Retirement Q&A: The Questions LGBTQ+ Couples Ask Most Often

TPIR Ep 121 Full Show.mp3: Audio automatically transcribed by Sonix

TPIR Ep 121 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 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.

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

Speaker 1:
Well, thank you for being a friend.

Speaker 3:
Traveled down the road and back again.

Speaker 1:
That's just enough so we won't have to pay any like copyright things. And if you get that reference, obviously then you are among friends here at Take Pride in Retirement. Thank you so much for being a part of things this time. As always, you know, whether you are listening via your favorite podcast app, if you're watching on YouTube, if you're following along on social media, we are so glad that you are here. And today we're tackling something a little bit different. We've gathered together some of the biggest retirement questions, those questions that we hear most often from Lgbtq+ individuals and couples. And Josh, is Josh going to put me in the hot seat here?

Speaker 2:
Yeah, I'm looking forward to this because these really are questions people ask all the time.

Speaker 1:
Yeah. I mean, and that's the point, right? To, to get this sort of perspective for folks that they are wondering about. And, you know, these are common questions. And hopefully by the end of the show today, you are going to, as you are listening and or watching, um, walk away with some practical information that you can use to help you build confidence in your retirement. You can have that retirement that you can take pride in. Uh, before we jump into all of the, uh, you know, real substance of the show, make sure you are subscribed to the podcast and that you are following us on YouTube so that you never miss an episode. So yes, on YouTube, please like the video and subscribe.

Speaker 3:
Subscribe.

Speaker 1:
I can't make up my mind if I like the high one or the low one best. I guess just keep alternating.

Speaker 3:
Uh.

Speaker 1:
You got both of them, uh, today. And if you either are watching or listening, would like help creating your own retirement plan, give the website a visit. Take pride in retirement.com. Take pride in retirement.com. You can schedule a complimentary consultation there. You can also go to the phone. Yeah, take that out of your pocket or off your desk or your table or wherever, and use the phone app that's on your phone. Yes, you can still do that. Give me a call (855) 246-9211. I'd love the opportunity to get to know you, help you build a stronger retirement plan and one that of course, as I say all the time, you can take pride in.

Speaker 2:
Excellent. All right. Let's get into some of these questions here. So question number one, my spouse and I are both in our early 60s. How do we decide who should claim Social Security first?

Speaker 1:
Wow. One of the most common questions that that I get, you know, Social Security timing, it's a difficult thing to kind of answer because I guess the um the technical term is. It depends. Um there's no one size fits all for Social Security. You might think that there is because you know, you're eligible at 62, you know, or maybe you get your full retirement at 67 these days or whatever the case may be. And you're like, well, I'll just, I'll pick one. Um, but what you have to do is kind of look at both spouses together, not individually. And so, you know, the higher earner will often benefit from waiting longer. That's just in general, it's not, you know, any sort of personalized advice. I don't know, uh, you know, a, a particular person's situation because everybody is different. As we always say, survivor benefits can really be impacted significantly by a timing decision. And of course, as LGBTQ plus folks, we now have the access to all of the same, uh, you know, kinds of spousal and survival benefits as any married couple. And so a personalized Social Security analysis really matters here. And I'm going to say I am an RSSA that's registered social security analyst. I have access to some great, great software and can run a Social Security plan for you. Just an analysis of your situation based on the numbers directly from the Social Security Administration. And that can really give you a much better idea of the kind of benefit that you and your spouse working together there can, can sort of plan for in tandem.

Speaker 2:
Yeah. I always say that Matt is the advisor, the cares guy. So reach out to him and he'll be able to help you out. And one thing I hear people say all the time is that I paid into it. So I should take it as soon as I can. Now is that is that usually the best approach or. No.

Speaker 1:
Um well again it depends. Um sometimes it may be, sometimes it may not. You know, I get, I get that too, like, you know, that feeling of I'm eligible for it, I want it. It's almost like the money burning a hole in your pocket. You know, you've got it to spend. It's there. But a lot of times it can be advantageous to let that grow, as I say, like the higher earner in a spousal relationship. Generally speaking, can benefit both of the spouses by waiting longer to take that benefit. But you've got to take into account things like longevity risk and, um, you know, do you need the money? And that's sort of one kind of general rule of thumb is if you need the money, take it. So if you need it at 62, sure. Take it. Um, and you know, people routinely underestimate how long they'll live. Going back to that kind of longevity risk piece there. Um, so you'll want to kind of over plan for life expectancy.

Speaker 2:
Yeah. And for our community, the LGBTQ plus community and for the couple specifically, are there like any survivor benefit issues? They should pay attention to that. Maybe they're overlooking.

Speaker 1:
Yeah. I mean, there are, uh, you know, if you look at sort of the survivor benefit rules here, um, the larger amount, uh, between the two benefits. So like, let's say if, um, you know, spouse A and spouse B, right? You've got spouse A their benefit is $2,000 a month. Spouse B is, um, you know, $1,000 a month, let's say just as an example. So when let's say a spouse A or spouse B were to pass away, they wouldn't get to keep whoever the surviving spouses would not get to keep both of those checks. It's the larger of the two that they would get to keep. So no matter which spouse passes, that $2,000 a month check is the one that's going to survive. And let's say if it's spouse A who's making that $2,000 a month, if they were to pass away, spouse B sort of inherits that benefit amount from the spouse. Right. So, um, maximizing that higher earners benefit. That's why I say it can really be advantageous for a lot of people. And a lot of Lgbtq+ couples have never really had this explained to them in any, in any sort of way really. So that's why it's important, I think that we do this show.

Speaker 2:
Yeah, I mean, that's what I was gonna say. Like that's, that's kind of why this was birthed, right? It's because there's so many people in the community that don't know how things work. And that's what's great about, obviously, this podcast in general, giving out the information, but talking with you as a financial advisor and working with you who has their best interest at heart. And I mean, I'd say, I guess the biggest takeaway from this is that Social Security is not just an individual decision, right? It's a household decision.

Speaker 1:
Yeah, exactly. It doesn't live in isolation based on the one person who's going to get benefits, because you're both going to be eligible and the spousal and survivor benefits. It all intertwines. And so you just got to be mindful of all of that.

Speaker 2:
Yeah. All right. Question two. We are married now, but we spent many years together before marriage equality became law. Does that affect our retirement planning today?

Speaker 1:
Well, that is a great question and a very common scenario in the LGBTQ plus community. And it absolutely can. I mean, you've got to make sure that your beneficiaries are updated. For example, like, let's say if you were together for a long, long time, and maybe there are some old insurance policies out there before you just recently got married, where someone else, you know, another loved one or something is, is or, you know, God forbid an ex is a beneficiary on something, on some sort of policy. You want to make sure that those are updated to your what are your wishes now? And that's true of anybody, but especially the LGBTQ plus community, especially in this situation. Any wills, any trusts that you might have, those could be outdated powers of attorney health care directives. All of that should be in place. And make sure that you've you've reviewed those with an attorney. I'm not an attorney, but I could refer you to one if that is something that you are interested in doing. And if you're in this situation, you should be, um, but make sure that you get all of those reviewed, make sure they're up to date. And some couples still have assets tied up in ways that reflect kind of the older legal reality, like the pre 2015 legal reality rather than, uh, how things look now.

Speaker 2:
Yeah, I think so many younger LGBTQ plus people, they forget just how recent marriage equality really is.

Speaker 1:
Yeah, it was June of 2015 was the Supreme Court decision on marriage equality. I mean, that was just, um, about 11 years ago. Yeah.

Speaker 2:
Which is crazy.

Speaker 1:
It's insane. And so, you know, you, you look back and, you know, I think about it as we got married in 2011, it was legal in New York State at the time. But then we moved to Florida. We had zero marital rights at all. And, you know, we've told the story before about you going to the hospital with a kidney stone. Thank God you it was a situation where you were conscious because you told them, he gets to come back. This is my husband. Even though had it been a different situation in the state of Florida at the time, you. I would have no recognition as your next of kin at all, and wouldn't get to come back and wouldn't be able to make any decisions should those need to be made.

Speaker 2:
So that was not that long ago.

Speaker 1:
It was not that long ago at all.

Speaker 2:
So yeah. And so what are some of the planning areas people should revisit if they haven't updated these things in a while?

Speaker 1:
Well, go. Go through and revisit those beneficiary designations. I think that's probably the that's probably the easiest that's something that you could likely do on your own. You don't have to go through some sort of attorney or anything like that. If you want guidance doing that, I'd be glad to to help you along. If you've got any questions, go to take pride in retirement.com and schedule a consultation. I'll be happy to help guide you through that process. You also want to look over those estate documents as well. That one you might need an attorney for any life insurance. I could review that for you. Absolutely. Make sure those beneficiaries are up to date. Make sure the policy still makes sense for you in your situation right now. The benefit amounts, any living benefits could be outdated at this point as well. Long term care plans if you've got one of those in place, make sure that all of that is up to date. And also, you know, property ownership, make sure that everything is in the names that you want it to be in. Um, right now, you know, it's a great time to review that for someone in this situation.

Speaker 2:
Yeah. So my takeaway is that legal recognition may have changed, but that doesn't automatically mean all of your planning documents have been kept up.

Speaker 1:
Yeah, exactly. Exactly. Like the, you know, the Supreme Court ruling didn't automatically make sure that your, uh, you know, individual planning and documentation and all that stuff changed in any way. That's that's exactly right.

Speaker 2:
Yeah. All right. Question number three, how much cash should I keep on hand once I'm retired?

Speaker 1:
Oh, very good question. I think that the rule of thumb that applies to people at any age still applies in retirement. In my estimation here, the emergency fund still matters, right? You've got to have that cushion in case something happens. And and, you know, inevitably it will. Right. But That's often like 6 to 12 months of expenses. I usually say to people, get at least six months in some sort of high yield savings account or a money market account where it's liquid. You still have quick access to it in case of emergency, but it's actually earning some interest. It's not just sitting there. Don't put it under the mattress. Right. Um, and it depends on, you know, also the answer to this question depends on any income sources, you know, and your risk tolerance, uh, as well. Risk tolerance of risk is always a big question. And this situation is no different. You can, if you don't have enough cash on hand or at least easily accessible, that can force you to make withdrawals from your accounts, your, um, you know, uh, maybe tax advantaged accounts or tax tax deferred accounts, I should say those IRAs, maybe 401 K accounts, things like that during market downturns. Um, or your, uh, you know, maybe like a brokerage account, an investment account as well. Um, but too much cash can actually lose purchasing power to inflation. And that's why I say you want to keep it somewhere where it's actually earning interest. So if it doesn't necessarily keep up with inflation, at least it's it's trying it's not just sitting there and losing as much purchasing power as humanly possible.

Speaker 2:
Yeah. And do you believe that people can become too conservative with their money?

Speaker 1:
Yeah. And absolutely. Can I feel like, um, you know, inflation is, is a real kind of hidden risk. It's been more in the forefront over the past several years, especially right now. We're all feeling it at the, at the gas pump. And when we pay our bills and at the grocery store and all that. But, you know, you look over, say, a 30 year plus retirement, you know, even if retirement is like 40 years, you could spend just as long, uh, retired as you did working. Um, some growth in that is usually still necessary. So you don't want to just take it, as I said, and put it under the mattress and let it not grow at all. You want to get some growth, so then you're at least trying to keep pace with inflation.

Speaker 2:
Yeah. And it's odd to say, but cash is important. But too much cash can create its own problems. More money, more problems.

Speaker 1:
That's right.

Speaker 2:
That's right.

Speaker 1:
Too much of a good thing is absolutely right. And and look, you know, if you have questions about anything like this, if you want a second opinion about how much cash you should have, because a lot of these things are dependent on your situation. I always say that this show is for educational purposes and that you, you know, if you need that personalized advice, you really do in your situation, we can offer some sort of, you know, general guidelines here and there on the show. But as a, you know, fiduciary operating in a fiduciary capacity, that is, I can only give you that personalized information that, you know, is part of my fiduciary capacity and obligation. If we meet one on one. So go to take pride in retirement.com, schedule that complimentary consultation today. It's take pride in retirement.com. You can also call 85524692118552469211, and we'll talk about all kinds of stuff. Your goals. We'll review your investments. We'll discuss your tax planning for the future. We'll talk about Social Security. I can run that in depth. Social security report for you. Talk about income planning. Talk about how much you need to be investing or saving so that you're on track for the retirement, that you envision a retirement that you can take pride in.

Speaker 2:
Excellent question number four. I don't have children. Does that change how I should think about estate planning?

Speaker 1:
Yes. Leave everything to the dog. No. Um, it's it's very common though in the LGBTQ plus community. It's like, what do you do? Um, and, you know, estate planning needs to be more intentional, uh, if that makes sense as an LGBTQ plus person, you know, who's going to make decisions, for example, if you are unable to. That's where things like a living will comes in handy. Um, you know, and powers of attorney and things like that. And, you know, if you want to, uh, you know, instead of if you don't have heirs, for example, like if you're not someone who has kids or, or, um, maybe you have nieces and nephews, things like that, or maybe you have chosen family. Of course, those are people you could leave your assets to. So don't ignore that. But obviously does change your sort of view on estate planning because, you know, legacy can be about impact, the impact that you leave behind, not just your heirs and like who that money or whatever asset it is goes to.

Speaker 2:
Yeah, I think a lot of people hear estate planning and they immediately just think that's for the wealthy.

Speaker 1:
No, it's but that is that is very true. That that's the assumption. But it's not true that estate planning is only for the wealthy. I mean, this is look, people everybody has an estate. This glass right here is part of my estate. Actually, it's not because it belongs to the office. But anyway, um, but you get the picture. It's like that lamp behind you is part of my estate. Um, and that could be, if that's all you got, then that's all you got. But everybody has an estate. It could be big, could be small. And estate planning is really just planning for, uh, life's transitions really, you know, transitioning that, uh, asset or those assets, whatever they may be, whether it's a lamp or whether it's, you know, millions of dollars to the next generation or to organizations that you really care about and making an impact that way. It protects those people and those organizations that you, that you really care about.

Speaker 2:
Yeah. So estate planning is really about protecting the people and causes you care about.

Speaker 1:
Absolutely. That's, that's 100% what it is. It's protection for the people who are around when you are not and you can still be impacting, you can still be with them, uh, after You may not physically be here anymore anymore, but the part of the legacy that you leave behind, that's the way that it's the way you stay alive, you know?

Speaker 2:
Yeah. Question number five. Here we go. All right. I've heard people say annuities are either amazing or terrible. What's the truth?

Speaker 1:
Um, yeah, people will sort of fall along the opposite polar ends of that spectrum. A lot of times. I think, though, that the truth is more somewhere in the middle. Um, and because there are so many different kinds of annuities. And here's the thing, one annuity may be really terrible for you, even though it was great for your cousin or your uncle or your aunt or your mom or your dad or whomever your friend down the street. But it might not be right for you. It could be great for you and bad for everybody else. You know, like it's they're built for different situations and scenarios. So there's fixed annuities which guarantee a specific rate of interest growth over a certain number of years. There are indexed annuities or fixed indexed annuities, as they're also known. Those are tied to a specific market index and grow with that index over time. But they offer guarantees against loss of principal. And then there are variable annuities which are tied directly to the market. All of these work differently. Some are designed for growth, some designed for income. You think of them not as, oh, this is perfect and this is all I need. Or oh, stay away from this. That's not going to ever be a thing that I would consider. And look at them as tools that you can have in your tool belt. And maybe that tool, you know, maybe you need a hacksaw for a particular thing that you're trying to do a particular project around the house. Maybe you don't, maybe you only need a hammer. And so don't try to, you know, uh, drive in a nail with a hacksaw. Have the right tool for the right job. And that really is what it's about. Annuities can be great tools if you need 1 or 1 would be advantageous. I'll tell you. If not, I will say, you know, don't get one. It's not good for you. Uh, you know, really can go both ways.

Speaker 2:
Yeah. And I think so many people, they talk about annuities as if they're all the exact same.

Speaker 1:
Oh, no. Yeah, exactly. And that's why, I mean, so many people out there have heard just sort of carte blanche. Annuities are awful. Stay away from them. They're terrible and all that. And that sort of to me like saying all vehicles are the same, you know. Oh, well, I have a, I have a car. Okay. Well what kind? Well it's um, it's actually, it's a it's a truck. Okay. Well what kind? Uh, what's what's the. Well, that's a Chevrolet. Uh, you know Silverado. Okay. Well, is it, what's the package that it comes with? You know, what's the trim level? All that kind of stuff. So it's like, no, all vehicles aren't the same. That Chevy Silverado is a lot different than a Mercedes, you know, whatever sedan. So it's like different products can solve different problems and fit different people's lives and, and needs.

Speaker 2:
Yeah. So my takeaway is that an annuity is just a tool. And whether it's helpful depends on what you're trying to accomplish.

Speaker 1:
Yeah, yeah. No, a great way to put it there because it's, you know, the tool has got to fit the job, as I was saying earlier. And that's a, that's a great way to look at it. Definitely.

Speaker 2:
Yeah. Question number six. I'm 58 and feel behind on retirement savings. Is it too late to catch up?

Speaker 1:
This is actually one of my favorite questions. Um, because, you know, as, as we've also talked about on the show before, we, uh, have experienced that a guy came up and is now a client of mine, but came up at, uh, Atlanta Pride last year and said, I'm never going to be able to retire, but actually ended up reaching out. We sat down for that consultation. I ran the plans and he's like, oh, wait a minute, I can retire and sooner than I thought. So no, it is not too late. It's not too late. If you're 58, it's not too late. If you're 60 now, that plan is going to look different than had you started planning when you were 30. Certainly. But you focus on the controllables control the things you can control, right? Catch up contributions certainly take advantage of those. Those are extra contributions that you can make beyond the normal limits for people who are younger. Um, delay retirement maybe by a couple of years to help you catch up, make more contributions. And that can really help significantly optimize your Social Security. See me for that Social Security report that I can run your RSS, a roadmap, as we call it, that will show you what the optimal time for you to take that benefit is, and it takes all the different things into account. Reduce your unnecessary expenses as well between now and when you retire. That'll help give you more money to set aside for retirement, and then turn that into income. When you do retire and build a plan that's realistic, not some pie in the sky thing, but something that's going to be realistic and get you to a place where you're going to feel like, oh, this is a retirement I can actually take pride in.

Speaker 2:
Yeah. And I imagine a lot of people listening. They needed to hear that.

Speaker 1:
Yeah. Uh, because a lot of people feel behind, you know, it's, it's one of the more common questions of, of all of these that I get is, you know, will I actually be able to, to retire to call it quits? I've always dreamed of it, but I don't think I'll be able to retirement. It's not like, you know, if you ever had a test that you took in school that was pass fail. You know, it's not it's something like that. It's a retirement is not a pass fail scenario. Um, progress is much more important than perfection. So don't let, don't let the perfect be the enemy of the good, right?

Speaker 2:
I love that as an actor. That's a good saying. Yeah. All right. So my takeaway is that it's never productive to spend so much time focusing on what you didn't do. The important thing is figuring out what you can do right now.

Speaker 1:
Well, yeah, I mean, look, if you sit around and just think about all the things that you didn't do, uh, that can occupy all of your time and you will never make any progress ever on anything. Um, and so yeah, I mean, figure out what you can do now going forward. And don't kick yourself for making those decisions in the past, because the past is the past. It's done right. So look, if you have a question that you would like answered, whether here on the show or just one on one, I would love to hear from you. Go to take pride in retirement.com. Take pride in retirement.com. Send that question in. I'll answer it here on the show. Or I can if you're just like, hey, just I don't want this on the show, but just to, you know, answer this for me if you would. I'll be glad to do that as well. Once again, take pride in retirement.com. Or you can call me 85524692178552469211. I'll get to know your goals. Set some priorities for you. Review your current investments. What you've got. Tell you how you can get to where you want to go. Evaluate all the things we've talked about here on the show today. Social security taxes, income strategies, potential risks. Create recommendations designed around you, not around somebody else, but around you and your life and what you need, and answer each and every question that you might have along the way. So that's what happens. Go to take pride in retirement.com for that consultation.

Speaker 2:
I love it and everyone listening or watching. Thank you so much for spending part of your day with me and Matt.

Speaker 1:
Really do appreciate it very much. Yeah. Either way, I think works. Uh, no, we do do appreciate it so much again, uh, you know, spread the word about all that we're doing here. Really would appreciate that. Also, it'll help the show continue to grow and to make a difference in the LGBTQ plus community and beyond. Well, 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 69211 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 sole through individually licensed and appointed agents. Matt McClure, an 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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