Episode Transcript
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Speaker 1 (00:00):
Live for the wgy iHeart Studios. Welcome to Retirement Ready
with your host Dave Kopek for the Retirement Ready Show.
Every week, Dave and his team discuss the ways they
can help people making formed decisions about a wide array
of retirement planning information that can support you and developing
a more certain financial future for you and your family.
(00:21):
Now it's time for Dave Kopek, WGY's retirement planning specialist.
Speaker 2 (00:46):
All right, it's another Saturday. It's another Retirement Ready. I'm
Dave Kopek, your host. We're going to be here for
the next hour on a topic specific show, and I'm
I'm live in the studio. I'm this beautiful Saturday, bright sunshine.
I don't know what's it about fifty five outside, Zach,
(01:06):
something like that. Fifty five. So if you're not out
and about, get up. I just talked to my son.
He just got out of his bed about an hour ago.
Ended up watching that fight last night, if you want
to call it a fight. He he told me, Zach
that the woman's fight beforehand was better than the main attraction.
Speaker 3 (01:28):
Did you hear that too, Yeah, a lot of people
enjoyed that fight. I thought the fight before that woman's
fight was also pretty well. Yeah that was Ramos and
the other kid. Yeah, I went full twelve round. Yeah,
that was what do they call it was like a
push and betting. Nobody won. What do they call that?
Ty a draw?
Speaker 2 (01:47):
Draw? There you go, it was a draw. I like
the drug. So we're here. It's always good to be here.
We have listeners now all throughout the United States. Uh,
not only here in the five one eight and Upstate
New York, but throughout the United States. We always get
phone calls from all over the country and that's good.
(02:08):
Hopefully you find the show informative, educational. But we are
the retirement planning group. I'm WGY's retirement planning specialists. All
we do is work in the pre and post retirement arena.
Most of our clients are hardworking savers. This is beginning
of my forty third year, which is hard to believe.
Our mothership where we custodian all of our assets fidelity
(02:32):
and we're open architecture, meaning we're independent, we have no bias,
no predetermined destination. We act in a fiduciary capacity, which
everybody says that today, so that's kind of a no brainer.
And we really focus in on three areas investment management,
asset protection, the legacy that you wish to leave your
loved ones. We have five locations now in New York State.
(02:56):
We have Syracuse, Oneona, Glens Falls, Albany, and Saratoga. And
if you want to get ahold of us, it's pretty simple.
All you gotta do is dial eight eight eight five
eight zero one nine nine eight eight eight five eight
zero one nine one nine. Check us out on the
web rpgretire dot com. Anything that we discuss, we're open
for a discussion. We offer a complementary consultation and any
(03:20):
of our five offices. We also do a lot with
ring Central and Zoom. That's becoming a big part of
our business. So if you'd like to do that instead
of coming face to face, we're more than willing to
accommodate that. And today we're talking about your concerns. That's
today's show your concerns and some of the things that
(03:43):
you can't ignore. A large investment banking firm just did
a survey and I'm going to go through this a
little bit, but it seems kind of redundant because some
of the stuff that you're gonna hear I've been on
radio now twenty five years. You're gonna basically say, well, jeez,
you've been talking about that, jess have been talking about that,
Jesus been talking about that. But my whole thing has
(04:06):
always been give them information, educate them, put them in
a position where they can be better off and better prepared,
and then it's up to you to take action, to
take action. So we're all quite well aware that, you know,
we all have different types of protection in our lifetime.
(04:27):
You know, when you're young, you buy a house, you
get house insurance, fire insurance, natural disaster, life is unpredictable,
you buy life insurance policies. But retirement concerns for most
people today ten tend to center on a couple of
things that are changing. And when I say that they're changing,
(04:51):
it's not a small change. It's earth shattering. What am
I talking about? Healthcare? Health plays into your not only
your work while you're accumulating assets, but health also plays
into a lot of your planning when you're post retirement
(05:15):
and how you're going to deal with it. Fidelity has
a calculation that they do every year in regard to
how much money you're going to need in your retirement
years for out of pocket expenses. Medical expenses are probably
one of the biggest risks to your retirement. That's why
(05:37):
I love listening to Lupiro and his team. If you're
not listening to that show before mine, you should be,
because I'll tell you what. They give you a ton
of information and lou is quite well aware because he's
been doing a little bit less than myself. But according
to Fidelity, the Mothership retirees, healthcare costs estimated right now
(06:00):
now for the average retired couple may need to have
approximately three hundred and thirty thousand dollars to cover health
care expenses and retirement out of pocket. Because Medicare only
covers part of those seas, many retirees face significant coverage gap.
(06:23):
And if you're living with a developed or chronic illness,
beware because the ticket and the price tag can be astronomical.
So today we're going to be talking about some of
the things that you have to be aware of. You know,
a lot of financial advisors get out of the radio
(06:44):
and they tell you how great they are managing money,
asset allocation, this type of investment, that type of investment.
And I can tell you right now that's only one
spoke of the wheel. And if you don't understand your
potential pitfalls and you don't address them, you could really
(07:06):
put yourself and your family and a whole bunch of hurt.
So bottom line is this, when you're mapping out your
retirement strategy pre and post, we're going to talk about
five or six topics today that I think are critical
as far as how you can get through your retirement
(07:30):
and basically have peace of mind. The first is, which
is a great concern for people today. I don't want
to outlive my assets. Number two, for most of us,
it will be the only guaranteed income stream with a
COLA A cost a living adjustment. When should I take
my SOLI security benefits? Number Three? What I just talked
(07:55):
about healthcare cost? How do I face it? How do
I deal with it? How do I basically pay for
these out of pocket expenses that are coming my way?
Interest rates? Where are you going to stay? Well, we've
been in a higher interest rate environment for an extended
(08:16):
period of time here, but guess what the FED is?
What decreasing interest rates? How far will they go? How
long will they go? Long term care which is not
covered by healthcare. For most of us, we have no
coverage at all. And finally, the last topic that we're
(08:37):
going to talk about today is how should I allocate
my assets? How should I allocate my money during my
retirement years to make sure that I can sleep at night.
I have what we call baseline income, guaranteed income, and
I can also put myself in a position that there's
(08:58):
adequate amounts of money there for wealth replacement for the
surviving spouse. Most of us, as we age, we do
not need the amount of money that we've accumulated. Some
of us will, some of us won't. But for those
that have accumulated a lot of pre tax money, you're
sitting on a powder keg. What Edslot, the CPA says,
(09:22):
is the retirement savings time bomb. What Natalie Choate says
the attorney that works in that arena, the mortgage on
your IRA never a step up in basis, always at
tax liability and ird income and respect to a deceiting.
(09:42):
So we're going to talk about some strategies ways that
you can hite hedge a little bit, some of the
pitfalls that you can basically avoid that as always, as always,
we're here for you today if you want to call in,
we'd love to hear from you. I'm live in the studio.
This is Retirement Ready. I'm Dave Kopek. I'm the president
(10:03):
of the Retirement Planning Group WGIS retirement planning specialists, been
doing a long time. I'm beginning my forty third year
on radio for twenty five So if you want to
try to figure out where you stand, what your position is,
we offer a complimentary consultation. All you have to do
is pick up the phone and motivate five wine eight
(10:26):
five eight zero one nine one nine. Outside the five
one eight, just add in an eight eight eight eight
eight eight five eight zero one nine one nine, or
check us out on the web rpgretire dot com. I'm
going to take my first break and I'll be right
back the eighty six percenters. Do you know that eighty
six percent of the population has no defined benefit pension plan?
(10:48):
For most of us, we have to take our life
savings and create a paycheck for the rest of our
lives in retirement. What is your plan for retirement income distribution?
How you manage your assets during the most critical years
of your lifetime. No Prize winning economist William Sharp has
called retirement income distribution the nastiest, hardest problem in finance.
He points out that investment uncertainty and mortality can derail
(11:11):
the most careful laid out retirement income plan. Call our
offices today to start the process of building a retirement
income distribution plan. After forty one years of being in
the financial services business, you need to start taking action
to start building your own personal retirement income distribution plan.
How do you do that? To take action? Five one eight,
five eight zero one nine nine. That's five one eight,
(11:32):
five eight zero one nine one nine or RPG retire
on the web. Don't procrastinate, motivate to start building your
retirement income distribution plan. Five win eight five eight zero
one nine one nine will run out of money in retirement?
Will your investments provide income for possibly decades? How do
you navigate the two greatest risk in retirement sequence of
returns in longevity at the Retirement Planning Group. Our Bucket
(11:55):
of Money approach addresses these concerns and we offer a
complementary counsulation to discuss this with you. Call our office
today for a free complimentary consultation to develop your own
personal retirement income distribution plan at five eight five EID
zero one nine nine. That's five eight five EID zero
one nine one nine a little twenty five six to four.
(12:35):
And how they got that? How'd they get that? Zach?
Where the hell did they come up with that name? Huh? Chicago?
All right, I'm Dave Kopek. Today we're talking about some
of the concerns that you just a recent survey that
was done by a major investment banking insurance firm and
(12:59):
the end result is not shocking to me at all,
not shocking to me at all. And I'm going to
talk a little bit about some of the things that
you should do pre and post retirement in order to
put yourself in a better position. The first is this, Okay,
you have to be open to discussion and not come
(13:21):
into any type of a meeting with any kind of
predetermined destination and where you think your money's going. And
we'll talk a little bit about that today, But bottom
line gets down to there's a lot of bad information
out there. In my opinion, the bad information is that
there's people that have agendas and they talk about products
(13:41):
that they have no idea what the hell they're talking about.
And that's the bottom line, And what I try to
do is to basically take all of the marketing and
all the fluff and all the sizzle off the table
and be factual with you as far as what exactly
exists out there now. The number one concern for you
(14:02):
as a consumer of financial guidance and consumer of financial
products is number one, outliving your money. Number one outliving
my assets. Generally, the population is what living longer. Most
(14:25):
of us, a lot of us have undersaved for retirement.
So the genuine concern for a lot of us is
what the possibility of not only having to work longer,
maybe until you die or have health issues, but basically
(14:46):
holding on to Social Security, maybe as long as you
can before you actually turn it on, because the longer
you wait, the higher your benefit will be. Common question
we get all the time, Dave, when should we draw
social Security? And my answer to that you need to
(15:07):
solve for baseline income guaranteed income. A lot of you
understand that you can get your benefit at age sixty two.
For widows male or female, you can get your benefit
at age sixty. The longer you wait, the bigger the payout.
(15:32):
So the decision about when to begin drawing social Security
benefits likely will be based largely on a couple of
decisions and a thought of where you are with your health,
how much longer do you want to work? And how
(15:53):
good have I been at accumulating assets money Now? Personally myself,
I love social Security because it has a cola. You
can't outlive the asset. And the bottom line gets down
to is that it's triple a paper. It's backed by
(16:17):
the US government, so you don't have to worry. You
can sleep at night. People say, well, geez, I got
to go get to Social Security because I think you know,
if I don't get it now, they're going to have
to change or to modify. I can tell you right now, folks,
if they change or modify social Security, there's going to
be anarchy. There'll be anarchy. Too many of you, too
many of the population depends on social Security in order
(16:40):
for you to have creature comforts, a roof over your head,
food to eat, et cetera, et cetera. So what we
like to do with social Security is to solve for
what we call baseline income, how much money am I
going to need in my retirement ears in order for
(17:01):
me to have quality of life? Now how much do
I have in my IRA? How much do I have
my four oh one K? Do I have money sitting
on the sidelines with non qualified assets? Will there be
a wealth transfer from parents, loved ones, aunts, uncles, etc.
(17:24):
So there's a lot of discussion that goes in when
should I collect social Security? You've heard the word bridge
the hill's a bridge? What do you mean? What's a bridge?
How do you bridge to a higher social Security benefit? Well,
you might want to spend down or get aggressive with
some of the assets that you've accumulated in your lifetime,
(17:45):
such as IRAS four oh one ks, TSAs four oh
three b's for fifty seven plans. Why is that? Because
if I had a nickel for every time that somebody
came into my office and said I don't want to
take the distribution, Well, I'm sorry, sorry, mister apple. You
got to take the distribution IRA four one k pre
(18:08):
tax dollars. As you age, the government has your plan.
It's called R and D required men of distribution, And
as you age, the distributions get larger rather than getting smaller.
So when you least want the distribution, they become the greatest.
And oh, by the way, that's also at the age
where you could possibly have a health event and the
(18:29):
IRA or the four to one K is going to
go to the nursing home and it's not going to
go to your spouse or your loved one. So when
to draw your social security and when overemphasize this, When
to draw your social security is specific to you, your family,
your spouse, your significant other, whatever it may be. Don't
(18:54):
assume going to get it and trying to break even
solves for what you're looking for it because as it
doesn't you want to solve or do I have enough
money coming in on a monthly basis in order for
me to have the creature comforts as I spoke about,
and also a little bit of fluff sitting on the sidelines.
(19:19):
You know, the wealth that we've created in this world
is pretty astronomical. I've been saying this week after week,
month after month. Eighty five trillion dollars with a T
will transfer over the next twenty to thirty years, the
greatest wealth transfer in the history of mankind. And it's
(19:39):
sad to say that about fifty percent of the population
right now would have about a you know, a zero
percent chance of being able to pay one thousand dollars
bill that was outside the boundaries. It was a nine
to one to one. So, as lu says in some
of his commercials, right, in order to succeed, you have
(20:03):
to have a plan, and I agree with that one
thousand percent. You have to have a plan. You need
to know if there is a nine to one one
where you can go, But you also need to understand
the assets that you've accumulated in your lifetime and how
they can be utilized for you going to maximize income,
(20:24):
minimize tax liability, and also have quality of life. I'll
say one thing, and there's no vig in it. We
make no money on this. For people that have become
asset rich cash poor, where a lot of your wealth
is inside your real estate, there is an option available
(20:46):
to you to tap into that resource while you're alive,
and it's called a reverse mortgage. Does that make sense
for everybody? Absolutely positively not. What it simply is, what
it's simple is is one of the tools in the toolbox.
It allows you to have access to the money without
(21:11):
possibly right getting kicked out because the way that the
government has it's set up now you have to go
through a certain amount of training seminars, workshops before you're
even eligible to tap into a reverse mortgage. And the
thing is is that you still stay in the home,
you still have the expenses, you still have to pay
(21:32):
the taxes, but you can take the equity out and
you're not obligated to pay it back. And oh by
the way, oh by the way, oh by the way,
all that money's tax free, phantom income. So if you're
trying to figure out, how do I get over the
(21:52):
hump here, how do I pay for maybe some of
these creature comforts. How do I go out and get
myself a nice, big, old thick stake or the drugs
that I need, or the trip or the vacation that
I always wanted to take. I have no desire or
need for legacy. I have no desire or need for
transfer of wealth to my kids. On it's called a
(22:14):
reverse mortgage. And as I said, and I want to
overemphasize this, there is nothing in this for the for
the retirement planning group. We have no compensation. We do
get compensated anyway whatsoever. But I've seen how reverse mortgages
have changed people's lives. I get a credit a Christmas
(22:35):
card every year from A gentleman who lived off of
Exit eight in Clifton Park, New York called me, said,
I listened to your show. I'd like to find out
a little bit more about the reverse mortgage. House was
paid off, You had a small pension, solid security benefit,
(22:59):
did not have a lot of savings. Basically wanted to
have some additional benefits for him and his wife during
their retirement years that he couldn't afford. He had no children,
there was no desire to transfer wealth and nieces or
nephews or any loved ones. So I said, listen, you
(23:22):
need to sit down with a reverse mortgage specialist to
see if this is something that could be beneficial to you.
After it was done, I got a heartfelt phone call
from him and his spouse that basically said that we
changed our luck their lives by introducing them to the
people that we introduced them to with the reverse mortgage.
(23:47):
Bottom line is this, he's tapping into a resource that
it's no different than if he had a can of
money out in the backyard buried. Now that can is
sitting on his counter inside his how he dips into
it when he needs it. It's a non taxable event,
and it's basically been a life changing event for him
(24:09):
and his spouse. So do not listen to the Monday
morning quarterbacks, do not listen to the screaming monkeys. Do
not listen to the people that are out there that
(24:30):
have all the answers at the water cooler. You want
to consider building out a plan, mapping out your retirement strategy,
emphasize your retirement strategy, and be aware of all the
options that are available to it. That's our goal at
(24:51):
the retirement planning group. We want you to avoid the
pitfalls we want you to avoid we call the bumps
in the row mode, how you can address them, how
you can avoid them, and ultimately going down that path
of the yellow brick road of retirement and not stopping
and getting hurt. So when we come back, we're going
(25:15):
to be talking about some of the other things that
you need to start thinking about. How to build out
your retirement income distribution plan should you go into retirement
with debt. And of course the most critical one I
consider it to be the most critical one is how
do I allocate my money? How do I allocate my
(25:36):
money during my retirement years in order to facilitate what
I need, not only for myself, but also for the
surviving spouse. Anything that we're talking about is of interest
to you, give me a call at my office five
eight five eight zero nine nine. I'm Dave Kopek. This
is retirement ready. All right, I'm Dave Putpack. We're back.
(26:15):
This is retirement ready. Hopefully you're out enjoying this beautiful,
beautiful day, nice and sunny and upstate New York. If
you're outside the five and eight, thank you for listening.
I know that we have a lot of listeners throughout
the United States on the iHeartRadio app. If you enjoy
the show, send us a little note. We'd love to
(26:37):
hear from you. There's any topic specifically that you'd like
to hear more of, we can facilitate that. I always
think that our listeners and the people that call in
always makes it a little bit more interesting for you.
I'm w Guy's retirement planning Specialists. I've been in the
business now. This is the beginning of my forty third year.
(26:59):
Twenty five years on radio now, which is hard to believe.
We clear all of our business through Fidelity, the Mothership.
We are an independent investment, registered investment advisory firm here
in upstate New York. We have no predetermined destination for
your assets. We act in a fiduciary capacity and we
really focus in on three areas investment management, asset protection
(27:22):
of course, the legacy that you wish to leave your
loved ones. We now have five locations in New York
where we meet a lot of our clients. Syracuse, Oneonic,
Lens Falls, Aubny, Saratoga. So if you have the desire
to sit down, we would love to have the opportunity
pretty simple. Just call eighty eight five eat zero one
(27:44):
nine one nine eight eight eight five eat zero one
nine one nine or check us out on the web
r p g retire dot com rpgretire dot com. We're
talking about your concerns. We're talking about a recent that
was just done by a major investment banking insurance firm,
and they're talking about what is keeping you up at
(28:07):
night and also what are the things that you're looking
for for your pre and post retirement years. I told
you out number one, you're worried about outliving your assets.
Number two, health care costs. Number three, when should I
take my Social Security benefits? And here's the big one. Okay,
(28:31):
here's the big one, how should I allocate my money?
Which we didn't talk about financial professionals such as myself,
and there's a lot of good ones, and I'm going
to tell you right now, ninety nine of the people
that are in my business are wonderful people, honest, high integrity.
(28:59):
You know, there's always a apple and every batch. So
bottom line gets down to don't focus on them, focus
on the people. If you're working with a good team,
stay with them. If you're concerned about the direction that
you're moving in. That's why we offer a complimentary consultation.
But financial professionals such as myself have traditionally advised their
(29:21):
clients to temper their aggressiveness with their asset management as
they get closer to their retirement years. What we call
the red zone, the red zone. The red zone means
is that you're five to seven years out before you
have to retire. You can't afford to go down thirty
(29:43):
forty to fifty seventy percent with your portfolio, and you
have to basically put yourself in a position where you
need to create a plan that will give you a
revenue stream in conjunction with social security that will last
you for a lifetime. One way to hedge against this risk,
(30:07):
if you want to use that big fat word hedge,
is that you need a mix of investments solutions. Okay,
you need a mix. Nothing that you possibly do you
would put one hundred percent of your money in. So
when we say diversification, it's across the board with all
(30:29):
types of investments, stocks, bonds, cash, alternative investments, life insurance products.
Go through the whole laundry list. Okay, there are many, many, many,
and I want to overemphasize many more options available today
(30:52):
that were available ten, fifteen, twenty years ago. Why is
that Because most of us have to take the hard
earned savings that we've accumulated in our lifetime and create
a pension benefit that will last a lifetime. That's a
(31:13):
daunting task. Whether it's Fidelity, Schwab, any of the major
investment banking firms, Vanguard, they all have on their pages
that if you're creating retirement income, you want to have
a certain amount of your money allocated into guaranteed types
(31:37):
of investments to pay for the basics. What we call
that the retirement planning group baseline income. Baseline income is
a combination of guaranteed investments. If you're fortunate to have
a small pension benefit, so secure, and of course, if
(32:03):
you're going to have some form of a guaranteed income
stream from rental properties, blah blah blah, and can go
through the whole laundry list. We have a software package
called e Money. We utilize the money through Fidelity to
basically give you a dashboard. The dashboard tells you exactly
(32:26):
where you stand. You can look at it in real time.
So here you are. You're fifty nine and a half,
You're sixty years old. You know you want to retire.
Most likely you're not going to retire until sixty five
because the cost of healthcare is astronomical, and you're going
(32:46):
to wait to aage sixty five where both you and
your spouse are eligible for Social Security benefits or one
of you Medicare. That soid Security Medicare benefits. Now, where
do you go? How do you figure this out? You
get CDs six and a half trillion dollars right now
(33:10):
is sitting in money market accounts? Why is that highest
amount that's ever been six and a half trillion dollars
sitting in money market accounts right now? It's also one
of the highest debts that we've had in credit cards
in the history of credit cards. Because one point three
or one point four trillion dollars right now, why do
(33:31):
you think this is happening? The average I think balance
on a credit card right now is about forty thousand dollars.
Forty thousand dollars. If people are are racked up on
credit card debt, I call it the cancer of the
financial services industry. I've seen too many people that have
(33:53):
come into my business that have had staggering amounts of
credit card debt that basically destroys the family, destroys them,
destroys their whole quality of life. So what do we
do well? The first thing that we do at the
retirement planning group is we attack the credit card debt.
(34:17):
Because you don't want to go into your retirement years
with a significant amount of credit card debt. So how
do we allocate the assets in order to do that?
At a gentleman that called me a few weeks ago,
this goes Dave, I listen to you on the radio.
I'm in a situation right now where I don't feel
good about it, but I'll tell you what it is.
(34:38):
I've got myself extended a little bit too much on
credit cards and I don't know how to pay them off.
And I said, well, I'll tell you how to pay
him off. Let's go through where you stand. Let's just
do a real quick balance sheet. So we did. We
found out that he's got pretty sizeable amount of money
in four oh one K. And I said, do you
do know that you can borrow against your four O
(34:59):
one K and you become your own banker. You know
what do you mean by that? They said, when you
borrow against your own four oh one K, the interest
that's paid into the four O one K is paid to
you on your account. In essence, you become the banker.
So you got accounts right now that you're at twenty
eight twenty nine percent that you're paying on credit cards.
(35:21):
You know it's not a magic wand because they're going
to base it off a prime but you're going to
pay around nine percent rather than twenty nine percent, but
that money gets paid to you. How do I do it? Well,
there's a form that has to be filled out. You
got to go through your custodian. You got to see
if it's a viable option, if they allow you to
do it. Most of them do, and he did it,
(35:46):
and he did it, and he significantly reduced his payment
on a monthly basis. He has a plan now in
place to reduce the debt before he walks on into
his retirement years. And basically what he's doing is that
he's eliminating one of the greatest pitfalls for people that
go inter retirement as far as bills and expenses on
a monthly basis. There's a remedy as long as you
(36:08):
sit down and have a plan. What I always love
to do is use the analogy of this. I was
fortunate years ago to buy a piece of property where
I've always wanted one, and my brother in law is
a contractor. My brother in law said, you know, we're
(36:29):
gonna build this house. I like this as the GC,
but you're gonna stand beside me and I'm gonna show
you exactly what to do. And I said, you got it, brother.
So the analogy that I have for building out a
retirement plan is no different. When you build a house.
You need a blueprint. What's the blueprint e money, what
(36:51):
I just talked to you about. Then you need to
implement the plan based off of the recommendations. What is
that let's start building the house. Taking a hole, put
into the footings, the foundation, you cap it, you frame it,
you put in the electrical you put in the plumbing,
you sheet rocket, you go through the whole laundry list.
(37:14):
I don't want to bore you with it, right right,
but you need to follow the plan. You need to
follow the blueprint. There was one company for years that
did a message about a blueprint for your retirement plan.
I thought it was a great piece. I might steal
it and start using it for the retirement planning group.
(37:34):
But no different than anything else in life. You have
to have a plan and you basically have to enact it,
motivate yourself to build out the plan, and then once
you get to your final destination, voila. Guess what. Now
you can walk out into your retirement years. That's why
when we're allocating assets, we are a major advocate of
(37:57):
getting the money out of the four one K at
fifty nine and a half and start building out your
own buckets of money. That's a whole other topic to
itself and a whole another show on how we build
out the buckets of money. I'm trying to give you
the big picture here, so once you finish the plan
(38:20):
and you implement right, we put all that data and
information and e money and it's pretty accurate. It will
show you percentage wise what the percentage is as far
as your ability to achieve your retirement goals, and we
like to be one hundred percent. That's the number that
(38:42):
we like. So we anticipate that some of the numbers
that are hypothetical that we have to put in, such
as inflation, such as our net return on our portfolios,
that are not guaranteed, we have to show. But we
use low historical numbers. We don't use pie in the
(39:04):
sky numbers. So, like I said, if you're worried about
running out of money, if you're worried about healthcare costs,
if you're worried about how do I allocate my money,
(39:26):
don't think you're unique and different in your ASYLO when
it comes to retirement. A lot of people are unprepared
and they have anxiety right now as far as how
do I pull the plug and jump into the water
of retirement. We can help. I've been doing a long time.
(39:52):
Fidelity has been doing it a long time. We have
all sorts of resources behind us through Fidelity. The Mothership,
proud to be affiliated with them, proud to be part
of their team. So again I need to take a break.
When I come back, I'm going to discuss a couple
of other items that you should be thinking about. But
(40:16):
as always, we welcome the opportunity to help you. You
can call us at one eight hundred talk WGY one
eight hundred eight two five fifty nine forty nine if
you have a question today and always, if you would
(40:36):
like to come in for your complimentary consultation, give us
a call at my office. As I said, we have
five locations here in New York. Now we have multiple
locations throughout Florida and other states through the Regis Corporation
we use. Those are executive suites. You want us to
have a chat, you want to sit down with us,
whether it's a train, plane, car, whatever, will come to
(41:01):
you once we have a conversation and we'll see if
we can help you out and put you in a
better spot so you can enjoy your retirement years. Maximize
the years and minimize the stress. That's what we try
to do. So we'll be right back after this quick break.
I'm Dave Kopek, Retirement Planning Group, We'll be right back.
(41:24):
You're a partner for success. David Kopek here WG WISE
retirement planning specialists the Retirement Planning Group. We understand that
retirees face many important decisions that can affect their long
term financial success. Some of these decisions revolve around making
investments that will help create a hedge against outliving their assets,
(41:45):
the impact of inflation, taxation, and rising health care couests.
Most of our clients like the time, the desire, or
the experience to manage their own investment portfolios. We consider
it to be an honor and a privilege to help
our client make sound investment decisions. THO will contribute to
a secure financial future for them. Because over ninety percent
(42:07):
of our clients are retirees with similar concerns, we are
in the best position to approach such challenges with experience
and skill. Give us a call today at five one
eight five AID zero one nine one nine five one
eight five eight zero one nine one nine or RPG
retire on the web. The greatest risk in retirement most
of us have no plan for We're insurance to cover
(42:29):
the expense. A long term care event can impoverish a
spouse drain your life savings and cost, stress and anxiety
on your family. What is your plan and how will
you pay for a long term care event? Call the
Retirement Planning Group today discuss options you should consider to
protect your estate and have choices and independence. Take action
call today five one eight five, AID zero one nine
(42:51):
nine or RPG retire on the web. All right, if
(43:13):
you are back, going quick Zach. Zach is my producer,
also major fan. I gotta get your ten bucks. Just
thought of that. Oh you ten dollars, your eagles, go Eagles.
(43:36):
They might do it this year. They might do it
this year.
Speaker 3 (43:41):
Don't drink me live on air.
Speaker 2 (43:42):
I won't Congratulations to CBA brothers another four years in
a row. Bobby Burns, you're unbelievable to coach over there,
eighty some kids per class. Got to applaud the guy.
I had a guy last night, tell me it. He
thinks he's the best high school coach, possibly in the country,
(44:05):
definitely in New York state. He says. We'll soon find out.
We'll soon find out. Both my sons went to CBA.
It's a great school. You got young kids, you got grandchildren,
or you got loved ones. You can't go wrong with
a CBA education in my opinion. All Right, we're talking
(44:29):
about the concerns that you have in today's crazy world,
the what ifs, and you know you can't do anything
about the stock in the bond market. You know. I
always say to you know, I'm a Warren Buffer believer.
(44:52):
If you're not willing to stay for ten years, you
shouldn't be in the stock market for ten minutes. Why
is that? Because no one has a the ball. I
said to myself before I was driving down here today.
What I should have done is gone back and look
what the screaming monkeys were saying before the beginning of
the year, because I think most of them were in
(45:13):
single digits where we thought we were going to be
in the stock market. We're far from that. I mean,
the stock markets having another rip roaring year. A lot
of people are very bullish on this new administration. But
just remember, because I've been doing a long time, there's
(45:36):
a thing called a black swan event. Black Swan events
are never never fun to deal with in the financial markets.
So if that is the case, you've got to have
a hedge. You can do it yourself, or you can
basically find a way that you can get yourself in
(45:56):
a position that you have adequate amounts of resources coming
in when there is an event, and when there has
been events, what has history shown us. You don't want
to sell, you don't want to jump off the boat.
You want to stay because the markets have the ability
to spring back pretty quickly. What you want to do
(46:19):
is have your dividends and your capital gains reinvested and
take advantage of buying stuff on the cheap. Now, there's
a gentleman out there by the name of Sharp, William Sharp.
You've heard one of his calculations called the Sharp ratio.
(46:41):
He is a Stanford University professor, has all sorts of
accolades and awards economists, and he basically talks about the
greatest risk for retirees is two things. And I talked
about this this morning. It's sequence of it of reach turns,
(47:01):
and it's also point of entry, point of entry, sequence
of returns and point of entry are you entering into
a bull market or a bear market? And the final
one that is his concern is called longevity. Longevity, how
long shall I live? Who knows? Right? If we knew that,
(47:24):
I don't know if that would be good or bad,
might be anarchy in the street. If we all knew,
then we were going to basically punch our ticket. But
I do know one thing for sure. This is a
pretty smart guy. And this is also a guy that
basically says you have to have predictable income in your retirement,
(47:47):
predictable income that will last you because you cannot solve
for longevity or sequence of returns. The only way you
can do that is to hedge. And the only way
that you can do it is by what guaranteed income?
Who gives us guaranteed income. It's a dirty little word
(48:07):
called annuities. Now I'm not going to get into this
in great detail because I'm going to have a show
that's going to be specific on annuities. And I always
hear the scream monkeys talking about them in a negative way.
And I've challenged anybody that wants to come on my
radio show instead across from me and talk about why
(48:28):
annuities are bad. I welcome them to come on anytime.
All you have to do is to call the show
instead across from me. Because annuities are no different than
if you go into a buffet. There's a lot of
different ones there's a lot of different options. There's a
lot of different abilities for you to either have income guaranteed,
(48:50):
growth buffered products that protect you on the downside. So
you tell me the product that you want to talk about,
and I can tell you exactly whether it makes cents
financial sense. Now, I've been in the business now for
almost forty three years. Hundreds of millions of dollars of
annuity products that have gone through our platform where we've
(49:14):
allocated them into clients accounts. I just talked to a
gentlemen out in Syracuse who works with a major investment
banking firm, major investment banking firm locally here in the
Capital District region, and they're doing hundreds of millions of
dollars a year in annuity products, hundreds of millions of
(49:37):
dollars of annuity products for people that have significant wealth.
So what's the common theme that you hear, Well, we
don't get in because they're expensive. That's not true. That's
not true. There are some annuity products that you can
get into that are low cost, just like a no
(49:59):
load fund, and the cost there's no m and a
mortality and the expense on them. The one in particular
charges you whether it's a million dollars or five hundred
thousand or whatever, it is twenty dollars a month to
be involved in twenty dollars and it has a whole
bunch of ets and no load funds, liquid get to
(50:22):
the money anytime. Blah blah blah. I'm not gonna wor
you with that. But do not have a predetermined destination
for your assets based off a conversation or a marketing
pitch by some other investment banking firm because they either
don't understand them or they have an ax to grind. Okay,
(50:47):
we believe at the retirement Planning Group, we think it's
better for you to be educated, informed and basically build
out a plan that is specific for you and your
family based on what you're trying to achieve and also
the quality of life and the income that is necessary
(51:08):
in order for you to sleep at night. So in
the very near future, maybe we'll have somebody take the challenge.
I'd love to have it, love to have it. You
hear them talk about it all the time, but I
don't get any phone calls where they want to step
up and sit down and have a discussion about it.
(51:32):
Our objective with our clients is one thing and one
thing only, peace of mind. Retirement should not be a
time of stress and anxiety. It should be time of
joy and basically sitting at the table and knowing that
you've done all you could in order to give yourself
(51:53):
quality of life without stress. So anything I'm talking about,
give us a buzz five pin eight ivy zero nine.
This has been Retirement Ready. Have a great thank you.
Speaker 1 (52:04):
For listening to Retirement Ready, hosted by Dave Kopek, w
G wise Retirement Planning Specialist. If you'd like to talk
with day for someone of the Retirement Planning Group, call
five one eight five EID zero that's five one maker
during business hours, or visit RPG retire dot com. The
(52:26):
Retirement Planning Group has five convenient offices located in Albany, Malta,
Glens Falls, Syracuse, and Oneana. Tune in again next week
for retirement planning strategies with Dave Kopek right here on
WG wise Retirement Ready. The information or services discussed on
this show is for informational purposes only and its not
(52:47):
intended to be personal financial advice. The investments and services
offered bias may not be suitable for all investors. If
you have any doubts as to the merits of an investment,
you should seek advice from an independent financial advisor.
Live for the wgy iHeart Studios. Welcome to Retirement Ready
with your host Dave Kopek for the Retirement Ready Show.
Every week, Dave and his team discuss the ways they
can help people making formed decisions about a wide array
of retirement planning information that can support you and developing
a more certain financial future for you and your family.
(00:21):
Now it's time for Dave Kopek, WGY's retirement planning specialist.
Speaker 2 (00:46):
All right, it's another Saturday. It's another Retirement Ready. I'm
Dave Kopek, your host. We're going to be here for
the next hour on a topic specific show, and I'm
I'm live in the studio. I'm this beautiful Saturday, bright sunshine.
I don't know what's it about fifty five outside, Zach,
(01:06):
something like that. Fifty five. So if you're not out
and about, get up. I just talked to my son.
He just got out of his bed about an hour ago.
Ended up watching that fight last night, if you want
to call it a fight. He he told me, Zach
that the woman's fight beforehand was better than the main attraction.
Speaker 3 (01:28):
Did you hear that too, Yeah, a lot of people
enjoyed that fight. I thought the fight before that woman's
fight was also pretty well. Yeah that was Ramos and
the other kid. Yeah, I went full twelve round. Yeah,
that was what do they call it was like a
push and betting. Nobody won. What do they call that?
Ty a draw?
Speaker 2 (01:47):
Draw? There you go, it was a draw. I like
the drug. So we're here. It's always good to be here.
We have listeners now all throughout the United States. Uh,
not only here in the five one eight and Upstate
New York, but throughout the United States. We always get
phone calls from all over the country and that's good.
(02:08):
Hopefully you find the show informative, educational. But we are
the retirement planning group. I'm WGY's retirement planning specialists. All
we do is work in the pre and post retirement arena.
Most of our clients are hardworking savers. This is beginning
of my forty third year, which is hard to believe.
Our mothership where we custodian all of our assets fidelity
(02:32):
and we're open architecture, meaning we're independent, we have no bias,
no predetermined destination. We act in a fiduciary capacity, which
everybody says that today, so that's kind of a no brainer.
And we really focus in on three areas investment management,
asset protection, the legacy that you wish to leave your
loved ones. We have five locations now in New York State.
(02:56):
We have Syracuse, Oneona, Glens Falls, Albany, and Saratoga. And
if you want to get ahold of us, it's pretty simple.
All you gotta do is dial eight eight eight five
eight zero one nine nine eight eight eight five eight
zero one nine one nine. Check us out on the
web rpgretire dot com. Anything that we discuss, we're open
for a discussion. We offer a complementary consultation and any
(03:20):
of our five offices. We also do a lot with
ring Central and Zoom. That's becoming a big part of
our business. So if you'd like to do that instead
of coming face to face, we're more than willing to
accommodate that. And today we're talking about your concerns. That's
today's show your concerns and some of the things that
(03:43):
you can't ignore. A large investment banking firm just did
a survey and I'm going to go through this a
little bit, but it seems kind of redundant because some
of the stuff that you're gonna hear I've been on
radio now twenty five years. You're gonna basically say, well, jeez,
you've been talking about that, jess have been talking about that,
Jesus been talking about that. But my whole thing has
(04:06):
always been give them information, educate them, put them in
a position where they can be better off and better prepared,
and then it's up to you to take action, to
take action. So we're all quite well aware that, you know,
we all have different types of protection in our lifetime.
(04:27):
You know, when you're young, you buy a house, you
get house insurance, fire insurance, natural disaster, life is unpredictable,
you buy life insurance policies. But retirement concerns for most
people today ten tend to center on a couple of
things that are changing. And when I say that they're changing,
(04:51):
it's not a small change. It's earth shattering. What am
I talking about? Healthcare? Health plays into your not only
your work while you're accumulating assets, but health also plays
into a lot of your planning when you're post retirement
(05:15):
and how you're going to deal with it. Fidelity has
a calculation that they do every year in regard to
how much money you're going to need in your retirement
years for out of pocket expenses. Medical expenses are probably
one of the biggest risks to your retirement. That's why
(05:37):
I love listening to Lupiro and his team. If you're
not listening to that show before mine, you should be,
because I'll tell you what. They give you a ton
of information and lou is quite well aware because he's
been doing a little bit less than myself. But according
to Fidelity, the Mothership retirees, healthcare costs estimated right now
(06:00):
now for the average retired couple may need to have
approximately three hundred and thirty thousand dollars to cover health
care expenses and retirement out of pocket. Because Medicare only
covers part of those seas, many retirees face significant coverage gap.
(06:23):
And if you're living with a developed or chronic illness,
beware because the ticket and the price tag can be astronomical.
So today we're going to be talking about some of
the things that you have to be aware of. You know,
a lot of financial advisors get out of the radio
(06:44):
and they tell you how great they are managing money,
asset allocation, this type of investment, that type of investment.
And I can tell you right now that's only one
spoke of the wheel. And if you don't understand your
potential pitfalls and you don't address them, you could really
(07:06):
put yourself and your family and a whole bunch of hurt.
So bottom line is this, when you're mapping out your
retirement strategy pre and post, we're going to talk about
five or six topics today that I think are critical
as far as how you can get through your retirement
(07:30):
and basically have peace of mind. The first is, which
is a great concern for people today. I don't want
to outlive my assets. Number two, for most of us,
it will be the only guaranteed income stream with a
COLA A cost a living adjustment. When should I take
my SOLI security benefits? Number Three? What I just talked
(07:55):
about healthcare cost? How do I face it? How do
I deal with it? How do I basically pay for
these out of pocket expenses that are coming my way?
Interest rates? Where are you going to stay? Well, we've
been in a higher interest rate environment for an extended
(08:16):
period of time here, but guess what the FED is?
What decreasing interest rates? How far will they go? How
long will they go? Long term care which is not
covered by healthcare. For most of us, we have no
coverage at all. And finally, the last topic that we're
(08:37):
going to talk about today is how should I allocate
my assets? How should I allocate my money during my
retirement years to make sure that I can sleep at night.
I have what we call baseline income, guaranteed income, and
I can also put myself in a position that there's
(08:58):
adequate amounts of money there for wealth replacement for the
surviving spouse. Most of us, as we age, we do
not need the amount of money that we've accumulated. Some
of us will, some of us won't. But for those
that have accumulated a lot of pre tax money, you're
sitting on a powder keg. What Edslot, the CPA says,
(09:22):
is the retirement savings time bomb. What Natalie Choate says
the attorney that works in that arena, the mortgage on
your IRA never a step up in basis, always at
tax liability and ird income and respect to a deceiting.
(09:42):
So we're going to talk about some strategies ways that
you can hite hedge a little bit, some of the
pitfalls that you can basically avoid that as always, as always,
we're here for you today if you want to call in,
we'd love to hear from you. I'm live in the studio.
This is Retirement Ready. I'm Dave Kopek. I'm the president
(10:03):
of the Retirement Planning Group WGIS retirement planning specialists, been
doing a long time. I'm beginning my forty third year
on radio for twenty five So if you want to
try to figure out where you stand, what your position is,
we offer a complimentary consultation. All you have to do
is pick up the phone and motivate five wine eight
(10:26):
five eight zero one nine one nine. Outside the five
one eight, just add in an eight eight eight eight
eight eight five eight zero one nine one nine, or
check us out on the web rpgretire dot com. I'm
going to take my first break and I'll be right
back the eighty six percenters. Do you know that eighty
six percent of the population has no defined benefit pension plan?
(10:48):
For most of us, we have to take our life
savings and create a paycheck for the rest of our
lives in retirement. What is your plan for retirement income distribution?
How you manage your assets during the most critical years
of your lifetime. No Prize winning economist William Sharp has
called retirement income distribution the nastiest, hardest problem in finance.
He points out that investment uncertainty and mortality can derail
(11:11):
the most careful laid out retirement income plan. Call our
offices today to start the process of building a retirement
income distribution plan. After forty one years of being in
the financial services business, you need to start taking action
to start building your own personal retirement income distribution plan.
How do you do that? To take action? Five one eight,
five eight zero one nine nine. That's five one eight,
(11:32):
five eight zero one nine one nine or RPG retire
on the web. Don't procrastinate, motivate to start building your
retirement income distribution plan. Five win eight five eight zero
one nine one nine will run out of money in retirement?
Will your investments provide income for possibly decades? How do
you navigate the two greatest risk in retirement sequence of
returns in longevity at the Retirement Planning Group. Our Bucket
(11:55):
of Money approach addresses these concerns and we offer a
complementary counsulation to discuss this with you. Call our office
today for a free complimentary consultation to develop your own
personal retirement income distribution plan at five eight five EID
zero one nine nine. That's five eight five EID zero
one nine one nine a little twenty five six to four.
(12:35):
And how they got that? How'd they get that? Zach?
Where the hell did they come up with that name? Huh? Chicago?
All right, I'm Dave Kopek. Today we're talking about some
of the concerns that you just a recent survey that
was done by a major investment banking insurance firm and
(12:59):
the end result is not shocking to me at all,
not shocking to me at all. And I'm going to
talk a little bit about some of the things that
you should do pre and post retirement in order to
put yourself in a better position. The first is this, Okay,
you have to be open to discussion and not come
(13:21):
into any type of a meeting with any kind of
predetermined destination and where you think your money's going. And
we'll talk a little bit about that today, But bottom
line gets down to there's a lot of bad information
out there. In my opinion, the bad information is that
there's people that have agendas and they talk about products
(13:41):
that they have no idea what the hell they're talking about.
And that's the bottom line, And what I try to
do is to basically take all of the marketing and
all the fluff and all the sizzle off the table
and be factual with you as far as what exactly
exists out there now. The number one concern for you
(14:02):
as a consumer of financial guidance and consumer of financial
products is number one, outliving your money. Number one outliving
my assets. Generally, the population is what living longer. Most
(14:25):
of us, a lot of us have undersaved for retirement.
So the genuine concern for a lot of us is
what the possibility of not only having to work longer,
maybe until you die or have health issues, but basically
(14:46):
holding on to Social Security, maybe as long as you
can before you actually turn it on, because the longer
you wait, the higher your benefit will be. Common question
we get all the time, Dave, when should we draw
social Security? And my answer to that you need to
(15:07):
solve for baseline income guaranteed income. A lot of you
understand that you can get your benefit at age sixty two.
For widows male or female, you can get your benefit
at age sixty. The longer you wait, the bigger the payout.
(15:32):
So the decision about when to begin drawing social Security
benefits likely will be based largely on a couple of
decisions and a thought of where you are with your health,
how much longer do you want to work? And how
(15:53):
good have I been at accumulating assets money Now? Personally myself,
I love social Security because it has a cola. You
can't outlive the asset. And the bottom line gets down
to is that it's triple a paper. It's backed by
(16:17):
the US government, so you don't have to worry. You
can sleep at night. People say, well, geez, I got
to go get to Social Security because I think you know,
if I don't get it now, they're going to have
to change or to modify. I can tell you right now, folks,
if they change or modify social Security, there's going to
be anarchy. There'll be anarchy. Too many of you, too
many of the population depends on social Security in order
(16:40):
for you to have creature comforts, a roof over your head,
food to eat, et cetera, et cetera. So what we
like to do with social Security is to solve for
what we call baseline income, how much money am I
going to need in my retirement ears in order for
(17:01):
me to have quality of life? Now how much do
I have in my IRA? How much do I have
my four oh one K? Do I have money sitting
on the sidelines with non qualified assets? Will there be
a wealth transfer from parents, loved ones, aunts, uncles, etc.
(17:24):
So there's a lot of discussion that goes in when
should I collect social Security? You've heard the word bridge
the hill's a bridge? What do you mean? What's a bridge?
How do you bridge to a higher social Security benefit? Well,
you might want to spend down or get aggressive with
some of the assets that you've accumulated in your lifetime,
(17:45):
such as IRAS four oh one ks, TSAs four oh
three b's for fifty seven plans. Why is that? Because
if I had a nickel for every time that somebody
came into my office and said I don't want to
take the distribution, Well, I'm sorry, sorry, mister apple. You
got to take the distribution IRA four one k pre
(18:08):
tax dollars. As you age, the government has your plan.
It's called R and D required men of distribution, And
as you age, the distributions get larger rather than getting smaller.
So when you least want the distribution, they become the greatest.
And oh, by the way, that's also at the age
where you could possibly have a health event and the
(18:29):
IRA or the four to one K is going to
go to the nursing home and it's not going to
go to your spouse or your loved one. So when
to draw your social security and when overemphasize this, When
to draw your social security is specific to you, your family,
your spouse, your significant other, whatever it may be. Don't
(18:54):
assume going to get it and trying to break even
solves for what you're looking for it because as it
doesn't you want to solve or do I have enough
money coming in on a monthly basis in order for
me to have the creature comforts as I spoke about,
and also a little bit of fluff sitting on the sidelines.
(19:19):
You know, the wealth that we've created in this world
is pretty astronomical. I've been saying this week after week,
month after month. Eighty five trillion dollars with a T
will transfer over the next twenty to thirty years, the
greatest wealth transfer in the history of mankind. And it's
(19:39):
sad to say that about fifty percent of the population
right now would have about a you know, a zero
percent chance of being able to pay one thousand dollars
bill that was outside the boundaries. It was a nine
to one to one. So, as lu says in some
of his commercials, right, in order to succeed, you have
(20:03):
to have a plan, and I agree with that one
thousand percent. You have to have a plan. You need
to know if there is a nine to one one
where you can go, But you also need to understand
the assets that you've accumulated in your lifetime and how
they can be utilized for you going to maximize income,
(20:24):
minimize tax liability, and also have quality of life. I'll
say one thing, and there's no vig in it. We
make no money on this. For people that have become
asset rich cash poor, where a lot of your wealth
is inside your real estate, there is an option available
(20:46):
to you to tap into that resource while you're alive,
and it's called a reverse mortgage. Does that make sense
for everybody? Absolutely positively not. What it simply is, what
it's simple is is one of the tools in the toolbox.
It allows you to have access to the money without
(21:11):
possibly right getting kicked out because the way that the
government has it's set up now you have to go
through a certain amount of training seminars, workshops before you're
even eligible to tap into a reverse mortgage. And the
thing is is that you still stay in the home,
you still have the expenses, you still have to pay
(21:32):
the taxes, but you can take the equity out and
you're not obligated to pay it back. And oh by
the way, oh by the way, oh by the way,
all that money's tax free, phantom income. So if you're
trying to figure out, how do I get over the
(21:52):
hump here, how do I pay for maybe some of
these creature comforts. How do I go out and get
myself a nice, big, old thick stake or the drugs
that I need, or the trip or the vacation that
I always wanted to take. I have no desire or
need for legacy. I have no desire or need for
transfer of wealth to my kids. On it's called a
(22:14):
reverse mortgage. And as I said, and I want to
overemphasize this, there is nothing in this for the for
the retirement planning group. We have no compensation. We do
get compensated anyway whatsoever. But I've seen how reverse mortgages
have changed people's lives. I get a credit a Christmas
(22:35):
card every year from A gentleman who lived off of
Exit eight in Clifton Park, New York called me, said,
I listened to your show. I'd like to find out
a little bit more about the reverse mortgage. House was
paid off, You had a small pension, solid security benefit,
(22:59):
did not have a lot of savings. Basically wanted to
have some additional benefits for him and his wife during
their retirement years that he couldn't afford. He had no children,
there was no desire to transfer wealth and nieces or
nephews or any loved ones. So I said, listen, you
(23:22):
need to sit down with a reverse mortgage specialist to
see if this is something that could be beneficial to you.
After it was done, I got a heartfelt phone call
from him and his spouse that basically said that we
changed our luck their lives by introducing them to the
people that we introduced them to with the reverse mortgage.
(23:47):
Bottom line is this, he's tapping into a resource that
it's no different than if he had a can of
money out in the backyard buried. Now that can is
sitting on his counter inside his how he dips into
it when he needs it. It's a non taxable event,
and it's basically been a life changing event for him
(24:09):
and his spouse. So do not listen to the Monday
morning quarterbacks, do not listen to the screaming monkeys. Do
not listen to the people that are out there that
(24:30):
have all the answers at the water cooler. You want
to consider building out a plan, mapping out your retirement strategy,
emphasize your retirement strategy, and be aware of all the
options that are available to it. That's our goal at
(24:51):
the retirement planning group. We want you to avoid the
pitfalls we want you to avoid we call the bumps
in the row mode, how you can address them, how
you can avoid them, and ultimately going down that path
of the yellow brick road of retirement and not stopping
and getting hurt. So when we come back, we're going
(25:15):
to be talking about some of the other things that
you need to start thinking about. How to build out
your retirement income distribution plan should you go into retirement
with debt. And of course the most critical one I
consider it to be the most critical one is how
do I allocate my money? How do I allocate my
(25:36):
money during my retirement years in order to facilitate what
I need, not only for myself, but also for the
surviving spouse. Anything that we're talking about is of interest
to you, give me a call at my office five
eight five eight zero nine nine. I'm Dave Kopek. This
is retirement ready. All right, I'm Dave Putpack. We're back.
(26:15):
This is retirement ready. Hopefully you're out enjoying this beautiful,
beautiful day, nice and sunny and upstate New York. If
you're outside the five and eight, thank you for listening.
I know that we have a lot of listeners throughout
the United States on the iHeartRadio app. If you enjoy
the show, send us a little note. We'd love to
(26:37):
hear from you. There's any topic specifically that you'd like
to hear more of, we can facilitate that. I always
think that our listeners and the people that call in
always makes it a little bit more interesting for you.
I'm w Guy's retirement planning Specialists. I've been in the
business now. This is the beginning of my forty third year.
(26:59):
Twenty five years on radio now, which is hard to believe.
We clear all of our business through Fidelity, the Mothership.
We are an independent investment, registered investment advisory firm here
in upstate New York. We have no predetermined destination for
your assets. We act in a fiduciary capacity and we
really focus in on three areas investment management, asset protection
(27:22):
of course, the legacy that you wish to leave your
loved ones. We now have five locations in New York
where we meet a lot of our clients. Syracuse, Oneonic,
Lens Falls, Aubny, Saratoga. So if you have the desire
to sit down, we would love to have the opportunity
pretty simple. Just call eighty eight five eat zero one
(27:44):
nine one nine eight eight eight five eat zero one
nine one nine or check us out on the web
r p g retire dot com rpgretire dot com. We're
talking about your concerns. We're talking about a recent that
was just done by a major investment banking insurance firm,
and they're talking about what is keeping you up at
(28:07):
night and also what are the things that you're looking
for for your pre and post retirement years. I told
you out number one, you're worried about outliving your assets.
Number two, health care costs. Number three, when should I
take my Social Security benefits? And here's the big one. Okay,
(28:31):
here's the big one, how should I allocate my money?
Which we didn't talk about financial professionals such as myself,
and there's a lot of good ones, and I'm going
to tell you right now, ninety nine of the people
that are in my business are wonderful people, honest, high integrity.
(28:59):
You know, there's always a apple and every batch. So
bottom line gets down to don't focus on them, focus
on the people. If you're working with a good team,
stay with them. If you're concerned about the direction that
you're moving in. That's why we offer a complimentary consultation.
But financial professionals such as myself have traditionally advised their
(29:21):
clients to temper their aggressiveness with their asset management as
they get closer to their retirement years. What we call
the red zone, the red zone. The red zone means
is that you're five to seven years out before you
have to retire. You can't afford to go down thirty
(29:43):
forty to fifty seventy percent with your portfolio, and you
have to basically put yourself in a position where you
need to create a plan that will give you a
revenue stream in conjunction with social security that will last
you for a lifetime. One way to hedge against this risk,
(30:07):
if you want to use that big fat word hedge,
is that you need a mix of investments solutions. Okay,
you need a mix. Nothing that you possibly do you
would put one hundred percent of your money in. So
when we say diversification, it's across the board with all
(30:29):
types of investments, stocks, bonds, cash, alternative investments, life insurance products.
Go through the whole laundry list. Okay, there are many, many, many,
and I want to overemphasize many more options available today
(30:52):
that were available ten, fifteen, twenty years ago. Why is
that Because most of us have to take the hard
earned savings that we've accumulated in our lifetime and create
a pension benefit that will last a lifetime. That's a
(31:13):
daunting task. Whether it's Fidelity, Schwab, any of the major
investment banking firms, Vanguard, they all have on their pages
that if you're creating retirement income, you want to have
a certain amount of your money allocated into guaranteed types
(31:37):
of investments to pay for the basics. What we call
that the retirement planning group baseline income. Baseline income is
a combination of guaranteed investments. If you're fortunate to have
a small pension benefit, so secure, and of course, if
(32:03):
you're going to have some form of a guaranteed income
stream from rental properties, blah blah blah, and can go
through the whole laundry list. We have a software package
called e Money. We utilize the money through Fidelity to
basically give you a dashboard. The dashboard tells you exactly
(32:26):
where you stand. You can look at it in real time.
So here you are. You're fifty nine and a half,
You're sixty years old. You know you want to retire.
Most likely you're not going to retire until sixty five
because the cost of healthcare is astronomical, and you're going
(32:46):
to wait to aage sixty five where both you and
your spouse are eligible for Social Security benefits or one
of you Medicare. That soid Security Medicare benefits. Now, where
do you go? How do you figure this out? You
get CDs six and a half trillion dollars right now
(33:10):
is sitting in money market accounts? Why is that highest
amount that's ever been six and a half trillion dollars
sitting in money market accounts right now? It's also one
of the highest debts that we've had in credit cards
in the history of credit cards. Because one point three
or one point four trillion dollars right now, why do
(33:31):
you think this is happening? The average I think balance
on a credit card right now is about forty thousand dollars.
Forty thousand dollars. If people are are racked up on
credit card debt, I call it the cancer of the
financial services industry. I've seen too many people that have
(33:53):
come into my business that have had staggering amounts of
credit card debt that basically destroys the family, destroys them,
destroys their whole quality of life. So what do we
do well? The first thing that we do at the
retirement planning group is we attack the credit card debt.
(34:17):
Because you don't want to go into your retirement years
with a significant amount of credit card debt. So how
do we allocate the assets in order to do that?
At a gentleman that called me a few weeks ago,
this goes Dave, I listen to you on the radio.
I'm in a situation right now where I don't feel
good about it, but I'll tell you what it is.
(34:38):
I've got myself extended a little bit too much on
credit cards and I don't know how to pay them off.
And I said, well, I'll tell you how to pay
him off. Let's go through where you stand. Let's just
do a real quick balance sheet. So we did. We
found out that he's got pretty sizeable amount of money
in four oh one K. And I said, do you
do know that you can borrow against your four O
(34:59):
one K and you become your own banker. You know
what do you mean by that? They said, when you
borrow against your own four oh one K, the interest
that's paid into the four O one K is paid to
you on your account. In essence, you become the banker.
So you got accounts right now that you're at twenty
eight twenty nine percent that you're paying on credit cards.
(35:21):
You know it's not a magic wand because they're going
to base it off a prime but you're going to
pay around nine percent rather than twenty nine percent, but
that money gets paid to you. How do I do it? Well,
there's a form that has to be filled out. You
got to go through your custodian. You got to see
if it's a viable option, if they allow you to
do it. Most of them do, and he did it,
(35:46):
and he did it, and he significantly reduced his payment
on a monthly basis. He has a plan now in
place to reduce the debt before he walks on into
his retirement years. And basically what he's doing is that
he's eliminating one of the greatest pitfalls for people that
go inter retirement as far as bills and expenses on
a monthly basis. There's a remedy as long as you
(36:08):
sit down and have a plan. What I always love
to do is use the analogy of this. I was
fortunate years ago to buy a piece of property where
I've always wanted one, and my brother in law is
a contractor. My brother in law said, you know, we're
(36:29):
gonna build this house. I like this as the GC,
but you're gonna stand beside me and I'm gonna show
you exactly what to do. And I said, you got it, brother.
So the analogy that I have for building out a
retirement plan is no different. When you build a house.
You need a blueprint. What's the blueprint e money, what
(36:51):
I just talked to you about. Then you need to
implement the plan based off of the recommendations. What is
that let's start building the house. Taking a hole, put
into the footings, the foundation, you cap it, you frame it,
you put in the electrical you put in the plumbing,
you sheet rocket, you go through the whole laundry list.
(37:14):
I don't want to bore you with it, right right,
but you need to follow the plan. You need to
follow the blueprint. There was one company for years that
did a message about a blueprint for your retirement plan.
I thought it was a great piece. I might steal
it and start using it for the retirement planning group.
(37:34):
But no different than anything else in life. You have
to have a plan and you basically have to enact it,
motivate yourself to build out the plan, and then once
you get to your final destination, voila. Guess what. Now
you can walk out into your retirement years. That's why
when we're allocating assets, we are a major advocate of
(37:57):
getting the money out of the four one K at
fifty nine and a half and start building out your
own buckets of money. That's a whole other topic to
itself and a whole another show on how we build
out the buckets of money. I'm trying to give you
the big picture here, so once you finish the plan
(38:20):
and you implement right, we put all that data and
information and e money and it's pretty accurate. It will
show you percentage wise what the percentage is as far
as your ability to achieve your retirement goals, and we
like to be one hundred percent. That's the number that
(38:42):
we like. So we anticipate that some of the numbers
that are hypothetical that we have to put in, such
as inflation, such as our net return on our portfolios,
that are not guaranteed, we have to show. But we
use low historical numbers. We don't use pie in the
(39:04):
sky numbers. So, like I said, if you're worried about
running out of money, if you're worried about healthcare costs,
if you're worried about how do I allocate my money,
(39:26):
don't think you're unique and different in your ASYLO when
it comes to retirement. A lot of people are unprepared
and they have anxiety right now as far as how
do I pull the plug and jump into the water
of retirement. We can help. I've been doing a long time.
(39:52):
Fidelity has been doing it a long time. We have
all sorts of resources behind us through Fidelity. The Mothership,
proud to be affiliated with them, proud to be part
of their team. So again I need to take a break.
When I come back, I'm going to discuss a couple
of other items that you should be thinking about. But
(40:16):
as always, we welcome the opportunity to help you. You
can call us at one eight hundred talk WGY one
eight hundred eight two five fifty nine forty nine if
you have a question today and always, if you would
(40:36):
like to come in for your complimentary consultation, give us
a call at my office. As I said, we have
five locations here in New York. Now we have multiple
locations throughout Florida and other states through the Regis Corporation
we use. Those are executive suites. You want us to
have a chat, you want to sit down with us,
whether it's a train, plane, car, whatever, will come to
(41:01):
you once we have a conversation and we'll see if
we can help you out and put you in a
better spot so you can enjoy your retirement years. Maximize
the years and minimize the stress. That's what we try
to do. So we'll be right back after this quick break.
I'm Dave Kopek, Retirement Planning Group, We'll be right back.
(41:24):
You're a partner for success. David Kopek here WG WISE
retirement planning specialists the Retirement Planning Group. We understand that
retirees face many important decisions that can affect their long
term financial success. Some of these decisions revolve around making
investments that will help create a hedge against outliving their assets,
(41:45):
the impact of inflation, taxation, and rising health care couests.
Most of our clients like the time, the desire, or
the experience to manage their own investment portfolios. We consider
it to be an honor and a privilege to help
our client make sound investment decisions. THO will contribute to
a secure financial future for them. Because over ninety percent
(42:07):
of our clients are retirees with similar concerns, we are
in the best position to approach such challenges with experience
and skill. Give us a call today at five one
eight five AID zero one nine one nine five one
eight five eight zero one nine one nine or RPG
retire on the web. The greatest risk in retirement most
of us have no plan for We're insurance to cover
(42:29):
the expense. A long term care event can impoverish a
spouse drain your life savings and cost, stress and anxiety
on your family. What is your plan and how will
you pay for a long term care event? Call the
Retirement Planning Group today discuss options you should consider to
protect your estate and have choices and independence. Take action
call today five one eight five, AID zero one nine
(42:51):
nine or RPG retire on the web. All right, if
(43:13):
you are back, going quick Zach. Zach is my producer,
also major fan. I gotta get your ten bucks. Just
thought of that. Oh you ten dollars, your eagles, go Eagles.
(43:36):
They might do it this year. They might do it
this year.
Speaker 3 (43:41):
Don't drink me live on air.
Speaker 2 (43:42):
I won't Congratulations to CBA brothers another four years in
a row. Bobby Burns, you're unbelievable to coach over there,
eighty some kids per class. Got to applaud the guy.
I had a guy last night, tell me it. He
thinks he's the best high school coach, possibly in the country,
(44:05):
definitely in New York state. He says. We'll soon find out.
We'll soon find out. Both my sons went to CBA.
It's a great school. You got young kids, you got grandchildren,
or you got loved ones. You can't go wrong with
a CBA education in my opinion. All Right, we're talking
(44:29):
about the concerns that you have in today's crazy world,
the what ifs, and you know you can't do anything
about the stock in the bond market. You know. I
always say to you know, I'm a Warren Buffer believer.
(44:52):
If you're not willing to stay for ten years, you
shouldn't be in the stock market for ten minutes. Why
is that? Because no one has a the ball. I
said to myself before I was driving down here today.
What I should have done is gone back and look
what the screaming monkeys were saying before the beginning of
the year, because I think most of them were in
(45:13):
single digits where we thought we were going to be
in the stock market. We're far from that. I mean,
the stock markets having another rip roaring year. A lot
of people are very bullish on this new administration. But
just remember, because I've been doing a long time, there's
(45:36):
a thing called a black swan event. Black Swan events
are never never fun to deal with in the financial markets.
So if that is the case, you've got to have
a hedge. You can do it yourself, or you can
basically find a way that you can get yourself in
(45:56):
a position that you have adequate amounts of resources coming
in when there is an event, and when there has
been events, what has history shown us. You don't want
to sell, you don't want to jump off the boat.
You want to stay because the markets have the ability
to spring back pretty quickly. What you want to do
(46:19):
is have your dividends and your capital gains reinvested and
take advantage of buying stuff on the cheap. Now, there's
a gentleman out there by the name of Sharp, William Sharp.
You've heard one of his calculations called the Sharp ratio.
(46:41):
He is a Stanford University professor, has all sorts of
accolades and awards economists, and he basically talks about the
greatest risk for retirees is two things. And I talked
about this this morning. It's sequence of it of reach turns,
(47:01):
and it's also point of entry, point of entry, sequence
of returns and point of entry are you entering into
a bull market or a bear market? And the final
one that is his concern is called longevity. Longevity, how
long shall I live? Who knows? Right? If we knew that,
(47:24):
I don't know if that would be good or bad,
might be anarchy in the street. If we all knew,
then we were going to basically punch our ticket. But
I do know one thing for sure. This is a
pretty smart guy. And this is also a guy that
basically says you have to have predictable income in your retirement,
(47:47):
predictable income that will last you because you cannot solve
for longevity or sequence of returns. The only way you
can do that is to hedge. And the only way
that you can do it is by what guaranteed income?
Who gives us guaranteed income. It's a dirty little word
(48:07):
called annuities. Now I'm not going to get into this
in great detail because I'm going to have a show
that's going to be specific on annuities. And I always
hear the scream monkeys talking about them in a negative way.
And I've challenged anybody that wants to come on my
radio show instead across from me and talk about why
(48:28):
annuities are bad. I welcome them to come on anytime.
All you have to do is to call the show
instead across from me. Because annuities are no different than
if you go into a buffet. There's a lot of
different ones there's a lot of different options. There's a
lot of different abilities for you to either have income guaranteed,
(48:50):
growth buffered products that protect you on the downside. So
you tell me the product that you want to talk about,
and I can tell you exactly whether it makes cents
financial sense. Now, I've been in the business now for
almost forty three years. Hundreds of millions of dollars of
annuity products that have gone through our platform where we've
(49:14):
allocated them into clients accounts. I just talked to a
gentlemen out in Syracuse who works with a major investment
banking firm, major investment banking firm locally here in the
Capital District region, and they're doing hundreds of millions of
dollars a year in annuity products, hundreds of millions of
(49:37):
dollars of annuity products for people that have significant wealth.
So what's the common theme that you hear, Well, we
don't get in because they're expensive. That's not true. That's
not true. There are some annuity products that you can
get into that are low cost, just like a no
(49:59):
load fund, and the cost there's no m and a
mortality and the expense on them. The one in particular
charges you whether it's a million dollars or five hundred
thousand or whatever, it is twenty dollars a month to
be involved in twenty dollars and it has a whole
bunch of ets and no load funds, liquid get to
(50:22):
the money anytime. Blah blah blah. I'm not gonna wor
you with that. But do not have a predetermined destination
for your assets based off a conversation or a marketing
pitch by some other investment banking firm because they either
don't understand them or they have an ax to grind. Okay,
(50:47):
we believe at the retirement Planning Group, we think it's
better for you to be educated, informed and basically build
out a plan that is specific for you and your
family based on what you're trying to achieve and also
the quality of life and the income that is necessary
(51:08):
in order for you to sleep at night. So in
the very near future, maybe we'll have somebody take the challenge.
I'd love to have it, love to have it. You
hear them talk about it all the time, but I
don't get any phone calls where they want to step
up and sit down and have a discussion about it.
(51:32):
Our objective with our clients is one thing and one
thing only, peace of mind. Retirement should not be a
time of stress and anxiety. It should be time of
joy and basically sitting at the table and knowing that
you've done all you could in order to give yourself
(51:53):
quality of life without stress. So anything I'm talking about,
give us a buzz five pin eight ivy zero nine.
This has been Retirement Ready. Have a great thank you.
Speaker 1 (52:04):
For listening to Retirement Ready, hosted by Dave Kopek, w
G wise Retirement Planning Specialist. If you'd like to talk
with day for someone of the Retirement Planning Group, call
five one eight five EID zero that's five one maker
during business hours, or visit RPG retire dot com. The
(52:26):
Retirement Planning Group has five convenient offices located in Albany, Malta,
Glens Falls, Syracuse, and Oneana. Tune in again next week
for retirement planning strategies with Dave Kopek right here on
WG wise Retirement Ready. The information or services discussed on
this show is for informational purposes only and its not
(52:47):
intended to be personal financial advice. The investments and services
offered bias may not be suitable for all investors. If
you have any doubts as to the merits of an investment,
you should seek advice from an independent financial advisor.
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