A Tough Conversation About Retirement

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Episode Transcript

(00:00):
The advice given on the following programdoes not necessarily represent the views of iHeartMedia
It's management ten staff. Since individualsituations canon will be different, please consider
this when exercising any options given byour guests. It's time to get your
retirement plan in order. Welcome tothe Empowered Retirement Show with Pete Simbolac and

(00:21):
Nick Tooman CFP. Reach out tothe Empowered Financial Team now at six zero
eight two one two seventy three hundredor visit their website empowered FM dot com.
Now here's your host, Pete Simbolacand Nicktoman. Welcome back everybody on
this beautiful fall morning, this Saturdayfall morning. This is the Empowered Retirement

(00:44):
Radio Show. Pete Simbolac here NickTooman, certified financial planner with Empowered Financial
Management. Our phone number six zeroeight two one two seven three zero zero
and you can also find this onthe web at retire Madison dot com.
Nick, I hope you're doing wellthis morning. I am doing fantastic.
You just said it was a nicefall Saturday morning. You can tell the

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seasons are changing. We've had somewarm weather, some cool weather, just
been crazy. Now it's just likereally nice and mild right for a little
while, for a little while,and I've already been looking at like when
the fall colors are changing, andit looks like we're going to hit peak
for the most part right around thebeginning of or at least up north,
where everybody wants to go up northand watch colors in about a week and

(01:27):
a half, two weeks or so. Certainly a great time of the year,
and it's a great time, andit's always great on Saturday to get
to talk about retirement, helping peopleand how to prepare. And that's what
we're here to talk about, ispreparation for retirement, those that are in
or those that are approaching. AndI think today we're going to have a
you know what, sometimes we havea really fun program. Sometimes we have

(01:49):
a hard hitting program. Sometimes it'sa tough program because sometimes we talk about
subjects that not everybody wants to talkabout. And folks, this is one
of those programs that we're going tohit some tough topics, topics that people
aren't always super excited to talk about, things like long term care and things

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we can do about that potential.And of course we all know it'll never
happen to us. Right, that'sright. When it comes to being ready
for this time of life or forthe next part of life, Pete,
it's about having the right conversations andtackling the right strategies. It's easy to
bury our head in the sand sometimesand just think that our money is going
to carry us through without planning.Well, sometimes we have to have the

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right conversations and they include tough conversationtough topics. But once you plan correctly
and you have those conversations, boy, it feels so much better. And
the decisions you mean today will affectyou twenty years down the road. And
that's not often easy for people tograsp and hold on to or embrace.
But the truth is, you doproper planning today, twenty years down the

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road, life's going to happen.And by the way, we hope people
don't need long term care or assistedliving or things like that, but the
odds are against you. The oddsare about seventy percent of people are going
to need some sort of assisted living, long term care, something like that.

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And if you plan correctly and younever need it, like you said,
maybe you're fortunate and that's not you. But if you plan correctly as
you live through retirement, you justhave that sense or that calmness about,
Okay, if it does happen,I'm prepared, my family is prepared.
If it never does, you're stillgoing to have an amazing retirement. Absolutely.
By the way, we also wantto talk about not just long term

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care and healthcare related things like that, but we do want to talk a
little bit. We're going to havean economic update. We have not done
that for a while, and wejust see some you know, some heavy
waves, right those hurricanes come through. We're gonna we're gonna talk about trying
not to get too big of astorm surge in here in Wisconsin. But

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then we also want to talk aboutsome legacy planning. So again, these
are not always fun conversations, butI think they're essential conversations, and we'll
do our best to make it aslighthearted as we can. But folks,
in all frankness, right, itjust these are heavy subjects. So on
the other side of the break,we'll start off with an economic update,
some things that we see coming,things I think people need to be prepared

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for. And if we're wrong andit passes by, then all right,
you are a little bit of preparedand nothing bad happened. But if you're
not prepared and these things do come, it could have a large impact on
your retirement. So buckle up,folks. This should be a great show.
This is the Empowered Retirement Radio Showwhere we bring your retirement visions to

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life. I'm stealing enough. Welcomeback, everybody on a fall Saturday morning.
This is the Empowered Retirement Radio Showin studio, Nicktoman and Pete Simbolac

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here helping to make your retirement better. If you'd like to connect with our
team, call us at six Oeight two one two seven three zero zero
or visit our website. You cango to retire Madison dot com. Retire
Madison dot com and Pete. Aswe've been doing over the last couple of
months, we continue to add resourcesthings that you can check out on the

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website. Blogs tools a great resourceto check out at some point, so
visit retire Madison dot com. SoPete, let's start out the show.
Let's start out this segment with aneconomic update. We haven't done this for
a while. We were just talkingbefore the show. It's been a while
since we've done an economic update,but given all that has happened, not
this over the past year, buteven the past week or so, with

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what the Federal Reserve said and thestate of the economy and interest rates.
A lot going on and a lotto just be mindful of as we head
towards the end of twenty two.You know. The best way I would
describe this as interesting, right,I mean, it's just been fascinating to
watch before and after what the Fedsays, and what the Fed does as

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far as raising interest rates, holdingit, and what the verbiage is.
Prior to going into this previous week. Nick, we wake up Monday morning
and overnight there's this glitch on thetreasuries where ten year treasury goes up six
percent, Australian ten year goes upsix well a little bit more, and

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oh it's just a glitch, andall of a sudden it comes back down.
Okay, it's just a glitch.Now I am being a little contrarian
and a little conspiratorial, if Ican use these words, and actually I
maybe I'm using that word too loosely, because these are just things that they're
not going to talk about in thefinancial rags or the financial ra shows.
These are kind of things behind thescenes that they probably should talk about,

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but they don't. So we startoff the week with that, and then
of course everybody's waiting on the FEDand they don't even realize. You know.
For example, one of the conversationsI've had with people this week that's
going on financially that nobody wants totalk about is the fact that JP Morgan
is on the hook for eight hundredbillion dollars of credit default swaps. Eight

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hundred billion dollars. Well, ifyou ask the average person, the average
pre retiree, they would not knowthat. They would probably not understand that
and how impactful that can be herein the months ahead. Pete, here's
the scary part. I would sayanybody, I'm not going to go into
detail on what credit default swaps are, go look them up. But JP
Morgan is the number one deposit holderin the United States. They got to

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come up with the money for this. Where is it going to come from?
So the Federal Reserve, very stronglyin their language, said that they
aren't going to lower their holdings,They're going to shrink their books. While
number one, you got eight hundredbillion dollars knocking on the door in a

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bank that's probably considered too big tofail, how are they going to because
I don't think I'm guessing that jJP Morgan does not have eight hundred billion
dollars to pay those credit to faultswaps. So what is to be determined
and kind of that murkiness out thereis how is that going to affect or

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rattle the stock market in the monthsa head? And we were talking about
this before the show. There's justso much unknown, but people need to
be aware and have their guard up, and that's why it's so important to
again think through this a little bitand not just bury your head in the
sand, because this is just notout there in the common everyday news.
Now, the Federal Reserve has saidin their in their language that they don't

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expect really the expectation for the nextrate cut would be September of twenty twenty
six now, but that is differentthan what people have thought throughout this year.
There was talk at the beginning oftwenty twenty three that by the fourth
quarter we would see the first oftwo or three rate cuts going into than
the middle of twenty twenty four.And now that that goalpost, so to

(09:07):
speak, has been moved back,yeah, six months, seven months.
And even look at interest rates.I mean he doesn't even have to raise
interest rates. Powell doesn't have toraise interest rates when the interest rates go
up on their own. I mean, look at how significantly they go up
Thursday and Friday. Now why doesthis matter? Well, because this sounds
like a credit crisis, to bequite frank, And how does that affect

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the stock market, which is whereeverybody's at And the answer is, we
don't know, but it sure doesn'tlook good. And nobody's talking about this.
I mean, this is a big, hairy black cloud with lightning and
thunder and wind and hail, andit's coming at us now it could go
another direction, who knows, Butnobody's even talking about it. Pete.

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I think the reason people aren't talkingabout it is because of what you just
said. I don't think most peopleunderstand, even the experts understand what the
impact is going to be on thestock market. And when you don't know
and you're not familiar with something,or you don't have a strong opinion,
it's just kind of out there andunknown, you just let it pass,
you sweep in under the rug,and you go on to a different talking

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point. So that's one of thereads. I believe people are not focusing
on it because they just don't understandwhat the impact is going to be.
Well, let's just say this,folks. The impact is not pretty right
if the government doesn't bail these placesout. And by the way, I
mean there's been banks failing getting bailedout in the meantime, and again it
doesn't make headline news. There's alot of obligations out there that this government,

(10:41):
the Federal Reserve are going to beresponsible for. And if they're trying
to tighten and they have to holdinterest rates higher and inflation stays in that
range, right, inflation kind ofas I mean, obviously, that's why
the Fed tries to do what they'retrying to do. What's that called That's
called stagflation, and that's a terribleplace to be in an economic scenario.

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People who are definitely in the lowerrungs of income or poverty are going to
get really hard. But what peopledon't realize is that middle class gets crunched
really hard during these times. Sothat our word, right, I mean,
they keep pushing recession down the roadover and over, and I have
no idea, and they keep changingeven the definition of what a recession is.

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But a shift feels like one,it feels like when. And I
think that has confused people because youhit it on the head. Throughout the
past thirteen fourteen months, the rword recession, it's been predicted anywhere from
we were going to have one inthe first quarter to summer, and the
goal goal post excuse me, keepsmoving depending on who you talk to or
you listen to them. By theway, with a twenty four seven news

(11:52):
cycle and so many outlets, everybodyhas their opinion, but the consensus was
pete by most. We were goingto see a recession at some point point
this year. We haven't, Butare we going to have one? We're
not going to have one. It'sjust confusing to people, and it's confusing
everybody. It's confusing everybody. Andthere's a difference between being prepared and just
putting your head in the sand andhoping this passes without affecting you. So

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when we talk about recession, someof the key indicators of a recession coming
our interest rates being inverted. Ourtwo year is much higher, paying out
much more five percent. And I'mjust using round number because it's changing daily
about five percent. And then ourten year, which should be paying out
more than a two years only atabout four point four, which actually that's

(12:37):
going out pretty dramatically. But here'sanother place. People need to look at
utilities in the S and P.Five hundred. You need to look at
the inversion there, folks, lookat that everything is out there that tells
us a recession is ahead. Ithasn't happened. Right for the last year
we've been saying it's there and ithasn't happened. So, you know,

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we look like the boy who criedWolf's right. But folks, if you
are you know, if you're thirtyfive years old, this you know,
so what it's in the wind,no big deal. But if you're within
five years of retirement, six years, two years you just retired, this
is where it has its largest impact. Folks. If we go back to

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two thousand to two thousand and three, right when the market was down for
three years in a row, ifyou retired in two thousand and started with
drawing money from your portfolio, youactually, over the last twenty thirty forty
years you were probably in the mostrisky position out of anybody at that time.

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What I'm fearful of is another elongatedjust kind of rocky. I know
the markets have been up this year. I get it right, there's a
rally. Is this a bear marketrally? Is this a bowl market?
Has it started a new bull market? Lots of debate out there. All
the data says, oh, thisis a bear market. It acts a
lot like a bear market. Atthe same time, it could be a

(14:03):
bowl market. It could be.When I hear that what's happened this year,
it feels like some empty calories.We've had a rally, but it
feels like it's empty calories. Whenyou actually lift up the hood and you
look at the data, you kindof shake your head and saying, how
have we gotten to this point?But in twenty twelve it was this way
right where it really struggled. Itprobably should have gone backwards. Twenty thirteen,
all of sudden the market was upthirty two percent. So there's a

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lot of unknown I mean, we'resaying, you know, we've been talking
recession for a while and it's stillkind of hanging out there. They're doing
a great job kicking the key anddown the road, and employment has been
stronger than expected for longer, butit is starting to show its weaknesses now.
So even with the government numbers,so we know they're manipulated. So

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we'll see. Are we saying wewant a recession. By the way,
a recession is a normal part ofa market cycle. You get through the
bad stuff, gets what you canget onto the good stuff, and at
least for a while, put thebad stuff behind you. So we would
love get through these nasty kind oftimes. And yes, the market has
been up. You and I werelooking at a fund earlier today that you

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know, it's still down twenty percent. In fact, it's down about twenty
eight percent from it's high from theend of twenty twenty one. So when
we went into this and it's asixty forty, I mean, that's what
it is. It's sixty forty mutualfund. It's hard, right. The
indexes are doing real well, sixor seven stocks that are pushing everything.

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If you're in a certain sweet spottemporarily you're making a lot of money.
Most people are not. It's beena place to struggle. We'd like to
see us get over this hunts,right, that's what we're talking about,
folks, That's what we're talking about. So if you're listening and Pete,
if you're within five years of retirement, you just recently retired, maybe you
sold a business, and you don'thave a specific strategy to deal with the

(15:52):
bad times as well as the goodtimes, call us today and schedule a
time to meet with one of ouradvisors for one or complimentary visit. Chance
for us to share with you howwe help people prepare to have an amazing
retirement. Whether it's a good timea bad time in the market, it's
just to have a plan and astrategy. So we're offering this visit for
anybody who calls us during our showat six eight two one two seven three

(16:17):
zero zero. Remember, folks,if you're calling to schedule that time together,
Pete, our staff is off onthe weekend, so you'd leave your
name and number requesting that time thatwe get on the calendar together. It's
a one hour complimentary visit for usto get to know you and for you
to get to know us. Youcan also go to retire Madison dot com

(16:37):
as well if you like to scheduleonline. But Pete, I'm telling you
it's more important now than ever Ithink for people within three to five years
of retirement to address some of theseissues head on and have a little bit
more certainty in their life. Andthat's what we're offering to the folks who
are listening today. Ultimately, thatis our message why we're talking about this
economic updeat the way we are isthis has probably been the most un certain

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of times since two thousand eight andnine. It is right, it really
is, and there is just thisblack wall that's really hard to see,
and some are choosing to go allright, we're in back in a bowl
market, and then you've got alot of other people that are very confused.
It is really hard to read thefinancial tea leaves. So if you

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are close to retirement, you needsome strategies, you need some planning to
actually get through times like this.Won't always be like this, but it's
like this now, folks. Whenwe come back, I'm going to make
a little adjustment to what we're doingbefore we talk about maybe some of the
healthcare issues. We'll talk a fewminutes on some strategies and how to diversify

(17:41):
to protect you or even thrive ina market like this. This is the
Empower Timement Radio Show, making yourretirement better leave the last baby. Hey
everybody, this is the Empowered Retimementradio show Pizza but Lack Here. Nick

(18:04):
Toman, Certified Financial Planner, talkingall Things Retirement six or eight two one
two seventy three hundred and our websiteat retire Madison dot com. And by
the way, we are over onthe west side over at Greenway Station,
easy to find. Just a headsup. It looks like at the end
of the year we will be movingjust down the road a little ways onto

(18:27):
nursery drive. More on that aswe get closer in December. But we're
excited about that. I'm excited aboutthat page. That's going to be a
good move and I think it's goingto be just as convenient for the clients
that we serve and a good opportunityfor all. It'll be a little different.
We'll be in a standalone building asopposed to in a you know,

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surrounded by glass, and maybe wecan put your picture out front, a
banner of you out there, andwe want people to come. Right.
We're teaching retirement classes again, andthat's always my joke. You know why
I'm not on TV. They seeme and now they know. But we're
on radio. That's got to faceme for real. That's it. We're
having a good time talking about ourhelp you prepare in some tough times.

(19:10):
A lot of uncertainty in the monthsahead, Pizza, let's keep with that
theme. You know, we weretalking in the last segment. We talked
about a little bit of an economicupting and a lot of the uncertainty that's
out there. And you know,I don't want to leave folks hanging where
we want to talk about healthcare andlegacy planning and things like that, but
I do want to get this bitin there, and that is, how
do you going into retirement? Howdo you prepare for those potential tough times?

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You know, when you're thirty fiveyears old. I mean they're comment
about the thirty five year old,all right, you don't have to listen
so much to the warnings that we'retalking about or the concerns. But if
you're within five years, certainly fiveyears or you just retired, this is
this is super super important for youto understand. When you're thirty five years
old, you might be really aggressiveand you start to lower your risk as

(20:02):
you approach retirement, as you should, or at least most people should.
How do you actually coordinate and lowerthe risk for retirement. It's not just
in the market, it's also goingoutside the market as well, right right,
it's creating baskets in and outside themarket in the retirement course. PEAT.
The other day, you brought updiversification and use that phrase don't put

(20:26):
all your eggs in one basket,which most people have heard of. They've
parents have told them that for years. Don't put it all in them in
basket. The problem comes when peoplethink they're properly diversified by just having different
types of holding stocks, bonds,small caps, large caps within the market.
They think they're diversified. But asyou rightfully point out, that's just
one basket. So the solution,PEAT is to create other baskets in different

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areas that maybe aren't so correlated anddon't work in lockstep with each other in
the right doses, so to speak, for your specific situation. So in
other words, buying more stocks orbonds or mutual funds or ETFs, that's
still one. They're just more eggs, that's right, And they still usually
are too correlated together. So whenthe market goes way up, they usually

(21:15):
all go way up and if themarket goes way down, they usually all
go way down, not always,but most often, and so it's still
just one basket. So it's aboutfiguring out what other baskets are available to
you, what you should be usingto be properly prepared and diversified in and
outside the market. And there areother baskets, this is my point.
Some of them are easy, someof them are obvious. Whether it's a

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CD and banking, whether it's anannuity and life insurance in the insurance world,
whether it's investment income from a realestate owned property right, whether it's
private equity, limited partnerships. Imean, there's multiple ways to go outside
the market. Structured notes, that'sright, kind of a real popular thing

(21:59):
around the world. The US hasn'tquite caught on, but it's a tool
we use, right, it's insideand outside the market. But Pete,
why is it? Why do youthink that people get so caught up with
even advisors sticking within the market justfor their diversifications, that's right, that's
all. I don't know. Andwhen you don't know, you just stick
to what you're comfortable with, soyou think you're diversified, A properly prepared

(22:23):
but it's about educating yourself, understandingone pete how these tools work and how
they fit, and then using themproperly in the right amounts for your situation.
I would use a term go toit like a football term or maybe
even a baseball term or sports.Right, you're giving yourself the best opportunity,
the best chance, the best percentage, the best odds to win.

(22:47):
You do that by I mean,have you ever gone to Vegas and played,
or or even a local you know, casino and played I'm forgetting what
it's called now, no not letthe craps craps? Then to you?
There we go. Have you everplayed craps before? I have not known,
So, I mean there's multiple waysto do this, but there are.

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You're looking at the odds of thecombinations of how that number can be
rolled. So, for example,seven is the number that you don't want
typically, right, Why is that? Because there's the most combinations to get
a seven out of those two dicethan any other number. Then you have
six and eight are the next bestnumbers odds right, the most combinations.

(23:36):
So when you see people bet,the most common numbers you see people bet
on are sixes and eights and thenyou go to seven or to nins and
fives. Right, it's just logicalbecause it's the amount of combinations you can
get, all right, So ifyou're at a craps table and you're rolling
the dice, you put typically yourmoney on the highest potential for that combination

(24:00):
to be ruled most options. Therewe go. That's what we're doing,
is we're kind of stradded. Maybethat was a bad that's an example,
but I mean that's what we're doingwhen we diversify, not just in the
market. Yes, we want diversificationin the market. Still one basket,
we need three baskets, we needfour baskets, we need five baskets.

(24:22):
That's the whole thing. And thenand they act differently their fireworks they go
different directions at different times, andthen that's how you get you know,
you just shoot up one and it'sloud and okay, great, but then
you get the one the flowers andone that's doing a palm tree over here,
and the other one's exploding ooh andoz come out of the crowd.
Why Because the fireworks are going alldifferent directions and it's big and it's loud

(24:47):
and it's bright. And it's prettythat's what you want your truck to look
like when you actually have your investmentslaid out there. And I can't stress
enough, Pete. And it soundssimple, and we say this every week,
but everybody basket is going to lookvery significantly different. So just because
your body at the water cooler decidesto put all their eggs in the investment

(25:07):
basket, and then somebody else decided, well, I don't want to be
in the market, I don't participate, I'm gonna be in the insurance basket.
So to speak, your basket lookscompletely different than your neighbors, your
co workers, your family. Iknow it sounds simple, but we get
caught up in just following the herdgeneralities. And that's where you get into

(25:27):
that danger zone when you just followthe herd and you just do you follow
generalities, Pete, I do thinkthat's when you're get in the danger zone.
And I'm gonna say this and I'mgonna wrap up this segment on the
air, and that is number one. Also, as you're listening to people,
you listen to us. If weever sound so lopsided that we show
you one investment, one investment basket, only run. Yes, right,

(25:48):
that's for me. That's a liability. That's something to run away from.
Something you should run too is pickingup the phone and giving us a call.
We're giving away complimentary visit. Thisvisit is really simple. Let's get
to know each other. Are wethe right fit for you to help you
through retirement? Are you the rightfit for us for us to help you

(26:10):
through retirement? So we're offering acomplimentary visit that lasts about an hour,
hour and fifteen minutes where we gettogether and discuss these things, where the
only decision we're going to make iswhether we're going to go to a second
meeting. Folks, it's easy,it's important, and it's a second opinion.
Six zero eight to one two seventhree zero zero six zero eight to

(26:33):
one two seventy three hundred. Giveus a call today, leave a message.
We will call you back on Monday. Staff is off today. But
it's so important to make sure you'resuper well diversified in this crazy world.
When we come back, we willtalk about healthcare and legacy and we're just
going to get it all in justone segment. Love, right, Yeah,

(26:57):
that's not kind enough to come back. Everybody here we are in the
last segment of the Empowered Retirement radioshow, Nick Tooman and Pete Simbolack here
is always on a Saturday morning,trying to make your retirement better. Pete,
we've covered a lot of ground inthe show and we have a good

(27:18):
final segment. And you know,in that last segment we had talked about
again just some of the solutions andways to think through retirement when it comes
to diversification and separating your money intodifferent baskets. And we're gonna pivot a
little bit. Let's talk about acouple topics, maybe not always the fun
topics to talk about, but theright conversations to think through and to address.

(27:41):
And that is what happens to maybeyour estate when you've passed away,
and how do you prepare. Andthen also that elephant in the room,
and that's healthcare and what happens ofhealth really strikes maybe during the middle of
an amazing retirement. You know,at the end of the last segment we
talked about diversification, we're talking aboutmarket and how you handle some of the
uncertainties that are out there, butthat also bleeds over to things like taxes,

(28:07):
healthcare, legacy, planning things likethat, and people don't realize that,
Yeah, having a diversified plan,even within healthcare, that's right,
makes a huge difference. People don'thave a tendency to think about it that
way. But this is one ofthose subjects that people don't want to talk
about, but we have to,and the decisions we make when we're fifty
five, sixty sixty five really havean enormous impact on us when we're seventy

(28:33):
eighty five, ninety. And peopledon't want to play that out. It's
hard. It's you're playing the longgame now, right, Well, we
played the long game when we putour money away in our four one keys
and four old roebs and those kindof things. Now we got to play
another long game we do if wewant to have what we would call a
successful retirement. You know, sooften people don't realize that when you don't

(28:57):
cover healthcare up front, you're puttingthe rest of your investments potentially, you
know, you're putting them in avice. It's right to have that potential
for them to get squeezed in avery negative way at a time you don't
want it to have happen, that'sright. So when you're preparing for potentially
a health situation to have an impactin your retirement. The visual I use

(29:18):
is I try to tell folks,let's put a wall around your portfolio.
Let's put a line of defense sothat if it happens at the wrong time,
the perfect storm hits where we havea twenty percent drop in the market
and health hits at the same time, and we got to leverage that portfolio,
that could be devastating. It coulddrain your wealth very quickly. I
mean, let's just say you're eightyyears old and you've got a million dollars,

(29:41):
so you're feeling pretty good, right, Maybe you're taking thirty or forty
or fifty thousand dollars a year outof that. Probably at eighty years old,
you're probably taking fifty thousand or moredollars out and all of a sudden,
right at two thousand and eight comesalong and you're down thirty percent,
thirty five percent, So now yougot six fifty, but you're taking fifty

(30:03):
and oh, by the way,one of you, the spouse is significant
others whatever term we want to use, ends up in a healthcare situation,
and maybe there's a few extra billsthat go along now right now, I
mean just here in Dane County,it's going to cost you around or a
little over one hundred thousand dollars peryear for a health facility. We're dealing
with that with my mom down inAlabama at this point, and I mean

(30:26):
it's expensive. It's hard to find. By the way, even Medicare Medicaid
facilities are getting very, very expensive. We're talking sixty thousand dollars a month.
So here we are, fifteen yearsdown the road. How much more
is that going to be? Sohere you have six hundred and fifty thousand
dollars, and if we didn't dothe planning right, we're at a million

(30:47):
market crashes. We go into ahealthcare facility and we might lose one hundred
and fifty to two hundred thousand dollarsjust to that. How does your money
recover? Well, what if itjust goes for one year? Oh,
let's say two years, right,and now all of a sudden, we
were at six fifty. Over thenext two years, we're gonna lose let's
just say another two hundred thousand dollars. I'm trying to be generous. We're

(31:11):
at four hundred and fifty thousand dollars. Can you still take that fifty thousand
dollars a year out? That's thequestion you have to ask because most people
think, as they have been taught, just let it recover. So when
we've done retirement courses and we bringup this topic, what quite often happens
is people will say, well,if the market loses money, I'm in
it for the long game, pizza, I just let it recover. Well,

(31:32):
that's thinking when you're twenty five,thirty five, and forty five,
where you have time and health isn'tgoing to be in play as much as
it is when you're sixty five andseventy years old. But Nick, I
was just reading I was just readingan article the other day that told me,
and it was actually put out byGoldman Sachs, that well, you
have to live under your standard ofliving because of these kind of scenarios that

(31:55):
are going to come. So you'veworked all your life, that's what they're
telling you. You've made all theseplans when you're sixty five, seventy grandkids,
family, second home, snowbirds,and now you're gonna cut back.
You've deferred your pleasure for forty years. Yeah. But that's what they're telling
you that you have to do toavoid these kind of scenarios. They're literally
talking about it. I forget thename of the article, I've got it

(32:16):
on my computer. I can alwaysuh, you know, bring it up
or put it up there somewhere.But the concept is, folks, we
gotta be better prepared early on.We got to deal with these and we
know of at least six or sevendifferent ways to deal with this. Right
we talked about diversification. There areannuities that can't help you with this.

(32:37):
There are obviously long term care policiesthat can help you with this. There
are certain life insurance policies that canhelp you with this. Some people have
reverse mortgages to cover things like this. There's cash value in life insurance.
There are you if you dedicate andput money away, you're gonna self fund.

(32:57):
Don't allow that to be part ofthe pool of money that you're pulling
for inc from. So quite oftenwhat happens is we just listed five or
six different things. Quite often,what we try to figure out it's like
a puzzle. Try to figure outwhat combination of things at the right amounts
are appropriate for you. So you'renot just relying on your investments, or
you're not just going out and buyinga long term care policy that has the
potential of increasing premiums every year.That is what this is all about.

(33:22):
It's figuring out a strategy with thetools out there, and that's what we're
here to help with. So ifyou're out there, you're listening to the
show, and as we've said throughout, if you're going to retire within five
years, maybe you're going to sellyour business. You've been a long time
business owner and you're going to selland you don't know what's next and you
want to be prepared. Or maybePete, you retired last year and this
is just overwhelming, or maybe youjust haven't had a conversation where people talk

(33:44):
to you about all the diverse thingsthat you can actually use, put together
and have quite a plan. Wedon't want this to be overwhelming. This
is a starting point. We're offeringyou a starting point in that is a
one hour to one and a halfhour complementary visit with one of our advisors
to start talking about these things,to start figuring out how prepared you are
so that when the storm hits andif it never hits great, but if

(34:07):
the storm hits in your life,that you are prepared. We're offering a
one hour visit with an an advisor, either in person out in Middleton.
We're located in Greenway Station or viazoom, and you can schedule that time
together by calling six eight two onetwo seven three zero zero requesting a visit.
Now it's a Saturday and our staffis off, so when you call

(34:28):
us to request that time together,Pete, you need to leave a message
and then we're going to call youback on Tuesday. But as you've mentioned
throughout the show, that time together, the only decision we make when we're
together is if we feel there's enoughthere to go to a second visit where
we dive deeper into That's where theynot the first visit. The first visit,
literally, Pete, is over acup of coffee. You get to

(34:51):
learn about us, how we bestserve people at this stage in their life,
and we get to understand you.Do we like each other, do
we think we could work together?And then if we want to take next
step, a deeper dive together,we will do that. Six oh eight
two one two seven three zero zero. Give us a call today, we'll
call you back on Monday. Folks. We're going to now change directions a

(35:12):
little bit because, hey, wefit some of this tough stuff into a
shorter period of time and maybe it'sa little easier for people to swallow.
But you know, we talk inour planning system. We have at least
six pillars, right, we havethe income pillar, we have the investment
pillar, the tax pillar, thehealthcare pillar, legacy pillar, and then
of course the foditionary pillar. Wehave all those put together. It's how

(35:35):
to eat an elephant, right,one by at a time. How do
you put a plan together? Webreak it down systematically so people can see
it. Then we follow this systemas we go through planning with people together.
And of course, now that leavesus with that last pillar, well
not the fodiiary part, but thelast strategic pillar, so to speak,
which would be how do you dealwith legacy planning which includes bills, trust,

(36:00):
probate, how you know your kids? It's interesting, folks. People
are always amazed when I give themthis statistic, but you know how long
the average inheritance lasts seventeen months,That is the longest at lasts on average.

(36:21):
So you know, now you're gone. Maybe you don't care what your
kids put their money into or whoeveryou're leaving their money to. But I
think most people get a little disgustedwhen they think about all they put into
the planning and the work and thesaving and the deferring of their pleasure to
find that at only lasts seventeen months. Because people don't know how to handle
the money. You can actually controlthese situations from the grave through proper planning.

(36:47):
That's exactly right, even for peopleif you're out there thinking, you
know what, Pete, my kidsget what they get when I pass away,
to so be it. But there'sso much more to think about,
because even if you plan correct andyou think I'm just going to live my
life and whatever's left is left,there's still the element if you don't prepare,
Pete, of somebody having to dealwith just the administration of in a

(37:10):
state that you leave, and youwant to be prepared. Even if you're
just going to spend that money andenjoy life to the fullest and your kids
get whatever's left over, there's somany parts of a state planning that you
need to think through to give youthat peace of mind that you're not just
going to leave this for somebody elseto clean up when you're gone. You
know. For example, again let'sgo back to kids. What if you

(37:31):
have a well one special needs,Right, that's an obvious one right there.
But what about if you have onechild that's really good with their money
and another child that's not good withtheir money? Well, is it fair
actually to them? Let's say youhave a million dollars and you give them
both a half a million dollars.One we gone in seventeen months. One
will last for a long long time. Well, what if you decided the

(37:53):
one that you know it's going tobe gone in seventeen months, that you
put a trust together that they getthat money over time so as to where
they learn how to manage that money. It's just another simple example. I
think of you as a relatively newgrandfather. People I've had discussions over the
last year want to customize distributions tograndchildren, and that also plays a part

(38:15):
two is being very customized and specificand again helping them work through an inheritance
as well. Folks, does itopen the door? Does it gets you?
You know, the water juice isflowing. Hey, this is creative
stuff that we need to do aboutthings we don't want to talk about,
folks. This is the kind ofplanning you need to do to bring your

(38:37):
retirement visions to life, not justin the first five years or ten years,
but for twenty and twenty five andthirty years, or however long you
live, or for that matter,however long your posterity lives. Folks.
This stuff is so important, It'sreally important. And we're going to wrap
this up, folks. This hasbeen the Empowered retirement radio show, making

(38:58):
your retirement dreams come to life.Have a gree weekend. Investment advisory services
offered through Track Capital Management, LLCand SEC Registered Investment Advisor. Information presented
is for educational purposes only and itshould not be considered specific Investment advice.
Does not take into consideration your specificsituation, and does not intend to make

(39:21):
an offer or solicitation for the saleor purchase of any securities or investment strategies.
Investments involved risk and are not guaranteed, and past performance is no guarantee
of future results. For specific taxadvice on any strategy, consults with a
qualified tax professional before implementing any strategydiscussed here In