Wealth from Wisdom

There’s a 60% Chance You’ll Retire Unexpectedly … Here’s How to Prepare Yourself Now!

May 13, 2017
Wealth from Wisdom
There’s a 60% Chance You’ll Retire Unexpectedly … Here’s How to Prepare Yourself Now!
Chapters
Wealth from Wisdom
There’s a 60% Chance You’ll Retire Unexpectedly … Here’s How to Prepare Yourself Now!
May 13, 2017
Carson Wealth
Show Notes Transcript

Staggering statistic that most people don’t retire on their own terms, according to a research study featured in USA Today, 60% of U.S. workers retire sooner than they expected. Join Ron and Paul as they discuss strategies to prepare for early retirement.

Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and wealth from wisdom with Ron Carson or for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an SCC registered investment advisor.
Speaker 2:
0:30
The dud market hit another all time records as much as $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 200 and the skyrocketing cost of healthcare and retirement could now run $350,000 for retirement. Today is a whole new ball game. It's loaded with challenges, obstacles, and trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of fame adviser, run Carson straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson. Hi, I'm Ron Carson with my cohost Paul West. Welcome to wealth from wisdom. The statistics say there's a good chance it's going to happen to you. You're in your late fifties early sixties and you're so close to retiring, but there's more work to be done before you finally call it quits.
Speaker 2:
1:29
But then the unexpected happens and you're totally caught off guard. You're downsized out of your job. You're offered early retirement. Your health takes a sudden turn for the worst, or there's a health issue with a spouse or a parent that forces you to quit your job. Whatever the reason, you're forced to retire way, way before you expected and certainly way before you wanted. The bottom line is you're ill prepared and now you're left scrambling to figure out how to put all the pieces together. According to a research study featured in USA Today, and I found this surprising even though I've been in this profession for 36 years, 60% 60% of American workers had to retire sooner than they planned, but you know, we didn't have to learn this from USA Today. It happens all the time. Paul, we see this happening. I was really surprised by the number
Speaker 3:
2:40
and I know you had to be too. Yeah, I mean, so you think about it and you hear stories all the time, but you don't think it's over 50% but Ron, I started reflecting of conversations that I've had recently or over the last year and it is quite a few and people don't think about why and what happens. So I think it'll be fun today to share some of the
Speaker 2:
3:00
stories about why this happens, but probably more importantly for all of our listeners, how do avoid some of the reasons why or guess what life does happen and you've got to counteract that. And what do you do? So we'll talk about some strategies on how to help people, um, react when situation throws you a curve ball. When I can relate to this, I was, as I was preparing for this show, I thought, you know, this is this, the 60% really shocks me. But then when I started thinking of the people I was working with, I was like, wow, yo, I, Enron was a huge shock, right? We dealt a lot with Enron. All of a sudden people were out of a job, no retirement plan, most of their savings up in the air. And so they didn't expect any of that to happen. Matter of fact, most of them expected to live a worry free retirement.
Speaker 2:
3:49
And that was one where those that had a plan or mentally impacted, but they didn't miss a beat as it related cause they had taken enough chips, were protected enough assets and really had a detailed budget. And that's really a key, right, is taking enough chips off the table, I'm going to call it circling the train to protect it, to make sure that that produces the amount of income that you need. So it was devastating as Enron was because it impacted so many people. Those that have had a plan didn't miss a beat in their financial freedom or the quest for financial freedom. Yeah. And on one of the things that happens is unexpected job loss. I mean, that's one of the major drivers of why people end up retiring earlier before they anticipate. And so how do you react to it or what do you do?
Speaker 2:
4:38
And it makes me think of a family. You and I both know very well. Uh, they were all gearing for retirement. Things look great. They didn't have a care in the world, said, hey, we work, you know, really another three to five years just depending on wants more than anything. And all of a sudden they had a job layoff and there was nothing they of course could do about that. And so they had to go make decisions. What do they do next? Do they go look for another job? And ultimately they made a decision that they're not going to, but guess what? They had to tighten the belt. They had to say, you know what, we're not going to be able to do as many things we want in retirement because our plan didn't happen the way we wanted it to. So they had to shrink their budget a little bit and think about what do they need to do and how do they save a few more nickels and dimes across the entire budget.
Speaker 2:
5:26
They have to make it more efficient for them. Here's another example, and this lady's first name is Ruth. Um, she had a very high level c level job with one of the largest companies in the country and she was responsible anyway, she need to get into what she did. But I remember she was traveling, um, to a conference in Hawaii and literally when she landed, she wasn't there. I said, hey, what happened to Ruth? And he said to her mother who become very ill and she had to go home. And I'm thinking, okay, well she's going to be, you know, I'll see her in a week or I'll see her in 10 days. Whenever the crisis with her mother passed, I was just catching up about Ruth last night with Robert who happens to be in town and she, her mother. What happened was, is she had an, an prolonged illness where Ruth was really that the primary caregiver.
Speaker 2:
6:19
And she actually had to move away. She had to walk away from the job. And what was devastating about this as Ruth was right in her prime for earning and all of a sudden had a rural financial heartful just supporting her mother. And my question was, well, why didn't they just hire somebody? And they didn't. They had it, they didn't have enough resources unnecessarily do that. Ruth took another job close to her mother, but totally derailed her retirement plan. And that's a good case of where you need to take a look around and say, okay, I've got focus on my stuff, but are there unrelated risks that could blindside me that I'm really not thinking about? And there was having maybe home health care, longterm care that could actually provide, had benefits, would have been invaluable. I think illness and health care and costs
Speaker 3:
7:13
related to healthcare is one of the biggest reasons why Ron retirement becomes an issue for people or why they retire early. And I think you give a great illustrative example there. Um, and most times people think about real life scenarios of somebody getting sick. And I'll share with you a story of a family we both know pretty well that, uh, has, you know, a great retirement plan in place, uh, but, and had built the plan and it spent many time with us and our advisers here working on it. And then guess what happened? Healthcare became an issue in terms of one of them had some health issues and health scare. So what did they decide to do? Redo their entire plan? So they retired early because of an illness. And what did they decide to do? They decided to downsize. So they decided to have less of a home.
Speaker 3:
8:00
They decided to travel more because that's what's important for them. And I think it's so neat to see people realize that you don't know what you're going to do when you're in that situation. I mean, you think about you and Jeannie, you, myself, a Courtney, if one of us got materially sick, what would we do? How would we change our lifestyle? And you'd do the things you want to do to help live out the way you want to live out your life with your family. And I think it's a really neat thing that not everyone realizes that when push comes to shove, you're going to make the right decision for your family. This story is such a neat story. Ron Actually, CNBC covered it for us and I think it was a great story. So if you want to see more about it and you go to welfare wisdom and go out to our website and see it, but how when push comes to shove and people are forcing these early retirement, your two choices, you can sit and whimper or you can go make the most out of life. And I love seeing these types of people who go to side to make the most of it.
Speaker 2:
8:51
Well and speaking of that, you know Holly was just in the office, so her husband are traveling the u s in their RV and I asked her how it was going because she loved what she did here at the Carson Group. She was excellent at what she did, but they're like, you know what, we, we've got, you know, we don't know. We're not certain about the future. So we're going to take life by the horns and we're going to live, live it now. And that's true wealth. All that we have that money can't buy and death can't take away. And so there's a happy medium and a balance, but there's also something that can derail this planning. Right? What F and it's Yolo. You know Yolo is right. Do you know what Yolo do? You only live once. You only live once. So I got that one right? Yeah, I'd ask my kids a few years ago.
Speaker 2:
9:35
So, but it, but the Yolo leads people to expense creek for example, remodeling a house. It starts off in the kitchen and then it's the living room and it's a bedrooms and then it's the backyard and then it's a front yard and then it's a new roof and all of a sudden you're like, wow, how did we end up here? We see this all the time. Or you start off looking for a house of x and then it's like 1.1 x and then it's 1.5 acts at and it's two and it's 2.2 acts and then it's the taxes associated with that and the upkeep or it's a vacation and you just spend a lot more than you budgeted. And so having some financial discipline is really an all, it doesn't matter if you unexpectedly have to retire, but just it's good practice. And by the way, there's so much talk.
Speaker 2:
10:24
Yesterday I had hours to speak with a gentleman about what the future could be and we're talking about escape philosophy. We've talked about it here on wealth from wisdom, but they're saying within 15 years we're not going to die of natural causes. It's going to have to be an accident because we'll be able to replicate all of our body parts. That's wild to think about it. But you think of the input implications for having to be prepared and really make, make your money last as long as you do. That would be a challenge when Nepal, I mean, and then that gets down to having, right Ron, a disciplined budget no matter what the numbers are in there. Where we see success from people is having a discipline budget, but it can change. So if it does, you know, we talk about all this other stuff. One of the biggest I think areas that get neglected is having a really effective estate plan and in doing estate planning, because when you and I think about, you think about Courtney genie, our kids, the stuff that really matters, it's our family.
Speaker 2:
11:26
And the most important thing you and I can do for our family is when we pass. We want to make sure our estate is protected and it's prepared to take care of our loved ones. Because if we don't do that, our house investments, cars, everything, and we see this all the time tied up in probate and the courts for years. It costs a fortune, can cost a fortune and legal fees. We've also seen many times because of proper planning with the estate planning documents, double taxing by the government. We've got this amazing piece. It's a state planning simplified. It's short, it's a 10 page report. It's easy to understand. It's easy to read and it's jam packed full of great actionable ideas and strategies and the best news, it's free. So give us a call, be one of the first callers and we'll send you this port. (888) 419-8513 that's (888) 419-8513 pick up the phone. This is important. It's important for you and your family. (888) 419-8513 six out of 10 Americans are forced to retire sooner than they wanted. If you were forced to retire today, would you be ready? Coming up next we're going to talk about strategies to help you prepare for the unexpected. I'm Ron Carson with Paul West, so you're listening to wealth from wisdom.
Speaker 4:
12:48
He's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more now back to well from wisdom with Barron's hall of Fame Advisor, Ron Carson. Welcome back. I'm Ron Carson with my cohost Paul West and thanks for joining us today. On wealth from wisdom. We see this
Speaker 2:
13:08
scenario play out all the time. A client is downsize out of a job and they're forced to take an early retirement or their health takes a sudden turn for the worst, or there's a health issue with a spouse or a parent that forces them to quit. Matter of fact, according to a recent USA Today, Paul at happens 60% of the time, but whatever the reason, you're forced to retire so much sooner than you expected and much sooner than you wanted and you're confronted with all of these decisions that have to be made. How do I fit the pieces of the puzzle together? How do I make it all work? On top of that, it's stress. It's in the middle of the battle. Paul and we talk about this all the time, is effective wealth planning is that planning before you're thrown in the middle of it so you're not making poor short term emotional decisions, but it's a well thought out plan in the calm when you can be rational. Yeah. Ron, I always like to think about what are some things we're excited about?
Speaker 3:
14:17
We've had children, we both liked to play. We both actually coached sports. So what do we do as coaches? And I help coach my daughter's soccer team when I was at track meets over the last week and there's all the planning that goes into it, right? How do you prepare, what do you do to get ready for? And then once you get in the moment something happens, the wind's blowing or it's rainy or a player doesn't show up because they can't make it and you've got to change your entire game plan. But then you got to keep going with it. And your life's game plans, no different than sports. I think about the energy and how excited people to get to plan for sports for their own or for their kids' activities or for their grandkids activities. It'd be their own personal plan for their life and where their life and money cross pass around. They don't spend hardly any time prepping for that or getting ready for it or making changes when necessary. And I think today we really need to help people. When life throws these curve balls like over 50% of the time when you got to retire before you don't think, what do you do about it and how do you handle it?
Speaker 2:
15:14
Well, and one of the things that everybody should know is I think most people want to know their blood type. Most people want to know where key and important documents are stored, right? Most people know that, but do most people know they're listen to this, their family index number, the family index number, very few people know their number. It's like what's the number, the return that I need? If things go perfect and if things unexpected happen, like I'm forced to retire five, 10 years before I expected and I don't have the resources I thought I was going to have or I've had to take a job that pays me less than half of what I was making. You really need to know what your number is. It's so, so important. According to Barron's, the Carson group is a second ranked independent advisor in the country. In fact, we're one of a handful of advisors that have been inducted into the barons hall of fame.
Speaker 2:
16:25
We were the very first class, and I don't, I don't share with this to impress you, but to impress upon you what we stand for. We're champion for individual investors and these investors are many of you our audience to this show, but we also have someone else listening and those were financial advisors. We get lots of comments, calls from financial advisors all across the country, and if you're a financial adviser and you're listening to me right now, I've got a message for you. If you've always put your clients' interests before your own, no matter what. Let's have a conversation about becoming a Carson group partner. We have 54 locations across the country and the network is growing every month. Our core values are based on trust, transparency, accountability. We always start with what's in our client's best interest and work back backwards from that if that's how you think you're a cultural fit for what we do and never willing to compromise on these values.
Speaker 2:
17:37
But if you're an advisor that's interested in selling product, making a commission, you're absolutely not a good fit. That's not putting the clients interests first. Lord, how we're rewriting the rules of our profession, become part of our movement, put the client's interest first beach, totally transparent because our profession hasn't been for so many years. And Paul, I'm really excited. Y'All are MTP are massive transformative purpose to be the most trust for financial advice. Everybody claims it, but you got to get past the sizzle and the sale and really look at the substance of the way people are doing business today. Yeah. So Ron, uh, the f word is being thrown a lot out, a lot. Fiduciary, fiduciary thought you were going a different direction or just your dad, not everybody fiduciary. So the responsibility of putting a client's interest above your own. But Ron, I think about you, myself and all the great people here at the Carson Group and many other people, by the way, across the country too.
Speaker 2:
18:41
It's just a fundamental business belief that if you put a client's best interest first, everything else is always going to work out. And it's amazing to me. So around, actually I was a heavy lunch very recently with somebody that was a referral introduced to me and he was actually telling me about, Hey Paul, and I've been working in business over 20 years. He's an executive with a company here in the area around. And he said, I recently met with an advisor who when I was talking with him, he kept telling me, well, this product may be good for you or that product may be good for you. But none of his questions were about the person and what he wanted to do in his life and how he would actually help succeed in his life's ambitions and goals, what we call the family index number. And instead it was, as he delved further into it, they were all that firm's products.
Speaker 2:
19:32
And so it's something that necessarily wasn't in that person's best interest. So again, the fiduciary, how are you really working with people that treat you the way you want to be treated? Absolutely. And you know, and there's great advisers that are in conflicted models. We call it the dark side or the evil empire. And if you're one of those advisors and you're really are fed up with what you're being asked to do to your client. Give Lisa Seanna a Wiki. She's here at the Carson Group a call. We're looking for a few good partners. Give her a call at four oh two eight one [inaudible] 96 81 that's four oh two eight one [inaudible] 96 81 it's Lisa sent a Wiki and we would love to talk to you about, you know, really being part of something special, part of a movement, a part of really sticking up for the client and uh, and, and pushing back all the conflicts in the ways that Wall Street continues to extract money, money from our clients and part of pushing back round, it's our job to tell clients or perspective clients that they're making an irrational decision. And we're seeing this more and more now. And that's why we call it a family index number. So what happens most of across the country
Speaker 3:
20:49
do normal asset allocation. You put some money in this, you put some money in that and you put it all over the place. And that's okay, you're diversifying your, trying to look at different asset classes. But when you do that, what's been outperforming all of them, the general market over the last several years. So in many people's view called the s and p 500 the general market. So now what's happening, Ron, and this scares me by the way, and we have to be very blunt
Speaker 2:
21:16
with people.
Speaker 3:
21:18
You can't do that because what's happening right now is people who don't have a family index number are seeing the returns of the general market versus protecting themselves from a risk. And they're starting to move slowly because they're either doing it on their own or they're telling their advisor they want to do this and their advisors listening to them and not telling them what's in their best interest and they're starting to move into more risk based things, which is going to destroy the retirement when something doesn't go the way they want it to. There, there,
Speaker 2:
21:46
we've seen this a lot taken on, a lot more risk than people should be taking on or comfortable with. Well, you and I saw a stat this morning from uh, our chief market strategist and he said that year to date in 2016 we had had 17 days where the market was fluctuated by 1% this year we've had one, so one verses 17 the vix is at an all time low. That's a measurement of fear in the market. Now when things are calm is the exact time you need to be evaluating what your risk level is. Matter of fact, the easiest way to prepare for sudden change is to practice, practice, estimate the income you would have coming if something happened today. Let's just pretend today you lose your job. Try living on that amount just for a month and if you can't, then there needs to be some adjustments that have got to be made.
Speaker 2:
22:49
You know, this serve it we talked about were referenced just a moment ago, 1,002 retirees were surveyed. 29% said the timing of the retirement was somewhat unexpected. While 31% said it was very unexpected. The Ad 29 31 together you get 60% that's just a really, really big number. You don't want to be blindsided by having sudden sudden retirement. It can be awful scary. Paul, like when we're saying earlier on the show, show me someone who is complacent. You know, show me someone who's saving money for retirement, but they don't have any sort of integrated game plan. They've not been proactive at all, and I'll show you someone who's going to have not a happy outcome. They're probably going to fail. What their plan, what we have that will help your money go further is a five step retirement master plan. We tackle the five most critical components that will have the biggest impact on your retirement and optimizing social security.
Speaker 2:
23:56
That's a biggie. I mean $10 billion are left just because people are not optimizing what's rightfully your benefit. Also generating income and a lot of people have a mindset. How do I get income? Especially in these really low yield environment. Not only is it, it's not hard to do, but the way you traditionally think of income. You'd rather have capital gains for income. Then how to avoid the retirement tax trap. You can get taxed a lot more if you're not careful. Also, protecting yourself from skyrocketing healthcare costs and most importantly managing your downside risk. If you take care of the downside, the upside will take care of itself. There's no cost and you're going to learn a lot and it could change. Everything can make the difference between having a great retirement and not being able to retire at all. Give us a call. (888) 419-8513 you can call and schedule an initial analysis. I won't cost you anything. That's (888) 419-8513 (888) 419-8513 how could you best prepare for the unexpected in retirement and reveal the answer next on wealth from wisdom. I'm Ron Carson with cohost Paul West.
Speaker 4:
25:09
He's a published author and has been featured in Forbes Investment News, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Veterans Hall of Fame Advisor, Ron Carson. Welcome back. I'm Ron Carson with my cohost Paul West.
Speaker 2:
25:24
And thanks for joining us today on wealth from wisdom. According to a recent research study featured in USA Today, 60% you heard me, right? 60% of Americans are forced to retire well before they expected the other downsize out of a job. They're health takes a sudden turn for the worst. A loved one has the health failure and they're forced to quit their job to care for them. If you were confronted with this today, are you prepared to put the pieces of the puzzle together? We're going to continue talking about real life cases, but more importantly, we're going to give you some things to think about. One we just talked about Paul, which I love, is doing the practice. I mean, doing a dry run saying if it ended today, where would I be? And trying to live off of whatever that number is. Just see what that life solid.
Speaker 2:
26:20
You may surprise yourself and say, I can live on a lot less than I thought. Um, but I think it's, I think it's a healthy, healthy exercise to go through. Yeah, I definitely agree. Ron, I mean, and even it's just one month is as good for your experiment. I think of what it's going to do. Is Reset a lot of your priorities in your life to, do I really need x or y or do I want that to happen? So when you're on it, I mean, what are some of the important things that we want our audience to know today
Speaker 3:
26:45
that their financial advisors and professionals should really be talking
Speaker 2:
26:48
to them about? Well, one, I mean the very basics is when do you want to retire? I mean, and by the way, I mean, it may not be, you may not be able to retire when you want, but it's the least, you know, start with what's, what's the future look like? I always believe in going to the end and working backwards from that. Yeah, right. And by the way, not everyone says as soon as possible. Some people want to work for quite a while, but we got to know that. Matter of fact, that's a great point, Paul. I have clients that never ever quit because they're loving what they're doing. But that's really important to know. And so short of them being forced out, downsized, uh, having a health issue, having to take all the things we've been talking about in today's show, they're going to probably continue.
Speaker 2:
27:33
And that's, that's critical to say you got a handicap it a little bit, but that's where that dry run is so important is what if, what if at different periods and that's where we're good at running or whoever you're working with go in and run scenarios so you can immediately see in a pictorial view what things would look like. The other is what kind of accounts are you invested in? This is really important. I mean, if tax has been paid when we pull income out, is it going to be ordinary income tax is going to be longterm capital gains, tax treatment. Do you have any trust? And there's restrictions on how much you can take out of the rules of when you can actually take, take that money out. Um, market volatility, and this is one I, I can't impress upon people enough. I think people have become so complacent and we're running into basically an eight year bull market. We've had a nice run here in the markets and people are taken and stretching and taking a heck of a lot more risk than they should be taken. And now, um, if it's appropriate for the appropriate level, just because the market goes down doesn't make an inappropriate just because the market goes up, it doesn't make it appropriate. So it has to be appropriate for you regardless of what the market environment. Yeah.
Speaker 3:
28:47
So around what you're just telling him, I was telling you a story during the break about, it's a little bit like driving somewhere and you're, you're, you're on the speed limit, right? So right now, because we haven't had a market downturn, people are willing to exceed their normal speed limit of how much risk they're willing to take. And so they're going above that. And how careful do you need to be because of retirement comes up and you were going too fast. Are you going to skid off the road and it's going to take you a long time to get back on the road and how scary, how willing are you? I mean I think we all have that personal threshold of, okay, what am I going to get pulled over for? The risks are a lot greater in retirement and how fast you go above your own.
Speaker 2:
29:25
Well, and we were just talking about this the other day, how far, how fast can you go before you have to worry about getting a ticket? And my daughter Maddie was saying, well, I'm in the four mile club. I think I can go four miles over. And I'm like, well, I'm in the nine mile. I mean I've, I always put it nine miles over and I'm comfortable with that level of risk. But to put this in, to make a fair comparison, we see people that think that's their portfolio's going 60 miles an hour and they're going 150 miles an hour. Right? I mean like if they, if they were in the car experiencing that real time, they would be very, very uncomfortable. And they would panic but they don't know what because we haven't had any sort of real real market event. Another thing that you need to take an inventory on is your health.
Speaker 2:
30:13
You know, it's like you could say, I'm going to work forever. Do you have a family history of anything? How are you feeling? Are you taking care of yourself? Are you getting regular checkups to see exactly how you're doing? What are your plans? If your partner dies, this is a biggie because all of a sudden it could be an income source. It could be that you've already, those assets are Oregon to go. They're going to move out of trust. Maybe they're going to go directly to the children. Maybe they're going into a trust for your benefit, but what that scenario that we talked about earlier, pretending that you lose your job. Also pretending if you're married that your spouse passes on or you have to bring somebody in for, in my case, I mean my wife does everything for me to replace Jeannie and all the things she does on a household would be expensive.
Speaker 2:
30:57
Ron, I can't tell you, and for our listeners today, this is a bigger deal than most people take the time to think about and nothing like the fear. We gotten a phone call several weeks ago from a spouse who said, I can't sleep anymore. I'm scared out of my mind. I said, why? She said, well, our our retirement plan is great right now, but it's all based on my spouse's income and when my spouse goes away, if they're not here tomorrow, that income stops and I don't have another way to replace it. And I'm scared. What do I do? I've never had to spend money before. They've been savers. Their whole lives drawn. So now the thought of spending money out of their account is scary for the dairy. So you have to help make sure she and the others could see a game plan of the way.
Speaker 2:
31:43
Have you thought about that? I mean, you're in the accumulation phase. I'm in the accumulation phase and a lot of times I don't mentally get how people have a hard time thinking about withdrawing money until I think about it being me. I remember my, I remember my first little surgery I had, the doctor said it's minor surgery and he says it's not minor when it's you. I go, yeah I could relate to that. It was gonna be the first time ever I was going to be put under scared me, made me nervous so I can relate. I mean when I, when I, when I turned the the, when uh, when I wear their shoes it's like okay, I understand why because I never thought about taking it out. I've just been accumulate cause I had another income source. It didn't have to be what I actually saved.
Speaker 2:
32:26
You talk about like a quick story. I was Turkey hunting yesterday up north and I was looking forward to a relaxing day. I've been traveling for the last couple of weeks and I just get up there, I'm getting ready to walk out in the field and I get my phone rang cause he's talking about disturbing news. My Dad's on the other line, my dad's 78 years old and he goes, Ronnie? I said, yeah. He says, I've got some very bad and disturbing news. And I literally stopped my truck to prepare for it. And I mean what? He said, my cows fall out of escrow on Friday and I wanted to strangle him. Right. I bet. Yeah. So you know, I thought it was going to tell me someone's just had died. I mean, that's how you get the calls in the middle of the night. And things happened in that case, thank goodness. But it immediately, when you start getting that, a lot of things rush through your mind.
Speaker 2:
33:20
We're talking about doing a dry run before you get that call of true bad and disturbing news. Whether it's a job, whether it's the loss of a partner, whether it's you've got a health ailment that's gonna keep you or you're not going to live as long as you thought you've got a partner. This, depending upon that income. Those are all real issues. So Ron, I mean, no one likes to go to a funeral. And I was at one recently. I can't tell you that everything you think about, and I will tell you because Courtney was there with me at the funeral. You go and start talking further about those things, but unfortunately it takes a life event to happen before you. A lot of times people have those conversations and you need to start at a much earlier because one of the biggest things that happens is, is what if something happens to your partner?
Speaker 2:
34:04
This is one of the biggest impacts are I agree. I mean Paul, you and I talk about the most significant issue surrounding the our listeners money like retirement and like how start taking a paycheck from your investments is a big deal. It's a big emotional deal, but nothing will ever come of it unless you do something about it. Unless you take some action. You could choose one of our local advisors to be your guide or you could choose somebody else. We just want you to choose somebody, but the most important thing you do is to do something, take some action. Let us show you and prove to you how we can make the most out of every dollar you save for retirement and our five step retirement master plan. This plan tackles all the key components of a comprehensive game plan. It includes social security, taxes, generating income. That's a biggie. IRA's, 401ks risk healthcare, longevity, diversification's there's just a lot to making the complex simple. There's a lot of pieces there and we are great at making the complex simple and this will not cost you anything. You've got nothing to lose. Call to schedule an analysis right now at eight eight (841) 900-8513 minutes, (888) 419-8513 (888) 419-8513 if you were forced to quit your job tomorrow, would you be prepared coming up next? More strategies that help you prepare for the unexpected.
Speaker 5:
35:31
It possibly you could pick fewer taxes in retirement and keep this money for yourself. You could learn right here and right now on wealth and wisdom with Barron's hall of Fame Advisor Ron Carson. Welcome back. I'm Ron Carson with my cohost
Speaker 2:
35:46
Paul West and thanks for joining us today on wealth from wisdom. You plan on retiring in the next few years, but you know there's more work to be done before you can finally call it quits at. As we've been talking about on today's show, you could always get that dreaded phone call. Maybe your job's been eliminated. Maybe you get some serious news about a health issue. Maybe your spouse, a parent, a child has a health issue and you've got to quit your job and care for them. According to a research study featured in USA Today, that's what happens to 60% of American workers. If you, if this were to happen to you today, this moment, this situation, would you be prepared? Could you put the pieces of the puzzle together? Paul, we talked about going through a dry run. I love, love the idea we were running through on the last segment.
Speaker 2:
36:43
Really the kind of questions and things you're gonna need to share with your adviser. We covered what do you do or when do you want to retire? What kind of accounts are you invested in? How exposed already to market volatility? How's your health? What if your plans, if you're what, what happens to your plans if your partner dies. Then the next three is your social security strategy. We have covered that a lot, but it's one of those, I don't think we can hit on enough $10 billion a year ago unclaimed because people are not optimizing the social security. And it's one of our most popular workshops that we actually do with our partners around the country through the Carson group.
Speaker 3:
37:19
Yeah. And so as I look at the optimization of it, Ron, it's one of those areas where it's seen as a one of the primary or secondary income sources for everyone. But why wouldn't you want to maximize it every point in time? It's just a, it's amazing to me that people want to leave dollars on the table and it's a little bit for me like watching people who are gambling and just throw their chips away cause they don't put a monetary value with it. They just don't think about it. And social security, you need to be thinking about how that impacts your income. And I think for a lot of our families and people we talked to around the country, you need to have multiple income sources. Ron and I mean not everyone is fortunate enough to have that, but some people it's through a pension, some people through his social security, but most people, it's through your investment accounts that you've built up and you've got to figure out how do I now start spending money or like what I like to call is realize that I'm getting a paycheck now out of what I've spent so long building and how do I make that
Speaker 2:
38:17
last forever. We've talked about the emotional challenges that, but it's reality that you're going to need to, you're going to need to do it. You're gonna need to start pulling from it. One of the things too, I think of we should always mention it, is social security. If you've, if you've done, if you've made an option or a selection in the last 12 months, you can undo it as though you never did it and you can, and it's, it's undoable for the first 12 months. After 12 months, you can't make a change. So if you've selected social security and the last 12 months a year, not sure, give us a call. We would love to let you know, did you really optimize your benefits? And that's (888) 419-8513 (888) 419-8513 the last Paul one is how much will you spend? You know, that's fairly straightforward formula based on your life today and the life you want.
Speaker 2:
39:10
Really. We talked about two family index numbers and the last one is how's your car do a Hansel's one. I think it's so relatable to so many people as we love having a new car and sometimes, I mean we're going through it and they're like, well, I want to buy a new car and not just a new car. I want to buy $100,000 a new car and the car I have as 200,000 miles on it. And sometimes I know the car thing, especially when it relates to retirement, people tend to say, I want to really have a nice, nice new car. By the way, I'm not a fan of, I mean I drive my vehicles, pretty much of the wheels come off. I had a car that had 338,000 miles on it. That's auto miles by the way. And uh, and, but I'm not the norm.
Speaker 2:
39:52
And a car is a big one. You need to be budgeting and you need to put so much money away. All of these decisions need to be made now and the calm of the environment. Yeah. And Ron, I love to watch people's faces as they're planning for retirement and they say, I want x car and whatever it is, it's an SUV or it's a Cadillac or whatever the make model brand is, that's a different, it's their faces. How excited. But what are they ask them to don't think about is their next one after that because they're on a monthly budget and all of a sudden they are not paying monthly and all of a sudden if they need to in the future, they don't know how to account for it. So I know not everyone thinks about are all, I'm not going to worry about it, but it does become an issue later in life.
Speaker 2:
40:36
If you don't drive it forever and you don't know how long you're going to drive anymore. I mean I was going down the road the other day and this person calls me and I swear they had to be 98 and they were driving faster and I were and they were driving really well. So you can be driving for a long time. Well Maddie and I just did the heavy Su Pie hike in the Grand Canyon, which by the way, if you've not done it, I've done the rim to rim and I've, and by the way, that all I can, I've done the world. The Grand Canyon is the most special place in the world. Talking about active, there's a 96 year old that did the hike, 96 I wasn't with them. This was two weeks earlier and then helicopter it up. I'm like, oh cause I couldn't make it out to go.
Speaker 2:
41:14
No, because he was going over to do the rim to rim, which is even a bigger hike and I guess he was a Rockstar. So you got to plan for law. We talked about longevity and last week show you really need to be thinking about the fact that you'll live a long time now and then we're talking about within 15 years breakaway velocity. What's that mean? You're not going to die of natural causes. You need to be thinking about how am I going to make my money last and what are the things I can get rid of if I really need to reduce the payload. Here are five things you can do to build a new plan of action. One is put together a retirement income plan. What's it going to look at in the future? Do a dry run today to evaluate, reevaluate, and then do it again.
Speaker 2:
42:02
Think about needs versus wants. Is that a need? Is that a one? And by the way, I'm all for listening all the ones that you want, but let's also be really cognizant of what the minimum is we could live on explore alternative money making options. What else can you do? Avoid knee jerk reactions. Don't be emotional and you'd run. That one's huge. That has been so big that investor behavior is what drives returns, right? And it distinguished between temporary and permanent choices are really truly is a difference between the two and that's an action plan that will help you enjoy a much better and be prepared if the unexpected happens. You'll on this show we talk about the most important factors that impact your investments and ultimately you, you the individual, your psyche, your emotion, and believe it or not really doesn't matter whether you've saved 250,000 or 25 million, your social security benefits will be the foundation of your retirement plan.
Speaker 2:
43:07
But there's one big problem. We see it all the time, Paul claiming benefits as complicated. It's confusing. It's riddled with all kinds of potential trap doors, and if you make one mistake, it could cost you thousands of dollars in a lifetime of benefits and maybe much more. Learn how to get every nickel out of your benefit. With a customized social security analysis, it will cost a dime. It says 100% free. This is something that Carson group puts out. We put a lot of time and effort and to really educating the public. In this analysis, we're going to show you precisely when to claim your benefits to get everything that's rightfully yours, how you could pay fewer taxes on those benefits, and how you could be eligible for many additional benefits that put thousands of dollars in your pocket every year. Give us a call for this initial analysis. Schedule a time at (888) 419-8513 don't leave thousands of dollars sitting on the table. Give us a call. (888) 419-8513 that's (888) 419-8513 expect the unexpected. Manage the downside. Manage your emotions. The market will do whatever it needs to do to do, to prove the largest number of people wrong in any given moment causes you to make poor short term decisions. No different than having an unexpected separation and your retirement. I'm Ron Carson with my cohost Paul West, and you've been listening to well from wisdom
Speaker 6:
44:46
risk, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement. Right here on weld from wisdom with Barron's hall of Fame Advisor Ron Carson.
Speaker 1:
45:01
Okay. And here's the legal Mumbo jumbo. The opinions voiced and wealth and wisdom with Rod Carson over general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly. Investing involves risk, including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through CW m LLC, an SEC registered investment advisor.