Episode Transcript
[00:00:00] Speaker A: Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.
[00:00:27] Speaker B: Welcome to retirement your way with Amerilife of Central Florida, the show that puts you in control of your financial future. Your hosts, Bradley and Madison Hardin, are a trusted husband and wife team dedicated to helping you design a retirement that fits your lifestyle, your goals, and your vision for the years ahead. From smart income strategies and Social Security planning to protecting your wealth and living life on your own terms, this is the place where financial clarity meets coastal confidence. Whether you're just entering the retirement red zone or already enjoying your golden years, Bradley and Madison are here to guide you every step of the way. This is retirement your way. Let's build the future you deserve.
[00:01:12] Speaker A: Hello, and welcome to retirement your way. I'm Matt McClure. Thanks so much for being a part of things this time around. And I am here with Bradley and Madison Hardin with the marilife of Central Florida. Hello and welcome to.
[00:01:24] Speaker C: Hello. How are you?
[00:01:25] Speaker D: Good.
[00:01:25] Speaker A: We are talking all about retirement, which it's what you all do every day. Tell us a little bit about yourselves as a married couple, which you are, but also how long you've been doing this, you know, helping people with their retirement plans.
[00:01:39] Speaker C: So together we have a combined 17 years of experience helping clients navigate their retirement safely. And we really just pride ourselves on building relationships with our clients and getting to know them and their families and where we can help.
[00:01:54] Speaker D: Yeah, and the people in our community enjoy, you know, us coming out and helping and explaining how retirement's going to go.
Sometimes we meet with people that are coming up to retirement. Sometimes we meet with people that are already in it. But we do believe that we provide a different approach to the planning for the future.
[00:02:13] Speaker A: Yeah, and that's the thing, is you guys are really focused on both protection and growth and then also income in retirement, which is something that is very, very important for people that they're often focused on that one big number in retirement, but it's really more about, okay, what is the income going to be each and every month. So that's stuff that we're going to talk about all the time here on the show, and we'll have episodes actually focused on all of those different things as we move along here. So today's show, though, all about inflation. And as a retiree or a pre retiree, you out there watching, you are probably worried about the prices that you're paying at the grocery store just about everywhere else as well. Ronald Reagan once said, inflation is the cruelest tax because it falls heaviest on the people who are least able to protect themselves. But there are some ways to fight inflation, and we want to talk about the first one here in this very first segment of the show, and that is to diversify your investments. Now, people might think, okay, if I'm going to diversify, that means I got to buy different, you know, stocks in different companies or something like that. But that's not really what we're talking about when we say diversify.
[00:03:22] Speaker D: Right, Right. And we like to look at things through more of a safety approach. And one of the content concepts that we like to focus on is called the rule of 100.
So as you get older, it's a very simple equation, and the rule of 100 simply allows you to know how much of your portfolio should be at risk. And Madison's going to give you an example of that.
[00:03:47] Speaker C: So, for example, if we meet someone who is 70, we simply subtract that from 100 to get 30, and that would be the maximum amount of your overall portfolio that should be at risk, in our opinion. Because in retirement, when you're no longer contributing to those accounts, it's really important to protect what you can afford to lose.
[00:04:09] Speaker A: Yeah. Because you get closer to retirement. That's. That's the thing is the idea behind the rule of 100, obviously, is the older you get, the less risk you want to take. And that has, you know, something to do with.
It sounds wonky, but it's the sequence of returns risk because you don't want to retire and then be drawing down on your retirement accounts at the same time you're losing money. That's not a thing that you want to find yourselves in. So having that safety approach, really super important. Right. For people as they get closer to that retirement.
[00:04:38] Speaker C: Absolutely. And we just try to help people understand that the market isn't a bad place to have your money.
Insurance companies aren't bad places to. To grow your funds. It's just that you want to have an overall good blend for your age and also for what your ideal retirement would look like.
[00:04:59] Speaker A: And I know that one of the vehicles you guys like to use is basically a personal pension that people can create for themselves. You know, it used to be back in the day, everybody, you, you worked for a corporation for 40 years, then you retired and you got the gold watch and you got that pen that you knew you were going to have for the rest of your life.
Those days are kind of long gone. I mean, it does happen more often in the public sector than in the private, obviously, these days. But talk about that a little bit, if you will, Bradley, about, you know, that being a part of this diversification that we're talking about so that you could actually have the protection and the growth and create the income at the same time.
[00:05:36] Speaker D: Right. And as you said, Matt, you know, companies started going away from pension plans years ago because it was increased profits. So what they allowed their employees to do is to contribute to contribution plans. So 401k, 403b, 457 and things like that.
And if you've ever had one of those, you know that they're at risk on the market.
So we know that statistically speaking about every seven years the market is going to have a correction.
So what people are looking for from what we see is that they want something that's going to replace that pension that their company no longer offers. And so part of the strategy we come up with is, well, it solves two things. One year, you're getting closer to the rule of 100, so you're removing some risk from your portfolio while also creating an income stream that you cannot outlive. And I know there's different versions of that income and one of them is a single meaning. It's only going to last for my life and the income dies with me. And you know, for some of those married folks, they would rather have a spousal payout to where even if I'm the one that had the retirement plan and I created this income, if I pass away, that's going to go to my spouse. So there's a lot of different tools and strategies when it comes to planning for that lifetime income.
[00:06:59] Speaker A: Amazing. And we will, of course, cover that in depth both in this show and in future shows, I am sure. But right now, time for a quick break. Stick around. As promised, there is much more Retirement yout Way to Come right after this.
[00:07:12] Speaker B: You're listening to Retirement Your Way with AmeriLife of Central Florida to schedule a no cost, no obligation consultation. Give the team a call at 386-977-9684 or visit planretirementyourway.com.
[00:07:33] Speaker E: If you've got credit card debt, you are not alone. I'm Matt McClure with the Retirement Radio Network, powered by AmeriLife. Consumer debt is piling up in this country. In fact, the Federal Reserve bank of New York says as of this year, Americans hold more than $1 trillion in credit card debt. One of the smartest money moves you can make is to avoid going into debt in the first place. Robin Growley is head of consumer deposits at bank of America.
[00:07:57] Speaker F: Even if you're spending with a credit card and you have a bit of a higher limit, don't max that out, right? Just spend with what you've allocated for in your budget. But anytime you're spending on that credit, you have to make sure that you're paying that monthly balance off on time and in full, because that's really the key to building your credit history.
[00:08:14] Speaker E: But maybe you're not there right now. If you feel like you're drowning in a sea of credit card debt, there is hope out there. A debt management plan often offered through nonprofit credit counseling agencies, can help you consolidate those payments into one monthly amount, often with lower interest rates, things like.
[00:08:31] Speaker F: Renting an apartment or getting a favorable rate on an auto purchase. A good credit score is so important to be able to do those.
[00:08:38] Speaker E: And so it's if you've been avoiding your statements or feeling the stress build every time your phone lights up with a balance alert, make a plan and ask for help if you need it. Because this isn't about shame. It's about taking back control.
With the retirement radio network powered by ameraLife, I'm Matt McClure.
[00:08:57] Speaker B: Welcome back. It's time to talk more about building the retirement you've been dreaming about. This is retirement your way.
[00:09:05] Speaker A: Welcome back. This is retirement your way. I'm Matt McClure here with Bradley and Madison Hardin with the Mineralife of Central Florida. And we're talking all about inflation in today's show. And the first step to kind of conquer inflation, or at least fight against it, was to diversify your investments. And we were, we were covered a lot in the first segment of the show. But let's go over one more kind of aspect of that here, Bradley, and that is, you know, kind of the different places, the different buckets for your money to diversify, right?
[00:09:35] Speaker D: So most people know what a bank is, and they use that in their daily lives, right? So the bank is great for paying your bills, having emergency funds, and generally we know that it's safe. So a proper plan allows you to have plenty of bank money. So the next step to that or the next bucket would be safe money. So this is money you're not necessarily going to be using on a daily, weekly, even yearly basis. This would be something that you've kind of put away for Retirement.
Now, the third place is going to be market money. So with market money, as you can be aware of, is that it's going to go up and down with the economy. So as the market goes, it'll go up. As the market goes down, it'll go down. So being diversified across all three, you want to have plenty of money in the bank, you want to have plenty of money safely invested. And lastly, it's okay to have some money on the market still, and then.
[00:10:32] Speaker A: You'Ll be truly diversified there and have some more ammunition, I guess, in your fight against inflation, as we're talking about today. Okay, so that kind of covers step one, diversifying your investments. Let's go in now to step two to fight against inflation, and that is to consider deferring Social Security. And people might say, wait, I can, I can defer Social Security. Like, I don't have to take it. It's like, it's not this one size fits all thing that I think some people might have in mind. You can, there are actually some decisions to be made when it comes to Social Security.
[00:11:08] Speaker C: Commonly, it was thought that you should always defer as long as possible.
You'll get an 8% increase for every year that you defer until 70. But what we're finding now in our meetings with people is that it's not always the, the best answer. You know, if you're having to draw down on your investments to pay your bills now, hoping for more money later, then that's not going to be the best choice for you in retirement. So that's something that we sit down with each individual and couple that we meet and really find out what's going to make the most sense for them.
[00:11:46] Speaker A: Yeah. And that's, that's what it's all about, really. Right. Is about coming up with a plan that's specific to the person and to their situation or to their family situation. Because as I, as I said a minute ago, they were talking about Social Security and specifically. But in general, when you're coming up with a retirement plan, it's, it can be one size fits all because everybody's different.
[00:12:05] Speaker D: Right. And that's what we specialize in. As far as we're going to come get a bird's eye view. We're going to help anticipate. Does it make sense to draw down your investments and let Social Security defer at 8%?
Does it maybe make sense to draw. If you're married, does it make sense maybe to draw one Social Security and allow that other earners to grow up or are you in a position where you need to draw Social Security now? And so if, if you're diversified in your investments, you have a better opportunity of maximizing your retirement, but you want to make sure you look at every aspect of it, whether it be income or the way I'm invested.
[00:12:43] Speaker A: Yeah, there's so much that really goes into it. I think that's why it's important, of course, for folks to, to reach out, to scan the QR code that's on the screen, maybe call the number, go to the website and to, you know, get that free consultation because you really want the professionals looking at your situation and telling you, you know, what is, what is what really in, in your plan and coming up with a plan if you don't have one right now.
And so then step number three. So we'll recap one and two, one was diversify your investments. Two, consider deferring Social Security, although it might not be correct for your particular situation. And then number three, recalibrate your budget. So what are we talking about as far as the budget goes?
[00:13:26] Speaker D: So when we sit down with, with our retirees, we try to anticipate future expenses.
So primarily health care, that's number one front and foremost of what happens if I get sick. You know, we all have health insurance. We understand the system. So anticipating maybe if you're going to be on Medicare, what your Medicare costs are going to be, or if you're still working, how much you're paying for your health care and how that's going to transition into retirement. Secondly, we look at, okay, well, let's think 15, 20, 30, hopefully 30, 40 years down the road. And what if I have a need for care?
So long term care, do I need assisted living? So, and you don't want to wait to have those conversations. You want to try to do that up front.
So that way you're not worried about what happens if I need long term care or if I have to have somebody come in my home. And we also try to help maximize your tax strategy. So are you paying unnecessary taxes during the year? Because if you have unnecessary taxes, that may raise your income, which may also raise your health care premium. So it all goes hand in hand with having that overall bird's eye view.
[00:14:39] Speaker C: It's all related. And that's what I think sets us apart and makes us so beneficial to our clients in ways that we can help, because we can kind of help with everything from a holistic approach. And being that we are a married couple, I feel like we have a unique perspective on not just an individual opinion, but what couples are looking for and taking care of each other in retirement.
[00:15:04] Speaker A: Right. You, you speak from experience on all of those things. So very, very good. Well, that's the last of our steps to fight inflation here. And it was recalibrate your budget. Now, if you would like to have some help either recalibrating your budget, considering deferring Social Security or diversifying your investments, all of the above. Get that safety, get that growth that you so need for your retirement years. Bradley and Madison will be glad to meet with you for a free consultation. And it's absolutely free again of any cost or any obligation. All right. Stick around. There is much more retirement your way just ahead.
[00:15:44] Speaker B: You're listening to Retirement your Way with Amerilife of Central Florida to schedule a no cost, no obligation consultation. Give the team a call at 386-977-9684 or visit planretirementyourway.com.
[00:16:18] Speaker D: Come on down.
[00:16:23] Speaker B: As we test your financial knowledge in Right or Wrong.
[00:16:32] Speaker A: It is time to put your financial knowledge to the test. So play along with us as Bradley, Madison and I play a game of right or wrong. I'm going to try and try and pull the wool over their eyes here and by saying a statement and I will present it as if it is just the honest 100% truth. But they're going to see right through me and tell me whether that statement is right or wrong. It'll have something to do with what we've been talking about on the show so far today. So are you guys ready?
[00:17:00] Speaker C: We're ready for it.
[00:17:00] Speaker A: Let's do it. I've got your game faces on.
[00:17:02] Speaker D: Ready?
[00:17:03] Speaker A: Okay.
So number one is this.
There is an investment option that offers protection from market volatility but still allows me to participate in the gains of an underlying stock market index. Right or wrong.
[00:17:18] Speaker D: That is right.
And there is an investment vehicle that will allow you to kind of kill two birds with one stone.
The main thing is safety. So I want to make sure that I don't lose anything that I've worked so hard to save. Secondly, I want to be rewarded for having my nest egg saved up. So there is an option where you can receive market like returns and have zero risk.
[00:17:43] Speaker A: Yeah, it's a great option out there that I don't think people necessarily even know exists. And you can also talk just a little bit about this particular investment vehicle as well and the fact that you can actually use it for an income stream in retirement that's going to last your entire retirement Also Right.
[00:18:02] Speaker C: So not only can it provide you with market like returns in zero risk, but you can actually use this product to create an income that you can never outlive for either just yourself or for you and your spouse.
[00:18:16] Speaker A: Yeah, a very useful thing, obviously for the rest of your life and potentially a way to find inflation if you, you know, with those market like gains credited into the account. And it's also, you know, the potential for increasing income and retirement as well with different types of these, these accounts. Okay, very good. So that one was right. So we're going to move on to number two now and see if I can fool you with this one. There is no product safer than a bank CD when it comes to protecting your money.
[00:18:47] Speaker C: That is wrong.
So as we previously mentioned, there are actually products that would be considered just as safe as a CD but perhaps would provide a higher return than a CD at a bank.
[00:19:01] Speaker D: And you guys may be familiar with the FDIC reserve of, or the protection from the FDIC rather of $250,000. And banks are only required to have a 10% liquidity for the accounts that they hold, whereas these other vehicles you can go into have a 100% reserve requirement. So no matter what day of the week, what the market's doing, you're, they are required to have you backed.
[00:19:27] Speaker A: Yeah, 100%. And you know, I mean, we saw a situation last, last year, year before it was, it was within the last year and a half probably where we actually saw a couple of banks go under because of a run on deposits and they didn't have the money on hand to meet those demands. So it could be, you know, a situation like that, you could go to the bank and ask for your money and they're like, sorry, we don't have it on hand. Later on the fdic, you know, protection could come in and all of that and take care of you and make you whole again at least up to $250,000. Right. But there are options out there with that, as you say, 100% reserve requirement. So Good, good on you for getting that one right. I can never fool them. I don't know. I don't know what it is. All right, number three here, your Social Security benefit can increase annually due to inflation.
[00:20:19] Speaker C: That is correct. So usually, but not always, Social Security benefits will receive a cost of living increase yearly.
[00:20:27] Speaker D: Right. So for example, in the year 2023, the inflation amount they gave everybody on Social Security was 3.2% increase.
And in 2022 that was 8.7% increase. So you do see that happen if the government does allow that?
[00:20:44] Speaker A: Yeah. Kind of a good news, bad news situation for, for retirees because you do get that increase and sizable increases over that two year period that you're just talking about.
But at the same time, that means that inflation has, has gone up as well. That same or similar amount, you know, you could say, because they index it to a particular reading of inflation which may or may not reflect actually what people are paying at the stores and at the gas station and all of that. But there is that built in kind of a buffer. Right. To help people deal with inflation from year to year.
[00:21:17] Speaker D: Right.
[00:21:18] Speaker A: Very good. All right, and number four here in right or wrong, this one, I, I know you're going to get right. I have confidence in you, or I know you're going to get correct. I should say not right because, you.
[00:21:29] Speaker C: Know, don't give us the answer.
[00:21:30] Speaker A: I don't want to throw you off since it's right or wrong.
But number four is this, it is too expensive to work with a financial professional and most people are better off just managing their own financial and retirement plans.
[00:21:44] Speaker D: That is wrong.
So, you know, throughout our career with the Mirror Life, we've seen that people that have help from financial professionals have a smoother ride. As far as the fees go, we don't charge any fees to help you. So at the end of the day, if you want to have that 5 o' clock summer retirement and really not worry about it, let us take over and help you out.
[00:22:07] Speaker A: Yeah. And that's got to be a big relief, I think, to a lot of people who have that misconception. Right. Who come to see you do that initial consultation, you know, by scanning the QR code. I'm doing my job. Scan the QR code, folks, or go to the website or call that phone number. But if you do that and you have that initial consultation, I'm kind of almost certain that a lot of people are going to, that's going to be one of the questions that they have. How much is this going to cost me? Right, right, right. Yeah. And so that's got to be a big relief for them when they're like, we actually don't charge a fee. And especially if people have, if they find themselves in a high fee sort of a situation where they're paying portfolio management fees and all of that, having a plan in place and not being charged some exorbitant fee on top of it.
[00:22:52] Speaker F: Right.
[00:22:52] Speaker C: We're not looking to add to it. So we're just trying to educate people on all their options.
[00:22:57] Speaker A: That's value for the money right there. You know, they say you get what you pay for, in this instance, you get a lot more than what you pay for.
Well, that is another great addition of right or wrong here on the show. So glad that you have been with us throughout the show here today. I'm Matt McClure here with Bradley and Madison Hardin and covered a lot of great territory today. We've. We've tested your financial knowledge a little bit on. On some different things, and we want to close out this show by really kind of just stressing. Let's say, Bradley, if there's one big takeaway from this episode where we've been talking about inflation, what would that takeaway be for you?
[00:23:34] Speaker D: I think a big takeaway is that even though you may feel the impacts of inflation at the grocery store and maybe the gas pumps, or maybe you feel as though you haven't saved quite enough for retirement, it's never too late to start, and there are ways to overcome that feeling of fear.
[00:23:50] Speaker A: Yeah. And, Madison, I know that you all help people battle inflation every. Every single day through the plans that you create for them and work with them in creating. And you also just love actually going in and sitting down with people for the first time to discover whatever their main concerns and issues are. Right. I mean, that. That initial consultation tells you a lot.
[00:24:12] Speaker C: Absolutely. And every individual and couple has a unique experience and expectation that they're looking for in their retirement. So we just invite everyone to reach out to us to get that initial meeting scheduled and just get a fresh set of eyes on their portfolio and the trajectory of their plan, and you might learn something new or find a way that we could help.
[00:24:34] Speaker A: Yeah, right.
[00:24:35] Speaker D: And even if you have somebody you're currently working with, it never hurts to get a second opinion. I know if I had something going on medically, I may want to branch out a little bit and just see some other opinion. And that's what we also like to provide for anybody who may already be working with somebody to have a fresh set of eyes. Take a look at that.
[00:24:53] Speaker A: Yeah, that's not. I find that that's never a bad thing. You know, I mean, if you. Even if you think that you are on the right track, if there's even just that little sliver of doubt there, have somebody else come in and look at your plan, or if you don't have a plan, obviously get one in place. That's kind of. I guess the overriding takeaway from every episode of the show is get A plan, get one that that's going to work for you no matter what. And if people, when they do reach out, when they do, you know, come to you guys, maybe they scan the QR code that's on the screen, call the number, maybe go to the website there and fill out the form. They request that initial consultation, kind of go through a little bit about what that process is like from there.
[00:25:37] Speaker D: So normally what we like to do, it's very informal. So we just sit down, we try to get to know you and exactly what you are looking for to make sure you are living retirement your way or that you're going to have retirement your way. And so the first appointment, you know, you ask questions, we ask questions, we try to get a base, a solid foundation of what it is your goals are. And from there we take that back to the office and we do some studying, we do some analysis, and we try to create a custom plan to meet those specific goals.
[00:26:10] Speaker A: One of my favorite things too, that I know in talking with you guys throughout this show and others and before we've gone on the air and all of that, is that you all really talk about getting to know people and getting to know their situation, as you just mentioned, Bradley, and even a lot of these consultations and even follow ups and that kind of thing will take place in people's homes. And it's really. You really do get to know people in their own environment, I think, where they feel most comfortable.
[00:26:39] Speaker C: Absolutely. And Amerilife really stresses that factor of getting face to face with people. You know, in 2024, we're in the age of technology and zoom and doing everything digitally, whereas there's nothing like good old face to face where we can really try to build that relationship with our clients. Because we want to be able to help people for years to come through all the different phases of life.
[00:27:04] Speaker A: Yeah. And you sort of get to know the kids and the dogs. Right.
And all of that.
[00:27:08] Speaker D: Yeah, sure, Right. And in Amerilife, since they were opened in 1971, the phrase that we like to use is belly to belly. You know, we want to be that, that represent, representative for you in your local community and you're not dealing with somebody over the phone or maybe from a call center and things like that. So we take pride in being able to meet with folks that live in our area.
[00:27:30] Speaker A: Yeah, I love that. Because even, you know, technology today, as you were mentioning, you can be sort of face to face with people, like through. But that's all you see is like from here to here. You know. And folks, if you would like that personal touch, if you would like to explore coming up with a plan for yourself and your retirement so you can have retirement your way, Bradley and Madison would love to start on a plan for you and work with you along in that process.
Well, Bradley, Madison, thank you both so much. Really appreciate your time, your insights, the knowledge that you've shared. Really do appreciate it very much.
[00:28:04] Speaker C: Thank you Matt.
[00:28:04] Speaker D: Yeah, thank you Matt. And we look forward to sitting with you again.
[00:28:07] Speaker A: Absolutely. We'll look forward to it as well and hopefully look forward to having you back with us on the next edition of Retirement yout Way with Amerilife of Central Florida.
[00:28:16] Speaker B: Thanks for joining us for Retirement your Way with Amerilife of Central Florida. Our goal is to bring clarity and confidence to your retirement journey. Remember, Bradley and Madison Hardin are here to help you create a personalized plan for the future you deserve. If you'd like to schedule a no cost, no obligation consultation, give the team a call at 386-977-9684 or visit planretirementyourway.com and don't forget to tune in next week, same time, same place for more strategies, insights and support to help you live retirement your way. Investment Advisory Services offer through Brookstone Capital Management, llc, a registered investment advisor. BCM and Amerilife are separate companies but are affiliated through Common Ownership Insurance. Products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents not affiliated with the United States Government. Bradley and Madison Hardin do not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended to predict future procedures 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.
