Episode Transcript
[00:00:00] Speaker A: Hey, Matthew.
[00:00:00] Speaker B: Hey, Josh.
I have a question.
[00:00:03] Speaker A: Go.
If someone spends 40 years saving for retirement, how do they suddenly wake up one day and start spending all that money?
[00:00:13] Speaker B: I mean, they really don't.
They don't just wake up and start spending it. And that's actually one of the biggest retirement problems that we see.
[00:00:27] Speaker C: Welcome to Take Pride in Retirement, the podcast dedicated to helping members of the LGBT 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. The goal of the show is to help you achieve financial freedom so you and your loved ones can have the retirement you've always dreamed of. A retirement you can take pride in, no matter who you are, where you're from, or who you love.
[00:00:57] Speaker A: So now let's start.
[00:00:58] Speaker C: Start the Show. Here's Matt McClure.
[00:01:01] Speaker B: Hello, and welcome to another edition of Take Pride in retirement. Matt McClure here with you, your host, your advisor, your friend, your pal, and your confidant.
[00:01:09] Speaker A: And I am Josh Red Noble, the attache to the advisor, AKA co host, AKA Matt's husband.
[00:01:16] Speaker B: Oh, Lord.
Just gets like, like, I don't know, some stank on it every time.
[00:01:22] Speaker A: I grew up in Tallapoosa, Georgia. I can talk how I want.
[00:01:26] Speaker D: This is true.
[00:01:27] Speaker B: This is true. I also grew up in the south, but more like in civilization, so I don't have as much of that kind of thing as you do. But thank you so much for watching or listening to the show. Really do appreciate it. Hey, if you are watching us on YouTube or hey, if you're listening to us as well, please like this video on YouTube. Subscribe to the show wherever you are as well. Yes, I will ask once again. Please subscribe.
[00:01:54] Speaker A: Subscribe.
[00:01:58] Speaker B: Yes, There we go. We got like all operatic today. I love it. And also, you know what, if you are someone who needs help planning for your retirement, I would love for you to go to Take Pride in Retirement dot com. Take Pride in Retirement dot com. That's the website for a free consultation. You can just learn more about me and what I, why I do, what I do and all the things I. Yeah, I would. I would absolutely love it if you would do that and schedule a time to meet with me. I can help walk you through all the different things, including the topic we're talking about today. Today. But you know, like, subscribe, share the show because that really helps us continue to reach LGBTQ folks and allies who deserve a retirement that they can take pride in.
[00:02:41] Speaker A: Yeah. Speaking of retirement, which can feel weird, right? Matt, I want to say we spend our entire adult lives hearing one message.
[00:02:49] Speaker B: That message is probably, save more. Right?
[00:02:53] Speaker A: And no one teaches you how to stop.
[00:02:56] Speaker B: Yeah, no, it's true. It's like that. They will always say, okay, but, yeah, you got to keep putting money away. You've got to put money in savings. You got to put money in your. Your 401k or IRA, whatever type of retirement account you might have. You've got to do all of these other things in your working years. It's like, you know, you've got to save, you've got to delay that gratification. You know, you've got to build your wealth.
And then there's this big shift. And I just went through this with one of my clients, actually a couple of my clients who just recently retired, and they're like, oh, my gosh, what do I do, you know, now? Like, how do I turn this corner? Because it's not just something that's very, I don't know, real and tangible, like the money aspect. It's a big psychological thing, too, you know, because you. You're saving, you're delaying the. Your gratification, you're building your wealth all during those working years. And then in retirement, you get to spend, you get to enjoy life, you get to hopefully trust in the plan that you have in place. And those are completely different mindsets, right? It's like It's a complete 100 from where you were before. And a lot of people who retire become so used to saving that they underspend. Even when they could comfortably and affordably enjoy their retirement, they could actually afford to do it. You know, financial experts really do increasingly describe this kind of thing as, like, the retirement spending puzzle. You know, we fear running out of money, but then that leads to people actually denying themselves the experiences that they planned for during their working years.
And, you know, it's talked about. A couple of clients that I worked with actually had somebody else tell me, I don't know if I can afford to buy my dinner. You know, and that's a scary thing.
But after reviewing the plan, it's like, no, you can actually comfortably do that, and you can afford to, you know, take this trip that you've postponed for years.
You know, the money was not the problem.
The fear of running out of it, that was the problem. So that's. That's so important to have a plan in place. And that's why right there, you just. You see that in that. That example.
[00:05:07] Speaker A: Yeah. I mean, I think everyone worries about that, you know, if they're spending too much. Like if.
[00:05:11] Speaker B: What if I'm 85 and I'm broke? Yeah, well, that's not a situation you want to be in, obviously. You know, it's like if you're. When, even when you're working, right. You want to have more money than month, not more month than money.
[00:05:24] Speaker A: Right.
[00:05:24] Speaker B: And then in retirement you want to have more money than life, not more life than.
Not as good situation to be in.
That's, you know, one of the things that we talk about is longevity risk. What do I do if I do outlive my money? And one of the things that can lead to that obviously is inflation.
You got to have a plan that accounts for that.
A few years ago, you know, you could say inflation and people would be like, wait, what's what Inflation? Wahoo. Like, because, you know, it wasn't really on anybody's mind, like prices would go up very slowly over time for about, you know, 10 years. Ish. But then we had Covid, obviously we had the supply chain disruptions, we had all the different disruptions there. And so now it's become a big topic of conversation and it should be regardless of what's happening in the economy because over time prices do go up anyway. Especially when it comes to something like health care, healthcare really is. Has been outpacing the overall cost of living. That's been going up.
You got market volatility. That's been happening. I mean, it's a roller coaster ride here lately.
Luckily it's been going up most of the time, but still it's one of those things that you've got to plan for. You've got to make sure that in retirement you've got a plan that is going to stay the course and weather the storm. However many mixed metaphors I can churn together there and sequence of returns. Risk is also something else. I know it sounds kind of wonky and all that stuff, but that just all it means is if there is a market downturn early on in your retirement years and you are making withdrawals from your retirement accounts at the same time the market is down, that's just a double whammy for your funds. And so you do run the risk of running out of money. And so, you know, withdrawal strategies matter more than following something like the 4% rule, for example. That's an old thing that says, you know, withdraw 4% of your retirement accounts during any given year and then, you know, you should be able to make it throughout Your, the rest of your life and, you know, hopefully. Fingers crossed, right? It's a guideline. It's not, it's not some kind of guarantee. It's a mathematical sort of a guideline there. And the right withdrawal rate depends on you. It depends on who you are, your age, your, your portfolio, your, you know, tax situation, other things like the market conditions at the time, your spending needs, how long retirement may last.
And so it's like, it's one of those things where you just have to have a plan. And I think working with a professional obviously is the way to go. Because, I mean, look, if I got this question for you, if you were, if you have a problem with your car, who are you going to take it to?
[00:08:07] Speaker A: Probably a mechanic.
[00:08:10] Speaker B: If you needed brain surgery, who are you going to go to?
[00:08:12] Speaker A: Maybe a surgeon that specializes in the brain.
[00:08:16] Speaker B: There you go. So if you are planning for retirement, why not go to a professional who does that all the time? I wouldn't perform brain surgery on myself. I wouldn't go to the kitchen and grab the biggest knife and start chopping away. You know, it's just not the way that it happens and I don't trust
[00:08:31] Speaker D: myself to do that.
[00:08:32] Speaker B: So for something as important as your retirement years, I'd say work with a professional.
[00:08:37] Speaker A: Right?
[00:08:38] Speaker B: And it's one of those, you know, just reach out takeprideinretirement.com because it's free. It's free to do takeprideinretirement.Com you can link me right there directly into my calendar and make an appointment and you can see my real time availability.
And for, you know, LGBTQ retirees, this is a conversation that has even more importance. I feel like many, much of the time, rather, you know, you're relying more on chosen family. Maybe you have fewer adult kids in a lot of households to be able to offer that financial help or that physical help later in life.
So that means a lot of potential, potential caregiving costs that you might not otherwise have to worry about. How you gonna pay for that? What's the income stream that's going to be able to pay for that surviving spouse? You've got to plan for that. Not only when it comes to benefits like maybe a death benefit from a life insurance policy, but say, coordinating your Social Security benefits. That surviving spouse is going to receive the larger of those two paychecks. How are you going to coordinate that?
Maximizing the confidence around your income is so important. You want to be confident. Your plan and I want to help you get there. I I think that's, that's kind of the bottom line here.
[00:09:53] Speaker A: Yeah. And I always say that Matt is the advisor that cares, so he's not going to steer you wrong. So just reach out to him and see how he can help you. And if he can, he will.
[00:10:03] Speaker B: 1,000%.
[00:10:05] Speaker A: Yeah. So here's a question for you.
When do you finally get to enjoy your money?
[00:10:12] Speaker B: When.
[00:10:13] Speaker D: That's almost.
[00:10:14] Speaker A: When does it happen?
[00:10:15] Speaker B: That was almost Ross Perot.
My favorite answer to this question is always when your plan tells you that you can.
[00:10:24] Speaker D: Because
[00:10:28] Speaker B: it all comes down to the plan. If you've got a proper plan in place. It's the old saying is proper prior planning prevents, we'll say, pitifully poor performance. Here. The prior performance is seven Ps. I had to count them because thank God I could count them on two hands.
But the seven Ps proper prior planning prevents pitifully poor performance.
Do what the plan dictates.
Don't be afraid to adjust the plan along the way, but make a plan and have a professional help you with that plan. You know, like money has different jobs, different, like different buckets of money, right? So there's emergency money, there's lifetime income. And we can help you generate a lifetime income from a bucket of money that you saved up, maybe in a 401k, maybe in a TSP, if you're a federal employee, maybe in an IRA, IRA 403b, any of those other type of retirement accounts, we can take that and turn it into an income stream that's you're never going to outlive and that could potentially go up with inflation over the years and actually keep up with the cost of living in some of these different types of products. And I can walk you through that. So some money is lifetime income sums for travel, some is for gifts, some is for legacy, leaving that for either the next generation if you do have kids, or to maybe a charity that's really affected you and that you like to support during your life, maybe you want to support that same charity going forward after you're gone. And every dollar has a purpose in the proper type of plan. And so when that's the case, people become a lot more comfortable spending because they're. That takes fear off the table, right? It's like if you take that, that used to work with somebody in this retirement space who go, I want to get that, that retirement monkey off your back. You know, it's like you're carrying around this burden on your back of like, oh God, it's just worry and just stuff weighing you down. You take the.
And you can actually become comfortable and confident in being able to spend.
You know, it's not like driving a car in retirement.
[00:12:29] Speaker D: Right.
[00:12:29] Speaker B: It's kind of like flying a plane. You don't take off and then you figure out how to land later on, you know, that wouldn't be good.
You have a flight plan. And speaking. Speaking of when I.
People that I worked with, somebody else in this space was like, okay, what if I got into. And this goes directly to this conversation, actually. It's like, what if you got on a plane?
I said, okay. The pilot comes on and says, okay, welcome aboard, everybody. We're flying to Bora Bora today, and we've got a 93% chance of landing safely.
I'd get off the damn plane myself.
That's just me. And you know how nervous of a flyer I am to begin with. So I would make a beeline for the exit door of that plane at that point.
But, yeah, you gotta have a flight. Plane. You gotta know how to land the plane before you take off.
[00:13:20] Speaker A: Yeah. And I mean, that's the thing. If you have a plan, you don't have to freak out. And that's what you're here for.
[00:13:24] Speaker B: Yep. The advisor.
[00:13:25] Speaker A: Who cares. Yeah. All right, so we're gonna do some rapid fire. Matt, I'm gonna throw some stuff at you that I've heard, and I want your response to it. Okay?
[00:13:32] Speaker B: Okay, let's hear him fire rapidly here.
[00:13:36] Speaker A: I'm afraid I'll run out of money. Well, that.
[00:13:39] Speaker B: That is very normal, Mr. Southerner. It's very, very normal thing. Do not be down on yourself because you think that. But let's come up with a plan, and we will figure it out, and we'll get you a plan in place so you don't. And you can take that fear away.
[00:13:58] Speaker A: I should only spend the interest?
[00:14:02] Speaker B: Not necessarily. For some people, that could be a good plan.
[00:14:05] Speaker A: Right.
[00:14:05] Speaker B: You only spend the interest that you earn. And you know, you've still got that principal that's there, and that's kind of a safe way to go about things.
In many cases, that might work. Not necessarily, though. There are many different approaches to retirement income, and I can help you walk through those. Some of them have to do with annuities. Some of them have to do with systematic withdrawals from your retirement accounts. Some of them have to do with other types of accounts. I mean, there are so many different options. You got options here.
Let's walk through them together.
[00:14:35] Speaker A: My kids deserve every Pretty penny. Now help yourself to some coffee and bars.
[00:14:40] Speaker B: Maybe, you know, if you have kids, maybe they do deserve every, every pretty penny that you've saved up and invested over the years. But if they're your kids, they probably want you enjoying your retirement as well. So don't feel like you have to hang on to every pretty penny and then pass it along to them and you don't get to enjoy any of it, you know, because what are they going to do when they got the money? What are they going to do? They're going to spend it. They're going to spend your money. So you might as well spend as much of it as you possibly can and then leave. Leave them what's, what's left over, you know, maybe through life insurance policies and that sort of thing.
But don't just hang on to it so that your kids get all of your money that you've worked so hard for. Enjoy at least a good portion of it yourself.
Well, if I die with a big portfolio, that's not a great.
[00:15:27] Speaker D: Not.
[00:15:27] Speaker B: It's not a great thing. It's. It's not a great thing. It's a wonderful thing.
It's actually a great thing. But if you spent 30 years in retirement worrying instead of actually living, instead of actually enjoying yourself, if you die with a big portfolio, was that really success in the end?
Because they always say you can't take it with you, so you might as well use it for things that you can enjoy while you're still here, while you're still around.
So I've actually sat across the table from older folks, people who maybe even in their 90s, for example.
I've never had somebody tell me, I wish I'd taken fewer trips.
I wish I'd spent less time with my family or with my chosen family.
I wish I'd made fewer memories.
That's not a thing. That's never a discussion. What they often regret is the things that they didn't do because they were afraid to spend the money. They were afraid to spend what they had worked so hard for.
They had saved it, they had protected it, they had grown it over the years.
They've worked their whole lives to do it, but they were afraid to spend it in retirement, so they never got to enjoy it. Maybe their kids later on will get to enjoy it. Who knows? But if you're wondering about whether you can actually afford to spend more confidently in retirement, it's exactly what retirement income planning is all about. And it's exactly what I do each and every day for People, I would love to help you with it as well. Take pride in retirement.com, go there, schedule a complimentary consultation. Once again, it's takeprideinretirement.com you can also call 855-246-9211.
[00:17:13] Speaker A: All right, listeners, I'm curious. If you retire tomorrow, what's the very first thing you'd spend money on? That's my question for you.
[00:17:21] Speaker B: That's your homework assignment, everybody. No, it's not really homework. It's fun.
[00:17:25] Speaker A: It's not.
[00:17:25] Speaker B: It's not homework at all.
[00:17:26] Speaker A: Tell me. I want to know what you gonna spend that money on?
[00:17:28] Speaker B: Yeah, leave us a comment on that.
[00:17:29] Speaker D: That's. That's.
[00:17:30] Speaker B: That's an awesome question, actually. And it kind of gets you thinking, like, okay, what would I do? What would I spend my money on? Is there some big trip? Is there something that I wanted to buy? Are there improvements that I want to do to my house or something that I just haven't been able to do before?
We'd love to hear your answer. Leave us a comment like this video. Subscribe to the channel, all those things. Who knows, you know, maybe it'll inspire somebody else, or maybe we'll talk about it on a future episode of the show. Who knows? You never know what's going to happen around here.
We're so. We're wild and crazy. All right, well, that's going to do it for this edition of Take Pride in retirement. Thank you, Mr. Attache. Once again, a pleasure, Mr. McClure. Thank you very much, Mr. Noble. And thank you for listening and or watching the show. Really do appreciate it. Until next time, take pride in yourselves and take care of each other. We'll see you then.
[00:18:18] Speaker C: Thanks for listening to Take Pride in Retirement. Members of the lgbt, 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, Inc. Are independent of each other. Other insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.
[00:18:58] Speaker D: 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. 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, the 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. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company, not guaranteed by any bank or the FDIC.
