May 4, 2014|
Automatically Generated Transcript (may not be 100% accurate)
Good Saturday Austin. Broadcasting from the top thirteen seventy studios you're listening to financial wise with your host and Suzanne -- Can you depend on the stock market is your only source of an account for thirty years from retirement. Blackburn and her financial life specialty has also been featured weekly on -- here so stay too. She brings the same healthful life changing information don't talk radios listening audience. Here's your host and Suzanne Blackburn. Today shows about income planning folks we're going to go deep into the topic. Of life and security lifetime income and how we planned for that. You know there's some really big events that you count in your life. You know college education and having a marriage. Having a baby. These are all things about you know what you're gonna choose as a profession and these are our real life choices that dictate the flow of your life. And one of the big choices that you're going to make. Is when do I stopped working and collecting a paycheck from my earnings from what I do. To switching on an income plan for life. Using Social Security pension your private investments. For rolling -- All those different things now when you are in and the accumulation phase of of working. Life's very different because if you lose money in the market is I told you before. You just go back to working you just learned again. But in retirement. It's a different world it's very frightening you know you really -- stop and think. -- back out how my gonna do this do I need to depend on the stock market's ups and downs. The historical Dow Jones. Has told us. That we have had Ford distinct bull markets and Ford distinct bear markets. And we are currently. In a runner up from the only crash. But do you really think that's collapsed and any -- whole retirement is is leaning and depending on. The stock market to to give you an income stream that's very unpredictable. Very volatile. It just doesn't secure. My mind. I wanna have a diversity so Tammy Moore is on the is on the the line with me. And -- actually now someone that works at -- financial but she started as a client. And when I met can be she had some choices to make. She had spent 21 years and a local the very well known company here in Austin. And it was literally you know -- resulted downsizing. And and you know changing the structure of the latest this business was going to work her position. She was let go in and in a layoff situation and literally given sixty days. To do something with her retirement assets and so I met her in a meeting that we did for that group so Tammy welcomed the show all season. So I wanted to talk to you briefly tell me about that time what that felt like transitioning let the listeners know about. Well it rolls real education can share and any. Paris never and I wouldn't retire. When the company that I spent my whole life. Port and -- and I was actually when those people. That -- to ease my degree. From college. And so. Wing. The unexpected happened. I only quickly. Realized how. Many teams are tied to the company's. And because I that the company was going to take care of me. Until Paterno. Said he pulled out -- life insurance -- -- like you mentioned before my retirement accents. And a I've really understand. Everything that I had. And how was I going to replace. Recycling -- he called teen continue. Them. And still be sold right all the things that we property claimed. Senator I have to say little anyway is a blessing if you've been our life in math contest team. Really navigate -- you send -- very difficult times because it's not just at. You know when it was beat by a balanced and it happens to use any traumatic. And they're coming be released. As. Really losing out I mean. Companies that he'd get in your heart and soul teaming. And that you really respecting and and I wanna hear our current year and in and trying to -- accomplished it's it's very difficult well and I remembers distinctly. With you and mark. You are given that any. You know when you work you put money away in a 401K you were given. Retirement -- some different things that happened in your life. And the big question. Which I'm sure everyone has isn't enough. Is it enough money. Because you know you if you read the money magazines and listened to all -- Wall Street Journal garment. You know we have to have millions and millions of dollars in order to retire. And live the same lifestyle and -- those same choices. And so what we were able to do is sit down and if you remember it took about an hour and a half I needed to collect information from you. About your incoming and outgoing kind of what you wanna do in your life. You retired from that company young enough that actually work now somewhere else. You know a lot of people retire and they they don't want to do that -- they'd like to explore options can I go ahead. And and not receive an income just from my investment portfolio. And you know those are questions that can only be answered through diligent. Detailed tracking of what your lifestyle is financially. Analysts say -- I am like I said before her. How much less tied to -- eighty I just have just been a proponent. On Myanmar are insane comment Thailand's. Allowing companies to make decisions -- you know what was the next of my part totally handling we kind of went with the standard option that they gave Atlanta at a seminar Ireland and sang never really -- -- -- but we actually had. Sitting down and -- and TU. -- trying to roll things over her and your pre release means that the company had been grass in the way of life insurance and those and things. How can that be set -- to insure. That we can continue current -- Right. Well and you know at the end of the day. You wanna make sure that you can maintain as much of the same lifestyle -- happ now while you're working in retirement. You know I I mean the saddest cases I've seen. Are people that have no plan that have their investments all in stock market Ali and generally speaking mutual funds. And it's a growth at all costs. And they're living as frugal as I possibly can because they don't wanna be affected by the next count downturn. That we all know is coming. We all know that it's not gonna continue. With this -- dollars thrown into quantitative easing number one number two number three number four -- and -- item it's not gonna keep on. And eventually we're gonna have a correction possibly a major correction many of my top analysts are saying. That this investment strategy that the government has is not sustainable. And you know if everything you have is tied to the stock market model of -- hold. It's gonna get very I don't know I I can't predict the future. But definitely I'd seen this come around the -- before I think we all know that there's something. Functionally wrong in that capacity. Without question almost all of -- come in my Q did my -- and mark they want me to give them a plan. You know which requires some work from you if you remember I gave you some homework to -- if the. That's friendly and not at all we know who went in the -- about. Mark can Ernie is that we came from backgrounds there at. Our parents our containers. And we always put away our rainy pain. I contrast that with many more people that I've worked but it ever in the same situation has asked. Do I am living paycheck each act and even that much more traumatic. But I won't see me in today's more. Where every company out here is turning -- restructure. These beings the most patient. Outsourcing his technique and Sidney and elsewhere at ease -- where can I can to get this resource cheaper. Iron -- and I consolidate offices across the country. Back kind of seen that this is the norm assistant norm in today's economy. Is company's restructuring activities being it's the most efficient but it's not. I only east west or ask. Palestinian police as they may find ourselves in my position group and are you prepared expect the unexpected. We Catholic retirement the same me right but they're not -- present at. Always -- my age you may be thrown some curve -- health and long. He really had the tying T attest that. Well you know a couple things that we specializing -- financial. And please call our office at 512. 2159030. Today I'm offering a book called rethinking what's ahead in retirement. And it's a perspectives book and it really share some insight. In two what's the changing environment. For those of you that are retiring. In your fifties and sixties and what you face. A tidal wave if you will of seniors. That are moving in into that age category right now we have 111000. People. Turning 65 every day. That tidal wave if you will is something that's going to change the economic culture. It's going to change the way we do business. If -- get the the need for lifetime income. And not dependent necessarily on the stock market. That could be one piece of your pie but you know something didn't go back to what you said that defined it. Plan of pensions. Is and modeled it's not normal. In big companies anymore they're doing away with that and so that in 1980. People had those -- about 27%. Of us had. Defined pensions and now in 20078910. It's only about 3.5. Percent that's a big switch at -- Celine. To guess what folks here on your own you've got to put money away will match you a little bit 3% of what you put in -- 6% if you're lucky. But it's up to you. To do your own retirement planning. Now Social Security is still there but I have to share with you that. It's governed by the law. And lots can change at any given moment. Obama actually put into the current budget. To modify the cola the cost of living adjustment. For Social Security people are depending connected to continue to rise with the CPI. If that changes that's -- that's gonna cut into people's income stream because the cost of Medicare. Is taken out of Social Security. So imagine a perfect storm rising health care costs and Medicare premiums that are taken out of Social Security. And no cost of living adjustment. That and that to me that's not a very good situation for people that are depending on Social Security. Can you talk about the war and Allison -- removal of her and beat me and calm and but how much longer. To learn live and it's. Well in our next segment stay with us and cause cats are financial and 512. 2159030. Get the free -- rethinking what to headed retirement. An in this next segment we're gonna help you build a financial house stay with me because that's what we're gonna talk about. Retirement 101. And remember some folks are financial lives. And no pets are otherwise I'm season like. If you're planning for retirement you have lots of questions how long moment Moneyline. What -- need to support long term cannot avoid unnecessary taxes that the most important question is -- where can I get retirement planning and advice I can trust. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- It's is -- -- -- -- -- to work I'm the only time. Planning to game can't start financial dot com investor advisory services offered to global financial -- Capitol Hill seem SEC registered investment advisor. Welcome back to financial life. -- you folks who said black. Byrne. Now meeting your future. Her goals are so important. We've got to build security. And we have to take a look at something that I like to say is the financial house know all of you know -- recently had all these horrific. Tornado events that took place and last year at this time I spoke about the Moore Oklahoma. Tornado event that took place so. I use that example as a story to talk about your financial house. So literally these people are given minutes. To move and take their things and get out of the path of destruction. So if you equate that to your financial house. You know if you know the Rufus is what's going to be the most vulnerable that's where you put your high risk investments. The walls. Are going to be much more structurally sound but can still be blown away just like the one in Moore Oklahoma. Literally they were given fifteen minutes to protect their lives. And at the end of that five minute tornados all that was left was the foundation. So what I wanna share with you is how important. Special and I met with Tammy and her husband mark. To build a sound financial. Foundation. And the foundation. Is a place where we can offer a wide variety of products. To help you have income for life. Now why is that so important we have a wave of seniors and mentioned earlier. 111000. People are turning 65 every day. I mean living longer is great but living healthy. Is is also another issue and one of the number one things that I see. In my seniors that we take care of -- concerned. About their health. You know Tammy -- plane and for. Long term care in your portfolio management in week. Yeah I -- and always the airwaves. And that it'll pull out there like at that point -- Tarrant. TT sits you know and -- and just in a battle and our nation yeah it's about having someone -- EU. -- understand Lawrence. Global public gets -- -- financial situation. I'm putting into place that means that are coming to you and -- karaoke in the long term. You know I got a call -- from a gentleman named lol I'll just say who we've worked for for years. And he called me up and he and he had bought a policy. A standalone long term care policy for somebody years and years ago. And should pace he says its launch in a long he goes I need some help with that long term care staff. And I should what's going on he said I just got a 47%. Increase in my premium. It went from 11100. To -- Moses I mean 2500 dollars overnight. And he's in his late seventies. I mean right when you need -- policy the most. Every year you're getting these huge increases on some of these standalone policies so. So you know again when I talk about the financial disasters. We've got a plan for increase premiums we've got a plan for. If you didn't plan well earlier happily fix it. RA and did declining. Health as we -- and I think about myself. And five years ago. You know I was sharper I was a little quicker -- -- -- that kind of stuff. And as I age I've got to really make sure that things are in place for me and for my family. If I'm not able to take care of it. In -- with you and mark that was a big question we needed to look into the future every Olympic thirty years we need -- road -- Annie and you're always talked about the need both TU. Clean cut that time -- and I don't know how anything any kind losing team basically what equates T Saturday your life. Thirty years. Without having a plane when your income is your -- changing economy is no longer there. Happy he -- how do you not me and that and I think we mentioned that a couple of weeks in remission and people. And don't understand about the health. Expenses. Why he needs and mortar. In the last years of your life on health care -- the least -- not -- prior years before that accent an amazing statistic. It is shocking statistic -- -- cost of health care when he give you this step. We had a 29%. Increasing Consumer Price Index in other words inflation. Over from 1990. -- so basically nine years 29%. Is all the inflation was during that period of time in health care. From 1992008. It will -- up -- rose a 120%. All right that's a 100% more than it did in just the other so. If you think about it in terms of what that really looks like folks is the inflation rates about 2.5. I actually when I do our retirement plan -- plug in 3%. Health care right now is growing at about 5% every year. So yeah so just just calculate that out over thirty years. And if you don't need to go into a home care situation or have somebody take care he let's say in 25 years how do you pay for that. -- So those are things that you know the other part unsustainability. Of the Social Security. Check back in 1950 there was sixteen workers. For every one recipient. And the life expectancy of that recipient was late sixties you weren't it was -- designed. For us to live well into -- eighties and nineties it was designed -- started and you die. Right so you have these sixteen people that are working. To make up for domain that the trust fund was -- spec and now. In twenty you know twelve we have two workers for every one beneficiary to. She and narrow legal ways to avoid paying for some of that stuff when you own -- business so. You know these are things that are not sustainable that's why I'm telling you. Is by burying your head in the sand it's going to be very difficult for you navigate 2030 years in retirement. Go to my website kept our financial dot com. You can listen to past radio programs about these topics. And call my office we're giving away the first five callers. If you'll call me I will give you this book re thinking what's ahead in retirement. It's -- perspective magazine. And it shares all of the knowledge that you need to know about what you're facing we've got to be Smart folks we've got to be nimble. In rethinking what to head in retirement. The middle class lie isn't it all these systems are in place to protect you that's hogwash. It's not true Tammy when you retired did they give you all the details on what we've shared with cute cats are. No I was just set a flotation. -- -- -- Right now there's that two week wait. For the city of Austin retirees to even get into HR. To figure out and navigate. Through all the choices that are available. You need guidance. I think guidance and solid judgment are really important and it caps -- we have a history of success for you. So call my office at 512. 215. 9030. And listen stay with me because we're gonna go into Johnny's story about that very topic that came we just brought up. Remember it. Some folks are financial lives and their risk their other line and seize it black. Contrary to what you heard there is such thing as a complimentary lunch. -- -- -- -- -- valuable financial advice for you it's a lunch and learn -- and -- Blackburn we can't start financial. -- the unbiased financial condition you've seen on TV TV. And heard on the talk radio thirteen seventy million financial -- show Susan Blackburn is -- specialist retirement planning. During her complimentary lunch you can learn wind managing money is harder he stands. How they can keep more money here volatile times what strategies are low risk and high return. How to avoid probate attorney feet. And how to create income streams that -- Reserve your place today for the complimentary lunch and learn Monday may fifth. Faster by calling 5122159. B thirty that's why 122159030. Enron minding -- financial dot com. It's your money projected. Investment advisory services offered through global financial private capital LLC its SEC registered investment advisor. Welcome back to financial lives with your hosts who said. Blackburn. Well I -- tell you a story about Johnny this is a gentleman came in a mile he had been laid off here locally in Austin. Had worked at a company for I don't know 20/20 five years. And Johnny wanted to find out from a last. Eight could be retired beat if he took another job for the next 56 years what was the pay that he needed to earn. In order for him to maintain lifestyle. Maintain that you know his everything that he needed and then safely retire into the future and not compromise his lifestyle it was a big question. And it it will really give him some big answers frankly. When he and his wife came and we looked at in come out go. We look at his future life but traveling -- a lot of people you wanna plug into your personal budget. Maybe even a wine budget I've got one client that's got a 400 dollar wine budget can -- hit the so nice yeah Friday. So you know we -- stuck it up now. Then I have people that wanna spend 101000 a year for travel now when you want to travel in the first part of retirement folks. Go ahead and lived at second childhood without supervision right right this is why -- Elena did that older winging their health -- Not as great. That's right so if we plug in the numbers we add an inflation so that we had market risks to the things that you have we add. You know different asset bases that you have what they're earning. You don't want things completely stable for your foundational assets reluctant to be untouchable. By the market corrections. You know you can have some sprinkles of things to keep up with inflation and then growth and things of that nature for later we get that we totally get that. But if you wanna spend extra early we need to budget for it if you're somebody that buys cars every couple years William we gotta have money for that. I was just gonna mention that I thought that that was the greatest -- and when we -- -- giving you our information and I can take me and I. He even asked us how do you buy your caucus as a -- DN edu Lisa MD by every four years she can as you can collect those kind of Angel and and I how wonderful that we were sitting in front of somebody that took almost lifestyle questions NT consideration. And not just asking as planned. What -- -- aren't asking me can you tell me are you are you pretty good the hiring scarlet and that's the only question and I never -- last. No that we -- wade deeper than that going. We didn't we do we have to do I mean really and in retirement and it's really and to see the plane went -- only -- and he is there wouldn't want. So he'll back -- that financial house folks if you call 512. 215. 9030. We will help you build their financial house now as I said the first five callers will get this rethinking what to head in retirement. It's a perspective magazine and it will give view. Did details of all the things you're gonna face in retirement. And you know if you would like to have a private meeting with -- those are available as well but you won't want to miss this book it's very good on rethinking. What's ahead their retirement. You know we offer a wide range of products and services and our retirement resources are all independent. And before we can ever offer you anything. We have to do this -- we can. That's right ankle it's just it's it took the necessary to say are necessary. But it's value. It's valuable for your peace of mind teen. To see what that green is gonna -- crying in ten years in twenty years and tell her you know. You know folks if you don't -- if you don't remember anything I said today remember this. If you lose control of your financial life you've lost control of your life. It's bad. And so you have to have a plan and that's what we specialize sent it kept our financial. So remember. Some folks are financial wise and the rest are otherwise. And seize up like. 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