TPWM 6-19-21 FINAL.mp3: Audio automatically transcribed by Sonix

TPWM 6-19-21 FINAL.mp3: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
The following page 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 leading you into retirement. Listen, Saturday mornings for an hour of simple retirement advice from your friends at take point to wealth management. Saturday mornings seven thirty. This material is provided for informational purposes only and should not be construed as investment advice or an offer for solicitation to buy or sell securities. All data believed to be reliable but not guaranteed or responsible for reliance on this data. Well, first, good morning. Secondly, welcome to Saturday. And last but not least, welcome to Take Point on retirement, a show brought to you by Take Point Wealth Management, Fiduciary Services up and down the nature coast within our backyard, right here in our own listening area. That's right. You don't have to travel far to find the professionals because they're right here in our studios and right down the road. All you got to do is reach out and contact, take point wealth management for all your financial needs and so much more. Eric Arnet, lead advisor, retirement planner, of course, Randy Woodroffe, certified public accountant to members of that Take Point wealth management team here every Saturday, they fill us in on what's going on and to educate us this morning, Eric Arnet, Randy Woodroffe,

Speaker2:
A good morning.

Speaker3:
Good morning, everyone.

Speaker1:
We're about halfway through the year, aren't we? Are getting close. Our second quarter. Third quarter

Speaker2:
What? Yeah, hard to believe, but I guess time flies. Yeah, we're halfway through the year, which is unbelievable.

Speaker3:
Mm hmm. Time flies. It means you must be having fun, right. Yeah, yeah.

Speaker1:
Yeah it should be. It's not twenty twenty that's for sure. Yeah. That's behind us

Speaker2:
Hopelessly. They retirees are having fun. That's draw close to retirement or if you're in retirement you're at the right place because you're listening to this show. We've got a great show today. We're going to dig into some retirement planning areas to avoid and offer some tips to potentially help correct them. 95 percent of our job is not to beat up the public out there listening, but when we sit down with people is to correct mistakes, to try to avoid mistakes and hopefully to educate people so they can learn. We're going to get into some of those. I was on the way in this morning. I was I dropped a little bit of an outline and organize my thoughts and what I want to get across. I started thinking today is more than ever right now. I have so many concerns for our retirees out there in our listeners. There's so many different things that you may or may not be aware of that are potentially ready to hit in the next few years. And if you're in the beginning stages of retirement or you're close to retirement, you really can't afford to make any mistakes. We've shown people what some of our educational events that we offer and also when folks come in, we show them plain and simple on a chart. If you are close to retirement and in retirement and you suffer any type of negative downturns in your portfolio values in the first five years of retirement, it's extremely detrimental. And I believe that the pressures are building to where we're going to see some potential corrections here coming in the near future.

Speaker2:
I don't know if it's going to be this year, but potentially next year. But see, once again, kind of had some good returns in the markets due to all of the stimulus that the government had artificially pumped into the economy. So we see that to try to get the economy going. And obviously, when the economy was at a complete standstill and we're now slowly gearing up and it's slowly getting back online post covid, people get excited and say, oh, well, you know, the economy's going to boom. That may be correct, but there's also a lot of things out there that are looming, like inflation, potential increases in interest rates, overvaluation of stocks, overvaluations of bonds. We've had basically twelve years since 2008 where things have just kind of gone straight up. And now I'm seeing we've kind of peaked here in the markets just topping. And it's a little it's volatile here. And we're seeing more than ever a rotation out of certain sectors, certain stocks, stocks, certain asset classes. But when a rising tide floats all ships, it's kind of easy. You know, you can just have any fund in your portfolio, any mutual fund, say, a growth fund or any stock like a technology stock like Apple or something like that. When everything's going up, it's easy. But we're in a pattern now where we're seeing a lot of sector rotation, we're seeing a lot of asset class rotation.

Speaker2:
We show people this rainbow chart of colors that shows all the different asset classes out there and how they perform differently in any given economic cycle. And you know, what we're seeing already, which really and I predicted a year ago, was that we're seeing a roll in growth. So those those very high growth stocks are starting to roll over where value is out per. Forming international stocks are starting to outperform large cap growth, domestic stocks. Do you have small caps, you have midcaps, you have international in your portfolio. You know, how is they real estate? Do you have gold? You have commodity, you know? So how is your portfolio positioned now? You know, how it was positioned over the last 10 years is entirely different as to how it should be positioned now for the next 10 years. Because the next 10 years, I promise you folks will be nothing like the last 10 years. We have a lot of pressures on their socio economic pressures, geopolitical pressures, inflation, all this printing of money. So there's a lot of concerns there. We've talked about it. We're quite interesting. I looked up today, this morning on the way in the aggregate, bond index is down like three point five, six percent somewhere in there, close to four percent. What did we say over a year ago? Get out of bonds and bonds. So we tend to see trends that are coming. And if you're just holding a portfolio static portfolio that's not actively being managed, where we were making shifts and also trying to protect the downside and limit market downside, then really now's the time to get a plan more than ever kind of gotten lucky.

Speaker2:
Rising tide has kind of floated all ships here over the last ten years. We've kind of got lucky were covered. The markets bounced back. But going forward now, it's it's a very different story. It's a very different situation. So I really want to encourage people to pick up the phone, go to our Web site. You can click up there and just set an appointment with me. There's a little tab says set an appointment. You'll go right to my calendar and let's get on the phone for fifteen minutes and just chat. That's all it has to be. You don't have to fill out any lengthy forms. You don't have to come to my office. I just simply want to chat with you for about fifteen minutes and you can get on my calendar doing it that way and just kind of discuss and get a general idea. Usually in about five minutes I can get an idea what the potential risks may be facing this person. Are these people on the phone? So I'm kind of encouraging people to do that here. Just get on get on my Web site, set up an appointment and we'll talk about all this stuff because it's really about positioning your retirement plan and having a plan more than ever. I think today it's so, so important.

Speaker3:
You know, one of the things that we've talked about it in the office and probably on this show, too, is when people are working for a company and they're participating and therefore when they plan, they have options, but they're very limited in what they can invest in. So basically, there's an H.R. director that probably a four linked trustee and you have some options for mutual funds. People think that's the only way to invest. You stick your money in mutual funds. They've been doing that for the last 20, 30, 40 plus years. As you roll out of that environment to retirement, you don't feel like that's your only option is to put your money, mutual funds that any real direction or advisement. And we've talked on this show numerous times about how there's all kinds of hidden fees inside mutual funds and don't have a lot of control on how those mutual funds are managed. So we talked about how you can sit down with someone and and dissect those prospectuses and different things and take a look at the fees that are hidden inside. There's mutual funds. And as we've seen time and time again, the money that you're going to be paying us to manage your portfolio effectively, tactically, and managing your portfolio will be similar, maybe even less than what you're paying inside. There's mutual funds that you can't really see.

Speaker2:
Yeah, absolutely. In retirement planning, it's not it's not just about your investments, but that's the most that's one of the most important parts. We're also going to help you with Social Security timing. When do you take Social Security? Does your spouse take it? Do you take it? Do you both take it at the same time? How is that going to affect you tax wise? How are we planning for higher taxes in the future? We're most definitely going to have higher taxes in the future. So how are you planning for that? One of the silent killers that we always talk about on the show, fees and taxes, taxes, risk. Here's a big one risk. Do you truly know if you're sitting out there listening? Do you truly know what the risk of your plan is or your portfolio? I'm going to venture to say you probably don't. So we can show you and make sure that the portfolio and the risks are properly aligned with what your financial speed needs to be to get to and through retirement. I have a book that is available that I've written called What is Your Financial Speed? Really simple, quick, easy read. But it what it breaks down is the numbers. You know, it's like you have to have a plan, you have to know what your financial speed is. What kind of returns do I need to be getting, what's the taxes on those returns going to be? How is my portfolio positioned and is it in line with my risk tolerance and or is it taken just entirely too much risk to get the returns that you're getting? We look at the average returns, the projected average returns, and then the risk that you're taking to get those.

Speaker2:
So our plan is dialing that risk way down, dialing the fees way down, and then also making it tax efficient. Those are the three things that you have to focus on. We've got to get you in so we can get going on that stuff. Timing, planning is no easy task. So generally the right plan is about timing, opportunity and not following the myths that can destroy your retirement. So let's take a look at some of them and how to avoid them. What do you think? There's there's a lot of good ideas of having. No retirement plan. That's what we talk about all the time, if you have no plan, not starting the retirement planning process is one of the biggest retirement mistakes you can make. You should determine what you want your future to look like, as well as how much money can realistically set aside, then find a plan that will get you there. So that's what I'm talking about, is we need to find what is your financial speed. And then even once you're once you're an ongoing client, we have to review that plan. We have to review that financial speed. We have to review that mix of investments on a semi-annual on annual basis. What we redo your plan every year to make sure your plan is still in line and your goals are properly aligned with if the current plan or portfolio is actually working to keep you in line with your goals

Speaker3:
As goals change, plans change, need change. So it's good to have a plan and and to stay nimble so you can pivot and move in a different direction and and be responsive to what's going on in the marketplace. And I on this show a couple of times, and you probably seen it as well, that, you know, people spend more time every year planning their weekly, but, you know, they're their their vacation. They're going to spend a week and then they actually plan spending their retirement or spend years and years. It's it's very important. Hopefully everyone out there listening gets to spend 15, 20, 30 years in retirement. And to do that, there's a long time. Right. Again, you got to have a good plan and you got to start planning early.

Speaker2:
Right. And my my feeling is, is that most people think, oh, my plan is working, you know, because everything's been good. The markets have been going up. So, of course, your plan is working. But I venture to say if you take a closer look at your statements and really dive into the returns and side of your portfolio this year, you're going to see the bond portion of your portfolio. Bonds that are in your mutual funds are underperforming. You're going to see that technology growth stocks are underperforming. Value stocks international is outperforming right now. So are you making shifts and are you capable of making those shifts? One one big mistake that we see all the time is not knowing how much you need to retire. Right. If you're nearing retirement, you've got to take a look at your current salary, add up your expenses, including medical costs and retirement, and meet with a financial advisor to calculate how much you'll need in order to retire and live comfortably so often.

Speaker3:
I think a lot of times people are hesitant to actually do that exercise of what they actually have currently in terms of assets and what they're going to need. Because I think deep down, they know they don't have enough right and they don't want to face that reality. But if you don't face that reality, you can't solve the problem. Right. You got it. You got to have an all that honest moment with yourself and get this. And I know I don't have enough and I may not like it, but I have to be honest with myself. And then once you're honest with yourself, then you can really begin to make some changes.

Speaker2:
If this inflation continues, this really mass inflation that would begin and the inflationary numbers have been a little bit shocking here. I mean, on the way in this morning, it cost me one hundred fourteen dollars to fill up my pickup truck. If you're not planning for inflation and rising costs, Social Security isn't going to get it done, folks. Just planning for and having Social Security getting control of your expenses. How many people have a budget out there? Do you have a budget? Have you sat down with your loved one or your spouse or your friend and actually put together a budget that's having the discipline to take some time out of your weekend to sit down for 15, 20, 30 minutes, whatever, and put out a budget? That's the biggest thing that people have problem with problems with as their budgeting. So we've got to get that under control. There you

Speaker1:
Go. Good news coming from some good friends that take point well to management. That's the voice of Eric Arnet, lead advisor, retirement planner, and, of course, Randy Woodruff in the studio with us. Two members of that, a well-rounded team of professionals standing by to help you with some retirement planning errors to avoid and tips to potentially help correct them. We're talking about that today. By the way, now's a good time to tell you to call take point wealth management three five to six one six zero five one one. Take that three. Take point. A blueprint on retirement. Those take point. Retirement warriors are looking at that stress free retirement. That's what it's all about. We'll be back, folks, after this. Financial management service for you take point well, dotcom between wealth management is an investment advisor, representative of Retirement Wealth Advisors Inc. and accredited adviser. And welcome back. You are listening to take point on a retirement brought to you from my friends. You just heard from their take point wealth management on the Nature Coast within our listening area, right here in your own backyard, folks, you don't have to travel far. Matter of fact, they'll come see you. All you have to do is reach out to them three five to six one six zero five one one contact point. Wealth management, a stress free retirement. Your plan can be in place with free advice, consultation, financial analysis, evaluation. Give them the test and see what they can do for you with that free will to take point blueprint on retirement. It's a fifteen hundred dollar value being offered to our listeners right now. If you contact, take point wealth management once again, three five to six one six zero five one one. It's all yours through take point wealth management now lead advisor, retirement plan or Garnette and of course, certified public accountant and so much more. Randy Woodruff, two members of that team take point,

Speaker2:
Jumping right back in here with some of the retirement myths, myths and mistakes that we see people making and kind of overlooking. We were talking about not knowing how much you need to retire. That's pretty critical. Most importantly is when we do our retirement planning for you, we projected out to age 90 and we look at all the medical costs that you're going to incur. So imagine if something cost eight, ten thousand dollars a month today. What's that going to cost twenty years from now? So if you're 60, 65, you're going to live to be 80, 85, 90. What is long term care going to cost? What our medical costs, premiums are going to be. So one of the things that I think is drastically overlooked is long term care. You've got to have if you can afford it, folks, and we'll help you do the analysis, we'll be able to find some income for you. We can put together an income plan and create some more income for you so you can afford it. If you can afford long term care, you've got to have that in your in your retirement plan. It's so, so critical. We see this as a, you know, being overlooked all the time. So let us run you some long term care quotes, educate on long term care and run it through. I had a guy called me up. I was like, I got to get long term care. I ran all the quotes for him. He's like, yep, going to come in, sign the paperwork. Never did. Never did, never. It's like people just get too busy and they keep kicking the can down the road. Just make us make a list, prioritize and get it knocked out. You've got to get this stuff knocked out while you're younger because the rates and premiums are lower. So if you wait till you're 70 or 80 to think about it, folks, it's too late. That's a big, big concern for me.

Speaker3:
Let me ask you two on long term care insurance, if you say let's say somebody waited until they're 75 or 80 and now they've got some significant known health conditions, do the insurance companies I guess it's probably rated more so when you go in apply. Let's say you're 75 and you have no really known health issues. Is it more expensive if you're seventy five and you have quite a few known health issues for long term care insurance, just kind of like life insurances or health insurance?

Speaker2:
Yeah, absolutely.

Speaker3:
Ok, so you get all the more reason to as you're younger and you don't have any or you have very few known health issues, now's the time to get it.

Speaker2:
Yeah, yeah. And we can we can build long term care hybrid strategies. So let's say you don't use the long term care. Let's say you're one of the ones that is fortunate. The fortunate are blessed. You're one of those ones that doesn't need long term care and you're one of the best could be me passes in your sleep peacefully. Hey, man, you know, dreaming about sugarplums and whatever, that's the way to go. Right. But if if you do end up in long term care, not a great experience, but it's a very it's going to be extremely costly experience. And the more money you have going towards that, the more the more comfortable it's going to be for you. So.

Speaker1:
Well, what would you say to those that would be in a position like that and say, well, my pension will cover that or my Social Security will cover that or I'll sell my home and my assets and.

Speaker2:
Well, and that's a great question, because a lot of people just do assume that. Right. You know, J.W., but you can't assume that unless you're doing the proper calculations, factoring in inflation, factoring in, you know, rises, potential kolo arises in your in your guaranteed incomes, factoring in returns on your portfolio, all those types of things. We even we even put some market declines in your portfolio throughout our process to see and stress tested to see how it would hold up in bad markets. We try to cover all the bases and prepare for everything. But that's a great question because most people just assume, hey, it's the year 2021. I got a nice little pension coming in. I'm going to start my Social Security. I got my bills to where I know I can cover all that. But that's what's covering it today. That's not what's going to cover it. Fifteen years from now, 10 years from now. And that's what we've got to try to get people to look at, is that crystal ball on that future and try to predict into the future. Honestly, something that I personally think about every day is I think about it all the time is how am I going to leave my wife, my spouse? I've got to make sure she has enough income.

Speaker2:
I got to make sure that her long term care is covered, that I have some life insurance in place for her, that she's going to have enough guaranteed income. It keeps me up and I don't want to make sure that the bases are covered and so that that takes constant planning, constant massaging and staying in the game. It's tough. It's we had a gentleman in the other day and we started having these conversations about beneficiary designations and setting up your estate plan and how are you going to pass your assets to your to your beneficiaries? And this gentleman was up there in age. I'm not going to say his age and giveaways, identity or anything, but, you know, he was up there and it's this this is stuff that should have been thought about a long time ago, because if he does pass with the assets that he has going to create chaos and his family just waiting and kicking the can down the road is not the answer because it's just going to create a big deduction in your state with attorneys fees, because what has to happen is your beneficiary is your kids, whatever. They have to hire guys like us and attorneys to fix everything after you're gone. And that's costly to your state.

Speaker2:
Taxation can be very costly. So if we do some proper planning, we can avoid taxation even to your beneficiaries, you know, so there's a lot to think about. But, you know, having, you know, people a lot of people have their incorrect beneficiary designation. So in the event of your passing, you don't want to have a you don't want to leave a financial mess behind for your family. So avoid this problem by making sure your retirement plan beneficiaries and designations listed in your will are in agreement. That way, your loved ones won't have to struggle and fight over dividing up your assets. Right. So here's one that I hear all the time. I'm well, I'm never going to retire. So believing you'll never retire, you might love your career and be unable to imagine life without a nine to five gig, but the odds are that your ability to keep pace in the workplace will wane eventually. So don't skip on saving because you think, oh, I'm just going to work until I'm 90 and one of those people who will never retire. So we hear that all the time. I'm not going any time is going to keep on working. Well, how do you know that? You know, so many different things can

Speaker3:
Happen and you may not be desirable in the workforce. And there certainly

Speaker2:
Are. You might have a health issue. That's something I think about. My father, he was I'm just going to keep working, working, working. And then he finally decided to retire. And when he did retire, he got cancer and ended up passing away, didn't get to enjoy the retirement. We had a couple. And not too long ago, about a week or so ago, a young couple and I applauded them. It was kind of cool because they they were able to recognize, hey, we need some balance. It's time to retire while we're young and we can and we can enjoy life. We know it's not optimal and we could probably stay and make more money and put more money away. But they said to me this was refreshing. Money is not important to us anymore. It's quality of life and our health and enjoying retirement while we're at the age that we can. So really think about that for a minute. Is is the money really worth your health? How much is your health worth to you? So I know that some of us have a hard time picturing what we would do if we didn't get up and go to work every day. Randi, what would you do if you didn't have to work every day?

Speaker1:
We had we had like a paradigm shift back in September 11th of 2001 like that. Yeah. And then just recently last year, a paradigm shift where people were that they felt the same way. Yeah, I was thinking the same thing. Yeah. Yeah.

Speaker3:
Great point. You mentioned about that during those retirement years of expression and JJ was good with expressions or quotes. But I think it's it's not the years in your life. It's the life in your years ago, you know. So yeah. Yeah. So yeah. Yeah. So as you get older you want to make sure you get health, your wealth so you can enjoy those retirement years and really have a great time.

Speaker1:
Well they don't call it the golden years for nothing. You want to live to see our platinum years.

Speaker3:
Yeah. Yeah, right.

Speaker2:
Absolutely. Another another mistake that we see quite often is not taking your employer's 401k match. Mm hmm. So if your employer offers to match your four one K contributions to a certain percentage and you don't opt in, you're leaving free money on the table. So make sure you're contributing at least the amount your employer matches each month. Right. Uh, I've seen that quite a bit in some reviews with folks that come in. So I'm relying only on Social Security benefits so Social Security can provide some financial security. But you shouldn't rely only on your Social Security checks to fund your retirement. You know, Social Security benefits represent about 39 percent of elderly people's income, according to the Social Security Administration. So trying to retire only on Social Security has a lot of hidden costs and risks you got to plan for. And who knows, like, you know, they may cut Social Security benefits. Social Security is in trouble.

Speaker3:
I think we've all heard on the radio and on TV and reading in the news that, yes, supposedly Social Security is unfunded and is funded with IOUs from the federal government. So if that's the case, you know, it would you would you want to give your money to a company that they didn't have, it wasn't adequately capitalized, you know, so you're relying upon a retirement system that, from what we're being told, is not adequately adequately capitalized either. And those IOUs have to be paid back. And we talked on this show many, many times about raising taxes. How are they going to pay back those IOUs? Right. And raise taxes?

Speaker2:
Yep. Yeah, most definitely. One of the things that we see sometimes, too, is folks retiring too early. And this might be one that's happening now because of the covid effect. You know, it's interesting. I saw a statistic that just came out from some of the labor numbers. We have the highest rate right now that we've had I don't think was ever in a long time. But people are quitting their jobs, retiring early or, you know, just people in general just quitting jobs. So we have the highest quit rate right now, which is interesting. Yet we have high unemployment, but we also have what their labor statistics are telling us. We have a job for every single person out there as well. So some really weird dynamics going on. One of the reasons to that is that people are leaving their jobs because the labor market is much more competitive and better for them. So they feel confident that they can go out and find another job. But in May, we had the highest record of people quitting their jobs. So I was kind of stunned by that. Yeah, interesting stuff. Retiring too early has two main disadvantages. Obviously, the first one is the early to retire. The last time you're going to have to save for retirement, right? Yeah. The second disadvantage is has to do with your Social Security payouts, although you can retire as early as 62 and start receiving your Social Security benefits, your age dictates the size of your payout.

Speaker2:
For example, if your full retirement age is 67 and you start your retirement benefits at 62, prepare for your monthly benefit, an amount to be reduced by 30 percent. So that's a lot of money. That's money that you don't get back. Folks, we always encourage people to try to keep that Social Security in the lockbox until you get to at least 67 because you're going to get the maximum benefit. And then if you even defer passed 67 all the way to age 70, you're going to get eight percent increase every year from there as well. So don't take it if you don't need it, because it's going to create a nice little increase for you in the future. Mm hmm. One more. Just one of the ones that I really love to harp on and I had to talk about is putting your money in variable annuities. We're dead set against this. Variable annuities can offer some benefits. According to the U.S. Securities and Exchange Commission, for example, these annuities make it possible to receive regular payout payments throughout the rest of your life. However, in comparison to other annuity options, variable annuities can cost 50 percent to 100 percent more in fees and surrender charges, according to the financial mentor. Further gains on these accounts are taxed as normal income, not as lower capital gains rates upon withdrawal. So very inefficient there. You know, stay away from those variable annuities.

Speaker3:
We've heard people talk about annuities as we talk to them about them. And they're like, I've heard bad things about annuities. It's very important that you understand, folks, there's many different kinds of annuities. And the ones you've probably heard negative things about are variable annuities. So that's

Speaker2:
Right. Yeah. There's so many different ones out there. And that's why I set an appointment will educate you. We'll give you the true facts

Speaker3:
Of the good book on annuities.

Speaker2:
Do we do annuity 360?

Speaker1:
J.w. got it. Right. Now, if you call Take Point Wealth Management, this is a show brought to you by Take Point Wealth Management on the Nature Coast. It's take point on retirement and that's all about your retirement. They want to take point and take the lead on that stress free retirement for you. It's taken care of through Take Point Wealth Management. That Annuity 360 book can be yours. Just for the asking, just contact point wealth management three five to six one six zero five one one. You can go online and plug in, take point wealth and dotcom or just take point wealth. It'll lead you to Eric Arnet, lead advisor, retirement planner, and of course, Randi, which have both in the studio with us once again this morning, every Saturday at this time and only on this station. Folks, we'll be back in just a bit. By the way, if you have a question for our professionals, you can send that question to info info at take point on retirement dotcom. And we'll address those questions on future shows, info, info at take point on retirement dotcom. In the meantime, fifteen hundred dollar value is yours for our listeners today. That's that take point on retirement blueprint. Fifteen hundred dollar value your risk free if you call take point wealth management three five to six one six zero five one one. We'll be back after this. Do you think taxes are going up in the future? If so, you should learn how to build tax free income during your retirement. Now is the best time to start with a sound tax advantaged financial plan with take point wealth adviser for the Nature Coast visit take point wealth dotcom to schedule your free financial consultation with Eric Arnet, host of the local Take Point on retirement show Saturday Morning 730 Visit ten point wealth dotcom.

Speaker1:
Bitcoin Wealth Management is an investment advisor, representative of Retirement Wealth Advisors Inc. and says he registered advisor. Let's take a pause for station identification. You're listening to 1999 RFM, WACs, Jabe, Homosassa 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 to wealth management. Saturday mornings, seven thirty. What do you know, Joe? Well, I'll tell you, you're in tune to that program called Take Point on a Retirement. That's right. Heard every Saturday at this time and only on this station. I'm your host, along with, of course, the Karnad lead advisor, retirement planner, the sponsor of this show called Take Point on retirement. It is take point wealth management. Check them out today, plug them into the search engine online. It'll bring you to Eric Arnet and the crew as take point wealth management on the Nature Coast, in our own backyard, within our listening area. Don't miss your chance to ask for all the free information that they want to pass on to you to educate you on your stress free retirement, including a book by Eric Arnet. He mentioned it earlier. What is your financial speed in that Annuity 360 book? It's all yours for the asking contact take point wealth management at three five to six one six zero five one one. And don't forget to take advantage of that 1500 dollar retirement. A blueprint from point wealth management specifically for our listeners. If you reach out that take point wealth management three five to six one six zero five one one. Let's continue.

Speaker2:
Hey, super simple to just go to take point wealth dotcom. You can you can do it right from your phone if you're. Well, I was going to say if you're driving down the road. But please don't do that. Please pull over. This is a public safety message. Please pull over and then go to my website on your phone and you'll see in the upper right hand corner you can just click, set an appointment and you can pick your time right there on the calendar. I'll get that notification and we will be ready to chat. So I look forward to chat with you all for about fifteen, twenty minutes and just figure out what it is that's most important to you and your hard earned money by getting back into some of our concerns when we see retirement planning and some of the things that are very concerning. We talked about medical expenses. So, you know, not planning for those medical expenses is a big mistake. According to Fidelity, a 65 year old opposite gender couple retiring this year. And twenty twenty one can expect to spend three hundred thousand dollars in health care and medical expenses throughout retirement for single retirees. The twenty twenty one estimate is one hundred and fifty seven thousand for women and one hundred and forty thousand dollars for men. Folks, those are real numbers. That's not stuff that we just make up to scare you. Those are real numbers and in my opinion, could be highly underestimated. This year's estimate marks a new milestone high up 30 percent from ten years ago when the amount was 230000, but just one point seven percent from twenty twenty of two hundred ninety five thousand. As health care inflation has remained relatively flat over the last few

Speaker1:
Years, though, that makes it even more important to get that long term health care you were talking

Speaker2:
About. Yeah, this has got to be part of your portfolio if you can afford it. We've got to get that in there and cover those costs and those risks because that's just going to allow you to maintain your lifestyle. But at the same time, it's going to protect your nest egg and allow you to have a legacy and transfer more assets to to your loved ones are your beneficiaries. So just a simple, simple process that we can put in place for you to cover those costs. That's huge.

Speaker1:
And even with that, there's ways to attack those silent killers, right? Mm hmm.

Speaker2:
Yeah, absolutely. The cool thing about some of these products in the long term care, if you don't use them to act as a life insurance policy, there's also some that you can draw off if you don't ever use long term care, we could pull income out tax free. So let us create something for you. It's pretty cool nowadays as independent advisors and we have the ability to shop all different companies out there and all different products we can tailor. So we don't just have to we don't just use one long term care policy for every client that comes in the door. We can tailor and customize these now and design them. They all come with a chassis and then we kind of add our bells and whistles to it to make it meet your needs the best. They're pretty cool and we can get creative with them.

Speaker3:
And we've discovered that I had because you've been even doing this longer than I have. But it's been interesting to sit and some of the meetings with you and and see how when I'll say policy, let's say it be a life insurance policy. You can have other types of functions you talk about a little bit in terms of it maybe helping cover long term care or things people may not be used to where you think you have to have a long term care policy. You have to have a insurance policy and a disability policy in this policy. You know, they're customizing these policies now that that one policy can handle potentially several risks.

Speaker2:
Yeah, absolutely. I mean, I've seen where there are some products out there that we can custom design that cover three bases. So you're getting so much more value and bang for your buck. So, for instance, there's there's. Life insurance policies that we can put in place that have a long term care rider, so they provide the long term care, should you need it? We also have policies that we can create that might just be more centered around increasing the death benefit. Maybe you just want to maximize the death benefit and the amount of money that you want to leave to your kids, but still have the ability to tap into that if you need it for long term care in the future. So a lot of different ways we can custom design these. And and they've gotten so much more creative. You know, back in the day 10, 15 years ago, long term care policy was just that. It was, you know, kind of a term policy. You paid into it. If you didn't use the money, you lose it, you know, and it would give you a set defined benefit and they would also increase your premiums. Yeah. So if we can get growth inside the product because we tie it to an index that could also cover future premiums where your premiums could potentially even go down in the future. So we've got to get those bases covered. One of the things I think is really important for couples, or even if you're just an individual out there, getting ready to tackle retirement on your own is make sure you have realistic expectations for retirement.

Speaker2:
Often what we see as couples that are on completely different pages and it's kind of like interesting that they're sitting in front of us and, you know, been married 30, 40 years, 60 years on. Like you guys have never talked about this before. You know, I find because I I'm looking forward to retirement, I think retirement exciting. And, you know, my spouse and I talk about it all the time, weekly, probably like and why are we on track and are we doing the right things to set ourselves up for the retirement that we want? So you got to consider the true cost of retirement and be honest about the following. You know, what kind of lifestyle do you want? Do you have travel plans? Do you have business goals, whether you're planning on helping your children or grandchildren with expenses or not? So draft a retirement budget that's realistic and assess whether you need to make sacrifices now to achieve your future financial goals. So the sooner the better. And also, if you're sitting there like all this stuff he's talking about, I'm already 65, 70 years too late for me. No, we had a gentleman in our office just who was 80 years old. So you still can make some changes that are impactful to you and your family 100 percent.

Speaker1:
And now you always mention couples coming in together. Is there any instance or certain situations where maybe they should be seen separately?

Speaker2:
No, we really like the couples to come in together. What concerns me more is one just one shows up, right? I got you. You know, that means that traditionally it it could be the man or the woman in the relationship. Traditionally, somebody has been kind of in charge of the finances and the other person just doesn't want to deal with it. That's the wrong answer, because all of a sudden, if you lose that loved one that's been in charge of the finances, I'm working with the lady right now and I've worked. And trust me, I'm not being sexist here by any means. I've seen the opposite where the guy just goes to work and then the wife handles all the finances. But whoever that is, you know, in your family, you've got to come together and start kind of doing it together. Don't get into arguments because we tend to argue over finances and and we all think about money differently. Like what I think about money and how it affects me emotionally is entirely different than my spouse. And I recognize that we're a little bit different. So we have compromises and we talk about and it works out great. Compromise is a great thing. And what you might want to do in your retirement and spend is going to be completely different than what I want to do. So but you got to get talking about it. You got to plan out and kind of picture it. What does it look like in your retirement?

Speaker1:
So not only financial advisors, but counselors?

Speaker2:
Absolutely. Absolutely.

Speaker3:
So sometimes it becomes that.

Speaker1:
Well, the reason I ask is that sometimes if a couple is finally I didn't know it was based on taxes or not in filing jointly, you're filing separately or whatever. But as a married couple, I agree with you being married myself. Yeah, I agree with you 100 percent.

Speaker2:
One of the things we see J.W. all the time is one of the spouses just wants to continue to work and that's fine. But there's a planning involved there. If you're going to have one spouse that's going to continue to work, then there's some special planning there. You know, there are some things you need to make sure you're ready for your you're near retirement, but maybe your spouse isn't. So what do we have to do to make sure the transition is smooth and we don't run short of all that important income? So what can we do, you know, make a new budget? So back to the old budget thing, you'll need to make a new budget based on one remaining salary in any income from retirement benefits. Some expenses will change. Obviously, some will go down, but realistically, some probably will go up. So your expenses might change depending on what the retired spouse plans to do. Have a game plan. Listing your retirement goals can give you an idea of how you will spend your time and help avoid boredom. Consider the impact on your relationship. Roles and duties could change right when one spouse retires. The working spouse may come home after a hard day, not expecting to cook and clean, even if that was their role previously, right. We sometimes have that turmoil in my household, but you've got to be on the same page. You know,

Speaker3:
I've heard probably all heard funny stories where one spouse retires and maybe they've been in a position at work where they are overseeing a lot of employees or whatever else they come home. And all of a sudden they they haven't really been active in the household for 30 or 40 years, all of a sudden come home and suddenly want to revamp everything. And it can cost them a lot of friction,

Speaker1:
Almost like empty nest syndrome to

Speaker2:
Leave the house and all. I'd say 20, 30 percent of the people we work with, they want to retire. We put together a nice retirement plan and they're off into their retirement years. And about one or two years into it, they come back to me like Eric. I got to go back to work. I got to go back to work. So, yeah, being able to still enjoy your life, think about it. If you're a workaholic or spouse's workaholic and then all of a sudden he just kind of met on the weekends. Now you have to spend every day together sitting around the house. That's a whole different ballgame. Right. So you're going to have to get to know your spouse all over again in many different

Speaker1:
Ways and fail to plan on that. Or you're going to

Speaker2:
Plan to fail. Exactly. One hundred percent personal routines will also need to be adjusted. The retired spouse could become a night owl, staying up late to watch movies which could, you know, disrupt the working spouse who has to get up early to go to work. Unemployed spouse might have to relax in the evenings after working all day while the retired spouse slept in and is eager to go out and socialize. Right. So this sounds like my life right now, so know it's tough to be on the same page. So it's very important. But got to have a plan for Social Security folks. You know, married couples should coordinate when they sign up for Social Security to maximize their benefit as a couple. So benefit payments are reduced if you enroll in Social Security in your early 60s. For those who wait beyond 66 and 67, benefits increase every year until your age 70. So what about leaving that larger payment for your spouse if something should happen to you because one of your Social Security is going to go away. And so let's try to plan to to maximize that as a couple. And then, of course, don't forget your health insurance. Employer health insurance is a major reason to keep working until age 65. When one spouse continues and work, both spouses might be eligible for employer health insurance once you turn 65.

Speaker2:
Make sure you take care to sign up for Medicare on time, though, because we've talked about that before. You've got to sign up for Medicare at age 65, whether you're working or not or there's penalties. There absolutely need to reduce the risk in your portfolio. So the working spouse might be continuing to save for retirement, but it's also important to protect the money you have already accumulated retirees. I see this all the time, very often shift a portion of the retirement savings to more conservative investments that are less likely to lose money and sometimes shifting and becoming too conservative. You're not going to reach that financial speed that we talked about. So we'll dial it in and find out exactly do you need a five percent return? You need a four percent return? Do you need a three percent? Six percent? What percent return do you need to truly reach your goals over time? And then what amount of risk are we taking to get there? We have to measure the risk and really, truly understand the risk so we can get that number that you need with the least amount of risk possible. So that's super, super important.

Speaker1:
And you will factor that up to age 95 when you do that blueprint on retirement years for the asking a fifteen hundred dollar value by contacting take point wealth management there in our studios each and every Saturday at this time only on this station. Their phone number once again, three five to six one six zero five one one take point wealth dotcom online. Just plug it in the search engine. Take point wealth. It'll lead you to Eric Arnet, lead advisor, retirement planner in the crew, including Randy Woodruff, certified public accountant in the studios with us each every week as well. You just hear e-services right here in our own backyard. Folks will be back after this. There's all this sound familiar or maybe confusing portfolio risk management, money management, investment, retirement insurance, asset protection analysis, I trust. Look, it's not a I do it. I did slow down, take a breath. Relax. Take point. Is here for you, J.W.. Here, take it from me. I take it to take point. Wealth management, let lead advisor retirement planner Eric Arnet take point on your stress free retirement. With so many services at their fingertips and a well rounded team of professionals take point. Wealth management is on a mission. To take point on your retirement, take advice from someone with your best interests at heart. Take the risk free financial analysis. Do it. I did call them today three five to six one six zero five one one take point wealth dotcom.

Speaker1:
Don't forget to ask for your stress free retirement book. Tell them J.W. said something. Bitcoin Wealth Management is an investment advisor, representative of Retirement Wealth Advisors Incorporated and registered advisor. Hey, I know that guy. Yeah, that's me. And of course I know these guys as well. Eric Arnett and Randy Woodruff would take point. Wealth management, the stress free retirement, the good looking one. If you contact Point Wealth Management, three five to six one six zero five a one one and request that free blueprint on retirement. That's right. Consultation, analysis, evaluations. It's all through. Take point in there, right here on the Nature Coast, folks. So don't miss your opportunity to take advantage of that. Fifteen hundred dollar value just for our listeners, three five to six one six zero five one one is the number to call or check them out online. Take point twelve dotcom. They got a simple form you can fill out on their website and they'll get back to you. Or, of course, you've got to reach out to them first. Well, when we've been talking about preparing for one spouse to retire while the other is still working in some of the things you need to do, make sure you're ready, including one that I brought up earlier, a question about if one spouse that, you know, is filing a couple has got to be married, filing joint returns. Arnett and Randy woodrose are going to address that with a Roth conversion or spousal IRA.

Speaker2:
Yeah. So one of the things that we love, love, love and it's very underutilized tool, but with some recent changes in law and tax laws and even retirement account laws, this is a big topic right now and a great opportunity for folks out there to do this planning. We talk about it all the time on our show. We talk about it all the time in our educational events. But consider a Roth conversion or a spousal IRA. So if if a couple falls into a lower tax bracket because of the loss of one income, it might be worth it to convert some of your traditional for one care IRA savings to that Roth account that we've been talking about. The tax on the conversion, of course, is charged at your new lower tax rate, and you won't have to pay taxes on future growth in the Roth account. And of course, if one spouse is still working, he or she can make an IRA contribution for the non-working spouse and a spousal IRA. So a lot of people don't know that. I'll repeat that. So if one spouse is working and the other isn't, you can still make a non-working spouse contribution to their IRA. So that's that's huge. And that's important. You can defer paying income tax on up to five thousand five hundred dollars and the spousal IRA or sixty five hundred for a couple of 50 or older.

Speaker2:
The rules, the couple must be married, file a joint return and have earned income on at least the amount being contributed. The other cool thing that gets overlooked and why we like the Roth conversion is because of the change in laws is the ability to also pass that money tax free to heirs and beneficiaries. Also the the control it gives back to the client and the retiree? Because once when you're seventy two, you're going to be required. The government, the IRS is going to force you to start taking money out of your IRA and and be taxed. But if that money, the money that's in a Roth, you do not have to take it out so you can just leave it in there and continue to let it grow and take it when you feel like taking it. And also when you do take it out, it's going to be tax free. So this is, I think, one of the most important tools in the tool chest that just isn't being used or utilized. And in fact, sometimes we see it's quite often that we see based on our projections and when we when we work with our tax projection, our software, that we find that there might even be an amount that you can take out of your IRA and move it to a Roth that won't even be taxed.

Speaker3:
Exactly. Yeah.

Speaker2:
Randy does his magic there. And based on deductions and whatever marginal tax bracket you're in, there could be actually a portion of money that you're missing out on rolling over now. Whether you're 60, 65, 70, I don't care what your age is, you know, you could there could be a portion of mine that you can roll over right now into a Roth and convert it and not have to pay any tax on it. So that's huge

Speaker3:
Is very huge. And like you said, it's very over, very often overlooked in one of the things I know we focus on retirement here, but we may have some business owners listening as well. Yes, some of you may had some may have had a rough year during twenty twenty because of covid in certain businesses in Florida in general did well compared to most of the rest of the country. But there still were some businesses here in Florida who were negatively impacted. And so you may have had some losses coming in at 20-20 ringing Kaminak coming into twenty twenty one. You can still know you may have had one hundred two hundred thousand dollars in losses. You may want to go ahead and offset those losses with a Roth conversion, especially if you're not near retirement. But doing it the sooner you get that money into a Roth, the more that grows tax free. So, you know, please don't miss that opportunity.

Speaker2:
Yeah. So I guess let's jump in. We got some good questions this week and this one from Fred up in the Villages area. What he heard is when you withdraw money from a four one K plan, pay the taxes and reinvest the balance into a 401k. Roth Is there a waiting period of five years before the profit is tax free? Questionmark. Also, if you do this yearly, must each conversion amount be held for five years, questionmark? Or once the Roth one is open, is it only only is it only on a five year period. Questionmark. So great. Great question. One that we see quite often. So yeah, if you do road, do you do the Roth conversion, you can withdraw money, but you can't withdraw the portion that you rolled over for five years. The growth, at least the principle you can pull out, but the growth has to stay in there or you'll be taxed or penalized.

Speaker3:
Yeah, and it's just another way where somebody comes to us with a retirement plan and may not be inside of an IRA, but there are options still to to help you get those moneys converted over into Roths.

Speaker2:
Yep, absolutely. So. And then once the four one K is open, is it only a five year period? No, it's on those amounts that you roll over. You have to keep those in for a five year period or at least the growth portion and or you'll be taxed more important to come and see how that looks on paper. And we'll project it on a spreadsheet and show you exactly how it looks on with our Roth conversion later. It doesn't hurt you to take fifteen, twenty minutes every day and just look, you can call our office, schedule that appointment like I set up in the right hand corner and we'll whip one up for you and email it to you.

Speaker3:
It's amazing with the tools that we have in the office, a different software that we have and calculators that we have that we can sit there and on the fly with you just, you know, come up with all kinds of scenarios. So, you know what may seem like a daunting task to you out there? Well, you know, how is this going to affect me, plug all this information in and instantly, you know, the the how it's going to play out long term for you is projected out on the screen. So you're definitely give us a call to come in and see how we can put together some great options for you.

Speaker2:
Here's another great question from Paul in Pasco. And I love this question. I've been listening to you guys for quite a while and and talking about, you know, conventional wisdom and maybe, you know, what I've been doing in the past isn't going to serve me well in the future. I'm looking for new ideas. But he says for the most part, I've been and I am fairly confident that my dividend paying stocks will provide the income that I need in retirement. But sometimes I wonder if I'm relying too heavily on that plan. Do I need to diversify the income side of my portfolio as well? So great. Great question, Paul. One that we, you know, encounter all the time. And that conventional wisdom is a lot of of of advisors or brokers will just kind of follow that conventional wisdom without thinking outside the box. But, you know, you'll call up and say, hey, I need income, I like income. Well, OK, we're going to put you in these dividend paying stocks and we're going to put you in these high yield bonds that pay a lot, you know, pay a lot of but pay a lot of income. But they don't tell you that the risks that are involved with that. So, number one, obviously, stocks have risk. Right. So that's great getting those dividends. But what if the stock value goes down? It's great getting those bond coupon rates and those bond interest rates.

Speaker2:
But what if the bond value goes down or what if the credit quality isn't so great? So one one thing people don't realize if you have high yield bonds and that means that the credit quality isn't that great. Well, the price can just fluctuate based on the credit quality. So you've got to be. Careful that you're not losing principle there. Real, real important, but when you have a traditional dividend and income paying portfolio, you have a lot of risk in the portfolio because what people may or may not understand is the higher the dividend and the higher the yield, the higher the risk. So you're getting baited on this. Oh, hey, I got this nice income check coming in in the mail every every month. But what are the risks that you're taking to get that? And once again, when a rising tide floats all ships over the last five, 10, 15, you know, years, 12 years, bonds have been going up in value. Stocks have been going up in value. Dividends and interest just keep coming in. And that has worked for you in the past. But I'm here to tell you, there are much safer ways to get your income, diversify that income, those income sources. So you're diversifying your portfolio to diversifying your risk. So there's a lot of ways that we can get your guaranteed income for life and really nice rates as well.

Speaker2:
So it pays to kind of explore and think outside the box and educate yourself on other things that are out there that you can do. Great. Great question. It's it's it's more important to reach your goal and to get the income that you need than it is to take the risk that you're taking to get those. So very, very important to take a look at the risk inside of those portfolios. Another question here from Ashley. It looks like this one's Spring Hill. I have sixty thousand dollars in a savings account and I also have an IRA account. I want to invest the sixty thousand so that it can grow, but I'm nervous about investing it currently. How do I invest all or some of this money with a very cautious approach? Questionmark. I'm 63 and I plan to retire at 65. So great. Great question. Kind of a difficult one to answer without having all of the information about Mr. Ashley. But, you know, if you just have cash sitting on the sidelines right now, it kind of makes sense to, one, get a plan to figure out once again on that sixty thousand dollars that you have. What is the financial speed? What what type of return do we have to get on that money to reach your goals? And, you know, yeah, no matter what no matter where we are in history or cycles in the market, it's always nerve racking to invest that money.

Speaker2:
And so I would get a plan in place. And, you know, there's ways that you can cautiously invest your money and get a good return and to provide some income and some growth for you in retirement. So give us a call and walk you through and set that plan up for you and show you how you can do that. Absolutely. You know, you might want to dollar cost average into the market. You might want to have some indexed annuity in there, some some some equities, you know, some structured notes. You know, we we're really excited about structured notes. They're offering an awesome yield. And it's another way to diversify your portfolio. Folks need to call us and get the white paper on that on structure notes and educate yourself on that. And so where you're being the bank and you're making the money, as opposed to just leaving your money in the bank and letting them make money on you. So if you want to be the lender and you want to make some really nice interest rates, then give us a call and we'll show you how to do that. So great, great questions. Back to that

Speaker3:
Prior question about the dividend paying stocks. You just for that gentleman they call called they call the name of that question, just applying the rule of one hundred. And we would tell him that if he has all of his income, basic and dividend paying stocks, we would not recommend that approach to him, say, just applying the rule of one hundred for him. Would we diversify his portfolio?

Speaker2:
Yeah, because there's what we call systematic risk and you can have these great solid stocks. But if the market goes down, the value of your stocks is going to go down, too. I don't care how good that stock is. And yeah, they probably will still keep paying that dividend. However, I've seen companies have to reduce dividends as well. And right now, to be competitive with today's interest rates, companies aren't really having to pay high dividends or interest. So you may not even reach your goal with that kind of strategy. I'm going to venture to guess we can get you a much more income with our strategies, utilizing the tools that we use. And it can also be a guaranteed income and a much safer way to to that income and also continue to pay that income. This guy has to ask himself, is that income guaranteed for life? Because there's ways that we can put income in place where it's guaranteed for your life and I'll never change.

Speaker1:
That's incredible. And that's what I'm talking about. And we think the professionals that are in our studio each and every Saturday to give us the information that we need for that stress free retirement. Folks, keep those questions coming in. Great questions, by the way, info I info at take point on retirement dotcom. That's right. Send your questions to info at take point on retirement. Dotcom will address those questions on future shows. And we appreciate once again Eric Arnet, lead advisor, retirement planner with Take Point Wealth Management, Randy Woodruff, certified public accountant, realtor here in our local area. And it's all local, right? Here on the Nature Coast, we take point wealth management, give them a call now three five to six one six zero five one, take advantage of what they've got and take advantage of that stress free retirement. Once again, all you retirement warriors take point has got your back and they'll take the lead on that stress free retirement. We'll be back next week. Same place, same time on take point on retirement right here. Past performance is not indicative of future results, which may vary. The value of investments and income derived from investments can go down as well as up. Your returns are not guaranteed and a loss of principal may occur. Folks, thanks for being with us. God bless you. We'll see you. Have a great weekend. Take point on retirement, a well rounded show from a well-rounded team leading you into retirement. Listen, Saturday mornings for an hour of simple retirement advice from your friends at take point to wealth management. Saturday mornings, seven 30.