Latest / The Jon Sanchez Show / Why The First 5 Years Of Retirement May Be The Most Important
Transcript
- Jon G. Sanchez: Good Monday afternoon to you. Welcome to the John Sanchez Show on News Talk780 K O H L. It's so good to be back with you. I hope you missed me as much as I missed you. My goodness. I'll tell you what, folks. You know, I tell you everything. I don't hold anything back. did the webinar on Wednesday, and have me. I have apologized I ended up having to cut the webinar short. Normally I go an half hour. It's like, I'm just not feeling good. Within an hour afterwards, really, really wasn't feeling good. I caught this flu bug that I know is going around. And I tell you what, I was in bed well all weekend. All all five Five days. I can't remember the last time ⁓ that had a flu bug last that long. terrible, absolutely terrible. I missed you tremendously. I thought about you. ⁓ I could not get myself out of bed to come do the show with you and so on and so forth. so I apologize for that. But I tell you what, you know, absence makes the heart grow fonder. I I tell you, every time I'm away from all of you, I just realize how blessed I am to be able to sit behind this microphone five days a week with you and ⁓ what see going on in the markets and help you through your your financial challenges and your successes and ⁓ so on so forth. So ⁓ I want thank Jack and and Ryan and everybody for for filling in and It was just ⁓ obviously a last minute type of thing, but ⁓ man. So have a little bit lingering, but ⁓ overall we're gonna get through and excuse me, we're gonna have a great show today. I promise you that. Speaking of show, let me tell what I have lined up for you today. I don't think in 30 well, 25 years on station at least, I've ever done this topic. But it's a topic that I have this discussion with clients all the time. And I don't know why I've never done a show on this. And it occurred to me this morning. It's like, you know what? We need to share this with everybody because it is very important. titled today's show, Why the First Five Years of Retirement May Be The Most Important. Now you may be saying to yourself, Well, wait a minute here. The first five years of retirement, what what's so very important about that? I wish I could give you ⁓ you a a a detailed answer to that question. But what I see with our clients is the first five years. are really the most important of all of your years of retirement. And you think about this, and I'm gonna, and I way I've structured today's show, I'm gonna break this down into certain areas, certain periods, I should say. Like the couple years, years two through years five and beyond. Because in reality, if you think about this, most people think that, okay, I've retired on whatever, let's pick today's date, August 3rd of 2026. They think, wait a minute here. Retirement planning's done, right? I just retired. My retirement plan is done. But it's not true. In reality, retirement planning is just beginning the day that you actually retire. I mean, think about it for a second. You spend the next, you know, you have spent, I should say, let me rephrase that. You have spent 30 or 40 years busting your butts every single day, saving for this magical time period, accumulating money, sacrificing, doing all the things that you wanted to do. But guess what? Here's the real challenge. you have to make that money last another years, if not more. So the that you make during those first few years can absolutely affect the rest of your retirement. And so today I'm going to discuss what actually happens, what we see happen with our clients during those first five years. Again, we'll talk about year one, what I've titled the transition, year two and three. Reality sets in, you're four and five. Now you're in a groove. So if you're getting close to retirement, it's a few years away, maybe it's right around the corner, whatever the case may be, you don't want to miss this because I'm gonna bring you again, as I always do, real life scenarios, no textbook junk on this show. This is gonna be real life scenarios of what we see happen with our clients. And again, it it's there's something magical about those first five years. like I said, I can't tell you why, you why isn't it six years? Why isn't it four years? It's just what I see is the first five years are really the most important ones that you're gonna gonna ⁓ face in retirement. that, you you you're gonna get in cruise control. You really are. And everything is done correctly leading up to retirement, hopefully you can get into cruise control well before the five years. But many times, even with proper planning and everything laid out, like you, you know, as best as you possibly can, that five years is that magic window. So it's gonna be a great topic. I can't wait to share that with you. All right, let's get down to the stock market side of things today. What a way to start the week. Absolutely amazing. Today belonged to the megacap stocks. We built on last week's strong earnings driven momentum. We embraced the easing of geopolitical tensions over the weekend, as the president announced. He's gonna hold off on any ⁓ further bombing because negotiations were gonna begin again today. And so that news broke on Saturday. Futures moved up pretty good yesterday, o'clock when they start trading. And then it just continued all the way forward. And again, what an incredible, incredible day. Matter of fact, the SP 500 closed above 7,600 for the very first time since June 2nd. NASDAQ climbed 2.1%, Dow advance 1.3%, both of those closing at all time highs. Think about for that for just a second. Let's see, I got sick on Wednesday. I missed you on Thursday and Friday. on the show, we were talking about us bombing bridges ⁓ utility plants and obviously Iran bombing Saudi Arabia and Kuwait and everybody bombing everybody. That's the way things looked. And here we are, thanks to the president's comments, which God willing they hold true this time, and course, incredible earnings numbers. One of those I'm going mention ⁓ that just reported after the closed palantir. And the earnings that came out last week. And look where we sit. All time highs. Absolutely amazing. And this goes back to something I, you know, for those of you that may be new to the market that I've shared many times, people say, I don't want to get into the market. The market's at all time highs. Yeah, that's a good thing. And they, you know, in our situation right now, which I have never seen momentum like we have seen. In my 36 years of doing this, I have never seen momentum. like we are experiencing in this market. You have geopolitical tensions, you have a lot of things going on. You have a new Fed chairman who's to be very stubborn about wanting to cut interest rates. And here we are setting records. That is the strength of this economy, the strength of this market. At least as we set right now, things can change at any time. But as the saying goes, enjoy the ride while we can. So let me go ahead and get the the great news out of the way. Today the Dow finished up 693 points, a 1.32% gain, closed at 53,178. The NASDAQ rose 540 points, 2.13%, closing at 25,913, the SP up 111 points, 1.48%, closed at right at 7,600, right on the nose. The oil price situation, we came off of the lows of the day, but still finished solidly lower. $4.21 decline. $80.36 a barrel. Globe gave up $16.60, $4,090. really the remarkable thing that was also a major catalyst in the market, markets going, ⁓ specifically the bond markets going, we need the Fed. We're going to do this on our own. On all this news, bond market said, Yeah, you know what? Let's drive these yields down. Let's buy the bonds, drive those yields down. And it a big decrease in bond yields right across the board. The ever so important tenure yield down six basis points to a close of four sixty-nine. The two year, which is sensitive to the Fed, down four basis points, four and a quarter percent. The five year down six basis points, four forty yield, and the third year down four basis points at a yield of five twenty-three. what's amazing, one thing that did happen in my absence, the level that this 30-year bond got to. I told you on Wednesday I was very concerned about this because we're right around, ⁓ if I remember right, right around five point one five, five point one seven, ⁓ is the height that we hit that the market did not like roughly a month ago. When oil prices really shot up. But here we are at five point two three, obviously well above it, and we set a record. So the equity markets are not paying attention to what the bond market is doing, not any stretch of the imagination. So go into some of the the details of today. So again, it was driven by the president saying we're gonna hold off on any bombing, negotiations beginning on Monday, meaning today. The communications sector today, very strong, 4.3%, thanks to Google, $15.82 rise on Google, 4.44%, 372.47 closing level, extending its recovery from the recent post earnings sell off. Meta today up thirty three dollars and fifty three cents, six point zero two percent increase to five ninety twenty four. Then we move over to the consumer discretionary sector, up 2.7%. Tesla rose ten dollars and eighty-seven cents in that group, 3.49% increase to 322.08. Amazon, amazing. Finally, the stock is doing what I've been anticipating and why we have it in our portfolios. Finally, it is moving up. And boy, last week it moved up towards the end of the week. I believe it was on Friday. And then today, $12.44 increase, 4.58% to $284.02. Again, had very strong earnings numbers last week. Became the latest U.S. company today, by the way. Popped the champagne bottles at Amazon. Why? The company surpassed $3 trillion in market capitalization, meaning the value of the company. $3 trillion. Join the big boy club. Microsoft, another standout today. Four ⁓ $22.93 increase, 4.93% to $487.65, following last week's earnings report and a solid game in Nvidia. $5.89 increase there, 2.93%, 206.64. I mean, the list goes on. as I'll discuss when we come back, had a pre ⁓ regular session up two dollars and fifty-nine cents, two point one percent ⁓ to one sixty-five. Reported great numbers after the close. I'll tell you what the stock's doing. We had the chip participating, advanced microdevices up four ⁓ eight dollars and forty-nine cents, several memory companies, including Sandisc. Had a very strong performance. They've got a lot of earnings in that group coming in the next few days, but ⁓ today up six point zero three percent, seventy-three dollars and twenty cent increase to twelve eighty-eight ⁓ three. The list goes on. Who didn't make money today? Yeah, a couple of the major oil producers, no surprise there. Chevron was down about $3.65, 1.85% The reason I'm laughing, the president out today, mid morning, and said he is not happy Chevron and Exxon. That the companies were earning excessive profits they should lower their retail gasoline prices. Never seen a company or seen a president come out and pinpoint companies for making too much money. I mean, Democrats didn't do that, never seen that from a Republican side. So thought that was interesting. Anyways, where do set on a year to day basis? All right, here we go. We'll start with the Dow. It is up 10.6% for the year. The Nasdaq's higher by 11.5%. Long ways to go to catch up where we ⁓ where we, you know, where on a year to day basis. Russell two thousand up twenty point two percent and the SP's higher by eleven percent year to date. right, come back to tell you about Palantir and then we're gonna get into our topic. Why their first five years of retirement may be the absolute very important. Welcome back to the John Sanchez show on News Talk 780KOH. I should say, welcome back to a record setting day. Triple win. Triple win right across the board. The Dow, the NASDAQ, the SP closing at record levels. Once again, the Dow gained 693 points, closing at 53,178. up 542.13%, closing at 25,913. And the SP up 111 points, 1.48%, closing at 7600. Pretty day. Also, pretty What happened with Palantir? anticipated earnings report coming out after the close. And boy ⁓ boy, did the company deliver. Let me tell you what the stock ⁓ did as I ⁓ earlier, but what it most importantly, what it's doing in the after hours. Regular session again, the stock finished up $2.59, closing at $125.65. Right now in the after hours, it's up $17.26, a 13.74% gain to $142.91. So are the numbers. Numbers weren't spectacular. But they were better than expected, and it was the guidance as usual that's driving the stock higher in the after hours. what the company did. They 41 cents a share in the quarter. Expectation was 35 cents. Revenue 1.94 billion. Estimates 1.8 billion. Revenue climbed. where ⁓ the stock's the boost. Revenue climbed 93% from about a billion dollars a year ago. Palantir reported net of $1.07 billion, or 41 cents a share compared to Net income of three hundred and twenty-nine million or thirteen cents a share for the same quarter a year ago. As their CEO Alex Carp said, forget consensus. He says to my knowledge, no business at our scale has even grown half this much. Palantir's U.S. government revenue grew ninety percent from a year ago to eight hundred and nine million. Of course, the company's widely known for selling its software to the US government and the military, but its commercial revenue also has accelerated for the first time in quite a while. U.S. commercial revenue surging 149% from a year ago 764 million. And taking into account, compounding has jumped 380%, going back 2024. Palantir is now bracing for U.S. commercial revenue in excess, according to the company, of $3.42 billion year, up from prior guidance of $3.22 billion. Company said its remaining, its remaining U.S. commercial deal value. deals value more than doubled from a year ago to $6.24 billion. the shares, you know, if you're looking at a value play, this may be one you want to consider. Shares down 29% this year due to broadening concern that the AI software trade is running out of steam. ⁓ And course growth would slow and blah, blah, blah, blah. But the AI software company lifted the folio revenue guidance today on the analyst conference call to between $8.15 billion to $8.16 billion From prior guidance of 7.65 billion to 7.66 billion. The CEO said that the ⁓ strong growth quote looks like this is going to go on for at least another 18 months. So congrats to ⁓ any of you that are ⁓ Palantir shareholders of recent. Hopefully you're not ⁓ part of the group that's down 29% ⁓ so. All I think up to date now. Again, oil down four dollars and twenty one cents, eighty thirty-six, ⁓ the catalyst today's growth. in record setting day again the president announcing on saturday that he's halting any further bombings against Iran as negotiations are going on today. So that's what the street got excited about as well of course as these earnings numbers I was just mentioned and the earnings momentum from last week. All right, with that said, let's started. Why the first five years of retirement may be the absolute most important of all of your years of retirement. Once again, if you just joined us, as I said at the beginning of the show, and I want to be real clear, I can't give you scientific proof why the five years is so important. I'm just telling you what we see with our clients, just the real life side of it. And as I said also at the beginning of the show, most people think that, you know, retirement planning ends the day they retire. But in reality, it is just the beginning. Because folks, whether you like it or not, and I know that sounds cliche to say that, but have some clients going, ⁓ don't want to live another 30 or 35 years, and they're in their 60s. Others that say, hey, I want to live to 100. Regardless, you don't have control in most cases. Regardless of that, your money's got to last a long time. Probably another 30 years. let's talk about how we break this down into our five year time period. All right, year one, what I call the transition period. Now this isn't just, I've said many times, this isn't just a financial adjustment time period. Going from, hey, my check is deposited in my bank account every single Friday, taxes are withheld, money goes into my retirement, et cetera, to I've got to generate this money now. So it's not just that. It's not just a financial adjustment. In many cases, more importantly, it's the emotional adjustment that one must go through. The emotional adjustment. And I tell ya, I I'll I'll be honest with you. as laid there in bed for the last five days fighting this doggone flu bug, I sat and I thought about this. It's kind of where I came up with this topic and I thought, you know What would it be like if I didn't have my clients to take care of, my radio audience to educate each and every year? What would be my purpose? Well, I have a lot of interest, as all of you know, by the various businesses I have and things. So I don't think I'm ever gonna be one of these, if and when the time ever comes that I decide to retire. Where I'm gonna need, you know, the purpose to get out of bed. But would I go through an emotional adjustment? I would. I mean, I felt myself getting depressed, laying there. It wasn't so bad on Thursday because I was so sick. Friday, okay, you know. Head wasn't quite so foggy anymore and the vomiting had per you know subsided a bit and so on and so forth. But would I go through an emotional adjustment? Absolutely. I and I did, just two days away. I can't imagine being away from my clients and again from you, et cetera, with the emotional adjustment I would go through. And I think would go through some type of emotional adjustment. As I've said, I've ⁓ never once had a woman client regret retirement. I've had men many times regret retirement because of the emotional side of it. Now, many of you that are, you know, got some gray hairs on the head, you're gonna be like me. First thing that happens in that first year of transition, you lose your daily routine. Now, my kids joke with me all the time, saying, you know, the older you get, dad, the more set in your ways and the more set in your routine. And I try not to be that way. I wish so bad I could go back to my younger years where I was as carefree. It's like every day you had a little bit of a different schedule and You know, you didn't get thrown off. My gosh. The older I get, if thing in my day ⁓ not go according to plan, which happens on the work side of things, but I'm talking more of a routine. Like I like to go to bed at a certain time, I like to get up a certain time, I like to work out at a certain time, so on and so forth. I get mentally screwed up. I don't know about you, I do, I get mentally screwed up. So once again, this is one of the big problems in retirement. You lose that daily routine. That routine you've probably had for the last, again, 20 to 40 years. And when that alarm clock's not going off at five o'clock, six o'clock, whenever you get up when you're working, that's the first step to screwing up your daily routine. And so that's why I always say get yourself into a retirement routine. R, retirement routine. Set alarm. You don't need to sleep into eight, nine o'clock every single morning. Set your alarm whatever time you're comfortable getting up. Probably don't need to do it at the crack of dawn like you did when you were working, but get yourself into that daily routine. Get up at the same time, have your coffee, have your breakfast, work out, whatever you do in the morning, stick to that. And you'll, I promise you, I promise you, you will ease into retirement better. I've seen it again. I'm gonna refer to clients. This is they're they're they're my test case with this. I've seen it with some that very set routines, and that was one of the most important things they said going into retirement is. I no longer have a routine. I can do what I want to do. That alarm clock got rid of it. I don't need it anymore. And those tend to be the clients that come back to me a year, two years later going, you know what? I find myself instead of going to bed at nine o'clock like I normally do, I find myself going to bed at 11, 12 o'clock. And then I sleep in till eight or nine o'clock. And then the day's half over. Then I feel terrible about myself. Then I miss, you know, I miss going to the gym. Next thing I know, it's lunchtime. So I'm sitting down on the couch eating a big fat lunch. And on and on and on. And their personal and their health and everything starts to deteriorate. Their mental confidence, ⁓ their overall physical and mental confidence starts to go down. And it's a miserable retirement. It's so easy to fix it. We're human beings. We like routine, and especially the older we get. Those of you that are young, trust me when I say this. The older you get, the more routine-oriented your life is going to become. And you freak out if your routine gets screwed up. Even if you don't have to get up, make yourself get up. Get up and again, get that daily routine going. right. We're just getting started in again, the first five years of retirement, why they are the most important. Welcome back to the John Sanchez Show of News Talk 780KOH. Welcome back to a record setting day. All three major averages closing in record territory. The Dow rose 694 points to a close of 53,178. NASDAQ up 540, closing at 25,913. And the SP gained 111 points, closing at 7,600. remarkable, remarkable day. Still some very strong gains of Palantir after that. Strong earnings after the close. Stock again up $17.85 in after hours to $143. fifty a share. right. I've just begun our topic. Why the first five years of retirement may be the most important. So year and one again is the transition. Again, this isn't a financial adjustment. It's an emotional adjustment time period. So went through first problem that we see clients lose their daily routine. Their self worth, their confidence starts to go down the tubes, ⁓ their etc. How do we correct that? Start a even when you're retired. Number two, now this is a big one. For us men especially, 'cause we tend to have the bigger egos than with the beautiful women in our life. lose our work identity. When asks you, ⁓ know, you entered your your cocktail party, you know, barbecue, whatever the case is. What do you do for a living? I do this, this, and this. Do you feel proud when you say that? Some people are like, ⁓ you know, I work in construction, or I work an admin, or I this, I that. That's fine. Other people, they're very, very glued into I a CEO, I'm a CFO, I'm this, I'm that, right? They got that identity. Well, what happens when we don't have that identity anymore? What is that gonna do to your psychology, your self-confidence? You have to get comfortable, as the saying goes, in your own skin when you retire. Because you no longer have that identity. It's you. People either gonna like you or hate you for you. Not because, geez, you know, if I'm nice to this guy, he can get me a job. Or he can, you know, they're an employee. Hey, if I'm really nice to this guy at the Christmas party, you know, maybe he's gonna put me in for a you know, promotion or a raise or something like that. That's all gone. You've got to be careful. And again, be comfortable in your own skin as I like to call it, with your own personal identity. Third challenge in the first year. Spending too much quickly. boy. Is that one so true? Now I was gonna say it's not intentional, but in many cases it is. what happens in reality. Excuse You're working, working, working. You got that list of honeydews a mile long. But face it, you typically have Saturday, Sunday. Last thing you want to do is all the honeydews on the weekend. Or excuse me, on vacation. you try to squeeze them all in on a weekend. Well, if like me, the weekend, like you know, it's Friday and you blink and next thing it's Monday morning. You just can't get to them. I've I've got that problem right now. It's like, I've been trying to finish up my wife's garden since Mother's Day, and it's still not getting done because all I have is the weekends, and a lot of times I'm still working on the weekend, so it's a few hours here, a few hours there, and it drives me absolutely nuts. So when we retire, we don't have that excuse anymore, right? We've got seven days a week that we can get things done. by getting things done, it costs money. Now we'll get into, you know, buying some of the fun toys and things like that, but I'm talking about the honeydews. Typically, what we'll see, and we try to plan for this with clients, we'll ask them in the retirement planning process are there any major expenses, as home renovations, remodels, maybe you want to move, whatever the case is, that you plan on spending in the first couple of years of retirement? If so, let's A, try to do it while you're still working when you have a good steady paycheck coming in and plenty of money and so on and so forth. Or budget for it. Because the worst thing that can happen to your financial plan is all of a sudden. You know, you're a month into retirement and you go, man, I've got all this time. I've always here's a common one I come across all the time. I want to build a shop. Client will call me up and go, hey, I want to go, I'm gonna build a shop. You know, I've always wanted a wood shop or a place to my cars and renovate my old cars and so on and so forth. Cool. I love that idea. No one loves a nice shop better than myself, but they're not cheap. So do they want to go spend the know you're gonna laugh, 250,000, 300,000 or more? Or they want to finance it? If they want to finance it, then we should have done it when you were working, right? It's easier to qualify when you've got a job than when you're retired, as I've said many times. So what tends to happen is they start spending money. It's like, hey, you know what? I just I need to withdraw 50,000. I'm gonna renovate the backyard. Or again, need a down payment for the shop or This or that. So you spend too much too quickly. Well, again, if it's not planned, that screws up your monthly cash flow, right? You have a nest egg to generate your retirement monthly income off of. So be careful. Try to outline what your expenses are going to be before you go into retirement, especially that first year. Next one, is pretty much, I don't blame anybody on this one because it's out of our control. You underestimate healthcare costs in your first year. If you don't retire at 65 and become Medicare eligible, again, if you don't have some type of special, maybe you got an early retirement plan or program ⁓ package, I should say, is the word I'm looking for, from your current employer, and they're gonna continue with your medical benefits, maybe at a reduced cost or maybe for free until you hit Medicare eligible age. Bless you. Gosh, I hope that's the case. But in reality, many times, it's not the case. So you've got to go out and you gotta buy some healthcare insurance on your own for you and your spouse. As I've said many times, I think I just said it last week, fifteen, sixteen, seventeen hundred dollars a month is kind of the norm if you gotta go buy insurance on your own. So think about that for a second. But many of you that have never had to go buy insurance because your employers offered it, now you're gonna be going, wait a minute, it's costing me as much for my my medical insurance, maybe as my house payment that you've had for the last twenty years, thirty years. Again, it's got to be part of the budget. So don't underestimate your healthcare. If you've got to buy insurance, do all the research, do all the research prior to retirement. And then the the last one I want to mention ⁓ overwhelmed by all of these financial decisions. Because again, you think about it, life's been pretty simple. Paycheck comes in, taxes withheld, money goes to retirement, got a little money going to savings, boom, everything's great. It's all automated for you. Not the case. We try to make it that way in retirement, but a lot of times it's not. So you become overwhelmed. You've never had to deal with this. So my advice there is. Get involved if you're not yet while you're still working. Get involved in the family finances. Maybe your spouse has handled them up to this point. Both of you need to handle them. Get involved. Know that budget. Know what's coming in. Know what's going out. Know what the big upcoming expenses are. The more you are knowledgeable, the less underwhelmed you're going to be. Or overwhelmed you're going to be. It's again, we get overwhelmed when too many decisions have to be made and we don't know enough about them. We can't, as human beings, rationally make all those decisions. And Again, you're making them on your own. Hopefully you have a financial advisor such as us or other good financial advice, great financial advisors. and you can run those decisions, those ideas. That's what our clients do. Run them past us. Get that second opinion. That's what we're here for. But if you're self-managing, you got to make those decisions yourself. And again, it can be very overwhelming. So wrap it up on this one, build a retirement income plan, create the withdrawal strategy, know your taxes, know your Medicaid, update your estate plan, review your beneficiaries. That's my tell you, my take in the first year. All right, I'm running out of time very quickly here. I'm gonna go to segment two, year two and three. That's when reality sets in. Welcome back to the John Sanchez show on News Talk 780K, which if you did not hear was a record setting day with the Dow, the Nasdaq, and the SP all closing at record levels. gained 694, NASDAQ rose 540. SP up 111. All you made a lot of money in the market. Maybe today was the day you decide to retire. But what did the first five years of retirement actually look like? So we went through year number one, the year of transition. Let me bunch years two and three, what I call the reality sets in time period. Now, this is where retirees begin making mistakes. Here's an example. They start to overspend. Right? Okay, you got through the first year, maybe those honeydews are done. Now you're like, ugh, now I can relax. That dream vacation, that cruise. Across the oceans. dream home. You want to become a snowbird. You want that new RV, that brand new truck. All those things happen. Because you say, look, I got a year under my belt. It's my time now. Beautiful. Like I said, love you go spend on the toys. Love you to spend on the vacation. Just plan for it. Don't overspend. Here's something else that you may not realize that happens in retirement. Your kids and your your older grandchildren think that you now have a flashing neon sign that says, Grandma and grandpa are rich now, or mom and dad are rich now, because they must have a lot of money because he was able to retire, or they were able to retire. Time to set expectations with your children and your grandchildren. Look at guys. Yeah, we were able to retire through years of hard work and savings and so on and so forth. But guess what? We're on a fixed income now. Sorry, can't help ya. So I call these the go-go years. You spend a lot. Everybody wants a little piece of it. Just be careful. Protect those brokerage accounts. Protect the bank accounts. Because again, you don't want to go back to work. Now, I was gonna get into other things that affect you, but inflation and and sequence of returns and things, but I don't have the time. So let's go to segment, let's go to ⁓ years four and five. So this is what I call the cruise control time period, right? You got through the first year of transition, you got all the honey dues done, you spent a lot of money, ⁓ you're two three, now you start to reward yourself, got your vacations out of the out of the way, and things are going good and kind of getting settled in this routine, right? You're feeling good about yourself, you got a routine going. This is what you think retirement's all about. Now, this is where I'm going to tell you it's time to optimize. What do I mean by that? This is when you get the sharpen the pencil and you sit down, you go, look at, all right. Do we really need to go out to eat four times a week, even though we're retired? Probably not. Oop, just found an extra hundred dollars a week. Do we really need to take, you know, five vacations a year? Yeah, probably not. Your whole life's vacation now. found a couple thousand bucks there. You get my point? So you got it, I what I call you got it out of your system. Best analogy I can give you, when you were in high school and you got senior itis that last two or three weeks, or in my case, a month before that that graduation day came, and you've mentally checked out. You're physically in your classroom, but you mentally checked out. It's like I'm done. I'm gonna graduate, I'm done. And so ends up happening during that time you begin to slack off. Right. You don't pay attention to your coursework and start to slack off on the test. Boy, I'm talking from personal experience. before you know it, graduation's here, and you're like, ⁓ man, I really screwed up this last month. I need to get my act together. Well, it's the same thing in retirement. You got those last couple weeks of high school. Well, now you got your first, you know, three years, four years of retirement out of your system. Now it's time to go to work. Sharpen the pencil. Not telling you to become, you know, miserable in retirement. This is your time period. But just know where the money's going. It's a great time also to take a look at the investments. Am I allocated correctly? Can I handle the risk? Have I stress test my portfolio? What happens if the market drops 30% instead of these days where we're just go up day after day after day? Now you start looking at worst-case scenarios. Not to be negative, but to be prudent with your money. This is what you need to do when you're in retirement. Because again, none of you want to go back to work. So The cruise control years, but I call it the fine tuning years, years four and five. So five things every new retiree should do. Build a written income plan as well as financial plan. Review your investment risk. Create tax efficient withdrawal strategies. Review your Medicare, review your health care, and meet at least annually with your advisors. If you do that, I'm gonna leave you with this thought. First five years ⁓ retirement aren't about getting rich, they're about protecting. Everything that you have spent your entire life building, a great retirement is not determined by how much money you have. It is determined by how wisely you manage it during those first few years. That will set the stage for the rest of your retirement life. bless. Have a great afternoon. We'll see you tomorrow on the John Sanchez Show.