Wealth from Wisdom

Daunting Challenges for Women in Retirement

March 25, 2017
Wealth from Wisdom
Daunting Challenges for Women in Retirement
Chapters
Wealth from Wisdom
Daunting Challenges for Women in Retirement
Mar 25, 2017
Carson Wealth
Show Notes Transcript

In 2020, private wealth is expected to grow from $14 trillion to $22 trillion. And women will control an estimated two-thirds of that money according to the Harvard Business Review in 2009. Join host Ron Carson as he talks about the daunting tasks that face women in retirement!

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 attended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged and 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 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 205th the skyrocketing cost of healthcare and retirement could now run 350,000 planning for retirement. Today is a whole new ball game. It's loaded with challenges, obstacles, the trap doors, but you can do this and we can be your guide. Welcome to wealth from wisdom with bear and tall. If 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 you're listening to wealth from wisdom radio. If you're a woman
Speaker 3:
1:14
or even if you have a wife, a sister, a mother, a relative, or a friend. What I'm about to share with you may shock you and hopefully motivate you to take some action. The stats are black and white women live longer than men. In fact, 85% of the people who have celebrated their hundredth birthdays, called Santeria ones are in fact, you guessed it, women, and you know on the surface, this may sound like great news and it is. We all want to live longer. I know I do, but it triggers a snowball of consequences that can threaten your financial security because you're living longer. You're going to incur more healthcare costs, more medical expense. In fact, a 65 year old woman could expect to spend more than 235,000 in out of pocket healthcare expenses in retirement alone. You're also more likely to need longterm care.
Speaker 3:
2:16
It's estimated that seven and 10 women will need some form of longterm care. According to Forbes, a private room in a nursing home averages $92,378 and even a simple home health care aide can run $46,332 per year. All this means is you have a real risk, a higher risk of running out of money in retirement than I think most people anticipate to make matters worse, you could face these financial challenges all by yourself. 90% of women will be solely responsible for their own finances at the end of their lives. And if you don't have a plan that could stand up to these challenges, you could be setting yourself up to fail. A couple of about today's show, I'm going to talk about these unique challenges that threatened women, their financial security, and the strategies that can help you conquer these challenges and retire successfully. And really it's all about having total peace of mind.
Speaker 3:
3:22
You know, I've celebrate 36 years and this amazing profession. And one of the things I think has given me some of the most, the most gratification gratisfaction is women that are, have been widowed. We just had one in last week and the satisfaction of knowing that. And Peggy and her husband had been clients of mine, uh, going back to the nineties, and she was actually in with her, with her son and we had a new stake holder up in the lobby and she was giving me a hug and she had a tear in her eye and she said, you know, my bud's been gone now for several years. And, but I don't feel, um, the anxiety that, that I think a lot of my friends feel because I know where everything's at. I know that I've got plenty of money for the rest of my life. He should look something she says, right Ron?
Speaker 3:
4:11
I said, right, right, Peggy and a, and she goes, you just don't know how much that adds to my life. So when you look around, there's a lot of horror stories that can truly happen. They just scare the should and could scare the daylights out of you. I remember having up one of someone in the profession telling me that he was going to refer somebody in to us. Um, and in fact he had met with them and he didn't think there was anything we could do, want to know what, what if we could help. And I said, well, what happened? He said, well, this lady, her husband passed away. She had a wrongful death settlement. Um, she had, uh, three little kids and she put the money with the trust department and they, she had determined and they determine how much money she needed. And over the year she didn't have a lot of interaction with them.
Speaker 3:
5:02
And she, and when she was 70 years old, she got a check from the trust and it wasn't enough. It wasn't, wasn't the right amount. And she called the trust. Turns out, I find initially I found this almost impossible to believe that the trust had been run to zero. And I'm like, well, what about meetings? Did you have meetings? Well we did initially, but there were several trust officers got lost in the shuffle. Then pretty soon the account wasn't that big. She wasn't really paying attention to it and not taking accountability. I guess that's the first lesson I have for you is like your healthcare. You need to ask questions, you need to understand what you're getting and you want to have regular reviews to make sure that everything's on track for what you originally anticipated it was going to be. And this was a point where if you run out of money when you're 70 years old, um, you may have some recourse.
Speaker 3:
5:58
In this case of this lady, she really didn't, uh, because there was all kinds of, of statements and everything sent to her that she really didn't look at, didn't understand what she was reading. But this is a common, this is a common problem out there today is it, it is complex and it's really important that you work with a team that can make the complex simple. My mom suffered from this. My mother was so worried, you know, she grew up poor. My Dad grew up poor. My Dad still living. My mom passed away about 18 months ago, but my mom was, even though I was in the business and could reassure her all the time she was doing well. She still had this, the secure insecurity just about money in general. Matter of fact, Sallie Krawcheck, amazing woman by the way, she's been in our profession for a long time.
Speaker 3:
6:47
She was speaking at the global professional women's network and she had a quote, she said the majority of a fluent women have bag lady syndrome, women value wealth, pro preservation seven times more than the upside. And I think I, I I believe that. I mean that's the first time I read that stat. I mean seven times more. That's that. That's huge. So when you're, when you're looking at what your risk budget is, make sure that you're taking inappropriate amount of risks because you can, it's almost as bad to take. Not enough risk is too much rest because it lets define risk. Risk is just a temporary fluctuation of the account. And if you're too conservative you could almost for sure guarantee that you're going to run out of money. And I had a conversation and prepare for this show this morning with my wife Jeanie and we're having a conversation about money and I said, you know, I'm doing this show.
Speaker 3:
7:41
Do you have any insecurities, you know about money and you know, cause we talk about it, she knows where everything is. She's met with the whole team here, you know, this from will actually handle all of our wealth in the event of my death. And we actually weren't on the same page, believe it or not. I said it's good that we talk about this. We're obviously we need to be talking about it even more often than we're talking about it. And that leads me to another, another point is a lot of the people we work with we're working with because a lot of times the gentlemen, for better or worse has the, has been the decision maker as least in the more traditional relationships. Really. The clients that are getting up in age a little bit and the reason they engage with us as they want to come in and they want to have a team that's ready to make sure that their spouse or wife has taken care of and we don't run into what had happened with the other example I'd give you just a minute ago, which can be be so scary and I really having having a trusted financial advisor is so key.
Speaker 3:
8:44
That's all about trust and transparency. Committed to making the complex simple so you have very effective game plan so you understand what it is, but more advice and a common language which really makes the complex so simple. Also really important to formulate a plan to generate income and retirement and then taxes may in fact be your biggest expense. So critical to have a strategy for that, making sure you're minimizing your taxes, understanding when and where to withdrawal money. That also plays into taxes, especially as it relates to your IRA and your four o one k and then the risk budget. The risk tolerance. You don't want to be too, you know, we have the goldilocks approach here. Not Too much risk, not enough. You want to have just the appropriate amount of risk so you can maintain the lifestyle and what you've grown accustomed. And if it's not possible to do that, you need to do something about it.
Speaker 3:
9:44
Now, not later. And beyond that. Just for example, beyond the same page with your spouse as well. I mean, this morning Jeannie and I were maybe a little bit off, I've actually recorded what I call the death message. You know, it's, um, you know, in the event when I die, here's what needs to happen. This message is for my family. I have another message that goes out to mall. Oh my internal stakeholders here at the Carson group. And then I have a message that would go to all of the external people, um, our clients and partners that everybody. So I've, I've given it a given death, a lot of thought. I don't want to do it responsibly. And then also having a plan to pass your estate onto the people you love. And that's such a critical part of all of that. Just making sure everything's going to work in harmony and you have options when you're, when you have some years left, there's some adjustments.
Speaker 3:
10:33
Little adjustments can have an astonishing impact if you start doing it now and you start doing it the right way. So here's a simple question and it can you answer it honestly and objectively as possible, aside from happy hellos and how's the family and aside from the occasional lunch or golf game, I mean, I get it. I'm, I'm as much friends with so many of my clients. Um, they, they become true friends over a 10, 20, 30 year period. But I think the question has to be ask, especially in light of the stakes, is your current financial advisor truly adding value beyond a doubt? Is your current financial advisor truly adding value? It's a valid question. As a friendship or just to relationship allowed you not to be in a position to ask those critical questions. Are you talking about taxes? Are you talking about social security and income and diversification and insurance, estate planning and health care?
Speaker 3:
11:37
Are you having those annual reviews as or detailed followup? Is there accountability? If you are, if all of that's happening, congratulations because you've got a great relationship and send your financial adviser a thank you, but if you're not, if you're not having, if you're not feeling the value, if you're not having these in depth conversations, then you owe it to yourself and really to your family. Have a conversation with someone else because if you don't, you're the one that's going to suffer. You're the one that's going to pay the cost and it'll cost you in more ways than you'll ever know. Let us prove to you how we can help your money go further in retirement. Let us show you the Carson difference with our five point master plan. I believe you'll be shocked at what you'll learn. This won't cost you anything. Give us a call. (888) 419-8513 eight 88414198513 that's eight eight (841) 900-8513 today I'm talking about the unique and daunting challenges that face women in retirement. Find out what they are. Yeah,
Speaker 2:
12:46
and how to conquer them. Coming out. He seen good times and bad times and he's got the gray hair to prove it. You're listening to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Hi, I'm Ron Carson and thanks for joining me today on wealth from wisdom radio. This is it.
Speaker 3:
13:04
Six are black and white women live longer than men. In fact, 85% of people who have celebrated their hundredth birthday are women. If you're a woman, this may seem like great news on the surface, but it also triggers a snowball of consequences that can threaten your financial security. Coming up, I'm going to talk about the unique and daunting challenges that threatened women and retirement and the strategies that he can can help you conquer them and not only successfully retire, but stay successfully. Retire. Actually, as I was preparing for the show here this morning, Andrew Rogers, who actually as a producer with sharing a story with me about his mother and his father, his mother was sharing what their father that, you know, she was just a little uncertain about where everything was and it gave her a little bit of anxiety. And so for Valentine's Day, his father took everything she needed to know.
Speaker 3:
14:05
And by the way, we recommend you do this with whoever you're working with. Everything should be in one place. You know, we're all the information is where to go, the contact numbers, what to do specifically in the event that something happens, especially if you're doing it yourself. You have a team, they should already know that, any laminate it and gave it to her for Valentine's Day. And she said it was the most romantic gift she had ever received in 30 years. So guys, what a great idea. I mean we all struggle with getting really great gifts for our loved ones, our wives. So this is one that, um, if it's most romantic, one in 30 years, I want that kind of credit. And so it's cheap. You got Kinko's, takes a little bit of time and effort. It's a little thing that really, really make a difference.
Speaker 3:
14:55
According to a research report from the center of retirement studies, women face this precarious path to retirement. We've been talking about it. The report based on findings from its 17th annual survey of workers published in 2016 and releasing conjunction with the National Women's history month finds it. Few women have a high level of confidence about the future retirement. Only one in 10 are very confident that they're going to be able to retire comfortably. In addition, more than half of women are just guessing at how much you're going to need to feel secure once they retire, while they're likely to need more money than men, thanks to this longer projected lifespan, guessing is not an option. Guessing is going to get you in trouble and guessing is just irresponsible, so you can't guess. You got to have a plan and it's like anything when adjustments made now can have a huge impact and really means the difference between success and failure and sticking your head in the sand.
Speaker 3:
16:04
And not doing something. It's just not a really good option. I, yesterday I was in Vegas and I was speaking at the, um, the Forbes conference. Uh, first, first of all, Forbes did an incredible job. It was a first conference they had, I think they had 700 financial advisors from around the country. And by just dialoguing, one of the, one of the real issues is just how many people are not prepared. They haven't done the little things in retirement. Um, and by the way, there's a lot of financial advisors that don't even have their own estate plan. But the real, the real conversation I had was around women. Um, and the, and the lack of confidence that they really have have about retirement. And the fact is that a lot of times what's what's happening is the man of the house is taking over the finances.
Speaker 3:
16:58
Not Always, but more times than not. And you know, they're going to, they're going to die with all the knowledge that they know and they're going to leave potentially a mess behind. And women have not been assertive enough to say, I want to be a part of the process. Really here at the Carson Group, we want people to come together. We need to be part of the process. Every single meeting there should be a memo that goes out about what was discussed and what the action plan is and all the those little things need to be accounted for in a very robust, proactive relationship that makes the complex simple. I was out in Arizona a few years ago and one of the, one of our initial questions when someone starts working with the Carson group is, what would you like to improve, develop or change? And we only know, you know, what is it that's most worrying them?
Speaker 3:
17:49
And sitting down with this couple and they were like, well, he said John Really liked to consolidate things. I got things all over the place. I got accounts at Schwab, I've got a retirement account, I got some stuff with some fidelity. I have some things that, you know, Bank of New York, I've got a little bit of Goldman Sachs and I'm watching his wife as he's rattling off all of these things she's looking at. I could tell she was like well underway at something there. I didn't know we had something there and she didn't say a word though and he continues to go on for awhile and he said, yeah, if we could really have somebody that could help us coordinate all the stuff and all that. He says, really over my life has been a random series of decisions. I've put a little there, put a little there and, and you know, I'm really the person that has to facilitate all that and I said, I want you just to imagine, let's, let's just go into the future.
Speaker 3:
18:41
And those look at it period where you have passed on. What's that look like? And let's assume you don't do anything. You just continue down the path that you're going right now. What's that look like for you? And I asked a question and he was completely silent and probably about, it seemed like minutes. It was probably just a few seconds went by, but I wanted, I wanted them to think about what the future ramifications where it was, go to the end and look backwards here. She finally says, well, I'll tell you what, it looks like it's a mess and I don't like it and everything is up in the air and how would I even deal with that? And she turned her husband and says, we're going to do this plan. We're going to do the plan and we're going to keep this plan current. Right. And he didn't even answer.
Speaker 3:
19:28
He just smiled. He goes, okay, Ron, I get it. Yeah. He goes, this is something that I probably should've done a long time ago. Um, and, and I gotta tell Ya, there's some little bit of effort goes into it. Um, but you want to put a little effort in so you can enjoy all the benefits down the road. And it's all about formulating what are your unique needs as a couple. What are the tools that you have? What are your goals? What are your objectives? What are all the things you want to accomplish? But the big one is, we all have to think about it and talk about it is the fact that the lady of the house is probably going to be there in the end and potentially could live a lot longer. I had a client pass away two years ago. She lived in Iowa One oh 96 years of age.
Speaker 3:
20:17
She outlived her husband by 20 years. She was an amazing woman. She was detailed, but she was smart enough. They were smart enough as a group early on to engage with happened to be with us. But we'll see with a team. And she said, you know, Ron, I never, I never thought I'd spend 20 years by myself, but I gotta tell Ya, it's been great because I haven't had to worry about all this stuff that my friends worry about. You know, I go, I play cards, I do the bowl. She was a bowler as well and that's all they are. They talk about and it's like, boy, putting a little effort into it in the front end has been, has been really great and it's allowed me to really enjoy their retirement. And boy, she was active right up until the day. Matter of fact, if this is what's cool, 96 years old, um, when she was 95, she was actually, she had hurt her shoulder one day and she was out on a ladder trimming, trimming limbs out of her trees.
Speaker 3:
21:12
And I said, you got to quit doing that. That is, you're going to fall off that ladder. And uh, and she, you know, that's how I want to die at the end. I just want to, I want to go out and want to be as effective and and as I can and living life to the fullest. But I also don't want to be worrying about, about the resources that I'm going to have and especially for my wife and my mother worried about it even though she didn't need to. Um, sometimes he can't take all the worry out of it, but let's take as much of the worry out as possible. We do that by making the complex simple, total transparency on fees, really effective game plan and advice is given in a common language. Women have a unique set of challenges. It really, truly threatened their financial security.
Speaker 3:
21:53
They live 85%, uh, or they are 85% of them are Sentara Ian's. They will spend more money on health care. They'll spend more money on medical expenses, seven and 10 we'll need some form of expensive longterm care policy. As a result, they run a higher risk of running out of money in retirement and there'll be making many of these financial decisions totally on their own. And so it makes all the sense in the world that you really, really understand what you have and what your resources truly are. You know, what decisions you've made over the past few decades that have had a major impact on your life. Just think about that. Go back. I always, I spent a lot of time in what I call creative thinking time. I think, you know, I think about the past planned for the future, but boy, let's, let's, let's live in the moment is truly a miracle to live in the moment.
Speaker 3:
22:49
And maybe it was a career choice. Maybe it was a person you married, maybe it was having a child or starting a business. If you made a different decision, can you imagine how radically different your life may have turned out? So the question now is what's the biggest decision you can make now for the life that's in front of you? You know what today is by the way, it's an important day. Today is a first day of the rest of your life. For many people it's finding the right financial advisor to make sure that they can retire and stay retired and the standard of living in which they've grown accustomed. It's not an advisor who's a one trick pony. It's an advisor that looks at everything holistically and I mean everything, taxes, income, social security, estate planning, investments, insurance, your risk tolerance level and the rest that you may have everything because what all these things work together.
Speaker 3:
23:53
It's truly a game changer, not just with your money but with your life really. Your money's just a tool to help you get what you want out of your life. It's not your life. I've been in this business for 36 years. Our firm stands for three principles that guide us with every decision. It's trust. Is Transparency. Transparency as accountability is putting the clients interests first and working backwards from there. If you have an advisor now and you're not sure if you're getting the whole picture or if you're looking for a financial advisor, I want you to pick up the phone and give us a call. Let us show you the Carson wealth difference and how we can help your money. I only go further, but making sure you don't run out of money before the end of your life. Call (888) 419-8513 I believe this could be one of those major decisions that will truly be a game changer for you and your life. That's (888) 419-8513 (888) 419-8513 90% of women will be solely responsible for their own finances at the end of their lives. Coming up next, I'm going to talk about the unique and daunting challenges that threatened women and their financial security and how you can help conquer these challenges and we're tired.
Speaker 4:
25:08
Successful. Is it possible like you could pay fewer taxes in retirement and keep this money for yourself? You could learn right here and right now, unwell from wisdom with Barron's hall of Fame Advisor Ron Carson, welcome back
Speaker 3:
25:26
Larsen and you're listening to wealth from wisdom radio. Men are from Mars and women are from Venus. That's a book that sold more than 50 million copies about the psychological difference between men and women and there are possibly more profound differences when it comes to money investing and retirement. Women live longer than men. Also, they could face higher health care and medical expenses. They have a seven and 10 chance of needing expensive longterm care and as a result, run a much higher risk of running through their entire life savings way too soon. If you're a women or even if you have a wife, a sister, a mother, a relative, a friend, someone you care about and their female, you don't want to miss a segment. I'm going to talk about the daunting challenges that threatened women and their financial security and the strategy can help them conquer them to help you retire successfully.
Speaker 3:
26:28
And we're in the break here and Andrew are talking about, he goes, Ryan, you just talk about Dreamweaver. So my wife and I, um, you know, we have three beautiful kids and what we didn't want to do, and by the way, Jenny and I both came from, we grew up on farms and we had very modest means. You know, growing up in both of our parents really didn't have anything when they grew up. And being in the seat that I sit in, I see so many lives ruined with wealth and money. It really is, is something you think money's going to solve something and you don't have any right now it, it, it may help a little bit, but too much money ruins lives. And so we had a conscious decision, we did not want to, did not want to leave our kids money. So we've told them their whole lives are going to get nothing and we're going to get a little more than nothing but not a lot.
Speaker 3:
27:19
So we were faced with, we've been blessed to have done well economically and so what are going to do with our money? And so we started Dreamweaver foundation. I'd love for you to go look at, it's dreamweaver.org and we provide end of life dreams for the terminally ill, less fortunate elderly and wow, what an eye opener when we, first of all, lots of females, you guessed it because the husband has passed away and a lot of them had is we get to know and we do, we get to know our dreamers, they had good jobs, they had opportunities to have a different outcome. And the one of the things that we've noticed as a lot of the dreamers, we help, they've given most of the resources to other people, kids, friends, relatives. And they did it because I don't think they ever realized that there may not be someone to give it back to them when they really need it.
Speaker 3:
28:19
So it gratifies us to be able to do this through dream weaver. But it also was a shock to see how many women are left to make these decisions by themselves. Yesterday's in Vegas, I spoke at the inaugural Forbes Conference on investing and what's going on in the world of wealth management. And it was a common theme. Many conversations around, you know, women that are all of a sudden thrown into in a moment, you know, having to make a ton of decisions on a subject that they've really not dealt with her entire life. And it can really be daunting. And that's why at Carson Group, we've am I going to say we specialize in it, but that's one of our most common scenarios is a couple comes in the man of the House has done it their entire life and now he realizes that either health isn't good or what if something were to happen to me and they need to hire a team to really do this for them and it, and we have many widows that we've worked with for 10, 20 in some cases, 30 years.
Speaker 3:
29:24
Um, they've lived that long after and they've had, you know, they've had to do it by themselves or with us, with a team. Really made it my cheesier and he'll, what should you be looking for if you're looking for a team? First of all, someone's going to be really patient and they're going to ask good questions. Pull Portland, they're going to listen to you and they, and they're going to take the time to educate you and really engaged with you and your children. I think, you know, being children being involved is, is sooner is way better than not having them involved at all. Also someone that's not going to take a salesy approach in order to be sold. You want to do business with someone based on the strength of what it is they do, their value proposition. I mean I, you know, there was a time in, in financial services where was all just about the relationship and if you sit down at a cup of coffee or a drink and you liked him, you did business with them, he can't afford to do that.
Speaker 3:
30:17
You need to ask really good questions. You need to understand what you're getting. Because believe me, all the value propositions out there are not created equal. They're really different. Most women are more risk adverse. This can also create a problem cause you may not take enough risk to get the appropriate amount of return them. So you want to be careful that it's strategic in the way that you think about the team that you choose. Don't, don't hire someone who's going to tell you just what you want to hear. That doesn't work. And really the five keys to success, trust, transparency, reliability, understandability, sensitivity and thoughtfulness. If you're getting that from your team today, send them a thank you. And if you're not, I'm going to just in a minute here, I'm going to let you, I'm gonna give you a number. We can give us a call and we would love, we would love to be part of helping you do that.
Speaker 3:
31:18
There's so much misinformation out there today too. You know, you'll watch CNBC, you'll watch fox, you read stuff. I mean there's just a lot of static and there was a lot of noise and you have to be careful that you don't get sucked in to to the noise because the noise can also get you really off track with what it is you're trying to accomplish. And remember, remember one thing is, and I can give you this from 36 years in this profession, the people that are most successful, um, don't really don't react to the short term noise and most investments that have ever been owned, people do not get the return of those investments. Dalbar does a study every year and the difference can be huge. It can be four or five, 6% a year because people are emotional. And what happens if you haven't put a lot of thought into an integrated holistic game plan, then you're going to make the wrong decision at the wrong moment.
Speaker 3:
32:17
I mean, think about decisions you've made in the past. If you ever have you ever sold something that went up or bought something in a high, it went down. You didn't know why you sold it. You really didn't know why you bought it. And we call that guessing. Gone are the days cause we don't, I think, I don't think we're in for a secular bull market. Look for strategies that can do well in any kind of environment. Um, also that you're not going be emotional too. And understand why you own everything you own in your portfolio. And it's not something that you just guess about. And if you're a woman, this segments all about that. The show today is all about that is you have a unique set of challenges that could threaten your financial security. Uh, you're going to live longer than men, 85% of Santeria and today are women.
Speaker 3:
33:03
You're going to spend more money on healthcare and medical expense. Seven and 10 of you will need expensive longterm care insurance. And as a result, you run a high risk of running out of money in retirement and you're going to be making, if you don't have a team, you're going to end up making all these financial decisions on your own. And that's absolutely positively not a good game plan. So are you blindly today trusting your financial advisor? If you own any stocks, bonds, mutual funds, you could be shelling out thousands of dollars every single year in hidden fees and backdoor payments. By the way, this was a dirty secret that I hate about my, I love my profession, but there's a lot of parts of it that I don't like and this was one of them and you may not even know it and it's not just a few hundred or even a few thousand dollars.
Speaker 3:
33:56
It could be thousands and thousands of dollars and over 10 20 even 40 years. This could easily add up to more than six figures and it should make you furious. It makes me furious. Our profession has to be better and always putting the client's interests ahead of its own. It's not always done that it still doesn't always do it. You need to demand it. Be An advocate and work with firms that are our consumer advocates, like we are here at the Carson Group. So do you really know what you're paying and total fees, you know the total cost. Do you know exactly. Is there an alignment of interest? Is there any conflicts will show you. You come to the Carson grew up a show you what you're paying in fees, including the fees your broker doesn't even know about. And that you've never ever seen on a statement. It's all about the total cost here. It's quick, it's easy, there's, it's won't cost you anything. It's very straight forward. It's objective, memorized said, make. We make the complex simple. We do that with advice and a common language call. (888) 419-8513 that's (888) 419-8513 we all want to live a long and prosperous life, but longevity could come with serious consequences. Coming up next I'm going to talk about what those consequences are for women in the time
Speaker 4:
35:18
he's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to welcome wisdom with Barron's hall of Fame Advisor, Ron Carson.
Speaker 3:
35:31
Welcome back. I'm Ron Carson and you're listening to wealth from wisdom radio. If you're a woman, even if you have a wife, a sister, a mother, or a relative or a friend, it's a fact. Women live longer than us men do. That may seem like great news on the surface, but it triggers all kinds of consequences that threatened your financial security because you're living longer, you'll incur more healthcare and medical expenses. You have a 70% chance of needing expensive longterm care and all this all adds up to one big thing. You run a higher risk of running out of money and retirement. And coming up here on my final segment, I'm going to reveal more strategies. We're going to talk about things that can help you conquer the idea of being able to stay retired and the lifestyle in which you've grown accustom. But our fact, one of our partners down in Quincy, Illinois, um, they were talking about, he says, Ron, we worked with a family here in Quincy for quite a while now and unfortunately the husband passed away last fall.
Speaker 3:
36:35
He had managed all the family accounts for as long as they had been married. A few theme here, right? You've heard me talk about this in the previous segments. Few months back. The widow came in to us with questions about how to make the best decision about handling their separate IRA accounts. She came to us after one of her friends had shared that she had to pay a penalty after taking money out of her deceased husband's Ira. Knowing that the IRS is not very forgiving about how accounts are titled. I was incredibly grateful that we had completed a financial plan for the family prior to the husband's passing. It could confidently tell her that she would not have any penalties or issues taking the income she needed from her husband's Ira. Again, planning had already been done. It was simple and it goes on to share another one.
Speaker 3:
37:19
He says, you know, this is about a married couple. I'm trying to save for their child's future. He said that they, this couple wanted to understand their education funding options cause they would like to have 30,000 set aside for their kids post high school education and 10,000 each for wedding down the road. And in the situation they crafted for them. Um, a balance of the education, wedding and retirement and looked at it as a family unit. It was important to know which education accounts would be available and their state and the potential tax benefits using five 29 or other education funding accounts on the wedding side. Clients can take advantage of the Utma and Ugma accounts for special purposes like a wedding or a car purchase or to gift money to their children using these types of accounts. And we also shared that there are certain advantages to funding a traditional IRA for purposes other than tax savings.
Speaker 3:
38:13
If you follow the IRS shows you may rules, you may be able to take non personalized distribution for funding qualified higher education expenses. Sears a lot there. And this is where you don't want to do it on your own. You want to work with the team, you want to make sure that that you have, you have a team that can be with you for the balance of your life. And today we're talking about women and the unique challenges they have because they live longer. In a report released by the in 2016 by health view services, a 65 year old woman has a life expectancy of 89 versus 87 for a man of the same age. According to this report, a 65 year old woman who retires this year we'll spend more than 235,000 on healthcare premiums over her remaining life expectancy. For men it's considerably less because women live longer.
Speaker 3:
39:04
They will have more years to pay premiums and these out of pocket expenses in a key to this too and not running out of money as deciding when you're going to take social security benefits out. This is another area that we find a ton of mistakes are made and it's just plain soppy and people are not thinking through what all their options are. So for many women, your social security benefit is going to represent between 25 and 60% of your monthly income during your retirement. If you've not done this doing it assessment, there are hundreds of different combination and an options that you can take for this. I'm going to give you a number in a moment. We can help you with this. Also, one of the things that you should be doing or thinking about if, if you're not going to have as much money as you thought and retirement is downsizing the residents during retirement.
Speaker 3:
40:02
Um, and a lot of times this was very, very effective. You know, it can be more word practical, move to some affordable housing that has little or no maintenance. And you know, planning has many, many parts. It's an ongoing process. It, it can seem complicated, you know, work with a team that makes it con the comp, the complex, simple. Um, but really understanding what your options are and be proactive. You know, with the team. Have someone that's going to work, be with you along the way. They can make adjustments as things happen. And we are all about a trust, transparency, accountability. Um, women have unique set of challenges. They live longer than men. 85% of women are this [inaudible], they're going to spend more money on healthcare and medical expense. Seven out of 10 will need some form of longterm care. As a result, they run a much higher risk of running out of money in retirement.
Speaker 3:
40:58
And the worst part of it in my mind is, are going to be making these decisions on their own. If you don't have a team, you know, my mom worried a lot about my, about money, my wife, um, I wouldn't say worries a lot about it. I'm in the business, we've been very proactive about it, but you know, deep down, you know, she's not because I'm in the business, she's probably not been truthfully is involved as she as she could. And you know, yesterday I was in Vegas speaking at divorce, a inaugural conference. And this is not just a theme, um, in the Midwest or the west coast or the east coast. This is all over the place. I mean, people are having issues with your planning properly. And you know, the, in the 80s and even the nineties, we had a tailwind. The markets just went up.
Speaker 3:
41:45
You didn't have to be as precise or as intentional about the things you were doing and the market would bail you out. And that's just not the case anymore. And an Andrew Rogers, who's our producer here, shared a story with me. I shared on a previous segment, but it bears repeating his mom and indicated to his dad that she was a little uncomfortable about where everything was and what she should do in the event of his dad's death. And he took everything, every contact, every person they needed, every important number, whether it was a combination account, number, a password, everything, and laminated it and gave it to his wife on Valentine's Day. And her reaction was that that was the best gift, the most romantic gift she had ever received. And so I thought, wow, that is really cool. It's, it's, you know, it's the, it's the things that can really make a difference.
Speaker 3:
42:32
And it was thoughtful because he say it's something that she worried about its way. He can take care of her even when he's gone. So it is important. So as a woman, do you worry about running out of money in retirement? I know many of my female clients around the country have shared their concerns about running out of money with me and the stats are black and white. You're going to face higher health care and medical expenses in retirement. You have a seven in 10 chance of needing long term care and it's not cheap. It's expensive. Unfortunately, as a result, you run a, you run the real risk of running through all of your money way, way too soon, and if that weren't enough, you're going to face. Many of these decisions on your own are Carson group advisors across the country understand these unique challenges you face in retirement today and we work with women and all stages of life.
Speaker 3:
43:28
I mean through the accumulation stage of the distribution stage. You really want a team that can be there with you all the time and as your complexity grows or even narrows and it really doesn't matter if you're single, married, divorced, widowed, we can show you how we can help make the most out of every dollar you save for retirement. With our women and wealth blueprint, women in wealth blueprint. This is a customized analysis designed to address your specific needs for income, social security, taxes, healthcare, longterm care, estate planning, and a lot more in this initial analysis will cost you a dime. You've got really nothing to lose. So if you've saved at least a hundred thousand for retirement, be one of the first callers to give us a call. (888) 419-8513 eight 884-ONE-FIVE-4198Y-5 13 don't leave retirement to chance. (888) 419-8513 I'm Ron Carson and you're listening to wealth from wisdom radio
Speaker 1:
44:33
and I'll see you next week.
Speaker 4:
44:34
Risks, social security, income taxes, estate planning. 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:
44:48
Okay. And here's the legal Mumbo jumbo. The opinions voiced and wealth from wisdom with Rod Carson 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.