Why LGBTQ+ Retirement Planning Requires More Than Saving Money

TPIR Ep 119 Full Show.mp3: Audio automatically transcribed by Sonix

TPIR Ep 119 Full Show.mp3: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker 1:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker 2:
Welcome to Take Pride in Retirement, the podcast dedicated to helping members of the LGBTQ plus community protect and grow their hard earned money. Get set for a show full of education and insights with your host and advisor, Matt McClure. We recognize every family is unique. The goal of the show is to help you achieve financial freedom, so you and your loved ones can have the retirement you've always dreamed of, a retirement you can take pride in. No matter who you are, where you're from, or who you love. So now let's start the show. Here's Matt McClure.

Speaker 1:
Well, hello.

Speaker 2:
There.

Speaker 1:
And welcome to another edition of Take Pride in Retirement. Matt McClure here with you, your host, your advisor, your friend, your pal, and your confidant. Thanks so much for being a part of things, as always.

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

Speaker 1:
Hubby wears a lot of hats. Um, luckily, you know, I got a sizable noggin to fit all the hats on there. Uh, but he has to wear, um, and I'm one to talk about that. Uh, but and today we are talking not about that, but about something that is honestly, really, I think at the center of conversations that I have all the time with clients, pretty much every conversation, the difference between having retirement accounts and just, you know, actually having a real retirement plan because that's not the same thing.

Speaker 2:
And I think a lot of people assume those are the same thing. Like you said, like, oh, I've got a 401 K, I've got an IRAs that must be doing a okay.

Speaker 1:
Usa is a okay, the okay. And if you get that reference, leave it in the comment. Um, yeah, no, it's, uh, you are, you're doing part of the job. You're getting yourself partway there. But there is a new study actually out from Goldman Sachs that found something that was really interesting that people with a written and actually personalized retirement plan are dramatically more likely to feel prepared to feel confident about their retirement, and they tend to have significantly better financial outcomes overall as well.

Speaker 2:
So today we're going to be diving into what that means, why planning matters more than ever, and especially for LGBTQ plus people, and how structure and consistency may matter even more than just your income alone.

Speaker 1:
Yeah, it's all how the pieces of the puzzle fit together, and we're going to get there momentarily. First, though, I want to say a big, huge thank you to all of you who are listening and or watching to watching the show rather, um, please, please, please, wherever you are listening, if you're listening via the podcast, thank you for doing that. Thank you for finding us. Spread the word. Subscribe there. Also, if you're watching on YouTube, we would like it if you would like and subscribe subscribe. We've. Got the high one this time I like it. We go from sultry to the high pitch version. We got all kinds of variety here. You get a song, you get a dance. There needs to be an Asmr where it's like, subscribe, baby.

Speaker 3:
Go over there to take Pride and retirement.com.

Speaker 1:
You know, something like that sounds like what's his name with the big mustache? Um, from, you know, he was in Grace and Frankie and, and, uh. Oh, yeah. Uh, the Lady Gaga version of, uh, Star is Born. You know him? Yeah. Um, anyway, but please subscribe. And like Matt said, uh, like our videos share these videos help get the word out because Matt is the advisor that cares, especially for our community. And he's going to help you navigate this sometimes tricky retirement planning. Yeah, it can be, it can trick can trick you. It can trip you up. Um, it can do a lot to, um, you know, just give, throw things at you that you're not expecting. And again, I have a plan that accounts for all of those things, right? So yeah, give me a call as well if you want. 85524692178552469211. Is that number. You can also visit the website. Take pride in retirement.com. You go there. You can click on Get My plan at the top of the page. Really simple to just send me your info. Be glad to send you out an ebook as well. That's called the Smart Retirement Plan. I wrote the afterword to that book. I'm very proud to have done so. And, um, so I would love to send you that free of charge, no obligation at all, and then do a deep dive into your personal financial situation. And, you know, we talk all the time on the show about the importance of having this sort of financial roadmap, right? Just to I always sort of think of it like if you're, if you're kind of doing the modern day version of the roadmap, its financial GPS, right? If retirement isn't something you can just go about and kind of wander into by accident and have that be a successful retirement.

Speaker 1:
Um, there was this Goldman Sachs survey, like we've been saying that really quantified that idea in a really, really powerful way. All right. So what exactly did they find? So the headline stat is, is really huge here. Um, according to this survey, people who retire with a written and personalized retirement plan had savings about 5.2. Uh, excuse me, 5.92 times. I'll actually put this up on the, on the screen for folks to see if you're watching on another reason to watch us on YouTube. We're all fancy and have graphics and stuff. Um, but 5.92 times their annual income. If you have a personalized retirement plan, but compare that to people without a plan. They only had about 4.68 times their income saved. So that's a pretty major difference. That's a big difference. And when we're talking about, you know, more than an entire year's worth of income difference in your retirement savings, that's huge. And what is fascinating to me is that, you know, simply having the structure of a plan really appears to improve people's behavior over time.

Speaker 4:
So it's not necessarily that planners are richer people to begin with.

Speaker 1:
Right? Yeah, exactly. I mean, it doesn't I always say it doesn't matter who you are, where you come from, who you love, how you identify or how much money you have. You deserve a retirement to take pride that you can take pride in. And the plan itself is the thing that changes the behavior here. When people know what they're working toward, like when you get in the car and you put in that destination in that financial GPS as we're talking about, you know, you tend to stay on course. You contribute more consistently in this scenario when we're talking about finances and not actually driving down the road. But when you're driving down the the virtual road toward retirement, you contribute more consistently. You stay invested during market volatility, you avoid emotional decision making, which is huge when you're when you're planning for retirement and you're saving and investing.

Speaker 4:
Yeah, which honestly sounds a lot like life in general, right? When you know where you're headed, you're less likely to panic.

Speaker 1:
Exactly, exactly. It's, you know, you've got that map out there, you've got the GPS. It's, um, I always feel a lot better. And I know that you do too. We're both sticklers for this. You more than me. I feel like when we use the GPS, even if it's somewhere we're going, that we've been a million times because you don't know what's out there on the on the road. You don't know if there's an accident blocking the roadway. You don't know if there's construction. You don't know if some sort of weather event has happened and you know there's water on the road and the thing will tell you, like there are all of these obstacles. And for LGBTQ plus folks specifically, you know, planning can be even more important here because historically, many of us have had fewer built in financial safety nets. You know, a lot of retirees to, you know, don't have children or grandchildren if you're LGBTQ plus to provide support later in life, just statistically speaking. And, you know, speaking from my own experience with working with LGBTQ plus clients, being a member of community myself, you know, some people experience periods of workplace discrimination or, um, you know, other types of things that impacted their savings over time. Others maybe had marriage access delayed or legal protections delayed for many years of their lives. So retirement planning requires being even more intentional there and maybe even, you know, playing a little catch up.

Speaker 4:
Yeah. And chosen family dynamics. I mean, that can complicate things a little differently than traditional planning models, right?

Speaker 1:
Yeah. I always say it's not, you know, the LGBTQ plus community is not always going to be and is likely not going to be the, um, you know, husband and wife and two and a half kids, a dog and a cat in a white picket fence. You know, we come in all different shapes and sizes and makeups and, you know, beneficiaries, healthcare directives, long term care planning, inheritance decisions, all of that stuff really, really, really becomes critically important. And so if that's something that you need help with, any of those things go to take pride in retirement.com. Click on the upper right hand corner of that page. You'll see get my plan right there. No cost, no obligation to do that. Reach out. I'll do a deep dive into your particular situation here. Now, one of the most striking parts of this study wasn't even really the savings gap that we just discussed. It was the confidence gap.

Speaker 4:
Yeah. And confidence really matters financially, obviously.

Speaker 1:
Absolutely. It's real too, because this survey found that 83% of people with a personalized retirement plan said that they felt on track for retirement, 83%. But among people without a plan, just 41%. So that's I mean, basically double. Exactly. I mean, it's a little bit more than than doubled the number of people who feel confident. You feel much more confident or more likely to if you have a plan. And confidence matters because confident investors tend to, as we said a moment ago, stay disciplined, less likely to panic, sell during a market downturn, or abandon a strategy if they read some scary headlines or see something on, you know, a financial app out there. And we've all seen scary headlines lately, huh? Yes we have. It's kind of constant here lately. Um, but, you know, I mean, the market is is an unpredictable thing. I mean, you know, there's been a lot of market volatility certainly, but the market has weathered this storm of, you know, the craziness that's out there and the market's reward consistency over time. You know a good plan gives you something to come back to when those emotions start taking over. And we're only human that's going to happen. Those emotions are going to creep in. Right?

Speaker 5:
So the plan kind of becomes your voice of reason when emotions start screaming at you.

Speaker 1:
Yes. That that is actually a great way to think about it. And I think that, you know, uh, during different times of our lives, just speaking very personally and openly with the listeners slash viewers here, we have been that for each other. You know, I mean, it's like you have your anxieties about things. I have my anxieties about things. And, you know, we each kind of come in and be the voice of reason for each other. Well, you know, you can kind of think about your financial plan as that other kind of partner in your life or in your relationship, whatever you want to look at it as, because it acts like a filter between your emotions and your money. Um, or, you know, sometimes you like to use, uh, you know, doors and windows and walls as, as your sort of metaphors there. Um, but it's true. I like it, you know, I like when you're my, you're my filter between my emotions and whatever else is happening.

Speaker 5:
Yeah. Well, I always talk about the logical Josh and the emotional Josh. And you need both of those things, right? But you need to lean into the logical, especially when it comes to the emotional weight that some of this can take a toll on, obviously, for our community.

Speaker 1:
Yeah, absolutely. And, and for LGBTQ plus folks, you know, financial confidence does carry emotional weight because, you know, people in our community have spent years and decades feeling uncertain about legal protections, health care access, things like, you know, their family support systems, long term stability, certainly, like, you know, even if you look into the future, kind of like long term care as well, like who's going to take up take care of me when I'm older if I don't have kids. Like all of that stuff is very, very important to have in mind. And that financial clarity can create emotional clarity too. So it's, you're getting something great out of that confidence and clarity. Yeah. Now 100%, I mean, it's, you're not just getting that, that sort of mental clarity about the, the financial aspects of your life. You're also getting the emotional clarity. You're getting that peace of mind that I so often talk about because it really does make a huge difference. Like if you have, if you have that confidence, if you know that you have a plan that accounts for not just the possibilities A, B, and C on the list of what may happen, but A, B, C, D, EFGHIJKLMNOP and all the way down to Z, then, you know, no matter what happens in the market or whatever, like the things that you can't control, you know that you are going to be okay and you can weather that storm.

Speaker 1:
So look, if you would like help in building a plan that can weather whatever storm that's out there, if you want one that's tailored specifically to you, to your goals as a member of the LGBTQ plus community or an ally or wherever you fall along whatever spectrum, just give me a call. 85524692118552469211. I'll be glad to create a retirement plan designed specifically for you. You can also go to take pride in retirement.com. Click Get My plan up in the upper right hand part of the home page. Um, okay, so another big part of this, uh, Goldman Sachs study is something that really jumped out at me because it explains why so many people are feeling stuck financially, especially right now in this moment where we are. Yeah. And honestly, I, I agree, I think people do feel stuck because everything feels more expensive. Yeah. Well, and it is, it doesn't just feel that way. It really, really is. I mean, the report pointed out major life expenses have really exploded over the last couple of decades. Housing costs, health care. You can kind of see all the different things here on the screen. If you're watching us on YouTube, uh, housing costs, health care, childcare, college expenses, all those categories take a much bigger bite out of people's income than they used to.

Speaker 6:
And listen, those aren't just optional expenses.

Speaker 1:
No, they aren't like legit. Yeah. These are legit expenses. Very much so. And and, you know, I mean, it's we talked recently on the show about like the have to haves and the, it'd be nice to haves, I guess. And this is something that Goldman Sachs actually referred to as the financial vortex here, all these rising costs pulling money away from your long term savings. It's not a good, not a good thing, not a good feeling.

Speaker 3:
Certainly financial vortex.

Speaker 1:
That's an accurate phrase. It is. It's like a it sounds like the enemy and like He-Man or something. I know like war. Wars. Yeah. Watch out for the financial.

Speaker 3:
Something financial vortex.

Speaker 1:
Exactly. Exactly. Um oh, a financial vortex you have anyway, um, it really, it really is though a, an accurate, accurate thing. Um, and, you know, because if you're, if your money is being pulled away from you, uh, from the things where it needs to go Than, you know, if you don't kind of intentionally direct money towards retirement. And everyday life is going to consume every dollar that's available, like, right. If your money's being pulled in every which way, every which direction possible, it can't really go into that retirement bucket. So you've got to just be very intentional about it. As I was saying, LGBTQ plus households as well. I mean, face some unique pressures here because some couples are still catching up financially after years without equal benefits, years without legal recognition. Others could be supporting parents who are getting older. We know a thing or two about that. Um, maybe supporting, you know, chosen family members or dealing with higher health care costs as well. So a lot to consider for our community specifically. And it's like we've touched on this multiple times, there's the reality that many LGBTQ plus people, they're navigating retirement planning without a traditional template, right? Like this is not like, that's, that's what's so good about this podcast that you've created is because our community is like, what am I supposed to be doing? Because everybody's situation is different. I don't look like this, you know, typical template of something. Yeah, it's very true because as you as you just said, everybody's situation is different. Everybody's life looks different. Everybody has, you know, different resources that are available to them and unique resources, of course, in the LGBTQ plus community or lack thereof. And so that's what makes this personalized planning really matter so, so much. And, you know, this study goes on to, to something I think that's pretty fascinating to me as well.

Speaker 3:
Well, tell us about it.

Speaker 1:
Because most people probably assume the biggest factor is just going to be save more money, right? Yeah, that's what you would think. Yeah. But here is actually what contributes to retirement outcomes. The study actually broke down the factors that contribute to success in your retirement plan, saving early retirement outcomes by about 14%. Personalized planning contributed about 27%. The biggest single factor, though, was something that they called financial grit.

Speaker 3:
I'm loving all these phrases. Financial grit. That sounds intense.

Speaker 1:
It is.

Speaker 3:
Where's my late mother.

Speaker 1:
Would say that sounds.

Speaker 3:
Intense.

Speaker 1:
Intense and interesting.

Speaker 3:
That's interesting. And intense financial grit.

Speaker 1:
It is. Um, and and basically that financial grit means consistency over time. Right? Staying invested, following the plan, avoiding those emotional decisions so that that stick to itiveness, I guess you could say as well, you know, continuing forward, even when the markets get weird and life gets complicated, that is what financial grit is. And that contributed about 50% almost to people's retirement outcomes. And this could be difficult for a Virgo like myself. But discipline really. Discipline. Discipline matters more than perfection. Discipline is a. Now that sounds like some kind of new drug you would see on. Don't. That's exactly what it is. Don't take discipline if you're allergic to discipline. Um. Anyway. Anyway. Yes. No. Discipline. Discipline? Yes, indeed. Discipline matters more than perfection. To translate is actually a great phrase to say yes, to translate from. From Josh to English, discipline matters more than perfection. Sorry, I had a mini stroke. That's okay. Uh, well. Tia. Um. But yeah, no, retirement success is more about the discipline side than the perfection side, because it's not about making just this one brilliant decision. And then always, uh, you know, having this perfect plan and everything is lined up because you don't. There are so many things that you cannot control in life. Control the things that you can. Um, it's really more about like making those solid decisions consistently for a long period of time and, and controlling the things that you can control.

Speaker 1:
Yeah. And honestly, I think that's encouraging because people hear financial advice sometimes and they think they have to be perfect, you know, they have to do it. Exactly right. Yeah. No, I mean, no, nobody is perfect at all. And so we don't expect that. Right? I know that in, in my own life, um, certainly personally not perfect and financially certainly not perfect as well. But the goal is progress. The goal is consistency. The goal is not perfection. And I think the biggest sort of takeaway from this entire study is that very sort of thing. It's it's structure matters. Having that personalized plan really matters because the people who feel confident are not just winging it and, you know, throwing it the wall and seeing what sticks. In other words, they have that roadmap. They're working with a financial professional, a financial advisor. They know what they're trying to accomplish, and they have the systems in place to help keep them on course to make that happen. And honestly, having a plan probably helps people sleep better at night too. Oh, 100%. I think it could be better than melatonin for a lot of people because retirement planning, you know, it's not something that is just about the spreadsheets and investment returns, right? It's about freedom. It's about stability.

Speaker 1:
It's about confidence. It's about creating a future where you can actually enjoy your life. And having, as we always say, a retirement that you can take pride in because that is what you deserve. And if you don't currently have a written retirement plan, or if your existing plan that you have, maybe it's old, maybe it's you put in place several years ago, you've been still kind of following it, but maybe it no longer applies to where you are in life right now. I'd love to help you. I'd love to help you come up with a plan that's good for you right now and in the future. And so give me a call 118552469211. Go to the website. Take pride in retirement.com. Again, it's take pride in retirement.com. Consultation is absolutely complimentary. There's no cost. There's no obligation. You can take the information and do what you will with it. And you know, I would love to help you out with a plan of your own and implementing that as well, if that's something that you would like to do. And don't forget to subscribe, follow, leave a review, hopefully a good one. And just make sure that you're sharing this with someone who could use a little more clarity and confidence about retirement, because that's why Matt's here and he's the guy that will help you get it right.

Speaker 1:
I'll help you get it right, get it right the first time so you don't have to do it all over again. That's your little stress phrase. You always say, my stress. Oh, what's my stress phrase? Um, you say don't stress, do a plan. What is it? Oh, yeah. That, uh, you know, uh, if you, uh, um, plan plan the work and work the plan, but you don't stress. If you have a plan, you don't stress something, I don't know. Anyway, it was a very good slogan that we'll think of for the next episode. Yeah. You know, we'll get there eventually. Um, no, it's it's a, um, you know, having one way to put it. And I know and I know what you're talking about and it's like a tip of my tongue and I can't say it, but it's like having financial, uh, like accounts is great, but having that without a plan is just stress. So it's not, um, you know, something that you can just wing, like go through it with an actual plan that's built for you and a roadmap that is mapped out specifically for you to get you to the retirement that you deserve. And that's one that you can take pride in. Absolutely. All right. Well, that is going to do it for this edition of the show, Mr. Attache. Thank you. Appreciate it.

Speaker 7:
Thank you. Thank you, listeners.

Speaker 1:
And thank yeah, thank you for listening and or watching the show. Really do appreciate it. Like and subscribe and do all the things. We'd appreciate that as well. And until next time, Take pride in yourselves and take care of each other. We'll see you then. Thanks for listening. To Take Pride in Retirement, members of the LGBTQ plus community deserve to work with a fiduciary financial advisor who puts their needs first. To schedule a free, no obligation consultation with Matt McClure and the team at Active Wealth Management, call (855) 246-9211 or go online to take pride in retirement.com. Investment advisory services offered through Brookstone Capital Management, LLC. Bcm, a registered investment advisor, BCM and Active Wealth Management Incorporated are independent of each other. Insurance products and services are not offered through BCM but are offered in sold through individually licensed and appointed agents. Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosures of any conflicts of interest. Please refer to our firm brochure, the ADV two A item four for additional information.

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