The Money Talk: Why It Matters and How to Have It

Episode 46: Audio automatically transcribed by Sonix

Episode 46: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
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.

Speaker2:
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.

Speaker1:
Hello and welcome once again 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 this time around. I am a licensed financial advisor and fiduciary here to help LGBTQ+ folks just like you take control of your financial future retirement planning. You know it can feel overwhelming, but you don't have to figure it out alone. That's the point of the show. We break it down step by step so that you can retire with confidence, security and pride. And I thank you so, so much for being a part of the show. Once again. It's just humbling that you are here. And of course, before we get started, take pride in retirement. Dot com is the place to go. Take pride in retirement.com that is the website. You can also call me 85524692118552469211. And coming up on today's show, we're going to talk a lot about why the money talk matters. Oh, yes. It's like, you know, when you were a kid, did you ever sit down and your mom or your dad or some your guardian grandparent, whoever sat you down and said, okay, we need to have the talk. Um, that was kind of a scary thing.

Speaker1:
Um, back then could have been an awkward conversation. Well, it could be an awkward conversation when you're talking about money as well, and why you sort of need to sit your family down and have a money talk with them. A lot of it has to do with estate planning, right? And what you want to happen after you're gone. That can be a difficult part of things because, you know, nobody likes to talk about that, right? I mean, it's just human nature. We don't like to talk about not being here. And so we sort of avoid those difficult conversations. So that is going to be one part of it. But the other part is, you know, your retirement plans, like what do you have saved up? Where is that money? Um, if something, God forbid, were to happen to you before you retire. How does somebody access that? Are your beneficiaries up to date? Like we'll talk about all of that kind of thing as the show goes along. And of course, you know, I mentioned the website Take Pride in retirement.com. I mentioned the phone number which is 85524692 11. I also wanted to mention that you can find me on YouTube. Just search for Take Pride in Retirement there.

Speaker1:
See you know, past episodes of the show, some long form interviews that I've done with some really great guests here recently, and I'm working on setting up a great one for our next episode as well, so you will have to stay tuned for that, because I think that one is going to be just a really great conversation. Um, if that all works out. So let's let's fingers crossed that that one does because I'm really excited about it. Um, and so yeah, facebook.com or Facebook. Yes, Facebook as well. But YouTube is what I was just talking about Facebook, Instagram threads, um, even, you know, LinkedIn, you can find me on there. And I post a lot of content from Take Pride in Retirement there as well. Uh, kind of, you know, on, on that professional, um, social networking kind of site. So, yeah, all the, all the places you can find me with take pride in retirement and just search for my name, search for the show's name, and you know you'll find me. Absolutely will. All right, so before we get into it, let's get some inspiration for our conversations. And we do that each and every time around with our quotes of the week.

Speaker3:
And now for some financial wisdom. It's time for the quote of the week.

Speaker1:
And this week's quote comes from someone who I don't always agree with when she talks about money things, but I agree with her, you know, quite, quite a bit of the time. Just just not always, of course. But she is a member of the LGBTQ plus community and a renowned financial advisor, author, TV host Suze Orman, Suze Orman said estate planning is an important and everlasting gift you give your family, and setting up a smooth inheritance isn't as hard as you might think. Yeah. Suze Orman, um, is absolutely right there. No matter who you are, where you come from, who you love, how you identify, or how much money you have, you deserve a retirement that you can take pride in. And you also need to get an estate plan in place, because estate planning is not just for the rich. You know the name estate planning makes it seem like, oh, I got to have millions and millions of dollars in all this property and the fancy cars and all of that to have a need for an estate plan. No. If you got a 401 K, if you got a house, if you've got, you know, whatever belongings, whatever. Um, maybe family heirlooms where you're talking about furniture, jewelry, um, any, anything like that that is inherited and you're going to want to pass down, you know, all of that. You need to plan in place so that all of that knows where it's got to go after you have gone, wherever you're going.

Speaker1:
Right. So it's it's got to be in writing and it's got to be clear, and it's got to be up to date. That's going to be a big part of our discussions today. And, you know, I mean, really discussion kind of is the word of the week. If this was Pee-Wee's Playhouse, the the alarms and sirens and bells would be going off and everybody going, ah, you know, because that was, that's like the word of the word of the day or whatever. But the, our word of the day is, is conversation or communication even, or, you know, just talk, for crying out loud. Um, because, you know, for many LGBTQ plus individuals and families, financial conversations can be even more challenging than the general public due to unique concerns, legal complexities, you know, chosen family dynamics. The historical lack of financial and estate planning resources tailored to our community. Avoiding the discussions though that's not going to do you any good. It's going to actually lead to misunderstandings, confusion, or even financial hardships down the road. And studies have shown that fewer than 30% of families have had meaningful conversations about end of life planning. First of all, many wait until a crisis strikes before addressing critical financial decisions. And that is just 100% backwards from what you actually need to do. You don't plan for a disaster after after the disaster has happened. You plan in advance for the disaster and hope it doesn't happen, right? You never hope for a disaster to happen, but you plan for it just in case it does.

Speaker1:
And then if it does, you know you are taken care of. So, you know, for LGBTQ plus retirees. Planning ahead really does make sure that your wishes are honored, whether it's, you know, regarding health care, inheritance, financial security, it makes sure that that is taken place, that or that is in effect. And make sure that your wishes are honored. And then sets up that financial security for the next generation. It sets that financial security up for your spouse or your partner, your family, whoever your your family or your your beneficiaries and your heirs might be. So it's so important, but then it is difficult, right? Because a lot of LGBTQ plus folks fear discrimination when discussing things like estate planning, long term care, retirement, those kind of things in traditional settings. That is one of the reasons I started this show. You know, it's finance can be kind of a bro culture. And I'm like, I want to I want to shake things up. I want to change that, and I want to provide this service and this, um, this outlet for the LGBTQ plus community. And that really is what the show is all about. That's sort of the genesis of the show there. Right? So some different considerations might be for privacy, different considerations might be pride or past financial struggles.

Speaker1:
Those things can make it hard to open up about money. But I'm here to tell you none of those things need to be a hindrance because we all go through that kind of thing. Um, it just gets amplified in certain ways for people who are in the LGBTQ plus community. And, and I would say, you know, find yourself hopefully it's me. Maybe it's somebody else, a trusted advisor to guide you along the way and help make these decisions easier. Right. And and at least if some of the decisions aren't necessarily easy, it clear the fog away and help make those, um, decisions at least a little a little clearer so that you can see your options and know what your options are. You know, a lot of people in the LGBTQ plus community to have nontraditional family structures. And that makes traditional inheritance and caregiving expectations different from those of either cisgender or heterosexual retirees. So that really is a key point here. If you're in a nontraditional family structure, if you don't, you know, if you're not part of that structure, that's the, you know, the mom and the dad and the house with the white picket fence, the two and a half kids and the cat and the dog, then you are going to need to plan even more with more urgency and get that in place, get something in writing so that you know how you're going to be taken care of In your later years and then, you know, after you are gone, who your belongings are going to go to.

Speaker1:
But, you know, having those conversations early and often, that really is key to protecting your retirement and ensuring that your family and or your chosen family understands your wishes. So you can start kind of easily here with some open ended questions. Sit down with your partner or your family or, you know, your trusted financial advisor. Like I was saying, ask these open ended questions. Say, what does an ideal retirement look like for us? What concerns do you have about the future? How do you want to be remembered? You know, do you want to be remembered as just oh, well, he was a nice guy or they were a nice person. She was. She was really, you know, great and, you know, cooked a cooked a mean lasagna or whatever, you know, like, do you want that to be your legacy or do you want to be remembered by your loved ones as someone who really planned and thought ahead for not only yourself, but for them and gave them just such a great gift in, you know, passing along the things that you earned worked so hard for your entire life, maybe make their life just a just a bit easier. And so that could be something that you could give them. And then of course, the big question here, no matter what subject we're talking about, in particular on the show, is what financial goals matter to us most.

Speaker1:
You can ask me those questions too. We can sit down and discuss those things and come to a come to a consensus here and start working on putting together a financial plan for you, tailored specifically for your needs. Just give me a call 85524692118552469211. You can visit. Take pride in retirement. Com to schedule a complimentary consultation as well. Now you know also when you're talking about having conversations like this, big conversations of any kind, but especially, you know, when it comes to money because that's that's the discussion today why these conversations are so difficult and what to do about it. One of the big decisions that you got to make here is choosing the right time and the right setting. Right. So, you know, nobody wakes up in the morning. Oh, I'm so excited to have a serious money talk with my family. This is going to be great. Um, but the when and the where that you, you know, plan to have these discussions, it really can make a big difference. And so some kind of best practices here that I wanted to talk about with this aspect of it. Number one, you know timing is really everything. Sure. At the holidays, for example, maybe everybody's together. Maybe you do have a big family. Maybe everybody comes together under one roof. But, you know, while you're eating the the turkey or the tofurkey or the mashed potatoes or whatever you're eating on Christmas, on Thanksgiving or on, you know, whatever big holiday you don't need to just all of a sudden break it to them that you want to have this big money talk, because that really that can throw you off when you're in a big holiday celebratory mood.

Speaker1:
Right. So also avoid high stress moments, don't you know, at a at a relative's funeral or something like that. Don't, um, bring it up. Then you got to plan a dedicated time, and then you also have to plan a dedicated place, and you want it to be somewhere that's neutral. It's a private setting, maybe somewhere in your home, maybe the dining table or something like that, maybe a quiet cafe or the office of a trusted financial advisor somewhere that's neutral, that's private. Some somewhere people are not going to overhear all of the the financial plans and things that you're making. Right. Because, you know, you don't want to be in some crowded restaurant and have, you know, 50 people around you hearing every plan that you're making. Not probably not the smartest. Number three is to keep it simple. Just focus on 1 or 2 key topics at a time. You don't want to overwhelm everybody, right? So maybe, um, break things down. You know, having several small and manageable conversations is better than having one huge, overwhelming talk. Maybe there are several different aspects that go into what you want to talk about financially with your chosen family, your family, your friends.

Speaker1:
But don't overwhelm them with all of that at once. Break those down into smaller talks so that it's easier to digest, right, and keep it simple. Also, you know, this is an important one too, two, especially for this audience of this particular show, is to use inclusive and affirming language. Make sure that no matter who is in that conversation, who is involved, that everyone feels supported, supportive and safe as well. Everyone needs to be included and in a positive way. And then fifth, in this part, you know, bring in a neutral third party if it makes sense for you. A financial advisor can help keep things structured and also judgment free, and can also maybe fill any gaps that you might have in your discussion, right? You might leave something out inadvertently, and that advisor can come in and talk about those things. And if you, of course, would like to have me be that advisor, schedule a consultation, take pride in retirement. Com is the website take pride in retirement.com right there on the upper right hand part of the web page you'll see. Schedule a consultation. Click that. It takes you directly to my calendar. And then you can see my real time availability. Set up a meeting with me via zoom. No matter where you are, if you happen to be in the metro Atlanta area, you can come into my office in Midtown Atlanta and I'd be glad to to meet you there.

Speaker1:
All right, so discussing your retirement plans is super important. And, you know, I guess a lot of this discussion that you might have with your family, you might say, well, you know, they really need to be involved in, say, estate planning conversations. Who's getting what and where is this going and where's that going and that sort of thing. And maybe like some, you know, some savings talk and all that. But why do they need to be involved in your retirement plan. Right. Well, I mean, the the big question here is does your family, whether biological or chosen, know what your retirement plans actually look like, because then at least if they know that, they can all kind of help you row the boat in the same direction, right? They can be supportive. They can know what goals you have and what to keep in mind when trying to plan things for their future as well. And so for, you know, LGBTQ plus retirees, planning like this is especially important and letting everybody in on the conversation is important to ensure that your partner or your spouse is financially protected, regardless of legal marital status. Your health care and caregiving preferences get honored, right? So you're not, you know, having some things done later in life that are, um, against your wishes, being cared for in a way that is against what you, you know, wanted to happen.

Speaker1:
And then you've got to make sure as well that your assets go where you want them to. Not a probate court, not, you know, just the state law or whatever, deciding where stuff gets divvied up. That can be a long and very, for lack of a better term, dirty process because nothing gets people's emotions, you know, more on edge than talking about money and inheritance, especially after a loved one has died. And so you don't want and I may have mentioned this before, but I had a couple of coworkers previously at a previous job, and within the same year, both of them had a relative pass away without a proper will, and their property went into probate and they had to. The court then had to divvy up things between the family members. And boy, that was not a fun experience for either of them, and I saw that from the outside. And I could, you know, on any conversations. And of course, I didn't like pry or anything, but the conversations that they were, they volunteered this information. Um, it was not fun. And it was a long, as I say, long drawn out process and not a fun one. So you want to avoid that. So you want to make sure that your will is up to date. You want to make sure that any trust documents are up to date. Make sure that your beneficiaries are up to date on anything that you might have, your life insurance, your, um, maybe an annuity or a 401 K or anything else where you name a beneficiary.

Speaker1:
Make sure that especially if you've been divorced and remarried or in or in a different relationship than you were at the time when you signed that document way back when. Make sure that the beneficiary is going to be who you want it to be as of this moment, not as of ten, 20 years ago. Because let me tell you, if, um, if a beneficiary was someone who I wanted it to be 20 years ago, he that would that money would be going somewhere. I don't want it to go. And so the thing is you need to make sure because those beneficiary designations that are on your policies, on your financial accounts, financial documents and all of that, the beneficiary designation on those will always, always be the default, no matter what a will says, the beneficiary designation is always going to be what is going to happen. And so you don't want your spouse or partner now saying, oh, well, you know, I'm so sad that so-and-so is gone and I'm in the mourning process. Um, but, you know, at least I guess there's going to be some money coming from a life insurance policy or whatever. And maybe, maybe a death benefit from an annuity or the 401 K money gets moved over to you or to them, and then they come find out that's not true, and that someone who hasn't been involved in your life for a decade or two is the one who's going to benefit.

Speaker1:
I just heard, you know, about someone the other day who had to then take the an ex, uh, spouse of their now deceased spouse to court to get the money that they should have gotten from a retirement plan. And it was a whole big mess. So avoid the whole big mess. That's that's the bottom line here. Avoid the big mess. And so, you know, if you want to sit down and talk about and I believe that you should sit down and talk about these topics as well, what you want your retirement to look like. Um, and just your plans and, and what you want to happen in your retirement years, especially when it comes to things like healthcare, right? Long term care especially. And we'll talk more about that momentarily. Um, but you want to talk about your retirement lifestyle. You know, you're going to stay put where you are now. Are you going to travel? You're going to relocate. Met a guy on a cruise. We took our first cruise last year. We met a guy on a cruise, um, on the ship who takes cruises all the time. Now, in retirement, he was on, like, his 120 something, 125th cruise or something like that. Like, it's kind of crazy.

Speaker1:
But, you know, he goes on these cruises week at a time. He goes off of one ship onto another, and then he'll go see one of his kids got two kids, he'll go see one of his kids for a couple of weeks, stay with them and then get back out on another cruise ship, and then do that for a few weeks and then go see the other kid for a couple of weeks and then start cruising again. And so, you know, that's for him. That's what he wanted to do. He loves it. He really, really enjoys it. And so, um, I can kind of see because we really enjoyed our cruise. I'm like, okay, this could be this could be the life, you know. So what do you want to do in retirement income sources? This is a huge one because retirement is about income, social security, pensions, maybe an annuity, which is like a personal pension. Right. Investments also like where are all of those things? Who's the beneficiary of these things? Insurance as well. You know you've got to put that in the conversation. Housing plans. You know I mentioned this. You're going to stay put. Are you going to relocate? Well, if you stay put in your home, do any improvements need to be made? Talk extensively about that on on last week's episode, so check that out as well. Take Pride in retirement.com or wherever you get your podcasts.

Speaker1:
Um, and then, you know, if you're staying in your home, maybe you need to make improvements. Or are you downsizing to another home? Are you upsizing to another home so friends and family can come visit? Maybe you're going to move into an LGBTQ+ friendly retirement community. That could be a consideration as well. And there are those out there. It just may take a little work finding those, but it can be done. And then, you know, I mean, who's in your support network? Who's going to help you with caregiving, who's going to help with those legal matters, who's going to help with emergency planning? All of that kind of thing needs to be considered as well. And so, look, if you need help structuring a conversation about all of these things, book that free consultation. Just go to take Pride in retirement.com. Take pride in retirement.com. Or you can call (855) 246-9211. (855) 246-9211 is the number and one of the most critical and but yet most avoided topics in retirement is health care and long term care. You know, for LGBTQ plus folks, it's even more urgent because of higher health care costs. You know, LGBTQ plus individuals do face higher medical costs in General due to historical discrimination and gaps in employer benefits. You know, just by and large, LGBTQ plus folks are more likely to have more expensive medical bills. It just you know, studies have shown that that is the case. Um, there can be limited caregiver support because many will rely on chosen family instead of traditional, you know, kids or spouses for care because, you know, everybody's family looks different.

Speaker1:
And so maybe you're not, as I said earlier, in that sort of more traditional family dynamic, but you are in a family dynamic where you don't have kids to take care of you in your old age, or you don't have a spouse to take care of you in your old age, you got to figure out exactly who's going to be that support system, who is there for you, and then you also have a fear of discrimination in assisted living. I mean, many people just worry about being mistreated if they are LGBTQ plus in care facilities and it's a concern. And so you've got to plan ahead so that you don't have to worry about those things. Right. So prepare for that conversation by talking about your healthcare coverage, things like Medicare supplemental insurance. You know, I mentioned a few minutes ago or a few seconds ago, really about, um, um, you know, extended care, long term care, that kind of thing. Medicare does not cover long term care. Let me say it again for the people in the back. Medicare does not cover long term care. You can you know, it covers hospital stays. It covers, you know, all different kinds of things. Long term care is not on the list anywhere. All right. So you've got to have a plan for that.

Speaker1:
Got to have a plan for it. Talk about your preferred care setting as well. Maybe in-home care maybe an LGBTQ friendly retirement community. Caregiving expectations. You know who's going to be part of that support system? How are you going to pay for it? Savings, insurance? Government programs, maybe even an annuity that if you have to go into long term care, a lot of them may have like an income doubler. So if you don't, um, or if you are unable to perform, I should say two of the activities of Daily living ADLs, then use things like, you know, brushing your own teeth and feeding yourself and toileting and all that kind of thing. If you're not able to do a couple of those. A lot of the annuities out there right now will have an income doubler, which will double your income stream on a monthly basis as long as you are in long term care. So that could be something that could cover those costs. And then legal protections, you know, do you have a medical power of attorney so that your spouse or partner or whomever loved one can make medical decisions for you, should you become incapacitated? Do you have advanced directives? So it's in black and white in writing. If this happens, I want you to do this. That is my wish. Um, you know, it's it's a difficult thing, but do it. Do it. Because not only is it going to help you and make sure that your wishes are carried out, it is going to mean so much peace of mind for your loved ones.

Speaker1:
Those are decisions that you can make ahead of time, so they don't have to make those decisions in the moment when emotions are running high, when people are just heartbroken, they can make those decisions a whole lot easier by just looking at the paper and saying, oh, this is what so and so wanted to happen. This is what he or she or they wanted to happen with this particular, um, event. If this were to happen, they want to be treated in this particular way. If they are, you know. Brain dead. They don't want to be resuscitated or whatever the decision is. Right. So you got to get those advanced directives in place as well. And we can help connect you to an attorney who could help you get those kinds of things going, like that medical power of attorney or, you know, the advanced directive or, you know, wills and trusts and that kind of thing. We can connect you with folks who we've worked with before, who do a great job for people and who we would, would recommend to work with you. Um, and it's important because, you know, as I mentioned, Medicare doesn't pay for long term care. How are you going to pay for that? Because nearly 70% of seniors will need long term care at some point, according to a study from the US Department of Health and Human Services.

Speaker1:
So all of this to say, reach out and take pride in retirement. Com take pride in retirement. Com to get a free consultation we can discuss your health care strategy. We can connect you with somebody if you need. You know more estate planning done like from a legal standpoint. Obviously, I'm not a I'm not a lawyer, but I can connect you with one. Sure. And so you can do that. Go to take pride in retirement. Get that free consultation. You can also call 85524692118552469211. The estate planning and inheritance conversation part is probably the most, um, I guess, or the stickiest situation. I guess you should you could say that that people kind of go through this, the stickiest situation as far as these conversations we're talking about, because, you know, a lot of LGBTQ plus people have unique estate planning concerns. And without proper legal documentation to go along with what they want to happen, state laws might not honor your wishes, and that is not good, obviously. Thank you, Captain Obvious. So some key considerations here. Wills and trusts. Those are essential for ensuring that your assets go where you want them to go. Keep those beneficiaries up to date. As I mentioned on retirement accounts and insurance policies. Power of attorney who's going to make financial or healthcare decisions if needed. Legal guardianship if you have dependents.

Speaker1:
If you have pets, even have you named a guardian? 68% of Americans, 68% don't have a will. That's according to a recent study from Caring.com. And without one, the state decides who gets your assets. Not you, the state. That's what I was talking about with my former coworkers who've gone through that probate process when a family member passed away. Not fun. Once again, take pride in retirement. Com is the website that you can go to. Okay. And so those are the conversations that have been part of our conversation today. Those just kind of to recap here. Of course financial conversations Stations. You know where everything is, what investments you might have, what different types of accounts you might have and how much is in them, and that sort of thing. Talking about that, but also talking about how that relates to your retirement plan for yourself, what you want to do in retirement, your vision for retirement. A smart vision, as we like to call it around here for your retirement years. And then also that estate planning conversation. Anything dealing with end of life obviously is difficult, but have those conversations get over that fear, because the importance of having the conversation is so much greater than the fear of having the conversation, right. Because you don't want to just sit there and be afraid. If you sit there and be afraid, you're paralyzed. You don't move. Nothing ever happens, nothing happens. You can't improve your life, and you can't improve the life of your loved ones.

Speaker1:
And the whole point of this show is for me to encourage you to help improve your life, to improve the life of your loved ones, to make sure you have a retirement you can take pride in. 85524692 11 is the number. Take pride in retirement.com is the website. Okay. So we're going to talk just for a few moments here about the biggest risks facing LGBTQ plus individuals retirees especially and Pre-retirees. You know, retirement planning comes with risks for everybody. But LGBTQ plus retirees often face additional challenges due to historical disparities. Things like, you know, income benefits, legal recognition. And here's how you can kind of proactively address a lot of these risks. So the biggest risks facing LGBTQ plus folks right now, um, one of them is market volatility. We've seen it a lot. Um, and so how will that affect your retirement? Well, you know, the stock market, it's unpredictable, you know. And that's why a lot of times you'll hear me refer to the stock market as like, like you're gambling in Vegas or that kind of a thing. I'll use some of those analogies sometimes. Well, you know, the stock market's just unpredictable. It's like almost like the roll of a dice at times. And so the economic downturns, they can kind of come out of nowhere. Um, you know, a couple of months ago the markets were at all time highs.

Speaker1:
Look what's happened now because of certain policies coming out of Washington. Those are things you really can't, you know, kind of control. Right? We'll talk about that more in just a second. But, um, the downturns in the market can significantly impact your retirement savings, especially for people who rely on 401 S, IRAs and other investment based accounts. So anything that's invested in the market and then if a market decline happens early in retirement, that's known as sequence of returns risk. So withdrawals from your portfolio along with the downturn in the market, that's just a perfect storm to cause lasting damage to the money that you have worked so hard your entire life to save, to invest. If that sequence of returns risk comes, comes, comes a calling and comes to bite you in the, you know where that can do a lot of damage, and you might find yourself in a situation where you, like, have to go back to work or something. And that's not where you want to be, right? So you need to have a plan that counts accounts, I should say. For that. And many, you know, LGBTQ plus retirees might not have employer sponsored pensions, or they might rely on self-funded retirement accounts that are, you know, like an IRA or something like that. And that makes market fluctuations really even more impactful because you're kind of going it alone. Because LGBTQ plus folks have historically faced workplace discrimination as well.

Speaker1:
Some have lower lifetime earnings and fewer savings to cushion those market downturns. A couple of ways here that you can protect yourself from that. One is to diversify. Diversify your investments across stocks, bonds, annuities and cash to reduce your exposure to downturns. Make sure that you are diversified. The three rules of investing are diversify. Diversify. Diversify. Right. So you want to be in all of those areas. And we can take a deep dive into your particular situation. Find out what's best for you. You know, a an investment portfolio that includes bonds may be great for you. An investment portfolio that includes annuities may be great for you or a combination of the two, including your stock portfolio and any cash you might have. And no matter how much you do have or how little you have, I'd be glad to work with you. Take pride in retirement. Com is that website once again consider a fixed indexed annuity. As I was just saying, they're protected and guaranteed lifetime income can be the outcome of that. And work with a financial advisor like myself, for example, to stress test your portfolio against potential downturns. Inflation is a big consideration for LGBTQ plus folks because you know it erodes your purchasing power. And this is true for everybody because, you know, if costs rise but your retirement income stays the same, you could find yourself struggling to afford just the basic necessities of life or the bare necessities of life.

Speaker1:
To quote an old animated movie, um, health care, housing, daily living expenses those all increase over time. So, you know, today's retirement budget just might not be enough in 10 to 20 years. So that's why inflation is a big risk. And then LGBTQ plus folks need to consider that retirees in our community are more likely to live in urban areas, where the cost of living tends to be higher and inflation can really hit harder. I was just in New York last week and boy, the sticker shock was something. Um, and you don't want many same sex couples are dual income. No kids, dinks or Dinks, dual income, no kids, uh, during their working years. And so that leads to lifestyle creep that can be hard to maintain in retirement. Long term care costs increasing rapidly as well. And LGBTQ plus retirees are more likely to need paid care rather than relying on family caregivers. It all depends on that family dynamic. And so what you want to do to protect yourself against that risk is to invest in assets that outpace inflation. Stocks have done that over the long term. Perhaps you have enough to invest in rental properties or inflation protected investments. Annuities, for example, can outpace inflation. There are particular types of bonds and other securities that are tied to and increase with inflation. So maybe you want to explore that. And if you do go to take pride in retirement.

Speaker1:
Com schedule your consultation. Um, adjust your withdrawal strategy. Make sure that your income grows with inflation, and consider relocating to a more affordable city or a more affordable state that still offers LGBTQ plus friendly retirement communities and lower costs. You know you don't want to move somewhere that just because it's cheaper and you're going to be discriminated against, right? You want to make sure that it's somewhere you're going to be welcome. But at the same time, you want to make sure that you can afford it. Longevity risk is number three on this list. Will your money last as long as you do? That's the basic question here. And you know, I mean we're living longer these days even, you know, despite Covid 19 overall people still are living longer than ever before. And that's great. But it also means that your savings have got to last longer as well. You last longer, your savings got to last longer, and running out of money in your 80s or 90s could mean a lot of things. It could mean the poorhouse, of course, but it could mean that, you know, aside from that, relying on your family or your chosen family, your friends, your, um, you know, government assistance or lower quality care. And many LGBTQ plus individuals just don't have kids to rely on for financial or caregiving support. And that makes self-funding your retirement even more critical. And work with me on that, because I would love to help you build that plan that's going to account for no matter what happens.

Speaker1:
Same sex couples who were unable to legally marry for many years may have lost Social Security benefits or no spousal pensions and survivor benefits that that heterosexual couples automatically received. And or, you know, if you're not married, if you have a long time partner whom you are not married to. All of those things could be true for you now as well, so it's something to consider and have in mind when you're planning for your retirement. And, you know, maybe that's a situation where you need to get those powers of attorney and those other legal documents in place and make sure that beneficiaries are named and all of that. Lgbtq plus retirees often face higher health care costs because of disparities in medical care and insurance rates as well. And that is something to also keep in mind. But you can protect yourself. Consider annuities a portion of your savings to create a lifetime guaranteed income stream. So take a portion of your savings. Invest in an annuity that can give you growth, and then give you guaranteed lifetime income. Income that will last as long as you do, and also pay out a death benefit to the people you leave behind. Potentially delay your Social Security benefits to maximize your monthly payout. Maybe that's a good strategy for you. Maybe it's not. I can go through your situation and show you what is going to be best for you.

Speaker1:
We can do something at our at our firm called a roadmap, an RSA roadmap that shows you basically what you are estimated to receive and when and if delaying would be best for you. Now, if you have a spouse, if you have, um, well, a spouse, because you've got to be married to take advantage of spousal benefits, we can run the numbers for both of you and see what's going to be best for you as a couple to do. So yeah, that's another great reason to reach out and use long term care insurance, maybe to cover future healthcare expenses. Boy, here's something that we've seen as a risk here lately public policy. Are your benefits secure in things like Social Security and Medicare? Public policy changes can impact those essential government programs, tax laws, estate planning rules all of those types of things can really affect your retirement. Lgbtq plus retirees, especially those who were unable to legally marry before ten years back, may not qualify for certain spousal or survivor benefits, and some LGBTQ plus retirees missed out on decades of Social Security spousal benefits due to a historical marriage inequality. So if you were in a long term same sex relationship before 2015 but weren't legally married, you may be entitled to backdated benefits, and you can contact the Social Security Administration to check your eligibility there. Hopefully, with all that's going on in Washington, you can actually get a hold of somebody at the Social Security Administration.

Speaker1:
Um, LGBTQ plus specific legal protections like anti-discrimination laws and housing and health care. Those things can vary state by state, and those can affect your retirement choices. So how do you protect yourself there? Well, stay informed on Social Security and Medicare rules affecting LGBTQ. Plus retirees. Specifically work with a financial advisor. Hello. And also legal advisor to ensure that your retirement plan is aligned with current laws. Consider giving or living rather in an LGBTQ plus friendly state with strong anti-discrimination laws. Good, good thing to do there. Then just two more, uh, risks here for LGBTQ plus folks in retirement right now. Sequence of returns risk. If the stock market crashes early in your retirement, you may have to sell investments at a loss. And that causes irreversible damage to your portfolio, potentially. You know, this is a bigger issue than just general market volatility, because you're withdrawing money at the same time, and you're doing that in a down market, and you're at a point in your life where the funds don't have time to recover. So it's just like this. As I said earlier, a perfect storm. Many LGBTQ plus retirees were first generation wealth builders, meaning that they don't have inherited wealth to fall back on. The 2008 financial crisis and Covid 19 recession disproportionately impacted LGBTQ plus workers, and that means that some may have already dipped into savings early.

Speaker1:
So that creates a further problem. So have a cash cushion. Have a cash cushion for you, for yourself in savings or in bonds. You can do as much as, you know, 2 to 5 years if you have six months of expenses as a cushion. Right now, I think that's you're already ahead of the curve. You're doing great. And avoid withdrawing from investments during downturns. Consider a bond ladder or fixed indexed annuities, as I was mentioning earlier, for reliable income. And use a bucket strategy for separate long term, medium term, and short term investment risk levels. And finally, the big one here housing and health care costs both getting more expensive. Many LGBTQ plus seniors also face discrimination in housing and health care facilities. That leads to higher costs and fewer options. Housing and healthcare are two of the biggest expenses in retirement. Lgbtq plus individuals are twice as likely to age alone, meaning that in-home care is often the only option. So then you've got the health care and the the home to pay for kind of in a twofer there, because you're being cared for at home and Medicare doesn't cover most long term care costs. Medicaid eligibility is state dependent. So how to protect yourself? Consider, you know, maybe downsizing to fund your retirement. Look into long term care insurance before you need it, not after. Remember I said if you plan for the disaster after the disaster has happened, you're behind the eight ball.

Speaker1:
And then research those LGBTQ plus friendly assisted living communities and care providers. Bottom line here, folks, you know you have worked really hard for your future, so let's make it secure. There's a lot of volatility in the market today. Um, a lot of people are uneasy about what's going on and very scared, quite frankly, about what's going on. They see in the markets, they see the global economy. They see things that are happening, um, that they can't control. So my advice to everybody is control the controllables. Control the things that you can control. Let's do that together. All right. I can help take that deep dive into your financial situation and get you in a place where you need to be. So you have a retirement you can take pride in. (855) 246-9211 is the number (855) 246-9211. You can also visit take pride in retirement.com. Com and we can come up with a personalized retirement strategy just for you. Well folks, that is going to do it for this edition of Take Pride in Retirement. Thank you so much, as always for joining me. Remember to subscribe to the podcast anywhere you get your podcasts and check me out at. Take pride in retirement.com. Um, like and subscribe to the YouTube page. Do all the things. I would really appreciate all of that and more. Anything you can do to spread the word, I would just absolutely love it. Well, until next time, take pride in yourselves and take care of each other. We'll see you then.

Speaker2:
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.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.

Speaker1:
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 to 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. 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.

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