

(06:36):
spend money, which translates to consumerspending and retail sales. So you know,
at the end of the day,as long as we were employed and
have the ability to earn a wage, that's really what drives our economy.
Yeah, I mean, isn't itinteresting? You know, It's like over
the weekend, all the focus wason the Middle East. We wake up
on Monday morning and numbers start tocome in. Okay, retail sales are
up. That means we're still spending. Okay, the large company needs that

(07:00):
make up the American economy that literallyput the economy on their back and moving
forward doing pretty well, you know, and I think that you know,
as we've even we're talking about thepresidential election, please remember that the Oval
Office, you know, is notwhat drives the American economy. The American
economy is always going to be biggerthan the Oval Office or really hopefully any
geopolitical event that's going on, ishow are these companies doing, how are

(07:25):
they responding? And in fact,one way that you can look at this
is that some degree of unrest forsome companies, right, those that have
contracts with the Defense Department and thingslike that, will actually do better in
times like this. Now, certainly, no one wants to see any part
of the world at any time nothaving a peaceful way of living. But

(07:48):
if that's the reality, then thereality also translates to some companies are going
to do better during times like that. And think about it from you know,
just our local perspective. You know, we're all very familiar with doctor
and gamble. You always need tobrush your teeth and wash your hair,
right, and so regardless of what'sgoing on geopolitically overseas, you know,

(08:09):
we still need to continue to spendand we are still consuming. And you
know, I think that's a lessonfor a lot of people to just understand
that throughout history we've always had unrest. You know, We've had We've gone
through wars, we've gone through youknow, the September eleventh was the challenging
time. But you know, whatI try to remind my clients is that,

(08:31):
you know, one hundred percent ofthe time the markets have met and
exceeded their previous highs. It's justa matter of time. So as long
as you're patient and you're willing tosift through some of the volatility and have
a little bit of a poise,you're going to come out on the other
end a lot better off. Aslong as you stick to your to your
profile, make sure that your portfoliois diversed, you're going to be just

(08:52):
fine. And I think also,you know, for those who feel like,
oh, this just it all makesme feel scared, in fearful,
and because of that, maybe Ishould sell stock exposure, Maybe I should
sell you, Maybe I should goall to cash. Okay, there are
times when we would say selling astock does make sense. Never, never

(09:13):
is it in response to any sortof geopolitical event. If your answer is
why am I selling this, andit's because I'm afraid, because I'm fearful,
because I don't know how this isgoing to turn out, we would
say those are all really bad reasonsto sell. Now if the company in
and of itself, if you ownan individual stock which were not necessarily huge
proponents of, but if there wassomething fundamentally wrong with that company. Now,

(09:35):
I'm not saying this is a reasonto sell Tesla stock, but it
has been in the headlines recently,Elon Musk write drug use right off.
Things like that make you nervous,and you own Tesla stock, maybe that's
the reason to say, Okay,maybe I sell. Maybe I'm just worried
about the future of this company.That can make sense depends on your individual
situation. But you don't sell becauseof what's happening somewhere in the Middle East

(09:58):
that that doesn't make any sense.If you need the cash, that also
makes sense, right, you needthe money, you sell that stock.
That's that's part of why you're buyingthese things. So a reminder of when
it's acceptable to sal stock and wewould say that just doesn't make any sense.
You're only hurting yourself in a longterm. Well, and we always
say, Amy, you know,if you're going to continue to buy and

(10:18):
sell, jump in and out ofthe markets, you have to be right
twice. And you know, I'vetalked to a number of investors. If
you remember back in two thousand andeight and two thousand and nine, you
know, when things went sideways,there were a lot of people that were,
you know, shell shocked by that. You know, they saw their
portfolio go down. They tried tohang in there for a while, and

(10:39):
eventually they just had enough and theydecided to get out. Well, if
you get out, you know,you have to know when to get back
in. And a lot of peoplewere still so burned by that that they
got in late and it significantly hurttheir portfolios over time. You know,
I talked to a gentleman yesterday bettingfor the first time, and you know,
he's thinking about retiring, and hesaid, you know, I probably

(11:01):
can have a lot more money inmy portfolio if I didn't get caught up
in politics, if I didn't youworry about what's going on in the White
House. You know, instead ofhaving eight hundred thousand dollars, maybe I
would have one point five million atthis time. And you know, that's
just a lesson to say that.You know, it's important sometimes to just

(11:22):
have some poison understanding about how themarkets work and understand that, yes,
we are coming up on an electionand there usually is some volatility. But
when you look back prior to WorldWar Two, when when you go back
and look at who's in the WhiteHouse, whether it's a Democrat or a
Republican, there hasn't been a significantdifference one way or the other how the
markets have performed based on who isin office. So stick to your guns,

(11:43):
continue to take a look at yourportfolio, make some minor adjust adjustments,
but I wouldn't recommend jumping in andjumping out. Well, and to
your point, for those who everfeel like you need to make Anejr.
Creaction to any of the headlines,One of my stories about this involves you,
and it's one of my favorite stories. You know, and that's you
know some investors that you work with. You think back to the pandemic.

(12:03):
Right twenty twenty, markets are infree fall. Okay, I understand being
nervous about the headlines. Then,I mean, it had been a good
century since we had dealt with aglobal pandemic. Here in the US.
It was scary. The economy wasshutting down, the presidents on I am
in the grocery store shoving things intomy car because we don't know what's going

(12:24):
to happen. And you had someclients that you work with. I just
can't write. I'm getting out.I'm making an emotional decision, but I'm
just really scared. You called themevery single day until they got back into
the market. It didn't make necessarilysense at the time that the markets were
going to rebound. But they didabsolutely rebound. The headlines were still terrible.

(12:46):
There were no vaccines, you know, everything was still shutting down in
markets were growing and growing. People. Those clients of yours could have missed
out on so much growth. Theydidn't. And so I think also this
is a kind of know yourself andif you have, you just respond to
these kinds of things and it makesyou nervous and then you feel like you
need to do something with your money. Find a fiduci or a financial advisor

(13:07):
that's going to remind you, hey, your long term goals are going to
be far better off if you've setit and forget it and can walk away
from anything from geopolitical events, fromglobal pandemics, from whatever that is.
We've been through choppy times before,we will continue to go through them.
That's kind of the price of admissionas an investor. Here's the all Worth
advice. When panic sets in andlisten, we get it. It's a

(13:28):
very natural feeling. Stick to yourfinancial plan. If you need help sticking
to it right, find someone whocan help you there. And if you
need cash. What we would saythere is one move you shouldn't make yet
one in four of you say you'regoing to do it. We're going to
talk about that. Next. You'relistening to Simply Money, presented by all
Worth Financial. Here in fifty fiveKRC the talk station. You're listening to

(13:56):
Simply Money and presented by all WorthFinancial. Imami Wagner along with Andy Schaeffer.
Coming up at six point forty three, we've got the dues and domes
of spending in retirement, some mistakesthat we've seen others make that we want
to make sure that you don't.No question right, we're all paying more
for stuff. I mean, weare in this inflation environment. No we're
not at nine percent where we were, but we're certainly not at the two

(14:16):
percent goal. So things are justmore expensive. But where you live can
actually play a huge role and thatand you can break it down by states.
Yeah, it's wild and I thinkeverybody is aware of this. You
know, one of my biggest expenses, amy is the grocery store. You
know. And so we keep talkingabout the economy is still doing pretty good,

(14:39):
you know, unemployments still fairly low, and you know, people don't
want to hear that, you know, we go to the grocery store.
We know how much bacon and acost. Yeah, and it hurts for
us too. And you know,I make sure that when I go to
the grocery there's certain things that Ijust don't buy until they the prices come
down. But you know, wehave seen that different states have different inflation

(15:01):
rates. And you know, Ohiothe inflation rate is you know, somewhere
around two point nine percent, andKentucky is about three point four. But
you know, when you look atyou know, the United States, there's
a lot of other states that aregetting hit significantly more. You know,
Florida comes in at about three pointnine percent, and you know Tennessee and
you know Hawaii and some other states. You know, they're swimming in it

(15:22):
right now. So I think thatwe're lucky to be in Kentucky and Ohio
and Indiana where your prices are stillhigher and it does hurt, but it
could hurt a lot more in otherstates where other people live, right,
the good old Midwest, right,I mean costs of living here. Whenever
I look at California right or travelthere and even just buying like a beer

(15:45):
or a sandwich, I'm like,this is insane. You look at housing
costs there and you're like, evenif you're making you know, double three
times what we make here, youstill can't afford just to buy a house
there. Yeah, so I think, you know, cost of living here
is better, Inflation rates are betterhere. So sometimes it's just kind of
fun to pat ourselves on the backand say, we're really smart people for

(16:07):
choosing to live where we choose tolive. You know, when it comes
to having cash, as we talkabout inflation and things costing more, I
think most of us feel like,you know, more cash on hand because
it's just harder and harder to makeends meet. But there's a trend that
we're starting to see that's making mea little nervous. This is a new
study done by Empower. One infour of us say we're going to cut

(16:30):
back on how much we're putting inour flour one k just to free up
some more money for disposable income.Yeah. I think it's it's a little
alarming. But on the other hand, times are tough. Yeah, you
know, with with you know,with investors, you know, you certainly
do not want to try to decreaseyour contributions because that can have an impact

(16:52):
on your long term financial plan.You know, if you just put if
you're putting in three hundred dollars amonth and you decrease that to let's a
one hundred dollars a month, andyou plan to work for another fifteen or
twenty years, you're talking one hundredsof thousands of dollars difference in your total
portfolio. Now, you know,certainly, you know, I would like
to discourage people from decreasing their fourone ks. You know, my advice

(17:15):
would be to look at your budgetand to see where maybe you could have
some other savings before you go thatroute. Uh. With my wife and
I, you know, we lookat our statements on a monthly basis,
and the way that we go aboutit is we look at a whole year's
worth of statements, you know,because obviously certain months you're spending a little
bit more than others. You know, summertime we usually spend more. Of

(17:37):
the holidays, we usually spend more. And try to find, you know,
different areas where maybe you can cutback where you're not really paying attention.
Uh. I know I have anumber of apps on my phone that
I'm paying for that I don't usethat I could cut back on we could
probably shop a little bit better atyou know, at Kroger. But I
get it. When times are tough, you have to figure out ways to

(17:59):
make ends meet. And I wouldsay, if you need to cut back
on your four one k, tryto look at that as a last resort.
We've always been huge proponents of thefifty to thirty twenty role, and
this is like, you don't needa color coded spreadsheet to budget, but
if you can just kind of putall of your expenses into different buckets,
we would say, okay, fiftypercent of what you take home goes to
your needs. This is the roofover your head, what you're paying for
your mortgage or your rent. Youmentioned groceries, gas, you utilities.

(18:23):
That's fifty percent of your income.And then we would say thirty percent this
is the fun stuff. This isthe eating out, this is the travel,
this is the apps, whatever youlike to do with your money.
But twenty percent of it, wewould say that's what you have to save.
Now. I recently saw something talkingabout in this inflationary environment, maybe
it becomes sixty percent go to yourneeds, thirty percent go to your once,

(18:45):
and only ten percent of that isyour saving and I thought, who
thinks this is okay? I meanduring this time, I would say you
still have to try to save twentypercent. And if you have to cut
back on the vacations, on theeating out, sorry about that. But
this is like a decision that you'remaking in the now that's going to have
a huge impact down the road.And it's really hard to think about Amy

(19:08):
Wagner or Andy Schaeffer in twenty years. But if you are to cut back
what you're going to put into yourfoural one K, the future self is
going to say, what the heck? You've got nothing to show for that
now, and retirement doesn't look aseasy. So make sure that you are
making these decisions based on the longterm. It may mean sacrificing a little
bit right now, but I'm tellingyou someday you're going to be glad you

(19:29):
did. Here's the all Worth advice. Your four to one K may hold
the largest portion of your nest egg. Right what you have to retire,
we would say protect that at allcosts. Coming up next, we're talking
about reinvention. How it could giveyou a new outlook on your career,
your money, your entire Life.You're listening to Simply Money presented by all
Worth Financial. Here on fifty fiveKRC the talk station. You're listening to

(19:55):
Simply Money presented by all Worth Financial. I'm Amy Wagner along with Steve Ruby.
I love my job, but thisyear I am loving my job more
than any year I can remember.And I have to give a lot of
credit to that to Julie Welke,our good friend, Julie on the job.
Julie, you and I last summersat down and I said, I

(20:15):
love what I do, but Ifeel like there's just something else, and
you took me through this process andas the result of that, I'm now
taking on my own clients. I'mnow helping people face to face. I'm
now doing an event that's, youknow, for women, empowering women about
money. And it all came froma conversation and a process that you and

(20:37):
I started. And I think moreand more people that I talk to are
having this sort of mid career crisisof am I doing exactly what I want
to do? This is what I'vealways done, but it's like there's this
feeling that maybe they might need toor want to pivot. I'm feeling like
it's not just me. It's definitelynot just you. Any The first thing

(21:02):
I think that's really important to getyour mind around is who says we were
meant to do the same thing forthirty or four years? Where didn't that
come from? And that's old thinking, and it comes from the seventies and
eighties and before, where climbing,getting on the career ladder and climbing until
you're sixty something was seen as theonly right way to do things. And

(21:23):
so let's dispel that myth right away. You're not meant just like you're not
meant to live the same life atfifty five as you did at twenty five,
you're not necessarily meant to have thesame career. And so we've got
to get away from the shame aroundthat that there's something wrong with me if
I want to do something different,And that I think is once you get

(21:44):
your mind around that, and thebeauty is younger people totally get this,
like, yeah, why would II mean, I'm changing, Why wouldn't
my career change? And it's alittle bit for people who are a little
bit older, it's a little bitshocking, but at the same time,
a lot of people who are oldor if you talk to them, they're
a bit envious, you know,of the pivoting and the moving and the

(22:04):
trying new things that seems to comevery naturally to their kids and grandkids.
So there's nothing wrong with it,and I think that that's the first thing
we have to put our we haveto put our mind around. You make
a great point. It's sort ofan old way of thinking, but I
do think that if you are twentyyears into your career, it can feel

(22:26):
overwhelming the thought of starting over.Talk about the process that you can sort
of take people through to figure outwhat can happen next, And I think
a lot of people would also bekind of surprised at the fact that they
can take what they learned the firstpart of their career and pivot and still
apply a lot of that to whateverthe new thing is that it comes on

(22:47):
their radar. So before I dothat, I want to address this idea
of mid career. So you canpivot if you're unhappy. You can pivot
at twenty five, thirty five,forty five, fifty five, even sixty.
And so it's when you get toa point where you say this isn't
cutting it for me anymore. That'sthe time to really start to look at

(23:11):
what is it that's not working foryou? And in your case, Amy,
and we'll use you as an example. Sure you didn't make a one
to eighty change. You didn't know. And I think sometimes why we get
overwhelmed is we think I have tocompletely do something entirely different now. Sometimes
you do, yes, but sometimesit's just doing what you're doing now in

(23:33):
a little bit different way or ina different place. And so we get
really overwhelmed by this idea of Ihave to throw the last five, ten,
twenty years away. Of course youdon't. They're going to build on
that. You're still the same personand everything you've learned is going to help
you move forward. And so thefirst thing to do really figure out.

(23:55):
I think it's like the first thingyou have to do is figure out why
is what you're doing now not working? You've got to diagnose the problem.
And you know, I talk aboutmy career Happiness formula, and it is
it the job? Is it?The work itself? Are you burnt out
on the work itself? Is it? Is it? You know, the

(24:17):
people, the environment that you're doingit in, is it what and so
you've got a pinpoint why you're sounhappy. And sometimes it's simply you work
for a person who makes your lifemiserable. Maybe it's a leadership issue,
or you know you like the companya lot, but you're in the wrong
job, or you like your joba lot that you're in the wrong company,

(24:38):
and so there's you've got to reallyreally get specific about what it is
it's not working for you, andthen from there figure out if I fix
this thing, if I or whatcould I add to my plate if I
fix this thing? What might thatlook like? Then you've got to go
through this process of thinking about,Okay, what can I change and can

(25:02):
I get Once you decide what youwant more of, I say I always
think about what do I want moreof? Less of? Never again?
Then the next question is can youget it where you are? Maybe you're
at a big company that you generallylike, but it's time to do something
different. So it's the question sometimesyou know this is the big question,
is what do you want to figureout? What's wrong? Can you fix

(25:26):
it? Can you do something aboutit? And in tandem with that,
what do I really want? Whatdo I want more of? Less?
Of never again. And the bigquestion is can I get it where I
am? And for a lot ofpeople the answer is a lot of times
yes. Yeah. So it's notnecessarily about throwing everything out and going out
there like a new college grad andstarting over. It's simply making a slight

(25:49):
change. But sometimes you're like,you know, you say, you know
what, I've been doing this for, you know, twenty years, and
I have a real passion to helpwomen who are trying to get back into
the workforce, and so maybe thatyou developed that passion through community service,
just through just as you've grown andseen the world, and so it sometimes

(26:14):
yes, it does require a completechange, and this is where it gets
scary. But also remember you don'thave to do it all at once,
but you do have to put togethera plan to in this case, let's
say, learn about what are thoseoptions? How might my skills match up
to those needs in the world.Do I want to join an existing organization?
Do I want to start something myself? Just so it's you can't.

(26:36):
You really can't make a change untilyou diagnose the issue and then figure out
what does your new what does yournew desire career wise look like? Then
it's a matter of going and findingit. Well. I think for so
many people night, and I thinkfor so many people, the problem is
you do get to the point whereyou feel like, okay, maybe that

(26:56):
this isn't working anymore. But ratherthan diagnosing the true problem and then figuring
out what would really fulfill you,people go straight to I'm just gonna look
at what other options are out there. I'm gonna jump to something else and
hope that whatever the new thing isis going to be more fulfilling or more
in line with what I want todo. But when you skip the steps
in the middle, it doesn't reallywork. For instance, we can talk

(27:19):
about my situation. I felt likewith all the media work that I do,
I don't get to talk to peoplesort of face to face anymore.
And so once you kind of ledme through the process of figuring out what
I want to do more of,and it was empowering people and empowering women
and helping people make smart decisions.With her, it was like, once
I had that list in front ofmy face, it was like, duh,

(27:41):
I need to start meeting with people, you know, I need to
become an advisor. And so Ispent the past year sort of in the
process of being able to do that, and it was this huge aha moment
to me that I would have neverknown if I hadn't done the process right.
And this process is scared because wedon't. First of all, no

(28:02):
one ever taught us how to doit, and we are such self doubters,
all of us. Even the mostthe person in the world who you
think has the most confidence has itis generally also filled with some level of
self doubt and oh, I can'tdo that. That's for other people.
But it's all you do. Soyou think about it. This process that

(28:23):
any career shift is an inside outprocess. It's it starts with inside who
you are, what you want,et cetera, et cetera, out.
But you're right the easiest and Isay easiest in their quotes because it's it
doesn't It generally doesn't end you up. Where you want to be is to

(28:44):
simply do something different. In otherwords, run front something to something,
and chances are that is that isnot going to You're just going to continue
to be miserable. And then youstart to go, well, it's just
me, this just me. Nobodywants to nobody will hire me. When
I hear a fifty five year oldsay, oh, you know, nobody's

(29:04):
gonna hire me, It's just myeyes were all hard, Like, first
of all, you know, youhaven't done the work. Just responding to
ads or postings online, sending outa few resumes is it's like you're trying.
You're approaching the problem incorrectly, andso therefore, yeah, you aren't
going to get much of it out, much of an outcome, and you

(29:27):
are going to then conclude that nobodywants to hire me. Well, why
because I sent out three hundred resumesand nobody responded Like that is the dumbest
way to do it. It justis. I mean, I've done this
work for twenty five plus years,and I can tell you that is a
really stupid way to do it.I love your process, it's not how
it happens. Yeah, I loveyour process. Right, diagnose what really

(29:49):
is the problem, Go through thesteps of figuring out what do you love
doing, what do you want todo less of, and then what do
you want to do never again,and build a plan from moving forward based
on those things. Dually on thejob. Always great advice for anyone thinking
about a mid career pivot, oran early career pivot, or a late
career pivot. There are options.You're listening to Simply Money, presented by

(30:11):
all Worth Financial here on fifty fiveKRC, the talk station. You're listening
to Simply Money and percented by allWorth Financial. I mean Me Wagner along
with Andy Schaeffer. If you've gota financial question keeping you up at night,
maybe when your spells aren't exactly onthe same page, there's a red
button you can click them while you'relistening to the show. It's right there
on the iHeart app. Record yourquestion. It's coming straight to us.

(30:33):
We'll help you figure it out andstraight ahead. Maybe you've got old gadgets,
iPads, laptops, phones laying aroundyour house. You can actually make
a little money on that old tech. We'll tell you how you know.
And I think one of the mostinteresting things, the most difficult things I
would say that I see in thetransition from working, is that you've hit
this paycheck coming in for all theseyears since you've been working. All of

(30:57):
a sudden, when you retire,you flip the swing. Paycheck's no longer
coming in. You're not living offof that money. That you've saved and
invested. People can go in twodifferent directions. A lot of times people
want to curl up in the fetalposition around that money and are afraid to
spend it. Sometimes, and Iwould say, this is a little more
rare. It's like I'm not workinganymore. I do have all this money,

(31:18):
and they go off on a spendingspree. If this sounds like any
kind of an situation that you couldbe in in the future or now,
let's talk about that. Yeah,it's it's interesting. You know when I
meet people for the first time,and a lot of time it's on the
verge of retirement, and you know, they don't know exactly what their finances
look like. You know, howare we going to make it? Because
when you are used to having apaycheck, retirement could be scary. And

(31:41):
you're not alone. Everybody feels thatway. And so you know what I
usually tell people is, you know, my job number one is to help
people, you know, make surethey don't run out of money. But
number two, you know, thegoal is is to hopefully figure out a
way that you can enjoy, youknow, the same standard of lifestyle that
you did while you were employed.But number three, which is the most

(32:04):
fun part of my job. Ismaybe you can spend more. And so,
you know, a lot of timesyou've heard that you need seventy to
eighty percent of your pre retirement incometo maintain your standing or living later in
life. But it's different for everybody. You know. I have some clients
that spend twenty thousand dollars a year, and I have others that spend three
hundred thousand dollars a year. Therewas a new study that came out that

(32:24):
said, you know, you needabout one point five million dollars saved in
order to enjoy a full retirement.Well, I think that's hogwash. I
mean, it really depends on yoursituation and what you're spending. You know,
once you get into retirement, youknow, you figure out exactly what
how you like to enjoy your life, and a lot of times that doesn't
cost a lot of money. Soit's really important to understand what your budget

(32:46):
is and how much you're spending ona monthly basis. I do think,
and I've seen studies about this,that people assume they're going to spend less
in retirement, at least initially,And I don't know if it's because you're
going out on like expensive lunches withyour workers, or you have a really
expensive commute, or maybe you're drycleaning boat, which I haven't taken clothes
to the dry cleaners in like tenyears. So but you know, if

(33:07):
all of those things are really expensivefor you, you think it's going to
be cheaper in retirement. But Ialso then think about, just from my
perspective, on weekends when I'm notworking, I spend more money. You
know, I've got more free time. I'm shopping, I'm traveling, I'm
spending golf or playing golf, I'mdoing things with the kids. Like those
things cost more money, and youknow, so you do want to set

(33:29):
yourself up for a situation where ifthat's what you want to do, you're
gonna be okay. And it's notlike a straight line in retirement your first
several years, maybe when you're outof the workforce, you're feeling healthy,
you're traveling more, you're doing stufflike that. Then maybe you kind of
cut back on that stuff for awhile you're just not getting around as much
as you used to. But thenmaybe healthcare expenses kick in. So you

(33:51):
know, you definitely want to setyourself up for the ability to spend what
you need. But for those whothink it's going to be cheaper in retirement,
don't get yourself back to to acorner. Yeah, And most people
when they retire, like you said, you know, they have all these
travel goals in their minds, orthey want to travel to see their kids
or grandkids might be out of townand things like that. And while you
have your health, maybe you arespending a little bit more, you know,

(34:13):
for the first few years of retirement. So you want to make sure
that you have a decent plan inplace. You understand what you're spending is
going to look like over the years, because it's not going to be linear.
You are going to be spending moreduring different periods of your retirement,
and you just have to have agood plane in place so that you're not
guessing. And I think on theflip side, we've had people who we've
said, you can spend more.In one of my favorite stories, and

(34:34):
this isn't someone that I work with, but someone who one of our colleagues
works with, who said, notonly can you travel more, you can
now afford to travel first class.Right, You've just been saving so there
are allowed to travel first class.And then a year later that advisor gets
a call and they say, I'vechartered a plane to take my family to
Florida. It's like, oh,hold on, we did not stay charter.
We said first class. Let's let'sback up from this, right,

(34:59):
You got to find your sweet spot, and there's ways to do it right.
Keep budgeting, make sure you're awareof what you can afford. But
yeah, if you do like totravel, maybe you have kind of a
fund on the side, sort ofa rainy day fund that can make a
lot of sense too. So yougot to go into this understanding what you're
spending was before you retire, andthen make sure that you have saved enough
that you can continue that spending intoretirement. I mean, no one wants

(35:20):
to be eating at Jeff Ruby's oncea month now and then when you get
to which which would be nice.Again, I'm not saying I'm doing that
because I can't afford that, butfor those who can, or once a
quarter or even once a year,and now you're living on Ramen noodles in
retirement, Like that's nobody's goal.So here's the all Worth advice. Knowing
the dues and don'ts of spending andretirement ahead of time can actually save you

(35:43):
a lot of anxiety later on thatyou didn't plan for. Is your drawer
filled with maybe old devices you don'tuse, need, you don't even know
what to do with. Well,there could be some money to be made
there. We'll talk about that next. You're listening to Simply Money, presented
by all Worth Financial here on fiftyfive KRC the tox State. You're listening

(36:04):
to Simply Money percent of all WorthFinancial. I Meany Wagner along with Andy
Shaeffer. Andy, I'm sure youget this. It's like, I don't
know, you use that iPod,iPad all the time or airpot with with
all the things, all the devices, and then suddenly you need a new
one, and what do you dowith the old one? Uh? Sometimes
you can trade them in sometimes thatmakes sense. But I don't think a
lot of people know you can actuallymake money on some of that old tech.

(36:27):
Yeah, I mean I was surprisedto read about this. I'm not
very tech savvy. I'm not atech guy. I'm pretty old school,
you know. I don't I don'teven have a smart home. I actually
flip switches for the lights when theycome on. You know, I prefer
just getting up and doing it,but you know, you know, you
but if you do have some technology, if you have old phones, laptops,
smart watches, those types of thing, gaming systems. So you know,

(36:51):
I don't have kids, so youknow, I haven't played video games
since I was a kid. Butapparently you can actually, you know,
turn some of those in and gaina little cash. There's some sites,
you know, like swapa dot com. It's w swappa dot com where you
can go online and put those typesof goods you know, on the website
and see if you can get alittle bit of money for them, because

(37:13):
there is a demand form. Soif you have those laying around, you
might want to look into things likethat. Four teenagers in my home,
you can walk into any one oftheir rooms and there's an old something coming
out of a drawer, you know, a charger attached to something that hasn't
been used in a couple of years. This is a way that you can
make money. And I also think, you know, when you're getting a
new phone, and you know,many times this whole planned obsolescence thing,

(37:35):
it's so smart. It's like yourphone works great for two years and all
of a sudden it's on the fritz. Your battery isn't working, you don't
have storage anymore. You know,you turn that old phone in for a
new phone turns out, at leastaccording to some of the experts, you
could make more money not necessarily swappingthat out for a new phone, but
maybe selling it. And if you'relooking to buy one of these devices and
don't want to buy new, oneof the benefits of buying it through some

(37:58):
of these sites is that they've alreadymade sure that these are actually working,
so you're not paying for something that'snot working at all that's going to have
issues. So if this is somethingthat you have right lying around your house,
it's like when you do spring cleaning. You know, if you're going
to just make extra money or tossthe stuff, it makes sense to make
the extra money. So something tolook into that maybe you've not thought about

(38:20):
before. Just make sure you doyour research that these are reliable sites that
you're working with. Thanks for listeningtonight. You've been listening to Simply Money
presented by all Worth Financial. You'reon fifty five KRC. We are the talk station