Annuities 101 for LGBTQ+ Retirees: Income, Protection, and Pride

Episode 55: Audio automatically transcribed by Sonix

Episode 55: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
When planning for retirement. Trust is everything, and that's just one way. Nationwide's peak ten fixed index annuity stands out. With nationwide peak ten, you will benefit from protection for your principal, shielding your initial investment from market downturns. Growth opportunities linked to market performance. Without the risk of direct market exposure and a guaranteed income stream you can never outlive. Nationwide's reputation for reliability means you can plan for tomorrow and have confidence today. Call us now at (855) 246-9211 or go to take pride in retirement to connect with an advisor and learn how peak ten can help secure your financial future. Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced are subject to the claims paying ability of Nationwide Life and Annuity Insurance Company. Nationwide peak ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its other entities are associated or affiliated with Active Wealth Management. Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy. Welcome to Take Pride in Retirement, the podcast dedicated to helping members of the LGBTQ+ community protect and grow their hard earned money.

Speaker1:
Get set for a show full of education and insights with your host and advisor, Matt McClure. We recognize every family is unique. The goal of the show is to help you achieve financial freedom so you and your loved ones can have the retirement you've always dreamed of, a retirement you can take pride in, no matter who you are, where you're from, or who you love. So now let's start the show. Here's Matt McClure. Hello and welcome once again to another edition of Take Pride in Retirement. I'm Matt McClure, your host, your advisor, your friend, your pal, and your confidant. Thanks so much for being a part of things. This is the podcast where we empower LGBTQ+ individuals and couples to live proudly and plan wisely for the retirement they deserve. You know, whether you're planning for retirement with a partner, with a spouse, a chosen family on your own, whatever your situation is, this show is really like, you know, the safe space for you because those are the issues that we address each and every time we get together. And we talk about smart financial strategies with pride at the center of everything that we focus on. So, you know, if you're listening from, uh, my hometown of Atlanta, if you're in, uh, other, uh, sort of gay meccas around the country, whether you're in Palm Springs or Provincetown or anywhere in between, if you are in the middle of flyover country.

Speaker1:
Thank you so much for being a part of things. I'm so, so glad that you're here. Um, of course, before we kind of dive into everything, I want to say that, uh, you can always reach out to me a couple of ways to do that. Take pride in retirement. Com is the website. It's take pride in retirement. Com and, uh, you can go there a lot of stuff that you can do, actually. Um, no, I don't like games or anything that you can play on the website, but maybe I should look into that and get more web traffic. Um, but I'd go there myself more often. Probably. But no. Uh, seriously, though, you can, um, see a nice, uh, welcome video there from me. Learn a little bit more about me, my life, and why I do what I do. Um, but you can also reach out to me with any questions that you might have. You can schedule a complimentary consultation about your financial situation. See if you want to get your house in order, financially speaking, or if your house is already in financial order. I'll let you know that. And, um, you know, that would be, uh, the emphasis is like, you know, just analyzing your situation and telling you where you are.

Speaker1:
And if you're in a great spot, that's awesome. And we don't have to continue working together at all. Uh, beyond that, beyond just sort of the analysis phase. Right. But if I can improve things and, you know, nine times out of ten I can, then I will and we can continue working together and work those things out. But, um, yeah, that's really why I do what I do is to help people situations financially, um, be better so that you are prepared for your retirement years and making sure that you're doing the little things and the big things and all of the things in between to make sure that you've, you know, got all of those T's crossed and I's dotted, as it were. So take pride in retirement. That's the website. Bunch of stuff there, including all the past episodes of the podcast. You can subscribe anywhere you get your podcasts. Yes, I'm on all the big biggies out there. Um, it's, uh, you know, Apple, Spotify, I, um, I heart, uh, you know, Pandora audible anywhere you can think of that um, might have podcasts available. Uh, chances are I'm there, and so please subscribe all the places. So you get annoyed with a bunch of notifications? No, no. Wherever you get your podcasts, just subscribe there.

Speaker1:
I would love it. Um, it really helps us grow the show and spread the good word. And, um, of course, you know, leave us a nice rating and some wonderful comments there. I'd appreciate that if you don't like us, uh, keep it to yourself. And, uh, um, you can also give me a call at 85524692 11 (855) 246-9211. That is the number to call for that free consultation. I'm also on Facebook, I'm on Instagram, I am on threads as take pride in retirement at all of those places. Of course the YouTube channel is very active these days as well, with several new videos each and every week. So yeah, we're uh, we're doing a lot here at Take pride in retirement. And so I really appreciate you being along for at least part of the ride. Um, all right. So we've got a packed episode today, a lot of great, powerful, um, strategies and insights into your finances. And we're going to talk about annuities to start off with annuities 101. You know, it's kind of like the just the base level okay. What is an annuity. I may have heard about annuities before. I know the term. I might have heard some some bad things about them, some good things about them somewhere, kind of, you know, in between sort of lukewarm things about them. We're going to kind of do a bit of not necessarily the deepest of dives, but a deep enough dive so that, you know, kind of what annuities are all about.

Speaker1:
And the fact that, you know, some some are good, some are bad, some are good in some situations and not others. It all depends on your current situation and your your finances. Right? So that's what we're going to look at first of all. Um, also it can be tough in life, at least for me. If you're kind of like the personality type that I am, to sort of declare victory about things, right? I'm not like such a I hate to use this word, um, for obvious reasons, but a braggadocious I'm not I'm not a very braggadocious kind of person. But, um, so, you know, that can make it hard to be sort of like, yeah, I won this thing, or I have conquered my, my foes or whatever, you know, just declaring victory in whatever way you want to declare victory. But we're going to talk a bit about how to declare victory in your finances, in that the closer you get to retirement, if you've done all of the things, if you've checked the boxes along the way, if you have that nest egg saved up, if you've got all the, you know, if you've maxed out those contributions to your 401 K every year, if you've maxed out your contributions to your IRA, um, a Roth account, whatever it might be, um, then you're in a good place when you get close to retirement and then you've already won the game.

Speaker1:
Declare victory. Right? Don't then say, um, okay. Why? I've already won, but I'm going to keep on playing. You know, you got to then move into protection mode and protect what you've earned. Protect what you have and what you've invested and what you've saved over the years. So that's what that's going to be about. We'll talk about some market volatility. Of course we've seen more of that rearing its ugly head here lately. So we'll talk about it and some strategies there to weather any volatility that might come your way. We'll talk about hidden fees that tend to drag you down how to eliminate those. And really just you know, overall focus on building a portfolio that reflects your values and your goals in life. Most important thing is making sure that your goals are met and that you're able to to meet your goals with the finances that you have at your disposal. We'll get you there. All right. Um, first, though, let's, as we always do, get a little inspiration for our conversation, shall we? And we'll do that with our quote of the week.

Speaker2:
And now for some financial wisdom. It's time for the quote of the week.

Speaker1:
And this week's quote, kind of like last week's is an anonymous quote. But this one, you know, probably is from someone who owned a calculator and wore sequins. Um, because I love this. Uh, found this, uh, just today, actually, as I was doing some last minute research for the show and it says this, you deserve a retirement as fabulous as you are, but only if you plan for it. You deserve a retirement as fabulous as you are, but only if you plan for it. Uh, you know everybody. And that's why I always say, you know, like, no matter who you are, where you come from, who you love, how you identify, how much money you have, you deserve a retirement. You can take pride in period, like, but you know, you've got to do the planning along the way. And if you feel like you're behind. Maybe if you're getting closer to the retirement years, maybe that date you've circled on the calendar, you're getting closer to that date, but you don't feel quite ready. I would love to help you get ready. First of all, if you stay ready, you don't have to get ready. Um, but you stay. Stay ready. Uh, and and get ready so that you can stay ready. Right? For the long term. That's what it's all about. And that's what this show is all about. And you know, by and large, that is what annuities can be all about for your retirement plan.

Speaker1:
And yeah, we're going to talk a bit about annuities, what they are and how they work. Right. I mean these are probably you've over the years, if you've heard anything about annuities, you've probably heard some misinformation about annuities, because there are people out there who just badmouth annuities, um, who are trying to sell you something else, basically. And that's why they badmouth annuities. Um, and they are Are either people who are doing that, or there are people who just don't understand what annuities are and have believed the bad things that they have heard about them, without actually doing the research and and learning about annuities. You know, I've done the research I have. I've taken classes, I've gotten certifications, I've done all of the things. So as a matter of fact, if you watch, um, the video version of the show over on YouTube, uh, you can see or if you're watching YouTube right now, hi. Um, you can you can see down at the bottom of the screen the, um, behind my name. It says Matt McClure, comma. Cass. Well, Cass actually stands for certified annuity specialist. And so that, um, certification is something that I have studied for and, and am proud to put behind my name because it means that, yeah, I've taken the time to actually learn what annuities really are and not, you know, any of the the misinformation and disinformation that's out there. I can I can, you know, help you sift through and see through that.

Speaker1:
So basically kind of in their most basic form, an annuity is a financial contract between you and an insurance company. A life insurance company, generally speaking. Um, because you'll often see like, um, you know, so and such and we'll just say Acme, uh, for lack of a better term. So I'm not calling out any one particular carrier or anything, but it was like, it'll be like Acme, uh, Life and Annuity Insurance Company, right? Something like that is usually kind of in, in the name of the company. And so what happens is you pay in either in a lump sum or you can pay over time. In a lot of cases, sometimes you can pay in a big lump sum in the beginning. And then if you want to add more, um, in that premium, which that's, that's what it's called. It's like an, you know, paying an insurance premium basically. So, you know, it's it's an insurance company. So they use that terminology. Right. So that um, insurance premium, that annuity premium that you pay up upfront. In many cases you can then, depending on the structure of the contract, add to it within the first year or 18 months or something like that. If you want to put more money to work for you inside it. And so then in return, that insurer is going to pay you regular income for a certain period of time, whether that is for a certain number of years.

Speaker1:
You can structure them that way, especially with something that is like a single premium immediate annuity that we call a spia Spia those, generally speaking, you can structure to be paid out for a certain number of years or for life or any other type of, of, uh, period of time, I guess I should say a payout period. Um, you can structure it where, you know, it's for your own lifetime or for your spouse's lifetime and your lifetime. So, like, you know, you would still get payments even after your spouse were to pass away or vice versa. Um, and there are other different ways to structure it as well. And, you know, so, so you get those regular income payments and those are payments that are guaranteed for whatever the specified time period is. And when I say that, I mean that because it's like, you know, if you have a lifetime payout, no matter how long your life is, you are going to continue to get that payout. I mean, if you live to be 150 years old, you're going to keep getting those monthly payments or however you know, you structure it, you can do quarterly, you can do yearly a lot of times. Um, but you'll continue to get those payments until you're 150 years old or, you know, 170 or whatever, whatever. Um, you know, modern science is going to bring us, uh, but I think annuities are super important for LGBTQ plus folks, especially, and for a couple of reasons.

Speaker1:
Um, the first one being that many of us don't have access to pensions. That's true in general, but it's it's really true for LGBTQ plus folks, um, as well, because, you know, a lot of the more, um, I guess you could say traditional companies in air quotes a little bit, um, are ones that may still offer, um, a pension, which is and basically an annuity, um, as well. You know, you, you work for a company for a certain number of years. You become eligible for that pension after that certain number of years. Let's say if you work there for 40 years, like people used to, um, then you retire at the end of that fourth decade and then you, you know, retire and you get the gold watch, you get the pension, and that's payments for the rest of your life. It's, you know, an annuity. Sometimes you'll hear referred to and I'll refer to it sometimes as a personal pension. It's really what it is. So a lot of people don't have access to those because, you know, especially in the LGBTQ plus community, the companies that might still offer them haven't maybe necessarily been the most friendly to the LGBTQ plus community. Um may not have access as well to Social Security benefits as far as spousal benefits go, if you're if you're not married or if you have a relationship that was not legally recognized up until maybe recently, like that can be a thing, um, as well, you know, if your marriage wasn't recognized until later on in life, then, you know, maybe you don't have a spousal benefit that you can take advantage of.

Speaker1:
And that's why personal pensions like annuities are critical as far as income goes in retirement. You know, income is really what it's all about in retirement. And I know I've talked if you've listened to the show before, I've talked about this, and I will continue to talk about it until I'm blue in the face, uh, because it's so true. Um, you've got to have income streams. I've worked with many clients now and and folks who are exploring becoming clients as well. And they sometimes will have a fear of giving up the control over that big nest egg. Right. And that's a real thing. And I'm not I will not ever downplay that at all. Because, you know, especially if you have maybe a health issue or something like that. And you are, you know, this is what you have. Your nest egg is what you have. And maybe you are on disability, for example, and you're not going to be able to work and earn any more to be able to put into that 401 K or or whatever. Um, then it can be a concern. And I get that. I really, really do. My job, though, as a financial advisor is to take that worry off the table for you.

Speaker1:
Um, I'll worry about it so you don't have to. In other words. Right. And I do this kind of thing each and every day for folks. And that's why I love doing what I do. One of the many reasons I love doing what I do is seeing the smile on the face of somebody who is like, oh, I've been worrying about all of this for so long, and I didn't have to be worrying about it. That's pretty awesome. Um, and yeah, it is. It can be pretty darn awesome. Um, to, to just have that, that weight lifted off of your shoulders. And so, you know, there are a lot of people and you hear people, as I've said, talking, badmouthing annuities. And there are people who generally either a don't understand them or B are trying to sell you something else. The truth about annuities is that they are the ones that are around today. There are several different kinds, and if you hear anyone say all annuities are bad, they do not know what they are talking about. And or even worse, they do know what they're talking about and they are lying to you and to your face because you cannot just make a blanket statement like that, that all annuities are bad because it's not true. It all annuities could be bad for you in your situation. Sure.

Speaker1:
You know, an annuity might be the wrong thing for you. It could be the perfect thing for your situation. My job as a fiduciary is someone is is, you know, to work with you to determine what's best for your situation. And if it's an annuity, great. If it's not great. So anyone who makes those blanket statements like that, they're not a fiduciary. They're not acting in a fiduciary capacity, certainly, because, you know, they're making a blanket statement without knowing you, without knowing your financial situation. And my job is to to, you know, do a deep dive into your financial situation so that I do know and can come up with a plan that's based on reality and not some, you know, talking point about all of these kinds of things are bad. Um, and so the reality is, no, all annuities are not bad. There are options. There are fixed annuities, which are kind of the more traditional annuity out there. You will get a guaranteed rate of growth for a certain number of years. Um, and then you're able to turn on income. And you can do it in many ways, lifetime income or, you know, um, uh, life with period certain, which is like a certain number of years. Right. So let's say you have a ten year period certain, so you're guaranteed to get payments for that ten year period. If you live beyond that, you will still get payments beyond that until you die.

Speaker1:
But if you were to die before that, um, period of time is up, then there would still be remaining period certain type payments. Those could potentially go to a beneficiary, that kind of thing. So there are different ways to structure it. Um, so that's fixed. You know, you get that guaranteed rate of growth each year. And that rate of growth may not be the highest rate of growth. It could be like a maybe a like a rate of growth as compared to like a CD, like a bank CD kind of a thing. You could probably think of it that way. Um, in some cases and in other cases, there can be quite a bit more than that. We can explore options out there for you. Um, so that's fixed right. Then you've got variable. Variable. I don't like to work with a lot because it, it takes away a lot of the guarantees. One of the, the big, um, things that I like about annuities, particularly um, fixed annuity or especially a fixed indexed annuity, which is kind of like a fixed annuity and variable annuity. Got together and had a baby. Um, and I'll explain that in a minute. Um, but one of the things that I like about those types of annuities is they offer guarantees where, you know, your principal is protected, your growth that's credited to the account that's protected because you're not invested directly in the market. So you're not subject to the downside of the market.

Speaker1:
You have the upside potential of market like gains in something like an indexed annuity. A fixed indexed annuity. But you don't have that downside risk. So with a variable annuity though that money is invested in the market. And so all of it is at risk. So if you were to lose everything you lose everything. The market has a really bad year. It has a really bad year. And so does your variable annuity. But if you invest in a fixed indexed annuity and it takes those two terms fixed and indexed and marries them together with a hyphen and becomes an FIA as we refer to them in in the biz. And what it does is you as, as I said a moment ago, get that upside potential of the market but without the downside risk. Right. Because your principal is protected, the growth that's credited is protected. You'll get the growth credited over a certain period of time. Um, you know, that could be, um, once a year. It could be monthly. It could be once every other year, or even once every five years or once every seven years. I've seen those as well. And so with the fixed indexed annuity, though, that money is not directly invested in the market, but the growth of it is tied to a particular market index, say the S&P 500 or say, um, a proprietary index like the BNP Paribas Global Index.

Speaker1:
Right. That is one, um, that is, uh, used out there with one particular annuity that I happen to like, but there are all different kinds of indices. Or indexes, if you prefer that you can tie them to on the growth side. But the downside is not something that you have to worry about because you have that level of protection. Of course, they've got to be it's backed by the claims paying ability of the issuer, and I only work with reputable ones. Those are the only ones that I really recommend to folks or these, you know, companies that have been around a long time, not some fly by night operation. Um, and so I want to make sure that your money is as safe as as humanly possible. And one of the things to that that is offered through an annuity is on the income side. You can either choose immediate income in something like maybe a fixed annuity or a spia, which is that spia the single premium immediate annuity. That's the you know, the I in in Spia is immediate. So you can choose something like that immediate income. And even with Spias, a lot of times you can defer your income payments for up to a year. Right. So you can do that. You can also add riders for lifetime income. Um, you can have death benefits, cost of living adjustments, all in that, um, immediate income. Or you can defer your income for a certain number of years.

Speaker1:
Now I said immediate income annuities. A lot of times you can even delay those payments for up to a year. Well, with something like a fixed indexed annuity, you can defer that income for several years to give that annuity time to grow, to give that that income benefit base, which is the number that they use to calculate how much income you're going to get paid out each and every year when you turn on income. Um, that number gets to grow. Tied to that market index. But zero is your hero. As we say, it doesn't go down. If the market has a bad year, then you are protected and you sit at zero growth, but you don't lose your shirt like a lot of other people have in years, like, you know, 2008, 2009, um, even going back to was 2022. Um, there was a down year in the market then. So, you know, it was really, um, eye opening when I, a few years back, started learning about all of these different things that I didn't even necessarily know existed. And that's why I like sharing them here on the show because they do exist. And remember, you know, you can also name beneficiaries on these as well. You will name beneficiaries in annuities also. And you can name you know who whomever you choose your chosen family as beneficiaries. You know you're not bound by, you know, sort of outdated definitions of family on that part.

Speaker1:
You can you can name your chosen family members, member or members as a beneficiary. And so you got options. And, you know, people love having options. I know I love having options in life. Um, and so, you know, what I would encourage you to do is reach out to me if you would like to explore an annuity for that lifetime income, to add another layer of protection for your retirement years. As far as the income goes, as far as those guarantees go, um, and, you know, just explore what the possibilities might be if you have a situation that's not right for an annuity, I will tell you. And I'll just be upfront and honest with you about it. There's no, you know, no, no skin off my nose, if that saying makes sense in this context. Um, no skin off my nose if it's not a good thing for you, if it is a good thing for you, I'll definitely let you know and show you why. I'll explain why and how, and we'll do something that you feel comfortable with. My. My job is not to force you into doing anything. My job is to bring you along where you get to a better place financially. Because that is my job, is to get you to a better place financially. So reach out, take pride in retirement, calm its take pride in retirement. Com you can also call 85524692178552469211.

Speaker1:
The call is of course free. The message sending that on. To retirement. Absolutely free. The consultation. Absolutely free of any cost or any obligation. You'll only work with me if we both, you know, sort of mutually feel that that's the best thing to do. All right. So, you know, we talked earlier, um, as I was kind of teeing up what was coming up on the show, we sort of mentioned earlier about declaring victory, right. And, um, a lot of times people will say, people, you know, think of that in like a sports kind of a context. And it's so funny because my, um, I have to tell this, my husband had an audition the other day. Yeah, he's an actor. He had an audition the other day for something that was sports related, and he was supposed to be like sitting watching a game on TV. And, you know, as an actor who has spent much of his life in the musical theater doesn't necessarily come the most naturally to him. But he does a great job. He does a great job with it. Um, but he's sort of just, like, force himself into the, you know, caring about sports and that whole mindset. And so I got through with one of the takes. And he said, um, uh, he was like, you know, sitting there, he's watching the the imaginary TV in front of him and he's, you know. Yeah, yeah, yeah. You know, touchdown or whatever.

Speaker1:
And then he goes, ooh, sports. And I just cracked up. Um, but you think about, you know, declaring victory. You think about sports a lot of times and sports analogies and things like that. Um, but what we are talking about here is really protecting what you've built. And, and the way that those two things go together is if you are at a certain point in life where you have saved up and invested and done all the things, and you've got a good size nest egg, whatever that means for you, then you need to go to a place where you declare victory. You've won the game. Don't keep playing the game. Right. Protect what you have. Protect what you've built. And and as members of the LGBTQ plus community. A lot of us have had to build up our financial security from the ground up because, you know, we faced things like wage gaps, employment discrimination, patchy legal protections depending on where you might be in the country or around the world. So it's even more important, I feel like, for our community to have the mindset of once you've built your nest egg, protect it. That's so essential to protect that nest egg that you've worked so hard for. And that's where the declaring victory part comes in. You know, I mean, if you're in your mid 70s or older, let's say, or you're just feeling more conservative about risk, consider locking in those gains.

Speaker1:
You know, move from aggressive growth to preservation. And that could mean shifting to more stable investments like fixed annuities, fixed indexed annuities, um, CDs, cash reserves, even, but not cash under the mattress because that's not doing anybody any good. Cash in in the bank where you've got the, the, you know, FDIC insurance, uh, on it where you've got, um, you know, potential for some growth at least, uh, in, you know, an interest rate that's being earned on that money and, you know, protect your, your partner, your husband, your wife, your whomever, your chosen family with proper legal documentation. That's part of that. Protecting what you have, protecting what you've earned in life, um, protect them with, you know, wills, healthcare, proxies, powers of attorney. And that way, you know, no matter what happens outside of our sort of purview, our circle of influence, our sphere of influence here as individuals, you know that you are taken care of from a legal standpoint. And those steps are going to help make sure that your wishes get honored and that your legacy is secure going forward. Um, it really is Essential to make sure that you declare victory when you have won the game, and not keep playing for the sake of keep playing, because if you keep playing, you could end up losing the game. Um, because you've got you've still got that risk there that that exists. So protect what you've saved. Bottom line.

Speaker1:
Um, okay. So let's dive in now to some more safe money strategies because we've got some uncertain times upon us. Um, I know that for several months now I've been talking about uncertainty, about, you know, nobody knows what's going to happen. And, and a lot of things have happened, um, over the past several months here, um, that have made the markets get very choppy. They have made a few more gray hairs pop up on my head. I know, and others have experienced the same thing. Or maybe the hair has either turned gray or turned loose, but. There are things that you can do to secure your retirement. The closer you get to retirement and whether whatever economic storm may come up. So of course, annuities we talked about, they are essential in a lot of cases to provide that safety, to provide the income that you can turn on for the rest of your life, no matter how long that life may be. They are, you know, essential for, you know, providing those guarantees that you can't get a lot of other places. So they have, you know, those pros working on their side. So we talked about annuities. That's a good safe money strategy. Um, and so, you know, with all the volatility that's been in the market here lately, I wanted to go through some more though. Number one is important, I think, for everyone to have some cash reserves. And I mentioned it a moment ago, don't you know, keep the keep the cash in a safe or under your mattress or in your pillowcase? Um, not a good idea because it's not doing anybody any good there.

Speaker1:
You're not getting any growth whatsoever. Um, you know, you want to at least make sure that you've put it in a bank where it's going to get some growth, maybe in a high yield savings account, something like that, where you could possibly be, you know, keeping up with inflation, at least if that's possible in a, in a high yield savings account type environment. But you want to make sure that you have that money somewhere where it is liquid. Don't lock it away in a CD where you can't get to it for a certain number of years. You should have at least 4 to 6 months of expenses. Those those bare essential expenses in a liquid account money market fund, for Fun. For example, I mentioned high yield savings. Something like that, where you can get to that money when you need it, and that gives you breathing room when the markets get choppy like they have been here lately. The second thing that I want to talk about is may seem a little bit counterintuitive, but. But I think it's a very smart thing to do. No matter who you are, but to really, you know, keep your situation as strong as it can be. And that is to max out your retirement contributions, especially if you're behind, especially if you're catching up on your savings.

Speaker1:
If you're over 50, you can contribute up to $31,000 to a 401 K if you're between the ages of 60 and 63. You know, super catch up contribution limits let you even put in more than that. So then, you know, that way if you're behind, you don't have to stay behind for for long. You can actually get those contributions. Um, you know where you are caught up because it's it's the standard contribution limit. If you're under the age of 50, it's 23,500 for the year 2025. Then the catch up contributions between the ages of, let's say, 50 to 59. That is an extra 7500 and then enhanced catch up contributions between the ages of 60 to 63. That's another 11,250. So you can max out those contributions to really ramp up what you're going to have in retirement. Number three is to rethink your Social Security claiming strategy. This has been on my mind a lot lately because I've been doing some studying for a Social Security, um, certification. And this could be a great option for you, especially if you have longevity on your side. Because if you delay claiming Social Security until age 70, your benefit increases by up to 8% each year. So that's an 8% raise. You're giving yourself past your full retirement age. So let's say your full retirement age is 67. If you retire at age 70, you get 124% of what your benefit would have been at age 67, you know, plus cost of living adjustments and all that going forward.

Speaker1:
So that can be huge, especially if you're single or if you are not married to your partner and they're not eligible for survivor benefits. And here's the thing. That's one of those reasons. If you are not married, you might want to think about it not telling you what to do. But that's one of the benefits that are that are afforded to married people. And now that, you know, marriage equality has been the law of the land for about almost ten years, thanks to a Supreme Court ruling that, you know, you should take advantage of. So, you know, we're we're at least seen as equal members of society in that way. Number four, budget smarter. Um, people don't necessarily like the word budget. It's like a four letter word that's got more than four letters in it. But budget smarter, you know, categorize your expenses. And the thing the way that I like to sort of think about it is categorizing them into needs, wants and wishes. Right. Those needs are, of course, the essentials. They're the roof over your head. They're, um, something to drive or, you know, if you live in a in a big metro area, uh, it used to be the metro card in New York, or now it's Omni, I guess, in New York, uh, to ride the subway or, you know, whatever means of transportation.

Speaker1:
In other words, um, it's the utilities. It's all of those things. And then there are the wants, you know, like, oh, it would be nice to have this. It would be nice if I could, um, you know, get a new kitchen sink because the one that's there, uh, works fine, but, you know, it's too shallow or it is, it doesn't hold a lot of stuff, and it's just getting kind of old. Like, that's kind of a thing that would be nice to have. Those are your wants and then your wishes. I like to think of those as like the big ticket things, like you're saving up for some big trip, you're saving up for some, um, you know, grand vacation, some, you know, big house remodeling thing. Like, those are kind of the wishes, the big things. And focus your spending on what truly matters. Make sure that you have categorized all of that stuff and that you're putting the right amount into each of those categories. And also, you know, I wanted to mention before we run here in just a minute, one of the things that I love doing for people and go to take pride in retirement and schedule a consultation, because I love actually taking kind of a deep dive into people's finances and finding out how much they're paying in fees. Um, take pride in retirement. Com is the website.

Speaker1:
Uh, the number 85524692 11 (855) 246-9211. That's the phone number once again. And you know, I love when I get to speak with people who don't have a clue how much they're paying in fees, because the look on their face when I actually reveal to them how much they're paying in fees and didn't even know it a lot of times, is kind of crazy. So the high fees that you are probably paying inside your portfolio that you don't even know about can sort of quietly eat away at your retirement savings. Kind of like, let's imagine that you've just bought your dream home, and then you find out several months later that you've got termites and your home is not stable. And so what you're going to do, you got to shore things up, right? You've got to make sure that repairs are made. You want to avoid having to make the repairs to begin with by not having hidden fees inside that portfolio. So let's say, you know, if you invest $100,000 for 25 years at a 6% annual return, you know, no fees gets you to $430,000, right? So if you invest 100,000 bucks for 25 years, you get 6% annual rate of return. If you pay no fees, that get you to 430,000. But even just a half percent fee can drop that to 379. And at 2%, you're left with just 260,000. And that can be $170,000 in this example lost to fees. So if you are paying too much in fees, I want to talk to you.

Speaker1:
Review your statements, use an online fee calculator. You know, consider a fiduciary Advisor, someone who is working in your best interests, who you know only charges a you know, a flat percentage that is low to be able to maintain your accounts, um, and be able to, you know, really work for you, get you a greater rate of return for less in fees and by taking less risk. And a lot of times that is truly possible. I've seen it happen many, many times here. And keep in mind, you know, a lot of the fees out there are invisible. They're sort of baked into fund performance, but they're real and they can really hurt your portfolio. They can really hurt its performance. And the thing too, that I wanted to mention, um, as the the last thing of the show this time around, retirement planning, you know, we talk a lot about the numbers, right? And it's, uh, it's a focus of the show. It sort of has to be because, you know, we talk about the dollars and cents of it all when it comes to retirement planning. And that's just a that's just a fact. Another fact, though, is that retirement planning is not just about the numbers. It's about your values. And your portfolio should reflect who you are and the life that you want to live. You know, if you want to support the environment or LGBTQ plus equality, consider funds or investments that are supportive of those causes.

Speaker1:
If you want to travel more or you want to support your favorite causes, maybe in retirement as well, align things with those goals. Align your cash flow to go to those things you know. Create short term cash reserves, for example, um, 2 to 4 years short term bonds, maybe, um, diversify across stocks, bonds, income producing assets and yes, Keep reviewing what you have, working for you to make sure that it is still working for you at least once a year, and make sure that your plan protects your spouse or your partner, even if you're not legally married. Don't leave it up to chance. Don't leave it up to state law. Don't leave it up to probate the probate court. They're not going to look out for you and your best interests. Make sure that what your wishes are, are what happens. And so that's the message I kind of want to leave you with for this particular edition of the show. And, you know, just I want you to invest and to save and to plan with pride so that you can have a retirement that you can take pride in. Because as I always say, no matter who you are, where you come from, who you love, how you identify or how much money you got, it does not matter. You deserve a retirement that you can take pride in and that I want to help you get there.

Speaker1:
I want to help you reach that goal as much as I possibly can. And I know that I can help you if you feel like you're behind, if you feel like you are just not where you need to be. Get in touch. You know, I mean, I am here for you. No judgment. It's advice that will be tailored for you. It'll be affirming to you and your unique journey, whether you're, you know, just getting started. Or maybe you're already in retirement. I'm here to protect what you've built and plan for the years ahead that should be filled with all kinds of fun and and joy and pride in your retirement. So go to take pride in retirement comm. Take pride in retirement. Comm 85524692 11 is the number (855) 246-9211. You can schedule that free consultation. Once again, it's free of any cost or any obligation. Well, that's going to do it for this edition of the show, folks. Thank you, as always for joining. I really do appreciate your time. Hope you got something out of it. I hope you're feeling informed and empowered. Just ready to take pride in your plan. All right. Thanks so much once again for listening. Really do appreciate it. I'll see you next time for another edition of the show. And until then, take pride in yourselves and take care of each other. See you then.

Speaker3:
Thanks for listening. To Take Pride in Retirement. Members of the LGBTQ plus community deserve to work with a fiduciary financial advisor who puts their needs first. To schedule a free, no obligation consultation with Matt McClure and the team at Active Wealth Management, call (855) 246-9211 or go online to take pride in retirement investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor, Bcem and Active Wealth Management Incorporated are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Matt McClure and Active Wealth Management are not affiliated with or endorsed by the Social Security Administration or any other government agency. Hey, it's.

Speaker1:
Matt McClure of Active Wealth Management and host of Take Pride in Retirement. How would you like guaranteed growth for your retirement investment? Nationwide's peak ten fixed indexed annuity offers an 8% simple interest roll up for the first ten years or until your first withdrawal, whichever comes first. When you choose the Lifetime Bonus Income plus rider for an additional cost with Nationwide Peak ten, you will also receive protection for your principal, keeping your initial investment safe even during market downturns. Growth opportunities linked to market performance without direct market risks and guaranteed lifetime income helping to create a more secure retirement. Call me today at 85524692 11 or go to take pride in retirement. Com to connect with me and start building a brighter future that's take pride in retirement.

Speaker3:
Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced are subject to the claims paying ability of nationwide life and annuity insurance company. Nationwide peak ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its other entities are associated or affiliated with Active Wealth management.

Speaker1:
Registered investment advisors and Investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosures of any conflicts of interest. Please refer to our firm brochure, the ADV two, item four for additional information. Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company, not guaranteed by any bank or the FDIC.

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