Transitions into Retirement Pt. 2

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Episode Transcript

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

(00:21):
Nick Tooman CFP. Reach out tothe Empowered Financial Team now at six zero
eight two one two seventy three hundredor visit their website empowered FM dot com.
Now here's your host, Pete Simbolacand Nicktoman. Welcome back everybody to
this wonderfully cool transitioning Saturday morning.Pete Zimbolac here, Nick Toman, certified

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financial planner with Empowered Financial Management.Our phone number six zero eight two one
two seven three zero zero and ourwebsite retire Madison dot com. I hope
everybody's having a wonderful start to theweekend. Man, last weekend, right,
it was like ninety degrees and nowit's you know, mid seventies,

(01:06):
low seventies, and it fills likefall it does. The pendulum has swung
the other way, so hopefully wesee these nice moderate temperatures for a little
while yet, and we don't hitthat extreme cold weather because I say,
after Labor, DAP, Diacon snowat any point. That's just my well,
it's probably true, right, youknow, Nick, I gotta tell
you, when I was younger,or my kids were younger, and even

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probably today, Caleb would roll hiseyes, how I could use the weather
to get into a conversation, right, I don't know. I'm just weird
about that I can use the weatherto transition into what you really want to
talk about. And really what we'retalking about is last week we started this
conversation on transitions and we want tokind of do a part two of this

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idea of transitions, and of coursefor those listening, of course, on
our radio show here we talk aboutretirement and what retirement means, and retirement
planning, retirement finances, and wereally try to help bring your retirement vision
come to life. And it's muchmore complicated, it's much more different than
it was for your parents or grandparents. There's just so many things that are

(02:14):
different. And there is a transitionthat takes place, a mindset that's that
happens that you go from your workingyears to your retirement years and what does
that really mean. And of coursemost of the people it's just been about
saving money, but it's so muchmore. So we started talking about that
last week, Nick, you wereout playing hooky. I told everybody on

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air, you were out playing hooky. So, okay, you know that's
I was working. But okay,we'll say I was playing hooky. That's
fine. But you're talking about transitions, and I think about the folks listening
out there, all of us.We have transitions in our life, whether
it's our like in my case,kids going off back to school and you're
transitioning back into life without the kids. We do it all the time.

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But when it comes to our money, one of the most important things in
our life that we've done a goodjob saving, being good stewarts with our
money, that is something we haveto put thought into and realize. There
is a mindset shift, and that'swhat we're talking about. You started talking
about that last week. It's importantto understand and even the fact that you
brought up money in this mindset,this transition, The fact is the money
is the tool that allows you tolive out what you've been dreaming about.

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That's right, and that's really whatwe're going to focus on today. We're
going to talk about planning because there'scertain things you have to do in planning.
Last week we started with that illustrationof the house. We're going to
bring that back because it's an easypicture to grasp hold of that can allow
you to really put yourself in amuch better position than what you would be

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normally. But folks, this iswhat it's all about. It's about transitioning.
It's about transitioning from your working yearsinto your retirement years. And maybe
you're listening and you're already retired,or maybe you're ten years away from retirement,
but this can help set you upso that you've got the right mindset
going into retirement. And I'm gonnaI'm gonna finish here as we get ready

(04:09):
to go to the full program.But the fact of the matter is,
and Nick, you and I talkedabout this before the program started, and
that is is that people have atendency to conserve in retirement. And we
get it. Why well, whenwe conserved, when we were saving for
retirement, that was about discipline,but in retirement it's about fear. That's

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right. So by going through thesetransitions. We want to help you alleviate
that fear and take that off thetable for your pleasure. Twice you deferred
it for se the clients, andyou don't want to defer again. So
we're going to talk about planning itsspecifically Retirement Planning Page, and enjoying it,
enjoying getting the most out of thatbuilding it the best, biggest,

(04:56):
best plan you possibly can Folks,this is the Empowered Retirement Radio Show where
we're getting pumped up and excited andbringing your retirement visions to life. Welcome
back, everybody on a Saturday morningto the Empowered Retirement Radio Show. This

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is your host, Nick Toman andPete Symbolac here in studio having a good
time helping to make your retirement better. If you want to get in touch
with us, you can do soby calling us at six eight two one
two seventy three hundred or visit ourwebsite at retire Madison dot compete. If
they go to the website, theycan check out the dates for our upcoming
retirement courses we're going to do inthe fall. We did some courses back

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in the spring. We're going toreintroduce those again coming up in the fall.
Those dates are in September. Idon't have those right on the tip
of my tongue, but then goto the website and find those dates.
It's a Tuesday and Thursday. It'sa two part event. The first part
is on a Tuesday. Yeah,it's the twelfth, and the fourteen and
the following so it's really just comingup this week, coming up, okay,
So yeah, they're coming up fast. If you're going to registers,

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that's we're going to make a pointto and then are held at MTC or
Madison College on the east Side,so plenty of room out there, and
if it's anything like the course aswe had in the spring, very interactive.
It's a good time and very informativefor everybody who attends. I think
there's something for everybody. If you'rewithin five to seven years of retirement you

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mentioned in that first segment, ifyou're a business owner, if you've recently
retired and this is just becoming toooverwhelming. It's a good hour and a
half spent each night. It's TuesdayPart one and then the following Tuesday Part
two. Good time spent out onthe east Side. And think I'm gonna
just say even if it isn't overwhelming, it's probably a good idea just to
get some other ideas and see whatyou might be missing. That is right.

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So there's a takeaway in those coursesfor everybody. So come join us.
Visit our website at retire Madison dotcom, or you can call us
and let us know you'd like toreserve a spot and we'll get you signed
up. So Pete, let's continuethe theme of transition, because we are
in a time of transition when wego from summer to fall. That's an
obvious transition. I mentioned in thatfirst segment, kids going back to school.

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I know, in my house,living life, you know, without
our daughter in the house, that'sa transition. But we're talking specifically in
today's show about transitioning to retirement,that mindset shift that you have to have.
Well, one of those things thatpeople think about in retirement, well,
okay, me I think about inretirement is you know, playing golf.
So here's a transition. My leaguejust ended this last Wednesday, right,

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that was the last week for leaguegolf. So that tells me,
you know, here we are goingin the fall. And again, I
love the badge of football and it'sright. The packers going and so there's
lots of activity going on. Kidsare back in school, You've got your
your daughter back in school. Whenit comes to retirement, we want to,

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you know, as you're transitioning,as you start to think about retirement,
I think it is really important toget just a couple of fundamentals down
of where we're coming from. Andwe're going to bring some things in that
we had going last week that wewant to bring in to help people kind
of get a picture of how thislooks and why we're saying what we're saying.
But here we go. You know, when you think about transitioning into

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retirement, people have a tendency tofirst of all, lower their standard of
living when they go into retirement becauseit's going to be more simple, right.
I mean, everybody's been told youonly need sixty seventy seventy five percent
of your money that you were livingon while you're working to live on in
retirement. Well, okay, Iask people in our class who wants to

(08:39):
voluntarily lower their standard of living ifthey don't have to, and nobody raises
their hands. Nobody raises their hands. And that surprises me that we've been
taught that we've bought into that asa group for so many years, because
that is just the default when wetalk to folks that come to our class
or just in general, the defaultis only going to spend fifty sixty,

(09:01):
maybe seventy percent of what I did. And when you ask people to raise
their hands, it's amazing. Ithits you like a bucket of cold water
when you think about, that's whatI'm gonna have to do to feel comfortable
spending on my retirement, And unfortunatelyis true for some folks, right,
they just haven't had the resources,they haven't put it away, things haven't
necessarily gone their way. They're goingto have to do that in retirement or

(09:24):
they're gonna have to work a parttime job in addition to that. For
so many years, that's not whowe're really wanting to talk to today.
I mean, there are those peoplein that situation. Sometimes there's nothing we
can do to help that scenario becausethey're already there. But we're talking to
people who have by discipline, right, they've saved lots of money. They

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maybe have a half a million dollarsor they have two million dollars, or
they have four million dollars put away. Often we use the four oh one
K to do that I raise,which what was that? That was an
answer to the fact that employers nolonger wanted to maintain pension funds and they
move the risk over to you.So then we use that as a piggy

(10:09):
bank and probably went beyond what weneed for income, and we use it
as a net worth kind of tool. So what we're trying to teach you
now is all right, we've donethe savings. You've done the savings.
Now what kind of plan? Whatkind of house? If you're looking to
build a house, what kind ofhouse would you like to build? Because

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if you have two or three orfour million dollars, you're probably not going
to run out of money. Thatfear should be assuaged. Right, You
probably are not going to. Butthrough proper planning, number one, you
can live out your best life andenjoy those times. Number two, you
can alleviate that fear of running outof money. And then number three,
you can actually enjoy that timeframe andlive out the dreams you were hopefully planning

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on doing in retirement. Those dreamslook different to everybody. Some people are
traveling, some people are with family, some people. You know, whatever
it is, right, you justwant to be able to do that and
with proper planning. So now I'mgoing to relate that back to the house.
We brought this into the picture lastweek, right, But the fact

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is, if you picture a house, folks, have you ever built a
house before? Number one? Youknow, if you're married and you build
a house, you're very fortunate ifyour marriage survived that building of the house,
because there's just so much you know, everybody has an opinion of what
goes into it. But now wewant to talk about our fiscal house,
our retirement house. How do wewant to live that out? And that's
going to include buying land, yourblueprint, you're digging of your foundation,

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and then how many of every foundationbedrooms, what kind of amenities do you
want, what kind of view doyou want out of those windows? What's
important to you folks? That's right, and what's important to you you just
mentioned is different for everybody. People. When I'm listening to you talk about
this and talking about retirement planning,I'm also thinking about the word coordination is

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when you're building your own house,you have to coordinate all those aspects of
what your physical house is going tolook like. And now with your finances,
you've done a good job saving allthose years, how do you coordinate
distributing those and creating that income foryourself. So the very first thing you
do when you're building a house tocoordinate those things is you hire a builder,
you hire an architect, and whatdo they do. They come up
with a blueprint, that's resign ablueprint, and then you build from there

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and you tell them what you want, right, yes, you're telling them,
and then based upon your budget,they're going to get you what you
want. And then maybe some ofthe amenities that we're talking about, some
of the whether it's granted or whetherit's you know, for Micah or whatever.
I mean, I'm just you know, those amenities are going to be
based upon your ability to pay forthose. And then somebody has to be

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able to actually take your vision,put it on paper, show it to
you, put it on acad Right, you can visualize it and then go
dig it and then actually have ithappen. All Right, when you do
that with a house and it's successful, you feel really good about it.
You do, right, it feelsreally good. Now I gotta tell you,

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I've heard stories about people six monthslater, a year down the road,
they're like, Oh, I wishI'd have done this different or or
that different. You know, webuilt, we got into a house while
it was being built. Twenty yearsago, we're still living in the same
house. And I remember my wifesaying, back in the day, you
know this kitchen still, you know, it's kind of small. Now.

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I don't know, maybe the housewas not done enough to where we could
have stopped and maybe said, hey, can we tear this wall out and
move a few pipes and make thisthree feet bigger here and move this you
know, I mean, maybe wecould have done that, but we didn't,
and we accepted what was there.And twenty years later, what does
my wife say to me, weneed a bigger kitchen, right, kitchen

(13:54):
still too small. It hasn't grown. And we are entertainers, right,
I mean, we love to hostpeople and cook and if you know,
I mean, if you see me, you'll know I like to eat.
But the fact is is that mywife's a great cook and we like to
entertain. We've done barbecues and allthose kind of things for a thing,
you know, for Fourth of Julywe'll have upboards of one hundred people at

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our house. That's sometimes hard todo when you have a small kitchen,
but we do it. We makeit work. It's just really tight.
We're talking about folks, you havingthe opportunity to avoid that issue. Now
that's a first world issue, right, but that's what we're talking about.
We're talking about you actually living yourdreams. So those things matter. Those

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things do matter, Pete. Andwhen I'm again hearing you talk about living
your dreams and hiring an architect,sometimes we make fun of the folks that
stand around the water cooler and getadvice about their finances or their money.
Think about if you were building ahouse and you're standing around the water cooler,
you might get some ideas as tothings you like in that house,
but you're still going to go tothat architect to build and outline that infrastructure.

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And that's what we're talking about whenit comes to actually preparing for retirements.
So most of the people who listento our show weekend and week out,
you know, they're approaching those goldenyears, that next part of their
life. And so what we're goingto encourage people to do is if you're
within three to five, maybe sevenyears of retirement. Can I interject that,
mans, you're going to say thiswhen we talk about blueprints and we've
talked about building your retirement financial house, your dream home. Do you want

(15:26):
to work with an architect that buildscookie cutter, first time home builder type
homes or do you want that homebuilder that builds specifically designed homes for what
you want customing that's very important foryou to think about for what you're about
to say exactly so, if you'relooking for somebody to help walk next to

(15:48):
you and design a retirement specific blueprint, give us a call today at six
eight costs today six eight two onetwo seventy three hundred and schedule a time
a complimentary one hour visit with oneof our advice to talk about if what
we do in customizing retirement planning forpeople is what you need at this point
in your life. I mentioned justa moment ago. If you're within five

(16:08):
years of retirement, If you're asmall business owner, and we get to
talk to small business owners all thetime trying to figure out what life is
going to be like when they divestthemselves for that business, when they move
on. If you're retired and youjust want to go enjoy. You mentioned
golf, whatever your hobby is,you just want to enjoy and you want
somebody to walk alongside you. Designa specific, customized approach to retirement.

(16:33):
Call us and see if what wedo is what you need and what you
want. That one hour complementary visitis done at our office out in Middleton
Pee. We do offer to dothat via zoom if that's more convenient for
you, But if you call ustoday to take advantage of that offer,
we are off on the weekends,so you're gonna have to leave a message
your name and number and that you'reinterested in doing that. And during that

(16:55):
time together, it's just a chancefor us to get to know you and
you guys to get to know us. And the only decision we make during
our time together is if we wantto go to a second meeting and at
that point take a little bit deeperdie. But that one hour together initially
is just for us to understand arewe a good fit and can we help
you? And are there gaps inwhat you've done to this point, and

(17:15):
if there are, we'll dive deeperin a second meeting. So call us
today. Six O eight two onetwo seventy three hundred leave your name number
and then Caleb will reach back outto you on Monday to get that scheduled.
So, folks, as we wrapup this segment, as we're talking
about we're talking about transitions, we'retalking about building that house. We're going
to go back into that idea.What do you put in that house?

(17:37):
What are some of those fundamental things, those foundational things? Hint? Hint?
Right? How do we use phraseslike separate your money? This is
part of a planning process, athought process. What do you want in
each room? What do we wantin the basement versus first floor versus second
floor? How elaborate do we wantto go? We're gonna get descriptive of

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what that means in your physical world. So folks, hold on because it's
going to get better. This isthe Empowered to tim a radio show where
we bring your retirement visions to life, talk about transitions. This is the

(18:25):
Empowered to tim A radio show.And I just can't get enough. Right,
go back to high school a littlebit reminds you of some go nostalgic
here for a moment, I wasjust telling you and before the show.
It's been a long time since Iheard this group, the besche Mode.
Yeah, it's great again. We'retalking off air. Being in Ireland,

(18:47):
they were still really a big bandand they would have cover bands going around,
you know, playing to besche Modeand it was a lot of fun.
It was a good time. Butwe're not here to talk about that.
Where. This is the Empowered deTimement Radio show. Pizza Black here,
Nick Toman, certified financial planner withEmpowered Financial Management, and we are
talking all things retirement and today andlast week we've been talking about transition and

(19:10):
transitioning both in life from working toretirement and what that means. We're being
real specific now about the planning processbecause I think it's a lot different than
what people give it credit for.If I could use it, they oversimplify
it. This is not your grandparents retirement anymore. This is we're not

(19:30):
in Kansas, Toto, We're notin Kansas. And I think they oversimplify
it two ways. Peep. Beforewe get into how to do this,
one think about how their parents didit with Penn's engine social securities and right
off into the senset which doesn't happenmuch anymore. And Two. I think
people oversimplify just living off of whatthey've saved and invested. So they've invested
money, maybe their investments have performedwell over ten fifteen years, You've been

(19:52):
fortunate, and I'm going to justtake and I'm going to live off of
what I've accumulated. I'm not goingto really have a structured plan. I'm
not going to coordinate anything, butI'm just going to live off the returns
year and a year out. Andthat's oversimplifying it it is. And you
know, so let's bring into theconversation that real illustration. We've been using
architecture building a house, We've beensetting it up for this, So let's

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start talking about some of what goesinto you know, we're gonna talk generically,
right because we've been talking about,you know, depending on how much
money you have, how elaborate doyou want it to do. Do you
want it to be a mansion,is it a one room studio apartment?
What is it that you want yourretirement to look like? And so many
people pull back in retirement when itcomes to spending one because they've been told

(20:37):
to do that. Part of thatis because in the past some of those
axioms were true because people didn't havea lot of money. And again that
still plays out that way that thoseaxioms are true today if you don't have
a lot of money. But peoplehave, and the people were talking to
the people were hopefully are listening.They've done a good job putting that money
away. They got a half amillion dollars, they got a million dollars,

(20:59):
they got two or three or fivemillion dollars or more, and they
probably have more than what they need, but they still live in this kind
of fear of whether they're going torun out of money or not, and
it causes them. It's also howthey build their house. And we're going
to talk about them just sec butthat fear of I'm not going to make
it, or I'm not going tohave something left for the kids or whatever

(21:21):
it may be, they then turtleup. They don't spend as much,
and they don't take advantage of whatthat work they actually put into it to
build the kind of financial plan andliving that we're talking about. So now
we're gonna talk about that house,and I like to separate it. One
of the things we like to talkabout is folks, separate your money based
upon its purpose. So that's aphrase. It's about diversification, but it

(21:45):
gets us thinking. The words area little different, and it gets us
thinking a little different. So we'rediversifying our money and into this house.
I'm going to lay out that there'sthree basic compartments or areas of the house
that are going to be really importantfor this thought process, and that is
the foundation, the living quarters,and the roof. That's right, So

(22:06):
when we start separating our money,and if I were to separate based upon
risk or goals or whatever it maybe, I'm going to separate that foundation
right when you're building a house.And we talked briefly about this, so
I'm not going to touch a loton this. We talked about this last
week that if you have a foundationthat is not well built and it has

(22:29):
a crack in it, your houseis not going to be successful. So
when it comes to money, what'sin that foundation, it's things that are
not necessarily exposed to the financial worriesor risk or fierce stock market and things
like that. Right, the foundationand the foundational things in retirement, the
one that we always go back toand we start with is having income in

(22:52):
retirement. You touched on it lastweek, because you have no retirement without
income. You don't because if you'rejust left to draw money from your accounts
at random, you're just running toomuch risk that the market isn't going to
cooperate during your retirement. It's justlike going to Las Vegas. It's rolling
the dice. So the foundation ofmost retirement plans is a good solid income

(23:12):
plan, which is the foundation justlike your house. Think of your pension,
your Social Security right, your cash, your annuities, those type of
things, and those are things thatare not necessarily exposed to the market.
Now we have so security, there'ssome government or responsibility out there, right,
there's some things there. Pensions,hopefully you've got a good pension.
Pensions could go either way. We'refortunate in the state of Wisconsin that they've

(23:33):
got a good pension. But peoplewho have as a whole statistically, mathematically,
academically, and I'm getting this outof the University of Stanford from Wade
foul who is a big researcher anda leader in this industry of retirement income.
But they have shown academically that peoplewho have for example, social Security

(23:56):
and a pension, they have atendency to spend more money in retirement.
Well, why do they do that? Because it's reliable and predictable. Right,
They're not guessing every month with theirpension checks going to no matter,
no matter whether the market's up ordown. That's right. So here we
go into some fundamentals of building thishouse and separating that money. If income
is a foundational thing, it's afundamental basic need in retirement, and it

(24:21):
is whether you've got a thousand dollarsor a million dollars, that income is
a need. What are most peoplebeing taught to do with getting their income
in retirement? They're taking four percentfrom their investments, right, all right,
well we're going to talk about Okay, in that foundation, we're talking
about risk free money or is itrisk free as you can get? And

(24:42):
then the living quarters is kind oflike that middle range risk. But up
in the roof we put riskier investments. Why do we do that? We
do that because if you have afinancial storm come and that roof is ripped
off, the tornado comes, whatever, and the roof is is ripped off,
Well we can replace a roof,but if the foundation's gone, you

(25:04):
don't have a house, right,it's gone right, So we expose what
we can afford to replace at theplaces that they can be lost, i
e. Risky investments, stock market. That's right. People who are listening
may have gone through this last yearin twenty twenty two. If you have
a good, solid income plan andyou have a good foundation, maybe the

(25:26):
market wasn't friendly to you last year, but your income was still reliable and
predictable, and it didn't it didn'tfeel the sting as much because your foundation
was strong. But that's for peoplewho did plan. That's the way we're
taught. That's exactly right, Nick. The problem I see is that most
people are using their investments within theirincome, and they're relying on that for

(25:49):
their daily maybe not just for thebasics, but for their fun, for
their extras that they're doing there,their travel, their hobbies, their golf
there, seeing the grandkids, whateverit is they feel like is an extra
right. It's not just a need. It's not food, sheltered water,
you know, clothing, it's notthose. It's beyond that. And the

(26:11):
problem is, and this is whypeople live in fear, is they've mixed
the two together. They've mixed thetwo together. Folks you want to separate
that roof from your foundation and howyou gather your income. And Nick,
we just opened this door. Ourtime is run out on this segment.

(26:32):
We don't even get to go furtheron this segment, which means, folks,
you have to stick around to understandthat difference and how we solve this
problem. Not to mention, willalso make an offer for those listening that
find this important, because this isall important for you, not just surviving

(26:52):
retirement, but having a blaster,because that's what we're talking about. So,
folks on the other side of thisbreak, we're gonna not just have
that door open, but we're gonnawalk through this. We're gonna explain why
mixing your roof with your foundation isa potentially fatal flaw. This is the
Empowered Retirement Radio Show where we meetyour retirement blossom. Welcome back, everybody

(27:23):
to the final segment of the EmpoweredRetirement Radio Show. Nicktoman and Pete Simbolac
here on a Saturday morning, helpingto make your retirement better. We have
a fantastic show going and we wantto keep that momentum. Pete, we've
been talking about transition and building thatfinancial house and those foundational things, and
we finally just got through that door. We just got through that door.

(27:45):
And we've been talking about some ofthe practical ways and that mindset shift quite
frankly in going from being just goodsavers and those working years to having a
fantastic retirement. So let's keep talkingabout that as we wrap up our show.
And Nick, if I could say, and this is we were just
finishing up with on the other sideof the break, was that the truth
of the matter is the mistakes,the fatal flaw that happens, if I

(28:10):
could use those terms in retirement planning, is that people use We're using a
house as an example, and they'reusing money from the roof to provide what
they need in the foundation down inthe basement, so to speak, the
safe part of the house. Andwhat happens is is that takes away your
security that you have by living andseparating your money. Folks, we're not

(28:37):
telling people not to have money inthe foundations and the roof. We're not
saying take away the money in themarket. We're saying don't take income directly
from it. That if the marketcrashes, it affects your lifestyle. We
don't want that. We want thatmoney to be in the foundation. We
want that to be in the basement. We want that to be every day,

(29:00):
all the time. Twenty four seven, three sixty five. Part of
my French become hell or high water. Whether the markets are good, the
markets are bad, it doesn't matter. That money is there and that's what
gives you the freedom to live.And that can be done multiple ways,
but it is done by separating themoney well. And we want it to
be customized because what you need inyour foundation is different from what your co

(29:23):
workers foundation is going to look like, absolutely because your tools and your puzzle
pieces are different, so it isgonna look completely different. It has to
be customized and specific to you.But there's gonna be some foundational designs into
your house that are gonna matter.When we are in the Midwest, right,
we have different issues that happen toour houses. Right right, we

(29:45):
have extreme weather from hot and cold. We get tornadoes, sometimes we get
flooding. But as a whole,I think probably tornadoes and maybe some hail,
but definitely extreme temperatures affect us.But you go to Arizona. Up
in Arizona, right, there's notthere's not foundational. There's not basements out
there as a whole. They're onslabs. That's right. How often do

(30:07):
you get a tornado? You andI were talking about this before the show.
When I was a little kid,I remember a day we had tornadoes.
I was watching my dad plays softballfor his work softball team, and
that day there were tornadoes in asubdivision where we were looking at moving.
At the time, we had neverlived in a house. We lived in
mobile home and we're looking at moving. And the fact is is that was

(30:27):
such a rarity. It was abig, big, big deal, and
those houses were not prepared to takeon a tornado. Well, I'm different
from Arizona and different from here.Then you go down the floor, I
think of the recent weather. Hurricaneis going on down there. Now,
that's different. The houses are vastlydifferent, built different, And you can
have a foundation a basement down therevery well right now, because this could

(30:48):
get flooded out anyway when hurricane comesthrough. So think about that. When
you're standing around the water cooler,you're talking Uncle Joe at the family get
together. We got the holidays comingup in a few months, and you're
standing around comparing notes. So tospeak, it's different. Your house is
different flows than it is in Arizonathat it is in Wisconsin. Same thing
with your money. But no matterwhat, there are some basic fundamentals that
we are getting wrong as a wholeout there in our society when it comes

(31:11):
to retirement, and the number onething is commingling that money. They're misunderstanding
that diversification. We're not saying don'thave it. We're saying separated. We're
actually talking about having true diversification insideand outside the market. Treat your money
different that is in the foundation thanthe money you have in the roof.

(31:32):
We're not telling you don't have themoney's roof. We're telling you to treat
it different. Well, when youtreat it different and you understand what your
home is going to look like,that's where you can start digging in and
figuring out the right types of toolsto be in out of the market.
Don't do it the other way around. Don't go out and get tools and
then see if you can put themtogether in a way that you want to
figure out what your house is interms of your money, your retirement house,

(31:55):
what your puzzle pieces look like,and then figure out the types of
tools in which to use to buildthat. So I'm going to reverse engineer
a little bit, right, folks, What do you want to have happen?
What is your dream in retirement?How do you go about getting that?
Well? First of all, ifyou have set the money aside,
Now my question comes, how doyou do that the most effective way?

(32:20):
And part of that effectiveness is nothaving to fear every time the market goes
down, not having to fear everytime recession happens. That's what you had
to do when you were working.You were disciplined. You put that money
away. Even if it was automaticand you're getting a match and all those
things, you still put that moneyin way you lived below your means.

(32:42):
Is that what you want to doin retirement? That's not what retirement's about.
If you have the money to notbe in that lifestyle? Does that
make sense? Folks? We're talkingabout building it right and that By the
way, there are some real foundationalthings we haven't mentioned this and I'm going
to mention it now. When wedo planning, we're looking at income planning

(33:04):
right in the foundation. You lookat investment planning that's in the roof.
We're looking at things like legacy planningand healthcare planning, those are more in
the walls and folks, there's atleast five or six different things. And
who's going to be your architect,Who's going to be that guide that helps
you along the way. Well,Pete, I don't need a guide.

(33:27):
I don't need an architect. Ican build it myself. I'm an engineer.
Well, guess what you might bemarried, you might have a significant
other. Do they know how tobuild the house the way you just built
the house? Can they maintain thehouse the way you want? We're maintaining
the house. Probably not, Sothat means you still need somebody because if
you pass away, first, guesswhat happens. That's right, that what

(33:50):
happens. And by the way,in retirement, there is just more that
could happen, and like there's morewhat IFFs. Life is just gonna come
at you much differently than when you'reforty years old or when you're thirty years
old. That's just the reality ofwhether it's health when you're forty all the
one it's come from your kids.That's exactly right. But life is just
full of what ifs, especially whenyou get to be in you're like fifties,

(34:13):
sixties seventies. Not only from familydynamics to health taxes are different.
Life is just different. So that'swhere this whole shift in mindset has to
come. And that's what we're talkingabout where being very passionate and communicating that
it's important to shift that mindset.And if you're listening today and you're not
at that point yet, but youknow deep down you really need to walk

(34:34):
alongside that architect to help you buildout that blueprint specifically to what you want
so that you can live the retirementyou want. Call us today at six
eight two one two seventy three hundredand schedule a one hour complementary visit with
one of our advisors. Complementary thatmeans for except your time, one hour
And I heard you say last week, if it was with me, it
might be an hour and twenty minutes, which that is true. But you

(34:55):
know what in that hour and twentyminutes or that hour together, it is
an opportunity for you to get toknow what we do and how we help
people prepare that blueprint for retirement,and for us to learn about you.
What do you want, what doyou need? What have you done well?
What keeps you up at night.That's what that first visit together is
about. And when we get donetalking through that, after about an hour,

(35:19):
hour and fifteen minutes, if wedecide we want to dig in more
and really take a dive into thefinances, the decision we make is to
have another visit and that's where weroll up our sleeves, we dive in
together and figure out if what wedo is what you need. That's all
it is, Pete, quite simply, that's all symbols. So if you
call us six to eight two onetwo seventy three hundred, we are all

(35:40):
off on the weekends. You're goingto have to leave your name number and
that you're requesting that time together andCaleb will reach back out to you on
Monday to get that on the calendarfor us over the next few weeks.
Folk. So there you have it. This is about transitions. This is
about transitioning into retirement from not justretirement from working to retirement thinking, but

(36:02):
also from old thinking. That getsus a little bit mixed up in our
diversification, right, because it does. We talk about diversification all the time.
Not having all your eggs in onebasket, folks, what is it
when we are diversified within the market. That's one baskets one basket. You

(36:23):
might have large cap, small cap, mid cap, techs, financials,
whatever you go, wherever you wantto go. Those are all eggs.
That's one basket. That is onebasket. So we're diversified within that one
basket. Maybe we have twenty differenteggs, maybe we have three, maybe
we have one hundred. Still onebasket. That's all it is. Let's

(36:43):
separate those baskets. Let's have multiplebaskets things inside the market, outside the
market, and determine what tools right, because that's what you do. You
build a house and you want amenities. The architect is going to have certain
tools to build that house the mostefficient, hopefully the most accurate way,

(37:04):
and as you see plans being builtout, you can make adjustments till it's
done. Once it's done now inour case, yeah, we can still
make adjustments as life happens. Sothat's where the analogy breaks down a little
bit. But the fact of thematter is, folks, if we're using
the wrong philosophy to build a house. If we're building a house like we
were in Arizona and we're building itin Madison, Wisconsin, it might not

(37:29):
work out so well. Or ifwe're trying to build it in from Madison
as well, try to put thatsame house down in Florida. We're going
to get different results when those stormscome through, and those results are not
in our favor. So we gotto change that thought. By the way,
I'm going to be a little bitcynical here for a moment. Why
is it we're taught Why is itwe're taught to use this four percent rule

(37:52):
and take money from the market tocreate our income. I think there's two
reasons. Number One, people arejust following the lead. They don't think
it through, and they're just doingwhat everybody says to do. The other
part is is that the market doesnot want your money to leave the market.
That's right. They want that moneyto stay in there because that's how
we by the way, that's howwe get paid too. But there are

(38:15):
moneys that we need to have outsidethe market and not just inside the market.
Whether that means we get paid onthat or not, that's fiditiary.
That's how we have to think itthrough. And that money outside the market
could be things for income or fora state planning or for whatever the case
is. You've been mentioning throughout thewhole show is have a purpose for your
money. So if your purposes income, that's a certain portion of your money.

(38:37):
If it's growth, if it's fora state, needs, desires,
wishes, that's a whole different deal. So understand what it is, what
is you want, what your visionis? Just dream big. Let's dream
big big, folks. You cantell this conversation can go for a long
time, and that's the point timefor you to have a conversation with us
six or eight two one two seventhree zero. Set up that complementary visit

(39:02):
until next time. Think through yourphysical house, what do you want it
to look like? And then liveyour dream. This has been the Empowered
Retirement radio show where we bring yourretirement visions to life. Investment advisory services
offered through Trek Capital Management, LLCand sec Registered Investment Advisor. Information presented

(39:28):
is for educational purposes only and itshould not be considered specific. Investment advice
does not take into consideration your specificsituation, and does not intend to make
an offer or solicitation for the saleor purchase of any securities or investment strategies.
Investments involved risk and are not guaranteed, and past performance is no guarantee
of future results. For specific taxadvice on any strategy, consults with a

(39:52):
qualified tax professional before implementing any strategydiscussed here in be won in compaishine wos
to don't have my desire