Show - 30 Minute November

Speaker 1 (00:00):

The following program is sponsored by Boss Retirement Solutions.

Speaker 2 (00:05):

Retiring successfully has never been easy, but with soaring inflation, stock market volatility and looming recession, retiring successfully today is more challenging than ever before. Hi, I'm Kelly DeMarco and welcome to Retirement Solutions tv. This next wave of retirees could face unprecedented challenges, but there are three specific threats many people are ignoring that could jeopardize your financial security in retirement. So coming up on today's show, we're gonna talk about this triple threat to your retirement savings and the steps you should take now to protect your nest egg.

Speaker 1 (00:44):

Saving for retirement is a great start, but it's what you do with this money that really matters. How will you reduce your taxes, generate income, minimize your risk, maximize your social security benefits and more. Welcome to Retirement Solutions TV with Tyson Thacker and Ryan Thacker of Boss Retirement Solutions. This is where you can count on straightforward and objective advice about how you can make your money go a lot further in retirement.

Speaker 2 (01:12):

Hi there. I'm Kelly DeMarco and welcome to Retirement Solutions tv. Today we're talking about the triple threat to your retirement savings and the steps you should take now to protect your nest egg. Joining us are Ryan Thacker and Tyson Thacker from Boss Retirement Solutions. They're published authors with more than two decades of combined financial planning experience, and they're the winners of four best of state awards, Ryan and Tyson. Great to see you today.

Speaker 3 (01:40):

It's great to see you too, Kelly.

Speaker 2 (01:42):

So let's start with the first big threat we should be concerned about right now.

Speaker 3 (01:46):

Kelly, the first threat is something that nobody's talking about right now, and it's retiring when there's increased stock market volatility or simply a falling stock market and the severe long-term impact it could have on your nest egg. And if you retire when the stock market is growing, well, the wind is at your back because a rising tide floats all boats, right? And you almost need a strategy to lose money in a market like this. But if there's a severe market volatility or a bear market during the first few years of your retirement, it's a totally different story. According to research featured on cnbc, and this is important, the combination of withdrawing money from a shrinking portfolio could leave you with two thirds less money for the rest of your life. This is called sequence of returns risk, and it's a really big deal.

Speaker 2 (02:39):

It sounds like it. And it seems like everyone for God, just how bad market declines can be.

Speaker 3 (02:43):

Absolutely. Kelly, because the stock market was on a tear for more than a decade, it was the longest bull market in history.

Speaker 2 (02:51):

So here we are now, what kind of impact does this have on retirees specifically?

Speaker 3 (02:56):

Well, imagine this scenario for a minute. Let's say you just retired. The economy goes south and there's a major downturn in the stock market. The investments in your portfolio have now dropped significantly, but you're retired. And the problem is you need money to pay for your lifestyle in retirement. So you may have to sell some of your investments that are worth a lot less at this time. And if you keep doing that every single month needing to make these withdrawals to live on, then your portfolio when it's down, it could be a big problem. And when you sell your investments, remember you're locking those losses in at a low point, and the long term financial consequences of this Kelly could be devastating. Now, you might be able to skip taking withdrawals from your portfolio with the market, but if you're 72 or older, your required minimum distributions force you to make withdrawals whether the market is up or it's down.

Speaker 2 (03:52):

So Ryan and Tyson, considering what you were just talking about, is there any way retirees can protect themselves against this kind of risk?

Speaker 3 (03:59):

Absolutely. Kelly. It's important that coming to terms with your appetite for risk and that it's measured and you understand that, and this happens by updating and rebalancing your portfolio, which could be one of the most effective ways to protect yourself from a falling stock market because during quote unquote normal times, you should be reviewing this portfolio every six to 12 months. But when we have stock market volatility or some other type of major economic event, you should certainly check it more frequently. And here's the reason why, because as your investment shrink or grow, your asset allocation becomes out of balance and, and this could cause you to be invested too aggressively or too conservatively, and neither one of these Kelly could be good for you in your portfolio and understand this a properly diversified portfolio. Well, it's more than just a simple mix of stocks, bonds, and mutual funds.

Speaker 3 (04:54):

You can't follow some traditional rule of thumb or one size fits all strategy. For instance, the 60 40 rule as as an example, a lot of people follow that 60 40 rule. And your appetite for risk is going to be completely unique to your situation. So your investing approach should be too, you know, if you look at the 60 40 portfolio, one of the things we say is it doesn't work like it did in the past. And according to Barons, they said most retirees right now shouldn't sell stock because the 60 40 mix could be out of balance and you need to take a look at it before you sell that stock. Absolutely. And then understanding the importance of diversification. We just mentioned this, it's one of the most critical elements of a sound investment strategy as an example. You feel like that the s and p 500, well there's 500 different companies there.

Speaker 3 (05:46):

What if you could invest and diversify with 16,000 different companies? Imagine what that looks like instead. You know, Tyson, when I look at time periods like this, um, one of the things that we always talk to our families that we serve at Boss Retirement Solutions and advisors is are you okay with the risk? And you know, we've done this for thousands and thousands of families just like you, and no one answer is the same. I have, um, we asked this question that says, um, Mr. And Mrs. Jones, how comfortable are you with losing any retirement money? I've never had anyone say, well, Ryan, I'd like to lose 50% not one time. But yet people did that in 2001, they did it in 2008. It's very possible that we could have declines that continue to have an impact on your retirement portfolio. So we understand what works and what doesn't.

Speaker 3 (06:37):

We understand how to diversify, how to make sure that you are constantly up to date on what's going on in the market and how we can help your retirement last as long as you do well. And when we think about the bottom line, if you're wondering, you know, the market's already gone down, what should I do? The first thing is it comes down to a plan that matches your appetite for risk. And we have tools and techniques that can help you measure this risk so that you're not going at this completely alone. Many people right now are like, what should I do at the backyard Barbecue? They ask us, what's the hot stock I should invest in now that the market's gone down? Should I be investing my money? Um, again, well, it comes down to your appetite for risk and how much risk you can afford to take inside of your portfolio.

Speaker 2 (07:22):

So what I'm hearing is the bottom line is retiring during stock market volatility or bear market could really wreak havoc on your nest egg. So given the challenges with the economy and the stock market right now, how can someone protect and grow their nest egg today?

Speaker 3 (07:37):

Well, Kelly, there's no such thing as a free launch. If you're trying to reach for yield now, there's a good chance you'll be taking considerably more risk. Most people typically don't think about this, but the fastest and safest way that you could grow your nest egg today is by reducing your taxes in retirement. Think about it. The less money you pay to Uncle Sam, the more money you get to keep in your pocket. And that's why we've put something together just for the viewers on the show today, discover how you could dramatically reduce your taxes in retirement with a free boss retirement tax savings analysis.

Speaker 2 (08:13):

Can you explain a little bit about how it works?

Speaker 3 (08:15):

Of course, we get some basic information from you. We determine the retirement tax saving strategies that are best suited for your specific situation, and then we simply sit down and share these strategies with you so you can see exactly how much money you could save. It doesn't matter if you've saved 200,000, 1 million, or even $5 million for retirement. This analysis could significantly benefit you.

Speaker 2 (08:41):

Ryan and Tyson, thank you so much. So how much could you save in taxes when you retire? Find out with a free bus retirement tax savings analysis. If you've saved at least $200,000 for retirement, schedule your free analysis now by calling this number 805 4 0 78 30. There's no cost or obligation, but this offer is only available if you call today. Here's that number again, 805 4 0 78 30 record high national debt. And historically, low federal income tax rates can only mean one thing. Higher taxes could be just around the corner. We'll tell you about the one strategy that could save you a bundle of money when we come back.

Speaker 1 (09:26):

You're watching Retirement Solutions TV with Tyson Thacker and Ryan Thacker from Boss Retirement Solutions. This is where you can count on straightforward and objective advice on how you could make the most out of every dollar you've saved for retirement.

Speaker 2 (09:42):

Hi there. I'm Kelly DeMarco and you're watching Retirement Solutions tv. Today we've been talking about the triple threat to your retirement savings and the steps you should take now that could really protect your nest egg. Joining us are Ryan Thacker and Tyson Thacker from Boss Retirement Solutions. They're published authors with more than two decades of combined financial planning experience, and they are the winners of four best of state awards. Ryan and Tyson, thanks again for being here today. So what is the second big threat to be concerned about right now,

Speaker 3 (10:15):

Kelly? The second big threat right now is the threat of higher future taxes. And if you're in or nearing retirement, the timing couldn't be worse. Most people believe that they'll be paying far fewer taxes all through retirement, and I get that because you're no longer earning a paycheck. But unfortunately that won't be the case for most hardworking Americans. By the time you add up the taxes on your IRA and 401K withdrawals, taxes on your social security benefits and taxes on your other investment income, real estate dividends, you name it, you could end up paying even more taxes in retirement Tyson up. But I also think the situation is much worse than most people realize. And here's why. The government has gone on an unprecedented spending spree between economic stimulus, new infrastructure, social policy bills, the Inflation reduction Act, the student loan forgiveness plan. Can you fill this? The list goes on and on, and now the national debt is more than 31 trillion with a T. So you really have to ask yourself, how does all of this money get paid back? It's important to understand that the government doesn't have any money of its own. So the only way is to repay this money by increasing taxes.

Speaker 2 (11:35):

I'm curious, how high do you think tax rates could go?

Speaker 3 (11:38):

Well, Kelly, the highest federal income tax rate right now is 37%. Do you have any idea what it was? In the early eighties, the highest federal income tax rate was 70% with a seven 70. Now, I'm not saying the taxes will go back to to 70%, but I am saying there's a lot of room for the government to raise your taxes. Look, anybody can do the math here. We have the highest debt in our country's history and we have the lowest federal income tax rates in over 40 years. So what do you think is going to happen? Well, the answer's obvious we need to raise taxes,

Speaker 2 (12:13):

But I thought the government had promised not to raise taxes on anyone making less than $400,000. Is that still true?

Speaker 3 (12:20):

Well, unfortunately, we've been doing this for a long time and with retirees when it comes to your IRAs and 401ks, that does not look like it's gonna be the case because according to the Joint Committee on Taxation, a nonpartisan committee of the United States Congress, they said in 2023, taxes will increase by 16.7 billion on American taxpayers earning less than 200,000 and nearly 17 billion tax targeted solidly at the low to middle income class earners. End quote. And unfortunately Kelly, I think this is just the beginning of what's to come.

Speaker 2 (13:00):

Wow. So how would these higher taxes impact retirees?

Speaker 3 (13:03):

That's why we're doing the show today, Kelly, is because if you're recently retired or nearing retirement, these tax increases, well, they couldn't come at a worse time. Each time you make a withdrawal from your IRA or your 401K or other retirement account, a large portion of your savings will end up going to Uncle Sam and you'll ultimately be left with a lot less money to spend all through retirement. The same will be true of any income from your Social security benefits and other investment income from dividends real estate and more so Tyson. Um, there's one more thing that I wanna mention here, and nobody's talking about this right now and it's really important and it's something called legislative risk. Legislative risk is the risk that the government can change the rules of the game whenever and any time that they want, and the government right now could double your taxes overnight.

Speaker 3 (13:56):

And here's how it would happen is they could change the rules on your ira in 401K ed slot known called by the Wall Street Journal as America's IRA tax expert said that really your IRA is really an IOU to Uncle Sam and he's not even your real uncle. So here's the other way that this could look is they could cut your social security benefits drastically. You'll see in the headlines 20 34, 20 35, that we need to make some changes and they can do whatever they want and they don't have to ask you for your permission. And so what's more important is that as you're nearing retirement, you really need to pay attention to these things because we wanna help you to Washington proof your retirement so that when the government does change the rules, you may not be impacted by it because you have a plan. You know, Ryan, it all boils down to the difference between tax preparation versus retirement planning.

Speaker 3 (14:55):

Now, most Americans, they simply file their taxes each and every year and they prepare and file their taxes with the help of a CPA or, or maybe Turbo Tax. But at this point, what's done is done, aside from a handful of obvious deductions that might help you save a few bucks, all you're doing is reporting history, retirement planning. Well, it's all together different. And this is where you can find a huge savings in retirement. Here you're looking down the road, not in the rear view mirror. You're using the tax code to your advantage. As I've said, the savings can be significant. It's not uncommon for us to uncover savings that could be tens of thousands, if not hundreds of thousands of dollars. Tyson, I think when you hear those numbers, and Kelly as we talk about this, you know, tens of thousands if not hundreds of thousands of dollars in tax savings, how is that possible?

Speaker 3 (15:47):

It's because the way that those retirement accounts were set up, any tax deferred retirement accounts, IRAs, 401ks, TSPs, 4 0 3 Bs, if you have one of these accounts, really what you're doing is you have a deferred debt to Uncle Sam that's growing and getting bigger is that account value grows with your investment returns, your tax obligation actually gets higher, and then you add in things like social security, you add in your Medicare premiums, and then you get to age 72, you have to start taking required minimum distributions. This is where, uh, Forbes recently called uh, these taxes, the IRS's Weapons of Mass Destruction because these are ticking tax time bomb. Absolutely. You know, Ryan, that's what's so exciting when we have people come into our office is we show them the difference that tens of thousands to hundreds of thousands of dollars really is real Kelly, and we want to help people to get theirs back all through retirement.

Speaker 2 (16:46):

Absolutely. It makes sense when you hear that dollar amount. So what is the best advice you could give our viewers about these higher taxes in

Speaker 3 (16:53):

Retirement? Kelly, if you have an IRA or 401k, you want to think of this as being your money, and I get that. But remember, it's really a joint account between you and the IRS because remember, you still have to pay taxes when you withdraw this money in retirement, and you could end up paying a lot more in taxes on these accounts than you know. But we do have some good news for you is there are ways that you could dramatically reduce your taxes in retirement, and that's why we put something together just for the viewers today, right, Tyson? That's right. We want you to understand how you can save a small fortune in taxes when you retire with our Free Boss Retirement Tax Savings Analysis.

Speaker 2 (17:31):

I know you make it really easy for your clients. Explain how it

Speaker 3 (17:34):

Works. Absolutely. Once we get some basic information from you, we determine the tax saving strategies that are gonna be best suited for your specific situation, and then we simply sit down and share these strategies with you so you can see exactly how much money you could save. It's not uncommon for us to uncover opportunities that could save you. As we've mentioned, tens of thousands if not hundreds of thousands of dollars. And it doesn't matter if you've saved 500,000, 1 million, or even 5 million for retirement, this analysis could significantly benefit you. So don't wait because some of these tax saving strategies could be going away really soon.

Speaker 2 (18:11):

Thank you guys. So how much could you save in taxes when you retire? Find out with a Free Boss Retirement Tax Savings Analysis from Boss Retirement Solutions. If you've saved at least $200,000 for retirement, you can schedule your free analysis now by calling 805 4 0 78 30. There's no cost or obligation, but this offer is only available if you call today. Here's that number again, 805 4 0 78 30. Coming up next, we're gonna share how you could overcome the challenges with generating income and retirement today. We'll be right back after this.

Speaker 1 (18:51):

Social Security taxes, income and risk. We tackle the toughest challenges facing anyone that's in or nearing retirement today. Welcome back to Retirement Solutions TV with Ryan Thacker and Tyson Thacker of Boss Retirement Solutions.

Speaker 2 (19:08):

Hi, I'm Kelly DeMarco and you're watching Retirement Solutions tv. Today we're talking about the triple threat to your retirement savings and the steps you can take now that could really protect your nest egg. Joining us are Ryan Thacker and Tyson Thacker from Boss Retirement Solutions. They're published authors with more than two decades of combined financial planning experience, and they are the winners of four best of State Awards. Ryan and Tyson, thanks again for being here today. So what is this third threat to your retirement savings that you should be concerned about right now?

Speaker 3 (19:42):

Kelly, the third big threat to your retirement savings is the challenge with generating income and retirement and having a plan to generate income in retirement. It is really important if you don't have a plan, you are spending down your savings every single day and your nest egg keeps getting smaller and smaller and smaller. So you're living in constant fear of running out of money in retirement, and that's not a good place to be.

Speaker 2 (20:08):

What types of retirement income are we talking about here?

Speaker 3 (20:11):

Kelly? I wanna start by talking about Social security because this ends up being the foundation of your income plan all through retirement. It's been reported that the Social Security Trust Fund is underfunded and projected to run out of money by 2034, but then the pandemic hit and you know what happened next, unemployment rose to 14.7% and 23 million people were suddenly unemployed. What does that have to do with Social Security? Well, suddenly 23 million people stopped contributing to Social Security Trust funds. So this made a bad problem even worse, but it doesn't stop there. Well, Tyson, the latest cost of Living adjustment, also known as the Cola for Retirees, is 8.7%. That's the highest adjustment in decades. And now the already strained trust fund will be depleted even faster because even more money will be going out to cover this cost of living adjustment. And if we see another cola next year, what will that mean for Social security? It puts an even bigger strain on the Social Security Trust fund, and this should be a huge wake up call for everyone because if you're relying on social security for retirement, the chances of your benefits being reduced are growing by the day, and you should start making plans right now to create another source of income.

Speaker 2 (21:33):

I know this isn't easy today, is it? Especially for retirees?

Speaker 3 (21:37):

Yeah. Today, retirees are stuck between a rock and a hard place when it comes to generating income and retirement. Kelly, here's why. For decades, retirees have leaned on CDs, savings accounts and bonds to help their fund fund their retirement accounts. These fixed income staples were considered to be go-to safe havens, but given the combination of low yields and high inflation rates, they're no longer viable options to generate income today. In fact, after you consider the inflation rate, you're actually losing money with these so-called safe havens. On the other hand, if you invest in what has been an extremely volatile stock market, you're taking even a higher risk, and that's the last thing you wanna be doing at this stage of the game. Are

Speaker 2 (22:20):

A lot of people do you think taking these risks and their retirement savings?

Speaker 3 (22:23):

Kelly? Unfortunately they are, but there's more than you add on longevity. And this also plays a big role with your income plan because I was speaking to someone on a flight recently who just visited their mother. She's 103 years old, and she lives in her apartment, and she pointed, uh, to this little cute red car and said, I want that for my birthday. You know, we hear stories like this all the time, and it's because we're living longer than ever before. Imagine buying a new cute little red car at 103. So you don't have to just think about generating income right now when you're in your sixties or seventies or whatever age you are, but think about generating income that will last as long as you do. And the reason why is because there's a big difference between creating income streams from different sources that will be here 20, 30 or even 40 years down the road, and that's in critical that you have a diversified income stream.

Speaker 3 (23:17):

Absolutely, Ryan. According to Forbes, 70% of Americans fear outliving their money in retirement more than death itself. That's why you've got to understand how this works. Generating a consistent and steady stream of income in retirement is one of the most effective ways that you could avoid running out of money in retirement. Ryan, we, we say real estate always talks about location, location, location. We talk about income, income, income, and the good news is there are some surprisingly attractive options to generate income in retirement today. Options with solid returns that could last as long as you do without taking huge risks that come with other types of traditional fixed income options today. And Tyson, when we look at an income plan, we recommend that you have three diversified income streams starting with Social Security. Then if you're fortune, if you're one of the 16% of Americans that has a pension right now in the United States, we would consider that number two.

Speaker 3 (24:16):

But what about number three? And what about number four? Retiring successfully starts with income, and as long as you have enough reliable income that pays for your lifestyle, that's how you retire with confidence. Let's talk about one other thing as it relates to income, Ryan, that's on everybody's mind. It's inflation. Yes. As it eats away at your income stream. It's one of the reasons why we tell people we need at least three income streams because if you look at whatever your budget is, let's say it's $6,000 when you, when you retire, even at traditional inflation rates after 20 years, well that doubles. That goes to $12,000 that you're gonna have to spend to have the same standard of living. So this planning becomes very important. Well, and as you know, we're not in traditional inflation rates. We like to use the rule of 72 to help illustrate this.

Speaker 3 (25:08):

Let's say that inflation like it's been reported is really 8%. Many economists are saying it's much higher than that, but let's use the rule of 72 to figure out what this record inflation, how much money you will need coming up in the future to maintain your lifestyle. If you're spending $6,000 a month in inflation is 8%, you take 72 and divide that by eight, that says nine years, you'll need $12,000 or double to maintain the same standard of living. And Tyson, where do, where do you pull that out? Where do you create those income streams? That's why we're talking about this, and this is why this is a very important topic when it comes to your retirement savings. When it, what's so fun is when we have a client who comes in for their review, we have a chance to walk them through this again. And invariably they say, you did this years ago. How did you know that this was gonna be happening? We plan for income all through your retirement so that it lasts as long as you do because you don't wanna be 85 years old full of life and flat broke.

Speaker 2 (26:08):

Great advice and really eye-opening. So what would be your parting advice for our viewers about generating income right

Speaker 3 (26:15):

Now? Well, Kelly, most people don't realize this, but filing for social security could be one of the biggest financial decisions in your lifetime. And the reason why is because the difference between your best and worst case scenarios could literally be hundreds of thousands of dollars. Kelly, your Social Security benefits will be the foundation of your income plan in retirement, and that's why we want to offer something special just for you who are watching the show today, learn how you could get even more income when you file for Social security with a free Social security benefits analysis from Boss Retirement Solutions. Now, some advisors charge anywhere between 500 to $2,000 for a customized analysis like this, but we won't charge you a dime. It's absolutely

Speaker 2 (27:01):

Free. It sounds great. Tell us how it works.

Speaker 3 (27:04):

Sure. Once we get some basic information from you, we will research the optimal strategy to ring every nickel out of your benefits. This not only considers the timing of when you file for Social Security, but it also considers your taxes, spousal benefits, Medicare premiums and more. The best part is then we'll sit down and review all of your options so you can see exactly how and when to file for your social security benefits. So we do all the heavy lifting for you and we won't charge you a dime for

Speaker 2 (27:33):

It. Love that. Thank you, Ryan and Tyson. This really sounds great. And again, this is your opportunity right now to get a customized social security analysis from an award-winning wealth management firm, and it won't cost you a dime. If you've saved at least $200,000 for retirement and you've not filed for Social Security, schedule your free analysis now by calling this number 805 4 0 78 30. This offers only available if you call today. So here's that number again, 805 4 0 78 30. Well, that's all the time we have for today. Thanks so much for watching Retirement Solutions TV with Ryan Thacker and Tyson Thacker of Boss Retirement Solutions. We look forward to seeing you next time. And remember, it's not what you make, it's what you keep.

Speaker 1 (28:23):

The previous program was sponsored by Boss Retirement Solutions.