August 20, 2025 • 35 mins
Imagine dedicating decades to your career, only to face an unexpected layoff in your 50s or 60s. This is much more devastating vs a layoff earlier in your career. What challenges do older workers face, and how can they protect their financial future? Today on The Jon Sanchez Show at 3pm, we’ll explore the emotional, financial, and retirement planning hurdles of being laid off later in life—and the strategies to overcome them
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
Good Wednesday afternoon to welcome to the John Sanchez Show
on Newstalk seven eighty k which it's a pole pleasure
to be with you on this happy hump day. So
glad we're seeing light at the end of the tunnel.
I am flying that solo without Jason, but not flying
solo all together. It is a great pleasure to bring
on my daughter, our marketing manager at Sanchez Gone Capital Management,
my youngest child, Bailey Sanchez. How are you, my dear.
(00:29):
I am making it, Dad, How are you same thing.
We're all making it. We're all making it, that's for sure.
Oh so good to have you, So good to have you. Well,
the reason I brought Bailey, I don't want to tell
you what our topic is and then get into, of
course the stock market recap. So you know, folks, we
cover a lot and we talk a lot on this
(00:50):
program about nonfarm payroll numbers. Tomorrow's Thursday, so we will
of course get our Thursday state unemployment benefit finally numbers,
et cetera. This is one of the areas, meaning the
labor market. This is one of the areas that the
FED is looking at real closely to determine what they're
going to do in the September meeting. Now today we
(01:11):
had the FED minutes released, and there was a lot
of chatter about the labor market cooling down. And I
won't go into great details about the FED minutes. It
was pretty much everything that we thought they were going
to say, and you know that we learned when they
had their meeting a few weeks ago. But it got
me to think, you know, there's many of you, many
of you that are I don't know, Bailey, can I
(01:35):
use the word middle age? I don't know. I don't
think I can even say that, probably probably older than
middle age. You're like me, you're in your fifties and
you're in your sixties. Let's just whatever category we want
to throw ourselves in, baby boomers, et cetera. So we're
in our fifties, we're in our sixties, labor markets starting
to cool down. But imagine this situation. Imagine that you
dedicate decades upon decades of your career only to face
(02:00):
an unexpected layoff. That's right. We see this happen a
lot with our clients. You're in your fifties, you're in
your sixties. All of a sudden, here comes that infamous
pink slip. Well, this is much more devastating, as you
would imagine, when you are in your fifties and sixties
than if you were in your say twenties or thirties,
(02:21):
or even in your forties, where you still have twenty
to thirty years of working at life left back in
your career. So what we're going to focus on later
in the program is this what challenges do older workers
face and how can they protect their financial future. So
today we're going to explore a lot of aspects of
(02:41):
losing your job later in life. We're going to discuss
the emotional toll that it takes, the financial, the retirement
planning hurdles, all of this of course, being laid off
later in life, because once again this is a unique challenge,
much different than again, if many of you have ever
been laid off, and knock on what, I never got fired.
I've never been laid off in any of my jobs
(03:03):
that I had before I was self employed, So I
don't personally know what it feels like, but I see
it with clients. I see it, you know, the look
on their face. And like I said before, when it
comes to retirement planning, I've shared the story million times.
US men are the worst ones, right, We're the ones
that have to mentally be ready to retire. We discussed
(03:23):
that many times the women if they get laid off,
I mean especially during COVID, we had a number of
clients like again in their fifties and sixties, and the
women are like, yeah, I lost my job. Now I
get to stay home and be a housewife, something I've
never been able to do. And so, you know, we
find ourselves in a situation where us men it's different.
Maybe you're the primary breadwinner, maybe you're not. But us
(03:45):
men we tend to have much bigger egos than the
spouses in our lives. So, like I said, if us
men we lose our job, no fault of our own. Maybe,
like we discussed on Mondays, maybe AI has taken your job.
Who knows. But the bottom line line is there's a
lot of different things that go on as far as
that throwing your life upside down, to say the least, right,
(04:07):
you're not financially ready in most cases, you're definitely mentally
not ready because again you still want to continue to
work and have a good time and contribute to the
family and do everything that US men want to do.
But here comes the pink slip, as I said, and
now you're out of a job, and you're going, wait
a minute, here, I'm fifty five, I'm sixty. I'm sixty five.
(04:28):
Who in the heck is going to hire me? Well,
we've got not only what the problems that we see
going on right now, or really what potentially we could
see going on as the labor market slows down, But
more importantly, I never like to give you a problem
without a solution, So we will be giving you solutions
later in the program about what happens, what do you
do financially, emotionally, et cetera if you find yourself in
(04:53):
that position. Jason, by the way, is tied up in meetings,
so that's why he's not here today. But I wanted
Bailey to join me because Bailey tell the audience your age,
your position, and how this differs. You know, you were
the one that actually said, Dad, I want to join
you on this subject because it's a lot different than
it is for me, meaning yourself versus say, someone in
(05:13):
my generation. So explain that real quickly.
Speaker 2 (05:15):
Yeah, absolutely, I mean I'm twenty eight, I'm a business owner.
I also do marketing, for you, of course, and a
few other jobs. But I think my generation is so
used to and it's ingrained in us that jobs really
aren't forever. Especially we've seen all the economic downturns that
you guys have had to go through growing up as
a child, So it's normal for us not to think
about being in one position our entire life. And it's
(05:36):
very different for you guys, of course, because you hold
a career for thirty years and that's your livelihood. So
I think there's very two different views that we could
touch on here, and how to maybe prepare for it
at an earlier age, so in case something does happen
at an older age, you're already ready to take care
of it.
Speaker 1 (05:51):
Yeah, you know, you bring up an excellent point. You
bring up an excellent, excellent point. Where your generation is,
it's almost like a badge of honor right to say, hey,
I worked for this company for a year or two
and that company for another. We just got a resume
in our office this out of the blue. It appears
to be a fairly young kid, very well credentialed, et cetera,
that was interested in a portfolio management position. And I'm
(06:14):
looking at his resume, Bailey to your point, and it's like, man,
I'm gonna guess this kid's probably twenty four, twenty five
years old, but it's like his current job, he only
started in Maine. He's already looking for another job. And
that's kind of the way his resume was. And I've
seen that so many times in your generation, where like
I said, it's almost like a badge of honor, going, yeah,
I worked here, I garnered some skills, I improved myself.
(06:34):
Now I'm under the next company, in the next company,
and so on and so forth, where you're absolutely right.
My generation, My gosh, I started my first you know,
quote W two job was with GMAC, the financing arm
at that time at General Motors, and I thought, you know,
you were you were just born and everything, and I thought,
my god, I'm going to be here, you know, thirty
five years. And you know, downside is i'd be retired
right now because I started there very young, but debably
(06:56):
would have made the amount of money as it, you know,
so yeah, completely different.
Speaker 2 (07:00):
Yeah. I remember sending in my first job resumes and
it was frowned upon to have too many jobs on
your resume and making sure that you were there long
enough showing that you're a dedicated employee, and now you're right.
It does feel in a sense a badge of honor,
which I think ties into many other things of how
many things we train and put on our plate at
this how many jobs? But yeah, it's almost like a
badge of honor. Now with how many companies you've been
(07:20):
with their jobs you've done?
Speaker 1 (07:22):
Yeah? Yeah, what do you see real quickly? Now I
want to get to the stock market update? What do
you see with I mean, you've been steady in your
jobs for vast majority of your adult life. But what
do you see with your friends in other careers and things?
Is it devastating to them? Is it like, yeah, cool
I got laid off, or hey cool, you know I
quit and I'm going to go find myself? Right? Your
generation likes experiences. What's kind of the norm that you
(07:45):
hear among your twenty thirty year old twenty late twenties
early thirty year old friends.
Speaker 2 (07:49):
I think it's a mix, but most people are like
minded like I am, where if something doesn't work out,
I know that I can take my expertise and bring
it somewhere else. But that is also the perks of
being in marketing. Of course I was in a special field.
I think it would hit a lot harder, yes, if
I got laid off. So, but I do think people
these days, and kids my age, they're making themselves an
(08:09):
expert in so many different realms, especially with chat, schibyte
and all these things at our fingertips. We can learn
whatever we want in a week.
Speaker 1 (08:16):
Yeah, week hours. Yeah. I just said it on the
show yesterday with Corey Dewight along those points. You know,
we're talking about how it's hard for your generation, well
just people in general to qualify for a mortgage now,
and I was bringing up the point and you obviously
you've been with me your entire life, and you remember
the sacrifices I made as a young broker. I mean
I was making thirty two thousand dollars a year for
my first you know, three or four years in the business.
(08:38):
And remember I would work on the weekends. I did landscaping,
I did whatever it needed to be able to afford
the mortgage and put food on yours and your siblings
and your mom's table, and you know, on and on
and on, and I don't see that a lot with
your generation. You're very unique. I'm not including you by
eating means, because you're as much of a workaholic as
I am. But they're not willing to make those sacrifices. Right,
(08:58):
It's like, you know what, I enjoy my free time.
Speaker 2 (09:01):
People are waiting way longer to have kids these days. Yes, right,
that changes the whole realm of everything as well.
Speaker 1 (09:07):
Yep, absolutely, yeah. There's a great article matter of fact,
Billy doesn't know I'm even going to say this, but
there's a great article today WSJ Wall Street Journal dot
com talking about the exorbitant, exorbitant cost of daycare around
this country. It's mind boggling. It's just it's like, how
in the world you better be making, you know, you
(09:30):
and your spouse combined better be making three or four
hundred thousand dollars to be able to afford a full
time daycare for one, much less two or three or
anything else. And so you're right, yeah, we we face that,
you know again when you were growing up, but not
nearly to the cost of what it is now. By
all means, I mean, Bailey remembers is a real funny
quick story. We were in Lancaster, or excuse me, in Bakersville,
at that point. And you know, at that point, we
(09:51):
had three kids, right, Bailey was the youngest, and my
wife and I at the time we made that decision.
I was a young broker and I wasn't making anything,
but I said, look at, these are the things I
said to her. I said, look at we cannot afford
to send these kids to daycare anymore. So therefore, if
as long as you're okay with it, you're going to
be a full time mom. And she's like, I'd love it, right,
And so I said, I will work twenty four hours
(10:12):
a day, seven days a week to provide for our
family as long as you are home to take care
of our kids. And again, we're not throwing money away
and letting it, you know, some stranger basically raise our kids.
And was it hard, Oh my god, was it hard
for a number of years. But like anything else, you
somehow figure out how to do it and you make
it and you look back and go, you know what,
that was the best thing. I mean, I think that's
(10:33):
why not to brag as a parent, you know, publicly,
but I will. I think that's why you and your
siblings are such great human beings and hard working and
honest and ethical and everything else. Because your mom did
a hell of a job raising you guys. You know
you weren't you weren't shoved off to daycares and stuff
like that. So I'm a I'm a firm believer, and
I always encourage my clients, the younger ones that in
the event that they can do it, Yeah, you're gonna
(10:54):
have to maybe sacrifice, but boy, is it ever worth
it if you can indeed, you know, have a spouse,
stay home and take care of the kids if that's
what you desire to do. So it's a tough decision,
no doubt. All Right, Boy, we wopped up that wracked
up that first session very quickly. So when we come back,
we're going to get into the stock market recap, very
interesting day once again, a lot of things going on
the market, and then we're gonna get to Bailey and
(11:14):
get into our subject, what does a late career job
loss look like. Let us turn it over to Christen
Snow in the right now traffic center. Hello, Kristen, Welcome
back to the John Sanchez Show on News Talk seven
to eighty k waits. Mister Gunton has the afternoon off,
(11:36):
not really, He's very busy in the office, so I
asked my daughter, Bailey, our marketing director, to join this.
Bailey Sanchez, all right, let's get you the market information
out of the out of the way here, and then
we're gonna get into our topic. What does a late
career job loss look like? All right? Once again, just
like the other two days of this week, just an
absolutely wild ride on the dow side of things. Just
(11:57):
big sell offs, big games, big sell off, big game.
Once again. All that matters is where we finished at
one o'clock, and it looked like we didn't mean but
just a sixteen point rise forty four thousand, nine thirty eight. Now,
as that came off, the lows down over two hundred
worst level finished down one forty two, about a point
six seven percent loss SMP lower by sixteen points er
point twenty four percent. On the commodity side, oil prices
(12:18):
rose ninety three cent sixty two to seventy of barrel
twenty nine dollars and fifty cent game on gold. The
three thousand and three eighty eight forty one ounce tenure
treasury very quiet, down one basis point to a yield
a four point three six percent. Now the big headline
of the day really was our only major report was
the minutes of the Federal Reserve meeting, which occurred on
July twenty ninth and the thirtieth, And I want to
(12:39):
just hit a couple of these because again, this this
is why I wanted to talk about what happens if
we lose our job later in life, if we're in
our fifties and sixties. Because with the minutes Bailey from
from the FED meetings showed is that the policy makers,
they are really worried about the state of the labor market.
They're worried about inflation. Right, although most agreed that it's
two soon. I mean, we knew that this is too
(13:00):
soon for them to raise to lower interest rates. Remember
we had two dissenters at that July meeting, so it
really is a toss up what the Fed's going to
do in September. Now the FED future still showing over
eighty percent probability. But remember, folks, we have what's called
the Jackson Hole Symposium starts tomorrow. FED cher Jerome pal
is going to speak at about seven o'clock if I
remember correctly, Friday morning, and that's where the street's looking
(13:23):
for some hints as to where the Fed's looking at it.
But these minutes, you know, really indicate that they're in
no hurry. I mean, that's the bottom line other than
those two voting members that again we call the dissenters.
So this labor market just keeps coming up more and
more in regards to the FED, you know, factoring that
in in regards to what they're going to do as
(13:43):
far as interest rates, et cetera. So that was one
major headline, I mean headline. You know what's called PCE
or personal consumption inflation. That's the FED favorite measure of inflation.
Headline number. Again for the month of JUNI you're over
year up two and a half percent. Remember they want
that down to two percent. Core pc inflation two point
seven percent. That was unchanged from a year ago. Service
(14:04):
inflation slowed. Tariff effect. There's a lot of mention in
the minutes about the tariffs and its impact. And once
again the FED is finally slowly starting to come around
saying tariff's are going to have an inflationary impact on
the economy, even though originally they said no, they won't,
and I criticized them for that. They see uncertainty about
how personal tariff related price increases will be. Unemployment right
now four point one percent for the month of June,
(14:26):
slightly down. Payroll gains solid, but private job growth slowed.
That one worries me, Bailey, because, as you know, the
private sector is the job creator. They're the job engine
of this country. It's not the government, it's the private sector.
So seeing some slow downs there. Wage growth only three
point seven percent, so barely above inflation. The Fed notes
low hiring plus low layoffs, meaning a labor market that
(14:48):
is near what they like to call maximum employment. And
then some signs of softening are weaker demand, higher youth
and black unemployment, software wage growth for job switchers. So
and that ties in with our topic, right Bailey, that is,
don't expect to get a raise if you lose your job,
especially later in life, and you go to another company.
I've got some stats for you that are going to
show you're probably going to take a fairly severe wage cut.
Speaker 2 (15:12):
Unfortunate, absolutely all.
Speaker 1 (15:15):
Right, So let's get down to this topic because again
very important. So if you just joined us once again,
we're gonna we're gonna spend the rest of the show
talking about what happens in life. If we are older,
we're in our fifties, we're in our sixties, and unexpectedly
we lose our job. Maybe you screwed up, you got fired,
Maybe again AI took your job. Maybe your company's facing
(15:35):
difficult times, or as we're seeing all over Bailey, right
with technology especially you deal with this as tech savvy
as you are. Companies are just going, we don't need
those three hundred people in the call center because we
got AI that can do it. Right. So technology has
taken so many jobs, not just AI, but just technology
in general.
Speaker 2 (15:51):
Yeah. Absolutely, I've been guilty of it too, seeing where
I can replace bodies with technology to save money. As
much as I hate to admit it, but it's the
world we live in now, and it's just a changing
of the times that we have to get used to.
Speaker 1 (16:01):
Absolutely. Absolutely, Okay, So let's I want to I want
to kind of start this discussion off, Bailey with some
stats that I think you know, are really something that
we need to pay a lot of attention to, because again,
as I'd mentioning in just a second ago, the numbers
aren't real good. If unfortunately you lose your job later
(16:21):
in life, and I'd say you know, remember that the
premise of what's different of I'm just going to use
this term my generation versus yours. We have a lot
more financial responsibilities, right, We have mortgages, we have kids
that we're raising. We may be the sandwich generation, meaning
we're not only taking care of our kids, but we're
taking care of our parents and so on, so forth.
So here's the first stat to keep in mind. Among
(16:43):
people aged fifty to sixty five, four percent were laid
off more than once. Fourteen percent were laid off once.
Among those that were laid off at least once between
age fifty and sixty five, here's the scary stat twenty
four percent did not find a new job. Almost a
quarter percent of people laid off fifty to sixty five
(17:04):
did not find a new job.
Speaker 2 (17:06):
That doesn't make you think your plan for your future.
Speaker 1 (17:09):
You got it will that's right, that's right, And that's
according to the Center for Retirement Research at Boston College.
This fellow by the name of Kevin Cahill. He's an
economist for FTI Consulting. He said older career workers who
find new jobs take a eleven percent wage cut on average,
eleven percent wage cut. So think about it. If you're
(17:29):
you know, you're making one hundred grand. Now now you're
you know, making eighty nine thousand, that is absolutely significant.
He said. The pay cut for men on average was
fifteen percent, and this was interesting. That pay cut for
women was only seven percent. Interesting. Yeah, And I've sat
there and I wrecked my brain trying to figure out,
you know, why that would be. But I cannot come
(17:51):
up with an answer on that. Maybe we'll try to
get him on older workers employment histories from age fifty
to sixty two, exclusively in jobs with benefits twenty six percent.
Mostly in jobs with benefits twenty six percent. Twenty one
percent are taking early retirement when they lose their jobs,
you know, and go on and on on that. I
think those are the you know, the main stats that
I wanted to mention. But the bottom line is the
(18:14):
one that got me is twenty four percent of people
in that age group fifty to sixty five cannot find
a job.
Speaker 2 (18:21):
And you think about it too, Again, as we kind
of touched on, people of that generation find one job,
they stick with it forever. Why ever try to learn
something else if if they think they have a sure
future where they're at.
Speaker 1 (18:32):
Yeah, well, you know, I'll disclose this Bailey and I
sometimes but hes we've done her whole life. When when
it comes to technology, and I mean again, I pride
myself that I'm pretty technology savvy. I'm not as good
as you, and I'm not as definitely not as good
as Jason. But you know I get mad at you,
both of you, and you guys go, oh do the
just do this? And I'm like, wholl slow down. I
(18:53):
didn't know that even existed. How do I do it?
I need more so us older generation, we're not as
tech savvy as you. Right. If I go to apply
for a job at you know, whatever place that I
have to do, show my technological skills, you'll outshine me
being twenty eight years old. It's just the way we've
grown up. Right.
Speaker 2 (19:09):
Do you find this being an issue with clients who
come in and potentially have faced the same issue of
maybe losing their job. Do they come to you and say, obviously, one,
help me with my financial strategy. Two, how do I
start on a plan with learning what I need to
these days to get a job technology marketing?
Speaker 1 (19:26):
Absolutely, you bet, because again they've been so I'll use
the term cocooned in their job. Right, they've been their twenty,
twenty five, thirty years, whatever it is. They don't really
know what goes on in the rest of the world.
So yes, you have to sit down in it, Bailey.
It's a great question. I like in it too. All
the discussions you and I have had as you grew
up and your siblings and things, which is, okay, you
(19:49):
know what's your skills, yet what's your passion? What do
you want to do? Quote? And I've used this term
what do you want to do mister client when you
grow up? And here I'm telling this to a sixty
year old man or a woman, But that's really what
it is. If they're position and if they're in a
in an industry, that it's not like they can go
from the company they're in that they or they were
in that they just lost their job to a competitor.
A lot of times that that position in the industry,
(20:11):
that industry just doesn't exist or it's in the decline,
so they've got to retool themselves. They just like a
college graduate, it's like, here's my strengths, I need to
brush out my resume and you know we're going to
get into this some of the challenges this generation faces.
But it is very hard when you tell someone that
you know again been successful. They're managers, maybe they're in
the c suite right on and on and on, like
(20:33):
all of a sudden, they're out of a job. And
we're going to get into the psychological side, especially for
us men, because it's devastating. It is absolutely devastating. We
have so many things, the financial, the emotional. So yeah,
but we're going to try to prepare everybody and again
give you some solutions on that. In the meantime, let's
turn it over to Jack Saban. Welcome him back, Jack,
Welcome back, my friend. Welcome back to the John Sanchez
(20:58):
Show on News Talk seven to eighty k WH. Jon
is hard at work in the office, so I've asked
my daughter, Bailey, our marketing manager, to join us once again.
We finished up sixteen on the Doubt, lost one forty
two on the NASDAC, and a decline of sixteen on
the SMP five hundred. A wild ride once again. But
now we're going to get into something that we're concerned with.
The FED is concerned with, so we thought maybe a
few of you may be concerned with it, and that
(21:19):
is what do you do if you lose your job
late in your career. So our discussion is going to
be focusing on those of you that are fifty plus
that at some point hope it happens to none of you,
but if it does, and most likely it will to
a handful of you, how do you handle a job
loss again later in life? And again, Bailey's going to
(21:40):
be kind of doing some comparisons as to her generation
at twenty eight years old when they lose their job,
compared to those of us in the fifties and sixties,
and what happens. So what I've done is I've put together, Bailey,
a list of what I feel are basically nine different
things that I think all of you need to be
thinking about. And the first one it pains me to
say this, it really does, but it is the fact
(22:01):
of life. And the first challenge that you're going to
face losing your job later in life is age discrimination
and re employment. You see many employers hesitate to hire
older workers. They fear higher costs, higher insurance premiums, shorter tenure.
It's like, Hey, I need to get this old dog training,
but it's going to take me three years to get
him trained. That's probably about when he or he's going
to retire. So we have to get into rescaling, in
(22:24):
pivoting our career to something that I recommend a lot
of times to my clients. We have a I can
think a three of them that we've done this with
and that is coming in as a consultant. Right, coming
in as a consultant. Now, let me explain that one, Bailey,
it's a little bit closer. So in both of these situations,
these gentlemen are exactly this demographic we're talking about. One gentleman,
(22:47):
he wanted to raise been with a company forever. They
said no. He said, how about I become a ten
ninety nine employee? They said great, because remember, folks, to
ninety nine, the employer doesn't pay the payroll taxes, the
workers comp they're not contributing to the retirement account. The
employee loves it. Now they're an independent contractor. They saw
the stability per se of a steady paycheck coming in,
but now they're responsible for their own taxes. We help
(23:09):
them set up much better retirement plans than what a
traditional for and win CA can do. There's a lot
of benefits to that, but once again, Bailey, the hard
part is that reskilling, right. If they can't come back
to that same industry, they have to reskill themselves.
Speaker 2 (23:22):
Absolutely, And with the theme that we're talking about being technology,
if I had to sit down and expect you to
be trained within a week on all new technology that
you've never worked with, I think I would likely turn
you down as a potential employee because that just takes
way more time and money out of myself and my
other employees who are already trained. As horrible as.
Speaker 1 (23:39):
It sounds, well, you know something else, Bailey that's interesting
is your generation, thank goodness, is probably I've said this
to you many times when you've been on the show,
probably the most entrepreneurial oriented generation that I've ever seen.
I thought the Baby Boomers my generation were, But you guys,
because you have again chat GBT, you can have a
business up and running literally in an hour. So you
(24:00):
guys are very, very entrepreneurial focused, which means you're going
to hire people your own age, maybe a little younger,
maybe a little bit older, but an old guy like myself,
I'm the last one you're gonna hire because you're gonna
go this dude, ain't gonna ever figure out how to
use TikTok and do all the different things. Right. We
hire people like you to do that for our businesses,
So that's a big challenge for them.
Speaker 2 (24:19):
That's not to jump the gun, but maybe tie into
the emotional aspects when they come sit down in front
of you and say, I've lost my whole identity. I
was district manager for the last twenty you got it.
I was the go to guy, and now I can't
even get a twenty eight year old to hire me.
How does that relate?
Speaker 1 (24:34):
That's right, and we're going to talk about the psychological
side of it, and that is an absolute fact. So
does age discrimination apply? Absolutely? It does. Of course, the
company will never tell you they're not going to hire
you because you're too old, but I see it all
the time with our clients, all right. Our second challenge
losing our job later in life the healthcare coverage gap Bailey.
One of the biggest things that I see when we
run or have our dear friend Blaine Gale run healthcare
(24:58):
quotes for clients that have their job. So remember at
age sixty five, that's when Medicare is going to kick in, right,
So you don't need it. Of course you're going to
go buy a supplemental policy, but majority of your health
care is going to be covered by the government for
a very small cost out of your pocket. But what
happens again, you're in that fifties or below sixty five
and you got to go get coverage. I always make
(25:18):
sure the clients are sitting down in a chair before
I tell them what the quote comes in at, because
it's mind boggling. I mean, sixteen hundred to two thousand
dollars a month is very very common for a husband
and wife or a couple to go out and buy
their own private insurance. I mean you're talking, you know,
basically a mortgage payment or you know, a good chunk
of a mortgage payment all to go out. So ask me, Bailey,
(25:40):
what do you do? Dad? Do curb that? That that problem?
Speaker 2 (25:43):
Absolutely? And I'm going to here in one second, just
on my set of things from the young business owner.
I remember when I had my clothing store and I
looked into putting getting employees. But of course I knew
that was an aspect of it. As soon as I
saw it was that expensive, I thought, I think I
can work a few more hours myself.
Speaker 1 (25:58):
Yes, it is hiring someone a lot.
Speaker 2 (26:00):
So what do you tell your clients when they come
to you and you give them that price.
Speaker 1 (26:04):
Well, we're going to go into more detail, but I'll
let the count out of the bag, and that is
I will try to again convince them or help them
try to convince their employer or former employer. If it's
possible to bring them on as the ten ninety nine
why because then we can help them establish usually an LLC.
Now they're self employed. Guess what that insurance premium that
they're paying that sixteen hundred to two thousand, Now it's
going to be tax deductible. Check with your CPA. But
(26:26):
your healthcare benefits are tax deductible. Your long term care
if you have long term care insurance, that's tax deductible.
In many cases, your life insurance is not tax deductible,
all because you're a business owner. So that is one
way to solve it. The other one, too, is you
have to really understand the rules. I'm going to be
real general, but in most cases two employees or more
(26:49):
are classified as a group. Well let me tell you, folks,
get a group quote, you know, again two or more people,
and compare it to what you were just going to
get as you and your wife. Mind boggling the difference,
so many many benefits of having that business. But that's
really the only way. There's nothing we can do about,
you know, getting the rates other than again, a group's
going to be lower. Two people, remember or more is
(27:12):
considered a group. So what do you do. You bring
on a spouse, or maybe you employ one of your kids,
whatever you do, you just need two or more people.
Now it's a group rate. It's going to be lower,
tax deductible.
Speaker 2 (27:21):
And let's look at it in a just short brief
Let's look at the stress or two of looking at
somebody at sixty years old who's never had to start
a business and you say, hey, now you got to
walk through how to start an LLC. Even though it's
not hard, like you said, it could be done within
an hour. I think I've accomplished maybe twenty minutes before.
But also the emotional stress of that as well.
Speaker 1 (27:39):
And that's one of the services we help our clients with.
We were I'm on the phone with them and yeah,
we go and we get it set up and like
you said, no time, no time at all. So that's
another big challenge the healthcare coverage gap. And don't forget, folks,
you do have cobra. Remember cobra. The rule is your
employer has to offer you COBRA for a period of
eighteen months after you lose your job. I've seen where
(28:00):
it's dramatically cheaper than what you were excuse me, dramatically
more expensive than what you were paying as a you know,
when you were employed. And I've seen it where it's
a little bit cheaper because they kept back some of
the benefits. So last resort, you always want to find
out on your way out the door, what are my
cobra benefits? And again that's something you're going to have
to pay out of your pocket. Now. Number three, what
(28:22):
happens now as far as our challenges the retirement savings risk.
Job loss interrupts your four oh one K contributions and
interrupts what you're saving in your four oh one K,
and interrupts and stops any employer matches profit sharing all
the benefits you have of a four oh one K,
especially if you're with a bigger company. Remember the rules, folks,
you can take money out of your four oh one
(28:43):
K in hardship, meaning you avoid the ten percent penalty
if you're under fifty nine and a half. Hardship would
be a job loss. So that'll save you a little bit.
Confer with your financial advisor and your tax professional. But
you know what, Bailey, reality sets in. I can't tell
you how many times over my career I've had to
tell clients take it out, right, you have a mortgage doe,
(29:04):
you have a car payment, You got to put food
on the table. Who gives a damn if you got
to pay a ten percent penalty? Right. We can show
you some ways to minimize that down the road, but
the bottom line is, you got to tap your four
o one K. I've done it so many times, Bailey.
Where clients will or a prospect will come to us,
They'll tell me this situation, they've lost their job. What
do I do? What do I do? I'm like, Okay,
(29:24):
last thing you want to do? Do not do not
do not take a distribution out of that four to
one k while you are still there, because they will
have to withhold twenty percent of your payment send it
to the IRS as a future tax payment. So Number one,
get a hold of someone like ourselves. We open up
an IRA rollover. The money comes out of the four
oh one k into the IRA, non taxable of it,
no twenty percent withholding again under fifty nine and a half.
(29:46):
Take the money out. I've had it where people bring
it over. We lose money on the deal, you know,
but I don't care. We're helping people and they take
the four one k out because they got to go
live off of it. Right there's no job prospects, So
that is always something you can do. Remember, if you
have a loan on that fourlay one when you lose
your job, if you're probably gonna default on it, some
companies will allow you to continue pain. You know, obviously
(30:06):
it's after tax, but a lot of companies will say
you got X amount of days to pay off that
loan or it goes into default. It doesn't hurt your credit,
but it could be taxable and maybe a ten percent penalty.
So that that retirement saves and especially at the job lost,
Bailey lasts long period of time. As you know, you've
done an incredible job saving in your four one k.
Just missing a few months right, can can relate to thousands,
(30:26):
especially if they're younger, sometimes hundreds of thousands right in
that compounding effective money over the next twenty years. So
that is a that is the reality of it. We'll
hit the social security side of it when we come back.
Let's wrap it up with Kristin Snow. She's in the
right now traffic center. Hello, Kristen, Welcome back to the
(30:49):
John Sanchez Show on News Talk seven to eighty k
It's been joined by my daughter Bailey. I've always always
have so much fun with you. We've got to do
this more often. Love having you got here absolutely well. Listen.
If Jason and I and the rest of tea can
be of any service to you in regards to you know,
if you have a job loss, you're thinking about it
or something, by all means, call our office at seven
seventy five eight hundred and eighteen oh one or online
at Sanchez cont gaunt dot com. But Billy, you brought
(31:12):
up a great idea. Because we're not even going to
get to our fourth point, so we're going to continue
this on Friday. But you brought up a great idea,
and I'm going to let you describe it to the audience.
Speaker 2 (31:20):
I think this would be a topic that would be
great for a future webinar. To be honest with you,
I think lay out these step by step plans, because
even if you're not in this situation right now, it's
great to at least have a plan in place slightly
because you may be thinking in the back of your head, hey,
this sounds like my job could potentially be at risk
in the future. It may not be now, but it
may be in a few years ago, or a.
Speaker 1 (31:39):
Friend or a family member.
Speaker 2 (31:40):
Absolutely, absolutely so, I think having a webinar would be
absolutely fantastic.
Speaker 1 (31:45):
Okay, I like that idea, So yeah, if we do that,
tell you what, let's let's throw it in your hands, right,
We're going to do that. We do the webinar for you.
You want to send an email at office at sanchez
got dot com and say, yeah, I'm interested in a webinar.
We'll add them to a database and then get a
date set here in the next or so.
Speaker 2 (32:00):
Absolutely, shoot us your name, shoot us your spouse's name
if you think they'd be interested, even a friend. Let's
take your email and then that way we can get
this set up for folks. Because again, it's better to
have a plan in place than to be screwing around
and scared of what's going to happen next. When you
just lost it.
Speaker 1 (32:14):
No, I love that idea. I'd love to be able
to teach this love absolutely.
Speaker 2 (32:17):
Yeah, So shoot us an email at office at Sanchezgaunt
dot com with your name and we'll get you on
a list and keep you updated.
Speaker 1 (32:24):
Yep. A get a pool going for those that want
to join. Absolutely anything else you want to wrap up with.
Speaker 2 (32:30):
Well, I think, just from my perspective, it's really a
good reminder that we need to start planning, even at
twenty eight years old, start planning ahead for our future.
Make sure you're well rounded in in what you're good at,
what you know, and just keep it in the back
of your head and remind your friends too. You have
a responsibility to be financially smart and always have a
(32:50):
plan in place.
Speaker 1 (32:51):
Yeah. Absolutely, And you know, folks, again, I've gone through
I can't tell you how many hundreds, if not thousands
of these in real life. And Bailey was asking me
during the break, what's your one piece of advice for
someone that loses their job later in life. Here's my
best piece of advice, whether it's us or anybody, sit
down with a professional, take a deep breath, talk it
(33:14):
out with somebody, because it is beyond the scope that
most people can handle by themselves. Bailey, your world has collapsed.
You feel like a piece of crap because you just
lost your job. You can't provide for your family. Your
world literally is spinning around. And I've had grown men
cry in my office when I've just sat down and said,
you know what, We're gonna make this work. We're gonna
have a plan. And I promise you I can make
a plan. Jason can make a plan for any situation
(33:35):
that is out there. It's not the end of the world.
And where I've really had great success is taking people
that walked in and going my world is king collapsing
down on me, and they walk out, you know, quote
skipping because we came up with new ideas. It's like,
you know, I always wanted to start a business, or
I always want to jump to another career. Great, let's
make it happen. There is no better time, folks, no
better time in history to start a business or redo
(33:58):
your skills and get into something you really want to do.
Right this. God puts these challenges in front of us.
That's all a matter of how we look at them
and adapt to them. So great topic. We'll continue it
on Friday. Thank you honey, Olivia. Thanks, It's been a
great time. Enjoyed it. We'll do it again tomorrow on
the John Sanchez Show. Gob Let's have a great afternoon.
This program was sponsored by Sanchez Gaunt Capital Management LLC.
(34:22):
The material in this program was intended as general information
only and should not be taken as specific, investment, tax
or legal advice. None of the information on this broadcast
was intended to be a solicitation for the purchase or
sale of any security. Further information is available by contacting
John at Sanchez Gaunt dot com or seven seven five
eight hundred and one eight oh one. John Sanchez offers
(34:44):
securities and advisory services through Independent Financial Group LLC, a
registered Broker, Dealer and Investment Advisor member FINRA SIPC. Security
is offered only in States. John Sanchez is registered in
Sanchez Gaunt Capital Management LLC Penned Financial Group LLC are
unaffiliated entities.
Good Wednesday afternoon to welcome to the John Sanchez Show
on Newstalk seven eighty k which it's a pole pleasure
to be with you on this happy hump day. So
glad we're seeing light at the end of the tunnel.
I am flying that solo without Jason, but not flying
solo all together. It is a great pleasure to bring
on my daughter, our marketing manager at Sanchez Gone Capital Management,
my youngest child, Bailey Sanchez. How are you, my dear.
(00:29):
I am making it, Dad, How are you same thing.
We're all making it. We're all making it, that's for sure.
Oh so good to have you, So good to have you. Well,
the reason I brought Bailey, I don't want to tell
you what our topic is and then get into, of
course the stock market recap. So you know, folks, we
cover a lot and we talk a lot on this
(00:50):
program about nonfarm payroll numbers. Tomorrow's Thursday, so we will
of course get our Thursday state unemployment benefit finally numbers,
et cetera. This is one of the areas, meaning the
labor market. This is one of the areas that the
FED is looking at real closely to determine what they're
going to do in the September meeting. Now today we
(01:11):
had the FED minutes released, and there was a lot
of chatter about the labor market cooling down. And I
won't go into great details about the FED minutes. It
was pretty much everything that we thought they were going
to say, and you know that we learned when they
had their meeting a few weeks ago. But it got
me to think, you know, there's many of you, many
of you that are I don't know, Bailey, can I
(01:35):
use the word middle age? I don't know. I don't
think I can even say that, probably probably older than
middle age. You're like me, you're in your fifties and
you're in your sixties. Let's just whatever category we want
to throw ourselves in, baby boomers, et cetera. So we're
in our fifties, we're in our sixties, labor markets starting
to cool down. But imagine this situation. Imagine that you
dedicate decades upon decades of your career only to face
(02:00):
an unexpected layoff. That's right. We see this happen a
lot with our clients. You're in your fifties, you're in
your sixties. All of a sudden, here comes that infamous
pink slip. Well, this is much more devastating, as you
would imagine, when you are in your fifties and sixties
than if you were in your say twenties or thirties,
(02:21):
or even in your forties, where you still have twenty
to thirty years of working at life left back in
your career. So what we're going to focus on later
in the program is this what challenges do older workers
face and how can they protect their financial future. So
today we're going to explore a lot of aspects of
(02:41):
losing your job later in life. We're going to discuss
the emotional toll that it takes, the financial, the retirement
planning hurdles, all of this of course, being laid off
later in life, because once again this is a unique challenge,
much different than again, if many of you have ever
been laid off, and knock on what, I never got fired.
I've never been laid off in any of my jobs
(03:03):
that I had before I was self employed, So I
don't personally know what it feels like, but I see
it with clients. I see it, you know, the look
on their face. And like I said before, when it
comes to retirement planning, I've shared the story million times.
US men are the worst ones, right, We're the ones
that have to mentally be ready to retire. We discussed
(03:23):
that many times the women if they get laid off,
I mean especially during COVID, we had a number of
clients like again in their fifties and sixties, and the
women are like, yeah, I lost my job. Now I
get to stay home and be a housewife, something I've
never been able to do. And so, you know, we
find ourselves in a situation where us men it's different.
Maybe you're the primary breadwinner, maybe you're not. But us
(03:45):
men we tend to have much bigger egos than the
spouses in our lives. So, like I said, if us
men we lose our job, no fault of our own. Maybe,
like we discussed on Mondays, maybe AI has taken your job.
Who knows. But the bottom line line is there's a
lot of different things that go on as far as
that throwing your life upside down, to say the least, right,
(04:07):
you're not financially ready in most cases, you're definitely mentally
not ready because again you still want to continue to
work and have a good time and contribute to the
family and do everything that US men want to do.
But here comes the pink slip, as I said, and
now you're out of a job, and you're going, wait
a minute, here, I'm fifty five, I'm sixty. I'm sixty five.
(04:28):
Who in the heck is going to hire me? Well,
we've got not only what the problems that we see
going on right now, or really what potentially we could
see going on as the labor market slows down, But
more importantly, I never like to give you a problem
without a solution, So we will be giving you solutions
later in the program about what happens, what do you
do financially, emotionally, et cetera if you find yourself in
(04:53):
that position. Jason, by the way, is tied up in meetings,
so that's why he's not here today. But I wanted
Bailey to join me because Bailey tell the audience your age,
your position, and how this differs. You know, you were
the one that actually said, Dad, I want to join
you on this subject because it's a lot different than
it is for me, meaning yourself versus say, someone in
(05:13):
my generation. So explain that real quickly.
Speaker 2 (05:15):
Yeah, absolutely, I mean I'm twenty eight, I'm a business owner.
I also do marketing, for you, of course, and a
few other jobs. But I think my generation is so
used to and it's ingrained in us that jobs really
aren't forever. Especially we've seen all the economic downturns that
you guys have had to go through growing up as
a child, So it's normal for us not to think
about being in one position our entire life. And it's
(05:36):
very different for you guys, of course, because you hold
a career for thirty years and that's your livelihood. So
I think there's very two different views that we could
touch on here, and how to maybe prepare for it
at an earlier age, so in case something does happen
at an older age, you're already ready to take care
of it.
Speaker 1 (05:51):
Yeah, you know, you bring up an excellent point. You
bring up an excellent, excellent point. Where your generation is,
it's almost like a badge of honor right to say, hey,
I worked for this company for a year or two
and that company for another. We just got a resume
in our office this out of the blue. It appears
to be a fairly young kid, very well credentialed, et cetera,
that was interested in a portfolio management position. And I'm
(06:14):
looking at his resume, Bailey to your point, and it's like, man,
I'm gonna guess this kid's probably twenty four, twenty five
years old, but it's like his current job, he only
started in Maine. He's already looking for another job. And
that's kind of the way his resume was. And I've
seen that so many times in your generation, where like
I said, it's almost like a badge of honor, going, yeah,
I worked here, I garnered some skills, I improved myself.
(06:34):
Now I'm under the next company, in the next company,
and so on and so forth, where you're absolutely right.
My generation, My gosh, I started my first you know,
quote W two job was with GMAC, the financing arm
at that time at General Motors, and I thought, you know,
you were you were just born and everything, and I thought,
my god, I'm going to be here, you know, thirty
five years. And you know, downside is i'd be retired
right now because I started there very young, but debably
(06:56):
would have made the amount of money as it, you know,
so yeah, completely different.
Speaker 2 (07:00):
Yeah. I remember sending in my first job resumes and
it was frowned upon to have too many jobs on
your resume and making sure that you were there long
enough showing that you're a dedicated employee, and now you're right.
It does feel in a sense a badge of honor,
which I think ties into many other things of how
many things we train and put on our plate at
this how many jobs? But yeah, it's almost like a
badge of honor. Now with how many companies you've been
(07:20):
with their jobs you've done?
Speaker 1 (07:22):
Yeah? Yeah, what do you see real quickly? Now I
want to get to the stock market update? What do
you see with I mean, you've been steady in your
jobs for vast majority of your adult life. But what
do you see with your friends in other careers and things?
Is it devastating to them? Is it like, yeah, cool
I got laid off, or hey cool, you know I
quit and I'm going to go find myself? Right? Your
generation likes experiences. What's kind of the norm that you
(07:45):
hear among your twenty thirty year old twenty late twenties
early thirty year old friends.
Speaker 2 (07:49):
I think it's a mix, but most people are like
minded like I am, where if something doesn't work out,
I know that I can take my expertise and bring
it somewhere else. But that is also the perks of
being in marketing. Of course I was in a special field.
I think it would hit a lot harder, yes, if
I got laid off. So, but I do think people
these days, and kids my age, they're making themselves an
(08:09):
expert in so many different realms, especially with chat, schibyte
and all these things at our fingertips. We can learn
whatever we want in a week.
Speaker 1 (08:16):
Yeah, week hours. Yeah. I just said it on the
show yesterday with Corey Dewight along those points. You know,
we're talking about how it's hard for your generation, well
just people in general to qualify for a mortgage now,
and I was bringing up the point and you obviously
you've been with me your entire life, and you remember
the sacrifices I made as a young broker. I mean
I was making thirty two thousand dollars a year for
my first you know, three or four years in the business.
(08:38):
And remember I would work on the weekends. I did landscaping,
I did whatever it needed to be able to afford
the mortgage and put food on yours and your siblings
and your mom's table, and you know, on and on
and on, and I don't see that a lot with
your generation. You're very unique. I'm not including you by
eating means, because you're as much of a workaholic as
I am. But they're not willing to make those sacrifices. Right,
(08:58):
It's like, you know what, I enjoy my free time.
Speaker 2 (09:01):
People are waiting way longer to have kids these days. Yes, right,
that changes the whole realm of everything as well.
Speaker 1 (09:07):
Yep, absolutely, yeah. There's a great article matter of fact,
Billy doesn't know I'm even going to say this, but
there's a great article today WSJ Wall Street Journal dot
com talking about the exorbitant, exorbitant cost of daycare around
this country. It's mind boggling. It's just it's like, how
in the world you better be making, you know, you
(09:30):
and your spouse combined better be making three or four
hundred thousand dollars to be able to afford a full
time daycare for one, much less two or three or
anything else. And so you're right, yeah, we we face that,
you know again when you were growing up, but not
nearly to the cost of what it is now. By
all means, I mean, Bailey remembers is a real funny
quick story. We were in Lancaster, or excuse me, in Bakersville,
at that point. And you know, at that point, we
(09:51):
had three kids, right, Bailey was the youngest, and my
wife and I at the time we made that decision.
I was a young broker and I wasn't making anything,
but I said, look at, these are the things I
said to her. I said, look at we cannot afford
to send these kids to daycare anymore. So therefore, if
as long as you're okay with it, you're going to
be a full time mom. And she's like, I'd love it, right,
And so I said, I will work twenty four hours
(10:12):
a day, seven days a week to provide for our
family as long as you are home to take care
of our kids. And again, we're not throwing money away
and letting it, you know, some stranger basically raise our kids.
And was it hard, Oh my god, was it hard
for a number of years. But like anything else, you
somehow figure out how to do it and you make
it and you look back and go, you know what,
that was the best thing. I mean, I think that's
(10:33):
why not to brag as a parent, you know, publicly,
but I will. I think that's why you and your
siblings are such great human beings and hard working and
honest and ethical and everything else. Because your mom did
a hell of a job raising you guys. You know
you weren't you weren't shoved off to daycares and stuff
like that. So I'm a I'm a firm believer, and
I always encourage my clients, the younger ones that in
the event that they can do it, Yeah, you're gonna
(10:54):
have to maybe sacrifice, but boy, is it ever worth
it if you can indeed, you know, have a spouse,
stay home and take care of the kids if that's
what you desire to do. So it's a tough decision,
no doubt. All Right, Boy, we wopped up that wracked
up that first session very quickly. So when we come back,
we're going to get into the stock market recap, very
interesting day once again, a lot of things going on
the market, and then we're gonna get to Bailey and
(11:14):
get into our subject, what does a late career job
loss look like. Let us turn it over to Christen
Snow in the right now traffic center. Hello, Kristen, Welcome
back to the John Sanchez Show on News Talk seven
to eighty k waits. Mister Gunton has the afternoon off,
(11:36):
not really, He's very busy in the office, so I
asked my daughter, Bailey, our marketing director, to join this.
Bailey Sanchez, all right, let's get you the market information
out of the out of the way here, and then
we're gonna get into our topic. What does a late
career job loss look like? All right? Once again, just
like the other two days of this week, just an
absolutely wild ride on the dow side of things. Just
(11:57):
big sell offs, big games, big sell off, big game.
Once again. All that matters is where we finished at
one o'clock, and it looked like we didn't mean but
just a sixteen point rise forty four thousand, nine thirty eight. Now,
as that came off, the lows down over two hundred
worst level finished down one forty two, about a point
six seven percent loss SMP lower by sixteen points er
point twenty four percent. On the commodity side, oil prices
(12:18):
rose ninety three cent sixty two to seventy of barrel
twenty nine dollars and fifty cent game on gold. The
three thousand and three eighty eight forty one ounce tenure
treasury very quiet, down one basis point to a yield
a four point three six percent. Now the big headline
of the day really was our only major report was
the minutes of the Federal Reserve meeting, which occurred on
July twenty ninth and the thirtieth, And I want to
(12:39):
just hit a couple of these because again, this this
is why I wanted to talk about what happens if
we lose our job later in life, if we're in
our fifties and sixties. Because with the minutes Bailey from
from the FED meetings showed is that the policy makers,
they are really worried about the state of the labor market.
They're worried about inflation. Right, although most agreed that it's
two soon. I mean, we knew that this is too
(13:00):
soon for them to raise to lower interest rates. Remember
we had two dissenters at that July meeting, so it
really is a toss up what the Fed's going to
do in September. Now the FED future still showing over
eighty percent probability. But remember, folks, we have what's called
the Jackson Hole Symposium starts tomorrow. FED cher Jerome pal
is going to speak at about seven o'clock if I
remember correctly, Friday morning, and that's where the street's looking
(13:23):
for some hints as to where the Fed's looking at it.
But these minutes, you know, really indicate that they're in
no hurry. I mean, that's the bottom line other than
those two voting members that again we call the dissenters.
So this labor market just keeps coming up more and
more in regards to the FED, you know, factoring that
in in regards to what they're going to do as
(13:43):
far as interest rates, et cetera. So that was one
major headline, I mean headline. You know what's called PCE
or personal consumption inflation. That's the FED favorite measure of inflation.
Headline number. Again for the month of JUNI you're over
year up two and a half percent. Remember they want
that down to two percent. Core pc inflation two point
seven percent. That was unchanged from a year ago. Service
(14:04):
inflation slowed. Tariff effect. There's a lot of mention in
the minutes about the tariffs and its impact. And once
again the FED is finally slowly starting to come around
saying tariff's are going to have an inflationary impact on
the economy, even though originally they said no, they won't,
and I criticized them for that. They see uncertainty about
how personal tariff related price increases will be. Unemployment right
now four point one percent for the month of June,
(14:26):
slightly down. Payroll gains solid, but private job growth slowed.
That one worries me, Bailey, because, as you know, the
private sector is the job creator. They're the job engine
of this country. It's not the government, it's the private sector.
So seeing some slow downs there. Wage growth only three
point seven percent, so barely above inflation. The Fed notes
low hiring plus low layoffs, meaning a labor market that
(14:48):
is near what they like to call maximum employment. And
then some signs of softening are weaker demand, higher youth
and black unemployment, software wage growth for job switchers. So
and that ties in with our topic, right Bailey, that is,
don't expect to get a raise if you lose your job,
especially later in life, and you go to another company.
I've got some stats for you that are going to
show you're probably going to take a fairly severe wage cut.
Speaker 2 (15:12):
Unfortunate, absolutely all.
Speaker 1 (15:15):
Right, So let's get down to this topic because again
very important. So if you just joined us once again,
we're gonna we're gonna spend the rest of the show
talking about what happens in life. If we are older,
we're in our fifties, we're in our sixties, and unexpectedly
we lose our job. Maybe you screwed up, you got fired,
Maybe again AI took your job. Maybe your company's facing
(15:35):
difficult times, or as we're seeing all over Bailey, right
with technology especially you deal with this as tech savvy
as you are. Companies are just going, we don't need
those three hundred people in the call center because we
got AI that can do it. Right. So technology has
taken so many jobs, not just AI, but just technology
in general.
Speaker 2 (15:51):
Yeah. Absolutely, I've been guilty of it too, seeing where
I can replace bodies with technology to save money. As
much as I hate to admit it, but it's the
world we live in now, and it's just a changing
of the times that we have to get used to.
Speaker 1 (16:01):
Absolutely. Absolutely, Okay, So let's I want to I want
to kind of start this discussion off, Bailey with some
stats that I think you know, are really something that
we need to pay a lot of attention to, because again,
as I'd mentioning in just a second ago, the numbers
aren't real good. If unfortunately you lose your job later
(16:21):
in life, and I'd say you know, remember that the
premise of what's different of I'm just going to use
this term my generation versus yours. We have a lot
more financial responsibilities, right, We have mortgages, we have kids
that we're raising. We may be the sandwich generation, meaning
we're not only taking care of our kids, but we're
taking care of our parents and so on, so forth.
So here's the first stat to keep in mind. Among
(16:43):
people aged fifty to sixty five, four percent were laid
off more than once. Fourteen percent were laid off once.
Among those that were laid off at least once between
age fifty and sixty five, here's the scary stat twenty
four percent did not find a new job. Almost a
quarter percent of people laid off fifty to sixty five
(17:04):
did not find a new job.
Speaker 2 (17:06):
That doesn't make you think your plan for your future.
Speaker 1 (17:09):
You got it will that's right, that's right, And that's
according to the Center for Retirement Research at Boston College.
This fellow by the name of Kevin Cahill. He's an
economist for FTI Consulting. He said older career workers who
find new jobs take a eleven percent wage cut on average,
eleven percent wage cut. So think about it. If you're
(17:29):
you know, you're making one hundred grand. Now now you're
you know, making eighty nine thousand, that is absolutely significant.
He said. The pay cut for men on average was
fifteen percent, and this was interesting. That pay cut for
women was only seven percent. Interesting. Yeah, And I've sat
there and I wrecked my brain trying to figure out,
you know, why that would be. But I cannot come
(17:51):
up with an answer on that. Maybe we'll try to
get him on older workers employment histories from age fifty
to sixty two, exclusively in jobs with benefits twenty six percent.
Mostly in jobs with benefits twenty six percent. Twenty one
percent are taking early retirement when they lose their jobs,
you know, and go on and on on that. I
think those are the you know, the main stats that
I wanted to mention. But the bottom line is the
(18:14):
one that got me is twenty four percent of people
in that age group fifty to sixty five cannot find
a job.
Speaker 2 (18:21):
And you think about it too, Again, as we kind
of touched on, people of that generation find one job,
they stick with it forever. Why ever try to learn
something else if if they think they have a sure
future where they're at.
Speaker 1 (18:32):
Yeah, well, you know, I'll disclose this Bailey and I
sometimes but hes we've done her whole life. When when
it comes to technology, and I mean again, I pride
myself that I'm pretty technology savvy. I'm not as good
as you, and I'm not as definitely not as good
as Jason. But you know I get mad at you,
both of you, and you guys go, oh do the
just do this? And I'm like, wholl slow down. I
(18:53):
didn't know that even existed. How do I do it?
I need more so us older generation, we're not as
tech savvy as you. Right. If I go to apply
for a job at you know, whatever place that I
have to do, show my technological skills, you'll outshine me
being twenty eight years old. It's just the way we've
grown up. Right.
Speaker 2 (19:09):
Do you find this being an issue with clients who
come in and potentially have faced the same issue of
maybe losing their job. Do they come to you and say, obviously, one,
help me with my financial strategy. Two, how do I
start on a plan with learning what I need to
these days to get a job technology marketing?
Speaker 1 (19:26):
Absolutely, you bet, because again they've been so I'll use
the term cocooned in their job. Right, they've been their twenty,
twenty five, thirty years, whatever it is. They don't really
know what goes on in the rest of the world.
So yes, you have to sit down in it, Bailey.
It's a great question. I like in it too. All
the discussions you and I have had as you grew
up and your siblings and things, which is, okay, you
(19:49):
know what's your skills, yet what's your passion? What do
you want to do? Quote? And I've used this term
what do you want to do mister client when you
grow up? And here I'm telling this to a sixty
year old man or a woman, But that's really what
it is. If they're position and if they're in a
in an industry, that it's not like they can go
from the company they're in that they or they were
in that they just lost their job to a competitor.
A lot of times that that position in the industry,
(20:11):
that industry just doesn't exist or it's in the decline,
so they've got to retool themselves. They just like a
college graduate, it's like, here's my strengths, I need to
brush out my resume and you know we're going to
get into this some of the challenges this generation faces.
But it is very hard when you tell someone that
you know again been successful. They're managers, maybe they're in
the c suite right on and on and on, like
(20:33):
all of a sudden, they're out of a job. And
we're going to get into the psychological side, especially for
us men, because it's devastating. It is absolutely devastating. We
have so many things, the financial, the emotional. So yeah,
but we're going to try to prepare everybody and again
give you some solutions on that. In the meantime, let's
turn it over to Jack Saban. Welcome him back, Jack,
Welcome back, my friend. Welcome back to the John Sanchez
(20:58):
Show on News Talk seven to eighty k WH. Jon
is hard at work in the office, so I've asked
my daughter, Bailey, our marketing manager, to join us once again.
We finished up sixteen on the Doubt, lost one forty
two on the NASDAC, and a decline of sixteen on
the SMP five hundred. A wild ride once again. But
now we're going to get into something that we're concerned with.
The FED is concerned with, so we thought maybe a
few of you may be concerned with it, and that
(21:19):
is what do you do if you lose your job
late in your career. So our discussion is going to
be focusing on those of you that are fifty plus
that at some point hope it happens to none of you,
but if it does, and most likely it will to
a handful of you, how do you handle a job
loss again later in life? And again, Bailey's going to
(21:40):
be kind of doing some comparisons as to her generation
at twenty eight years old when they lose their job,
compared to those of us in the fifties and sixties,
and what happens. So what I've done is I've put together, Bailey,
a list of what I feel are basically nine different
things that I think all of you need to be
thinking about. And the first one it pains me to
say this, it really does, but it is the fact
(22:01):
of life. And the first challenge that you're going to
face losing your job later in life is age discrimination
and re employment. You see many employers hesitate to hire
older workers. They fear higher costs, higher insurance premiums, shorter tenure.
It's like, Hey, I need to get this old dog training,
but it's going to take me three years to get
him trained. That's probably about when he or he's going
to retire. So we have to get into rescaling, in
(22:24):
pivoting our career to something that I recommend a lot
of times to my clients. We have a I can
think a three of them that we've done this with
and that is coming in as a consultant. Right, coming
in as a consultant. Now, let me explain that one, Bailey,
it's a little bit closer. So in both of these situations,
these gentlemen are exactly this demographic we're talking about. One gentleman,
(22:47):
he wanted to raise been with a company forever. They
said no. He said, how about I become a ten
ninety nine employee? They said great, because remember, folks, to
ninety nine, the employer doesn't pay the payroll taxes, the
workers comp they're not contributing to the retirement account. The
employee loves it. Now they're an independent contractor. They saw
the stability per se of a steady paycheck coming in,
but now they're responsible for their own taxes. We help
(23:09):
them set up much better retirement plans than what a
traditional for and win CA can do. There's a lot
of benefits to that, but once again, Bailey, the hard
part is that reskilling, right. If they can't come back
to that same industry, they have to reskill themselves.
Speaker 2 (23:22):
Absolutely, And with the theme that we're talking about being technology,
if I had to sit down and expect you to
be trained within a week on all new technology that
you've never worked with, I think I would likely turn
you down as a potential employee because that just takes
way more time and money out of myself and my
other employees who are already trained. As horrible as.
Speaker 1 (23:39):
It sounds, well, you know something else, Bailey that's interesting
is your generation, thank goodness, is probably I've said this
to you many times when you've been on the show,
probably the most entrepreneurial oriented generation that I've ever seen.
I thought the Baby Boomers my generation were, But you guys,
because you have again chat GBT, you can have a
business up and running literally in an hour. So you
(24:00):
guys are very, very entrepreneurial focused, which means you're going
to hire people your own age, maybe a little younger,
maybe a little bit older, but an old guy like myself,
I'm the last one you're gonna hire because you're gonna
go this dude, ain't gonna ever figure out how to
use TikTok and do all the different things. Right. We
hire people like you to do that for our businesses,
So that's a big challenge for them.
Speaker 2 (24:19):
That's not to jump the gun, but maybe tie into
the emotional aspects when they come sit down in front
of you and say, I've lost my whole identity. I
was district manager for the last twenty you got it.
I was the go to guy, and now I can't
even get a twenty eight year old to hire me.
How does that relate?
Speaker 1 (24:34):
That's right, and we're going to talk about the psychological
side of it, and that is an absolute fact. So
does age discrimination apply? Absolutely? It does. Of course, the
company will never tell you they're not going to hire
you because you're too old, but I see it all
the time with our clients, all right. Our second challenge
losing our job later in life the healthcare coverage gap Bailey.
One of the biggest things that I see when we
run or have our dear friend Blaine Gale run healthcare
(24:58):
quotes for clients that have their job. So remember at
age sixty five, that's when Medicare is going to kick in, right,
So you don't need it. Of course you're going to
go buy a supplemental policy, but majority of your health
care is going to be covered by the government for
a very small cost out of your pocket. But what
happens again, you're in that fifties or below sixty five
and you got to go get coverage. I always make
(25:18):
sure the clients are sitting down in a chair before
I tell them what the quote comes in at, because
it's mind boggling. I mean, sixteen hundred to two thousand
dollars a month is very very common for a husband
and wife or a couple to go out and buy
their own private insurance. I mean you're talking, you know,
basically a mortgage payment or you know, a good chunk
of a mortgage payment all to go out. So ask me, Bailey,
(25:40):
what do you do? Dad? Do curb that? That that problem?
Speaker 2 (25:43):
Absolutely? And I'm going to here in one second, just
on my set of things from the young business owner.
I remember when I had my clothing store and I
looked into putting getting employees. But of course I knew
that was an aspect of it. As soon as I
saw it was that expensive, I thought, I think I
can work a few more hours myself.
Speaker 1 (25:58):
Yes, it is hiring someone a lot.
Speaker 2 (26:00):
So what do you tell your clients when they come
to you and you give them that price.
Speaker 1 (26:04):
Well, we're going to go into more detail, but I'll
let the count out of the bag, and that is
I will try to again convince them or help them
try to convince their employer or former employer. If it's
possible to bring them on as the ten ninety nine
why because then we can help them establish usually an LLC.
Now they're self employed. Guess what that insurance premium that
they're paying that sixteen hundred to two thousand, Now it's
going to be tax deductible. Check with your CPA. But
(26:26):
your healthcare benefits are tax deductible. Your long term care
if you have long term care insurance, that's tax deductible.
In many cases, your life insurance is not tax deductible,
all because you're a business owner. So that is one
way to solve it. The other one, too, is you
have to really understand the rules. I'm going to be
real general, but in most cases two employees or more
(26:49):
are classified as a group. Well let me tell you, folks,
get a group quote, you know, again two or more people,
and compare it to what you were just going to
get as you and your wife. Mind boggling the difference,
so many many benefits of having that business. But that's
really the only way. There's nothing we can do about,
you know, getting the rates other than again, a group's
going to be lower. Two people, remember or more is
(27:12):
considered a group. So what do you do. You bring
on a spouse, or maybe you employ one of your kids,
whatever you do, you just need two or more people.
Now it's a group rate. It's going to be lower,
tax deductible.
Speaker 2 (27:21):
And let's look at it in a just short brief
Let's look at the stress or two of looking at
somebody at sixty years old who's never had to start
a business and you say, hey, now you got to
walk through how to start an LLC. Even though it's
not hard, like you said, it could be done within
an hour. I think I've accomplished maybe twenty minutes before.
But also the emotional stress of that as well.
Speaker 1 (27:39):
And that's one of the services we help our clients with.
We were I'm on the phone with them and yeah,
we go and we get it set up and like
you said, no time, no time at all. So that's
another big challenge the healthcare coverage gap. And don't forget, folks,
you do have cobra. Remember cobra. The rule is your
employer has to offer you COBRA for a period of
eighteen months after you lose your job. I've seen where
(28:00):
it's dramatically cheaper than what you were excuse me, dramatically
more expensive than what you were paying as a you know,
when you were employed. And I've seen it where it's
a little bit cheaper because they kept back some of
the benefits. So last resort, you always want to find
out on your way out the door, what are my
cobra benefits? And again that's something you're going to have
to pay out of your pocket. Now. Number three, what
(28:22):
happens now as far as our challenges the retirement savings risk.
Job loss interrupts your four oh one K contributions and
interrupts what you're saving in your four oh one K,
and interrupts and stops any employer matches profit sharing all
the benefits you have of a four oh one K,
especially if you're with a bigger company. Remember the rules, folks,
you can take money out of your four oh one
(28:43):
K in hardship, meaning you avoid the ten percent penalty
if you're under fifty nine and a half. Hardship would
be a job loss. So that'll save you a little bit.
Confer with your financial advisor and your tax professional. But
you know what, Bailey, reality sets in. I can't tell
you how many times over my career I've had to
tell clients take it out, right, you have a mortgage doe,
(29:04):
you have a car payment, You got to put food
on the table. Who gives a damn if you got
to pay a ten percent penalty? Right. We can show
you some ways to minimize that down the road, but
the bottom line is, you got to tap your four
o one K. I've done it so many times, Bailey.
Where clients will or a prospect will come to us,
They'll tell me this situation, they've lost their job. What
do I do? What do I do? I'm like, Okay,
(29:24):
last thing you want to do? Do not do not
do not take a distribution out of that four to
one k while you are still there, because they will
have to withhold twenty percent of your payment send it
to the IRS as a future tax payment. So Number one,
get a hold of someone like ourselves. We open up
an IRA rollover. The money comes out of the four
oh one k into the IRA, non taxable of it,
no twenty percent withholding again under fifty nine and a half.
(29:46):
Take the money out. I've had it where people bring
it over. We lose money on the deal, you know,
but I don't care. We're helping people and they take
the four one k out because they got to go
live off of it. Right there's no job prospects, So
that is always something you can do. Remember, if you
have a loan on that fourlay one when you lose
your job, if you're probably gonna default on it, some
companies will allow you to continue pain. You know, obviously
(30:06):
it's after tax, but a lot of companies will say
you got X amount of days to pay off that
loan or it goes into default. It doesn't hurt your credit,
but it could be taxable and maybe a ten percent penalty.
So that that retirement saves and especially at the job lost,
Bailey lasts long period of time. As you know, you've
done an incredible job saving in your four one k.
Just missing a few months right, can can relate to thousands,
(30:26):
especially if they're younger, sometimes hundreds of thousands right in
that compounding effective money over the next twenty years. So
that is a that is the reality of it. We'll
hit the social security side of it when we come back.
Let's wrap it up with Kristin Snow. She's in the
right now traffic center. Hello, Kristen, Welcome back to the
(30:49):
John Sanchez Show on News Talk seven to eighty k
It's been joined by my daughter Bailey. I've always always
have so much fun with you. We've got to do
this more often. Love having you got here absolutely well. Listen.
If Jason and I and the rest of tea can
be of any service to you in regards to you know,
if you have a job loss, you're thinking about it
or something, by all means, call our office at seven
seventy five eight hundred and eighteen oh one or online
at Sanchez cont gaunt dot com. But Billy, you brought
(31:12):
up a great idea. Because we're not even going to
get to our fourth point, so we're going to continue
this on Friday. But you brought up a great idea,
and I'm going to let you describe it to the audience.
Speaker 2 (31:20):
I think this would be a topic that would be
great for a future webinar. To be honest with you,
I think lay out these step by step plans, because
even if you're not in this situation right now, it's
great to at least have a plan in place slightly
because you may be thinking in the back of your head, hey,
this sounds like my job could potentially be at risk
in the future. It may not be now, but it
may be in a few years ago, or a.
Speaker 1 (31:39):
Friend or a family member.
Speaker 2 (31:40):
Absolutely, absolutely so, I think having a webinar would be
absolutely fantastic.
Speaker 1 (31:45):
Okay, I like that idea, So yeah, if we do that,
tell you what, let's let's throw it in your hands, right,
We're going to do that. We do the webinar for you.
You want to send an email at office at sanchez
got dot com and say, yeah, I'm interested in a webinar.
We'll add them to a database and then get a
date set here in the next or so.
Speaker 2 (32:00):
Absolutely, shoot us your name, shoot us your spouse's name
if you think they'd be interested, even a friend. Let's
take your email and then that way we can get
this set up for folks. Because again, it's better to
have a plan in place than to be screwing around
and scared of what's going to happen next. When you
just lost it.
Speaker 1 (32:14):
No, I love that idea. I'd love to be able
to teach this love absolutely.
Speaker 2 (32:17):
Yeah, So shoot us an email at office at Sanchezgaunt
dot com with your name and we'll get you on
a list and keep you updated.
Speaker 1 (32:24):
Yep. A get a pool going for those that want
to join. Absolutely anything else you want to wrap up with.
Speaker 2 (32:30):
Well, I think, just from my perspective, it's really a
good reminder that we need to start planning, even at
twenty eight years old, start planning ahead for our future.
Make sure you're well rounded in in what you're good at,
what you know, and just keep it in the back
of your head and remind your friends too. You have
a responsibility to be financially smart and always have a
(32:50):
plan in place.
Speaker 1 (32:51):
Yeah. Absolutely, And you know, folks, again, I've gone through
I can't tell you how many hundreds, if not thousands
of these in real life. And Bailey was asking me
during the break, what's your one piece of advice for
someone that loses their job later in life. Here's my
best piece of advice, whether it's us or anybody, sit
down with a professional, take a deep breath, talk it
(33:14):
out with somebody, because it is beyond the scope that
most people can handle by themselves. Bailey, your world has collapsed.
You feel like a piece of crap because you just
lost your job. You can't provide for your family. Your
world literally is spinning around. And I've had grown men
cry in my office when I've just sat down and said,
you know what, We're gonna make this work. We're gonna
have a plan. And I promise you I can make
a plan. Jason can make a plan for any situation
(33:35):
that is out there. It's not the end of the world.
And where I've really had great success is taking people
that walked in and going my world is king collapsing
down on me, and they walk out, you know, quote
skipping because we came up with new ideas. It's like,
you know, I always wanted to start a business, or
I always want to jump to another career. Great, let's
make it happen. There is no better time, folks, no
better time in history to start a business or redo
(33:58):
your skills and get into something you really want to do.
Right this. God puts these challenges in front of us.
That's all a matter of how we look at them
and adapt to them. So great topic. We'll continue it
on Friday. Thank you honey, Olivia. Thanks, It's been a
great time. Enjoyed it. We'll do it again tomorrow on
the John Sanchez Show. Gob Let's have a great afternoon.
This program was sponsored by Sanchez Gaunt Capital Management LLC.
(34:22):
The material in this program was intended as general information
only and should not be taken as specific, investment, tax
or legal advice. None of the information on this broadcast
was intended to be a solicitation for the purchase or
sale of any security. Further information is available by contacting
John at Sanchez Gaunt dot com or seven seven five
eight hundred and one eight oh one. John Sanchez offers
(34:44):
securities and advisory services through Independent Financial Group LLC, a
registered Broker, Dealer and Investment Advisor member FINRA SIPC. Security
is offered only in States. John Sanchez is registered in
Sanchez Gaunt Capital Management LLC Penned Financial Group LLC are
unaffiliated entities.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
My Favorite Murder with Karen Kilgariff and Georgia Hardstark
My Favorite Murder is a true crime comedy podcast hosted by Karen Kilgariff and Georgia Hardstark. Each week, Karen and Georgia share compelling true crimes and hometown stories from friends and listeners. Since MFM launched in January of 2016, Karen and Georgia have shared their lifelong interest in true crime and have covered stories of infamous serial killers like the Night Stalker, mysterious cold cases, captivating cults, incredible survivor stories and important events from history like the Tulsa race massacre of 1921. My Favorite Murder is part of the Exactly Right podcast network that provides a platform for bold, creative voices to bring to life provocative, entertaining and relatable stories for audiences everywhere. The Exactly Right roster of podcasts covers a variety of topics including historic true crime, comedic interviews and news, science, pop culture and more. Podcasts on the network include Buried Bones with Kate Winkler Dawson and Paul Holes, That's Messed Up: An SVU Podcast, This Podcast Will Kill You, Bananas and more.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.