[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. Eg.
Retirement planning specialist David Pipes is a trusted voice in retirement planning, helping Americans navigate 401k 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 Tarabokia.
[00:00:52] Speaker C: Hi everybody. Welcome to this week's edition, a 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 Jim Tarabokia alongside retirement planning specialist David Pipes. My co host and David will be along in just a moment. Protect and grow in an uncertain economy Managing risk, comparing income options and planning for the years ahead. Coming up on today's show, we'll explore how rising costs, market declines and and unexpected bills can pressure your plan and how to prepare the importance of giving a dollar, every single dollar, a purpose, plus cash reserves, downsizing, comparing rates and knowing when your plan needs an update. That's all on the way. But first, before we get the show started, I want to encourage our listeners to go ahead and schedule your 100% complimentary consultation with retirement planning specialist David Pipes today. It's a free offering just for listening to this 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. All right, David, welcome in. Jam packed show today. So let's kick things off with this. What should you protect against recognizing the risks that could disrupt your retirement? The retirement plan needs to do more than cover the bills when everything goes according to plan. It also needs room for rising costs, market declines and expenses you didn't see coming. When we talk about retirement risk, it's easy to focus on what the stock market might do next. But sometimes the biggest pressure comes from everyday life like groceries costing more, the air conditioner might quit or your car needs replacing. So start with this question. What would force you to withdraw more money, take on debt, or change your retirement plans? And your answer may be different from your neighbors. Depends on your income sources, spending needs, debts and available savings. So, David, if the market fell while your bills stayed the same, where would your next several months of spending actually come from?
[00:02:53] Speaker D: This is a tough topic, Jim, because, you know, first of all, I, you and you kind of know how I am, especially with a lot of people. You know, a lot of my clients out there, and I'm sure a lot of them are listening and they know this answer already. And I, I really, I just had a seminar last night and I beat this.
I really, you know, I put this into perspective for everyone.
If you're relying on the market for your income, you're just doing it the wrong way, okay? It's not going to work, Right? You can't magically just say, hey, you know, income correlates with market growth. It just doesn't. Right? I mean, they are two completely different variables in life, right? One is consistent, which is income. It's consistent, you know, needs, right? For, you know, whether it's debt, whether it's, you know, just fixed expenses in general, variable expenses, travel, things like that. Those things happen every year, every month, you know, every week, sometimes every day. And then the other one is just market growth, right? And market growth can vary literally, what, every second, every minute? I mean, the market changes every single day. And it's not predictable when you can kind of predict your income and have a good probability of what you need.
So the, the two, the two sides are just not, they're not going to correlate at all. And mathematically, in the mathematical world, when you look at correlations, you don't ever compare something to something else when they don't correlate, right? It doesn't make any sense. Right? So I think we have it all wrong. I think a lot of the financial advisors out there are just doing it the wrong way.
Sadly, the corporations are pushing these people and these retirees to just stay with the market growth and just hope that we don't have a downfall, we don't have a volatile market. And, and it's just wrong. You know, it's not helping the client, it's not going to help the financial advisor in the end, because the client's not going to be satisfied if we do have a, have a down year in the market or even a down couple months. If someone's taking out income, monthly income and if we have a volatile market that year, or maybe this year or next or the next, and we see some months that we have negative 2, negative 3, negative 4% drops, you know, you, then you're starting to realize that you're taking money out of the market when you have a, you know, a, a downside, which, as we all know and as we all say, right, when you lose a percentage in the market and you're taking money out, it doesn't help the growth at all, which, I mean, mathematically makes sense. But Jim, I think, you know, that's the, one of the most key, important spots is if you're out there and you're relying on the market for your income or you are thinking about relying, right? You're maybe you're retiring and you're saying, hey, I've got a 401k and Jim and David, I really, really want to be able to use this money right down the road. So I'm going to take money out of the market when I need it, or maybe I'm going to take money out every month when I need it, or my advisor will. For me, that's just not the way to do it. Okay. And there's a lot better ways to be able to plan for you and make sure that your income is safe and, and it's going to be there. So that, Jim, when you ask me the question of if the market drops and my bills stay the same, I'm going to be able to pay them, right? So I think that's the big, that's the big spot, Jim.
[00:06:09] Speaker C: Okay? So for people who don't know, David and I are based in Florida, I'm based in Tampa and David is based more in the northwest corridor of Florida.
[00:06:18] Speaker D: Pensacola, baby. Pensacola.
[00:06:20] Speaker C: So the one, the one big thing about living in Florida pretty much all year round, you need a working air conditioner. And when your air conditioner goes out, your anger levels go up and you really start having irrational thoughts. There you go.
[00:06:33] Speaker D: Arizona is the same way over there, right?
[00:06:36] Speaker C: Some parts of, maybe even California.
But let's say scenario wise here, the air conditioner breaks and you need that significant repair. It's a significant, it's a big bill, a big, big repair bill.
Your air conditioner breaks tomorrow, time to replace it or time to repair it. Which account in this scenario would you use, David? And what would, what would accessing that money actually cost for people?
[00:07:03] Speaker D: And see, this is where it gets tricky because you have to be able to have a plan for with what I call safe assets Right.
I have every single client, they have a safe, I, I call it, you know, fun money or, or needed money or safe net. Okay? And there is no risk to that money at all. And it is for those things. I mean, we can go along the same way, Jim, not just air conditioner, but look at that hurricane that just hit, you know, us in Pensacola, right? I mean, people are going to have to have roof deductibles, right? I mean, insurance is saying, hey, guess what, pony up. You've got 10, $15,000 that you need to put down towards this roof before we pay the rest of the money. So it works the same way with other products, right? And in other circumstances.
And you know, even if it's a last minute travel or maybe you got to travel for a funeral or maybe you got to, you know, you got to go across country for something and maybe it's a short term trip and the flights are a little bit more expensive. So these funds, I think, you know, as the plan comes along, every client of mine, every single person, you need to have what's called that, that safety net in a safe fund where it's not in the stock market.
Because the moment that you need that money, you can't just guess when the market's going to be up or down. Yes, we've had 10 great years, right? Maybe even, you know, 15, 20 since 2008 crisis. But we've got to understand that the market is not always going to be predictable. And it's just, it'll never be predictable, right? We don't know what days down, what days up, especially in the, you know, in the future here, right? So I think that we've got to understand that our clients are, you know, their necessities matter more than anybody else's. So long term, I love the market and you know, and a lot of my clients have a significant amount of funds in the market. But the problem is when you look at, when a client comes in and you see what their needs are and you see their necessities, there has to be a safety net route where we can touch money if we need it. And if it's for bills, Jim, like you asked me earlier, or if it's for a roof or if it's for an ac, right? Or if it's for a hot water heater, who knows what it's for traveling, right? But for you clients out there and you and a lot of people getting in the retirement phase, that's an important part of your retirement. Having that, that safety net, having that nest Egg to say, hey, look, if something does happen in the market is down, I've got money that I can grab immediately, okay? And it's not going to hurt my portfolio and it's not going to put me in a weird position because now you're in. It's a whole different route now than it was, Jim. I mean, these, you know, these retirees are in a such a different spot. And I was talking about it last night. You worked all your lives, you've had income coming in, you put money away. Now that money is coming out, you have to change the plan. The plan is completely different, right? Because when you were working and you had extra money coming in, maybe you said, hey honey, guess what? We're going to this big paycheck that I'm getting, I'm going to. Or, you know, some of my savings account, we're going to have to pay for a new ac. You don't have that anymore. You don't have that income anymore. You have to generate that income and that's where the plan comes in. Jim. So great point.
You know, great question. I think a lot of retirees miss this and it is very, very important to really individualize and sit down with each client and understand where they're at in their lives and kind of put the plan together for them. Right? Because everyone's plan is going to be different. Everyone has different expenses, everyone has different roofs, everyone has more, maybe some more rental properties. The others, everyone.
So your expenses are going to change with really the client that you're dealing with. So to be able to understand that and take what you need to un.
[00:10:58] Speaker E: To.
[00:10:58] Speaker D: To really give the client that, that safety net and the safe valve to say, hey, you know, I'm covered, right? That's an important thing in retirement.
[00:11:07] Speaker C: No, you mentioned it right there too. I mean, there are some people, some retirees, some people may be approaching retirement that maybe have two or three properties. Well, they may own those properties. Things go wrong on those properties. And we want to remind everybody that you can't predict every expense or market move, but you can prepare for the pressures that most likely will affect you. A retirement plan should account for your regular bills, changing costs, and the occasional expensive surprise that is the air conditioner breaking anyway, which would be the hardest for your retirement budget to absorb? Higher monthly bills, a market decline, or a major unexpected expense. Well, let's talk about how your income, investments and available savings work together and where your plan may actually need attention. Visit retirement planningpipeline.com or give us a call at 850-565-1705. Again, that phone number, 850-565-1705. Schedule that complimentary retirement consultation. All right. Later on in the show, how can you tell if your retirement plan needs an update? But up next, growth without unnecessary risk. That's on the way. You step aside. This is the Retirement Planning Pipeline.
[00:12:18] Speaker B: Visit Retirement Planning Pipeline to schedule your free, no obligation, complimentary consultation today. The Retirement planning Pipeline will return in just a moment.
[00:12:37] Speaker C: You don't have to be afraid of
[00:12:40] Speaker A: what you Retirement should feel secure, not uncertain if market swings have you feeling uneasy. You've probably heard about annuities, but what aren't they telling you? You deserve the full story. That's why we created a free guide that explains the good, the bad and yes, even the fine print. Inside you'll learn how annuities can create guaranteed lifetime income, what fees and surrender charges may apply, how the different types types of annuities really work, and whether an annuity makes sense for you. It's clear, straightforward information so you can make a confident decision. Call Amerilife now. To get your free guide to annuities, the good, the bad and the fine print. Call 866-554-9546. That's 866-554-9546.
[00:13:21] Speaker B: Silex annuities contain withdrawal charges, interest and bonus recovery and market value adjustments that may apply to withdrawals made during the withdrawal charge period. Silox annuities are products of the insurance industry and not guaranteed by any bank nor insured by FDIC or ncua. Ncusif Not a deposit not insured by federal government agency. Guarantees are based on the claims paying ability of the issuing insurance company. Restriction supply may only be offered by a licensed agent. Welcome back to the Retirement Planning Pipeline alongside retirement planning specialist David Pipes. Here's your host, Jim Tarabokia.
[00:13:51] Speaker C: Welcome back to the Retirement Planning Pipeline. Thank you for making our show a part of your weekend on WCOA News Talk 104.9 with new episodes every Sunday at 10am and as we dive back into today's show, reminder, if you like the content we're providing, please subscribe to our YouTube page YouTube.com and search Retirement Planning Pipeline for weekly video highlights and special content. All right, moving on here with segment two, our next topic, David Growth without unnecessary risk, making progress towards your retirement goals. A higher return can look appealing, certainly especially when your expenses are climbing. But before pursuing that return, consider what you could lose and whether you'll need that money before it has Time to recover. Meaningful progress means improving your ability to fund retirement while taking only as much risk as your finances can handle. The goal is to make investment decisions that support your income needs, your timeline, and the retirement that you want. Keep the goal in view. Measure progress against what your retirement requires. Requires the income you'll need, how long your savings may need to last, and flexibility that you actually want. Recent market winners or a friend's impressive investment results can make your own plans feel a little bit less exciting. But as we talk about on this show, never compare yourself to your friends or your family or your neighbors. Your friend may have a different timeline, different income sources, or a greater ability to absorb losses. That's all well and good, but that is not your, your plan. Before changing course, ask yourself, what job would this investment do in my plan? And the potential benefit. Is that potential benefit worth the added risk? Review whether your investment mix still fits your retirement goals as you approach your retirement and your spending needs actually change? And David, I think that's an important distinction because investing isn't about winning a competition with your neighbor or chasing whatever performed best last year. It's about making sure that your money can support the retirement that you actually want. So how should someone evaluate their investment strategy as they get closer to retirement? What factors like their timeline, expected income needs, other sources of retirement income, and the ability to handle losses should determine whether they stay the course or actually adjust their portfolio.
[00:16:00] Speaker D: Everything should change, Jim. Everything at the moment that you get even to, you know, close to retirement, I'd, I'd say probably two or three years. And it's, and it's in your mind, you know, oh, look, I'm going to retire here. Everyone has that, that, that timeline for themselves that, you know, every client that I have is at least has a number or an age, you know, hey, David, I'm going to retire here, or I wish I could retire here and there. So it's really about what the client wants first when they want to retire. But everything needs to change after that.
And the sad part is there's no changing when you, you know, no one's want you to change. I mean, you think about it and you know, all your listeners out there, you guys know, I mean, you get out of, you know, you start to retire, there's this 401k company, the IRA, whatever you have, doesn't come to you and say, hey, let's start to change your plan around, right? I mean, we gotta, we have to change it. You know, though they want the money stayed there, they Just want to change the investments inside of the money, right? Which is still in the market, and that's it.
And that's just not the way to do it, right? There has to be a allocation method to where you have safety with your income side and you also have your risk with your growth. And that's the point of the stock market, folks, is for growth. The point of the stock market is not just a have your money inside and pick it out when you want, right? You're invested in the stock market insecurities for accumulation.
And, you know, I think that a lot of the times too, we have to understand that when income needs the most is when you do retire. And that's the biggest part about retirement. So if income needs are there and they weren't needed when you weren't retiring, everything needs to be different.
Everything, right? The plan has to change. You need to understand how much money's coming in, how much money's going out, right over adjust and really overestimate what you're going to need because you don't want to have that month or a couple months when you're feeling like you're not having the retirement that you can live.
And, you know, you don't want to underestimate. I have a lot of people that will come in and say, well, I only need this. And it's like, well, yeah, you only need that. But guess what? In a year you're going to say, david, I would really love an extra two or three thousand dollars a month or, hey, you know, I would rather be able to use some money for, you know, for traveling or for this or for that. You don't want to limit yourself. And I think that's what a lot of people do, Jim, is people are limiting themselves when they retire because this brainwashing mechanism that everyone, you know, every company and every financial advisor wants to throw these, throw these, these clients is, is, well, we've got your money and you can only take out this much.
Don't ever let anyone tell you what you can take out, okay? The market cannot dictate that. I don't care what anyone says. Mathematically, any time in your life, you cannot. Or any financial advisor, no financial guru can ever predict that you're going to be able to take out money out of the market for a certain amount of time until you die. No one knows when you're gonna die, okay? The day, the month, the year, the decade. No one knows. And no one knows what, what the market's going to do from now to then.
So Two unknown factors that everyone wants to go ahead and say, oh, well, I know this, and here you go. Here's how much you can take out. It's all bull crap. It's all bull crap. Instead, listen to the math. Do the math. Understand the plan.
Make the plan for yourself. Have an advisor help you with the plan, right? And that's Odyssey. I tell every client when I sit down with them, look, I know who you are. We need to sit down and go over you first, right? What are you looking for in retirement? Right? What is there? What's not there? What do you like to do? And then we adjust and we make sure that we're overestimating those plans and making sure the income is stable and consistent. And then the growth comes after, right? Because growth is what? Growth? We aren't looking to touch that growth short term, okay? And a lot of times we don't realize that until you bring it up and the light bulb goes off, right? And you say, okay, well, now that we're retired, right, we grew our entire lives, so now that we have to take money out, why would we be doing the same thing to our portfolio that we did our entire lives when we were working?
It makes no sense, right? So it's got to be opposite. And that's where I really, really think that, you know, all those factors that we talked about, Jim, are going to come into play, but it's going to depend on the client first. Like I always say, client first. And then everything plans around and plan is going to be different for every single person.
But also, don't have that risk to your portfolio. If you are taking income, there should be no risk to your income at all. And I truly believe that. I mean, mathematically, I will set up my clients with income that has no risk of losing income every single day, rather than being able to just say, hey, we're going to hope the market does well in the next 10 years. Right? That's just not. And I love the stock market. I mean, if, you know, if you guys could just understand my clients and me and understand what I talk about on a daily basis. I love stocks. I love corporation.
I love being able to, you know, to invest in great companies at solid prices. But the main thing is in retirement, you don't have that risk to make, right? Because sadly, no, nothing is predictable in a short amount of time. And that's just regular statistical math. So you have to be careful and make sure that you're covered first. And I think right now, most retirees, right, almost all of them are not getting the right direction. And that's why I'm here, Jim. I'm here to help in any way I can and, and really to, to put these people and educate these people on what their money can do for them.
That's way better than leaving it where they're at.
[00:22:05] Speaker C: Yeah. And growth should support the retirement that you want at a level of risk your finances can handle. So evaluate potential returns alongside of possible losses, diversification, costs and what you'll need to do with that money. Considering an investment because it returns look attractive, that's the question you have. Let's discuss the risks, the costs and the role in your retirement plan and whether it fits your income needs and the timeline. Give us a call today at 850-565-1705 or visit us on the web at retirementplanningpipeline.com this is the retirement planning pipeline,
[00:22:40] Speaker B: helping you take control of your financial future. This is the retirement planning pipeline.
[00:22:50] Speaker C: Every October, the ordinary gives way to the eerie when ghosts, goblins, skeletons, and all the things that go bump in the night come crawling out of the shadows. And somehow we're perfectly comfortable opening the door to strangers and giving them candy. But there's another kind of scary that tends to show up around this time of year. You may know it, you may have experienced it, the financial scary. I'm Jim Tarabaghia for the Retirement Radio network powered by Amerilife. As we enter the final quarter of the year, millions of Americans are thinking about the celebrations and ahead. But for some, there's another feeling creeping in the uncertainty that comes with their financial lives. NFCC CEO Mike Croxton details to CNBC the financial stress Americans are facing this fall. There's a tipping point where consumers free cash flow at some point will not amortize their outstanding unsecured debt. And that issue is simply creeping its way up the income and age ranks. And that's really what the forecast is telling us this quarter. Maybe it's the thought of opening your investment statement after a rough week in the market. Maybe it's an unexpected medical bill. It could be inflation quietly eating away at your purchasing power. Or maybe as retirement gets closer, there's one question that keeps coming back. Will I have enough? Planning for retirement means confronting a future none of us can predict. But even with today's financial environment creating uncertainty, BlackRock's head of retirement Jamie Madera tells CNBC, There can be reason for optimism when it comes to retirement readiness.
[00:24:24] Speaker D: What we found this year was some great news, right? People are actually much more confident about their retirement readiness. So 68% of savers think they're on track to have the retirement that they want, which is great news. Like they have optimism. They're confident about it.
[00:24:41] Speaker C: Maybe there's a lesson behind the financial scaries. The things we don't understand tend to feel bigger when we're standing in the dark. Sometimes the best thing you can do is turn on the light. Take a closer look at your retirement plan. Ask the uncomfortable questions. Understand where your income will come from, what risk you may face, and where there may be gaps. Because you can't predict everything that lies ahead, but you can prepare for it. And while the ghosts may disappear when Halloween is over, financial uncertainty doesn't necessarily disappear. Here with them. For the Retirement Data Radio Network, powered by Amerilife, I'm Jim Tarabokia.
[00:25:24] Speaker B: Planning for retirement doesn't have to be overwhelming. Get expert insights, tools and personalized strategies to secure your Future. Visit Retirement PlanningPipeline.com today. Your retirement, your plan, your peace of mind.
[00:25:40] Speaker C: This is the retirement planning pipeline. If you want to catch up or even listen to previous episodes, go ahead and subscribe and listen to the show in podcast form on Apple, Spotify or whichever platform you enjoy your podcasts. All right, stay with us because coming up, cash reserves, downsizing and comparing rates. But right now, as we do each and every week, it's time to unveil this week's financial Wisdom. Quote of the Week.
[00:26:02] Speaker B: And now for some financial wisdom. It's time for the Quote of the Week.
[00:26:10] Speaker C: And our Financial Wisdom Quote of the Week comes to us from American inventor and businessman Thomas A. Edison. Mr. Edison said, quote, when you have exhausted all possibilities, remember you haven't. Our thanks to Thomas A. Edison for providing us with this week's Financial Wisdom Quote of the Week, Interest rates, cash and your retirement. Balancing income ready access and long term growth. Changing interest rates affect what you earn on savings and income options available for retirement. But a cd, bond or annuity deserves a look beyond the quoted rate. How long do the terms last and when can you actually access the money? David when it comes to retirement, one of the biggest decisions that people face is figuring out where to put their money. They want their savings to earn a competitive return, but they also want to know that the money will be there when they need it. And there's a lot of options out there, savings accounts, CDs, bonds, annuities and cash reserves. But here's the thing. The highest advertised rate doesn't necessarily mean it's the best choice for your Retirement plan, you have to look at the terms, the feel or the fees. Excuse me. And when you can access that money and whether that return can keep up with rising costs. David, when you're helping someone decide where to position their retirement savings, how do you determine which dollars should remain accessible, which might be suited for predictable income and which need the opportunity for longer term growth?
[00:27:31] Speaker D: Yeah, I think, you know, the first thing we do is, is we look at where the income needs are. And that's the most important thing, right? I mean, I can't stress it enough. Everyone wants to talk about, well, we can grow. No, I mean the, the income needs. The most important part, assessing. What did you, what did you make right, when you did work or, you know, what, what are your fixed expenses and what can we threshold to where we know that you're very, very comfortable in retirement. Then, then we assess where the money is, whether it's in the safety net or whether it's any, you know, growth and risk.
I say this to every client. If we put money in full risk, which in the market, I hope that, you know, you're going to be risky with it, obviously, because, I mean, you know, that's the point of the market, right? And I tell all my clients that if you're in the stock market, I'm a big fan of being risky. That's why you're there. That's how you created your growth. If we do that, okay, you have to be able to tell yourself that, you know, you don't want or need to touch that money in the next five years, okay? Because in my mind, when I'm looking at a client, when I'm, you know, when I'm diversifying assets and making sure that, you know, I have safe assets. And when I mean safe, I mean no risk.
No risk at all. So let's get that, let's get that, you know, very, very clear, guaranteed or, you know, guaranteed no loss, okay? Those are no risk assets, okay? And then the other side is risk.
All right? Now if we have a great year, okay, yes, maybe we touch some of the growth on that, on that side, but that should not be predictable. You can't just guess what the market's going to do the next year or the next five years, right? So I always tell a client, we're going to put enough money away in a safe place, right? Or, or an income place to where we know that we're taking care of your needs right now so that we know the needs or overestimated needs are taken care of. And then the rest of the growth and the rest, you know, that's all extra money that you can use or you can play with. But when you can take care of that income first and you can make sure that the safety nets there where a client, if the market falls and skyrockets down and we have a 40%, 50% drop, my client will not have a problem with using their income for the next five years. And that's where I think the, the calmness comes down is when a client can say, hey, I'm, I'm good. You know, that money's going to grow again because I don't need to touch it, right, David? And I took care of my income needs first. That way I know that if that happens or if it does happen, I won't have to touch it. And I think that's the biggest part, Jim, that we're not talking about the most is, you know, is we're not, you know, the, the industries now aren't trying to take care of that income and safety because obviously, you know, they make the more money on what, on riskier assets. And, you know, and I just think that we've got to come together as really as an industry.
And these retirees need to have a client first, you know, organization to help them. Because when I walk around and see these portfolios and I meet the client, I know their goals. I'm like, holy crap.
You know, they could be stuck in, in the matter of a week or two weeks, right? I mean, they have plans to either maybe spend money on their daughter's wedding or, you know, I have clients that want to put, you know, buy a new condo or, you know, have, you know, have expensive trip plans, and nothing is taken care of for that to happen.
So I think a lot of the times, you know, when we take care of income, everything else becomes just easier, right? Then the predictability of being able to predict what we need in the future becomes less of a thought because we already know that we're covered. Does that make sense, Jim?
[00:31:40] Speaker C: Absolutely. Absolutely. And a lot of it, too, what you're saying, and I want to make this clear, and we talked about it earlier in the show, it's having that right mental mindset. We've talked about that on previous episodes with clients understanding where they are mentally and emotionally with their retirement planning and not. And this is really important. I think I'm glad we brought it up in the first segment. I think we should bring it up again, David. The importance of not comparing your retirement journey, your retirement planning to someone else you mentioned in there, we need corporations or we need more financial advisors or retirement planning specialists to be more maybe and these are my words, not yours, I'm paraphrasing, but more customer based, more about the client. And that's what you do so well and that's what you do differently in that you don't use a plan that is for everybody. A plan that you know is foolproof and might work. It doesn't really exist. You're more client based and you tailor to your clients needs.
[00:32:37] Speaker D: Well, I have to, you know, and I think everyone should obviously. But the problem is, is these corporations are too big and they've got all this volume and they've got all these retirees, they got all this money, you know, they can only train their advisors to do so much, you know, and, and I'm blessed enough, the Lord has blessed me to be able to do what I do with mathematics and the mindset that I do have. But I hope to make an impact and, and you know, hire advisors under me that can, I can teach to do the same thing. Right. Because the clients need it.
[00:33:10] Speaker C: Right.
[00:33:10] Speaker D: You know, we don't, we don't. This world, this country does not need these retirees to, you know, waste away their money in retirement and then we have a bigger problem down the road. So I mean I, I stress to pretty much every person that, that I meet that ever ask me, you know, why I do what I do. It's to make an impact on the people, you know, and, and on, and even on advisors, man, I mean I, I can't stress enough how many times I talked to another financial advisor and they're asking me questions and I'm like, look man, like, you know, you don't get it.
The moment that we stop listening to the big corporations that hold all the money is the moment that we start thinking about the clients. Right. You know, and I think that when you do that, you know, and you're able to build your business around the client, everything becomes a lot easier. Now it's harder because when you get out of college and things like that, you're not able to just go out and start your own business. And I understand that. You know, and that's why we are in the position that we are, Jim, is because we, we've got people getting paid salary, positions to, and being trained to do, to say things that a corporation is telling them to say. And it's just not okay. Right? I mean, I'm not going to go to Walmart or Target and ask about, you Know, a giant food. Why would I, why would I do that? They're not, they're going to say, oh no, ours is better, you know, so it's the same thing with, with financial. I'm not going to go to one builder, one home builder and say, hey, I'm going to go to a blank, blank builder. What do you think about them?
No, duh. They're gonna say, oh, well, you know, they're not good enough. They're not like us. So I think that we have such a, a, a, a big what? A monopoly, right? There's these corporations have, have a monopoly on the funds, right? Big 401k money that, you know, all the assets that are in there and they're able to take advantage of it. And I think that, you know, I know that I'm making an impact and, and I love, love what I do for that reason.
And, you know, I think for your listeners out there, you know, look out for yourself. Right on. Try to get as much education as you can from the advisor and if they can't give you it, hop to the next one. There's tons of us out there, trust me. Okay, but every question that you have, it needs to be answered the proper way and explained to you and you should know what your money's doing and why it's doing it for you. Now, should you know what corporations you're in?
[00:35:34] Speaker C: No.
[00:35:34] Speaker D: I mean, obviously there's some things that you don't want to know and that's, that's okay. But the plan, the gist, the understanding the, the mathematics, you can easily teach that to a retiree. Just the basics and it's not being taught, Jim. They're just relying on the company to do whatever they're doing. We're going to do this and we're going to do that. It's like if, if, if they, all these companies knew about the 08 crisis, they wouldn't have been invested. So I mean, how can you, you can't listen to them, you know, and you have to be able to understand at least a, a good bit of it to understand where your money is and where the safe side is, where you're taken care of for income and where you can actually grow and, and have your risk.
[00:36:16] Speaker C: So, and, and we want to. As we wrap up this segment, we do want to remind everybody the right mix provides access for today, income for upcoming needs and room to fund later years. Compare rates alongside each option's terms, risk and purpose. If you have a CD coming due or extra cash, you're unsure how to use. Let's discuss how much you need accessible and how the rest fits your retirement goals. Give us a call at 850-565-1705 or visit us on the web at retirement planningpipeline.com Coming up next, review changes in spending, income, health and family needs. This is the Retirement Planning Pipeline will be right back.
[00:36:55] Speaker B: Your retirement questions deserve real answers. Call 850-565-1705 to schedule your free no obligation consultation today.
Missed part of today's show the Retirement Planning Pipeline is available wherever you get your podcasts and@retirement planningpipeline.com welcome back inside
[00:37:22] Speaker C: the Retirement Planning Pipeline, the show that delivers expert insights, actionable advice and real world financial strategies to help you retire confidently and comfortably. I'm your host Tripp Taraboki, here alongside my co host and retirement planning specialist, David Fibes. Thank you for making our show a part of your weekend on whichever platform of your choosing.
[00:37:42] Speaker B: Come on down as we test your financial knowledge in Right or Wrong.
[00:37:52] Speaker C: All right, it is time to test your financial knowledge with a game called Right or Wrong. The rules are very, very simple. I pose a series of questions and or statements to David and David will tell me if those questions and statements are right or wrong. If you're listening on the radio and podcast side, watching on YouTube, feel free to play along. All right, here we go with our first right or wrong. Here it is, David. Right or wrong. Every retiree should keep the same fixed amount of cash available, regardless of their expenses or other income sources.
[00:38:29] Speaker D: I mean, I think everybody can answer this one, guys. I mean, obviously it's wrong, right? And everyone's going to be different.
Now there is a certain threshold that I would say that you, that you need, right? And I think everyone should at least have that much. Now a lot of people should have different amounts, right? So including myself. And the reason why I say that is because, I mean, you know, there's so many clients that I have that have different amounts in their checking and savings and, or in a money market or whatever it is. But it's really depending on income needs, you know, fixed expenses, kids, you know, what time of year it is, right?
Car payments, things like that. So I think that a lot of times knowing your client is just the most important thing. And for all you out there, I know for a fact that a lot of you don't know your advisor that well or even if you, you know, you think you don't have an Advisor in your 401k or something, you do, you Just don't know. And that's the problem is if anyone is going to be able to, to, to help you out with your finances, you know, they need to know you, they need to have a relationship with you. And I think that's what, what, what I build here with the team that I'm, you know, that I'm creating is, is understanding our clients first, creating that relationship, and then everything comes after that, because now we know our client. That's the most important thing in the financial world.
[00:39:52] Speaker C: Okay, we just spoke about annuities and our booklets. That is available to you for free. The good, the bad and the fine print. Again, retirement planningpipeline.com to request your free copy. And this next one, Right or Wrong, has to do with annuities. So here we go. Right or wrong. When choosing a CD or annuity, the product offering the highest advertised rate is automatically the best choice.
[00:40:17] Speaker D: Not automatically. That's absolutely wrong. But I will say that, you know, there are a lot of companies out there that offer different rates. Every single one of them had different rates. Okay.
I do believe, okay, that a lot of the times, the bigger the corporation, all right, the easier it is to give a lower rate.
[00:40:39] Speaker C: Right.
[00:40:40] Speaker D: Because they're, well, more well known, so they can, you know, they can put out that money. I think a lot of people are missing some of the corporations that are still big that just aren't that well known, you know, and that's. I, I use a lot of, you know, a lot of corporations and businesses in my models.
If I'm giving people, you know, fixed or fixed interest or even income, income's a big one.
I think that anytime that you're looking at guaranteed income for life, you're looking at the highest rate, and you want to do that now. Unless a company is, you know, not, not financially. Right. Which obviously we don't. I don't write those companies. But I think that, you know, you should be looking at rates, but you should also be understanding what they have. Some of them might have longer terms, so you have to realize that, too.
Look at where the terms are, how long I'm locking my money up.
And also look at, you know, what the income values are. Right? And is my payout the highest? Right. Or for CD rates, you know, or, you know, for fixed annuities, you know, is that rate going to be, you know, different? You know, is it guaranteed for a certain amount of term?
Do I have the ability to be able to get out when I want to? Do I have liquidity options? Right. I mean, if something happens to me or if, you know, there's a lot of long term care riders on some of these products, you know, so can I get my money out if I need it, right? Or, you know, do I have access to a free withdrawal every year? How much do I have access to? Right. Different companies have different amounts, so all these things matter. But the main part is that you're not buying a product.
It's fitting in the plan.
And that specific investment option is a part of the plan.
And you have to be able to understand that how it correlates with a plan, whether it's liquidity or whether it's, you know, when to take it out or if it's the interest is paying for something else, right. And if it's not accumulating. So the goals are all around, but it depends on the client first. And I think that, you know, obviously you're not, you're not just looking at just the rates, right? There's more involved.
[00:42:50] Speaker C: So. Okay, moving on with Right or wrong. David, Right or wrong. Once retirement approaches, the safest strategy is to move all of your retirement savings into cash.
[00:43:01] Speaker D: Absolutely wrong.
I mean, I think, Geez, Jim, I mean, almost all these are wrong. You're always asking me questions that are wrong. You know, I don't know what's going on here.
[00:43:10] Speaker C: We're like one for our last 10 here. We're batting 100 in the last three episodes of right or Wrong combined.
[00:43:16] Speaker D: But no, I, you know, obviously it's not there and everyone knows that. And a lot of people have a lot of cash. I don't, I'm never a fan of cash. You can always make more money somewhere else.
But having a certain amount in your portfolio put aside for that safety net is important for every single person. And I, I tell all my clients that you need that there, right? If something happens, boom, it's there and there's no risk to it.
Now, you know, your assets need to be working for you in the ways that you need them to work for you, right? Income. Cash does not, is not going to be the best thing for income, okay? Growth, obviously cash is not the best thing for growth, all right? Inflation.
Cash is obviously not, not the best thing for inflation. So I think we can all answer that question. I think, you know, all, everybody who's listening to this podcast and to this, to this show is, is, is, is going to be able to understand that that cash is just not there, right? Reinvesting, investing in something, having a statement that is important, right? And that's, that's that. That's huge. But be able to, to, to make your money. Make money.
[00:44:23] Speaker E: So.
[00:44:23] Speaker C: And our final right or wrong for this edition of our favorite game. Once you've created right or wrong, once you've created a retirement plan, you can leave it alone as long as you stick to your original budget.
[00:44:37] Speaker D: Never, never leave a retirement plan alone. Ever, ever, ever. And if you. There's one thing. I'm glad this is the last question on here, guys, because there's one thing, one important thing that I want anyone to take out of this episode. Your plan is going to change and your plan is never going to be the same for your entire life. Okay? It's just not right. It wasn't back then. It's not the same as now. You have kids, you have grandkids, you got more grandkids. You know, your kids aren't doing everything that you're telling to do. You got a new buy a new car when you don't know when, when you want to buy a new car. You got maybe spend some house bills. When you don't know about the house bills. You got a vacation that's randomly thought about by your wife that I get all the time. You know, I mean, so I know a lot of you guys do. So you have to be able to adjust. And that's where as a financial advisor and as a people, as a, you know, a client first financial advisor, you have to, I have to be able to know my clients and understand that they're going to be able to, to, to change. But these financial positions have to change with them. Right? And that's why I think it's so important where the market is not predictable. So we have to have that safety route, right? To be able to understand the income to, to, to take that income and make sure it's there. But obviously other things change. So now we can start changing things up and maybe adding more income or if we say, hey, you know, we don't need much income and maybe we start reinvesting some money, so everything's gonna change and it just matters about which way it changes now. You don't know where it changes. That's, that's the, that's the whole idea. But you know, that's where I think. And it goes back to what I said earlier, Jim. You know, all these corporations, all these big companies, all these financial advisors at all these big name firms do the same dang thing.
They're invested in the same thing. So it's like they're not changing, you know, like for your 401k or your IRA roll over. All they do, they're doing is putting in the same thing under their name, you know, and they're going to say, oh, you're going to take money out and I'm going to have it in this. You know, your portfolio should be changing, you know, and that's just, that's just obvious. You know, things have to be looked at and things have to be assessed. But I think one of the biggest things is, is that, you know, at first when you're retiring, it needs to change immediately. You know, all your money in the market should not be there, period. That's just literally the opposite of what the retirement institute says.
You know, now you're switching up to income and less in risk. And everyone still wants to say, okay, well, I'll listen to the financial advisor. That's, that's by the firm. So I'm just going to leave all my money in the stock market. And it's like, where is, where's the smart people at? You know, let's be smarter, let's be more educated. Let's understand that these kiddings, these things can't happen anymore. We have to be able to change them as they go.
And, you know, down the road, if things change, great, we're able to change because we already changed the plan before. If you don't change now and something drastically happens, you're done. You know, there's not much somebody can do. And I mean, yes, you can improve some stuff, but, you know, you're going to have losses and you're not going to be able to have what you could have had if you changed it early and you did the right thing and educated yourself when you retired.
[00:47:55] Speaker C: Well, as we wrap up today's show, we do want to remind everybody that your retirement decisions should work together to support the life that you want and the expenses that you need to cover. So be sure to visit us on the
[email protected] or pick up the phone, give us a call at 850-565-1705 and schedule that free no obligation consultation. If you missed any part of today's show, don't forget to subscribe to the program in podcast form on Apple, Spotify or wherever you get your podcasts. And a reminder to subscribe to the show on YouTube. Search Retirement Planning Pipeline on YouTube for clips and special content as well. Thanks for listening. This is the retirement planning Pipeline. We'll talk to everybody next weekend. In the meantime, have a great week. Everybody.
[00:48:37] 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 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 podcast.
[00:49:13] Speaker A: Foreign.
[00:49:20] Speaker B: Not affiliated with the United States Government, Amerilife agents do not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warrant warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or specific result. All copyrights and trademarks are the property of the respective owners. Amerilife assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.
[00:50:00] Speaker C: Charles David Pipes is an individually licensed and appointed agent. Learn more at retirement planning pipeline.com 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. 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. Any comments regarding safe and secure products and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by Brookstone. Indexed or fixed annuities are not designed for short term investments and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract.
[00:51:11] Speaker A: Fixed annuities, including multi year guaranteed rate annuities, are not designed for short term investments and may be Subject to restrictions, fees and surrender charges as described in the annuity contract, guarantees are backed by the financial strength and claims paying ability of the issuer. Retirement should feel secure, not uncertain if market swings have you feeling uneasy. You've probably heard about annuities, but what aren't they telling you? You deserve the full story. That's why we created a free guide that explains the good, the bad and yes, even the fine print. Inside you'll learn how annuities can create guaranteed lifetime income, what fees and surrender charges may apply, how the different types of annuities really work, and whether an annuity makes sense for you. It's clear, straightforward information so you can make a confident decision. Contact Amerilife now to get your free guide to annuities, the good, the bad and the fine print. Call 866-554-9546 or go to annuitygoodandbad.com that's annuitygoodandbad.com Sidelex annuities contain withdrawal charges, interest
[00:52:08] Speaker B: and bonus recovery and market value adjustments that may apply to withdrawals made during the withdrawal charge period. Sidelix annuities are products of the insurance industry and not guaranteed by any bank nor insured by any FDIC or NCUA. NCUSIf not a deposit, not insured by federal government agency. Guarantees are based on the claims paying ability of the issuing insurance company. Restrictions apply, may only be offered by a licensed agent.
[00:52:26] Speaker A: Well, American seniors are getting a raise next year in 2027, at least those who are Social Security recipients. The cost of living adjustment has officially been announced for the new year. And joining me here now to talk about that is Bill Sweeney, senior Vice President of Government affairs for aarp.
Bill, thanks so much for being here. Really appreciate your time.
[00:52:47] Speaker E: Thanks, Matt.
[00:52:47] Speaker B: Good to be here.
[00:52:48] Speaker A: It's great to have you. And I know that, you know, it's a bit of a good news, bad news kind of a situation anytime we get a COLA announcement because, yeah, you do get a raise, but you get a raise because there has been inflation in this current year. Right? I mean, what give us, give us kind of the top line here. How much are seniors going to see in their checks as far as an increase goes in that benefit amount next year?
[00:53:10] Speaker E: Well, the 2027 cost of living adjustment, the COLA, is 2 point is, I'm sorry, 3.6%.
And that is for the average person on Social Security, it's going to be about $75 a month or $900 a year. And as you mentioned, it's not, you know, sort of Extra money. It is, they're really designed, it's based on the inflation rate that happened over the course of the last year. And it's designed to help you keep up with those high, higher prices. And so it isn't. Most people are not going to sort of feel like they've got a lot of extra spending money. It's going to be just barely keeping you up with the cost of rising groceries, rising gas prices, electric rates, and all the things that people are struggling with right now.
[00:53:53] Speaker A: Yeah, and it's interesting too, because the way that the Social Security Administration sort of bases the calculation of COLA adjustment each year is based on a particular measure of inflation, the cpi, the Consumer Price Index for. It's like urban wage earners and clerical workers, I believe is the full name of it.
You'll notice it's not the CPI for American Seniors or anything like that. I mean, that seniors have sort of different needs as far as their costs. Right. And so what you talked about is kind of barely keeping up. How are seniors sort of dealing with the inflation, the rising costs and all of that these days? Because as I say, their, you know, costs and expenses do differ.
[00:54:43] Speaker E: Well, they sure do. And when we ask people what it would, you know, whether this COLA would be enough to keep up with the rising prices, 76% of them said, no, this wouldn't be nearly enough. And when we said, oh, how much would be enough?
The vast majority of people, more than 70% of people, said a COLA of 5 to 8% is really what they would have needed to keep up with rising prices. And, you know, Medicare premiums are going to come out next month.
A lot of people are going to see those eat up a big chunk of their Social Security COLA as well. So it is a really, it is a really mixed story and it's a really tough time to try to figure out how to make ends meet with all the prices of everything going up, but especially health care, drug prices, all of that is a, is a huge driver of high cost for seniors.
[00:55:32] Speaker C: Right.
[00:55:32] Speaker A: And you sort of couple that with this sort of longer term outlook for Social Security and that seniors don't find a lot of comfort there after say 2032 or so, when the trust fund is slated to basically go insolvent. Now that, as we've talked about before, that doesn't mean that benefits would then go away. But just, just clarify here, seniors could see a drastic reduction in their checks from month to month if that were to happen.
[00:56:01] Speaker E: Well, 2032 is a hard deadline that needs to get that Congress needs to get acting on right away.
I think it's important to note that that is six years away and that we have an election coming up in November. The people get elected to the United States Senate who serve six year terms. They will be in office at the end, at the end of their term.
They will need to decide what to do with Social Security. So this is becoming very real now from an electoral point of view and from, from a voter point of view. This is the time to, to really be focused on it. If you weren't focused on it before, but the truth is Social Security can pay about 80% of benefits kind of indefinitely at this point. The issue that Congress needs to fix is about that 20% shortfall that would happen in 2032 if they don't act. The good news is Social Security has been around for 91 years. That's never happened. We've come close in the 70s and the 80s. Congress has never let that happen. I believe that Congress won't let it happen because there's going to be a lot on the line for them if they were to do something like that to so many retired Americans and to the 185 million of us who are paying into Social Security right now. And we expect to get the benefits that we have earned. And so I think as voters go to the ballot boxes and start raising their voices about this, I think that can help clarify things for members of Congress who, who need to be thinking about this a little bit more urgently than maybe they have in the past.
[00:57:21] Speaker A: Yeah, if nothing lights a fire under someone on Capitol Hill, I feel like then electoral consequences. So we'll see, we'll see how that goes.
But yeah, I think I kind of tend to agree with that, that that will light a fire under them as well.
Now for folks who needs, you know, maybe some more information about Social Security, about, you know, how to sign up and all of that, I mean there are, there are resources online, there are things that they can also do in person at local Social Security offices, those that were not closed due to budget cuts the past couple of years.
But what can people do? What kind of information is available for, for folks who are maybe pre retirees who are trying to get a better idea of what their benefit amount is going to look like when they do retire.
[00:58:12] Speaker E: Well, I encourage Everybody, whether you're 18 or 50 or older to sign up for a Social Security account. Go to the SSA.gov the Social Security administration website. Sign up for a My Social Security account. Anybody can do it.
And not only can you see all the information about every job you've had shows my first job when I was 16 working at McDonald's, that that money is there. It shows up on the, on the, on the list of jobs that I've had. It tells you how much you can get if you claimed at 62 or 67 or 70.
But it also allows you to do stuff that you used to have to take a half day off of work to stand in line at an office to do. So you can get a new. If you lose your Social Security card, lots of people do that. You can go to the website and request a new new one from the comfort of your own home. There's lots of the things that you used to have to go to an office to do you can actually do now on the website. So we really encourage people to do that. Save the visit to the Social Security Administration for when you have a really complicated problem. Deal with some of these easier ones at home on the online.
[00:59:17] Speaker C: Well, very good.
[00:59:18] Speaker A: And I'm sure also that there are a lot of
[email protected] I would imagine for folks as well.
[00:59:24] Speaker E: We have a tremendous amount of
[email protected] SocialSecurity where you can get all kinds of information about when to claim and what it means and what you should be thinking about as you make that tough decision.
As well as aarp.orgcola where you can get involved in the fight to save the COLA to protect this cost of living adjustment. Make sure that Congress hears from you and understands the importance of this as we go forward.
[00:59:48] Speaker C: Yeah.
[00:59:49] Speaker A: Vitally important for American retirees. Well, Bill Sweeney, senior Vice President of Government affairs for aarp, thank you so much once again for being here. Really do appreciate your time.
[00:59:58] Speaker E: Thank you, Matt. I appreciate you.
