5 Keys to a Successful Retirement: Mitigating Financial Risks
Retirement is a time of decades-long "unemployment." Here is some advice on how to guarantee lifetime income during that time.
Welcome back to our Siri's the Five keys to successful retirement. We have covered four of the five, and now we'll come to number five with coach Pete Dorota with 27 half years off. Wonderful experience is a true fiduciary Who has your best interest in mind? I'm Chuck Cayton now. We talked about shifting your retirement perspectives, understanding your investment purposes, maximizing Social Security and managing your health risk, which was really important. And I learned a lot because I didn't realize you could get that insurance policy today. But now we will get back to mitigating your financial risk, because as you get on close to retirement it in, you have to be careful with your money so that you're not risking too much. You have enough and you will not outlive your retirement funds. We talked about red, green and yellow earlier in the Siri's read accounts of risk. Green accounts are safe. Yellow accounts are safe but 100% liquid, but you're not gonna grow much in it. So we want. We want to make sure we have the proper combination, uh, chuck every single year when we go through retirement. But here's the next step, we need to make sure we have what I call income diversification and spousal diversification. You are husband and wife. You're watching now. One of you has been the breadwinner, and the other one's been the homemaker taking care of the kids. This happens a lot. See this a lot. So the one of you who was working Mawr in the in the out the field, so to speak in the business world probably built a 41 K balance up pretty high. Well, what we do a lot when people reached that retirement age of 52 above, actually 59 very important age. If you're 59 over and you have a big balance in a 41 K, you could do what's called in service distribution, where you can move some of that money that's at risk in the 41 K, with hardly any options into your very own individual IRA. Now, why is that important? Well, number one now you're not tied to the group account anymore. Your money's out of that group company account. It's in your very own account. You have a whole lot more options Chuck than you ever had the 41 K plus, you could have an income plan there, a pension, your own personal pension, which is great. But you know, when we talk about it and and by the way, you could move the money from the +41 K to the i. R. A. Tax free. There's no tax on that movement, so that's very good to now when you take it out and spend it big taxes, always taxes. But now let's look at this one spouse here who's been the breadwinner and you got the other spouse who has taken care of the family. Basically, at home made dinner, taking care of kids all that. But it's an individual retirement account. We move our money, too. That's what IRA is. That's what a 41 K is. It's called an individual retirement account. What does that mean, Chuck? One person, one person. So you're the spouse, all right, you're the spouse at home. The breadwinning spouse now has all these account balances, and then they start taking income where they want to start taking income for retirement. Now the problem that existed in the past is because it's an individual retirement account. If the breadwinner or the person who was in charge of that account would pass away a lot of times, that money would pass away with him. But there's a special provisions now, which gives you joint income provision on your Individual retirement accounts. You think about it. Individual Retirement account. It doesn't make any sense for both people to get both husband wife to get income. But you can if you set it up right now. Why is that important? It is very important because you don't want that money. Thio die with you. They always said you couldn't take it with you. Well, somebody's gonna take it from you. It's gonna be Uncle Sam. Probably. We always say plan toe 1 21. Our plans run to H 1 21 and beyond, and we call never, never plans. You never worry about running out of money. And you never worry about what's gonna happen. Your spouse, because both of you are covered in the never never plans planning to 1 21. It is so vitally important these days to have a true income plan and make sure you have more than one stream of income and make sure that income increases over the years. These air all parts of income planning, folks, This is one step beyond red, green, yellow and proper risk. Proper safety. This is income planning, and Chuck, when you think about it, that's why we work all our life. And that's why we save money away. That's we could have taken vacations, maybe two or three more vacations a year. Instead, we stop money in our 41 K Because retirement is a life long vacation, it is 30 40 even 50 years of unemployment, otherwise known as retirement. How important is it to make sure you have income that's gonna be there and increase absolutely spouses all the way through there. It's basically your secondary job. Only you're enjoying things if you do it properly. And that's the key because Coach said, you've worked so hard all these years. Make sure you can complete the mission by having a wonderful retirement by doing the right things and visiting a true fiduciary. So wrapping up with Social Security, make sure you do the maximum plan there. Make sure you don't have too much money at risk. Make sure you do have some money with maximum horsepower, but not all your retirement tied to that retirement money you're gonna need for the rest of your life for income. You don't need to boo boos and risk the day before retirement. Having that proper income plan, making sure you have a long term care strategy, pursuing or examining the life insurance policies out there that give you a lifetime benefit of long term care. Long term care based on the death benefit, the life insurance policy throughout your life. It can never be taken away. In other words, a zoo, long as you pay your premiums for the life insurance and they never increase those premiums. And that's what we the big problem of long term care. So all this wrapped together are the five keys toe very successful retirement folks. I recommend key number one Chuck one A would be to give us a call so we could make sure to put these five keys and customize those keys so that they fit your box and only your walks. That's customized planning. We do. Every every single plan we do is customize from the ground up. Folks give a call right Now the number you see on the screen we can help you get your perfect plan together. So you have this five piece, Chuck, Thanks for your time today. Thank you very much, Coach. Do it. You'll never regret it. Mm. Uh huh, Yeah.