Wealth from Wisdom

Could Living a Long Life Cause You to Go Broke? Strategies to Make Your Money Last!

May 06, 2017
Wealth from Wisdom
Could Living a Long Life Cause You to Go Broke? Strategies to Make Your Money Last!
Chapters
Wealth from Wisdom
Could Living a Long Life Cause You to Go Broke? Strategies to Make Your Money Last!
May 06, 2017
Carson Wealth
Show Notes Transcript

Today, people are living well into their 80’s and 90’s. And it’s not uncommon to know of someone who is 100+ years old. In fact, some seniors aren’t just surviving in their older years, they’re thriving. And the statistics keep improving every year. Join Ron and Paul as they discuss topics and strategies for not outliving your wealth!

Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and welfare 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 SEC registered investment advisor.
Speaker 2:
0:30
This done it. Hit another old time. Records as much as $10 billion in social security benefits go unclaimed every single year. Reserve announced that they will raise interest rates by 203 the skyrocketing cost of healthcare and retirement could now run 350,020 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 Advisor, Ron 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 and welcome to wealth from wisdom radio and with my cohost today, Paul West. Hey Ron, great to be here. Me, Dr. Franklin, Dr Bill Franklin, he's known as the grandfather of allergies in Great Britain. He was a Japanese prisoner of war in World War II. He worked alongside Alexander Fleming who discovered the first antibiotic and it was asked by Saddam Hussein for an allergy treatment in 1979 but the most remarkable thing about Dr. Franklin is that he's standing tall and 105 years old.
Speaker 2:
1:44
He's not just standing tall, he's still contributing to society through medical journals, journals, consoling with people about their allergies. This is yet another reminder that we're living longer than ever before. The statistics are black and white. Soon it will be commonplace to be celebrating your hundredth birthday and it plays a huge role and how we plan for retirement. But imagine this scenario, you and your wife or husband or in your mid eighties you're both active and in good health and life is great, but you're under, you've underestimated your expenses in retirement. And there've been a few surprises along the way and now you're in a really tough position. You've run out of money or you can see that you're going to run out of money far too soon. Unfortunately, this is not an uncommon scenario and that's why we need to take longevity. So very seriously, how many people do you know that are thriving in their eighties or nineties who do you know this sub celebrated their hundredth birthday coming up on today's show, we're going to talk about why ignoring longevity could have serious consequences on retirement
Speaker 3:
3:00
and some strategies that can help you ensure that your money lasts as long as you do. And Paul, this was one of those things that I think we're underestimating how big a deal it's actually going to be. You and I have talked before about, uh, the, the saline Israel saline and him talking about selling ministerial, actually transposes name, who for Co, founder of Singularity University, coauthor of the book exponential organizations. And basically he says the tech revolution and the biotech revolution, we're like less than 1% of the way through it, but the 1% allows the other 99% to come very rapidly and he's claiming within 15 years for every year we live, we're going to live another 1.1 years. Even without that. Today we're seeing some major pain from people overspending their, their assets and it's only been made worse with zero interest rates. Some of the same people that had certificates of deposits, money in the banks, they didn't have to think about it cause they were getting, you know, in the good old days, 12% then 11 then ten nine eight seven six five four three and now they're lucky to get, you know, 1% you know on some of those deposits.
Speaker 3:
4:17
It is amazing. I mean we think about life. There's how many times now do we say that person looks really old. We don't say that as much anymore. We're actually say is, I can't believe how young someone looks. They're 80 I can't believe how someone is activists and equities. I don't remember growing up saying that, and we hear it all the time now and it's really, I think the biotech and what's happening, but it's also, I think people are more conscious. They're more active, they're healthier than ever before. I remember growing up as a kid and you grew up on a farm, and my family's from small towns that, what did you have every Sunday at your family meal? You got to meet yet potatoes, you had gravy and you had dessert. The dessert was pie or whatever it was. And, but now when we eat on Sundays, my family and others, you eat more healthier.
Speaker 3:
4:59
You've been active all day off things that are going to help us live a longer life, which are great, but there are risks and challenges that come with it. Is, is if you live longer, you got to be able to support yourself and support your lifestyle throughout that time. And so, Ron, I think what's interesting is I wanted to share maybe a story with you is when is the right time to retire? Now it's all a personalized decision cause everyone's got to have that right personalized game plan to figure that out. Uh, but it was helping a family recently that mid fifties and like many of you, if you're listening, you just got tired of work and you wanted to retire. So when is enough for you to retire? So this individual came in and met with one of our advisers and they had saved up almost a million dollars in their four oneK run.
Speaker 3:
5:45
So they said, you know what, that's enough. I got enough to retire. Well their mid fifties they made their decision to retire. So they came into us to get an opinion on should they actually retire. Well guess what? When we looked at what they wanted to do and their spending habits, and by the way, $1 million over 54 or 55 years old to 85 and then when we showed them to 95 and 200 the person sitting on the other side of the table didn't like the answer we had to give them. And especially as we showed longevity going out. So our recommendation was obvious. You have to keep working because as you get older, and unfortunately it's too soon, but they had made the decision on their own. They thought their number was enough. But when they saw the reality of it, it was a splash of very cold water, actually ice cold water in their face. But it was something they needed to hear from us.
Speaker 2:
6:38
Well, and the really, it could be enough if maybe a better question would would be, how much living can we get from this pile of money, right? From these resources that we have. And there's really two factors that play into that. One is what kind of life you're going to have. Are you going to be in an RV and not own a home? You're gonna live in a trailer. You can live in a tent. I mean, there are people that do that. They're minimalist sites and we're live on very little. And then how long do you want your money to last? I mean, I would hate to be in a position where I used to tell clients when I first got started. Well, let's plan for your money to last to 100 because if you run out of a hundred, you're not going to know and you're probably not going to care.
Speaker 2:
7:19
I don't think that's true anymore. I think, you know, and I think you care. I mean I have a client right now. Uh, she is pushing a hundred. Um, she's mentally alert as can be. She's consuming quite a few resources cause of, of nursing care. She definitely needs help. I mean her kids are in their upper seventies so they, you know, they're not there to provide, you know, the physical help and they've been, she's been very conservative. Her and her husband, you know, he passed away about 20 years ago and she'll never even come close to running out of money and she had about a million dollars. But the differences, you know, they quit working in their mid seventies right now 50s. And their standard of living was so modest. You know, they lived, they were farmers. They lived on a farm. So you can retire pretty much on anything. Then the question is, will you want to solve for how much you need or the kind of retirement or how long it's gonna last.
Speaker 2:
8:15
I think it's prudent to go into it. Like I may say, I can live on this little today, but really before I walk away, you know, from a good paying job or security that I have, I really need to understand, do soul searching. We have a thing called the blueprinting guide. Um, and if you would like a copy, I think it's, we help live people live their life by design, not by default. What are the values? What's really important to them? And you, it has nothing to do with finances at all. Has to do with what you wanted, your life. So when you get to the end of your life, you say, I'm glad I did. Not that I wish I had with this was one of those things. Because it can be a tragedy either way. Someone lives like paupers and I've this happen too.
Speaker 2:
8:56
I had a gentlemen who lived in Blair, Nebraska. His kids never came to see him, meaning that, you know, I don't know why he was living on nothing. When he died, he had over $3 million and he actually died because of exposure in his house because in the winter he had the heat turned down so low that he basically froze to death and his kids the money in a nanosecond, I mean literally just a few years they were through everything. So that's a tragedy. So you have plenty as you're not living your life and the other is up for spending it. And that's why you need to continuously update your plan. And an effective team is looking at this with you, whoever it is you're working with, saying every two or three years or if there's a major change, either with the, with what you invested in or in your life that you should readjust.
Speaker 3:
9:45
Yeah, right. Ron, you and I have done this before. We're driving down the road or flying or wherever. And the question we've often asked each others, hey, how long are you going to live? And I love having that conversation with you, but I've loved kind of accomplish with everyone because the answer is different all the time. Sometimes people just say an age, I'm going to live to 80 I'm going to live to 90 uh, I think you say what is 153
Speaker 2:
10:06
56 I mean, I did all and I'm not really, I'm not kidding by the way. I mean I did this 20 some years ago. Um, I read something about what was possible and it'll first you have to believe it to achieve it. So I went through this whole process and I would love to live to 156 as long as I'm active and contributing and feel good. I don't want to be just alive. I want to be living while I'm living.
Speaker 3:
10:32
Yeah. And that's how I answered it too, is whatever that age is for me, I hope it's the maximum, but I want it to be where I'm enjoying my life and my life is with my family friends and still being able to do the things I enjoy doing.
Speaker 2:
10:43
So that leads into this question is what decisions have you made over the last few decades that have had a major, major impact on your life? Maybe it was a career choice. Maybe it's who you married, having kids starting a business. If you make different decisions, can you only imagine how radically different your life might have turned out? The question now is what's the biggest decision you can make now to prepare for living beyond a hundred? Cause I think Paul, for people listening today, the many of our are going to live beyond a hundred for the life that's in front of you. Are you really prepared for that? For many people, it's finding the right financial team to ensure you retire successfully. It's not an advisor, a one trick pony, not a team that just does a little of this, a little of that, but someone that holistically looks at everything and I mean everything, taxes, income, social security, estate planning, investments, insurance and your risk and beyond.
Speaker 2:
11:41
Because when all of the things work together, it's a true game changer. Not just with your money, but the confidence it gives you in your life to live your life without those worries. You know, I've been doing this for 36 years and our firm stands for three principles. First of all, we start every decision with what putting our clients' interests ahead of our own by doing it through trust, transparency, and accountability. If you have an advisor now and you're not sure if he's getting or he or she is getting the whole picture, or if you're looking for a financial adviser, pick up the phone and give us a call today. Let us show you the difference a trusted team can make and how we can help you make your money go further and retirement. Call (888) 419-8513 I believe this could be one of the most major decisions and a game changer for you. It's an important call. 1884198513 (888) 419-8513 there were 450,000 who were celebrating their hundred birthday that are living in the world today and that number is growing rapidly. Coming up. Next, more strategies to help ensure your money last as long as you do.
Speaker 2:
12:57
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 Ron Carson, and thanks for joining us on wealth from wisdom. According to our recent article from Forbes magazine, over the last 200 years, life expectancy has increased by two or three years every decade. That implies for those in their sixties you have a 50% chance of living until their late eighties and for those of you in your 50s into the early nineties the statistics are black and white. We are living longer than ever before. It is commonplace today to know someone who is thriving in their eighties nineties even at a hundred as we talked in the last segment, 105 so contributing and seeing patients. This is why you need to take longevity very seriously, especially when it comes to planning your money to last as long as you do.
Speaker 2:
14:03
Otherwise you could be 85 years old, full of life and flat broke coming up on this same. But we're going to talk about why ignoring longevity could have serious consequences on your retirement and more of the strategies that can help you ensure that your money lasts as long as you do. And Paul, this is like a real issue. I mean, I'm seeing our clients active. I mean, I'm always shocked about what they're doing. And my dad's great example, my dad's pushing 80 years of age and you would never know it. He's, I mean, he's planning this big moose and bear hunt. He's going to go up to Alaska and he's doing this and you know, a few years ago he took off and rode his bike from here to Ohio without any sag support or anything. I mean, I have 130 I mean incredible and
Speaker 3:
14:52
his age. So the sky's the limit and he's one of these guys, I think you said, I want to live to 156 he's probably going to be alive at 120 and it's amazing. And it's not only story, I was just, you know, recently saw on the Boston Marathon, you know, that's somebody that ran 50 years ago was still running the Boston marathon. And they're able to do that from their energy and longevity. It goes along to Ron along is now the average life expectancy. So what do you think if you're born, what are you think you can make it to is what the tables are saying? Well, how long I'm gonna make it until you, you already made it a long way. Well, I'm for sure going to make it to 52 52 you mean that part? I think on average, probably in the eighties, mid eighties uh, not quite there.
Speaker 3:
15:37
So 78 if you're bored. But here's, here's what everyone needs to know. So you're listening today. So if you're 65 years old, a man's going to make it on average to 84.3 a woman's going to make it to 86.6 and then however one of four of you, if you're 65 you're going to make it to 91 of 10 of you is going to make it over 95 and I think those odds are just going to continue to lessen. And that tells you what's happening now. So if you think, oh, I'm gonna retire at age 65 right now, that tells you you have 20 years on average. But Ron, that's all based on historical information. That's not based on current medicine and what's happening with healthcare. Well, here's another stat that is, so in two and 1950 a 65 zero 65 year old female out there today in 1950 you're expected to live to 86.6 if you made it to 65 in 2010 which is the least, the last data point that they have, it went from 86.6 to 89.7.
Speaker 3:
16:42
So if you're 65 and you were alive in 2010 a 65, you're basically expected on average to live to 90. Now, what's happened in medical technology in the last seven years, six and a half years, it's mind blowing, right? And it's accelerating at an accelerating pace. Slack, back to, um, so limb, he's male, said for every who found her a cofounder of singularity university that for in 15 years, for every year you live, you're going to add another 1.1 years on. That's basically living, living, and living a long time. You're going to die as something else other than old age. Yeah. Ron, I was sitting there thinking about, so I did this earlier today. I thought it'd be fun. Um, so we have a little bit of an age difference, not gigantic between us put 12 years. So I even though I look younger than you do, you act much younger as well that says, yeah that is true.
Speaker 3:
17:40
Not all of that, but we'll let everybody else be a judge. So I thought I'd be interesting. So I actually put in the life expectancy calculator what it would be. So right now, today, yes. Who Do you think's going to live longer? You or me? Me. You, your, your bias. Take better care of myself. How do you know that? I don't know. I'm just guessing. You're right. So actually if you, if we live, you're actually, life expectancy is 0.3 years greater than mine. So you are at 82.4 years and I'm at 82.1 and that's fascinating. Even though you're 12 years older and it's because of life and what happens is you keep going through things. Now that changes is we both become 70 I gained a couple of years on you. But again, I think that's looking at what's happening with life expectancy and what's going on. But Ron, why this is important is your fear of my fear and everyone's fears as we get older, it's not the fear of what's going to happen to me.
Speaker 3:
18:42
It's more the fear of am I going to run out of money or not. We hear that from more people than anyone else and actually we've seen the surveys and statistics that people are now more fearful of running out of money than they are dying. And I think that's so important because we need to help. There's nothing, no worse feeling, right? All of us love to sleep well at night, but what we hate is, and you're lying in bed and you're tossing and turning because you can't get something in your mind. It's not usually because of excitement. Sometimes that is, but usually it's because of fear and the fear of running out of your money is I'd rather know exactly what I need to save or what I need to spend less on so that my money is going to last. And when we build financial plans for clients, we used to run them to age 90 and then used to age 95 yeah. Now it's a hundred and actually some of our clients I love when I hear this from Iran is it's 110 yeah. And I love it.
Speaker 2:
19:36
Did you request, I love the confidence that I, here's a question for you, Paul. If you could know when you're going to do
Speaker 3:
19:43
die, would you, that's a hard one, right? I, it is. I mean, so part of me says yes because the planning part of me says absolutely. But the other part is you live your entire life. Just thinking about that day. Yeah. I don't know. Would you?
Speaker 2:
19:59
I think I would because I'm a planner and a hope it's not tomorrow, there's a cute joke that my judge used to tell me and it's like Tim and Jim loved to play softball and they promise they were twins. Whoever died first, I need to tell them what it was like. And, uh, and so Jim dies first goes to heaven and any contacts, his brother Tim and he says, What's heaven like? He goes, it's great. He goes, do they have softball on there? He goes, yeah. He goes, um, what's it like? He goes, it's phenomenal, but I got some bad news for, he goes, what's that? He goes, you're scheduled to pitch tomorrow.
Speaker 2:
20:34
I've butchered the dope. But you know, the point is, yeah, I think I would, uh, but man, that would also like, oh, I got this many years left. Exactly. I don't think I want to know how, although I'd get antsy. It's like got near to the more I talk about this, maybe I'm not in that category. So what can they, what's a strategy? Paul is continuously monitor your expenses and then know what you can get rid of. You know, it's like something you've watched the, you know, the planes are going down to the throne, all the excess baggage out to make it, you know, to land you what's the stuff that you are, is not sacred. That if things aren't going as expected or you over assumed a return on your investments or you didn't get the inheritance that you expected, what are the things that you can mentally, I think you'd be thinking about what's my, what's my eliminate lists that you can do?
Speaker 2:
21:26
The other is IC clients given money away maybe to freely too early and they don't think that they're ever going to need it. And you just might. And so there's other techniques that you can use. There's a ways of, for example, in our property retaining a life estate, so you maybe give something away, but you get to live there for the rest of your life. Of course there's reverse mortgages, there's a lot of other things. I think you have to mentally be prepared for. What can I get rid of and what am I willing to do and protect the downside and the upside will take care of itself. You know, you want to protect that you've can keep the standard of living in which you've grown accustomed to.
Speaker 3:
22:07
Yeah. Alright. And I think as we look at this, uh, there's also a lot of positive stories that come along with this because people have fear of retiring or people I fear of running out of money. But unfortunately life does happen and many of us know stories and have clients and family members that have become ill and they get stuck with a terrible disease or whatever it may happen. And you want to, you want to make sure that if these things do happen that you've planned appropriately integrate story of a client of ours is we had a family member, spouse that couldn't stand their job and so they came in and sat with one of our advisors in wanted to do a plan. So they went and did the plan and as part of the plan we had with a spouse retire within four months because they knew the other spouse was sick.
Speaker 3:
23:00
Well guess what? It's not a happy story. But the other spouse passed away almost a year to the date that we did the plan and talking to the remaining the live spouse. She was so thankful that she did retire and listened and said, hey, we're going to spend less because I'm never going to get that year back of my life with my spouse. So if you have someone in your family that is sick or ill, you've got to look at that part of this and say you, you're not going to get any extra time back with them.
Speaker 2:
23:27
Well, I couldn't agree. You and I have a valued stakeholder that they had something like that come up in their family and their, she decided to retire to spend that time not knowing how much time they were actually going to have. So those are all the factors and why you have to look at your circumstances and continuously adjust. So are you blindly trusting your financial advisor? If you own stocks, bonds, mutual funds, you could be really pan out, literally thousands of dollars every year in hidden fees and back to our payments. Paul, you and I continue to be shocked at some of the stuff we see still going on in our profession. And most people don't have any idea. It could be a few hundred or even a few thousands of dollars, but over a period of time this adds up to real money. It should make you furious. You really want to know what you're paying and total fees and really know how bad it is. I know I would. We're going to show you exactly what you're paying in fees, including the fees your advisor may not even know about and you'll never see on a statement. It's quick, it's easy, it doesn't cost you anything. Count on straightforward objective answers by calling us at (888) 419-8513 that's (888) 419-8513 (888) 419-8513 living a long and healthy life is a good thing and the only question is how are you going to pay for it coming up next, more of the strategies that could help you insure your money last as long as you do.
Speaker 4:
25:02
He's a published author and has been featured in Forbes Investment News, the Wall Street Journal,
Speaker 2:
25:07
[inaudible] m more now back to wealth from wisdom with their hands.
Speaker 4:
25:11
Favorite advisor, Ron Carson. Welcome back. I Ron Carson. And you're listening, listening
Speaker 2:
25:17
to wealth from wisdom with my cohost Paul West. According to a recent article from Forbes magazine, there are roughly 72,000 people over a hundred years that live in the United States today. Wow. And if this trend continues, there will be approximately 1 million over a hundred by the year 2050 and Paul, that's right around the corner. The bottom line is you don't know how long you're gonna live. And today we could live a long, long time. That's why we need to take longevity seriously. We need to plan for it. Otherwise you're gonna end up running through your entire life savings way too soon or see it. It's not going to last way too soon. We're going to continue talking about on this segment, why ignoring longevity could have serious consequences on your retirement and more of the strategist can help you ensure that your money lasts as long as you do.
Speaker 2:
26:09
And Paul, one of these, and this is especially relevant today, we have elevated valuations in the financial markets. And so I understand chasing returns is sucks. People in to taking more risk than they should be taking. But today a 20 30% decline. And by the way, those are those happen. I mean, if you go back and look at history, we've had, we've had three 50% draw downs. So it's possible and that can end up being terminal because what happens, people come very emotional. They're like, it's not to come back. Or it may not come back and you never truly know. I mean, we'd go back to the Japanese market. People say, well, mark has always come back. You have the Nikkei was at 40,000 in December of 1989 in a net new, just short of 40 has never gone back there. What kind of bear market is that? I mean, 1989 that's a long time. And so you don't have that kind of her time to recover. So protecting your downside with, we already talked about things that you could cut or things that you could do, but look at the liquid assets you have and say, I need to have these in some sort of protection. Talk to your financial advisor about irreplaceable capital strategies, strategies that carve the heart out of the watermelon but aren't designed to capture all the upside. But they certainly don't capture
Speaker 3:
27:28
as much of the downside either. Or Ron, I mean next year we're going to be 10 years from the anniversary of the global financial market crisis. And I, it's amazing that you saw to be people we've talked to that's out of their memory now that they forget about it. And there a lot of them have got complacent and returns have been fine. They've been good. Not phenomenal by any means, but they've been slow and steady. But everyone thinks that we're operating in a world where you get eight to 10% returns if you're invested in the market. And by the way, that hasn't even been the case. But people think that, but the reality of that happening in the future, I mean you just said it, um, I don't have the statistic here in front of me, but I know something close to once every five years, over a 12 month time period, there's a point where the market declines 20% from its high to as low. So I imagine I've had $1 million in my portfolio and all of a sudden on December 31st, 2017 the market has a bad year and I'm sitting at 800,000. I'm not sleeping real well that that's a scare concern. So you have to make sure your spending habits are based off of what can actually happen to your assets in your portfolio there too
Speaker 2:
28:36
well and the beak, know what it is and then decide whether you can emotionally stand it. Cause a risk always band has been always will be you doing the wrong thing at the wrong time. Investor behaviors, what drives that? Because you didn't expect her to, he can't stand it. So you need to understand what that is for you. What is truly your risk budget. And the other is really RMDs. I mean, when you're taking money out of your retirement plans, Ma, you know we've talked many times about maximizing social security. These are little things that I'm going to call it leakage. There's leakage all over the place and let's say you're getting an extra Starbucks that you don't need or you're the extra cable channels. You're not watching just money that's just being wasted. It's you're not really getting any true life and maybe enjoyment out.
Speaker 2:
29:22
I know a lot of people love coffee and all of that, but is there ways that you can just make little tweaks here and there, but there's also leakage in your decisions. You'll being sloppy with your requirement, required minimum distributions on your retirement plans, not optimizing it, not paying attention to taxes that's leaky. The other is, did you look at your spouse and how would I get the most out of social security? $10 billion is left unclaimed each year. They illegally could be claimed. That's leakage. So there's leakage all over the place. And if you effectively are conscious of it, you're thinking about it and you're continuously updating your plan. Just solving and reducing some of the leakage means the difference. We may be running out of money and never having to think about running out of money.
Speaker 3:
30:06
I love your retirement. A minimum distribution example or RMD Ron, because so many of our clients that we help them, and by the way, you're required, you don't have it
Speaker 2:
30:15
choice there. That's why that [inaudible] that's right.
Speaker 3:
30:19
We actually helped them reinvest it. We make sure that they actually put it back in and keep investment. It's not free money. It's not money you should go spend immediately. It's money you may need to keep for the rest of your lifetime. And I love it. Uh, so this last week, and Ron and my 11 year old came up to me, he said, dad, I think I got too much money in my bank from working and on the yard. And so we had $145 this is a little bit, so we get $145 he wanted to go put in the bank from different chores and things he had done and made me happy because I know if he's going to sit in there as bank, he's going to go spend it on all this stuff he doesn't need. That's great. I'm glad I'm seeing a kid do that. By the way. It was fun to watch his sister then follow his footsteps, but in retirement we need to think the same way. Sometimes if we have money sitting there that we get distributions from whatever you may have, whether it's your RMD or if you for some reason about an annuity in the past, that doesn't mean you have to spend that money. Yes.
Speaker 2:
31:13
Yeah. Well, Mattie, my middle daughter was like that at a young age and to this day she has done incredibly well. She's always been had that savers mentality. She builds money up. She comes in and she invested with us. By the way, if she's listening to this, I couldn't be more proud of her. She's just having a re grand opening. She's, she has the world's best cookie company in the world. Uh, so, um, calling. That's not just your opinion either. Those are great cook. Well, she ships them all over the country. Carson's cookies. She has won lots of awards. But Maddie, Carson, if you're in Omaha, Nebraska, or you want to see her cookies, taste them. They are, I'm a cookie nut. They have to be just right. They can't be cake. They can't be hard. They gotta be pliable. They gotta be big and they got a taste. Amazing. I think you want one right now. Excitable back to back to insurance is one, two Paul Insurance. We're not, I mean I think insurance so often gets overused and over applied, but sometimes it gets under used and under applied. I mean, managing those risks that you can't afford to bear on your own long term care is a huge one that it's man, you talk about a game changer and it doesn't cost much if you start to ensure for this when you're younger, and I mean even in your 50s early sixties
Speaker 3:
32:24
yeah, and it's, it's such a great technique and a lot of people feel like it's wasted money today, Ron. Hey, if I don't use it, I lose it. However, there are new solutions out in the marketplace and we recommend them for a lot of our clients because we don't want anybody to spend money on a premium and then never able to it whether there's new policies that not only allow you to use it, but if you don't, you can still get a benefit and pass that along to your beneficiaries. And I think it's fun to see how the marketplace has changed and evolved because I think it's is a scare for a lot of people out there that all of a sudden you're on a fixed income and now that accelerates because of a long term care expense. How are you going to actually take care of it? Again, getting back to sleep better tonight, it's good to know if that's actually going to be protected for you through a long term care type.
Speaker 2:
33:09
It is, I mean a leakage. Again, just not thinking about it. And now their area, we see that just as sloppy as people don't have enough liability and liability insurance costs very little. I remember one time, we don't actually write it here at the Carson Group. I said, you need a $5 million umbrella policy. They came back and said, we ask our agent, he said, we don't need it. And I said, really? Would he give you a ladder that if there's any liabilities you have, he'll cover those for you personally. And the reason I want to ride it, it cost pennies. There's, there's no premium dollars there. Um, but it sure can make you sleep well at night. A little things done exactly where I can have an astonishing impact. Today, we've been talking about all these different income strategies and ways and leakage and things that gets the most out of your retirement here at wealth from wisdom, our advisors work with all kinds of people.
Speaker 2:
33:53
Some have very little means, some are very wealthy, but the common theme many over a high net worth clients have is they want to know how to optimize those social security benefits. If you think about it over the past decade, decades, you've contributed maybe a hundreds of thousands of dollars of social security and you'll want that money back even if you have a modest income. Yeah, made a lot. You've probably contributed over six figures of social security and that money could go a very long way in retirement, but claiming these benefits, Paul, we've seen it time and time again. It's complicated. It's riddled with a lot of potential trap doors. Make one little mistake and you can leave, literally leave tens of thousands of dollars on the table. Learn how you can wring every nickel out of your benefits with our customized social security analysis that shows you precisely how and when to claim your benefits.
Speaker 2:
34:42
It'll also show you if you're eligible for additional benefits. It can mean thousands of dollars every year plus how you can potentially pay a lot less taxes and other leakage point we talked about and it won't cost you a dime. Be One of the first callers to get your customized analysis at (888) 419-8513 you can't get this report from the Social Security Administration. Give us a call. (888) 419-8513 (888) 419-8513 could you be thriving well into your eighties nineties or even 100th birthday? The statistics are on your side. Coming up next, we're going to continue to reveal strategies that could help you insure your money last as long as you do.
Speaker 4:
35:29
Is it possible you could pay fewer taxes in retirement and keep this money for yourself? You could learn right here and right on wealth from wisdom
Speaker 2:
35:39
with Barron's hall of Fame Advisor Ron Carson. Welcome back. I'm Ron Carson and you're listening to wealth from wisdom with my cohost, Paul West. There are 450,000 Sentara, Sentara Ariens people who celebrated their 100th birthday living in the world today and that number keeps growing every single year. Living a long and prosperous life is something we all wish for, but the question is can we afford it or would it caused us to run through our entire life savings far too soon. We're going to continue to talking about in this segment about why you can't ignore the possibility of longevity and the serious consequences it could have on you and your family and more of the strategy that Kelp you ensure that your money lasts as long as you do. Paul, we've caught, talked about a bunch of different things, the importance from having a diversified income strategy. You know, looking at all the leakage and things that is happening potentially and just decisions you're making and optimizing that.
Speaker 2:
36:41
Having a budget and knowing what you can cut or eliminate. It's really not that important. If you're not hitting, make assumptions about the future. If you're not hitting that three, be realistic about your future health care, medicare, long term care needs. We also talked about ensuring those risks that you cannot afford to bear on your own. Have a strategy for optimizing those social security benefits. Also a plan to minimize taxes. And then for many may be able to go mate, make up catch up contributions where you haven't contributed. Irs allows you to go in, catch those up, get them at a tax protected tax deferred environment. Uh, keep that plan uptodate, continuously readjust and then work with a team that really has all the resources to put your interests ahead of their own with a team that helps you make the complex simple. They do it through total transparency and effective game plan and really give you an advice and common language.
Speaker 2:
37:44
All the keys to being successful. Yeah. And Ron, I would add one more. Don't, don't delay putting a plan together. I mean, as we think about all of this, and uh, in a prior segment we briefly talked about, uh, there's a family we know that, you know, had worked hard their whole life. And like many of us, they were fortunate enough to have children. They got to put their children through education. They then got to watch them go through their marriages. And that's all fun. Those are all life events. Um, but one of them got sick and so they were then debating, do I retire or do I not? And actually is sitting down with an advisor and putting a plan together and a spending strategy in place, which by the way meant cutbacks. They downsize their home, they spent less per month, but they got to retire earlier. That for was a phenomenal
Speaker 3:
38:36
feeling. But we've also had to see the contrary of that. So people think, oh, one year or two years may not matter. But Ron, we, you're just doing a plan for another family the other day and 68 years old. And we told them they can't retire yet. You know what? And that's not a lot of fun when you have to say that, but it is. We've all talked about, we gotta be truth givers and receivers and they were truth receiver and they understood that and we showed them what it looked like that if they work to age 70. So by the way, that's just til next year. The end of next year in 2018 how much better fiscally they would be off at that point in time. And they said, yes, we'll keep doing that because we can see the benefit to us. So don't delay in making a plan or a decision like that.
Speaker 2:
39:25
Here's another one, Paul you just reminded me of it, is making sure that the nonactive spouse in the decisions is comfortable because this is a big IOM making assets last because of all of a sudden they're not part of the process and all of the sudden they're thrown into it. They're probably going to do nothing, which is the opposite of the advice we give and continuously updating the financial plan. So having you both on, you know, up to speed and engage with the team is critical for success. Yeah. Yeah.
Speaker 3:
39:59
I couldn't agree with that more. Cause a lot of time people have that dominant spouse like we've talked about before. Uh, but then if something, when something happens, and by the way this does occur, then the other spouse doesn't have a clue on what to do, doesn't have a professional engaged and all it's going to take is a September or a 2001 is going to take, uh, 2008 fall to those series of happen. And your wealth and everything you left for your family could be significantly impacted because you were trying to save pennies overlooking at the benefit you could give to your family. And I, it's a fear. It's a fear of losing something, right? We talk about it all the time. And I was actually in a Chicago very recently. So when I think about fears, some of us have fears of public speaking.
Speaker 3:
40:48
Some of us have fears of spiders. Uh, what does another fear? Mine. Snakes. Snakes, right. Um, many people have a fear of heights. So I had a chance, we went to Sears tower, which is of course now called Willis Tower. And I took me and my two twins. We went up to, what does that, the hundred and 13th floor. And have you heard about this? They have, you can walk out over the ledge and they have a glass enclosure. So you're standing out on the glass and looking down 113 floors. Actually my hands are getting sweaty right now even thinking about it. But I've seen they're thinking about all the fears have in life. So I took my twins Liam's facility on it and they just walk right out there. And my 13 year old son, Liam starts jumping up and down and the fear in my brain was going off like crazy.
Speaker 3:
41:35
Um, but I think about all of us have these different fears and financial fears is common. So if you're sitting and listening today, it's okay to be afraid of what's going to happen in your financial lifetime. But what's even better for you is, is we may not be able to solve all the problems, but the fear of the unknown versus the reality and the understanding of the known, you're going to feel so much better. And I think that's what we're trying to make sure you understand today is longevity is a risk, but at least helping plan for that risk and having an idea of what that looks like is going to help you reduce some of the,
Speaker 2:
42:15
is that fear? Well, I'm Paul related. You know this plan and you made a comment earlier about getting started early. So critical, I mean I'm a pilot so I fly out of Omaha. Anywhere I go, say I'm going to the east coast or west coast. If I take off and I'm off by a degree, it's an easy adjustment. My passenger and all, I had to adjust one or two degrees and it puts me right on target. If I have that one or two degrees on moth and I wait til, let's say I'm going to San Diego right before I get there, I'm going to be an la and I have to make a 90 degree, very abrupt turn. People are going to go, where are we going? So if you make these adjustments, you start early, you don't even notice it. If you wait till later in life, you can still do it, but you may have to make some aggressive actions in order to put yourself back on.
Speaker 3:
42:59
Of course. Yeah. I think that's a great analogy. I mean, those small little tweaks and especially as they're done earlier in life, can make the world of difference in your alignment of your plan.
Speaker 2:
43:10
So the question we have for all of our listeners, Paul, are you getting just one piece of that retirement puzzle? Are there gaping holes in your planned it could needlessly cost you thousands of dollars? The answer is probably yes. Getting a second opinion to confirm you've covered your basis. Get help you avoid making expensive financial mistakes that could cost you thousands and it only will benefit one person. And that's you. There's really no downside risks to getting a second opinion. Let us prove to you how we can help your money go further in retirement with our three methods to not run out of money. The plan addresses a key components we're talking about on today's show about not outliving your money. You could keep avoiding expensive mistakes that could cost you hundreds of thousands and it could show you how to make the most out of every dollar you've saved for retirement. This analysis won't cost you a dime. You've got nothing to lose. Give us a call. (888) 419-8513 that's (888) 419-8513 the sooner you get started, the better off you'll be. That's (888) 419-8513 I'm Ron Carson with my cohost Paul West. And you're listening to wealth and wisdom, social security, income taxes, estate planning.
Speaker 5:
44:33
Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson.
Speaker 1:
44:43
Okay. And here's the legal Mumbo jumbo. The opinions voiced and wealth from wisdom with rod cars 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 mean 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, an LLC, an sec registered investment advisor.