The 3 Threats to Your Retirement Income

None

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 ken and will be different, please
consider this when exercising any options givenby our guests. It's time to get
your retirement plan in order. Welcometo the Empowered Retirement Show with Pete Simbolac

(00:21):
and Nick Toman CFP. Reach outto the Empowered Financial Team now at six
oh eight two one two seventy threehundred, or visit their website EMPOWEREDFM dot
com. Now here's your host,Pete Simblac and Nick Tomy. Welcome back
everybody on this. I don't knowif I should say. It's a fall
crisp Saturday morning, a little bitof rain in the air. This is

(00:45):
this is how fall goes. Thisis the Empowered Retirement Radio Show. Pete
Simblac here, Nick Tooman, certifiedFinancial Planner. You can always find us
at six zero eight two one twoseven three zero zero, or you can
go to our website ret hire Madisondot com. Retire Madison dot com.
Nick, how are you this morning? I'm doing well, but summer is

(01:06):
definitely in our rearview mirror. Itis behind this, I don't know.
I'm hoping we get one of thoseIndian summer weeks where it gets to be
So in the fall, do youget in the mood to like watch more
movies or do you know that timechange? It gets darker earlier, so
it gets a little cozy and youget the fireplace going. Maybe you watch
a movie on TV with your wife, or you go to the movie theater.

(01:27):
This is a movie that's a fewyears old, and it's got a
sequel coming up in twenty twenty four. So after winter, I'm I'm excited
about some things in twenty twenty four. But did you watch the movie Dune?
I have not, Pete, soI've got even Sean saying no,
So have you ever read the bookDune? So it's all right, We're

(01:51):
no, It's okay, really,it's it's not hurting me. Have you
ever watched a movie that caused youto go back can read the book?
I'm sure I have. I can'tthink of one, but I'm sure I
have. So for example, MichaelCrichton with Jurassic Park. Okay, saw
the movie, went back, andthen I fell in love with that author.
I mean, I love Michael Crichtonbooks, And why did I want

(02:15):
to go back? I wanted toread the details, right, it was
such an interesting storyline. Recently,I've done that with Dune. So I'm
in book four out of the Duneseries, which is you know, written
by the original author. And itwas because of this big epic movie that
you know they tried to do inthe eighties with Sting and all that on
Sean. You weren't around then,so you probably won't remember that, but

(02:38):
you know this, this epic movieis built on this sci fi world.
You know, I forget the author'sname. It's off not on the top
of my head. I'm sure wecan get that. But here's my point.
I've got an epic movie that nowhas caused me to go back into
the books, and the fact withthe detail that's in the book and the

(03:01):
storyline is so much more robust.But there's so much that a movie just
you can't put it in two tothree hours. You're talking, you know,
thirty forty fifty hours of reading.Well why am I bringing up something
like this when it comes to retirement, because that's what we talk about here,
we talk about retirement. Well,I think most people are watching a

(03:23):
movie that they think is retirement,that you need to go back and read
the book and actually get the details, because for most people, retirement doesn't
play itself out the simple way themovie presents it. There's just a lot
more going on and a lot morehappening. Dune is a big sci fi,

(03:46):
you know, extravaganza saga, kindof like Star Wars. Right,
they've got their own world when itcomes to retirement or other movie genres.
We've got thriller, We've got commonwe've got drama, comedy, drama,
all this kind of stuff. I'mtrying to relate this because the fact is
what we're going to talk about onthe show today is when you get this

(04:09):
big epic saga of retirement ahead ofyou, what people don't realize is this
isn't on Golden Pond necessarily. Thatthere could be some thriller type things in
there. There could be some horrorin there, there could be some comedy
in there, and if we don'tget to the details, we're not going
to get to the ending we're lookingfor. To summarize that, Pete,

(04:30):
there's the twist that turns the unexpected, and that's what we're gonna talk about
We're going to really dig in todayon the three big things that you've got
to look out for in retirement thatwill affect your income. So buckle up,
folks, it should be a greatshow. This is the Empowered Retirement
Radio Show, making your retirement betterthat way, Welcome back, everybody on

(05:08):
a fall Saturday morning. This isthe Empowered Retirement Radio Show. Nick Tooman
and Pete Simbleak here in studio helpingto make your retirement better. You can
reach us at six oh eight twoone two seventy three hundred or visit our
website at Retiremadison dot com. RetireMadison dot com. You know, as

(05:28):
we're in studio today, I wouldremiss if I didn't wish my lovely wife
a happy birthday today. Today isher birthday, so she's twenty five,
twenty five and then some twenty five, yes, but we keep it there
right. So the way to spenda birthday is to help people navigate through
retirement. That's what we're talking abouthere today is you know, some of
those threats, those twists and turnsthat we can expect when we get to

(05:51):
that next part of life. Pete, you know we've worked hard, and
you talked about in that first segmentyou relate it to a novel and having
to go back and rewatch things,and it just doesn't always play out the
way you think it's going to playout. And that's why we're here today
talking about some of those things thatwe would consider potentially threats to retirement.
That it's going to make it soit doesn't play out maybe the way you

(06:13):
think. So just to go back, and you know, while we were
on the break, we were talkingSean and I and you are talking,
and I brought up the fact thatwhen you read the novel, there's things
in the novel you just don't haveenough time to put in the movie.
That's right, but they're super superimportant to the storyline and how did you
really get here from here? Andsometimes the movie doesn't cover it. And

(06:35):
that's our typical vision of retirement wherewe get this kind of you know,
forty thousand foot view where we're justlooking at the overall thing. But the
reality is when you see something gowrong and somebody doesn't end well in retirement,
meaning not just because of health,but their finances have struggles. It

(06:57):
didn't just happen at that time,it happened along way. How did we
get there? Well, in thatnovel you can expand on that plot and
now you understand why. Whereas inthat movie you just get a synopsis,
You get a snapshot, and thedanger is to have the expectation in your
life just off of that snapshot,when the reality is there's a whole lot

(07:17):
of detail that goes into it.That's exactly right, because every move you
make, Pete, or every moveyou don't make, everything you do affects
every other thing that happens down theroad. So we live in a give
me it now society, instant gratification. But what happens when you prepare the
right way Sometimes the things you door don't do or avoid show up four

(07:40):
or five years later and we wantit now. And that's where that mindset
of being in retirement comes into plan. That's what we're talking about. So
Nick, let's dig into this right, Like I kind of teased everybody at
the end, right, there's goingto be at least three different what do
I want to say, dangers threatsthat are to your retirement income. That

(08:03):
again, if you're just looking atthat forty thousand foot view, you might
not catch this. So ahead ofthis, folks, we're going to talk
about, of course, your threatto income from the markets. We're going
to talk about the threat to yourincome from healthcare, and we'll talk a
little bit about the threat to yourincome from taxation. And those are going
to be the three things that we'rereally going to hone in on as we

(08:26):
go through this. That again,forty thousand foot view. You know,
oh, how did we get here? Well, this is how we got
here. You know, when itcomes to the markets, of course,
the last year or two, youknow, everybody kind of feels it.
Everybody's you know, stretched, andeven if you had some recovery this year,
right, the markets have done somerecovery this year, it doesn't feel
like it. No, it hasn'tfelt like it for many people, Pete,

(08:50):
because the recovery that we've seen thisyear has been very narrow in scope.
It's been very narrow, so youmay have not felt it as much
as you thought. You know,it's out there. We hear it on
the news, what a good firstsix months it has been. But I
don't think everybody has felt the joyas much as they felt the pain over
the last year. Prior to thatpet well, and so how the market's

(09:11):
upset the apple cart when it comesto retirement income. Well, of course
one of the obvious things. Bythe way, I'm going to insert this
too. Remember this week they didCPI Consumer Price Index and it was higher
than expected. And so that's oneway that's going to whittle away at your
your wallet is and inflation goes up. And by the way, income was

(09:33):
down. So you think about ifyou're getting less income but the cost of
living is getting more expensive, we'regoing backwards. Well, that happens in
the market as well, and weuse the terms, you know, sequence
of returns as far as you knowwhen the good years versus bad years happened.
But no matter what, when youare taking money, when you're using

(09:54):
the traditional four percent rule, saytraditional as if it's been around for fifty
years, folks, it's been aroundsince the early nineties. People in our
world bought it hook line and sinker, and they have bought into the fact
that you have a million dollars,you could take forty thousand dollars a year
outcome hacker high water, and you'regoing to be just fine. Thirty years

(10:16):
out. You're going to make moremoney. Blah blah blah. It may
or may not happen, depending onwhen the returns come in and when the
bad years come in. If youare at a million dollars and the market
dropped twenty percent and so now you'redown to eight hundred thousand and you're still
taking that forty thousand a year,you put yourself at a lot of risk.

(10:39):
You have to ask those pete whydo people buy into that? And
I had this conversation this week withsomebody. I asked them because their advisor
had talked about that. And theconclusion that I came away with is that
up until twenty twenty two, peete, for the better part of about twelve
years, the returns in their portfoliohad exceeded ten to eleven percent on average.
They were doing well, and itdidn't occur to them that maybe this

(11:01):
isn't what was going to happen inperpetuity with their money. And it was
easy to look at that gain everyyear and say, Okay, I'm going
to take my gain and I'm goingto be okay, and this is how
retirement's going to be. And nowreality sets in. These people are approaching
retirement next year and given what's happenedin the last eighteen months and the uncertainty
and just the unsettledness that they feel, they are now really worried that what

(11:24):
if that doesn't continue like that,because that's what I was taught, that's
what the person I work was saidwas okay to do. And again,
this is just addressing this issue hadon That's what we're talking about. That
is what we're talking about. Inthe market. Two thousand and eight nine
had a fifty percent drop if youwere going into retirement at that time,
So many people delayed retirement, theywent back to work. A lot of

(11:46):
things people also do is just spendno money, right, They kind of
turtle up. They live off theirSocial security maybe so security and a pension,
but they don't live off the restof their money, or they even
borrow to try to get through thatscenario. And folks, we're saying you
need to have a different mindset goingforward if you want to secure your retirement

(12:07):
and secure your income in retirement withoutthe threats of markets like we're going through
today or worse what we went throughin two thousand and eight nine. By
the way, go back to twothousand to two thousand and three. That's
right, right, and that wasanother fifty percent drop over a several year
period of time. Nothing says thatthis won't be How do you protect yourself,

(12:28):
Well, you separate your money,right, you have purpose for your
money. Yep, some of thatmoney is going to be dedicated not only
for income, but some of that'sgoing to be dedicated for long term wealth
accumulation. So there is a differencein the type that you can still have.
You can still have money in themarket, just don't take your income
from that money. That's right,because again there's that sequence of returns risk

(12:48):
that comes into play if that's howyou're going to do it. And so
that's the problem going forward, folks, is if you don't have that right
mindset and you just don't think aboutand you commingle all your money into one
pot and say that's going to befor growth, it's going to be for
income, it's going to be forhealth care. That's the dangers and that's
the mindset we have to change.So I'm going to reiterate this. The
way you protect your income in retirementfrom the market is to not take your

(13:11):
income directly from the market. Doyou hear that, folks, there are
other tools. By the way,what's that old adage our mom told us,
don't have all your eggs in onebasket. A lot of people have
told us that, right, Well, when it's in the market, guess
what, that's one basket. People, there's one basket a lot of eggs.
We think it's one basket. It'sone basket. So it's really important

(13:33):
for us to separate and have morethan one basket. That is why annuities
are so popular. That is whywe use things like private equity, or
some people use real estate, somepeople use structured notes. There's partnerships,
limited partnerships, There's all sorts ofplaces to go outside the market. Some
carry more risks than others. Thefact of the matter is, if you

(13:56):
want to have consistent income, movethat money to a place that is designed
to give you consistent income. Whetherthe market's are opper, whether the markets
are down. And we're not sayingdon't participate in the market now, we're
saying, don't have your income participatein the market. Yep. So you're
obviously tuning in today and you wantto learn about this, and if you're

(14:18):
listening today, you're probably within afew years of retirement. Many of our
listeners have retired over the last coupleof years. But if you don't have
a strategy that's designed this way,and you're just getting to the point where
you need to change that mindset,and this is resonating with you. You're
listening to this and you're saying,listen, I don't want to be at
the mercy the ebbs and flows ofthe market. Maybe the best thing to
do is give us a call sixeight two one two seventy three hundred and

(14:41):
schedule some time to meet with oneof our advisors and talk about these things.
Talk about how well you feel aboutmoving into another part of life,
moving into that preservation and distribution partof life. Right, it's that golden
years. It is a completely differentright. You're climbing mount ever set you
go up, now you got tocome down. You actually use different tools

(15:03):
going up and down. Climbing amountain like that exactly retirements similar, it's
the same thing. So call ustoday if you'd like to schedule a one
hour it's a complimentary time with oneof our advisors. Mean free. That
does mean free to come in overa cup of coffee and we sit down
and we talk through these things andwe figure out if how we help people
prepare is what you need and whatyou want. It's that simple. We

(15:24):
get to know each other, Welearn a little bit about each other.
What we do, we share withyou how we do it. We find
out if you're at that point inlife where we can add value to your
life. We get in the sandboxwith you. And if at the end
of that meeting we want to keepdiving a little bit deeper, we can
do that. But if you wantto schedule a one hour complimentary visit,
you can call us during the showsix oh eight seventy three hundred. Sorry

(15:50):
folks, and you have to leavea message because we are here in studio
on a Saturday, but our staffis off. So if you call us
during the show, just leave yourname, your phone number, and that
you're interested in setting up a complimentarytime with one of our advisors, Pete.
We do this preferably in office we'relocated out in Middleton, but we
will schedule a zoom visit if youneed to do that for scheduling purposes.

(16:11):
So it's a time for us togetherand like I said, at the end
of that visit. We can determineif we want to go deeper. But
I think Pete, it's a goodway to start that process to get that
mindset shift going. And if you'rewithin three to five years of retirement,
recently retired, or I would addsome of the folks come in after or
they're getting ready to sell a business. A lot of business owners that are

(16:32):
getting ready to sell, So thatchange in life is coming and we're here
to help. I think it's reallyimportant for people to take advantage of the
software. It's super important to geta second opinion on what you've done and
where you're going. And you cango back to the person you've got your
first opinion from to get your secondopinion. So just to add along with
what Nick said, I think it'ssuper important folks, you've done a good

(16:56):
job saving your money. You've gotthe money set us. Now what,
Well, to most people, right, they're gonna go with the flow,
They're gonna go with the crowd.We're gonna call them sheeple. Now,
I know that kind of has alittle negative connotation or a little cutesy whatever
it may be, But folks,are you gonna go with the crowd and

(17:18):
do what everybody else is doing justbecause that's what they're doing. Most people
are not saver. So if you'rea good saver, you've already gone against
the crowd. You have continue thatmethodology, right, continue that lifestyle,
folks. As we wrap up onthe markets and how they affect your income.
In our next segment, we're gonnatalk about taxes. We're gonna talk

(17:41):
about healthcare. In the last one, we'll talk about taxes coming up next,
how they can affect and how youplan for the future tax increases that
are probably coming along the way.Have you prepared for it? If not,
you've got to come back on theother side of the break. This
is the empower To Radio show wherewe bring your retirement dreams to life.

(18:12):
We're carrying along as you're on yourway to the Badger game, where I
hope you've brought your parka and alittle bit of warm clothing to watch the
game. It's going to be wetand chili and it's too early in the
year to be having a layer upin parkas to watch the band. We
can't really complain. I mean,it's been nice up till now, it
really has. But now we're infull season, full swing. The colors

(18:34):
will be coming in through soon.And we're talking about taxes, right,
I mean, that's what else whatyou want to do on a said,
we got that Wet Badger game andwe've been talking about income. Where if
we go back real quick on thetheme we're talking about, like that movie
you watch that you get that fortythousand foot view, but you read the
novel that that movie was based.I mean, you get all the details

(18:57):
and it's the details that really oftenmake the difference for your success or even
course in that novel. But we'rerelating that back to retirement, and we
often have that forty foot thousand footview as far as retirement, but we
don't necessarily always have those details downthat we need to get some of those

(19:18):
details downs, and we're really attackingthree different areas that are threats to our
retirement income that I think everybody needsto be aware of it. In the
last segment, we talked about threatsto our income through the markets. This
time we want to talk about ourthreats to income through taxation. And Folks,
one of the things that we oftendon't think about as a whole is

(19:42):
that taxes actually are as cheap asthey have been since World War Two,
since before World War Two? Canit continue this way? Thinking about how
cheap taxes are as similar to thinkingabout how cheap money has been. Now
we're just getting used to you seethese increased interest rates, mortgage rates.

(20:03):
It's going to be I think what'son the horizon when it comes to taxes
Because as much as we've enjoyed theselow tax brackets, I don't think they're
going to last in perpetute. Ithink that is going to change. It's
not always the most exciting topic totalk about. Most people want to talk
about the investments and the markets andreturns. But just as important to the
market and the returns that we're goingto see in our portfolio is what's going

(20:26):
to happen tax wise. Because somuch of our money PETE in this country
is tied to accounts that our taxdeferred four to oh one k's I erase
things. People know, they hearthose terms, they use those tools,
and so much that money is goingto be taxed as we get older,
whether we like it or not.People, so what are we talking about
here? Because I mean I thoughtI was going to tax break on that

(20:48):
money I'm putting into my four waitingtrust deferral, pet So what's the difference.
The difference is the tax deferral iswhen you contribute to let's just say
a traditional four oh one K,you get pre to axed, or you
might have money go into your accountor four one K you invested. However,
it's not taxed that year, soit comes off your taxable yearly income,
but it's deferred. So when yougo to withdraw that, so let's

(21:11):
say it's sixty five or seventy,or when you have to take a required
distribution, the money that you putinto the account, plus all the gains
the growth over time, it's taxedas ordinary income, just like you were
working, Pete. So kind ofkind of like this little scenario. Would
you rather be taxed on the seaIf you're a farmer you're planting corn,
right, would you rather get taxedon the seed that you paid for or

(21:33):
would you rather get taxed on theharvest that result from those seeds? Well,
the harvest typically is much larger thanthe seeds race, and so here
we are getting taxed on the harvest. And Nick, what's amazing is often
people don't realize they're going to gettaxed on that money. And what happened
in Pete here's the deal. AndI've had these conversations as well. We've

(21:56):
talked to folks about maybe weaning offof that tax break now and using tools
that are post tax and at theincome out tax free. But we've got
so addicted to getting that tax breakyear after year after year. Sometimes it's
hard to unwind that because we're usedto getting the tax deferral now and to
readjust recalibrate our way of thinking canbe challenging. And that's what we're talking

(22:18):
about here. Strategies that if wemaybe you're a few of some retirement you
still have some time to do somethingabout it is to think through some of
these strategies and options that are availablethat are more tax favorable people. So
some of the mindset that we've gotan offset here that we got to change
is that thought that, well,our income is going to be so much
lower in retirement. Everybody thinks that, right, But is that true or

(22:44):
is that what we want to actuallyhave happened? Do you want to go
from a household income of one hundredthousand dollars when you're working to fifty thousand
dollars when you're not working or sixtythousand. There's a balance in there,
right, Okay, that's true.If it just played out and we're getting
taxed at twelve percent going going out, and we get taxed at ten percent

(23:07):
when we're living in retirement, Okay, we got a little bit of a
break, and that is going tohappen for some people, that's right.
But if you've done a good jobputting away money, let's just say you
got more than five hundred thousand dollarsin there, or a million or two
million dollars put into your irase forone case. Things like that, Folks,
you probably have a tax infestation.You have a problem because you have

(23:30):
enough money that's going to be requiredto be pulled out. Plus you probably
have a bit of a lifestyle thatdo you really want to give it up
just because you're not working anymore.The fact is most people want to spend
money when they're not working. What'sthe most expensive day of the week Saturday?
Saturday? Right, and in retirementevery day is a Saturday. That's

(23:52):
right. I am sure people haveheard that phrase before. Lots of people
use it. It's not common tojust us. The fact of the matter
is every day is Saturday. Youdo want to spend more money, whether
it's you're golfing, you're doing otherhobbies, whatever it is, you spend
more money. That means you're goingto get tax more. Early in retirement,
every day feels like a Saturday.There's stages in retirement that you spend
more. So for many people,we get a chance to talk to their

(24:15):
early retirees, they position themselves atage sixty one sixty two because they want
to go, go, go,They want to do those things like every
day's of Saturday. Do you thinkyou're going to be able to do that
by taking a pay cut to yourbudget? No, of course not.
You want to enjoy life. Soagain, the reality is that for many
people, when you think this through, your taxes aren't going to go down,
especially those first few years. Pete. So, what's the name of

(24:37):
the old The former Comptroller of theUnited States under George Bush, and I
believe he was under Obama a littlebit as well. Walker is his last
name. For some reason, Ijust forget his first name. Anyway,
go look up Comptroller Walker, whichis basically the big CPA for the government.
He said, if things don't changegovernment by twenty thirty, that we're

(25:03):
going to get taxed. The averageperson will get taxed around forty five percent.
Oh my gosh, that was hisestimation to be able to pay for
all the government services, folks.So this is that next, you know,
shoot a drop, so to speak. Is okay. So we've got
most of our money in deferred plans, and now maybe we put it away

(25:26):
at twelve percent or twenty two percent, and we thought we're going to get
if we were put at twenty two. We think we're going to be in
retirement at twelve, and all ofa sudden we find ourselves in retirement at
thirty. What do we do Becausewe're going to pay more in taxation in
the future, to cover Social Security, to cover Medicare, to cover other

(25:48):
frivolous government spending, to cover militaryspending. You just go on and on
and on, not to mention asinterest rates go up, as inflation goes
up, the interest on the debtgoes up. It's right, right,
and we got our government over thirtyone trillion dollars in debt. So the
probability of paying more in taxes canreally really impact your your income in retirement.

(26:14):
Folks, as we wrap up thissegment, we didn't get a chance
to make the offer, So goback and listen to the last segment and
get the offer off of there nowfor real. When we come back on
the other side of this break,we'll make an offer for you to get
a second opinion, for you tomeet with us and take a look and
let's see. Now we've talked aboutthe markets affecting our income. We touched

(26:37):
on just you know, taxes affectingour income. When we come back,
we're going to talk about healthcare becausefolks, we need to know the details
that we need to be prepared sowe can make it through and not just
have that forty thousand foot view.When we come back, we'll make that
offer. This is the Empire RetirementRadio Show, Making your retirement awesome.

(27:08):
Welcome back, everybody, the lastsegment of the Empowered Retirement Radio Show.
This is Nick Toman and Pete Cymbalkhere in studio helping to make your retirement
better. At the end of thelast segment, we didn't have a chance
to make an offer to the folkslistening out there. You know, as
you're listening to the show, today, and anybody who listens on a Saturday
morning again, they're they're anxious tounderstand how to prepare for that next phase

(27:33):
of life. You know, we'vebeen doing this for years. And if
you're just tuning in, right,you're just hearing this part, you gotta
get on. You gotta go backand listen to us on podcasts. That's
we're at a iHeartRadio or at Appleor Spotify and listen to our podcast.
So you go back and listen tothe rest of what we're talking that is
right, and you go to retireMadison dot com too. Ye, there

(27:55):
you go. But what we wantedto do is make sure everybody understood what
the offer is that we've made theshow, and that is for a one
hour complimentary visit with one of ouradvisors at our office out in Middleton to
talk about how prepared you are andmaybe get a second opinion about how prepared
you are to go into retirement becauseagain, what we're talking about here,
we're just covering three big things,right, three dangers, three things that

(28:21):
could really upset that apple cart foryour retirement income. And of course,
in the first segment we really talkedabout the markets and how they can affect.
Then we talked about taxes and ifyou think taxes are going to go
up, just be prepared, right, I mean, so it was David
Walker. We couldn't remember David's firstname. It was David Walker, former
Comptroller of the United States. He'sthe one that says he expects by twenty

(28:44):
thirty taxation to average about forty fivepercent on American citizens. Because we got
to cover that spending, we gotto cover that debt. And then of
course this segment leader a little lateron, we'll talk about healthcare and how
it upsets your income. That's right, that's only three of them. There's
anymore. We're just covering three ofthem today. There's many threats to your
retirement, but we're here to helpmake your retirement better and get you prepared.

(29:06):
So if you'd like that second opinion, you'd like to have that a
starting point, Get the get thejuices flown, as I like to say,
come in for a cup of coffeefor one hour. It's a complimentary
time together with one of our advisors. You can schedule that by calling six
oh eight two one two seventy threehundred. Because it is a Saturday we're
here in studio, our staff isoff. You're just going to leave your
name, your phone number, andthat you're calling to request that time together

(29:30):
and then capable reach back out toyou on Monday to schedule that time over
the next week or so, oryou can go to Retiremadison dot com as
well. But we just encourage giveus a phone call, leave your name,
number, and that you're requesting thattime with one of our advisors will
come in, we'll be we'll getto know you, and if we decide,
Pete, at the end of thatvisit, we want to go deeper
than just again taking that ten thousandfoot view second opinion, we'll do that

(29:52):
as well. So good time spentcoming in. So Pete, let's dive
into this last segment. And youmentioned the third threat to your retirement that
we want to talk about today,after covering threats from the market and taxes,
is healthcare. So you know youthink about like that that old experiment.
Sorry, folks, I'm going touse not a nice one, but
the frog and boiling water. Rightthat if you put them in the water

(30:15):
and you heat it up while thefrog they don't notice it. And I
think that's a lot like the marketthat you know, people are so used
to it, they've used the marketto grow their money. They don't realize
they might be that frog in theboiling water. When it comes to retirement
with taxes, it's again, Idon't I don't think it's the frog in
boiling water, but it's one ofthose things that I think. You don't

(30:37):
think it'll happen to you, that'sright, because well, we're just going
to have such low expenses in retirement, Well how could taxes go up on
It's we're going to get the betterend of that. But when it comes
to healthcare, people don't even wantto talk about they want to think about
it. They rarely want to planfor it. When you do try to
plan for it upfront, it's veryexpensive. It's scary, folks. One

(31:02):
of the reasons why I've not beenhere the last couple of weeks is,
you know, I've been dealing withmy own mother who's who's got dementia and
Alzheimer's, and she's at the endstages of that, and she's in a
you know, she's in a facility. It's it's hard, you know,
to see her in this condition andthis happens to a lot of people,

(31:22):
and it's it's it's a very difficultthing to go through. But if it's
you that's going through in your spouse, right, many people listening right now
they can identify that's right with whatI'm going through right now. It's hard,
it's sad, it's difficult, andit's expensive. Expensive, it's super
expensive. That's right, you know, Pete. Two things that come to

(31:42):
mind as you're talking about your momand just people dealing with this issue.
The first is sometimes we say peoplethink it's not going to happen to them,
but I don't think so. Ithink everybody in the back of their
mind nose at some point they're goingto have to deal with this issue because
they've helped their parents deal with it. The second thing that's very clear to
me and talking to folks and helpingthem navigate the situation, is that when

(32:04):
they come in, it feels sooverwhelming, like where do I even begin
to tackle this issue? And whenwe feel overwhelmed, like anything in life,
we bury our head and we justgo on to something else and we
kick that can down the road.But I got to tell you, when
you understand and educate yourself about whatyou can do to prepare for this risk
and retirement, and you plan theright way. I am telling you that's
the biggest weight off your shoulders.Probably more than anything when it comes to

(32:27):
retirement, I would agree. Imean, it is the elephant in the
room. Is nobody we put it? We again using all these metaphors,
we put our head in the sandlike the ostridge, But it is the
elephant in the room. It's there, it's with us. It's looking over
our shoulder and maybe making noise,rustling stuff. But we don't want to
look at it because it's scary.It is hard, it's difficult, and

(32:49):
you know, one it reminds usof our mortality. It does, right.
I mean, folks, we're allgoing to go the same way.
I mean, we might go differentways, but we're all going to go.
We're all going to pass. We'regonna die. Right, question is
how you do it? And howexpensive is it? And how does that
affect your significant other, your spouse, your loved one, your kids,

(33:09):
whoever may be involved. It's goingto have a big impact. So,
folks, this is kind of oneof those subjects. People again, think
about this scenario for a moment.Let's put our scenarios together for just a
moment. So we have our incomethat we talked about that gets threatened by
the markets. Well, what happensif you have an increase in taxation at

(33:32):
the same time you have a marketcrash at the same time you have a
heart attack or a stroke, andyou end up in a rehab place or
you even have hip search. Right, I mean, that's my mom ended
up in a rehab place that shenever left because of course she's older,

(33:52):
she's eighty seven years old, she'spretty well blind, and well, would
she got an infection, she goesin the hospital, she didn't come out
because she was in the hospital andher leg's atropied, so she really couldn't
walk, and so I mean shejust has been going downhill very quickly from
that point. Well, this iskind of how those double whammys hit.

(34:15):
Well, if you've got a milliondollars and the market's down thirty percent,
now you have seven hundred and allof a sudden, one of you has
to go into a nursing home andyou're out of pocket. Expense can easily
be seven to ten thousand dollars amonth, and it takes a year or
two years before he passed. Imean it's expensive. It's expensive, and

(34:37):
what you're describing here is you're losingflexibility on taking distributions. By that,
what I mean is most people thinkgoing into retirement that when the market has
its ebbs and flows and it's down, they're going to do what they did
when they were twenty thirty, fortyfifty years old, and that's just let
it come back. People sell thetime, well, if the market's down
twenty, I'll just let it recover. But what if you don't have the

(34:58):
choice. If health hits you,which the reality that's what we're talking about,
that's what we're talking about. Youthen do not have the choice anymore
to just let it recover. You'retaking those distributions. And by the way,
you just mentioned a spouse. That'sjust one spouse. Then what happens
to the other spouse? If youhad that perfect storm, you didn't let
it recover, you spent now whatyou saved. Again, we're not here
to scare folks. We're just saying, let's address this because there's ways to

(35:21):
deal with and there are ways todeal with it. That's the whole thing.
And often we think just long termcare insurance is the only way to
address it, or funding it yourself, it's the only way to and by
the way, most people when theyfund it themselves, they're not really funding
it themselves. You have your potof money, you have your net worth,
and you have your assets, andpeople just count it within the asset.

(35:42):
But you're also using that asset totake your trip around the world,
to create your income, to replacea roof on your house right live let
it's it can't all come from thesame money, and you need to separate
that money. We've used that phrasebefore. Separate the money based upon its
purpose. So if you really havea minion and you're taking forty thousand dollars
a year because you're basing your incomeon segment, don't take your income from

(36:07):
the market. So let's segment thatmoney that it's not affected by the market.
Then we want to segment our moneyfor health care, so that money
is not in that big pile thatyou're looking at. Yeah it's still yours,
it's still there, but it couldand it still might be in the
market, but you separate it intoa different pie, so it's not in

(36:28):
the pie you're taking all the othermoney from that's the only way you're going
to know that it's going to bethere when you actually get there. But
then there are other things you cando. There are some annuities with health
care benefits, there are asset basedlong term care, there are some life
insurance policies, there are some VAbenefits that are out there. There are
numerous things that we could attach reversemortgages even that help people control these situations.

(36:55):
And it isn't one answer. It'smore multiple answers. Putting a strategy
together with multiple tools to make itwork. Yeah, that's exactly right.
Is making this doable, understanding whattools are available and then implementing and putting
a plan in place. Pepe,or you can do like the Ostrich put
your head in the sand, hopeit doesn't happen to you. Right,

(37:19):
We don't want to do that,but that's what people do. And the
funny thing is people with money,this is actually the most accessible to them.
You got a million, you gottwo million dollars, you got three
million dollars. They're the people thatwill try to overlook it because they think
they have enough money. But again, these multiple things hit at the same
time. And by the way,if you think they don't hit, there's

(37:39):
many people a hit like this intwo thousand and eight and nine, we've
seen it's right. So folks,take the burden off. You take the
burden off your significant other, yourloved ones. Make it easier for yourself
by planning this out ahead. Byignoring it will not make it go away.
You're looking for a second opinion orjust a place to start, give

(38:01):
us a call today six oh eighttwo one two seventy three hundred, schedule
a one hour complimentary visit and talkthrough some of these things. Healthcare taxes.
We covered a lot of ground today, peep, and there's a lot
of pieces to retirement. And that'swhy we make this offer for folks to
have a starting point. We couldbe that starting point. You know what,
even if you have an advisor rightnow, if you haven't had all
of these these conversations with them,they might not be retirement advisors. There

(38:24):
are specific people to take you throughretirement versus the people that get you there.
Doesn't mean anybody a good person ora bad person. They just have
a different job. Folks, man, this is blazed by fast. This
has gone by really quick and wehave covered a lot of information. This
is super important for you to havethe best retirement possible. You have to

(38:46):
have the best possible plans. Youhave to cover these issues. Do not
put your head in the sand.Deal with them, folks. I hope
you have a great rest of theweekend. Go Bucky in this nasty weather
right. This is the empowered detoymentradio show where we meet your retirement visions
come to life. Have a greatweekend. Investment advisory services offer through Trek

(39:10):
Capital Management, LLC and SEC Registeredinvestment advisor. Information presented is for educational
purposes only and it should not beconsidered specific. Investment advice does not take
into consideration your specific situation and doesnot intend to make an offer or solicitation
for the sale or purchase of anysecurities or investment strategies. Investments involve risk

(39:32):
and are not guaranteed, and pastperformance is no guarantee of future results.
For specific tax advice on any strategy, consults with a qualified tax professional before
implementing any strategy discussed herein