Stop These Financial Mistakes Before It’s Too Late

TPIR Ep 114 Full Show.mp3: Audio automatically transcribed by Sonix

TPIR Ep 114 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+ 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. Thanks so much for being a part of things, as always.

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

Speaker 1:
The hubby, co-host, attache, all of the things we wear many hats around here. And that's great because, you know, I sometimes I wake up and I don't want to do my hair, so I got a hat to put on. Uh, but thank you so much for being a part of the show as, as I say, each and every time I say it because I mean it. Uh, without you listening and or watching this show would not exist. So I really appreciate it very much. If you're watching on YouTube, please like this video, subscribe to the channel. We really, really appreciate that and spread the word to your family, your friends. If you don't like us, spread the word to your enemies, that kind of thing. Because you know, the more eyeballs on what we're doing and the more ears open to what we're doing, I believe the better. And all we're doing is really spreading the word about retirement planning and different considerations for LGBTQ plus folks. Today we're going to be talking about, um, some bad money habits that could derail your retirement. Before we get to that, though, two little housekeeping items that I want to want to go over. I will probably say this many a time on the show today, but reach out for a free consultation. Take pride in retirement.com is the website. Take pride in retirement.com once again. You can also call (855) 246-9211. It's 8552469211. That is the number to call now. Number two is something that I just sort of steamrolled through a second ago, and I didn't let Josh do his thing, which is I want to remind you again, if you are watching us on YouTube or, hey, if you're if you're listening to this in the podcast, what should they do? They should subscribe.

Speaker 1:
That is it. Subscribe. And there we go. We got the high. We got the low. Whether you're feeling high or low or anywhere in between, like and subscribe. We really would appreciate that. All right. All right. So let's talk about something that I think a lot of people are guilty of. And that's when the market drops. People freak out, right? They panic and they want to sell everything. And basically they want to stop the bleeding. So is that actually one of the biggest mistakes people could be doing? Yeah, it really is. I mean, that's, that's going to be, um, investing with your emotions is probably one of the bigger, um, you know, financial mistakes that I see. And I recently, because there's been a lot of market volatility here lately with all the stuff going on overseas and gas prices and all the things. And I sort of had to, um, talk a client, not necessarily off the cliff a couple of weeks back, but just say, stick it out. I'm like, we don't need to be selling right now. Because that's the thing is if you sell when the market is down, you lock in those losses. If you're still invested in the in the market, you still have the same number of shares, right? Those shares are just worth a little bit less.

Speaker 1:
Or some of them could be worth less. Some of them may be worth more, but you still got the same number of shares. So you are still invested, but you haven't realized that loss. As soon as you sell those shares, then you realize that loss, it becomes real. It becomes something that is locked in. And unless you were to, I don't know, within the next second, immediately reinvest that money, then you're going to miss out on the upside because the thing that you don't want to do is lock in the loss. And then after you're out of the market on whatever portion of your money or all of your money that was in the market. When the market does bounce back and history has shown us that it will, you're going to miss out on all of that growth and that potential going forward. Markets move in cycles, right? They contract. Markets go down. They recover. Markets go up and then they expand. They become more opportunities for investment. So that is the way that market cycles sort of work. And there are, you know, potentially some other road bumps, you know, road bumps, road blocks, I should say, or speed bumps. That's a combination of the two along the way. But generally speaking, that's how things work. And so emotional decisions in the short term, those are going to derail your long term plans.

Speaker 3:
So what should people be doing instead then.

Speaker 1:
Focus on the long term really. I mean, have your eyes on the prize, right? If you are several years out from retirement, don't think that those short term losses are going to be something that's locked in unless you sell. So just stay invested, stay informed about what's going on. Should there come a point, you know, where you want to maybe reallocate move some money around to something that might be a little bit safer in the short term. You know, that is a possibility. Or if you've got some more money that you want to invest during a down market, that can be a great opportunity to do so because you're buying shares at a discount. So you can work with an advisor. I happen to know a guy, um, and build a diversified strategy that's aligned with your goals. I should also say with LGBTQ plus folks, a lot of investors in our community may feel extra pressure because they don't have a financial safety net that maybe some others in the general population do. Like families, not supportive, whatever the situation might be. And so that makes the planning, but it also makes the discipline even more important. And if you want someone to help you come up with that plan and help you with the discipline, I can do that. Take pride in retirement.com is the website. And again, the consultation is free.

Speaker 3:
The advisor that cares, Matthew McClure.

Speaker 1:
That's what we always say.

Speaker 3:
Yes. All right. So let's talk about social social Security.

Speaker 1:
Easy for you to say.

Speaker 3:
So big. I can't say it. Let's talk about Social Security. So a lot of people take it as soon as they can. And is that a mistake?

Speaker 1:
Well it depends. Uh, um, you know, my sort of general advice, not any specific advice to to anyone who's listening or watching right now, but sort of in general, I say to take it when you need it. You could, um, you know, need it at 62 if you need it at 62. Take it. Uh, that's just in general, depending on your other parts of your financial life. But if you do claim early, just one thing you've got to know is you have a reduced benefit. So you can claim as early as 62, but that benefit is going to be reduced from what it would have been had you waited to your full retirement age, which for folks listening or watching right now is either 66, 66 and some months or the age of 67. And even if you're able to delay, You can give yourself an 8% raise each year out until age 70. And so that could mean, you know, a big difference, especially if you've got longevity on your side, that could be a good thing for you. So that decision not only impacts your, uh, your lifetime income, but also spousal benefits as well. Um, do you want those to be reduced? Do you want those to be increased? That decision is up to you when it comes right down to it.

Speaker 3:
So when does it make sense to wait then.

Speaker 1:
Well so if you do delay again it really increases that monthly benefit significantly. But you got to weigh all the things in the balance, right? If you have, you know, historically had family members who have lived well into their 80s, 90s or whatever, then delaying could make a lot of sense because then you've got time to sort of make up the difference, right? So if you were to start to claim at your full retirement age, but you say that's 67, but you delay for three years, well, you're missing out on three years worth of income in the meantime for that future benefit. But then the question becomes, okay, how long do I have to take that benefit from Social Security at age 70 and beyond to make up for and then surpass what I would have taken in between 67 and 70? So that's something that you've got to weigh in the balance. If you've got longevity again on your side, that is a place where it really makes sense to delay. And, you know, it's really sort of one of the biggest decisions that you can make in retirement planning. You kind of can really give yourself a guaranteed raise of 8% a year when you delay beyond your full retirement age. So it's something that you've got control over. I say all the time, control what you can control. And that's one of those things that's a decision that you can make for yourself.

Speaker 1:
Um, marriage equality for LGBTQ plus folks really did change the game as far as Social Security, but still many couples don't have, um, If a full understanding of spousal benefits, survivor benefits all of those things, they may have gaps in their earnings history. One spouse may own or may earn rather significantly more than the other. How does that affect Social Security benefits? So custom Social Security planning is critical. And this is where I come in. As a registered social security analyst, I can take and analyze your specific situation, show you what you can expect from Social Security, and show you the different claiming options that might be the most optimal for you, your spouse, whatever the situation might be. Take pride in retirement.com is the website. Take pride in retirement.com and it's complimentary. It's part of the the offer that I give to all of the listeners and people who reach out. Take pride in retirement.com for that free Social Security maximization report. It's called an RSS, a roadmap. And then all of the other, um, you know, sort of in-depth reports about your finances and a recommended plan as well. You can also give me a call (855) 246-9211. Yeah, and I've loved the clients I've met with you through the years, whether it be at pride or just in passing or, and I love the things that you're able to do for these people, particularly for our community, just because it is so different.

Speaker 1:
I say it every time and in every podcast that everyone's situation is completely different, right? And so even with us, you may not be aware of some of things you should be planning, even though, yes, marriage equality is there and yes, it's legal. You and I have had issues where it was not the law of the land. And we went to a different state and suddenly I was sick. And basically I had no rights to tell you to come back to see me unless I signed a piece of paper. So planning ahead, no matter what I think is truly important. Uh, and if you do have one of those situations where there's an earning gap between couples, let's say like ours, where Matt has a steady, beautiful job. And I as an actor, when I work, I make great money. When I don't, I don't. So everyone's situation is going to be different. And Matt can analyze that for you and not just if you're not part of the community. If you're an ally, he can. It's everybody. Everyone is welcome under this tent of what Matt McClure can help you with. So I've really enjoyed seeing the changes. You've helped people go through and make better decisions for their planning and to reap the benefits. And that's what's been wonderful to see. It's very fulfilling to be able to do that. And that's the reason that I do what I do.

Speaker 1:
So yeah, thank thank you for that, I appreciate it. All right. So let's shift gears a little bit. So what are some everyday habits that quietly hurt people financially? Uh, so there are some bad habits here that can really add up and snowball in a bad way over time. Number one that we want to run through here is not having a sort of save first or pay yourself first mindset. Talked about that quite a bit on the last show. And so if you missed that one, go back and listen to it. It's the or watch it on YouTube. It's the one immediately preceding this particular episode, but not saving first. I mean, you know, like 40% of Americans don't have enough money to cover a $400 emergency right now. And so that is from some statistical studies. I've actually seen that in a couple of different places, that 40% of Americans or thereabout don't have enough to cover a small emergency like that. So one of the things that I always say, automate your savings, build up that emergency, fund your retirement contributions as well, put it all on autopilot. And then that way you don't have to go through life worrying about it all, all the time. You know, it's just taken care of. Um, and use tools like maybe even a compound interest calculator. I talk about compound interest quite a bit on the show because it's such a powerful tool and you can kind of see if you just go online, just Google compound interest calculator, and it can show you how big of a difference time really can make for you in your retirement planning or just in your financial life in general.

Speaker 1:
Like the more time money has to earn interest, it becomes interest on top of interest, on top of interest. And so that can really be a snowball in the absolute best way there. Yeah. And let's talk about what some people think is a dirty word. Are you ready for it? Yes. I'm scared now. But what budgeting. Oh yes. Having a budget. People think that it's like a four letter word with more than four letters in it. Um, yes, it can be. What about budgeting? Why do people feel like they have to avoid that and what can they do? Yeah. It's, you know, it's one of those things that people do tend to, unless it's something that's just sort of ingrained in you, um, or, you know, something that you've just been on top of all the time. It's not something that maybe comes naturally or seems fun or anything like that. So yeah, if you don't have a budget or if you don't have a realistic budget, that's a big mistake. That's a bad habit that you can can break and need to break. Really. Um, only about four out of ten people in this country follow a budget. There thereabouts.

Speaker 1:
And without a plan, money can just go out the door as soon as it comes in and you don't know where it goes. And then down the road you're like, oh, I've got this emergency. How am I going to pay for it? Truth is, you can't because you don't have the funds there, because you haven't been budgeting for that emergency fund or any of the things that we were talking about a minute ago. So you kind of have to think about it being like the CEO of your own household or the chief operations officer, even of your own household. Um, track your income, track your expenses, and review things at least once a year so that you can make sure you're still on top of it. And things haven't changed because, you know, life happens, right? And also as part of the LGBTQ plus community, budgeting can be super important if you don't have family, financial support, family financial help. Like, uh. Like we've talked about previously on the show, maybe you're supporting some chosen family, maybe you're caregiving for those folks, maybe you're navigating higher cost of living in an area that you've moved to because it's a more inclusive area. It's a more accepting area to live in. All of those things can be big, big factors when you are, um, you know, trying to create a budget, but it makes it even more important to create a budget. That being the case. Yeah.

Speaker 4:
That kind of leads me into this too about housing. Like if you move to a new place or whatever, that's more inclusive, but let's talk about debt and housing. So those are two big ticket items. So where do people tend to go wrong with those?

Speaker 1:
Yeah. Well, number one, as far as that part of the conversation goes, don't carry high interest credit card debt. That's a bad habit that can really, um, it can sneak up on you because, I mean, you know, you can pay well into the double digits as far as an interest rate and annual annualized interest rate goes. And so even if you've got like the average debt, and this was from a study that was done a couple of years ago, $4,700 was the average credit card debt for people 65 and older. I'm sure that's probably gone up because we've been breaking records of credit card debt ever since. Um, but, you know, the high interest means that can snowball as well and not in a good way. So that's a long term drag on your savings, a long term drag on your retirement. And I mean drag in not a good way in this particular context as well. A lot of times drag is great.

Speaker 4:
That'll work.

Speaker 1:
Exactly. Drag can be great and fun and all those things, but not if it's a drag on your retirement. Right? So pay off those balances monthly whenever possible, just so you're not in that sort of just revolving high interest credit card debt situation. And then, um, you know, reduce that debt, pay it down if you can't pay it off every month. If you've got maybe some higher interest loans or some larger balances on high interest credit cards, pay those off as soon as you possibly can. And that again, is going to be different based on you and your situation. Um, and then yeah, overspending on housing. Oh, boy. Uh, can be a big thing. That's your largest expense usually in life, but especially in retirement if you're paying a mortgage or whatever. And overspending can limit your flexibility later on. So if you're, if you're spending a huge house that maybe you don't need, then maybe rethink that, maybe try and downsize. Okay. And maybe, um, wait until interest rates come down some more and then downsize. And then that way you're saving even more or saving on the interest and maybe you're saving on the principal as well. Um, but don't you know, I just was talking to another advisor not long ago, and he was talking about how this couple had come in and they're like, oh yeah, we want to we've, we've paid off our house.

Speaker 1:
Now we want to upsize. We want to buy the house of our dreams. And he's like, what have you been living in for the past 30 years? You know, like a house you hated. Like what? What are you doing? Because they had all this financial freedom and they wanted to give it up because they wanted a bigger house. And you know what? If you want a bigger house, that's great, you know, and you can afford it great, grand and wonderful. But you got to make sure that you can actually afford it and that you're not overspending and overextending yourself on housing. So consider things like downsizing or relocating and make sure that your house, your housing situation really aligns with your budget and aligns with your retirement goals as well. And then, you know, the housing decisions for LGBTQ plus folks like we were just talking about may include moving to a more inclusive community. Like we were saying, planning for aging without children. So you don't want to be somewhere where you're completely isolated, right? Maybe you want to be closer to chosen family, closer to actual family, that kind of thing. And that makes the intentional planning part even more important for people in our community.

Speaker 4:
Yeah, 100%. And I mean, that's the thing too, like, it's we've met so many people through the years since you've been doing what you do. And again, it's, there's people who don't have the love and connection that we were blessed with when it comes to family and friends. And it's, it's sad to see that, but because they've built in a plan, specifically financially, they're going to be okay. And that's the thing. You don't have to be overwhelmed. You don't have to be scared. You just have to plan. That's literally all you have to do. And Matt is a great person to plan with.

Speaker 1:
Be prepared, not scared. And you can start getting prepared and take pride in retirement.com. The consultation is free. Yes.

Speaker 4:
All right Matt. So if you had to pick. Big mistake. Huge. The biggest mistake people make. What is it.

Speaker 1:
The biggest mistake is not planning at all. Not having a plan period for what you want to achieve, for what your retirement goals are, any of that stuff. So that's a really bad habit that can derail your retirement. No formal retirement plan. And you may look at me and say, Matt, oh, well, I've got, you know, I've got a job, so I've got a 401 K and I'm contributing to that. Great. That's not a plan. That's an account. So that's one piece of a possible plan. But we've got to make that you know, got to look at that as one piece of the puzzle. Like I had just said there. And so, you know, if you don't have a plan, a real plan, then you don't have a clear income strategy. Maybe you don't have a tax planning strategy going forward. Maybe you don't have long term care plan. You haven't taken that into account. You juxtapose that with having an actual plan in writing something that's tangible. You can look at it, you can feel it. You can say, okay, here's my here's my plan. Boy, that gives you a lot of peace of mind, but it also gives you clarity. It gives you confidence. It gives you control. And what do we do with control? We control the things that we can. Right? So that is huge. Yeah. And as a.

Speaker 4:
Virgo, I love clarity, confidence and control. Yeah. And I love a plan. And I think that having a plan is great. And you know, who can help you with a plan? As I've already said, Matt McClure, that's we're coming working with you. That's like working with someone like you. That's, that's where this comes in.

Speaker 1:
It really is. And, um, you know, it's where everything kind of comes together for folks, you know, income planning, social security optimization, um, investment strategies, making sure you're allocated properly based on not only your age and your goals and all that stuff, but all of those different things taken into account together. And also having a tax efficient plan, um, planning, especially needed for people who are maybe in non-traditional families, people who have estate planning gaps that they need to fill health care, decision making that needs to be had. So all of that stuff, you need a plan that reflects you. It reflects your life. It reflects your goals. You don't need some generic template that somebody's going to fill out, or feeling like somebody's just gone to the big box store and gotten a generic retirement plan off the shelf, and here you go. You need something that's tailored specifically for you.

Speaker 4:
Yeah. And you're able to do that, which is great. And I've seen firsthand people that we've met that had a financial advisor in the past and, um, just did not really understand the ins and outs of that person's life and what that could be catered to for the difference of how everyone's situation is different. So that was wonderful to see you actually help those people. So for today, what is the bottom line for listeners? What do you want them to know?

Speaker 1:
Well, I would like to, you know, if you don't hear anything else that we have been saying or that we will say in these next couple of minutes here, this there are some mistakes out there and some bad habits that you need to break or that you need to avoid. And avoiding those mistakes is just as important as making good decisions. You know, in order to make those good decisions, you've probably got to avoid the mistakes along the way. And again, I think I said this on the last episode, I'll say it again. Now, it doesn't have to be something earth shattering, huge changes that you make to improve your chances at retirement that you can take pride in, but you can just make some small changes, build those good habits that are, that are maybe not the biggest thing to save a little bit more, you know, do that or actually start saving before you start spending doing some things that are just little because, you know, especially if you've got time on your side, you've got time for compound interest to work its magic and it can do that for you. And that can have a huge impact tomorrow.

Speaker 1:
So big, big impact tomorrow for just some small habits that you build today. And it's never too early, especially. And it's never too late, I say to course correct to make up for that lost time if you feel like you're behind. So those are the kind of the three big things that I want, um, to, to get across. And I also want to say that I can provide you with a free, yes, 100% complimentary consultation. I walk through your goals. I will walk through your current financial picture, take a deep dive into that, build a strategy that's tailored specifically for you. No matter who you are, where you come from, who you love, how you identify, how much money you have, any of the things. And then I'll help you avoid those costly mistakes. So give me a call, 85524692178552469211. You can also go online. Take pride in retirement.com is the website. Well, I guess that's going to do it. I'm looking at the clock here and it looks like it's it's time for us to to be done. There are no more words to be said. So thank you.

Speaker 4:
Listen, this was a great episode. I'll say that to you, Matt. Um, lots of really good information. We discussed Drag Race randomly in it. I got to quote one of my favorite movies, which was oddly as a child, Pretty woman, big mistake. Huge. Anyway. Plan ahead. Plan ahead. Everybody contact Matt. He'll help you.

Speaker 1:
Out. Yes. Be prepared. Not scared. Right. And, uh, reach out to me if you have any questions or if you want to start that plan that can get you on the right track to a retirement you can take pride in. Thank you so much for being a part of the show, as always. And until next time, take pride in yourselves and take care of each other. We'll see you then.

Speaker 4:
Thanks for listening. To Take Pride in Retirement, members of the LGBTQ plus community deserve to work with a fiduciary financial advisor who puts their needs first. To schedule a free, no obligation consultation with Matt McClure and the team at Active Wealth Management, call (855) 246-9211 or go online to take pride in retirement.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 and sold 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. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company, not guaranteed by any bank or the FDIC.

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