Take the Fear Out of 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 and 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 Toman CFP. Reach out tothe Empowered Financial Team now at six zero
eight two one two seventy three hundredor visit their website EMPOWEREDPM dot com.
Now here's your host, Pete Simbolacand Nick Tooman. Welcome back everybody to
this awesome Saturday afternoon. Pete's andblack here and Nick Toman, certified financial

(00:45):
planner with Empowered Financial Management over onthe West Side, over in Middleton.
Our phone number six zero eight twoone two seven three zero zero and our
website retire Madison dot com. AndNick, for whatever reason, as I'm
talking about our phone number and youcan give us a call, I thought
about it. You know you mightbe listening to this on our podcast and

(01:06):
it's probably not going to do anygood to call us at midnight right or
even on a Saturday afternoon after abadger win, that's right, But yeah,
exciting Saturday after I'm beautiful Saturday afternoon. Here we are. The year
continues to go by quickly. Italways seems like the summer goes by quickly.
It does. And a little bitlike our topic today, you know,

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I love fall. I love thattransition in the coolness and the beautiful
colors that come along. And Iknow where you're going with this, but
I dread what's right behind it.I dread what's coming behind it, which
is of course winner. And you'veheard me say anytime after Labor Day,
my fears it could snow six inches, and it could, and it could.
It could probably won't, but itcould. And so there's sometimes maybe

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we say irrational fears, they're notnecessarily always rational. We do live in
a place that what averages forty eightinches of snow a year, and I
think for me, it's not asmuch the snow as the cold, and
not as much the cold is howlong it sticks around. It feels like
it sticks it does, right,So from possibly November, December, January,

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February definitely into March, sometimes inApril maybe maybe every once in a
while into me I mean it doesreally kind of hang on and get long,
and we get fearful of it.And sometimes again from me, I
love fall, I love right.You got the football going, even basketball
starts up at the end of fall. There's some really good things that are

(02:35):
going on. But if we focuson some of these things that we dread
we could turtle up. We canactually not enjoy where we're at right now
and what we want to do becausewe're afraid of what could be out there
lurking a cold, saraoh degree weather. Retirement could be the same way.

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Unfortunately, retirement can be the sameway. And if you think about how
hard you work to get to thatpoint in your life, whether you're going
to retire early at age fifty eightor you work until your age seventy,
that next part of your life,those golden years, and it could be
for thirty years, it could befor twenty five years, if you have
grandkids, if you've had plans thatyou've made or dreamed of all your life,

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and then all of a sudden youget to that point and you just
are scared or nervous, or there'sjust the uncertainty of what's next. That's
not how you want to live.It isn't how you let one to live.
And that's what we want to talkabout. We want to talk about
what are those fears that people havein retirement, what is logical, what
is real? And what can youdo about it? Because the fact of

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the matter is there are issues outthere that you need to be aware of.
But most of the time, ifyou know how to deal with them,
all right, they're not going tohit you. But unfortunately, in
today's world, when it comes toretirement planning, it's very It's like in
a silo, and that's silo.It's very narrow focused. We're gonna put

(04:01):
our money into a fifty fifty ora sixty forty. We're gonna be in
the market. We're going to takeour percentage off of it. I think
that thinking by itself leads people.It's like playing in a sandbox with land
mines. That's right. People knowthe land mines are there, but they're
playing in the sandbox. So whatdo they do? They don't spend.

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That's what we're going to talk about, folks. How can we get past
these land mines and give ourselves thebest retirement that we worked for. So
folks, buckle up. This shouldbe a fun one. What are your
fears about retirement? Hopefully we're goingto talk about it. This is the
Empowered Retirement Radio Show, bringing yourretirement visions to life. Welcome back everybody

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on a Saturday afternoon edition of theEmpowered Retirement Radio Show. Nicktoman and Pete
Symbolac working as always to try andmake your retirement better. You can reach
us, folks two different ways sixeight two one two our phone number if
you want to call, or youcan go to our updated website at retire

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Madison dot com. Retire Madison dotcom. I don't know how much longer
I can keep saying updated website,but I'm excited. I was there this
week looking at some of the updateswe made. Pete to our resource section
and it is fantastic. Got someKipling Guard articles. We just got a
lot of good resources that people cango to check out if you go to

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retire Madison dot com. So Iencourage everybody to do that. One thing
I would say about our website,it's really simple. It is simple,
right, and if you want justa simple way to navigate and find information,
it's there. And I think that'spart of the fun. Part.
We've gone through all these iterations andright, you know, we can make
it as complicated and as convoluted aspossible, or we could just make it

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very simple. It's very simple.It's very simple, and it goes along
with the theme of the show.You know, what are people fearful retirement?
And I know a lot of peoplein general, especially older people,
can be fearful of technology and tryingto navigate new technologies and new things.
And so to your point, Pete, we've made that resource very simple,
easy to navigate. So it goesalong with what we're talking about when people

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think about retirement and being scared andbeing nervous or being fearful. So we
want to dive into that and uncoverwhat is it that concerns people as they
get a little bit older. Andwhat we find is, you know,
whether you've got sixty thousand dollars saved, where you have six million dollars saved,
most people still have many of thesame similar fears as they go into

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retirement. And you would you wouldthink, wow, I got six million
dollars put away, what do Ihave to fear? Well, they do
bring their own lifestyle typically together,right, and so they're still worried about
this. So the main thing peoplealways worry about is, well, I
run out of money, right,that's the big thing. And the answer
is for most people, no,you're not going to run out of money,

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but you're afraid you're gonna So itchanges your behavior in retirement. You
know, when you're forty years old, forty five, fifty years old,
and you're thinking about retirement, andyou're thinking, at sixty sixty five,
you got plans, you got bigplans. How we're gonna go here,
we're gonna do this. I'm gonnahunt this, I'm gonna fish this,
we're gonna golf over here, we'regonna see our kids, take them on

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this huge trip. And then whenit comes to retirement, even when we
have the money, the tendency istoo if you do it, do it
once and then it's done. That'sthat one trip. You might have the
resources to do it every three years. Why do we not do it?

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We're afraid? You're afraid. Butwhen you're forty years old, you said,
when you're forty and you're working andyou and you start thinking through all
these dreams that you have and whatyou're going to do when you retire,
it's not necessarily as real. It'sa dream, it's a thought, and
you're working and earning a paycheck.And when you're younger, you just feel
more invincible, whether it comes toyour help, whether you can continue to
work forever, whatever the case is, to collect a check. But as

(08:16):
you approach retirement, then it hitsyou and you have to start preparing and
you have to start creating a retirementfor yourself. But when you were forty,
you were saving money and you weredoing your job. You're you were
so focused maybe on your career oryou were focusing on building a business.
And then when you become sixty sixtyfive, maybe if you're early retiree,

(08:37):
it becomes real and you have toin your head figure out, Okay,
I've made all this money, butif I live for thirty years or thirty
five more years, and I havea spouse, how is it that I'm
not going to run out of money? So, Nick, you and I
see scenarios like this on a regularbasis, where somebody has a lifestyle where
they're spending their money they're making rightthere, they're spending the money they're making,

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and they're in their fifties, andnow they realize that they come in
and meet with us, and maybethey've got one hundred thousand, fifty thousand,
not a lot, not a lot. Now, I want to be
careful because if you you know,seventy thousand or one hundred thousand might be
a lot depending on what your backgroundis. But I'm talking about people that

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you just would think they would havemore put away, and all of a
sudden they come and have this realization, oh crap, I really got to
work at this. Right, Eventhere, there's time. Right, it
might take more time than what youwanted. You might have to work to
seventies or even half a part timejob, but you can do something about

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it. On the flip side,most of the people we see have some
money with half a million dollars,a million dollars, two million, yes,
occasionally that's six million. Those aren'tis obviously it's coming right. But
having a half a million million dollarsto say two million dollars, folks,
there's millionaire next door around you allthe time that you just don't realize.

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They live modest lives, right,They don't spend a ton of money.
They're saving that money. They're thatautomatic millionaire right slot machine. They're just
putting this point in through four ohone ks and iras and thinks they're just
savers. But they still have thosedreams, still have that dream, and
they still have those fears. Howdo we take those fears away? Yeah,

(10:31):
it's having a and we've used theterm over the last couple of years,
having a blueprint for a properly designeddistribution strategy, because you're talking about
putting money away, putting that quarterin the jukebox, so to speak,
every couple of weeks. Well,that is completely different from now starting to
live off of what you created,live off the wealth you've created. And

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we're not taught that in school.We're not taught that standing around the water
cooler. We're not taught that whenwe go to our Christmas parties with our
family, how to properly distribute thatmoney. That's specific to us and our
lifestyles and what we want. Andthat is what planning and preparing is all
about. It's not just investing inwhat you said at the top of the
show, a fifty fifty balanced portfolioand then riding off into the sunset.

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It's taking which you've created and figuringout how then do I make that last
for thirty years. So I'm gonnago back to this thing because you just
said there's a lot in what youjust I'd like to unpackage a little bit
of that, but I'm going togo back to what you just talked about
that fifty fifty sixty forty. Folks, there is an inherent problem with a
fifty fifty sixty forty. I saidin the last segment, it's like playing

(11:39):
in a sandbox with land mines,right, not a fun place to be.
Why is it that way? What'swrong with that thinking? What's wrong
with that thinking is most people whoare playing in that sandbox, Pete,
are I'm gonna say it this way. You're setting up the portfolio, and
maybe you're just setting it and forgettingit, and you're hoping, and hope

(12:01):
is not a strategy. You're hopingthat it performs the way people have probably
taught you to think it's going toperform. Have you ever gone to like
a barbecue or somebody's house and you'vegot this really flimsy looking chair, like
a lawn chair than just you know, it's been through better days. Do
you go sit in that when there'sanother seat that looks nice and strong,

(12:22):
but I've done that before you,right, and then sometimes it falls apart.
Right, We've seen that happen whenyou're in that sandbox. Folks.
That word hope that Nick mentioned,it's not an absolute, it's not a
belief that chair that looks new thatyou could sit in versus the one that
looks old and beat up. Theone that's new, you have confidence when

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you go to sit that it's gonnahold you. But the one that's old
and beat up, you're afraid you'regoing to go right through to the bottom.
All right, Why because it's oldand worn out? Okay, Now,
when it comes back to retirement,why do I keep using this sandbox
and the landmines? Because it's themarket? Do we not know, folks,

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that you can lose money in themarket? Do we not know that
we do? Right? Pardon me? Can you lose all of it?
Can you lose some of it inthe market? You can? Yeah?
Either or right, I mean boththe possibilities. We all know that inherently
we know this, and that thereinlies the fear that we build into our

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distribution plan because we're working in aninherently risky place. So how do you
fix that? How do you correctthat problem? Because folks, you can
have all the money in the world, and if your goal is to give
it all to the kids, great, most people we want to spend that

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money and if something's left over,that's what they'll give to the kids.
But then they never spend anything,so it all goes to the kids anyway,
and they don't spend because they're fearfulbecause they're taking their distribution above their
social security from the market and theyknow the market can crash, they know
the market can go down, andthey're afraid that they're not going to have

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a lifestyle left over, and sothey don't have a lifestyle now that they
could have because they're playing from apolice of risk and they know it.
So you have to then create adistribution plan that isn't associated with that risk.
It's that simple. Now, maybedoing that plan and putting it together

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for you, maybe that's not soeasy, but the concept is easy.
Move your income away from risk andthen and you just have a great conversation
with the clients this week where againit was an aha moment, right because
they're a little fearful, they're lookingat the market going up and down,

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and they're asking this questions and thenall of a sudden they remember up their
structured notes. There's annuities, there'sreal estate in here, there's all certain
things, life insurance. There's lotsof tools that have been employed to make
sure that that income stream is notassociated with the market. What we have
in the market is for growth andfor inheritance and for some big object that

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comes along that they decide, hey, I want to go buy that,
but it's not for income and theyexhale. That's right, Yes, satisfact,
That's exactly how that went, right, folks, this is what we're
talking about. Yeah, this iswhat we're talking about. If you're having
that aha home moment, maybe you'relistening to the show and you're having that
moment right now, and you havenot sat down and at least thought through

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a distribution plan, if it's timeto get your mindset right for a good
retirement, maybe we can help.If you'd like that help, call us
today at six o eight two onetwo and schedule a one hour or to
maybe one and a half hour introductoryvisit with one of our advisors to talk
about what a distribution plan looks likewhat the next part of life is going

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to require you to do so thatyou can stop having these fears, you
can stop staying up at night,and you can spend the way you want
to spend. And you don't likehow you say, you don't turtle up
in retirement and walk through the nextthirty years with hope as a strategy.
If you're at that point where it'stime to put a strategy in place,
call us and see during that onehour visit if what we do is what

(16:32):
you need and if this is whatyou want. It's a visit over a
cup of coffee. It's a chancefor us to get to know each other,
understand what your fears are, whatyou have done well. We spend
a lot of time pe just talkabout what is it you've done well.
You know, maybe you've moved yourfootball eighty yards down the field on your
own and you need twenty more yards. We're talking Packers football season. Sorry
folks, sports analogy, but that'swhat we're talking about. Can we help

(16:53):
you get your ball twenty more yardsdown the field. It's a great hour
spend together. Call us today sixtwo two, and you're gonna have to
leave your name and number because it'son a weekend and our staff is off
on Saturday. Schedule that time,Cababile call you back on Tuesday. So,
folks, there you have it.We've talked about one of the big
fears, and we've actually given youa very good solution. Now, of

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course you got to build that solutionout right. So it's just the start,
folks. As we go into thenext segment of the program, let's
talk about some more fears, thingslike, oh, I don't know health.
How about health? You have somefears about health and living long or
not living long? Good time totalk about it. This is the Empowered

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Retirement Radio Show, Making your retirementAmazing. How appropriate is this song for
this segment? This is the EmpoweredRetirement Radio Show. Symbolack here Nick Toman,

(18:00):
certified financial planner from Empowered Financial Managementover in Middleton. Our number six
zero eight two one two seven threezero zero, or you can reach us
by our website retire madisone dot com. Nick. That song right rocking me
like a hurricane. We're talking aboutfears in retirement. And in the last

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segment, of course, we reallytalked about an income stream or a distribution
plan. The problem or the fearthat people come with is they realize that
they're playing in a sandbox that haslandmines in it. It's the stock market's
right, it's the market, andinherently we know there's risk there. You
could lose all, you could losesome. Obviously, that's why you diversify.

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But there's still that fear. Andso with that market going up and
down, people are pulling income fromit. They really don't live the way
they should live based upon their assetsthat they have, because we're afraid to
spa that's right. Yes we makeit through retirement and we have money,
but we did not live the retirementwe had hoped for. We want to

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help people avoid that. Now wewant to talk about another fear that can
lead us to do a lot ofstrange things. And we could talk about
this in probably five different ways,but health, health and retirement folks,
do you have a healthy lifestyle?Are you healthy going into retirement or are
you afraid of getting sick and therebyit keeps you from living that lifestyle out

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And there's again there's answers to dealingwith the reception. Health life is just
more apt to happen and be morereal and come into play when you get
older. That's just going to happento all of us. And I would
think about this in two ways,Pete. There's the chance that we could
just live a long life, whichthere's the fear of do we live too

(19:55):
long? We got to make ourwealth last a long time. How do
we make our wealth last for thirtyyears? If we work for forty we
gotta make it less. That's onething. The second side of the ledger
is if we pass away too soon, and if we have a spouse and
we have wishes, legacy wishes orretirement wishes that never come to fruition because
we pass away too soon. Whetherit's we have health issues in our family,

(20:18):
maybe things just happen and unexpectedly.It's just as we get older.
A part of life. Whether youlive too long or you die too soon,
it scares people when it comes tohealth. I'm gonna relate this to
health, and I'm gonna I'm gonnaclouse all sorts of arguments and fights around
the water cooler now. But youknow, when you think about so security

(20:40):
timing right, if you have healthissues, you're not probably going to have
a very long life. There mightbe a reason to take social security early,
right, If you need to takesoci security early, that there's nothing
wrong with that. But most peopletake social security early out of fear.
Well, Pete, Nick, it'sgonna take us till we're eighty years old

(21:04):
to break even. If we waituntil sixty seven or seventy or social security
isn't going to be around, thegovernment's going to run out of money.
So I better start taking it nowbecause it won't be there in ten years.
There's the fear that could happen.They actually cause more problems to do
that by doing that. But nonetheless, but here's the thing. Most people

(21:25):
are living to eighty eighty five,eighty seven, right. I mean in
my family, my father had congestiveheart failure in his early sixties. He
is eighty five right now, stillgoing right. Probably would not have thought
of that at the time, thathe would be living this long of a

(21:47):
life. But if you take socialsecurity early, it's most of the time
it's out of fear that you're notgonna make that break even point. Folks,
you might think you're putting one overon the govern by getting more,
but it's really the fear that you'renot going to live long enough to have
it makes sense, So how dowe alleviate that fair? What can we

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do, Pete so that we don'twalk through life second guessing ourselves? And
here's where I would start is,yes, we have to plan and strategize,
but you have to understand, forinstance, what are all the puzzle
pieces you have to work with beforemaking that decision about your social security right,
it could be understanding you know howyou incorporate your pensions, how you
incorporate your investments using those tools likea news Just understanding what tools are there

(22:36):
for you to use, what toolsyou have the ability to use, and
then start putting these things together tomake the best decisions that will help you
stop second guessing yourself and stop creatingall this fearful right. But this is
also why you work with a professionaland you have a detailed plan design specifically
for you, because there is bothends of the stick, so to speak,

(23:00):
and the fact that we do havea tendency to think we're not going
to live as long as we're goingto live, and then on the other
side of it, if we dolive longer than what about health care issues?
Like assisted living, long term care, stuff like that. I have
some folks, for example, oneof the answers is to move into these
progressive senior communities. Do you knowwhat I mean? Right? You go

(23:22):
into it when you're healthy, andas you get older and you need help,
you get the help. And asyou need full on set nursing home,
it's there for you as well.Pretty expensive, really, I mean,
you're gonna take a big chunk ofmoney, You're gonna put it in
there. You're gonna live out yourlife. So I have some some folks
who I know, well, theywent into one of these homes. Everybody

(23:48):
was like eighty years old. Theyweren't ready to hang out with a bunch
of eighty year olds even though they'rein retirement. So what do you do?
Because that's a damger right, there'sa simple answer right here. But
yet it's not always so simple,because are you really ready to go into
a place like that? Oh?Do you do your research and know you

(24:11):
know what the average age is.Maybe you're sixty seven, sixty eight and
you're planning for but maybe you finda situation where the average person and they're
sixty five or seventy now you're goingto have potentially more like minded people.
But these folks that I'm talking about, they're still very active, that's right.
They're traveling, they're taking trips aroundthe world, to Europe, to

(24:33):
I mean, you name it.They're out there doing things. They're out
there being active, that's right.They weren't ready to sit around and watch
movies and play you know, Jigsawpuzzles and Mingo kind of regretting that decision.
Well, and they thinkfully had theability to make change, makes changes.
But for instance, something that's harderto make changes, Pete, when
you make that decision is you weretalking about social security, and when you

(24:56):
decide early, I'm just going totake it out of fear for those re
since it's not going to be around. I'm not going to break even whatever
your fear is. And you makethat decision and realize, maybe years later,
if you had thought through this alittle bit and realize what your options
were and looked at this more intotality, it's hard to unwind once you
make that decision. It is socialsecurity. You know when you're gonna have

(25:17):
that that thought process is when aspouse passes away, because all of a
sudden you could have had the money, especially if you had the resources to
cover you between sixty two and seventyor sixty two and sixty seven, if
you had the resources to do it. You know, when somebody passes away,
you're you're married, right, yoursignificant other your spouse, and you're
married, you get to keep thehire of the two so securities. Well,

(25:41):
how much more beneficial would that havebeen when you're eighty years old to
have a social security that was basedon seventy age seventy versus sixty two because
remember that forward tirement age. Youthink of that as one or a right,
right that's full you You're only gettingseventy six, seventy six percent of

(26:02):
that one versus one hundred and thirtytwo when you go to seventy. I
hope that makes sense, folks,They're both ends of the spectrum. Nick,
this is such a big subject.I think we should carry this subject
into the next segment so that wecan continue to talk about it because we're
talking about some of the problems.We're talking Hopefully we're getting you, we're

(26:23):
being thought provoking, we're getting youto think this through. But this is
so important in these are subjects thatnobody wants to talk about. Well,
we'll include the state planning in thisas well. On the other side of
the break, so folks, don'tgo away. We'll also we can offer
in the next segment, don't goaway. This is fantastic news for you

(26:44):
that there are answers for these butyou gotta be aware. Now this is
the Empowered Retirement Radio Show. We'llbe right back with your fears taken away.

(27:06):
Welcome back, everybody. Here weare the last segment of the Empowered
Retirement Radio Show. Nick Tooman,An Pete Simbolack either big hair music,
dude with our big well big hairmusic, not actually big hair, not
you for sure, and not memuch anymore. And Sean no, not
you either. But we're having agood time here on a Saturday morning or

(27:26):
Saturday afternoon. I'm used to sayingSaturday morn is a Saturday afternoon, having
a good time here, trying totake away some of those fears as you
prepare for retirement. Or maybe you'relistening and you retired, you were a
successful business owner a few years ago, and you're hearing us talk through some
of these things. A successful businessowner right now, right now and you're
just thinking about what life is goingto look like in three, four,

(27:48):
five years. We're talking through someof those things, those real topics,
These are real conversations, real thoughtsthat you should be having. We're here
to help. So if you needto reach us, call us at six
O eight two one two seventy three, visit empowered or retire madisine dot com.
Retire madisine dot com. So Pete, let's finish up. And we
were talking about in that last segmentthings that we can do to take away

(28:11):
some of that stress and that worry. Yep, So we talked about just
to recap very quickly. In earliersegments, we talked about the fact that
people don't spend all their money andthey're very proud that they made it through
retirement without running out of money.But if you did a good job saving
and you didn't run out of money, but you didn't live the retirement you
wanted to because you have this fearthat you're going to run out of money.

(28:34):
There are answers having a strategic distributionplan that moves you for your income
outside the market various ways, butoutside the market because playing in the market
for your income it's like playing ina sandbox with land mines. That's right.
You know you wouldn't put your childin there, and you wouldn't do

(28:56):
it yourself. Yet we're trained todo it. Why because that's what we're
trained to do. We'll go intothat. That's another program in itself.
Right Number two. When it comesto other fears, we're afraid of health.
Right, we might die too soon, we might live too long.

(29:17):
We make mistakes on our social securitytiming based upon fear. We often move
into retirement homes too early, orwe don't have a plan at all,
which we really didn't get into atalk about, or what happens when you
lose a spouse too soon? Right, And so these are health fears that
are real, and we haven't gotteninto the answers on that. But there's

(29:41):
others too that even include like yourwills and trust and things like that that,
folks, we need to talk aboutthese subjects that nobody wants to talk
about. Why, because it makesit real, and that that that fear
of talking about it and making itreal actually alleviates the fear. But because

(30:02):
we don't want to talk about it, we live with it. And these
things for most of our lives,and we had this discussion before the show,
Pete. So when we're so consumedwith being successful in running a business
or careers, these dreams we haveabout retirement, these hard conversations aren't necessarily
real in our mind until we're sixtyyears old, sixty five years old,

(30:22):
and health has to be a topicwe talk about. If you're married,
what happens to my spouse, Ifsomething happens to me and I take care
of all our money, that isreal, and the fear of half sitting
down and having these discussions, it'shard for a lot. It's like giving
a speech, Pete. When you'reready to give a speech, you're nervous,
but once you do it and youdo a good job, it's like

(30:45):
that you exhale and that breath.And so what we're trying to help people
understand is be proactive, address someof these issues head on, and you'll
be able to exhale. What's amazingis if you put a distribution plan together
and you include security timing in there, you get to maybe killed two birds
with one stone, because if youdo a proper distribution plan that includes social

(31:11):
security, you're going to have anunderstanding of the danger or a damage you
could do by taking Social Security atthe wrong time. Because when you do
a distribution plan, you don't justdo it for the first five years.
You might segment, right, wehave folks that we segment times, we
do laddering and things like that.But what we're doing when you're sixty,

(31:32):
we're also going to have to planout what you're doing when you're eating.
Some of it's a natural flow,and we're looking at that when it happens.
But if we choose sixty two forsocial Security and somebody dies when they're
seventy five and all of a sudden, oops, we find out that was
a mistake, Yeah, we're notgoing to be too happy with that.
We've got a plan incorporate that intothat distribution plan, and that can help

(31:57):
alleviate some of that. Things likelife insurance. Right, we're told over
and over Dave Ramsey, Right,he's got I don't know. Last I
heard it was like twenty six milliondollars of life insurance on himself. We'll
wait a minute. Dave Ramsey tellseverybody to get rid of your life insurance
as soon as your debts and obligationsare gone, oh, that's not what
he did. Now, admittedly,most people probably don't have all the money

(32:22):
that Dave Ramsey has, So doesthat make him a hypocrite? Not necessarily.
He's in a different scenario where Ifind that it might be hypocrite.
Is he tells everybody get ready together, right. The truth is, you
use life insurance wealthy people. Richpeople use the leverage of life insurance all
the time in their estate planning,to protect a spouse, to protect states,

(32:45):
to protect taxes, all sorts ofreasons to write that money comes tax
free, right, right, that'sa big help. If you die when
you're seventy five years old and youdon't have life insurance, how does it
help your spouse out? That's right, it doesn't. But if you had
three hundred and five hundred thousand dollars, it makes an enormous difference. And

(33:09):
you're mentioning when you pass away andinheritance things like that. Some of the
worst things that people can inherit,whether your spouse or your children, are
things like I RAS money that hasdeferred taxes built in, because when people
inherit the money, there's more rules, restrictions, tax issues will get into
on a later show that can bein play. Whereas you mentioned life insurance,

(33:34):
and I'm going to steal your phrase, the Swiss army knife of financial
tools out there. You're inside themarket with your money out Wall Street.
You're outside the market with things likelife insurance, which has multiple benefits.
But it's people get fearful of notunderstanding how these tools work and being educated
properly, so then they shy away. So they should be leaning into them
absolutely, So lean into your Swissarmy knife. Right there, you go,

(33:57):
jack of all trades. You canget income potentially from a life insurance
policy. You can get healthcare protectionand a life insurance policy. They're going
to call it chronic illness as opposedto long term care, and there are
some differences. But you can getliving benefits from your death benefit. You
don't have to die to use yourlife insurance policy. There often can be

(34:22):
good cash value inside that can bean asset for purchases or for income streams.
I just have to jump in here, Pete. I had to remind
somebody this week of how we've usedlife insurance years ago, and it was
almost kind of on the back burnerwhen they thought about the next few years.
And I reminded, remember that isa resource, something that we can

(34:42):
use and lean into. And itwas that, Oh yeah, that's right.
I like that, and let's goand revisit how we can use it.
And I'm gonna say this, folks, we're not product pushers. No
no, no, no, sooh you're talking about life insurance. It's
strategies there, it's where you are. Does it make sense to fit in
inside the market outside? Right?Again, that's sandbox. That's sandbox that

(35:05):
has land mines in it. That'sthe stock market, right, that's our
traditional thinking. Why do I saythat? Well, when we talk about
diversification, Nick and I Caleb two, we're going to talk about diversification inside
and outside the stock market. WhyBecause the stock market is one basket.

(35:27):
You have a lot of eggs init. Even if you have a small
cap or a mid cap or alarge cap stock, it's still one It's
still all in one basket. That'sright, isn't that old axiom? Don't
have all your eggs in one basket, But if you spread them around,
people feel the versified. Or butthat's all it is. It's still one
basket, is all right? Weneed seven baskets or six baskets or five

(35:47):
baskets inside and outside the market,including real estate, maybe private equity,
insurance products, bank products, structuredNo, there's all sorts of things that
you can do to actually merge togetherto be really well diversified. But we're

(36:07):
taught, and this is again wherefear comes in. We're taught to rely
on one thing, and yeah,that's a component. Nothing wrong with being
in the stock market. There is, in our opinions, something wrong when
you're only in the stock market,in the bond market, and when you're
outside the market and you're into six, seven, eight of those different tools

(36:30):
that make up your retirement. Ican't stress enough that looks so different from
family to family, person to person, So be careful when you're around the
water cooler and somebody's talking about theirtools and their strategies. Yes, there
could be some good thoughts, andmost people are family include have good intentions.
They're trying to help us. Butthis is such a customized discussion that
it's hard and I'm always leteral ofgiving generic advice and you have to have

(36:52):
the discussion. Yes, folks,this is how we alleviate the fear the
way you alleviate the fears. Youhave a proper plan that has been put
together specifically for you that includes allof these areas. That's what takes the
fear out. Do you have it? Is it written down? Can you
put it away in a safe andpull it back out? Is it on

(37:15):
a disk driver? Whatever? Doyou have a full plan? Folks?
If you don't, if you wantto alleviate the fear at least at this
point, if you're still with us, right long badger game and now with
us, I would really recommend togive us a call and leave a message.
Our number is six zero eight twoone two seven three zero zero.

(37:37):
Give us a call, leave amessage with your information. Caleb'll give you
a callback on Monday. And here'sthe thing. You want to set up
a visit with us. Let's talkfor an hour, hour and a half
and let's get to know you alittle bit. What have you done to
alleviate these fears? What have youdone to make sure you have the kind
of retirement you're dreaming about? Whodo you want to work with? Who

(38:00):
wants to work with you? Youknow? I mean it's a dance point
being is all we need is onevisit to decide whether we want to go
to a second visit, and thenfrom there, that's when you really dig
into the deep stuff. Six zeroeight two one two seventy three hundred.
Give us a call, leave amessage. We'll call you back. Folks,

(38:21):
it's time to get a second opinion. You cannot get your second opinion
from the people you got the firstopinion from. We could be that second
opinion for you. Nick, wewe're out of time. This always goes
quick right, it wraps up.But folks, has this been beneficial to
you? I think it's been beneficialto me. I know it's been beneficial
for Sean. Folks. This isthe Empowered at Timement Radio Show. We

(38:43):
look forward to seeing you again nextweek. Have a great weekend. Investment
advisory services offer through Trek Capital Management, LLC and SEC Registered Investment Advisor.
Information presented is for educational purposes only. In its not be considered specific.
Investment advice, does not take intoconsideration your specific situation, and does not

(39:06):
intend to make an offer or solicitationfor the sale or purchase of any securities
or investment strategies. Investments involve riskand are not guaranteed, and past performance
is no guarantee of future results.For specific tax advice on any strategy,
consults with a qualified tax professional beforeimplementing any strategy discussed here in