Episode Transcript
[00:00:00] Speaker A: Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.
[00:00:22] Speaker B: Welcome to Take Pride in Retirement, the podcast dedicated to helping members of the LGBTQ community protect and grow their hard earned money. Get set for a show full of education and insights with your host and advisor, Matt McClure. We recognize every family is unique.
[00:00:39] Speaker C: The goal of the show is to
[00:00:40] Speaker B: help you achieve financial freedom so you and your loved ones can have the
[00:00:44] Speaker C: retirement you've always dreamed of.
[00:00:46] Speaker B: A retirement you can take pride in, no matter who you are, where you're from, or who you love.
So now let's start the Show. Here's Matt McClure.
[00:00:58] Speaker D: Well, hello there and welcome to another edition of Take Pride in retirement. Matt McClure here with you, your host, your, your friend, your pal, and your confidant. Yes, I am all of the things. Thanks so much for being a part of things, as always.
[00:01:10] Speaker B: And I am Josh Red Noble, the
[00:01:11] Speaker C: attache to the advisor, AKA co host. And in our last episode, we talked about the financial impact of losing a spouse and how income changes from Social Security, pensions and taxes. And today we're going to focus on what you can do about it. So both after a loss and before.
[00:01:30] Speaker D: Yeah, and it's important to do it before as much as humanly possible. We're going to cover kind of, you know, those big mistakes that people can make, especially in that first year after the loss of a spouse, and especially if they don't do some planning in advance. And so that is so important to do. And it's really, really great topic to be talking about. As we said last time, not always the most fun topic to talk about, but an important one. And we will try and make it as fun as possible while still, you know, not being distasteful in any way, because that's not who we are.
But we're going to cover that. Then we're going to talk about what LGBTQ couples can do right now. Excuse me, ahead of time. To protect each other financially. And, you know, many of the protections we have today did not exist even just a few years back. And so we got to be especially intentional about using them wisely. Also want to say as we start this episode, if you are watching on YouTube like this video, subscribe to the channel. Really would appreciate it. Josh will say to you once again, subscribe. But we'll keep workshopping it, but that.
[00:02:40] Speaker A: You get the idea.
[00:02:40] Speaker D: Subscribe.
Subscribe. That really helps. The algorithm helps spread the word about all the great, wonderful things that we are doing here. Just trying to help LGBTQ people plan for their retirement and really beyond. Because you want to prepare for what we're talking about again on this episode. So, yeah, just make sure and do that. You can also go to take PrideInRetirement.com request that free consultation. You can actually set up a time with me if you want to directly there on the link on the website which says schedule a consultation, you know, conveniently enough. And you can also give me a call. It's 8552-4692-1185-5246-9211. Beautiful.
[00:03:23] Speaker C: So let's start with what happens after a loss.
So you've mentioned that the first year is critical. Why is that?
[00:03:29] Speaker D: Well, look, the first year after that loss is usually thought of, at least among a lot of the experts in the field here, as kind of the fog, period.
It's really where grief can sort of make your decision making not the best, and it can really impair it. In other words, really increase the likelihood of making some costly mistakes. And what you do in that first year doesn't just shape that first year, it can shape your financial future for decades to come.
[00:04:06] Speaker C: And what are some of the most common mistakes that you see, Matt?
[00:04:09] Speaker D: Well, one of the biggest is making huge financial decisions too quickly, too fast. Right. And that includes, you know, like maybe selling a home, mentioned it last time, downsizing, that kind of thing. And you're in that sort of fog period. You don't know what's what. You don't know which way's up and down and left or right or whatever. Because you're grieving the loss of a spouse.
[00:04:31] Speaker B: Right.
[00:04:31] Speaker D: And so maybe you think, oh, well, that house is too big for me now as I'm buying myself, let's just sell it. Well, you don't want to just sell it. You want to make sure that you've taken into consideration all of the different factors that go into making that decision. And you want to make the best decision for you. People very rarely make the best decisions for themselves when they're in a period of grief like that. And so you've got to just keep that sort of level head in that time or work with a financial professional, a financial advisor. I happen to know a guy, because I am that guy that can help you make sure that you have a plan in place ahead of time. Right. And so, you know, you don't want to radically go in and change your investment portfolio right after someone dies without fully understanding what the long term plan is, what the long term needs are. And, you know, we've seen in the past, people sell their homes within months of losing a spouse, like I was talking about a second ago, and then later on they regret it when they realized they just acted on a whim or out of grief or weren't really understanding the consequences for LGBTQ folks. Again, we face face our own unique challenges, especially if you're also dealing with those unsupportive family members that we mention here on occasion. If that applies to you, you can face a lot of difficulty in navigating that time period in your life. And so maybe your friends also might be pressuring you to make particular decisions. They might have your best interests at heart in that particular case. Maybe they're like your chosen family members. They might have your best interests at heart.
But are they a financial professional? Are they a financial advisor? Chances are they are not.
And so can you necessarily just go and make those decisions quickly without consulting somebody? No. I mean, that's not going to be the best thing to do at all. Yeah.
[00:06:22] Speaker C: And what else would you say people should avoid?
[00:06:25] Speaker D: Well, I would say it is common for people to loan money or give money to family members too soon you want to help. Because also you think about it, and if it's a couple situation, maybe you've got kids or grandkids, even the LGBTQ community, the wide array of different family structures. And so if you've got maybe kids or grandkids that they're also grieving the loss of that spouse that you're grieving, then maybe you want to help them out, maybe you want to give them some money. But if you do that too soon, that can be detrimental to you because maybe you're not taking into account the reduced income they're going to be living on. If you missed the last episode, go back and listen or watch that because we talk a lot about that reduced income because one of the Social Security checks is going to go away when a spouse passes away. So you'll be living on a reduced income. And, you know, I understand, of course, wanting to help out those family members, but you've got to secure your own financial situation first, make sure you're able to actually do that.
[00:07:36] Speaker C: And you're talking about the Social Security side of things, because in the last episode, as you said, we mentioned the fact that there's strategies around when to claim benefits.
[00:07:44] Speaker D: Right. That's so important. It really, really is. That's another big mistake that people make is choosing the wrong time to claim Social Security to start those benefits.
And that if you make the wrong decision. And again, I'll encourage you to go back and listen to that previous episode, because if you make that mistake, it can permanently reduce your lifetime income. If survivor benefits are not completely and fully understood. Right. And claiming Social Security benefits too early can permanently reduce your monthly income, maybe even up to a third. So that is a huge thing that you can, you know, you don't want to make those mistakes. In other words, you know, you don't want to wake up one day and say, wow, I wish I had done this X number of years ago. As far as I know, there's no time machine still. So you can't make, you can't go back. Right?
[00:08:36] Speaker C: Correct. No time machine.
[00:08:37] Speaker D: Yeah.
[00:08:38] Speaker C: And so, like, by reduce, I mean,
[00:08:40] Speaker D: like, would it permanently reduce your monthly income? Yeah, permanently by. By 30%. I mean, a huge. I mean, 30%.
[00:08:46] Speaker C: That's.
[00:08:46] Speaker D: That's a lot. It is. That's a lot to deal with. Yeah. And you think about that. And I mean, we talked about this a little bit last time, too, but I'll, I'll touch on it here as well. You think maybe, oh, well, the spouse is gone, the bills are going to go way down. They don't necessarily do that. Right. And so it's, you know, because you have that reduced income, don't think that, oh, that's going to be equally matched by savings in other areas. It's really not necessarily the case. And a lot of times, I mean, one spouse passes, the other spouse, surviving, wants to go and visit those kids or grandkids or the other, you know, be the chosen family or friends or whomever. And so those expenses go up because you're doing more, you're getting out, you're doing things to try and just keep your sanity about you.
And a bit of a sobering statistic here that we found is only about 4% of retirees claim Social Security at the optimal time. Only about 4% actually optimize their benefits. That's according to the association of which I am a member. It's the national association of Registered Social Security Analysts. If you watch us on. On the old YouTube machine, you see the RSSA after my name. That is what that stands for. I'm a registered Social Security analyst. And so, yeah, only about 4% actually claim at a time when they should. And that leaves so much Money on the table. And some widows have lost tens of thousands, even hundreds of thousands of dollars because they've misunderstood survivor benefits going in those filing strategies before they actually filed for those benefits. So it's crucial.
[00:10:18] Speaker C: Yeah. And so let's just say it's a difficult time.
What should people do if they've just lost a spouse? What's the right approach?
[00:10:27] Speaker D: Yeah, well, one thing is to, first of all, be prepared, not scared.
[00:10:31] Speaker A: Right.
[00:10:32] Speaker D: I could probably have that engraved on a plaque in the office here, but be prepared, not scared. Number one, obviously, that involves doing things ahead of time. So now is the perfect. There's no time like the present. Right. So now is the perfect time to do that. Make sure you've got your plans in place beforehand in the immediate aftermath of that. If you've done that work ahead of time, boy, that can give you a whole lot of peace of mind in that moment, because you don't have to necessarily worry nearly as much about your financial situation in that moment at a time when otherwise, you've got a million other things to be worried about and to be grieving your lost spouse. So that is huge.
The other thing that I would say is that even if you don't have that plan in place, something unexpected happens, whatever. Slow down those major decisions in the immediate aftermath.
Organize those financial documents. Take some time. Take a deep breath. Take some time, and then reach out to a financial advisor who, you know, understands you in that situation, has worked with people who have gone through this before.
Before you take action on these things.
I sort of, you know, tell folks, you know, give yourself six months or a year before making any major financial moves, if possible, especially if it's something that you hadn't necessarily planned for in the past.
And again, I'll bring it home to the LGBTQ community. It's really important to work with a financial professional, a financial advisor who understands you, who respects you and your relationship and your chosen family, and gets it and all the things, you know, not just your biological family, that chosen family. Super important to so many of us in the LGBTQ community.
[00:12:10] Speaker C: Hey, I know a guy.
I think his name's Matt McClure.
[00:12:14] Speaker D: Oh, I've heard of him.
[00:12:15] Speaker C: Yeah, he's pretty good.
Now, I do want to say, do you know of any other mistakes that people should be aware of?
[00:12:22] Speaker D: Yeah, I mean, some people who have lost a spouse can unintentionally mismanage accounts or their assets.
You can sort of commingle funds that might not be intended to be commingled or shouldn't be commingled something that's in a trust, maybe in your personal funds that can create maybe some legal or tax implications later on as well. So that's something to be careful of. And also, you know, there was another stat, you know, I love me some statistics, Matt Stats. Hey, I need that.
I need a jingle for that. More than 62%. So this is, you're talking nearly 2/3 of Americans report feeling unprepared for the financial impact of losing a loved one. And women, of course, express higher concern than men in this particular poll.
[00:13:10] Speaker C: Because women live longer.
[00:13:11] Speaker D: Right? Exactly. That's, that's the thing.
[00:13:13] Speaker C: Yeah. And so why is it so important to get this right early on?
[00:13:16] Speaker D: Well, financial mistakes in that first year after the loss of a spouse can be really costly, not only for that year or for a couple of years, but for many years and even decades later.
And so widows, especially if we're talking like your traditional male female partnership marriage widows, can live many, many years past their spouse's death on average. Right. Because of that longer life expectancy you talked about.
Of course, it can happen to anybody as well. You can lose a spouse and then you can, you know, at 65 and then you can live to be 100.
So it's crucial to plan early on for that reason.
And it also means that the impact of those early financial decisions is magnified because you've got it over that longer period of time to worry about.
It can compound if you make the wrong decision. If you make the right decisions, that can compound in a good way. You make bad decisions, that can compound in a bad way.
And it can threaten your long term retirement security at the same time.
[00:14:17] Speaker C: And obviously, financial stress does not help when you're grieving.
[00:14:21] Speaker D: Absolutely not. I think I said it on the last episode. It's the last thing you need to be worrying about. You know, I mean, it's linked to increased stress, negative health outcomes when you're, you know, financially unstable after the loss of a spouse.
Poverty rates among widows have historically been two to three times higher than those of married women. So that's something that our women listeners need to be concerned about as well and just avoid those early missteps that can significantly improve your financial picture, your financial confidence and that stability throughout those remaining years. And again, if you are looking for some advice, some personalized advice, you know, here on the show, this is for informational educational purposes. I work with you one on one or one on two or whatever the situation is, that is when I act in a fiduciary capacity, meaning I have to take your best interests at heart and to mind. And when I come up with plans and everything for you. So it's really all about you and what is best for you in your individual situation. TakePrideInRetirement.com is the website to go make that appointment, Right?
[00:15:28] Speaker C: And like we always say, everyone's situation is different.
Everyone's family dynamic is different. Some people have kids, some people don't have kids. Some people are married, some people are not married. So that's why it's important to reach out to someone like you who actually cares. The advisor that cares, that has their best interest at heart and can actually give that individual attention, which is. This is all wonderful. I love this podcast. I love all the info. But everyone's gonna have a different story, right? Everyone's bulk is different. So the next chapter is something you need to reach out to someone like Matt to figure out what that is. And so we've talked a lot about what to avoid right after a loss. So let's talk about prevention. So what should couples be doing right now to protect each other?
[00:16:08] Speaker D: What was it? Was it Benjamin Franklin, I think, said, an ounce of prevention is worth a pound of cure? I think that was. Who said that?
[00:16:14] Speaker C: Was it Britney Spears?
[00:16:16] Speaker D: No.
[00:16:17] Speaker C: Okay.
[00:16:17] Speaker D: He thinks Brittany said everything wise like that, but no, it wasn't one of the Spice Girls.
It was Ginger. No, it was. I believe it was Benjamin Franklin, but it's really true. Like, an ounce of prevention is worth a pound of cure, meaning that the more you prepare ahead of time, the less you have to worry about things later.
Obviously, preparation is key. There are a million ways you can say this, but planning ahead is really where the power is found in all of this. Planning for the death of a spouse is not necessarily the most fun thing in the world. You want to plan for. Oh, yeah, we want to go on vacation. We want to live our best life in retirement and all this stuff. And we want to make sure we have the funds to do that.
But, you know, this is also a core part of retirement planning. But a lot of people focus on, you know, the saving or even, you know, maybe even turning that savings into income and all of that in retirement. But then they don't think enough about what happens after one of them's gone. And so for many LGBTQ folks as well, in a couple situation, the act of planning ahead is really powerful because it makes sure that your wishes are followed. Not estranged family, not assumptions based on outdated laws or anything like that. Because I've said it before, I'll say it again. We have fought too hard for our rights to not take full advantage of them.
[00:17:36] Speaker C: Right. And I think a lot of times back to I unfortunately lost one of my best friends several years ago and he was in a same sex relationship. They were not married. And unfortunately a lot of this was not planned ahead.
So then it was left to the family to decide what to do. Right. So I think that's why it's not a topic people want to continuously talk about.
[00:17:58] Speaker D: I get it, it's depressing. But if you have a plan, then
[00:18:02] Speaker C: you at least know you're going to get what your spouse wanted. Right. And like Matt said, we fought way too hard for these riots not to use them completely. So make sure that you have this plan. And so what should couples be thinking about right now?
[00:18:14] Speaker D: Well, I mean, you absolutely said it. And I think about that particular couple a lot when I talk about these types of situations because it's so important. And so what you should do is plan for. I think there was an insurance company or something years ago that their slogan was the if in life, plan for the if in life.
And you've got to plan for those ifs. Those what ifs. You know, you got to plan for the things you know, but you got to plan for the unknowns as well. And so you should think of retirement eventually as becoming a solo endeavor for one partner.
Often that time period lasts a decade or even more after the other partner is gone. And so it's financial protection, but it's not just about money. It's about making sure that that surviving spouse has access to accounts, understands where the income is coming from, makes decisions confidently based on all that information as well.
[00:19:12] Speaker C: Yeah. And what does the research say about
[00:19:14] Speaker D: how prepared couples actually are?
How prepared are they or how unprepared?
[00:19:21] Speaker C: That would be a better question.
[00:19:22] Speaker D: How unprepared are couples? I was gonna say, because it's not, not a lot about this one. There's one particular study here that, that shows about 53%, so more than half of widows and widowers. So people who've lost a spouse say they had no plan in place at all. More than half and almost that many people who answered this particular survey have one partner who handles most of the financial decisions. And that can leave the other person without a clear understanding of what's going on if some sort of emergency or the unthinkable happens.
[00:19:54] Speaker C: So one person is doing all of the finances and the other person is in complete darkness?
[00:19:59] Speaker D: Pretty much, yeah. And yeah, it happens to a lot of couples. I mean, as a matter of fact, that same study that I referenced a minute ago says that almost 70% of widows say that they are the.
When they become the sole financial decision maker, like after a spouse passes away, that. That's their biggest challenge in those years.
And so making sure that both partners, both sides of that relationship, know how to access those accounts, know where the legal documents are. You're like, we walk into the house, my mom has a folder. It's a blue folder that says important documents. It's got her name and address and all that stuff on it. And that's where things are that are obviously important. Birth certificates and all that stuff. But also there's the living will, advanced directive stuff and all that kind of thing in there, also life insurance information and all that stuff. So it's super, super important to have access to all that and make sure that the T's are crossed, the I's are dotted, but that both partners, both spouses know where it all is and how to. How to get to it all.
[00:21:09] Speaker C: And you kind of touched on this. But what specifically should couples be doing?
[00:21:12] Speaker D: Well, open communication.
This is something that I stress a lot. It's something that we stress a lot as well to other people. We actually did. It's funny, made me think of this.
What was it like? Gosh, it was like 12 years ago now. I think the thing for the TV where we were talking about being married, being a married couple, and one of the things, they're like, what advice would you give to other couples? And all that, it's like open communication.
And that was the very first thing that we both thought of because it's so important. We've had to learn that.
And just being open and honest with each other about expectations in the relationship and also about finances and share that financial responsibility as well, that's really important to make sure that neither partner is in the dark if a crisis comes up. You know, a lot of couples don't even agree on how much they need to save for retirement, according to research. So that is, you know, it's so, so crucial to get on the same page.
And that shows that differing expectations really can undermine any preparedness that you have. Even if you got plans on paper, make sure everybody's on board with the plan, come to an agreement on the plan.
That's so important. And for folks in our community, these are conversations that also have a chance to kind of affirm your commitment to each other, make sure that chosen family and your legal family that blood relations, all that aligns with your wishes just so that it just makes things so much easier and so much less stressful later on.
[00:22:55] Speaker C: Yeah, I think I know the answer to this question I'm about to ask you, because I would probably say the same thing, but when should people start having these conversations?
[00:23:04] Speaker D: Yesterday. Yes.
[00:23:05] Speaker C: It's never too early, right?
[00:23:06] Speaker D: It is never too early to do that. It's never too early to talk about these types of things. It's never too early to plan. It can certainly be too late, but it's never too early. Preparing early is actually better because those thoughtful decisions, you can take the time to make those together rather than kind of forcing one partner to figure it out under stress and grief.
[00:23:27] Speaker C: Yeah. And so let's talk about the negative thing. So what happens if couples don't prepare?
[00:23:31] Speaker D: Well, if they don't prepare, then you're in for a world of hurt, basically.
The surviving spouse may really struggle to locate the accounts. They may not even know all of the accounts that you might have.
They may not know how to claim benefits like a death benefit, for example. That was like, after my dad passed away, I, on behalf of my mom, called the life insurance company. I was one of the beneficiaries as well. I called the life insurance company and I said, hey, this is me. My dad passed away. How do we get this life insurance money? And I had that because my mom had that little blue folder. So I have that contact information. So it's important to stay organized. Right.
But yeah, I mean, you might struggle to come up with those things if you haven't planned enough ahead of time and if you haven't communicated openly enough with the partner as well. And a lack of planning can really lead to a lot of missed opportunities for income, Social Security, survivor benefits, also pension benefits. Again, as I said, insurance payouts. There's a lot of different things that need to have the T's crossed and the I's dotted. And that's where advanced planning really comes in handy.
[00:24:40] Speaker C: And obviously, that financial confusion, that can lead to a ton of other problems, right?
[00:24:44] Speaker D: Oh, yeah. I mean, like financial sort of confusion. In that fog time after the death of a spouse, it can really force major life changes, including being forced to downsize. You know, if you don't, maybe you're entitled to the XYZ amount of money, but you don't know how to get it, or you don't even know you're entitled to it or any of that kind of stuff that can force you out of your current financial situation. That's a lifestyle change. Right. It can impact physical health outcomes as well because of this, just the stress load and all of that. And so your mental health affects your physical health. So. So much so. That is something that doesn't happen in isolation on an island somewhere. It affects everything. And the good news, though, is that couples who plan together stay together, but the couples who plan together are really a lot more likely, in my experience, to feel confident and financially secure and less stressed after a loss.
[00:25:43] Speaker C: If you stay ready, you ain't got to get ready.
[00:25:46] Speaker D: Yes.
[00:25:46] Speaker C: Right.
[00:25:47] Speaker D: As a fact, matter of matter of fact, that is 100% true.
[00:25:50] Speaker C: And so what about, like, the powers of attorney, though, and the beneficiary designations? How does that work?
[00:25:55] Speaker D: Yeah, the beneficiary designations are so important, they will override whatever is in a will. So if you've got a life insurance policy where maybe an ex spouse or someone else that maybe you're estranged from is the beneficiary on that, they'll get that money if something happens to you, not your current spouse. So you got to make sure that the beneficiary designation are updated.
Having those, you know, legal financial frameworks in place as well, such as, like, powers of attorney. That is really crucial. Joint account access that protects both partners if life throws a curveball, like illness, incapacity or, you know, worse. Right. And for LGBTQ plus couples, those are absolutely critical. These are not optional things, those powers of attorney. Super important if, especially in case of incapacitation, you want to make sure that you can make medical decisions for your spouse or your partner, we kind of need to be bulletproof in a lot of ways in our estate planning, especially because we face a lot of challenges that opposite sex couples don't really have to even worry about.
And it's unfortunate, but it's the way of life. And so we just need to take that extra step.
States where discrimination may still exist, situations where discrimination still exists, you've got to be prepared for that. And your legal documents just need to be super, super clear.
And again, reach out. Take PrideInRetirement.com I again, I'm not an estate planning attorney, but we set up, we can set up a meeting for you with one. We work with a service that provides quality financial plans for estate planning purposes that are really tailored to you and are at an affordable rate as well. So take pride in retirement.com if you're interested in that.
[00:27:39] Speaker C: And I know so many people want to be independent and do things on their own.
So when I ask you this Question. I know what I feel, obviously, but should couples be doing this alone or should they be working with a professional?
[00:27:51] Speaker D: Well, I would say, and this is me talking here in the capacity that I'm talking in as a financial professional myself, people who work with a financial professional, studies have shown this time and time again.
And, you know, couples, single people, whomever they work with, a financial advisor or financial professional, they're significantly more confident in their financial situation and in their preparedness for the future compared with people who don't.
[00:28:15] Speaker C: Yeah.
[00:28:16] Speaker D: And, you know, if you're working with a financial advisor also who understands the LGBTQ community and your unique needs that can, you know, really help you make sense of complex situations that, you know, because you don't do this every day. I do this every day. I work with folks every day on these, you know, in different types of family structures, on different types of situations.
And you can turn those sort of conflicting expectations and that the cloud of uncertainty into more confidence and more, you know, get action oriented strategies to help you actually retire with confidence and know that you've got a plan going forward. Especially important for our community because, you know, we need advisors who understand things like navigating Social Security, if you had domestic partnerships before marriage, dealing with name changes, protecting against potential discrimination, all those things. And again, I happen to know a guy.
[00:29:11] Speaker C: Yes, I know someone too.
Well, this has been good, Matt, but can I do a bonus segment? Oh, yeah, something a little bit of a bonus. A little bonus. All right, let's talk about some five steps to catch up on your retirement plan. So before we wrap up today, I know we've discussed this somewhat, but I want to reach out to those listeners who feel like they might have started their retirement planning a little late.
[00:29:33] Speaker D: Right.
[00:29:33] Speaker C: Just a little bit late in the journey. So what can they do?
[00:29:36] Speaker D: Yeah, it fits right in. Because we talked about it can never be too early, but it can be too late. If you are hearing the sound of, of my voice right now, it is not yet too late. You can start planning, but you know, starting retirement planning late can be a bit of a challenge.
But I don't think it's too late ever to take action on something as long as you draw breath. After that, you can no longer make decisions unless you've actually planned ahead of time. Right. So you can improve your financial situation now. And we've got about five steps here. Yeah. To kind of catch up with where you think, think you should be.
Step one. So step one is to really assess your current situation. Right. You've got to get a comprehensive look of where you are now, calculate things like your net worth, your, you know, savings, investments, real estate, as well as those liabilities. Weigh those in the balance and see what, see how it comes out. All your debts, your mortgages, all those things plus the assets that you have. You got to understand your income and your expenses and you've got to identify where you can potentially save and then potentially invest in your future. Just get that real detailed snapshot of where you are now, essentially. Step two, step number two is to set specific retirement goals.
Define those goals. Like, don't just be like, oh yeah, maybe I want to travel more. Be like I want to travel and we want to go on a cruise twice a year. Like that's going to be our thing. Or we loved traveling to Europe, so we're going to go, go to Europe once a year. Or like whatever your. Or just drive up to the mountains, whatever your financial situation allows for, make plans for that specific thing. And so you got to have those goals in mind. Determine what age you want to retire. That can always change, but work toward that goal. And if situations change later on, then you can make that adjustment. But just have that lifestyle in mind after that age passes as well. What you want to do and be specific about, you know, how your objectives are going to, or being specific about those objectives, I should say, is something that's going to really help you and your financial advisor, this guy, gauge how much you need to save and how much you need to invest. Because without that you're just kind of flying blind, right? Three, number three, maximize retirement savings contributions. If you have a 401k at work, if you're a federal employee and you have tsp, if you are somebody who works, maybe in the nonprofit sector, maybe a teacher, whatever, you have like a 403B, something like that, whatever the case may be, or if you have an IRA individual retirement account, maximize those contributions every year. Know what those limits are? They change every year. They go up every year usually. So make sure that you have those in mind. Make sure you max that out. Make sure that you are at least contributing enough to that 401k to get your employer match maxed out. That's free money. Don't leave that on the table. Take advantage of catch up contributions. If you're over 50 as well. That allows you contribute additional money on an annual basis. And that can really be great for someone who feels like they're behind in getting started with their plan.
4.
We're playing golf now. Step four is to create a budget and cut your unnecessary expenses. Do you need to be subscribed to every streaming service on the face of the planet? Probably not. So that's one thing. Track your income, track those expenses. Cut out anything that's not necessary. Look for ways to cut out the non essential things. Redirect those savings toward your retirement accounts. Boy, that can help you because of the power of compounding interest on your future. The interest on top of interest. It's like a snowball that just gets bigger and bigger. And when that is your investment account or when that is your retirement account, that's getting bigger and bigger. Like a snowball. Boy, that feels good. And so just take the time to reduce that discretionary spending and pay yourself first. And by yourself, I mean future you first. And step five, consider delaying retirement or taking on part time work. Now. Step five. Step five. This is only if you're very, very far behind. If you are knocking on retirement's door, you might have to delay retirement a little bit. We don't want you to be in this situation, which is why we want you to plan ahead. We all want you to have to take part time work. If you feel like you need to do part time work in your retirement years, by all means, absolutely do it. If you are healthy enough and you just can't sit at home, that's great, that's awesome. But don't work because you have to do it because you want to. But, but if you're in that situation, maybe it's the thing that you should do. If possible consider doing that alternatively work part time.
Those are your two options. Basically, if you're kind of knocking on the door of retirement and you just don't have enough saved up to really, to really make your plan come to life at that point. Knock knock knock on retirement store.
A song for every kid.
[00:34:31] Speaker C: All right, so is there a bonus step? Can we give them a bonus step?
[00:34:34] Speaker D: Yeah. And bear with me with this bonus step for about two seconds here because yes, it's to seek professional advice.
And whom might know what you should do if you are behind in your retirement plan? That would be me.
I am obviously a financial advisor. I'm a registered Social Security analyst and a certified annuity specialist. I can help you with retirement income, making sure that you are invested properly, making sure that you're going to have enough retirement income to make ends meet. And I work of course with LGBTQ folks as well. So if you're listening to the sound of my voice, go to take pride in retirement.com schedule that consultation, it's absolutely free. You could also call 855-246-9211.
[00:35:18] Speaker C: Well, I feel like this is all incredible information, Matt, and I think your listeners are going to walk away with a real action plan, Right?
[00:35:25] Speaker D: God, I hope so. I really do. And again, it's not the easiest thing to talk about, but it's essential. And whether you're planning ahead as a couple, maybe you're facing widowhood, don't go through it alone. That really is the key here. I'm able to help guide you through these tough decisions, these complex decisions. And, you know, as members of the LGBTQ community ourselves, you know, we understand these unique challenges and I can help you make your plan something that's going to be solid, that a foundation that you can build that retirement on, a retirement that you can take pride in.
[00:36:00] Speaker C: Yeah. And remember, guys, just reach out to Matt. He's here to help you.
[00:36:03] Speaker D: Yeah. 855-246-9211 or take PrideInRetirement.com all right, well, thanks so much for joining us. This has been our two part series on the widow's playbook or the widower's playbook, whichever, you know, gets you.
But thank you so much for being here and thank you, Mr. Josh, for being here as well.
[00:36:20] Speaker C: Thank you. It was a pleasure, Mr. Matt, as
[00:36:23] Speaker D: always, Mr. Where's Mr. Bill? Oh, no.
[00:36:26] Speaker C: Anyway.
[00:36:27] Speaker D: Oh, goodness, we've just aged ourselves. All right, so until next time, take pride in yourselves and take care of each other. We'll see you then.
[00:36:37] Speaker B: Thanks for listening to Take Pride in Retirement. Members of the LGBTQ+ community deserve to work with a fiduciary financial advisor who puts their needs first. To schedule a free no obligation consultation with Matt McClure and the team at Active Wealth Management, call 855-246-9211 or go online to take PrideInRetirement.com investment advisory services offered through Brookstone Capital Management, LLC. BCM, a registered investment advisor. BCM and Active Wealth Management Incorporated are independent of each other.
[00:37:09] Speaker C: Insurance products and services are not offered through BCM but are offered and sold
[00:37:13] Speaker B: through individually licensed and appointed agents. Mad McClure and Active Wealth Management are not affiliated with or endorsed by the
[00:37:20] Speaker C: Social Security Administration or any other government agency.
[00:37:22] Speaker A: Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosures of any conflicts of interest. Please refer to our firm brochure, the ADV2A Item 4 for additional information. Information provided is not intended as tax or legal advice and should not be
[00:37:42] Speaker D: relied on as such.
[00:37:43] Speaker A: You are encouraged to seek tax or legal advice from an independent professional.
