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Retirement Planning is More than Dollars and Cents · Money In Motion with Klaas Financial

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  Speaker 1: That means our phone lines are open for you if
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  Speaker 1: you have questions for our retirement planning professionals from Klass
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  Speaker 1: Financial love to have you join us this morning. Phone
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  Speaker 1: number to get on the air six oh eight three
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  Speaker 1: two one thirteen ten. That's six oh eight three two
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  Speaker 1: one thirteen ten. Any questions you have about retirement and
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  Speaker 1: retirement planning.
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  Speaker 2: CJ.
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  Speaker 1: Closs and Eric Schwartz are here for you this morning.
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  Speaker 1: Of course you can learn more about Class Financial. They've
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  Speaker 1: got a great website. It's Clossfinancial dot com. That's Closs
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  Speaker 1: Klaasfinancial dot com. There telephone number six oh eight four
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  Speaker 1: four two five six three seven. No charge for that
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  Speaker 1: initial get to know you appointment tech c Loss Financial.
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  Speaker 2: It will be complimentary to you.
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  Speaker 1: And again the number to get on the air this
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  Speaker 1: morning six oh eight three two one thirteen ten. That's
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  Speaker 1: six oh eight three two one thirteen ten. As mentioned,
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  Speaker 1: joined this morning by CJ. Closs and Eric Schwartz.
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  Speaker 2: CJ. How you doing this week?
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  Speaker 3: I'm doing great. It's been beautiful so far this week.
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  Speaker 2: It has been a perfect week in Eric.
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  Speaker 1: I hope you're getting a chance to get out and
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  Speaker 1: enjoy this stuff you doing this morning.
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  Speaker 4: I am doing great, yes, and enjoying the beautiful weather
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  Speaker 4: it is.
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  Speaker 1: It is great, although we've got got a chance for
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  Speaker 1: some storms later today.
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  Speaker 2: We'll keeping an eye on those type of things. And
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  Speaker 2: you're speaking of keeping.
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  Speaker 1: An eye on things, of course, we all kind of
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  Speaker 1: keep our eye on retirement and looking forward to that
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  Speaker 1: date and like we're ready to go. There's a lot
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  Speaker 1: that goes into it and has noted. It's more than
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  Speaker 1: just flipping a switch and saying I'm retired. We're gonna
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  Speaker 1: get the details from CJ and Eric on all of
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  Speaker 1: that in just a moment. A couple of cool things
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  Speaker 1: about the program, of course, the biggest thing is opportunity
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  Speaker 1: to call in if you've got a question, love to
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  Speaker 1: have you join us. Six eight three two one thirteen ten.
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  Speaker 1: That's six oh eight three two one thirteen ten. Another
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  Speaker 1: cool feature of the program is the Class Quiz Question
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  Speaker 1: the Week. It's your chance to win a fantastic prize
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  Speaker 1: from our friends at Class Financial. This week, chance for
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  Speaker 1: you to win a twenty five dollars gift card to Chewy.
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  Speaker 2: Pay close attention.
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  Speaker 1: Oftentimes, the question and answer to the Class Quiz Question
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  Speaker 1: Week come up during each week's program so it's really
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  Speaker 1: a good information and a little extra benefit with that information.
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  Speaker 2: If you can.
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  Speaker 1: Retain a little question or answer there, you get a
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  Speaker 1: leg up on everybody else when it comes to the
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  Speaker 1: class quiz question week Before we start talking about getting
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  Speaker 1: into retirement, let's actually look back at last week's show
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  Speaker 1: and get the class quiz question the week and answer
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  Speaker 1: there as well.
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  Speaker 4: Eric. Yes, So our winner last week was Joel and
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  Speaker 4: Joel knew the correct answer to our question, which was
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  Speaker 4: true or false if you were born between January first,
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  Speaker 4: nineteen fifty one in December thirty first, nineteen fifty nine,
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  Speaker 4: your required minimum distributions will start at age seventy three.
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  Speaker 4: And Joel knew the correct answer which was true.
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  Speaker 1: Fantastic, great work, Joel. You do can be like Joel.
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  Speaker 1: Chance to win a little later on in the program
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  Speaker 1: with the class Quiz question of the week mentioned the
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  Speaker 1: website classfinancial dot com haven't mentioned yet, it's a great
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  Speaker 1: place to listen back to this in previous shows. The
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  Speaker 1: podcast get posted right after each week's program. Also a
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  Speaker 1: chance to sign up for the weekly market Ball's newsletter.
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  Speaker 1: So today were going to be talking more out more
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  Speaker 1: than just flipping the switch and saying I'm retired. It's
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  Speaker 1: really about being truly ready, and there's a lot that
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  Speaker 1: goes into it. Your mind, your body, your wallet. We're
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  Speaker 1: going to discuss actually the health of your wealth also
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  Speaker 1: for your own self, aren't we CJ.
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  Speaker 2: We are.
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  Speaker 3: Yeah. So you know, often people come to financial planners
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  Speaker 3: or retirement planners like us because they're looking for the
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  Speaker 3: quantitative advice as it relates to their retirement. So when
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  Speaker 3: I say quantitative, think the math side of things. Hey,
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  Speaker 3: do I have enough money to live off of for
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  Speaker 3: the rest of my life? When should I draw solid security?
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  Speaker 3: How does medicare work? These are all quantitative questions, but
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  Speaker 3: when you do what we do for a living, not
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  Speaker 3: that we are like formally trained in psychology or anything,
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  Speaker 3: but you end up recognizing there's more to retirement than
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  Speaker 3: just the quantitative. Now, we can't be all things to
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  Speaker 3: all people, but there is a lot to consider here.
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  Speaker 3: So we're going to talk about both of these elements,
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  Speaker 3: both the quantitative and qualitative aspects, or think of it
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  Speaker 3: as the math and the mental health side of retirement.
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  Speaker 3: And twenty twenty five I'll start with some some quantitative
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  Speaker 3: elements here. Twenty twenty five is expected to see the
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  Speaker 3: highest number of Americans reaching the traditional retirement age, with
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  Speaker 3: an estimated four point one to four point two million
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  Speaker 3: people turning sixty five in twenty twenty five. Let me
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  Speaker 3: repeat that, four point one to four point two million
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  Speaker 3: Americans are anticipated to turn sixty five and twenty twenty five,
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  Speaker 3: which is the highest number ever. That translates to around
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  Speaker 3: eleven thousand, three hundred dollars earth, I'm sorry, eleven thy
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  Speaker 3: three hundred Americans per day reaching sixty five in the
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  Speaker 3: year twenty twenty five. That's a lot of birthday cake.
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  Speaker 2: Sean, Yes, it is, but we hear it all the time.
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  Speaker 3: You know, people say, am I really ready? So let's
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  Speaker 3: you know, ready to retire? So let's run through through
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  Speaker 3: a retirement readiness checklist to make sure you're all set.
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  Speaker 3: Checklists kind of Number one here is you have to
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  Speaker 3: pick your retirement date and sure, you know, obviously working
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  Speaker 3: longer means you have more savings and bigger Social Security checks.
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  Speaker 3: But it's not all about the money or about the numbers.
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  Speaker 3: Think about your quality of life, your health, and whether
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  Speaker 3: you can keep doing your job. Funny thing is that
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  Speaker 3: people are terrible at predicting their retirement dates. So we
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  Speaker 3: would say to you, life is going to throw you
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  Speaker 3: a lot of curve balls, health issues, layoffs, or just
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  Speaker 3: plain old I don't want to be doing my job anymore.
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  Speaker 3: So we want you to think about the future, but
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  Speaker 3: be flexible because unfortunately, we see a lot of people
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  Speaker 3: set goals, and you know, they'll set those goals that
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  Speaker 3: I want to work to sixty five and then retire
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  Speaker 3: from this one job, and you know a lot of
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  Speaker 3: things happen along the way, or we see the following
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  Speaker 3: cee jy Eric. My goal is just to get to
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  Speaker 3: two million dollars in a net worth and then once
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  Speaker 3: I'm there, I'll be happy. Well, what do you think happens?
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  Speaker 3: They get to the two million dollar net worth and
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  Speaker 3: they go, you know, I just feel like five more
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  Speaker 3: years that would really make me happy, maybe three million.
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  Speaker 3: We call this the goal posts are moving. You know,
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  Speaker 3: imagine being a football kicker and kicking and the goalpost
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  Speaker 3: moves out of the way before it gets there. That's
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  Speaker 3: kind of what it's like to be a retirement planner,
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  Speaker 3: by the way, because it's often hard. We are almost
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  Speaker 3: like hardwired as Americans to want more, more and more.
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  Speaker 3: So part of Our job is to help you think
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  Speaker 3: about the financial and the mental side of retirement and
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  Speaker 3: then help you to keep those goal posts stable so
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  Speaker 3: that you can move towards a secure future.
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  Speaker 1: Going to be some really good perspectives this week as
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  Speaker 1: we talk with our retirement planning professionals from Class Financial, CG.
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  Speaker 1: Loss In Eric Schwartz, don't forget if you've got a question,
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  Speaker 1: we'd love to have you join us this morning. Telphen,
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  Speaker 1: i'mber to get on the air six eight three two
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  Speaker 1: one thirteen ten. That's six oh eight three two one
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  Speaker 1: thirteen ten. You can learn more about Loss Financial on
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  Speaker 1: their website Class financial dot com. That's Class k l
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  Speaker 1: a A S Financial dot com. Telephonomer for the office
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  Speaker 1: right here in Madison six o eight four four two
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  Speaker 1: five six three seven. So, Eric, how important is it
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  Speaker 1: to figure out how much money you actually need?
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  Speaker 3: Well?
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  Speaker 4: I would say that that's the million dollar question here
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  Speaker 4: and probably the thing we struggle CG would probably agree
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  Speaker 4: the thing we struggle the most with and working with
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  Speaker 4: clients is helping them figure out how much they actually
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  Speaker 4: need in retirement. I don't know how many times I've
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  Speaker 4: had clients, you know, especially new clients come to me
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  Speaker 4: and say, well, I don't have a I don't have
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  Speaker 4: a budget. I just know I don't spend more than
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  Speaker 4: I make. I was like, well, that's a good spot
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  Speaker 4: to start, right, And so as people get close to retirement,
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  Speaker 4: it can feel kind of foreign to begin creating a
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  Speaker 4: line by line budget, but that's often what we what
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  Speaker 4: we need to do, not not that we need to be,
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  Speaker 4: you know, tracking we're We're not here to be checking
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  Speaker 4: where you spend your money and scolding you, but just
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  Speaker 4: understanding where your money is going so that we can
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  Speaker 4: make some plans going forward. Sometimes people will look at
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  Speaker 4: it as maybe I'll get a you know, if I
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  Speaker 4: have eighty percent of my income my pre retirement income,
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  Speaker 4: I'll be in good shape. But the fact is some
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  Speaker 4: people need ninety percent, some people need one hundred percent.
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  Speaker 4: Just depends on what you want to do in retirement.
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  Speaker 4: You know, if you want to travel more, right, you're
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  Speaker 4: going to hopefully have some more time than when you
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  Speaker 4: were working. So if you want to be traveling more,
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  Speaker 4: maybe a plan to downsize your home right, maybe moving
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  Speaker 4: to a cheaper area. All of these things are going
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  Speaker 4: to impact impact how much money you're going to need
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  Speaker 4: on a regular basis in retirement. So I think the
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  Speaker 4: most important thing is create kind of an initial understanding
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  Speaker 4: of what you're spending while you're working, and that is
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  Speaker 4: a really good jumping off point to begin looking at retirement.
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  Speaker 4: And don't forget about your healthcare expenses. Okay, so you're
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  Speaker 4: moving from likely having employer provided health insurance to maybe
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  Speaker 4: you're moving on to Medicare Part B and and you
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  Speaker 4: need to be thinking about deductibles and maybe even a
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  Speaker 4: Medicare Part D plan for for your drug coverage. All
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  Speaker 4: of these things are going to add up. And remembering
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  Speaker 4: your spend, your spending is not fixed. Okay, So we
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  Speaker 4: see this all the time. A lot of times people
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  Speaker 4: will will spend quite a bit more early in retirement
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  Speaker 4: and then kind of settle into a slower pace of
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  Speaker 4: life as they age. So so don't be as CJ
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  Speaker 4: said earlier, be flexible about these things and don't get
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  Speaker 4: don't get too wrapped up in, you know, making things
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  Speaker 4: super exact. But we I would say, more often than not,
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  Speaker 4: we see retirees spending more than they expected to pre retirement.
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  Speaker 1: That's interesting perspectives this morning, that is for sure. As
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  Speaker 1: we talked with Eric Schwartz and CJ. Claw of course,
• 10:00
  Speaker 1: our retirement planic professionals from COSS Financial. The website coss
• 10:04
  Speaker 1: financial dot com. That's coss k l aas Financial dot com.
• 10:08
  Speaker 1: Great website and resource to learn more about everyone at
• 10:10
  Speaker 1: COSS Financial of course, also different divisions of cost financial
• 10:14
  Speaker 1: how they can help you or if you're an employer
• 10:16
  Speaker 1: as well. Also an opportunity at class financial dot com
• 10:18
  Speaker 1: to sign up for the weekly Market Pulse newsletter that
• 10:21
  Speaker 1: available to you at COSS Financial. Their telephone number six
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  Speaker 1: oh eight four four two five six three seven. No
• 10:27
  Speaker 1: charge for that initial get to know you appointment at
• 10:29
  Speaker 1: Coss Financial. It will be complimentary to you again their
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  Speaker 1: number six oh eight four four two five six three seven.
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  Speaker 1: We'll continue our conversation with Eric and CJ. We'll talk
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  Speaker 1: about some some income sources. Also, it's kind of the
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  Speaker 1: importance of taking care of your health. Yeah, that's a
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  Speaker 1: vital part of enjoying retirement. We'll get the details from
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  Speaker 1: cgen Eric. We will do that next as Money in
• 10:51
  Speaker 1: Motion continues right here on thirteen ten wib A chatting
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  Speaker 1: this week with CJ. Class At Eric Schwartz. Of course,
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  Speaker 1: they are our retirement planning professionals, and they come to
• 11:12
  Speaker 1: us from Class Financial the website class financial dot com.
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  Speaker 1: That's Class k l AA Sfinancial dot com. Dee for
• 11:19
  Speaker 1: what number six oh eight four four two five six
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  Speaker 1: three seven. Don't forget no charge for that initial get
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  Speaker 1: to know your appointment tech loss Financial. It will be
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  Speaker 1: complementary to you again their number six oh eight four
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  Speaker 1: four two five six three seven talking about getting prepared
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  Speaker 1: for retirement. And there's many things to think about when
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  Speaker 1: it comes to retirement preparation. Obviously, financial aspects are very important.
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  Speaker 1: They always say money makes the world go round, and
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  Speaker 1: it's it's an important conversation and question I think for
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  Speaker 1: a lot of folks, kind of thing that they focus
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  Speaker 1: in on when it comes to retirement. And just before
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  Speaker 1: the we went to break there, Eric had mentioned that
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  Speaker 1: that retirees often will spend more than expected, especially early on.
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  Speaker 1: So let's talk about some income sources and making sure
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  Speaker 1: that you don't run out of money CJ.
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  Speaker 3: Yeah, exactly, Sean. So we're kind of going through a
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  Speaker 3: retirement readiness checklist here today and going through a number
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  Speaker 3: of different elements and I'm going to now talk about
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  Speaker 3: income streams. But Eric is correct, I mean We often
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  Speaker 3: find that early on in retirement is when you finally
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  Speaker 3: have the time, You're at home, and you're seeing all
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  Speaker 3: the problems with the house, right Like, Okay, finally I
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  Speaker 3: have the time, maybe the resources, and I'm sitting around
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  Speaker 3: my house and I'm seeing all the things that annoy me.
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  Speaker 3: And so often we see this kind of spike in
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  Speaker 3: early spending. Now Eric will attest that actually levels out
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  Speaker 3: quite a bit later on in retirement. We will even
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  Speaker 3: see a reduction in spending later on in life, although
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  Speaker 3: Fay I typically at the very end of life there's
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  Speaker 3: a spike, but that's because of you know, nursing, home
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  Speaker 3: expenses on and so forth. So here's one thing I
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  Speaker 3: want everybody to think about. Here's the blessing Thatck and
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  Speaker 3: I have in doing what we do. We get to
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  Speaker 3: retire thousands of times with our clients. That might sound odd,
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  Speaker 3: but let me repeat that. We get to retire thousands
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  Speaker 3: of times with our clients. We have people who are
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  Speaker 3: pre retirement, entering retirement, have been in retirement for five years,
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  Speaker 3: ten years, twenty years, and are ending retirement and life.
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  Speaker 3: Why does that matter? Because for Eric and I, this
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  Speaker 3: is not a concept planning for retirement is not a concept.
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  Speaker 3: We live it and breathe it every single day. We
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  Speaker 3: get to see what plans worked, what plans did not work.
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  Speaker 3: We get to see behavioral biases, investment biases, risk biases,
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  Speaker 3: and why this matters, because my goodness, we get this
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  Speaker 3: really really deep understanding of all the elements that impact
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  Speaker 3: your ability to be retired, stay retired, and live happy
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  Speaker 3: in retirement. Okay, without rambling out of the way, let's
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  Speaker 3: talk about these income streams. So obviously there there's income
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  Speaker 3: streams you need to think about in retirement. Number one
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  Speaker 3: for Americans would be Social Security. How much is that?
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  Speaker 3: When should you draw it? There's pensions, pensions for think
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  Speaker 3: of our state of Wisconsin employees the Department of Employee
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  Speaker 3: Trust funds pension. There's part time work, so we have
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  Speaker 3: a lot of people who, whether they need the money
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  Speaker 3: or not, just want to stay active in retirement. And
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  Speaker 3: then you know, you need to think about these elements
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  Speaker 3: of do I take soci Security at sixty two or
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  Speaker 3: my FRA or do I wait till seventy? And I
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  Speaker 3: heard that my spouse gets something off of my Social
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  Speaker 3: Security benefit if they don't have enough, And there's a
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  Speaker 3: lot to consider here. And then, of course, for the
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  Speaker 3: State of Wisconsin employees, do you know what pension claim
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  Speaker 3: option do I take? Eric? Do I take the single life?
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  Speaker 3: Do I take the the one hundred percent contingent, the
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  Speaker 3: fifty percent contingent, the ten year guaranteed. There's all these
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  Speaker 3: different claiming options and you need to understand the math
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  Speaker 3: behind it to make a good decision. And then obviously
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  Speaker 3: a good financial advisor, good retirement planner can help in
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  Speaker 3: in making these decisions because remember, most of these decisions
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  Speaker 3: become irrevocable within about you know, two to three months
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  Speaker 3: after you make them, so it's pretty important that you
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  Speaker 3: think about them carefully. And then, of course the big
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  Speaker 3: one that we get it very very involved in is
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  Speaker 3: will my like portfolio? So what we call your net
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  Speaker 3: worth spending? Will your net worth spending last you the
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  Speaker 3: rest of your life? Said another way, do I have
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  Speaker 3: enough money saved and set aside to not run out?
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  Speaker 3: And everybody, if I can give you any insights on this,
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  Speaker 3: it is a lot more complicated than you actually think.
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  Speaker 3: Because we have people who have been blessed to work
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  Speaker 3: for the State of Wisconsin, who have great social security incomes,
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  Speaker 3: who get to retirement and they come into our office
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  Speaker 3: and they say, do I have enough? I don't think
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  Speaker 3: I've saved enough. And Eric and I run the math
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  Speaker 3: and we go, you don't need your investments at all.
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  Speaker 3: Your pensions in social Security are one hundred and twenty
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  Speaker 3: percent of what you spend per year. So not only
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  Speaker 3: have you saved enough, you've way over saved. You see
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  Speaker 3: my point? And then we see the opposite where people
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  Speaker 3: come in and they go, I'm good, I'm good. I've
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  Speaker 3: got a pension in Social Security. I'm not worried about it.
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  Speaker 3: And we go, yeah, but that's like fifty percent of
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  Speaker 3: your need. The rest is going to have to come
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  Speaker 3: from your net worth, and you haven't saved enough. You
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  Speaker 3: get the idea. It is way more complicated. And the
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  Speaker 3: reason it's more complicated because it's not a dollar amount.
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  Speaker 3: You all remember those commercials that would come on in
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  Speaker 3: the TV like what's your number? I think it was
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  Speaker 3: from Voya. People would be walking around the streets with
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  Speaker 3: a number of how much they needed to save. What
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  Speaker 3: I'd say to you is that can be really tricky,
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  Speaker 3: really really tricky to focus on a number. I'm not
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  Speaker 3: saying it doesn't have a purpose. I'm just saying it's
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  Speaker 3: tricky because one person might need zero saved because they've
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  Speaker 3: got so much in pensions in social security, and another
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  Speaker 3: person might need eight million and they could be living
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  Speaker 3: the exact same lifestyle. But it just depends on these
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  Speaker 3: guaranteed income sources. Now I do realize we're on the radio.
• 17:08
  Speaker 3: I might be confusing some people. I would just encourage
• 17:11
  Speaker 3: you planning for retirement. Knowing how much you need to
• 17:14
  Speaker 3: save is a lot more complicated than just a number
• 17:17
  Speaker 3: you walk around with.
• 17:18
  Speaker 1: And that's as as we talk each week with a
• 17:21
  Speaker 1: Retirement Planet professionals from Coss Financial. That's one of the
• 17:23
  Speaker 1: great things about Coss Financial is starting that conversation to.
• 17:26
  Speaker 2: Make it really easy to do.
• 17:28
  Speaker 1: All I got to just pick up phone, gave a
• 17:29
  Speaker 1: call six soh eight four four two five six three seven.
• 17:32
  Speaker 1: Don't forget that initial gets no appoyment. That conversation is
• 17:35
  Speaker 1: not going to cost you a thing. Their tel for
• 17:36
  Speaker 1: number six O eight four four two five six three seven.
• 17:39
  Speaker 1: The website cossfinancial dot com. That's Coss k l aa
• 17:43
  Speaker 1: S financial dot com.
• 17:45
  Speaker 2: I know we have to talk about it.
• 17:47
  Speaker 1: It's one of those things that I think there's inevitable.
• 17:49
  Speaker 1: But taxes, let's talk about taxes and the effect that
• 17:52
  Speaker 1: they can have on your on your retirement income.
• 17:56
  Speaker 4: That's that's absolutely true, Sean, It's it's always going to
• 17:59
  Speaker 4: be the So for for just let's do just a
• 18:02
  Speaker 4: quick kind of rundown of tax related items we want
• 18:06
  Speaker 4: we want to be thinking about as it relates to
• 18:08
  Speaker 4: the retirement checklist here. So for for a lot of folks,
• 18:12
  Speaker 4: as they move into retirement, they'll have different what we
• 18:15
  Speaker 4: would call like tax buckets, so different basically thinking of
• 18:20
  Speaker 4: your your investments or your savings based on how they
• 18:23
  Speaker 4: will be taxed. So, for example, you could have tax
• 18:27
  Speaker 4: deferred dollars, right, these are probably the most common retirement
• 18:31
  Speaker 4: assets where you've you've contributed funds before tax and they've
• 18:37
  Speaker 4: grown tax deferred. So that went so that when you
• 18:40
  Speaker 4: draw the dollars out there fully taxable to you, you
• 18:44
  Speaker 4: may then also have taxable or we might even call
• 18:47
  Speaker 4: these non retirement accounts. So I mean, you could be
• 18:51
  Speaker 4: thinking of something as simple as a savings account, an
• 18:54
  Speaker 4: investment account, but dollars that are maybe mostly already taxed,
• 19:00
  Speaker 4: but you know, maybe there's some interest income or some
• 19:03
  Speaker 4: some unrealized capital gains, so more tax efficient than the
• 19:07
  Speaker 4: tax deferred assets, but still not fully tax free. And
• 19:11
  Speaker 4: then finally we would have our WROTH assets. And listeners
• 19:14
  Speaker 4: have heard us talk about these different types before, but
• 19:18
  Speaker 4: WROTH dollars are dollars you've put in after taxes and
• 19:22
  Speaker 4: then the benefit of that is they grow tax free.
• 19:25
  Speaker 4: So distributions from WROTH accounts would be would be fully
• 19:28
  Speaker 4: tax free. Now why why am I explaining these Because
• 19:32
  Speaker 4: it matters which order in which combination of these different
• 19:38
  Speaker 4: tax buckets you use to create income. Right, because if
• 19:42
  Speaker 4: we're in retirement, we're looking at for some well for
• 19:48
  Speaker 4: a lot of folks, I guess you could say, hopefully
• 19:50
  Speaker 4: they're a lower tax bracket than when they were working,
• 19:53
  Speaker 4: and we have more flexibility because we're not. We're not.
• 19:57
  Speaker 4: It's not a matter of okay, you get paid your
• 19:59
  Speaker 4: your salary, and that's that we get to decide when
• 20:03
  Speaker 4: and where you draw from each of these types of accounts.
• 20:06
  Speaker 4: So you can imagine, if you're taking all of your
• 20:09
  Speaker 4: income from the tax deferred bucket, well, you're probably going
• 20:12
  Speaker 4: to be in a higher tax bracket than if, for example,
• 20:15
  Speaker 4: you did maybe a combination of tax deferred and maybe
• 20:19
  Speaker 4: some distributions from non retirement accounts. So you want to
• 20:23
  Speaker 4: think about, you know, how you're going to be what
• 20:26
  Speaker 4: what order, and what combination of these you're going to
• 20:28
  Speaker 4: be using to create your income. And you also want
• 20:31
  Speaker 4: to think about how you're investing your dollars in each
• 20:36
  Speaker 4: of those three different buckets, because if, for example, you
• 20:41
  Speaker 4: are you're not planning to use your WROTH dollars for
• 20:44
  Speaker 4: a while, you might invest those more aggressively because they
• 20:47
  Speaker 4: have a longer time horizon and they grow tax free.
• 20:51
  Speaker 4: So we'd love to we'd love to concentrate some growth
• 20:53
  Speaker 4: in those in those WROTH buckets, and we want to
• 20:56
  Speaker 4: bring this into the discussion about the order in which
• 21:00
  Speaker 4: you're drawing dollars out of these accounts. You're also going
• 21:03
  Speaker 4: to need to think about required minimum distributions, so we
• 21:07
  Speaker 4: talked about that quite a bit last week. You're going
• 21:10
  Speaker 4: to be wanting to think about how your your taxable
• 21:13
  Speaker 4: income impacts your Medicare premiums, because if your income exceeds
• 21:17
  Speaker 4: certain thresholds, you can actually pay it temporarily higher Medicare premiums.
• 21:22
  Speaker 4: And you want to you want to think about uh,
• 21:25
  Speaker 4: your taxable income as it relates to how much of
• 21:28
  Speaker 4: your Social Security benefits gets gets taxed, because the amount
• 21:34
  Speaker 4: of your Social Security tax or your Social Security benefit
• 21:37
  Speaker 4: that gets taxed at the federal level is a function
• 21:41
  Speaker 4: of your of of your total income that you're earning
• 21:45
  Speaker 4: throughout the year. So these are a lot of things
• 21:47
  Speaker 4: to juggle. As always be encouraged folks to to seek
• 21:52
  Speaker 4: out professional advice because in many cases we do. We
• 21:55
  Speaker 4: do think it's absolutely worth it. And the last thing
• 21:59
  Speaker 4: I'll say here on the tax management side is if
• 22:02
  Speaker 4: you are retiring early, that's an opportunity for you to
• 22:07
  Speaker 4: consider some what we might call it a more advanced
• 22:10
  Speaker 4: tax strategy like WROTH conversions, which involves moving dollars from
• 22:14
  Speaker 4: your tax deferred bucket to your WROTH bucket earlier on
• 22:20
  Speaker 4: so that you can you can reduce those required minimum
• 22:24
  Speaker 4: distributions later and increase your tax free growth bucket. So
• 22:29
  Speaker 4: I would say that's kind of a really high level
• 22:32
  Speaker 4: rundown of what we're looking at on the tax management side.
• 22:37
  Speaker 4: And then just some kind of final checklist items here.
• 22:41
  Speaker 4: If you're retiring before sixty five, we've talked on the
• 22:43
  Speaker 4: show before Medicare starts at sixty five prior to that
• 22:47
  Speaker 4: if you are if you are retired, we need to
• 22:49
  Speaker 4: be thinking about getting health insurance for you and or
• 22:54
  Speaker 4: your spouse and maybe even some children that are not
• 22:57
  Speaker 4: adults yet. So we need to be thinking about where
• 23:00
  Speaker 4: you're going to get health insurance, whether that's you know,
• 23:02
  Speaker 4: Cobra or through the health insurance exchange, or maybe your
• 23:06
  Speaker 4: employer offers some type of benefit, so that it's something
• 23:09
  Speaker 4: to think about. We want to think about eliminating debt
• 23:12
  Speaker 4: as much as possible by the time you get to retirement.
• 23:15
  Speaker 4: The less debt you have, the lower your monthly expenses
• 23:20
  Speaker 4: and the less income you need to create to fund
• 23:23
  Speaker 4: your lifestyle. And we want to be thinking about making
• 23:26
  Speaker 4: sure our estate plans are up to date and in order.
• 23:30
  Speaker 4: And finally, we want to make sure that we've fully
• 23:32
  Speaker 4: funded that emergency fund prior to retirement.
• 23:35
  Speaker 1: A lot of items there and of course very important
• 23:37
  Speaker 1: items that you want to make sure that you're working
• 23:39
  Speaker 1: through each of them. And of course we talk with
• 23:41
  Speaker 1: the retirement planning professionals from Class Financial. They'd love to
• 23:44
  Speaker 1: talk to you, they'd love to work with you, and
• 23:45
  Speaker 1: they make it real easy to do. All I got
• 23:47
  Speaker 1: to just pick a phone, gimme a call six oh
• 23:48
  Speaker 1: eight four four two five six three seven. No charge
• 23:52
  Speaker 1: for that. Initial'll get to know you appointment ach Coss Financial.
• 23:54
  Speaker 1: It will be complimentary to you. Again, they're telephone number
• 23:57
  Speaker 1: six oh eight four four two five six three seven.
• 24:00
  Speaker 1: We'll do the class quiz question leak. We'll also talk
• 24:02
  Speaker 1: about the importance of health in retirement. We'll get those
• 24:05
  Speaker 1: details next. As Money in Motion with Class Financial continues
• 24:08
  Speaker 1: right here. I'm thirteen ten WIVA talking with our retirement
• 24:19
  Speaker 1: planning professionals CJ. Closs and Eric Schwartz. Of course they
• 24:22
  Speaker 1: come to us from Class Financial, the website colss financial
• 24:25
  Speaker 1: dot com. That's Class k l aas financial dot com.
• 24:28
  Speaker 1: Talking this week about really getting ready and preparing for
• 24:32
  Speaker 1: retirement to things think about not just your wallet, but
• 24:35
  Speaker 1: also your mind and body, and that brings us uh,
• 24:38
  Speaker 1: that kind of the the we got through the financial part,
• 24:41
  Speaker 1: let's talk about the importance of taking care of our
• 24:44
  Speaker 1: health as well.
• 24:45
  Speaker 2: CJ.
• 24:47
  Speaker 3: Yeah, exactly, Sean. So it's easy to get caught up
• 24:49
  Speaker 3: in the numbers, but your health is your greatest asset.
• 24:53
  Speaker 3: So think of it this way. Your financial wealth and
• 24:56
  Speaker 3: your physical health are like two sides of the same coin.
• 25:01
  Speaker 3: You can't truly enjoy one without the other. So again
• 25:05
  Speaker 3: people come to us for the quantitative side of retirement planning,
• 25:07
  Speaker 3: and by the way, that is certainly very important. You
• 25:10
  Speaker 3: would hate to rush into retirement focusing only on the
• 25:13
  Speaker 3: health side of things, only to find out that you
• 25:15
  Speaker 3: don't have any money to live off of. But they
• 25:18
  Speaker 3: are the same coin. You have to flip those sides
• 25:21
  Speaker 3: over and recognize if I've got all the money in
• 25:24
  Speaker 3: the world but no ability to use it or enjoy it,
• 25:28
  Speaker 3: then it doesn't do you a lot of good. So
• 25:30
  Speaker 3: think of health as a foundation. Imagine having a perfectly
• 25:34
  Speaker 3: crafted retirement plan, but you're constantly battling health issues. That
• 25:38
  Speaker 3: is again not the retirement retirement dreams that you probably
• 25:43
  Speaker 3: had early on. And just like you wouldn't want to
• 25:45
  Speaker 3: build a house on a shaky foundation, you do not
• 25:48
  Speaker 3: want to build your retirement on shaky health. So start
• 25:52
  Speaker 3: thinking about simple things like am I actually working my
• 25:57
  Speaker 3: body out so that when I get to retire minute
• 26:00
  Speaker 3: sixty five or sixty seven or sixty two, whatever it
• 26:02
  Speaker 3: might be, that I will have the physical health to
• 26:07
  Speaker 3: go travel, to do the things that I want to do,
• 26:09
  Speaker 3: to play with my grandchildren, whatever it might be. So
• 26:13
  Speaker 3: some proactive health habits to think about as again, developing
• 26:16
  Speaker 3: a good diet, running exercise, scheduling checkups, and screening with
• 26:21
  Speaker 3: your doctor for early detection in case you do have
• 26:24
  Speaker 3: any issues going on. And then even mental health awareness,
• 26:28
  Speaker 3: so not only just kind of working with counselors as
• 26:32
  Speaker 3: you need to, but beyond that is also actually exercising
• 26:36
  Speaker 3: your mind. One thing that Eric and I see happen
• 26:39
  Speaker 3: as people retire, if they don't retire to something, is
• 26:43
  Speaker 3: that often their mind really slows down. Now this can
• 26:46
  Speaker 3: be actually cognit you diagnosed cognitive decline, but it's not
• 26:52
  Speaker 3: always that. Sometimes it's just I'll call it mental laziness
• 26:56
  Speaker 3: where you're not having to think critically about things anymore.
• 27:00
  Speaker 3: It's for a good reason. Many times people are tired
• 27:02
  Speaker 3: of having you think critically, so they get to retirement
• 27:04
  Speaker 3: and they just want to slow down. But that slow
• 27:07
  Speaker 3: down can cause your brain to actually lose some of
• 27:11
  Speaker 3: its stimulus and struggle to recall information or to even
• 27:15
  Speaker 3: be engaged. So you know, think of health as a
• 27:19
  Speaker 3: lifestyle and aligning your health and wealth are are really
• 27:23
  Speaker 3: important factors to consider.
• 27:24
  Speaker 2: Talking this morning with CJ. Closs, and Eric Schwartz.
• 27:26
  Speaker 1: They are our retirement planning professionals from Class Financial.
• 27:30
  Speaker 2: Great program.
• 27:30
  Speaker 1: As always, if you missed any part of the show,
• 27:32
  Speaker 1: don't forget, can listen back class Financial dot com.
• 27:35
  Speaker 2: That's COSS k l a A S.
• 27:37
  Speaker 1: Financial dot com. Del for number six oh eight four
• 27:39
  Speaker 1: four two five six three seven.
• 27:41
  Speaker 2: Don't forget.
• 27:42
  Speaker 1: No charge for that initial get to know your appointment
• 27:43
  Speaker 1: at COSS Financial. It will be complimentary to you again
• 27:46
  Speaker 1: their number six oh eight four four two five six
• 27:49
  Speaker 1: three seven. You want to hold on to that telephone
• 27:51
  Speaker 1: number as well. It's time now for the Coss Quiz
• 27:53
  Speaker 1: Question of the Week. Works like this. In just a moment,
• 27:55
  Speaker 1: I'll ask you the class Quiz question of the week.
• 27:57
  Speaker 1: You'll then have thirty minutes from the ener today's program
• 27:59
  Speaker 1: to call the Claws Financial office right here in Madison
• 28:02
  Speaker 1: at six oh eight four four two five six three seven.
• 28:05
  Speaker 1: If you are the first call with the correct answer,
• 28:07
  Speaker 1: you'll win this week's prize, which is a twenty five
• 28:09
  Speaker 1: dollars gift card to Chewy. This week's class Quiz question
• 28:12
  Speaker 1: of the week is this true or false? In twenty
• 28:16
  Speaker 1: twenty five, we will see the highest number of Americans
• 28:20
  Speaker 1: reaching the traditional retirement age of sixty five. Is that
• 28:24
  Speaker 1: true or is that false? Telephone number six oh eight
• 28:26
  Speaker 1: four four two five six three seven, first call, correct answer,
• 28:29
  Speaker 1: win the twenty five dollars gift card to Chewy. And
• 28:31
  Speaker 1: again that's Class Financial office right here in Madison, CJ.
• 28:35
  Speaker 2: Eric.
• 28:35
  Speaker 1: It's always great chatting with both of you guys. You
• 28:37
  Speaker 1: enjoy this beautiful weather and looking forward to uh, looking
• 28:40
  Speaker 1: forward to the great summer and seasons ahead.
• 28:43
  Speaker 2: So you guys to have a great day.
• 28:45
  Speaker 4: Thanks Sean, Thanks Sean.
• 28:46
  Speaker 1: Take care guys. Doctor Marty Greer comes your way next year.
• 28:49
  Speaker 1: On thirteen ten WIVA, This is Money in Motion with
• 28:52
  Speaker 1: COSS Financial Asset Advisors, LLC, a registered investment advisor registered
• 28:57
  Speaker 1: with the SEC. The contents of this show are for
• 29:00
  Speaker 1: informational purposes only and should not be considered individual investment advice.
• 29:05
  Speaker 1: Class Financial does not offer tax or legal advice. Any
• 29:08
  Speaker 1: opinion offered during the course of this show is the
• 29:11
  Speaker 1: opinion of that particular investment advisor representative and not necessarily
• 29:16
  Speaker 1: the opinion of Class Financial. News comes your way next
• 29:19
  Speaker 1: right here. On thirteen ten, WIBA