‘Tariffied’ of Losing More Money? Here’s How to Stay Calm and Confident

Episode 50: Audio automatically transcribed by Sonix

Episode 50: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
When planning for retirement. Trust is everything, and that's just one way. Nationwide's peak ten fixed index annuity stands out with a nationwide peak. Ten. You will benefit from protection for your principal, shielding your initial investment from market downturns. Growth opportunities linked to market performance. Without the risk of direct market exposure and a guaranteed income stream you can never outlive. Nationwide's reputation for reliability means you can plan for tomorrow and have confidence today. Call us now at (855) 246-9211 or go to take pride in retirement to connect with an advisor and learn how peak ten can help secure your financial future. Investment advisory services offered through Brookstone Capital Management LLC, BCM, a registered investment advisor, guarantees and protections referenced are subject to the claims paying ability of Nationwide Life and Annuity Insurance Company. Nationwide peak ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its other entities are associated or affiliated with Active Wealth Management. 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. 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.

Speaker1:
So now let's start the show. Here's Matt McClure. Hello there, and welcome to another edition of Take Pride in Retirement. I'm Matt McClure, your host, your advisor, your friend, your pal and your confidant. Thanks so much for joining me. I say it every time, and I absolutely mean it. That's why I say it so much. You know, um, I'm a licensed financial advisor and fiduciary. If you are just joining the show for the very first time, I am here to help LGBTQ. Plus folks like you and allies, whoever you are and doesn't, doesn't matter to me who you are because I always say, no matter who you are, where you come from, who you love, how you identify, or how much money you have for that matter, you deserve a retirement you can take pride in. That is what the show is all about. And I am here to help you, um, take control of your financial future. You know, I mean, retirement planning can often feel overwhelming, but, you know, you don't have to figure it all out on your own. You don't have to go it alone. And on this show, I break it down step by step so you can retire with confidence, security, and with pride Side as well. A big, big hello to our listeners listening wherever you are.

Speaker1:
Of course, I'm based here in Atlanta, Georgia. So I have, um, you know, a lot of listeners I know here in the local metro Atlanta area. So hello to you. But wherever you are across the country or across the world, I mean, heck, you could be living in like, timbuk2 and listening right now, um, because, you know, technology. So, um, wherever you are, I am so glad that you're spending a little bit of time with me today. Really do appreciate it. And a little bit of a reminder here. You can schedule your 100% complimentary consultation today. If you're planning for yourself, your family, your business, whomever, I'm here to help you with no pressure, no obligation. Just, uh, visit the website. It's take pride in retirement. Com that is, take pride in retirement. Com you can also call 85524692178552469211. Uh that is the number once again um a lot of great stuff to get to here on the show today. Look. Oh, also, I wanted to tell you if you've missed any past episodes, check those out. They're also on the website or wherever you subscribe to podcasts. You can also find me just search for Take Pride in Retirement several places. One of them is YouTube. Got full episodes now going up there. I've got highlights from the show. I've got shorts, I've got all the things. Help the YouTube channel grow. I would so appreciate that. So so so so much. Just subscribe. Like the videos as they come out really helps the algorithm.

Speaker1:
I want to grow this channel. I want to grow this this movement for LGBTQ plus retirement planning. I feel like now is such a great time with all the turmoil and everything that's happening. So yeah, I mean, just just do that if you will, please. I would really, really appreciate it. Just subscribe on YouTube. Also go to um to Instagram, follow along there and just search for Take Pride in Retirement. Same thing on Facebook. Search along uh, and uh find us there as well. Uh, on take Pride in retirement on Facebook and a lot of great content waiting for you there, and a lot of great content here on the show today, if I do say so myself. Today's episode, we're entitling it. Are you terrified of losing more money? Terrified? Yeah. Okay. Yeah. I have a little fun with the name there, but the topic, it's serious. Um, you know, market volatility, inflation, new tariffs. Is it like this perfect storm out there? Um, it could be, especially if you're approaching retirement. It can feel really scary. But the good news is you can navigate it with a solid plan. And so I'm going to be talking about today. First up some tax day reminders and some smart strategies as well for your future taxes. Here's the thing. You the tax deadline right around the corner. So if you haven't filed just yet the clock. She is a ticking. So, um, I want you to file I want you to go now and get that done.

Speaker1:
Because otherwise, if you miss the deadline, you could be in a bad way. I'm going to actually talk to Mark Steber. I had him on the show a few months back, a couple of months back, probably to talk about Tax Day, kind of what was what's different this year, um, in 2020 for taxes, you know, for 2025 you file for last year right. So 2024 is taxes. So I talked to him about that earlier. But now last minute tax tips. Going to have a few of those with Mark Steber coming up here in just a few minutes. We'll also have some smart strategies for future taxes as I said. Also what's behind the recent tariff tantrum on Wall Street? We'll do the right and wrong ways to respond to market fear and go through the top five retirement risks and retirement mistakes that you could make, plus how to avoid those. And of course, putting all of it into perspective for the LGBTQ plus community because, you know, the financial landscape doesn't look the same for all of us. There are so many different colors in the rainbow. And so, you know, that's why we talk about all of that and try to put things in perspective. Um, From an LGBTQ+ standpoint, I think that you're going to get a lot out of the show, so let's just kick it off right now with our inspiration for our conversations, shall we? We'll do that with our quote of the week.

Speaker2:
And now for some financial wisdom. It's time for the quote of the week.

Speaker1:
The quote of the week this time around comes from Mr. Warren Buffett, the Oracle of Omaha. And he is, um, you know, someone that I listen to when he speaks about investments because, um, you know, he's widely regarded as the most successful investor of our time and probably the most successful investor of any time, really, to be quite honest. So here is what Warren Buffett said this time around. He said, never test the depth of the river with both your feet. Never test the depth of the river with both your feet. Boy, classic Buffett, right? Don't dive in to risk without a strategy. It's especially relevant with what's going on in the markets right now, and what has been going on with all the tariff mess and all of that, and we'll get to that in a minute. But, you know, it's really important to keep that in mind. Don't just jump, plan and think before you jump and get good advice before you jump in with both feet into anything, because you know you want to make sure that you are making the right decision, and you're putting together a plan that's going to be okay no matter what happens. Because if you're testing the depth of the river and you just jump right in, it could be way over your head. You don't want to get in over your head, right? You could be. It could just be, you know, dipping your toes in the water and you find the bottom there, and the river is very shallow or whatever, and it's perfectly safe, but you might not get any benefit out of it.

Speaker1:
You know, like being able to swim in the river or something, for example, if you want to do that. So it could be too shallow, could be too deep. Go in with guidance and hopefully I can provide that guidance for you. I'm sure that I can if you just visit, take pride in retirement. Schedule a consultation there and I'll talk more about that process kind of throughout the show here. Um, but first we're going to get to the tax tips. This is this very timely here because it is tax time for LGBTQ plus retirees and everyone in the US who is a taxpayer. It's April 15th. That's coming Tuesday. And so here is what you need to know if you have a complex financial life. So you recently married or own a business. You're transitioning from work to retirement or retirement back to work. Um, as some people find themselves doing, talk with the qualified tax pro, get that done and taken care of. Now here is what I'm going to say as well. Listen to this guy who I'm speaking to uh, here in just a second, because he knows a lot and is a great, great guy to talk to about all things taxes. I'm going to say what I have said and I will leave the rest to him. Um, it is Mark Steber with Jackson Hewitt Tax Service. Mark, how are you.

Speaker3:
Good to be here. Very exciting time of year for all Americans, especially here at the endgame.

Speaker1:
That's right, that's right. I mean, we are coming right down to the wire here. And, um, you know, if if there are any procrastinators among our listeners, what are some tips that you have for them to kind of, you know, get things in and, and all completed before that deadline that's coming right up here.

Speaker3:
Yeah. A couple of three things to keep in mind. First, you're in good company. Tens of millions of Americans do always wait to the last minute. Not necessarily a financially best practice, but it is what it is. The second thing I would say is, uh, the deadline is a real deadline. And by deadline, I mean there are teeth penalties and other consequences for failing to observe it. You know, some true, some, uh, bit misunderstood out in the tax system. So, uh, do pay attention to the deadline and don't go past it. And thirdly, don't panic. Even in these final days, there's plenty of help. There's plenty of resources. If, in fact, you want to just throw this over the fence to someone who does love doing it, there's lots of people with extra hours, extra staffing, but you do need to take action. Find those documents, get to your favourite trusted, branded, uh, local tax professionals and simply get your taxes filed. It's the smart thing to do at this time of year.

Speaker1:
Yeah. Absolutely. Right. And you know, you mentioned there the consequences of not filing on time. What could those possibly entail? I know you said that there were some that maybe kind of misunderstood there. So, um, what are some, you know, maybe that might light a fire under folks.

Speaker3:
Well, I'll start off with some of the not light a fire. The first thing is the IRS is not going to come kick your door in or bring you to jail. You know, that's for probably more serious consequences. That being said, uh, the deadline is real and the penalties are real. I see them every summer, you know, after people miss the missed the deadline. For whatever reason, there's a failure to file penalty, which is exactly as it says, a 25% of any taxes that you owe for failing to file by the deadline. You got to do something. File a tax return or file an extension. There's a failure to pay penalty separate from the failure to file. It's another separate 25% penalty on any balance that you might owe plus interest, as is on the failure to file penalty at 25% plus interest. And then if you owed money throughout the year because you had side hustle or retirement income that didn't have withholding or you had crypto gains, you might have an underpayment penalty separate from the other two. And it's largely all triggered by missing that deadline. So you don't want to run past that and have penalties plus interest, multiple penalties plus a professional fee to clean it up that in some cases gets bigger than the tax itself. So don't miss the deadline. It's just a self-inflicted financial mistake that people think, well, it won't apply to me. I'm exempt. I'm a senior, I don't. Oh, you know, it's only federal, not the state. A lot of misunderstandings in the penalty arena. The first of all, which is. Oh, that probably won't happen until it does so. So get some help if you're going to get near the deadline.

Speaker1:
Exactly. The the things that can never happen. Um, don't happen until they do happen. So. Yeah, don't bring it upon yourself. Uh, by missing the deadline. You can file an extension though. But there are also some kind of, I guess, um, you know, misunderstandings about that. You know, you still do have to pay by the deadline, right?

Speaker3:
That's the number one misunderstanding. But there are others. But your point is exactly correct. You know, if you file an extension and it's properly named an automatic extension of time to file, it's a six month extension. You file the form 4868 or you mail it in or file it electronically or get a pro to help you with it. But you file that and you immediately stop, or at least put it to the back door. The failure to file penalty. So for people who think I'm overwhelmed, I've had difficulty. This year. I made some money, but I don't have any cash to pay. I'll just kick it all down the road and handle it this summer. At least file the extension, if not the tax return, and avoid that failure to file penalty. You may still get the failure to pay or the underpayment penalty plus interest, but at least stop that one, which is the biggest of the three because it's 5% per month, whereas the others are a half a percent a month. So get on the record. That's kind of the goal of the IRS and file something to at least get started. And what you'll typically find is once you really your stuff and meet with the pro, and you may think, I'm going to need to file an extension with one phone call or access to an online site. You've got all your documents, and you end up filing the taxes and not having to do them twice, once to calculate your extension amounts and then once to do it later. You're only doing your taxes one time, which is another one of those best practices.

Speaker1:
Yeah. Right. And then, um, you know, one quick question here before we have to run, Mark. And that is, you know, we've got a lot of listeners in the Florida area, especially that, um, Tampa Bay kind of area, west coast of Florida, up into the Panhandle, and then also in the Carolinas, uh, amongst our, uh, different shows and stations. And so, um, what can those folks know if they've been affected by one of the natural disasters say, that came through? Um, what can they know about, you know, how their tax return may be a bit different because of that this year?

Speaker3:
Yeah, I'm actually from Sarasota, right down there in south of your Tampa area. And my family or my kids all live in, uh, in, uh, Charlotte Carolinas area. So familiar with both, uh, areas and all of the disaster issues that go along with those. Uh, I'll start off by saying the good news is they've seen a lot of the disaster implications. Uh, talk about an extension of time to file your taxes. And that's good. You know, that's certainly something that can be needed, uh, if you've been in a federally declared disaster area. But I always tell people if you've been adversely impacted. And by that, I mean economically harmed, you know, either after insurance or with no insurance. But you suffered economic loss. Los know this the extension of time to file. That may seem like a good thing, but that doesn't usually work in your best interest. It's so much later than typically most of these disasters. But more importantly than that time extension, which is good, are the tax deductibility elements that are available as it relates to a loss on a disaster. So if you've actually suffered and you're in a federally declared disaster, which is just about all of Florida and all of North Carolina, among other areas, you have a lot more options and a lot more tools in your tax toolbox, the least of which is a tax deduction for an economic loss and arranges to the ability to carry the loss, even backwards in prior years and claim a loss and recover past taxes.

Speaker3:
So I'll simply summarize it by saying, if you've been negatively, adversely impacted and you're in any state with a federally declared disaster county or zip code, talk to a tax professional. Don't just look at that extension of time as the end all be all benefit. There's a lot more packed in there in the tax code. And it's your money and it's your tax code. Take advantage of those benefits in the code. You probably can use it economically, and certainly for peace of mind to get you back where you need to be. And it's just in about every state this year we've seen some sort of disaster, some sort of a federal declaration. And if you've had that, don't think the IRS is just going to send you more money. You need to take some action. You need to calculate the losses. You need to take them to your most advantaged position and get that money to help you get jump started. I see it every year, this year or tax year 2024. Probably more than most.

Speaker1:
Yeah, absolutely right. There's been a lot that has gone on over the previous 12 months here. Well Mark Steber is the chief tax officer with Jackson Hewitt. Thank you so much Mark once again for joining me. Really do appreciate your time sir.

Speaker3:
Thank you Matt. Have a great day and start thinking about 2025. We're already a third of the way through that, if not a quarter. So time for tax planning. But go get that 2024 money. Time is of the essence.

Speaker1:
Yep. One's just about over. The next one begins. All right. Thanks so much.

Speaker3:
Thank you Matt.

Speaker1:
Great great stuff there. And my thanks once again to Mark for joining me here on the show this week. And yeah, the LGBTQ plus community often faces unique filing and planning situations, especially when navigating retirement as a couple or solo. As I said earlier, there's so many different colors in the rainbow. So many different crayons in the crayon box, right? So let's help you get it right. You know, you want to make sure that you are set up in the way that is going to be best for you. So let me help you with tax planning for the future. I mentioned that earlier as I as I sort of teed it up here, that there are two types of tax free investments that are truly tax free, and those are Roth accounts like a Roth IRA or life insurance. Now, life insurance is something that you may not know you can actually use for retirement planning. Yeah, a lot of them have living benefit riders, right? So you can think of things like long term care or things like that. Or sometimes you can also use kind of an advanced form of planning where you build up a cash value in a particular type of life insurance account, then you're able to make loans against that. In retirement, those are loans that you never intend to pay back and you'll never have to pay back. They'll just be paid off with the death benefit after you are gone.

Speaker1:
Uh, but that is another tax free stream of income that you can get in retirement. Talk to me about that if you would like. That can be part of our initial conversation. If you would like for it to be you go to take pride in retirement. Com you can schedule that consultation. It's right up there on the upper right hand part of the page. Go to take Pride in Retirement. Com click there where it says schedule a consultation. I'll be glad to uh talk to you and to, you know, take care of you as best I can. Uh, take pride in retirement. Com the first meeting is free of any cost or any obligation. I'd be glad to take care of you. Do a deep dive of your particular financial situation. Something that I can't do here on the show. Right? I can't make this something that is specific to you. Right. Because I don't know you. I mean, maybe I do know you. If you're, you know, a friend or family member or acquaintance or somebody listening to the show, but otherwise, I don't know yet. I don't know your financial situation. So I take a deep dive into it and then come up with a plan. Right? And so that initial conversation is free of any cost or any obligation. Once again, it's take pride in retirement. Com you can email me the email address is Matt at take pride in retirement.

Speaker1:
Com or you can give me a call at 85524692 11 (855) 246-9211. Once again is that number. All right. So let's continue on here with some more of the show. And we got a lot to talk about with tariffs right. So yeah. Um the subject of the week and of the month and of the year so far really has from a money standpoint anyway, has been tariffs. Um, now I'm recording the show on Thursday this week. And so just that is kind of a general disclaimer here, because some of the numbers could change that. I'm going to mention between now and the time you're listening to the show. But last week, more than $6.6 trillion was wiped out of the US stock market. Now, not a not a misstatement. That's true. 6.6 trillion plus wiped off the US stock market last week after the tariffs were announced. Just broad tariffs on everybody, including an island full of penguins. Um, since January, the markets have shed about $11 trillion in value. And it's a tough time for everybody, especially people who are pre-retirees and retirees, those either, you know, in that what we call the retirement red zone, right. The people getting ready to retire. So about, you know, 5 to 10 years before retirement or those early on in retirement. You know, about 5 to 10 years into your retirement and you know, you can't handle what we call sequence of returns risk, which sounds kind of wonky.

Speaker1:
And and, you know, I don't know, dorky in a way, but it's basically just, you know, you are um, your returns are not returning. Essentially, you're facing losses at the time when you need to be, uh, also making withdrawals from your retirement accounts. And so if that is the case, you're facing that double whammy, the withdrawals and the losses all at the same time and has this compounding effect, and you could run out of money and you could do it pretty darn fast if that is the case for you. So it's important that you make sure that you have protection in your retirement plan. A lot more on that as we'll continue here. Um, LGBTQ plus retirees really do face specific challenges in this scenario because historically, you know, LGBTQ plus folks may not have inherited wealth from their families. Um, you know, especially given certain family dynamics that I know are true for a lot of the community. Um, no family safety net. A lot of the time to fall back on. I am very fortunate in that I do have family that loves and adores me and cares for me and all that, but I know it's not the same for everybody. Trust me, I know that. And the thing is, you've got to have a plan in place to account for the what ifs, the, you know, worst case scenario and the best case scenario.

Speaker1:
Expect the best. Prepare for the worst. You've heard that statement before, and it's very true when planning for retirement. So it's a tough time here. The thing though, that I want to emphasize is that this is not the same as 2008. You know, we've got 2008 as sort of the most recent or one of the most, I'm going to say the most recent, but one of the most recent examples of the, you know, stock markets just really crashing and burning. And this is not that, at least not yet. But it's not that as of right now. Um, we have the Covid, um, crash in 2020. And then in 2022, we had, um, losses in the markets due to the fed raising interest rates and all of that, um, to try to tamp down inflation. But Brookstone Capital Management's um, CIO, the chief investment officer, Mark Diorio, says that the drop is being driven by policy. It's being driven by the tariffs and it's being driven by uncertainty and not by, as we felt in 2008. Those deep cracks in the foundation of the financial system. So that's a big difference here. Um, you know, if you're still ten plus years away from retirement, this may be a chance to buy low. If you're five years or less from retirement, review your risk. Consider some volatility buffered strategies. Personal pensions, guaranteed lifetime income, those types of things that I can walk you through in in our initial meeting and just explain those to you and how they work.

Speaker1:
So the thing is, I want you to keep in mind don't just guess, don't just, you know, go into the future blind and, you know, with with cover over your eyes, wearing a blindfold or however you want to think about it. I can help you figure it out. I can help you figure out how to navigate no matter what happens. And, you know. Yeah, it's a it's a difficult time right now. But the one thing and I said this last week and I'm going to repeat it because it's so important. Do not panic. Don't panic. Sell. Because if. You panic sell, you lock in your losses. And when you lock in your losses and miss out on the gains and the bounce back, that inevitably happens. We don't know when it's going to happen, but I can say with almost 100% certainty that it will, because it has so often in the in the past, every time there's been a dip in the market, it has come back eventually. And so, you know, if if past is prologue here, we can say that that's going to happen in the future. Now again, my crystal ball is broken. I don't know when it's going to happen, but I'm pretty darn sure it will. So don't panic.

Speaker1:
Sell when the market is in a big dip like this. As I said, you lock in those losses and you miss out on big gains in the future. Then you can take and explore, maybe putting money in some safety, um, taking it and maybe exploring things like fixed indexed annuities, for example, that protect your principal but give you the possibility of growth. Tied to a market index is not directly invested in the market, but the performance of it is tied to a market index. So then you get kind of that market like growth, but you don't have the risk of being invested directly in the market where every penny you could lose. That's not that way. With the fixed indexed annuity. We can talk about those as well. Those are usually, you know, low fee or no fee vehicles. Also the ones that I tend to work with. So we can talk about that as well. A lot of different possibilities, a lot of different combinations. And the thing that I always emphasize is it always depends on you. It depends on your individual situation. The thing that I mentioned there in fixed indexed annuity, um, yeah, I tend to like them quite a bit because they fit into a lot of people's scenarios, but not into everybody's right. There's not a one size fits all solution, and anybody who tries to sell you a one size fits all solution, I would, uh, be a little bit suspicious because retirement's not one size fits all.

Speaker1:
There are, as I said earlier, many colors in the rainbow. There are, um, you know, many different sizes, shapes and and all of that. Uh, just the widest variety of people. And everybody's retirement is going to look different. And everybody's financial situation now is going to look different. So if you are in a situation where you are unsure about your financial situation, you're unsure about your future, give me a call 855246 9211. That's 855246 9211. You can also go online to the website is Take Pride in Retirement. Com that is take pride in retirement. Com and you can schedule a free consultation there. Um I'd really appreciate it if you did that. And I would love, love, love to help you uh, kind of navigate all of the uncertainty that's out there right now. So how are people reacting to what's been happening? You know, there was, um, this article in Yahoo Finance that talked about, you know, kind of how people are reacting. And I actually also saw a similar things a couple of places. But, um, you know, this one particular source said that a lot of folks could be, you know, doing things like hoarding cash or delaying big purchases. I was just talking to, um, a good friend of mine who is a financial advisor, actually, um, in a different state for me, but he was saying that a lot of their clients are talking about right now thinking about maybe, oh, I, I was going to buy this car, but no, I'm going to hold off and see what happens with the tariffs, see what happens in the market, see if my investments come back.

Speaker1:
There's a lot of uncertainty right now. So I'm going to put off that big ticket purchase. And that makes sense. Um there is a smart way though to approach all of this. You know, if you were planning to buy a car or another big ticket item that might be hit with new tariffs you could exploit if it makes sense for you. Now, this is not universal. This is not for everybody. It could make sense to move the timeline up because, you know, if you buy now the cars that are and I don't not saying rush out and buy it today. But if you buy the cars now they're on the lot before the tariffs kick in. And there are you know those import taxes which is what a tariff is. It's a tax on imports that the importer pays. And those costs get passed down to us inevitably. And so as a consumer, if you want to think a little bit smarter about it, you can go and see what deals might be out there right now before those import taxes are placed on those vehicles that are going to then come in from overseas, or the parts that are going to come in from overseas, even on American made or American assembled vehicles.

Speaker1:
Right. And so, you know, some people are adjusting their portfolio as well. As we talk about how people are reacting here, some people are adjusting their portfolios away from just being invested in mostly stocks and and moving into more balanced holdings, things like annuities, international funds as well. You notice I didn't mention the bond market there because we just had, um, a big dip in the bond market just the other day. And that's sort of what led to this 90 day pause in the, um, tariffs taking effect, reportedly. So that is, you know, something to I think, approach with kid gloves again, could be a possibility for some, uh, folks out there. And that's the thing is, I, as a fiduciary, I am am bound to take your best interests into account to make sure that I am doing what's best for you, not what's best for me. That's the bottom line there. And, you know, you may have heard about sort of rigid kind of rules over the years, right? Like the 4% rule, which says that if you borrow or if you borrow, if you withdraw 4% of your investments each year in retirement, that's enough to get you through retirement, generally speaking, you know, for, um, percent times 25 years is 100, right? So that can, even without any growth, get you through 25 years of retirement.

Speaker1:
But if there's growth that's also happening inside the remaining investments, then that can also get you, you know, a buffer as well and go on out further and further. So that's kind of the basic idea behind the 4% rule. And you may have heard me talk about it on the show before. It's been a been a while, but um, that is kind of what it looked like. I sort of looked like to look at it as a guideline and not a hard and fast rule. So like that 4% rule may not be right during downturns. You may want to think about if that's something that you you like to sort of follow as a guideline, maybe make that a 3% rule, because as you are making withdrawals and as the losses are happening in the markets, the value of your investment is going down at the same time you're making those withdrawals, as I said earlier, sequence of returns risk, right. So if you have the ability to be flexible like that, maybe withdraw less, that can preserve your nest egg. And that's again why it's so important to have a retirement income plan. It's so much more about income than it is about one big nest egg number in retirement. Some people right now even maybe delaying retirement, they're picking up part time work just to add a little breathing room.

Speaker1:
And look, there's no shame in in doing that if that is something that you have to do. Absolutely. Um. Do it. You want to be in a situation though, where you in the future plan for, um, you know, if I want to go back to work, I can not. If I have to go back to work, than I have to go back to work, right? And so right now, you might not be in that situation, but let me help you get to that point. Let me help you get to a place where you have a plan that you feel confident in, and that you feel like you can actually make it. You know, you can make it through retirement with guaranteed income for the rest of your life. And that really is, um, so, so important to give you peace of mind. But then really, you know, in retirement to give you that income, because that's the thing that people are so concerned about is income going away before they do. You know, running out of money is the biggest fear of retirees, even more than death itself. We've seen that in survey after survey. So if you would like to explore any of the possibilities that I've been talking about, take pride in retirement. Com is the website that is take pride in retirement. Com um you can also go on the phone, pick it up, use it to actually make a call.

Speaker1:
And if you do that, you call 85524692 11 (855) 246-9211 is the number. Um, when's the last time you used the phone to actually call someone? I, um, I have to say, I don't often, uh, do that. I just don't because of the way that things work in life these days. Um, I'm a I'm a big texter, so, you know, it's just. That's just me. I'm sure you might be the same way as well. Um, most people are. So that's why I say use the phone as an actual phone. Um, yeah. The numbers still work. I might have to search for your your phone app on your phone, but. Yeah. Do it. Give me a call. 85524692 11. All right. So enough about tariffs and all of that I hope to help you navigate through these difficult times. Um, if that is what you would like for me to do, I would really, really love the opportunity to explore doing that with you. So enough about that part of everything for now. I want to go through as we start winding down the show here. Um, five retirement mistakes to avoid. So I got five mistakes here that, um, I've seen myself and some others have seen as well, that I want you to avoid at all costs. And number one is the biggie. It is failing to plan. That is the biggest retirement mistake.

Speaker1:
Um, you know, so many people think that, you know, retirement is so far off, it's so far away until it sneaks up on you. Right? Until it until it's not far off. And it can be a rude awakening if you get there and you don't have a plan. So a lack of planning can lead to poor saving, poor investing, and a lot of stress on down the line. Number two is mismanaging your retirement accounts. That means. And when I say mismanaging, I mean not contributing enough to get an employer match. If you are fortunate to have an employer match. Most do. So if you contribute, let's say, um, 3% of your income, of your salary to your 401 K or to, you know, whatever if for a freebie or you know, TSP, if you're a federal employee, let's say if you, um, you know, contribute 3% to your 401 K, but your employer will then will match up to 6%, they say, okay, if you if you contribute 6%, we'll also match that. We'll contribute 6% of your salary, um, each and every pay period. Uh, to your, your 401 k or your retirement account. But if you're only contributing that 3%. You're telling me you don't like free money and I don't know anybody who doesn't like free money? So come on, make sure that you're contributing enough to max out that employer match. If you make early withdrawals or if you take loans out against your 401 K or other retirement account.

Speaker1:
Now, look, I know life happens. This is why building an emergency fund is so important. And you really need to have one, 3 to 6 months of expenses in a savings account so you can get to it and get to it quickly. You got to have that liquidity right, so you can get to that money easily and not be in a situation where, oh gosh, I have to sell investments and then I have to do this, that or the other. No, just make sure that you have a certain amount of money that's liquid that stays there, that's in an emergency account, so that if anything happens, if you were to maybe, God forbid, lose a job, if you were to have your HVAC go out, if you need a new roof on the house or something like that, you need a new car, for example, like we were talking about a few minutes ago. You can do that without having to take out loans against your 401 K, or without having to dig into other investments or anything like that. You just need to avoid doing that and avoid, at the same time paying a big penalty for early withdrawals from a retirement account as well. Those are some moves that can really cost you big time if you mismanage those retirement accounts. Number three is no strategy for Social Security.

Speaker1:
Boy, if you don't have a strategy, especially as an LGBTQ+ person, um, you need to get with the program here. Um, and survivor benefits really do matter, especially for LGBTQ plus folks and LGBTQ. Lgbtq plus relationships. Planning when and how to take benefits can add years of financial security. And so, you know, if you're married, if you're not married, the advice there could be completely different. Um, you know, if you're married versus not if you're only partnered or if you're single. Um, and are not partnered or, you know, in some other sort of, um, family dynamic or relationship situation, whatever. Spousal benefits and survivor benefits are super important to talk about and plan for, and it's all based on your unique situation. Again, not one size fits all. So make sure that you have a plan for Social Security and I can do that for you. Take pride in retirement. That's the website. Number four big mistake in retirement is emotional investing. Boy, that's important right now. I talked about that kind of briefly at the top of the show. But I will say it again here because right now it is just a huge, huge thing to repeat over and over and over again. You know, earlier when I said, don't panic, sell. This is what I was talking about. I mean, just don't sell when things get rocky. Leave your emotions out of it.

Speaker1:
Historically, the best strategy is thinking of the long term, not the short term, and staying invested even when it may not be the most comfortable thing in the world for you to be doing. Even when you might be just sitting on pins and needles every day wondering what's going to happen in the markets. Stay invested. Because, as I said, the market inevitably almost 100% certainty here now almost will come back because it always has before. It always has in the past. So stay invested. As I said last week, keep calm and carry on. Right. Number five, big mistake for retirement is only focusing on the money. And yeah, the money is important obviously because, you know, this is a show about money and saving for retirement and investing for retirement. Giving that, getting that plan in place for you, but only focusing on the money is a big mistake because your lifestyle matters as well. You know what is retirement going to look like for you? Who will you be spending time with? Where will you live? What brings you joy in your retirement years? I'm Marie Kondo again. What sparks joy for you? Um, you know, the thing is, you need to have a plan that gets you where you want to be so that you can live the retirement that you want to live. Maybe that you've always kind of dreamed about. If you've always dreamed about traveling a lot, if you've dreamed about, you know, doing X, Y, or Z, if you've dreamed about staying home and sitting on the front porch and sipping a mint julep in retirement, that's great as well.

Speaker1:
Whatever your dreams are, I want to make them happen, and you need a plan to be able to do that. So yeah, the plan is about the money, but it's also about getting you to your goal. It's about getting you to a place where you want to be. And that place can be, you know, whatever you whatever you dream up. Really? Um, as as your ideal retirement. It's what we call kind of having a smart vision for your retirement. And I kind of think of it as a retirement GPS. The first thing you do when you get in the car is, you know, if you go into a place you've never been before, even to a place where you've been before a lot of the time. Um, but if you go into a place where you've never been, especially you put in the address your destination. Right. And so you got to know where you're going before you can get there. Same is true with retirement. Where are you going in retirement? What do you want it to look like? So don't just focus on the money. Focus on everything comprehensively so that you can give yourself the just such a great gift. And that is a retirement that you can take pride in.

Speaker1:
85524692 11 (855) 246-9211. Take pride in retirement. Com is the website. And look, if you don't have a plan for your retirement you are just not there as far as you know, being prepared for what should be your golden years, what should be, you know, such an enjoyable time in your life. And you know, I want to help put that plan in place for you so that you can do just that. Take pride in your retirement. And it doesn't have to be confusing. It definitely doesn't have to be lonely. I am someone who specializes in working with LGBTQ plus individuals, couples, and chosen families as well. Just, you know, give me a call 855246 9211 the website take pride in retirement. Com schedule that complimentary retirement and financial consultation. There is no obligation. It's just real advice tailored to you and your life. All right. Well that's just about going to do it here. Thank you so much for spending some time with me today on Take Pride in Retirement. I hope you've enjoyed it. If you you know, if you're watching on YouTube, you've probably noticed as well. I'm wearing my Take Pride in Retirement t shirt this week. Um, I just realized the other day I had not, um, done that on the show yet. And so I'm like, okay, I'm going to be like casual day on take Pride in retirement and I'm going to wear my Take Pride in Retirement t shirt.

Speaker1:
So yay. Um, and you know, that that's, uh, always a fun way to, to sort of represent and celebrate what I do. If you follow us on social media, you've probably seen the t shirts myself and a lot of my colleagues and friends wearing t shirts, um, and my husband as well, wearing, uh, the Take Pride Retirement t shirt. So you've gotten a sneak peek at it, but hey, here it is again. Um, but that reminds me to tell you, follow on social media. Just search on any of the social media channels there. Take pride in retirement. Follow along on YouTube, subscribe like all the videos as well. Turn on the alerts there. Click on the bell for alerts on YouTube also. And we've covered a lot today. You know tax tips market updates, common pitfalls. All of it centered around helping you retire with clarity, with confidence, and with pride. And if you're ready to take that next step, reach out. I would love to hear your story. I just I love meeting new people and learning about them and helping them in any way that I can. So I would love to hear your story and help you build a retirement that you are excited about. So until next time, take pride in yourselves and take care of each other. We'll see you then.

Speaker4:
Thanks for listening to Take Pride in Retirement. Members of the LGBTQ plus 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. Dot 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 and sold through individually licensed and appointed agents.

Speaker1:
Hey, it's Matt McClure of Active Wealth Management and host of Take Pride in Retirement. Are you worried about outliving your retirement savings? Nationwide's peak ten fixed indexed annuity is designed to help you feel secure and confident. With Nationwide Peak ten, you'll receive protection for your principal, keeping it safe from market downturns, growth opportunities tied to market indexes but not invested directly in the market. Guaranteed lifetime income and protection for your loved ones with spousal income options and a death benefit. Call me now 855246 9211 or go to take pride in retirement. Com to connect with me and learn how peak ten can help you retire with confidence. That's take pride in retirement.com.

Speaker4:
Investment advisory services offered through Brookstone Capital Management LLC. Bcm, a registered investment advisor. Guarantees and protections referenced are subject to the claims paying ability of Nationwide Life and annuity insurance company nationwide. Pectin is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its other entities are associated or affiliated with Active Wealth Management.

Speaker1:
Information provided is not intended as tax or legal advice and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional. 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. 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 Adv2 item four for additional information.

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