Critical Retirement Shifts LGBTQ+ People Need to Understand Heading into 2026 (Part 1)

Episode 89: Audio automatically transcribed by Sonix

Episode 89: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
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.

Speaker2:
Welcome to Take Pride in Retirement, the podcast dedicated to helping members of the LGBTQ+ community protect and grow their hard earned money. 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.

Speaker1:
Hello there, and welcome to another edition of Take Pride in Retirement. Matt McClure here with you, your host, your advisor, your friend, your pal and your confidant. Yes, all of the above. And I take pride in that. Thank you so much for being a part of things. Really do appreciate it. Each and every time we're able to get together here on the old pod. Um, or if you're watching on the YouTubes, I appreciate that as well. Yeah, we are on YouTube. Subscribe to the channel. Like this video I would really, really appreciate that really helps the algorithm. And you know, we're all at the mercy of the stinkin algorithm these days. So help me out as much as you can. I really would appreciate that. And, you know, just spread the word about what we're doing here. What are we doing here? Well, this is the podcast where it's all about you. It's all about helping you build the retirement that you deserve, a retirement that you can take pride in. Like we say at the top of the show each and every time. And I know that for a lot of people, especially right now, crazy as the world is, because, yeah, it's crazy. In case you haven't seen, um, retirement planning can feel overwhelming. It's like, oh, just one more thing to add to the craziness, right? Well, I've already got all of this going on. Might as well pile another thing on to my life because you know, nothing else happening.

Speaker1:
Um, so, yeah, I mean, that's really one of the reasons that I continue to do this show and continue to do this show actually more often. You might have noticed if you're a longtime listener, we're doing two shows a week now, and that is really, um, to just, you know, really get the word out even more, um, about everybody being deserving of that retirement that you can take pride in. Um, this is, you know, just an affirming place for you, um, to use a kind of a cliche term these days, a safe space for you. But I want LGBTQ individuals and couples to enjoy that feeling of having something to look forward to in their retirement years, because we often face those additional layers of uncertainty. Right. I talked about all the uncertainty that's in the world right now. There are additional layers of uncertainty that just come along with being who we are. And so, you know, that's things like health care access, uh, caregiving concerns because of different family structures, the other things that those different family structures bring as well. We don't necessarily fit the traditional mold. And so today what I want to do is kick off part one of another two part series here on the five critical retirement shifts that are happening right now as we head into 2026.

Speaker1:
A lot of this comes from a great article, actually, that I saw at Gobankingrates, and we'll talk about it all as we, as we head on into the show, wanted to say as well, reach out to me, take pride in retirement. Take pride in retirement. Com click on schedule a consultation. You can do what they're you might ask. Well, I'm glad you asked because you can schedule a consultation. It's that easy. So go to take pride in retirement, schedule a free consultation. I'll give you more information about that and kind of what all you get as we go on through the show as well. You can also give me a call 8552469211855246 9211 is the number if you would prefer to communicate that way. If I don't pick up that line, it does come directly to me. Leave a message. I'll get back to you as soon as humanly possible. All right. So this is part one. As I said, part two is going to be, you know, more in depth on some other points about the way that retirement and retirement planning has been shifting these days. And in this episode, we are focused on the first three major shifts where you live in retirement and how much that matters, the true cost of health care, and how long your money actually needs to last, right? Probably longer than you think. Because worst case scenario for anybody, especially members of the LGBTQ plus community, but anybody is running out of money in retirement, not the place you want to find yourself.

Speaker1:
And so in part two, we're going to tackle a couple of different things Social Security, finding purpose in retirement. And then the biggest mistakes that I see people making right now as well. Um, I really do want to remind you, though, that if you need someone to talk about your situation, reach out to me, because I would be happy to do that sort of one on one conversation and reach out. I mean, just go to take pride in retirement comm as I say and click on schedule a consultation. You can see my real time availability there if you prefer to do it that way. Or again give me a call 855246 9211. All right. So shift number one here as we go into the big retirement shifts that are happening right now. And they say this in real estate, I at one point in my life was going to be a real estate agent. Full disclosure. Um, which is why this comes to mind. This sort of analogy comes to mind quite a bit. But, uh, that did not work out the whole real estate agent thing. But I always keep this in mind because I do like to watch a lot of HGTV. Um, but it's location, location, location that is, you know, the three most important things in real estate, right? Location, location, location.

Speaker1:
And so it really matters in retirement as well. And this, uh, gobankingrates article, they actually did a study about the most expensive and the least expensive states in retirement, like cost of living wise. And where you live in retirement really could matter more than when you retire, right? So, like, the date might not matter as much as where you are. All of it, of course, has to be taken into account. And, you know, put into the the hopper there and uh, as part of the part of the different bingo balls that you are juggling in retirement, but it's all got to be taken into account and location is really important. I mean, we used to think that retirement success was all about like hitting a certain age or a certain number. You might recall those commercials. What's your number? Well, those two things probably aren't quite as important as they used to be. And and I'll tell you why one of those that certain like hitting that number is less important than it used to be. Because really retirement is all about income. Generating a guaranteed income in retirement is super important, but geography is actually one of the biggest things that determines how long your money is going to last. I mean, think about it. This and this isn't just about housing costs, by the way.

Speaker1:
It's about overall cost of living. You know, the states that you would expect are, you know, like California, Hawaii, Massachusetts, they're more expensive. Places like Alabama, Mississippi, Oklahoma are more affordable. And that's just kind of the top line, right? Like in that that study that Gobankingrates conducted that those were the top and bottom states as far as affordability goes, the most expensive and the least expensive, I should say. And so that maybe not a big surprise. The thing that, of course, LGBTQ+ folks need to take into consideration is, okay, I've got a balance like social acceptance and my being able to live my life at the same time. I gotta be able to afford to live. So like, you know, obviously somewhere like California, Massachusetts, Hawaii, those places much more socially accepting of LGBTQ+ folks, especially the TCU and the plus. Um, but, you know, the Alabama's, Mississippi's and Oklahoma's are going to be the more affordable places to live. But, you know, it goes and that's pretty deep already. But it goes deeper than just housing costs, as I said, state income taxes, property taxes, insurance costs, health care access and pricing, even the cost of everyday items like food, utilities, just paying the bills, keeping that roof over your head as well. And for LGBTQ plus retirees, there's that extra layer that do I feel safe? Am I going to be able to find affirming health care that's affordable? Is there a community for me? You know, do am I going to have connections there? Am I going to have people who I get along with, who I understand, who are, you know, maybe my chosen family, whatever the situation might be.

Speaker1:
And sometimes the cheapest place financially is not the healthiest place emotionally. And so that matters too. But let's say just looking at the numbers here, let's say if, uh, kind of give you kind of a real world example. Let's say you've done everything right and you've got 1.5 million saved up for retirement, invested in your different accounts. You've got things that are, you know, diversified from a tax standpoint. So you've got some Roth, some non-taxable in in retirement, some tax deferred. Uh, you've got some tax free, all those things. Right. So you've got everything. You've done everything right literally. And so you've got that 1.5 million. Well in one metro area that may last you 15 years, let's say 15 years of, you know, basically that's living on $100,000. But then of course, you got to say, okay, well the market's probably going to grow over that time, etc.. So that's a little bit more than $100,000 a year. So that 1.5 million may last you about 15 years in some of those locations, but in others the least expensive or less expensive, that same money could stretch 30 years or more.

Speaker1:
So that also matters. But it's the same savings but completely different outcomes, right? So question I want you to think about here is, have you actually run the numbers on when you plan to retire, or are you just kind of sitting there assuming it's all going to work out or thinking it's not going to work out? That's one of the more common things that I see today is people saying, oh, I can't. I'm never going to be able to retire. I'll just be working until I'm in the grave. You know, if you think it's going to work out, you know, good, good for you. But hope is not a strategy, right? Um, if you don't think it's going to work out, it can. And I really do believe that no matter your situation, I haven't met a person yet that I wasn't able to help in some way, improve their situation to get ready for retirement and a retirement, that they can live on their terms. Right. So if you're wondering about whether you know it makes sense to stay where you are in retirement, whether relocating could actually add years to your retirement, I can help you run those projections. All you have to do. Give me a call. 85524692178552469211. Or go to take pride in retirement. Com click on schedule a consultation. It is absolutely free of any cost or any obligation. You'll get a financial plan to your 95th birthday absolutely free.

Speaker1:
And you know some people who like, ah, you know, fee based, uh, advisors out there may charge hundreds or even thousands sometimes for the type of analysis that we give you absolutely for free. Because, you know, I act in a fiduciary capacity. That means that I have to act in your best interest, not my own. So when I meet you one on one, I immediately go into that fiduciary capacity and say, okay, what is best for you? Not what's best for me, right? That is the most important thing to me, living up to that standard. And I would if I were you, you know, take that into account as well before you meet with me or anybody else. Are they acting in that fiduciary capacity? All right. 855246 9211. Take pride in retirement. Com is the website now? Um, shift number two. And it's a big one. And it's a big shift. The health care wake up call. Um. Wake up Pearl. It is expensive out there. And we talked about cost of living, not just state to state, like, you know, difference in cost of living between, say, somewhere like Hawaii and another place like Mississippi. You know this I'm talking about, like, everybody everywhere. Health care is pretty much leading the way toward, if not at the top of things that are getting more expensive out there.

Speaker1:
And it's one of the most dangerous shifts because it's one of the most underestimated, Misunderstood kind of aspects of planning for retirement. But health care costs, really, for many retirees, matter more than market performance. I'll say that again, for many retirees, health care costs can possibly matter more than market performance. A lot of the couples that that I've talked to, you know, say that they'll they've saved up, let's say, $75,000 just for health care expenses. But here's the reality, though. A lot of couples, LGBTQ+ and otherwise, according to different numbers that I've seen a couple of different studies that we've looked at actually before here on the show previously, when we've talked about healthcare in a full episode, they need 300 to $400,000 for health care, but they only have 75. If you are in that situation, that's not a good one, not a good situation. It's and that's not a worst case scenario. It's a planning scenario, right? You need to plan. You got to plan for that. It's not that you don't have the capability of getting there. It's not that you don't have necessarily the money to to get there now, but it's what bucket are you going to put that in? Where is it going. Where's that money that you are going to need to pay for healthcare? Where's that going to come from? And then also there's an extra layer of all of this or always extra layers.

Speaker1:
You know, as Shrek said, ogres are like onions, I guess, as the LGBTQ plus community, kind of like onions as well. We got layers. We're more like parfaits. I want to say, because we're less stinky, uh, generally speaking. Uh, but I digress. For LGBTQ plus individuals, there's healthcare planning that adds that extra layer on to what what happens in life, right? And it's even more critical for us most of the time, because you might not have a partner or a, you know, a spouse. You may be single. You may not have adult children to help care for you when you grow older. You may rely more heavily on professional caregiving. And you know what? That costs money. Especially if you want quality care. You know it's going to be more expensive. Medicare decisions are not something that you want to rush either. Um, you know, you want to make sure that you have the right pieces of the puzzle in place and the choices that you make when you first enroll in Medicare, for example, can follow you around for years. In some cases, the rest of your life, you might be kind of stuck in something. And then long term care really is a separate conversation altogether. I'm going to be working on putting together a full long term care episode here. Um, but it's so important. It's so underestimated. It's pretty misunderstood.

Speaker1:
And it's something that you've got to pay attention to. Your investments could go up, let's say, 10% in a good year. But one major medical event without proper planning can erase that gain overnight. And that's just that's not fear mongering. That's not any. That's just math. So you've got to plan for it. Bottom line have a plan. You know, start using those health savings accounts if you're eligible for them. Learn your Medicare options before you enroll, not after you know, meet with a qualified agent. There. We can connect you with someone who knows the ins, the outs, the ups and downs, the sideways, all the things. Explore long term care strategies while you're still healthy because you know the the time to build a roof on your house or to fix a roof on your house is not while it's raining. It's while the sun is shining, you know? So you want to plan ahead of time. If you put the roof on while it's already pouring down, rain while your stuff's soaked. So don't be soaking wet with, uh, you know, all the rain falling on you. Uh, you know, unless you just happen to, like, standing out in the rain. You don't like to do that every every once in a while. I guess I haven't done that in a long time. Just kind of stand out in the rain. Um, actually sounds kind of refreshing, but this is a bad thing that I'm talking about.

Speaker1:
You don't want all your stuff to be soaked. You don't want to be ruined. Uh, you want to be prepared ahead of time so you don't face that ruin. You don't face that flood. And if you don't have a clear healthcare strategy or if your current plan, if you're not sure if it actually protects you from a healthcare standpoint, let's take a look at it or run an analysis of it. Show you what you have now and where you could go with a plan that I would recommend for you. Take pride in retirement. It's take pride in retirement. That's the website to go to. Click on schedule a consultation. Now, speaking of healthcare, kind of shift number three kind of goes hand in hand with that because healthcare is getting more expensive. And you're generally speaking we're going to have to use that healthcare longer. Why is that? You say, well, we're living longer. We're living longer lives, and longer lives really do change everything here. And that's the final shift that we're going to take a look at in this particular episode is that, you know, if you're retiring at 65 and you live to 95, that's 30 years of income that you would need to generate. That's why we run financial plans to the age of 95 for everybody, no matter what, no matter what your.

Speaker1:
Your life expectancy may be based on, you know, the the length of life that your parents or grandparents or aunts, uncles, whomever have lived. So that means, you know, if you've got 30 plus years to plan for that old 4% annual withdrawal rule that you may have heard about. That may be antiquated. Inflation compounds over decades. You know, it's not like, oh, well, inflation this year is 3%. And so, um, you know, next year it's going to reset back to zero. And then if it goes up 3% again, no, that's it's not like a simple interest sort of a thing. It's compounding over the years. Right. Um, market downturns hurt worse. It's called sequence of returns risk. They hurt worse when you are making withdrawals from your accounts. And here's something I say quite a bit, and I mean it. A worst case scenario is not dying too soon. It's living too long without enough money. And that's why it's the biggest fear of retirees. Survey after survey has shown the biggest fear of retirees is not death itself. It's running out of money before death itself. Right? So, you know, longevity planning, It's not just about finances, it's also about your health, which we covered a lot of health care related stuff a few minutes ago. You can't enjoy retirement from a hospital bed, so investing in your health today just as important as investing in health care and, you know, taking into account long term care and all of that stuff tomorrow, it's just as important as investing in your portfolio.

Speaker1:
You know, if you take care of your health today just to do some, you know, some healthy habits, pick up some new, healthy habits. We haven't been too long into the new year. Did you make a resolution to pick up some new healthy habits and are you still doing it? If so, if not, pick those healthy habits back up because that's an investment long term in you. You're more likely to live longer if you're, you know, eating healthy, exercising and doing all of those things. So invest in your health today and you'll be better for it in the future. And if you want to know, you whether your retirement plan can realistically get you to age 95 or even beyond that, let's, uh, let's stress test it, right? Let's give you a detailed report on what you have now, all the different investments that you might have now or lack thereof. Don't care one way or another. It doesn't matter how much money you have, if you've got five bucks in the bank or if you've got $5 million, I'll talk to you. I'll meet with you. I'll run an analysis for you. But let's run that longevity kind of test. Let's plan that out to age 95 at least. Let's get those numbers run and see where you're going now and where you could be going with a recommended plan.

Speaker1:
We can also do Social Security options for you different times that you might be able to file, and how that would have an effect on you. And we'll do all of this when we sit down together at that free consultation. It is free of any cost, any obligation. Just all you have to do is reach out. I mean, that's where it all starts, right? You got to reach out. You got to take action to then have actually made a choice to do something about your future and improve your chances of having a retirement you can take pride in. Well, of course, give me a call for that free consultation. 85524692178552469211. Take pride in retirement. Com is the website. Once again it's take pride in retirement. Com. Click schedule a consultation and we can get everything started for you. All right. Well that's going to do it for this edition of the show. Next time around we're going to talk about Social Security realities. Mentioned it there briefly at the end. But we're going to pick up there when we go into our next episode. We'll talk about finding purpose in retirement, and then some of the biggest mistakes that people are making right now. Until then, though, take pride in yourselves and take care of each other. We'll see you then.

Speaker2:
Thanks for listening to Take Pride in Retirement. Members of the LGBTQ+ 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. Bcm 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.

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 advertised item for for additional information.

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