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.
[00:00:18] Speaker B: You're tuned in to the Retirement Planning Pipeline, the show that helps you take control of your financial future. Whether you're five years from retirement or just getting started, we've got the strategies, tools and experience to help make the most of your nest egg. Retirement planning specialists David Pipes and Steve Zarek are two trusted voices in retirement planning with over 30 years of combined experience helping hard working Americans navigate 401k rollovers, income planning, tax strategies and everything in between.
[00:00:49] Speaker C: Thanks for joining us. I am David Pipes and if you're wondering how to get yourself on the right track for retirement or how to turn your savings into steady income, you're in the right place.
[00:00:58] Speaker D: And I'm Steve Zarek. Each week we break down the complex world of retirement in plain English, no jargon, just smart strategies to help you retire with confidence.
[00:01:07] Speaker B: Now let's dive into today's show and start paving the way to your smooth retirement. Here are your hosts, David Phipes and Steve Zarek.
[00:01:16] Speaker E: Hi everybody. Welcome to this week's edition of the Retirement Planning Pipeline, the show that delivers expert insights, actionable advice in real world financial strategies to help you retire confidently and comfortably. Thank you for making our show a part of your weekend. I'm Jim Tarabokia alongside retirement planning specialists David Pipes and Steve Zarek. Those guys will be joining us in just a moment. Securing your golden years, Rethinking retirement income. Coming up, navigating Social Security challenges, alternative strategies and inflation proof planning for a worry free future. But before we get started, I want to encourage our listeners to go ahead and schedule your 100% complimentary consultation with retirement planning specialists Specialist David Pipes and Steve Zarik. Today it's a free offering just for listening to this show. Our listeners could 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 guys, Replacing Social Security in your retirement portfolio. Diversifying beyond government benefits for long term stability. According to SSA.gov in 2025, an average of almost 69 million Americans per month received Social Security benefits, totaling about 1.6 trillion benefits paid during the year. Now, nearly nine out of 10 people age 65 or older received a Social Security benefit as of December 31, 2024. So, guys, let's discuss why Social Security might not be enough when you're talking about long term stability for your retirement portfolio.
[00:02:48] Speaker C: Well, let's just get, let's just cut right into it, you know, and Stephen, Stevie, we always talk about this. You know, first of all, it's not might, it's not may, Social Security will not ever cover your full retirement cost.
It just won't. Right. With inflation adjustments with, you know, things happening with, with, with expense ratios, with expenses coming out when you're retiring, especially as you, you know, kind of get to the older stage. Social Security was never meant to cover the full cost, actually was only meant to cover 35% of the cost of retirement. Right. So, and everyone always says, well, it's, it has a COLA adjustment. But I mean that, that guys, that stuff is a very, very minimal amount when it comes to the small amount or percentage of the COLA happens, especially for the low time frame, you know. So, I mean, that's the first thing I want to point out is Social Security will not cover all your expenses. And if you think that it's going to cover a major portion of it, you need to plan, you need to have an income source, right? That's, that's planned. Other than just that, Social Security. Because I'm telling you, if you want to live a good retirement, that's what you need.
[00:04:01] Speaker D: Well, David, we're running, you know, you made a good point. You know, you talk about COLA adjustments, but if you look at COLA adjustment, it hasn't even been keeping up with inflation. So just by them giving us a COLA adjustment on Social Security is not going to make up for what people are spending, you know, every day right now. And if you think about Social Security, you know, years ago when I got in this business, more and more people, they had pensions and it was maybe a 50, 50 or 60, 40, 60% of people had a pension plus Social Security had some investments and that's how they made up their income in retirement.
But as we've seen over the last two or three decades, more and more people have to fund their own retirement and they have to create their own pension. And I think what happens is people that are thinking about retiring, they don't know what to do. You and I talk about this all the time. They don't know if they can retire, when they should stop working, when they should take Social Security. Social Security is a small fraction you mentioned. It's about one third of their retirement income that's needed for them to live A comfortable retirement. So our job as professionals is to sit down with people, talk about their retirement, build a plan, look at their Social Security as part of the income, but really maximizing their income, finding ways to reallocate their funds. We talked about that last show. You know, reallocating this, a good time of year to do that. Let's look at the buy calm buckets of financial goals and figure out where that income is going to come from besides Social Security. Social Security is not the answer.
[00:05:31] Speaker C: Maximizing that income. And Steve, I love when you say that maximize and Social Security is not the answer. So if you're out there and you're hearing us now, Social Security is not your answer, okay? To the retirement. And if you need help with this and you need help with either income planning or that, just planning Social Security on when to take it and where to take it, give us a call to set up your free consultation. 850-565-1705. Again, 850-565-1705. And we'll go over, you know, pretty much any question that you have and sit down with you and, you know, we'll go over your Social Security sheet that you get from SSA.gov we'll sit down, we'll go over the numbers. We have a big whiteboard in the office that we love to go over and actually do the numbers, show you the facts, show you when to take it, why to take it, really. Depending on whether what your goals are, right? You're still working, if a spouse is still working, if you guys want to travel but, you know, to transition to this. Steve, I think I'm hearing more and more, you know, from my clients, something that it's changing not when I meet my clients, which is pretty cool. But I'm hearing so much of, well, I don't mind working in retirement. I kind of want to work, okay?
I don't care, you know, who you are or where you're at. I don't. If someone had the option, okay, to work when they want to, all right? That's what retirement is.
Retirement's not just not working, okay? If you want to work, it's fine. Retirement is not having to work, not having to work for the income that's coming in. So, you know, when people are always like, well, I'm kind of scared. I kind of. I don't mind working guys.
[00:07:16] Speaker D: You and I bring that up all the time. It's not people.
We're not telling people not to live.
We're telling people, do you really want to work? Do you really want to have to work? And most of the clients we talk to and callers that call in are like, I'm trying to prepare so I don't have to work and I can enjoy my retirement. I saved all these years. I don't want to be 80 years old, and now I'm sick and I can't enjoy my retirement.
I want to figure a plan where I can start my retirement and I can live a comfortable retirement. And I think that's where you and I sit down with them. And it has to start with guaranteed income. It absolutely.
[00:07:51] Speaker C: It has to start with maximizing income.
[00:07:53] Speaker D: Maximizing Social Security is not going to be the answer. It's a big part of it or a portion of it, not even a big part. 65% of the income needs to come from somewhere else.
[00:08:02] Speaker C: If you haven't, if you're wanting to work, Steve, even if you're wanting to work in retirement, in the probability that something happens to you where you can't work or the mental stability, if that time comes, what are you going to do? Okay, what's your plan? Right.
So I sit down with people every day and we go over this plan, and they don't really realize, right. It's not so much about now, okay? Because right now you could be working, making $150,000, covering your expenses, plus some of the travel. But as soon as you stop that, or cut down two days a week or cut down a couple weeks a year, and you start traveling more, you start spending more, you start doing certain things, right? Traveling to see the grandkids, going up north, going down south. Right? Wanting to go overseas to Europe. That costs a lot of money out of one year's pocket, and your income depletes dramatically. Okay? So now you're spending a little more because you're not at work, right? You're out doing something and you're bringing in less. Okay? So you have to figure out a way, really, that's what we do. We sit down with you personally. But sit down, understand these things, maximize your income. I can't stress it enough. Maximizing your guaranteed income, like Steve likes to say, guarantee the income stream that comes in so that down the road you don't have to worry, right, about running out. And running out of money is the second thing. And we're going to get a little bit more into that, too. But, you know, everyone's always just scared, oh, well, I'm not going to have enough money to live if I'm 100 years old, if you're guaranteeing your lifetime income, Steve. It doesn't stop. Right, right.
[00:09:40] Speaker D: And that's the thing. The guaranteed income is so important, and too many people try to play games with income. And I'm telling you, there's ways that you can sit down, you can plan it.
David and I talk about this all the time. It's a no cost. You know, you come in, we'll sit down with you, we'll look at your Social Security. If you haven't already started Social Security, maybe you should, maybe, you know, if you're still working, maybe you shouldn't, depending on, you know, what your age is. But call 850-565-1705 and we'll answer the phone and we'll set up an appointment. We'll sit up and the first thing we're going to do is talk to you about, are you in retirement? Are you getting ready to retire? How far away from retirement, what are your goals? What do you want to do? What do you want your retirement to look like? And then we're going to attack the income and the guaranteed income, and we're going to maximize your guaranteed income, whether you think you need as much. There's a lot of times we talk to people and we show them an income plan and they say, whoa, I don't need that much income.
And that really excites me because do you not need that much income? You know, David, I like to use the, the, you know, the, the go go years, the slow go years, and the no go years. Talking to people about retirement, as soon as somebody retires or even right before they retire, they're already doing trips and planning things and cutting back from work and, you know, they don't want to slow down. Retirement should be fun. You should be enjoyable. You shouldn't have to worry about income, and you shouldn't have to worry about the stock market affecting your income in.
[00:11:04] Speaker C: Retirement should be fun, guys, which means you should not be looking. The first option is to work in your retirement. Maybe this is a life course. Maybe I'm just telling you out there, if you're listening to us and you're about to retire and, or you're still working and you want to retire.
You worked your butts off your entire life. Retirement is not for you to keep working. Okay, sit down with a professional like us again. Steve said, you know, we'll go over the basics. We'll make sure we maximize your income and guarantee that income so that you don't run out and you have portions of that money. That can suffice as your income for life. Right. That is super important. And if you want that again, call 850-565-1705. Again, 850-565-1705. We'll sit down and go over with you. Okay. We're right downtown Pensacola. We'll sit down here whether we have to come to you or you can come to us and we'll go over the numbers and really make it easier on you, make your retirement simple, really simplify your retirement. And I can't, we don't talk enough, really enough about the simplification of retirement. It should not be difficult. Okay. You should not have to every day wake up think, should I work today or can I, can I have off? That is not the point of retirement. Okay? So change that mindset. Get the income flow coming through so that you have the option and the clear head to think whether, whether you want to work still or whether you don't. Right. Have that option. That's one of the biggest things.
[00:12:38] Speaker E: Steve, I see you revving up there. You have anything before we close out this segment?
[00:12:42] Speaker D: Well, I was just, you know, a lot of people we talk to in the callers that call in are asking about Social Security, when they should take it.
And that's something we help with. We'll sit down with them, we'll go through their Social Security, talk to them about, you know, is there a drawback if they're still working, how much income they can still make and draw Social Security.
I like my clients, most of my clients to draw income as soon as possible off of Social Security. I don't like them waiting. And we'll talk about that later, I'm sure.
[00:13:11] Speaker E: And again, according to SSA.gov in case you're just joining us, in 2025, an average of almost 69 million Americans per month received Social Security benefits totaling about 1.6 trillion, trillion with a T in benefits paid during that year. So again, for more Social Security facts, visit ssa, in case you're wondering. All right. Coming up later, properly adjusting for inflation, we'll discuss that important topic. But up next, continuing with the theme of Social Security and its shortcomings, this is the Retirement planning pipeline. We're back in a moment.
[00:13:44] 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.
Welcome back to the Retirement Planning Pipeline. Here are your hosts, David Pipes and Steve Zarek.
[00:14:18] Speaker E: Welcome back to the Retirement Planning Pipeline. Thank you for making our show part of your Saturday on WCOA News Talk 104.9. New episodes at 8am every Saturday. Again, right here on WCOA News Talk 104.9. As we dive back in today's show, a reminder. If you like the content we're providing, subscribe to the YouTube page YouTube.com and search retirement playing Pipeline for weekly video highlights and special content. All right, guys, here we go. We talk about annuities pretty much every show.
It's always fun to talk about annuities and dive into what can be a very complex topic at times.
So let's discuss annuities and in particular, fixed indexed annuities. Guys, are fixed indexed annuities a good way to supplement income?
[00:15:07] Speaker C: Yeah, and, and, you know, that's a good question, Jim, but I, I think the main, the main topic on this is, right, it, it depends on the client's goals, okay? In the client's plan, annuities can fit a lot of retirees, a lot of retirees, plans. They really can.
Now. Now, it really determines where the plan is, you know, how far the plan is, what age the client is, what their goals are, Right? How much income's already coming in. But really, it tailors down to the first thing, maximizing Social Security first. And that's always the most important party.
The first thing you really need to tailor down is how much income you're getting for Social Security. When am I taking it?
What do I need? What's the gap left over?
Because that's where an annuity and a fixed index annuity can actually come into play, right? Because it can, it could have a rider on there that can guarantee some income. And that's one of the many vehicles out there that can actually help with guaranteed income.
But the first part is understand the gap. Hey, look, okay, problem, solution, okay? So if you're out there and you're, you know, you've got, you've been working or you're planning on retirement, you want to start planning it, okay? The first thought in your mind should be, what?
Hey, when I stop working or when I want to stop working, how much income am I losing? And how do I maximize the income with my assets that I have? Right? So Social Security first. Now that's where the next part comes into play, okay? So being able to say, hey, guess What? I've got 60 to $70,000 of lost income, which is the average range, okay, Of a client.
Say, really, it's 60 to $100,000 of income that a client is going to need yearly after they retire. Now, that's for many reasons.
Number one is because pensions don't exist anymore. We see some out there with TSPs, with the government.
You know, there's a lot of military workers in our area. But when you look at the pension world, they don't happen much anymore. And that's where these 401ks, tsps, iras, right, 403bs, they're really coming into play because those are meant for that income, right? And we help pretty much any retiree transition those funds into income for your retirement plan. And that is the most important thing, to be able to maximize income out of those TSPs, 401ks IRAs, 403bs. And it was we called qualified funds.
Okay? That's what they're there for. If you need help transitioning, right. Those 401ks tsps, IRAs, give us a call. 850-565-1705 again, 850-565-1705.
And we can help you transition those funds into an income stream that is really taking away that gap that you receive when you retire.
[00:18:16] Speaker D: So, David, let's talk about that for a second. That's a good point.
You know, the qualified funds, really somebody getting into retirement, I don't care what industry they came from, what they did for work, if there's no pension and they want to retire and they want to be comfortable, they've saved somewhere or another, they've saved money and they've put it somewhere in, like you mentioned, a 401K, even IRA, traditional IRAs, you know, TSPs, 403Bs, they have this money there.
And then when they determine when they want to retire, they've got to start thinking about longevity because retirement's not like it used to be. Retirement's not five or 10 years. Some people are living 20, 30 years in retirement. So I think the fear of people and when we talk to them, well, I don't mind working. Well, yeah, you do because you mentioned it earlier.
You want to, you work all your life to retire, to relax, to spend time with grandkids, to travel, to do the fun things you couldn't do every day. And that's what our job is, to sit down, we identify those qualified funds you mentioned, and then we set up some guaranteed income. And sometimes the income we give our clients a lot of times is more than they think they need.
And I, and I'm telling you, that's going to cover the inflation, that's going to cover the cruises, that's going to cover, oh my gosh, my, my refrigerator Went out. I got to go spend $3,000 on a refrigerator. That's going to cover the extra income, is going to solve those problems, and it's going to take away the fear of retirement, is setting up an income plan. And that's exactly what we do with our clients. We sit down, first thing we're going to look at is when do you want to retire, how old you are? And then we're going to look at your income needs. Now, clients that we have mention a lot that, well, I don't have the expenses in retirement. And what do you think? What do you say to that, David?
[00:20:00] Speaker C: Well, and that's, that's where it picks up is the expenses. People don't think that they're going to have them. First of all, expenses get more and more right down the road. Second of all, if you're retiring, you're going to have expenses, right? You're going to want to do things, okay? You're going to want to go out, you're going to want to go travel more, right? And then traveling is costing more and more every single day. Okay? Christmas presents get, get bigger and, and more expensive as the grandkids grow. Sorry, sorry, retirees out there. That's just how it works, right?
[00:20:32] Speaker D: I've got a real quick. David, I got a statistic for you. I was reading it here. You know, I like the statistics.
And it was talking about the average price of a vehicle 10 years ago. So in 20, in 2016, the average cost of a vehicle was around $34,000. Now, that's average. Obviously, there's higher and lower. Do you know what it is today? Probably in 2026, it's nearly $50,000 for a new vehicle on average, just 10 years later. So things are getting, you know, you want to buy your grandkid a new car, even though it may be used, it may not be 4 or 5,000, maybe 10,000, 12,000, 15,000. So things are getting more expensive. And that's where the income planning really has to play a big part of your retirement plan.
[00:21:14] Speaker C: And don't think you have it covered. And I can't stress that enough. Don't think that, oh, I can, I can pull some income out if I need it here, if I need it there. That's when it really hits you.
[00:21:26] Speaker D: On a.
[00:21:26] Speaker C: Listen to one of our other, other shows. You'll hear a lot about it. I mean, you go on our retirement planning pipeline.com and listen to our list of shows, you'll hear the effects that happen when you start doing that. And again, if you want, if you're on the verge of retiring or you want to retire, you want to plan your retire in a couple of years, you're 55 or older. Our goal is to either retire you now, if we can, which hopefully that's, that's the best feeling for us, for our clients, is to retire you the day we meet you. That is such a good feeling for us if that's your goal. Right. And I always tell people, hey, meet me and I'm going to try my hardest to retire you or to plan that retirement or if you're already retired and you want to at least advise your plan. Right. Maybe maximize that income. Right. Because if you don't have it maximized when you're planning before and you can still learn how to maximize it now, if you're looking at really increasing those maximized income of your plan, give us a call today at 850-565-1705. Again, 850-565-1705. And we could sit down with you, go over that retirement plan, but maximize your income and make sure that your assets are safe, you know, and yet your expenses are taken care of down the road. Right. Notice that I say down the road, not now, down the road, okay? Make sure that it will last you forever so you don't have to worry about income 10, 15 years from now.
[00:22:58] Speaker D: Well, and the guaranteed maximization of income is, is the key because it's, you mentioned earlier, you know, if I own a stock and I'm, I'm counting on that for income, and what happens if the market dips and I need the income, then I'm, I'm selling at the wrong time. So don't, don't let the market determine when you should sell, when you shouldn't sell. Set up those assets in a different fund that's going to produce guaranteed income.
[00:23:20] Speaker C: And it's my personal opinion, do. Steve, if you're retiring, on the verge of retiring, the majority amount of your assets should not be in the stock market in general.
Okay. You should have it safe somewhere where you're either guaranteeing income. Okay. Or getting a good rate of return without risk and without fear, fees. Again, if you are on the verge of retirement and you have the majority of your assets, 401k, if it's all on the market, which I'm sure it is, iras, you need to meet us, you need to use that and maximize that lump sum that you've been growing and transition it into income or transition it into something that does not have downside risk. Give us a call again. 850-565-1705. And we can go over that with you and make sure that you're maximizing income but also keeping your assets safe in the, and keeping the longevity of that income. Right. That is the most important thing when you age in retirement. Right. Maybe 65 to 70 might not be that bad, but all of a sudden 75 to 80. Right. That income needs all the income that you took before isn't there anymore.
[00:24:31] Speaker D: Okay, good point. Life cycles change. And I heard this the other day, Think of it as a season. Seasons change. Right now we're in a cold season, about ready to get in the spring. Think about your life. Your life has different seasons and too many people that we run into. If you're out there and you're thinking about retirement, your season needs to change with your investments, your income planning. That's time to change that. It's different thought process, a different season in your life.
And we, you know, we hear this all the time. I don't work out like I used to when I was in my 20s, your age, David. I don't eat the same, I don't drive the same vehicles. Things change in life and you have to have your retirement plan change and be prepared for retirement or you're going to have a miserable retirement. We can help solve those problems. We can sit down with you, look at the different seasons, look how far you are from retirement. Maybe it's a couple years, maybe it's next year, maybe it's now. That's what we can sit down with you. And again, Social Security is not going to be the answer for your income plan. And we've got to start with the income plan again.
[00:25:31] Speaker C: Social Security, if you're out there and you're hearing this, you heard it from Steve's mouth.
Social Security will not be an answer to your income plan. Get it covered. Get it taken care of. Meet us today for a free consultation. Give us a call. Let us help you either plan your retirement or let's get to the retirement phase, guys. Let's get there. Let's retire fast.
Come meet us today. You can give us a call. 850-565-1705. Again, 8Z85. Sorry. 850-565-1705.
[00:26:08] Speaker E: And a quick reminder, our listeners can start working with the guys today. David and Steve are here to discuss your income goals and vision for retirement. They'll take a look at your current income plan and portfolio of assets, walk you through their recommended plan plan and answer as many questions that you may have regarding retirement. So again, reach out as David mentioned the phone number get your assessment today. Visit RetirementPlanningPipeline.com again the website RetirementPlanningPipeline.Com or call 850-565-1705 and schedule that no obligation consultation this is the retirement planning pipeline.
[00:26:44] Speaker B: Helping you take control of your financial future.
This is the retirement planning pipeline.
[00:27:01] Speaker E: By the time the decorations come down and the credit card statement goes up, many Americans are left with the same quiet question, Did I spend too much this holiday season? I'm Jim Tarabokia for the Retirement Radio Network powered by Amerilife. For some, it was gifts for children or grandchildren. For others, travel hosting or simply wanting one bright moment at the end of a long year. And now in January, the emotional glow is faded, replaced by credit card debt numbers that feel harder to ignore. Financial experts say this post holiday moment is very common, but the good news is it's also manageable. ABC News Elizabeth Scholzie says that one of the best places to start the cut down is by analyzing non essential items.
[00:27:41] Speaker C: This is the time of year where we do tend to see credit card balances spike in December after all of that holiday spending. So really it is the time to try to make a plan to take stock of your debt and pay it off.
[00:27:53] Speaker E: According to a recent article from cnbc, there are further steps you can take to manage and pay off your credit card debt. First is establishing a clear direction. According to Scholzi, this common strategy is called the snowball method.
[00:28:05] Speaker C: So what this does is you paying off your smallest debts first and making minimum payments on all of your other balances. So what this allows you to do is have a bunch of kind of small wins. You move off your first, smallest debt, pay it off, go to the next one. Kind of keeps that motivation up.
[00:28:19] Speaker E: Next comes simplification. Options like balance transfers or consolidation loans may help lower interest costs and make payments easier to manage, especially for those juggling work, family or fixed retirement incomes. And finally, there's reallocation, finding small ways to free up cash through modest spending adjustments or directing a bonus towards debt without upending your life. Small changes can significantly shorten the payoff timeline. The main connection through all of these is achieving the goal of stability. So while the holidays are about generosity, January is about intention. And taking control of holiday debt isn't about what you spent, it's about what you choose to do next. For the Retirement Radio Network powered by Amerilife, I'm Jim Tarabokia.
[00:29:01] Speaker B: Welcome back to the Retirement Planning Pipeline. Here are your hosts, David Pipes and Steve Zarek.
[00:29:09] Speaker E: This is the Retirement Planning Pipeline. If you've missed any part of today's show or want to go back and listen to previous episodes, go ahead and subscribe and listen to the program and podcast form Apple, Spotify or whichever platform you enjoy your podcast. All right, stay with us because coming up, adjusting your retirement portfolio and taking into account inflation. But as we continue on with the show, as we do every week, let's introduce our financial wisdom quote of the week.
And our financial wisdom quote of the week comes to us from Baseball hall of Famer Yogi Berra. Yogi said quote, if you don't know where you're going, you might end up someplace else. Legendary Yogi Berra with this week's quote of the Week. And as we dive back into today's show, if you like the content we're providing, be sure to subscribe to the YouTube page YouTube.com and search retire and Planning Pipeline for weekly video highlights and special content. Income alternatives Exploring diverse streams to supplement or replace Social Security. We shift to proactive solutions, guys for dividend. From dividend stocks and rental properties to part time gigs in retirement, discovering ways to create reliable income. So guys, what do you see as the most efficient income stream income alternative or alternatives for retirement portfolios in the year 2026 and beyond?
[00:30:32] Speaker C: Yeah, and this, this comes with a, with multiple different cases, right? Because different income streams have different effects on accumulation, have different effects on interest growth, have different effects on principal decumulation.
Right? So you have to be careful when you're talking about income stream. If an asset appreciates or depreciates. Right? So you know, because we can, we can sit there and say, hey, dividend stock, just pay me out 5%. But it just lost 5% this year. So what happened?
Your total return ended up being zero. Okay? So if you're out there looking at dividend stocks, you might not be fully equipped to, to give yourself guaranteed lifetime income. Number one, you have different types of risk. That's a business risk. Okay? So whatever dividend stock that you're in, that's a business, okay? That's a, that's a publicly traded business. If that business fails or has a downside in earnings or has something going on in the background, litigation, something that could easily drop your, your actual stock price. Okay, so now you're talking about, yeah, your dividends. But you might make 5% off of, let's say, a stock that once you had it at 40 bucks, but now it's only 30.
So your, your dividends are now decreasing by 25%, but you're still making 5% of the average average share. So you have to be careful on dividend stocks. And I've had a ton of clients and if that's what you're doing, sit down with us, meet us. We have alternatives to that because that's, that's a big issue right now is people are transitioning into the fixed income side and the, you know, the bond side and bonds are a whole other deal. Okay, if you're in a bond and you're using bonds for income, you need to meet us again. Give us a call. 850-565-1705. Bonds are not the answer. Okay? And I feel like everyone always has that, that, that, that idea that, okay, well, bonds can give me a fixed interest and it matures at this date and matures at that date. That's not where the income is going to really come from. That's not going to suffice anything for your retirement needs. Okay? So again, if you have questions about that, come sit down with us. And lastly, Steve, I want you to talk about this one, you know, because you're a little older than I am. Okay? So I feel like people on here might, might get a little more out of this. But what is your feel on rental properties and having to manage them for your rental return?
[00:32:59] Speaker D: I'm glad you brought that up because I was thinking about some of our clients, the real estate boom and people using that for supplement their income, which, you know, sounds like a good idea. But again, a picture perfect retirement, if you can make one, would be simplicity without risk, without headaches. And most of my clients that I've talked to or we've sat down and looked, they're trying to sell those rental properties to put it money in a different program to provide income. Because if you think about a rental property, you're not just talking about income coming in. What happens if the renters disappear or ruin the, the property? What about your, your property taxes? What about the insurance? What about the headache if a hurricane comes so it's not a warm.
[00:33:45] Speaker C: Termite damage down in Pitts of Coleman State.
[00:33:48] Speaker D: It's everything. So I don't know if people when they retire really want to do that. Maybe when they're your age. David, I know you have a rental property and you know, but maybe you can handle all that, that, that risk and that frustration. But I think in retirement we want to eliminate that. We Want to enjoy life. And to me, owning rental properties when I'm retired, nine times out of 10 the people we meet with are trying to get out of it so they can reinvest to produce a maximized guaranteed income. And that's the thing we look at when you're talking about the income in retirement. We want the least amount of fees, the least amount of headaches, the guarantee for life. If you lived 20 years in retirement or 30 years, you still have income coming in and you don't have to worry about all that while you're retired. And that's what we focus on.
[00:34:30] Speaker C: Again, Steve's talking about simplifying retirement. Guys, make it simple, okay?
Change your transition from working to retirement and simplify your life. I think that's the entire point of retiring, right? I mean, I hope that my life's not as crazy as it is now as when I retire. I hope that I don't have to deal with the things that I do now while I'm working and have bills and have wedding bills and photographers that my, that my wife wants to, you know, have me pay for. I, I, I hope that down the road that doesn't happen to me. Right. I hope that I'm able to actually simplify that way. And again, if you need help, and I'm sure a lot of you out there are really kind of juggling a lot of things to do at retirement. Get some help. Guys. Sit down. It's a free consultation. Call us today at 850-565-1705. Again, 850-565-1705. I know sometimes I talk a little bit fast, but you can also go on retirement planningpipeline.com that has pretty much all of our stuff on there when we air, you know, everything else with a bunch of recordings. But you know, I want to bring.
[00:35:42] Speaker D: Up David, I want to bring up to that phone number is directly tied to you, so you're not getting an answering service.
It's a direct line to David Pipes for Retirement Pipeline.
So it's going to go directly to him. You can leave a message if he's busy with a client, but he'll call you back. He's great at that. He's one of the few people I know in this industry that he'll call you back no matter where he is, usually within a 24 hour period. So it's a lot quicker.
[00:36:07] Speaker C: That's great, Steve. Yes. Again, if you do call, okay. It comes right to my number.
Okay. So please give us a call. We'll Sit down with you. I'll answer the phone. I'll go over questions you may have.
We could sit down and go over the actual plan to maximize your income and make sure that you're safe in retirement.
That's the entire point.
[00:36:29] Speaker D: You brought up, you brought up real estate, and I think that's a big one. You and I have run into quite a bit with the callers and clients we've been helping. And, you know, you think about real estate and I don't. I think sometimes people get lost in the real return versus the nominal return. You know, people think, okay, I've got this rental property and I'm bringing in $30,000.
But they forget what the cost of that rental property to the owner really is. And, and sometimes when we sit down and show them, well, you're, you're really not netting the $30,000.
[00:36:58] Speaker C: Yeah, that's rare, Steve. I mean, you know, if you're out there and you have rental properties, we're not dissing rental properties. Rental properties can be a great, can be a great source of income. And if that's, that's your gig, that's your gig. And I was in real estate for a long time with investing in real estate. But the main topic that we want to get to is what is the main source? Where is the funds coming from?
[00:37:18] Speaker D: Correct.
[00:37:19] Speaker C: Give you this income, Steve, and I mean, you've been plugging it in your entire life, right? So if you had to tell someone right now where that income's coming from, where would it be?
[00:37:30] Speaker D: Well, your, your qualified funds. There you go. You need to focus on the qualified funds. And, and that's where we need to focus on producing income without risk, without the fees and guarantees. And that's really what everybody listening. If you have any kind of qualified fund that's set up for retirement, you need to meet with us and we'll show you how to plan that. And you tell us, hey, David, Steve, I want to retire in three years, and here's the income I need to retire. And we'll work on a plan for you. That's exactly what we do.
[00:37:59] Speaker C: And again, those qualified funds guys, 401ks, IRA stock, stocks and bonds, brokerage accounts, okay, you've got Roth IRAs, you've got TSPs. TSPs are a big one. We've been helping a lot of pre retirees and retirees with TSPs. If you have a TSP out there, they can be difficult to understand being in those mutual funds. G fund, right. I fund, C fund. We can help you with that, okay, we have direct experience with transitioning that TSP into some safe assets that maybe produce a little bit higher than your G fund, but also can supplement that income and maximize that income gap that you are going to take a hit on when you actually retire or if you've already retired. And again, if you need help with Those qualified funds, TSPS and 401ks, IRAs, 403bs, give us a call today. 850-565-1705. Again, 850-565-1705.
[00:39:03] Speaker D: David, there's a, if you look at the numbers, I think the last calculation was back in 2022 or 2023. I'm sure it's higher now, but you're looking at almost 40 trillion, I must say trillion with a T, like Jim said, $40 trillion in qualified funds in America. So, and if you look at that, that's what people are. That's their pensions. That's what they're saving, they're working. It's what I'm doing. It's what you're doing. We're putting money away in qualified funds. So when we retire, that's what we're going to help supplement Social Security because again, Social Security is not going to be enough. You have to have a supplement plan. And that's what the qualified funds are used for.
[00:39:40] Speaker C: Now, people ask all the time, okay, well, why haven't, why hasn't the person or the company that I've been plugging money into have, why didn't they tell me that I need to take this out or how can I transition it? If someone has a question, Steve, and a client, I'm sure you're out there. There's probably a lot of people listening that are asking questions and just trying to get this, you know, straightforward saying, hey, Steve, how do I, is it a taxable event? How do I transition my 401k? Am I going to get taxed or penalized? I'm 60 years old. I don't know what's going on. Steve, how can we do that?
[00:40:13] Speaker D: Well, that's a good point because it's, it's a different, I mentioned seasons earlier, as you get into retirement, your thought process needs to change and these assets should be reallocated to different places for income specifically. And I don't think a lot of people are getting that advice. They're talking to people say, hey, let's keep it growing, let's keep it growing, who cares? And they're not planning for income. And if you look at, you know, I Don't think people realize, and this is something I've seen In the last 10 years, very few people are keeping the same jobs because there's no pension and they can take their 401k with them when they leave.
And then nobody tells them what to do with that 401k. They think they have to wait till they're 60 or 59 and a half to actually move the money. We've moved a lot of 401k money sitting in a stagnant account into an income plan because they had a 401k with a previous company and they didn't even know they could do anything with it.
[00:41:04] Speaker C: So again, what Steve's saying, guys, is it is a non taxable event, okay? So no non feeble, you know, non, non penalized. Everything that we do, if it's in an IRA, if it's in a 401k, TSB rollovers and transfers, qualified transfers are the key to this, okay? And that's how you do this, right? And that's what we do. Okay? So we can help you set that up, roll it over or transfer it and actually maximize that income and be able to plan those qualified funds, whether it's a 401k and or IRA, and help you out with your decisions on your specific plan and goal. And again, if you need that help, okay, call us today at 850-565-1705.
[00:41:48] Speaker E: And if anything we 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 again to give us a call. David just mentioned the phone number. It works, it's operational, it's great. I've called it before. 850-5651-705-850-5651705. We do this show to bring important information to people like you and we do indeed love to meet our listeners and we appreciate all the support. Listening to the radio show, listening to the podcast, subscribing to the YouTube page. Thank you so very much again. Visit retirement planningpipeline.com or call 850-565-1705 for your personalized investment confidence checkup. After the break, we'll wrap things up with Adjusting for inflation. This is the Retirement Planning Pipeline. We'll be right back.
[00:42:39] 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.
Missed part of today's show. The Retirement Planning Pipeline is available wherever you get your podcasts. And at retirement planning pipeline.com welcome back.
[00:43:05] Speaker E: Inside the Retirement Planning Pipeline, the show that delivers expert insights, actionable advice and real world strategies to help you retire confidently and comfortably. Jim Taraboki here alongside retirement planning specialist David F. And Steve Zarik. And as always, thank you for making this show a part of your weekend on whichever platform of your choosing. What is an expense ratio and why does it matter? All of our listeners should ask the themselves this important question. How much am I paying in fees on my retirement savings? If you don't know the answer to this question or can't pull it up quickly, you owe it to yourself to find out again. We would be more than happy to take a look at identifying the current expense ratio of your retirement savings. Visit retirementplanningpipeline.com and grab your free no obligation consultation today guys, Securing your golden years, rethinking retirement income, navigating Social Security challenges, alternative strategies and inflation proof planning for a worry free financial future. Now we know inflation can erode your purchasing power. Think 3 to 4% annually, eating away at your fixed income. So guys, how can you prepare a retirement portfolio for one of your clients or retirement portfolios in general for inflation and adjust their portfolios for that inflation accordingly?
[00:44:27] Speaker C: Yeah, I mean it starts with guaranteed income. And again, if you're out there, and I know we say this a lot, but maximize your income first, your income is going to be able to, to give you a maximized amount to where you can actually either put it away and invest for inflation or you can use it for the inflation occurring now. And why that matters so so much is a lot of people now are putting their their money into or their, their retirement accounts, whether it's an IRA or whatever, 401k tsp into stagnant funds making 3 to 4%. Okay, what this is doing is it's taking the root of inflation out of it, okay? It's literally going to be eating away at your dollar by the time you already put it there. So there's target date funds, you know, with all those types of mutual funds out there that are really confusing, that we're not going to confuse you like every other broker does because we're going to make it really simple for you, okay? And again, if you need that simplified retirement plan with maximizing your income but also knowing how to prolong your funds and your dollars and help out with that inflation eating up your money, that's where you have to meet us again at 850-565-1705. Give us a Call. We could definitely help you out with that. But Steve, I want to ask you a specific question, and I think that you're going to be able to answer this a little bit better than I can because of my, let's just say my, my nerdy feelings sometimes kind of get the best of me, where I like to go too deep into this.
Why should we really be worried? And this is a lot of clients that we have. And you know, I go to the whiteboard for this. But I want you to explain it in the way you do with some of our clients, where let's say we have a portfolio or TSP or 401k and a client says, well, I'm going to start taking money out of this portfolio. Right. But it's, I have, I'm, I'm, I'm solely in the fixed account And I'm making 3%, right? Making 3%. And they're saying, well, it's going to keep up with inflation. Okay. And they're constantly pulling money out of there. Steve, what is your biggest worry that comes into that?
[00:46:33] Speaker D: Well, and that's the thing. They go into conservative assets for income and then they don't realize they're cannibalizing their income account because inflation's eaten up 2 to 4. I mean, in 2022, inflation was 8%. So if they weren't earning 8% and they're yanking out money and these accounts we run into have fees that they don't even think about.
So now they're pulling out, you know, 5 or 6%. They're getting feed 1 to 2 to 3%. Inflation's running at 8, their retirement accounts going down, it's cannibalizing. And sooner or later, if they have longevity in their life and they live 20, 30 years, they're not going to have that money anymore. They're going to run out of income.
[00:47:11] Speaker C: And the other thing is too, inflation rarely ever goes negative, which is deflation. So the times that the market goes down, inflation goes up, which happens to be what guys. Which happens to eat your funds even more than the loss of the dollar. You lose 20%, but you have a 4% inflation. You lost 24%. There you go. Right, exactly. It's not your 20% there. And that's, that's where it becomes super important to meet someone like us. We can go over and not to mention the fees, the 401k expense ratio fees. And people say, I don't have fees. They guys, they're inside the funds, inside each fund that you have there is an expense ratio fee that you cannot see, okay? Those will eat at the values, especially if you're in a low volatility market or low volatility security. That's why it's super, super important when you, when you need to meet someone, sit down with someone, understand what your expenses are, maximize your income, but also make sure that your money can be really there for the long term, okay? So that inflation doesn't eat it up. And these are just some of the things guys that were mentioning to you. But if you need help with this or you want to at least understand a little bit more and sit down and you need help transitioning these accounts to something that aren't feed or that actually can keep the accumulation value and give you income without risk the market. Again, keep your funds without risk of the market you've been working your entire life. Keep the accumulation that you made and generate a cash flow of guaranteed income off of it and maximize your income that you're losing when you retire. Give us a call. 850-565-1705. Again, 850-565-1705.
[00:49:00] Speaker D: David, you know, I'm going to lean on your math brain a little bit because I know you bring this up in all of your seminars and when people call in, you talk about the importance of sequence of returns. And so I want you to kind of in a, in a nutshell, I mean, keep it simple. We don't want to get complicated with, you know, with your math brain. But how do you explain the importance in retirement of sequence of returns?
[00:49:22] Speaker C: The sequence of returns is important because the compound of the dollar affects everything in the world, okay? And mathematically, when you look at net present value, and I won't go too far into it, I'm already getting, I'm already getting pretty crazy with it. But when you look at these sequence of returns, the biggest, the biggest effect that happens towards a portfolio or towards a lump sum of assets are what's called the inflows and outflows of cash.
So you're saying to me, okay, well, the rate of return really doesn't matter that much. So If I make 20% one year, but I only make 5% the next year, it doesn't really matter if I'm taking money out or I'm taking money in. No, it doesn't. Okay? And it's mathematically proven because what happens is the rate of returns differ depending on the cash flows coming in or going out. Okay? If I've got 500 in an account, but in the other account, I have a thousand dollars and I make 10% off of one. 10% off the other one. I'm going to make double my return, right? Double the figure. On the $1,000 account, it'll be $100. And on the $500 account, I'll make 50. So 50 times 2 doubled is $100.
So again, and this is going to kind of confuse you, so I don't want to get you too confused, but again, the inflows and outflow, which is why income is so important in maximizing your income and understanding that you don't have volatility in risk to your 401k anymore if you're taking money out.
[00:50:54] Speaker D: That's what I was getting at because you're kind of. You were getting over my head for a minute there, David. You know, us, us older people, you gotta, you gotta slow down a little bit. But what I'm getting at it because you bring this up quite a bit. And I don't think, I think people still invest or they, they're told to invest like they were when they were working and plugging in money and they're buying high and low. And that whole thought process, shouldn't it change when they retire? If they're looking at supplement and Social Security, they're looking at keeping up with inflation and they're trying to keep, you know, a good flow of cash flow coming in in retirement so they can live a comfortable retirement. Don't you think their mindset should change? I mean, isn't that what you go over with clients?
[00:51:31] Speaker C: Oh, it should, it should totally change. And, and I think what's funny is, is that no brokers would like to talk about it because they're, they're so financially, they're, they're, they're so financially taught in their firms to think certain ways. And Steve, you're analytical like I am, but you're for the client. Right. And that's why, you know, I love working with you and why we, we connected so well when I came into the business, because you think about the client first and when, how the loss of the dollar and how inflows and total returns and outflows and income affect the client, not the account, not in fact, the client's goals. Okay? If I have a guaranteed income stream coming off a client and they need to cover their expenses or they, that's what their retirement goal is. That's the entire. That's, that, that's our goal. Our goal is the client's goal. So again, if you're out there and you need us to help you achieve your goal for retirement or your pre retirement and you want to plan for it. Whatever the retirement needs, we are here to help. We are here to make it simple. We can transition those 401ks IRAs into a more stable account that actually has good growth with guaranteed income. Right. That's going to help. And we can also, we're able to minimize those fees. Okay. And that's one of the biggest too is not letting inflation and fees eat up your account. If you need help with the inflation, fees, transitioning 401ks maximizing your income in retirement, give us a call. 850-565-1705. Again, 850-565-1705.
[00:53:04] Speaker D: So David, I know you're busy. You know, I mean we're doing seminars locally. We're on these radio shows, we're getting calls all the time.
When can somebody, let's say somebody called in and says, hey David, I want to meet with you and go with my retirement plan.
When are you available for these customers that call in?
[00:53:21] Speaker C: I normally have two or three hours a day that I put in the office just to be able to be here for call ins because clients always have questions. Okay.
Normally I can fit them in in a day or two. Now there are some weeks, Steve, obviously, that we get pretty crammed up if I'm going over to, you know, an hour away for a client's house or something like that. But normally I'm able to fit them in pretty fast. Okay. Now I'm not going to promise anything because busy season is about to start. So I, you know, this, the end of December, we got to go on a couple trips. We got to go to the island. Steve, I think, you know, your wife and my wife and us went out and had a wonderful two weeks out in the British Virgin Islands and got to catch some lobster and really kind of felt like the retirement life for two weeks, didn't it Steve?
[00:54:07] Speaker D: Yeah, now we got to come back and pay for everything. Yeah, yeah. No, but it's, it's honestly, you know, we did the last show last week and, and we talked about, you know, rebalancing accounts and retirement. And this is our busy season going forward from now. And you know, all the way through tax time people are preparing for taxes. They want to know what's the tax efficient way to invest and take income. And you know, but I, I wanted listeners to know that we are available and you know, we can meet with them usually within, I would say within two to three days, we can set an appointment.
[00:54:36] Speaker C: And I know everyone says that you're, that they're unique. And if you're out there, listen, I'm going to tell you now, okay? We do things a lot different. We are, we are very, very different when it comes to the unique strategies that we choose. It comes from analytics, but it also comes from care, right? You know, the Fiduciary act to really care for our clients in the heart that we have the genuineness that we want to help you with your goal. Not our goal. It's not our goal. Okay. We retire in our own time. It's your goal. So if you're out there and you, you know, you need someone to help you or you want it, or you want some advice or you even have a couple questions, give us a call. We would love to help you out. 850-565-1705 where you can visit retirement planningpipeline.com.
[00:55:21] Speaker E: As well if you prefer the computer. But again, 850-565-1705 that phone number. And if you missed any part of today's show, don't forget to subscribe to the program and podcast forum 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. It's the Retirement Planning Pipeline. Thanks for listening and we'll talk to you all next weekend. Have a great week.
[00:55:48] 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're five years from retirement or just getting started, retirement planning specialists David Pipes and Steve Zarek have 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 the show today or want to catch up on past episodes episodes, be sure to subscribe to the Retirement Planning Pipeline wherever you get your podcasts.
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 present predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or 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 their 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 result obtained from the use of this information. Charles David Pipes and Steven Zarek are individually licensed and appointed agents. Learn more at retirementplanningpipeline.com not affiliated with.
[00:57:18] Speaker A: Or endorsed by the Social Security Administration or any other government agency. 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 and claims paying ability of the issuer.
[00:57:37] Speaker B: Let's get you back on the road to financial freedom. Don't miss the Retirement Planning pipeline with David Pipes. Tune in every Sunday at 9am on Newsradio710 and start planning smarter now at.
[00:57:49] Speaker A: Retirementplanningpipeline.Com how do you plan to prepare mentally for retirement? I'm Matt McClure with the Retirement Radio Network powered by Amerilife. When you think of retirement preparation, money is likely the first thing that comes to mind. And while getting your financial house in order is extremely important, it's not the only thing to consider.
[00:58:10] Speaker C: The Mayo Clinic the world famous Mayo Clinic has studied retirees and they've discovered that there is a 40% likelihood that in retirement, people are going to experience.
[00:58:23] Speaker D: Elements of clinical depression.
[00:58:25] Speaker C: That's an astounding figure.
[00:58:27] Speaker A: Riley Moines is author of the book the Four Phases of Retirement on his YouTube channel. Moines says leaving your career behind can be a difficult thing to get used to.
[00:58:36] Speaker C: It's a time actually when we begin to miss the routines that we had. We miss our colleagues, we miss our.
[00:58:42] Speaker D: Work, we miss a sense of purpose.
[00:58:44] Speaker C: That we may well have had, and we become kind of disconnected from, it seems, the world.
[00:58:50] Speaker A: For example, before retirement, you may imagine yourself loving your newfound free time, but.
[00:58:56] Speaker C: For many retirees it's exactly the opposite of what they expected and hoped retirement would be.
[00:59:02] Speaker A: So how do you tackle the potentially negative feelings that come along with retirement? Well, one suggestion is to try a partial retirement before you jump in with both feet.
A recent article in the Motley fool says you can do this by checking with your employer to see if they're comfortable with you scaling back your work hours. You might be surprised at their flexibility, especially if you've been with them for a long time now. If that's not possible, try getting a part time job with a different company or starting your own freelance business.
Doing that could give you the opportunity to still earn money, leaving your retirement accounts intact longer and see how you handle having more free time. And the article says that means you can potentially avoid mental issues like depression.
So will you quit working cold turkey or take retirement one step at a time? That's a key question to consider as you prepare financially and mentally for the future with the Retirement Radio Network powered by AmericanLife. I'm Matt McClure.
