Latest / WCHS Network Podcasts / 05-13-2024 Retire Right Radio with John Burdette from Fourth Avenue Financial

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05-13-2024 Retire Right Radio with John Burdette from Fourth Avenue Financial · WCHS Network Podcasts

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John Verdead at Fourth Avenue Financial that aims to answer your questions about financial planning,
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investing, and how to retire right. Fourth Avenue Financial is located in
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On Retire Right Radio, Let's go live to the studio with host Dale Cooper
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and John Verdet from Fourth Avenue Financial aides God every pleasant Monday morning to you.
1:03
You're listening to the voy Charles and five adw CHS a beauty, full
1:07
Monday morning as you're driving into work this morning, it's just to be a
1:11
nice day today, sunny and clear, high in the low eighties, and
1:15
so it's going to be a beautiful Monday today. Good way to kick off
1:18
the week. And we're going to kick off week as we always do right
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here on five ad w c HS at eight twenty. It is John Burdett
1:23
from Fourth Avenue Financial. We're going to talk about how you can retire right
1:26
this morning. John is joining me from a remote location this morning. John,
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Good morning. How you doing this morning? Okay, pretty good?
1:32
Fourth Avenue Financial South, the southern division of Fourth Avenue Financial. That's right.
1:38
Although it sounds like the weather there it's about the same as here.
1:42
Yeah, Now that is true. Every once in a while, it sneaks
1:44
up when you're like at where we get some pretty nice weather here, but
1:48
you can't really beat what's going on in Florida right now. But that's okay,
1:49
there's nothing wrong with that. We're going to be talking this morning about
1:53
all kinds of things, including how you can retire right We're going to take
1:56
a look at some smart things that you can do when you're looking to to
2:00
retire, how you can retire, make money work for you. We're also
2:02
going to take a little look into what happened with the market last week.
2:05
If you have any questions though for John, you can get them in now.
2:07
You can text over your questions with three zero four non three five five
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zero zero eight three zero four non three five five zero zero eight. You
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can also text over your questions or that is your text number. You can
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call three zero four three four five fifty eight fifty eight. Three zero four,
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three four five fifty eight fifty eight is the number you can call as
2:22
always to get on with a jenbre Debt for Fourth Avenue Financial. John.
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We always start this program by taking a look back at what's been happening and
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how the market looks right now. We've had such an interesting run over these
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years, and it seems good bad, good bad, But it's never really
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all that much on the teeter totter. It seems to only move a little
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bit either way. Like it's like there's a few things that are a little
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bit wonky that's really good this week. So now we have now we have
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some numbers that have been coming out and we're talking about how I guess September's
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the new June. As far as like maybe some rate reductions and stuff like
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that goes, Oh yeah, I mean, they've certainly been pushed back with
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some of the hot numbers coming in on inflation and even the jobs numbers coming
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in surprisingly strong. There's still an expectation out there that we'll get a couple
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of rate cuts this year. The markets have performed very, very well over
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the last month and a half or so after we had a little soft patch.
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You know, it's it's kind of come back to We're not quite back
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at the record highs, but we're getting getting pretty close. And a lot
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of that's really been driven by earnings. That ultimately is what moves stock prices
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forward. Not so much you know, what the interest rates are, that
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sort of thing. It's do the companies that you own, are they profitable,
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do they make money? Or are their earnings growing? And that's been
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the case. It looks like earnings this year are on track to be up
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about ten percent corporate earnings, So that's uh, that's pretty strong and stronger
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than was expected, you know as we were coming into the year. So
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the stock prices ultimately follow earnings. That's why you buy a company you wanted
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to make make money, and uh, you know, it doesn't happen in
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a straight line all the time. There's all there's disparities in you know,
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when the stock price boos versus earnings, but generally if you look at it,
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they're going to follow the earnings over time. It's amazing to me that.
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And of course there's so much stuff that goes out here and in the
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different industries, and and uh, depending on what your your commerce is,
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you you're you're trying to get people in your door, You're trying to get
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people to order from you online, You're trying to get clicks, whatever it
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might be. And there's been so much talk about the tech industries and automated
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driving or the the AI, different things like that that's been kind of leading
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the sectors in the last the last couple of years. You even got the
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you know, the new space race and stuff. You know, there's all
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kinds of things that are going on. Sure, one story that I've noticed
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creeping up a lot in my various financial feeds and industry feeds and different things
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like that over the last few weeks. It seems like that because ultimately they
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make money and it's all about consumer sentiment and things like that. It looks
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like there's a little bit of a backlash against like fast food restaurants and stuff.
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Maybe not necessarily at the at the bottom line with earnings calls, but
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as far as like consumer sentiment and stuff like that, prices are getting too
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Hi, what are we doing here? It seems like a lot of the
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fast food places are starting to try to come out with special deals and things
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like that to try to get people to come back or to not complain about
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the hot prices so much. And what we're watching in real time is response
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to consumer sentimentality. Yeah, no doubt about it. And I think the
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big one last week was McDonald's, I believes, trying to come out with
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a five dollars meal, and of course some of the franchisees are fighting that
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because they're worried that that will cut in the profitability, particularly those on the
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West coast where you have the what is a twenty dollars minimum wage or something.
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Uh and uh, you know, so there is some pushback from the
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some some of the franchisees. But but yes, I mean that the companies
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are trying to h you know, offer solutions to keep their their traffic ups
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as prices have risen, and it'll be interesting to see how that all that
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all plays out. Uh, you know, the dollar menu turned to the
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two dollar menu turned to the there's no value menu. Yeah, it's interesting.
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The last one that I was reading U reading about it, it was
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making the great point and this is something my wife and I have talked about
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a lot, is uh, if you have the time, you can get
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out of going to like a mid entry, a mid level sit down restaurant
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like a you know, like a Chili's or something like that. You can
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get out of one of those places if you're not going crazy on like apps
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and stuff like that, meal wise, for about as much as you can
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get out of a fast food place anymore. So, Yeah, it's the
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cost is no longer really where the benefit is. And I just thought it
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was interesting that these separate although they're both in the food industry, they never
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necessarily overlapped all that much. You know, they had some overlap when when
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on food things, but now they're competing almost exclusively for the same uh uh,
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same customers. You know, they're they're playing in the same space because
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of the price redistributions of things that's happened over the last few years. Yeah,
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I mean, you know, and some companies play that, uh you
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know better than others. Uh. A couple of months ago, I saw
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an article I believe it was Red Lobster. They were having financial troubles.
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They had offered these meals that all you can eat meals and things like that,
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and then people took them up on the on the deal and they actually,
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uh you know, are offering too much value and they and they lost
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money. So uh uh you know, it's it's a uh you know,
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balancing act. All these companies have to figure out how to manage themselves through
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and and uh be profitable, it would be yet still attract the customers that
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they want. We're going to take a break here in a few minutes,
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and when we come back, we're going to talk more about we want to
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kind of reset the reset the scope just a little bit. We're going to
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approach the conversation in the second half of the show, go over some of
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the basics, some of the things that maybe we haven't talked about for a
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while, ask some questions from the perspective of folks that are maybe looking to
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bolster their retirement or to get into to saving properly, and if you've never
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strategized over it on what your retirement age should be, how much money you
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should be saving, what you're looking for. We want to cover all of
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those topics and more a little bit later on in the program. So once
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again, if if you need to get started, or if you have some
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questions about this, or you've been waiting for us to get back to kind
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of the beginning and you wasn't sure if you could ask that question, By
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the way, you always can. Whatever question you want to ask, you
8:45
can ask us here on this program, but you can send in your questions
8:46
to John at three zero four nine three five five zero zero eight on text,
8:50
or you can give us a call at three zero four three four five
8:52
fifty eight fifty eight three zero four three four five fifty eight fifty eight that
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they'll be just after the break that's coming up here in just a couple of
8:58
minutes. The what are we looking for as far as the next kind of
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benchmarks we're looking to fall when it comes to kind of a praising where the
9:09
economy stands, what's likely to happen as far as where the market reacts off
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of that. I know we're mostly just in earning seasons right now. Is
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it just more earnings that's going to be coming in, Well, I mean
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we're getting towards the tail of that. But this week the biggie is the
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CPI, the consumer price index, the read on inflation, comes out this
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week, so the market really will be looking at that. And then of
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course the last few have come in higher than expected, and the hope is
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that this one we resume the downward trajectory that we had on the inflation rate
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in real time as things like this over the last few years inflation, we've
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had inflation creeping, different things like that that's happened to us. And I'll
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use this more or less to get us out to the break and we'll come
9:58
back and ask the questions because it will kind of play into a lot of
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those. But in real time, how do you how do you make realcity?
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Uh? What strategies should you consider as a person out there, you
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know you've been trying to to uh uh to uh put the proper amount of
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money into your into your savings. You have enough for your for your for
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your wants. You're putting stuff away for your needs you're investing for your retirement,
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you're doing different things, but when inflation creeps up on you and costs
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of things change, it could really change your budgetary outlooks. Suddenly your money
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for once doesn't go so far, your money for needs doesn't go so far.
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You still want to invest the same amount of money. What kind of
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appraisal should you look at a situation where maybe your income has been stagnant,
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but you've seen the inflation come up around you. Yeah, and and that's
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that's the real problem with inflation. If you're not keeping up with it,
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it's uh, it is going to pinch you. And and it is especially
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difficult for a retiree, for instance, to keep up with inflation because pension
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things like that are pretty much fixed, so they don't they don't rise.
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So you have to have really other types of assets that have the opportunity to
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keep up with the with the rising prices, and and historically ownership of stocks
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will do that over time. When you think about it, logically, if
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the companies that are producing those goods and services that are inflating, you know,
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if you own those, you're you're generally going to keep up with that.
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And I think that's the uh, that's the long term key to keep
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up with inflation. Short term, you just got to watch your budgets smart
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if if if you're not having rising wages, you're going to have to readjust
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some things or it will eat into your ability to save or even even your
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savings. Which there again that gets back to the fundamental that we always talk
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about as managing the dollars that come in and go out. It just makes
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that job more difficult and you have to make more more choices you can keep
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you know, the ratio of savings that you need to achieve your goals,
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and that's that's a constant moving number. And that's another great example of a
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reason why you might want to call on fourth Avenue financial or financial advisor,
12:13
someone that can professionally give you this advice because just because number one, just
12:18
because you're in retirement, doesn't mean things are over. You may still need
12:22
help with your portfolio, getting things balanced out, getting the most out of
12:24
it, finding the right resolution to where you're going. And certainly if you're
12:28
building up to that point, if it's something that you're worried about, you're
12:31
not a professional in these in these in these matters so why not rely on
12:35
somebody who is that can help you get through these things? And that's why
12:37
John and fourth Avenue, if financial can help you one retiring right, let
12:41
me get you the information out there. Three zero four seven four six seven
12:46
on seven seven is the phone number three zero four seven four six seven on
12:48
seven seven one line ups fourth Avenue, Financial dot commun spell out the whole
12:52
thing. You can do that same search on Facebook and like the page over
12:54
there located one seventy Court Street, downtown Charleston. It's one seventy Court Street,
12:58
downtown Charleston, right across from the town Center mall. And the last
13:01
question that I have way John, before we get out to break and this
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again kind of plays into someone who maybe is already in retirement and they're looking
13:09
at maybe inflation have has gotten the better of them a little bit, and
13:13
you hear about people maybe having to go back to work to help out there
13:16
in retirement. Is there such a thing as working towards a principle if something
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like that happens. In other words, you're not necessarily working to make ends
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meet on a monthly basis, but you now know that you have a new
13:28
goal that you need to meet to still be comfortable as far as the principle
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that you're working off of for your investments. Can somebody get back in and
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say, Okay, I need to work for eighteen more months and save X
13:39
amount more money to bolster up my retirement and then I can basically re retire
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or get rid of my part time job or whatever it might be. Sure,
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sure, yeah. I mean a lot of people you know do work
13:52
in retirement to some degree. Sometimes it's for an economic needs, sometimes it's
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for you know, feeling like you have a purpose. So you know,
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everybody's different on that, but certainly, the more money you set aside,
14:07
particularly if it's in ownership of companies, you're going to have a better shot
14:13
at keeping up with inflation. And one of the risks that and it's just
14:18
a psychological thing. When you reach the retirement your your initial thought is I
14:26
have to protect everything. If you protect everything, you put everything in fixed
14:31
investments and believing that you're being cautious and prudent and safe. The act of
14:39
doing that actually sets you up with more risk because now you have no ability
14:46
to keep up with those rising costs over time. Those fixed investments will not
14:50
do that. You know ownership of companies. You have to have a portion
14:56
of your of your portfolio in the right investments to It has to be those
15:01
long term growth tools to keep up with inflation, the short term safety tools
15:07
that that you know you almost feel compelled to go into at retirement. And
15:11
it's not I'm not saying you don't have summon money in those type of tools,
15:16
but those aren't going to solve all your problems. It's it's it's a
15:20
feel good that that make it. They should feel good, but it's not
15:24
addressing the long term need that you're going to have in retirement. Great information
15:28
as always with John Burdett from Fourth Avenue Financial once again online Fourth Avenue Financial
15:31
dot com. They're fun number three zero four seven four six seven on seven
15:35
seven. You can give us a call this morning at three zero four three
15:37
four five fifty to fifty. We're gonna take commercial break right now, come
15:39
back. Have plenty of questions for John that we're going to approach from various
15:43
aspects of financial planning, but we're going to kind of start at the beginning
15:48
and work our way forward on some strategies and thoughts that you should keep in
15:50
mind. This is a great opportunity for you to call in if you have
15:54
any questions about any any step along the process on how you can retire right.
15:58
You can ask John a quest question this morning right now three zero four,
16:02
three four five fifty to fifty eight three zero four, three four five
16:03
fifty eight fifty eight. You can text three zero four none three five five
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zero zero eight. Will go in and take a break and be back right
16:10
after this with John Bredet from Fourth Avenue Financial. I'mdel Cooper. You're listening
16:12
to Retire Right Radio on five eight wc HS, the voice of Charleston.
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Retire Right Radio is sponsored by Fourth Avenue Financial, which is solar responsible for
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its content. Security is offered through jw CALL Financial member Fenricipic. Investment advice
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offered through JW CO Advisors. Fourth Avenue Financial. Jw CL Financial and JW
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CO Advisors are unaffiliated entities. The opinions expressed by John Bredet should not be
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construed as specific investment, legal, or tax advice. All economic and performance
16:37
information is historical and not indicative of future results. Investing may involve risk of
16:41
loss of principle. Any tax advice on this show is not intended to be
16:45
used by any person for the purpose of avoiding US federal or state tax penalties
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that may be imposed on such a person, and each listener should seek advice
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from their tax advisor or legal console on topics that arise from the show.
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John Burdett is not providing legal or tax advice. Nothing should be construed as
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solicitation of an offer to buy securities. This program is sponsored by Fourth Avenue
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This is Retire Right Radio with John Burdett from Fourth Avenue Financial, taking your
18:23
calls at three oh four three four five fifty eight fifty eight or text on
18:29
three oh four nine three five fifty oh eight. It's twenty minutes until the
18:37
top of your might get nineteen minutes until the hour. The host agency hs
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an build Supervisiitive some a brand with John dubin fourth at one location this morning
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from fourth Avenue Financial South in the sunny state of Florida. This morning,
18:52
John's coming to us. You can give us a call at three zero four
18:53
three four five fifty eight fifty eight. Three zero four, three four five
18:56
fifty eight fifty eight is a good number you can get ahold of us this
19:00
morning. Ask John any question you have about how you can retire right.
19:03
You can also text over any questions you have to three zero four non three
19:07
five five zero zero eight. John, I think that we've been doing this
19:11
show for so long and every so often we'd like to go back and take
19:14
a look at things from the beginning perspective, you know, the questions that
19:18
you need to ask to start with when when planning for your retirement, and
19:21
just some questions that it's really easy sometimes to skip over the fundamentals sometimes when
19:26
you're looking to make an impact. So I thought that sharing some of the
19:30
information that you that you sent me over night would be a good place to
19:33
restart with some of these things. Okay, sounds good, So let's start
19:37
with maybe what it's probably the first question you should ask yourself what your plans
19:41
are as far as your ideal retirement age? How do you figure it out?
19:45
I mean, we know what the steps are as far as when you
19:48
can get fully vested into retirement, but how do you figure out for an
19:51
individual? How do you find out what your good retirement age is? Yeah,
19:56
and of course that number is a number specif to the individual, and
20:00
what your individual goals are. Some people want to get out of working as
20:06
soon as possible, and others enjoy what they do and plan to, you
20:11
know, to work for as long as it's physically possible, so you know,
20:15
you have that to work around. You know, financially, you have
20:21
to be able to pay for retirement, whatever the number is, your ideal
20:26
age is. So that's something to look at. But I think oftentimes what's
20:30
overlooked is what does the next chapter look like? If you just simply quit
20:37
working and don't have a plan for the for the next phase of your life.
20:45
Quite frankly, you know, that can bring on some depression. You
20:49
know, you need to think about not just the finances, but what am
20:55
I going to do with my time? How am I going to spend it?
20:56
How am I going to feel productive and and and develop a purpose outside
21:03
of work? And many people you know have that and and and and have
21:10
outside connections from work. But uh, it's something to think about because that
21:15
goes into having a long and happy retirement. You know, you have to
21:21
feel still still like you have a purpose. That's an interesting point. And
21:25
a couple of weeks ago, I was part of a conversation that was that
21:27
I wasn't the primary participant in, but I was listening and contributing some to
21:32
a conversation between two family members of father and a son, and uh,
21:36
the father was talking about something he was called he called board spending to his
21:40
to his kid, and it really it kind of, uh, it kind
21:44
of settled into my mind a little bit because I thought that it's a pretty
21:48
pretty uh stark description of something. But I think that, uh, in
21:52
retirement, that that could play in a little bit as well. If you
21:53
don't have things planned out and you're trying to you know, you're living on
21:56
a fixed income and stuff like that. If you don't have your retirement planned
22:00
out what you're going to do and stuff like that, you can find yourself
22:02
spending on things just because you're kind of bored. Yeah, you're not sure
22:06
what to do, so you're just looking for something to do, and before
22:07
you know it, you kind of have your finances messed up. Yeah.
22:11
Absolutely. I mean a lot of time spending is at an emotional salve that
22:18
that people do when when bored may be the word, or unfulfilled and looking
22:26
to release those endorphins that that make you make you feel good for a while.
22:33
Text Line numbers three are A four, none, three, five,
22:36
I'm sorry, go ahead, John, No, No, that's that's fine.
22:38
I just yeah that that that having a lack of purpose can lead you
22:44
to to to definitely spend money that is it advised or is it well thought
22:52
out? You can send us a question of threes. Z are a four
22:53
non three five five zero zero eight? Threes are a four non three five
22:56
fives zero zero eight For someone who who is obviously they're shooting for a retirement,
23:03
they're trying to come up with their age, a good age for that
23:06
planning things out, how do you consider we just talked about before the break,
23:11
and that's one of the reasons I wanted to bring it up. You
23:11
know, we've had a huge round of inflation for the last couple of years.
23:17
For anyone, even people that are currently working. You felt the pinch
23:21
of inflation at the whether it be at the grocery market, a fast food
23:23
we just talked about a little bit ago, price of buying a car,
23:26
a house, whatever it might be. These costs have all gone up over
23:30
the last few years and a relatively short amount of time compared to what we've
23:33
been used to. So if you're out there and you're thinking about your retirement,
23:36
and I have to imagine somebody that's close to that age right now might
23:40
be a little bit nervous, Like if you're sixty fifty seven, you know,
23:44
if you're somewhere within like a decade of retiring, the last couple years
23:48
probably made you a little nervous because you might wonder, do I have enough
23:52
money put aside for how I want to live? How do I make sure
23:53
that I can get there right? Right? Yeah, there are some rules
23:59
of thumbs you can use. I mean, the first thing you have to
24:00
do is determine what are your current needs. You know, if you retired
24:06
today, what are your needs? Are you going to you know, spend
24:08
three thousand a month, five thousand a month? You have to really understand
24:12
what that budget's going to look like, because it's going to change a little
24:15
bit in retirement. It may be wise, as you're you know, building
24:21
up to retirement, take a few months and just practice a budget that will
24:26
look like it you think it will look in retirement, so you can get
24:29
a number that you're comfortable with. And then once you have that number,
24:34
you know, there are a lot of ways, a lot of a lot
24:37
of formulas and rules of thumb that you can use. You know, one
24:41
good way is say, hey, if you need you know, thirty thousand
24:47
dollars a year off of your investment account, for instance, you might need
24:52
twenty five times that to live comfortably in a retirement, So what would that
24:59
be seven hundre fifty dollars. And and then if you have that, and
25:04
it's if it's invested properly, not if you not if you avoid the market,
25:08
but but but if you invested properly and balance it out across the market,
25:15
even if there is inflation. You know, those ownership of those companies
25:19
that that should keep up with inflation over time, and that that is really
25:26
the trick making sure not only you have enough money, but you're allocated properly
25:30
to deal with Yes, you're gonna have ups and downs in the market,
25:33
but over time, that's your protection against inflation. Historically, owning companies is
25:40
the best way to do that. You know that you bring up a really
25:42
a great point and you've we've talked about this a couple of times. But
25:47
as you're nearing retirement, and if you're getting near that, near that point
25:52
we spoke before the break, you don't want to lock in your investments.
25:53
That means that there is no growth if you're if you're doing super conservative investments,
25:57
what strategy should you look we had in balancing a portfolio when you're getting
26:03
close to retirement. That probably does change the kaikis a little bit about what
26:07
you should what your risk factors should be. Yeah, I mean I see
26:11
people right now they're near retirement. A lot of times they'll come in with
26:17
their four zero K statements, you know, their retirement savings, and I
26:21
look at it and like, oh my gosh, they're ninety percent in money
26:25
market or fixed you know, some sort of fixed account. And you start
26:29
talking about how they ended up there. And you know, after COVID,
26:36
a lot of people were scared and they knew they were getting close to retirement,
26:40
so they became very conservative. Well, look at the market run you've
26:42
missed over that time, and the opportunity to keep up with inflation over time.
26:48
And that's just a natural emotional reaction you have as you're getting close all
26:53
of those all of that volatility weighs on you because you know that it's almost
26:59
time to use that money. And so I think the best way to structure
27:04
it is one understand what your budget is and what your needs really are,
27:08
and then and then two, allocate your money in a way that works with
27:15
that. You know, if you if you have a twenty thousand dollars a
27:18
year need off of your of your investments to supplement your social Security and other
27:23
incomes you may have, you know, you can build a cash buffer with
27:30
part of that portfolio to give you, you know, three years worth of
27:36
income need. For instance, that's sixty thousand dollars. You can set that
27:40
aside out of the market, and still it almost lets you treat your investments
27:45
like you're a younger investment investor on the other part, because you've got a
27:49
three year buffer, and historically, if you have a three year buffer,
27:53
the vast majority of the time the market has recovered. That's a great idea.
27:59
Yeah. Yeah, look at two thousand and eight, I mean how
28:02
bad that was. Tomorrow's down forty percent, And if you were patient and
28:07
could hang on for three years, you largely had all your money back.
28:11
And then so if you if you panicked and reacted, you lost the recovery.
28:18
And so understanding you know, short term needs, long term needs and
28:25
building the portfolio to match that is really what you have to do to keep
28:29
up with inflation. And there is there is a lot of risk in becoming
28:36
too conservative in retirement, which seems like that statement doesn't make sense, but
28:40
it's true. It makes a lot of sense when you explain it the way
28:42
that you did. You don't want to be overly conservative because you can leave
28:45
a lot of money on the table that could be doing some work for you.
28:48
If that triggers a question in your mind, or you have a follow
28:51
up for that, you and give us a call this morning three zero four
28:52
three four five fifty eight fifty eight. You can text overal questions. The
28:55
three zero four non three five five zero zero eight another question that gets asked
28:59
a lot when it comes of these things, because that can get quite complicated
29:00
depending on what your status is and the different types of accounty are. Are
29:06
there some relatively regular strategies that someone could adopt to try to minimize their tax
29:11
exposure. Well, yeah, some of that. I mean, if you've
29:18
saved in a four h n K, you know, pre tax, there's
29:21
no way around you're going to pay tax when it comes out, for sure.
29:23
But your money is, for instance that are in brokerage accounts or additional
29:29
savings that you have. There are lots of ways to manage the taxes on
29:33
that. For instance, you know, most people in their four n K
29:36
own mutual funds. Mutual funds are a great vehicles to accumulate in small increments
29:42
fractional shares of diversified investments that are managed for you. But in a taxable
29:49
account, they're extremely poor in tax efficiency. They throw off capital gains and
29:55
income and you know, you get these big ten ninety nine. Sometimes you
29:59
get a tax built from a mutual fund even when the fund was down for
30:03
the year because of the way they're structured. So there are many other investment
30:07
choices that you can make ETFs, unit investment trusts, individual stocks that that
30:15
have more control over when you pay the taxes or even what rate you pay.
30:19
You know, capital gain versus income and so so structuring your portfolio in
30:25
a way that that takes advantage of that makes it makes a whole lot of
30:30
sense. And certainly if you're not retired, I mean you can you can
30:34
manage taxes a little better in retirement using braw fire rays because they're tax free
30:38
distributions. So it just really depends on where you are and what's available to
30:45
you. But certainly any non tax deferred money. There are a lot of
30:51
ways to to to minimize the tax impact of that, and of course,
30:56
contact your financial planning professional in order to look into some uh some advice on
31:02
how you can get in contact. You can get CPAs and stuff like that,
31:04
referrals that can help you out with some of these questions that are a
31:07
little bit overly complex, but you got you got to get into the arena
31:10
first. Don't try to make these things up yourself. You can contact John
31:11
at three zero four seven four six seven nine seven seven three zero four seven
31:15
four six seven nine seven seven. Kind of going into all of this,
31:18
I was wondering it seems like it was a common thought for for decades across
31:25
the the family scape of America that you know, you you had your starter
31:30
home, you graduated up to a larger home at some point when you're having
31:33
your family, and then maybe as you were becoming more of an empty nest,
31:37
uh, you maybe downsize your home again. And that's that is another
31:40
way that you can you can control costs. You could look at downsizing the
31:44
size home here because you're not only looking at potential. If your house isn't
31:47
paid off, then you're looking at payments. There but also if you have
31:49
a house that once that once uh you know, housed five and you needed
31:53
that kind of space, that means you're uh, your taxes and insurance is
31:56
on that size of a house. If you downscaled, you could putotentially save
32:00
some money and help yourself there as well. Yeah, yeah, tax,
32:04
taxes, insurance, maintenance costs. You know, a a an eight thousand
32:10
dollars roof replacements better than a fifteen thousand dollars replacement, for instance, So
32:15
there are lots of expenses that you may be carrying on a house that you
32:20
just no longer need. A lot of people relocate in retirement. You know,
32:25
when you're purchasing the house in the area that you want to move to,
32:30
you know that that's an opportunity to potentially control the UH or to downsize
32:37
when you make that change and control your budget a little more. But certainly
32:42
a lot of folks have significant home equity that they've built up over the years,
32:49
and you know, particularly if you get to retirement and have your house
32:52
paid off, that equity really is not a retirement asset. You know,
32:55
you can't use that to buy groceries unless you unlock it and downsizing may unlock
33:05
some of that for you. So and that's a great example. If you
33:07
downsize and sell your house and you have fifty eighty one hundred thousand dollars worth
33:12
of equity in your home, you could roll that right into your retirement and
33:15
give it a nice boost. Yeah, yeah, no doubt about it.
33:19
And you know, sometimes that's a little more of a challenge if you're moving
33:22
out of area because real estate markets differ so much from area, But certainly
33:28
if you're staying in a similar price to real estate market there, there's definitely
33:32
opportunity to do that. Another question we need to ask too as folks start
33:37
approaching their retirement. Just a couple of minutes left in the program, the
33:38
story with John or Debt from Fourth Avenue Financial, Fourth Avenue Financial dot Com.
33:44
Healthcare in retirement. This is something that I've done shows exclusively dealing with
33:49
healthcare when you're elderly and on and in retirement. I've done serieses of shows
33:54
on this. This can get massively complicated for people if you're not careful when
34:00
planning for your retirement days. Yeah, no doubt about it. There's a
34:04
lot of confusion and and uh, you know, even Medicare. You know,
34:08
Medicare has there's a cost to it. A lot of folks don't don't
34:13
know that. For most people there's a cost. There are there are some
34:16
that that pay very little and others to pay a great deal. But most
34:21
most people, you know, Medicare costs about one hundred and seventy five dollars
34:25
a month. And and and uh, you know, and that's not supplemental
34:31
policies and and things that you know, you can buy on top of that,
34:37
and a lot of people overlook that when they're doing their their planning and
34:40
and and certainly, if you retire early, which a lot of people you
34:45
know aim to do, healthcare is a big issue. I mean, it's
34:50
even a bigger issue if you're retiring early because you don't get medicare. You
34:54
have to have private insurance, you know, if you're fortunate, and then
34:59
maybe you've got a an early retirement package or a buy out offer. Sometimes
35:02
those will allow you to carry the company insurance until Medicare comes in. But
35:09
certainly healthcare is a you know, a major issue that needs needs to be
35:15
addressed. Before you decide to retire, you need to know how that's going
35:19
to look do different states differ in how accessible certain retirement funds are of like,
35:27
is that one of the reasons you see people relocating to different states because
35:30
it's more conducive to folks that are in retirement and where it's cheaper for them
35:35
to live. Well, that certainly comes into play. I mean, you
35:40
know, some states have income taxes, some don't. You know, some
35:45
people some states tax so security, some don't. I mean, so there
35:51
are some some differences there. There are differences in the way people are taxed.
35:55
So you know, some states rely more heavily on real estate taxes,
36:02
for instance, and others on sales taxes, and others on income. You
36:07
know, there are differences, and it can make sense to take advantage of
36:14
that, particularly those in the higher income brackets. You know, that can
36:21
that can definitely be a reason to locate somewhere. But ultimately, you know,
36:28
hey, live where you're going to live. Most people end up choosing
36:30
where they live because that's where their children and grandchildren have gone to. Less
36:35
than sixty seconds left, John, But I just want to make sure these
36:37
were kind of rapid fire here towards the end. But you also want to
36:39
make sure that you have an estate plan. I've been in this situation recently,
36:43
unfortunately, where I've seen several family members that have passed on in the
36:45
last couple of years. I've seen it both ways, with a plan and
36:47
without a plan. And my goodness, do you want to make sure you
36:51
have an estate plan? Yeah, no doubt about it. You want to
36:53
have that in place. You want to make sure you have your powers of
36:57
attorney, medical directives, all of the things in place. You know,
37:01
the sooner the better, I mean even a you know, you think,
37:05
well, I'm only forty years old. I don't need to deal with that.
37:07
No, you need to deal with That's that's a major particular if you
37:12
have minor children things like that, you have to have all those things in
37:15
place to to really lessen the burden on the level. And so would have
37:21
to deal with the issue. And unfortunately, I hate to put it in
37:23
st such stark terms, but stop the bickering. It'll stop the bickering.
37:28
Put it all in stark, black and white the way you run it,
37:30
and it will stop the bickering. That's the big part, John. That's
37:32
going to wrap it up for us, though only about thirty seconds left here.
37:35
Thanks so much for your time. We really appreciate it today. Yeah,
37:37
yeah, no worries. I'll be heading back tomorrow and be in the
37:40
studio next week. John Bredette will be back here at a twenty Monday next
37:45
week. Thank you so much for tuning in today, John, Thank you
37:47
so much for your time. You're listening to five eight w c HS,
37:50
the Voice of Charleston. Dave Allen. Five eighty Live is coming up next.
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