a month. If you could wait until you were at $2,000 a month, 2%of that is 40,000 or excuse me, $40 a month. So again, wait as long as you possibly can to take out social security. Now, it all depends on your age and everything. So there’s many other factors that go into play that, but that’s typically what I recommend. Now, for the majority of people at 65, your your full retirement age is 65 to 67 years old, but at 65, everybody [clears throat] should sign up for Medicare Part A. Medicare Part A is free. It doesn’t cost anything to have. It’s hospitalization. Medicare Part B and D, those cost extra. So if you’re covered under group plan, typically you won’t sign up for Medicare Part B and D, but you do need to sign up within 3 months of your 65th birthday to sign up for Medicare Part A. Now, at 67, everybody’s going to hit their full retirement age. It’s either before that or afterwards. And then at age 70, anywhere from your full retirement age 65 to 67 up until age 70, if you don’t take out your your social security, you get what’s called delayed credits. You get an 8%bump up until you start taking it out. Okay? Now, everybody’s going to have to start doing RMDs anywhere from 73 to 75 years old. So if you are not 73 by the year 2033, your full retirement excuse me, your RMD age is is going if you are if you are 73 by the year 2032 or less, your RMDs are going to start at age 73. If you are not 73 by the year 2033, then your RMD is going to start at age 75. Why they keep changing the goal posts, and know about that, but it used to be 70 and a half, then they jumped it up to 72, then they jumped it up to 73, and then again, if you’re not 73 by the year 2033, it’s going to jump up to 75. I have not heard of anybody moving that to down the road later than that. I I haven’t heard anything, but anyway, that’s when you have to start taking out your RMDs. And the RMD starts out roughly about 4% for the year. Okay? So, what they do is take the the total dollar balance you have in your traditional IRA on December 31st of the year prior to reaching 73 or 75. And then based on your age, uh again, you’re going to have to take about about 4%out the first year. It’s a little bit more than that, but roughly about 4%. And then every year thereafter, the percentage that you have to take out will slowly increase every year. Okay? So, just some things to take a look at. Uh dates and ages to take into consideration as you’re looking to plan your retirement. Now, what you want to do with number two here is take aim at your retirement target. So, I’ve got three rules of thumb here to to take a look at here. Rule of thumb number one, if you can save enough money to generate anywhere from 70 to 90%of your pre-retirement income. Now, that’s a good rule of thumb. I’ll be honest with you, the majority of people don’t have that, and that’s okay. But, if you can do that, then you should feel very comfortable that your retirement is going to be um that you you will be comfortable in retirement. Now, there’s some costs that probably will go down once you do retire. Your mortgage, hopefully, will go down. Hopefully, you don’t have um a mortgage anymore. Transportation, if you’re unfortunate and don’t work from home, as I mentioned I do, uh then transportation should go down. Clothing, you don’t have to buy these nice shirts anymore. And food should go down because you’re not out needing to go to lunch with co-workers, going out to dinner afterwards or whatever. You will have time to be able to prepare food at home and that obviously is a lot cheaper than than eating out. Now there’s some costs that may go up. Healthcare, especially if you’re covered under a group plan, your healthcare may go up depending on how much your company pays for it. Travel may go up. You You know, I’ve got a buddy of mine from Australia and he says that either he has all the time in the world to go back and back and visit family or friends, but he has no money. That’s when he was been unemployed. Or he has all the money in the world but no time. That’s when he’s been employed. So hopefully in retirement, you’ll have all the time in the world to be able to go do that. And hopefully you’ll have enough money to be able to do that as well. Your utilities should go up. May go up. You’ll be at home more often. You’ll have the TV on more often. You’ll have lights on more often. And so your utilities will go up. Home maintenance. In my case, I can almost guarantee you that’s going to go up. I’ve got grandkids. I’ve got five grandkids. And if I’m home, they will probably come over more often. And I just caught my grandsons, they’re six and four. Those are the oldest oldest two. They thought it was really cool to throw dirt in my air conditioning unit with the fan going on. [laughter] I got to love them. I got to love them. Now things that may go away, costs that may go away. Social Security payroll taxes. If you’re retired, you don’t have an income anymore. And so you don’t have that cost anymore. And then also contributions, if you’re not working, you can’t contribute to a retirement account. So that will go away as well. Again, if you can plan and and earn anywhere from 70 to 90%of your pre-retirement income, you should feel very confident that your retirement is going to be that you’ll have plenty of money in retirement. So, rule of thumb number two of three is save a multiple of your salary based upon your age. Again, this is a rule of thumb. So, let’s say that you earn $100,000 and you’re age 55, so you should have anywhere from six to eight percent six to eight times of your salary as saved up for retirement. So, that’s $600,000 to $800,000. I’ll be honest with you. I know many people that are retired with less than that. Okay? Again, these are just good rules of thumbs. If you can do this, then you should feel very comfortable in retirement. And then based upon your your age is here will determine how much you should multiply your income on to have the amount set aside for retirement. So, rule of thumb number three, save enough to generate a 4%with with withdrawal rate. So, if we take a look at that here, and let’s say that you want to withdraw 4%from your assets over the next 20 years, and you want to have a 25, 50, or $100,000 income coming in of that 4%uh coming in, if you get a 1.5%return, then you’d have to have about a half a million dollars in in uh savings or in in retirement. About a million dollars if you want 50,000. If you want 100,000, you’d need about a little over two million dollars in there. Shameless plug, Alliant, our savings account is paying double that 1.5% return right now. I’m just kind of saying, as I’m sure you all are aware of that. Now, if you get a little bit better of returns, say you have 5% return. Again, a 5%return is not being aggressive at all. It’s still considered very uh very um uh uh conservative. So, if you want if you’re getting a 5%return and you want $25,000 for the you know, withdraw 4%to get $25,000 over the next 20 years, you need 391,782 if you want 50,000. If you want a a $100,000 in uh in income, you need about 1 and 1/2 million dollars in retirement. Now, what do you need to do if you just want to withdraw over the next 40 years? Okay? Again, if you have a 3%return with the same desired income, you need 476 for 25,000, uh 952,000 uh if you want 50,000 in retirement, and if you want a 100,000, you need 1.9 million dollars. Now, again, if you want a six or if you have a 6%return, again, the bigger return you get, obviously, the less amount that you need. And again, 6%is not being aggressive at all whatsoever. Uh it’s just kind of on the low end of a balance, but you need 365, 730, or a little under uh 1 and 1/2 million dollars if you want $100,000. Okay? So, just some numbers to take into consideration if you’re if you’re doing this. Okay? Now, let’s maximize your nest egg. Let’s say that you have kind of started late. If you take my father-in-law for example, my wife is from Ireland. Uh my father-in-law was able to come to the States uh a couple of years after my wife and I were married um just through a immigration system back then. They came through. Um when he came to the States, he had nothing. He could not bring any money with him. And so, he had to start late in life and be fairly aggressive. So, let’s say that you’re kind of in the same situation or you’ve maybe started a little bit later in life. Let’s take a look at uh the possibilities and let’s look at a hypothetical example here. Okay, so we have two people both age 50 years old. Let’s say the wife is a retired school teacher, but now she just volunteers her time at a historical society. Let’s say the husband is an engineer and he makes $150,000 a year. So, his company offers him a 401k and here’s the maximum contributions for anybody in a 401k. It’s at 24,500. And let’s say that his company matches that at 3%. So, they’re putting in $4,500 a year on top of that. Now, because he is 50, as I mentioned earlier, you can start to contribute more into 401ks and IRAs. And in a 401k, if he’s 50 years old, he can do a maximum of eight $8,000 into that. So, let’s say he maxes out the eight $8,000. Okay, now he can contribute to a traditional and a Roth IRA because he’s working. He can contribute to the Roth IRA because his income is less is $150,000 and so he can do that. As I mentioned earlier, the maximum contribution for anybody and everybody in 2026 is $7,500, but because he’s 50, he can do an additional $1,100. So, that’s $8,600 that he can contribute into that. Now, even though his wife is not working, she volunteers in two a historical society there, but because he is working, she can do a maximum contribution into an IRA account on her for herself based upon his income. So, she contributes the maximum into her 401 or excuse me, into her IRA account as well. Now, if you add all of these up every single year, the maximum contribution you can do into um your retirement accounts is uh $54,200. Well, let’s say they just do $51,000, okay? They don’t quite max out everything. And again, since they’re 50, he’s looking at retiring at 65 years old. Let’s say again, not being ultra aggressive, he’s fairly a balanced investor and he gets a 6%return. Over those 15 years, his nest egg could increase by $1.2 million. So, it’s never ever too late to start contributing. It’s better late than never. So, if you’re in a situation where you think you’re behind the eight ball, don’t panic. Let’s just get a game plan going and uh make sure that uh we can do the very best that we possibly can. So, what you want to do every single year is do a a portfolio checkup. Okay, the average worker switches jobs 12 times in their lifetime. One of my sons is probably got that half of that already. Um 63%of workers have access to some sort of defined contribution plan through their work. And for any new people that are starting starting jobs, 69%of uh companies have an automatic enrollment, which is kind of nice. You have to kind of opt out if you don’t want to do it. But, let’s take a look at perception and reality. Let’s say you have previous uh well, right now that you’re working, you’re getting closer to retirement and you can see I’ve got plenty of gray hair. Um I still have a number of years left. I’m 58. Uh so, I joke with my boss all the time that he’s stuck with me for the next 12 years, whether he likes it or not, and so far they like it. Um which is a good thing. Uh so, let’s say your current retirement plan, you want to be a little bit more on the balanced side, 60%stocks, 40%bonds. But, if you looked at previous jobs that you had when you were younger, you might have been more aggressive because you had more time on your side to ride out the waves of the market, the ups and the downs. So, if you had a couple of previous jobs, your first job was very aggressive, your second job was fairly aggressive, but now that you’re in your your current job, you want to be a little bit of a balanced investor. If you combined all three of those, you might be more aggressive than what you actually want to be. So, you want to take a look at old 401(k)s, IRAs out there, and just see how are you allocated according to what you were wanting to do at this point time. So, let’s take a look at some scenarios here, some real-life scenarios, and say, “Okay, let’s say you have a goal of retirement in 3 years, and you’ve got $900,000 in a in your retirement account, and you want to have a million dollars when you retire in 3 years. Okay? If you get an 8%return over those 3 years, you’ll have $1.1 million in your retirement accounts. Okay? But, let’s say that happened in 2019 Excuse me, 1999, the tech bubble burst. If you were 100%stocks back then, the tech the stock market was down 3 years in a row, the S&P was negative for 3 years in a row because the tech bubble burst, your $900,000 would have dropped down to 584,000. Quite a drastic difference. But, if you reallocated before all that happened, and let’s say you were 50%stocks, 50%bonds, your $900,000 would have dropped down to 850 871. Barely a glitch. If you stayed where you were at, didn’t make any adjustments or changes, 12 months later, your 50/50 stocks and bonds would have been over the million dollars that you wanted to. Your 100%stocks would have taken you almost 4 years to get back up to where you wanted to be at. Okay? Over the million dollars. Okay? Now, let’s see what happens when people panic and get out of the market. So, again, let’s say you were looking at retiring in 3 years. My father-in-law was a perfect example of this. His goal was to retire in 2008. We all know what happened in 2008. But, if we take a look at this, let’s say you’re at 900 and 900,000 dollars and you’re at 2005 and your goal is to retire with a million dollars 3 years later. If you were 50/50 stocks, your 900,000 would have dropped down to 700,000 dollars. If you panicked at that point in time, which unfortunately many people did, they saw their account value go down and down and down. They panicked and they took it out of the stocks and bonds and they moved it over to T-bills. You know, by the time after 1 year, it went down to that at 700,000 dollars. It in 2 years later, you would have been at 713. If you didn’t panic and you left things as they were at 50/50, you would have been back up to your million dollars in 3 years later. Okay? If you kept it in the T-bills and never got out, cuz unfortunately a lot of people just got nervous and didn’t trust the market, it would have taken you over 10 years, uh close to 15 years to even get back up to the million dollars that you were hoping for. So, again, do not panic. Get a good game plan going. Know that the market’s going to go up. know that it’s going to go down. Understand that the market is up on average 75%of the time, it’s negative 20 uh 12 uh 25%of the time. And when it’s up, it’s up quite a bit. When it’s down, it’s usually not down that much on for the most part. There’s We’ve had the big drops, I get it. Uh the Great Recession. Um the Great Depression. Hopefully, nobody’s on the on the webinar here that went through the Great De-Depression. Um but we’ve had other other time frames, the tech bubble burst at the turn of the century and everything. Again, get a good game plan going. Know that the market’s going to grow. Know it’s going to fall at some at some point in time. But there’s always time for it to come back up again. Okay? As long as you maintain and stay where you were currently at. Now, you definitely want to take a look at beneficiaries. Okay? I’ll give you a personal example on that. Uh my mom passed away in 2016. And my dad got remarried about a year later. Uh a little over a year later at at the end of 2017. So, he had a new wife. Uh he started to get sick in in 2024. Uh my brother and I, we were trustees on his account. So, before he passed away, we’re taking a look at a lot of his uh of his accounts and stuff. And we noticed that he had an old uh IRA account out there that still had my mom as a primary beneficiary and my only one brother as a as a contingent beneficiary. So, prior to him passing away, we were able to change the beneficiary around to go into his trust. So, he created the trust with some ben- fits of my stepmom. And uh picture or if you have young children or grandkids,
uh uh
Uh
with a will, your assets will go through probate probate debate, and it’s just so much better. It’s more locked into into stone and a trust. Um so, I recommend that you do a trust look at get a local attorney to do a trust. Or they’ve got the online trust accounts uh that you can set up uh that way. Those are typically a lot cheaper, um but uh take a look at any of those to do that. So, five out of the seven uh create a social security strategy. Now, when I talk about social security, I I hear all the time,”Oh, no, social security’s going to go bankrupt. We’re not going to get anything.”That is not the case. I’m going to tell you right here and right now that is not the case. We will always have some social security. May not be as much as we uh currently have, but here’s how social security works. For those of us who are working, we’re paying into it every single month uh when we’re every paycheck that we get, we’re paying into the social security trust fund. And then those that are currently on social security is taking that money out. So, up until 2021, there was more money going into social security than what was coming out. And then in 2021, things changed. Baby boomers to retire, and they have all the right in the world to be able to retire. So, since 2021, there is now more money coming out of social security than what’s going in. The thing that may go away is that surplus. Okay, in 2023 or excuse me, 2033, the surplus is expected to go away. So, that unless the government does something then people may only get 78%of what their current benefits are are are at. I highly highly doubt that the government, whoever’s in charge at that time, that the government of that time is going to allow uh Social Security to or people to get less than what they’re currently getting. I just don’t see that happening, to be honest with you. There are some things that they could do to stop that, and one of the things is increasing taxes. Nobody likes to say it, but that is a possibility, one of the things that they could do. Uh if they increased taxes by 3.65%, that would solve the Social Security problems, uh and then allow people to continue on with the same benefits that they are currently getting. Okay? There’s a couple of other things that they could do, um but this is just one of the options. And in true government fashion, nobody is tackling that issue now. Nobody’s getting ahead of it. They’re kicking the the the can down the road, so that somebody else has to deal with it. Sadly, unfortunately, that’s what’s happening. Okay? Now, as I’ve mentioned earlier, full retirement age, here’s the different full retirement ages uh based upon your your the the year that you were born. So, if you were born prior to 1956, you’re in uh full retirement age currently. ’57, ’58, ’59, it’s 66 and so many months. And if you were born in 1960 or or or after that, your full retirement age is 67 years old. Um and it’s just So, again, you can delay Social Security up until age 70, and from it, I’m in the 67 years old, uh I would get a delayed credit, an 8%bump up each of the 3 years if I delayed it till age 70. I often get the question is, what is the maximum amount of social security that you can get. Okay, so here’s the maximum amounts at different ages if you contributed into social security the most this is what you would get. The average though is quite a bit less. Okay, so for example at 67 let me back up the maximum is $4200. The average is 26. Okay, that’s quite a bit of a difference. If you had had an average wage and it contributed into social security you would get that. Um next slide is so social security depending on what your your income was prior to retiring and it social security may only cover a small portion of that income. So if your income at retirement was at 50 excuse me at $50,000 social security would cover about half of that. If your income was at $100,000 social security is only going to cover about 40%of that. So then again if you want anywhere from 70 to 90% you’ve got to come up with the other 30 to 50% of income. And then again the more that you earned prior to going on retirement then the the less of a percentage social security is going to cover that.
Now you want to build a retirement income stream in any income stream in retirement. [gasps] So let’s say you have a half a million dollars and you put it into a typical money market account earning 0.22 again shameless plug for Alant Credit Union savings but anyway at 0.22%you’re going to get interest every single month of about $93. And you’re welcome. Now again if you’re a little bit more aggressive not much more aggressive but a a bit more aggressive and you get uh double that at roughly about uh half a percent, your income on a monthly basis is going to give you it was going to net you um uh $214. Now, I again, if you be a if you’re a little bit bonds. Now, again, bonds can go down in value um if you hold individual bonds, they typically go don’t go down, but if you do like a mutual fund of bonds or an ETF of bonds or have those in mutual funds or ETFs, then they can go down in value based upon interest rates and stuff. But, if you’re, you know, let’s say you get a municipal bond with an average return of 3.94%, you’ll get an additional $1,600 a month. Okay? So, again, you don’t have to be uh very much more aggressive in retirement to get a substantial different return. [gasps] Now, let’s say you want to take out systematic withdrawals from your retirement account. You want to take out $1,500 a month, and let’s say you have an individual um uh stock of a company, and it’s uh currently selling at $5 a share. So, if you want $1,500 a month, you’ll have to sell 300 shares at $5 uh to get that $1,500. If the stock goes up to $6, then obviously, you’re selling out less number of shares at 250 uh uh shares to get your $1,500. But, if that stock goes down to $4, then you have to sell more shares to get the same $1,500. Okay? Now, I turning retirement savings into retirement income. If you invest in income-producing products, so mutual funds, stocks, bonds, ETFs that pay a dividend, then you’re there’ll there’ll no uh of your original savings amount, but your income may fluctuate because not all dividend paying uh investments pay out the exact same amount of dividends. If you want a more consistent, you’ve got a budget going on, and you want a consistent dollar amount return, then your income is going to remain consistent, but it may dip into your principal amount that you originally put in there. Now, the last item here is look beyond the money. Okay? In 2020 20 and in 2010 they they they put out a poll to see the economist put out a poll to see what is the the average happiness of people at different ages in life. And from 50 to 55, well, 45 to 55, that’s when people are least happy. I don’t want to say they’re miserable, but that’s when people are least happy. Uh they’ve got their children that are maybe going off to college and they’re stressed out about helping out pay for college, or they’ve got a a parent that’s maybe coming up with some health issues and stuff, or they’re looking at their retirement accounts and said,”I have not done enough. I need to want to do more.” The great news about all that is once you’re at 55 and thereafter, your happiness typically starts to increase. And then can increase for a number of different reasons. Number one, if your health is good, you know, we have a we have a lot better understanding of how to maintain and be healthy uh by based on the foods that we eat, based on the exercise that we that we do. Friendships is very important. And it’s important to me. Um I love to hang out with my friends. My family, uh my mostly, that’s primary, but uh friends are very important to me as well. As I mentioned, family also here is a big factor in me. Again, as I mentioned, I got five grandkids, got three kids, I’ve got five grandkids, and hanging out with them is just an absolute blast. I I I I realize that I am very lucky. All three of my kids get along very well. They haven’t always, but lately they’ve been getting on uh very well, and um and I get along with them. My wife gets along great with them as well. So, we’re I know that we’re uh very blessed that way. And so, that just adds a really a lot to uh the happiness factor that we have. Now, the island of Okinawa has got uh you know, they’re they’re known for longevity uh lifestyle, and they live many, many years and beyond the average uh for the rest of the world. And they have something based there that they called ikigai. Ikigai basically translates into something to live for. So, when you can find out what you love to do, and figure out if the world needs that, and how you can be paid for that if you if you want to, or find out things that you are good at, all those contribute to your ikigai. All those contribute for uh things to live for. Now, find out in retirement what is best for you. You may want to contribute to a cause. I talked to a client earlier today, and she volunteers a lot of time up at the local hospital. Visiting and friends local, traveling to go away, uh that’s always a great thing to do. Pursue a hobby. You know, again as I mentioned earlier, in retirement, you’re going to have a lot more time to do it, hopefully. I mean, my I’m sure my grandkids are going to take up a lot of that time, which is fine. Um but uh pursue a hobby and to to enjoy. You’ll have hopefully have the time to be able to do that. Travel. I talked to people, and they love to travel in retirement. If you want to start a business at that point in time, that’s not what I would do, but if you want to start a business, absolutely. Or I hear, you know, on the news uh quite often that a a grandparent um um or even a parent may uh graduate with their child or whatever, which I think is absolutely fantastic. [gasps] Now, some people that didn’t take uh didn’t slow down in retirement. So, Peter Roget, he developed a thesaurus at age 73 is when he came out with that. Colonel Sanders opened his first first KFC at 65 years old. Madonna Buder is known as the triathlon nun. She started uh doing triathlons and finished her the most uh recent one or the latest one at age 82. Uh Grandma Moses started painting uh when she was 76. And Yuichiro Miura, he uh he set a world record to be the oldest person at age 70 to climb Mount Everest, and then he did it again at age 80. I couldn’t do that now, and I think that’s absolutely fantastic. So, again, an unknown author once said, “Retirement is wonderful if you have two essentials: much to live on and much to live for.”So, uh hopefully in retirement you’re able to um save enough money to that that you can do those things in retirement. You can have things to live for uh and have things to live on. So, to kind of recap the seven things that to do before uh retirement in the decade before retirement, these are just some of the things that you ought to take a look at and to be able to do. [clears throat] Now, I always encourage you to work with a financial professional. With a financial professional, you can create a plan into retirement. If you don’t have a plan, then all you have is a wish. And I strongly encourage that everybody has a plan going into retirement. We do have a plan available here at Alliance Credit Union. It’s complimentary. It doesn’t cost anything for uh for you to do. And it’s something that we offer. It’s It’s fairly new. We’ve started offering this fairly recently. But let’s take as uh an example of what we can look at uh in this plan. You know, we put information in here and this is for Bob and Mary and we put some information in here. The dark blue is their social security as they get that in retirement in in their retirement. Uh the light blue there, that’s uh maybe a pension plan that they got. The red line there is that is their uh expenses. And then the orange is their RMDs. So, we can tailor a or we can take a look to see do you have enough set aside to have enough income in retirement? So, a couple of other things here will tell us a calculate what taxes that you will pay over your lifetime. Okay, in this scenario here uh Bob and Mary will pay $832,000 in taxes. And then based upon the information that they had put in here, they would have $4.2 million in a portfolio to be able to pass on uh to beneficiaries. One thing that we do here in this Wealth Vision This plan is called Wealth Vision is we take a look at Roth conversion. That’s kind of a really big topic lately is can you do a Roth conversion and and and if so, well, anybody can, but if you do a Roth conversion, what is the best way to do it? And we can we can set up this uh report here to run a couple of different ways. In this particular way uh [laughter] what they’re taking a look at here of doing a Roth conversion for what would that do to excuse me, both number one, taxes, and then number two, um portfolio. In this particular situation, it would reduce their overall taxes over the lifetime by $140,000. And it would also increase their total portfolio to pass on to beneficiaries by by $826,000. $828,000. So, in this situation, that kind of a Roth conversion would make sense on uh both for them and for beneficiaries. Then if we take a look at another example here, David and Sarah, this one here, their social security and their other uh income they would have to take out of their assets uh to meet their expenses, the red line. And then their RMDs kick in. And and then this scenario here, we have one of them passing away 4 years prior to retirement uh prior to the second one passing away or 3 years prior to the second one passing away. And what would this uh what would this cause? You know, again, their total assets in this scenario here at $3.4 million to be able to pass on to beneficiaries. And we can see that assets can continue to grow in retirement depending on how you invest it and and things like that. In this uh scenario here, we do a Roth conversion uh and fill it up for 5 years. But this one here, we just fill it up to the next tax bracket or the the current tax bracket. So, in this scenario here, it’s filling it up to stay within the uh 22% tax bracket for the next 5 years. What does that do to the overall portfolio? And for this one here, it would save them $116,000 over their lifetime in taxes and increase our portfolio uh to pass on to beneficiaries by $250,000. Now, that uh by doing that Roth conversion, that $250,000 then would probably be all tax-free to pass on to the the beneficiaries, which is kind of nice. So, if you inherit, you’re the one that’s going to pay for taxes on it. Um if you inherit a Roth IRA, nobody’s going to pay taxes on it, which is kind of the nicest thing to do. Okay? Uh again, it uh we can determine by doing a Roth Roth conversion uh this scenario here would save them that uh money in taxes and going forward. So, why ARIS? Why Alliant Retirement Investment Services? Well, I many, many different plans that are available. One of the things that many other places do out there is they charge you a set dollar amount for everything that you have with them. Uh I don’t have that philosophy. I look for uh uh accounts that don’t have the fees. If the account doesn’t have a fee, we don’t add anything onto that account either. So, I look for as many as we can with no fees or very reduced fees. Um but we don’t charge for everything in there. Um we take a look at uh your assets, make sure that you have enough income for the rest of your life. We can look at dividend portfolios so that you have an income stream coming in if you would like to, if you need it. If not, then we just we can just reinvest that into uh back into the investment. Now, how can we help you? First of all, number one, what we want to do is we want to get to know you and design a plan specifically for your situation. Then, we use a team approach to uh take a look and see what we can do out there to design it for what your your needs are. And we want to build a lasting relationship for the rest of your life. So, with that being said, thank you very much again. Here’s my contact and I’ll get into the questions here. This is my contact information, so if anybody is on the phone here or on this webinar on the phone, my direct contact is 773 462 8612. That rings directly onto my desk. And with that being said, my my uh email address is [email protected]. I again, I am an actual employee of the credit union. Uh so, with that being said, let’s get into this. Uh let me uh if you would like to have a one-on-one conversation with me and continue this or if you’d like to have that that wealth vision um uh report run for you, uh answer yes to this. I’ll reach out to you. Now, I will tell you uh I will be out of the office the rest of this week. I do have a funeral that I uh have got to go to. Uh so, I if you answered yes to this, I will reach out to you next week. And uh I’ll call you first. If I don’t get you on the phone, then I’ll shoot you an email. And with my email, you can uh you have access to my calendar and you can schedule a Zoom meeting that way. And that way, we’re not playing phone tag back and forth. But, here is um uh let’s get into this. So, uh Uh question number one here, do rules of thumb include Social Security or just 401k? Uh it includes uh it includes Social Security. If you’re looking for that income, uh the 70 to 90%of your income, that does include the Social Security obviously because that would be income. If that’s what you were referring to, uh then yes, it does include Social Security. Uh I have heard that the bond market is not behaving like it used to. It is not so reliable as a uh counterpoint to stocks. Yeah, so the bond market recently has gone down. Again, the bond market will go up and it will go down. Uh to be honest with you, bonds are they kind of move in opposite directions of interest rates. Uh when interest rates rise, bonds are going to go down. When interest rates fall, bonds are going to go up. That’s a really about the only consistent. Bonds and stocks have nothing to do with each other, but I will uh be honest with you, lately, uh the last couple of years, the bond market has not returned very well. But, on the other hand, it hasn’t fallen. Uh you know, I I should say it won’t fall like the stock market will fall. Okay, so there is that. Um Your internet is making your sound like a robot. I’m sorry about that. Uh I’ve been having today, Goofy, hopefully the sound is better uh better today or better now on that. Um Uh oop. Uh another question, can you put up the slide again that shows the maximum amount of Social Security you can receive based on the age you start withdrawing? Let me get into that. That was up earlier, right here. Here is the maximum that you can contribute or that you would get if you contributed to the 401k. Or into Social Security. The maximum you would contribute into 401k. And
Uh another question here, in your retirement Oh, if your retirement age is 67 and you choose to wait until age 70 to take social security. Do you need to be working between 67 and 70 to get that bump up? No, you don’t need to be working. You don’t need to be working at all. You can um get that bump up regardless of whether you’re working or not. The 8%per year. Uh another question here, can you discuss long-term care insurance? Uh sure, I’ll briefly discuss it. I’ll give it a 30,000-ft overview. Uh so, long-term care insurance, should you ever need to go into a nursing home or a a rehab for a long period of time, it will pay a set dollar amount a month for a set period of time. It’s not like insurance where it’s unlimited. Um you do need to qualify for long-term care. Okay, so it’s not something that just anybody and everybody can get. And to be honest with you, the older you are, number one, the the less likelihood you’re going to qualify for it. And and if you do qualify for it, the older you are, the sooner you’re going to probably need it statistically wise. It’s going to be extremely expensive for you. But, long-term care will cover you should you need to go into a nursing home. Uh if it tip it you know, it you can set it up a number of different ways. Sometimes it doesn’t start to kick in until six until you’ve been in there 6 months. Other times it’s 3 months or you got to cover the first three to six months. Um hopefully that answers your question without getting uh too much into this. And that is all the questions that I had. So, thank you everybody for joining me today. Again, for those that do want me to reach out to you, I’ll reach out to you early next week. Um and uh I just will be out of the office the next Uh, the next 2 days this week here, and I hope everybody has a wonderful day and a great weekend, and we will talk to you soon. Take care, everybody. Bye.