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August 20, 2023 • 44 mins
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(00:01):
In your corner, saving one investorat a time. I'm working for clients,
not companies, all while bullyproofing portfolios, totally committed to sharing academic truths
of batimistic always representing Main Street andnot Wall Street. Team. It's your
Sun Money team. And this isthe Sound Money Investment Show with Drown Financial

(00:22):
Advisors. Hello and welcome to theSound Many Investment Show with Brown Financial Advisors.
I'm Greg Brown and I'm James Borthand we are a registered investment advisory
firm. We are independent. Wedo work for clients and not companies.
To receive your complementary and personalized financialincompliant give us a call at five point

(00:42):
three seven five nine six five fourif you're seeking advice old four one K
four three B some type of employersponsored plan, even an anyway analysis.
And here's the point. Before youdo that, fateful, roll over to
the IRA the anyway analysis. Ifyou're not wonder with the company than aserule,
your money should not be there either, so we can help you roll

(01:03):
that out into a tax liltual IRAtake control of your money anyway. Otherwise,
give us a call five one threefive seven five nine six five four
our website Brown Financial Advisors dot com, Email team at Brown Financial Advisors dot
com. Our home offices in Moford, but we also have locations in Blue
Ash, Weceuster and Florence, gregYou know, when you mentioned the NUA,

(01:26):
it's a choice you can make ondoing a rollover properly from the corporate
health stock and a four one Kfiguring out the right amount to put into
after tax account versus remain in thetax deferred account. There's there's kind of
a mathematical science to that to getit right. You know, if you
don't do it right to the IRA, then you're going to give unnecessary money

(01:47):
to the irs. So some thingsto keep in mind, and the more
money you keep on your side ofthe balance sheet over time deferred growing at
some average way to return over timewhen you look back at the end of
your days, the end of retirement, back to the retirement event itself,
the kind of additional capital resources andbucket of money that exists for a significant

(02:07):
other when you leave it behind,or beneficiaries and errors, it can be
significant. So getting it right,you know, you get one real good
shot at retiring. Rarely do youget redos and as you enter it retirement,
it's very likely something you haven't donebefore. Well, we see it.
We see it all the time.Now it's true. Is your active

(02:30):
advisors here and and key team atPrown Financial Advisors, the Sound Money team.
We have seen about I would say, anywhere from five hundred to nine
hundred interactions with households, clients prospectsper year. So it's like we get
to lift the roof off of youknow, these homes, of all these
people from a financial perspective, seewhat works, what doesn't, and so

(02:53):
we have a great deal of experience, even though we haven't entered retirement ourselves.
We've seen over the past fifteen totwenty years, gosh, you know
ten fifteen thousand households, and youknow that doesn't mean all of those are
our clients. We advise a lotof people at different levels. Were a
holistic firm ISSH you've heard taxes,insurance, investments, financial planning, income

(03:15):
planning. We help a lot ofpeople at many different levels. So the
magnitude that impact and the magnitude ofwhat we've been able to see what people
intend to do, what they're doing, what they shouldn't do, what works,
and what doesn't work. It's it'ssignificant, and we ask you to
consider leveraging this experience so that youmake the best of your retirement decisions as

(03:36):
you enter retirement and get it right, get it right the first time,
the only time right. And todayyou know our subject isn't isn't too far
away from this conceptually Today it's retirementcosts that you should not underestimate. You
underestimate the expense side. You'll besurprised at how much additional income you'd create

(03:58):
from your investments, more so thanyou anticipated, which could drive down the
value of those long term buckets ofmoney on an accelerated basis, causing them
to maybe not last as long asyou do, in effect outliving your money.
You don't want to do that.So, understanding the three primary ways
that people may underestimate the cost ofliving in your retirement, let's kind of

(04:20):
jump in. Have you not underestimatedthe cost of something before? Right,
You've been there, We've all beenthere. But let's use college tuition as
an example, because we all knowhow expensive college has become. It's led
people to wonder, you know,is it worth it? Should they go?
They see very prominent celebrity type peoplethat bypass the college and educational phase

(04:42):
their life and jump right into whatthey believe a productive life, you know,
a career path of some kind.It's still I would say, we
wouldn't recommend that. Still, tryto get all the education on your sides
you can. They always say thatthat's the one thing that no one can
ever take away from you. Socourage that to still be true for you.
Now. Well, one issue youmight want to debate is what type

(05:04):
of degree is the young and goingfor. So when you have the Childland's
going off to college getting what seemslike a degree under water basket weaving or
something productive like that, you knowthat's maybe the point. But still getting
a productive, usually business related degreeis the point about the importance of a

(05:27):
good college degree. It certainly iseven today. Probably the many decades that
a business degree is a foundational basisof knowledge that can be so applied in
many directions is so true still today. And then larry on top of that
some special interest or direction or whateverthe whatever the analysts are saying the best

(05:48):
direction for college equaling career equaling payand the ability to pay off some of
this sticker shock tuition that you mayencounter where you're trying to put or help
other people go through school, particularlycertain schools, and we've we've all seen
children, maybe grandchildren, having adesire to go a certain school, maybe

(06:10):
an in state prominent school has thebig college sports program, it has just
you know, it's it's alma materof the other family members, or wanting
to go just across the border andbecome an out of state student and get
clovered with you know, not havingin state tuition. A lot of factors
here as your approach retirement, though, it needs to become more about your

(06:30):
story and your income and the reliability, predictability and efficiency of that income,
and to turn the corner on beingthat wallet and purse for the entire family
tree. You know, you doit her accumulation phase. You're the go
to vacations, special needs, firstcars, just always there, you know,

(06:51):
private tuition to private schools in theall through elementary, junior, high,
high school, whatever your situation is, You've always been that go to
in all likelihood, but turning thatcorner to where you can offer love,
place to sleep in, some foodwhen your children kind of hit a crossroads
of difficulty and stopping shy of justtrying to fix all their problems financially.

(07:12):
It's that's one of the most criticalthings. I think you fight the fire
against spending more than you thought youwould in retirement. That's not one of
our real talking points in our informationwin share today, but that's just from
the heart. There's one from experiencefor you. If you're out there experiencing
that, you gotta get some help. You gotta get some help. That's
a black hole that could really wipeyour retirement ambitions off the map. And

(07:36):
terms of costs for just the collegeconcept, here the College Board reports,
and this is a board that hasannual statistics on college expenses their surveys.
It reports that moderate college budgets foran in state public college average nearly twenty
seven thousand dollars a year. Andthat's the tuition. Now imagine for some

(07:57):
of the answlry costs that go alongwith that, but moderate budget at a
private college it's about fifty two thousand, nearly double. So even something as
simple as a really good restaurant you'veprobably seen and noticed the prices are shocking
you as well. They've gone upseveral times since inflation started, kind of
peeking its head out. And it'snormal. I mean, when there's inflation,

(08:20):
costs go up, bag size staythe same on chips, but the
number of chips decrease in all thesethings, and we've experienced that. But
think about being on the other sideof the coin when something tends to be
less expensive than what you anticipated.That's a great feeling, right, So
we're likely to purchase something if wefind out it costs less than we thought.

(08:41):
But think about some of the coststhat factor into actually retirement. Now,
Unfortunately, many people in estimate thecost across the board and it can
lead to not only financial stress,but I would say emotional stress too.
So today we want to help youbetter understand and prepare for those important retirement
cost so that you can be preparedto enjoy the golden years. So let's

(09:03):
get into the thought provoking questions thattie into today's show. So, for
starters, what are the costs thatare most often overlooked, underestimated, or
not properly accounted for? And startswith one of the biggest ones, which
is our spending habits are spending patterns, and typically when we start getting into
retirement, instead of our spending patternsgoing down. Usually in the first two

(09:28):
to five years of retirement, theygo up, maybe not substantially yet,
but still comparatively speaking, when you'restill working, they still increase. Now
they tend to level out and godown after a while, but still that
initial wave of spending is something thatyou need to properly account for in your
income plan, in your retirement plan. That's again if you even have a
plan. Another big one is inflation. And I know, up until this

(09:52):
the last couple of years, whatthe Fed called inflation as far as a
transitory thing, I guess transitory meansit's just simply not permanent, right,
but it still means that you needto factor that into your overall plan.
Is if inflation averages around the historicalnorm, which is around three percent or
so. And again different measurements ofinflation, depending upon which CPI measurement you're

(10:13):
looking at, inflation could be alittle bit more, maybe a little bit
less, And it doesn't just simplyprices going up is not completely uniform across
all different sectors of the economy.So if you look at gas prices,
you look at medical expenses. Butthat's another one. Categorically as far as
in retirement is the cost of medicalor healthcare expenses, and it could be
anywhere from your insurance premiums, whetherit be the Medicare premiums. Some people

(10:39):
are subject to ERMA, which isthe income related Medicare penalty. That's if
your income, according to our governmentis a little bit too high, or
your tax filing status. You're tryingto play tricks and games with the tax
return. You think, ah,I'm going to file separately and I'm going
to avoid some of these taxes.Then you get that nasty little surprise with
the Medicare premiums, maybe doubling ortripling, and suddenly your five hundred dollars

(11:03):
savings on taxes is dwarfed by thatsix thousand dollars expense that you just incurred
with your Medicare. So little thingslike that that add to big things.
And we're going to get back ontrack of this after the commercial break about
the retirement costs, that you shouldnot underestimate our fund about the office five
one, three, nine, sixfive four call as we can help,
but stay tune your listening to theSound Mining Investment Show with Brown Financial Advisor

(11:26):
Cerre on fifty five Detox station.Opinions expressed are solely those of Brown Financial
Advisors and should not be interpreted asspecific advice. Materials presented are believed to
be from reliable sources and no representationscan be made as to its accuracy.
All ideas and information should be discussedin detail with one of our qualified investment

(11:46):
advisors prior to implementation. Market basedinvestments involve risk, and past performance is
no guarantee of future results. Insurancebased investments offer guarantees based upon the claims
paying ability of the issuing company.All insurance, tax and mortgage uses are
offered through Brown Insurance and Tax AdvisorsLLC. Brown Financial Advisors and Brown Insurance
and Tax Advisors are affiliated companies andmay only transact business in those states in

(12:09):
which registered or were otherwise legally permitted. Welcome back to the Sound Many Investment
Show with Brown Financial Advisors. I'mGregg Brown and I'm James Burt, and
we are an independent URIA. That'sa registered investment advisory firm. We do
our for clients, not companies.That's Main Street and not Wall Street.
Our fundumber five one, three,five seven, five nine, six five
four website. Brown Financial Advisors Dotcom email team at Brown Financial Advisors dot

(12:35):
com. Our home offices in Milford, but West have locations in Blue Ash,
Westchester, and Florence. All right, you know, James, I
just had this asked of us thispast week. People want to know if
we still see clients routinely, ifwe see new prospects, and just people
in need looking for help willing tobe helped. Yes, on all three
of those. Absolutely, we havefrom the beginning. We've been here from

(12:58):
the beginning and we still do ittoday. So we're not just mister microphones
from an ivory tower that show upjust to you know, to sprinkle some
knowledge upon you and then retreat toour habitat. We're in the trenches every
day working with you and for you, doing things for you and enjoy doing
that. And we appreciate all ofyou that are clients and those who listen

(13:18):
to us each week, whether youare or not. And just want to
make that point because there's so manypeople out there on radio media, you
know, other forms of media thatseem to have a lot to say about
subjects like this, but they haven'tseen a client and so on, they
probably can't remember, and that youdeserve more than that. I just felt
compelled to share that because you canunderestimate the quality and the source of your

(13:43):
advice too, And so we're we'rereal, you're real. Let's really get
together one of these days and seewhat we can do. And now we're
talking about retirement costs that you shouldnot underestimate and understanding these three primary ways
in particular that folks out there justunderestimate their cost of living iniment. Best
time to do something about that andget that recalibrating and end SYNC is now

(14:07):
never too late to do the rightthing, never too early either. And
James, you're going through some ofthe thought provoking questions that are related to
today's show. Yes, a bigcategory would be the medical expenses. So
in the category of long term care, that would mean do you have a
plan or does your plan account forat least a potentiality of one or both

(14:28):
of you going into a nursing homeor some type of home based care in
case you don't need the full gamutof skilled nursing facility level care, but
you still need some type of assistance. So a couple of options there is
having a home care approach or maybeassisted living approach as far as that's concerned.
But one of the questions that weget quite often is about long term

(14:50):
care insurance, whether that's the bestoption to cover the potential nursing home expenses
that you might incur later in life. And depending upon what age at you're
look looking at, as far asdoing this analysis, the odds might be
as high as fifty percent that oneof you would be going into a nursing
home or maybe even looking at you, honey and me, it's like one
of us is going, sorry,honey, it's you, it's not me.

(15:13):
That's always the Usually, i'd saythat's almost always the case, is
you look across the table and say, well, it's not going to be
me, so it's got to beyou. But another approach, perhaps that
might be in some cases a betterapproach is more of a hybrid approach.
And what I mean by that isusing an asset based policy or type of
insurance plan that would have a rideror coverage for potential long term care expenses.

(15:39):
So here's how that works. Youtypically have either life insurance or an
annuity with the built in rider that'sgoing to cover a large degree of any
potential nursing home expenses. And whythat approach might be superior is because if
you don't go into a nursing home, then that means that your asset will
still get used with its intended purposeof how you only purchased it. So

(16:00):
with the long term care insurance policy, really those are connect to use it
or lose it. Now, ifyou already have one, by all means,
do not cancel that without a thoroughexamination of the benefits of your policy.
But if you're looking at whether youshould buy something like that versus a
hybrid approach, well, that's againpart of the planning process that we can
help you with. Gregg any thoughtson that, Yes, that's a lot

(16:22):
of information you get your mind aroundif long term care isn't concerned for you,
and it should be for many,because James just said it. Basically,
it boils down to one and two. It's either me or you,
right, And what are the costs? If you look at in today's dollars,
a skilled nursing facility is going tocost upwards of eight thousand dollars a
month. Do the map, that'stwelve twelve times eight is ninety six thousand

(16:45):
per year. And that's just fora semi private room at a nursing facility.
Yeah, and we want to havea plan before you get the notification
that one of you is about tochange addresses right ahead of time, whether
it's realigning buckets of money and investmentsand sequence of which buckets you take liquidity
from and cash flow from to redirecttowards the care needs of someone keeping him
at homoslung as possible. Sins aliving is an option home healthcare and option

(17:10):
anything to keep you out of thefull blown long term care facility. But
what he referenced where the types ofpolicy exists that most people aren't aware of.
And yes, we know for surewe're going to die, So if
we start there with a life insurancepolicy, it's going to pay tax free
money to a lot of people wecare about when we're gone. Well,
we know that's going to happen somedays. So if we have the policy,
it is sure to pay now theexpense that you have or the amount of

(17:33):
money you pay in premium towards that. Here's where he was suggesting that you
can use his policy certain policies ina new way, and that would be
let's say about upwards of sixty percenton average of the death benefit can be
advanced as a living benefit to paythe cost towards the cost of long term
care, and the residual forty percentwould still go on to be that death

(17:56):
benefit tax free money at the endof your journey. So instead of paying
a premium that's pretty high for you, you know, both of you having
long term care insurance and then separatelyhaving a life insurance policy with its premium
on all these premiums weighing down theburden of your expenses and weighing down your

(18:17):
cash flow in retirement, you canunify some of these things. Now,
brokerage firms don't deal with this.They don't even spend time on this.
They're just they kind of talk throughyeah yeah, yeah, financial information,
a little bit of a plan,and then they immediately make a hard core
press towards investing your money because they'reone trick ponies. It acts, there's

(18:41):
there's an action like there's multiple legson that pony. But when it boils
down to the real what hits theroad, the rubber that hits the road,
it's just your money going to somekind of investment. And then if
it's an insurance agent, acting likea financial advisor. They'll go through this
same blah blah blah stuff and thenboils down to how much money they can
stuff right into an annuity and makea fat commission. You deserve better on

(19:03):
all the above, and that's whyyou know, something like long term care
that everyone's can turned about, buta few people do anything about or have
a plan for it if it happens, and will it happen one and two
chance after age sixty five, Solook in the mirror or look at the
person next year. Just like yousaid. When we're doing seminars on public

(19:25):
speeches, it's kind of interesting.People will be sitting at a table and
you bring up this subject and thenyou talk about the statistic of one and
two, and then you have thecouples at tables stare it cross at each
other and say it's them or us, or one of us and one of
them, and it just kind ofgets people thinking for a moment. Anyway,

(19:47):
James, I know there's many morequestions. Yea health insurance. So
if you're under the age of sixtyfive, typically sixty five is the bridge
to medicare. And when it comesto medicare insurance, we can help you
with the approach of which and it'sa suitability issue first and foremost when we
say is that Medicare advantage versus isa Medicare supplement and the prescription drug plans

(20:07):
out there. So when you havethe Teeter Totter of the decision tree that
says, do I want to paywith cost certainty what the insurance premium is
and have virtually no out of pocketexpenses or do I want to maybe pay
as you go When we look atthe Medicare advantage model of health insurance,
either way, you should have excellenthealth insurance coverage as long as your providers

(20:30):
are in the network for your advantageplan. So that's really the biggest consideration
if you're looking at the advantage plansis are all of your doctors medical providers
in the network and if you're lookingat the little subtleties of an in network
versus out of network provider, allthose different things. As far as the
decision trees, including the prescription drugplans, we can help you with that,

(20:52):
whether it's the open enrollment period comingup October the fifteenth, or just
during the other times of the yearwhen you might be aging into Medicare or
have newly found eligibility to a Medicareplan. But if you're under the age
of sixty five, considerations include COBRAmarketplace plans. Typically for the marketplace plans,
those are especially important if you mightqualify for subsidies for paying for your

(21:14):
health insurance. Now, another categorythat is a major risk factor would be
about the market risk. So whenwe talk about at least whether the actuality
or the perception of risk from potentialdownturns in the market as we have mostly
seen this year so far, Butdoes it also provide as far as your
approach your plan, a way toat least potentially keep up with the rate

(21:37):
of inflation. So going back tothe risk or the perception of risk,
and maybe this is the point thatwe'll talk about later in the show today,
is that not all stocks or equitieshave the same degree or measurement or
amount of risk. Here's what thatmeans. You might look at domestic stocks
versus international stocks. International stocks mightbe also emerging market type categories of stocks,

(22:00):
large cap versus small cap. Allthose different things play into the overall
risk factor. Some have more,some have less. As far as how
your investment plans are are allocated.So those are just some of the factors
that we're going to talk about today. We have more to get to after
the commercial break. Stay tune.You're listening to the sound Many Investment Show
our fund number five one three,five seven, five nine six five four

(22:22):
callus we can help, But again, stay tuned. You're listening to the
sound Many Investment Show with Brown FinancialAdvisors here on fifty five KRC Detox station.
Welcome back to the sound Many InvestmentShow with Brown Financial Advisors. I'm

(22:42):
Greg Brown and I'm James Both andwe are a regist investment advisory firm.
We are independent. We do workfor clients and odd companies and it really
does all start with the plan.That means actually having a plan, knowing
what your own and why you ownit. So what you're seeking advisal and
old four one K fourth IRA rolloverinvestment planning, retirement planning, income planning,

(23:04):
tax planning, social security maximization,a Roth conversion analysis, anyway analysis
and for some perhaps even an endservice rollover all those in more we can
help. Five one three, seven, five nine, six five four Our
website Brown Financial Advisors dot Com,Email team at Brown Financial Advisors dot com
and our home office is at Milford, but weastle locations in Blue Ash,

(23:26):
Westchester, and Florence. H'all allright, we're discussing today the retirement costs
that you should not underestimate. Jameswent through a lot of the questions involved
kind of tied to this subject,and you know, including not to overlook
building a budget, calculating some ofyour expenses. We can help with that,
calculating a preretirement what you might thinkyou'll need as income and cash flow

(23:48):
in retirement. Where if you're alreadyin retirement, it's sometimes a good exercise
just to budget where you are,how you're spending, where money's going.
Is anything you can shave without,let's say, reducing your the quality of
your lifestyle is a worthy exercise becauseit just assures further that the money you
have to live up on the restof your forever is going to be fortified
and you know, a little moreabundant. And then when Social Security people

(24:12):
ask soccur account for inflation, well, yes, no, kind of sort
of. Maybe you know there areintermittent increases tied to inflation, but it
seems like the greatest inflated expense thatrides side saddle with that is Medicare.
There are large increases on an inflationadjustment or an increase on social scurity in

(24:33):
certain years, and then lo andbehold. Oftentimes it's pegged almost exactly to
an increase in Medicare premium, orin some years it's a little in excess,
but then they won't give as muchthe following year the year after as
an increase, but all the whileeach year annually increasing Medicare nonetheless. So
it's really one of those things thatfeels more like you're just taking money on
on one pocket putting the other,rather than truly getting to benefit by an

(24:56):
increase to go buy other stuff with, like you know, bread, eggs
and milk. Now, it's justone of these things that we see with
pre retirees under estimating various costs reallyall the time. So don't don't be
discouraged if you do the same.It's just part of the process of fine
tuning. Now we have collectively multipledecades of working towards this retirement event.

(25:22):
That's the accumulation phase, accumulating moneyso that you can one day retire.
Your mindset was to grow that money. But now that you're getting closer into
retirement, or maybe you're already inretirement, we believe a mindset should shift
and it needs to take place moretowards the accounting for expenses, that fine
tuning of a budget, properly aligningyour investment resources, investment buckets with a

(25:45):
job description and a purpose. Sonow you need to start thinking about insulating
to your retirement portfolio. Which partsfor growth, which parts for emergencies,
which parts for liquidity? In general, what part is for income? To
resolve the gap in income you mighthave between seal security and your actual needs,
that is going to need to bebackfilled with an appropriate mix. We

(26:07):
think a balanced mix of investment solutionsso you can live a hope so retirement
or I know, so retirement.You need a confident retirement and we can
deliver that in working with you.That's something you can achieve and you should
and you deserve it. So startthinking about some important costs to come along
with retirement. Make sure you're properlyprepared for them. Well, let's start

(26:29):
with the assumption about spending habits.So the assumption that we see quite often
is that people say that they'll spendless in retirement then while they're still working.
And in some ways that might bethe case if you look at,
well, I don't have to driveto work on a day in and day
out basis, so perceptively I'm goingto be driving less. So that might
be one category that we don't spendquite as much money, maybe don't eat

(26:51):
out quite as much, or maybewe out eat out even more. So
every single day might seem like aSaturday, which might make that spending habit
seem a little bit more like we'respending more, not less. That could
be a problem when you don't havethat wage based income coming in on a
day in a doubt basis. Solet's do the math here. Let's just
use easy math as an example here, that you have a married couple makes

(27:12):
one hundred thousand a year combined.That means, if you're going to use
the rule of thumb, that you'reonly going to need eighty percent of your
previe retirement income. So that onehundred thousand means you only need eighty thousand
coming in to make ends meet.Well, that's all finding Well, if
you're spending habits have also decreased bytwenty percent, so if your income decreases

(27:33):
by twenty percent, you're spending decreasesby twenty percent, and you were already
making ends meet as it was then. Everything so far, so good right
now. That also means, however, that most people that's not how it
works out. During your working years, you might have gotten into a certain
habit or a certain routine where yougo to work, come home, eat
dinner, do a few other things, go to bed rents, repeat.

(27:56):
Next day is the same as theprevious day. But once again, in
retirement, it might be where nowyou have time for the different hobbies,
some are more expensive than others.Maybe it's traveling, maybe it's playing golf.
Maybe it's going off and seeing thewild West that you didn't get to
see while you're still working, orgoing internationally and seeing the sights that you

(28:17):
didn't get to see. So again, where you travel, how you travel
could sometimes be a little bit expensive, could be a lot expensive. And
that's the point is are you properlyplanning for that as part of your overall
retirement plan, your income plan.Greg The thought that everyone's attempting to chase
the mean whatever, I guess,whatever you anticipate retirement to be about,

(28:42):
read about, think about, becareful because I would say you're not average.
Most people are not average. That'swhy you need a plan for you.
On average. No one is averagedexactly. So it's good to get
an average amount of information from anysource you can. But then when you
pivot to try to apply it toyou, remember it's not necessarily for you.

(29:04):
You're not average. So come inso that we can help you with
the customized plan. We'll take anaccount all the current investments and buckets of
money you might have, and nudities, life policies, cash value them or
not, long term care yes orno, your actual needs, and then
we'll align your money between green andyellow. You're mostly invested out there in

(29:25):
red money. It's I hope somany. We want to get that to
more cautionary and make it more likeprobably so many. It's still market risk,
maybe to some degree aligned with yourrisk, and then move a good
amount over to green money too.That's I know so many. That's the
safer sources of money. Things thatare fully ensured guaranteed can guarantee you lifetime
income. Of course, all basedon the claims paying ability of an insurance

(29:48):
company. But which part of yourmoney you're willing to lose whatever part you're
not, Let's make sure we putit in a place where you can't and
the amount that you're willing to riskaccording to the right risk and aligned with
a plan, and making sure weaddress cashflow needs, retirement to muslim back
cashflow and get your cash flow plan, your income plan in motion. And

(30:10):
there are a lot of really neatboutique like investments that we can offer that
Wall Street doesn't. That's where yougo to the land of cookie cutter.
Here you're going to get a customapproach with boutique solutions not generally available to
the public and oftentimes not available withthe exclusion, I guess the exception of
the high net worth folks. Wecan bring a lot of really cool high

(30:32):
net worth typically strategies down to saythe twenty five thousand dollars minimum level of
investing. And if you're out thereand discourage, well, twenty five thousand
I don't have that. Well,if you're just getting started, well,
let us help you along. Letus be your tour guide to the horizon
of your future personal success. Thatcan start with a thousand dollars. And
if you're investor not a one off. We will help you with your plan

(30:55):
over time. Get on a pathof contribution, not just stuck in a
company plan, but your individual plan. You should start and parallel your plan
with the company plan, like thefour K side by side, like two
tracks or rails that make up atrack, and just get it rolling.
Most likely, huh. Most likelyfolks out there might be involved in what

(31:18):
you might call the honey do list, going shopping, spending time doing things
repairs, updating the roof, updatinghvac, or eating air, making sure
the basement isn't as leaky this yearas it was last year, all those
types of things. If you're doingwhile you're still working and battening down a
hatch, that's a good thing.If you find that you're done with all

(31:40):
those things and you can get alot of good years out of your home
and where you live without large additionalexpenses, that's a good step to have
behind you as you turn in yourturn towards your actual retirement, because expenses
otherwise, they can just add upso quickly and start digging into your retirement
bucket, causing you a great dealof stress because you're already going through a
transition of being constructively working for youknow so many years and about to spend

(32:07):
as many years as you did inyour working time in your retirement time frame,
retirement phase. But you have totake all the money you collected saved
and then turn it into something thatsomehows is going to last as long as
you do, when most of us, I'd say, really all of us
don't even know how long that is. You need help in this area.
We'll ask folks sometimes do interview stillgo to a pediatrician? Well, you

(32:30):
don't, and there's a reason forthat. So you need to walk away
from Wall Street, which has beenyour accumulation phase, partner the pediatrician and
upgrade your retirement, your investment structureto what you really need in this phase,
this distribution phase. We are thoseexperts investments, financial planning, is
state planning, tax preparation, taxadvisory, insurance advice on all these things

(32:53):
that can be the mortar between thebricks. There's just a lot we can
do for you, and we'll helpyou take advantage of that. Will police
ask where you are, giving youa comprehensive plan and help you in all
these areas with a full set ofrecommendations complementary no obligation. Our fund number
at the office five one three,five, seven, five nine six five
four again five one three, fiveseven, five nine six five four call

(33:15):
us we can help. Now,after a break, we're going to share
some surprisingly good news about inflation andhow this is going to affect maybe next
year's Social Security and Medicare rates,So stay tuned for that. You're listening
to the sound Many Investment Show withBrown Financial Advisors here on fifty five care
see the talk station. Welcome backto the sound Many Investment Show, Brown

(33:45):
Financial Advisors. I'm Greg Brown andI'm James Boythan. We are an independent
registered investment advisory firm. We dowork for clients and not companies. Our
fund number five one three, fiveseven, five nine six five four,
website Brown Financial Advisors dot com,e mail team at Brown Financial Advisors dot
com, and our home office isin Milford, but west of locations in

(34:05):
Blue Westchester and Florence. Greg well, as we continue with retirement costs that
you should not underestimate, James,what's another thing people underestimate. It's got
to be inflation, and maybe it'swhen we look at the historical numbers versus
the recent numbers of inflation or whatthe government calls inflation. Here's how that
looks. Historically, what we've beenlooking at is around at three percent,

(34:29):
and again historical average of inflation,it was actually under three percent up until
this year. Now it's right aroundthree percent over the long term. This
year, however, what we're seeingis inflation is trading towards nine percent,
and that carries maybe some good newsand bad news all at the same time.
So your bed, eggs and milkcost about oh, I don't know,

(34:50):
nine percent more, maybe even morelike twenty percent more, it seems
like. But when it comes toSocial Security and Medicare, this is where
there's some surprisingly good news. Sofor the recipients of Social Security, there's
what's known as the COLA, thecost of living adjustments, and with inflation
trending around nine percent on what's calledthe CPI index, that means that the

(35:14):
Social Security recipients will also see anine percent increase via their cost of living
adjustments. Now here's the other partthat's kind of i'd say surprisingly good news,
is that Medicare premiums are actually setto decrease next year, so does
Medicare Part B premiums, what's knownas the standard Medicare Part B premium is

(35:34):
supposed to go from one hundred seventydollars a month down to one sixty four
a month. So percentage why itsets about a three percent decrease is what
we're looking at for the Medicare PartB. Now, again, put a
little ASTERCT next to that, ormaybe a big ASTERCT next to that,
is the people who are subject toIRMA. You're still going to wind up
paying more, sometimes a whole lotmore for really the same type of insurance

(35:55):
coverage, which is the standard whatlooks like the standard Part B coverage.
However, just because of your incomereaches a certain threshold, or maybe your
tax filing status is a little bitdifferent, and you know, we can
help you with all of this asfar as analyzing whether you're being pennywise and
pound foolish or if you're actually savingmoney via how your tax filing status goes.

(36:16):
But that's the surprisingly good news isthat Medicare premiums, for the first
time in a long time, ourschedule to decrease next year. Yeah,
I was just thinking that's a twelvepercent more to be made up of government
expenditures and soci security and medicare bya tax collection and for those who pay

(36:37):
taxes. So and then watch outthat thirty one trillion dollars deficit may just
continue to go up. So thegood news for that one, if you
if you listen to our administration toout the so called good news about the
depths of spending, is that they'reactually decreasing the rate of the increase.
Yeah, but nevertheless, there's stilla depthsit. There's still the depth.

(37:00):
That's something continuing to increase. Butthey are, however, working on decreasing
the rate of the increase. Ifthat's good news, then that's good news.
And so much Washington works on legislationapproved expenditures called budgets. If they
don't find a way to spend moneythat they may not need to be spending,
then they lose the appropriation. Sothey spend it anyway. It's just

(37:23):
that's not today's subject. But it'salways out there on the burner. The
backburner. It burns. And whilethe deficits increase, they do some funky
math that says inflation actually makes thereal economic impact of the deficit of thirty
one tillion to be more like twentysix. I don't my math, my

(37:44):
calculator didn't do that, James,I just don't get it. But something
else justn't put in perspective at theaverage inflation rate year years three percent.
There's a Social Security estimate that says, through the Limera, the Secure Retirement
Institute, that one hundred and seventeenthousand dollars of your Social Security over twenty
year period will just go to beingconsumed by inflation. So it is important

(38:07):
that social Security has a cola basedtrajectory of increases year over year. Even
if it does go to Medicare,that's a real expense in retirement that you
have to solve for. So it'sgoing somewhere to kind of equalize. So,
you know, it's good. Ijust wish there was more of a
budgetary approach or Congress to make theseincreases functional rather than so dysfunctional like everything

(38:29):
else. Underestimating healthcare and long termcare. We kind of talked about that,
and there's a lot of research anddata out there that says that the
healthcare expenditures account for almost twenty percentof the economy, and that's a lot,
so a lot of your expenses.You know, we've had numbers in
the past and recent shows where ifyou're sixty five are better you might between

(38:52):
now and the rest of your lifeneed about two hundred and sixty five thousand
dollars in copaste detects whatever true twoout of pocket healthcare expenses, and some
will think if they're healthier, James, we hear this often, I'm healthier,
I think my expenses and healthcare wouldbe less. Well. Contrarily,
statistically and actuarily, the longer youlive, even if you have lesser healthcare

(39:15):
expenses, year over year, youadd more years. You're back into about
the same number. If someone youmight say that's less healthy, that just
simply means when you're doing your retirementplan. If you think about the overall
average lifespan of people who've made ittwo age sixty five, on average,
you're going to live another twenty years, So the average life expectancy goes from
seventy eight and eighty four, youknow, men versus women two more like

(39:38):
eighty three to eighty five, oreven eighty four to eighty six. So
depending put it, if you've alreadymade it this far across that proverbial lake,
and you keep swimming. Now youraverage life expectancy is looking at eighty
five with a pretty high probability ofmaking it into your nineties. And that
takes a lot of planning and budgetingfor is to maybe being able to fund

(40:02):
your retirement. Yeah, so true. If you have a concept of funding
anything, it needs to be realistictoo. How many times you arrived at
a budget and a wish list andthings you want to do and then you
find you don't have the resources.Well, some people don't stop there.
They still pursue the things they knowthey can't afford. And that's just that's

(40:22):
a trap. If you did thatduring your earlier years in life, and
you figure it out, there's acost to that. You got too deep
into credit cards, debt, gotbehind with the irs, and you've turned
the corner of about a decade thatfollowed and got it all smoothed out.
Take that lesson of life and buildupon it. Don't don't fall through the
trapdoor of more expenses in cash flow. And there are some key takeaways in

(40:45):
all this first thing you want todo, James and getting organized. Getting
organized, that's you know, partof actually having a pun in the first
place. But preparing a spencer's retirement, how about this, Are you thinking
about the life that you want tolive in retirement based on what you can
afford or what you know? Thisis the what you have for discretionary spending

(41:07):
versus your necessary spinning? You wantto know, Yeah, i'd say the
details of what your spinning patterns areand understand how they may change a little
bit depending upon the season or thereason. So whether that's spending that goes
up and down depending upon whether it'ssummer versus winter. How about vacations,
holidays, Christmas spending. I knowmany people who blow out their budgets at

(41:29):
Christmas time and it's like for whatfor why? And you know, I
know it feels good, but man, did you spend within your means or
did you go away beyond your means? Yeah, they'll spend the quarter to
half the following year making up forthe expense they shot overshot in the year
prior in such a holiday. Ithink it really helps if you break it

(41:50):
down into the categories of what's essentialversus discretionary. So that's your needs versus
your wants. Greg Yep, whatdo you need versus what do you want?
And of course, you need whatyou need, so that's primary.
The budget has to go to that. Make you picture yourselve for that.
So worst case scenario, you havethe basis covered. Discretionary it just is
what it is. Is the thingsyou don't necessarily need but you enjoy doing

(42:13):
well. Don't starve your retirement bynot doing some of the things you like
to do. It's just a matterof how much, what scale, what
can you afford. Another takeaway isstick to your income plan. Once you
establish all this, just stick toit. You need to be disciplined in
this financial phase because whether you havea lot or less, you're on a
fixed income. Some people have moreof a fixed income to solve for these

(42:36):
issues and others. But you needto stick to it. It's scalable.
It's a scalable truth. So onceyou become organized and figure out your essential
and discretionary expenses, then you justwant to refer to your income plan and
retirement. Do you have a plan? You know, failing to plan is
a plan to fail. So let'sget together and get a plan. We'll
get you the complete retirement picture,retirement plan, comprehensive plan. Then break

(42:57):
down the money where it goes assignit a purpose. We will then project
and share all the recommendations that wehave. We won't hold anything back,
and you decide if you see agood fit to work together. Now it's
just if you're fortunate to have apension, then add any form of social
security on that. For most householdsthat have that going on, they have
a more narrow gap between what theyneed versus what they're getting, makes it

(43:20):
a little easier. But so manypeople don't have that, So how can
we replicate that. We can createfor you as self funded pension, fully
insured guaranteed income. There are solutions, and then the rest of your money
can be properly deployed in market investmentsbecause you won't have in dependency on it
for income, so you can lookat different ways to risk that for reward
and also maybe eliminate or try toeliminate different biases. So when we talk

(43:42):
about social security, talk about pension. All those are forms of annuities.
So an annuity is an annuity,whether it's run by the government or the
corporation, such as a pension,and we can help you to maximize those
different types of benefits and as faras the taxes when you say, well,
which account is a tax impact oftaking from qualified versus non qualified accounts?

(44:04):
Social Security are their espousal benefit options? Are their family benefit options?
All those and more. There's somuch we can help with our fund number.
I was just gonna say, keepit simple, don't make it complicated
or you won't be able to doit or stick to it. Good point.
Good way to finish this up againour fund number five one, three,
five, seven, five nine sixfive four call us we can help
now on behalf of Greg myself,James. We want to thank you for

(44:27):
listening today. Have a great wecan remember this sound money where good things
are believable, achievable and true foryou
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