Hello and good evening. I’m just going to give it another minute or so uh just to make sure people have a chance to get logged in. I will be right back with you. Thank you. Well, good evening everybody. Thank you so much for joining me to talk about the home stretch, the seven things you need to do before you retire. Uh we’ll get into the presentation in just a moment. Um just so I can just make sure people are getting logged in here still. Um but uh but we’ll get going here. So I do have uh just a one announcement here that we are not able to record these presentations for compliance reasons and we’ve had some people try to record our presentations and uh that is also uh not allowed. We cannot uh have our any of our presentations recorded by anyone listening or by ourselves. So I do apologize if some people do ask if we are able to uh get recordings of these uh but uh sorry about that but we are not able to record. Planning on long-term care that presentation is coming up on Wednesday July 1st. That’ll be a 2 in the afternoon presentation on that day central time. And then after that I have estate planning. The basics of all those important documents that you might need whether it’s a will or a trust or the power of attorney for health care, power of attorney for financial uh and those important things on setting up uh for your estate. Uh you do also have access to our uh see what other webinars we have. We probably have an average probably maybe five or six uh webinars a week uh depending on uh varying parts of the country. We have people in LA, Denver, San Francisco, Houston. Uh we actually have someone in Utah that does these presentations. So scattered around the country that we do these. Um I do them myself every two weeks. And again, we have someone’s doing something pretty much every week. And you can see what other topics maybe you would like to listen in on. We have our invests podcast that you can listen to and you can check out our Aerys website and blog. Aerys meaning Alliant Retirement and Investment Services. That’s the team that I am on. My name is Joe Gaspari. I am one of the finan financial consultants here at Alliant. And uh I am a full services uh you know financial services person that I can work with people on saving for retirement, saving for maybe purchasing a home or education uh and working up that financial plan. That’s one of the biggest things that I do is financial planning. And that might be someone might say, “Joe, here’s what I have. Here’s what I want. Am I on the right path? Should I be saving more? Should I be investing more aggressively or even more conservatively? what should I be doing with assets? How can I invest uh to get where I’d like to be? And then how much can I spend in retirement? And we’re going to be talking about some of that here today. As I go through the presentation uh on the home stretch here, you do have access to the Q&A box, the question and answer box, or the chat box. Either one of those is sufficient. I have them both up that if you do have a question, you can a uh ask that question at any time. just type away and if you think of a question, go ahead and type it in and I will get to those questions at the end of the presentation. I’ll make sure I have a little uh enough time to get to these questions. But again, either the chat box or the Q&A box will get uh get us to those answers at the end of the presentation. So, with that, uh we’ll be jumping right in. Uh the seven things you need to do the decade before you retire. Determine when the time is right. Take aim at your retirement target. Maximizing your nest egg, getting a portfolio checkup, create a social security strategy. We’re going to touch on how social security works and building a retirement income stream. And then looking beyond the money. Uh so determining when the time is right. the godfather of retirement, Ado van Bismar, chancellor in Germany in the late 1800s came up with the concept of retirement uh and you know retirement income. Uh so he had come up with the strategy of uh starting a retirement income stream a government sponsored plan starting at the age of 70. That’s the good is that all right someone’s thinking about uh you know getting a guaranteed source of income for retirees. The bad is that life expectancy was only about a 43 and a half to 44 years old at that time. So a much lower life expectancy. But if you were around then you know income would start around that age 70. Today when we look at what uh how this is constructed is that we look at a retirement age for social security between the age of 66 and 67 based on your birth year of when you get your full social security income. And at least now we do have a longer life expectancy beyond what the uh average life expectancy uh beyond what the retirement age is. And when we look at men 7980, women 82 83 um and we’ll talk about that uh life expectancy a little bit later as well. So what age do you think to retire when we look at age 65 as maybe that one of those target numbers? What if it was as late as age 70 or what if it was as early as age 60? And what’s the average age? About 62 is the median retirement age. Why do people retire early? Sometimes it’s for personal health issues, caretaking for a family member, a job loss, downsizing, stress, burnout, early retirement, uh, buyouts. But when we look at 70% of retirees, it’s not their choice. So when people say, “Oh man, I wish I could retire at 62 like this average.” Sometimes it’s not a voluntary uh retirement. So um you know so where would that where would you be on your retirement age or your desired retirement age when I do a retirement plan for someone and this is again and I’m going to be asking u you to say yes to a survey at the end of the presentation when I put that up to say yeah I’d like to have a one-on-one conversation. What does that conversation look like? Basically we go through to see what’s important to you in your retirement. Are you on the verge of retirement? Are you retired already? Are you still 10, 15, 20 years away from that? And we can kind of work up a plan. So, for example, if I have someone that I’m looking at maybe retiring in the next 2 to 3 years, they might be saying, did I save enough? Did I do enough? What can I spend in retirement? And I work up a full comprehensive plan, complimentary. We do not charge for this plan. And we can dig into many different scenarios. What if you wanted to take social security earlier? What if you wanted to take it later? What does that look like for your retirement plan? Would you want to spend more? Would you want to spend less? We can figure out what a good spending amount is taking inflation into account and we’ll build this full retirement plan for you. Again, complimentary. And then maybe we can start to say, how do we invest? where we put these assets to get to this end result of this retirement plan. So nearly half of people retire in their uh early 60s. So 44% of people in that 61 to 65 range. You could see some much earlier and again some much later as well. So depending on what uh your strategy is, maybe we can help you figure out what your retirement age will be. couples planning for age differences. Now, when we look at sometimes you might have a couple with a 5year or 10year age difference. In this case, we’re looking at a modest two two-year difference. In this scenario, it’s assuming the husband is age 25 in this and the wife age 23 uh when they get married. And where does that come into? It’s not a big difference. But why is that important to even talk about when we get to the age of retirement age in that retirement era there and we look at age 65? The Medicare. So if someone says I want to retire at age 65 and I’m going to go on Medicare, but my spouse is only 63 at the time. Uh so how much is healthcare going to cost? you know, if you do it outside of that, if you don’t have that work plan anymore to cover both of you, yes, the 65year-old is eligible for Medicare, but what if there’s pre-existing conditions? What if there’s issues on the on the spouse in this case that is 63? How much is that going to cost? So, it’s an again, it’s an important thing to think about about retire retirement and the age differences. And then when we look at the later years of life expectancy when we when we talk about age 65 if you if someone reaches the age of 65 statistically a male might live till on an average to age 82. Uh it’s again on average some longer some shorter but an average of age 82. So that’s why we have 82 and 80 here. So assuming that what if the husband in this case passes away at age 82 and the spouse age 80. A a female a woman age 65 has a potential or actually a age 80 in this case you have that woman would have the potential to live another 9 years again alone not having the spouse here. What kind of income difference would that be? Instead of two sources of social security come in, there’s only one now. What does spending look like? What do the assets look like? Is there a home? Is it owned? We can work up a plan again just to see if one if both of you are here, what does that plan look like? What if it’s only one of you? What does that plan look like? And again, we can certainly work that up for you. But that age difference does come into play. and important ages for retirement. So, we’re going to cover from age 50 up until about age 75 here. And some target things that will happen starting at age 50, you can do what are called catch-up contributions, which means if you are contributing to a 401k or traditional or Roth IAS, at age 50, you can contribute a little bit more than if you are 49 and younger. So, starting at age 50, you can start to pad those a little bit more. If you’re able to save as much as you would like to, you can do a little bit more starting at age 50. At age 55, there’s ways to early retirement, setting up uh qualified employer plan, HSA catchup, uh at age 65. So, there’s ways to start income streams at age six at age 55 if you are retiring that early. age 59 and a half. If you are under the age of 59 and a half, traditionally you cannot withdraw from any retirement accounts like 401ks or traditional IAS or even Roth IAS to get the full benefit under age of 59. You have a 10% penalty in addition to any taxes that would be paid uh if you are under the age of 59 and a half. If that once you get that age, then you can take those out penalty-free. You’re still going to pay taxes on those traditional and 401k withdrawals, but you will not be paying that 10% penalty. Age 60, that’s the earliest that a widow or widowerower can start social security. If a spouse passes away, they’re uh you can normally it’s age 62. The next number that I’ll be talking I could would talk about is the earliest you can take social security is age 62. But if you are a widow or widowerower situation, then you can take it as early as 60. Age 65, that’s your plus or minus 3 months before usually typically a month or two, maybe even up to 3 months prior to your 65th birthday, you should be starting to apply. If you especially if you don’t have that work plan anymore, uh then you need to start applying for Medicare. That’s when it’s uh eligible. And that plus or minus three months, you can defer as late as three months without penalizing uh yourself. So uh you have that plus or minus three months. Age 67, that’s for many people the full social security age of getting your full benefit is either it’s between 66 and 67. The majority of people now based on where we are. Uh most people at that 66 range are getting into uh social security already. Age 70, that’s the maximum for social security. So 62 is the earliest you can take it. Age 70 is the latest you would take social security. If your full retirement age is 67 and you defer till 68 to take your social security, you’ll get an 8% increase if you defer it that year. If you wait a nut till age 69, you will get another 8% added on. And age 70, another 8% and it stops increasing. So there’s no reason to wait past age 70 to take your social security. And then finally, age 73 and 75. Those are the ages that you have to start taking out of retirement accounts. 401ks, traditional IAS, and the SE IAS, you have to start withdrawing. It’s called a required minimum distribution. Typically, when you are the age of currently at 73. If you are born 1960 or later, it’s age 75 will be that age. So, if you were 73 this year and let’s say you had a $100,000 IRA, you would have to take out roughly about 3,800. It’s about a little under 3.8% 8% is that first year, but that percentage that you have to take up take out goes up a little bit every year. So again, I’ll throw a little reminder that if you do have any questions, uh you can um you know, I’ll get to those at the end of the presentation. Uh taking aim at your retirement target. Rule of thumb number one, save enough to generate 70 to 90% of your pre-retirement income. So if you’re making an income and you know some expenses might go away and maybe you can live on 70 to 90% of that, some of those costs that would potentially go down. Maybe your mortgage is paid off and you’re driving less because you’re not going back and forth to work. Maybe you’re buying less clothes and you’re not going out for lunches and things like that that you might have done when you were working. Uh so some of those costs that might go down, some of the costs that do go up, health care costs, uh travel, utilities, your home more, maybe using more heat, more air, more water. Uh so utilities could potentially go up and home maintenance. If you’re like myself, I’m sitting in my basement right now uh where I finished my own basement and I had a couple of contractors uh for for some help, but uh I’m a fix it guy around the house and I love to do those things and hopefully I’ll be continue to do that in retirement. Uh when I talk about health care, health care costs going up, uh some people are aware of what they’re really going to be paying for health care costs in retirement when we talk about Medicare. Traditionally, if you are a married filing joint couple and you are uh both on Medicare and maybe a supplemental insurance, what you’re going to be paying currently right now, it’s $22.90 each for your Medicare Part B. Your Medicare Part A you don’t have to pay for. That’s covered. A covers your hospital coverage. B is your doctor visits and you have to pay per for B. that comes out of your social security check or your social social security payment. And that so a little over $200 each if you have a supplemental plan each would be paying estimated about $200 for a supplemental plan. And then if you have prescript prescription drug coverage part D. So Medicare part D prescription coverage and that’s another 40 to 50 a month. So if we’re looking at Medicare part B at 200 each that’s 400 total. Your supplemental is another 400 total and then your so we’re we’re looking at about 800 and then your Medicare part uh part D is going to be another 100 total um you know for about 40 to 50 $40 to $50 each. We’re looking still at about a $900 healthc care coverage and that does not include medical I’m sorry it does include dental or eye coverage. So there might if there’s that need, there could be some a little bit more additional cost on there. So, but we’re still looking at, you know, kind of the minimum $900 a month for Medicare and supplemental coverage costs that will go away in retirement. You’re not paying into Social Security anymore if you don’t have a paycheck coming in. And retirement contributions um would be stopping. So, if you don’t have a paycheck, you’re not putting in a percentage of your salary into a 401k. So again, maybe you know with some of those costs going up, some going down or being eliminated, maybe you can live on 70 to 90% of your pre-retirement income. Rule of thumb number two may save a multiple of your salary. Now some people will look at this and say maybe I’m way over that or maybe I’m not where I should be based on certain ages. You can see from 30 to 65 every 5 years. basically saying if you are this age based on a salary maybe you should have this much saved up right now. So if you’re 55 years old uh $100,000 salary you should have 600 to 800,000 saved. Now maybe you’re more than that maybe you’re less than that. Again that’s part of the planning that we do. Um it doesn’t mean that someone cannot retire. It depends on what you’re looking to accomplish. I’ve done many different retirement plans and some very wealthy and some getting by in uh in their working years. Some are paycheck to paycheck and can they still retire based on maybe what they’ve been able to save in a 401k or some other retirement accounts. So again, it’s a complimentary plan that I’ll be offering to you and uh so we’ll see what that what that means to uh some people. So again, here’s just some um rule of thumb numbers on here. So don’t read too um directly into those uh that depending on where you are. So rule of thumb number three, save enough to generate a 4% withdrawal rate. Statistically, it’s a very safe amount that you can start to draw from accounts and make sure that you don’t run out of money. So, what does that look like for 20 years? If someone wants to take out a 4% withdrawal rate and they want a desired income of 25,000 a year, if go back to the when we had very low interest rates, in this case, we’re looking at a 1.5% rate of return. someone very conservative go back when interest rates were much lower. They would have to fund $545,000 in something to earn that 1.5% on average to get 25,000 a year income. And this is also showing an increasing by a 2.5% a year for inflation. So this is increasing income. So but what if you got a 5% kind of where we are on some interest rates? I do have some interest rates available in some investment accounts that are earning a 5 plus% interest rates. So if based on that 545,000 that someone would need to save at 1.5% interest, if you earn more, you could fund less uh to get that same 25,000. Then you can see for generating 50,000 of income or even 100,000. So, this is something in addition to maybe social security or maybe some pension income that you could um you know get some higher income, but you would have to fund some type of an account to generate that income. So, sustainable withdrawal rates, how long will a portfolio last based on how much you withdraw? So, starting at the top is a 3% withdrawal rate and then four, five, six, seven, all the way up to 10. Obviously, the less you take out, the longer that will last. Uh, but this again is just looking at a stock and bond portfolio. It’s not a specific portfolio. This is just a hypothetical. Uh, so this is not it’s like a 60/40 stock, bond, cash uh, mix, but basically saying that if you take out little 3% that’ll last a good long time. If you want to take a much bigger percentage like 10% it could be gone within 10 years. And again why is that uh 10 years exactly? It’s around that range but again this is counting on increasing income as well at 2.5% a year for inflation. So, what you need to say for a 20 years of withdrawals based on a 3% rate of return to get 25,000 a year income, you would need 476,000 that will last for 20 years increasing by 2.5% a year for inflation. And oh, you would need 952,000 to fund 50,000. Uh 1.9 million to fund a 100,000. But what if you got much more return? you would be funding less. That 476 goes down to 370 or 365,000 to generate 25,000 a year plus 2 and 12% increases per year inflation. Uh so this is just an idea of how if you want to get income from your plan and this is one of the things when I do the retirement plan for example my wife and myself we have our desired income range. We know what we’re going to be getting as well estimated for social security at our desired ages and what I’m going to get, what my wife will get. What else would we like to do? We’re probably going to be doing a couple of months out of Illinois in the winter months uh to and we know that’ll be a little bit more expensive, but we’re built up a budget of what can we spend in retirement based on what we’ve saved, what income we have, social security and a very small pension, and what can we spend. So, we’ve worked up that plan for ourselves. Mass maximizing your nest egg. Take advantage of worksponsored plans. So, this we’re going to talk about a couple age 50 and one is an earnner of 150,000 a year and one is a volunteer with no uh earned income coming in. But what would they have the opportunity to save each year? Maybe they’re saying, “Okay, we’re age 50. We need to pump up our saving a little bit more. What’s their maximum that they could save in retirement accounts?” So when we look at like a 401k, let’s say that Mister in this case has a 401k and he can put in 24,500 a year typically. So we’re going to add that 24 thou,500 and he might get a company match of 4500. But if we go back to one of those screens earlier where it said how much can uh it’s called a catch-up contribution on one of those screens that we talked about and all those varying various ages of target uh ages that were on that page. Uh so in this case he is age 50 50 and over can put an additional 8,000 in a 401k. So he could put in his 24,500. He gets a company match of 4500 and he can put in an additional 8,000 to for that catch-up contribution. Then what if he wants to contribute to some type of an IRA, whether it’s a traditional IRA or a Roth IRA and we could see that his income here is 150,000, but the maximum for married income for a traditional IRA is 149,000. So, he’s not eligible to contribute to a traditional, but he can contribute to the Roth IRA because that income limit is 252,000. So, he can put 7500 plus the additional 1,100 for the ketchup contribution. Excuse me.
And what about the spouse? So, she’s not working. You have to have earned income to contribute to a 401k or a traditional IRA or a Roth IRA. You have to have earned income if you want to contribute to those. But she doesn’t have earned income, but she can because they’re married filing joint. She can use his income to make IRA contributions. So, she’s going to put in her 7500 plus an additional 1,100 because she is age 50. And what’s the grand total? 54,200 per year that they can do. So if they do that 54,200, bear with this screen one moment because it does say 51,000. This page did not get updated. This was previous numbers from previous year, but it’s updated to that 54,200. But the next page is going to be corrected again where if you could save 54,200 a year with growth at a 6% average rate of return. Again, not a specific investment. Just saying hypothetically, what if we had an investment that averaged 6% average rate of return for 15 years, about 1.3 million that they could save in that 15 years if they maxed out what they are able to do in retirement accounts. So, if you are in that age range and you’re thinking, man, I don’t know if we saved, you know, if we’re are we on pace, are we on the right track? uh there’s still room uh for uh to get some some of that money going. Getting a portfolio checkup. Again, if you do have questions, chat box, Q&A box, and type away, and I will get to those at the end of the presentation. I do know we have some questions there already. Uh getting a portfolio checkup. Uh how’s today’s job uh um jobs uh complicate retirement planning? The average worker, Wow, this is a big one. I don’t think I’m here at 12 times, but the average worker switches jobs 12 times. 63% of workers have access to defined contribution retirement plans. 401k, 403b, if you’re a government worker, 457. Um, and so there’s different types of plans that you can contribute to. 69% of plans have an automatic enrollment. What if you are a 6040 investor? Which what this means kind of a a moderate. You have stocks in your 401k, maybe some bond funds in your 401k. You’re not too aggressive but not too conservative. You’re that moderate 6040 mix. That’s maybe your goal to be that type of an investor. But what if you have some old 401ks out there and previous job one, you see it’s all blue. That’s basically that’s 100% stock. And then we have job two that is about 90% stock and the overall you might be way more aggressive than you think because your goal you’re only kind of paying attention to that current 401k. What if you have some other investments that you’re not keeping an eye on? Having a portfolio checkup is a huge thing that you should be doing. Making sure you know what you have. How are you invested? Are you too aggressive? too conservative and especially when it’s in an old 401k sometimes companies can make changes within the plan but you’re not working there anymore so maybe you’re not getting all the news on that 401k that maybe they’ve done some changes and that does happen within 401ks where they might remove funds maybe it’s something that you were invested in they remove it from the plan so if you don’t do anything it might just go through like a money market in that 401k and not earning as much. So again, getting a portfolio checkup. What do you do if you do have too much invested in stock? And so we’re going to look at a scenario here. So this is the person that has 900,000 saved for retirement. And their goal is to get to the million. And you got three years to go to retirement. You got three years, you’re almost there. And thinking that, okay, I’m at 900,000. If I just get an average of an 8% rate of return and that’s about 1.1 million, a little more. And so you’re saying, okay, that’s a doable thing. If I get 8% average rate of return, I hit my goal and then some. But in this case, we’re going to look at years 1999 and then 20201 and 2002. So we had three years in a row, if you remember that time period back then, uh where we had three years in a row of the stock market going down. It went down a total of about 50% on the S&P 500 over that three years. Quickly, what happened in that time period? The.com bust happened at the end of 99 going into 2000 or the internet bubble, however you want to term that, but basically tech stocks tanking, dragging the stock market down in 2000. And then 2001, we had 9/11 happened. So compounding on top of the.com bust and then 9/11 and the stock market. I remember the stock market was closed for about a week at that point. uh right very close to Wall Street and they shut the market down for a week and uh what a what a brutal time that was. And then at the end of uh 2001 going into 2002, if you remember a company called Enron going out of business, Enron, World uh um WorldCom, Tao, uh so there’s a few companies that there was corporate scandals going on. Arthur Anderson, the accounting firm, took a fall for some of these things, but uh you know, so we had the dotcom bust, 911, some corporate scandal things going on. Three years in a row, stock market going down. That portfolio in this case, 584,000 and uh and then you’re retiring. If you were more in a 50/50 portfolio, you would have had 871,000. And then when the markets did rebound, being a little bit uh you know more moderate, that 50/50 investor at that time rebounded faster than digging out of that big hole by being more aggressive. Think of when people start to get nervous about when the markets go down and we’ve had volatility even over the last months with the Iran uh uh war going on and many different things and people start to get nervous about the markets. Um, but uh this is in this case what you got three years to go. You got your 900,000 and you’re a 50/50 investor and now we’re looking at 2007208 where the we had the financial crisis going and the stock market tanking and this again is a 50/50 portfolio goes down to that 700,000 and then in this case this is the person that got too nervous and jumped out of the market and just went into safety. the tea bills here, but basically savings CD type of interest and so going back up. But then when the market did rebound, not fast, but quick enough that in this 50/50 portfolio, uh you would have rebounded by the time that retirement uh time period came for this person, that three-year time period. But if you were in T bills or savings CD type of investments and interest rates were pretty low for many many years and you still didn’t reach your goal because you got out of the market. So that’s one of those where are you invested? How should you be invested at your age, risk tolerance, time period that you’re looking to be investing and what is appropriate for you. part of that retirement plan or financial plan is something that you and I would work up together and see how should you be invested updating beneficiaries again very important you can see new spouse if there’s children or if you need a trust or or have a trust the new spouse situation I do know of a family that uh there was a husband wife three children husband wife get divorced husband at you know few years later, gets remarried. Fast forward about 15 to 20 years later, husband passed away. There was a $700,000 life insurance policy that the ex-wife was still named as the beneficiary. I believe it should have been the kids. Some are saying that it should have been the new wife. I don’t know. I know there was lawyers involved in that. However, that ended, but uh uh still had the ex-wife as the primary beneficiary. creating a social security strategy. So, we’ll dig into a little bit on social security, how what’s going on with that. We see this blue line in this green uh area in here. So, the blue line is below the green, meaning the money coming in was more than the money going out. That’s what was happening for years with social security. As baby boomers were getting into the workforce back then and getting into working, their funding, you know, their percent currently 6.2% of your paycheck goes into social security. If you work for a company, your company matches that 6.2%. So 12.4% of your income goes into social security. And that’s been going on for years that you’re you’re funding social security out of your paycheck and then money goes out. And then around 2020ish is that where that crossed over. There’s more money going out than there is coming in. As those baby boomers are retiring at record paces right now, there’s more people going out of the workforce than there is coming into the workforce. So, we’re starting to see this surplus, which is this big social security trust fund, couple trillion dollars in there, and it’s been building, building, building all these years. Now, it’s starting to decline a little bit. And it’s estimated by about 2033 2034 range that that could go to a zero balance. Now that doesn’t mean social security is done and gone but if nothing is done then people could take an estimated about a 20% cut in their social security that we it’s the assumption is that you know the paychecks in the future will cover about 80% of people on social security. So what are they going to do? Who knows what? I know it’s talked about all the time during uh elections, but doesn’t seem like much ever gets done. Uh one of the solutions is to raise the social security 6.2%. Increase that. Uh that would stretch it out much much much longer. Uh or tax higher income earners. Currently, if you make more than about 180,000, you stop putting into social security. So if you make 250,000 there’s about 70,000 of income for that person that is not taxed at the 6.2%. So are they going to raise that much higher 250 500 or all income? Uh that would assist in that too. So who knows what’s going to happen. Um the one of the things is they could take away this the cost of living increases in social security. Currently it’s you know average two two plus% on average per year increases. Are they going to take that away? Your full social security age is based on your year of birth. So right now we’re into that 1956. If you’re in there, you’re already reached a full retirement age. So 57, 58, 59, and age 60 or later is age 67. So you can see based on the birth year, there’s a couple of month difference on each of those years. Uh so depending where your birth year is, you can be determined if you have not done so already and you don’t know what you’re going to get in social security because if you and I do have that conversation on a retirement plan, that’s an important part of your retirement and we need to know what you’re going to be getting in Social Security. If you haven’t done so yet, ssa.gov will get you there. There’s a couple of things you’ll kind of navigate through, but that’ll get you started to see what is your benefit going to be for social security based on your full retirement age, based on these years of birth. If you want to take it as early as 62, you could find out what your number is. If you want to wait till age 67, you can find out what your number is. So, you can start to get a gauge of when do you want to take Social Security based on how much you’re going to get. These are the maximum benefits actually that we’re seeing on here. So currently at age 62, the most someone can earn at age 62 is 29.69 a month all the way to age 70 at 51.81 a month. And you can see all the ages in between here. Now the averages much less than that. So when we look at uh um you know the average is a little bit more than half of what the maximums are. So you might have some high income earners, you might say have lower income earners. Your social security income is based on your highest 35 years of working, not your last 3, your last 35 or the first 35, it’s your highest 35. And just for reference, if you took some years off, maybe you raised children, uh, or for whatever reason, you did not have earned income in some years. Let’s say you had 30 years of income. You have 30 numbers and you have five zeros. That bring your your your average down a little bit. Let’s say you work a 31st year, so 31 years of working and four zeros. So every year you work, you knock a zero off or potentially a lower number. Myself when I was 16, 17, 18, 19, you know, going through school, I was not making big income. So hopefully those are not part of my calculation. Um, so but every year I work and make a higher income than pre, you know, those old younger years, then uh my average kind of creeps up and I can see what my estimated uh income is going to be. income replaced by social security. So basically what this is saying is that if you are getting social security at an average amount and you want to get let’s say 50,000, you want to have 50,000 of income, your social security is covering about 50% of that. Where do you get the rest from? If you want to make 200,000 a year, social security is a much smaller percentage of that. So, um you need to come up with other investment or withdraw opportunities from other accounts or maybe you have a pension too. But again, social security based on the amount that you’re looking to spend each year, what type of income you’re looking for and how much social security you’re going to get, how much do you need to fund yourself? Building a retirement income stream. Uh so living off of income generating investments. So go back to when we had very low interest rates covid year right after 20 uh 2122 we had very low interest rates until the high inflation hit and then we had much higher interest rates but this is looking at what money markets and there were money markets I know some big banks pay actually currently less than this uh on this 22% and basically this is a $500,000 investment what type monthly income can someone get based on these very low interest rates? Not a whole lot of income. And if you’re looking for other interest rate things like bonds, things that pay interest, um if you put a little bit more risk on there, then you can get higher yields and higher income. sell 500,000 getting in a high yield bond getting 6.57% you’re looking at 2700 per month in income based on that 500,000 investment versus putting it in your mattress basically or in this money market getting $93 per month income. Uh so we’re get we’re not quite at the end here but we’re getting a little closer. So just again questions type away and I will get to those at the end of the presentation. Uh systematic withdrawals. What if you just have an investment account that you want to just draw from and this again is this is a let’s say a stock account. So you have a stock XYZ stock. This is just a generic thing. No no no specific investment. Uh, let’s say the share price is $5 a share and you have a h 100,000 shares for that $500,000 investment and you want to generate $1,500 a month income from your investment account. What do you have to do? You have to sell shares each month. So, in January, the price is at $6 a share. It went up. So, you need to sell 250 shares to get $1,500 based at $6 a share. What if that stock price goes down to $4 and now you have to sell more shares to get that same 1,500? So, are you looking for interest? Are you looking to sell some type of investment? Or where are you going to get your income from? So, if you have income producing bonds and things like that, you’re not taking from your savings, but you have fluctuations in the interest rates. Uh sometimes sometimes those interest rates could go up, they could go down, and it’s out of your control. If you’re doing just a systematic withdrawal, you have very consistent income, that $1,500 in that example per month income. The questionable part is you might be taking from your principal, your balance might be going down. Looking beyond the money. So as we look at uh retirement looking beyond the money basically a happiness curve when we’re younger when we’re more happier less responsibility as we get more and more responsibility with children and saving and doing things and the happiness curve goes down and then in the retirement years the happiness curve starts to go back up again. So where are you on your level of happiness? Uh when we look at health, friendship and your family, eeky guy, excuse me, Japanese term, something to live for, what you love, what the world needs, what you get paid for, and what are you good at? All combination of your eeky guy. Are you contributing to a cause, visiting family and friends, pursuing hobbies in retirement, traveling, starting a business, going back to school? I have a cousin that uh she is 67 and just graduated. She got her uh like a master’s uh uh degree and just in her 60s, went back to school. Never too late on some of these ages. Look at Peter Roier invented the thesaurus at age 73. Colonel Sanders KFC 65, triathlete at age 82. Uh look at started painting. Grandma Moses at age 76 and could you imagine climbing Mount Everest at age 80. I know that’s something that’s not on my bucket list. So retirement is wonderful if you have two essentials. Much much to live on and much to live for. Determine when the time is right. Take aim at your retirement target. Maximizing your nest egg. Getting a portfolio checkup. Again, part of that retirement plan that I can offer. And uh a portfolio checkup is a big part of that. Create a social security strategy. That’s another big part of the plan. When should you take your social security based on varying factors? Uh build a retirement income stream. And then again looking beyond the money. I would love to work with you on these types of things and hopefully you and I will have that. I’ll be putting up the survey here very shortly. Here’s some of the things that I do. Financial planning. The left side talks a lot about the uh the planning, estate planning, complete financial plan, retirement planning, and looking at all your different sources of income and savings that you have. And then on the right side, different types of investment products that I do offer and full financial services that uh that I do offer. Um whether you want to be very conservative or much more aggressive, we have wonderful products and services available for you that I would love to work with you on as I go through here. So you see my contact information up here. I’m going to be going through some questions and then uh I’m going to put up the survey here while I’m doing those questions. So you are able to um I’m going to put that up right now. And so if you would like to have a one-on-one conversation, please select yes on here and we can schedule a time to get together or Zoom where however we do that. Start even by phone if you wish. But hopefully you see that uh survey up on the screen right now. You also see on the screen the um make an appointment with Joe. You see the QR code. If you have your phone handy, you can put uh um you can just aim your camera on there and it’ll bring up just tap on the yellow thing that comes up and you’ll have access to my calendar and um you can just schedule it at your convenience, but that you can do that right now if you so choose. Okay, let me go through some questions here. Um so, what about pension? I think that came up during the varying ages. Some pensions can be as early as age 55. Um, I have a current one from I used to work for a grocery chain if you’re here in the Chicago area, Dominic’s way back when, and I was in the union long enough to get a small pension. Uh, I’m able to get my full pension on that at age 60. So now, typically age 55 is the earliest for for many of those types of pensions, but it could be dependent on your plan as well. So, what about pension plans as far as when can you take them? Uh, typically 55. Mine is age 60. Some companies might make you wait till age 65 to take that age, uh, 60 and still working. And no, um, uh, can I go 100% in the Roth 401k? Uh, yeah, you can. If you want to put 100% of your 401k in Roth or the regular traditional 401k or put 50/50 6040, you can mix and match it any way you want. But if you if it works in your um tax budget, I’ll call it. Uh many people do the regular 401k so they get the deduction so they don’t have to pay taxes, especially if you have someone has higher income. They’re trying to get their tax bracket as low as possible. that person would be contributing to the regular 401k to get their income down. If uh some people say well it’s okay we have our other deductions or however that might work and someone might want to just contribute or max out the all in a Roth 401k. Yes, you can. Uh I would like a comprehensive plan looking at two years to retirement. I got your info on there. Hopefully you did select yes already. Uh but absolutely we can uh have that discussion. Um, what happens to social security income amounts if I decide to work part-time after your full retirement age and already receiving social security? So, yeah, you can work. So, if you wait till your full retirement age um, and you want to continue to work, you can be on social security, you can work as and earn as much as you want as long as it’s after your full retirement age. And how does that affect your social security income? If you are currently on social security, currently working and you have higher income, if it knocks off a a lower income year, your potential, your income can increase. It won’t go down, but it can increase if you are knocking off lower income years. So, that’s certainly something that uh you know, if you want to work and maybe just work part-time, it might not increase your social security income. if it’s just part-time, lower income. But yes, you certainly can do that. If I retire at 57, but wait till 67 to take Social Security, will I get the full amount or uh uh that I would have gotten if I worked until 67? Uh maybe, maybe not. So, here’s what that is. Your full Social Security is uh generally finalized at your age 62. So, when you get your social security number at age 57 and you uh stop working, social security has the assumption that you’re going to work until 62. So, when you see your number, it’s possible that it could be lower because you did not work until age 62, unless you had 35 years of higher income. So, I’m not saying it will be lower, but it could be uh because your final number is calculated at 62. Uh when do you start adjusting a portfolio prior to retirement, 10 years or 5 years? Um always want to make sure based on what is your risk tolerance, what is the time period that you’re looking to invest? Uh and what’s the goal that you’re trying to accomplish. So, some people will say, uh yeah, I’m 65, but I’m still more aggressive. I have risk tolerance. I think if I lost a little bit of balance, I think I’m still okay. Some people will still have that tolerance. I have many people here at the credit union, we have many conservative people that if someone says, “Here Joe, I have 100,000 for you to please invest it.” But if this goes down to 99,999 or lower, I don’t sleep at night. So, I need something guaranteed. So, uh, riskreward, time period, what is your So, hopefully you’re a yes on there and we will have that conversation about how you should be invested. Okay, I think that was Let me see if anything else has popped up here and I don’t see any other questions. Um, that’s it. That’s all the questions that I have. I’m a couple minutes early. I’ll just wait just another minute or so just to see if anything else comes up. Again, I look forward to speaking with you one on- one. Thank you so much for your time and have a great rest of the evening. We’ll hopefully talk to you soon. Thank you. Bye-bye.