July 1, 2025 • 13 mins
What if the secret to retirement confidence is as simple as three buckets? In this episode, Jon Hicks of J. Hagan Capital breaks down his “Now, Soon, and Later” strategy for managing retirement income through market volatility. With insights on liquidity, income generation, and long-term growth, Jon explains how to structure your assets to weather downturns without panic. From emergency funds to annuities and investment properties, this conversation offers a grounded approach to building a plan you can actually stick to—no matter what the market throws your way Schedule your complimentary appointment today: RetirementSolutionShow.com Follow us on social media: YouTube | Facebook | LinkedInSee 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):
Donicks, founder of jac and Capital, Financial advisor. Here to
clarify information for us. You've mentioned before in many different
circumstances and conversations the idea about well safety obviously safety first,
but how to manage circumstances when the market has been volatile.
(00:28):
And yes, we have seen market rebounds fortunately, but in
twenty to thirty to forty years of retirement, what's the
average market correction cycle?
Speaker 3 (00:38):
Yeah, so if you look at a standard market correction,
you know, but every three to five years we'll see
a twenty to thirty five percent draw down at least
on average. Now we're in a weird cycle, right. We've
had almost twelve or thirteen years where we haven't quite
had that much. I mean, we had twenty twenty two
where stocks and bonds both got you know, land blasted.
We had twenty twenty where the market was I'm not
(00:59):
going to say artificial, because it truly went down. It
went down almost thirty something percent before it had one
of the quickest rebounds in the history of time.
Speaker 4 (01:06):
So we've seen volatility.
Speaker 3 (01:08):
Yeah, but the next downturn probably won't be based on
a black Swan event. It's probably just going to be
really systemic, which just means, hey, you know, we can't
spend this way and have this much debt and keep
doing this this way, and unfortunately that could lead to
a more prolonged downturn. And we hope that's not the case.
But I mean, when you look at most of history
and how it's kind of worked out, it's kind of
(01:30):
what it suggests. We just want to prepare for that
if we know that that could actually even be on
the horizon at all.
Speaker 2 (01:35):
Being prepared with a plan in place and an understanding
of what our options are because obviously, well, I mean,
there's nothing absolute when it comes to what our options are.
But it is seldom a good idea to take money
out of an account that is dropping in value. So
Elizabeth O'Brien, she's with Barons, and she was talking about
how when the market is volatile, you should have a
(01:56):
cash account as your safety net.
Speaker 5 (01:58):
Here's what she said, So, as.
Speaker 6 (02:00):
Your approaching retirement, you want to nail down your cash cushion.
That means setting aside at least a year's worth of
expenses in cash and what I mean by that is
the amount you need to pay the bills after accounting
for Social Security and any other income sources you have.
That way, you don't have to sweat the volatility as
much if you know that your near term expenses your
essentials are taken care of.
Speaker 5 (02:17):
So okay, a couple of things.
Speaker 2 (02:20):
One I do want to ask you about what you
think people should have in the way of a cash cushion,
and is one year of cash enough when we're in retirement.
But also, we have talked extensively about bucketing our money
when it comes to tax strategies, but should we also
have a bucket strategy for liquidity in.
Speaker 5 (02:37):
Our retirement plan?
Speaker 3 (02:39):
Great point, So I'm going to kind of answer all
those kind of insummations. So I think that a year's
worth of income has to be in let's call it
just the safe short term bucket right now. I also
want most people, let's say that you need seventy thousand
dollars of income that first year, So I kind of
want that first bucket. Now, guys, this doesn't mean that
you have it to sitting in cash earning nothing. I mean,
(03:01):
we're kind of fortunate right now that we can have
our money in short term money markets or things like
that that are still getting three and a half to
four and a half, sometimes even a little bit better
than five percent, and they're pretty liquid, right, so that's
not so bad. But I want one year's worth of
income plus a emergency fund equal to three to six
months of total expenses. And then if you have any
(03:24):
major expenditure you know is coming up. For instance, you
want to go ahead and do that Mediterranean cruise, and
or you know that that hot water heater is about
to go out and that's going to be another four grand,
or you are certain that you're going to have to
replace that car, and even whether you pay cash for
it or finance it doesn't make any difference. You kind
of want a good amount of that. So to me,
(03:44):
in a very short term bucket, I want one year's
worth of income plus your emergency count, plus whatever you
know for a fact is going to have happened as
far as like an expenditure you have to redo the
deck on the investment property or someone could sue you,
you know, so that's going.
Speaker 4 (03:58):
To be twenty five grand.
Speaker 3 (04:00):
That's the amount of money I want to keep in
that first bucket because If we do that, we're going
to have liquidity no matter what comes up.
Speaker 4 (04:05):
We know we have concerns and we can always choose.
Speaker 3 (04:08):
Okay, I don't have to do the deck this year,
but you know that it's already a portion, it's already
taken care of. If a downturn last a little bit longer.
Speaker 5 (04:15):
You're saying that's all in one bucket.
Speaker 3 (04:16):
Then that is the very first bucket. That would be
the short term we call the now bucket. In the
event that things were wrong and we couldn't pull from
any other assets, either because we needed them to produce
an income or we need it to grow because it's
a downturn. Now, if that were to be the case,
we need money that we know that there is zero
chance of it going down that we could get cash available.
(04:37):
So it's liquid or pretty darn close to liquid as
much as we can. That is that bucket number one,
or we call the now bucket.
Speaker 5 (04:44):
The now bucket, all right, next bucket.
Speaker 3 (04:46):
Then we call that the soon bucket, or some people
call it the income generation bucket.
Speaker 4 (04:51):
So if you owned.
Speaker 2 (04:52):
Interesting and let me interject, because I would think you
were talking about the idea of upcoming big purchases. In
the way I think about it, IM like, well, should
not go ow the sooon bucket.
Speaker 5 (05:00):
This is what I wanted. That's why I really wanted
to break this down.
Speaker 3 (05:03):
Yeah, yeah, so it's important. So the soon bucket kind
of has one job. It is to create income. So,
for instance, if you own an investment property.
Speaker 4 (05:11):
Let's say that you own an airbnb.
Speaker 3 (05:13):
You own it in straight cash, so you don't have
any debt on it, you have no desire to sell it,
but it's going to produce Let's say it's a two
hundred thousand dollars asset producing twenty thousand dollars a year. Well,
to me, since you have no desire to sell that asset,
I would keep that in that middle bucket, that soon asset, right,
because that two hundred grand is going to support you
getting twenty thousand dollars a year.
Speaker 4 (05:33):
That's pretty good.
Speaker 3 (05:34):
Every year it produces that twenty grand, guess what he
goes into that now bucket and you can spend it.
Speaker 4 (05:39):
You can use that for part of your income. I
love it.
Speaker 5 (05:41):
Okay.
Speaker 4 (05:41):
Part number two.
Speaker 3 (05:42):
Let's say that you have a lump sum pension that
you get the opportunity to say, hey, you can take
this lump sum pension. You can turn it into an
annuity with us, or you can turn it into an
annuity on your own, or you can take those assets
and invest in whatever you want. Well, a portion of
that I would be really, really nice if you could
actually create an income stream for that.
Speaker 4 (06:00):
Typically, we don't want the whole amount. We want to
know what of.
Speaker 3 (06:03):
Those assets can we pull a five to seven percent
income stream from in that bucket. We want no loss opportunities,
we don't want to have any chance of losses, but
we want it to create an income because if we
can put let's say a million dollars in that soon bucket,
and that can produce a seven percent income, that's seventy
grand a year. So let's add that to the twenty
(06:25):
thousand dollars we get from that Airbnb. Now we get
ninety grand. Who add that to whatever we get from
Social Security, let's say forty thousand. Now we have one
hundred and thirty thousand dollars annual income with assets that
we're comfortable with the real estate. We've had it forever,
it's paid off, paid in cash. We know we're going
to get the income from that. The other asset we
know we can pull from. We're not going to plan
on selling it. We want it to produce that annuity
(06:46):
or pension style income.
Speaker 4 (06:48):
Great, and we know.
Speaker 3 (06:49):
We're going to have Social Security, so whatever is remaining
can really be risked any amount we want. That would
be the later bucket. So again, the now bucket is
money that we're going to have to have now, or
we could use now, or we want to have it
available now so that we don't have to sell assets
at the wrong time.
Speaker 4 (07:06):
Right.
Speaker 3 (07:06):
That's why I say it's more than just one year's
living expenses. It's a little bit more than that.
Speaker 4 (07:10):
Right.
Speaker 3 (07:10):
That soon bucket is money that we might need soon,
but we need it to create an income for us
that we can use now.
Speaker 4 (07:17):
Okay, okay.
Speaker 3 (07:18):
And then that third bucket, the last one, and this
is where most people, this is where the majority of
us invests most of our money. We have it, and
that what I call the later or growth bucket. They
have their four to one ks and their mutual funds
and their iras. They get their individual equities and their
stocks and their mutual funds and their exchange traded funds,
and their gold and their silver and all that kind
of stuff. Well, guys, that is all meant for later.
(07:40):
It's meant to grow over the long run. Great, but
any given day it could be down nine percent, twenty
two percent, in any given month or year could be
down thirty or forty percent. So we don't want to
have to get to that money when we need it now,
and you don't know if we're going to be able
to get to it soon. So that's it becomes the
(08:01):
later bucket. Because if we have enough time for markets
to do its thing, then generally I do feel that
US equities, quality, international stocks, and funds like that Vanguard,
you know, Fidelity, Schwab, all the good stuff, right, Blackrock,
whatever you want, whatever you want. The idea is that
(08:21):
over long periods of time, those will do well. But
we have to give them the time, so we have
to put those in that later bucket. Now, that later
bucket is where most people have most of their money.
We want to make sure you understand your risk tolerance right,
because if you said, well, John, I've been pretty aggressive.
Speaker 4 (08:34):
It's how I've gotten all this money in the front end.
No problem.
Speaker 3 (08:37):
Whatever you have remaining in that later bucket be as
risky as you choose.
Speaker 4 (08:42):
Most people when.
Speaker 3 (08:43):
They realize the bucketing system will stop you from having
almost any major heart palpitations.
Speaker 4 (08:50):
It will almost.
Speaker 3 (08:50):
Completely eliminate your fear of running out of money because
you know, I don't know, I got plenty of money
in the now bucket. I can see that I've got
sizable assets in the sooon bucket giving me income year.
What's there to freak out about? So you know what happens, Heather,
is that your plan you can actually stick with it,
which is the number one reason why people that even
have plans they would ever fail because why they don't
(09:12):
stick to the plan.
Speaker 5 (09:13):
Yeah.
Speaker 3 (09:14):
So if you simply have a now assoon in a
later bucket, easily you can go into retirement feeling confident
because you always know if you needed something, what's in
that next bucket over? What's in that next bucket over?
Hopefully we don't require that, but that allows us to live,
to fight and live another day.
Speaker 2 (09:32):
You have mentioned many different strategies and how they fall
within these different buckets and keep you up with liquidity.
Besides an emergency fund, are there other alternatives that you
suggest as far as where to pull money from in
a down market?
Speaker 3 (09:46):
Yeah, so there's all kinds of things. Usually I want
people to kind of have a line of credit. And
then this is not because we're going to use lines
of credit or credit in certain situations.
Speaker 4 (09:56):
Okay, I really want people.
Speaker 3 (09:58):
To be aware of what are your opportunity when things
get weird, because selling any asset that's volatile is almost
one hundred percent the recipe for disaster. If you look
at almost any period of time, almost any period of time,
if you sell an asset that's underwater at the wrong time,
your chances are running out of money increase through the roof. Okay,
(10:19):
So any way that we can just be certain that
we have enough assets that can't lose in bad situations.
And what do mean by bad situations? Inflation skyrockets, the
market's plummet, people start pulling money out of the US economy.
So now international markets are good, but not the US economy.
The next president does something completely different and derails.
Speaker 4 (10:38):
The current policies.
Speaker 3 (10:39):
The fact that what if the United States keeps getting
downgraded in our debt structure, no one buys our debts
and the government has no choice because they can't get
money from other people, but then to truly take it
from us, those are things that can impact us for
great periods of time.
Speaker 4 (10:52):
And by the way, every.
Speaker 3 (10:54):
One of those things has happened in this country over
the past hundred years. We've just forgotten about a lot
of it, but it can absolutely happen. So again, how
do we protect ourselves from those things? You ask me,
are there other things that we can do other than
an emergency fund to put these things together? The biggest
thing is just to get the kiss method, keep it simple, silly,
(11:14):
Just make certain that we understand how much we can
afford to risk, how much we don't have to risk,
because really it does come down to how much is enough.
If you're about to retire next year and you're not
already a multi multi multimillionaire, just be honest with yourself.
The chances of being a multi multi multi millionaire maybe
out the door, But could you be tolerable. Is it
tolerable just to be a single millionaire? But stay that
(11:36):
way and live life the way you want? Probably, So
let's just make sure we get it right. Using the
right plan and sticking with it is the easiest way
to make sure that you live the life you want
when you want to do it.
Speaker 2 (11:48):
Sounds to me like there might be alternatives, but really
put a plan in place. Don't worry about alternatives, focus
on the plan.
Speaker 3 (11:55):
There is no alternative to having a proper plan that
you can stick to, and that's the most important part
that you can stick to.
Speaker 5 (12:02):
And being realistic with yourself.
Speaker 2 (12:03):
Being honest with yourself another point you are always reiterating
to people.
Speaker 5 (12:07):
Be honest with yourself.
Speaker 2 (12:08):
Be honest with John and his team so that they
can create a clear plan, a simple, clear plan for you,
so you know the direction that you're headed for the
years ahead. We are at Retirement solutionshow dot com. That's
where you can go to start the conversation with John
and his team at Jahagen Capital about creating this plan,
bucketing your money, knowing where you're going to be pulling
(12:29):
from in the years ahead, in a plan that's clear
and simple for you. We also have links posted in
the show notes so you can just click there organ
It's Retirement solutionaryshow dot com.
Speaker 1 (12:37):
Thanks for listening to the Retirement Solution Podcast with John Hicks.
Begin the conversation about your savings plan with John and
the team at Jahagen 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 Jajigan.
Speaker 7 (12:59):
Capital Incorporated not licensed in all fifty states. To find
out if Jay Ghegan Capital, Incorporated is licensed in your state,
please call five zero two sixty nine oh fifty six
thirty five. J Higingan Capital, 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 contacting house, you may be provided with information about
insurance and annuity products offered through j Higin Capital LLCNPN
(13:19):
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):
Donicks, founder of jac and Capital, Financial advisor. Here to
clarify information for us. You've mentioned before in many different
circumstances and conversations the idea about well safety obviously safety first,
but how to manage circumstances when the market has been volatile.
(00:28):
And yes, we have seen market rebounds fortunately, but in
twenty to thirty to forty years of retirement, what's the
average market correction cycle?
Speaker 3 (00:38):
Yeah, so if you look at a standard market correction,
you know, but every three to five years we'll see
a twenty to thirty five percent draw down at least
on average. Now we're in a weird cycle, right. We've
had almost twelve or thirteen years where we haven't quite
had that much. I mean, we had twenty twenty two
where stocks and bonds both got you know, land blasted.
We had twenty twenty where the market was I'm not
(00:59):
going to say artificial, because it truly went down. It
went down almost thirty something percent before it had one
of the quickest rebounds in the history of time.
Speaker 4 (01:06):
So we've seen volatility.
Speaker 3 (01:08):
Yeah, but the next downturn probably won't be based on
a black Swan event. It's probably just going to be
really systemic, which just means, hey, you know, we can't
spend this way and have this much debt and keep
doing this this way, and unfortunately that could lead to
a more prolonged downturn. And we hope that's not the case.
But I mean, when you look at most of history
and how it's kind of worked out, it's kind of
(01:30):
what it suggests. We just want to prepare for that
if we know that that could actually even be on
the horizon at all.
Speaker 2 (01:35):
Being prepared with a plan in place and an understanding
of what our options are because obviously, well, I mean,
there's nothing absolute when it comes to what our options are.
But it is seldom a good idea to take money
out of an account that is dropping in value. So
Elizabeth O'Brien, she's with Barons, and she was talking about
how when the market is volatile, you should have a
(01:56):
cash account as your safety net.
Speaker 5 (01:58):
Here's what she said, So, as.
Speaker 6 (02:00):
Your approaching retirement, you want to nail down your cash cushion.
That means setting aside at least a year's worth of
expenses in cash and what I mean by that is
the amount you need to pay the bills after accounting
for Social Security and any other income sources you have.
That way, you don't have to sweat the volatility as
much if you know that your near term expenses your
essentials are taken care of.
Speaker 5 (02:17):
So okay, a couple of things.
Speaker 2 (02:20):
One I do want to ask you about what you
think people should have in the way of a cash cushion,
and is one year of cash enough when we're in retirement.
But also, we have talked extensively about bucketing our money
when it comes to tax strategies, but should we also
have a bucket strategy for liquidity in.
Speaker 5 (02:37):
Our retirement plan?
Speaker 3 (02:39):
Great point, So I'm going to kind of answer all
those kind of insummations. So I think that a year's
worth of income has to be in let's call it
just the safe short term bucket right now. I also
want most people, let's say that you need seventy thousand
dollars of income that first year, So I kind of
want that first bucket. Now, guys, this doesn't mean that
you have it to sitting in cash earning nothing. I mean,
(03:01):
we're kind of fortunate right now that we can have
our money in short term money markets or things like
that that are still getting three and a half to
four and a half, sometimes even a little bit better
than five percent, and they're pretty liquid, right, so that's
not so bad. But I want one year's worth of
income plus a emergency fund equal to three to six
months of total expenses. And then if you have any
(03:24):
major expenditure you know is coming up. For instance, you
want to go ahead and do that Mediterranean cruise, and
or you know that that hot water heater is about
to go out and that's going to be another four grand,
or you are certain that you're going to have to
replace that car, and even whether you pay cash for
it or finance it doesn't make any difference. You kind
of want a good amount of that. So to me,
(03:44):
in a very short term bucket, I want one year's
worth of income plus your emergency count, plus whatever you
know for a fact is going to have happened as
far as like an expenditure you have to redo the
deck on the investment property or someone could sue you,
you know, so that's going.
Speaker 4 (03:58):
To be twenty five grand.
Speaker 3 (04:00):
That's the amount of money I want to keep in
that first bucket because If we do that, we're going
to have liquidity no matter what comes up.
Speaker 4 (04:05):
We know we have concerns and we can always choose.
Speaker 3 (04:08):
Okay, I don't have to do the deck this year,
but you know that it's already a portion, it's already
taken care of. If a downturn last a little bit longer.
Speaker 5 (04:15):
You're saying that's all in one bucket.
Speaker 3 (04:16):
Then that is the very first bucket. That would be
the short term we call the now bucket. In the
event that things were wrong and we couldn't pull from
any other assets, either because we needed them to produce
an income or we need it to grow because it's
a downturn. Now, if that were to be the case,
we need money that we know that there is zero
chance of it going down that we could get cash available.
(04:37):
So it's liquid or pretty darn close to liquid as
much as we can. That is that bucket number one,
or we call the now bucket.
Speaker 5 (04:44):
The now bucket, all right, next bucket.
Speaker 3 (04:46):
Then we call that the soon bucket, or some people
call it the income generation bucket.
Speaker 4 (04:51):
So if you owned.
Speaker 2 (04:52):
Interesting and let me interject, because I would think you
were talking about the idea of upcoming big purchases. In
the way I think about it, IM like, well, should
not go ow the sooon bucket.
Speaker 5 (05:00):
This is what I wanted. That's why I really wanted
to break this down.
Speaker 3 (05:03):
Yeah, yeah, so it's important. So the soon bucket kind
of has one job. It is to create income. So,
for instance, if you own an investment property.
Speaker 4 (05:11):
Let's say that you own an airbnb.
Speaker 3 (05:13):
You own it in straight cash, so you don't have
any debt on it, you have no desire to sell it,
but it's going to produce Let's say it's a two
hundred thousand dollars asset producing twenty thousand dollars a year. Well,
to me, since you have no desire to sell that asset,
I would keep that in that middle bucket, that soon asset, right,
because that two hundred grand is going to support you
getting twenty thousand dollars a year.
Speaker 4 (05:33):
That's pretty good.
Speaker 3 (05:34):
Every year it produces that twenty grand, guess what he
goes into that now bucket and you can spend it.
Speaker 4 (05:39):
You can use that for part of your income. I
love it.
Speaker 5 (05:41):
Okay.
Speaker 4 (05:41):
Part number two.
Speaker 3 (05:42):
Let's say that you have a lump sum pension that
you get the opportunity to say, hey, you can take
this lump sum pension. You can turn it into an
annuity with us, or you can turn it into an
annuity on your own, or you can take those assets
and invest in whatever you want. Well, a portion of
that I would be really, really nice if you could
actually create an income stream for that.
Speaker 4 (06:00):
Typically, we don't want the whole amount. We want to
know what of.
Speaker 3 (06:03):
Those assets can we pull a five to seven percent
income stream from in that bucket. We want no loss opportunities,
we don't want to have any chance of losses, but
we want it to create an income because if we
can put let's say a million dollars in that soon bucket,
and that can produce a seven percent income, that's seventy
grand a year. So let's add that to the twenty
(06:25):
thousand dollars we get from that Airbnb. Now we get
ninety grand. Who add that to whatever we get from
Social Security, let's say forty thousand. Now we have one
hundred and thirty thousand dollars annual income with assets that
we're comfortable with the real estate. We've had it forever,
it's paid off, paid in cash. We know we're going
to get the income from that. The other asset we
know we can pull from. We're not going to plan
on selling it. We want it to produce that annuity
(06:46):
or pension style income.
Speaker 4 (06:48):
Great, and we know.
Speaker 3 (06:49):
We're going to have Social Security, so whatever is remaining
can really be risked any amount we want. That would
be the later bucket. So again, the now bucket is
money that we're going to have to have now, or
we could use now, or we want to have it
available now so that we don't have to sell assets
at the wrong time.
Speaker 4 (07:06):
Right.
Speaker 3 (07:06):
That's why I say it's more than just one year's
living expenses. It's a little bit more than that.
Speaker 4 (07:10):
Right.
Speaker 3 (07:10):
That soon bucket is money that we might need soon,
but we need it to create an income for us
that we can use now.
Speaker 4 (07:17):
Okay, okay.
Speaker 3 (07:18):
And then that third bucket, the last one, and this
is where most people, this is where the majority of
us invests most of our money. We have it, and
that what I call the later or growth bucket. They
have their four to one ks and their mutual funds
and their iras. They get their individual equities and their
stocks and their mutual funds and their exchange traded funds,
and their gold and their silver and all that kind
of stuff. Well, guys, that is all meant for later.
(07:40):
It's meant to grow over the long run. Great, but
any given day it could be down nine percent, twenty
two percent, in any given month or year could be
down thirty or forty percent. So we don't want to
have to get to that money when we need it now,
and you don't know if we're going to be able
to get to it soon. So that's it becomes the
(08:01):
later bucket. Because if we have enough time for markets
to do its thing, then generally I do feel that
US equities, quality, international stocks, and funds like that Vanguard,
you know, Fidelity, Schwab, all the good stuff, right, Blackrock,
whatever you want, whatever you want. The idea is that
(08:21):
over long periods of time, those will do well. But
we have to give them the time, so we have
to put those in that later bucket. Now, that later
bucket is where most people have most of their money.
We want to make sure you understand your risk tolerance right,
because if you said, well, John, I've been pretty aggressive.
Speaker 4 (08:34):
It's how I've gotten all this money in the front end.
No problem.
Speaker 3 (08:37):
Whatever you have remaining in that later bucket be as
risky as you choose.
Speaker 4 (08:42):
Most people when.
Speaker 3 (08:43):
They realize the bucketing system will stop you from having
almost any major heart palpitations.
Speaker 4 (08:50):
It will almost.
Speaker 3 (08:50):
Completely eliminate your fear of running out of money because
you know, I don't know, I got plenty of money
in the now bucket. I can see that I've got
sizable assets in the sooon bucket giving me income year.
What's there to freak out about? So you know what happens, Heather,
is that your plan you can actually stick with it,
which is the number one reason why people that even
have plans they would ever fail because why they don't
(09:12):
stick to the plan.
Speaker 5 (09:13):
Yeah.
Speaker 3 (09:14):
So if you simply have a now assoon in a
later bucket, easily you can go into retirement feeling confident
because you always know if you needed something, what's in
that next bucket over? What's in that next bucket over?
Hopefully we don't require that, but that allows us to live,
to fight and live another day.
Speaker 2 (09:32):
You have mentioned many different strategies and how they fall
within these different buckets and keep you up with liquidity.
Besides an emergency fund, are there other alternatives that you
suggest as far as where to pull money from in
a down market?
Speaker 3 (09:46):
Yeah, so there's all kinds of things. Usually I want
people to kind of have a line of credit. And
then this is not because we're going to use lines
of credit or credit in certain situations.
Speaker 4 (09:56):
Okay, I really want people.
Speaker 3 (09:58):
To be aware of what are your opportunity when things
get weird, because selling any asset that's volatile is almost
one hundred percent the recipe for disaster. If you look
at almost any period of time, almost any period of time,
if you sell an asset that's underwater at the wrong time,
your chances are running out of money increase through the roof. Okay,
(10:19):
So any way that we can just be certain that
we have enough assets that can't lose in bad situations.
And what do mean by bad situations? Inflation skyrockets, the
market's plummet, people start pulling money out of the US economy.
So now international markets are good, but not the US economy.
The next president does something completely different and derails.
Speaker 4 (10:38):
The current policies.
Speaker 3 (10:39):
The fact that what if the United States keeps getting
downgraded in our debt structure, no one buys our debts
and the government has no choice because they can't get
money from other people, but then to truly take it
from us, those are things that can impact us for
great periods of time.
Speaker 4 (10:52):
And by the way, every.
Speaker 3 (10:54):
One of those things has happened in this country over
the past hundred years. We've just forgotten about a lot
of it, but it can absolutely happen. So again, how
do we protect ourselves from those things? You ask me,
are there other things that we can do other than
an emergency fund to put these things together? The biggest
thing is just to get the kiss method, keep it simple, silly,
(11:14):
Just make certain that we understand how much we can
afford to risk, how much we don't have to risk,
because really it does come down to how much is enough.
If you're about to retire next year and you're not
already a multi multi multimillionaire, just be honest with yourself.
The chances of being a multi multi multi millionaire maybe
out the door, But could you be tolerable. Is it
tolerable just to be a single millionaire? But stay that
(11:36):
way and live life the way you want? Probably, So
let's just make sure we get it right. Using the
right plan and sticking with it is the easiest way
to make sure that you live the life you want
when you want to do it.
Speaker 2 (11:48):
Sounds to me like there might be alternatives, but really
put a plan in place. Don't worry about alternatives, focus
on the plan.
Speaker 3 (11:55):
There is no alternative to having a proper plan that
you can stick to, and that's the most important part
that you can stick to.
Speaker 5 (12:02):
And being realistic with yourself.
Speaker 2 (12:03):
Being honest with yourself another point you are always reiterating
to people.
Speaker 5 (12:07):
Be honest with yourself.
Speaker 2 (12:08):
Be honest with John and his team so that they
can create a clear plan, a simple, clear plan for you,
so you know the direction that you're headed for the
years ahead. We are at Retirement solutionshow dot com. That's
where you can go to start the conversation with John
and his team at Jahagen Capital about creating this plan,
bucketing your money, knowing where you're going to be pulling
(12:29):
from in the years ahead, in a plan that's clear
and simple for you. We also have links posted in
the show notes so you can just click there organ
It's Retirement solutionaryshow dot com.
Speaker 1 (12:37):
Thanks for listening to the Retirement Solution Podcast with John Hicks.
Begin the conversation about your savings plan with John and
the team at Jahagen 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 Jajigan.
Speaker 7 (12:59):
Capital Incorporated not licensed in all fifty states. To find
out if Jay Ghegan Capital, Incorporated is licensed in your state,
please call five zero two sixty nine oh fifty six
thirty five. J Higingan Capital, 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 contacting house, you may be provided with information about
insurance and annuity products offered through j Higin Capital LLCNPN
(13:19):
number one eight eight two seven zero nine four
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