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The 2% Club - Joe Schmitz #6378 · Financial Survival Network

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  Speaker 1: You are listening to Carrie Lutz's Financial Survival Network, where
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  Speaker 2: Hey, welcome, you are listening to and watching the Financial
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  Speaker 2: Survival Network. I'm your host, Carrie Letz. Well, if you
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  Speaker 2: like me, you probably think about retiring quite a bit.
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  Speaker 2: I'm not quite ready to take the ultimate plunge, but
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  Speaker 2: if you're getting close, you should be thinking about it.
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  Speaker 2: And retirement expert Joe Schmidts is with us now. He's
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  Speaker 2: just written a book, Joe, your book, The two Percent Club?
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  Speaker 2: How do I join?
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  Speaker 3: Yeah? I mean it's it's a specific crowd. It's a
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  Speaker 3: niche crowd. Not every one can join it. Unfortunately, it's
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  Speaker 3: those with pensions and those with a million dollars are
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  Speaker 3: more safe. So I wrote a book about this concept
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  Speaker 3: of crowd that we specifically serve. I actually have a
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  Speaker 3: YouTube channel it's called Joe No's Retirement, and all we
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  Speaker 3: do is talk about this crowd of people and it
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  Speaker 3: has over one hundred and fifty thousand subscribers at this point,
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  Speaker 3: and we have millions of viewers from people all across
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  Speaker 3: the country. But this two percent club number comes from
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  Speaker 3: the fact that only less than twenty percent of people
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  Speaker 3: have a pension nowadays, so a lot less people have
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  Speaker 3: that guaranteed amount coming to them for the rest of
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  Speaker 3: their lives. And we know these people to be those
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  Speaker 3: that live a life of service, retired military, retired federal employees,
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  Speaker 3: retired state employees, you know, retired police officers, firefighters, and
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  Speaker 3: so these are people who are going to have that
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  Speaker 3: that livelihood, that pension coming to them every month for
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  Speaker 3: the rest of their life. Now that's one portion of
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  Speaker 3: the two percent club. The other portion is those who
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  Speaker 3: have a million dollars or more saved. And there's only
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  Speaker 3: less than ten percent of people in the entire country
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  Speaker 3: who have a million dollars or more saved in their
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  Speaker 3: investments for retirement. And so if you have it twenty
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  Speaker 3: if you have the twenty percent over here, the ten
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  Speaker 3: percent there, that's only two percent of the population that
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  Speaker 3: has both a high income and a high net worth
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  Speaker 3: throughout their retirement. So these people are going to have
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  Speaker 3: to pay a lot more in taxes is what we
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  Speaker 3: typically see, and they need a lot more advanced planning
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  Speaker 3: considering that they're in such a great situation, you know,
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  Speaker 3: compared to their peers there.
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  Speaker 2: Right, So yeah, I guess they're in the minority. And
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  Speaker 2: you know what, if you're not in the two percent club.
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  Speaker 3: Yeah, so if you're not a two percent club, you're
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  Speaker 3: you're planning for retirement is definitely going to be more
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  Speaker 3: difficult without that pension coming in every every month moving forward,
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  Speaker 3: it's going to allow you to it's going to be
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  Speaker 3: forcing you to plan more for retirement on your own.
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  Speaker 3: And if you go back many years, pensions were more common,
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  Speaker 3: more people had pensions, more companies offered tions, and the
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  Speaker 3: reason why is because people didn't live as long as
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  Speaker 3: they're living now. And so now that people are living
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  Speaker 3: a twenty plus or even a thirty plus year retirement,
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  Speaker 3: it's making these pension funds really hard to make sure
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  Speaker 3: they can be funded for a long period of time.
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  Speaker 3: So a lot of the companies nowadays have gone away
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  Speaker 3: from pensions, and that's why eighty percent of people do
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  Speaker 3: not have pensions anymore. So, yes, they're going to be
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  Speaker 3: responsible for those that income that they're going to have
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  Speaker 3: to generate in retirement. And that's again why we tell
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  Speaker 3: our clients all time with pensions, hey you're in a
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  Speaker 3: very blessed situation. Let's make sure we take care of this.
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  Speaker 3: Let's make sure we have more purpose for the money
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  Speaker 3: that we have, because now we can either spend more,
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  Speaker 3: gift more, or spend more. Typically, people in the two
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  Speaker 3: percent club, they're not worried about running out of money
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  Speaker 3: per se. They're more so worried about running out of life.
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  Speaker 3: Making sure they can do what they want, when they want,
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  Speaker 3: with who they want. It's what we call financial freedom,
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  Speaker 3: and so really making sure they can live that out
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  Speaker 3: to their fullest capability, knowing they've worked so hard for
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  Speaker 3: like of the same company for the last thirty or
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  Speaker 3: forty years.
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  Speaker 2: Yeah. Well, some of those government pensions do look a
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  Speaker 2: little shaky though. I wouldn't want to be an Illinois
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  Speaker 2: retiree with thirty years left to go, because you know
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  Speaker 2: at some point that system's going to croak.
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  Speaker 3: Yeah, I mean, it's definitely concerned people have with tensions,
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  Speaker 3: you know. Now, I will say with some of the
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  Speaker 3: federal pensions especially, you know, I don't really worry about
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  Speaker 3: those now, and I just more so worry for those
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  Speaker 3: who are younger aren't going to get as generous as pensions,
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  Speaker 3: that the calculations for them aren't going to be as
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  Speaker 3: generous as it used to be. Federal employees is a
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  Speaker 3: prime example. There used to be a system with them
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  Speaker 3: called the CSRS system. My aunt was actually she's a
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  Speaker 3: retired federal EMPLOYEEES. She's actually in that system. The pensions
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  Speaker 3: in the CSRS are incredible now, Like my mom, she
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  Speaker 3: retired as a FIRS employee and their pensions are still good,
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  Speaker 3: but they're not as generous as they were. And so
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  Speaker 3: it's just something to pay attention to for anyone out there,
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  Speaker 3: regardless where you're at, to definitely be aware how how
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  Speaker 3: can this pension function moving forward? Because it's just math
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  Speaker 3: at the end of the day. And for those at
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  Speaker 3: a private company, those are where we're typically seeing that
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  Speaker 3: reductions actually can't happen and have happened in the past.
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  Speaker 3: So really making sure you're aware of how that pension
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  Speaker 3: fund is doing, you know, what where are they at
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  Speaker 3: with it, Is it likely going to be paying out?
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  Speaker 3: If not, maybe a good reason to look at taking
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  Speaker 3: the lump sum option if that company offers that to
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  Speaker 3: take a lump sum pension option when you retire. We're
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  Speaker 3: seeing that become more popular nowadays for that reason, but
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  Speaker 3: also for many others. Right, if one spouse passes away first,
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  Speaker 3: then that pension may not pay on at all to
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  Speaker 3: that next spouse. So if you take a lump sum,
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  Speaker 3: now that money can go to the next generation, or
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  Speaker 3: you could use it, you know, during your lifetime and
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  Speaker 3: be able to spend more maybe in your go go
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  Speaker 3: years early on in your retirement. So lots of things
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  Speaker 3: to think about with those decisions.
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  Speaker 2: Right, Okay, So what's your average client look like, Joe?
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  Speaker 3: Yeah, So I wrote another book called The Midwestern Millionaire,
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  Speaker 3: And so this book is all about those who have
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  Speaker 3: Midwestern values. Now, we work with clients all across the country.
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  Speaker 3: You know, about eighty to ninety percent of our clients
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  Speaker 3: nowadays come to us from outside of this state of
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  Speaker 3: Ohio where we're from, just because our niche that we
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  Speaker 3: serve is more specific. So most of our clients have
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  Speaker 3: a million dollars or more saved, and they're just diligent,
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  Speaker 3: hard working, frugal people. And I just say they're fright
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  Speaker 3: the people I grew up around you know, I grew
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  Speaker 3: up in a small rural community caro Ohio. One traffic
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  Speaker 3: light sometimes it works, and so, you know, those are
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  Speaker 3: the people that we serve, and those people typically have pensions,
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  Speaker 3: they've been diligent savers. But the thing I say most
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  Speaker 3: about these people is they are the absolute worst spenders.
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  Speaker 3: They are savers and the worst spenders. So a lot
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  Speaker 3: of times with our clients, we're trying to wrestle them
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  Speaker 3: to do more with their wealth, whether that's giving more
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  Speaker 3: away to charities, gifting more to their loved ones, or
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  Speaker 3: maybe it means spending more on this what they've worked
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  Speaker 3: so hard for. So that's the general crowd that we
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  Speaker 3: work with. And when someone hears us talking about it,
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  Speaker 3: or if they read the first twenty page of my
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  Speaker 3: Midwestern Millionaire book, they can pretty much define that that's me.
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  Speaker 3: That's me. That's me. And I actually just did a
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  Speaker 3: YouTube video that had one hundred things that these Midwestern
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  Speaker 3: millionaires have done to get to where they are. So
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  Speaker 3: it's a really fun story to share. Just what have
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  Speaker 3: they done, how hard have they worked? What are they
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  Speaker 3: sacrificed to get to this place of that financial freedom.
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  Speaker 3: We've been talking about.
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  Speaker 2: I like it. I like it. It sounds good. So
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  Speaker 2: how does one contact you? How do you get the book?
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  Speaker 3: Yeah, so if they go to our website Peak Retirement
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  Speaker 3: Planning dot com, we will send that book out to them.
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  Speaker 3: They can request a digital copy or a physical copy
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  Speaker 3: if they want us to mail that to them. We
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  Speaker 3: wrote the books to try to get in as many
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  Speaker 3: hands as possible, and so it gives people a really
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  Speaker 3: good resource as they plan for retirement. We actually add
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  Speaker 3: in there what we call our retirement Toolkit in there too,
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  Speaker 3: so I get featured in Kipling or I write two
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  Speaker 3: articles a month for them. So we've included some of
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  Speaker 3: the more popular Kiplinger articles I've written, and also as
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  Speaker 3: long with the book and some other resources as they
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  Speaker 3: plan for retirement, so hopefully can help that they make
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  Speaker 3: the next stage. If they've got a pension, definitely requests
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  Speaker 3: a two percent club. If they have a million dollars
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  Speaker 3: or more with no pension, then that's where that Midwestern
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  Speaker 3: Millionaire Books is going to be a great one. And
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  Speaker 3: I wrote another book, Card I Hate Taxes is actually
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  Speaker 3: over my shoulder right now, and that's one of my
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  Speaker 3: favorite books I've written, and for those who hate taxes
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  Speaker 3: like myself, then this is a great book to find
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  Speaker 3: some tax planning strategies as people are planning for their retirement.
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  Speaker 2: All right, excellent, So just give us your website again.
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  Speaker 3: Yeah, so it's Peak Retirement Planning dot com. That's Peak
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  Speaker 3: and then Retirement Planning dot com. If they look us
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  Speaker 3: up there, look up my name, Joe Schmidt, so be
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  Speaker 3: able to find some resources there to make sure they're
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  Speaker 3: planning the right direction.
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  Speaker 2: And it sounds like the book is entertaining reading and
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  Speaker 2: like many of these retirement books which are very dry,
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  Speaker 2: and we really appreciate that. If you've got a question
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  Speaker 2: for Joe myself, shoot me an email klfcarrieluts dot com.
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  Speaker 3: Thanks for coming on, Joe, Yeah, thanks for having us.
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  Speaker 1: Thanks for listening to Carrie Letz's Financial Survival Network, your
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  Speaker 1: Financial Survival Network dot com. Financial Survival Network more than
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