Retirement Income  

You're listening to the Truth Network and TruthNetwork.com. Welcome to finishing well brought to you by Cardinal� Certified financial planner belonged to Schild, best-selling author and financial planner helping families finish well over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started. Finishing well welcome to finishing well today was certified financial planner on child today so were talking about retirement income and a little bit about, you know, working with other people in relationship. I guess that's, you know, what's going on there and I was good until short story about a couple weeks ago I was involved in the event that it was a ministry event and I was really kinda hurt by what happened in the next morning I was essentially mad at God, and I was telling him all about all that in prayer. Early morning like I often pray and I was really really upset. I been upset all night and I woke up in the morning upset I been upset for a while and talk all sudden.

In this prayer time. Jesus just kind of said to me, Robbie. You trust me in any said it in such a way that like in his presence is full of joy. I mean like it. It was like oh yeah Lord I trust you, and immediately it was like it was like I'd taken a pill of some kind that went from being really really upset 20, I'm good because I could feel in my heart that this was. I was completely in a good place if I could trust him with whatever was going on now. He threw that word out to me knowing that I would begin to study that word and think about that word and the site studied the word trust, which is critical to retirement income. By the way, if you put that together. But the word trust. When you begin to look at that in Hebrew. It it the letter starts with this, like, it looks like a wedding hoop and has everything to do with the wedding and the second letter and it looks like a wedding ring and so as I was looking at this one has to do a trust or talk about marriage. I mean clearly I thought well yeah he's my future brought you know that's kind of what Jesus isn't. So yeah, and there's a lot about in a Jewish wedding where they get married under Hoopa and the bride goes around the groom seven times so that you know he will trust her to let the walls go down of her heart, which is all a lot to do with relationship and then while I was pondering all that I want to think and now all this has to do with the number 15 in Hebrew and like oh my goodness it's it's October 1 15th and also I went all my wedding anniversary and I thought I was so upset about the other thing I forgot my wedding what you think it in and it was like I learned something that two things about trust that I think are extremely helpful. Number one when Jesus said you trust me he knew something I did not know that moment, which is today's your anniversary Robbie so there's a really good thing that I trusted, but also it was that that that sense of trust in Hebrew actually is almost like medicine but you take a pill that you'll feel better. Well, if you could find a financial advisor that you really could drop down the garden of your heart and let him into the situation and believe in them that way. Hans, it would make a lot of people feel a lot better.

It's a struggle from your end would wear yeah and so we we struggled a bit about the show as we always do.

First of all, naming the show and then really just zeroing in on what the topics are and what what it is we want to teach the listeners out there and this show is always a struggle because one of the reasons I think is that we a lot of folks out there before they met me and they've met us and met our firm in the read our books and listen to us on the show. They Think the investment that's all we do.

Remember, certified financial planner and so there really going to define us by how we can invest their money will come in return we can get for and so I always view that when I'm dealing with a new client that that is one of the first things that I'm going to need to get clear with and this is one of the things we do is invest your money and we even do this at different differently than the rest of the mainstream because were more concerned not with the return on your money that were concerned about the income that your money can produce both out of principal and interest and how long this can last in your retirement so to be clear, were more focused on how much money you can live off of and spend a lot of your retirement savings in your investments. How much monthly income or yearly income. Can you pull out of these things safely, and what kinda guarantees do you have that that money is going to be there for you in your old age. So what I'm understanding is you got these seven areas that are in your book that are outlined in the seven chapters and you kind saying that investment is just one of the seven long-term care, Social Security, Medicare, IRA's taxes. Those things were all part of the overall equation that is is really from your standpoint. More important than any one of them standalone because it's not gonna be in a vacuum will absolutely then a minute tell you is this is probably the easiest one for the armchair quarterback to have an opinion okay and it is the easiest thing to think that they understand. So in other words, if if you're coming in to see me or you listen to me speak. Are you reading my book when you get into the Social Security so you can get lost real fast. Same thing with Medicare long-term care and certainly investing has a lot of complicated stuff that is basic level is you you invest money and when stocks are put in the bank or by bonds and the end of the year there there either worth more than the beginning of the year of their worth the same as the worst lesson. It's it's typically it's quantifiable, measurable, and then most people have some experience, at least with money and Dave perhaps headed in a 401(k) so they been managing so I'm trying to make is virtually 2.1 is is that people many people think this is all we do is we take your money and then we got a secret sauce that's a little better than the next guy's secret sauce. So we think and then Morgan invested in these stocks and bonds and then we believe in working to make you believe that we can make you more money than the next guy.

Okay and we do way more than in fact, I don't know that I'd be. I'd make that argument to use its resources. People tend to define us. By this, one of the seven worries of this chapter's investment that's that's the people on the outside looking in, that are defining us and then really the second piece is as I look at the money in retirement and retirement savings more from an income standpoint than I do from our returns or investment standpoint, and I just know a dovetail that point is, generally, you need to be conservative when you get to retirement. You need to need to have your money invested safely to have smaller amounts of it is risk at risk and as you age that needs to get smaller and smaller and smaller and that goes against getting high returns of those two things don't go together so stories okay why I just think about this lady came to me last night by referral in dealing with her over the phone. She's a nurse down in Charleston. She can start listening to your show on the podcast is and always available and she really my first meet somebody I think you know what what sort of problem are we trying to solve here what what what is the problem that is you see a mental come right out and say that but I just talked to them a little bit and you know what her problem is she'd like to retire in January or February get through the first of the year and the beginning of this coming year 2020. But she's already come up with the solution. If she can't retire then. Her solution is. This can be to keep working and have her husband keep working even though they don't want she's got the problem. Define and then if she discovers that she can't retire, then the solution is we just keep working.

You know were not happy doing and so is a dig a little bit further.

She keeps tell me she just is never enough in her 401(k). She just hasn't saved so you talking about his 401(k) and but I'm kind again the deal is.

She's the primary earner in heaven asked a lot of questions and so what will the first place we went was Social Security and Sandra need to get on Social Security were going to need to see what your Social Security checks company will then come find out she had filed for Social Security two and half years earlier.

She's almost 68 still working.

He's almost 70s they had filed when they were full retirement age background 667 collecting Social Security and then they been paying taxes on that Social Security even have it withheld. But it was still pretty nice so we write that down on piece paper we get theirs to Social Security checks and then she then I find out that the hospital she works at used to have a pension the switch due to a 401(k) like 15 years ago. 20 years ago. She's entitled to a thousand a month out of that pension burden look into that. Believe me, but I just as she understands that if she retires in February, so start adding up to, so it they have $5000 a month before they even touch their investments or savings and add to that, we talked about this last week. There is a tax savings is all she had were the two Social Security checks in the pension which is just $12,000 a year thousand a month. She's going to pay no income tax. So then I asked her. I said can you live on $5000 month after-tax.

You know she had no way to answer that question because she has really dug in there, but the reality is, as I get the sense that she can so now were looking at this 401(k) money and the investment of an income can produce in a whole different light. Because she doesn't really need more money out of it. She expects more money out of it, but there are some other problems with it in the sense that besides some money she's got on the sidelines, which is a lot if that's your only savings account and that money that's in the 401(k) which between she and husband by 360 grand which is a good bit of money if they were all of a sudden gonna pull out they needed to pull out 50 grand. That money for some expense three or four or five years from now and then their income shot up by 50 grand in a given year.

Now they can have to pay tax on the 50 grand there and have to pay tax on the Social Security as well. So it's not as simple as just saying okay we get this much money we can invest that we can get this return right Nora taxes and get our percentages as all kinds of pieces to this puzzle, which gets back to trust like you know you're working with somebody that does this for a living. That does every single day. So one of the ways that he does that is through this book Ricardo guide to planning for living retirement, which is of the website part of thy God, we come back, moron, retirement income and what can happen when you Hans and I would love to take our show on the road to your church and Sunday school Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hahn's expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to Cardinal guy.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic group contact Tom Cardinal guy.com that's Cardinal guide.com welcome back to finishing well, a certified financial planner Hans Shotwell were talking about retirement income today trust like what could happen if you actually you know a lot opened up your book and said you know what maybe this person helping me knows more than I do. And maybe they're trustworthy and we got a situation like this, you been working with.

We been talked about our our lady from last night so pick up where we left. Well, it just this lady is in a lot better shape than she thought she was in. They have in their two 401(k)s about 350 grand in the really in the immediate future really don't need any of because I think they can live just fine off of the five grand.

And then besides the 401(k)s of 350 grand. They have about another $75-$90,000 miscellaneous things that she inherited some money. So they got some nonqualified money that sitting there is a is is really a savings account which people in retirement need is what you don't want is some year you got it dump into that 350 grand. Take a big hunky throw everything from a tax standpoint on whack okay so you need to have some money that's not IRA money over here on the side and for those of you that don't have that, that's can be my first priority is to begin pulling money out of that IRA paying the taxes on it and then just saving it or investing it over and some that you can get your hands on short order without paying tax. My overall goal with her providing she's in sync with this is to preserve and protect the 350 grand into come up with an amount that we can take out of there every month but yet where we can guarantee that if one of them or both of them live up into their 90s when I can be run out of money that that that That fund is going to shoot off an income to them for the rest of their life that speaks of annuity certainly was part of it and then we also could possibly save some of the five grandma.

She may not need that net tax-free five grand a month all to live on me. So then we may be able to save some of that is going to build her nonqualified savings just so that she has some things that come up in the future, and I don't think she has enough money to really take a lot of risks in the stock marketing sheet much told me that on the way into some guy at the bank was trying to sell her some type of portfolio and she decided put it in a CD should just soak it into she's typical about that. There's a lot of people that really have a lot of questions about stock market investing and they really don't have enough money given their whole situation to put their money at risk 68, 70 years old. So what about long-term care in this. Yeah. I mean that's that's a problem we have an address. We also have a problem if one of them dies before the other and then the other one lives on for a while.

Then we got that five grand a month is in jeopardy just before meeting agenda, long-term care, and talk about life insurance is that is is that there either one of them dies and the other one has to live on single has to live on for a while they can have a significant loss of income. So were going to need to either cover that with life insurance or take that into account with the 350 grand and how we have that set up so that we start And that up to replace the income we have life insurance and then with long-term care we can package all that together to where the long-term care comes inherent in the life insurance so again will I haven't gotten that deep. I was just getting into the investment thing with her but life insurance and long-term care considerations for now something that I wanted and she was really good this way because she just came to me with worries okay and no worries. A lot of times are pretty easy to deal with when you're me because you just need to get all the facts and piece of paper. I talked to her about an hour. By the time is done. She's a lot better shape than she thought she was and I installed all her worries, but when I'm in a contrast that with is there's many people to commend me and they've got some you will want to call and preconceived notions. They've got some things about the particular subject like investing that are just things they know and feel are true and things that that through their coming in and there one to tell me I need my plan to include this.

When you invest my money. I need you to do this and I expect you to do this that type things and I'm always listening to those things.

And frankly, if there too out of proportion. There are some people that I don't take on his clients because I don't want to take on a job where I got unrealistic expectations. Okay, this is fairly common and I give you an example of one of those is to recent client that must been a client for about a year, which is becoming a much bigger client and these people are pre-well-off and they put their money in a lot of different places, but what I want to get clear on is this lady's room good negotiator.

Okay, I just I just really get that sense in negotiating the time of our appointment, the length of it where it's gonna be you know what she's invested in what she expects out of it. I mean she just an end and that's fine minutes. This kind who she is in one thing she's thrown out. There is, is that you know within her business.

She's got a given that she could keep any amount of money in her business invested in what she does for a living. She can earn 8% is just she can have that whole conversation in 30 seconds.

You know, and far be it for me to refute that.

But she's bringing that up because that's the minimum that she expects me to earn on any type of investment that I get her involved in and that's just that's an example of just an unrealistic expectation is should. She's just expecting too much of me to get 8% of and this lady is in her 70s and her husband is in her 70s still working and just an unrealistic expectation and as if you really punch into that she can earn 8% risk-free human. She's hiding some expenses are she's absorbing the thumbnails in you.

Note we certainly could get somebody an 8% return, providing a couple things number one that the markets do well over the next 5 to 10 years and they don't have a disastrous year and the second thing is is that they're willing to take a lot of risk and people in their 70s. Generally are not wanting to take a lot of estimates really hard stuff for a stock market decline at any. But if you're 80 years old and you just wake up to the offenders you're worried about Stephanie. What's the point. So at just what I'm making a point in the story is pay attention when you go in to see a new financial advisor, a mute find a layout expectations, but pay attention to what you bring into the equation which are bring into the relationship. What happens on somebody like watches Fox News quite often and may see a commercial for gold in there like I need to be protected.

What happens all the time. I want to put that goal.

I have clients existing that call me up and tell me they wanted to get sold stuff a lot, but I mean I've got some real good stories with those with one that that that kind of stuck like I'd never forgotten yet that one poor lady that yet.

So we met this lady was not a client, but her husband passed away a few years for neatness and she she's doing the best she could and she was really taken advantage of by several people, not just the goal.

People housing contractors and different things and she's really well, but she put $200,000 in gold coins okay and then she's just tell me all reason she did. She didn't really want to do any view she want to leave that right word is and I'm like okay just thought my job to tell you the gotta move all your money around. I just so right word is where exactly is that mean I just so we started digging into the thing we ended up charging her a very reasonable fee and we just really want to locate all her money and she had stuff that in her deceased husband's name and then they never probated in a state with him so we had to get to the attorney and then heat. There was still stock certificates that were in his father's name her father-in-law's name and he had died 25 years ago thing stuff was a mess, but she took some of the Roth IRA money cashed it in and put in gold 200 grand and what I later found out it wasn't in just pure gold. It was in gold coins and so they get into the marketing of these gold coins many times because they're not regulated by the SEC in there more of a collectors item, but in their storage fees anyhow. By the time I got done with them and I got all the money back out. It was like 140 grand was always got back out in the price of gold during this 18 months before I met her was was just it had gone up a little bit so I mean that's $60,000 was just commissions, fees, storage I try to get them reduce the long and the short of it is to put a large chunk of money in gold on the back space singled coins and gold coins but just goal.

Anyone we have people that have large portfolios that have some of their money in alternative investments in collectibles and gold and gold mining stock or that were talking less than 10% for all the different alternatives and maybe the gold is one or 2% for this lady. It was 40% of her money in it was in gold amuses so my general thing about that.

That's just another one of those things that people bring something that they think is wisdom to the table and then I got a go to task with them. I'm not saying I won't help somebody invest in gold and do that but is certainly not going to be with those people and is not can be with the big hunk of money like that is going to be a smaller proportion amount of money count, which for me and of anything between it. One of the investments can be life insurance itself. It can be annuities. It doesn't have to be those other things in the and they can have all sorts added benefits of long-term care and income for the rest of how long you know that you will annuities get ejector, you don't have to worry about a thing uses can continue on for the rest your life. So we tried it. Try to just be sensible about this stuff and then the plans are different for every single person but what what what I won't do is just be beholden to I come in earn 5% or more.

Your 7% are we.

We don't play that way because there's a lot at stake in the end, and there's other things and obviously you can stand back up a little further distancing get a picture you been listening to finishing well, a certified financial planner Hans Schild today show on retirement income courses available at the seven worries tablet Cardinal guy.com don't forget the guide after cargo cargo guy.com and you can download the PDF file. There absolutely free or just email Hans in order to get it on Amazon thank you thank you for listing. We hope you enjoyed finishing well brought you by Cardinal guy.com visit Cardinal guy.com for free downloads of this show previous shows on topics such as Social Security, Medicare and IRAs, long-term care, life insurance, investments and taxes as well as constant best-selling book, the complete Cardinal guy to planning for and living in retirement and the workbook once again for dozens of free resources past shows what you get. Hans book go to Cardinal guy.com if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word.

Once again that's Cardinal guy.com Cardinal guy.com