Good afternoon and welcome to the Wake-up Retirement Show, I am your host, Marc Sarner, here with you every Saturday afternoon talking to you about your retirement. You know you’ve worked so hard for everything you have today, you want to make sure that everything is working as efficiently as possible. You know you went to work every day, you saved money, you put your kids through college, you paid off your household fully and now you want to make sure that what you saved is enough.
That it’s enough for your entire retirement. That it’s sustainable and nothing could have tested us more than our volatile market. Look at this past week, it’s been extremely volatile, on Friday we had a lot of volatility due to what’s going in Europe. And now, it’s really a global economy. People need to understand that there are huge swings that we can expect moving forward.
And if you’re not properly balanced, if you don’t have a plan that addresses this volatility, that it smooths out the volatility, you’re going to be left in a position where you are wondering if you’re going to have to go back to work. You know, back in 2008, they kind of coin the term unretire, where people that retired said goodbye to their co-workers and friends and they went off to live in retirement, only to find that it was not enough.
That it was not sustainable. You know, and that’s what we’re going to be talking about today folks. You’re listening to the Wake-up Retirement Show, I’m your host Marc Sarner. Here with you each Saturday afternoon at 1pm, talking to you about sustaining your retirement. You know, back in the day you made have heard of this four percent rule. Where basically, fi you only pull out 4% of your account, you’re actually going to be able to be just fine in retirement. Cause the markets go up, the markets go down but if you only pull out 4%, you’re going to be fine in the long run. [02.10]
Well, what we’ve discovered is it couldn’t be further from the truth. Especially in today’s volatility. It basically outlies that it’s broken and successful strategies. There has to be other ways of doing it, being successful, using other strategies. Many advisors have been touting this 4% rule as a staple for safely withdrawing income. But you know experts today are saying this is basically broken, that really, it’s not, you can’t just say 4% cause it doesn’t take into consideration how the overall portfolio is positioned.
It doesn’t account for longevity, it doesn’t account for future tax implications, what would happen if we had a major correction? Folks, just yesterday we had a 600 point drop in the market. Not to scare you because we understand the markets go up and down, but if your account does not allow for proper diversification, proper balance, you could be left out in the cold or better yet, looking for another job.
We don’t want you to have to do that, if you retire once it should be enough, unless you want to go back to work. You know, if you enjoy working and it’s something that you want to do, then by all means do it. But if you have a plan to address this diversification, have a plan to address this situation, you would be in a better spot. We don’t know when this major correction going to hit, whether it’s not or in the future but we do know something is about to big hit us and something is on the horizon.
And there are those that are prepared and that there’re those that don’t want to think about it and put there, you know, their other needs first and nothing can be more important than sustaining your retirement. You’ve worked so hard, you deserve it, you and your wife or spouse deserve to be put in a situation where this is your time to do what you want to do and travel, see the grandchildren and you know, be places where you want to be, play golf more, whatever it may be, this is your time to do what you want to do in retirement.
You’re listening, it’s the Wake-up Retirement Show, I’m your host Marc Sarner. Here with you every Saturday afternoon. You can get a hold of our operators, our office at 855-920-7233, that’s 855-920-7233. What we do and what we offer is a free analysis, it gives you a chance to find out if you are properly diversified, if you are properly in position to handle a major correction. You want to find out now, it’s a stress test situation before you have a major problem on your hands.
You don’t want to be in a situation where gosh, you know, the markets are down 20%, let me wait for it to come back then it goes down to 30%, then well, let’s just hang on. You know, a lot of advisors what they say is just hang on, its going to come back, it always comes back. But folks, you know, really if you’re extracting money in retirement, if you’re pulling and income in retirement, the game has changed.
You have changed the game, once you start living on your investments and the markets go down and you’re extracting a percentage of your investments to sustain your retirement, you have changed the game because now you are digging a further hole for yourself. Oh, you can find us on the worldwide web by the way wakeupretirement.net. There’s a wealth of information there, there’s some guides on how to balance your portfolio, how to do these things as far as income and prepare for the future.
Want to thank one of our sponsors by the way, which is Kilter Termite and Pest Control. The Kilter Termite and Pest Control leader is the termite and pest control, they you know, you want to find out your situation, find out a problem before it becomes a major problem, they have over twenty years’ experience. They are in the North San Diego area, you can give them a call at 858-371-2928, that’s 858-371-2928 and I’m your host Marc Sarner here with you on Saturday afternoon, talking to you about all areas of your retirement.
You know, we talk to people about income, we talk about reducing taxes, we talk about managing risks and that’s really what this show is about, is managing risks. You know, you might be thinking that maybe you’re properly diversified or maybe you’re thinking well, I have an advisor, his worked for years or I’ve worked with for years, how are you different from what I already have?
It’s basically a second chance, a second pair of eyes to find out if your situation is sustainable. We run an analysis, we take a look at your situation, we show you what’s possible if it’s relevant. It very well may be that your situation is perfect and that your income is fine and that your positions are fine and properly balanced, wouldn’t you like to know beforehand. You want to give us a call, toll free 855-920-7233, that’s 855-920-7233.
You know, we just had a wonderful workshop in Escondido and Ramona in the past couple of weeks. Really had some good people come out and ask some really good questions about how do I make sure that I have enough? How do I know if I have enough? Well, how much should I pull out on a monthly basis? What about taxes, what about social security? When’s the best time to take social security? These are all good questions.
What about my spouse, my spouse is still working? We’re still contributing to his 401K or his IRA. You want to plan for a longer lifespan, I recently wrote an article about this, about inflation and for the wallstreet.com and basically what we do is we talk about how/where longevity is a factor, is a healthy 65 year old couple, one of them have a 63% chance of living past the aged of 90 and if one of you live pass the age of 90, that means we have to design plans to sustain that lifespan.
What we’re seeing is that a lot of financial plans out there are running out of money and designed to run out of money at age 90. And if we were to design a plan to run out of money at age 90, we are planning to fail 63% of the time. By the way, you know, 7 out of 10 women will face some level of poverty during their lifetime because we just don’t address these issues. We use a guestimate, we use a fake number.
We don’t address longevity, we don’t address portfolio performance or portfolio balance. All of it is relevant to your situation and you are listening to the Wake-up Retirement Show, I’m your host Marc Sarner. Here with you every Saturday afternoon at one o’clock. Talking to you about these areas that are of the most concern for you. Maybe you’ve just retired, maybe you are thinking about retiring, maybe you have been to a workshop or have not.
Folks, studies have shown that those who come to our events or anybody’s events, that they have a hire chance of having a quality retirement because you’re better informed, you’re armed with information and it’s relevant for you to get to one of these workshops. If you want to find out when the next time that I speak at one of my events, you can give us a call at toll free 855-920-7233 or 855-920-7233. You can email me also at Marc, that is MARC as in Charlie, firstname.lastname@example.org.
And you can find out more information about us on the worldwide web at wakeupretirement.net. We’re going to take a quick break here for a moment. Listen to some wonderful music or pour yourself another cup of coffee or tea, whatever it may be. We’ll be right back after these words.
And we’re back. Welcome to the Wake-up Retirement Show, I’m your host Marc Sarner, here with you every Saturday afternoon at one o’clock. We are here for our second portion of today’s show and we’re talking about stock market volatility, we’re talking about retirement, we’re talking about proper diversification and you can find out all of our information on the worldwide web at wakupretirement.net.
You can give us a call back at 855-920-7233, that’s 855-920-7233. Our operators are standing by for those that want to call in, we have a guide for retirement income and sustaining your retirement income through this volatile market. You want to give as a call, that is 855-920-7233, it gives you some real powerful information on what you can do to sustain retirement in a volatile market. So, we hope you can take advantage of that and what we’re going to talk about now is our second portion of our show is talking to you about the biggest threat to your retirement.
And it’s not necessarily inflation, it’s really the stock market and it’s not really the rising cost of health care, it’s living longer. This is not, this really isn’t someone’s opinion, this is fact. People are living longer than ever before and it means that you have to have a strategy of your money lasting 25, 30 or 40 years. So, really the issue is to plan for a longer retirement, evaluating your expenses, evaluating your income streams. You can purchase different investments that provide income.
You can delay social security benefits if at all possible or maybe you have a situation where you need to take income right away, make sure that you are saving enough if you’re still working. Make sure that you are saving enough for retirement because you’ll need it, not today, you’ll find a way to survive today, the issue is how you’re going to survive down the line when you eventually retire.
What about making catch-up contributions? What if you’re behind the eight-ball, you got a later start on retirement and what do you do, how can you catch up and you have to have basically a business plan for your retirement. That’s the key to your scenario. And work with somebody, a professional, seasoned professional to help come up with solutions to your situation.
Somebody who’s not just going to sell you products or sell you services, someone’s that’s actually going to follow through and be there for you when and if you need money or when and if you have questions about your money. Somebody says that needs to proactive, taking a proactive approach to dealing with you in retirement. In other words, it’s not good enough for someone to just to answer the call when you call as the client, they should be proactive seeing you on a quarterly basis.
You know, the laws are constantly changing, the rules are constantly changing, the markets are constantly changing and you don’t even get a phone call or an email for a consultation. Isn’t your business worth it, isn’t your retirement worth it. I believe it is. So, you know, you really want to think about retirement as a strategy to sustain your lifespan. You know, the average US 65-year-old man is now expected to live 86.6 years.
That’s up from 84.6 years in 2000. According to these new mortality estimates that were released by the Society of Actuaries. A professional organisation for actuaries and the average 65-year-old woman is expected to live 88.8 years. My wife’s grandmother actual passed on at 98. So, I think we all know that people are living longer. As a matter of fact, I had a client of mine who played golf, she’s 70 years old, she went golfing with an 89-year-old.
So, about 20 years ago, an 89-year-old, you know, those people would not be working, they would not be golfing, they would not be active on the golf course like such or doing the things they want to do. Now, because people have taken better care of themselves over a long period of time, now people are actually playing golf at almost 90 years old. So, there is an example of longevity.
And so, the question is instead of saving enough to last 20 years, you now have to build a portfolio that would last you at least 22 years. And that may seem like a significant increase but really it may not seem like very much but you know what it could be another hundred thousand more on top what you already established as far as savings. And really dealing with planning for a long life, we can’t know how much time we have obviously.
Meanwhile, the major retirement decisions, how much to save, how long to work, when to take social security, how much to withdraw each year for your retirement. Hinge upon the many years you can reasonably expect to be around. So, a bigger pay-out considers other investment strategies where you can basically take an income and sustain it through your lifetime. You want to make sure that you understand what it is you’re getting.
Cause if you make a mistake at this stage of the game, does the advisor pay the price, does the institution pay the price, no you pay the price. As the advisor, you do pay the, you have a responsibility to understand, to make the client understand what is going to be happening with the people and making sure that their goals are being met. That their needs are being met, that everything is being taken care of. Whatever happens if something happens to one of them, what’s going to happen to the income, how is the pension position upon the spouse of the spouses passing? How are things in line with their goals?
What if there’s a market correction, are they properly balanced, are you properly balanced? And that’s really the issue. You’re listening to the Wake-up Retirement Show, I’m your host Marc Sarner. Here with you every Saturday afternoon at one o’clock, talking to you about the issues that really drive your life. You know, your retirement allows you to do the things you want to do. Make sure that you are able to do whatever it is, whether that means spending more time with the children, golfing more.
But we do have a guide for you, for the first 5 callers, you want to give us a call toll free, our operators are standing by 855-920-7233, that’s 855-920-7233. We also have a social security guide as well, so ask for both of them and we will send both of them out. Operators are standing by for the social security guide you give us a call at 855-920-7233.
That’s 855-920-7233 and I want to thank our sponsor Kilter Termite and Pest Control. The termite and pest control leader in the North San Diego area and you can get a hold of them for a free estimate. They’ve been around in the North San Diego area for about 20 years now and you give them a call at 858-371-2928, that’s 858-371-2928. And you are listening to the Wake-up Retirement Show. I’m your host Marc Sarner, here with you every Saturday afternoon and dealing with all issues that are relevant to your situation.
You know, it is summertime, kids are out of school, grandkids are out of school. You probably want to do things with them, share your time with them, share the wisdom of your years. But you want to make sure that they understand that saving for retirement is important now than ever before. Studies have shown that the sooner you start, the better off you are and once you put that money away, make sure that it is designed specifically for retirement purposes only.
They should not be extracting this money for any reason other than retirement dollars down the line. You know, so many people they actually get into their 401Ks early, they borrow against it to buy a house, they borrow against it to put a pool, they borrow against it to pay bills. They need to live for now and you know, basically there’s a real problem there is real statistics have shown that people don’t have enough for retirement and almost retirement being a pipe dream.
You know, people are going to have to work till the day they die, they just don’t have enough money to sustain any type of lifespan and in retirement and you know, people are living longer as we’ve mentioned. Cost of living on the rise, taxes are only going up, volatile markets are here, proper balance is critical and so when you think about your situation, ask yourself this question, are you in a position to sustain a major correction.
Are we sure, should we get a second opinion, should we go to a workshop to find out if there’s anything further we can do to improve, to enhance our situation? You’re going to want to give us a call at 855-920-7233, that’s 855-920-7233 and you’re listening to the Wakeup Retirement Show. I’m on every Saturday afternoon at one o’clock, dealing with the current events, dealing with issues, making sure that all your questions are being answered.
If you have a question about your situation you can always email me at marc, MARC @wakeupretirement.net. I’d be happy to answer any questions you have about your scenario. Maybe you’re sitting there with a specific question about a specific issue, you’re going to want to give me a call or you can actually email at the email I gave you which is marc, MARC @wakeupretirement.net or give us a call 855-920-7233, that’s 855-922-7233. You can go to our website wakeupretirement.net and we will see you next week. Take care now. [