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The maiden voyage into retirement · The Retirement Blueprint

• When it comes to investing, retirement taxes, healthcare and estate planning, the decisions you make today can greatly affect the quality of life for you and your loved ones tomorrow. What you need is straight and unbiased information on the most important issues you'll face when planning for your retirement and financial future. Good news, you found the retirement blueprint with Grant Door House. Grant is the founder of Door House retirement services. And he's been guiding people financially and into retirement for nearly 20 years. So get ready for an hour of the most comprehensive financial information on the radio. It's time for the retirement blueprint. And now here are your hosts grant Door House and Jeff Shea. Thank you so much. Welcome to the retirement blueprint, the show that gives you the straight talk and honest standards you need to work towards your wealth management and retirement goals through Smart Investing and careful planning. On today's show, we're gonna be talking to you about who we are, what this show is all about and how this may be a different kind of financial talk show than you've ever heard before. We'll also get your thinking about how much it cost to be you in retirement, then we'll be talking about the right time to file for Social Security. And finally, we're going to be discussing strategies to avoid running out of money in retirement. My name is Jeff shade. And as always, I'm just here to ask the questions. But two words of wisdom and self advice come from Grant Dora how Founder and WEalth Advisor of Jorhat retirement services right here in Omaha grant, how you doing today? Doing great, Jeff, thanks. Glad to hear that grant. I hope our listeners are doing well today, too. This is going to be our inaugural show. I call it the maiden voyage into retirement. So I'm really, really excited about the debut of this show, because we've got some great shows lined up for the folks here to help them get to retirement and through retirement. Have you ever done a radio show like this before grant, I've never done a radio show like this, but I have done a podcast in the past for business owners here in Omaha, but I'm really looking forward with this one to talk to the people of Omaha every single week. Yeah, because there's so many questions out there. People have questions. And it's really hard for them to find straight talk and honest answers, as I say about their financial concerns. So this shows goal is going to be to do just that. And as I said, we're basically going to try to touch on most everything that people have concerns about when it comes to managing their wealth and getting into retirement. But grant before we get on with the show today, I want to introduce you to the people and ask you a little bit about yourself. So tell us you know where you're from and where you went to college and just all that sort of thing. Yeah, I grew up in northwest Iowa, very small town north of Sioux City. Actually, I went to a small private Christian College up in Orange City, I went Northwestern college, that's where I met my my wonderful wife. We've been married for just over 18 years now. And after that we actually moved to Sioux Falls for about 10 years. And then business opportunities actually brought me here to Omaha about eight years ago. And we absolutely love it. It was the best move that we could have made the never could have imagined leaving Sioux Falls. But then once we're here, I can't actually imagine leaving Omaha, this is home. This is where we're supposed to be. I didn't have any ties to Nebraska. It was strictly a business opportunity that brought us here. And it's been a wonderful community, not only for business, but more importantly for our family for our kids and my wife. They're all thriving here. And it's it's been wonderful being here. Yeah, Omaha is one of the great cities in the country. Of course, I know it from the College World Series. But also there are so many other great things about living in what I call the Midwest and the breadbasket of the United States. Why did you want to get into financial services grant? You know, that's an interesting story. When I got out of college, my intention was to go into law enforcement. I've always been a numbers guy, that's my thing. I really was angling, I wanted to go more towards the FBI type work and white collar crime type stuff. That was what I wanted to angle for. But I don't know if you're familiar with the testing process, it's pretty tedious. And you have to be flexible, I actually, I was looking for different jobs to be able to help me get to that point in, I answered a CareerBuilder ad back then, and it was selling insurance. And it was door to door sales, but it was flexible hours. And so it'd be able to I'd be able to do my testing when I needed to without trying to navigate getting paid time off and stuff like that. So I started working in insurance and working with supplemental health. And then that led me into Medicare. And then I'm starting to deal with seniors more and they started asking me questions about how I could help them with long term care. How can we have an income in retirement? How can we have something that's not all stock market based? How can you navigate with that, and that actually coincided with the time that my wife and I got married and I kind of wanted to see her during the evening hours as well and I didn't really want to be knocking doors at night. So working with those that were in retirement or nearing retirement came very natural and it was pretty organic that the clientele actually kind of pushed me right into that and it was a big progression to get to this point to where we do full financial planning and retirement planning for our clients. So You've got a talent and a skill for numbers, and then you put that to use helping people. And a note is so so very valuable and so rewarding when you're able to do that your other skill was on the baseball diamond, you and I have talked about that before, both of us are, you know, veterans of trying to play that particular game. So that's one of the things we're gonna be talking about during the show once in a while, is when we make analogies Many times we'll talk about the baseball analogy, why sometimes, you know, if you try to hit a homerun all the time, you end up striking out a lot, too. So anyway, we're gonna try to make it understandable for all the people out there, as I said, to answer questions to help you get to retirement through retirement, we want you to have retirement, which not only survive, but you also thrive. Tell us a little bit more about the practice there at door health financial grant, I mean, the range of products and services that you provide. Yeah, it's actually it's very comprehensive. A lot of times people ask me that when I've done dinner seminars in the past, you know, how can you talk about taxes? How can you actually deal in these areas, we do a lot of tax planning for clients. But we also do income planning, and we do care planning, and we do estate, we help people with their estate planning. And we have a unique set of licensing that allows us to do that where we we have the series 65 license, where that's the fiduciary responsibility that everything that we do has to be done with an intense level of care, it can't just be done just to move money, I know of a lot of people that I've run across that they've dealt with someone in the past where it seems like they're pushing a particular product, it doesn't matter if it's an annuity, or a mutual fund, or a stock or some portfolio, they're pushing that one thing in there trying to fit every single person into that one thing and that doesn't work right, then you're going to find out that things aren't gonna work? Well, it's just like I've said this many times, when I hear people using annuities, or mutual funds or stocks, or it doesn't matter what it is, in the wrong way, it's much like if I tried to pull my camper with my wife's explorer, it's not gonna work, it might work for a little bit. But for the long term, that's not appropriate. So our products and services are very comprehensive with using the stock market in a responsible way. But we also, we do have the insurance license as well, where we can use that to help when those insurance products are needed as well, whether it be annuities or life insurance. And I mean, that's a comprehensive lineup between our affiliations between Carson wealth, as well as financial independence group. And to make an analogy, granted, sort of like building a house, you can't build a house with one tool, you need a whole toolbox of tools. And the same goes for retirement planning, you can't build a retirement plan, or at least a comprehensive retirement plan with just one product. It does involve an entire toolbox of tools, we're talking with Grant door out here of door health financial services, our show is called the retirement blueprint. We're glad you could join us again this week, Grant, I would imagine that you have dealt with many, many clients over the past almost 20 years of doing this, tell me about the average client, when they come into you, what are they looking for help with? Yeah, the average client that comes in, they come in with very similar concerns, whether they're just retired or retired for even five or 10 years, or someone that's maybe within five years of retirement, really, that's the range that we see most often. But they come in with certain concerns around risk management, for one and two, we find out that they really don't have a defined income plan, defined income plan, and then tax planning, if you get those actually working in sync, it actually makes the investment part a lot easier to figure out where we need to put these assets so that that works cohesively for the long term. And I find out that most of the time I have advisors that are telling people Yeah, we're going to make enough money that you're going to be fine. But then we ignore what's going to be very, very key later in life. And that's health care. That's gonna be one of the biggest expenses that people have. And they it's just not planned for, unfortunately. Yeah, grant. And I don't know that a lot of people know that, that if you are, let's say, age 65, you're relatively healthy right now you have a very good chance of living to, you know, 8590 95 years old today with modern medicine. You know, longevity is a big risk in retirement not running out of money. That is one of the biggest concerns that I think that people really have. So basically, if I'm hearing you correctly, Grant, what you're saying is that you start with an income plan first, but you've got to find out who people are, what their lifestyle is all about in order to create an income plan, and then you do an investment plan. So when people first come into your office and sit down with you, as you said, you're not selling them an annuity or one particular product, do you really find out who the people are, I mean, sort of a discovery process, who they are and what their life is really all about. Yeah, that's great question there. Jeff. The first time I meet with someone, I actually don't even I don't go into depth even into what they currently have. I try and figure out who they are. So that that helps me see into what type of lifestyle they're wanting to live throughout retirement, what type of risk tolerance they're going to have. Do they want to travel what are we looking at and then I give them a very pointed rundown of it exactly what they can expect. We don't move money on the first or even second appointment that someone comes into the office in that first appointment, we tell them, this is exactly how we are going to have the client engagement process, we're in the discovery phase in that first appointment, for sure, and even the second appointment, but then we figure out what they have, and see if there's any holes in what they have. If they have something that's actually working really, really well, we're not going to move money on that if they have an advisor that's doing really, really well for them, we're going to tell them because we want more good advisors in Omaha, I can't handle everyone in Omaha. And I understand that. So if they have someone that's doing a good job, we're going to let them stay there. And we're going to encourage them with that. But then if there are holes that they want to plug that so to speak, that they want to fix, we will go into a process where we will give them the recommendations, and then we will move forward by building their fiscal house with certain assets that have different principal protection, and then certain alternatives that we'll use, and then how are we going to invest in the market, that's exactly what people are going to see in the first meeting that they come in and meet with me. And grant, you mentioned something earlier in the program. And that is being held to the fiduciary standard, I want to expand on that a little bit being held to the fiduciary standard means that legally, you have to put your client's interests ahead of yours, you're not in this just to sell something to make a commission, you have to look at what's best for the clients. And that is regardless of whether or not you make money on this or not. You're legally required to do this. But I also know you a little bit and I would say that you're morally required to put your client's interests ahead of yours to right now. Absolutely, absolutely. That doesn't go without an intense level of care. Like I said before, that's why we don't encourage people to move money on the first appointment. There's a lot of times I meet with people that come to me, we might do a dinner seminar and they come into my office and we sit with them for over an hour and we make sure that we are very diligent and figuring out what we need to do moving forward because there's too many times that in the first appointment or even the second appointment that 30 minutes, 45 minutes into it, the advisor or the agent is putting a piece of paper in front of them to sign already. And that's just not appropriate. I can't do that that's not even possible to make sure that I know enough or that they know enough about me before we get into the details and make sure that we don't miss something that we're going to regret later on. You're listening to the retirement blueprint with Grant door out of door health financial services right here in Omaha, we've been talking about grants background a little bit about what this radio show is all about. Now, if you're looking for a show that's going to sell you something I would say Tune Up or Down dial someplace because this is not it. Our goal here is to educate and inform you every week so that you have the information that you need to make the best decision for you. If you'd like to get in and sit down and talk to grant and maybe ask your particular questions and get the answers that you need to help you in your retirement journey we invite you to call 402-281-0750 That's 402-281-0750 Now when you call you're gonna get a friendly voice more than likely Lisa on the other end of the line who gathered some basic information then set you up with a conversation with grant to create a path towards a successful retirement. Now remember, this consultation is not going to cost you a dime but it could uncover some blind spots that would address may help improve your quality of life that could last as long as 30 plus years in retirement once again that number to call 402-281-0750 402-281-0750 To request your complimentary consultation or you can do it online at Door House retirement services.com That's Door House spelled Dr. h o u t retirement services.com. One more strategies to support the quality of life you want for 30 plus years stick around. There's more retirement blueprint with grantor out in just a moment. Ready to climb a mountain of financial know how good because it's time for more retirement blueprints with your financial Sherpas grant Dora and Jeff shade Welcome back to the retirement blueprint with Grant door hop. My name is Jeff shade. Glad you could join us on our inaugural voyage here. Once again, if you want more information about anything that we have spoken about or you'd like to get in and get your no cost no obligation, no judgment financial plan with Grant call 402-281-0750. That's 402-281-0750 or you can request it online at Door House retirement services.com grant in this segment, I want to talk about what it costs to be you in retirement. First of all, let's define what I mean by what it costs to be you in capital letters in retirement. Yeah, everyone's going to be different the way that they want their plan to look and what they want to do. I just was speaking with the lady in my office yesterday and the concerns that she brought up on the surface. If you've met with her the first time like Man, she's got her stuff together. I mean, she's going to have a great pension. She's going to have a good social security. She's got more than seven figures of wealth, but there was a call Couple of things that she said that was completely unique to everyone else that I that I met with this week, she had a concern over the potential for her children being divorced. And then what happens to those assets? If they do get divorced, she wants to make sure it goes to her kids and her grandkids and it doesn't want to split it up between the spouses. And well, that brings on a whole new concern, because all of her money was qualified, how are we going to get that money where she wants it to happen? And how does she want to live throughout the rest of her life, everyone is going to have little intricacies about how much travel they want to do, how much charitable work they want to do, how much money do they want to give to charities through retirement or at the end of life? Or do we want to fund kids or grandkids College? Do we want to skip over kids, all of those things are very, very unique to every person that comes in. So that's part of the discovery process is finding out who you really are. I mean, not what you did for a living, you know, you're a financial planner and accountant, you're a plumber, you're a doctor, that sort of thing. But when you put all those things aside, who are you in retirement, finding your purpose in retirement, because after all, when you get retired, you know, you're all excited, you're going well, I'm gonna clean out all the clauses, the garage is needed be painted for a while and I'm gonna get the lawn mowed. Namita, landscaping, all that stuff that's going to take a little while to do that. But once that's done, then you look around and go, now what, there's only so much golf, you can play and then you're going, Wow, now I'm done with all this stuff. But maybe I do want to take some trips and planning for retirement and planning for trips when you're going all around the world versus Hey, I just want to get a little rowboat and go out in the lake and Fisher you know, with nightcrawlers? That's a very different income plan, isn't it? Oh, yeah, very much. Everyone's going to be drastically different there and how they want to get through retirement just on? Do we want to sit and watch grass grow? Well, that's probably the best thing to do. We got to do something, whether it's fishing or golfing or my brother, he's going to be retiring next year. And he's been a police officer for 30 years or so. And he loves mowing and he loves golf. So he is he wants to, he wants to go to a golf course. And he wants to mow the grass. And then he wants to golf all afternoon. Okay. And that's great for him. Yeah, right. Right. But I have a lot of clients that that would drive them nuts. So yeah, so getting their purpose is absolutely key, you know, whether it be charity work, because they have all the money that they need, but they need something to do, but they're really passionate about whatever organization in town, well, let's put a plan together to make sure that you're getting not only financially healthy throughout retirement, but you're staying physically healthy. And that's part of that's being active grad. Is it a misconception that when you get into retirement that you're going to spend much less than you did when you were working? Oh, it's a complete misconception I have people come in all the time. I'm not joking, they will be making over $100,000. And I'll ask them what type of retirement income need they think they have. And they'll tell me 60,000. And I get a little puzzled at that point. Because then we look at what's happening in their checking account, and they're staying pretty flush on a month to month basis. So I'm asking them, let's be honest with ourselves, if you're making 100,000, but you're not actually increasing your checking account balance on a monthly basis. How do we think that we're going to make 40,000 less in retirement and live the way we want to live? Yeah, driving to work and eating out. And you know, we're close with it doesn't cost $40,000 A year? Yep. It's absolutely amazing. Because they think that they're going to be able to do much less, because they're going to be at home much more. And that may be true, but what you got to realize is those trips that you're going to take and we want to see our kids and our grandkids and we're gonna go out to dinner with our kids. And well, then Mom and Dad are gonna want to pay and they're gonna want to treat the kids sure that your if you're making 100,000, you need to figure it out on making 100,000 in retirement, but that's not it, you have to factor in inflation. And that gets ignored all too often inflation can completely destroy a retirement if it's not planned for. And grant there is a statistic that shows that most people spend the most money on Saturday, but when you're retired every day is Saturday. So you got to figure that, you know, if it's 100 grand when you're working at everyday, Saturday, maybe you better plan on about $110,000. So coming up with what you want to do in retirement and funding that retirement is very, very important. Another misconception I think is that well, when I get into retirement, I'm gonna pay way, way less in taxes. Is that necessarily true? Absolutely not. It could be but the majority of the time, what I found is that people were good savers. They go to work and they put their head down and they take the contribution into the 401k. They get the match from their employer and and they defer all of that tax and they build up this big nest egg just like the lady I was talking about from yesterday. She built up all this money inside of her tsp and and now she's got a million and a half dollars sitting there. Well how are we going to get this out in a tax efficient way? Because if we don't figure on taxes, then what we have is we could be in collecting Social Security, we could be impacting how much Medicare premium we have. And who knows what's going to happen after 2026? When the taxes change? Where is it gonna go more? We don't know, right? So we have to figure on all of these things. If we're going to have a reliable income plan and a reliable plan for the rest of our life, we have to figure on way more than what people are thinking. They think that maybe we're going to be in a lower tax bracket when we're in retirement. Well, that depends, have you saved any money? And if you've saved any money, that and it's deferred, how do we know that's going to be true when by some strokes of pens in Washington, they can completely change what our taxes are in a couple of years. And some people I mean, coming into these consultations with you get a reality check. And that's just what they need. I mean, sticking your head in the sand, like an ostrich is not the way to go. When it comes to planning for retirement that could last 30 plus years. I want to talk about that how long you're gonna live. I mean, planning for a 30 plus year retirement is a lot different than planning for a 15 year retirement when you do these retirement plans. Grant, how long do you run them out? For? I always run them out to at least 100. Wow. Always, because we have to plan for where we could live to because we can't run out of money. Because we think I've had plenty of people come in and say well, hey, you know, my parents passed away. My dad died at 59. My mom passed away at 80. So I think I'm only good until 78. Well, okay, how do we know? Like, you're not exactly them? You could run to 90? We don't know, right? The beauty is if we plan for someone to get to 100, and they're unfortunately gone at 78, like one of their parents was, well, that's fine. We're not going to hurt anything by having an extra bit of nest egg there. And then some people say, Well, I don't need to leave all that money to my kids. That's okay. I guarantee you there's a church or a charity in Omaha that would be happy to talk to you about what to do with that money that you were responsible with in retirement. Yeah. And I think some people have the goal, as you said, to leave money to kids and other people say one last check to bounce, it just depends upon what your priorities are. and estate planning, of course, very, very important aspect of retirement planning. And of course, in future shows, we're going to dive into that more. Let's talk about the three stages of retirement I call them the Go Go years, the slow go years, and then the no go years, actually funding those is a very different situation. I would imagine you need more in the beginning, right? Absolutely. Because we're going to see if someone retires at 65, my dad, he moved to town from the farm, when he was 65 years old, they're going all over the place, they were pulling their camper to Indiana to watch my niece actually running track meats, they were going literally all over the place. And then they pulled their camper down to Arizona. And you know, as they aged, you know, in their mid 70s, they still pull the camper down there. But now they're 82 and 80. And now we have a situation where that's been saying it for a few years, but he's not pulling the camper anymore down there. And he's been saying maybe I'm not even gonna go to Arizona this year. Now, I've heard that for the last 10 years, Jeff, so I don't quite believe in this year yet. But he is renting a part model now because it's just it's a little too much. And so so they're going from the active go go to now they're a little bit more slow go. And hopefully we can fend off the no go years, which is is typically where we're going to see that, hey, we have to be at home, we can't really go to Arizona. And that's what I've been encouraging my dad while you can do it, yeah, it might be a little bit slower. But do it until you can't enjoy your retirement. We've planned for this, we have the money to pay for these things. Let's enjoy this while we can. But we have to plan in those early years. For additional trips, I have plenty of clients that love to do these Viking Cruises in Europe and huge expenses, let's do these things while we have the health to do it. And let's plan for it. So we make sure we have enough money later on as well. So front loading retirement income very, very important for those go go years. And then of course you have the slow go years and then sort of that U shaped curve your funding for the retirement goes up and the no go years because of course you have health care expenses, not to mention the price of long term care and assisted living in a nursing home. I mean, we'll go into that later programs. But I mean, it could cost 910 grand a month just to be in a nursing home. It just all depends. We're talking with Grant door out here at door out retirement services about how much it costs to be you in retirement. The final one here I want to talk about in this segment grant is whether or not you're going to be working part time in retirement. Some people just miss going to a job. It's a place where they have a lot of social interaction. And as I said, you know they've been away from their spouse for I don't know, 3040 years working and then they get home the spouse is really not that happy about them being around all the time because they've gotten used to just seeing them part time so they go back to work and retirement. Let's talk a little bit about the ramifications of doing such let's say you're a greeter at Ace Hardware or something like that. What does that mean in terms of tax planning and social security? So if you're going to work part time, you have to consider how much income you We're going to be getting especially if it's prior to your full retirement age, which typically most people that are coming in right now their full retirement age is going to be 67 for Social Security, where it doesn't matter how much you make, but if you are 62, and you retire and you know hey, you know what I'm getting a little antsy, I want to go out and, and work, you have to be mindful of that income limitation, if you go over that income limitation that can be a negatively impacting your Social Security. And from a tax perspective, that's going to lump up on top of all your distributions from your IRAs, if you have those, and then we could be impacting provisional income, how much tax are we paying on Social Security, and then if someone still wants to go out, if they want to be most tax efficient in those ways, well, hey, I will still want to go do some stuff, but I don't want to go to this job anymore, I want to do something else, well, then we will encourage them to again, go find these charities that they'd be passionate about and that they want to be partnering with, that's going to help them fill those hours. Because really, in retirement, we have 2600 hours or so that we're actually going to open up that we have to fill and if we don't give consideration to that it can be a different negative impact. And grant, you were talking about working before full retirement age and Social Security and full retirement age for everybody is between 66 and 67. If you haven't met that grant, what is the figure that you can make before you have to give back $1? For every $2 that you earn? Yeah. So prior to your full retirement age, the income limitation is 21,002 40. And, and that's, that's a federal number that you I mean, anyone can find that, but you got to figure it out, like make sure that you're not going over that because you don't want to negatively impact the Social Security. And if you're going to make more than that, well, then you have to have a discussion with a financial professional about well, does it make sense to start taking my Social Security? If I'm still gonna be making 30 or $40,000 per year? The likelihood is it probably won't. But I don't know your situation. So it everyone's going to be different in what their numbers are, because how are they actually allocated in their investments from a tax deferred or tax free standpoint that can all impact whether or not it would make sense to take Social Security at that younger age if they're going to be making more than that? 21,000 To 40 grand if our listeners have questions about how much it cost to be you in retirement, we invite them to call us and request your complimentary retirement review. Just a friendly conversation with Grant it'll cover a wide range of topics based on your individual situation so that you can proactively adjust your financial plan to address your retirement journey and any blind spots may hinder you from reaching your retirement goals. Again, there's no cost there is no obligation. We do ask though that you have at least $250,000 of investable assets, that number to call 402 to 810 750. That's 402-281-0750 This one call could make all the difference. You can also request your complimentary plan online at Door House retirement services.com. That's Dr. H. o u t retirement services.com. If you're just joining us, this is the retirement blueprint with Grant Door House. I'm Jeff shade, and we've just finished discussing how much it cost to be you in retirement. If you want to hear this show again, don't worry. We're also a podcast just go to wherever you get your podcast and search for the retirement roadmap with Grant dollhouse. You're gonna get this show and all of our past shows so that you can stay on top of your wealth and your journey to a successful retirement. One more talk about sustaining your wealth and thriving and a retirement that could last 30 plus years. Stay tuned for more retirement blueprint with grantor out after this. We're back with more strategies for a successful retirement. This is the retirement blueprint. Once again, here's grantor out and Jeff shade. Welcome back to the retirement blueprint with Grant Dori how we're so happy to be with you here on Newstalk 12 90k O I L coil as they call it, we're here for you every week with information that can help you get to and through retirement. Our goal is for you to have retirement which you not only survive, but you also thrive once again questions if you want to get in, sit down with Grant and ask your questions that number to call us. 402-281-0750 that's 402-281-0750 for your no cost, no obligation retirement plan with grant you could also request it online at Door House retirement services.com. That's Door House retirement services.com. Grant, I have heard that if you want the maximum Social Security benefit, you should take it at age 70. What do you think about that? Yeah, if you want to ignore life expectancy, current health, family history, desired legacy all of these other factors. Sure. Yeah, that's the way to go. Sure. There's a lot more to it than just say, Yeah, take it at 17. That's the best route. Yeah, I mean, Social Security optimization. This is not an isolated advantage. You said there's so many things that go into it. And again, that's a misconception. I think that people say well, I'll wait until age 70 to take Social Security because that's when I'm going to get the most money but not necessarily. So it occurs to me and I'm not like you grant, I'm not a math genius here, but at least I have some sort of a mastery of basic arithmetic. But if you take it at 70 versus 62, you're giving up eight years of paychecks. And you really you got to sort of figure that into it as well, don't you? Absolutely. And that's the whole reason that we have an income plan is to factor these things in. And actually, this is all just math problems. Right? All we're doing, we have a problem. And we just have to solve it for what makes the most sense. What is the most responsible? Is it to take it at 62? I don't know depends on what you're going to be doing between 62 and 70. And what your assets are, I mean, if we don't take it at 62 until 70, what kind of impact is that going to have on my retirement portfolio? How are we going to factor in what market fluctuations are going to be between that timeframe? How can we make this more reliable, and all of those things factor in it's not just blanket statement 67. It's not blanket statement 70. It's not blanket statement. 62. We've had people and I know it might sound odd. But we've had people that we've actually said, hey, you need to take your Social Security at 64, it made the most sense for them. And it's an off the wall number that no one's really going to come up with until we know exactly what their whole situation is. And we solve the math problem. And grad he talked about taking it at age 62. And we touched on this in the last segment of our program here. But if you take it at 62, and you're still working, we'll repeat this for people just joined us, there's a limit to the amount of money that you can make until you turn full retirement age. Can you once again repeat that for folks? Yeah, if you're gonna make more than $21,240, you need to reconsider, you need to reconsider whether or not you should take your Social Security prior to 67. I'm not saying that you shouldn't take it, but you need to reconsider it and make sure that you have all of the factors figured in all of what you're going to be giving up in terms of your Social Security. And if someone takes it at age 62, the benefits are reduced. And that's really for the entire life of taking Social Security. How much are they reduced? Yeah, actually, if you look at age 62, versus someone that has age 67. Right now, it's about a 30% reduction from that full retirement age benefit. Now, you're still going to get your increases like we had this past year, like we have almost every year, it's not guaranteed that it's going to go up. But we're going to a lot of times have that increase, you're still going to get it but it's going to be off of a much smaller number. And oddly enough, I think most people take Social Security at age 62. That is the figure that I have seen printed in the past. But I don't think that that's the optimum age for most of the people listening to us today to take Social Security, as you said, it does depend a great deal. Now, if you do take Social Security earlier, is that going to affect spousal benefits? Or let's say survivors benefits, too? Yeah, absolutely. It absolutely can. It just depends on when they're going to start taking their benefits, are they going to be taking it off of the spouses benefits? Are they going to be taking it off of their own benefits, that's the beauty of the affiliations that I have is, there's a lot of off the wall situations that we run into where we have social security experts, this is all they do for our organization, this is the only thing that they are responsible for is making sure that they know every little thing about social security. So if there's something that I'm like, oh, man, I've never heard that one before. I've been doing this quite a while but I've never heard I have the exact resource of where I need to go in order to actually figure out okay, does this actually makes sense? Or is there something that I missing? You know, because there's a lot of times that we have divorced widow benefits that someone can take at an earlier age? Should they take it? Does that make sense? Or should they take their own all of those things you have to figure in, and that can be a tangled web that we weave, and a lot of people think that there are really only three decisions about Social Security when to take at 60 to full retirement age and 70. But in reality, are there literally hundreds of different ways or hundreds of different versions of when you should take Social Security? Absolutely. And you have to figure in Okay, does someone have 500,000? Do they have one and a half million dollars? Is it tax deferred? Is it tax free? Do they have a bunch of rental property? Are they selling a business where if they sell this business, it's going to give me income from 62 to 65. But then after that, I'm not going to have any income. So it doesn't make sense to take those two security at 65. In that scenario, you have to factor all of these things in I mean, I could probably come up with 100 different scenarios as we talk here. But we don't have time for that. Right. And one of the things that you do there adore how Retirement Services is run a Social Security optimization or maximization program, as you said, there are many people that are involved in deciding when's the right time for you to take Social Security. And as you said, there are hundreds of different variations. You've just got to find the right one for you. Let's say that someone does take Social Security early, let's say for the sake of argument, they're tired of working, I'm going to get out of this place and I'm going to take it at age 62. They're done working their home, they're taking it age 62. Six months later, their old job calls up and says grant I want you to come back and work for us not full time but as a consultant and I tell you, we're gonna pay you double what you were earning when you were a full time employee ie How does that work? work. I mean, can you stop Social Security and start it? And you know, how does it work? What can you do? Yeah, that's a great question, Jeff. We've actually seen that before. I just had a client recently that she, it was last year, it was probably about eight, nine months ago, she was retired, she started taking her Social Security. She was 62 years old. And she actually got an opportunity to go into a different job where she could make six figures. And she thought that it was going to work out really, really well. So we ended up stopping her social security because you can do that within a year of taking it. And lo and behold, listen to this, Jeff, the unthinkable happened, she found out that she still didn't like managing people. Surprise, surprise, months later, well, she's no longer getting that income. And so at 63, then we can turn on her social security and it turned out to be the way to go for her. But yeah, you have some freedom, but not a ton. If you get past a year, you're kind of that's the bed that you've made, you're gonna you're gonna lay in it, then we're talking with Grant door out of Door House retirement services, our program is called the retirement blueprint. Glad you could join us here on Newstalk 12 90k O I L. And of course talking about Social Security. A lot of people do not realize granted Social Security income can also be taxed, right. Yeah, it depends on how you're allocated from a tax perspective and your other assets, do you have a bunch of tax deferred wealth, where you're going to have to be taking out 20 3040 $50,000 per year, and that's taxable that filters into your provisional income. And a lot of people think, you know, hey, I'm going to, I'm going to avoid that by going into municipal bonds, I'm gonna go, I'm gonna go get some tax exempt bonds, and they don't know that that actually can factor into their provisional income as well. And it could negatively impact their social security. So I mean, depending on how much income you have outside of your social security, that you could pay taxes on half of it, or you could pay taxes on up to 85% of it. Or you could pay taxes on none of your Social Security just depending on how you are allocated. If you haven't optimized your social security while considering your entire plan, then listen up because this is for you, Grant and I invite you to call us so you can schedule a 30 minute consultation with an advisor so that you can optimize your overall retirement income and not just social security. All you've got to do is call right now. 402-281-0750 That's 402-281-0750 You must have at least $250,000 of investable assets to qualify for those who call and schedule a time to chat with our advisors right now will also be sent a hard copy of our book modern retirement strategies a definitive guide for retiring well at no cost. We want to help you succeed. Just imagine if you're able to optimize your Social Security and overall retirement income. They'll not only help you compare your different options and strategies so you can pick what's right for you. But they'll also take a look at the overall lifestyle plan to help ensure that it's set up to support your quality of life and retirement that could last 30 plus years. Again, it's up to you call right now. 402-281-0750 That decision is yours to make that's 402-281-0750 or visit us online at Door House retirement services.com. One more straight talk and honest answers about your wealth management and retirement journey. Stay with us there's more retirement blueprint with grantor out here. You can't start a trip you've never taken without a plan. And you can't start your retirement journey without a comprehensive plan to get there safely to request your no cost no obligation your hard retirement roadmap, call 402-281-0750 or request it online at door Howard retirement services.com. Now back to more of retirement blueprint with grantor out and Jeff shade. Welcome back to our show the retirement blueprint with Grant Door House each and every week here on 12 90k. O I L or coil radio right here in Omaha. Certainly glad you decided to join us this week. Once again, if you have missed any part of the program, or you want to hear it all over again, we're a podcast, simply go to wherever you get your podcast and search for the retirement blueprint with Grant door out you will find this show and all the others that we have posted there. And we'll do that every week for you so you can keep on top of your retirement plan and your retirement journey. In this segment here grande I want to talk about one of the things that people really have a big concern with and it is a concern, I think a fear more than death. And that is running out of money in retirement. Imagine what it would be like to be 9095 years of age without any money. Well, that is a scary thought. But certainly we do have some strategies that we hope will help you avoid that predicament. So what's the first thing we can do grant to avoid running out of money in retirement? Well, the first one simply start as early as possible. I had a client actually it was in here this week, his dad had passed away so I left him a decent amount of money and he asked me what he should do with it. And we discussed putting this money into a Roth IRA and we showed him hey, if you took this money, you put it into this Roth IRA over the next five 10 years what he would be able to accumulate in the next 30 years. And that obviously for him, that's going to work out great. The majority of our listeners are probably a lot closer than this new 29 year old client that I have this week. So if someone is nearing or in retirement, you got to look at where are your guaranteed income sources? Obviously, we just got done talking about Social Security. That's a big one. But do we have pensions? If we don't have pensions? How are we going to get something that looks like a pension? How are we going to create that throughout retirement, that's going to be your biggest help as getting more reliable income sources. And only about 13% of people in the United States have pensions these days. I mean, retirement planning is really on the shoulders of the employee. So pensions is one option. But if you don't have one, I know that you have tools and resources that you can help people create a pension like retirement plan, and that is something that we will discuss into future programs. You know, people talk about annuities, and they say I hate annuities, because they've heard that on the radio from some other financial advisor. But when you think about it, Social Security is an annuity and a pension is an annuity. Why would you hate annuities such as Social Security? I'm sure you don't hate your Social Security, and you hate your pension. So I mean, why do people say I hate annuities? There's a lot of myths. And there's a lot of misconceptions that are out there that everyone's heard of someone that had a negative experience with an annuity, maybe it's a friend or a relative or a family member, or maybe they like you said, maybe they just heard it on the radio or something that's put out there. The fact is, they can be useful tools. Now it has to be fit in with someone's complete financial plan. But it can be a great tool for someone that doesn't mean that everyone should have an annuity. I was talking with someone just yesterday, and we were discussing this that hey, in building a retirement plan, this is how you can do it. And she asked me a question about annuities and and I said, Oh, I'm 42 years old, No, I shouldn't have an annuity. It's not for me, but someone that's nearing or in retirement, if they're looking for something that looks more like what a pension would look like, you can get an annuity payment that would do that. And that could be a great route for someone to do. But you do have to be careful in what type you get into. Because the costs are drastically different inside of the annuities. And some of them are very, very low cost, and some of them are very, very high cost and knowing that difference is where you really need to have a competent professional that knows the difference and has the availability of all of them, and can decipher between which ones are good and which ones are maybe problematic. And grant I want to touch a little bit more on annuities because people do have questions. And again, that is a topic of a future show here. But I think sometimes when people say they hate annuities, it's because they were sold the wrong annuity and I underlined sold the wrong annuity because they went to an advisor who was basically one trick pony who sold annuities to everybody no matter what their problem was. So let's start with the different types of annuities. There are fixed annuities, fixed indexed annuities, and there are variable annuities. So let's start with one that probably they may have been sold and in life and that was the variable annuity. What are the negatives of that? Yeah, I actually have a client of mine, long term client. I've had him for probably six or seven years now. He actually came to a dinner seminar and I posed a question about annuities. And I was asking, Hey, what do we know about them? It doesn't matter if your opinion is good or bad. It really doesn't matter. I just want to know what everyone in here knows because it is kind of a polarizing topic. And this particular client, he was very outspoken, he said, I hate them. They are the worst thing ever. And I was like, Oh man, I wonder what happened with him. And he came into my office the following week, he came into my office, and we started discussing what happened in their situation. Well, it turns out at 45 years old, he left a job and this person said, hey, yeah, you got to get into this variable annuity. It's the greatest thing ever. Well, they ended up putting an income rider and a death benefit rider, well, then you got to factor in the mortality and expense charge and the administrative charges and the management expenses. And then the what what are the transactional costs inside of the sub accounts, all of these things? It turns out, well, this is why he hated annuities, because he had a wrong experience with it. And it was sold inappropriately, if someone was meeting with him, and they were actually having his best interest at 45 years old. He should have never gotten into that. So that's why his frame was this is bad, right? And when we got the education for him on what he had and what the differences were, then he could understand that hey, yeah, the annuity wasn't bad, that transaction was bad. Right? And that's a very unfortunate incident there and it is all too common when people are sold an annuity like that, who really shouldn't be in that type of annuity, but there are other annuities that really could fit someone's retirement plan such as a fixed annuity. Let's discuss that. What are the pros and cons are what are the details involving fixed annuities? Sure, you're always going to commit to a time frame and it doesn't matter if it's a two year or three year or a five year or 10 year when You have those if it's a fixed annuity, that's what's called a multi year guaranteed annuity, if you sign up for two years, and they're gonna give you X amount of percent, they're gonna give you that for that timeframe. But there's in all likelihood not going to be a whole lot of liquidity. If any, if you're going to sign up for a two year, it'd be similar to if you went to a bank, and if you got a two year CD, they'd pay you X amount of percent of interest. But during that timeframe, if you cash it in, and we've all heard it the substantial penalty for early withdrawal, right? Well, a multi year guaranteed annuity is going to do the exact same thing, you just got to know, Hey, this looks kind of it's not FDIC insured, it's done through an insurance company, but it's going to look similar to you're going to have that very specific thing for that very specific time. And it's going to do exactly what you said. But if you cash it in early, there will be surrender charges that you have to be mindful of. So make sure you don't go overboard with how much you would put in something like that, even though it might sound good on some particular day. And then grant there are fixed index annuities that have a floor of zero. Can you explain more about that? Yeah, fixed index annuity, it's index linked to the market. So basically, if you look at the s&p 500, as a gauge, you might have a floor of zero. And you might have a cap of whatever percent, it might be 10%. So if the s&p goes up, 5%, that's what you would earn. If it goes up more than 10, though you can't go higher than 10. And there's different ways that there's actually limitations on the upside, because they give you protection on the downside. And you got to be mindful of is there a spread? Is there a participation rate? Is there a cap? And if you have one of those, you also have to be mindful in the fixed index annuity? Okay, is there any cost inside of that, which would typically be for an income writer, some people need them, and they might pay a 1% fee. Now that fee would be for that guaranteed income, you may or may not need that though, with certain annuities out there, right now, you could take the fixed interest, or you could take the index link, and you could just pull a penalty free withdrawal and have no cost on that particular type of annuity. Our program is called the retirement blueprint, we're chatting with Grant door out here of door out Retirement Services. here in Omaha, we're talking about strategies to avoid running out of money in retirement, and annuities could be an answer, and I will underline could there grant but I think we start at the beginning. And that's creating a realistic income plan that will last the test of time retirement that could last 30 plus years. Can you tell us more about how you do that? Well, yeah, we actually we don't go with certain just buzzwords that we hear all the time, you know, the 4% rule, we're not going to just go with something that's generic. And someone says that, well, I have its 401k. And I've built up a million dollars. So I'm going to take $40,000, I'm going to increase it a little bit every year. And I should be okay. Well, that could be true. But it depends on what your sequence of returns is, when we bring in sequence of returns risk that is absolutely not necessary there, we have to develop an income plan that isn't tied to the rising or the falling of the stock market. Because if we do that, inevitably, we're going to have another 2022. Inevitably, we're going to have another 2008 in your lifetime. So you have to be much more careful and much more diligent with what type of a reliable income you're putting together rather than, well, you know what, I've done this for the last 30 years, and it's got me over a million dollars. So it must be pretty good. I'm gonna leave everything the same, the way that you get to retirement is drastically different than the way that you should get through retirement, if you're going to do it in a reliable way where you're not going to have any concerns. And finally, grant to avoid running out of money in retirement, you've got to monitor your withdrawal rate, you've got to figure out how much of your income that you can take out each and every month or each year. And I've heard about the 4% rule. But that doesn't always apply, does it? No, not at all. If you do a income plan correctly, you might even be able to get more than 4%. But if you do it in the age old way of doing it, we might have a situation where I've told this story many times my brother is about 10 years older than me, if he turns 65. And he does the 4% rule, but his sequence of returns in the first 10 years of retirement mimics 1990 to the year 2010 years into retirement. He's looking really, really good. But if I retire at 6510 years after him, basically and I retire and I have the same amount of money he had, but my sequence of returns mimics the year 2000 to 2010. Well, at the end of 10 years in retirement, I have a situation where I'm probably having to go back to work. And that's all because of that 4% rule and just leaving those assets invested in a way in a market that isn't designed to create the income. Now inevitably I'm going to have someone that says Well yeah, but I have dividend paying stocks. Yep, that's okay. And that might work out great. But how do you know that that dividend paying stock that you have isn't going to have an oil spill like BP did where all the sudden we cancelled the dividend and we have a massive depreciation in the stock value? Those types of things happen and it's a lot of risks to still take on if you're going to go strictly that route. You have to have a fiscal house like we put together rather than just have it all in one area. Grant based on our conversation, I'm willing to bet that our listeners do have some questions about not running out of money in retirement. So if our listeners want answers, request your no cost no obligation no judgment door out Retirement Services review by calling 402-281-0750. That's 402-281-0750. Now when you call you'll get a friendly voice more than likely Lisa will gather some basic information from you then set you up with a conversation with grant to create a path towards a successful retirement. Now remember, it's not going to cost you a dime, but it could uncover some blind spots that when addressed may help you improve your quality of life in a retirement that could last as long as 30 plus years again, call 402-281-0750 402-281-0750 Or request your complimentary consultation online at Door House retirement services.com. That's Dr. H. o u t retirement services.com. Well, Grant we're out of time for this week. I want to thank you for your time but most of all, I want to thank the fine people here of Omaha, Nebraska for listening to us for grant door hot I'm Jeff shade, get out. Have a great weekend in this great part of the country that we live in. We'll talk to you again next week with another edition of the retirement blueprint right here on us talk 1290 coil. The opinions voiced on the retirement blueprint with grantor out over general information only and are not intended to provide specific advice or recommendations for any individual past performance is no guarantee of future results. All indices are unmanaged and may not be invested into directly investing involves risk including possible loss of principal no strategy assures success or protects against loss to determine what may be appropriate for you. Consult with your attorney, accountant, financial or tax advisor prior to investing investment advisory services offered through CWM LLC, an SEC registered investment advisor