December 24, 2024 • 14 mins
The 4% Rule is outdated and doesn’t apply to most people in today’s retirement. Jon Hicks tackles the problem of income protection and why retirement plans need to be tailored to unique circumstances. He highlights different strategies to consider that focus on maximizing savings to achieve retirement goals that are sustainable over 20-30 years. Visit RetirementSolutionShow.com to begin building your retirement plan today!See omnystudio.com/listener for privacy information.
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Episode Transcript
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Speaker 1 (00:00):
This is the Retirement Solution Podcast with financial advisor John Hicks,
founder of Jayhagen Capital.
Speaker 2 (00:07):
Glad to have you here with us on the Retirement
Solution with financial advisor John Hicks. And when it comes
to the many questions that so many of us have
regarding the money, that we have worked to get to
this point, saving investing taken care of now, we want
to make sure that it's going to take care of
us in our older years, our second phase of our
(00:27):
financial life, thinking about our retirement goals. Visit us at
Retirement Solutions Show dot com. John and his team in
jay Hagen Capital ready to help you get answers to
the many questions you likely have. We also have links
posted in the show notes or again it's Retirement Solutions
Show dot com. Tis the season for spending all of
your money?
Speaker 3 (00:48):
Isn't it the case?
Speaker 2 (00:49):
What is it?
Speaker 3 (00:50):
Is it true consumerism because of America? Because I was thinking,
you know, recently had the opportunity to go to some
business in London, and of course that's were Charles Dickens,
you know, wrote the Chris story. And I actually get
to see I was in a museum and get to
see the actual writing desk pinned. Yeah, it was awesome
where he pinned the Christmas Carol, and I started thinking,
(01:11):
you know what, Scrooge finally figured it out, you know,
on Christmas Day, after he'd gone through the entire soliloquy
of event. We realized that he basically said, oh, you know,
reaches out to say what day is today? And he
basically just spend with frivolity. He gave all this money away.
And so the thing of it is, I don't think
consumerism is uniquely.
Speaker 2 (01:31):
American, and it's not new either.
Speaker 3 (01:34):
It's obviously been around for quite some time. It's obviously
been around for quite some time. But as we get older,
I think that the only thing that we're going to
want to see more than a whole bunch of dead
presidents in our bank account is our kids and grandkids. Right,
that is the thing that we want to see the
face of the most. And outside of that, I think
most of us but not the most, not that we're
greed oriented, but we would like a whole bunch of
Benjamin Franklin's around, if if that's a moment or a
(01:59):
minute that our kids and kids and friends and family
and loved ones and church acquaintances, aren't around, so we
just want to find a way to make sure. How
can we do that? It's right, it's not as hard
as people think, but it actually does require planning. You
can't stove around.
Speaker 2 (02:12):
It's not hard if you take the proper steps, if
you prepare yourself and educate yourself and put some It
doesn't even take a ton of work either. I mean,
you help people everythingle Toy in the office, Greden plans.
It's not like it's a ton of work. Requires just
a little bit of efforts.
Speaker 3 (02:26):
In a whole bunch of planets. Yes, yeah, you know,
it comes down to a lot of things, right, But
you know you've heard me say this on the show
and we were just talking, you know, off off Mike,
and I was just saying, you know, at the end
of the day, anyone could do whatever it is they
want to do. Most people procrastinate and wait, and they's say, oh, well,
you know it's getting close to Thanksgiving, Oh well it's
(02:47):
getting close to Easter. Oh well, let's getting close to whatever.
It's just a way for them to do what they've
always done. And if you always do what you've always done,
you'll always have what you've always had the most amazing
thing when you look at people that have breakthroughs, true breakthroughs,
not financially necessarily, not in their career necessarily. Maybe it's spiritually.
(03:08):
Maybe it's just that epiphany the very first time that
their first baby was born and they were just like,
oh my gosh, I'm a mother, or I'm a father,
or or I'm a grandparent. Right, just there are milliseconds,
micro seconds that change and reshape the entire way we
feel right or the way that we perceive things, or
the way that we work. So one of the things
(03:30):
about having a financial plan, and we talk about it
so much, to me, it almost gets like muddied down.
It almost gets watered down, watered down. We say it
every single week, and we've nearly done this for thirteen years.
I've said consistently on the show, Hey, you just need
a plan. Most people hear this's a guy. I don't
I need a plan. I've got a plan. It's called
a statement. I get it every month, you know, from
before I want. And we almost go past it, and
(03:52):
we almost just water it down too much. The craziest
thing is people don't believe me if they've heard me
for the first time. When I tell you, and this
is a very honest statement, nearly anyone, nearly, not every,
but nearly anyone I have met can accomplish whatever it
is financially they want to accomplish in retirement within reason
(04:13):
if they just understand all of the options they have
right to create the plan. It's literally that simple. It's
literally that simple. It is not more complicated. If you
go to Vanguard, guess what you're gonna own? Vanguard, you
got a Fidelity. I guess what you're gonna own Fidelity.
You got a Schwab. Guess what you're gonna own probably Schwab.
You go to the bank. But when you think about
(04:35):
those things, those are just things. You're just putting your
money in things. Where's the plan? How do you know
how much protection that you can withstand if the markets
get weird?
Speaker 2 (04:46):
You know?
Speaker 3 (04:47):
Trump being a bit of a of a I don't know,
I'm gonna say a nationalist. I mean when you look historically,
he's a bit of a nationalist. It's America first type policy.
That's not always a good thing. It's not always a
bad thing, but it will make other people decide that
they're are they going to raise up their fur and
their backs like you know, a bunch of a pack
of wolves or not right, And if that causes an issue,
(05:07):
the US could have maybe some economic issues. So the question,
and where I'm going up with all this stuff is
what kind of plan do we have for protection and income?
If we know that we can't lose all our money,
give whatever form of protection we want. Hedges, derivatives, downside protections,
guaranteed money, safe money, guaranteed income, streams, pensions, annuities. I
don't care what it is, it makes no difference. But
if we know that's there and we can't lose it all,
(05:29):
then the very next thing is will it provide enough
income for do we want to think about it? Guys?
I have synthesized the entire concept of retirement planning down
in two simple things. How much protection you currently have
and how much income can it create? If you don't
like one of those two, you can fix them. It's
not complicated. The question is how are you going to
do it? Because there are hundreds of thousands of there
(05:51):
are myriad ways to fix it. I think when you're comfortable.
Speaker 2 (05:55):
With that, but I think the question is have you
thought about what protection and come that you have. I
have to imagine, and you're the ones sitting there at
the table with these people. How many people you meet
with at the very first meeting have know those things?
Speaker 3 (06:09):
Less than ten percent, less than two percent. Most people,
they they require that Scrooge moment, They require that Charles Dickens.
They have to almost have a life event or a whatever,
or they just lost a fortune in the market, you know,
no different than in Scrooge realizing that he had lost
he potentially would lose his soul if he didn't make
some different decisions right as we're getting into this holiday
(06:30):
ish type season. But the thing of it is that
these these really great stories that seem to transcend all
periods of time, they're rooted in something very important, and
it was just having a little bit of different thought, right,
just a little bit of a not did he have
tons of money, sure, but he didn't have happiness. He
didn't have joy, He didn't have anything that money affords us,
ladies and gentlemen. If there's anything anything in this world
(06:52):
that money affords us, it's time. That is it. It
is time. Money should afford us time and the ability
to help if we want. He really can't do much else.
He could not cure a pancreatic cancer for Steve Jobs.
It can't make you last forever. Most people that I
know would never want to last forever. But it can
change lives with the time. It can purchase the greatest resource,
(07:15):
and every single one of us have the exact same
amount as long as we're standing upright on this planet.
The very same thing that all of us have is time.
That's what money can do. It can afford us the time.
So when you're thinking about that time, what do you
want to do? Because it simply requires thought, and often
it requires someone to help you that back and forth. Right,
We don't typically just sit in there in a room
(07:35):
steering at two blank walls or four blank walls. If
you can look out of all sides of your head
and say, I knew exactly what I do and I
want exactly how to figure it out, Usually it requires
a little bit of prompting. That's where a good financial
advidesor whether you already have one, or you think you
need one, or you think you don't need one, that's
where the good ones will actually stand out to help
you think about things a little bit differently and figure
out not why you've done what you've done. It's hey,
(07:58):
are you where you want to be?
Speaker 1 (08:00):
Yeah?
Speaker 3 (08:00):
And if not, how do you want to look that way?
What are the things that you would want to do
to change? Right? And so whether you want your retirement
to last for ten years or fifty. Typically, what I
have found, and coming back to our original point, most
people who just think about it and get a little
bit of direction, just a little bit of guidance. Most
everyone I've found can kind of accomplish what they want
(08:21):
to accomplish. They just need a little bit of direction.
Speaker 2 (08:24):
Let's talk about the idea of income and understanding, having
that awareness of what we can spend. Again, we were
talking about and started off this conversation the spending time
of year. So a lot of people have spending on
the brain, particularly if you're in your retirement and you
are spending that money that you earned and saved. That
four percent rule that has been hanging around for the
past thirty years, you can withdraw four percent of your
(08:46):
savings each year in retirement. But new research shown by
the American Council of Life Insurance was giving the rule
a stress test, and it actually ended up finding that
it failed for older ages resulting in the lowest income
over time.
Speaker 3 (09:01):
So let's talk about.
Speaker 2 (09:02):
What that means and then ways to add protection around
our income sources.
Speaker 3 (09:07):
Yeah, I was reading this. I was reading this article,
and I don't know if I like the way they
phrased it. So basically they said, so the four percent
rule failed for people in their older ages. Here's what
I think they're trying to say. It produced the least
amount of income as we age. Now, think about it, guys, Now,
if we want to give while we're living, if we
want to do a lot for our families and gift
(09:28):
and things like that, or frankly, we want a frontload retirement,
so we want to go on the big cruises, We
want to go and travel much more. We want to
buy that Winnebago or that RV, and we want to
travel the world. Then there's a great chance we won't
need as much income when we get a little bit older.
At that point in time, we're probably not going to
be climbing the steps of Manchu Peach you or trying
(09:49):
to go see the Hanging Tower or the hanging gardens
of Babylon. Probably not. We might just be really happy
if we get all the family over to see us
for the holidays, or we can go to Brandson, Missouri
to hang out out with our group of friends that
we went to college with. That's probably not going to
require the same income. So it's interesting that they said failure.
Here's where I think that the four percent rule is
a little lost. Okay, Unfortunately this was done and they
(10:12):
created this over thirty years ago when you couldn't hedge.
We didn't have machine learning, we didn't have the ability,
and certainly we didn't have the opportunity to protect assets
the way we currently do now. So here's my question.
Anytime someone tells me, because believe me, every single week
someone says, well, John, I'll do the four percent rule.
That's great. If that's all you want, then that's fine,
(10:34):
And invariably they said, what do you mean, what do
you mean if that's all I want? Wow, I have
clients that get eight percent tax free, and we do
not expect to erode principle over the course of their
lifetime period. Think about that for a minute. So would
you want four percent on what you've ever saved or
would you rather have five and a half or six
(10:57):
or seven or in that exact situation, we just built
for a client last week where he is truly going
to receive eight percent tax free income for the remainder
of his life based on the amount of money that
he puts in this type of strategy. Now, do you
put all your money in that? No, you don't have to,
but if you chose to, would it be acceptable? It depends.
(11:17):
It depends on what kind of situation you're in, what
you're looking to accomplish, and if you want growth outside
of that or not. All of those are questions, right,
But if you have principal protection and you spent that,
the question is, to some people, why wouldn't they want
the choice? So whenever I think about the four percent rule,
I'm like, that's just really lazy. Okay, there's the easiest
wacon phrase it. And this is exactly what the most
(11:39):
of the financial industry has done to us. They've made
it lazy. They take these blanket statements and these these
buzzwords and these buds clips like diversification. If you ask
the average American what diversification means, they actually don't really
truly know. They say, well, I've got seven different funds,
they're all by the same fund family, and they all
have tremendous amounts of the same things in them. That's
really not diversification. When you think about producing income, I
(12:03):
don't really care how you want to do it. There
are thousands of ways to produce income. Do you want
to own a strip mall and to collect rents? Do
you want a subletter room in your home? Do you
want to sell Christodophon eats? Do you want an investment
probout it for you? Do you want to get it
from the bank? So many different ways. But to me,
the question is what do you want your money to
(12:23):
do for you? If you want to front load retirement
while you're the youngest and the healthiest you're ever going
to be, that's what I want you to do. I
want you to enjoy that you finally get to that point.
Find I want you to retire a little earlier than
you think you can, and I want you to live
the way you want. That's front loading retirement, and you
don't have to suffer off four percent because if you're
(12:43):
a millionaire, congratulations, you get forty grand a year, right,
That's what is the miserable. You could potentially have two
times that in this one example. Now I have some
people we ratchet that up if they really don't think
they're going to live to a ripe age of ninety. Okay,
but the question is are you getting tailored approach to
your income needs. I'll guarantee you one thing, four percent
(13:05):
is not tailored to anyone other than the person that
made it a buzz clip in the front end. If
you really want a tailor to approach, go find a
really skilled fiduciary advisor, or better yet, just call our
team find out what we have to say first. Even
if we're not the right fit for you, that is
not even the point. The point is you know that
you're going to get the type of stuff I talk
about on the show every week. You're going to understand
(13:28):
where you are, where you want to go, and what
the opportunities are.
Speaker 2 (13:32):
You can reach out to John and his team as
soon as right now. Visit us at retirement solutionshow dot
com to learn about how to have more opportunities than
just a standard blanket rule applied to you and your
income strategy and retirement. Let's get to work figuring that out.
We also have links posted in the show notes. You
can just click there or again it's Retirement Solutionshow dot com.
Speaker 1 (13:53):
Thanks for listening to The Retirement Solution Podcast with John Hicks.
Begin the conversation about your savings plan with John and
the team at Jayhagen Capital by visiting Retirement Solution Radio
dot com. Be sure to listen to John's radio show,
The Retirement Solution Saturdays at eight am and Sundays at
nine am on NewsRadio eight forty Whas.
Speaker 4 (14:14):
Jay Haagen Capital Incorporated is not licensed in all fifty states.
Speaker 3 (14:17):
To find out if.
Speaker 4 (14:18):
Jayhigan Capital Incorporated is licensed in your state, please call
five zero two sixty nine oh fifty six thirty five.
Jay Higgan Capitol, Incorporated is not affiliated with, nor endorsed
by the Social Security Administration or any other government agency,
and does not provide legal or tax advice. By contact ACOUST,
you may be provided with information about insurance and annuity
products offered through Jahigen Capital LLCNPN number one eight eight
two seven zero nine four
This is the Retirement Solution Podcast with financial advisor John Hicks,
founder of Jayhagen Capital.
Speaker 2 (00:07):
Glad to have you here with us on the Retirement
Solution with financial advisor John Hicks. And when it comes
to the many questions that so many of us have
regarding the money, that we have worked to get to
this point, saving investing taken care of now, we want
to make sure that it's going to take care of
us in our older years, our second phase of our
(00:27):
financial life, thinking about our retirement goals. Visit us at
Retirement Solutions Show dot com. John and his team in
jay Hagen Capital ready to help you get answers to
the many questions you likely have. We also have links
posted in the show notes or again it's Retirement Solutions
Show dot com. Tis the season for spending all of
your money?
Speaker 3 (00:48):
Isn't it the case?
Speaker 2 (00:49):
What is it?
Speaker 3 (00:50):
Is it true consumerism because of America? Because I was thinking,
you know, recently had the opportunity to go to some
business in London, and of course that's were Charles Dickens,
you know, wrote the Chris story. And I actually get
to see I was in a museum and get to
see the actual writing desk pinned. Yeah, it was awesome
where he pinned the Christmas Carol, and I started thinking,
(01:11):
you know what, Scrooge finally figured it out, you know,
on Christmas Day, after he'd gone through the entire soliloquy
of event. We realized that he basically said, oh, you know,
reaches out to say what day is today? And he
basically just spend with frivolity. He gave all this money away.
And so the thing of it is, I don't think
consumerism is uniquely.
Speaker 2 (01:31):
American, and it's not new either.
Speaker 3 (01:34):
It's obviously been around for quite some time. It's obviously
been around for quite some time. But as we get older,
I think that the only thing that we're going to
want to see more than a whole bunch of dead
presidents in our bank account is our kids and grandkids. Right,
that is the thing that we want to see the
face of the most. And outside of that, I think
most of us but not the most, not that we're
greed oriented, but we would like a whole bunch of
Benjamin Franklin's around, if if that's a moment or a
(01:59):
minute that our kids and kids and friends and family
and loved ones and church acquaintances, aren't around, so we
just want to find a way to make sure. How
can we do that? It's right, it's not as hard
as people think, but it actually does require planning. You
can't stove around.
Speaker 2 (02:12):
It's not hard if you take the proper steps, if
you prepare yourself and educate yourself and put some It
doesn't even take a ton of work either. I mean,
you help people everythingle Toy in the office, Greden plans.
It's not like it's a ton of work. Requires just
a little bit of efforts.
Speaker 3 (02:26):
In a whole bunch of planets. Yes, yeah, you know,
it comes down to a lot of things, right, But
you know you've heard me say this on the show
and we were just talking, you know, off off Mike,
and I was just saying, you know, at the end
of the day, anyone could do whatever it is they
want to do. Most people procrastinate and wait, and they's say, oh, well,
you know it's getting close to Thanksgiving, Oh well it's
(02:47):
getting close to Easter. Oh well, let's getting close to whatever.
It's just a way for them to do what they've
always done. And if you always do what you've always done,
you'll always have what you've always had the most amazing
thing when you look at people that have breakthroughs, true breakthroughs,
not financially necessarily, not in their career necessarily. Maybe it's spiritually.
(03:08):
Maybe it's just that epiphany the very first time that
their first baby was born and they were just like,
oh my gosh, I'm a mother, or I'm a father,
or or I'm a grandparent. Right, just there are milliseconds,
micro seconds that change and reshape the entire way we
feel right or the way that we perceive things, or
the way that we work. So one of the things
(03:30):
about having a financial plan, and we talk about it
so much, to me, it almost gets like muddied down.
It almost gets watered down, watered down. We say it
every single week, and we've nearly done this for thirteen years.
I've said consistently on the show, Hey, you just need
a plan. Most people hear this's a guy. I don't
I need a plan. I've got a plan. It's called
a statement. I get it every month, you know, from
before I want. And we almost go past it, and
(03:52):
we almost just water it down too much. The craziest
thing is people don't believe me if they've heard me
for the first time. When I tell you, and this
is a very honest statement, nearly anyone, nearly, not every,
but nearly anyone I have met can accomplish whatever it
is financially they want to accomplish in retirement within reason
(04:13):
if they just understand all of the options they have
right to create the plan. It's literally that simple. It's
literally that simple. It is not more complicated. If you
go to Vanguard, guess what you're gonna own? Vanguard, you
got a Fidelity. I guess what you're gonna own Fidelity.
You got a Schwab. Guess what you're gonna own probably Schwab.
You go to the bank. But when you think about
(04:35):
those things, those are just things. You're just putting your
money in things. Where's the plan? How do you know
how much protection that you can withstand if the markets
get weird?
Speaker 2 (04:46):
You know?
Speaker 3 (04:47):
Trump being a bit of a of a I don't know,
I'm gonna say a nationalist. I mean when you look historically,
he's a bit of a nationalist. It's America first type policy.
That's not always a good thing. It's not always a
bad thing, but it will make other people decide that
they're are they going to raise up their fur and
their backs like you know, a bunch of a pack
of wolves or not right, And if that causes an issue,
(05:07):
the US could have maybe some economic issues. So the question,
and where I'm going up with all this stuff is
what kind of plan do we have for protection and income?
If we know that we can't lose all our money,
give whatever form of protection we want. Hedges, derivatives, downside protections,
guaranteed money, safe money, guaranteed income, streams, pensions, annuities. I
don't care what it is, it makes no difference. But
if we know that's there and we can't lose it all,
(05:29):
then the very next thing is will it provide enough
income for do we want to think about it? Guys?
I have synthesized the entire concept of retirement planning down
in two simple things. How much protection you currently have
and how much income can it create? If you don't
like one of those two, you can fix them. It's
not complicated. The question is how are you going to
do it? Because there are hundreds of thousands of there
(05:51):
are myriad ways to fix it. I think when you're comfortable.
Speaker 2 (05:55):
With that, but I think the question is have you
thought about what protection and come that you have. I
have to imagine, and you're the ones sitting there at
the table with these people. How many people you meet
with at the very first meeting have know those things?
Speaker 3 (06:09):
Less than ten percent, less than two percent. Most people,
they they require that Scrooge moment, They require that Charles Dickens.
They have to almost have a life event or a whatever,
or they just lost a fortune in the market, you know,
no different than in Scrooge realizing that he had lost
he potentially would lose his soul if he didn't make
some different decisions right as we're getting into this holiday
(06:30):
ish type season. But the thing of it is that
these these really great stories that seem to transcend all
periods of time, they're rooted in something very important, and
it was just having a little bit of different thought, right,
just a little bit of a not did he have
tons of money, sure, but he didn't have happiness. He
didn't have joy, He didn't have anything that money affords us,
ladies and gentlemen. If there's anything anything in this world
(06:52):
that money affords us, it's time. That is it. It
is time. Money should afford us time and the ability
to help if we want. He really can't do much else.
He could not cure a pancreatic cancer for Steve Jobs.
It can't make you last forever. Most people that I
know would never want to last forever. But it can
change lives with the time. It can purchase the greatest resource,
(07:15):
and every single one of us have the exact same
amount as long as we're standing upright on this planet.
The very same thing that all of us have is time.
That's what money can do. It can afford us the time.
So when you're thinking about that time, what do you
want to do? Because it simply requires thought, and often
it requires someone to help you that back and forth. Right,
We don't typically just sit in there in a room
(07:35):
steering at two blank walls or four blank walls. If
you can look out of all sides of your head
and say, I knew exactly what I do and I
want exactly how to figure it out, Usually it requires
a little bit of prompting. That's where a good financial
advidesor whether you already have one, or you think you
need one, or you think you don't need one, that's
where the good ones will actually stand out to help
you think about things a little bit differently and figure
out not why you've done what you've done. It's hey,
(07:58):
are you where you want to be?
Speaker 1 (08:00):
Yeah?
Speaker 3 (08:00):
And if not, how do you want to look that way?
What are the things that you would want to do
to change? Right? And so whether you want your retirement
to last for ten years or fifty. Typically, what I
have found, and coming back to our original point, most
people who just think about it and get a little
bit of direction, just a little bit of guidance. Most
everyone I've found can kind of accomplish what they want
(08:21):
to accomplish. They just need a little bit of direction.
Speaker 2 (08:24):
Let's talk about the idea of income and understanding, having
that awareness of what we can spend. Again, we were
talking about and started off this conversation the spending time
of year. So a lot of people have spending on
the brain, particularly if you're in your retirement and you
are spending that money that you earned and saved. That
four percent rule that has been hanging around for the
past thirty years, you can withdraw four percent of your
(08:46):
savings each year in retirement. But new research shown by
the American Council of Life Insurance was giving the rule
a stress test, and it actually ended up finding that
it failed for older ages resulting in the lowest income
over time.
Speaker 3 (09:01):
So let's talk about.
Speaker 2 (09:02):
What that means and then ways to add protection around
our income sources.
Speaker 3 (09:07):
Yeah, I was reading this. I was reading this article,
and I don't know if I like the way they
phrased it. So basically they said, so the four percent
rule failed for people in their older ages. Here's what
I think they're trying to say. It produced the least
amount of income as we age. Now, think about it, guys, Now,
if we want to give while we're living, if we
want to do a lot for our families and gift
(09:28):
and things like that, or frankly, we want a frontload retirement,
so we want to go on the big cruises, We
want to go and travel much more. We want to
buy that Winnebago or that RV, and we want to
travel the world. Then there's a great chance we won't
need as much income when we get a little bit older.
At that point in time, we're probably not going to
be climbing the steps of Manchu Peach you or trying
(09:49):
to go see the Hanging Tower or the hanging gardens
of Babylon. Probably not. We might just be really happy
if we get all the family over to see us
for the holidays, or we can go to Brandson, Missouri
to hang out out with our group of friends that
we went to college with. That's probably not going to
require the same income. So it's interesting that they said failure.
Here's where I think that the four percent rule is
a little lost. Okay, Unfortunately this was done and they
(10:12):
created this over thirty years ago when you couldn't hedge.
We didn't have machine learning, we didn't have the ability,
and certainly we didn't have the opportunity to protect assets
the way we currently do now. So here's my question.
Anytime someone tells me, because believe me, every single week
someone says, well, John, I'll do the four percent rule.
That's great. If that's all you want, then that's fine,
(10:34):
And invariably they said, what do you mean, what do
you mean if that's all I want? Wow, I have
clients that get eight percent tax free, and we do
not expect to erode principle over the course of their
lifetime period. Think about that for a minute. So would
you want four percent on what you've ever saved or
would you rather have five and a half or six
(10:57):
or seven or in that exact situation, we just built
for a client last week where he is truly going
to receive eight percent tax free income for the remainder
of his life based on the amount of money that
he puts in this type of strategy. Now, do you
put all your money in that? No, you don't have to,
but if you chose to, would it be acceptable? It depends.
(11:17):
It depends on what kind of situation you're in, what
you're looking to accomplish, and if you want growth outside
of that or not. All of those are questions, right,
But if you have principal protection and you spent that,
the question is, to some people, why wouldn't they want
the choice? So whenever I think about the four percent rule,
I'm like, that's just really lazy. Okay, there's the easiest
wacon phrase it. And this is exactly what the most
(11:39):
of the financial industry has done to us. They've made
it lazy. They take these blanket statements and these these
buzzwords and these buds clips like diversification. If you ask
the average American what diversification means, they actually don't really
truly know. They say, well, I've got seven different funds,
they're all by the same fund family, and they all
have tremendous amounts of the same things in them. That's
really not diversification. When you think about producing income, I
(12:03):
don't really care how you want to do it. There
are thousands of ways to produce income. Do you want
to own a strip mall and to collect rents? Do
you want a subletter room in your home? Do you
want to sell Christodophon eats? Do you want an investment
probout it for you? Do you want to get it
from the bank? So many different ways. But to me,
the question is what do you want your money to
(12:23):
do for you? If you want to front load retirement
while you're the youngest and the healthiest you're ever going
to be, that's what I want you to do. I
want you to enjoy that you finally get to that point.
Find I want you to retire a little earlier than
you think you can, and I want you to live
the way you want. That's front loading retirement, and you
don't have to suffer off four percent because if you're
(12:43):
a millionaire, congratulations, you get forty grand a year, right,
That's what is the miserable. You could potentially have two
times that in this one example. Now I have some
people we ratchet that up if they really don't think
they're going to live to a ripe age of ninety. Okay,
but the question is are you getting tailored approach to
your income needs. I'll guarantee you one thing, four percent
(13:05):
is not tailored to anyone other than the person that
made it a buzz clip in the front end. If
you really want a tailor to approach, go find a
really skilled fiduciary advisor, or better yet, just call our
team find out what we have to say first. Even
if we're not the right fit for you, that is
not even the point. The point is you know that
you're going to get the type of stuff I talk
about on the show every week. You're going to understand
(13:28):
where you are, where you want to go, and what
the opportunities are.
Speaker 2 (13:32):
You can reach out to John and his team as
soon as right now. Visit us at retirement solutionshow dot
com to learn about how to have more opportunities than
just a standard blanket rule applied to you and your
income strategy and retirement. Let's get to work figuring that out.
We also have links posted in the show notes. You
can just click there or again it's Retirement Solutionshow dot com.
Speaker 1 (13:53):
Thanks for listening to The Retirement Solution Podcast with John Hicks.
Begin the conversation about your savings plan with John and
the team at Jayhagen Capital by visiting Retirement Solution Radio
dot com. Be sure to listen to John's radio show,
The Retirement Solution Saturdays at eight am and Sundays at
nine am on NewsRadio eight forty Whas.
Speaker 4 (14:14):
Jay Haagen Capital Incorporated is not licensed in all fifty states.
Speaker 3 (14:17):
To find out if.
Speaker 4 (14:18):
Jayhigan Capital Incorporated is licensed in your state, please call
five zero two sixty nine oh fifty six thirty five.
Jay Higgan Capitol, Incorporated is not affiliated with, nor endorsed
by the Social Security Administration or any other government agency,
and does not provide legal or tax advice. By contact ACOUST,
you may be provided with information about insurance and annuity
products offered through Jahigen Capital LLCNPN number one eight eight
two seven zero nine four
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