Alleviate The Anxiety

#SafeMoney #JonHeischmanSr #AlleviateTheAnxiety
Thinking about and planning for retirement can be stressful, but in this week's episode host Jon Heischman, Senior talks about how to alleviate that anxiety.

Call Jon at [phone] with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information

Episode Transcript

Speaker 1 (00:02):
People really don't know what their expenses will because they
don't know how long that they're going to live.

Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Now more than ever, retirement's going to cost for many folks.
Over a million dollars.

Speaker 1 (00:14):
Is no short thing in investing, but a lot of
people think that annuities may come close to that. It's
going to more safe, safe, safe, safe things that they know.

Speaker 3 (00:22):
If they know they're going to need that money to
supplement their retirement, well then you can't play that rest.

Speaker 4 (00:27):
This is the Safe Money and Retirement Show. But John
Heischman senior founder and partner of Heisman Financial Services serving
the Columbus and surrounding areas. John specializes in educating pre
retirees and retirees about safe money strategies and ideas. Now
is the Safe Money and Retirement Show. Here's John Heischman, Senior.

Speaker 2 (00:48):
Retirement is one of life's major milestones, one that working
Americans approach with a mixture of anticipate, patient and anxiety.
Good morning, this is John Heischmann, the host of the
Safe Money and Retirement Show. I want to talk about

(01:12):
that situation in retirement because most look forward to breaking
free of the constraints of the working world. The price
of that freedom really can be a major concern. How
much money will I need? How much should I be

(01:36):
saving now? Will I be financially prepared? And the anxiety
is exhausted by a nagging suspicion that Social Security and
Medicare programs that Americans have supported with substantial tax payments
over the years will not be available to provide the

(02:01):
full benefits that have been promised. That is a natural
concern because a high percentage of retirees depend on Social
Security and it's their only source of retirement income. As

(02:21):
an advisor and retirement planner, my job working with my
clients is to use strategies to accumulate retirement savings and
for those retired, make the most of what you've accumulated

(02:43):
by providing sources of income that will last throughout retirement.
What many are not familiar with is a newer area
of concentration related to product and strategies that can help

(03:04):
utilize and craft a withdrawal or what we call decumulation
strategy during one's retirement years. Whether I'm using an annuity
systematic withdrawals, or another of the many distribution strategies. You

(03:29):
need help creating a distribution plan that's going to sustain
for a lifetime of income. And I think this is
especially challenging given that longevity is increasing and really no

(03:49):
one knows how long they're going to live. Now, you
can go by a mortality table that the insurance company
use for determining rates, but that's not one hundred percent
accurate because of many factors that play into longevity. So

(04:16):
combine that with the inflation risk and market volatility risk,
I think you can pretty much get the picture of
the magnitude of planning for retirement distributions. And when I
say distributions, obviously I'm referring to retirement income. The problem

(04:39):
today is that all different studies show that sixty percent
of those getting ready to retire or early retirees, they
just don't have a good understanding of how to begin
on their retirement distributions from the assets they've accumulated during

(05:05):
their working years. So obviously an advisor and planner has
to be well first of all the different strategies available
that will help each client to understand and be educated

(05:27):
on the distribution of income that applies to their own situation.
And you've heard it many times from many different sources
that everyone's different, and this is especially true in retirement planning.

(05:49):
It is a big concern of those approaching retirement, and
my job is to address those concerns, talk about a
distribution plan, educate and give information that will help each

(06:10):
individual client that they weren't aware of and do the
best what's best in their interest for putting together a plan.
I'd love to hear about your concerns about retirement income
and how to structure a plan. The number is a

(06:33):
day eight four two six zero one seven seven once
again triple eight four to two six zero one seventy seven.
If you prefer not to schedule a meeting, we can
talk over the phone whatever you're more comfortable with. Now

(06:57):
when you call, request a copy of the Top ten
IRA Mistakes. These are mistakes that retirees make. It's part
of planning preventing these mistakes that will help continue your
income throughout retirement. The book Top ten IRA Mistakes. It's free,

(07:24):
there is no cost, and there's no cost to schedule
a time to meet or talk over the phone. Here's
the number eight eight eight four to two six zero
one seven seven. So this leads me into trends and

(07:46):
challenges of distribution planning, because, as I mentioned earlier, Americans
are living longer. And let me give you an example.
Men who will turn sixty five in the year twenty thirty,

(08:07):
they can expect to live six years longer than those
that turned sixty five in nineteen seventy. And the news
for women is even better, whose life expectancy is estimated

(08:28):
to be two years longer than men. And I suspect
this trend will continue ten fifteen years from now. Sounds
like good news, doesn't it, and it is. However, it

(08:49):
imposes a big problem of longer lifespans will translate into
additional retirement savings, and different studies have shown that the
majority of retirees are not aware that it's going to

(09:10):
take more retirement income the longer one lives. They are
not prepared for this long lifespan. And again, as I
mentioned earlier, it's my job to educate and present ideas
strategies to off set this longevity, making sure that income

(09:37):
is going to be there on a guaranteed basis. Age
fifty five and older nearing retirement. Do you realize forty
eight percent have saved less than one hundred thousand dollars.
A third have less than twenty five thousand dollars. Unfortunately,

(10:01):
they are not ready, and this is why there is
a high percentage of retirees that are going to depend
on Social Security as their only retirement income. I see

(10:22):
a fear of retirees concerned about the ups and downs
of the market and how that's going to affect future
distribution for income. Personally, I don't understand why anybody should
have to worry about that situation because it can be

(10:48):
solved by having sources of guaranteed income. Therefore, you don't
have to worry about what the market's going to do
in the future. And please don't misunderstand me. I am
an advocate of having money in the market, But how

(11:09):
much is the question? So why not solve for income first,
guaranteed income that is not affected by the market. We
solve that, we establish your income, then we look at

(11:32):
what's left and have that money tied to the market
for maximum future growth. A combination of those two strategies
plays into the ideal retirement plan. It's worked for my
clients and possibly could work for you. At least find

(11:57):
out for yourself and it may or may not work
for you, but if it does, you're going to have
a much more secure retirement on a guaranteed basis. Before
I take a break, let me give you my number
one more time and again, don't forget to request for

(12:20):
the book offer. The number is a day eight four
two six zero one seven seven. I'll give that number
to you again, triple eight four two six zero one
seventy seven. Stay tuned, I'll be right back.

Speaker 3 (12:41):
Thanks for listening to The Safe Money and Retirement Show
with John Heisman. For more information, call one eight eight
eight or two six zero one seventy seven. That's one
eight eight eight four two six zero one seven seven,
or visit their website at heischmanfs dot com more of
the Safe Money and Retirement Show.

Speaker 1 (13:01):
In a moment, with healthcare cost expected to continue to
increase faster than the inflation rate, the time to take
a look at your future healthcare is now not in retirement,

(13:25):
but if at all possible before retirement, if you've already retired,
it still isn't too late. A lot of the cost
can be controlled. We work out a plan how to
cover the increase cost that we're all going to be
faced with, and believe me, I think it's probably going

(13:48):
to be the number one increasing cost that we're all
going to see in retirement. If you want to talk further,
you can give me a call a day to eight
four to six zero one seven seven eight eight eight
four two six zero one seven seven.

Speaker 3 (14:18):
Welcome back to the Safe Money and Retirement Show with
John Heischman. To contact John, the number to call is
one eight eight eight or two six zero one seven seven.
That's one eight eight eight or two six zero one
seven seven. Once again, here's John Heischman.

Speaker 2 (14:35):
Welcome back to the Safe Money and Retirement Show. I'm
your host John Heischmann. Over the break, I was thinking
about how so many individuals view retirement planning as been difficult,

(14:56):
very complex, but it really isn't. If you're working with
an individual that specializes in retirement planning and can show
you the different strategies that are available that will apply

(15:17):
to your own situation, it doesn't have to be that difficult.
So how can an individual expect to compensate for insufficient
retirement savings? And that's really a great question and is
a big concern for many workers getting ready to retire.

(15:43):
The twenty nineteen Retirement Confidence Survey. This is conducted by
the Employee Benefit Research Institute. It measures American workers confidence
in their ability to afford a comfortable retirement. Interesting that

(16:05):
this survey found the percentage of workers who were very
confident about having enough money for retirement was at a
record low between two thousand and nine and two thousand
and thirteen, but it increased from thirteen percent in twenty

(16:28):
thirteen to about twenty two percent in twenty fifteen, and
now seems to have leveled off at twenty eight percent
for twenty twenty one. If you have a pension plan
A four to h one K, or any of the
other retirement plans that are available based on your occupation,

(16:54):
you're going to have much larger savings and typically are
more likely to have taken and steps to prepare for retirement.
But only about seven in ten workers appear to be
taking those basic steps. The likelihood results that many Americans

(17:18):
are going to face the prospect of retiring solely on
Social Security. I talked about that earlier in the show,
which typically social Security for many will replace about forty
percent of their pre retirement income. For the average retiree,

(17:44):
I think It's easy to give numbers and statistics to
those that aren't going to retire for ten or fifteen years,
but what about those that are going to retire in
five years or sooner, or have just retired and are

(18:07):
concerned due to the fact they didn't save and contribute
to plans that will be used for retirement meaning retirement income.
To me, this is extremely important and those are the

(18:27):
ones that need help planning and ideas on how to
structure their retirement plan. I can give you a really
good example. A long time client of mine referred me
to a friend of hers who was very concerned about

(18:52):
his retirement plan and the amount saved. At the point
he was going to reach hire, Social Security was available
a small pension from a previous employer, but combined not
enough income to generate the income that was needed. Total

(19:17):
available assets were between two hundred and two hundred and
fifty thousand, which would be available to generate supplemental income.
By the time I finished my review of his accounts,
along with a new budget, I was able to put

(19:40):
together a plan that would generate the income shortage, which
would provide guaranteed lifetime income with a little bit allocated
towards growth and an emergency fund through savings. My point

(20:02):
is many today just feel that they don't have enough
to make it work, but in most cases it can
work by making some adjustments and putting together the plan
for each individual's situation. Maybe you're in this category, or

(20:28):
maybe ashamed or embarrassed to talk to a planner because
you're afraid the planner doesn't want to work with you
or can't help you in your situation. I don't like
to take that approach because it's important to help everybody

(20:53):
as much as I can, regardless of the amount of
money they have, and as I mentioned earlier, usually there
is a solution that can make their planning work. Let
me know if I can help, or if you have questions.

(21:14):
Eight eight eight four to two six zero one seven seven.
That number again is triple eight four to two six
zero one seven seven. Here's some ideas to think about.
Let's say you're going to retire in ten years. We're

(21:38):
going to consider any big ticket financial commitments you anticipate
in the next ten years and how these items might
affect your retirement timeline. Reallocate investments in your portfolio based

(22:00):
on your earnings timeline, focusing on performance, risk and expenses.
Let's say you're going to retire in five years. We
want to make a list of retirement needs and wants.
If you don't have enough savings to meet your needs,

(22:24):
we want to make a five year plan to increase
your funds. Double check your social security earnings, resolve any
discrepancies as soon as possible, and explore your social security
claiming options. Make sure you understand the timing of applying

(22:50):
for benefits. I enjoy social security planning simply because I
know how to do it, and I've been doing it
for so long and it's not difficult. Another important thing
to look at is we want to run tax projections
and do this periodically to ensure you take advantage of

(23:15):
all the opportunities the IR provides, such as a roth
IRA which will allow tax free withdrawals. So in summary,
longevity is perhaps the major issue with retirement planning. In fact,

(23:41):
longevity risk is increasing for those with higher incomes, believe
it or not, at about a year per decade faster
than it is for lower income levels. Surprise fact, isn't it.

(24:01):
You wouldn't expect that, but I've seen that over the years,
and for women longevity is even more important because women
have a tendency to outlive men. So the longevity risk,

(24:22):
I think, has to be at the top of the
list of retirement risk. Yes, we can go by what
the mortality tables say or how long our parents lived.
But if we plan for an individual to live to

(24:47):
let's say eighty seven, and make sure there's enough money
to last until age eighty seven, what happens if that
individual lives to age ninety, ninety one or ninety two.
So we always have to overestimate the longevity factor and

(25:13):
what mortality tables say because people are living longer today.
I hope I was able to shed some light on
distribution planning, the longevity risk, and how it can affect
each individual's retirement plan. Keep in mind, my advice is free.

(25:40):
There's no obligation. I welcome the opportunity to help you,
provide you with advice any way I can. Let me
give you the number to call again eight eight eight
four two six zero one seven one. I appreciate you

(26:02):
joining me and be sure to tune in next week
at the same time the same station for more retirement
planning advice. This is John Heischman bringing you the Safe
Money and Retirement Show.

Speaker 4 (26:21):
The Safe Money and Retirement Show John Heisman Senior. To
get in touch with John, call one AA eight four
two six zero one seven seven. That's one triple eight
four two six zero one seven seven. For more information
about Heisman Financial Services, visit their website heisman FS dot com.

(26:42):
That's h E I S C H M A n
f S dot com. Join us again next time for
the Safe Money and Retirement Show with John Heisman Senior