Retirement Q&A Part 2: More Answers to Your Biggest Retirement Questions

TPIR Ep 122 Full Show.mp3: Audio automatically transcribed by Sonix

TPIR Ep 122 Full Show.mp3: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker 1:
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.

Speaker 2:
Welcome to Take Pride in Retirement, the podcast dedicated to helping members of the LGBTQ plus 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.

Speaker 1:
Well hello.

Speaker 2:
There. Fancy meeting you here.

Speaker 1:
Welcome to another edition of Take Pride in Retirement. I'm Matt McClure, your host, your advisor, your friend, your pal and your confidant.

Speaker 2:
And I am Josh Rhett Noble, the attache to the advisor, aka co-host, aka Matt's husband, aka.

Speaker 1:
Thank you for being a friend.

Speaker 2:
Traveled down the road and back again.

Speaker 1:
Your heart is true. You're a pal and a confidant just like me. Um. And if you joined us for part one of our kind of Q&A series we're doing here, um, I hope you got something from it. And you know, if this is your first time tuning in though, um, I would tell you welcome back. But I'm going to tell you go listen to the previous episode of the show because we answered a lot of great questions there. You can jump right in with us today though, and then go back and listen to the previous one. Um, because yeah, it's, it's a great one. I kind of like this sort of Q&A sort of format here.

Speaker 2:
Yeah. And we've got another batch of questions that we hear all the time from the LGBTQ plus individuals and couples that are preparing for retirement.

Speaker 1:
Yeah. And hopefully, you know, at the end of today's episode, you're going to have a little bit more clarity, some more confidence, maybe, um, you know, a couple of action items, I guess, uh, some things that you can do actually put into practice in your life for your own retirement planning. Now, before we actually get into the, you know, the meat of the show, I guess, um, and get started on that, make sure that you are subscribed to the podcast and that you're following us on YouTube and on social media. Really would appreciate that. Follow along wherever you can. And yes, on YouTube, please like this video and subscribe.

Speaker 2:
Subscribe. We've.

Speaker 1:
Got the high one today, I love it. Um, and if you would like help building a retirement plan that's customized for you, I would love you to do that. And I would love to help you with that. As the, you know, financial advisor around these parts, um, just go to take pride in retirement.com. Take pride in retirement.com. Schedule.com consultation is absolutely complimentary. There is no cost. There is no obligation. You can also call 85524692118552469211. I do this show because everybody's situation is different. Try to answer as many questions about any of the conundrums that you might experience in life as an Lgbtq+ person, or as an ally, or anybody preparing for retirement, really. But it's that individualized advice that really, really brings it home for you and can mean the difference between a successful retirement, a retirement you can take pride in, or, you know, just kind of your average run of the mill retirement, or maybe you run out of money, maybe you don't, you know, it's, it can be a big, big difference here. All right, so let's get into it, shall we?

Speaker 2:
Question number one. What's the biggest retirement mistake you see people make?

Speaker 1:
Yeah. Oh, gosh. If I have to narrow it down. And I guess I do, because that's the question. The biggest retirement mistake I see people make is going to be maybe not having a written plan at all, not having any sort of plan, you know, thinking that if I'm only going to focus on my investments or I'm only going to focus on shoving as much money into my 401 K as possible, that kind of thing is, is great. Can, can be wonderful, you know, maximize those contributions. Absolutely. But that's one piece of the puzzle, right? If you ignore all the other pieces of the puzzle, you just got one little puzzle piece. And that doesn't equal a pretty picture for you in retirement. And so, you know, you've got to, you've got to avoid a lot of things and you've got to make sure that you do a lot of things. So like, let's say the dos, the dos and don'ts of retirement here, you've got to focus on, uh, you know, tax planning for the future. For example, health care costs in the future. You got to have a plan for that. Make sure that you have an income plan in retirement. How are you going to actually live on the money that you've got and that you will have at that point in time, and estate planning has got to be a part of the conversation as well. Now, you've got to avoid things like making emotional decisions during times of market volatility. Um, and you've got to, you know, really just make sure that you are, uh, allocated properly and all of that. And that's where the, you know, advice of a trusted professional really comes in handy and can make the difference. As I say, between a retirement you can take pride in and one that's going to leave you in the poorhouse, basically. Um, so professional guidance is key, I feel. And having that written plan, it's got to be the biggest mistake. I mean, you know, trying to just wing it in retirement. It's too complicated for that. You can't do it. It's too, too complex.

Speaker 2:
I'm sure a lot of people are also expecting you to say something about picking bad investments, right?

Speaker 1:
Yeah, probably. I can imagine somebody listening to the show and being like, oh, I thought he was going to say, investing in something bad. Like if we saw that, uh, that whole plot line on, on, uh, Downton Abbey where, uh, Robert had invested in a rail line that went under, you know, this was during the big, uh, train and rail boom, you know, in America. Um, and it just all went bust and they almost lost the estate and all the things. Um, so yeah, you know what? Investment mistakes, they do happen. Um, but the bigger problem is the lack of planning. Like if you have, if you have a plan in the beginning, that one bad investment is not going to make or break that plan, that is going to be a bump along the road. Sure. You know, good investments alone aren't a strategy. Um, that's just a lot of it could be luck of the draw, but there's strategy that goes into it. But you've got to have that strategy up front. That strategy is part of the plan. And so you've got to have the plan. Um, retirement success comes from coordination. And I don't mean like hand-eye coordination, I mean coordinating all the different aspects of your retirement and coordinating all of that with an advisor. And, you know, having someone who has your best interests at heart.

Speaker 2:
Yeah. So you're saying it's not necessarily what people invest in. That's the biggest mistake. It's failing to know how to connect all those pieces.

Speaker 1:
Yeah. Right. Exactly. I mean, you know, you look at it as again, that puzzle piece, uh, sort of illustration, and you could have a couple of pieces of the puzzle, but, you know, you've got to be able to put those pieces together and then you don't realize maybe that, oh, there are a bunch of pieces to that puzzle still in the box, but I don't know how to put this together. Let me contact someone who does. And as an advisor, I can be that person for you. Hopefully. So that's yeah, that's exactly right.

Speaker 2:
Yeah. So my take away from this is that retirement planning is bigger than just portfolio management.

Speaker 1:
Yeah, absolutely. Again, one piece of the puzzle. But you got to have the overall big picture that's taken into account.

Speaker 2:
Yeah. Question number two. How often should I actually look at my investment accounts?

Speaker 1:
Well, you know, some people tend to look at their investments, um, during down markets a lot more often than they do during the, you know, during a bull market or during markets going up. Um, you know, I've got, I love this. Josh actually gave me this, by the way, bull, the bull and the bear back there, uh, behind me. Um, the bear market is a down market. A bull market is an up market in general. There are different parameters for what actually referred to as bear market and bull market. But, um, you know, a lot of people during a bear market will check their accounts more often because, you know, they, as humans, I guess we're gluttons for punishment a lot, but checking daily can actually be harmful. Um, because markets move constantly. You know, some people may be looking every couple hours or something like that. And that's just a recipe for anxiety and judging, you know, your overall performance on short term results, even just, you know, even just a few months, really, because this is investing and, and planning for retirement. You're in this for the long haul. You're not in this for just say six months or something like that. Um, but those, you know, sort of, um, anxiety ridden, uh, decisions that you make where you say, oh, well, I'm going to check my accounts every day. I'm going to, you know, watch the market and give myself ulcers and everything can lead to emotional reactions and that leads to bad decisions. And so what you should do is if you're working with an advisor and if not, I happen to know a guy, um, consider reviewing on a regular basis all of your accounts. Focus on your long term goals, not those daily headlines, not the things that are going to give you the anxiety. My, my job is to get get rid of the anxiety, not give you more.

Speaker 2:
That's why you're the advisor that cares.

Speaker 1:
And I do.

Speaker 2:
Yes. So I mean, basically checking every day. That ain't gonna help nobody.

Speaker 1:
No. Absolutely not. And ain't nobody got time for that. Um at all. Um, but usually not. I mean, you know, if you are, uh, if you're someone who has a plan in place and you're confident in that plan, then I feel like you could probably check more often, but I would just not if it were me. Um, more viewing leads to that greater anxiety level. And so anxiety can lead to the unnecessary changes. And long term investors really benefit from discipline, not, not setting it and forgetting it, not just staying the course without making any changes, but not making rash decisions based on emotion. So that's, that's what I got to say about that.

Speaker 2:
I think a lot of people are guilty of opening an app as soon as the, you know, the market is on the news.

Speaker 1:
Oh yeah. You know, there'll be some announcement about, oh, there's the merger or the gas prices are up or, you know, oil, oil prices and all that stuff. And yeah, I mean, it's people are prone to that. They'll get an alert, you know, on their phone and, um, you know, something that could affect the markets is happening. And then there's like, oh, how is this affecting my portfolio? Just immediately? It's just an immediate gut reaction. But I would stick, you know, clear of that, stay clear of that rather, um, as, as much as I could just because it's, again, as you said, not going to do anybody any good.

Speaker 2:
Yeah. So the takeaway is just because you can doesn't mean you should.

Speaker 1:
Right, right. Leave it to the professionals, everybody. And uh, that, that would be this guy. Um, and so yeah, I mean, you know, if you are wondering whether your investments and are working for you, if you are giving yourself anxiety by checking those investments way too often, if you don't have an income strategy or if you, you know, are wondering if the income strategy that maybe you have in place right now is still something that's going to work for you in the future, maybe your Social Security plan, your tax situation, all of that stuff. If you're concerned about whether or not it's working together, that's the kind of conversation I love to have with people each and every single day. Go to take pride in retirement.com. You can schedule a complimentary consultation there. Absolutely love to help you understand where you are and where you could go by making some adjustments along the way, and that can make a huge difference. I mean, some huge, uh, a huge difference can be made in the future, I should say, by making just some smaller changes right now, you'd be shocked and surprised. I feel like, uh, knowing how much of a difference that could make.

Speaker 2:
Yeah. Question number three, my partner handles all the finances. What should happen if something happens to them?

Speaker 1:
That is such an important question. And, um, you know, it really is one that I have heard more times than I care to admit. Probably both Partners in a relationship. Whatever type of relationship you are in, whether you are married or not, um, should know where like what the assets are, where they're located, all the login information, contact info, beneficiary information, all that stuff. It's important to have like a financial inventory, right? Like if you've got, okay, here's the, the 401 K, here's the IRA, here's all that stuff. Here's how you get into it. Here are the account numbers, all that keep that in a secure place, obviously, um, and maintain that information by making sure that it's all up to date on a regular basis. Um, this isn't something that you got to do every day, just like you don't have to go check your stock portfolio every day. You don't have to do this every day, but like once a year after big life events, uh, marriage or a birth of a child or moving somewhere, that kind of thing, just check and make sure those are great times to do that. Make sure you've got powers of attorney health care directives in place, especially right now where there's, you know, some uncertainty about the world that we live in. Um, and I'll leave that at that. But powers of attorney health care directives, super, super important for folks. And especially if you're not married, uh, they're essential really. Uh, so make sure that you have that going for you and LGBTQ plus couples. I mean, we've historically faced challenges during those medical emergencies, like we've talked about before. Family disputes. We've talked about that before. Unfortunately, we've had some friends who have experienced that after, uh, an unfortunate death. Um, and so, you know, it's, it's, um, it's difficult stuff to talk about and think about, but it's important to keep track of it all. And you've got to work together as a couple to make sure that all the T's are crossed and the I's are dotted.

Speaker 2:
Yeah, we always say that it's the conversation nobody wants to have, but they need to have it.

Speaker 1:
Yeah, 100%. I mean, avoiding the conversation because it's uncomfortable creates more risk for you in the future. Um, but having that plan, having a plan in place gives you peace of mind. And I am in the business of giving people peace of mind. That is, that is really one of the main reasons I do what I do. Take the anxiety away, replace that anxiety with peace of mind. Um, and that's, you know, just, just key to giving you a retirement that you can take pride in making sure that both of you, uh, in that couple scenario are taken care of because it's an act of love. I think that's a great way to look at it, you know?

Speaker 2:
Yeah. And I mean, especially if, you know, one person is naturally handling all the finances, it's, you know, you got to talk about it all.

Speaker 1:
You do, you gotta, you gotta, at the very least know where everything is and all the account numbers and all that stuff. It's obviously it's best if you both know just as much as the other person about each and every thing. It's called communication. And so do it.

Speaker 2:
Yeah. It's like both people, they don't need you don't have to be an expert. That's why Matt's there to be an advisor. But you both need to be on the same page, you know?

Speaker 1:
Yeah. Yeah, right. I mean, you've got to be on that same page, and you got to know where your financial GPS is leading your roadmap. 100%.

Speaker 2:
All right. Question number four. Should I pay off my mortgage before I retire?

Speaker 1:
That that's a great question. In general, I would say yes. Um, because I just from my experience, the happiest retirees are those who have paid off their house. Um, and they don't have that mortgage payment hanging over them. Uh, it just gets rid of like the biggest expense that you have. And so if you're able to do that, great. But it really depends. It depends on your mortgage rate really, you know, um, cash flow matters as well. The, um, liquidity matters. Uh, you know, your emotional comfort with that situation kind of matters. There's no sort of universal answer to this, but I would say in general, if you are able to, sure, that can be a great thing, but you got to take those things into account. Like if you've got a really great mortgage rate, that it's a, it's a murky, murky. No, it makes the water's murky. Uh, I guess is how I should say that. Sure.

Speaker 2:
And I mean, I feel like most people, they would, they would prefer just a simple yes or no answer to this question.

Speaker 1:
Yeah. That they would. Um, but most retirement questions are not yes or no. Most questions in life are not just yes or no. There's a lot of gray area because there are trade offs, right? There's stuff that you've got to take into consideration. Every dollar that's used to pay off debt can't be invested somewhere else, can't be working for you because it's working to pay off that debt. And so the context is everything here depends on a lot of different scenarios. And, um, yeah, it's a, it's a great, great question, but one that doesn't have the simplest answer, unfortunately.

Speaker 2:
And like talking about not trying to be perfect again, but is there a value in paying off a mortgage even if it isn't mathematically perfect?

Speaker 1:
Yeah. You know, I mean, there absolutely is because retirement is not only financial. So it's not just about the math. If the math is math, that's great and it's helpful, but it's also emotional, right? So peace of mind has value. And so that peace of mind could be paying off that high interest mortgage that you've got or peace of mind could be, you know, keeping that mortgage that's at that really low interest rate or whatever, you know, whatever scenario you find yourself in. Um, but peace of mind means a whole heck of a lot in addition to the math. Making sense.

Speaker 2:
Yeah. If the math B math and yeah, I guess the best answer on paper isn't always the best answer for the person, right?

Speaker 1:
I mean, you can look at, you know, any source that's out there, you can Google it, you can do whatever. And whatever the generic answer is might sound good, but it might not be great for you. And so that's, that really is what a lot of these things boil down to is, you know, are, is this rule of thumb or this piece of advice that's out here that somebody gave somebody else? Is that right for me? There's one way to know, and that's to go to take pride in retirement.com and then schedule that complimentary consultation. I'll be glad to assess everything and let you know.

Speaker 2:
Question number five how worried should I be about Social Security running out?

Speaker 1:
Okay, I love this question. Um, because it's a very common one. It's a common concern. And yes, Social Security does face challenges. I would say though, to you right now, take a deep breath. Social security is not going to be gone. Social security is not running out of money. You'll hear, oh, the Social Security Trust fund is running out of money, and that is something that is true. But Social Security is paid out right now from two sources. The majority of Social Security payments come from the payroll taxes that you and I pay. Every time we get a paycheck, you'll see like FICA tax there. That's Social Security and Medicare, right? You pay a portion, your employer pays a matching portion. And that's what goes into the Social security system. Now, the trust fund is a big fund that is there. And you know, the other portion, the smaller portion of Social Security benefits being paid out come from the trust fund. So if the trust fund runs out of money, which is now estimated to happen less than ten years from now, unless Congress acts, unless they do something to shore up the system, um, then that is going to run out. But that doesn't mean that Social Security is going away. What that means is that benefits would likely have to be cut at that point. So what you should do I is make sure that you plan with the sort of realistic expectations in mind. So plan, go ahead and plan on that benefit facing a 20% cut, for example, if you have that plan in place and you get to retirement and the benefits haven't been cut and Congress has shored things up and the benefits are the same at the same level, great, because then that's extra money in your pocket every month. But plan for those realistic expectations and don't plan with sort of panic. And, you know, I don't know, just, um, sort of half baked kind of headlines that you may see out there that are intended to make you go, oh God.

Speaker 2:
I mean, we hear and see those scary headlines all the time.

Speaker 1:
Right? I mean, and that's the thing, like they often those, those I use the term half baked a second ago because headlines Only tell part of the story. Headline. Having worked in the news business for a long time, a headline is the attention grabbing thing, right? That's what they want to get your attention to. Then go and read the story. So don't just read the headline. Read the story that goes along with the headline. The challenges, though, are real collapse of the system. Not likely at all, really. Historically, lawmakers have acted before full depletion of a fund like that and and will hopefully please God if if you're listening, I'll let them do that because, you know, we don't want to see that big reduction in benefits like I was talking about.

Speaker 2:
Yeah. So people shouldn't build a retirement plan assuming that Social Security is going away to zero.

Speaker 1:
Right, right. I mean, I, that would be, um, not realistic. It would be kind of a fear mongering sort of a thing. But don't rely on Social Security alone as your retirement plan either. It was never intended to be that. It's intended to basically keep people out of poverty in retirement, and it does a great job at that. But it does not do a great job as a sole source of income in retirement. Have a plan that includes diversified income sources.

Speaker 2:
Yeah. So my takeaway is that Social Security, it may change, but it's probably not disappearing.

Speaker 1:
That's exactly right. I would say 100%. You could see changes. You're likely to see changes maybe like raising the, uh, you know, retirement age, the full retirement age, things like that, raising those FICA taxes that are paid by employees and employers, some adjustments to shore up the system. But I do not believe at all that it's going to just completely go away. That would be political suicide for anybody.

Speaker 2:
Yeah. With that knowledge. Next question. What does a successful retirement actually look like?

Speaker 1:
Yeah, I love this question too, because that one is also it's different for everybody. Um, you know, and that is, that's the whole reason that I do this show is because it's different for everybody, and it's not just about the finances. The finances are what gets you there, but other things matter, right? Relationships matter. Your purpose in life matters. Your health matters a great deal. Your community matters. The people you want to spend time with, what you want to do, having that sort of smart vision for your retirement. Meaning what do you want to be doing in retirement? Who are you going to be spending your time with? All of those things, because financial confidence is really kind of the thing that underpins that, right? It supports everything else, but all of those different aspects of retirement matter. So it's not just about the dollars and cents, but it's a big important part of the picture, obviously.

Speaker 2:
Yeah. I mean, I think that's interesting because I feel like most people would automatically answer this question with a dollar amount.

Speaker 1:
Yeah. Oh, you have to have, uh, $15 million saved up and you'll be, you know, I'm sure I'd be happy with that in retirement. Uh, but, you know, it's money is not the end all be all of this equation. It is one of the tools. Again, we're talking about tools in the tool belt. It's one of the tools in the tool belt. It supports your experiences, your choices, your lifestyle in retirement. The goal isn't to just have the most money saved up and hoard it away. The goal is creating the life that you want to create for yourself and whoever else is in your life.

Speaker 2:
Yeah. And I think for LGBTQ plus community people, it's, it's so different because so many have to, they have to create their own families and their communities. Right?

Speaker 1:
Yeah. Oh, it's, it's such a unique perspective on this. When you're talking about our community as LGBTQ plus folks, you know, um, it's chosen family is huge for so many people in this community because they've been rejected by their biological family. And unfortunately, that's the case for a lot of people. Um, and we've seen that, you know, in our own, our own personal lives, uh, with friends and all. Luckily, we both have had wonderful parents and we're both so grateful for that. But we also acknowledge that so many people don't have that. So chosen family. Hugely important. Having a community that supports you around you. Hugely important. Having a purpose in life to wake up every day. Whether you're working in your in your working years or you're in your retirement years, that is also super important as well. And it can be tough sometimes to find that, especially when the world seems like it's crumbling down around us a lot of the time. But I would encourage you to find that, find that thing that gives you purpose every day. The thing that makes you tick, the thing that makes you you and focus on that. And, you know, then you can go from there. You can start building on top of that.

Speaker 2:
Yeah. So my takeaway from all of this today is that retirement success isn't measured by the size of your account balance. It's measured by the quality of life that you're able to live 100%.

Speaker 1:
I could not have said that better myself. And, um, along those lines, folks, you know, if you agree with that, if you agree that yeah, money, sure. It's important, but it's getting you to a place where you want to be to, to live the life that you want to live. I would encourage you to reach out, um, go to take pride in retirement.com. If you have a question that you would like for me to just answer directly to you, I can just, you know, if you go there, click on the contact page, I'll just email you right back with a response, or you can send a question to be answered here on the show. Take pride in retirement.com. Once again, it's take pride in retirement.com, or you can call 85524692118552469211. If you'd like help creating that retirement strategy that's built specifically for you, it reflects your goals, your values, your family structure, your vision for your future schedule. That complimentary consultation. I would really appreciate if you would do that. I'll answer any question that you have along the way. After I analyze your situation, you know, come up with a plan based on where you are now and where you want to be. Um, that's really what it's all about. And so yeah, go to the website once again, take pride in retirement.com.

Speaker 2:
All right. Well, that's about it for us today. I do believe, Matt.

Speaker 1:
I believe that you're correct. Um, yeah. Thank you for that. Yeah. Just about time, uh, to, to wrap things up here for this particular edition of the show. But thank you, Mr. Attache, for being here, as always.

Speaker 2:
Yes, of course. And thank you to the listeners for spending part of your day with us.

Speaker 1:
That's right. Until next time, take pride in yourselves and take care of each other. We'll see you then.

Speaker 2:
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 469211 or go online to take pride in retirement.com. Investment advisory services offered through Brookstone Capital Management, LLC. Bcm, 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 in 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.

Speaker 1:
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 A item four for additional information. Fixed annuities, including multi-year guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges. As described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer.

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