Simply Money

Episode Transcript

(00:06):
Tonight, what do all the mucketyMUCKs think the biggest risk to markets right
now is should you even care?An IRS relief plan that we're throwing the
BS flag on and stay tuned ifyou would like to retire early. You're
listening to Simply Money, presented byall Worth Financial Amami Wagner along with Andy
Shaeffer in for Steve Ruby. Tonight, let's just say this twenty twenty four

(00:27):
has been anything but boring. Wecan get to this right now. We've
had huge developments in the race forthe White House in just the past few
days. We continue to live withhigher inflation by the way, the Federal
Reserve is trying to make a changeto interest rates, conflict in the Middle
East, so much happening. AndI would say, Andy, each of
these things, to varying degrees,impacts our daily lives. But tonight we

(00:49):
went to zero in on the impactthis could have on the markets, and
of course, specifically for most ofus, that means what does this mean
to my four oh one k?Yeah, it was interesting. You know
last week President Biden stepped down orannounced that he wasn't gonna seek a second
term, and the markets didn't reallylike that. We were down about two
percent last week the S and Pfive hundred, and then you know,

(01:11):
we saw that President Trump with youknow, the shots ringing out at his
rally, and the markets because hedodged a bullet literally, yeah, literally
dodged. The markets have responded prettywell this week. And I think that's
a few things that are involved there. Number one, I think there was

(01:32):
someone certainly to be uncertainty about KamalaHarris, and we started to see Democrats
get behind her to some degree witha decent amount of funding. And also
President Trump came back even more vigorousand with a lot more confidence. And
so for investors, once again,it's more about uncertainty. And when we
see that uncertainty start to dissipate oneither side of the aisle, the markets

(01:53):
tend to like that. So,you know, it's interesting when we look
forward. You know, we've lookedat, you know, different surveys,
and one of them is Bank ofAmerica's July survey of fund managers that look
at geopolitical conflict, they look atinflation in a number of other areas,
and for months and months and months, it's been inflation that has been the
biggest driver for fears with with thosefund managers, and just recently over the

(02:16):
last month, geopolitical conflict has comein at number one. And I think
it has a lot to do withnot only what's happening here in the United
States with politics and you know,the election and things like that, but
also around the world, whether it'syou know, there's still turmoil over in
Ukraine, there's still the threat ofChina and Taiwan and so on. So
a lot going on, just likeyou said, Amy, and I think

(02:36):
it's important to just keep a levelheadand you know, stay invested. Yeah,
I think you know a couple ofthings. First of all, you
make a great point. Really,the stock market doesn't care who airs in
the Oval office. They just carethat nothing that they were not anticipating happens,
right, So any major changes thatuncertainty, the stock market hates that.
You know. But I was sayingearlier today to some people on our

(02:58):
team, I've been doing show foralmost a decade now, and for the
first time you really yes, yes, I had. Well, I guess
we kind of came on board atthe same time. I guess it's been
a while. Yeah, And sothe first several years that I was doing
the show. Any given night,we could be talking about anything. There
wasn't like one major thing that dominatedthe markets and the American economy every single

(03:21):
day. And then like kind ofthe Brexit kind of popped up, and
then Brexit went away, and thenthe trade war came up, and we
talked about the trade war a lot, and then like you know, other
things were happening. We were talkingabout other things, and then it was
like global pandemic that's all we talkedabout. And then on the heels of
that, inflation, and I feellike, oh my gosh, we have

(03:42):
talked about inflation so much. Whywell we needed to. I mean,
it was impacting our four to onecase. It was impacting us every time
we went to the pump to fillup, every bill that came in the
mailbox, every time we went tothe grocery store. We're interestingly moving now
out of that time, hopefully intoa time where if you were going to

(04:03):
say, okay, as an investor, what are people really worried about?
Or what should we be worried about? It's kind of like the shift has
moved outside of our house to what'sgoing on somewhere else. And you know,
I think Andy, this makes alot of sense. You think about
when something's happening in your home,someone's sick, you get bad news,
terrible things could be going on outsideyour home. You're going to focus on

(04:25):
what's in your home. But thenwhen things that chaos passes and the illness
passes or whatever the thing is,then you start to look out the windows
again and say, what's going onout there? And I think that's the
shift that we're going through as investors. We're starting to say, Okay,
we made it through this pandemic,we made it through this period of higher
inflation. No, we're not atthe two percent goal that the Federal Reserve,

(04:47):
our nation Central Bank has, butwe're moving closer in that direction.
And as a result, we're startingto look out the windows again and say,
oh, yeah, what's going onelsewhere in the world. Well,
and I think that's fairly common.You know, there's always something to be
worried about. And it's funny,it always seems like I'm on vacation when
things like this happened. In twentyfifteen, when the Brexit occurred, I

(05:08):
was on vacation, and before Iwent to sleep, it seemed like that
wasn't gonna happen. I woke upand everything tore loose because the Brexit actually
did happen. So, you know, I was just on vacation last week
and I got to our destination onSunday and these shooting at Donald Trump had
just happened. And I think thepoint is is that when you look at

(05:29):
you shouldn't go on vacation anymore.Yeah, right, maybe I shouldn't.
The point is never allowed to goon vacation again, noted, But I
think you know, we talk aboutthe wall of worry quite often, and
there's things that have happened throughout ourhistory, whether it's the Great Depression,
the Cuban Missile Crisis, World Wartwo, nine to eleven. The markets
have one hundred percent of the timemet and exceeded their previous highs. It's

(05:54):
just a matter of time. Sowhile we should definitely be concerned about things
that are going on, not onlyhere to mess but globally, I think
the lesson is is that as longas the consumer is still fairly healthy and
jobs are still pretty good, Imean, unemployment is ticked up a little
bit, but if you have theability to continue to earn a wage that
translates to consumer spending in retail sales, and that's seventy percent of our total

(06:17):
GDP. So in spite of allof these things that are going on geopolitically,
you know, the United States continuesto thrive and the markets have always
met and exceeded their previous highs.You're listening to Simply Money presented by all
Worth Financial le Memi Wagner along withAndy Schaeffer and for Steve Reebe tonight as
we talk about new research out thattalk to fund manager. So these are

(06:39):
people who are really interested in keepingtheir fingers on the pulse of what's going
on in the economy and the market. And the research that's just recently released
said, hey, we're no longeras worried about inflation, is no longer
our top concern. We're shifting ourconcern to geopolitical events that are happening across
the globe. And Andy, Ithink if you look at what other potential

(07:00):
things we could be worried about,you know, it's an interesting mix.
The fact that we are looking elsewherehard landing or recession. You know,
Andy Stout, our chief investment officer, was just saying yesterday he said,
well, some leading, leading economicindicators are talking about the fact that maybe
toward the end of this year,at the beginning of next year, we
could be looking at the potential fora recession. But like, how leading

(07:24):
have those indicators been lately. Imean, they've kind of been all over
the place. We've seen all kindsof headlines of you know, all these
people trying to say, oh,you know, over the past two or
three years, recession is coming theworst that we've ever seen. Haven't seen
it. Will a recession come,Absolutely, It's a normal and healthy part
of the economic cycle. But it'snothing that anyone is sort of sounding bells

(07:46):
or whistles about and saying the skyis falling right now. So we'll call
that a win there. Yeah,you know, interesting that was down on
the list. Were there some ofthose things that you mentioned, you know,
hard landing recession. So let's talkabout that a minute. You know,
I think the Fed botched not beingtoo quick to you know, raise
rates when we were coming out ofthe pandemic, we had all that money

(08:09):
flowing into the economy. You know, their terminology was, well, we
have high inflation, but it's transitory. It's gonna work itself out, and
that wasn't the case. On theother side, I think that they've handled
the last year very very well,you know. And and my analogy is,
think about landing a plane, youknow, when you're you're high in
the sky, and think about highinflation, for instance, you want to

(08:31):
come down. You're coming down fastout of the sky, but once you
get to that runway, you wantto level off and land that plane super
gently, because if you go oneway or the other, that can be
a big problem. If we endedup, you know, cutting rates too
quick, that would reignite inflation,and that's certainly not where we would be.
But if you cut too quickly,that could easily put us into recessions.

(08:54):
So it was a very delicate balance. But what we've seen lately is
that you know, we have PCEcoming out tomorrow and we think that is
probably going to be around two anda half the preferred inflation measures too.
Core pieces he were already seeing ataround two. So I think they've done
the job there, and that makesa lot of sense. When fund managers
put a hard landing or recession downon the list. It was very high

(09:16):
at the beginning of the year,but we're starting to see that that threat
start to dissipate to some degree.Well, to your point, I think
you're exactly right. I think there'sa lot of criticism out there for how
the Federal Reserve initially handled this higherinflation, but you know, we expected
that hand in hand with bringing inflationdown, the result would be a recession

(09:37):
and the likelihood that we would seethat. You know, I've likened it
to the Miracle on the Hudson.There were so many different factors going into
that that it would be really,really difficult to land that plane on the
water with nobody getting hurt. Andit appears that the Federal Reserve was able
to maneuver through everything else coming atit and potentially land that plane on the

(09:58):
Hudson and without people getting hurt.And yeah, so I think to your
point, it makes sense that that'sno longer sort of high up on the
list of worries. You know,another worry that potentially looking at here is
an election sweep. And gosh,I mean, you've been doing this for
a long time. People get reallyantsy, really nervous, really worried,
pick your adjective. When we getclose to these elections you are, you

(10:22):
know, and I get it.People are incredibly passionate about politics and their
parties and what they believe. Theproblem is when you mix how you feel
about politics with what you're doing withyour money, it's a recipe for disaster.
One of the things I love thatwe do on the show, and
I think there's so much value init, is to provide the historical perspective

(10:43):
of you know, we've gone backto the nineteen twenties and said, if
a Democratic president is elected or Republicanpresident, here's what's happened the year there's
elective. Here's what's happened the fouryears after. Here's what's happened if the
entire oval office and one party controlsCongress, and the difference is negligible.

(11:03):
I mean it is negligible. Thankgoodness. The American economy is so much
bigger than our political system. Andyou can try to get super nuanced and
say, Okay, well, thisperson's policy means this kind of company would
do well. And I've seen peoplebet on that in the past they just
lose. Yeah, And I thinklet's talk about the US election sweep.

(11:24):
So why is that something that canbe a concern versus let's say just a
Democratic president or a Republican president.And you know, I think investors generally
like stalemate in Washington, right,and so we don't want, Yeah,
we don't want Congress to muck itup. We really don't want them to
get a whole lot of accomplished sothat we can continue and have some certainty

(11:48):
about where we are as an economy. So it doesn't say a Democratic president
elected or a Republican president elected,they say a sweep. And so I
do think if there was a sweep, let's say, a significant win by
the Republicans in the House and theSenate and also the presidency or vice versa
with the Democrats, then they canget a lot accomplished and get things done.

(12:09):
I think the reason that the electionsweep is no longer eye on their
list is that the probability is isthat there's going to be fairly much of
a stalemate. I mean, ifthe Senate flips to the Republicans and that
House flips to the Democrats, that'skind of what we're looking at. And
even if one of those parties winsone side or the other, they're not
going to have a majority. Wherethey're going to be able to get a

(12:31):
lot of accomplished, so that particularworry is starting to be diminished as well.
Yeah, no progress in Washington iswhat we're used to, It's what
the markets are used to. Here'sthe all Worth advice. This is just
really another reminder that you need tohave a highly diversified portfolio because that is
going to focus on the long term, whether there's geo political events, bubbles,

(12:52):
crashes, so much more. Don'tlet the headlines scare you. Stick
with your long term financial plan.Coming up, the IRS just made it
easy to pull some emergency cash outof your retirement account. No penalty is
involved. We're gonna tell you whywe think that's dangerous. Coming up,
you're listening to Simply Money, presentedby all Worth Financial. Here in fifty
five KRC, the talk station.You're listening to Simply Money, persented by

(13:18):
all Worth Financial Ammi Wagner along withAndy Shaefer. If you can't listen to
our show every night, you don'thave to miss a thing. We have
a daily podcast for you. Justsearch Simply Money. It's right there on
the iHeart app or wherever you getyour podcasts. Coming up at six forty
three. We're gonna help you achievea phased retirement. What does that mean,
why it can help you. We'llget into that. Okay, good

(13:41):
luck these days determining whether an emailyou get is actually legit or whether it's
a total scam. So last week, Andy, you mentioned you're on vacation.
I was out too. I wasactually on the beach checking my email
because I can never truly disconnect.And I get this email from the Social
Security and it's telling me I needto like log on and update information.

(14:03):
And I forwarded to our producer andI'm like, I don't even know if
this is legit, you know,because we tell people all the time,
like you know, so many times, if you're getting an email from one
of these organizations, it's a scam. Here's the deal. This time,
that particular email was not a scam. Yeah, you know, everybody is
very wary of clicking on links.You know, you have to do this

(14:26):
from any type of organization. Iknow, within our own company, Amy
l Worth Financial, we're very specificand diligent about phishing and scams and things
like that to where we test ouremployees and I'm always so what we'll try
to do is is really entice theemployee to say, you know, click
on particular links, and one exampleis, hey, you got an update

(14:48):
on your bonus coming up and clickon this link to see what it is.
Well, we're trained to try topick out different fishing and scams,
and so when you get something likethis, obviously you're going to be hesitan
in about it. And I thinkyou know, if you do get something
like this, it's important maybe toreach out to Social security or go to
their website to see if it islegit. I think the problem with this

(15:09):
one was is that you know,well, first of all, the reason
for this email was that you hadto they're phasing out old user names and
passwords. They want to continue tokeep security tight. They want you to
follow the prompts to get new logins, new passwords, and those types of
things. The problem is is thatthere's so many different variations to this email,
which makes it confusing. And somaybe your your mom or dad,

(15:33):
or cousin or sister might have anemail that looks different from you. So
if you reach out to them andsay, hey, you know, mine
doesn't look legit, they might say, well, mine looks different than yours,
but it was legit. You're goingto be hesitant to click on that,
so I think Social Security kind ofbotched this whole thing. Yeah,
but but make no mistake, itis important for you to go in and

(15:54):
change those user names and passwords becauseyou want to make sure you're protected with
sensitive information like that. Yeah,it is legit. And finally they sent
out a press release and we're like, hey, that email that many of
you likely already deleted was actually somethingthat you need to take care of.
The interesting thing is we've looked allover the place, really no deadline for
when you need to take care ofthat. Buy but I would say,

(16:15):
hey, this is important, solike get in there and do that asap.
I don't know, I'll probably dragmy feet on it. We'll get
to it sometime this year. Listen. We are uber focused here on the
show and making sure that you makesmart money decisions and that you can take
care of your current self but alsoyour future self. And what really bothers

(16:36):
me sometime is when someone walks intomy office and they're like, listen,
I have this need for some moneyand I'm just gonna pull it out of
my four one K and I'm like, well, let's talk through this,
because there's probably seventeen other places thatwe can go to here. And so
now there is a new option fromthe IRS. They just loosened their rules
on your retirement account, so you'refour to one K and staid you can

(16:57):
actually take a thousand bus out ofthere for no particular reason. So in
the past, there were certain reasonsyou could take, like medical hardships and
things like that, and you hadto provide documentation that. That's why now
they're saying thousand dollars out at anypoint, and all you got to do
is say, I've got an emergency. I do not like this. I
don't like it, but I don'thate it. And here's kind of where

(17:21):
I am on it. I thinkthere obviously are better ways to approach making
sure that you're not in a positionto where you have to pull money out
of your eye r For instance,we always talk about having an emergency fund.
You know. You know, mywife's car broke down yesterday, for
instance, and that's you know,just getting a rental car for the week
is going to cost eight hundred dollarsand we don't even know what you know,

(17:41):
what's going to happen as far aswhat the repairs are going to be,
so obviously the primary thing would behave an emergency fund that you have
liquidity available to be able to dothat. On the other hand, times
are tough. People have been dealingwith inflation. You know, the grocery
store prices are still high. Youknow, it's just expenses in general.

(18:03):
And so I do like the factthat the IRS is making it easier to
get to your money. However,when you pull money out of an IRA,
for instance, obviously this money isn'tgoing to be penalized, that's the
point of it, but you're stillgoing to owe income taxes on it.
And furthermore, any money that youpull out of your IRA, whether it's
a loan or even this emergency fund, that you lose the opportunitity to make

(18:27):
more tax for growth with with thatmoney in your account, and especially when
the market's you know, up almosteighteen nineteen twenty percent, so you know,
it's important to try to create emergencyfunds. You know, interest rates
are high, so borrowing is notyou know, ideal either, so this
should be used as a last resort. But I do like the fact that

(18:48):
the IRS does make it easier toget to your money if you need it
and you're in a big pitch.I just think it makes it so easy
to just pull money out vacation.Yeah. I can just see people making
this doing this for not smart reasons. Here's the deal. Your employer has
to have adopted this provision, right. It's not a mandatory thing. So

(19:10):
if this is something you're interested,you're going to have to check on it.
You can only make one emergency withdrawala year. You've got three years
to pay it back after the withdrawal, then you can take it out again.
I just feel like this is ayo yo and I don't love it,
and I just think, hey,please treat your retirement accounts like a
pension where you can't touch them.You're going to thank yourself when you get
to retirement and you actually have somemoney there. Here's the all Worth advice.

(19:34):
Taking any money from a retirement accounttoo early, just understand this.
It can be a dangerous habit.Please be very very careful coming up next,
any life events where you can delayfinancial progress and maybe be okay with
it. We're going to get intothat question next. You're listening to simply
money presented by all Worth Financial.Here in fifty five KRC, the talk
station you're listening to Simply Money,presented by all Worth Financially Mimi Wagner along

(20:02):
with Steve Ruby. You know,sometimes, if you think about it,
major life moments can also come ata cost. Joining us tonight with his
perspective on that is, of course, our good friend Al Riddick from Game
Time Budgeting, How you and yourwife are actually celebrating a pretty big milestone
this year? Tell us about it. Yes, we are, Amy,
So this year, my wife andI will celebrate a milestone birthday. I

(20:26):
won't tell you the number because mywife might get upset, but it's a
pretty big number in the Riddick household. So you're turning thirty, is what
you're saying. You're turning thirty.We're turning thirty for maybe like the second
time. Almost. We'll go withthat. Okay, So how are you
I know, nothing happens in theRiddic houcil without major planning. So how

(20:51):
are you planning for the milestone?So, first of all, Amy,
I have to tell you when.Of course, my wife and I we
plan in advance for everything. Yeah, when we started talking about this milestone
birthday. I was asking my wife, so, how do you want to
celebrate now? These were her words. She said, I don't know yet,
but I want to do something big. Now. Amy, When I

(21:14):
heard those two words put together thesame sentence, something big, my heart
started county because I knew that thatequated to a whole lot of money.
You know, you heard ching chexactly exactly. So we started having some
discussions, and what we want todo for this milestone occasion is take a

(21:34):
two week vacation. Now, whenyou think about it, Amy, we
travel quite a bit, but canyou believe we have never actually gone somewhere
for fourteen days. We've been upto like ten, eleven and twelve days,
but never fourteen. So this yearwe want to do the two week
vacation, and we haven't decided ifwe're going to do two weeks in one

(21:55):
country or one week in one country. They fly to another country for the
set second week, so that shouldbe quite intriguing. But the cool part
is about the planning process. Soluckily I started asking my wife tons of
questions about how she wanted to celebratemonths ago, and I have already begun
stashed more money in the vacation accountbecause of this humongous expense that will be

(22:22):
waited for us in the future.All right, We've got a couple questions
about that for you. Al Firstof all, how far in advance,
right, I mean everyone knows it'slike I'm forty seven. I've kind of
joked with my husband for years.Oh, I want to do this when
I turned fifty, and I wantto do this when I turn with fifty.
So at what point do you actuallyget down to the brass tacks of
Okay, here's what we think wewant to do, or here's how much

(22:42):
we think it's going to cost,and so we have to budget for it.
And then also, not only howfar out are you planning, but
if you were taking money, right, extra money and putting it into the
vacation fund, are you sacrificing elsewherewhere is that money coming from? So
I'm going to address all of thosequestions, hopefully with this one explanation.

(23:03):
So my wife and I we planone year in advance regarding the amount of
money that we want to use fortravel in a specific year. So usually
by December thirty first of every year, we have all the money that we
will need to travel for the nexttwelve months make sense so far. So

(23:25):
when I started asking my wife thisquestion about what she wanted to do,
I'm already like nine months out fromthe actual event. So then I just
figured out how I could start funnelingmore money towards a vacation account. Because
it's only two ways to solve amoney problem, either A increase your income
or B decrease your living expenses.Now you can probably tell Amy my wife

(23:49):
and I we don't live an extravagantlifestyle, but for this expense, we
decided to go with option A,which was increase your income. So in
addition to my wife getting a raiseon her job, I thought I'd give
myself a raise as well, justso I wouldn't feel left out. Yeah,
you know, I love that,Alan. I also think the key

(24:11):
here is planning. And you know, for so many people, you know
major expense is a vacation, andyet is one is coming up, they'll
wait until it gets there and makethe plans or whatever, and then try
to figure out later how to payfor it right, and then it often
ends up being on a credit cardand and costing way more than it should.
So you never wait until you're monthsahead and you already have that money

(24:36):
sitting there ready for whatever, whichI imagine then makes it feel like when
you're on that trip, maybe yousplurge on the extra drink, or maybe
you, you know, go tothe nicer restaurant because you have planned for
that. That is so true,Amy, And to break it down even
more for your listeners, I'm justgonna use some fictitious numbers. Let's assume
that maybe you spend about, Idon't know, twenty four hundred bucks on

(25:00):
your average vacation. Now, itcould be double that, it could be
triple, who knows, but let'sjust use twenty four hundred as an example.
Right, So, if you aremanaging money correctly, why not go
ahead and add a line item toyour monthly budget and you could use the
title vacation fund. So as you'remaking money throughout the year, set up

(25:22):
an automatic transfer from your checking accountto this vacation fund, and just fund
that account every month with two hundredbucks so that by the time you reach
your vacation month, you have thecash to pay for it. Now,
if you're a little bit behind inyour planning, you cannot like divide by

(25:42):
twelve. You might just have todivide by six or eight or nine months.
But the goal is to plan farenough in advance so that you can
break that expense down to a costper month and just set up an automatic
transfer so that when you're on thatvacation, you don't have to worry about
that big credit card deal that mightbe coming when you return home, because

(26:03):
you have the peace of mind ofknowing that the cash is already sitting there
to take care of whatever expenses youincur. You're listening to Simply Money,
presented by all Worth Financial and AmiWagner along with Steve Ruby, and we
are joined by our good friend AlRiddick tonight talking about celebrating a major milestone
birthday this year. You know,we all have those years where something big
is coming and we want to celebrateit. But the key is to plan

(26:27):
for that and to plan in advance. You know how you made the comment
earlier that you and your wife don'tlive extravagantly, but what you do spend
on and what is a top priorityfor you is travel. So talk about
how you balance that. Right.It's not that you're going out for fancy
dinners every night on the weekends whenyou're home. Right, you figured out

(26:48):
one thing that matters to both ofyou, and you prioritize that financially.
That is so true, Amy,And to further expand upon what you just
said, my wife, for ourobviously we have spent hours and hours and
hours talking about personal finance. Sofor us as a couple and as a
household, we have discovered that thethree things we value most in no particular

(27:12):
order, is travel, philanthropy,and saving for retirement. So whenever money
comes into the household, we sitdown together as a couple and we allocate
money to those three things first beforewe spend it anywhere else, because we
want to make sure that we keepsupporting the things that we value, and

(27:34):
because we know that you know,we might not spend a ton of money
eating out, but we do spenda ton of money in other ways.
Travel for example. But when youplan for it, even though it's what
I would consider a large amount ofmoney, it doesn't feel like it because
we planned in advance, and we'respending money on the things that we value,

(27:56):
which is the experience of travel.And I think from marriages, right,
getting both of you on the samepage, behind whatever those goals are,
makes money decisions that much easier.Hour running out of time, but
I want you to really speak tothat. You know, you kind of
hold everything up to that lens ofis it one of our major goals exactly?

(28:17):
So whatever your goalie is as acouple, sit down and make the
money aligned to the goal that you'retrying to achieve. You will have to
minimize your emotions because keep in mind, money is math and math is money,
so let the numbers guide your decisionsbefore you get too emotional. I
love that great advice as always fromour good friend Al Riddick. If you

(28:41):
have had a big vacation or maybea family wedding, something that you are
saving for coming up, the keyis to plan and advance, to budget
for it, to direct extra dollarsto it so that it doesn't catch you
off guard. You're listening to SimplyMoney because some of my all Worth Financial
here in fifty five KRC the talkstation. You're listening to Simply Money presented

(29:06):
by all Worth Financial. I memeanwag and you're a long with Andy Schaeffer.
Do you have a financial question?It's keeping you up at night.
You're and your spouse not on thesame page about We'll help you figure it
out. There's a red button youcan click on while you're listening to the
show. It's right there on theiHeart app. Record your question. It's
coming straight to us and straight ahead. You're just done Facebook scrolling around.
Have you ever thought about does thatmake you spend more money? You will

(29:29):
be really surprised by the influence influencershave. We'll get into that next.
Okay, so you've worked somewhere forthirty years, You've been you know,
decades and decades of working. You'reready to be done. And for some
people they can quit cold turkey andleave the workforce and they never have to
look back. But Andy, Iwould say practically, for a lot of
people, that doesn't work out.The numbers don't work out. Maybe you're

(29:53):
emotionally not ready to retire, andso there's an option. And I don't
think a lot of people think aboutthis, but it's more of a phased
retirement. Yeah, the way thatour society is now, it's not like
it was forty fifty years ago.You know, when my grandparents were working.
You worked one job, you workedat for thirty forty years. You

(30:14):
retired, you relied on your pensionand your Social Security and really didn't have
a whole lot of savings, andthat's just kind of how it was.
Well, obviously pensions have gone bythe wayside to some degree, and I
think, you know, a phaseout approach. If you have the opportunity
to have a phase out approach,I think can be very beneficial. I
have a lot of clients in differentindustries that want to pull back a little
bit on their careers but still reallyenjoy what they're doing. I see it

(30:37):
a lot with engineers. They reallyenjoy their careers and maybe they work part
time. Even in our industry,advisors the same way. So if you
have the ability to phase out tosome degree or find another career path where
you can work part time, Ithink that's beneficial. Yeah, my dad,
Gary Waggs, you were saying,like two generations to go. My
dad interned at the same place thathe retires hired from. That's amazing.

(31:00):
All of those years, same yeah, same company, the institutional knowledge,
and that man's brain was just insane. And so when he got to his
early sixties and was ready to go, you know, it was weird for
him to think about totally stepping awaybeen in his life for you know,
forty something years, and at thesame time they weren't ready to let him

(31:21):
go, and so he went fromfive days to four, then down to
three, down to two, andthere was this sort of transition of knowledge
and you know, responsibilities, andit actually worked out great for him.
There's not a lot of companies thathave really kind of fully signed on for
this and said, hey, we'regoing to do this. But if this
is something you think you might beinterested in, talk to HR right a

(31:44):
couple of years ahead and say like, hey, i'd like to retire in
a few years, I'd like tostay Like, is there a way that
it just get out kind of readfrom them, because I think this can
be so beneficial, first of allfrom an emotional standpoint, right to slowly
transition, But secondly, there's alsoa huge financial benefit to still having money
coming in for a few extra yearsand not having to be pulling money out

(32:07):
of what you've set aside for retirement. Yeah, and if even if it's
something that you're interested in that's notwithin your particular career at the moment,
you know, maybe you're interested inyou know, I have some clients that
are at the home and Garden centerat Low's. Now, I will say
be careful for the generation above me. I'm generation X. What happens,
though, if you're looking for apart time job is the fact that you
show up and you're there on timeand you do diligenibly the work ethic.

(32:29):
Yeah, right, before you knowit, you are the manager of that
department. So make sure you setboundaries if you do want to work part
time in a new career, becauseI see that all the time with the
generation above us. Yeah, Ithink you can just look at this from
a money standpoint, right, Ifyou have only one hundred thousand dollars maybe
set aside for retirement, you expectit's going to earn five percent. You're
getting two thousand dollars in Social Security, and you think you're going to spend

(32:52):
about forty thousand dollars in retirement everyyear. Okay, Well, then you've
got a factor and inflation here.If you're going to retire and quit cold
turkey, that money is going tolast you seven years. It's funny.
And someone's in my office recently.I came in for the first time and
he had met with someone several yearsago from you know, another firm,

(33:12):
and they had done the numbers andthey came to him and they said,
yeah, yeah, you can retire. When you went to it's gonna be
great, it's gonna work out,and like kind of under the breath,
they said until you're eighty two andlike, and it was like, this
plan works if you don't. AndI'm like, looking at this man,
super healthy, super fit, hecoaches basketball, I'm like, you could
likely live into your nineties, youknow, So saying yeah, you can

(33:35):
go ahead, quit whenever you wantcold turkey, walk away from that job,
never work another day. You're gonnabe good for a few years,
you know, Like this is informationyou need to know. And you really
got a think throw well. AndI think another area is as opposed to
the phase phase in approach, isthe phase down approach. Maybe you decide
that you want to spend a lotmore money in your early years of retirement

(33:58):
where you have a decent amount ofwealth, and want to cut back on
your spending later in life too.So that's another way to look at your
spending an approach, particularly with thecost of inflation and those goods. Most
people do a little bit more intheir early years of retirement than they do
in their later years. I thinkyou touched on a great point, though.
It doesn't have to be that you'rebringing in the same paycheck that you
have been for years. If youlove gardening and you want to work at

(34:20):
Lowe's Garden Center, you're still bringingin a little bit of a paycheck.
That's great. That's the money thatyou don't have to pull out. There's
lots of options here, and Ithink you know, for those who are
really black and white thinkers, thisis just another way to think about maybe
a potential for you when it comesto retirement. Here's the all Worth advice.
The earlier you can think about whatevertype of retirement strategy that makes sense
to you. The sooner maybe thatyou can plan to accomplish a phased approach

(34:43):
if that's what makes the most sense. Coming up next, we're looking at
some ways to keep yourself from wastingmoney. While you're on social media.
You're listening to Simply Money presented byall Worth Financial. Here in fifty five
KRC the talk station, you're listeningto Simply Money presented by all Worth Financial.
I mean you Wagner along with AndySchaeffer and I don't know, maybe

(35:06):
this hasn't happened to you, Itcertainly has happened to me. I'm scrolling
on Facebook and all of a suddenan ad pops up for something I've never
thought that I needed before, orsomeone that I follow is talking about a
product, and all of a sudden, I am down this rabbit hole.
I am on the website, Iam on Amazon figuring how much it is,
and I'm like, wait a second. If I hadn't just gotten on
social media, I would have neverever heard a million years out of even

(35:29):
buying these things. Now there's onein ten Americans who are saying I'm a
compulsive shopper and I'm accumulating credit carddebt, and a lot of this might
have to point back to social media. Yeah, I think that you want
to take a close look on yoursocial media approach and your time on it,

(35:50):
because these sites are really good atenticing you to buy more things.
You know, think about something assimple as Facebook. You know, there
is some adrenaline and that you receiveif somebody likes something that you post,
and not only that, when youhave these shopping apps like Amazon, for
instance, well you're going to lookfor a cooler, well you're going to
have. If you're going to lookfor a cooler, maybe you would like

(36:13):
some beach towels and sandals and thingslike that as well. And they can
be very enticing by their approach ofhow you go about doing it, and
you will, you know, youwill find an array of expensive products thrown
in your face for any type ofsubscriptions. And Amy, I think you've
been through this before, and mostpeople have. You know, sometimes I
feel like I'm just thinking about aproduct and all of a sudden, I'm

(36:35):
getting ads for it. It's amazinghow that works. And I'm not sure
the technology behind it, but it'sa little bit unnerving to me. But
they're very talented about what they doand how they approach you and what the
things that you like. And withyour shop. You know, you go
to Kroger and you buy some things, they know exactly what you like,
so they market towards that. Soyou just really want to be careful with
it. I love it. Youjust made that point to Last week we

(36:58):
were on vacation and we were inthe water looking at the beach and there
were all these people that had thesetwo shades of blue tents set up all
the way down the beach, andI was like, yeah, I was
in Hillton. Yeah, they're everywhere, right everywhere. I was nowhere near
my phone. I was not scrolling. I didn't look it up. I
got back to the house we werestaying in, was just going through Facebook

(37:21):
and the first ad that pops upis those things, and I was like,
that is creepy. I was onehundred yards of read from my phone,
wasn't even looking at it. ButI think what you have to understand
is that when you are looking atsocial media, every component of it is
designed to better understand you and tomarket better to you. And I've got
four teenagers in my house, andyou know, every one of them at

(37:43):
different times it's come to me sayingthey need something that they saw on social
media. You know, they followthese influencers. My son loves basketball,
so we follows different influencers. Whathe doesn't understand is he doesn't need those
shoes, but they look really coolbecause this guy that he follows has this
particular kind of or you know,my son has the crazy hair that all
the teenagers have. Now there's sevendifferent kinds of products that are being marketed

(38:06):
to him to make his hair looklike that. You know, my daughter
is same thing and so. ButI think even as adults, we don't
realize that. You know, we'refollowing someone and the next thing we know,
you know, I'm on Nordstrom's websitelooking at something that's way more expensive
than I wouldn't necessarily buy because someoneI like is talking about that dress.
You know, it's a slippery slope. And for people when we see that

(38:29):
credit card debt is at the highestlevel it's ever been in our country.
Please just know when you get onsocial media, set some boundaries for yourself.
We've talked about this on the showmany times. Put something in your
cart and make yourself wait twenty fourhours before you buy it. Right.
If you still need it when you'renot on social media later, well then
maybe you can seriously consider it.But please please retect protect yourself from taking

(38:51):
on unnecessary debt because of social media. Thanks for listening tonight. You've been
listening to Simply Money, presented byall Worth Financial here in fifty five KRC,
the talk station