Latest / The Jon Sanchez Show / The Retirement Checklist: Have You Planned For More Than Just Money?
Transcript
- Jon G. Sanchez: Good Monday afternoon to you. Welcome to the John Sanchez Show on News Talk 780K, which it's a pleasure to be with you on this record-setting day. Yes, you heard me correctly. The first time ever in history that the Dow Jones Industrial Average has closed above 52,000. Pretty remarkable, isn't it? You know, I gotta be honest with you before I get to today's topic. I gotta be honest with you. Once again, Friday, Saturday, Sunday, we all read about it, heard about it, watched it on the news. Saw the missiles flying again between us and Iran. I thought, well, here we go again. So much for the memorandum of understanding. So much for the 60-day ceasefire. And this market just says, ⁓ big deal. No big deal. We're just gonna rally this thing. And boy, did they ever they rallied it hard on the side of things, as I said. They rallied it really, really hard on the NASDAQ side. Pretty amazing day. Great way to start the day, start the week. And I say start the day because we're very strong in the pre-market session. ⁓ And ⁓ start the week. And as a reminder, this is a holiday shortened week. And of course, the calendar comes to a close for the month of June and for the quarter on Wednesday. So trying to maneuver those portfolios, getting ready for the end of the quarter to make things look real good and real strong and hopefully make everybody's clients money, including ours. That's the goal. All right, I'll go through what happened today. What happened, you know I should mention, and I'm sorry to hesitate on you, should mention that tomorrow in Qatar, the US and Iran are supposed to get together again. work out more details. So I had to laugh about that one because how many of these meetings have we had? But you know what? Market liked it, and that was one of the catalysts of today's ⁓ activity. But me get down to today's topic, because I'm really excited about this one. You know, talk a on this program about the importance of retirement planning and having a plan. But I want to take it a step further because I I feel like I haven't been complete with you when I get to this topic. And here's what I mean. know, so many of you spend decades preparing financially for retirement. You get up every day, you go to work, you save diligently, you do everything. But how many of you ask yourself this honest question? How many of you actually prepare for retirement itself? Here's what I mean. Today we're going to walk through the ultimate retirement planning checklist that I've created. We're going to cover retirement income, taxes, Social Security, Medicare, healthcare, estate planning, and most importantly, the costly mistakes that so many people make. Because again, they prepare for the event of retirement, but they don't prepare to be in retirement. And that's why I said, you know what? I need to prepare a checklist for you. Something that you can Really look into, have ready to go when that time comes that you do retire. Or if you're in retirement, are these the things that you're doing that you should be doing? you know, I I hear this a lot from clients. Sometimes they feel that their lives become more complex once they are in retirement, because now they're responsible for their own taxes. They're for making sure the money lasts as long as it's supposed to. They have more time to watch the stock market, so they get more nervous. They just have a little bit more time on their hands. They go spend money. Right. So retirement, I know for those of us that are still working, you laugh when I say that, right? I know you did. I heard you when I said that retirement sometimes is more work than actually working. But it's the truth. Ask anybody that's in retirement. I won't say that it lasts that way forever. It it's really ⁓ of the obviously it's a major life change, right? So it's it's something that you gotta get used to. And I you know, always joke with with clients and they say, Okay, you how much. How much is it really going to cost me in retirement? Of course, we run the numbers and things. always tell them, I said, look at plan on spending anywhere between 80 to 120% in retirement, your first two years of what you were making while you were working. They're like, wait a minute, that's not the way it's supposed to be. That's not what all the stats show us. No, I'm not giving you stats. I'm giving you real life information. Because what we see with our clients is we have to plan for this. Those first couple of years are expensive. First thing is the honeydew list, right? You have a list that's been building up for years that you just haven't had the time to get to. Well, now you have no excuse. You got the time. So you got to have the money. So you start doing all those things around the house, all the trips that you wanted to take, you know, so on and so forth. All the things that require a lot of money. And then, of course, you're go out to eat a lot more because you have time on your side. You're gonna have the grandkids over and you're talking to a new grandfather. And I tell you, and I realize this now, now that I'm in ⁓ In the camp of being a grandfather, little suckers are expensive. Love to death, wouldn't trade ⁓ for the world, and it is the most incredible love I've ever experienced in my life. But they are expensive. So you know what I mean. Retirement does cost a lot of money. But again, you got to have a checklist. And that's what I've prepared for you. So I'm so excited to get to that for you here momentarily. in the meantime, let's get down to today's stock market activity. Okay. So what today? Well, first of all, we had a day where oil actually rose. Market didn't care about it. Why? Because that's still a pretty decent number. But we gained a buck 58 on oil, 70, 82 is our closing level. But we rotated back today into some of the largest technology names. Remember those names that we touched on every day on the show last week? Those names that got beaten up, the microns, the sand discs, the Western Digital, so on and so forth. Well, they decided they wanted those names today. And they started bidding some of those up. So we rallied on that. We rallied on Google. Remember, as I announced last week, Google is going to be added into the Dow Jones Industrial Average, replacing Verizon. And that's going to happen here in the next couple of days, I believe. On the let's see. know what? I got to look it up. I don't remember. It's coming up. I know it's before the end of the month, but I don't want to give you the wrong date. So saw Google really bump up today. $16.26 gain, 4.82%. Closing at 35365. Comcast, another star standout today. Company announced that they're going to be separating NBC Universal and Sky into independent publicly traded companies through a tax-free spinoff. That was a big run up, four and a half percent gain on Comcast up a dollar five. And that backed down. It was up significantly more than that earlier this morning. is a closing price there. Charter Communications and Mr. Musk, well, they may be coming together. ⁓ Communication gained after Bloomberg reported that the company is in discussion with SpaceX. ⁓ Regarding a mobile phone partnership. Charter today up 9.38%. $12.53 gain $146.17. yeah, finally moving up, gained 9.38%, $12, me, $10.82 increase to $164.06. the but I let me go back to this Comcast news because the Comcast news did actually weigh on some of the competitors, i.e., there's the Verizon name, down $2.44. Plus some of that weakness attributed to the stock being booted out of the Dow. T Mobile was down 4.77%. ATT lost 3.96%. Tesla, very strong today, $32.13 gain. We haven't seen this move in quite some time. Up 8.46%, closed at $411.84. The stock reclaimed its 50 day moving average, which was a 405.03. Amazon, another standout, $7.45 gain, 3.2% to $240.14. Little weakness in Apple continuing. I remember day was it? Wednesday, I believe it was last week when the company announced a big price increase because of memory chip increases on their part on the wholesale side. So they got to pass it on to you and I as the consumer. And the stock's just been suffering since then. Today lost two dollars and four cents to two eighty one seventy-four. let's see, applied up sixty seven dollars and eighty cents back to that memory space, ten point eight two percent gain to six ninety four sixty four, more so in the semiconductor space. let's see. Martin Marietta today had a tough one down 5.65%, $34.83 loss to $581.23. They announced the acquisition of a company called Loist North America. So, know, overall, like I said, not a bad day whatsoever. As far the ⁓ commodities were concerned, as I said, we had a dollar fifty-eight gain in oil. ⁓ Again, some the nervousness from what happened over the weekend, 7082 a barrel, lost $58.40 on gold to $4,038.20 and big. Goose egg. That's quite unusual. Then change on the 10-year treasury at yield of 4.37%. as we ⁓ again begin ⁓ to get very close to wrapping up the quarter, what do we said on a year-to-date basis? Let's bring up to date there. We haven't touched on that in a while. For year, the Dow's up 8.6%, SP is up 8.7%, NASDAQ's risen 11.1, well off of its high, and the 2000 has higher by 21.3% on a year-to-date basis. So once again, the caps still continuing to dominate. ⁓ the performance, you know, hands down versus everybody else. So nearly ⁓ double the NASDAQ, second best as I said, up 11.1%. So do we sit right now? Well we sit with some optimism. ⁓ again, market keeps being tested with the missiles flying between the two countries and it just again doesn't seem to to rattle its cages. The market is 100% convinced there will be a long lasting peace deal. Market is absolutely convinced that the ships will continue to start ⁓ or will continue to flow, even though there's been some interruptions through the Strait of Hormuz. The market's absolutely convinced that oil prices have seen their peak and they're going to continue to move down. again, about the only negative going right now at this point, outside the scope, of course, of one day the street loves memory stocks and semiconductors, next day it hates it. But outside of that, Again, the market's only dealing with when's gonna be the ⁓ next Fed move. And again, as I mentioned on the show, as I recap the week on Friday, the street is definitely voting that it is gonna be a rate increase. We just don't know how much and when, but no mention whatsoever of a rate cut. But here we are, earnings numbers continuing to drive this market higher. ⁓ And hopefully portfolio is the same. All right, when come back, I'm ahead of schedule. I'm gonna get down to my topic, the retirement checklist. Have you planned for more than just money in retirement? Welcome back to the John Sanchez show on News Talk 780K Happy Monday to all of you. Let's get down to what happened in the market today from an index performance standpoint. And then we'll get to our topic. Once again, the retirement checklist. Have you planned for more than just money? right. As I said, it was a record finish for the Dow Jones Industrial Average, closed up 307 points, 0.59% to a close of 52,182. NASDAQ 523 points, 2.07%, closing at 25,820, and the SP282. Higher by 87 points, 1.18% to close at 7,440. So what a day it was. right, before I get to my topic, I want to give you a quick reminder. I cannot wait. I'm counting down the hours literally till 6 p.m. this Wednesday. Why? I'm going to be able to give you my next educational webinar. you have an estate planning problem? Is what I've titled it. So I want you to join me for this absolutely free educational webinar. Six PM this Wednesday, July the first. gonna discuss the seven most common estate planning mistakes I see families make, including outdated trusts, beneficiary designation problems, funding mistakes, powers of attorney, and so many other issues that could create unnecessary stress, delays, and expenses for your loved ones. So if you already have a trust or you think you need one, I've designed this for both of you. So gonna be a great, great webinar. Again, six PM this ⁓ Wednesday The website. Specialized trust.com is where I want you to check it out. But to give the invite, about that. Again, we don't have the technology set up quite yet. So I'm doing it the old-fashioned way, which is fine with me. Send an email, John J O N at specialized trust.com, and I turn around and give you your invite. Lots of names coming in. ⁓ I like to these at about 25 to 30 people, and we're we're getting close. We're getting close. So again, I don't like any more than that, so I can still keep it nice and ⁓ informal and QA sessions and so on and so forth. once again just send me an email, John J O N at specialized trust dot com and I'll turn around and send you your invite. And I look forward to seeing all of you there again Wednesday at 6 p.m. All right, get down to today's topic, the retirement checklist. You know, again, most people spend decades preparing financially for retirement, but very few spend time planning for retirement itself. But I want you to do something. Ask someone What retirement planning means. And they're usually going to answer this this way. Save you money. But guess what? planning is about much more, much, more than accumulating wealth. You see, about creating a plan that allows you to enjoy your retirement while protecting your family, minimizing your taxes, for that ever so rising healthcare cost, and making sure your assets are distributed according to your wishes. So today what I'm gonna do is I'm gonna walk through what I believe are the 10 most important questions every retiree should answer. I'll start with the first one. Will your income last as long as you do? Isn't that a scary thought? Will your income last as long as you do? Well, there's basically five areas under this topic that I want to discuss the retirement income. So what we have to do here is we've got to look and see where is the money going to come from? And most importantly, how sustainable is that money? If you are solely going to rely upon your stock market assets as your primary and majority income source, that makes me nervous. Because again, we can all be really good at investing, but what we can't control is the stock market. We never know, know what's going to happen. And the last thing in the world you want to have happen when you are a retiree is to sustain a long-term market downturn. And there goes your income and retirement. And you're going to be thinking about going back to work. You know, I've seen a lot of people over the years, our clients, that ⁓ you know, they come to us and and they've suffered that, right? They retired, market was doing great. They decided take out a you know, modest amount, four, five, six percent, somewhere around there. ⁓ But then comes the market downturn. They weren't prepared for it. Their advisor didn't protect them. They didn't have non-correlated assets. In other words, income was coming solely from the stock market portfolio. what started maybe as a four or five, six percent withdrawal rate, all of a sudden turns into a 15 or 20% ⁓ rate. And they never could recover from that. So the panic starts to set in. They can only cut costs so much to reduce that withdrawal amount. So what do they do? They go back to work. And again, love that idea if that's what you want to do. I don't want any of you in retirement have to go back to work if you don't want to. withdrawal strategies is the second point under will your income last as long as you do? Once again, how are you going to take the money out? You know, there's a lot of different theories, buckets of money, and ⁓ a flat withdrawal rate. There's all kinds of different ways to do it. Just depends upon what you and your financial professional feel the most appropriate for you. But you've got to have a strategy. You just can't go, ⁓ this month I'm going to take this amount. This month I'm going to take that amount. You have to have a strategy there. We all know about inflation, right? What may start off as ⁓ what feels like, you know, a decent retirement income now. How's it going to feel in five, ten years? I don't know about you, but I am confident that we will never see a massive decline in inflation ever again. Things have changed after COVID, and this inflation, no matter what goes on in the Fed, no matter what happens anywhere, it just keeps edging up and up and up. Is your retirement income going to edge up to keep up with that inflation? That needs to be part of your checklist. Longevity risk, right? God willing, we all live longer now. That means our money's going to last longer. And the other thing, how long's your income going to last? Well, do you have any guaranteed income sources? And I'm not just talking Social Security. I'm talking other guaranteed sources like annuity income and pensions and rental income and so on and so forth. Do you have any guaranteed income in that portfolio? That stops that first problem, which is. solely relying upon the stock market. Right? If you can structure it to where your variable income sources, like the stock market, I don't know, 30, 40% of your income, but that'd make me sleep a lot better at night than 100%. The other remaining percent, the 60, 70% somewhere around there, guaranteed sources, yep. That's how you sleep well at night. And you can withstand just about any market turmoil. Second item on our retirement checklist is how much will taxes cost you? You know, a lot of times people, what I see is they they spent their working career really focused on taxes, right? They were trying to be as what I call tax efficient as possible. Maybe they had some rental properties, maybe they had, you know, they were maxing out their 401ks, putting money under their IRAs, doing everything they could. But then we get into retirement and yeah, you kind of let your hair down a little bit. Stop focusing on things like that. Well, let me tell you, tax strategies and diversification, et cetera, are probably more important in retirement than they were when you were working. You may say, well, wait a minute, I'm so limited on the things I can do. Well, that's what the average investor tells you or advisor tells you, but that's not the case whatsoever. I like retirees that are very active in the tax planning process. Why? Because they have a limited source of income and there's many things that they have to do. To minimize those taxes. As I've said a million times on the show, and I'm going to say it a million one. One of the biggest surprises many of you will have when you're retirement and you get past that first year and you go sit down with the accountant and he says or she says, ⁓ guess what? You get to sign up for quarterly taxes now. What do you mean? Well, you didn't have enough taxes withheld from your IRA distributions or your 401k distributions. And now you get to pay quarterly taxes. Screws up the whole plan. Again, got a plan for that. Required minimum distributions. I touched on this briefly last week, but this is part of our retirement checklist, right? RMDs, age 73. I still get a lot of phone calls and a lot of emails from you saying, wait a minute, 70 and a half, right? No, remember after COVID, they changed it a couple times. Right now we sit at 73. That is the required age. The IRS requires you to take money out of your qualified plans, other than Roth IRA's Roth 401ks. General rule it starts at about four percent at age 73 and then it increases each and every year. Remember, it's based upon the balance of the previous December 31st. I had a great call with a client I want to share with you on Friday. exact topic came up. We're about RMDs. Same thing. He thought it was age 70, and he was very happy to hear that it was age 73. But remember, folks, little rule that many people know about is this. Okay, so you have to People think the year that I turn 73, I have to take my required minimum distribution. Well, that's partly correct. The rule actually states by April of the year that you turn 73 is when you have to take your first RMD. So for example, let's say you turn 73, I don't know, October 15th. Well, you can take it out then, if you already, you know, aren't taking enough money out, or you can postpone it. All the way until April 15th of the following year. And we go, Well, of course. Because what what we find with a lot of our clients, they don't want their RMDs. It's just excess income. They don't want it. Typically, they'll gonna turn around, they're gonna throw it back in their taxable investment account. But if you want to postpone it, as I was discussing with my client, I said, look, it sounds good on the surface, right? You're gonna postpone it because I think he turned 73 in November. Sounds great on the surface, you want to postpone it, but here's the gotcha. That next year. That you're going to turn 74, you're going to get hit with two RMDs. You're going to get hit one for, let's just say 2026, and then one for 2027. If you have a large IRA, you run the risk of being bumped up into a higher tax bracket, right? I mean, we have some clients that very, I won't say the amount, but very substantial, some six-digits RMDs are required. So again, imagine getting hit with that twice, ⁓ right, the same year. It can really mess you up from a tax perspective. Planning perspective. So make sure that you understand the required minimum distribution rules. Security taxation. Well, remember we've covered this many times. you to understand about ⁓ when Social Security is going to be taxed based upon your income, your age, et cetera. And same thing, I can make a whole nother show of this one, the Medicare Irma. That's a whole nother, you know, gotcha that's out there. So, bottom line, be tax aware in retirement, right? You want to be tax aware planning for retirement. But especially once you get into retirement. right, we'll come back with number three in our the retirement checklist. Welcome back to the John Sanchez Show on News Talk 780KOH. Happy Monday to all of you. right, here's how we finished up. Once again, if you just joined us, it was a record-setting day for the Dow Jones Industrial Average. First time ever closing above the 52,000 mark. 52,182 up 307 points. NASDAQ 523, 2.07%, and the SP up 86 points or 1.18%. All right, just getting started on our topic this afternoon. The retirement checklist. Have you planned for more than just money? That's right. There's so many ingredients that go into retirement. quickly ⁓ recap what is on my checklist so far that I've covered with you. All right, first of all, we talked about will your income last as long as you do, right? What's your retirement income strategy, your withdrawal strategy? Are you factoring in for inflation, longevity risk, and guaranteed income? Secondly, how tax, how much will taxes cost you, right? Do you have a tax plan, a tax strategy in retirement? You understand about required minimum distribution, social security taxation, Medicare Irma, so on and so forth. Now let's get to our third area. healthcare side, right? I hear it every day from our clients. My I can't believe how much healthcare costs me. It's like another house payment. It is. And yeah. ⁓ Even you get into Medicare, I mean significantly cheaper than going out and buying your own policy. But what see happen a lot ⁓ is, you clients can't wait to hit 65, so they are eligible for Medicare. But what about the other spouse? ⁓ Right? That's where a lot of the problem comes in. And now we've got that expense to deal with. again, you're dealing with this in retirement. You're on a fixed income in many cases. So make that you understand how Medicare works. Make sure you understand how supplemental Medicare insurance works. Then, of course, I won't later in life because boy, boy, it can happen at any age. Long term care. You know, again, as I've mentioned so many times on this program, there's some. great long-term care policies out there now. represent some of these carriers where again it's a combination of a life insurance policy ⁓ with long-term care writer. I really, really like those because they've made them substantially more affordable for our clients and for others than the old days of just buying a pure long-term care policy. If you'd like to learn more about it, by all means just reach out to me. And then course the unexpected medical costs. We see it all the time, right? You've been through it, your friends, your family have been through it. ⁓ Medicare medical costs can just come out of nowhere. I'm on this subject, I I always like to remind clients and I I want to remind you also, folks, have one of the best, because it's not available in in every town, but it is here. We have one of the best ways to prevent Unnecessary medical cost here in Northern Nevada. And what I'm talking about is the REACH program. Now, if you've never heard about this, I want you to reach out, no pun intended, our local air ambulances, right? We have Calstar, we have CareFlight. Both of those companies, and sometimes they combine combine the the membership program. But what I'm getting to is for a very very small amount of money, like under $200. I just renewed mine. I'm trying to remember. I think it was $160 for wife and I for year. But for again, we'll let's call it under $200. Don't hold me to the exact price, but it's it's peanuts. They will give you free air ambulance transportation here in northern Nevada. But now programs also, that's why they call it reach, reach out to Just about all the states. Alaska seems to be a little little bit goofy for some of these companies, ⁓ Hawaii, etc. We we had a situation years ago where we had a client, they used to live here in northern Nevada, but moved away, moved back east, and they're a cruise and the ship pulled into a port in Hawaii. Everything was great. went in, said wife was on the on the patio of the cruise line and again they were pulling into port. He goes, Hey, honey, I'm gonna I'm gonna run in and get a cup of coffee. Most beautiful cup of you've ever imagined. And few minutes go by and a few more minutes and he doesn't come back outside and she goes inside, died right on the spot, heart attack. She had one heck of a time getting his body from Hawaii to Illinois where they live. not mention the cost, et cetera. So again, reach out to our local air ambulance programs. they're phenomenal not only to cover you and your family here locally, but also nationwide and sometimes worldwide. ⁓ I just I can't stress it enough. I one of my most rewarding things, I recommended this to a client years and years ago and Murphy's not long after I recommended it, she had a aneurysm and she had to be flown from Gardnerville to ⁓ to renown and it saved her remember, and this was ⁓ when I was a firefighter, we had this little saying the minute the the skids of the one the air ambulances ⁓ lifts off, it's ten thousand and the clocks start ticking from there. So it is expensive. I've seen people wiped out because of air ambulance bills. A lot of times your medical insurance doesn't cover it. And a lot of times, if you're on Medicare, it doesn't cover it. So fend for yourself. Go online, for it. and again, just a great, great way, again, for unexpected medical expenses ⁓ to be covered. All right, item on my checklist: Social Security. Again, the days playing around and ⁓ Claiming here, stopping, let your spouse claim. Those days are gone, as I've said many times. Know what your claiming strategies are. Decide what's going to be best for you. probably at least once a week I get asked, do I take it at 62? Do I wait till my full retirement age, or do I wait till 70? ⁓ just to remember, from your full retirement age, which varies depending when you were born, ⁓ till 70, it's a guaranteed eight percent increase, right? You get an eight percent raise by the government. How do you like that? But when do you take it? Again, everybody's situation is different. I make it really simple. I tell clients, I just said this last week. If you need the money, take it. If you don't, postpone it. It's really that simple. You can crunch numbers all day long, but in reality, I'm a pretty simple guy to say, look at it. If you need it, great. That's what it's there for. If you don't need it, let it grow. Let it grow. And then there's that whole argument, well, geez, if I wait till 70, and how many years do I have to live to to make it up if I didn't take it at 62 or take it at you know full retirement age? Yeah, we can play with the odds all day long. Bottom line is just keep it really simple. And say, look it, if I need it, great. If I don't, let it grow. benefits, make sure you understand that. A lot of confusion, of course. If you got two spouses taking Social Security, ⁓ passes away, then the one that that if one that passes away had a higher monthly social security benefit, then the ⁓ surviving spouse is going to take that, but stop getting his or her current, the lower amount. just understand the common mistakes are. Again, the SSA.gov website is phenomenal, all kinds of great information. Please make sure that you have signed up for electronic statements. A lot of people still sit back and wait for the the ⁓ the the old paper statements to be mailed. And to my understanding, they're not doing that anymore, or at least they're getting ready to stop that. So make sure you sign up for social security at SSA.gov, the online statements, and there's all kinds of calculators and things you can see there. right. Next thing on our checklist, you know, it's more than just ⁓ for retirement. What are we doing in retirement? We've got to watch investment risk, probably watch it even closer than when we are working. Why? ⁓ Because we don't have the time on our side, because we're not working to take advantage of lower market environments. sequence of re of re sequence of returns. I've covered this a few times recently, and I want to bring this to everyone's attention. Real term, but what does it mean? Well, if you and I retire, ⁓ let's say I retire today, which is what, June the twenty ninth. You retire tomorrow, June 30th. again, it was a great day in the market today. My 401k may have been invested in my IRA today. But you retired one day later. What if the market's down tomorrow? Guess what? Watch and see how the sequence of returns negatively impact you, but benefit me just by one day. Just by one day. Everything else being equal. you got to be very careful of sequence of returns. Asset allocation, yeah, you know all this. I don't need to waste your time on that one. The investing side of things, right? You kind of shift from, ⁓ geez, need to grow all my money to A, I want to protect my money. Now I've got three rules of thumb I always tell my clients when I write a retirement plan for them. ⁓ There's three rules or three goals, I should say. Capital preservation, income, and growth. Where do you fall in that? Capital preservation, income, and growth. of my retirees are getting ready to retire. We put capital preservation number one, right? We don't want to take risks with the majority of the money. Number two, you need income. And number three, you need growth. But think about how that's changed. When you are working, what's number one? Growth. What's number two? Probably income. And what's number three? Capital preservation. So as life changes and you enter retirement or you're in retirement, make sure you assess those goals. and then the market volatility side of things. Like I said, it's much more painful to see your portfolio drop 10% when you are in retirement than when you are working. It has a whole different meaning ⁓ to you. So be prepared, diversify, diversify, diversify. All when we come back, estate planning. That's right. You know it's an errand dear to my heart, something that we need to do hopefully before retirement, but Definitely when we are in retirement. I'll give you another reminder again on my upcoming webinar this Wednesday. Welcome back to the John Sanchez Show on News Talk 780 KOH. All right, once again, we're gonna continue our retirement checklist. But before I do, quick reminder my upcoming webinar this Wednesday, 6 p.m., I can't wait to see you there. Again, it's titled, Do You Have an Estate Planning Problem? Just send me an email, John J-O-N at specialized trust.com, and I will send you back immediately your webinar invites. Again, very limited on the number of people, but again, we're gonna talk about the seven most common estate planning mistakes families make. Again, this is designed for those of you with an estate plan or those of you without, along with many other topics besides this, the seven that I just mentioned. Let's go back to our topic. Speaking of what we need to do to make checks on our retirement checklist, the ultimate retirement checklist. Estate planning. Okay, we've got to have a revocable trust. We need our durable powers of attorney to make decisions on our behalf. ⁓ need our health care directives. We need to make sure that our beneficiaries are who we want them to be on each and every account. And we need to make sure that our estate, meaning our trust, is funded. Again, you know this drill, and I'll be doing more webinars on this. But if what's the purpose of having an estate plan, meaning a living trust, if you have not funded it, meaning you move the assets from your name or yours and your spouse's name into the name of the trust? Remember, remember, remember, if you have a living trust and you have an asset such as a home. Or a a taxable brokerage account, something that you have a title, not a physical title, but a titling to that is a non-retirement account. If you have a living trust and that account is not titled under the name of the trust, that account is going to probate, even though the rest of your estate may be completely protected ⁓ with the living trust and avoiding probate. So protection. Again, you're in retirement. You don't have the time, both longevity-wise or time in your day to rebuild your the last 35, 40 years. Please make sure that you plan for it correctly. We'd love the opportunity to do that with you. you know, there's other things besides estate planning. How about asset protection? Umbrella insurance. I'm a huge advocate of that. Again, this is excess liability protection above and beyond your auto and your home. You buy it in one million dollar increments and it is dirt cheap. Love to talk to you about that one. The right? We need to protect what we've built through whether it's a business or a rental real estate or other is situations. One of the best ways, again. That we need to talk about is an LLC, limited liability company. Very simple to set up here in the state of Nevada, very affordable. just did one for a client or discussed it with a client late Friday night. it's got a business, it needs to protect it. We talked about LLCs and how they all work. The proper once again, you can have all the great business structures that you want and all the estate planning done and so on and so forth, but things are not properly titled, doesn't work. And then liability planning, right? People think they get into retirement. They're no longer, especially if you were a small business owner, now you're not. you get into retirement and you think, ⁓ what do I need to worry about liability planning? Because every single one of us, every single day that we wake up, we're at risk of a lawsuit. So you need to plan for it and protect those assets. The housing's another common area I want to go over on the checklist side. I'm to go real quickly on this one. Do I stay where I am? Do I downsize? Do I relocate? Do I consider a reverse mortgage? What do I want to do? Well, all those are viable options. And again, they require a lot of discussion and a lot of thought. Taxes come into play, lifestyle comes into play, so on and so forth. So please consult with someone, whether it's ourselves or someone else, to help you make that decision. Number nine, this has nothing to do with money, but more importantly, it has to do with your life. What is your purpose? What is going to be your purpose in life once you retire? What's going to make me get out of bed each and every day? What's going to keep me motivated? What is my retirement going to look like? Bottom line. Am I going to volunteer? Am I going to travel? Am I going to start a small business? Am I going to spend time with the the kids and the grandkids? What am I going to do? What's going to make me feel great about myself? Because we all know if we feel great about ourselves, we're a heck of a lot easier to get along with and we're happier in our marriages and our relationships, both with our kids and our spouses. So very few people spend the time to say, what is going to be my purpose in retirement? It's always about: do I have enough money? Do I have enough income? Answer this question first. And that will tell you if you are psychologically ready for retirement. If you're like, man, I just enjoy going to the office or to the job site or wherever I may go each and every day. Maybe retirement's not the right time for you. But you're gonna wake up one day and it is, and you need to know what my life is gonna be like once I retire. the last item on my checklist that I want to discuss with you is my legacy. What story will your wealth? And I don't mean, my God, millions or hundreds of millions of dollars. But what stories will your wealth tell you? Right? Wealth is more than money, as they're saying in our firm goes, right? ⁓ how you treat people, it's the legacy that you leave. What story are you gonna leave? Will your family be prepared? Right? That's the biggest concern that all of us have. And will your plan make life easier for those that you love? Or are gonna make their life harder? That's where proper estate planning comes into place. So there's your retirement checklist. If you'd like a copy of it, by all means just send me the email at John at SanchezGot dot com. But for the webinar, John at specialized trust dot com. I know I'm throwing a lot of emails at you, but compliance, I have to. bless, have a great afternoon.