Spring Into Growth: LGBTQ+ Financial Resilience for Q2 2026

Episode 103: Audio automatically transcribed by Sonix

Episode 103: 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+ 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 really do appreciate you joining me each and every time that we get together. I say it every time because I mean it every time. You know, it's not lost on me that you can literally be doing anything with your time and the fact that you choose to spend some of it with me. I mean, come on, it's just it's it's flattering. It means a whole lot. And so I really do appreciate that. And that's what I'm going to say about that. Otherwise, I'm going to say that today on the show, we're going to talk about Lgbtq+ financial resilience as we spring into growth. You know, spring has sprung, at least, you know, starting to feel like it. I feel like in most of the country, it's starting to feel very spring like. So we're going to be talking about how to spring into growth. We're going to talk about, you know, where the markets have been headed. What kind of lessons are we learning as we go along? Because we're constantly learning. If we are not constantly learning. Then we got problems. So if you stop, if you stop learning, you got issues, right? So that's why you're here today. So that's what we're going to talk about. But I would appreciate it as well if you would go to take pride in retirement.

Speaker 1:
Take pride in retirement. Com couple of things you can do there. You can find links to all the socials. The, um, the website is full of just information about little Ole me. Uh, I've got a welcome video there that kind of introduces you to me and what I do and why I do what I do. All of the above. So I'd appreciate it if you did that also. You can schedule a free consultation. It's 100% free of any cost or any obligation. You just go to take pride in retirement.com. Once again, that's take pride in retirement.com to do that. If you are maybe a little bit old school, I love it. If you would, you know, pick up the phone and call me if that's more your speed. All right 855246 9211. It's (855) 246-9211. That is the number to dial on the old cell phone. And also hi if you're watching us on YouTube, just a quick shout out to you. Please do like this video, subscribe to the channel. That really will help. Okay, so you know, the first quarter of the year is, um, gosh, it's hard to believe it's just about coming on here, but it's more than just a milestone on the calendar, right? It's, it's a really big opportunity to sort of refocus and retool things. And so on the show this time around, we're talking about why this, you know, beginning of springtime is the perfect time to sort of reset that retirement strategy that you might have set, you know, a few years ago.

Speaker 1:
And maybe that's not who you are or where you are in life anymore. And so you need to reset, you need to refocus. And so, you know, right now, um, we're going to focus on that on the show and how Lgbtq+ folks face unique financial challenges that do require specialized planning. And we're also going to talk about some of those powerful moves that you can make as we head into 2026. The Q2 portion of the year anyway. And so how are things shaping up so far? If you said kind of crazy, you'd be right. Uh, you you would definitely not be wrong. Uh, that is for sure. Uh, but there are a few things to consider, especially as an Lgbtq+ person, as we head into, uh, the, the Q2 part of the year. So, you know, if you to understand how financial momentum kind of builds over time, you got to start with a big broader picture markets, interest rates, investor sentiment, all of that stuff influences retirement decisions. It influences the market like, like the investor sentiment, interest rates and all that. Obviously it influences the market. It also can influence your retirement decisions as a result. And so for LGBTQ plus investors, you have to take into account some additional factors here. So let's look at the current economic landscape first. You know several major forces are shaping the investment environment as 2026 begins.

Speaker 1:
Number one, the Federal Reserve has continued to leave interest rates elevated. They're not as high as they were. Obviously, they've dropped those interest rates. The fed funds rate a couple of times, but they still remain elevated compared to those sort of ultra low levels that we saw for several years pre-pandemic. And the fed continues to kind of balance that goal of controlling inflation with economic growth as well. It's like, how much do you tamp down economic growth in order to battle inflation? And you know, I mean, it's it's a tough thing. It's a it's a tough teeter to totter, as you might say. And higher interest rates, obviously, those influence borrowing costs, uh, yields from your savings and that sort of thing and bond market performance as well. Um, economic growth for the most part, though, in 2026 so far has remained pretty resilient despite a lot of these different challenges and recession concerns that have been around. Of course, now we've got the whole situation in Iran with war there that could really upend things. And so that's something to keep in mind as well, because you've got to, you know, expect the unexpected, I guess you could say. Um, it's one of those things that you've just got to keep in, uh, in the back of your mind that, oh, well, this is another new factor in life and in our current sort of situation here. And, you know, consumer spending, employment levels, they do continue to, um, you know, support overall economic activity as we move on into the second quarter of the year here.

Speaker 1:
But there are factors out there. We did see, you know, a revised jobs report, um, for the beginning of the year, I believe, um, that or end of last year, correct me if I'm wrong. I just saw it today. But that was showing that job growth was not quite as robust as we thought it was for a previous month. They also had some consumer spending numbers that were revised downwards. And so it sort of remains to be seen. You know what how things kind of shake out. Stock market has continued to reflect those long term growth trends. It's been rocky. There's been a lot of volatility here over the past, uh few weeks, especially because of the situation in Iran. Um, and so, you know, there that volatility continues to rear its ugly head. And that is a reminder to all of us that markets don't always move in a straight line. If you ever see a graph of market performance, it usually looks like an EKG. You know it's going to go up and down and up and down and up and down. And that's just the way that things operate, right? That's the way things are in the markets, and that's how they have historically been and not really moving just up, up, up in a straight line.

Speaker 1:
And that's why we encourage investors to diversify, diversify, diversify. Those are the three main rules diversify, diversify, diversify. And you want to make sure that you're diversified in not only your asset allocation within like your 401 and your IRAs and maybe your investment accounts and those types of things. But by types of accounts, you want to have, you know, tax free, tax deferred, taxable. You also want to have things that are protected from market downturns. And those are all things that I can help you with. By the way, go to take pride in retirement.com take pride in retirement.com. It's a it's absolutely free of any cost or any obligation. Obviously, it's free to do that to go to the website, but if you choose to meet with me as well, and that initial consultation, it is free of any cost or any obligation. And so these market numbers here, what do they mean for LGBTQ plus investors. Well, those headlines about the markets, they do change. They change constantly. But when you're planning for retirement, a couple of things you got to keep in mind, even though the market headlines, those day to day headlines can change and change, you know, pretty, pretty often. And, you know, even minute to minute, sometimes it feels like I used to be a reporter on the floor of the New York Stock Exchange. And I know how fast things can change, can turn on a dime in the in the markets.

Speaker 1:
But you've got to pay careful attention to some different factors. And you've got to also keep in mind that you're in it for the long haul when you're planning for retirement. Those minute to minute, day to day changes are not really what is, you know, going to affect your long term outlook. The short term doesn't always affect the long term. Sometimes it does, sometimes it doesn't. But you got to keep your eyes on the prize, in other words. But for LGBTQ plus folks specifically, the wage gap is is hanging in there. It is persistent. And so, you know, workers in our community earn less over their lifetimes compared to non Lgbtq+ workers. And that reduces retirement savings capacity overall. Trans workers are especially at risk of this facing severe employment discrimination, especially right now that affects your lifetime earnings. Um healthcare costs are higher for LGBTQ plus folks, according to the National Resource Center on LGBT aging. Uh, seniors in the community spend more on healthcare due to discrimination, delayed care, higher rates of certain health conditions also. And then social Security survivor benefits for same sex couples. They've only been recognized after the 2015 Supreme Court Obergefell decision. So a lot of couples lost years of potential benefits previously. So you've got to keep that in mind as well. But you also have to keep in mind the average annual rate of return for the S&P 500 since 1926 is 10.6%. So long term is how you got to be thinking not just about the short term.

Speaker 1:
Lgbtq plus adults age 50 and over 29% in that group live in poverty at nearly double the rate of other, uh, non LGBTQ plus older adults, according to sage. And I was lucky enough to have someone from sage here on the show, uh, last year. And so, hey, check that out if you will. Um, 74% of Americans say they worry about market volatility affecting their retirement savings, according to Gallup. And I would say probably the other 26% are not necessarily telling the truth. I think everybody is really worried about market volatility in one way or another, and then a million plus dollars. That's the estimated lifetime healthcare cost for trans individuals due to discrimination, barriers to care, things like that. And that's the National Center for Transgender Equity. Um, that, that came out with that study showing those numbers. And so, you know, market momentum does not come from perfect timing. It's not time in. It's not timing the market. It's time in the market, right? And so it comes from that consistency. And for LGBTQ plus individuals, that means really starting early when possible and then maximizing contributions despite potential wage gaps that we just talked about. Reviewing your strategy every once in a while. Make sure that you do those regular check ins. Make incremental adjustments when necessary that can keep your plan aligned not only with changing market conditions, but also with changing life circumstances and the things that are, Are, you know, changing all, all around us, but also changing in your life.

Speaker 1:
You know, marriage or moving or, you know, changing jobs, any of those things. You know, just as you age as well, your, your life situation changes. And so, yeah. The markets always move. Lgbtq+ investors face unique challenges. And if you would like help addressing those, give me a shout. Take pride in retirement. Take pride in retirement. Com is the website. You can also call (855) 246-9211. And uh, so yeah, we're looking at, you know, of course, the first quarter of the year today and springing into growth. And, uh, I wanted to take a minute here to sort of highlight why the first quarter is a great reset moment because obviously, you know, you think a lot about resets in January, right? First of the year, fresh start, all that stuff. But Q1 as a whole. So January, February, March, the first quarter of the year can be one of the most valuable sort of windows of time to reset your momentum. I mean, tax season is around the corner, right? Market performance from previous the previous year is in the rearview mirror. It's clearer we know more about it. Investors still have most of the year ahead to make meaningful adjustments. And so early in the year you've got several advantages here. You know, as we said, as I said just a second ago with previous years, investment performance is fully visible.

Speaker 1:
And so as opposed to early January, when you might not have the clearest idea of how things have been going. And so evaluate that portfolio, make sure it's aligned with your long term goals. Your contribution limits for retirement accounts are updated. They are widely available as well. And so as you look at your contribution limit for this particular year, those have gone up, those different contributions that you can make to your 401 K. Your IRAs all both, you know, Roth and traditional, all that kind of stuff. Has been updated. And so those are those get increased pretty much each and every year. Tax documents are arriving or have already arrived of course, in Q1. And that gives you a clearer picture of your income, your deductions, potential planning opportunities there as well. And so when you are a member of the LGBTQ plus community, you've got some specific planning priorities that I believe you can take advantage of here in Q1 and make sure that your year is off to the best start possible. You can do do an estate plan. Or if you've got an estate plan, review it, make sure that it's still up to date. Make sure those legal documents reflect, reflect your wishes, especially if you have, you know, a non-traditional family structure. If you depend a lot on chosen family. Um, same sex marriage is federally recognized, of course, but estate plans still need updating on a regular basis.

Speaker 1:
Maybe you got an estate plan established a few years ago when you were partnered with someone else. Perhaps, and maybe they're still part of that estate plan. But as of right now, in this moment, as you sit or stand or run or walk or whatever you're doing lying down, whatever, wherever you are and whatever you're doing as you listen to my dulcet tones, um, you are not with that person. And so you wouldn't want that person to be your primary beneficiary or even a, you know, non-primary beneficiary on anything. So just make sure that that's all up to date, including the beneficiaries on your retirement accounts, your insurance policies, investment accounts. Make sure they list your current beneficiaries. You also need to do some health care planning in Q1 as well. You know, review if you're 65 or older, your Medicare options, supplemental insurance as well. And seniors in our community may need, you know, specialized providers who offer affirming care. So seek out those resources that you know. Make that a bit easier for you. Sage s a g e is one of those that I mentioned earlier. That's a great resource. And, um, just, just Google it. You know, sage s a g e and you can just search LGBTQ after that and it'll take you to them. They've got a lot of great resources, including financial resources as well. And so, you know, behavioral researchers also this time of the year, um, are focused on renewal and a fresh start.

Speaker 1:
And so they have identified something, uh, especially at Harvard Business School and behavioral research, they've identified the fresh start effect, which is this sort of psychological tendency for people to pursue goals more actively after time markers, like the start of a year or a birthday or the beginning of a new season. And so this is, you know, as we go into spring, the beginning of a new season. And so early spring is just a powerful moment to re-engage with those financial goals that, you know, may have drifted away a little bit. They've, they've gone away in in the wind. And now you need to go find them because they, they've blown away, blown away. And so they need your help. Bring them back home to you. Um, but no, just reengage and, and re-up on those financial goals instead of waiting until December to review your progress. If you take action early, that really does provide time for adjustments to actually work the rest of the year, right? Instead of just waiting until the end of the year. And so, you know, give yourself that time. Um, you know, you've got, uh, time now, as I said in the calendar to, to flip a bunch of different pages to different months. You know, we got more than nine months left in this year. And so take advantage of that time. And here's the thing too. A spring sort of financial review doesn't require a major overhaul.

Speaker 1:
You know, you don't have to go rent a backhoe and a and a bulldozer, um, to to make the necessary adjustments. I mean, for, uh, you and me and all of the community, uh, I would say focus on three priorities. One, updating those legal documents. Two, maximizing your retirement contributions, knowing what those are, and three, building an emergency fund that covers at least six months of expenses in case you suffer job loss due to discrimination or otherwise. And so reset that financial momentum in the springtime, this early spring, especially, uh, important for LGBTQ plus folks. I just, I always want to give this reminder to, to really, um, focus on your self. I think a lot of times we focus on others and, and all of that. And I know that, uh, you know, so many, uh, LGBTQ plus folks are so generous and love to be of service to others, uh, in my particular experience. And so take some time and focus on yourself, right? Take some time and make sure that you are, um, aligned the way that you need to be aligned from a financial standpoint and from a live standpoint in general, take pride in retirement or call 85524692178552469211 or go to take pride in retirement.com. You can schedule a complimentary consultation and start Q2 as as we head into this spring time, start with a clear and inclusive financial plan, one that you can take pride in.

Speaker 1:
All right. So before we go here, a little bit of a reality check for LGBTQ plus retirement. We've got some unique challenges that we need to be aware of. And so there's the financial impact of discrimination, for one, that really does still have an effect on us. It may not be as prominent as it once was, but there are wage gaps that reduce lifetime savings. Mentioned that a little bit earlier, higher poverty rates in retirement as well that I that I also mentioned. Employment discrimination does persist. We think about this a lot of times in the rear view mirror. And I address this a little bit with, with trans folks just a few minutes ago, but it still does in 27 states, there are no explicit protections against employment discrimination based on sexual orientation or gender identity. And so that creates job instability and, and income gaps as well. You had if you're lacking those protections, you just can't, um, you know, effectively plan because you're worried about losing your job just because of who you are. And hello, as I've mentioned on the show before, yeah, that's happened to this guy. Um, you've also got social security and benefits challenges. You know, things, uh, were, were very much delayed until 2015. The Obergefell decision that legalized same sex marriage throughout the country. And so those benefits, survivor benefits were denied for decades prior to that for LGBTQ plus folks, married or not.

Speaker 1:
So those are benefits that people missed out on. Um, you know, marriage timeline matters. So to receive full Social Security spousal benefits, you've got to be married for at least ten years. And many couples who were together for decades couldn't legally marry until about ten years ago. Maybe they didn't, you know, actually get married, tie the knot until a few years after. And so that is something to keep in mind. You know, you've got healthcare and housing discrimination to think about. Uh, we've got, um, you know, less family support as well. Generally speaking, um, because I mean, sage, that same group that I keep talking about here, they're a great, great organization, but they did a study a couple of years ago that found that LGBTQ plus seniors are twice as likely to be single and live alone, and are four times less likely to have kids who can provide care or financial support. And I mentioned chosen family as well. You know, chosen family does really matter and make up a lot of the community's sort of support system. And so understanding these specific retirement challenges is so crucial for building a plan that works and that works for you so that we can give you a retirement you can take pride in. That is my main goal is giving you a retirement you can take pride in. That's why the show is called Take Pride in Retirement. So if you need help addressing any of these unique concerns or more, that's just kind of the tip of the iceberg here that I've mentioned on the show today.

Speaker 1:
But if you need help addressing those unique concerns, visit the website. Once again, it's take pride in retirement.com. Take pride in retirement.com. You can also call 855246921185524692 11 and schedule a complimentary consultation with this guy with me with Matt McClure. Because I am a member of the community, I understand your needs and your concerns, and I can help you build that future and a retirement that you can take pride in. Well, that's going to do it for this edition of the show. Coming up next time on Take Pride in Retirement, we're going to talk about, you know, refocusing on growth after periods of market volatility and just kind of keeping things in perspective, right. We're going to talk about, you know, continuing to respond to the things that we can respond to and control the things that we can control. Right? So that's coming up next time. Look for that here in just a couple of days, new shows each week on Friday and on Tuesday. And yeah, just like and subscribe and do all the things. I'd appreciate you helping me spread the word about the great stuff that we're doing here. All right. Well, that's going to do it, as I said, for this edition of the show. And 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+ community deserve to work with the 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.com. 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 in, sold through individually licensed and appointed agents.

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 disclosure of any conflicts of interest, please refer to our firm brochure, the ADV Too-a item four for additional information.

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