14:59 / 28:36everything You Need to Know About the Plan...

Why You lot Need to Update Your Plan

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Transcript

00:00:00:01 – 00:00:25:05

Mike

We had about 600,000 saved. We wanted $two,000 a month. Right. And y'all told united states what you would do. Well, and we didn't do it. We stuck with our counselor. Right. And and you know, we appreciate that yous weren't, like, pushy, only we stuck with our advisor. Hither's the trouble. Our 600,000 is now down to 300,000. And we nonetheless desire 2000 a month.

00:00:26:eleven – 00:00:28:06

Mike

And we're worried that nosotros're going to run out of money.

00:00:30:12 – 00:00:42:07

Mike

Do you have any ideas for us? And I said, and honestly, I saturday downwardly. I said, Well, here's the trouble. The problem is you're stuck. You need to if you actually need that 2000, it'due south time to become a role time chore.

00:00:48:11 – 00:01:01:03

Jonathan

Welcome to Retirement Today. I'm your co-host, Jonathan Berglund. And with me here is Mr. Michael Reese, certified fiscal planning professional person for over 25 years, helping families get two and three retirement. How are y'all doing today, Mike?

00:01:01:15 – 00:01:05:14

Mike

Oh, I am doing fantastic. As always. Nosotros are in Austin, Texas.

00:01:05:17 – 00:01:06:26

Jonathan

Absolutely. Admittedly.

00:01:06:27 – 00:01:08:25

Mike

Just beautiful love living in Austin.

00:01:09:fifteen – 00:01:x:fourteen

Jonathan

Information technology's and so fantastic.

00:01:ten:18 – 00:01:19:11

Mike

Yeah. And so I know this week, Jonathan, we're talking a little scrap near what do you do when your adviser tells you you're good?

00:01:19:16 – 00:01:21:18

Jonathan

Yeah. Yeah. What does that mean? Aye.

00:01:21:18 – 00:01:24:17

Mike

What is it exactly mean? Accept you you've you ever heard that before?

00:01:24:18 – 00:01:29:00

Jonathan

Admittedly. Yes. Y'all're adept. Trust me. Merely. Just get along with it, right?

00:01:29:01 – 00:01:54:12

Mike

Yeah. All is well. So here's what happens. I've had this come upwardly with a number of people that accept come in recently, then I thought this exist a keen time to talk near it on the radio. So imagine this. Let's imagine you are, you lot know, going to retire in the next few years. Or maybe imagine that y'all've recently retired considering I had a couple of people come in who had been recently retired.

00:01:55:03 – 00:02:08:24

Mike

And you get to y'all have a financial advisor and you lot say, Hey, I just want to brand sure I've got enough money. I want to make sure I'yard on rails. I want to make sure, yous know, everything's going to exist okay. And they look you to say, Oh, don't worry about it. Y'all're good.

00:02:09:26 – 00:02:10:19

Jonathan

Yeah, that's right.

00:02:10:25 – 00:02:11:24

Mike

Yes.

00:02:eleven:26 – 00:02:12:24

Jonathan

You got it. Yep.

00:02:12:24 – 00:02:20:17

Mike

You lot done? You lot're fine. You got plenty of money. You got naught to worry well-nigh. You're skilful. Jonathan, what does that hateful?

00:02:21:xi – 00:02:29:27

Jonathan

That'due south a great question. Right? It's it'southward different things to different people. It just. It just means trust me, believe in me, and don't expect the other way. Right? Right.

00:02:30:00 – 00:02:51:18

Mike

You're practiced. Aye. Don't worry most it. You're fine. It's all good. Well, here'southward the matter. If your advisor if you have an advisor where they're telling you lot that we're. That's how the conversation goes. Guess what? You're probably not every bit good as you think. And you know what? I think y'all probably know that in the dorsum of your mind.

00:02:52:12 – 00:03:19:23

Mike

Hither'southward what'south going on there. You're talking to what is someone who's probably a really practiced person, right? They're a financial advisor. They're a good person. But hither'due south the bargain. They're probably not a retirement planning specialist. They probably don't specialize in the earth of retirement planning, considering here's what yous need to know. Investing for retirement is about growth and accumulation.

00:03:21:02 – 00:03:39:28

Mike

But when it comes to retiring, of a sudden the investment game changes. It changes from growth and accumulation to look a infinitesimal. I still desire to grow and accrue, only now I demand to accept income. I need to preserve that money because it'south that coin. That's all I got. Right? I don't have anything else.

00:03:39:28 – 00:03:xl:12

Jonathan

That's information technology.

00:03:40:12 – 00:04:01:16

Mike

That's it. It's got to concluding got taxation issues to suddenly worry about, like, what do I exercise well-nigh required distributions? What practice I practise? You know, am I going to get slammed in taxes? What about health care expenses? Correct. Suddenly y'all get from simply elementary growth in accumulation to growth in accumulation, plus all this other stuff. I've got to preserve I need income tax programme, demand this, I need that.

00:04:02:03 – 00:04:xiii:05

Mike

Information technology's a lot more complicated. If your advisor proverb to y'all, don't worry, you lot'll be fine, only they don't tell y'all how you're going to be fine. Gauge what? They probably don't have a plan for all that stuff.

00:04:13:06 – 00:04:13:25

Jonathan

They don't know either.

00:04:14:xvi – 00:04:43:01

Mike

Hither's what they're proverb when they say you're fine. Hither'due south what they're looking at. This is what you need to empathize and this is how you get into trouble. What they're looking at is they wait at your portfolio and they're doing a quick calculation in their brains. The calculation is iv%. They're saying, all right, you lot want I know you lot're going to retire in two years and I know you're going to need $35,000, $36,000 from your retirement savings.

00:04:43:09 – 00:04:59:13

Mike

I know you're going to demand 3000 a month or 36,000. Allow'due south come across, how much money do you accept? You got $1,000,000. Okay. 4% of $1,000,000 is $forty,000. You only need 36. You could pull 40. Okay, we're done. Y'all're good. Y'all're fine. That's what they're doing. And the.

00:04:59:13 – 00:04:59:28

Jonathan

Discussion.

00:05:00:00 – 00:05:15:20

Mike

We're done hither is the problem when they say you lot're fine. And allow me just share with you I think information technology's all-time shared in a story, right. So, Jonathan, I mean, you know, nosotros had this couple come up in, we'll call them. I want to call them Fred and Wilma Flynn.

00:05:15:22 – 00:05:17:01

Jonathan

Male child, here we become. Hither we get.

00:05:17:01 – 00:05:27:00

Mike

I can't do that, because if I call them Fred Wilma Flint, then I'1000 in problem with some type of compliance and all that stuff. So we'll just go with Georgia. Mary Jo. No, Joe and Mary.

00:05:27:01 – 00:05:27:21

Jonathan

Jo and Mary.

00:05:27:21 – 00:05:42:26

Mike

I tin remember John. Mary. So Joan, Mary, very squeamish couple. Only like you lot. They're listening to the radio show like y'all're doing correct now. And nosotros're talking about something that kind of triggered their minds. And they said, hey, we want to come in and talk to y'all. And I said, What? What motivated you to want to come in and visit?

00:05:42:26 – 00:05:58:14

Mike

Well, they said, and here's what they said. They said, well, just similar we're talking about tonight, my advisor says or our adviser says, nosotros're fine. Simply when we press them and say, well, only what's our plan? How are we going to really practice this? Considering they wanted to retire hither in a few months and said, how are we actually going to do this?

00:05:58:14 – 00:06:thirteen:17

Mike

Where are we going to become income from? Right. What what account volition we be pulling income from? And when should we be taking Social Security? And what are we going to well-nigh taxes? Their advisor said, Hey, don't worry near it. We got it covered. We're merely going to take some money out of your autumn and get your fine right.

00:06:xiv:11 – 00:06:34:27

Mike

They're like, Well, I don't know that that'south we feel comfortable with that. And so they said, We want to come up visit with you because nosotros desire to get a second opinion from someone who lives and breathes retirement. Planning some of does information technology all the time, like. All right. So tell me a little scrap about your situation. And we started going off and they share with me their data and this is what we learn.

00:06:34:27 – 00:07:01:25

Mike

It seems like over and over once again when we come across someone who has an advisor that says, quote, You lot're fine, unquote, as long as the stock market cooperates for the rest of their lives for the next 30 years, then, yes, congratulations you are fine. But what if the market decides, you know what, I'm not going to cooperate for a while.

00:07:02:02 – 00:07:20:09

Mike

What if the market simply decides I'm going to have a bad twelvemonth? Or two, or I'm going to take a bad five or half-dozen years, this couple. So hither's the deal. This couple, they had roughly $i,000,000 in, past the way. Yous might have more. You might have less. Than near $1,000,000. Nosotros learned that if the market place cooperates, they could live to 100 with the income they wanted.

00:07:21:08 – 00:07:40:00

Mike

And at age 100 they would to accept they would be given their children about i and a half million dollars. Right. So it'south like, hey, that's cool. Everything's working in the marketplace. You're taking your income, you're living your life. And if you lot get in all the manner to 100, you still have one and a one-half 1000000 dollars left over.

00:07:40:00 – 00:08:03:01

Mike

You get-go with ¥one,000,000 with 1.5. Not worth equally much as it was, of course, when they retired, but at least the money lasts beautiful. And and so again, market cooperates. You're fine. Just and so we stress tested the income. We said, well, what if the market place decides maybe we're not going to cooperate? And given their risk level, we used, you know, realistic numbers right.

00:08:04:08 – 00:08:16:13

Mike

And we larn, oh, if the market doesn't cooperate, congratulations. You run out of money at age. What was it like? 84? I think information technology was. Yep. Right. And I said, how practice we experience most running out of money at age 84?

00:08:17:21 – 00:08:eighteen:24

Jonathan

Not a practiced identify to be.

00:08:19:17 – 00:08:24:16

Mike

It turned out they weren't fans of that. Information technology said, Well, that doesn't look like we're buying.

00:08:24:16 – 00:08:25:11

Jonathan

At that place enough, right?

00:08:25:17 – 00:08:42:27

Mike

Information technology doesn't await like we're fine at all. And I said, Well, that'south the problem. Right? And by the way, every bit yous're listening when yous talk, if you have an advisor, when you talk to your financial advisor about your retirement planning, so let'southward say you lot've recently retired and you're maxim, hey, Dwight, do I really take enough money to terminal?

00:08:43:06 – 00:08:59:04

Mike

And your advisors, let's come across you says you're fine, don't worry about it. That might be a crimson flag because they might be like Joe and Mary saying, Hey, as long as the market works, you fine, but the market doesn't piece of work. You're not so fine. Yep. What's the biggest business organisation people accept when it comes to their retirement?

00:08:59:15 – 00:09:01:05

Jonathan

Am I going to run out of money? Yeah.

00:09:01:06 – 00:09:02:06

Mike

Well, my money final.

00:09:02:20 – 00:09:03:03

Jonathan

Yes.

00:09:03:04 – 00:09:21:18

Mike

And and the key is, what do we actually want? What exercise you actually want? Y'all want to maintain lifestyle. You desire to maintain your lifestyle. You desire to maintain your independence. You practice non want to exist in a position someday where yous're similar, Oh, I'm out of money. I got to rely on my kids. Right.

00:09:21:20 – 00:09:22:23

Jonathan

That's a scary identify to be.

00:09:23:02 – 00:09:32:22

Mike

Although except my dad likes to joke about that. My dad says he goes, You know, Mike, I. I raised you lot and took care of you for 18 years. I figure, y'all know, turnabout is fair.

00:09:32:22 – 00:09:34:09

Jonathan

Play your plough at present.

00:09:34:13 – 00:09:36:02

Mike

I'm really hoping he's joking virtually that.

00:09:36:28 – 00:09:38:eleven

Jonathan

I call up I know he says.

00:09:38:25 – 00:ten:01:08

Mike

Anyway, the bespeak I'm getting to is nosotros want to maintain lifestyle. Correct. So here'southward Joan. Mary. They got this million dollars they want 36,000 a year. So we put together a retiring well roadmap for them. In this roadmap, we learned, estimate what? If the markets cooperate. Yeah, you lot're fine. Your money volition last. In fact, you end. You lot'd be 100 years one-time yourself.

00:10:01:08 – 00:10:24:27

Mike

ane.v million left over. And so y'all lived, you lot know, about 40 years in retirement and your coin, you lot took income. You protect the principle and you grew it a niggling bit. Right. Information technology's just like what my dad said when he retired to me. He said, Hey, protect my principal, give me some income and grow it a little bit. Hey, for Joe and Mary, if the market place cooperates, congratulations.

00:10:24:27 – 00:10:33:fifteen

Mike

That's exactly what would happen. But hither'south the problem. Do y'all think the stock marketplace's going to cooperate? Information technology'due south always going to make money over the next 30 years. Jonathan.

00:10:33:25 – 00:ten:35:27

Jonathan

What do y'all recollect? No, sir. I don't think that'southward going to happen.

00:10:36:xi – 00:10:43:x

Mike

Is there any like similar what's a probability do you think that the market'south going to have some bad years over the next 30 years?

00:x:43:10 – 00:ten:46:07

Jonathan

You know, I recollect that might happen. And nosotros've seen it a time or two.

00:10:46:08 – 00:x:48:17

Mike

I'k going to aye. I can't say information technology's 100%.

00:10:48:twenty – 00:x:52:22

Jonathan

It's got to be like 98.6. Yeah, similar a ridiculously high.

00:10:52:23 – 00:11:14:08

Mike

It's like 99.9. And, and then and so 9% of the. Yes, the markets don't always go up. So anyway, if the markets would not if they chose not to cooperate with this couple, we learned that oh my gosh, instead of your coin last year and age 100 instead of your money growing and yous know, while you accept income instead you're going to run out of money at age 84.

00:11:fifteen:08 – 00:eleven:31:xix

Mike

Now how exercise we experience nearly that? They did not like that. Not at all. You lot know who really didn't like it, Mary? Because here's the deal. Nosotros all know women live longer and Mary's similar, hey, I think there's a really good probability I'm still going to be alive at 84. I don't desire to be the widow out of money.

00:eleven:32:05 – 00:xi:57:22

Mike

Right? Who does? And then this roadmap, what it did is it showed them that though information technology's like, look, hither's your situation on the route you're on now. Merely and so the next affair nosotros did is nosotros said, Hey, what if we tweak things a little fleck? You have that million dollars. What if we did this? Considering what their advisor was doing is they basically had them in a balanced portfolio.

00:eleven:57:26 – 00:eleven:59:25

Mike

Correct? Which is what they all do.

00:eleven:59:29 – 00:12:00:13

Jonathan

Yes.

00:12:00:17 – 00:12:23:xix

Mike

Balanced, diversified portfolio. Yeah. You know, which which past the way, studies tell u.s. that that's just a dumb mode to enter retirement that you don't desire to do that. Then I said, what if we utilized a strategy where we have some of your money, some of your retirement savings let's put it into an income saucepan that'due south designed to pay out income for the next x to 15 years.

00:12:24:14 – 00:12:41:27

Mike

The residuum of your money, nosotros're going to put in a growth bucket that's designed merely to grow during that ten to fifteen years. At the stop of the ten to 15 year period when the income bucket is emptied out, the growth buckets grown large enough to replace it. We'll merely yous know, play the game once again, correct? And so we said, what if we did something like that?

00:12:41:27 – 00:13:03:09

Mike

Just this is not a major tweak. Information technology's a modest tweak. Check it out. Here's what we learned when they hit historic period 100. If the markets cooperated, instead of having 1 and a one-half million dollars, they had closer to two and a one-half million dollars. But the markets, as we said, don't e'er cooperate. Correct. But hither'due south the all-time part.

00:xiii:03:09 – 00:13:10:17

Mike

And if the markets don't cooperate instead of running out of money at age 84, they ran out of money at age 97.

00:13:10:29 – 00:13:11:29

Jonathan

Wow. Large difference.

00:13:12:03 – 00:thirteen:21:11

Mike

And so here's my question. I said, hey, Joe, Mary, how do nosotros feel well-nigh these tweaks and how they bear upon your retirement planning? What do y'all call back? They said.

00:13:22:03 – 00:thirteen:22:22

Jonathan

Loved information technology.

00:13:22:23 – 00:13:23:20

Mike

Style better.

00:13:23:22 – 00:thirteen:24:23

Jonathan

Way ameliorate.

00:xiii:25:00 – 00:thirteen:55:29

Mike

Why didn't our advisor bear witness united states of america? This was the big question. And the reply is really simple because they're advisor they didn't focus on retirement planning. Their advisor was a dandy person, a keen a great guy. And he truly wanted to practice what was right for Joe and Mary. He did everything he could exercise based on his training and based on what his company allowed him to do.

00:13:57:01 – 00:fourteen:16:05

Mike

The problem was that he didn't focus on the time of life. That is retirement. That is a different stage of life. It requires a dissimilar skill set that'southward what we exercise, correct? And so when Joe and Mary came to us and we were able to show them these tweaks, they said, Wow, those are easy tweaks. It makes sense. Information technology'due south very logical.

00:14:xvi:28 – 00:14:35:03

Mike

Why didn't our guy tell us? Well, because he doesn't specialize in retirement planning. That'south why. Correct. And it's like anything else in life. If yous have cancer, your regular doctors, probably non the md to become to, yous demand a specialist. Retirement is not like having cancer, by the way. That's probably a bad instance.

00:14:35:15 – 00:14:35:26

Jonathan

Right?

00:14:36:05 – 00:14:53:23

Mike

I probably should come up up with something dissimilar in that location. But the bespeak is, it'southward unlike and you need a specialist. We haven't gotten to taxes however, which make me actually right in the face. Oh, male child. Yeah. You know what happens every time on the radio? I talk well-nigh taxes. I first talking almost the elected representatives in Washington.

00:fourteen:54:07 – 00:14:55:00

Jonathan

Aye, yeah.

00:14:55:00 – 00:14:56:18

Mike

And I get-go getting bleeped out. Yep.

00:14:56:19 – 00:14:59:16

Jonathan

The beep button comes out. We have to kind of be fix for you lot got.

00:fourteen:59:xvi – 00:15:23:25

Mike

To keep an centre on my my language with those people. Past the fashion, what's funny is, as we're here in the studio, I have a special guest in the studio. His name is Benny, and Benny is our tax monster. For those of y'all on the podcast, not the podcast, only the YouTube video, yous tin maybe see Benny. He'southward a very ugly character, as is anyone who is.

00:xv:24:09 – 00:15:26:22

Mike

I think anyone working with the IRS is an ugly graphic symbol.

00:15:26:22 – 00:fifteen:30:00

Jonathan

I can't even begin to describe this thing. I'm looking at this, by the.

00:15:30:00 – 00:15:45:19

Mike

Way, for those of you that piece of work at the IRS, I know you're non an ugly grapheme. I know y'all're like everybody else is trying to practice your job, so I hope you understand. No offense. We're really just having a little fun here. Yeah, I got to be conscientious there, correct? Like you say, I know people the IRS be hey, this Mike.

00:15:46:00 – 00:15:47:20

Jonathan

Guy had his proper noun to that list, only.

00:15:48:14 – 00:16:fifteen:08

Mike

He'due south been mean to u.s.. We should, similar, add his name to a special audit list. Anyhow, one of the things that you lot absolutely must be thinking almost when you go into retirement is what your taxation state of affairs will be. Hither we go with poor Joan Marie. So they had their retirement laid out. They wanted to have roughly 90,000 a yr in retirement.

00:16:xv:08 – 00:16:37:23

Mike

Right. That was kind of the income they wanted. They had Social Security, they had coin from their retirement accounts. They had a footling bit of real estate rental real manor. And one of the things that no one had e'er done for them is no 1 had e'er shown them what their taxes would look like during their retirement years.

00:16:38:09 – 00:16:59:23

Mike

They would no 1 showed them that, similar their their electric current advisor never brought up taxes because it turns out he that's non he didn't exercise that. They did their own revenue enhancement return on TurboTax. So they never thought about whatever of this. Just what's really important, in my opinion, is part of retirement planning, you know, is, well, they say your planning is all about the route you're on.

00:17:00:07 – 00:17:24:26

Mike

Right. Your retirement plan. The question is, what does the Road Island look like? Where'due south information technology taking me? What's the destination I'm heading towards for Joe and Mary for them I asked him, I said, Has anyone ever shown you, you know, how taxes might bear upon yous during your retirement? You know, yous've been in some of these meetings, Jonathan. So you know what I get like the blank stare.

00:17:24:26 – 00:17:27:01

Jonathan

Yes, merely deer in headlights. What do you mean, no?

00:17:27:06 – 00:17:52:29

Mike

No. Yeah, no. What do you hateful? And and so what I did is I started showing them, look, the first year in retirement, correct? Then hither it is. Your first year in retirement. How much in taxes? Oh, and it was like $five,000. I call back it was, or something similar that. So you've got near ninety,000 income y'all can spend. You'd like possibly five One thousand because the IRS 95,000 of income five goes the IRS 90,000 goes to you.

00:17:53:eleven – 00:17:56:09

Mike

Is that actually a major problem? No, not at all.

00:17:56:09 – 00:17:56:27

Jonathan

Not painful.

00:17:57:00 – 00:18:21:xiii

Mike

Not a large deal at all. I said how we feel about that. Like actually that'due south pretty skilful. Mike. We thought it'd be worse than that. Yeah. Aye. I said, but wait, every bit they said, a late night infomercial. But await, there'due south more, correct? Then then what happens? I say, Well, what about when you're 70, right? You lot're iv years into retirement now you're a little bit older, you desperately need a fiddling more income because of inflation.

00:18:21:21 – 00:18:43:06

Mike

Well, at present their tax beak is upwards to closer to nearly 10,000. Still non horrible. Just and so we outset getting into required distributions and how that affected their taxes. Earlier you know it, they're projected to be over 20 m a yr in revenue enhancement considering they're forceful coin out of their IRAs that they never plan on pulling out. And information technology just got worse and worse and worse and worse.

00:xviii:44:00 – 00:19:07:08

Mike

And then what well-nigh for surviving spouse? Information technology gets worse and worse and worse. Then I said, Hey, if yous add upwardly, I showed them if you add together up all of the taxes over your expected lifetime, bold the electric current tax lawmaking, practise you lot know how much their total tax liability came upwards to? Information technology was like $780,000. Oh, and so how we feel nigh that now, we don't like that.

00:xix:08:06 – 00:19:28:22

Mike

I said, Okay, so what are your current advisors telling yous to do virtually information technology? They said, Our current advisors never even brought it upwards, so this is something they'll never probably equally long as I live, I'll never forget this one. So here we go. It's the yr, information technology'due south 2007. So nosotros're going to go back in fourth dimension.

00:nineteen:28:22 – 00:19:29:23

Jonathan

We're back a little means. Yeah, get.

00:19:29:23 – 00:xix:48:08

Mike

Back a little ways. Was the xv plus years now. Anyway, information technology's 2007 and it's the fall. A very nice couple comes to the role. And then at the time, I don't know how they came out. I don't know if they referred to a survey. They came to i of my speaking events. I don't remember. I just remember very dainty couple.

00:19:48:xvi – 00:20:10:25

Mike

We'll call them down in Shirley, right? Every time I say the proper name Shirley, I think of that was an aeroplane. Shirley, you just. Yes, anyway, Don and Shirley, super dainty couple. They had been working with an advisor for some time and simply they were getting fix to retire and their bargain was this. They'd worked actually hard over the years.

00:20:10:25 – 00:20:34:15

Mike

They had saved $600,000, right. 600 thousands. What they saved, they only needed $2,000 a month income which is 24,000 a year. Now, at the time I said, you know, exercise y'all have an counselor? They said, yes, we do. Well what does your advisor tell you about this? Well they said we're fine, don't worry near the coin. Kind of what we're talking about tonight.

00:20:34:xv – 00:20:56:12

Mike

We're fine. And I said Tell me, why does your advisor say that? Well, our counselor, he says he's put us in this diversified, balanced portfolio and he says we should be able to merely take 4% a year out 600,004%, 24,000 years, 2000 a month, and nosotros should be fine. I said, well you realize. I said, well, here'southward my question.

00:20:57:05 – 00:21:twenty:xiv

Mike

What are you going to do if the market decides not to cooperate? And they said, Well, what do you mean? I said, Well, here'due south what I mean. Back in 1999, at present we're going back fifty-fifty farther. When my very own parents retired, I idea that that was how y'all do retirement planning. The same thing. Diversified, balanced portfolio have 4%.

00:21:20:14 – 00:21:37:05

Mike

That's what I was trained in the financial industry. And so that'southward what I did with my parents in the first twelvemonth. 1999. Information technology went beautifully. Market place was up, y'all know they took their income at the stop of the year. They had more coin in their savings. And we started with I was similar, you lot know, the favored son, correct?

00:21:37:05 – 00:21:39:01

Mike

I'one thousand like, well, wait how crawly your son.

00:21:39:01 – 00:21:forty:03

Jonathan

Do no wrong, correct?

00:21:twoscore:04 – 00:22:06:26

Mike

I know I've got to be the favorite son. But then in 2000 we had the dot.com crash, 2001 9-Eleven happened and then 2002, nosotros had a big recession. And over that 3 twelvemonth menses, the stock market was down nigh 45%. Now you figure, okay, the market office of your portfolio is down roughly 45 to 50%, even taken iv% distributions for 3 years in a row.

00:22:06:26 – 00:22:32:04

Mike

That's 11% that you're down. And estimate what? My parents, along with millions of other American families, if they were retired with a balanced portfolio taking that 4% income, half their money was gone past the end of 2002, at which signal there's no turning back because now if yous desire to keep taking income, you lot're now taking like eight or 10% of your portfolio for income.

00:22:32:11 – 00:22:50:xi

Mike

Guess what? You're going to run out of money. It's not a question of are yous going to run out of coin? Information technology's a question of when will you run out of money? It'south non going to be very long. Going back to Don and Shirley, then what is your adviser say about, you lot know, all of that? So, yeah, you could accept 4% if the markets cooperate.

00:22:50:12 – 00:22:55:04

Mike

What if they don't? How are yous going to be okay then? Well, he says we're fine.

00:22:55:20 – 00:22:57:23

Jonathan

He says we're fine. Magic word they.

00:22:57:23 – 00:23:sixteen:22

Mike

Said. But that's why nosotros're here. They said they said we're hither to meet y'all considering we only want a second opinion, which is a smart motion. Past the way, if yous're getting close to retirement, that is a that is a unique period of your lifetime. You simply want to retire one time and you got to make sure yous're making the right decisions.

00:23:17:11 – 00:23:37:14

Mike

So I went to I said, okay, well, allow me share with you how we practise things. And for u.s.a., nosotros similar to take the portfolio. We have some of the money, put in an income saucepan to generate income. Some of the money puts in a growth bucket and so your money can grow. And nosotros do it that way because we've learned that information technology doesn't affair if the markets cooperate or not.

00:23:37:14 – 00:24:00:00

Mike

If you do that the right style, information technology works. Correct? And I can't promise you it works considering, yous know, in the financial manufacture, you can't promise really anything. But I've seen it work in expert markets bad. How nigh that? Well, here's the thing. This couple they said, yeah, we see what you lot're doing. It makes sense. Nosotros're going to only go talk to our old counselor near mayhap doing something like that.

00:24:00:00 – 00:24:21:03

Mike

And for whatever reason, they just stuck with their old advisor. They didn't want to work with me. I'm similar, Okay, a year goes by. Now it's the end of 2008. Really, I'one thousand sorry, a year and a half it's at present upwardly. I call up it was February of. Yeah, it was February 9. I get a phone call from them, hey, this is down.

00:24:21:03 – 00:24:38:03

Mike

And Shirley, recall us? Similar, Yep, I remember y'all guys. They're really overnice people. I remember them. So they said, Well, you know what? Nosotros wonder, would it be okay if nosotros came in and talk to y'all over again? Make sure. Come on in. And then they came and they said, and here'due south what happens, Don. Kind of like his head dies.

00:24:38:08 – 00:24:59:25

Mike

I don't know if you remember, though, when nosotros spoke nigh a year and a half agone, nosotros had about 600,000 saved. We wanted $2,000 a calendar month. Right. And yous told us what you would practice well, and we didn't do it. We stuck with our advisor. Right. And and, you know, we appreciated that you weren't, like, pushy, but nosotros stuck with our counselor.

00:25:00:21 – 00:25:25:05

Mike

Here'due south the problem. Our 600,000 is now downward to 300,000, and we still want 2000 a calendar month and nosotros're worried that we're going to run out of coin do you accept any ideas for united states of america? And I said, and honestly, I sat down, I said, Well, here's the problem. The problem is you're stuck. You need to if you lot really need that 2000, it'south time to get a part time job.

00:25:26:03 – 00:25:47:00

Mike

Because if you continue taking 24,000 twelvemonth out of a $300,000 portfolio, it'south going to run out of money. Information technology's merely a thing of time right now. They're like, Yeah, we know that. We were just hoping you had a magic wand or something existent, which I did I don't have a magic wand. At present, what's interesting is they said, Okay, well, we've learned our lesson.

00:25:47:00 – 00:26:06:09

Mike

Nosotros're going to get ahead and move our coin to y'all now, right? Give us what we can get for now, which is like a thousand a month or maybe 1200 at the time. He went out and got a part time job, correct? And later about three or four years, nosotros had enough on the gross side that they were actually able to get dorsum to where they were pretty close to it.

00:26:06:17 – 00:26:22:23

Mike

They were able to go there a couple thou a month. But you know what? They always talked well-nigh it every fourth dimension I did remember review and the lesson learned, right? You know, what works to become you to retirement is not necessarily what works to get y'all to a retirement. And every time. I wish I would've listened to you lot.

00:26:22:23 – 00:26:45:24

Mike

I wish I would mind to yous. Here's the matter, folks. When you have an counselor says you're fine, odds are you're not or odds are y'all are if the market cooperates. But the markets, as y'all know, don't always cooperate. Odds are you probably accept enough coin but you probably need to make some tweaks. Look, if you're retired, if you but retired, right?

00:26:45:24 – 00:26:55:08

Mike

If you're nearing retirement, why wouldn't you want a second stance from some of the does this all day long? Yep, it's like the biggest no brainer in the world, right? Jonathan, what's the number?

00:26:55:xvi – 00:27:02:11

Jonathan

512886 50. Eight 50. That's 5128865850.

00:27:02:27 – 00:27:20:00

Mike

And everybody'due south similar, Mike, why would you offer this for complimentary? You know, it'due south really simple. I'thousand very selfish hither. Here's why I practice it. Half of the people nosotros exercise the road map for, you know what? They come in, they're like, Wow, that's awesome. I'm so glad I got that information. Think. Thank yous then much for doing this.

00:27:20:10 – 00:27:38:20

Mike

And they go off. They take care of things themselves or their current counselor, and they become away happy. Only you know what? Those very same people, whenever they come up beyond a friend that needs help with retirement planning, with retirement planning, you know, they tell their friends, you should go run into Mike. And those guys are Centennial, man. They were really, really helpful.

00:27:39:07 – 00:27:54:22

Mike

We get a lot of referrals from those people. And so guess what? It ends up beingness a great win for us. The other half of people that come in, turns out nosotros can help them in some way. And gauge what? They become clients. That'south why we practise it for costless. It's a win win. I'g a big believer. What goes around comes effectually, right?

00:27:55:05 – 00:28:19:fourteen

Mike

So here nosotros go. Number again. 5, one, two. Eight, eight, half-dozen 50, viii 50. Call it. At present, first x callers, you get this map, road map for free. As long as you lot saved at to the lowest degree a couple hundred thousand for retirement. Again, 512886 l, 8 50. Retirement is such an important time in life to get your financial ducks in a row right.

00:28:19:14 – 00:28:35:04

Mike

There's little mistakes lead to major consequences. Get that second opinion. Let's make sure that you're making those correct financial choices. So that you get to truly enjoy that retirement you deserve. All right, folks. That'due south our prove this week. Jonathan, any last thoughts?

00:28:35:12 – 00:28:36:23

Jonathan

This was a great one. Mike enjoyed information technology.

00:28:36:29 – 00:28:41:01

Mike

Okay, fantastic. I hope you have a keen week. Nosotros'll see you or talk to you again next week.

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Source: https://iwanttoretirewell.com/retirement-2022-why-you-need-to-update-your-plan/

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