How to Make Sure Your Money Outlives You

10.20.23: Audio automatically transcribed by Sonix

10.20.23: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
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.

Producer:
Welcome to Safe Money Masters with Greg Castle. Get ready for a full hour of financial information and economic news you can't afford to miss. Greg works hard each and every day to help hardworking Americans like you navigate challenges and reach the financial freedom they desire and deserve. So now let's start the show. Here's Greg Castle.

Greg Castle:
Hello and welcome to Safe Money Masters, where our goal is to help you, our listeners, become masters of your money and and teach you how to keep it safe. You know, we hope you're having a terrific Tuesday. If you hang around with us for a bit, you know, we'll make it even more terrific by offering you, our listeners, something for free. I'm Greg Castle. I'll be your host, along with my co-host and executive producer, Matt McClure. Matt, you know, last week our program was all about a number of things Medicare, estate planning and all sorts of things. So as you learn from last week's discussion or the previous week's discussion, there are a number of documents that go to go into an estate plan. So two of those very important documents in addition to a will are powers of attorney. First of all, you got a medical power of attorney and then a durable power of attorney. Medical power of attorney obviously allows whoever you designate to make medical decisions for you as you be, you know, in a coma or in the hospital some way and can't make decisions for yourself. But durable Power of attorney covers pretty, pretty broad spectrum of what it will cover. So we're going to offer to do those to you absolutely free if you just contact us and we'll tell you how to do that shortly. So if you would like us to prepare those two documents for you, absolutely free, then shoot me an email at Greg at savemoney masters.com. And I assure you there is no catch and there is no cost. So, Matt, here we are once again with another terrific Tuesday lineup. So why don't you tell our listeners what they can expect to hear on today's show?

Producer:
I absolutely will do that very thing. You don't have to tell me twice there, Greg. We've got a lot to get to here over this next hour. Of course, our quote of the week going to start us off, as we always do, with some words of words of wisdom, words of inspiration to help us start off our conversations. The Social Security cola, the cost of living adjustment that got announced last week. We'll kind of dive a little bit more into exactly what that means for retirees, pre-retirees and the like today. And, you know, kind of ask that question are things keeping up with inflation, the true kind of cost of inflation and how much prices have gone up? Speaking of, how have Americans responded to inflation, a study has shown some of those different ways, and we will go through those numbers. We'll have an inflation demonstration as well, because, you know, if you've got a sweet tooth like me, this one's going to this one's going to sting just a little bit. It's a very popular treat that is raising its prices by about 20%. And it's just it's just heartbreaking here. We'll go over that in a little bit.

Producer:
Required minimum distributions. Are you having to make them. How you can avoid having to make them as well. You have some ideas and strategies for that. Do you have a stray 401 K. You know if you leave a job you go to a different job. Do you bring that 401 K or at least those funds that were in that 401 K along with you? Well, if you leave behind that money, we'll have some ideas and tips on how you can just really make use of that money. Keep it growing for you, keep control of it as much as you possibly can, as you don't want to leave it behind. Some scams to avoid during this Medicare annual enrollment period as well. How to make your money last through retirement. And we'll also, if we get to it, do a little bit of ask Greg before we close out the show, as we normally do with a look at This week in history. So hey, I did not, you know, wasn't was the old saying wasn't just whistling Dixie when I said, you know, a lot of stuff to get to over this next hour. But folks that is a.

Producer:
That is a lot of.

Producer:
Stuff. It's a long list. It's a long list this time around. But folks, you know, if you have been listening to the show because you are interested in improving your financial situation and the ability to retire, one of these days, you let Castle Financial Solutions Group help you with some one on one attention. You will not regret that. Just give them a call 813430 7100. You can also visit their website at SafeMoneyMasters.com. They'd be happy to meet with you personally and provide you customized guidance and solutions based on your. Specific financial needs. It's definitely not a one size fits all thing. It's going to be customized for you. All right, Greg. Well, I think it's time for us to get things started with our quote of the week.

Producer:
And now for some financial wisdom. It's time for the quote of the week.

Greg Castle:
Oh. This week's quote comes from Jim Rome. He's a motivational speaker and a quite a great guy who whom I once had the honor of sharing the stage with on a speaking platform. Jim once said, quote, we must suffer from one of two pains the pain of discipline or the pain of regret. The difference is that discipline weighs ounces, while regret weighs tons. So, Matt, how does that relate to financial services, financial planning, and those things to you?

Producer:
Well, I mean, it relates to a lot of things for me, but but, you know, with finances in particular, it's you can spend a little energy or a lot of energy upfront planning, making sure that on a day to day basis you follow that plan, right. You have to have that discipline. And yeah, it might be a little tough. It might, you know, hurt a little bit. It might as as Jim Rohn would say, weigh a little bit, weigh you down just a touch, but only a couple ounces, you know, whereas on the back end, if you, you know, if you get to retirement, for example, and you find that you don't have enough money to maintain the lifestyle that you want to maintain, to do the things that you want to do, that's going to be a heck of a lot of regret that you have. You're like, well, what have I done with all of these years that I've had to prepare for this? And that is so much more painful than just that little bit of discipline that it takes along the way to make sure that you are prepared when the day does come.

Greg Castle:
You're exactly right. You know, I run into so many people that I talk to that that come out and say, you know, I really regret not starting saving earlier. I really regret that I put so much money in the 401 K, as opposed to outside Roth or something. And just in general, what you would find is that people who take time to educate themselves, which what we're trying to do for our listeners, take time to educate themselves on options that are available. Take the time to to learn strategies and discover strategies that will help them achieve their goals. Tend to be happier down the road. You know, for example, people who set goals in any any particular arena, you know, whether it be weight loss, whether it be an activity that they want to do, if they set goals and they work hard toward those goals, they achieve those goals. They look back later in life. They really don't have a lot of regrets. It's those people who fail to pursue their dreams. They don't set goals. They tend to regret a lot. So but if you set a goal or if you have a target, you know there is going to be some pain to achieve those things if you stay on track.

Producer:
And so I love this quote from Jim Rohn. He was a great guy. You know, he passed away in 2009, but he was a renowned American entrepreneur, author, motivational speaker. He was born in Yakima, Washington, and he overcame early financial challenges to become a mentor and and motivator to millions. I think this platform that I was on the stage with him, you know, we were different. We were on a different ties, but we were on the same stage for that day for that event. And I think we had something like 8000 people that were there that day. Wow. So it was a big event anyway. Ron's philosophy focuses on personal responsibility and self discipline. So a great guy. And he's still got tons of material that's out there that's available. I would encourage you to look him up. It's rone, just the last name is spelled r o h n. And. Whatever he said in the past still applies today. Just very, very, uh, impactful. And some of the things that he had to say, and he had great vision going forward. Anyway, so, Matt, enough about that. So before we get into today's topics, I'd like to take just a minute to once again remind our listeners what our show is all about.

Greg Castle:
The whole premise of this show is to bring you topics and tools and information that's going to help you protect and grow your wealth and retirement income. So of course, we certainly hope that you're going to keep tuning in. You can catch us every Tuesday evening at 6:00 pm on Moneytalk 1010, which is now, I think, a podcast radio. And you can also catch us on your FM stations 92.1 and 103.1 up north toward the New Port Richey. And if you happen to miss an episode, you can always catch the replay at SafeMoneyMasters.com. Just go to the site and then click on the podcast tab, and you'll be able to listen to the recorded sessions, or choose whichever podcast channel that you would like to listen to. It's all available on our website. You can also check out our YouTube channel and subscribe to see weekly video highlights and and occasionally some special content. If you have any questions or comments, we would absolutely love to hear from you! Feel free to email me personally at Greg at SafeMoneyMasters.com or just give me a call 813430 7100.

Producer:
And of course, folks, as you just heard Greg say there that, you know a couple of different ways that you can get in touch with him. And one of the things that I know that Greg would encourage you to do is to request a full retirement plan consultation when you do, either dial that number or type in that email address and click send, because, you know, we'll say that it's a full consultation and it is free of any charge and any obligation, which is a great, great thing because people are going to anytime I think they hear, you know, a well, a consultation that's, that's going to cost me something or that, you know, what's it going to, what am I going to have to shell out here? But really, you know, nothing that, you know, maybe a little bit of your time. So nothing to lose other than that, but a lot to gain. If Greg and the team there at Kastle Financial Solutions Group can help you talk a little bit before we kind of get into the meat of the show here, Greg, about exactly what that process is like when someone reaches out to you for that consultation.

Producer:
Yeah. We're not exactly like the like the lawyers that you would go to to say free consultation. They get you in and they charge you, you know, thousands of dollars to what they're going to do. We don't do that to you. We provide comprehensive consultations, as Matt mentioned, at no cost to our listeners, just never any obligation. We want you to be able to come out with some sort of a plan that will work for you. And again, you know, we only want to work with you if it's if we're a mutual fit, we hopefully you want to work with us. But again, we have to be a good fit for you as well. Our only requirement is not that you have a fortune, not that you have tons of money, but rather that you're just a nice person and that you're nice to us. As long as you're nice to myself and my staff, we will always be nice to you and do the best job we possibly can for you, regardless if you're nice or not. But we prefer to work with nice people. And also we'll help you analyze your financial situation. Some people have obviously accumulated more than others. Some people are wondering how they're going to make it through retirement. We will try to help you find a plan that will help you navigate those waters, and that time ahead of you closely.

Greg Castle:
Examine any assets you may currently have. Maybe make some recommendations to how you might improve things. We'll discover exactly how much you're paying in fees if you have outside accounts. When trying to help you cut unnecessary costs in your IRA 401 K, 403 B's, or other retirement savings accounts. We can also help you with Social Security planning, something I've said time and time again that seems so simple. You hit 62, you take Social Security. It is not that simple. You can do it. But is that the right thing to do? And there are so many different strategies that are important for you to know about that will help you down the road. Because if you take Social Security at the wrong time, or if you're married and you don't plan how to, how you're going to take it, and when you're going to take it as a couple, it could literally cost you tens to hundreds of thousands of dollars over the course of your life. And the longer you live, the more it's going to cost you. So we'll help you explore those strategies. We'll help you maximize retirement income, and as best we can do to minimize taxes. So as we always say, just remember it's your money. If it matters to you, it does matter to us.

Producer:
Absolutely. Your financial future, your your life. It's all important to you, of course, and therefore it is important to Greg and the team at Castle Financial Solutions Group. And also a reminder here, folks, that the annual enrollment period for Medicare is now underway. It continues through December 7th. And so a couple of things to do here. One is to reevaluate your situation every year or so. You need to kind of, you know, give that a look and just make sure that things are still working for you. And also, you know, there are new it's kind of like a new car coming out. You know, a new model of a car coming out every year. Sometimes they do little, little tweaks here and there. They update. Oh, well, this, you know, angle is a little bit different than it was on the headlights look a little bit different than they did last year. So stuff like that. Sometimes it's a complete overhaul. So you know you kind of never know what's going to happen year to year. So take the time to review your Medicare coverage and you'll find possibly that you could save some money and possibly quite a bit. And some savvy retirees out there. I know you are listening to the show, and I know that you do a Medicare coverage check each and every year, just in case you have that opportunity to save some more money.

Producer:
So if you have questions about your Medicare options when you are planning for retirement, it is all you know. You might think health care is something that that should be planned separate from your finances, but it all is about money. So let Greg and his team at Castle Financial Solutions Group help you navigate what can be really overwhelming and confusing because, you know, Medicare, I often call it the alphabet soup with parts A, B, C, D, and it seems like every letter of the alphabet here. But give them a call 813430 7100 Greg at SafeMoneyMasters.com. And don't forget to ask also about those powers of attorney, the medical and durable powers of attorney that Greg told you about a few minutes ago at the beginning of the show. So the cost of living adjustment for Social Security. Greg was just announced several days back. Now, not quite a couple of weeks ago, but several days ago. And the cost of living adjustment, also known as the Cola folks, is set for 2024. The question, though, Greg, is what? What was it? You know, and you'll answer that question. I know for us, if the if our listeners haven't haven't heard just yet and if they have or after you tell them what it is, the bigger question is, is it actually keeping up with the pace of true inflation that retirees are feeling?

Producer:
Uh, the answer to the first question or the first part of that is that Social Security recipients are going to receive an annual cost of living adjustment this year, or a correction next year of 3.2% for 2024. That's a much smaller increase than the inflation, you know, fueled boost the past couple of years. Um, but, you know, the lower adjustment reflects the fact that inflation has moderated some this year. Recipients had received huge increases of 8.7% for this year, basically in 2023. And for 2022, the rate was 5.9%, which were the largest increases since the early 1980s. Give me an example. How you know, things have gone just in the last, you know, 2 or 3 years in 2020 prior to Covid, it was set. But for 2020, the Cola increase was only 1.3%. Then in 21 is 5.9, 22 is 5.9 and 2023. As I said, it was 8.7. And the next year we're going to go basically to about a third of that. It's going to go down to 3.2%. Is it keeping up with inflation? You know, many people, especially those that are senior Citizens League, remain critical and skeptical that these cost of living adjustments accurately represent the real increases to the cost of living in the United States. You know, especially for seniors who spend more on services like health care, because health care can be really, really expensive, as we all know. An independent, independent economic research group. True. You can catch them at w-w-w dot true Flation true Flation f l a t I o n true flation.com. Anyway, true flation is determined that the real level of inflation since January 2020 isn't actually, you know, reflected in the Social security increases for Cola. They they basically have identified that. Uh, the inflation is just 20. 20 is actually more like 23.9%. So with that said, you know, are you actually keeping up with inflation?

Producer:
Yeah, it's a big question for a lot of people because, you know, I know people personally who are not retired, but they have you know, they're still they're still working, but they have not gotten a raise at their jobs since before the pandemic. And it's it's a tough situation to be in. Luckily, at least, you know, your Social Security income is trying to keep up. But if you look at the real cost of inflation there, the the true inflation number, are you actually keeping up with inflation? Not only when it comes to your Social Security income, but any other streams of income that we hope that you have for your retirement years. And if you are not keeping up with inflation, everybody's going to make some some changes, some adjustments. Right too. Well, most everybody at least you would think we'll talk about that here in a second. But you know you've got to when things change in the economy when when inflation takes off you've got to make some changes. You've got to make some adjustments to make things work. And the Red cross actually recently conducted a survey to determine how much, or rather how Americans have responded and really how much, how many Americans have responded in what ways to the inflation crisis here. So, Greg, share with us, if you will, the outcome of that survey and kind of what it showed about what people have been doing to make those adjustments.

Producer:
Certainly. You know, as we might expect, some of these things, but the numbers are pretty staggering. 64% of those surveyed said that they spend less on non-essentials. Another 64% said they pay more attention to bargains and deals. Blue light specials at Kmart. They used to call them. Right.

Producer:
I remember those.

Producer:
Oh, yeah. When Kmart existed. Uh, another 39% said that they are cut back on non-essential journeys in their vehicle. In other words, they drive to work, they come back. They just don't take little fun jaunts out and about anymore. Another 39% say that they don't go out for dinner or lunch anymore. Or if they do, they go out, you know, less often than they did before. 32% said they use less gas and electricity in their home, and 27% more than a quarter said, you know, they gave up on some of their hobbies. And then. Um, there are some stubborn folks out there who must have lots of money because 11% said they didn't change their spending behavior at all.

Producer:
Yeah, when I looked at that number, those 11%, I said, well, I'm envious of that 11% because, you know, they must have millions or billions packed away somewhere where they can just, you know, no matter what the inflation rate is, they're doing great.

Producer:
There are some people that just don't make changes. I mean, I know a few. Anyway. So, you know, you know, over Matt, over the last few weeks, you know, our listeners probably received their third quarter statements for their retirement investing accounts. So the question I have for them are, you know, are you satisfied with how your portfolio is performing for you lately? Another question I have for them is, you know, have you heard from your advisor or financial professional lately? If you haven't, we basically call you, you know, financial, you know, orphans. Because, you know, somebody come in and they'll, they'll, they'll sell you a pretty plan or they'll sell you a specific product. And next thing you know, you know, they're gone in the wind and they're hard to find anymore. So, you know, if you want better performance and you want better service, then give our team a Castle. Financial Solutions a call at (813) 430-7100. Again, that's 813430 7100.

Producer:
Want to know where your hard earned money is going. It's time for an inflation demonstration.

Producer:
Oh, boy. I was upset about this one when I when I read about it because, you know, the cost of everything seems like has gone up. But now this one. This one hurts. If you have a sweet tooth like me. Yes, Girl Scout cookies are going to cost 20% more in the coming months. Not music to the ears of any sugar holics out there.

Producer:
It's even worse because not only are my sugar holic, but I am. I am the proverbial cookie monster. I never met a cookie I didn't like.

Producer:
Pretty much You and me both. Although I would have to say that, you know, at a at a party or gathering or whatever I am, I am disappointed, at least slightly, when I think I've got a chocolate chip cookie and it turns out to be oatmeal raisin, right?

Greg Castle:
Yeah.

Producer:
Exactly. They look so much alike. It is. They don't change the color of raisins. Right. So anyway, to go back to our point here on Girl Scout cookies, you know, there's a lot of Girl Scout regional councils that are raising the price of their popular cookies to help cover the the rising cost at the two commercial bakeries that make the treats. Uh, in other words, your favorite box of Girl Scout cookies that used to sell for $5. And actually, I remember back when they were a dollar and, you know, not that I'm telling my age or anything, but, you know, the ones that sold recently for for $5 are soon going to cost you $6. It goes up $1.20 percent. And, you know, a lot of cookie lovers are surprised that their Thin Mint purchasing power is thinner than it used to be. A $20 bill that used to buy four boxes of cookies are now only going to cover three. You have a couple of dollars left over, and I would encourage you to tip the Girl Scouts and let them use it for a good purpose if that happens. And then nationwide, this is kind of an interesting fact. Nationwide, Girl Scouts sell about 200 million boxes of cookies annually. There's one on every corner in front of every Walmart. And but the interesting part about that is that, believe it or not, that's more than Oreos sell the entire year. And even though Girl Scout cookies are only on sale for a few months of the year, so typically they're on sale between January and April. But the fact that they sell more in those few months than Oreo sell for the entire year, it just tells me that I got to eat more Oreos to help them out.

Producer:
There you go. Don't discriminate on the cookies here. But, you know, there are all kind of different flavors of of Girl Scout cookies. And some have come and gone over the years, but kind of the staples remain. I would have to ask you, Greg, what's your favorite flavor if you had to if you had to choose? I know, I know, you probably like them all. You have to choose. What's your favorite flavor of Girl Scout cookie?

Producer:
Now there's so many to choose from. You got what? Thin mints. You got caramel Delites or Samoas. You got peanut butter patties. Tagalongs Dosey Doe's peanut butter sandwich. You got lemonades are fairly new and with lemon ups. My favorite is going to be it's a it's probably going to be Thin Mints. It might be a toss up between Thin Mints and the caramel Delites.

Producer:
Mhm. See, I like the Thin Mints a lot because you know like my favorite ice cream is, is mint chocolate chip ice cream. I just love it. That combination for some reason I absolutely love. But I also have to say the Tagalongs are kind of the second in line because of the whole peanut butter chocolate combo. Also a great combination. So, you know, give me a box of either one and I'll be a happy guy.

Producer:
But your $20 on the table, you can get four boxes. Take your pick.

Producer:
That's right, that's right. Or at least you know, three boxes with a couple of bucks left over. That's it.

Greg Castle:
Oh.

Producer:
But all right. So. So that's our foray into, uh, Girl Scout cookie dough today. Let's move on to maybe a topic that I know for retirees is a bit less fun, and that one is one that is required minimum distributions. Boy, if you say the letters RMD in that order to most retirees, they're probably not going to look back at you very happily. Um, they'll probably, you know, grimace at you a little bit. But as we approach the end of the year, you know, it's important to remind folks the deadline for taking those required minimum distributions is fast approaching. Right, Greg?

Producer:
It is. You know, the interesting part about this, too, is that I talked to so many people that are approaching retirement, but not quite there yet, just a couple of years from it. Perhaps they're even in the retirement red zone five years prior. They really don't know anything about RMDs. I mean, you sort of explain that, you know, certain products and certain investments are RMD friendly or they aren't RMD friendly. What's an RMD? Is when you explain it to them. You mean I got to start taking money out? So what is an R&D? Let's tell our listeners real quick. Basically, an R&D is Uncle Sam's way of saying, okay, I gave you a break years and years ago, so now it's time to pay the piper. And RMDs are basically where Uncle Sam is going to tell you. Irs, in the form of Uncle Sam, is going to tell you exactly how much money that you have to withdraw in any given year from your accounts to satisfy those RMDs. And it's usually a certain percentage based on your age, and it never expires. If you live to be 120, there will still be RMDs. You got to pay it. It'll be a smaller amount. You got to pay as your investment shrink. So there's a calculation for this. I'm not going to go to it on the show today, because most people don't have a pencil and paper, pencil and paper to to follow along. But you give me a call, then I'll be happy to explain to you how RMDs are calculated. Rmds are calculated. I'm sorry. Anyway, so we are approaching the deadline. The deadline for making your RMD or paying your RMDs is December 31st, so missing the deadline could result in significant penalties.

Producer:
Be sure to mark your calendars and prioritize this important financial task before it's too late. Uh, RMDs are required minimum distributions from employer based retirement plans and traditional individual retirement accounts. Iras are, as I said, are going to be due on December 31st. Don't miss that deadline. It's December 31st for most people 72 and older. Now it is changed because the secure act 2.0 recently, it's now 73. For those who reach 72 after December 31st of last year. So if you're not quite 72 yet or you reach 72 after December of last year, then your RMDs are basically 73. Begin at 73, not at 72. But don't forget that these distributions are taxable. What typically happens and what typically what always happens, is that the IRS is going to tell you how much that you have to pull out based on their calculation or their information that they have on your qualified accounts. Those that you not pay taxes on yet and you have to pull that amount out. Uh, the amount you pull out, you pay taxes on what's left over after taxes is yours to spend so. Or reinvest as you choose. And there's only one exception that allows you to make your RMDs after December 31st. And that exception is that the year in which you turn 72, or if you're born after December 31st 72 or 20, 22, 73. Anyway, you'll have until April 1st of the following year to take your RMDs out of your accounts and pay the taxes on it. You know, years ago, Congress determined that it would give people a three month grace period on their first RMD, which you'll also have to make another RMD payment that year by December 31st on your account for that year.

Greg Castle:
So if you delay it that extra few months, you're going to pay twice in the same year. And there is a significant penalty if you don't do that. I mean, number one, it could put you into a higher tax bracket. Number two is that if an account owner fails to withdraw the full amount of the RMD by the due date, the amount withdrawn is subject to a 50% excise tax. Now, because the Secure act 2.0 that drops the excise tax rate down to 25%. And if you just really, really make that payment in a timely manner, there's a possibility, if you correct it, that you'll only be charged a 10% penalty, but you could be charged, you know, at least a 25% penalty for not making that. They'd be pretty significant for most people. So if you want to say goodbye to RMDs and just get rid of the IRS obligation from your retirement plan altogether, give us a call. Let us help you with a Roth conversion. Some of the advantages of the Roth conversion are that you have basically tax free withdrawals. You know, Roth IRA contributions are made with after tax dollars. So all withdrawals, including the earnings, are tax free in retirement. It also gives you some flexibility. Unlike traditional IRAs you're not required to take RMD distributions ever. In tax diversity. You know, Roth conversions provides you with the ability to diversify your your tax liabilities and also allows you to have access to both tax free and taxable income sources in retirement.

Producer:
And you out there listening in, in in listener land, you can get in touch with Greg, actually to receive a free report that goes into a lot more detail about the options for tax free investments for a better retirement. That's actually the name of that, that particular document, that particular report, tax free investments for a better retirement. It's going to provide you with a lot of additional detailed information as well as some tips for getting started. So to schedule your complimentary consultation with Greg and receive that report free of charge, free of obligation, just give Greg a call 813430 7100. You can also shoot him in the email Greg at SafeMoneyMasters.com to do that same thing. And remember, you know, Roth IRAs, which Greg just mentioned and life insurance are the only truly tax free investments that are available to Americans today. So if you want to take advantage of a complimentary no obligation consultation and see how one of those tax free strategies can help you during retirement, once again, the phone number to call is 813430 7100, and you can reach out on the website as well. That is SafeMoneyMasters.com.

Producer:
You met. Appreciate that plug. But the you know, some of our listeners, I know I talked to so many people, but a lot of our listeners have what we call a stray 401 K or an orphan 401 K or a 403 B or a tsp, something that you already you left that particular job, you still have that account with them and you're eligible to basically roll that over. So many people neglect to roll over the funds from a previous employer's retirement plan, and that that creates an issue. You know, those folks that are really savvy, pre-retirees and retirees take the funds from a previous employer's retirement plan and roll it over into something else, usually an IRA with more investment options and lower fees. And you could even establish your own personal pension by purchasing an annuity. With these funds, you will still be qualified. You got to pay taxes down the road, but you know, it's still establishes itself as an IRA. So, you know, set it and forget it. It's often not a good strategy. So we help people manage their hard earned and hard saved money and in a more efficient way that fits their needs. Yeah.

Producer:
And you can reach out to Greg and the team there for your own customized retirement plan. As we say, it's not a one size fits all. It's not just, you know, something that, oh, we have this prepackaged thing we're going to try and sell. You know, it is absolutely not even a sales pitch. It's something where, you know, Greg and the team there are going to take your situation now and show you what it could be and come up with a personalized plan just for you. Once again, you can go to the website, Save Money masters.com or call 813430 7100. All right Greg. Well, as we've been talking about a lot these past couple of weeks because it is it's very relevant. The or annual enrollment period for Medicare is here. It's upon us for these next really almost couple of months. It's something for people to really be aware of. But also it's something that the scammers out there are already aware of. It seems like, you know, anytime there's a big a big event that happens, something, even something big that happens in the news, something that is a, you know, a different season that comes around once a year. They'll like, you know, season, for example, or the holiday season, which isn't that far away as well. The scammers will come up with new ways to try and part ways with your hard earned money that they can just make off with it and leave you wondering what in the world happened kind of in the dust there. Talk about that concept, Greg, and also how people can avoid some scams during this year's Medicare AEP.

Producer:
You know, scams.

Greg Castle:
Are.

Producer:
All over the place. I mean, on the internet, you know, phone calls that sound realistic. And, you know, scammers have gotten pretty sophisticated on how they do things and how they trick you and trap you into stuff. So some of the ways to avoid making the mistake of giving too much information away, or talking to people about things that they have no business learning about you is number one. Beware of unsolicited contacts. In other words, be cautious of unsolicited phone calls, emails, or door to door visits offering Medicare related services. Also, you know, don't share personal or Medicare information with anyone who contacts you first. Research plans. In other words, if you want to check something about Medicare, people will normally either send you a correspondence through the mail, or there's a lot of different Medicare events at different stations around the place where you can go and contact or not go. You can go visit someone face to face, or you can just give a call to someone, and at least you initiate that call someone's not calling you about it. Another thing do is protect your Medicare card. You know, keep your Medicare card secure and avoid sharing your Medicare number with anyone. Medicare cards no longer display your Social Security numbers to basically enhance your Social Security. If you happen to have an old card that has your Social Security number on it, contact the the Social Security Administration. Ask for a new Medicare card. They'll be happy to send you one. Another thing too is basically what I would say trust but verify. In other words, regularly review. Regularly review your Medicare statements for any discrepancies or changes that you don't recognize, and also report any potential fraud to Medicare or your state's senior Medicare patrol. And those things should help you keep your keep your Medicare benefits safe and assigned to you and not to somebody else.

Greg Castle:
Yeah, keep.

Producer:
You and your personal information and your money safe. All all of the above during this Medicare annual enrollment period that is upon us. Well, you know, Greg, another big question that a lot of people have in their retirement years or as they think about their retirement years. No matter how far away they might be, is okay. Am I going to have. But more money than lifetime? Or am I going to have more lifetime than money? In other words, it's like, am I going to outlive what I have to to live on? And it's a huge question because actually, it's like the number one fear surveys have shown of retirees is running out of money even more than death itself. And it's a it's a scary proposition. But there are some strategies to make your money actually last throughout your retirement, no matter how long that retirement may be.

Producer:
Yeah, you're exactly right. The. You know, one of the things about that being the number one fear is that it causes stress, and stress actually is known to reduce your your life span. So knowing that you have income to make it through all those years is going to be great now. If you make it to the age of 60 or 65, your chances of living a long life are much, much higher. I think it's day 65. You make it that far, your chances to make it to 85 are substantial. I think it's over 50% that you're going to make it to 85. If you happen to make it to age 70 something, I forget what it was. The chances of you making it to age 90 is basically up to 25%. So as we live longer, we have to plan longer for retirement and your money needs to last. And so there's so many changes coming up too. We've talked about a number of times, for example, changes in the possible changes to Social Security starting in the 2033, where your Social Security check might be reduced by, you know, anywhere between 25 and 33%. That's across the board, even if you're already drawing Social Security. So. Uh, have you planned for that reduction in income for the rest of your life? The the point is, is that, you know, as the curtain closes on the chapter of your working lives, you know, as a pre-retiree, you need to be seeking solutions to protect and grow your portfolio. We understand that one of the biggest fears of retirees is running out of money.

Producer:
So. So here are a few essential strategies that can put a safety net around your retirement. And one of those, one of the very first ones I would give you would be maintain a diversified investment portfolio. In other words, you know, spread investments across varied various asset classes such as stocks, structured notes, real estate and cash and and annuities to reduce the risk of relying heavily on any one specific asset. For example, if you were heavily invested in real estate back in 2007, 2008 and the housing bubble, you know, caught, you blindsided and those values went down. Uh, that that could really hurt you. By the same token, you know, if you're heavily invested in stocks and you have nothing else to diversify with and the market crashes like again in 2007, 2008 or, you know, Black Monday, 1987, October 19th. Remember it? Well, I was a stockbroker. Um, you know, that's all that you had then. Recouping those losses in retirement is very, very difficult. So make sure you diversify. Another one would be basically this is a very important one is I would tell you to secure guaranteed income sources. There's not a lot of guaranteed income sources. You know, one is Social Security. And even then they may reduce down a road somewhere. But also annuities, those two are examples of sources that can provide predictable income. You know, consider adding a personal pension to your retirement to increase certainties that guaranteed income within your retirement plan, because an annuity can do that for you. Talk to us and we'll be able to give some information about.

Greg Castle:
Uh, also.

Producer:
You can implement flexible withdrawal strategies. In other words, rather than following a rigid withdrawal plan. Considering when this dynamic so that it takes into account market performance, life events, and other unexpected expenses. And everybody needs to create create a contingency plan, which is prepare for unexpected events by setting up an emergency fund, insurance coverage, long term care plan any of those things to help protect your assets and financial well-being when a crisis occurs. And then, of course, it's very, very important that everyone review your finances regularly. You need to check do financial checkups with your advisor or professional and let them help you stay on track and also to track your progress and reassess goals in a in a in a just retirement plans as needed. And then one thing that is never good to hear that I have to tell my clients all the time whenever they're running really, really tight in retirement, whenever the job stops. And basically you're unemployed for the rest of your life. Uh, reduce unnecessary expenses. Identify areas to cut back on spending and free up funds to support retirement income for longer period. Some of those expenses you can cut are things like streaming TV channels that you don't watch. Maybe, but one show on magazines that you pay for that you don't really read. Some of those cookies that Matt and I like to eat just, you know, maybe not cut back on them a little bit, help out in a lot of ways, but whatever it is, cut back on unnecessary expenses to give you more money that you can use for retirement down the road.

Producer:
And now who says those cookies are unnecessary? That's that's what I'm saying. That's.

Producer:
Yeah, I agree 100%. I mean, those are that that is a food group.

Greg Castle:
That's right, that's right.

Producer:
A food group all of its own. Part of a part of a balanced breakfast.

Producer:
That is don't don't don't joke. I mean, you don't hear my breakfast is so, you know, it's, uh.

Greg Castle:
Yeah.

Producer:
I love it. Well, folks, if you want to, you know, talk about cookies or if you want to talk about your financial future, Greg gas will be happy to do either one of those with you. You know, we talked about their strategies to make your money last throughout your retirement. Cutting back on those unnecessary expenses, just one of them ways that you can do that. We'll give Greg a call at 813430 7100, and he'll be glad to talk you through some more different scenarios and some some different strategies that could work for you in your particular situation. All right, Greg, well, before we get to this week in history, in just a few minutes, we got time for a couple of questions as I reached down into the mailbag here and pull them out for our Ask Greg segment of the show. A couple of questions here in the first one is actually from Cindy in Clearwater. She says this I am entering what you have referred to on your show as the retirement red zone. Yeah, we talk about that quite a bit. What are the key factors I need to consider when planning for retirement? Now, here's the thing to our listeners out there, we just to clarify exactly what the retirement red zone is, the five years immediately preceding the date that you retire and five years into retirement as well. So that's what Cindy means when she talks about the retirement red zone. So again, Greg, her question is what are the key factors that she needs to consider when planning for retirement? Well, first.

Producer:
Of all, Cindy, thanks for being a listener and reaching out to us. So to answer your question, you know, one of the key factors, you know, one is you need to determine your retirement goals and your desired lifestyle because you want to make sure that your income in retirement can help you achieve that lifestyle. So you need to calculate how much money you're going to need during retirement based on the expenses that you have. Again, there's no one size fits all retirement. Some people's expenses are lower than others. They need less money to live on. Another thing is you need to assess your current savings and investment portfolios. You know they will help determine what kind of returns that you're getting and what kind of terms you can potentially reject based on historical averages. And make sure that you have the income that you need to to carry forward in retirement, to carry you through for another 20 or 30 years, depending on your age. Uh, consider factors like inflation we talked about earlier and also health care cost and market volatility. Health care costs once you retire may go away as far as what you're paying for your your company plan. Very few companies allow you to carry those health care plans forward, so you're probably going to have to rely on Social Security. Uh, at some point, you know, part A and part B and in Medicare for your health care. We've talked about Medicare. This show and last show and some other things. So take a look at that and also evaluate potential sources of income such as pensions, Social Security benefits. And if you don't have any annuities, you might consider converting a portion of what you have in your big pile of nest egg there into an annuity that can turn into a lifetime income down the road somewhere. And then finally create a comprehensive retirement plan with realistic timelines of milestones and goals. Those are all things that are important to to get you where you need to go.

Producer:
And if you want to help, if you say that that or that sounds like a daunting task, which it can and that's, you know, nothing wrong with with that and admitting that I know a guy who can help you. His name is Greg Castle. You can get in touch with him, email him at Greg at savemoney masters.com. Or you can go to the website that is savemoney Masters.com. All right, Greg. Time for one more here. Think quickly before we get to this week in history and this one from Bob in land O lakes. You you guys talk a lot about fixed indexed annuities on the show. How can fixed indexed annuities contribute to a secure retirement? Great question there.

Producer:
We love fixed indexed annuities, and we think that everyone should, you know, have an annuity as part of your retirement plan anyway. Maybe not everybody, but most people. But what can they do for you? You know, fixed indexed annuities guarantee the safety of principal. In other words, you can't lose any of your principal or credited interest that protects you from market volatility. They also offer market like gains without the downside risk involved. So that basically gives you a diversified asset class. Some annuities provide a guaranteed income for the rest of your life. In other words that you have the option of of deferred income annuity. Or in some cases you can take a look at basically a an accrual annuity. Uh, also, the annuities can act as a valuable source of income during retirement. Again, you can turn them into lifetime income. They've also typically have some sort of living benefits. In some cases, you have what we know as a well-being writer, wellness wellness writer, in case that something happens to you, you have an element of long term care that can turn your income into. A doubled amount for a period of time. And then finally, they can help you protect against outliving your assets and offer peace of mind. Which basically takes the longevity risk off the table. There's a lot of other benefits as well. This is just a handful off the top of my head, but I think that you need to discuss those and see what we got.

Producer:
Yeah, absolutely. Take a look at that folks. And you can get started on that on that road, on that journey by going to save money Masters.com and requesting a free consultation. It's this week in history. All right, Greg. Well, a lot of great and important things happen this week in our history. Start off, sir, by telling us what happened on Monday, October 23rd or guess. October 23rd. Not necessarily a Monday. Then it was this week, but October 23rd. In 2001.

Producer:
Apple introduced the iPod, which is a portable media player. Those of you that are just turning into your teen years right now don't remember it. Those of us who are old farts, it's probably the first media thing that we ever had. It was revolutionary, I think is the word I would use for it. October 24th. Today in history. In 1945, United Nations established or was established to maintain world peace and friendly relations among nations. Today, in October, a correction. Today. In 2003, supersonic passenger service ended as British Airways flew its last Concorde flight and 1940. On this date, the 40 hour work week went into effect under US Fair Labor Standards Act of 1938. And you think that 40 hours, you know, seems like a long time now? It came into came to be because people were working much more than 40 hours without any overtime. All right. Today's birthdays. Got a few special ones coming up today. Drake, the singer and rapper, turns 35 today. He has 47 Grammy nominations and four wins. Kevin Kline turned 74 today, is American actor and Academy Award winner, but got a special shout out to two of my favorite birthday boys. One is my son, Cody. He turns 33 today and my stepson Charles, one year older. He turns 34 today. Today is in addition to their special birthdays, National Food Day. National Baloney Day. National Jamaican jerk Day. National Elizabeth day. United Nations Day and National Kangaroo Awareness Day so United Nations can take care of the world. Kangaroos. We don't have a lot of them around here except in zoos. And so it is National Food Day. Cookie is a food, so I'm probably going to go out and have a baloney sandwich with some Jamaican jerk for a Jamaican jerk for dinner. My waitress is going to be named Elizabeth, and I'm going to enjoy a whole lot of food today.

Producer:
There you go. And have some Girl Scout cookies for dessert.

Greg Castle:
Yeah, that was a big.

Greg Castle:
That was a big stretch on the days. But anyway.

Greg Castle:
Yeah, all of it. There really is a day for everything. There really.

Greg Castle:
Is. Anyway, with all that said, I think it's probably time to wrap this show up. Matt. So let's just say we'll see everybody hope you tune in next week at the same bat time.

Producer:
Same bat channel.

Greg Castle:
Have a great week, everybody. See you next week.

Producer:
Thanks for listening to Safe Money Masters with Greg Castle. You deserve to work with a financial expert who has a track record of helping clients exceed their financial goals by implementing safe and proven strategies. To schedule your free, no obligation consultation with Greg. Visit SafeMoneyMasters.com. Not affiliated with the United States government. Greg Castle does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or specific result. All copyrights and trademarks are the property of their respective owners. AmeriLife assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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