Misconceptions About Retirement TPWM 12-4`21: Audio automatically transcribed by Sonix
Misconceptions About Retirement TPWM 12-4`21: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.
Producer:
The following paid program is prerecorded and sponsored by Take Point Wealth Management on the Nature Coast of Florida. Take Point on retirement, a well-rounded show from a well-rounded team of experts leading you into retirement. Listen Saturday mornings for an hour of simple retirement advice from your friends at Take Point Wealth Management Saturday Mornings seven 30. Well, if you recognize the music, it's that time once again for our good friends from the neighborhood that's right up and down the nature coast. Here, fiduciary services Take Point Wealth management their name as a show called Take Point on Retirement. A lot to talk about to day because a lot of stuff is going on not only here, nationally but internationally, and we want to talk about the markets and more misconceptions about retirement. It's all handled by our good friends at Take Point Wealth. Erick Arnett, Lead Advisor, Retirement Planner In the studios with us, he has a slew of professionals at his disposal to help you in your stress free and retirement. Take it from here with Take Point Wealth management taking the lead.
Erick Arnett:
Erick Arnett Hey, good morning, J.W.. Good morning, sir. So, yeah, lots to talk about too much, really. So we're going to try to get as much as we can in today. And but I want to just remind everybody out there that the radio show and the podcast listeners can get a free financial plan all the way to their ninety fifth birthday in a free portfolio analysis. All you have to do is just visit, Take Point on Retirement, Take Point on Retirement, upper right hand corner click and you can set an appointment right now or just call us at (352) 616-0511 and we'll be ready to help you out. Right now, we're offering a free Social Security maximization report at no cost to you when you book that appointment with us today. So just go ahead and book on Take Partner Retirement dot com or give us a call and we're going to go ahead and do that free Social Security maximization report, as well as the portfolio analysis and a free retirement plan. So pretty cool stuff. Just a reminder, all our episodes are available wherever you listen to podcasts, so subscribe to Take Point on Retirement so you never miss an episode and please leave us a review and let us know what you like about the show that would be most helpful and appreciative. So diving in, let's talk about the market updates. The market's been steadily climbing, but meeting some resistance here lately and getting a little more volatile and good news out there in the markets.
Erick Arnett:
And there's bad news out there, right? Is this like any time in our history or in the history of the market? You can pause and there's always going to be positive stuff out there and negative stuff, and you've got to kind of look at everything and weigh the pros and cons and see what's going on. But right now, most of the underlying fundamentals that we look at are very strong and the economy. Interestingly enough, this past week, jobless claims hit a 52 year low. So jobless claims hit a 52 year low. That's that's very encouraging. Jobless claims dropped over seventy one thousand to one point ninety nine, the lowest since November of 1969. So it appears that less and less people are filing for unemployment and hopefully people are getting back to work. Even though I still constantly hear the moans and groans from almost every small business out there as they can't find anybody to work. Yeah, so there's a job out there for everybody. I guess it's just whether or not they're trained or willing to go back to work anyways. The job atmosphere is looking much better. Interestingly enough, for the first time ever, Cyber Monday sales dropped by one point four percent. First time ever that we had a reduction in retail sales, so that could be telling sign. Mm hmm. Interesting. People did not spend as much on Cyber Monday and Black Friday, and so should be interesting to see how retail sales pan out for Christmas.
Erick Arnett:
They're still talking about a lot of supply chain issues. Yeah. And I know, for instance, like in my family, it was pretty obvious. I mean, like, there's things that we can't get or we go out to the stores and they're bare. And so it's kind of like you kind of lose your excitement for Christmas shopping in a sense. And my kids are getting older, so they're getting less and less. But my wife and I just kind of looked at it and I was like, Wow, you know, let's get the kids a couple of gifts this year and be done with it. I don't know that people are going to be out there spending as much this year this Christmas season, just because the stuff's not available. So from a personal standpoint, that might be better for people in a sense, maybe understanding the true meaning of Christmas family, friends, a good meal around the fire and and leaving some cookies out for Santa as opposed to Hey, I got to put thousands of presents under the tree to keep the kids happy. You know, that's not the true meaning of Christmas, so inflation continues to be a concern. Our federal chairman actually was on the news yesterday and basically was saying, Hey, I think we need to stop using the term inflation as transitory. Inflation is probably here to stay and we'll be in. We'll continue to see inflation well into 2022. So what does that mean for our retirement warriors? Yeah, you know what it means is now. Is more important than ever to to put a plan together to potentially readjust your plan if you have a plan in place already.
Erick Arnett:
Then come on in, let's test it. Let's go over it. Let's see if it's going to stand up to inflation. Your health care costs, your food costs, your your gas prices, everything is increasing. In fact, the Dollar Tree just adjusted prices to a dollar twenty five for most items. So the dollar store and the Dollar Tree is no longer the dollar store, it's the dollar twenty five store. Yeah, our U.S. dollar is not worth as much as it was just a few months ago, and we may continue to see that going forward, and that's going to pose challenges for our retirees. So more than ever, you've got to get that money working and you've got to beat inflation. So we'll we'll put this, we'll put together a strategy for you, a sound strategy to beat that inflation long term and to still reach all your retirement dreams. So I think more than ever, it's the time to get in and take a look at what you're doing. Take a look at your portfolio. Is it a tactical portfolio? Is it a well-balanced portfolio? Is it well diversified? Will build a move and adjust with what potentially is coming with the changes in all the different markets so real important to get in there and get that analysis going. But for the most part, we're still seeing strong earnings, a very strong earnings from the corporate world. So we'll see hEricow this all plays out going forward.
Erick Arnett:
But potentially the inflation rising interest rates may slow. The market's down a bit here, give it a pause or a breather. And listen, the market's been going steadily up, up, up and up for the last five to 10 years. And sometimes markets do need to pause and take a break, and it's OK. If markets do correct, that's normal. Typically, every three to five years markets correct, and we haven't seen a sizable correction in a long time. But if your retirement plan is solid and in place, well diversified with index annuities, bonds, real estate, international bonds, stocks, international stocks, commodities, gold. If you have all that in your portfolio and it's being adjusted for the economic cycles, then you're fine. So make sure you're with a good advisor that's not sleeping at the wheel because now more than ever, your advisor needs to be vigilant and be making those changes. Be preparing, making that portfolio more defensive, making that that retirement plan more effective to beat inflation going forward. So a lot of key things, a lot of stuff just like Social Security, you know, should I be taking Social Security? Do I take it now? What will the taxation be? A lot of unknown questions there, and we can pull it all together for you in a free Social Security maximization report. Easy for me to say, right? So good opening there. I think when we come back in segment two, we're going to really dove into some of those misconceptions about retirement.
Producer:
Very good. There's a lot of factors involved when you're looking towards a stress free retirement. We recommend and suggest Take Point Wealth Management, a fiduciary service here on the Nature Coast. That's right, real life people ready and standing by to help you assist you into that stress free retirement. Once again, all the radio podcast listeners get a free financial plan to their 95th birthday. In a free portfolio analysis. All you have to do is visit Take Point on Retirement. The name of this show Take Point on Retirement. Click the set an appointment button in the upper right hand corner. If you don't want to go online, you can call them right now. At three five two six one six zero five one one, that's three five two six one six zero five one one. They're ready and standing by to help you live in-person on the Nature Coast within our listening area. Take point on retirement the show brought to you by Take Point Wealth Management. We'll be back with Erick Arnett, Lead Advisor, Retirement Planner. In just a bit, folks. Hang on the information you need, the information you desire and deserve here on Take Point on Retirement. Erick Arnett is an investment adviser, representative of Retirement Wealth Advisors LLC, an SEC registered advisor. They point wealth management at this station in RWA are not affiliated. Exposure to ideas and financial vehicles discussed should not be considered investment advice or recommendation to buy or sell any financial vehicle.
Producer:
Any comments regarding safe and secure investments in guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered my retirement wealth advisors. The program continues here at Take Point on Retirement, a show brought to you by Take Point Wealth Management. That's right, taking the lead on your stress free retirement. Don't worry about that anymore because it's taken care of through Take Point Wealth Management their phone number once again. Three five two six one six zero five one one That's three five two six one six zero five one one. Go online. Check it out for yourself. Take point on retirement. Click the button that's up at the right hand corner of that website page. You look for the appointment button. Click that they'll be with you right away, or if you give him a call at three five two six one six zero five one one, they're standing by to take your call and to lead you into that stress free retirement. And once again, Lead Advisor Retirement Planner Erick Arnett in the studios with us.
Erick Arnett:
Hey, thanks, Jamie. Welcome back to our retirement warriors to Take Point on Retirement. So if you're wondering who a retirement warrior is, it's somebody who wants a tax efficient, a fee efficient and a market efficient portfolio to reach their retirement goals. They want to keep growing their wealth and put their dollars to work for them. So that's a shout out to all my retirement warriors out there. Give us a call three five two six one six zero five one one or just go right to the website. Take point on retirement upper right hand corner. You can click there, set up a chat session with me or set up an appointment. Something that just came to mind, too, is we're offering a free book right now. So if you go to the website and you click on there and you set up a consultation, which is just a brief 15 minute chat to see if there's anything we can do to help you if you have any concerns, but we'll send you this book called The Power of Zero. I think it's a life changing book, especially for folks that are getting close to retirement or even those a few years out, and it's getting to that zero tax bracket because we know taxes are going to be going up in the future. If you don't have any tax on your retirement, then you don't have to worry about that. Let's find a way to get you to that zero percent tax bracket as soon as we can, and you'll truly be a retirement or at that point.
Erick Arnett:
So, so all right, diving right into some misconceptions about retirement. These are just things that we kind of put together that we constantly are hearing out there that concern us. So one of them is. People think their effective tax rate will dramatically decrease once they stop working. So this is definitely not true, in fact, sometimes. And more often than not, we see tax rates go up. The effective tax rates go up for folks that retire because all of a sudden they got some pensions, they got Social Security. They have required minimum distributions. All of a sudden, they might find themselves in a higher tax bracket. And more importantly, how do we defend against that? We've got to get out in front of that as soon as we can. So you don't have to worry about those effective tax rates, but we're finding that Social Security is getting taxed and it's just a common misconception. You want to be careful about that and have a good, solid plan and you want to have a good tax plan. And that's why we partner with Randy Woodruff and Suncoast CPA Group. Yeah, all in the same office together. And so we have a great CPA team right there to evaluate your tax plan as well to make sure that's it's efficient. You want to make sure you're making smart decisions with your retirement future and with your retirement plan. So please give us a shout.
Producer:
By the way, that effective tax rate, that's a new word to me. Effective. I'm sure you've worked with it for a number of years. Been in the business over 25 years, right? What does that mean, exactly? Yeah.
Erick Arnett:
So it just simply means the tax code is is complex. So it's a graduated tax schedule, OK? So depending on what types of deductions you have, if you're married, if you're filing jointly and you know what is the bottom line like, even know what after you add up all your income and you take your adjusted gross income, what is the rate on that? So it might be a 10 percent effective tax rate, a 20 percent, even though some of your income comes into the 20 and 30 percent tax break, after all, your deductions and everything are taken into consideration, that bottom line might be at a much smaller, effective tax rate. So that's what we mean by effective tax rate. What are you truly paying in taxes as a % of your income? And of course, everyone's different. Everybody's different. Absolutely. And that's why it's important to have a tailored plan and not just listen, you bring up a great point. Sometimes you're sitting around the table or you're at a restaurant or bar and you listen to the people speak. And they're even though they all have very different situations. They think that they're talking about one common discipline or one common conception for them. And it's not. I mean, you might be talking about something that's totally ineffective for you, right? You know, because it's not tailored to your situation. So we don't believe in just blanket advice. Everybody's got a specific situation. And so we find that sometimes people can take money out of their IRAs and move it to a Roth, which is going to be in a tax free bucket for the rest of their life with no requirement of distributions, you know, no taxation on their beneficiaries or them in the future.
Erick Arnett:
And we find that once they're over in that tax free bucket, they may they may only pay five percent on the distribution or 10 percent on the distribution. So it just depends. Sometimes we've seen where people have been able to move money over there completely free because of their effective tax rates and some of the deductions that they have in their returns. So I think that's one of the great things in the power about our office that's different than most other advisory firms out there is. We have that CPA team on board to really dove into that and play with it and see, Hey, how can we get this as low as possible, right? And more than ever, with trillions of dollars being pumped into the system? Taxes are going to have to go up. In fact, you know, they already are going up. So where are they going to tax people? You know, 60 billion or more 600 600 billion dollars is in IRAs and four one KS. But so, you know, the government knows that they have a partner there. They can start taxing that at 40 percent or whatever, you know, if they could change the laws any time they want. But if we get you in that zero tax bracket, you don't have to worry about it. So that's what we need to do. Retirement Warrior's Retirement Warriors Yeah, we need warriors, man warriors out there.
Producer:
Yeah. And that Roth IRA conversion, by the way, it's such a great idea and you have a simple ladder that you'll show people.
Erick Arnett:
Yep, real simple. I mean, we'll do a schedule a ladder. Print it out. Here's a report. Boom, mail it right out to your email. We'll talk about it over the phone, or you can come into our office and and get get going on. And I find a lot of people are getting more and more motivated to to do that type of planning going forward here. So, yeah. Another misconception, J.W., is that people think Medicare covers long term care costs. So important to know Medicare does not cover your long term care costs. People have this idea that the government is going to take care of them, right? And you can't depend on that because it's simply not the case, right? Medicare does not cover almost any money with long term care whatsoever. So Medicare is really there for health care only. It's there for Medicare. Hani, which is your hospital costs and Medicare Part B, which is your physician costs and Medicare Part D, which is your drug cost, so guess what? You have co-pays and you have co-insurance and deductibles with those Medicare costs. And most people choose to get their Medigap supplemental insurance plans or they get a Medicare Advantage plan. So health care health care costs are something you need to consider, and that's why the smart health is a part of what we consider to be the smart financial plan. So, you know, we always say smart write smart are a key word their smart plan, smart plan, smart health.
Erick Arnett:
So part of your retirement planning is we encompass everything. We look at everything for you. We have Medicare experts at the office right now to answer your question. So if you reach out to us, we'll take care of you. We'll answer your questions. No problems free of charge. Just we're here to help. So it's a really important to understand that, and I'm sure everybody has questions out there. Make sure if you're sixty five and you're turning sixty five that you sign up for Medicare because if you don't, you'll be penalized too. That's right. Medicare is it's confusing. I mean, it really is. That's why I had to partner with someone that just strictly specializes in that. And someone calls up one of my clients or one of our prospects. I just say, Boom, here, speak to Rhonda. And this is what she specializes in, and she can answer your questions. So real important people think the key to retirement is acquiring one big magic number. What does that mean? So this is a huge misconception regarding your retirement portfolio. It'd be great to get a million dollars to two million to three million, but honestly, retirement is more about income. Mm hmm. Ok, so people. Think, well, I just got to grow the dollars, right? Well, yes, that's true, but what you really need to do is generate retirement income and solid income, an income that's going to be there and income that's going to get you through the different tax buckets, right? So it's about generating income and what's the number one concern of retirees that are pulled out there in America? It's they don't want to run out of income, right? So it's about putting an income plan together.
Erick Arnett:
You may have multiple buckets of assets. You may have IRAs Ross annuities one, you might have regular brokerage accounts, you might have cash at the bank CDs. So where do you pull the money and where is it most effective, right? So that that in itself is a is a is a strategy and something that you just can't take lightly. You can't just start pulling money from places and not really have a true, concise strategy. We have ways to generate income in the last year, and it's guaranteed throughout your lifetime. So if you need to create another pension to supplement your Social Security, we can do that and we can show you how. So not just about growing your money, it's really about generating that, that long term guaranteed income. So really, really important. This is where the smart tax portion of your smart financial plan that we do for you completely free if you call in begins to matter. You need to have a dependable income stream during retirement without the IRS holding you back too much. So one way to manage this is to generate tax free income from a Roth IRA. Another would be to generate tax free income coming from your universal indexed life policy, and these are some of the awesome strategies that you'll get in the book The Power of Zero.
Erick Arnett:
So just call in J.W. spot that number off here for a little bit. Go to our Web site, click up there and top right hand corner, and we'll send you the book for free, read through the book and then we can talk about it. I really do think it's life changing, so if you're in your 40s, 50s or even 60s and you want to figure out how you can get tax free income completely tax free, we're happy to help you do that. And you've got to act now. You can't. You can't just wait and keep putting it off. You got to act now. So please give us a call at three five two six one six zero five one one and schedule that appointment by visiting Take Point on retirement. We're going to provide you that free financial consult for all of our listeners. It's crazy to not have the knowledge you need to retire successfully. And listen, I realize that for many people, talking to financial planners is almost like going to the dentist. People, just it's painful, right? We just don't want to talk about that stuff, and I get it. I'm really no different, even though I'm a financial planner. Yeah, my wife and I just sometimes don't like to have those conversations or other things get in the way like, Hey, I'll be completely transparent here. My new wife and I, we've been trying to get to the attorney for almost a year or two to get our estate plan in place and change everything, and we still haven't got there.
Erick Arnett:
And shame on me because, well, something else comes up or we're going to do this, we're going to do that. Just pick up the phone. Commit to that appointment will guide you through it and we'll get you started on stuff like that. You can't, as an example, just utilizing my myself. You can't not have your estate plan in place. What if something happens? You know, it's going to be a mess for somebody to fix. So I've got to act. I've got to get going on that myself and I know most people out there are just kind of hanging out on a day to day basis and don't really know where to turn or what the next move is. Just just give us a call and we'll get you going and we'll get you in the right direction. We've been doing this. I was thinking about this in the shower this morning, going on twenty four years. I've been doing this for people. Yeah, twenty four years. So we've got the experience, the knowledge and of course, we're great students of the game. Heck, I'm going tomorrow to Tampa all day for eight hours for training. Wow, you know, all different types of concepts and things that we can utilize to help our retirement warriors so we constantly stay in the game. We're constantly getting trained. Your plan or something that you put in place five years ago may not be the best right now.
Erick Arnett:
And if you don't have a plan at all, then let's get one going, right? So another misconception that's is that all seniors receive the same Social Security benefit. This one's interesting to me. I wasn't sure if this was legitimate, but apparently based on a poll, a lot of seniors think, Hey, everybody just seems receives the same benefit. And that's not true at all. Social Security benefits are generated based on your top thirty five earning years. So the more average income you have made during your top thirty five earning years, the higher your Social Security income benefit will be. So it's obviously not true that everyone receives the same benefit. Everybody has a different benefit. You can go to SSA gov. Set up your account, pull your statement and you can see what you're estimated to get at sixty two, at sixty seven and then then at age 70. So real important in your planning is when we're going to take Social Security and how much and when we're going to defer it and what the taxes are going to be on that. So people think that they're stuck with the same Social Security benefit, that's absolutely not true. You know, your benefit can actually go up, especially after full retirement age. It goes up eight percent a year. So the longer you wait, the more you're going to make. But I want to be very clear about something.
Erick Arnett:
If if you take your Social Security income benefit at age sixty two, you're only getting seventy five cents on the dollar. So let me ask you, do you feel like you deserve more than 75 percent seventy five cents on the dollar of what you've paid in Social Security? So you're going to get a reduced benefit. So think before you do that and let's talk about whether that's a good situation for you or not. If you can, we'd like to see you try to make it to full retirement age if as long as long as you're not putting too much downward pressure on your retirement nest egg, right? So I always tell people, if you can defer it and you don't really need it, then then at least defer it to age sixty seven, which is your full retirement age. And that's your full benefit that you deserve. And if you don't take it at sixty seven, you continue to defer it while it's going to go up eight percent for three more years until age 70. And then if you, God forbid, say you pass away, you're going to leave your spouse a lot more money because she's going to get that benefit the highest of those two benefits. So just stuff to talk about and we kind of iron things out and go forward with a strategy there. So. So some of those Social Security misconceptions important for you to get there and do that maximization report
Producer:
The most common misconceptions about retirement brought to you by take point. Wealth Management, a show called Take Point on Retirement Misconceptions about Retirement The Main. Topic of the day the show brought to you every week at this time on this station from your friends at Take Point Wealth management, judiciary services up and down the nature coast within our listening area. They're here to help you in person live standing by at three five two six one six zero five one one and we're standing by to continue with the show. Take point on retirement. When we return, folks, hang on. We'll be back. Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments, it may be subject to restrictions, fees and surrender charges, as described in the annuity contract. Guarantees are backed by the financial strength and claims of papain ability of the issue, as performance may not be indicative of future results. Different types of investments involve varying degrees of risk, including the risk of loss or principal, and there can be no assurance that the future performance of any specific investment, investment strategy or product made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio. Investment Advisory Services offered through Take Point Wealth Management and Registered Investment Advisor. Take Joint Wealth Independent insurance products and other services are not offered through take point wells, but are offered and sold through individually licensed and appointed agents. Any comments regarding safe and secure investments and in guaranteed income streams refer only to fixed insurance products.
Producer:
They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to claims paying ability of the issuing company and are offered by Take Point Wealth management. Indexed or fixed annuities are not designed for short term investments and may be subject to caps, restrictions, fees and surrender charges, as described in the annuity contract for to help you with your decision to call Take Point Wealth management fiduciary service on the Nature Coast here within our listening area standing by to help you. All you got to do is go to their website, Take Point on Retirement, which, by the way, is the name of this show brought to you every week at this time and only on this station Take Point on Retirement. Check it out for yourself. There's a little button on a right hand. That's right, upper right hand corner. While you're there, it's in the upper right hand corner. There you go. You got it. You can set an appointment right there. If you don't want to go online, you can give them a call at three five two six one six zero five one one. And by the way, all radio and podcast listeners today get a free financial plan to their 95th birthday. That's right. A free portfolio analysis. All you have to do is set that appointment and as we continue, of course, our good friend, mine and yours. Erick Arnett, Lead Advisor, Retirement Planner with Take Boyd Wealth Management to continue with misconceptions about retirement.
Erick Arnett:
Thank you, sir. So jumping right back in here, people think that taxes will remain flat during their retirement years, so people think that their taxes will remain flat during their retirement years. This is one of the biggest misconceptions we hear. And did you know that between 1960 and 1963, the current twenty four percent tax bracket was actually fifty six percent? Hmm. Ok. So that figure is eight percent higher than two times of the same tax bracket. So imagine you were taking out ten thousand to go on a cruise or a vacation with your family. The government would get 5600 bucks and you would be left with four thousand four hundred. Ok, so if you listen to what you know, Democrats and power in Washington are threatening, it would be a safe assumption that taxes are probably going to go up in the future. So you need to plan for that. You need to do everything you can to tackle that misconception that taxes will remain flat during your retirement. And again, that's why the Smart Tax Plan is a part of our smart financial plan. So we've had smart health, smart Social Security, smart tax and, you know, boom, it all comes together for the Smart Financial Plan.
Erick Arnett:
But you know, more importantly, I think we've got to be honest with ourselves and we were at we're at historically low, probably the lowest tax bracket we've ever had in history. That's going to change. And so, you know, if you've got that 401k, that IRA, you've got a partner and it's Uncle Sam and they can dove into as much as of that as they want. So let's get started on getting that over in the tax free bucket. Ok? Utilizing IAL policies and utilizing the Roth conversion, we've got to get started on that. So, you know, people believe that Medicare will cover all their health care costs, so Medicare doesn't cover all your health care costs. There are co-payments and also deductibles that you must pay. And that's why almost all of our clients consider a Medigap Medigap supplement insurance plan or Medicare Advantage plan. So if you got questions about that stuff, please give us a call and we'll get them answered for you.
Producer:
Let's take a pause for station identification. You're listening to ninety nine point nine FM. Jb Homosassa, a
Erick Arnett:
Medicare, only covers 80 percent of health care costs. So keep that in mind, and I'd encourage you to consider getting that Medigap supplemental insurance plan or the Medicare Advantage plan. A Medicare Advantage is a little bit more like an HMO, and Medigap plan is a little bit more like a PPO, but. It's important to sit down with somebody that can run through all those plans for you based on your health needs, your health history and potentially what you have coming down the road to make sure they put the right plan together for you. So when you deal with that, Medicare Advantage is almost like dealing with the government. When you're dealing with Medigap supplemental insurance, it's like dealing with a private insurer. So there's so many of them out there, so you've got to be careful. Also, one big thing make sure that you're doing everything you can to get a Medicare supplement insurance comparison scheduled done every two or three years and try to start comparing cost of Medicare plans because they are basically identical. The only difference is price and sometimes network coverage so important. My mom, as an example, I mean, she's like, Oh, I'm happy with my plan. I've had the same one for years. I'm like, Mom might make sense for you to at least do an evaluation every couple of years to see if that's the best one still for you.
Erick Arnett:
There might be something out there that, you know, because this is this is like the tax code. Just like everything else that the government has its hands in, it's changing every year. Yeah. You know, so and so you've got to do that. That Medicare and Medicare supplement review 100 percent. People assume they'll die before they're 90 years old, so they plan to live that long. One thing I know for sure is that we don't know how long we're going to live. That's nothing's promised. And so we plan out to age ninety five, but we like to see a 100 percent success all the way through and pass age 95. And did you know the human life expectancy over the last 200 years in the United States of America has more than doubled? Is that crazy? Yeah, more than doubled the life expectancy. So did you also know that the CDC says that if both spouses live to be age sixty five, it's highly likely at least one of them is going to live to be over 90 years old. So we need to plan for our retirement to last.
Erick Arnett:
I always hear people come in off as like, Well, I'll never live to be 90. That's crazy. I don't want to live that long. So just funny stuff like that. Mm hmm. Because, you know, when we do our planning, we want to make sure their plan is solid and gets them all the way through ninety five and on. Because when you are in your 80s or 90s, guess what? It's going to be very expensive to live. Mm hmm. You know, with all those health care costs, assisted living, whatever is that you may need. And we're talking about 30 years from now. If inflation just went through the roof this year, what's it going to be 30 years now? What's it going to cost 30 years from now? So how are we growing and building that portfolio? If you just have money sitting around because you're scared to do something with it, it's eroding. It's dying, it's you're losing money every day, and it's really going to have an effect on the back end of your retirement. And don't say to yourself, Wow, I'm probably going to live to be seventy five anyways. You don't know. You just don't know. So got a plan?
Producer:
Yeah, failure to plan is a plan to fail. Boom.
Erick Arnett:
There you go. There you go. So we need to make sure that your money last. And one of the ways to do that is to invest in a smart financial plan that is strategic. It looks at a lot of different factors and helps you minimize the taxes you're going to pay, minimizes the market downturns and helps generate retirement income you can never outlive as well. So these are all the things that we can do for you if you just pick up the phone and give us a call today. So important,
Producer:
By the way, that phone number three five two six one six zero five one one three five two six one six zero five one one A local number because there a local fiduciary service on the Nature Coast and they're live in person ready to see you and take point on your retirement, give them a call today that's Take Point on Retirement.
Erick Arnett:
So when it comes to portfolio allocation, here's another misconception Well, I can just set it and forget it. Hmm. And unfortunately, ninety five percent of the folks that come into my office have had this kind of mentality for the last 10, 15, 20 years, and it's drastically unfortunately affected their potential for retirement and their potential just to maximize their retirement dollars. We've seen money just sit there in a road it's not properly allocated or a lot of mistakes have been made time in the market, jumping in, jumping out, making bad decisions, being over, you know, allocated to equity, not having bonds, not having real estate, you know, all this kind of stuff. So we see all these all these mistakes that are being made out there. So we encourage everyone to inspect what they expect. Encourage everyone. Say that again to inspect what they expect about their retirement future. So please don't think that you can just set it and forget it. Please, please, please. If you're going to be a bear, be a grizzly about it. Be aggressive about seeking knowledge. Please don't just forget about it and buy and hold is is a decent strategy at times, but you don't put your retirement future up to chance, right? Hope is not a strategy, so we can help you ensure your portfolio is managed properly and can weather all storms. We want your money working as hard for you as you worked for it because you did work hard for your money, and I bet you worked even harder to save it.
Erick Arnett:
If you had a, let's just say, half a million dollar portfolio and you lost 10 percent, that's 50 thousand. Wow. How hard did you have to work to save that fifty thousand? You know, those we got to protect those hard earned dollars every day, and we're vigilant about that because that's all we do. You know, our firm in Brookstone Capital Management as well as that's all we do, is work with retirees and concentrate on how to manage, take care of retirement plans long term. So we want your money working as hard for you as you work for it. Ok, so a lot of you know, a lot of people just assume, Hey, you know, I can handle my own retirement planning by myself. It's pretty simple and just get on the internet, you know, do a retirement planning calculator and I'm good to go, right? So but let me ask you, especially the husbands out there, because you've got a wife and you want her taken care of, right? So if you pass away and you've been handling all of your own investments, all of a sudden she has the responsibility of settling your affairs and taking care of herself. Right? I can think of an example a new client, a radio listener, has become a new client of ours recently, and it was exactly this situation.
Erick Arnett:
Yeah. You know, he'd been listened to us for a while on the radio. He was getting up there in years and he manages his own money, pretty much. And he's very comfortable with that. And he does, and he's done a great job. But his wife, on the other hand, has not touched it or even looked at it. You know, the 40 years of been married, she's out doing the gardening, the grocery shop and doing that kind of stuff and has no interest in the money side of it. Well, when something happens to that gentleman, she's going to be left with, you know, this big nest egg that's going to, quite frankly, probably freak her out. Like, What do I do? You know, who do I turn to? So I thought it was very wise of this gentleman to come in and get to know us and started slowly handing over some of the portfolio so he could get accustomed to what we're going to do for his wife in the event of his passing because he has a much younger wife. So I thought that was very responsible. That was great. And I hope there's other people out there that are listening as an example. You know, my wife is awesome at all the things she does, but she doesn't maintain the finances and and look over investments and things like I do. I've got to get her comfortable with that and get her trained up and talk about that stuff every day.
Erick Arnett:
So she if something does happen to me, boom, she can step in and be a retirement warrior herself and not have to worry about it. So have that conversation with your spouse. Both people in the in the household have got to be educated on this stuff, and a lot of times if someone comes in to do retirement planning and their wife isn't with them, I'll just say, Hey, look, we need to hold off. Your wife needs to be here for this. So really, really important. So if you pass away, you've been handling all your own investments all of a sudden, you know, she has this responsibility of settling your affairs and taking care of herself. If you haven't entrusted a fiduciary like myself, she's got nowhere to go. No frame of reference. She might make decisions that you wouldn't recommend. We need to do everything we can to set both spouses, not just one spouse, but both spouses, up for success during retirement. So, so important, and we believe that the right way is to have a financial adviser in place while you're both still with us, right? That just makes sense. So we can establish a plan that will ensure that both of you are taken care of during your golden years. It just doesn't make sense that so many believe they can handle their retirement by themselves. When you have a medical problem you don't have, you don't try to handle that yourself.
Erick Arnett:
You go to the experts. So why would you try to perform your own root canal? I mean, imagine you will call yourself a lot more pain going it alone than if you consulted with a financial expert just so, so important just to kind of go back through some of those misconceptions. One we talked about the misconception regarding Social Security. Everyone's Social Security benefit is the same amount. No, that's not true. Your benefit amount is fixed forever. No, that's not true. You're stuck with the benefit offered to you. No, that's not true. You should draw from Social Security as soon as possible. That's definitely not true. And your benefit will increase every year. So these are things that we've really got to get a handle on there with that Social Security maximization report. So when we come back, we're going to kind of wrap things up and we'll talk a little bit more about some of those misconceptions. And if you want to learn how to avoid 50 percent in IRS tax penalties with proper required minimum distribution withdrawal planning, please just visit us at Take Point on Retirement and click and set an appointment on that appointment button in the upper right hand corner, or give us a call at three five two six one six zero five one one and we'll get start planning for you.
Producer:
There you go. A free, no obligation financial analysis through Take Point Wealth Management Fiduciary Service on the Nature Coast ready to assist you and do that stress free retirement. That's right, they're here and they're ready. At three five two six one six zero five one one Take point on retirement online. The name of this show Take Point on Retirement from your friends at Take Point Wealth Management Lead Advisor Retirement Planner Erick Arnett in the studio with us this morning, giving you once again as promised and that information that you deserve and need to, yeah, have that stress free retirement. That's what it's all about, folks. Don't forget that book. Ask for the power of zero. That's right. The power of zero. A free book for the asking from Take Point Wealth management. We'll be back after this, folks. President Biden has promised to repeal Trump's tax cuts, don't get campaign too much in taxes with your retirement plan, my friends at Take Point Wealth, we'll give you a free no obligation Roth Ladder Conversion plan so you can make an informed decision about your financial future. Take point well, a local judiciary service visit, Take Point Wealth tax that's Take Point Wealth. Big Point Wealth Management is an Investment Advisor Representative of Retirement and Wealth Advisors Inc., an SEC registered advisor.
Producer:
Well, thanks for joining us on this weekend for Take Point on Retirement, a show brought to you by Take Point Wealth Management that's right on the Nature Coast, live and in person. A slew of professionals. That's right. A whole bunch of professionals there ready to assist you in that. I stress free retirement all under one roof, by the way, and all only at Take Point on Retirement. That's the website where you can go and get a free, no obligation financial analysis. That's right, a financial plan that's going to be built to your specific needs all the way up to your ninety fifth birthday. That's a free port portfolio analysis. No obligation. All you have to do is visit, Take Point on Retirement and click the Senate appointment button in the upper right hand corner or give him a call at three five two six one six zero five one one. That's Take Point on Retirement brought to you by take point well to management and lead advisor retirement planner in the studio with us once again to finish up with our misconceptions about retirement. Erick Arnett.
Erick Arnett:
Thank you, sir. Interesting tidbit here I'm reading this week in history. In nineteen sixty five this week, the WHO released my generation love that song, right? Not one of my favorites, but in 1983, Michael Jackson's thriller music video debuted on MTV. How about that man? Time flies when you're having fun, right? This is a thriller, just a thriller now. So, but hey, retirement warriors. Let's dove in. Wrap up here. I want to just review kind of what we've been talking about, things that you probably need to think about as well and give us a shout or go ahead and click up there in the right hand corner and set an appointment. Those misconceptions regarding Social Security. Once again, everybody's Social Security is not the same. Your benefit is is not fixed forever. You're not stuck with the benefit that's offered you, and you don't have to draw Social Security as soon as possible. You can wait. And yes, your benefit can increase every year that year that you defer. In fact, I think it can increase with inflation this year. The government went ahead and increased Social Security, I think, by 5.6 percent. It can increase with inflation as well. One thing that we also like to see right now, I mean, interest rates are rock bottom right. So interest rates are really low. And especially with inflation picking up, we're starting to see interest rates climb.
Erick Arnett:
Interesting to me, about 60 days ago, you could get a 30 year mortgage at two and a quarter. It's all the way to three and a quarter now, so it's a sign that interest rates are starting to move up with inflation. The Fed will eventually have to raise rates and start tapering its its liquidity and money generation program. So when they do that, interest rates are going to increase. So we're not real excited about bonds. So we've always talked about big mistake that we think people are making right now is have a large portion of their portfolio and bonds. And so if you just get that traditional kind of passive mutual fund portfolio and you don't really know how much you have in bonds, it's a good time to figure that out. We like to generate consistent income for our retirees in the way that we help fill that retirement gap as we utilize fixed indexed annuities. And so we can also utilize those same indexed annuities to create income for life. So how does that sound generating income for life? Sounds pretty good to me, so generated consistent income for retirement. It can help fill that retirement gap. I'm talking about indexed annuities. It can help protect your hard earned assets. It's a great hedge against the market's here big part of diversification. Grow your money tax deferred. That's pretty important.
Erick Arnett:
You know any money that you have inside there, it's going to grow tax deferred. If you have a money sitting in a CD or a bond, you're paying tax on that income that it produces every year. So that's also eating into your return and you're not getting that compounding effect. So, so grow your money tax deferred, get market like gains without market risk. The great thing about these index annuities, it's kind of the best of both worlds. I call it a hybrid because you can still get the market like returns, but you don't have to take the risk that that's in the market. Your principle is 100 percent protected. So if the markets continue to go up great, you're going to do well. If the markets go down, you don't lose a dime. That's powerful. I think everybody needs to have a portion of that in their retirement plan. One hundred percent. And in the cool thing about it is not only are you eliminating market risk, you're also eliminating advisory fees. So think about this if you have a portfolio, let's just say it's a half a million dollar portfolio and you're 40 percent bonds in 60 percent equities, well, 40 percent of your portfolio is underperforming. It's probably losing money. But that advisory fee that you're paying is one percent of the total portfolio value. So one percent of five hundred thousand is five thousand dollars.
Erick Arnett:
So if you split that in half, you're actually paying twenty five hundred dollars a year in fees on a portion of your portfolio that is probably not doing well and is not going to do well going forward. So it's dead money. In fact, you're probably losing money on that portion of your portfolio. So our smart plan incorporates all kinds of asset classes, but as well as introducing that index annuity as a bond replacement tool. So, so important right now. Going forward, you want to avoid that 50 percent penalty from the IRS, then please don't make this mistake. Learn how to avoid the 50 percent in IRS tax penalties with proper required minimum distribution withdrawal planning. Once again, you can just visit us at, Take Point on Retirement and go ahead and set an appointment. Or you can call us at three five two six one six zero five one one to help avoid that penalty with the IRS. We need to do required minimum distribution planning. It may be too late for you to get over into that tax free bucket. It may be too late to get over into that Roth because you're up there in years. Well, then let's put together a plan that's going to at least keep up with your RMDs and maintain your principle. Ok? And I think that we can definitely do that for you.
Erick Arnett:
So so as we approach the end of our program today, Joie, it's time for that final countdown. So let's recap what you have missed out there, folks. And if you did miss our show today, then please, you can pick us up on any podcast app or podcast medium that you use and you can just put on, put in Take Point on Retirement and you'll be able to listen to this show. And many other shows, any time you want at your own leisure, but we did a market update today, we did the inflation demonstration, we talked about inflation. Most common misconceptions about retirement. We did this week in history. We talked about Social Security and all those misconceptions. We talked about replacing bonds with indexed annuities. And also, how can you plan for those required minimum distributions and avoid those penalties? And more importantly, create that tax efficient fee efficient and market efficient retirement plan that's going to live up to and weather all storms and also create and get you to those retirement goals and those retirement dreams. So once again, if you missed any of today's show, just visit us on Take Point on Retirement, where you can listen to the archive shows, or you can go ahead and podcast it anywhere you want. So thanks again for listening to Take Point on Retirement and J.W.. Wrap us up, man. Yeah. Real quick, though,
Producer:
Before we go just currently this past week, as a matter of fact, we saw the market take a big drop and we also saw crude oil prices going up. What can we? I mean, nobody has a crystal ball. Yeah, but what can you tell our retirement warriors? How can they plan for this?
Erick Arnett:
Yeah, so great question. We've been talking about it for a long time on this show is that, you know, all the way back in the summertime that we were going to see increased levels of volatility. And what we mean by that is day to day moves in the markets, day to day ups and downs in the markets, as opposed to just kind of a Hey, I, I turn on the screen or I open up my account and it's just green every day, you know, just see the thing going up. Well, we've seen some, some pullback, some some day to day downside, you know, and and what's causing that is just the unknowns. You know, we've got the recent Omnicom variant, right, this new variant that popped up. So you got to keep in mind that like any time someone tweets something or throw something on Facebook or somebody comes out on the media and tries to create some hype around something, it's going to get out there and it's going to affect things and and potentially create fear. And so initially, I think when this news broke about the Omnicom variant, that people were a little bit fearful and and they'll sell first and head for the hills before they get all the information in the data. What we're finding is that, hey, guess what? Covid's been around for a long time, we've been in the middle of this for over two years.
Erick Arnett:
Here's another variant that's coming along. We already knew that there's going to be a bunch of variants that are coming in the future. And it's not so bad and it's not so bleak. You know, the American variant, they're already saying that, yeah, it's more contagious, but it's it's a much weaker version of the virus and hopefully the virus just continues to weaken. But we're always going to have variants. And so you're going to have these little news stories that kind of shocked the market. And so we had the market kind of correct on Monday. But then again, it jumped back. Yeah, it's up today, big time, you know, so it reversed itself because what happens is you'll get a knee jerk reaction to news, but then the markets will refocus on what really matters. And that's the fundamentals. Where is our economy headed? What's out there that's really, truly affecting the economy and we still see all the underlying technicals and fundamentals. You know, we look at, you know, three hundred different data points. So all that stuff still is pointing to a strong recovery in a good solid economy. So the markets will focus on that and then start to push higher. So. But you're any given day you're going to have a mixed bag of news. Interest rates are going to increase that might affect the market. Inflation is going to be here to stay.
Erick Arnett:
That might affect the market. But then the market refocuses on what's really important long term. But most importantly, for our retirement warriors, if you have a well balanced, well, a tactical portfolio that strategically being monitored and managed that has indexed annuities in it has a little bit of equity in it, has some short term bonds and it has some real estate, some gold. We started making our portfolios and our plans much more defensive back in the summer, so we were getting ready for this volatility. Look, we've had 12 years of, you know, markets hitting new highs. It's not going to continue forever. We have to have a contraction or, you know, some type of slowdown at some point. But right now, we're not seeing like this big red warning sign that pops up and says, Oh, head for the hills. And that's not the case, because no matter what's happening out there at any given time, if you have, if you have that solid retirement plan in place, it'll weather all storms and you don't have to worry about it. Your head can hit the pillow at night and say, Hey, you know what? I'm already covered. I understand what's going on. I'm completely educated and I'm well balanced. I don't have all my money in one particular market. Yeah, if you have all your money in the stock market, then yeah, you're going to have a volatile portfolio and you're going to have some sleepless nights.
Erick Arnett:
That's why we certainly don't recommend that those that get to overweight into equities at the wrong time. They could get hurt. So that's why we talk about having that solid plan in place where you can weather all storms. And that's why, as volatility is starting to pick up now more than more than ever is the time to get in and reevaluate your plan and reconstruct your portfolio and look at, Hey, how am I going to weather this storm going forward? Because we probably will have a correction at some point, you know? There's no doubt about it. And so how are we going to preserve those hard earned dollars? It's not about what we make in the up year. It's about what we don't lose in the down years, right? Because you dig yourself a hole, it's much higher, harder to climb out of that hole, right? Yeah, it's easy to dig the hole and jump in the pit, but it's hard to climb out of it, right? You know, it's easy to go downstairs, right? It's harder to walk up the stairs. So we're about protecting that money, protecting that retirement plan, generating income, weathering all storms, and you're only going to be able to do that. If you're active, you're vigilant and you're working with a fiduciary that's strategically managing your portfolio on a daily basis. And that's why we
Producer:
Recommend and suggest Take Point Wealth management. There you go. Advice from Erick Arnett, Lead Advisor Retirement Planner would take point. Wealth management the show Take Point on Retirement. Check it out. Take point on retirement. Go online. Set that appointment now because as a retirement warrior, you are always prepared through Take Point Wealth Management. Once again, whatever storm may come, you're going to be prepared through Take Point Wealth Management. They've got the lead on your stress free retirement. Give them a call now. Three five two six one six five one one That's three five two six one six zero five one one. Set your appointment at Take Point on Retirement right up there in the upper right hand corner. That's all it takes, and you get that free once again. Financial analysis. No obligation, folks. But stress free retirement. That's what it's all about. We'll see you next week.
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