The Three 'P's or Retirement

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Episode Transcript

(00:00):
The advice given on the following programdoes not necessarily represent the views of iHeartMedia,
its management and staff. Since individualsituations canon 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 Nicktoma and

(00:22):
Caleb Simbola. Reach out to theEmpowered Financial Team now at six eight two
one two seventy three hundred, orif visit their website empowered FM dot com.
Now here's your host, Nicktoma andCaleb Simbolac. Happy Saturday, everybody.
This is the Empowered Retirement Radio Show, Nicktoman and Caleb Simbolac here in

(00:45):
studio, trying to make your retirementbetter folks. If you're listening to the
show and want to get in contactwith us, you can do that two
ways. One of two ways.Call us at six o eight two one
two seven three zero zero, oryou can visit our website at retire Madison
dot com. Retire Madison dot com. There's always a ton of good resources.

(01:06):
We're going to be talking about someof those resources on our website as
we go today. I think wehave a great show planned here on a
post holiday weekend edition. Yeah.So how are you doing, Caleb Nick?
I'm doing good. I'm doing reallygood. And you know we were
talking about a little bit before,right, the holiday landing on a Tuesday
is kind of weird because most peopletake Monday off and then you got the
holiday on Tuesday. Some people takeWednesday off. It's like interesting week,

(01:29):
yes, but a good week nonetheless. It is a good week. But
you're right, and when the holidayfalls in the middle of a week,
it does feel a little bit discombobulated. But we don't want our listeners to
feel discombobulated, especially when it comesto preparing for retirement, that next part
of life. And that's why wedo this every Saturday, is to talk
about how to properly prepare and getready for that next phase. Love,

(01:51):
and I was thinking over the holidayweekend, we were celebrating the country's independence.
Yeah, and we took that longfor day block of time and celebrate
and got out with friends and family. But I want to talk today about
another independence, and that is financialindependence. Yeah, and more specifically retirement
independence. So when you have retirementindependence, you feel very free and very

(02:15):
liberated, right, and so that'sgoing to be the theme of the show
as we go. Yeah. Absolutely, And for the folks listening, when
it comes to independence, you know, we'll get into the knitty gritty of
it and we're gonna be talking aboutthree piece. It's gonna be the three
piece of retirement planning, so likeyou know, philosophy, planning, and
then process. But independence, right, Like independence means you're not inherently tied

(02:38):
to one thing. You're not youknow, you're not. Your retirement isn't
based on the ebbs and flows ofthe market, right, You're not like,
you know, held at the leashin the market or maybe other financial
tools as well. That's a goodpoint. I think they're when we define
independence or we talk about what thatfeels like for people that have retired,
that's exactly right. It's that feelingof not being beholden to a good day

(03:02):
in the market or a good year. And of course we want to see
the market turn for the better,but having that proper blueprint and preparing the
right way, and we're going totalk about this in our show is so
much different than just saving money.Yeah, and if anybody out there's listen
to our show, especially the pastsix months, we've talked over and over

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and over about some of the keydrivers in retirement, creating income, not
relying on the ebbs and flows ofthe market, things that go into a
proper retirement blueprint. So we're goingto build on that today as we go
throughout the show. Yeah, andyou know, there's such a big difference
from the accumulation stage in life inwhich you are working, putting money into
your your nest egg IRA for onek, etc. And then you get

(03:46):
to retirement and the distribution process lookscompletely different, distribution and preservation, right.
And not only does it look differentthan the accumulation phase in made different
ways, but it looks very differentdepending on each person's scenario. Right.
So it's not just and be asober bullet. Here's a general financial rule
that's going to give you independence.Right, It's going to be a lot
more immersive, a lot more strategic, and a lot more tailored to your

(04:09):
specific situation. And even though itis more specific and more tailored and it
is immersive, you use that word, we don't want it to feel overwhelming
or intimidating, because when we havefeelings that are overwhelming, when it comes
to this topic, what do then? Most people do They get paralyzed and
don't do anything, and that's notwhat we want. So we want to

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take this step by step, brickby brick, and we're gonna talk about
things get you thinking. If you'rewithin three to five years of retirement,
or maybe you've recently retired and you'vetaken on that responsibility yourself to prepare and
now it's just feeling overwhelming and youwant that guidance. We're gonna hopefully give
you some things to think about movingforward. But that's why we do this

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every Saturday. We're here to makeyour retirement better. And again this is
a post holiday edition, so we'regoing to focus on your financial or retirement
independence moving forward. Folks join uson the other side. We got a
great show plan. This is NickTooman and Caleb Simbolac here to make your
retirement fantastic. Welcome back everybody tothe Empowered Retirement Radio Show. This is

(05:21):
Caleb Simbolac here with Nicktoman CFP,as always to make your retirement better.
You can reach us at six Oeight two one two seventy three hundred,
or you can go online to ourwebsite at retire Madison dot com. So
Nick, we teed it up.We're going to be talking about primarily the
three p's to a happy retirement,and we're gonna be leaning really heavily off

(05:42):
of an article that you wrote forKiplinger Magazine newsletter. Folks, if you're
interested, and you know, maybeif you're re listening to this and you're
not in the car, you canactually find this article and move along through
it with us. On our website, you'll see on the top bar there's
kind of like a blog thing youcan click on and you'll be able to
find all of Nick's most recent articlesthere, so you can always use that
as a resource and follow along withus as well. So the three piece

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to a happy retirement that we're goingto be really working through and just really
dissecting, it's going to be philosophy, planning, and process. So obviously
we will start with philosophy first.Philosophy and planning and process those things.
Maybe it seems a little bit chineric, but we're going to dive into each
of those, and again, Ithink what you're going to take away is

(06:27):
a different way to approach retirement preparation. But here's the thing, Caleb,
the reason I wrote about this topic, and by the way, the folks
had kipling Are said over the weekendthat this was probably one of their most
popular articles over the last few weeksthat people have viewed. Because what's on
the mind of folks when you getto that next stage of life. And
the four universal questions that we findthat people want answers to are when can

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I actually retire? Will I haveenough to do that, will my wealth
last the whole retirement the rest ofmy life? And if I'm married or
have a partner, will they beokay if something happens to me. Yeah.
So when I was thinking about atopic to address, I thought about
those four questions, and the wayto even begin tackling the answer to that
is to come up with a specificretirement blueprint. But as we said in

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the first segment, it can feelintimidating, can feel overwhelming. So we're
going to break this down and we'regoing to talk about why it's important to
stick to those three ps. Solet's start kind of that ten thousand foot
view of this topic with those threep's, and we want people to think
about as you're listening, your ownsituation and what you've done to this point.
So see if this resonates as wego. Yeah. Absolutely, And

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we kind of mentioned in the firstsegment is that there is a big just
mindset change going from the accumulation stagein life where you guys have been working
to get to the promised land,to get to retirement. You know,
you're just putting money in your nestegg IRA four one K and saving money
so that you'll be able to liveoff of that when you get to retirement.
And there is a big mindset shiftfrom that accumulation to press avation stage.

(08:01):
And when it comes to philosophy ofretirement. The great thing about retirement
and you know it's going to betailored to you, and so you need
to know what you want going intoretirement. Right, what do you want
your financial life to look like?Right? What do you want to do
in retirement? Do you want totravel? Do you maybe just want to
save and preserve and leave money forthe kids? Right? Do you want
to spoil your grandkids? Whatever itmight be? Right, Even the core

(08:24):
philosophy of what you want to doin retirement and how you want to purpose
your money, it's going to havea really big impact when you get into
the later stages of actually putting theplan together. When you describe it that
way, that is so important.It resonates so much with me because I
think about the chances I've had overthe last three four five years to talk
to people early on when they startthinking of that mindset shift, they make

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that change in their mind they gofrom being good savers and good stewards to
understanding what goes into preserving and distributingthem and growing there well. But it's
those emotional things that maybe they haven'tspent the time thinking about what do they
want their money to do, Whetherit is grandkids, whether it is travel,
whether it is hobbies or starting anotherbusiness, or just being retired and

(09:09):
not having a schedule, whatever itis, the bottom line is philosophically,
retirement and having a strategy for thenext twenty five thirtiars of your life is
not just about having a four ohone K account or an investment account.
Yeah, let me put it thisway. It's like when we try to
get healthy, and you've ever heardsomebody say you can't exercise a bad diet.

(09:31):
We think we're going to the gym, but we're not eating right,
We're not sleeping, right, Sogoing to the gym isn't going to solve
all our problems. Just putting moneyinto your four oh one K, your
ira A, your brokerage accounts,your life in turns policies, and not
having a coordinated approach to any ofthis is the same thing. You're not
going to outsave a poor retirement strategy. Right. And one line that I

(09:52):
like to eat used in the articlein the first paragraph, you asked a
question. And the reason I bringthis up is because so many people today
are very their investment only retirees,right, And so I like this question
that you pose where you asked,will you continue to have an investment only
focus? Right? Because typically andpeople are accumulating, they're just putting money
away in their nesting, you know, delaying the tax implications and that letting

(10:15):
that grow. But you asked,so will you continue to have to an
investment only focus where happiness in retirementwill be dependent primarily on positive market returns.
And a lot of people, youknow, we see it all the
time. They I don't think theyunderstand the implications of this, because I
mean a lot of retirement and peaceof mind comes from just you know,
security and your finances. Right,So if you're going with the ebbs and

(10:37):
flows in the market, that's justnot a fun way to spend your retirement,
regardless of you know, even thelongevity implications maybe runs for money,
it's that you just don't have peaceof mind and you're kind of working off
of commission. And I don't thinka lot of people take in the emotional
aspects for retirement and how it's like, Okay, sure you can be investment
only know that you're you could probablybe okay, and you know, maybe

(10:58):
the markets down, you're just goingto cut all your spending, But are
you going to have peace of mind? Are you going to be emotionally happy?
Right if the market is down,and so really preparing and making sure
that you know, you're not leaningtoo heavily on one thing, but also
prioritizing and being you know, I'mactually going to be happy. That's a
situation retirement, regardless of what's goingon around us. That is absolutely right,

(11:18):
And the reality of it is mostpeople have gravitated towards that focus or
that approach. I think, Caleb, because of what has happened prior to
twenty twenty two in the market.And again, if you've listened to the
show for any length of time,you've heard me talk about this, that
we've fallen into that false sense ofsecurity prior to last year, when other

(11:39):
than twenty eighteen and twenty fifteen,where the market was down just a bit,
not a lot, but it wasdown a little bit. But other
than those two years, we've hadsuch positive returns in the market, many
years, double digit returns, thatit has forced people into complacency, I
believe, thinking that in perpetuity,this is what they're going to see.

(12:00):
Yeah, so let's think about this. If you have a million dollars and
you every year are making eight,nine, ten percent, and then the
bad years you might be flat oreven, and then you go back to
making thirteen, fourteen, fifteen percent, that can lull you into that false
sense that you have a retirement plan, you can live off your earnings and
quote unquote live happily ever after,right, And I think prior to last

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year, that's what happens. Sowhat we're talking about I don't think resonated
as much as it does now afterwe went through twenty twenty two, and
even though the market has rallied thefirst half of the year. I think
the consensus is we're still skating onthin ice. It's a it's a very
thin house of cards, as Ilike to say, given the data that's

(12:41):
out there right now that we haveto deal with the second half of twenty
twenty three, right and you know, just kind of briefly touching on this
rally in the first month. It'salso just such a unique time, rightcause
it's probably maybe the six biggest stocksin the market and then are propping it
up, right. You got Let'scray a, Google, Meta, all
those big conglomerates that are just reallyprop up the market. But anyways,

(13:01):
so when it comes to the philosophyof it, all, right, do
you want to be an investment onlyretiree, How do you want to preserve
your money, What do you wantto preserve it for, How do you
want to distribute it? You wantto travel earlier on in life? Do
you want to travel maybe five tenyears into retirement. Do you want to
focus more on hobbies? All ofthat comes into plan. So, folks,
when you're really sitting down and youwant to start to begin to retirement

(13:22):
plan, figure out what you wantto do what do you want to do
in retirement and then build the planaround it. And maybe as you're listening
to the show, this is startingto get you to think, Okay,
you know I'm in that retirement redzone that two to three years of retirement,
or as I sat at the topof the show, maybe you've retired
a few years ago, but youjust feel like that next step to actually

(13:46):
prepare a customize retirement plan and strategyis just overwhelming. If that's you,
then lean into us, lean intoour expertise. We're retirement planning specials.
That's what we do, folks.So we help people think through that next
part of like what that's going tolook like, how to approach this a
little bit differently. So if you'venot done that, or you just want

(14:07):
a second opinion on what you've done, call us today and schedule a time
to meet with one of our advisors. That visit is complimentary. We'll meet
at our offices out in Greenway Stationin Middleton, or we can do it
via zoom. But that get togetheris a chance for you to share with
one of our advisors what you've doneto this, but what you feel comfortable

(14:28):
about, what you feel uncertain aboutwhat keeps you up at night, what
makes interview just to begin the processto get some more clarity into your retirement.
If that's you, call us todaysix eight two one two seventy three
hundred or go to our website atretire Madison dot com and request that visit
scheduled that time with us. Now, when you call on the weekend,
our staff is off, So Caleb, you're going to call the folks back

(14:52):
on Monday to schedule that time.And that time together is basically a cup
of coffee with one of us.It very casual. I tell people there
isn't a lot of preparation for thatvisit. It's a chance for us to
sit down, get to know eachother a little bit, decide if what
we do at our firm is whatyou need and what you want at this

(15:13):
point, and if it's not,we'll try to direct you on what is
a better fit. And if afterthat visit together we decide, you know
what, let's take a next step. Let's go deeper. Let's dive into
the finances and the balance sheet andthe network and start looking for some of
those gaps. We can do that, and that's also a complimentary visit.
But I love those first get togetherwith people, especially over the last six

(15:33):
seven months, because I know deepdown that our experience is going to allow
us to help them create a pathand carve out a retirement that is going
to be probably a lot different thanthey thought they could carve out on their
own. So call us today sixeight two on two seventy three hundred if
you'd like to schedule that time together, and then Caleb, you will call

(15:54):
the folks back on Monday. Absolutely, So if you're just tuning in,
we've been talking about the three pieceof a Happy retirement, drawing off nixt
article Kiplinger, and I think forthe most part, we've apped up philosophy
and talked about the implications of whyphilosophy is so important. Well, and
I want to just emphasize, folks, as you're listening to that. You

(16:15):
know, Caleb, you just saidphilosophy. I think that's important, and
you know we've covered that. ButI have to stress folks, take a
step back and just take inventory ofhow you've approached your money to this point.
And I will acknowledge that most ofthe people who listen to our show
have been really good sabers. I'vesaid, I use the term they're good
stewarts with their finances. Most everybodywho comes into our firm, they say,

(16:40):
listen, we've been good sabers.We live below our means, we've
deferred our pleasure, we've been goodat our jobs. We've you know,
we're raising a family, we're doingall those things. But that next stage
of life, when you understand thecomponents and what goes into it and all
the moving parts that we're going totalk about that in the next couple of
segs, it can feel overwhelming.So where do we start? And that's

(17:03):
what we want to do, folks, is make this not so overwhelming,
give you a starting point, andmake this educational along the way and fun.
Yeah right, that is I meanit. Retirement should be a fun
time of life. How do youwant to leave your retirement? Like?
Figure that out? Yeah, that'syour one hundred percent right. The process
should be enjoyable, the retirement itself. And we use that term kind of

(17:25):
loosely goals. What are your goalsin retirement? I would say this way,
what is your vision of an independentretirement? Think of it that way?
What is your vision all those thingsthat you want to do, but
when you're doing them, you cando them without the worries that you might
otherwise have if you just go intoretirement with a basket of uncoordinated stuff.
And that's what we're trying to workthrough today. So, folks, a

(17:47):
lot of good things. We wantyou to join us. On the other
side, we're going to continue talkingabout some of the things in our recent
Kipplinger article to help make your retirementbetter. This is Nick Tooman Caleb simbolac
here to make your retirement fan hastic. Welcome back, everybody to the third

(18:18):
segment of the Empowered Retirement Radio showinga post holiday edition. This is Nick
Toman and Caleb simbolak here working tomake your retirement better. Remember if you
want to get in contact with us, call us six to eight two one
two seventy three D or visit retireMadison dot com. That is retire Madison
dot com KILB. We're going tocontinue talking about the article that we recently

(18:41):
wrote for Kiplinger Magazine. I doget the chance to be a contributing writer,
and we were talking about the questionsthat most often we hear when we're
doing things like retirement courses or whenfolks come in and they're starting that retirement
preparation process and they want to knowfour things. They want the answers to,

(19:02):
when can I retire, Will Ihave enough saved? Will my wealth
last the rest of my life?And will my spouse or significant other be
okay if something happens to me.And so that's what inspired me to go
back and I wrote about this afew years ago and again here recently.
And that's why I chose this topicbecause those are if I can group together

(19:23):
universally, four questions that get asked, those are the four things. Now,
again that's pretty universal. Something thatshouldn't be just generic or just universal
is an actual retirement plan. Andthat's what we're going to talk about in
this segment. We talked about inthe last segment philosophically going from a savings

(19:44):
mindset are accumulation mindset to thinking aboutretirement in terms of preserving and distributing and
growing your money. And that's adifferent thought. So we were talking kind
of that ten thousand foot view.Let's get started philosophically, let's change our
mindset. Now, let's talk aboutplanning and how that is going to look
significantly different from when you were thirtyfive years old or forty five years old.

(20:07):
So we can help people answer thosefour questions absolutely. So philosophically,
you know, you change your mindset. Okay, you know what you want
out of retirement. You know,you know you have some hobbies you want
to really take up. Got sometraveling you want to do. Maybe you
want to spoil the grandkids, whateverit might be. Maybe you just want
to sit outside and relax. Butyou've changed your mindset, You've got your
philosophy. So okay, I wantwhere my retirements look like this. Now

(20:30):
it's to get into actually building itright and planning it. And when it
comes to planning like this is youknow, the meat and potatoes. There's
so much the goods into planning,and the biggest thing is that these meat
and potatoes are going to be veryspecific to you. It is going to
be specific and customized. Right.Not everybody is going to have the same
you know, the same what's theterm I'm looking for. They're not all
going to start so security. Atthe same time, everyone's gonna have different

(20:52):
needs there, right, pension elections. Maybe you do or don't have a
pension maybe you need to use afinancial tool to make sure you have predictable
and garat income. Right, howmuch do you have to furt in your
nest deck? How can we start, you know, taking taxes out of
that. What's your tax threshold?Right? There's a lot of things that
go into the planning process, butmost important to all of this is understanding
that there's no silver bullet that's goingto work for everybody. Right. Generic

(21:15):
advice is most likely not going towork to your specific situation and actually customizing
it for what you have and whatyou've done in that accumulation phase. This
is the part of the article.I like to call it the water cooler
section of the article because when peoplestart preparing, many times it's often standing
around the water cooler at work,talking to friends and family getting advice that

(21:37):
way, And there's nothing necessarily wrongwith that, but most often, if
that's how we're putting together our preparation, it's going to be generic. You
mentioned a couple of things that wehave to start thinking about that we maybe
didn't have to think about when wewere twenty, things like when to begin
social security and folks, we dida show a few weeks ago about when

(21:59):
to begin social security. So goback and listen to that episode if you'd
like. That is very specific toevery person out there and if you have
a pension, and in this market, we do see a lot of folks
we are in a university town,a hospital town that do have pensions that
can incorporate into their plan. Butthat's customized everybody because the timing of it
and when do you take it.So those are things that maybe when we

(22:23):
were younger, we felt like ourlife was more on automatic or I say
autopilot. Yes, And that's thething here is we're going from a life
that was on autopilot. You wereearning a paycheck, Your whole focus was
doing well at your job, advancingin your career, earning money automatically.
You may have contributed to a fouror three B or a four oh one

(22:44):
K, or an IRA or abrokerage account, and we set it and
forget it. What we're talking abouthere is designing a strategy that becomes more
active and it takes your active engagementand going from an autopilot life to something
that takes plan and engagement. Yeah, you know you use the term all
the time. Don't just have anuncoordinated basket of different financial tools, right,

(23:07):
don't just be like, Okay,well this kind of takes care so
in my income, right, butyou know we're just going to kind of
leave that gap though. Or youknow, this kind of helps our taxifiestation
problem. You know we have somesome some good tools that we can help
with that. But you know itdoesn't really solve it's it's very nuanced,
and you don't just want to havea basket of uncoordinated financial tools, right
because you've been earning a living andnow you're creating a retirement. Think about

(23:30):
that bridge between earning a living andcreating a retirement. So one of the
most popular generic rules out there,and pretty much every other week we bring
this up, is creating income orliving off that four percent rule that came
out in the early nineties. Thefour percent rule, again for people that
have heard us talk about this before, is just taking your well, the

(23:51):
money you saved and thinking that ifyou withdraw no more than four percent of
that amount every year, it shouldstatistically last you for at least thirty years.
You wouldn't run out of money.And that is such a generic or
I like to say lazy approach tocreating a paycheck in retirement. But back

(24:11):
in the early nineties when this thoughtwas put out there, interest rates were,
for instance, fixed income, we'reprobably six seven eight percent. So
if you had a sixty forty portfolio, maybe that forty percent to fifty percent
you could expect to earn six seveneight percent. And yes, we're in
a rising rate environment, but marketis very volatile, and it's just not

(24:36):
a specific or a customized approach tocreating income. So that's just one example
of something that we think is toogeneric to lean into. Yeah, and
if you're working with an advisor rightnow, what I've seen happening a lot
is oftentimes you know, this fourpercent rule is still very much used,
but it gets explained away in away that makes it seem like it's not

(24:57):
that right. So let's we havea sixty forty portfolio and maybe that advisor
has some income producing stocks or whateverit might be, and there's saying,
okay, well, you've got incomecoming in from bonds. So you know,
we have our six pillars of retirementat our firm, So we got
income, which we considered to bethe driver of retirement. You've got investments
you've got tax planning, got healthcareplanning, you've got legacy planning. And

(25:18):
then lastly the fidiciary pillar, whichis, Okay, what fdiciary are you
going to work with? That helpscater best to your scenario in putting together
all of those pillars, right,And so in a sixty forty portfolio,
right, that's just solely your investments, and oftentimes you can get explained away
and saying, Okay, you havesome dividend income producing docs, and they'll
try to make that seem like anincome plan, but they're not the same

(25:41):
thing, and so just be wearyof that. When your work with individuals,
oftentimes it is easy to kind ofexplain away maybe the four percent rule
and make it seem like there's morehappening there than is actually taking place.
But it is more nuanced than thatit is. And if you're listening to
the show today and you'd like toexplore what a customized retirement plan looks like,
you can call us at six Oeight two one two seventy three hundred

(26:03):
or go to retire Madison dot comthat is retire Madison dot com and you
can request a one hour complementary visitwith one of our advisors to explore what
a customized retirement plan looks like andwhat at this point in your life you
need and you want in terms ofguidance along the way you've been making this

(26:26):
software throughout the show. And ifyou call us at six O eight two
one two seventy three hundred, youcan leave us a message because our staff
is off on the weekends, andCaleb will call you back on Monday to
schedule that time for a visit.And as I said throughout the show,
folks, when you come in thisis basically over a cup of coffee.
We're not asking you to do alot of preparation. We want you to

(26:47):
come in and share with us whatyou feel good about, what you think
you've done well, where your concernsare. We'll talk more specifically about how
we assist people, how we servepeople, how we've served people over the
years, and if we decide togo beyond that, we can talk about
that during our visits. We'll callat six two one two seventy three hundred.
Folks, join us for the lastsegment on the other side, A
lot of good stuff yet this isNicktoman and Caleb Simbolac the Empowered Retirement Radio

(27:12):
Show here to make your retirement fantastic. Welcome back everybody this Saturday morning to
the Empowered Retirement Radio Show. Thisis Caleb Simbolac here with Nicktoman's CFP as
always to make your retirement better folks. You can give us a call at

(27:33):
six O eight two one two seventythree hundred, or you can find us
online i retire Madison dot com.On our website. We have a lot
of resources. As we've mentioned,we are using Nick's most recent Kippligan clip
Kitplinger article for today's show. We'rekind of working through it about the three
PS of a Happy retirement, Soyou can find that online at our website,
and there's also a lot of otherresources about us and what we offer

(27:56):
as well. I just want tomention Caleb that on our website we will
have hopefully soon some dates this fallfor our next round of retirement courses.
We had some retirement courses in thespring and people loved when we did those
again. It's the first time wereally have done those in person since COVID

(28:18):
ended, and we're going to dothose again this fall, So continue to
check the website for dates and timesfor those courses. We're probably going to
do those over at Madison College again, but just a good resource four people
out there that are within three tofive years of retirement. Maybe you're a
business owner. We had a fewbusiness owners attend that we're thinking about transitioning,
selling their business, doing something elsein life. So maybe that's you.

(28:41):
And we had a few people comeout that have just felt overwhelmed about
retirement and they've wanted to partner orfind somebody or just get that the juice
has flown about how they can maybeyou take that next step and make their
retirement better. So look for thosedates coming up. But I think it
leads us into or continuing to talkabout planets. Yes, in that last

(29:03):
segment, we didn't get through allthose considerations when it comes to what goes
into a proper retirement strategy, andso let's continue on talking about some of
those. Yeah. So you know, we pick on the four percent rule
a lot, and I think wecan kind of explain that a little bit
more. So, you know,we kind of talked about the separate pillars
of retirement and this is kind ofa consensus amongst a lot of retirement planners
that there are these main areas thatyou really kind of have to focus on

(29:26):
to ensure happy retirement. And soyou have income, Okay, you know
you're no longer working, is therestill a consistent and guaranteed paycheck coming in?
One reason we pick on the fourpercent rule a lot is because you
know the market ebbs and flows.Right, are you going to be able
to uphold your quality of life andalways be able to withdraw that same amount?
If you would? You be comfortabledoing that if the market's down twenty
five? Probably not? So.Do you have a predictable and guaranteed source

(29:48):
of income coming in? For somepeople that might be maybe a pension complemented
with Social Security, Maybe that's anannuity. Just a couple of tools in
general. Right, And then youhave investments, Okay, a completely separate
pillar. Right, they're not allintermingled and reliant on one thing and investment
strategies. Right, When you're notsolely reliant on it, it's going to

(30:11):
change how you invest your money.Do you want more growth component? Do
you want more just preservation? Maybesaving it to distribute it at a later
time for a vacation or for maybeyou want like a lake house, whatever
it might be, but not comminglingthose two things right, or not commingling
all of the pillars. They obviouslyhave implications with each other, and so
you want it to be coordinated,but don't just throw all of the pillars

(30:32):
into one like one megapillars exactly exactly, and using the tools you mentioned,
whether it's insurance tools, investments,the world of banking. And we talk
about this quite frequently, is understandingthe worlds of money that are at your
fingertips. It's not just investments,it's not just insurance tools or insurance products.

(30:55):
It's not just banking and liquidity.It's taking those three worlds of money.
And I know this is a verysimplistic visual, but I want people
to understand. You take those threeworlds of money, and what we try
to do is take the best ofeach of those and use each of those
tools the right way specifically for eachperson. Yeah, it's not about going
out and buying or selling insurance toolsor selling an investment or a banking product.

(31:21):
It's about using the best of eachof those, the best that we
can as a fiduciary to tailor itaround some of what you already have in
place. So if you're out thereand you have a pension, and you
have social security, and you havea strong, guaranteed cash flow coming in
every month, that's very different kaleof than somebody who's going through the planning
process that has no pension, thatmay have minimal social security, whatever the

(31:47):
case is. That's a different discussion. Those are different tools that we use,
same thing with a state planning.A state planning, that's a lot
of what ifs. We do alot of what if scenarios, what if
you die too early, what ifyou live too long? A lot of
what ifs when it goes into thetools used to plan properly when it comes
to your estate and how you wantto pass ascids. So these are just

(32:08):
a few. Boy, we justdon't have enough time to the show to
mention all of the what ifs andthe specifics that go into planning or things
you need to think about. Theseare just a few of them. Pension
elections, the type of financial toolsto use, estate planning, conserves,
what if so security. It soundsoverwhelming, yeah, and in our goal
is not to make it overwhelming,and so you know, I guess our

(32:29):
point more or less focus. There'sgonna be a lot of competing voices of
whether it's Wall Street, like yousaid, banking, they're always going to
try to convince you to have allof your money with them. When the
reality of it is, when itcomes to customizing your retirement, you are
able to a diversify. Right,that's a big thing. If all of
your money's in Wall Street. InWall Street takes a big hit, that's
going to have a big impact inretirement, right. But the reality is

(32:50):
is that you can use the bestof all of the financial tools, right,
whether it be private equity, whetherit be the banking industry, Wall
Street, insurance, you can usethe best of those, diversify and to
tailor it to your retirement. Solet's talk about how do you begin to
construct a blueprint or a plan withall these things that we have to consider,
And we're going to get into thatlast p and that is the process.

(33:14):
So as you sit down with youradvisor, ask them, what is
the process that you use to determinewhat types of tools that we use,
how much that we allocate to theworld of Wall Street, how much insurance
industry, How do we even beginto go about this and I will start
by saying, one of the thingsthat we take pride in, Caleb,

(33:34):
is to break this down, gobrick by brick, step by step.
You mentioned a few minutes ago thesix pillars that we believe in. We
believe that people need to address inretirement, and when we work through each
of those pillars, it is verystep by step. So if you're expecting
to walk into an advisor's office andsit down in one three hour visit and
knock out all the things about yourretirement, I say, run the other

(33:58):
way. Yes, if we dothat, run the other way. It
should be brick by brick, stepby step, and it also should be
very educational. Yes, you shouldfeel as you walk through this process brick
by brick, that each time youhave a topic that we talk about,
you should feel educated and walk outhaving learned something feeling more confident. One

(34:19):
of the things that I tell people, especially my new clients, Caleb,
is that if I'm doing my job, and over the first two to three
months that we work together, we'rekind of attached at the hip we made
quite often, but by the timewe're done walking through this process, envision
yourself years down the road. Twothree years down the road and all of
a sudden, some of the peoplewe work with, they'll involved their adult

(34:40):
children and their money. Eventually theywant to have a conversation just to let
them know what they've done and putin place. And I said, if
you're doing this the right way,step by step, if your kids ever
ask you, mom, dad,why did you do this? Why do
you have this tool, why doyou have this product, you should be
able to in about thirty seconds summarizewhy you have each of those things.

(35:00):
What there for? What's the purpose? Why you did it? You just
didn't buy an insurance product or aninvestment, you did it for this reason.
So that's what I try to getpeople to understand. You know,
whether it's us or their advisor.Yes, you should be educated and know
the whys and think about the whatifs in life. Absolutely, and if
you're not in retirement yet, Again, like I mentioned it in the first

(35:21):
second segment, I do think it'svery understated how much like emotions play into
a happy retirement. Okay, ifyou have a retirement plan that you know,
you took the time, even ifit was some effort to sit down
with an advisor and you've had sevenor eight meetings really going through and constructing
a plan that you know, incorporatedincome, investments, tax, all of
that fun stuff, and you're ableto actually understand it, know why you

(35:45):
bought that specific product, why areyou using that specific tool for tax implications?
That gives you so much peace ofmind. And also, I mean,
let's just take an account like thenews and the media, there's always
so many things going on. Ifyou know what you have, why you've
established it, it's so much easierto fight off all of those negative noises
that can make you just really insecure, make you nervous, right right,

(36:07):
make hey, honey, we don'twant to go on that date anymore on
Friday night because the market's down fivepercent right rightever it might be, it
gives you a lot of peace ofmind. That is a great point.
There's so much noise out there forus to consume in the media, social
media. It's coming at us inall directions, and whether it's about the
investment world, the insurance world,and it can be very confusing. So

(36:30):
that is a great point. Igot to emphasize that again, if you
understand the why behind the things thatyou incorporate into your retirement strategies. You
can just feel so much more liberatedand better about this. And as I
said, you involve other people,especially your kids at some point later in
life, instead of you looking atthem confused when they ask you, mom,

(36:51):
dad, why did you do thisfor your state point? And why
do you have this insurance tool?Why do you invest this way? You
can say with confidence, because thisis what we're trying to do. That's
what this tool does. And soagain it should be very educational. We
try to take the intimidation element outof it the best we can. We
get it. This can be thiscan be scary, but it should be

(37:12):
educational, should be fun. Soif you're within a few years of retirement,
or as we said in the lastsegment, you're a business owner and
you're going to sell a business andyou're going to have a whole other part
of life, or you just overwhelmtrying to do this on your own,
or if you're married and one ofyou handles the finances solely, think about
this, what if something happens toyou. You want to have that peace

(37:34):
of mind that that other person isn'ttrying to figure this out on their own.
If that's where you're at in life. Call us today at six O
eight two one two seventy three Dand we've been offering a complimentary one hour
visit with one of our advisors tocome in and get a second opinion,
or get a first opinion, orjust start the conversation about how do I
prepare, how do I put thatblueprint in place and find out if what

(37:59):
we you do with specialists and retirementpreparation is what you need at this point
in your life, and if thisis what you want, So that's what
that meeting is. That's what theoffer is. You can call us or
go to Retiremadison dot com and ifyou request that visit because we are off
on Monday, or excuse me offon Saturday, not off on Monday,
Caleb will call you back on Mondayto schedule that time with us. But

(38:21):
folks know, when you come in, it's over a cup of coffee.
It's a very casual one hour together. If it's with me, it might
be an hour and fifteen minutes,twenty minutes, whatever it is. But
it's probably the most important time wespend together because it gives you the chance
to get to know us and whatwe believe and for us to understand what
you feel good about, what keepsyou up at night, and if after

(38:44):
that visit together our time, wecan decide to take a next step if
we'd like, and that's also complimentary. We'll talk about that if you folks
come in. But we're just hereto help you and make your retirement better.
Yep, Pete always says. Pete, the other advisor on staff always
has this phrase. He says,how do to you eat an elephant right?
One by day to time? Sofind somebody who is going to help
you eat that elephant one by ata time and explain to make sure that

(39:05):
you know what's going on, especiallygoing spouse daing. If you pass away
and your spouse does know what's goingon, that's not good, right,
Find somebody who's gonna walk alongside ofyou to eat that elephant so that you
can have security. And that's exactlyright, and that's why we do what
we do. So folks, joinus again next Saturday. If you caught
us midstream, I'd go back andlisten to the show. You can go
to retire Madison dot com. Atthe top there's a radio I kind of

(39:28):
listen to past episodes, but thanksfor joining us on a Saturday morning,
a post holiday edition. I hopeeverybody had a fantastic week. We'll see
again next week. This is NickTooman Caleb Simbolac here to make your retirement
outstanding. Investment advisory services offered throughTrack Capital Management, LLC and SEC Registered

(39:49):
Investment advisor. Information presented is foreducational purposes only and it should not be
considered specific Investment advice. Does nottake into consideration your specific situation, and
does not intend to make an offeror solicitation for the sale or purchase of
any securities or investment strategies. Investmentsinvolve risk and are not guaranteed, and
past performance is no guarantee of futureresults. For specific tax advice on any

(40:14):
strategy, consults with a qualified taxprofessional before implementing any strategy discussed herein