Mitch Lyons Wealth

Mitch Lyons, founder of Mitch Lyons Wealth joins us for a Talk of the Town!

Episode Transcript

Speaker 1 (00:00):
This is Talk of the Town on news Radio WOULD
thirteen hundred and one oh six nine f M, Steve
Kelly and Brett Pakita, a voice you hear on Wood
Radio all the time. Joining us now, Mitch Lyons Mitch
Lyonswealth dot Com. Thank you so much for dropping by today.

Speaker 2 (00:14):
It's great to be here. Guys.

Speaker 1 (00:15):
Let's talk a little bit about your previous life as
a pro football player. How did it help you build
Mitch Lyons Wealth.

Speaker 2 (00:24):
Well, you know, I think a lot of the lessons
I learned throughout my football career, just as far as
discipline and time management and and focusing on your goals
and being regimented in the path to gain to achieve
your goals is the kind of the same thing we're
doing with clients and retirement planning. So there's a lot
of that, and there's a lot of analogies I use,
you know, when it comes to you know, retirement planning,

(00:44):
you know, the retirement red zone and things like that,
which I think maybe we'll get to later. But so
there's a lot of there's a lot of you know, protection,
you know, having the fortitude to make your retirement last,
and a lot of that. The same kind of things
you're trying to do in football.

Speaker 3 (00:57):
So, Steve Kelly, I know your age. I'm not going
to say it right now. Mitch Lions and I are
about the same age, so we're all kind of in
that red zone that you talk about now exactly. Football
fans know what we're talking about. But what does it
mean as far as your retirement plan? Yeah?

Speaker 2 (01:10):
Sure, well in football, hey, it's inside the twenty right,
things get tighter, it's more difficult to get a play
run because there's not as much field to defend. And
it's kind of the same thing in retirement. And I
loosely define it as the five years before and after
you retire. The game changes there because you don't have
thirty years to keep dollar cost averaging in your retirement plan.
At work, your castle's pretty well built. It's time to
fortify it, protect it and make sure your moat's deep enough,

(01:32):
wide enough to keep the marauders out. And the marauders
are you know, hey, market risk, longevity risk, sequence of returns, risk,
interest rate risk, all those factors that can could you know,
topple your retirement in a hurry. You just can't afford
to take that risk at that point.

Speaker 1 (01:45):
We're talking to Mitch Lions, Mitchlyonswealth dot com. Let's talk
a little bit about this stock market, which is kind
of weird. We were talking about COVID and how things
had changed, but the stock market was cooking along during
that time period. Now ever, know while little fear jumps
in and we see some fluctuations. So let's start a
little bit with how should people be when it comes

(02:08):
to the stock market, afraid or prepared?

Speaker 2 (02:10):
Well, I think it's perspective. I think it's where you
are in the course of your your lifetime. Right, Like
we talked about the retirement of red Zone, things changed
a little bit. Hey, if you're thirty five and you've
got twenty five thirty years to retirement, go ahead and
ride that roller coaster of the Wall Street, you know markets,
because over the long haul, it's proven to be a
pretty good accumulation tool, right, I mean, it always comes back.

(02:32):
The problem is though it doesn't always come back in
the same timely fashion. And if you're a retiree, and
I always use the lost decade example of two thousand
and two thousand and nine, your annualized return during that
period of time in the s and P five hundred
was negative one percent for ten years. So in your
first three years of retirement, if you retired to ninety
nine or minus ten minus twelve minus twenty three, you're
in the sand pit trying to dig out, especially if

(02:53):
you're taking with drawls right for for income or retirement.
Your nest egg shrinking quickly. Just about get back to
the top of that sandpit. In two thousan eight came along,
So that is something that you cannot afford to take
the risk of. You know, yes, the market's been good lately,
but as we all know, that can change in a heartbeat,
and it doesn't always come back in the same timely
fashion as it did with the COVID drop. Right, we
had a big drop in COVID. We forget that because

(03:13):
it came back so fast, but they don't always come
back that fast.

Speaker 3 (03:17):
Mitch, you were recently featured in a retirement documentary called
The Retirement Deception. First of all, how cool was that?
And tell us about what that talks about and a
little bit of what you've just mentioned already.

Speaker 2 (03:27):
Yeah, the kind of the thinking behind The Retirement Deception
was to shed light on what's really important in retirement.
You know, we all get caught up. You see these
ads of people walking around with numbers on their head, right,
and they're asking you what's your number? Right? What's your
nest egg have to be? And at the end of
the day, we don't retire on a nest egg, though,
we retire on the income it can produce. And that's
really what the film delves into is how do you
create You know, we've all kind of been deceived to

(03:49):
be honest by Wall Street in the big wirehouses and whatnot.
As far as you know, accumulated, accumulated, accumulate, that's important,
But most importantly, how do you create income as efficiently
as you possibly can? And really, at Mitch Lion's Wealth
to what we help people do is create the income
you need with as little of your nest egg as
you have to. Let's be efficient about doing it, and
then you can you know, you can invest the rest, right,

(04:10):
Let's go buy the income you need by using the
strategies we provide. And then and then they can, you know,
take it easy and relax with the other dollars, they
can put that in the market because they don't need
that for income.

Speaker 1 (04:20):
Smart again, Mitch lyonswealth dot Com Mitch, what's your three
bucket system? Can you?

Speaker 2 (04:25):
Yeah, you know, going back to the football days, right,
Sometimes when things are going wrong in football, you want
to go back to basics, right and keep it simple, right,
Reduce the game plan versus or the playbook versus expand it.
And it's the same thing when it comes to retirement planning.
We use a three bucket system. We've got an income
bucket where I talked about that's the most important thing.
You need income in retirement. That could be your Social Security,

(04:46):
That could be a pension, that could be real estate
income if you've got some rentals, you know it could
be it could be an income annuity. But that's the core, man,
that's the cornerstone that you're you're creating the income you
need in retirement. The next bucket is a protected bucket
where hey, it's there, it's available, you can invest it,
you can tie it to the market, but you're not
taking on any of the risk of the market. You
can reach in there as needed and grab money if

(05:07):
and when you need it. And the third bucket is
the market bucket, and you can be as aggressive as
you want to be on that because you're not dependent
on that in the near future because you've got the income,
you've got the protected bucket. If you need to tap
in for something more, you want to take the kids
or grandkids on a vacation above your normal budget, you
can reach into that protected bucket and you're not dependent
on the market bucket. You can let that run and
you can let it do the roller coaster thing because

(05:29):
you don't need it immediately.

Speaker 3 (05:30):
So Steve mentioned this a little bit earlier, but for
the people that are out there, and it seems to
be more and more as the way you know, retirement
plans are set up, pensions are kind of a thing
maybe of the past, hopefully not if you're in that situation.
But the bulk of the nest egg happens to be
in a company's four oh one K. What do you
advise those people out there to do?

Speaker 2 (05:50):
Yeah, I mean, let's face it, that's been you know,
that's been a major push since the early eighties for hey,
invest in your four o one K, right, Hey, you're
going to save on taxes. Put it in the four
one K at what expense? Though? And that's what I
always ask folks. I mean, number one, you see that
you know, say a five hundred thousand dollars balance in
your four own cakes. You've been working thirty years. What
does it really worth that people will raise their eyebrow?
What do you mean it's five hundred grand? No, because

(06:11):
you have a partner in that, right, and it's called
Uncle Sam. Uncle Sam's a partner. And here's a crazy thing.
You don't know what percentage Uncle Sam owns on that
account with you until it's time to take it out, right,
because we have no idea what tax rates are going
to be in the future. So you're sitting I mean,
what business would you ever go in, Brett? Would you
get in a mortgage and find out what the rate
is at the end of the mortgage? And nobody would

(06:32):
do that, right, nobody would enter any sort of But
that's what we've all been deceived. And that's kind of
what the documentary gets into a little bit too. That's
what we've all been deceived into thinking. Right, and I
don't know about you show a hands how many people
think we're going to see lower tax rates in the
future with you know, thirty six trillion dollars national debt,
so you know, so money stuck in the four oh
and k there's some things you can do. Number one,
you're limited with the investment options that are in the

(06:53):
company plan. So if you're over fifty nine and a half,
even if you're still with the employer. A lot of
people think, oh, I got I can't do anything with
it until I leave. That's not true. Necessarily. You can
do what's called an in service withdrawal. When you're over
fifty nine a half, you can move your money out
of the four one K and move it into an IRA.
Why would you want to do that? You can use
some different investments, some different strategies to protect to create
income for yourself down the road that you don't necessarily

(07:15):
have available to you in the four one K. You
can do you know, you can do a off conversion
and take some of that tax hit away now over
time to lessen, as I say, let a little air
out of the tax balloon and put yourself in a
position where you've got a tax free bucket as well. Wow.

Speaker 1 (07:29):
So informative Mitch Lionswealth dot com the best way to
get a hold of you and maybe schedule some alone time.

Speaker 2 (07:35):
Yeah, you can go right to the site and schedule
a consultation. You can also call eight sixty six eight
five seven eighty three thirty five. That's eight six six
eight five seven eighty three thirty five. And really there's
nothing to you know, there's no heart sell. You know,
it's initial call. It's a zoom. You know. One of
the things that it's great about my business is I've
built it to be virtual. Really, we started that in
twenty nineteen. Was fortunate as COVID hit good time. Then

(07:58):
everybody kind of got used to it right, and it's
just made life a lot simpler for my clients. They
don't have to jump behind a windshield to come to
my office. Doesn't waste time. We don't need all the
brick and mortar. We can just focus on what's most important,
and that's creating income and protection for people in retirement.

Speaker 1 (08:11):
Mitchlyonswealth dot Com Mitch lions great stuff today, Thanks for
coming in.

Speaker 2 (08:16):
I would add too that if they go to the site,
you can get a free copy of The Retirement Deception.
You can get my book Retirement of Steel as well,
and we got a tax tool on there that can
show you exactly what you're going to pay in taxes
and retirement. You can punch your numbers in there. And
it's kind of a sobering look when you see what
you're going to lose in that.

Speaker 1 (08:30):
For okay Man, rock me to sleep tonight. This is
Talk of the Town on news radio within thirteen hundred
and one oh six nine FM