Episode Transcript
[00:00:00] Speaker A: Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.
[00:00:17] Speaker B: You're tuned into the Retirement Planning Pipeline, the show that helps you take control of your financial Future. Whether you're 5 to 10 years from retirement or just getting started, we've got the strategies, tools and experience to help make the most of your nest egg. Retire Retirement Planning Specialist David Pipes is a trusted voice in retirement planning, helping Americans navigate 401 rollovers, income planning, tax strategies and everything in between.
Now let's dive into today's show and start paving the way to your smooth retirement alongside Retirement specialist David Pipes. Here's your host, Jim Tarabakia.
[00:00:52] Speaker C: Hi everybody. Welcome to this week's edition of brand new episode of the Retirement Planning Pipeline, the show that delivers expert insights, actionable advice and real world financial strategies to help you retire confidently and comfortably. Thank you for making our show a part of your weekend. I'm your host alongside Retirement Planning Specialist David Pipes. Five steps to catch up on your retirement plan Today Our final installment of our five part series outlining steps to help you catch up on your retirement plan. Today we'll be taking a deep dive into why delaying retirement might be the smartest move. Now, these past few weeks David and I have been presenting a series centered around helping you catch up on your retirement plan, outlining five actionable steps to take right now to ensure a rock solid retirement plan so you can enjoy your golden years. And if you missed any part of those shows and want to catch up on those previous episodes, visit the podcast archives on Apple, Spotify or wherever you get your podcasts. Coming up on today's show, why more Americans are hitting the pause button on retirement plus the power in waiting and should you delay retirement. That's all coming up. But first, we do want to get the show started by telling you this that our listeners go ahead and schedule your 100 complimentary consultation with Retirement Planning Specialist David Pipes today. It's a free offering just for listening to our show. Our listeners can meet with us to review their own financial situation for your family or for your business. And there's absolutely no obligation. Visit retirement planningpipeline.com to get started today. All right, let's dive into today's content. The new Retirement Reality, why more Americans are hitting pause on retirement and what it means for you now. For decades retirement at 65 was the goal. But what if that timeline is outdated? Rising costs, longer life expectancy, market uncertainty, they all factor in and can't be ignored. So, David, when we're talking about retiring and whether or not that's a setback or a strategic advantage, how do you look at it? Do you look at it as maybe it could be a setback? Again, looking at all the factors here that go are involved with retirement, or is it more of a strategic advantage with the times that we're living in right now?
[00:03:04] Speaker D: I think that it's more of a personal choice. And why I say that is I think that a lot of, of retirees have the ability now to retire, but I feel like now there's more emotions evolved. And when I say that, I'm saying I think that plenty of people also don't know the two questions. Do I have enough to retire? Right. They might have that kind of question that's kind of bubbling in their brain and every day they kind of sit on it and going into work. I mean, I deal with it every day. Right. So I hear that question a lot. Secondly is, are you too scared that your money won't last? And I think that's, that question is what leads into all the other questions. Because obviously when you retire, your nest egg, you know, your, your assets, your, your cash flow that's going to be funding your entire lifestyle. The point you do retire and stop working, and, and I think it's more emotional than it is professional. I, I think that, you know, a lot of people don't really want to look at the, you know, the hard side of things. Which is, which is really, hey, look, I've been working my entire life, 40 plus years.
Why do I wait?
And I'll share my personal opinion, Jim, and for everybody out there listening, you know, and I hope this hits home and this hits well, you should retire as soon as possible. And when I mean possible, I mean, it fits your lifestyle, right? So if you don't figure that equation out and you don't figure the, the numbers and you know, the quantity of, of, of inflow of cash that you need to, or income, then obviously you won't know. Right? But I think that when people come to the point of saying, oh, well, when do I retire? And they start to question themselves, I feel like that's something that they don't even find out. They just think to themselves, I'm going to keep working. And it's, it's tough to say this to retirees, but it's like I know that it was an. I know that it's been, you know, a put, it's been put into your soul the, that you don't. That you shouldn't retire, right? I mean, that's how the country is, right? Hey, work to your work till you die. You know, like, we don't want to retire. You, you know, you work, work, work. We got you experience, you know what you're doing. These corporations want to keep you in that field, but it's time to look out for you. And if you can retire, I mean, that's, that's the way to go. You know, I, I want to retire as soon as I can. Now I meet clients out there that are like, I love what I do, and that's totally fine. You know, the point of do you love what you do more than you love to go have freedom and travel and, you know, live that wealth lifestyle that we talked about on the last episode? I just think that you're, you know, you're kind of lying to yourself, you know, and, and I'm not calling anybody out. I'm not saying, hey, look, you know what, what you're saying is wrong. But I think that everyone on this planet, especially if you get to the point of retirement, right, you've worked your butts off and you know, the reward that you worked off, worked your butts off for. So I think that a lot of the times people are too scared to ask that question. Like I said before, oh, well, you know, David, how do, how can I sit here and say, hey, how do I retire, right? What number do I need? How can I position my assets that I have, whether it's a 401k, IRA, maybe some CD money, inheritance, life insurance, whatever it is, whatever you have, right? How do I position those assets to a place where I know that I'm comfortable and my confidence in retirement will be there? And again, if anybody out there, if you have these questions, I think that this question alone is what really brings up the retirement industry and what builds the questions and what builds the concern about retiring too early or too late? If you have that thought in mind, right? Am I retiring too early? Am I retiring too late? What do I do? Do I have enough? How much can I make? What's my inflow of cash? That's when you need to call us. And that's 850-565-1705. Again, that's 850-565-17 05.
[00:07:01] Speaker C: It kind of becomes, it kind of brings up to one of your points you made earlier it working deeper into your 60s, even into your 70s, whether it's full time still or part time partial retirement, it's sort of embedded in their DNA to continue to work.
[00:07:15] Speaker D: Yeah. And you know, we call it the go go, no go and slow go years, right? So you start off with those go go, you know, really it's 55 to really 6570, right? You're, you know, you're able to do the things that you still want to do. Maybe health plays a small factor, but you're still able to, you know, go travel, go to Key west, go to some bands, go to concerts, be able to walk around freely, you know, go see the grandkids, go travel all the time. You don't have that, you know, that health factor. The slow go years are when you start to hit that 65 to 70 age. When, you know, I'm not saying everyone, right? Some people, I mean, my grandfather is 82 and he could, he could probably do what 50 year olds do. But for the majority of people out there, right, that's when health starts to play a factor. So, you know, you're starting to see the switch and change. Maybe people come see you maybe, you know, more of a, of a family oriented where you live and not where the grandkids live, right? Because I mean, you know, that, that kind of stuff matters. Then you have the no go years, which after 75, you know, you're starting to see yourself really slow down, right? And you're not doing much.
You need the money. And for any retiree out there, you know, you want to have that inflow and cash flow early. You want it in the go go years, you want to be able to spend it, right. Those, that's when you want to travel. That's when you want to do the things. When you want to go out and, you know, go buy some Christmas presents or go see the grandkids on a random weekend. That's, that's the style that retirees are kind of missing. And I feel like because of the brainwashing mechanism and I say that, Jim, because every time we talk about this, it kind of, it kind of ruffles my feathers. You know, I think people are so, you know, they're just taught, it's embedded in their mind, they have to work. And then whatever they work for can just be passed on if it needs to be. And they don't need anything. It's like, I understand the certain logic of that, but you have to stop letting people tell you how to live your Retirement. And I think that's what most of my clients get out of meeting me, right, Is because once we meet, I think it's cool because it's more of an impact, right? It's an impact on the retirees out there to say, hey look, you've worked your bus off, you've did this. Now let's build a plan for you to spend what you can spend it, maximize your income as much as we can to make sure that you never have a doubt on what you want to do in retirement. So if you're out there and you're thinking to yourself, hey look, 401ks, I have IRAs, I have CD money, I have money sitting aside, but I'm not, I don't know if it's working for me. I don't know if it's creating that income that David's talking about, right?
It's a pretty easy process when you sit down with me and we can go over this. But this is something that I think that not a lot of people go over. So sadly, the advisors out there and the corporations aren't teaching people, right to take out money. They're teaching people to what, Save, invest, right? Because that's what makes the company's money. Sadly, retirees, you're not going to be benefiting off of that much, right? Maybe your kids will down the road, but the corporations don't care about you. I think anyone can say that. I know for a fact that, and I've learned this at a young age who, whatever jobs that I've worked for, right? I've been a bartender at very high end restaurants. They don't care about my tips, they only care about what money comes into them, right? Their, their sales, their cash flow, their revenue. So I think that people need to get out of the logic of where my money is and how to use it. And that's why we create this show, Jim. And that's why I love what I do. That's the impact that I want to create on this world and on the retirees aging in a retirement and is planning and using and maximizing the money that they can spend every year for the rest of their life until they die, right? Because you never know when that day is going to come. But utilize what you have and what you've worked for. So any of you guys out there that are thinking, hey, I've got, you know, money saved up and David makes sense, right? Which I hope I do and I hope I'm coming off as a positive impact because it is your Money and it should be used depending on what you want to do. And if the cash flow comes in and you don't want to use it, you can always reinvest it. You can always give gifts. You can, whatever you want to do. Right. But create the cash flow coming in your pocket. Tax efficiently, of course, which I talk to every client about. And we'll go over on the next episode, which is even better because, you know, you really want to make sure that you're not, you know, taking it all out at once. And you know, and especially if it's IRAs or 401ks. But if this is a topic for you of how to transition and how to use my 401k, right. This is the main topic of what we're going over today. Please give us a call. Give me a call. You'll be on my personal cell phone number. It's 850-565-1705. Again, that's 850-565-1705.
[00:11:57] Speaker C: All right, a couple minutes left. In this segment, I want to bring up inflation. How does inflation impact fixed income plans for retirees?
[00:12:05] Speaker D: Well, I think first of all, you're going to need to have a fixed income plan with an inflation plan.
[00:12:11] Speaker C: Sure.
[00:12:11] Speaker D: So what I mean by that, to break it down really, really simple is you need to have growth on some of your portfolio. And I, and I mean aggressive growth. Right. So I think that people all the time, they, they start to, they start to mix up and they put all their money and I've seen this for the past three years now that people are accumulating the bubble wealth. They're selling all their assets, all their 401k, all their IRAs. They got it in cash or they got most of it in bonds or they got most of it in fixed income assets.
That's just not the way to do it. Okay. You can position a certain amount of that into income, but then keep the rest at a, at a solid growth to where you're not touching it. And I've gone over this on the other episodes, but keeping income and growth separate and the numbers don't lie. I mean, I can do the numbers all day long on a, on a whiteboard for pretty much every single client that comes in. But if I have to be easy as can be, you know, and to make it simple, inflation, the really, the one thing that maximizes and is able to keep up with inflation is the stock market. Okay. But when I'm talking about the stock market guys, it's not your 401ks or IRAs that are in bonds and fixed income assets. It's the actual stock market, right? It's SP 500, you know, your corporations, your stocks, your tech, your AI, your Dow Jones. So these things are what helps the inflation side. If you're just put in a fixed income market. I'm sorry, you're not, you're not invested like you think you are, right? And I think that's the brainwashing mechanisms that we have is, oh, just stay in the market. You're just going to stay in. We're just, we'll be conservative. It's like, what's, what's the point of being in the stock market? The point of it, Jim, is to grow, right? So for anybody out there that's thinking themselves, hey, what am I doing right? If I have all my assets in my 401k and they're just sitting there making 3 to 4% a year because they're in fixed income assets, I mean, come on, what's the point? Generate income on half that, on half that side for lifetime, then grow the rest on the other side. Jim and I get so passionate about this because I see it every day. People need help, right? People think their financial advisor is doing the best for them. Sadly, 99% of them are wrong. Retirement is an entirely different place than just a regular financial field. Okay? Growing your money, putting money in every year and going through a 401k lifestyle is not the same as taking money out. Right? It's the opposite. It's not the same as when you had money being put away and you had an income. Now it's reverse. You don't have an income, you're taking money out. Don't treat it the same and don't let your financial advisors treat it the same. So give us a call, 850-565-1705. Again, that's 850-565-1705.
[00:14:59] Speaker C: And another way to frame all of this is to come at, come at it from a financial optimization point of view. So again, optimize your finances. David mentioned the phone number. Give us a call today at 850-565-1705 or visit Retirement PlanningPipeline.com again on the web, visit Retirement PlanningPipeline.Com and schedule that free no obligation consultation allow us, among other things, to inflation proof your portfolio to ensure a successful retirement future. Stay with us because coming up later, how to decide if delaying retirement is right for you. But up next, the financial power of waiting. This is the Retirement Planning Pipeline. We'll be right back.
[00:15:39] Speaker B: Visit Retirement Planning Pipeline to schedule your free, no obligation complimentary consultation today. The Retirement Planning Pipeline we'll return in just a moment.
[00:15:56] Speaker C: Investment advisory services offered through Brookstone Capital Management, llc, a registered investment advisor. BCM and Amerilife are separate companies but are affiliated through common ownership Insurance. Products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents.
[00:16:13] Speaker B: Welcome back to the Retirement Planning Pipeline alongside retirement planning specialist David Pipes, here's your host, Jim Tarabokia.
[00:16:22] Speaker C: Welcome back to the Retirement Planning Pipeline. Thank you for making our show a part of your Saturday on WCOA News Talk 104.9 with new episodes every Saturday at 8am as we dive back into today's show. Reminder, if you like the content we're providing, subscribe to the YouTube page YouTube.com and search Retirement Planning Pipeline for weekly video highlights and special content. Hey, are you concerned about Social Security? We understand that many of you are worried about future, future cuts to Social Security affecting your retirement. Well, we do want to provide you with a Social Security maximization plan customized with you and your spouse's benefit information. Give us a call today at 850-565-1705 or contact us on our website, retirement planningpipeline.com to take advantage of this complimentary offer today. And again, we want to reiterate, we really do love helping our listeners.
All right, the financial power of waiting, how a few extra working years can dramatically increase your wealth. So delaying retirement isn't just survival. It can actually be very powerful. So what actually happens financially if someone works three to five years longer? And David, let's do the favorite part of financial planning for you. Let's talk about the math part of things.
If people wait that three to five years longer, walk us through the math for them financially.
[00:17:43] Speaker D: Well, first, I, I don't think and I think planning is important before the three to five years. Right. So.
[00:17:49] Speaker C: Right.
[00:17:50] Speaker D: And I think what a lot of people do is, is they that they fail to plan. Jim and, and to be honest with you, I think, you know, very, very transparent on this part.
We as financial advisors have to be able to plan accordingly in, in, in front of the problems. We're never going to be able to guess what's going to happen the next three to five years. I mean, you look at the dead decade, right, where three years in a row you saw negative returns in the, in the actual stock market.
[00:18:16] Speaker C: Oh, yeah.
[00:18:17] Speaker D: So we're not going to be able to, you know, educated you know, probability, guess what's going to happen. What I do think we can do, Jim, is we can let clients know that it is important to put assets away for income down for the future. Right. And what I mean by that is, is there's a lot of people who still have their, you know, their 401k and they're 62, 63 years old, and they've got 1.1 million in there. And let's just say it's, you know, it's given you a number, $1 million. Right. And they'll wait, right. If they do wait the next three years to even move that 401k, which many people, first of all, think they can't move the 401 case.
For all of you out there, if you are over 59 and a half, the majority of you, they don't tell you this, but you can roll over your 401k or parts of it. Okay? Do not let that misconception hit you. A lot of that is because people don't want to tell you. They don't want to call you and tell you. Obviously, they want to keep your money in that 41k company. If you've got a 401k or 403b, that's a big, big issue, having the full lump sum in there when you plan to retire in three to five years. So, again, that's another reason to call us and sit down with us. But going back to what I was saying, one of the most important parts about this is understanding how to put assets away to build for income in the future. And when I mean income, I mean not fluctuating income, I mean guaranteed income. And why that's important is because, first of all, rates are high right now. Okay? Second of all, we do not know what's going to happen in the next three years. We do not know what's going to happen the next five years.
So your income, if you wait to retire, that's totally fine. You know, I think that, you know, first of all, it's. It's your choice if you want to wait to retire or not. Now, I'm hoping a lot of you out there that set an appointment with me and we sit down, look at your, look at your assets and what you have going on. I'm hoping that I can retire you early. That's the whole.
That's what I love doing, right? I love being able to, to show someone that I can retire them a little bit more, you know, advanced than, than what they thought of. But, you know, I think that working is not a bad thing if someone wants to work.
What I do think is, is that, you know, you've got to be. You've got to be intelligent on when you want to retire and how to plan for that. You can't just say, I'm going to keep working and wait for the next five years and, okay, well, guess what? I'm going to have more in my account.
It doesn't work like that. Okay. And the 2008 crisis will tell you it doesn't work like that. Right. So. And I know everyone wants to talk about we're in a bubble or we're in this. You know, we've got all this inflation popping up and companies are overrated and overvalued. And, I mean, you can say all you want, but I mean, stock. The stock market, you know, is going to do what it wants to do. It's going to do what the insiders, you know, the big money wants to do. Now, we have no control over that. So my one thing that I always tell clients is, is we're going to control what we can control.
Okay. Many people in planning for retirement or they are retiring aren't actually controlling what they can control.
They're leaving it to, what, the 401k or the IRA or whatever mutual funds that has that have you in that. In that qualified plan.
And I think people have it all wrong. Right. And we. We want to talk about this because working longer is not going to make your retirement portfolio any less or more risky.
[00:21:41] Speaker C: Mm.
[00:21:42] Speaker D: It's just not. It's gonna be in the same asset. Right. So you have to understand how to transition those assets in your 401ks and your new IRAs or your CD money into assets that will create cash flow, that will create something for you, and plan accordingly down the road. And this is why, you know, I do all these numbers when I sit down with. With anyone that comes in. If this is an issue for you and you're thinking to yourself, you do I wait two more years? I have a lot. This is. This happens, believe it or not, every single day. I have clients asking me, david, should I wait a year? Should I wait two years? What about if I retire in three or four years? If this is a topic that keeps running through your mind, you need to come meet me. Right? We can sit down and go over your options each year. Hopefully, you want to retire a little bit earlier than we talk about, you know, in the future. But, I mean, if you still want to work and we can plan accordingly, that's totally fine. You know, know, it's definitely up to your decision. But I think that a lot of people make those decisions based off of what's in their 401k or their IRA. And they're not making a, a, you know, an educated decision on what they have and what they can put aside and really maximize the income when they want to retire. That's the first, that's the first plan that anyone needs to do is understand how their income stream is going to be replaced by what they're going to lose. So again, if that's a question going through your mind, you need to come in for a free consultation. I mean, we sit down and we go over, we do the numbers. It really clarifies everything that you've been thinking about retirement and about your future. That number is 850-565-1705. Again, that's 850-565-1705.
[00:23:23] Speaker C: Now, correct me if I'm wrong, but I feel like the people who say, okay, I want to retire within the next three to five years help me come up with a plan. Don't really have much of a foundation of a plan already in place. Is that.
[00:23:36] Speaker D: No, I mean, honestly, Jim.
And a lot of people out there are going to say, oh, I have a plan. No, you don't. You have the wrong plan.
And I'm transparent about this, okay? I see it every single day. The plan that you create for yourself is not. First of all, if you don't know all the implications, you don't, you know, you don't study this till every single day. Second of all, you probably had a financial advisor that was from a corporation that taught him how to plan for you, that planned your 30, 40 years before that. Whole different subject. Planning for retirement is. You can't just go by the laws, right? It's a personal effect. And I say that in one of the first segments. You have to look at personal preferences. You have to look at income, spending. You have to look at what people like to do in retirement. Traveling, spending money.
You're not making income anymore. I can't get that through people's, people's mind enough. Jim. You are not making income anymore when you retire. You are using your assets, period. You are using either your appreciation of your assets or your cash flow that comes through your assets. It's an entirely different subject. And for people to not understand that, it blows my mind mathematically, it doesn't make any sense. This is why a lot of financial advisors get bad reps when the retirement side comes in because they knew how to build, build a portfolio, but now they don't know how to dish it out. They don't know how the distribution phase comes in after the accumulation phase. This is one of the biggest topics right now in the entire industry because why the biggest generation, the boomers, are turning 65 and wanting to retire and the financial advisors, the corporations and everyone around them do not know what to do to help those people retire. Because they don't want to tell themselves straight up, take out your money, or here's how to take out your money, because that's their income, that's their fees, that's the way that they, they position their assets. They don't, they don't have any advantage to do that for you, right? This is where we're different. This is where I'm different. And, and, and being a, you know, a successful at a young age in this business, you have to run it the right way.
Right? I want people in the next five years to say, David did it totally different than everybody else. And they go to their friends and their friends are like, man, well, my plan, that doesn't give me that income.
My plan doesn't have my assets reaching that long. Right? You have to be different and you have to set people up for a different side. Jim, you can't, you can't do what everyone else does or else you're going to be the same person as everyone else. And it just, it doesn't work like that in retirement. Right? So the reason why I, I say this because I'm watching people get told, well, wait three to five years and then we' take out money on Social Security and we'll. Because they want you to put, keep your money in the market.
[00:26:28] Speaker C: Generic advice.
[00:26:29] Speaker D: Yeah, it's just, just. And to be honest, I mean, why, why are we talking about everyone fitting the same plan? When I buy a different car than everyone else does, I buy different clothes than everyone else does, right? I get a different haircut than anyone else does.
Everything's different in everyone's lives. You can't treat everybody the same.
Sadly, that's what financial institutions are doing. And it's going to ruin the boomers retire. It's just going to ruin it all. If you don't do the math and you don't sit down and plan the right way and have the right planner without just keeping it all in the market, I'm telling you, people are going to be really upset in the future. They're going to be really upset. This is Why I, you know, and I talk about the company and what I do and why they want me out here and why they want me talking to people is because it's just. It's a different plan, okay? It's for everyone, and it's according to their goals and their needs.
I can't stress enough what it means for someone to have a personalized plan. And I know people think they do have a personalized plan, but saying, okay, I'm going to wait three to five years and this is going to be my estimated. No, there's no estimation. Stop estimating stuff. You're in retirement. You don't have room to risk your income. I'm sorry to tell you out there, guys, you want to retire in three to five years and all of a sudden your portfolio drops 30%, you're screwed, right? Your income goes 30% down from where it was. We don't need that, right? You've built your life. You built what you've had. Now position it in the right places. Not for the company, not for the financial advisor, but for you and your own good.
Give me a call today. We can at least sit down and go over this stuff again. You know, I set these appointments every single week and I put time slots in here for you guys so that I can help you. I can help people out there that might not come to my seminars, that might not hear someone that I have worked with before, my referrals.
I'm here to help, right? So just give me a call. It's 850-565-1705. Again, that's 850-565-1705.
[00:28:40] Speaker C: And a reminder, reach out to us to get your get started on your own assessment today. You can also Visit the website retirementplanningpipeline.com for that no obligation consultation. This is the retirement planning pipeline, helping
[00:28:54] Speaker B: you take control of your financial future. This is the retirement planning pipeline
[00:29:03] Speaker D: to be upset.
[00:29:06] Speaker C: Spring has arrived, and with it, the urge to fling open windows, sweep away dust, and finally tackle that drawer of forgotten receipts and tangled cords. But while your home gets an annual refresh, your finances might be collecting their own quiet clutter. I'm Jim Taribokia for the Retirement Radio Network, powered by Amerilife. Now that spring is upon us, maybe you filled your closet with those winter coats. I'm sure it feels quite liberating. But what about the financial dust bunnies hiding in your accounts? Break youk Budget founder Michaela Alaka recently spoke with Yahoo. Finance about the importance of gaining a full view of your money situation. My best recommendation for getting started with auditing and spring cleaning your finances is
[00:29:45] Speaker D: to take a financial snapshot. And what this is going to do is show you how much money you
[00:29:51] Speaker C: are spending on essential things and non essential things. A recent guide from Morgan Stanley offers three straightforward steps to tidy up your finances and clear the path ahead.
First, clean up your accounts. If your money is scattered across multiple banks and brokerage firms, it can feel chaotic. And as financial advisor Matt McGlure of the Retirement Radio Network tells us, consolidating where it makes sense can give you that full, honest picture of your finances.
[00:30:17] Speaker A: Take inventory of all of your accounts. Look for ways to simplify where your money is held because you don't want it scattered all around in a bunch of different places. You want to be diversified, of course, but you can do that within a couple of different kinds of accounts.
[00:30:31] Speaker C: Next, declutter your debt. Multiple credit cards, loans with varying interest rates and different due dates can create unnecessary pressure. And finally, organize your income and expenses. Take a hard look at where your money actually goes each month. A clear budget lets you direct more towards your near term or even long term goals, like a comfortable retirement. So just as a thorough spring cleaning refreshes your home, these small, deliberate actions can declutter your financial life and make room for what matters most. The spring offers a moment to pause and tidy up. And that includes your finances. For the Retirement Radio Network Powered by Amerilife, I'm Jim Tarabokia.
[00:31:08] Speaker B: Planning for retirement doesn't have to be overwhelming. Get expert insights, tools and personalized strategies to secure your future Future. Visit Retirement PlanningPipeline.com today. Your retirement, your plan, your peace of mind.
[00:31:25] Speaker C: This is the retirement planning pipeline. Last week we did part four of our five part Retirement Plan Readiness series and if you missed it, want to catch up or even listen to previous episodes? Prior to that, go ahead and subscribe and listen to the program in podcast form on Apple, Spotify or whichever platform you enjoy your podcasts. All right, stay with us because coming up, building financial freedom for tomorrow. But right now, it's time to unveil this week's Financial wisdom. Quote of the Week
[00:31:55] Speaker B: and now for some financial wisdom. It's time for the Quote of the Week.
[00:32:03] Speaker C: And our Financial Wisdom Quote of the Week comes to us from one of the founding fathers of the United States, Benjamin Franklin. Franklin said, quote, beware of little expenses. A small leak will sink a great ship. And again, our thanks to Benjamin Franklin, one of the founders of the United States, for providing us with this week's financial wisdom quote of the week. And if you like the content that we're providing, subscribe to the YouTube page YouTube.com and search Retirement Planning Pipeline for weekly video highlights and special content. Continuing on with the show, it's not just about money. The emotional, physical and lifestyle impact of laying retirement. We've talked numbers, but retirement is more than just a spreadsheet. Talking about the emotional and psychological side. What happens, David, psychologically, when someone maybe delays their retirement? What are you seeing with clients when it comes to that shift in their purpose and their identity as they reach that or in that retirement age?
[00:33:03] Speaker D: Most of them are just confused. And I know a lot of people out there and they're, they're going to listen and they're going to say, you know, David, you hit them on the head. Confused is the word.
[00:33:11] Speaker C: Right?
[00:33:12] Speaker D: Right. Because you've got two sides of things. You've got one side telling myself, hey, spend, spend my money when I can. Then you've got one side saying, wait, hold up, how long do I need to wait? Should I leave it in there? You know, do I give it to the kids or am I, you know, am I okay or do I, can I live off anything else? So there's questions popping through retirees minds every. And I, I hear, shoot a thousand of them a week, you know, and a lot of them are the same kind of question, right. But they're tailored towards different people. And, and I think that, you know, the one thing that we can do and I love, you know, the quote of the week that we had this week is, is really beware of some of the expenses, especially in retirement when you have that lump sum of money that can really affect the downturns and, and what's going on with the money that you have, right? And, and one of the biggest is fees. Fees in general, right. When you're talking about expense ratio fees, you're talking about, you know, whether it's mutual fund fees or you're talking about, you know, whatever it is, advisory fees, you've got to minimalize fees in retirement. Why? Because your portfolio is bigger now than it ever was.
Right. When you save for retirement, the whole, the whole, you know, goal is to have a nest egg. You don't, your 1% fee on 100 grand is not a 1% fee on a, a million dollars.
Not just that, Jim. And hear me out, people out there in your, Listen, you're going, man, he's getting good. Listen to this. You think that was good?
What about this? Okay. When you get older. I want you guys, if you, if you're listening to this, this podcast and you know all the listeners out there, I want you to just speak with me and I want you to answer these questions before I'm going to give you a two second pause before I answer them. Okay?
[00:34:55] Speaker C: Now can I answer them?
[00:34:57] Speaker D: Jim? Let the, let the people that are listening answer first. All right, and then, and then you can answer. All right, and then you can answer.
[00:35:02] Speaker C: No. Buzzer knee. Go ahead.
[00:35:04] Speaker D: Are we, are we more aggressive when we're younger or the one, or when we're older? One, two. Jim, go ahead.
[00:35:11] Speaker C: Younger.
[00:35:12] Speaker D: We're more aggressive when we're younger. Right. Okay. What is the point of paying a fee for a financial advisor or anyone who's going to give financial advice? What is the point of that? To do what? To grow money. Correct.
Right. So we're, we're trying to, to continue to grow money by paying a fee for someone to.
Right. Manage my portfolio. Sure. Well, here's the problem.
When you get older, you just told me, Jim, that you're going to be less aggressive. So now we're going to stunt our growth. Right. We're going to pay the same fee that we were paying with more money. And you're stunning my growth, Jim.
Tell me how that makes any sense.
[00:35:50] Speaker C: It doesn't. It doesn't, doesn't make any inverted effect
[00:35:53] Speaker D: of your finances make any sense at all. So everybody out there going, I got 1.2, 1.3 million. Oh, great job. You're letting the financial advisor eat away at the money. When you're now conservative, not aggressive, you're now making less money each year, a less percentage, and his percentage stays the same.
It doesn't make any sense.
[00:36:12] Speaker C: No.
[00:36:12] Speaker D: Right. So when you boil down to the factor, minimalizing fees on how much money you have invested in the market is important.
The fees that are, that, that should be paid are for people who are actually being aggressive in managing your money. Not fixed income securities, not bonds. Okay. There's so many alternatives out there. And I tell everyone this, I would personally never buy a bond. Personally. Right. I never will.
Neither will Warren Buffett. Right. So, I mean, you could talk about one of the best investors in the entire history about, you know, his undervalued stocks, but the same time, he would never, ever buy a bond because there's so many alternatives out there that they could do so many different things. Right. And as a financial advisor, I don't think it's appropriate for myself to charge someone a fee for carrying a fixed Income asset that has it. It just doesn't make any sense to me. Okay? Now, everyone else, people have different models. They have different, you know, thought processes, whatever. But if, you know, it's like a cd, you don't pay a fee for a cd, right? So why are we paying fees on a fixed income security? It makes no sense to me. Right? Because everyone out there is going, well, my. I have 30, 40% in. In, you know, in conservative. Well, you should. I mean, why? I, I just. Okay, that's. That's. That's $300,000. One percent of that's $3,000 a year. Why am I paying three grand a year for something that's not giving me the room to grow?
Right?
[00:37:44] Speaker C: It doesn't make much sense.
[00:37:45] Speaker D: It doesn't make any sense at all. And when I, when I break this down to people, they're like, oh, my gosh, that makes that. That. David, no one's ever told me that the I, the ideas are not. They're not meant to be hard.
They're just not being told. Clients aren't getting educated.
Education is every day. You should get to know something new. I do. I get up every day and learn something new. So does Warren Buffett, right? So did the biggest. Elon Musk learns every single day, right? The richest guy in the world. So you look at these things. Every retiree should be educated on what they're in, why it's working for them. Now, all the things that go inside of those, you know, obviously you don't want to confuse the client, but they need to be educated on what they're in, what it's doing for them, and the purpose of those funds and why it's the best way to go for them. Every client should be educated. And that's my goal. Sitting down with every single person. If it takes a whiteboard for an hour and that client has 10, 10, 12 questions, I'm answering every single one of them until it's answered, until they nod their head and they go, I know exactly what now listeners out there going, well, you're going to tell me one thing, and I might forget about it. Yes, you're going to come back and ask again. I have happened all the time. But the point is, is that you need a financial advisor, should do that for their client. That's, that's one of the main, main goals. And I think people aren't looking at the expenses and the fees side of things, and they're thinking to themselves, hey, I want to keep money in my 401k. And I'm just going to keep it in cash or I'm going to keep it in safe. There's so many alternatives out there. Do not keep your 401k in safe assets. Roll it over and put it into something that's going to make more. Okay. Do not do that. And I just, I really want people to understand that, that there are better alternatives out there to make more money and to be less risky and, you know, don't just stick your money away and not let it work for you.
That's what I take. That's what I really take pride in, Jim. And I think any listener out there, I can definitely help with any side they have now. I mean, some people, if they have their portfolio the way that they want it and they come in and, you know, and they're like, hey, and I tell them, what do you need? And if it's there, that's fine. You come in for a free consultation and we don't need to talk about it. Right. 99.9% of the time, you need my help.
[00:40:05] Speaker C: Yeah.
[00:40:05] Speaker D: Okay. And pretty much every retiree out there, whether you see me or not, you, you know, you need help. Okay. And, and I'm hoping, obviously, that you come in and when we talk and we create a relationship, but get it fixed, Period. Just get it fixed. Get your plan fixed, get it, get it set up, listen to my podcast, understand what I'm saying, and maybe derive it towards what you're doing. If you have questions, call me. I'd love to answer them. So again, that phone number is 850-565-1705. Again, that's 850-565-1705.
[00:40:41] Speaker C: Yeah, the professional guidance is key here. So if anything that we've shared on this week's show makes sense to you and you could use some help with that free no obligation retirement consultation. Don't hesitate to give us a call. We do this show to bring important information to people like you and we love meeting our listeners. So visit retirementplanningpipeline.com or call 850-565-1705 for your personalized investment confidence checkup. Coming up next, designing your own retirement timeline. We'll tell you how to do it. That's on the way. Next. This is the retirement planning pipeline.
[00:41:14] Speaker B: Your retirement questions deserve real answers. Call 850-565-1705 to schedule your free no obligation consultation.
[00:41:25] Speaker D: Today, when the night has come.
[00:41:33] Speaker C: Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosure of any conflicts of interest. Please refer to our firm brochure, the ADV2A Item 4 for additional information.
[00:41:52] Speaker B: Missed part of today's show. The Retirement Planning Pipeline is available wherever you get your podcasts and at Retirement Planning Pipeline,
[00:42:02] Speaker C: Johnny Cash, and Walk the Line, bringing us back into the retirement planning pipeline. That timeless classic was released yesterday, May 1, in 1956. You're listening to the Retirement Planning Pipeline, the show that delivers expert insights, actionable advice, and real world financial strategies to help you retire confidently and comfortably. Jim Taraboki here alongside retirement planning specialist David Pipes. Thank you for making this show a part of your weekend or whichever platform of your choosing. We really do appreciate that. All right, final segment of today's show. Designing your own timeline. How to decide if delaying retirement is right for you. So, David, I'll just ask straight out, what factors should someone evaluate before making this decision about possibly delaying retirement?
[00:42:50] Speaker D: Number one is, is, you know, the, the amount of the four 1Ks or, you know, the amount of the qualified funds that's you never want to retire then, you know, you don't have, you don't want to live off just savings and cash. I mean, that's just people that do that. I'm like, no, put the money away, put it somewhere to where it's building something and then take it out. You know, there's, But I think that, you know, one of the biggest factors is the plan in general. And people wait too long.
Don't wait.
If you're over the age of 50, don't, don't wait to meet someone.
I don't care how much you got in your 401k. People always say to me, well, do I have to have a minimum of $500,000? To me, no, you can have anything. Just, just call me, ask the questions. I'm here. I love what I do. I love talking about it. I love helping people. I just, I love the passion, you know, and I love to be able to make an impact on everyone out there in the retirement, you know, let's just say the retirement phase, the retirement, you know, switch up. But I think that, number one, you know, where you start, Jim, is the most important part. And where you start is understanding there's a problem.
Just like anything else.
Understand that retirement is a problem to solve. Now, it might not be a hard problem, but you can't just leave it alone.
People do it and I watch it and then they Come to me and they come crying, okay, don't be that person. Don't watch your Life. Don't watch 5, 10 years come down the road and all of a sudden you're like, man, I should have planned this earlier.
Don't wait, don't procrastinate. Sit down, have the conversation. Figure out what you have to do. Figure out how easy it is, right, to make that plan. Have someone take that load off your shoulders.
Right? That's what I think that it is so important. It's like you don't have to do much. You come in, you show me what you have, I solve the problem for you.
I do the numbers on the board, I show you how it's going to benefit you in the future and what you told me you wanted, and guess what? Bang, bang, boom, we're done, right? We list the notes on why it helps and it's done.
So the first, know the problem, know there is a problem, know that you have to have a solution, right?
Now the harder part is, is finding the equation and finding the solution to that equation. And that's, that's what I especially.
[00:45:18] Speaker C: That's where the math comes in, Right? Right.
[00:45:20] Speaker D: And that's, and that's what I love doing. And that's why I think I'm different than pretty much every single financial advisor out there is because, you know, I, I do my own work. I don't copy what everybody else does. I do numbers myself. I back it up with numbers, I back it up with math. And, you know, and we figure out a plan for you specifically. But, you know, I think that if you're on the fence, okay, about retiring, don't hesitate, right? If you have an income place. If you have an income plan in place, and I'm not talking about taking money, I'm talking about income plan, right? Hey, I got this money put aside and there's income for, guaranteed down the road, right? I'm, I'm good. I've got a pension. I've got this, I've got that. Right?
[00:46:06] Speaker C: I hate to cut you off, but I do have a question about that, because pensions are sort of going, right? They don't really exist. So what if you don't have a pension?
[00:46:14] Speaker D: Well, that's, that's why we're on this show, Jim.
[00:46:16] Speaker C: That's, that's probably what the retirement plan.
[00:46:19] Speaker D: Yeah, there's a lot. There's a large percentage of people that won't have pensions. But my point is, even if you have a pension, you still need a plan, you know? And People, people miss out on that a lot. But I think that if you're on, if you're on the spectrum, if you're, you know, if you're on that fence of what do I do? When do I retire? Is it okay to retire? If you have these questions, right?
Sit down and go over these, right? Understand what, what you have going on. Have someone make it clearer in your mind.
Two or three minds are going to think better than one. You know, I, I call so many people a day, even though I might have the right answer, I still want other people's opinions, right? Just like a, you know, I, I can't stand when someone's like, well, I have a portfolio and, and he's got me taken care of. It's like. So you're think, you're saying that one mind thinks better than like three or four. Like what, what are you talking about? Right? I have clients that say, hey, David, I had someone look at my portfolio. I'm like, great.
Have them look over it and tell them what they can do.
You know, you have to, you have to have that competition and you have to understand that emotions tie. If, and people are out there, they're like, I have 30, 35 years of this guy, he knows me so well. He knew you well when you were working.
You're becoming a new person now that you're retiring.
[00:47:34] Speaker C: Funny how that works, right?
[00:47:35] Speaker D: It's crazy. It's crazy. But I, and I push that towards everyone. Retiring is a whole different mojo. You know, you've got, you're spending money, you're going places, you're running, you're traveling, you're out of town. Most of my clients are out of town. Three months out of the year, they come back, oh, David, we went here, we went to the Bahamas, we went out, took the boat out. And, you know, so things change dramatically, right? In the financial advising world changes even more, right? You have to be on your toes. You have to be actively pursuing things. You have to understand what income changes, changes, you know what, when expenses change, when lifetime happens, health care expenses. You have to understand these things and everything kind of correlates with, with itself. So I'd say, you know, if you're on the fence, where do you start? You start with sitting down and just going over the, your, your plan and making sure it's okay, right?
You know, and, and, and do it with someone who, who, who is, is in the industry, who studies it every morning, who's with people that are living that same lifestyle, right? Don't go ask Joe Schmo over on the side of the road that he's doing something and, you know, he doesn't know what. Well, what happens, right? No one knows what happens, right? So only, you know, people who can have the bigger demographic and see people come in. That's. That's the big issue. And if you need help with understanding when you want to retire or how do I retire, what is my 401k going to do for me? What is my IRA going to do? Where am I at in my situation? Right. With my spouse, you know, do I take Social Security or not? All these questions are very, very important, and they correlate with each other. And that's why, you know, I really stress, give us a call, sit down, understand these things, and we can make it pretty simple for you, okay? And we can make it confident in your retirement. It's 850-565-1705. Again, that number, guys, is 850-565-1705.
[00:49:31] Speaker C: Yeah, we've talked a lot in this episode, and we brought up a lot of really good points. But just to tie everything together, let's reiterate through everything that we're talking about today, when we're talking about consider delaying retirement. Let's reiterate the importance of an income plan and why that is so important to have an income plan, even if you are or not considering delaying retirement.
[00:49:57] Speaker D: Yeah, yeah. I mean, and, and you could delay retirement all you want, but you don't have an income plan. You don't know what's going to happen the next three years. And I go back to that first segment. You know, you don't know what the market's going to do. You don't know where this world's going to be in three years. Right. With all the stuff coming out, you don't know where oil prices, where gas prices are going to be. I mean, shoot, it took me $130 to fill up my truck two days ago, right. I mean, a couple of years ago was like $65, right? So you think about this kind of stuff, and things change very fast. I fill up my truck once a week, right? I mean, that's an extra $250 a month. People don't really put that in the, you know, in their minds. I think that a lot of people are just thinking to themselves, everything's going to kind of be the same. My plan is going to be the same.
[00:50:42] Speaker C: No, things change.
[00:50:43] Speaker D: Things change every quarter, every year, every two years, every three years. You have to have someone on the ball to react and change with you and to understand how to change and how to really benefit you from your personal side.
And, you know, don't delay because you don't know if you can retire.
If there's one thing you can get from this episode, don't push yourself to work when you don't need to. And that sounds crazy from, you know, from the retirement standpoint, from financial advisor, but if you can retire early, do it. I'll help you. That's one of my favorite things. I will help you retire early and do it confidently and understand where you are and you'll have a biggest smile on your face. Don't wait because you don't know.
Don't say, oh, I have a year or two. No, I mean, come in, sit down, figure out your plan. Figure out if you can retire now. Figure out if you can retire tomorrow.
Right. And go put in your, you know, your two weeks or 30 days notice. Figure out that for you and figure out where the fence is for you. Because everyone has a different Cassandra, everyone has a different length of fence. Everyone, you know, so just understand that, that things won't get taken care of unless you address it and sit down and say, hey, okay, I can do this, and I know how I'm doing this. My confidence is there. I know what I'm doing. I know the parts that go into this. And I am now confident in my retirement plan if it's two years, if it's next year, if it's today. Yeah, have that confidence for yourself and for your family. Okay, again, give us a call. It's 850-565-1705. Again, that's 850-565-1705. And again, guys, it's a free consultation. We sit down, we go over what you have. I mean, you know, and I can see if I could help you out, you know, and, and the coolest part about, about sitting down is, is understanding that there's always a problem to be fixed.
Whether we can help you with everything or maybe just one thing, you know, who knows? But that's, that's the goal.
[00:52:47] Speaker C: Yet again, as we always say, we love hearing from our listeners. So again, if you have any questions, visit Retirement PlanningPipeline.com on the web. Also, give David a call. He mentioned the phone number 850-565-1705. That's 850-565-1705. Or again, visit retirement planning pipeline.com. a lot of information, a lot of good stuff in today's show and if you missed any part of today's program, don't forget to subscribe to the show in podcast form on Apple, Spotify or wherever you get your podcast. Subscribe to the show on YouTube. Search Retirement Planning Pipeline on YouTube for clips and special content as well. All right, thank you for listening everybody. We do appreciate it and as always, we will talk to you next weekend. The Retirement Planning Pipeline have a great week everybody.
[00:53:35] Speaker B: Thanks for listening to this week's episode of the Retirement Planning Pipeline, the show that helps you take control of your financial future. Whether you are five to 10 years from retirement or just getting started, Retirement Planning specialist David Pipes has the strategies, tools and experience to help you make the most of your nest egg. Take take control of your financial future and get started today by visiting retirementplanningpipeline.com and if you missed any part of today's show or want to catch up on past episodes, be sure to subscribe to the Retirement Planning Pipeline wherever you get your podcasts.
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