What Happens to Your Retirement Plan When You Retire

Jarosinski, Brian   0:12
All right. Hello. Hello, everybody. Thanks for joining our one of our seminars here on financial planning. I'd say it's good to be with you. For those of you who haven't attended before, I'm Brian Jaracinski. I've been doing this for 20 plus years at this point as a certified financial planner. My colleague Michael Hoch is on here as well.

I'll let him introduce himself shortly, but you know we we look forward to spending the next 30-45 minutes with you guys, guys and gals. I know you're joining us either from some of our 401K plans or some of our health insurance plans or whatever it may be, just housekeeping items off the top. So I know some of you are joining us and need to make.

Make sure you get those Wellness points. So the passcode for that this on this seminar is Nest egg NESTEGG. So for your Wellness points, when you do your survey at the end of the seminar, feel free to use that passcode so you guys can get your points.

Just to mark your calendars, we'll remind you at the end as well. But our next seminar talking about understanding risk and various insurances, that's going to be on September 10th at 2:00 PM. I believe it's Eastern Standard Time, but you'll be, you know, you guys will be. If you guys are in here, you're going to be on the e-mail list and you'll get that as well.

So, you know, I know we're all busy, so try to mark your calendars for that. With that, I'll let my colleague Michael introduce himself real quick and then and then we'll get going in the material.

Hoch, Michael   1:38
Yeah, thanks as always, Brian. So again, Michael Hoch with NFP. Brian and I are partners here in our Washington, DC Bethesda, Maryland office. As you know, NFP is a a much larger swath and and as advisors, you know what Brian and I, we kind of hold ourselves out. We call ourselves investment behavioral counselors, right, because the reality of it is we can.

Only control our behaviors and our actions and and the purpose of today is to walk through with you and to kind of make you think and kind of engage you with regards to what it looks like right nowadays. It's not just going on your phone or the Internet and getting some information, but there's a lot of thought process that leads up to.

Kind of what it looks like, how do you monetize, how much do you need all of these things. So what we'll kind of go through this. Brian and I will, Brian will take a couple of the initial slides. I'll take some of the others. If you have questions, by all mean, there's a chat that we have afterwards we'll open up. I think it's probably easiest to put questions in the chat and then if Brian's speaking, I'll try and address some of them.
As and will vice versa go off one another here. So again, I appreciate your take.

Jarosinski, Brian   2:41
Like I said, this is purely meant. I mean we're we're independent fiduciaries. This is truly meant to be educational. So we our goal and and what gets us going is to make sure that you guys walk out of here with good tidbits of information. You get some questions answered. Laura said she can't see anything. Is everyone seeing the PowerPoint up on the screen?

Maybe just put a chat, you know, maybe do your thumbs up, hand raise or there we go. I got a lot of thumbs up. Oh good. Look at a lot of people are engaged. Look at all those thumbs. There we go. Good. The people, people are people are lying out there. So I'm I'm seeing a bunch of nos as well though. That's weird. Well maybe again some of our back end team Kelly and our folks can look into.

Hoch, Michael   3:05
OK. Thank you. Thank you. Appreciate it.
Oh, let me go.

Jarosinski, Brian   3:20
Why you're not seeing it, but I see a lot of thumbs up. So I don't want to spend, I don't want to waste time on technology for those that it'll be recorded. So if those of you maybe it's like on your end possibly and you'll they'll they'll be recording later to to to see that. But again our our goal is to get you good information. By all means please use the.

Hoch, Michael   3:22
Yeah.

Jarosinski, Brian   3:40
I know we were planning to do this on restream, so we had a couple of technical issues, so feel free to use the chat. We'd love this to be interactive. Usually when we do these things, once we get 10-15 minutes into the seminar, honestly, we like to kind of shut up as much as we're used to talking and just answer your questions, right? And again, you can.

Put them in anonymously or if it's something more particular, you could reach out to Michael and myself and you could schedule a one-on-one time if it's obviously something you don't want to put in the group. So again, to get into the material today, you know, the focus is really what do I do when I get to retirement, right? You know, financial planning.

I tell, I mean Michael and I, we tell our clients there's really two main jobs of of a financial planner, right. And and the first job is in the name where we are helping you develop a plan. It's just like you try to lose weight.

That's a big epidemic in our country. That's all the, you know, whatever those shots are called now that people are taking the little little cheat codes. But you just don't get there without a plan, right? If you don't count your calories, you don't have a plan of attack on the exercise. You're not weighing yourself weekly.

You're unlikely to hit your your your goals. Finances is is really no different, right? We need a plan and we need someone to help us keep to that plan. And that's really the main goal with any financial planner. And that that's that's step one is to get with the client, get with the 401K participant and say, look, let's talk about your wants, your needs, your.

Goals, your desires and let's figure out what that looks like and let's get a plan to get there. And then the second job, which kind of leads into the the more of the seminar today, is where do we put our hard earned money and our assets to achieve those goals, right. So whether the goal is the next car or sending our kids to college or obviously today we're going to talk.

Talk about how to retire and use our assets once we get there. You know how to save for the down payment on the house. There's so many financial goals. Very few people again to my example in the exercise world, they just fall short, right? And it's 99% of the time preventable with.

With a solid plan. So I always throw out some stats to start these things. 70% of Americans don't feel like they're on track to retire. Only 60% of Americans are invested in in the stock equity markets. 80% of Americans are paycheck to paycheck. Only 25% of Americans have a trusted financial advisor.

So that tells me as a trusted financial advisor, there's not enough people out there doing planning or seeking it out. And I always talk about how daunting that is. You know, how do I find a good financial planner? Again, that's where these things become very good, right? To reach out to Michael or myself as a resource or, you know, we're vetted through your plan.

And your companies as independent fiduciary advisors to really help give you unbiased advice in the industry of our world. You never know if you go to a Northwestern Mutual guy or a bank advisor or a Wirehouse guys or a guy or gal, you just don't know what you're getting.

So that kind of leads into into the the stuff for today is the goal is what do I do at retirement? How do I take my hard earned money and how do I turn that into income streams? So again, there's some of the things that you see on the screen here that many of you have things in already. Savings and investments, 401K's, IRA's, social.

Social Security, all these things are income producing assets. There's other things, right? There's real estate. There's business ventures. Hell, Michael and I will tell you, many of our clients have side jobs that they do. Michael, if you go ahead and switch the slide and go to the next one.

Hoch, Michael   7:21
Yep.

Jarosinski, Brian   7:22
So there's lots of, there's lots of income sources that that you know our job as we get our, you know, everyone here can obviously raise their hand, right? Who wants to retire? Raise their hand. I would assume everyone here is going to click that button that they'd like to retire someday, right? Oh, there we go. See, I think we all don't want to work forever. So everyone.

Wants to retire, but but very quickly after you retire, the concern is how do I make sure I have enough money? So where do I withdraw from? What accounts do I withdraw from first? You know, how do I what are what are options and timing? Do I touch my Roth IRA's first? Do I go to my checking savings first?

You know, lots of lots of stuff goes into that where Michael and I spend a lot of our time with our retiree clients. So goal number one is to get to retirement. Goal #2 is to have enough to comfortably retire throughout, you know, the longer and longer longevity that we're having. So we're going to talk about a couple strategies that we use to do that.

But a lot of people don't have strategies or plans to this and they end up getting significantly less, you know, assets out of their or significantly less revenue out of their assets over time than people that are doing proper planning. So next, next slide.

So order matters, right? So in my world, I mean one of the credentials I hold is retirement income certified professional. So I took that, I took that class. It took a couple years, years ago, but it was very interesting about how you draw on certain accounts first in order to make your assets long as last as long as possible and as far.

Whereas when you talk about market based accounts and really almost any kind of accounts, you have taxable accounts, you have tax deferred accounts and then you have tax exempt accounts. We're going to talk about this a few different times in the seminar. Michael, Michael will as well when we get to the back end of this.

But everyone, everyone on here, I'm sure has taxable accounts, right? We're talking checking savings accounts, money market accounts, CDs and then tax deferred accounts. Most of us have in terms of, you know, your pre-tax 401K dollars, your traditional IRA dollars.

Then you have then tax-exempt, which are harder to come by, but that's where you talk about those Roth IRAs, cash value, life insurance, rental real estate, you know there's certain other there's there's some areas that are tax-exempt, but just from a perspective of what makes sense to let make your money last as long as possible, which is.

Obviously the quick number one goal, once you get to retirement, how do I get the most out of it as far as revenue, you know, where am I taking from first? So Michael and I would tell you if you're on this call and you're close to retirement, we see it all the time that people get on our calendars to do a retirement consultation and there have their aggressive stuff and their tax.

Taxable accounts, they they might be all international stocks in their taxable accounts and in their Roth IRAs they got cash, right? We see this, we see this all the time and that is unfortunately backwards and that could end up really hurting how much money you get out of your accounts over the course of retirement. So again, we'll talk about that in a little bit more detail.

Michael, if you want to hit the hit the button. So again, most of you on the call right are probably joining us from you know or or I'm sure some of you are from our 401 KS that we are the Fiduciary advisor on. Gosh, Mike, my phones don't stop ringing with how many plans we have for people asking questions on what to do with their plans.

Plan, which is great. And and I think that and that's and that should continue to be the case because you need to have a plan with these dollars. But when you retire from an employer and you have a 401K, there's options at your disposal, right? A lot of people don't know the options. They're not sure which ones make the most sense for them.

And it's not a one-size-fits-all, right? So someone could be retiring at 65 and they actually do need to start drawing off the 401K. Others, they retired 65 and they got other assets and we might not need that for one, that 401K bucket for 3-4 or seven more years or whatever the case may be. So you know you can take a lump sum.

Distribution, which is pretty atypical, right? Because most folks is 401K dollars are in pre-tax and we don't want a huge tax implication all at once. You know, we could roll over to an IRA or another qualified plan if you're changing jobs. You know, again, Michael and I will always say 401 KS are great growers.

You know, again, people are working 20 to 40 years now. They're great, you know, vehicles to build assets. When you get into the withdrawal phases, they tend to become very inefficient for that. IRAS open up the world of investment freedom, more flexibility, linking the money to your bank, not having to do as many forms when you need.

Cash. So most tend to go the IRA route, you know.

Or or just, you know, heading into retirement annuities. We'll talk about a lot of money has flowed into this in the last 2-3 years because interest rates have been so high. CDs, money markets, annuities, they've really captured a lot of assets in the last 2-3 years, again because those products become very in a high-interest.

Environment. And as that environment maybe starts to come down here, I know that, you know, we all watch the Powell and Powell and Trump, you know, chicken race as far as lowering interest rates, but that's probably coming in the next few months and we're going to figure out, you know, what's going to happen and then we'll have to make some adjustments and you know, products will change a little bit.

So, but again, there's you can use a combined approach, which we'll talk about, but what to do with these things, we'll we'll dig into that next slide, next slide.

Hoch, Michael   12:54
Yes.

Jarosinski, Brian   12:56
So balancing growth and income in retirement, right. So again I I mentioned before there's the taxable bucket, the the pre-tax, the tax-free. You know we often see clients having the wrong kind of investments in different buckets. Same types of thing here. You know when we retire I I tell you know we tell clients look we want to start thinking more about your.

Your market-based investments as almost like a like you're buying a rental property, right? Like if I go and I buy, you know, Nvidia stock or some of these stocks that are roaring up in value in recent years, it's great value on paper, but a lot of those stocks don't pay you any dividends either, right? So as we get closer and closer to retirement.

We obviously want to make sure #1, we're protecting some of the assets, right? We don't want market-based risk on on all of our monies. And then we also want to start shifting our money towards things that are producing income. So as you kind of see in the middle there, you know, individual bonds, income-oriented mutual funds like bond funds, high dividend stock funds.

Again, we'll talk about annuities in later slides, but you know annuities are insurance accounts and a lot of them are are generated or are designed to to derive income from. But again, when we retire, we still want some growth potential. So we want those growth stocks and and things of that nature. But again, we typically want to hold those in the right kind of accounts.

So again, it's a balancing act of, you know, there's lots of different and that's what I was saying as far as when I got started, the number two job of a financial planner is let's develop the goal, but where do the investments go, right? Let's let's put the investments, let's put the money in the right places for what the plan is.

So next next slide.

Hoch, Michael   14:34
Yep.

Jarosinski, Brian   14:35
So again, I mentioned it, I mentioned annuities a couple times because they've been very, I think it was about $400 billion went into these last year. Again, just because rates have been substantially high and I think that's at a 20 year high at this point still, you know they've crept down a little bit, but, you know, a lot of folks when they get to retirement, they want some safety. So when you look at a 401K lineup, oftentimes usually 80% if not more of the OR sometimes 90% of the holdings are just market-based mutual funds or even some that are bond funds, those can fluctuate up and down.

And as you can imagine, you know, common knowledge that as we get closer to retirement, we tend to, we tend to want to have a good amount of our money in protection, right? We don't want a 2008. We don't want a 2001. We don't want a lot of our money exposed to a potential downturn in the markets.

So if I can go take some of that money and I can go buy, I mean per this slide, you know, we're looking at like 3-4 percent in in like fixed annuity rates on this slide. But I'll tell you right now, I mean they got as high as 6 1/2, but right now they're still around five, 5 1/2%. You know, we still got a good amount of clients who are reaching out to us to get these.

So understanding the the split annuity planning idea where you're taking some of your money and putting it in an annuity at 456% to get that build up and then you're also putting it in one and you're actually starting to draw that income out. So you're taking kind of market-based investments, right? They go up and down over time.

And you're starting to kind of level out the playing field, if you will, to make sure you have that steady income stream.

Next slide. And again, remember, please ask questions as we go here and we get interactive, make sure we answer you guys's questions. Again. So this is just another combination, a blended strategy of annuities where you know you can divide money into different pools. So you know I mentioned before in the previous.

This slide you could do the just pure fixed annuity Ave. but then annuities also tend to be very popular for driving lifetime income, right? So if you have a half $1,000,000 in a 401K and it's all in market-based mutual funds.

There's no assurances there, right? There's no protections that guarantee you're going to get lifetime income. So depending on how much you're taking out or depending on what your longevity is, you could run out of income there, right? So everyone in here has Social Security, right? So what I we tend to talk to clients about is, look, what's your Social Security?

Hoch, Michael   16:53
Yep, Yep.
Yeah.

Jarosinski, Brian   17:07
And let's project out what your essential needs are. And usually let's try to line up that number with guaranteed income. So when we say essential needs, we're talking, you know, your housing carry costs, your your medical, your food on the table, you know, your your basic essentials, right, your transportation.

Costs. What's that number look like? Most retirees want to have Peace of Mind that that flat income is going to be there. Sometimes Social Security is enough to cover that and we don't really need to have more lifetime income. Sometimes we add a little bit more and then beyond that we look at, you know, money markets and CDs and things that are going to get us a little bit more safety in our dollars there. So there's lots of strategies, there's lots of products. But again, that's really the second big, big goal of any financial planner is to make sure you're putting your money in the right vehicles based on what your plan is.

Hoch, Michael   18:01
Yeah. And then Brian, let me let me just add one thing to that. Someone had asked a question in terms of annuities with high fees. And again, if this is not necessarily about an annuity, you know, presentation here, but again, they're neither good nor bad. They're either appropriate or inappropriate for where you're at. And the one thing, Deborah, you asked a question, do annuities have high fees? What I will tell you is what we come across.

Jarosinski, Brian   18:03
Yep.
Right.

Hoch, Michael   18:21
Folks who have had an annuity. If you're if you do own an annuity and it's more than 10 years old, you should definitely look at it. Yes, because some of the older annuity products could have 345 percent, even 6% internal fees, which absolutely is crazy.

Have that where some of the newer products, as Brian alluded to with the much higher interest rates and because technology has become so much more sophisticated, the fees have come down to you know a percent and in some cases there's actually no embedded fees in the product. So again, it's not about it's they're in either good.

They're either appropriate or inappropriate for where you're at. And at a high level, what we always tell folks is an annuity like that is basically right. You have homeowner's insurance, you have life insurance, you might have long term care insurance, right? We all have different insurances over time and some of these products can provide an insurance wrapper to a portion of your.

Monies when it when it comes to that. So and you know, Social Security, you know, I'm, I'm, you know, in my late 50s now, right. So Social Security is on my horizon and hopefully will be there. Brian's in his 40s. You know, we joke and I tell him, you know, he needs to call his congressmen and women and senators because at this rate it's not going to be there for him.

Jarosinski, Brian   19:38
Yeah.

Hoch, Michael   19:41
Me, I, you know, somewhere, some, some level it's gonna be.

So a couple of things and and here's, here's the thing I always tell people at its base and at its core, right, what we're talking about is you've accumulated wealth over a lifetime. How do you then monetize it? And as Brian alluded to when we first started talking, right, this is.

In as much as these things we can touch upon, it is whether you're single, whether you're married, whether you have a partner, whoever it is, right? You have to come into this together or or individually to understand where you're at and is it enough, right? We work with hundreds of individuals and families and units and and everyone has different goals, right? So things that you want to keep in mind.

Right. IRA and Bryan alluded to 401 KS, but we could we're also talking 403 BS, 401 KS, TSPS, all of these retirement plan kind of fall under the same guidance, right. And the the the the law states that you have to when you're retired.

At age 73, for most people, if you're already retired, it might have been 72. It used to be 70 1/2. Now it's 73. For someone like me, it's going to be age 75. The government says in monies that were pretax.

You must start taking out the required minimum distribution at that time. Quite honestly, depending upon how much assets you have, a lot of our clients, the distributions that they're taking out of their retirement plans satisfy that of the RMD. So it's not two. You don't have to do two things, the RMD.

Could very well satisfy and it's an actuarial number that's based upon the value and the account value at on December 31st of the previous year in terms of what that looks like. So required distributions are you'll have to factor in. The other thing is and for some of our if you're younger.
On the call or even if you're older and getting ready to retire, Roth Roth 401 KS or 403 BS if your employer has it and or regular Roths are not subject to just required minimum distributions.

IRAS and retirement plans, right? If something happens to me, my wife gets everything and she inherits it as a spousal. But once she passes away, if there's monies left over, then those monies will go to our children and they have the the years ago you could do stretch it out, you could prolong it. Now it's not. It has to be taken out in a 10 year period.

If you've got monies in Roth, right, it's not, they're not subject to required distributions. Roths are fantastic vehicles. If you've got children and or grandchildren that you were going to think to inherit that, those are fantastic vehicles to do that. So part of that planning is maybe you do look at conversion of some of your monies with regards to all of that, right? So, again, the RMDs, you have to take that out, right? If you have all your monies in your 401K, you have to be careful with that because if you miss it, that's why you want to be able to speak to an advisor or someone. You want to make certain you're satisfying the required distributions for you on that, right?

Beneficiaries and and part a large part of our conversations that we talk about is making decisions. We always say making decisions and having conversations when you're calm and you're clear, right. And and a lot of times we have blended families, you know, for us here.

With regards to, you know, blended marriages, second marriages, kids with different things, right? How does that look? What does that look like? Making certain that your beneficiaries are up to date in your 401K's and or IRA's or and even individual accounts. Speaking with someone to look at a at a trust for real estate or any of these.

Too many times we see. I had a call with with someone yesterday, right? And and you know the client, you know coming on board as a client and very, you know, pretty substantial assets. She didn't want to disclose anything, right. And and it was a second marriage, but they've been married for 30 years, but it was very tenuous and and if you.

These and have these conversations and start planning these things out, right. That's really can be a tenuous and if you're not here, Brian, I could tell you the claws come out and it's just not a good thing. So again, I think Brian addressed when is a good thing to move from a Roth to a 401K. Again, that's going to be a little more nuanced based upon your.

Situation and circumstance, right. You don't want to do. We want to make certain, number one, that you and your spouse and your partner is taken care of first and then beyond that, right. Because people are living. Yeah, we always ask the question, what's the oldest person you know, right. And and it's not uncommon, you know, but to have, you know, my, my, my father.
Was 93 years old, right? So you got to plan that with regards to that, so.

Jarosinski, Brian   24:31
I have a few clients whose parents just turned 100, you know.

Hoch, Michael   24:34
Yeah, I mean it's it's commonplace. And even for, you know, for folks who are younger with healthcare, medicine, just what we know now, you know, longevity is is is on our side. And I say that's either good news or bad news, right? Social Security. I mean, I think we've in the past we've done a presentation on Social Security. We'll talk on this at a high level and it Social Security can get very nuanced right at its earliest. You can take early Social Security at age 62, right? I caution against that because that represents almost off of and then you also have what's called your full retirement age. So if you reach out to Brian and me.

So. Of the things we always will tell you is go on to ssa.gov, get your Social Security statement right and and your spouse to make sure he he or she has that. So we can have these conversations in terms of what it looks like for you. If you take it early and you're still working before your FR, your full retirement age, you'll pay additional.

Pay additional taxes on those monies. You eventually will recoup them, but that can still have a big impact on the the actual money you get. Listen, Brian and I manage together almost a half a billion dollars of clients monies, right? And and right now the way it stands is every year you defer Social Security, your benefit goes up by 8%.

Can't get that. That's pretty darn hard. Now again, could it?

Jarosinski, Brian   25:55
Not counting, not even counting cola.

Hoch, Michael   25:59
Not even counting cola, right. So it is even more substantial than that. Like A. lot of A. lot of times we do our calls on Zoom and Teams and I always say don't shoot the messenger but but 70 is the magic number. And and here's the thing, I can't tell you it just happened to me on Monday.

Woman's referred to me. Her husband's seventy-one. I'm like, how much is he collecting Social Security? What do you think he said? She said he's going to wait till next year. I'm like, no, no, no, it doesn't work that way. 70 is the Max. Do not wait anything beyond it. But 70, you know, growing it at almost 8%, right? The difference between 67 to 70 you see here is almost $1000 A. month. A lot of that depends upon your health, your longevity, how much assets you have, if your spouse was was employed or was not, because he or she will collect off of either 100% of theirs or 50%.

Of of their of their spouses, depending upon, you know how much those monies were. So it gets, it does get it used to be more nuanced Social Security. It's kind of clear it's gotten A. little clearer, but nonetheless it's still confusing if if you're divorced as Long, as you were married 10 years.

You can get money out. You can collect off of your your spouse's. Again, depending upon income levels and everything else, you don't need their authority or approval or any of that information. Just need may need to make sure you have their his or her Social Security to to get that.

So Brian put in there the 72 T So if you retire, if you want to again, I don't want to get too nuanced with this, right? But if you have monies in and you want to retire before age 59, I said I'm 58 years old.

Jarosinski, Brian   27:43
Yeah.

Hoch, Michael   27:50
If I've got $1,000,000 in my 401K, I can generate an actuarial number that for the next five years I need to take out A. certain percentage from my 401K or IRA or IRA without the penalty. I'll still pay my taxes on it again.

We very cautionary because you know someone who's 60 years old, yeah, could be living another 30-40 years that you want to, you know, ratchet it down. One of the I always tell people at A. base level as Brian alluded to when it comes to dividends and annuities and all these.

At A. very base level, folks, let me let me tell you this, if you can live on between 4 to 5% of your money, right? As Long, as your advisor is not day trading, market timing, doing any kind of speculative, if you're diversified right in in A. proper portfolio based upon your assets.

5% You should never run out of money. So if you've got $1,000,000, it's $50,000 A. year, then you have to Factor, in Social Security, spouse, if you have pensions, all of these. That's at A. very base high level thinking. And again, we always say don't shoot the messenger, but the reality.

Of it is the expectations when you go to retire, right? There is fundamentally A. light switch psychologically, mentally and financially that turns off right in that paycheck that you're receiving from your employer stops and now you're living on your monies in the best laid plans, right? You might own your house.

Right. Well, you might own your car, but I can't tell you how many folks all of A. sudden they get in an accident and the car gets totaled. I got to go buy A. new car and now interest rates are 6 or 7% on on automobiles or air conditioning. So you have it whatever the number you think.

Right. We always tell Brian, I can attest, take that number, even if you've worked it and you know it, add 15 to 20% to that in terms of what the expectation is. Social Security for many of you will play A. good role in in that, right. So when we talk about.

Those distribution basics that Brian talked about, you know, you've got an IRA, A. Roth IRA, you've got A. brokerage account, you've got savings account, you've got maybe, you know, different investments. How do you monetize them? How do you start taking that money out? Do you have an annuity? Is it, is it an income annuity or is it just A. guarantee?

Guaranteed annuity, right. So um.

I I rhetorically tell folks, especially my younger when I do, we do A. lot of presentations for you for if they're younger, right. The goal when you get to retirement is not to be in the lowest tax bracket. Because in theory, if you're in the lowest tax bracket, pardon my bad, that means you ain't got no money right now. If you had all your money in the Roth, that would be A. good thing because y'all everything would come out and you'd be.

In a lower tax bracket. But again, the more money you have, the more taxes you pay, which isn't necessarily a bad thing, but you want to make certain that we're utilizing the right structures to maybe to minimize it. If you're retiring, depending upon age, right, 65, part of the conversation you want to look at is Medicare.

What those?

Look like and the healthcare coverage that you get for for yourself or the supplements or the advantages or if your spouse is younger, what's that gap look like, right? And and how you know this is in terms of how you withdraw, how you how you think about how you monetize, how do you create that income to to live off for a long time so it it can get.

A lot more. You know your your financial picture, Brian, Rick, do we talk about this every day? And and people always come to us and they want to do a budget right or or and make a budget. And I always say budgeting is very simple, right? And a lot of this is simple math, but it can get overwhelmed.

And budgeting is what's coming in and what's going out, right? What's coming in we can control relative to if we're currently working, if we have a part-time job, you know, all of those things, what's going out are the variables, right? What are we spending on gas? What are we spending on our phone? What are we spending on our Internet connections, on our car and insurance, right. And and you want to understand those.

Long-term care, home health, you know, people are living longer. What expenses are associated with this? We're in. I can speak for myself that sandwich generation. I've got hidden college, I've got a grandchild, I've got parents who are alive and in-laws who are alive. So there's a lot of different things going on, right, that you have to factor and expense.

Senses come with it. I see people all the time maintaining 2 properties, right. It's it's not just having one, it's it's exponentially great. So you want to you know identify those and and Brian what's the what's the number you use regularly in terms of if you're how much expected you want if if your income is you know 100,000 you know 708090 percent.

Jarosinski, Brian   32:34
Of what?

Hoch, Michael   32:36
Of your your once you retire, if you're you know if you're making $100,000 a year.

Jarosinski, Brian   32:39
Oh yeah, I mean, yeah, most, yeah, I mean most, most studies will say it's usually like 75% of your final income is, is which you're what you're going to need to be comfortable in retirement. Because a lot of people, you know, again, a lot of the clients, I I spoke to a client yesterday and this tends to be the case, right. They had a big home, they had kids, kids are out on their own. They got grandkids and.

Hoch, Michael   32:49
Right.

Jarosinski, Brian   32:58
The house is too big for them. They usually downsize. They don't want stairs. So you know, usually when couples hire, couples or individuals retire, they tend to downsize the property. They're not going to and from work if if they're in in the office job. I know that's changed a lot with COVID, but usually a lot of expenses fall off, but certainly in the early retirement years.

Sometimes, you know, you see that kind of bridged up a little bit with people wanting to travel right in their early retirement years while they're still getting around pretty good. So 7080% is usually like the high, the the watermark that most people are trying to, you know, get on to be on track again.

A plan is much more important to have a detailed plan, but high level. If you're just going high level, that's a good, that's a good hurdle to to look at.

Look, somebody had a couple of questions. I was just going to answer a few of them. Let Michael, then give the floor back to you here. There's our Leonardo, I answered a couple of the Social Security. I've been pretty active on the chat here to answer some of these while you were talking. Are the monthly amounts received from Social Security an accurate amount or based on the economy? So there there the I think it's the average.

Hoch, Michael   33:49
Yeah.
Sure, sure.

Jarosinski, Brian   34:03
Average index monthly earnings. It's like AIME. So it's it's the average monthly earnings over over your highest thirty-five years of working that it's literally just a mathematical calculation. So when you get the statements in the mail, they're they're also projecting that you're going to keep earning what you're earning to some degree too. So you have to.

Kind of take that into into account. But yeah, it doesn't have anything to do with the economy. It's just it's just the formula and you know how they how they derive it. As long as you've worked 10 years and 40 quarters, you're fully insured in the Social Security pension and you know it's just the numbers are the numbers.

Hoch, Michael   34:39
Yeah, yeah, yeah. So there's one question in terms of why, why would you not take Social Security early, right. And and trust me, we get this all the time, right. It's instinctively and instinctually. You just want, right. You've put in, you just give me that money, right. I want the government money right away. And it is, it is more nuanced.

Jarosinski, Brian   34:39
Um, Josh, you want to take one another one of these?

All the time.

You want the money.

Hoch, Michael   34:59
Nuanced than that because depending upon how much assets you have, if you take it early at 62 versus your full retirement, it's almost a 35% reduction from that, right? And and that can be if you live into, if you live into your late 70s, eighties, 90s, taking it early will.

Literally cost you possibly hundreds of thousands of dollars and there's software that we have that we can run these calculations. Here's here's the thing I will say with Social Security, right. In some form things are going to change right in terms of right now there's a Social Security wage cap that you know you're if you're working you're you pay some your employer.

Play some up to the the maximum wage cap of, you know, it's like $180,000 this year. I keep all these numbers I can't keep up with, right. But eventually they're gonna, you know, probably kick that up to, you know, 250,000. You know, it might be some, you know, super high net worth folks will get a scale down of any of that. So I.

We don't know, right. And but the reality is for for folks, if you're in your late 50s or 60s, I I would say it's safely you're you're pretty. I feel much more comfortable saying that it's going to be there with regards to that, you know, in terms of figuring out cost for health insurance and those options, right at a very high level.

Right. I mean, if you think about it, when you get older, you know, vision, dental, hearing, well, I can tell you, right. I mean, most seniors and my my father-in-law has hearing aids and probably loses them once every six months, right. And fortunately they've come down in costs, but you know, they they could that can be cost. So it's almost, you know, $1000 a month, you know, depending upon your health.

With regards to medicine, Medicare, doctor's visits, all of these different things that we that you want to look at. So you know, I think Brian put in there, you know, again you can, you know, Brian put in his contact, Brian, you can even put my contact then you can ping us on that stuff. With regards to that, we've talked about tax free, the Roth. I mean that's a great way to to look at and putting money away, growing tax deferred, not paying any money on the on the distributions when you come out down the road, you know do you want to convert some of those to you know to the Roth, some of your monies to the Roth so that you can pass it on to children, the taxable brokerage accounts.

Right. The one thing I always tell people, especially if you're coming to us from either we're we're we're the advisors on your 401K or 403B. If you're in in those plans, you are an investor, right? Too many times we see folks who have outside accounts or or different things and and they're trying to buy and sell, sell and they're speculative, right.

Speculating, right? Slow. We call it get rich slowly, right? There's no get rich quick, right? And if someone tells you they got guarantees of this and that, that are crazy numbers and this, if it sounds too good to be true, if it sounds too good to be true, folks, it usually is right. And you know, we all have these. So you can imagine.

Jarosinski, Brian   37:49
Run.
Yeah.

Hoch, Michael   37:56
And I do these presentations and I keep my phone open all the time. You can't imagine the obscure feeds I get for that. I always say is I do cooking, we watch puppy dogs and home decorating is what I get from my Instagram and whatever. I don't even do the tic Tac thingy here. So again, look at.

The income sources, where they're going to be derived from. Again, you've got all these. Now also, we didn't even touch upon health savings accounts, right? If your employer offers a health savings account, that's like the home run, right? You can put the money in pre-tax. If you've got enough, you can invest in it and it grows tax deferred and then you pull it out.

Down the road, tax-free for dental, vision, premium, you name it, all of those types of things there. So, you know, all of these have a role, right? We talk about, you know, wills, powers of attorney, advanced medical directors, proper registration. So many times I see folks will come to me and a husband and wife.

Married and and and accounts are registered solely in one individual's name with no beneficiary or any. That's a disaster waiting to happen. If you've got property in other states that are in each in your name, you know powers of attorney are important. Tell talking to your spouse or your partner, your children or nieces or nephews where all of that looks.

Looks like. So having all of these things planned out, your investments, again, your automobile homeowners, right? These are all the things we always say is you don't want to find out what type of homeowners insurance you have while the house is burning down, right? You want to do that. Life insurance coverage is really important for you, you know, whether you have whole life, universal.

All of these different products we talk about, we have the annuities. I think actually we did omit the long-term care aspect to that right in terms of what that looks like. If you need home health care, assisted living, you know for yourself long-term, I have a lot of folks who are single right and you know that's that's something that you really want.

To, you know, take advantage of when it comes to how you plan things out. So one of the questions is you know Brian and our financial advisors, we are fiduc. There's the big word fiduciaries, right all what that means and we always say we laugh because.

We've been doing this for, you know, Brian, 20 years, myself, 27 years. It just means you're not pushing products and you're doing what's right for the other folks. So you know, one of the things we can do is, is kind of just help walk, walk you through a lot of this information when it comes to that. So again, where these sources are, what it looks like, right, for many years like for.

Many of us are parents or grandparents, right? UA had pensions, they had Social Security. Heck, they could go open money in a savings account and get 12 or 13%, right? So it was very easy. Now it's, you know, it was like a four-legged stool. Now, you know, then it was a three and now you're seeing fewer and fewer companies that are.

Actually putting in pensions for you. So then the onus becomes on you, your 401K, your 403 B, your IRAS, all of this, and it can get pretty daunting, right? And I said we're investment behavioral. This year's a perfect example.

Right. We can't control the markets. You can control your risk tolerance, your and and and how you're allocated, right. But we went in in January, February, right. The markets went down almost 12%. The tariffs were on, the tariffs were off. They were, you know, Ukraine, Middle East, you name it and.

All of a sudden, now we're back up to record highs. So we don't prognosticate or forecast, but this all has to meld in, right? Because I mentioned I'm 58, getting ready to, you know, thinking, you know, 10 years from retirement, Brian's much younger. His risk tolerance is way higher than mine, right? Because my ability to take on too much.

Risk, right. It gets a little more daunting for me when it comes to a lot of how we're allocated and what we're doing there. So part of it is, you know, start with that.

Jarosinski, Brian   41:59
Man.

Hoch, Michael   41:59
Sorry, sorry, I I bumped something here. It should be.

Jarosinski, Brian   42:02
While you put that back, let me I was gonna answer a couple of these or unless Hash, you wanna finish it real quick and then or then we can hit these some of these questions.

Hoch, Michael   42:09
Yeah, go ahead. Go ahead. Go ahead, Ant.

Jarosinski, Brian   42:10
Let's see what a couple of them. One I saw up here. Again, we really want to make sure we get you guys answers. So you leave with leave some good stuff on your questions. Someone asked about trusts. I'm an accredited estate planner. Michael. Michael deals with a lot of trusts with with attorneys as well with clients. Revocable and irrevocable trusts. What the main difference there is irrevocable is you really don't have a lot.

A lot of things you can change once you put them in place, but they're great to have. You probably won't say with many financial planners that say having a trust document. Again, trust comes in all flavors, shapes and sizes because you can draw them out almost whoever you want and whether it's a special needs trust or for legacy for kids or whatever, but they're great to have.

Especially getting around probate and you know, you know, skipping probate costs in some cases, making your estate private, things like that. So yes, we're big. I'm a big trust fan. It's just a matter of spending the right time and a few grants to sit with an attorney and a planner to to put one down.

Someone asked a question about good retirement income books. I don't know any off the top of my head. I don't know if Michael does. I would tell you, you know, unbiasedly, some there's some retirement income books out there kind of derived at shooting you certain ways will.

May or again, may or may not fit all all people, right? Everyone is in different situations. So I would say if you do read any books, grain of salt it right as far as you know, reading a couple. And then again, that's where a good Michael and myself or, you know, an independent advisor can help you kind of sift through the noise and figure out what what's going to be.

You know what's what makes sense for you and what doesn't. Planning software. Go ahead, go ahead, Mike. Sorry.

Hoch, Michael   43:45
Yeah, um, what?

No, no, I'm sorry. One of the questions, I'm sorry, go ahead. So you know, one of the questions in general, do you work whole life insurance? Again, that's going to be, you know, 90% of what we would always do is like for for folks is term insurance, right?

Jarosinski, Brian   43:51
Right, if someone asked me. Yeah, go ahead.

No, you're up. Go. Sorry, sorry.

Hoch, Michael   44:09
Get as much as you can for smaller amounts. Whole life, right, is kind of permanent. It builds value. You have equity, you'll maintain it for the rest of your life. Sometimes it makes sense to have a smaller portion in that type of policy. I know there are some schools of thought to put a lot. That's what Brian was alluding to or something that says you'll put.

Everything in that you know, but nowadays with having the Roth for because some whole life can work kind of like a Roth. It grows tax-free. You can pull it out tax-free. But the reality of it is, is if you're maximizing your Roth contribution, if your spouse is working and putting in 30,000 into the Roth, right, you can you can really manipulate and get get a lot of better.

Vehicles with a lot less cost and that's part of that kind of financial plan that you'll look at. And again, it's not again we would get away from the product pushing and all that other stuff too many times. Some of these books are, you know, you watch the commercials, you know some of them are just go buy everything and put everything in annuity or there's the one guy you know who.

Jarosinski, Brian   45:06
Or convert everything to raw. I mean, there's lots of strategies. It's yeah.

Hoch, Michael   45:07
Claims or convert everything to a Roth or we don't you know we don't do any you know annuities we just do we we make money when you make money but but you have to look at the whole picture is is really what Brian is is you know.

Jarosinski, Brian   45:21
Yeah, Michael, you're not sharing the the slide, the slide deck by the way. That means people are texting or chatting. You're sharing like the teams. You're just sharing the wrong window to to change that so people can see the slides while you're doing that. Yeah, Michelle, it's funny you asked that question or you if you do share the the the quick answer on us is yes.

Hoch, Michael   45:27
That's weird.

Oh, hold on.

Jarosinski, Brian   45:41
But I I mean, I just finished my my certified financial planner like CE for the year and re-upped my, you know, paid my money for that. It's like 600 bucks every two years. You know, how do I put this? Anyone can say they're a fiduciary though. I think that.

I mean I think the big thing is to to Michael's point is just to make sure that when you're interviewing financial planners, do you have like productions you need to hit? Are there trips incentives or you know are are do you make in-house product that your your incentive to sell?

I have to sell. I mean, you just want to ask these questions because ideally you just, you want to get with somebody that's doing your planning and ultimately you're going to need product, whether it's investment vehicles or insurance products or whatever. You just want someone that can be able to really, you know, scour the entire marketplace to find the best fit for you. So a lot of people can say it, you know and.

It's a big thing for the people that are searching for planners that you've done some good due diligence to make sure you ask that question. Just make sure you ask additional follow-up questions to that because anyone can say they are. It's really asking those additional questions to confirm if they're again to Michael's point there, I won't mention names.

But there's one of those outfits out there that markets a lot on TV and they say, well, we don't, we don't sell Commission products. I'm like, well then you're not a fiduciary because if the client needs life insurance or long-term care, that's how those products pay the advisor. So you're you're not having access to those products that doesn't truly make you a fiduciary having access to the world and.

Getting all the options that that does. So it's a that's a great question though.
I think, did we lose Michael? Mike, you still with us? You guys can still hear hear me, right?

Am I coming through OK? Yes. So I guess we lost Michael. Yeah, I guess he'll join us back. Maybe lost the feed, but let's see what other. I mean, this is great. You guys are sending question. Let's see what else we got here. Is this webinar for several companies or just one company?

Brunscheen, Kelly   47:27
We can hear you, Brian. I think we lost Michael.

Jarosinski, Brian   47:40
I just started my company, so we work with NFP and Wellsense program for employees. Just want to understand the complimentary benefits for employees doing for both myself and our company. So I mean this to my knowledge, I mean these, I mean we don't handle who it goes out to or just obviously here as the advisors to give the information.

But I to my understanding it goes out to you know our various groups from our benefits, health insurance groups and 401K client groups and you know all the you know property casual groups, all the things that NFP provides on a on a group basis. So I think, I think that's where all this went to but again.

We're here as fiduciaries. You know, I'm salaried to do complimentary reviews. My my schedule is always tight, but you know, if you if you get all my scheduling link, you know, it might be 2-3 weeks before you get on it. But I'm happy to have complimentary meetings with folks and as I mentioned in the chat.

Finances are daunting and we've talked so much about various things already, but and this is just retirement. We're not talking about college education or we're not talking about, you know, just your button or debt management or whatever, right? There's so many areas. It's so aggressive, but it's so important that a lot of people just it's too much.

So when you sit with somebody and they can give you direction because it's not your thing, I mean the stress can really come down. People are much more, you know, they feel much better about their plan once there is one. So you know, happy to happy to do that for you guys. And again, you can e-mail in. I mean Kelly will put that up at the end of the.

At the end of the meeting, but you know we will reroute you to one of our advisors that can make sure that they they get with you. My Michael just texted me that he can't get back in, so he's working on doing that software to run simulations. I actually don't know of that software. Someone had mentioned up above good planning software.

Where the two biggest planning ones that in the industry are E Money and Money Guide Pro. That's what we we subscribe to both of those top subscriptions and most of our clients are on that technology. I've heard of it, but I'm not too familiar with it. So yeah, I don't want to again, I'll always tell clients.

I'll speak on what I know and if I don't know the answer, I'm not going to just, you know, give you a a fake answer. So you feel free to e-mail me. I'm happy to look into it, but I'm not too familiar with them. Let's see, I was recently talked into switching all my savings into annuity and after he signed the forms, it didn't sit right with me. I canceled the transfer, but since all my investment accounts had already been.

And cashed out the transfer. I'll be paying thousands of taxes even though I cancels it out. Whenever you do an annuity, there's there's always like a 30 day what's called free look period. So I assume you just for whatever reason I don't know the details that you pulled out of it. I assume maybe you so maybe you're talking about you sold.

Non-taxable accounts, right? So you just took the capital gains or maybe what you sold. That's a stickier one. That might be more something to speak with the accountant on or maybe an attorney depending, but it sounds like it it'd just be more of a tax thing or you could kind of go back to see what you bought.

Button and see if there's something you could do there. That's a that's a stickier one. So that's that's great. So we have people helping people here. So someone here has used Google and they say it's a wonderful tool. So that's great. The the last slide, yeah, I mean, I think that was the second to last or last slide. So there wasn't much more.

More material there. I think again, the main thing is we're here to help you, right? The the main focus was today is how do I turn that that hard earned income stream in retirement? How do I there we go? Kelly's putting it back up. How do I turn that money? How do I turn the nest egg into into a rental property, right?

How do I have it paying me money and how do I draw it out to get the most out of it? And just that alone, we're not even talking about Medicare choices. And we talked a little bit about Social Security. Those choices are always tough. A lot of our clients want to take earlier.

Again, think about if you think about it, any pension is really biased towards those who have good longevity, right? Whether it's nature or nurture, those who live longer are just going to win on Social Security, right? It just it just is what it is. So I always tell folks when you're when you're making the Social Security decisions, we run Social Security analyzers.

To kind of show the total output of what you're going to get by age 707580 depending on when you want to draw it. So that helps people make the decision. But normally if you have good projected longevity and I say 8 like age 80 or above and you don't plan and you have other assets to draw on, most people are delaying it.

Just cuz they're going to get more money out of it. Now if your longevity is just not good in your family or you got a lot of health things going on and the projection isn't 80 plus, I mean none of us know our demise, right? But if it if the projection isn't good for 80 plus and or you need the money, that's where you'll you know we'll tend to have clients tend to draw.

And Social Security earlier. Again, I think there's a whole life question. I think Michael did did talk about it. Again, someone asked an annuity question earlier. You know, is a variable annuity with a guaranteed lifetime withdrawal benefit a good choice? Trying to ask me that's like asking, you know, a personal trainer if you're drinking this kind of water.

Is better than the other, right? There's there's not enough detail on that question because there's hundreds of insurance companies with usually they have four or five different annuity products, if not more, with different bells and whistles on them. So depending on the one you bought and what you're buying it for, again, that's our secondary job as a planner.

Finding the right product to help you achieve the plan, which is step one. So again, you just gotta be careful. So it's back to whole life insurance. It has its place and in some places it doesn't. I'll sit with clients all the time and they were just sold whole life and I'll sit down with them and we'll look at the whole view and their whole picture and.

What their goals are, there was no reason for them, in my professional opinion, for them to buy life insurance for whole life insurance. They just there was no need for it. And that's other times they they bought what did seem to make sense. So again, back to being financial finances being so daunting, there are 10s of thousands of products you can put your money in from insurance.

Products to mutual funds to ETFs to annuities that the I said that is literally job 1B of a good financial independent financial planner is how do I sift through the 50,000 options we can put your money in and find something that makes sense.

So again it's it's it's tough to do but that's that's part that's part two of of of two you know of the job. So you know I know we're coming up on time here. Let me see if there's any more questions. Look, thanks for all the questions. We really we like these to be more interactive than possible because I know.

Trust me, as many seminars as I sit in on other things, yeah, they can get a little tiring if someone just talking and and and putting up slides. So hopefully you guys took away some good information from this. Again, for those of you who need Wellness points, nest egg is the the pass code.

The next one of these will be September 10th at 2:00 PM. Again, feel free to use this as a resource. Again, 302530% of Americans have financial planners. I'm a big proponent of that's it's that low because people are it's too daunting to find one. Well, so do I want a bank advisor? Do I want an insurance advisor? Do I want an independent?

Advisor. Should they be a CFP? Like I have no idea how to sift through that noise and what questions to ask. It's why would I even bother looking for one? I don't know how to sift through all that. So we're a good resource because we cut through that noise.

We're independent. We're fiduciaries. We don't have any skin in the game. We're salaried to do the complimentary reviews. Utilize it for us and and we're happy to get you on our calendars and we have a wide advisor network around the country. We'll we'll get you taken care of. So it's get Kelly showing in that e-mail. Feel free to drop a drop an e-mail in there.

You know, we'll make sure you get taken care of it. At least we'll get your questions answered with that. Is there any more questions you guys have? I don't want to, you know, I always say the most important asset is not products, but it's time. Everyone on of everyone on here, we have a limited amount of it. So I don't want to go. I want to be respectful of you, of your time here.

Hoch, Michael   55:52
Bye.

Jarosinski, Brian   55:58
But again, thanks everyone for attending. You know, thanks for the the engagement and the questions. I I hope we hit most of the questions, if not all of them. I was making sure we tried to do that. And with that, oh, I'm sorry, it's a quick question for wellness points. It's nest egg with a with a space in the middle. I believe Kelly could probably.

Probably comment or someone could comment in the chat if that's not correct, but I think that I think that's what it is. But anyway, no, thank you for the for the time again and you know you guys have our our information up on the screen and you know I'm sure Michael and I will be back doing another one of these at some point. I'm sure it'll probably someone.

Different for the September 10th one. So we try to make sure we're getting different faces in front of you guys. But other than that, thank you guys for your time and and joining and have a great rest of your week wherever you're joining us from and and we'll see you next time.