Latest / The Jon Sanchez Show / Your Retirement Plan Needs a Plan B
Transcript
- Jon G. Sanchez: Good Monday afternoon to you. Welcome to the John Sanchez Show on News Talk780KH. It's a pleasure to be with you. I gotta tell you, just start outside the gate. I I was just telling someone a few moments ago, it's really hard to do a show when we know our friends, family, so on and so forth are going through devastating times, as they are so many of you are with the hawk fire. And I I just wanna again just express my sincere condolences to all that have lost property, been inconvenienced, so on, so forth. It just it absolutely breaks my heart. And I I tell ya, and I'll share just share a personal story. You know, I was a volunteer firefighter for what, 10, 15 years, something like that. And I tell you, I miss it on on times like this, I I miss it so absolutely dearly because It's hard when you when you see your community hurting and y you just kind of sit back as a, you know, quote, civilian and there's nothing you could do about it. you know, again, in years past I was able to go out and help for what little bit of that I could do as one human being, but it it gave me a a incredible sense of satisfaction. And I'm missing that in my life right now. I I I like I said, I I just I hurt for all of you. I really do. And so just know you're in my prayers. I know listening about the stock market and so on and so forth is probably the absolute last thing that you want to do. But I don't know. Maybe it's a maybe it's a good way to get your attention off of things. I don't know. But show is the saying goes, the show must go on. And again, if there's anything that myself, my team, whatever that we can do, please reach out to me. send me an email, give me a call, whatever the case is. my family, you know, both on the business and the personal side of things, we're here to help, you know. our our neighbors, you know, in in whatever we can do. so again, I I I I was going to Carson City to meet some friends for dinner, you know, Saturday evening and I saw the the massive, massive plume of smoke and you just learn what the different, you know, smoke patterns look like and just devastating. And then my son and his family, his you know, four children and his wife, they were on their way back from a Pop Warner football game up in the Quincy area. barely made got got through the highway at three ninety five at Border Town and the fire changed on them and literally flames were on the side of the road. Matter of fact, two vehicles behind him, which was another family, their vehicle, all the paint bubbled. That's how close the flames came. So it's it's challenging, tough times out there for here, for us here in northern Nevada. So again, thoughts and prayers and please if there's anything that we can do, you know, fundraiser whatever you need, I am here to do it for you. I Like I said, it's just, it's tough. It is is this really, really tough. Okay. let's get down to business, because that's what you came here for. Your retirement plan needs a plan B. Doesn't that sound strange? You may be thinking, well, wait a minute. If I have a retirement plan, why do I need a plan B? Well, you know, it's like anything in life, right? We're just talking about fires, right? We need a we need a a getaway plan, an evacuation plan. Well, it's the same type of thing when it comes to retirement planning. And that's what I want to kind of tell you what the show is going to be about today after my stock market recap. Does your retirement plan have a plan B? Because you know, most plans are built around assumptions, right? You're going to retire at 65. The market's going to provide a reasonable return. Social Security is going to start at a certain age and always be there. You're going to spend a certain amount every single month. Your health will be relatively good. Your spouse will be there alongside of you, right? There's the perfect story. And I hope. That's exactly what happens for you. But after doing this as long as I have, I can tell you one thing. Life rarely follows the spreadsheet perfectly. Markets fall, inflation happens, people get sick, spouses die, kids run into trouble, the house needs major repairs, people retire earlier than expected, sometimes on their own fruition, sometimes not. And sometimes they end up living a lot longer than they've ever imagined. None of that necessarily destroys a good retirement plan. What can create a problem is having a retirement plan that is so rigid that it only works if everything goes according to plan, which again, rarely does that happen. So today I want to talk about building flexibility into your retirement plan. Not because we're expecting something bad to happen, but our job as portfolio managers is to prepare our clients for the worst. We hope it never happens. But again, that's our job. And because you've spent 30 to 40 years of your life building your retirement, your financial future should not depend upon everything going absolutely perfectly. So, again, my topic your retirement plan needs a plan B. So I'll be getting to that momentarily. Now let's transition over to the stock market side. You know, it was a day of a tremendous amount of headlines, but none of them really had a significant negative effect on the market. NASDAQ lost 200 points. Okay, but that was attributed to the chip stocks again, one of those days where chip stocks were down. But you had the president and then Scott Besent, the Treasury Secretary, announcing major, major sanctions, financial sanctions against Iran. few retaliatory comments from Iran, but nothing too major. Oil prices actually dropped on the news. Go figure that one. and then you had this new battle that we have going on with Canada where we're You know, putting 50% tariffs on certain products with them. And guess what? Starting, I think it's September 8th or 6th, I can't remember. they're gonna do the same thing. So now we're back to a tariff war with our neighbors in Canada. So, like I said, market w was pretty resilient to the whole thing. more news again. the the Treasury Secretary early this morning announced that he's thinking about going into our general account, which I think has like a trillion dollars in there, to use some of those funds for bond. buy downs or bond bond buybacks, which again, the goal is to drive yields down. was not met just like his other plan was not met well by the street. we saw you know a little bit of a pullback in bond yields, but the commentary out there does not like what this man is doing so far. And so like I said, a lot of negative headlines, but you know, market was very resilient to all of it. So it was really a I guess the best way to summarize really a mixed type of showing today. We finished down 200 on the Dow, or excuse me, on the NASDAQ, 0.77% loss to 25,980. The Dow posted a gain of 140, 0.26%, and the SP lost 22 points or 0.28%. So, you know, like I said, just somewhat of a of a mixed showing there. Nothing, nothing too significant. NVIDIA was a stock that was under pressure today. This is ahead of its earnings report on Wednesday after the close. stock finished down six dollars and twenty-six cents, a two point nine two percent loss to two hundred and eight dollars and forty-six cents. Caterpillar was a drag on the Dow, $16.88 decline there, down 2.04% to 811.02. And Sam with Boeing, a drag on the Dow, losing one and three quarters percent or $3.74 to $210.46. Aerospace and Defense stocks right across the board were very weak. Consumer Staples did pretty well. The sector was up about 1.8%. Walmart led the pack with a $2.79 gain up 2.69% $106.49, rebounding from its post-earnings weakness that we experienced last week. Google two dollars and eighty-four cent gain, three forty four fifty-nine, Meta nine dollars and twelve cents to five fifty-nine two. So that helped out the communications sector, which did pretty well. like I said, on the oil side, remarkably down two dollars and nine cents, eighty-four dollars and ninety-eight cents was the closing level of oil, left the energy sector, actually down about eight tenths of a percent on the day. Gold prices $14.90 rise, $4,695 an ounce, and down three basis points on the tenure to yield of 4.2%. So other than that, like I said, really, really quiet. I didn't get a chance on Friday to go over the the economic calendar. So while I've got a few extra moments before we go to break, then we'll come back and get into our topic. it's gonna be an interesting day. tomorrow, or excuse me, an interesting week. Tomorrow we have consumer confidence, which is something the street obviously pays very close attention to, along with new home sales. But starting on Wednesday, the sword's gonna get interesting. We're gonna receive the Fed's favorite measure of inflation, the PCE, the personal consumption expenditure, the prices there, the core, et cetera. also we get personal income and personal spending along the the same report. Then we're gonna get second quarter GDP estimate. So that's obviously a very important one. And durable goods on the 26th, also on Wednesday. Or excuse, yeah, on Wednesday. And then at the end of the week, we get another consumer report, the University of Michigan Consumer Sentiment number. final read for the the month of August. So pretty important reports and and again everything in is focused on inflation and interest rates at this point. So again that PCE report should be very, very interesting and see what the market or how the market reacts to that one. Okay, my goodness, look at that. And not even time not even coming back from the first break and I'm actually ahead of schedule. I'm gonna get started on our topic. Your retirement plan needs a plan B. So all right. So you heard me just a moment ago. You know, we we We we need to plan for things to go wrong. Right. And that's kind of why I I created this topic today. It's like obviously the fire is weighing on me personally, but it just comes into light, which again, we always need to be prepared for all kinds of things, whether it's a financial emergency, obviously a physical emergency, so on and so forth. So what can actually go wrong when we get into retirement? Well, let's start with the misconception that a retirement plan is primarily an investment portfolio. As I've emphasized many times over the last month or so. Your retirement plan is much bigger than just some numbers, much bigger than than an investment portfolio, right? It encompasses so many different areas that hopefully you've taken heed and I've, you know, listen to me and started to kind of open your eyes a little bit and go, yeah, it's not just about the numbers. Kind of like a state planning, right? It's not just about the trust and the powers of attorney and so on and so forth. It's so, so much more. So let's start talking about some curveballs, as we call it, right? It's hard, heart of baseball season. Let's talk about some curveballs. The one that I have seen that can really, really throw off your retirement plans. And, you know, again, definitely open your eyes to why you need a plan B is a major bear market during the first few years of retirement. I've lived through it, I've seen it. it is devastating. The emotions that a person goes through when they finally reach that dream of their life and they're ready to retire. Financially, they've done it, mentally, they've done it. All the stars are lined up. Everything looks great for retirement, except for one thing that you can't control. And that is a bear market. So all of a sudden, you know, they get into the first couple months of retirement, and here comes the market correction. And that, I'll just pick a number, that million dollar portfolio just lost 10%, $100,000. But I want to emphasize something really important on this point, and that is it's been a long time, folks, like 2008, 2009 time period. And that really, yeah, it was a bear market, but it was very short-lived. It's been a long time since we've gone through a real true bear market. I'm talking one, you know, remember, a bear market is defined as a 20% correction from the from its highs. So it it can happen so fast these days, right? The level of the market, with obviously AI trading and and algorithmic trading, et cetera, that years past we really didn't have that much of it. But it can happen very fast. But what happens from from a psychological standpoint is absolutely devastating to people. And I'll explain why when we come back and continue our discussion on you need a plan B, your retirement plan. Welcome back to the John Sanchez show on Newstock 780K, which again a quiet but mixed market today with a 140 gain on the Dow, the NASDAQ lost 200, and the SP down 22 points. All right, I've just begun my topic again. You need a plan B in retirement. But before I get back to that, I want to remind everybody I am hosting my next educational estate planning webinar this Wednesday, 6 p.m. and I want to go to specializetrust.com and sign up. What am I going to be talking about? Well, here's the question. Would you go 10 years without seeing a doctor or maybe seeing a dentist? What about 10 years without checking your estate plan? It happens all the time. All the time. But remember, families change, assets change, laws change. An estate plan that worked out for you years ago may not work the way that you think it should today, as it did when you originally had it created it. So this Wednesday at 6 p.m., so August 26th, my free webinar, the estate planning checkup. That's what I've titled it. We're gonna check your trust. We're gonna check your beneficiaries, your powers of attorney, and how your assets are titled. Again, just go to specializetrust.com and register today. Okay, does your retirement plan have a plan B? So I gave you the scenario. We just started this next section. What can go wrong? And I left off with, again, a major bear market during the first few years of retirement. I'm gonna go through what's called sequence of of of earnings here in just a moment. I get a little technical with you, but Here's kind of the 10,000 foot view of this air, this issue, the major bear market during the first few years. Yes, financially, it's devastating. And I think the best way to share with you what I'm talking about is this. All right, let's say you retire with, you know, a million, 500, the amount doesn't matter. Let's just say 500. Okay. So you retire 500,000. And let's say you established a 4% withdrawal rate. So you're going to take out $20,000 a year, right? The goal is not to touch the principal. But all of a sudden, you go through a bear market, a 20% decline. So 20% of 500,000 is what? 100,000. So now your 500 is worth 400,000. Do you want to take 4% of $400,000? Meaning now your income has gone from $20,000 a year down to 16. That's the prudent thing you should probably do. But in reality, life doesn't work that way. You've set up budgets, your retirement, et cetera, to be living off that original 20,000. So you think to yourself, you know what, this isn't gonna last. It's it's a short-term hiccup in the market. It's not gonna last. But then we get into this long standing market decline, which nobody remembers what this market can do on a long-term basis, right? We're so used to the market going up year after year, the Fed coming to the rescue if things get bad, so on and so forth. It's not gonna always be that way. That's why we need a plan B. So now your withdrawal rate's screwed up. But let me get off the money side of it for just a second. Here's the real damage. It's the psychological side that happens to you. So let me tell you what I'm talking about. Again, you go through these emotions, right? You worked all these years, you're so excited, the day comes, you get to retire, and you think, finally, get to go do what I want to do when I want to do it, right? My definition of retirement. Then this bear market happens. Boom. All of a sudden you're down 20%. Your income's screwed up. And the first thing that goes through your mind is this. Why did I retire? Why did I retire? Why couldn't I have just waited and worked, say another year or worked long enough to get through this market decline? That's the first thing. So I call it retirement regret. Why did I just retire? So you went from this absolute phenomenal feeling that you get to retire to. Right? Again, not your fault. Second mental side that you go through, besides Why did I retire? Is what am I gonna do? If this lasts, so now the negative thoughts start coming into your head. What if this lasts six months, a year, or longer? Because all optimism goes out the door, especially if it's a very abrupt market sell-off. So all the optimism goes out the door. Now your brain goes to pessimistic ideas. I need to go back to work. I can't go back to my normal job. So now I gotta brush off the d the resume. Right? So you've gone from retirement to now thinking you got to go find a new job. Or I gotta start selling something. Honey, it's time for us to downsize the house. We we need to free up some of this equity. So you start panicking, right? It's human nature. There's nothing wrong with it. This is what people do. You start panicking because you're seeing your portfolio dropping day after day after day, and you're seeing your income beginning to become jeopardized. So we start looking at all different ways to liquidate assets, maybe go find a part-time job, maybe go back to work full-time. Who knows? But the bottom line is you're looking for ways to stop the bleeding. And then what this does, this goes from a time period that you should be happy to a time period where you're absolutely miserable. You start fighting with your spouse, you're stressed out, you're not sleeping at night, your life has just gone in shambles. And again, you keep thinking, why didn't I just wait a little bit longer? Well, I'm gonna help you with that. Next issue that causes a curveball in retirement: inflation. Now, inflation is it's Kind of like a cancer. It slowly eats you up and it starts to creep up on you when you don't even know it. Right? Causes those living expenses to rise so much faster than anticipated. And again, you're on a fixed income for most of you in retirement. But guess what? Inflation's not on a fixed expense. It's rising month after month, year after year. And you start to feel that that purchase power that you have that you plan for, you start to feel it erode. What used to be a whatever. three or four hundred dollar visit to to Walmart with, you know, X amount of groceries you walk away with. Now it turns into a six, seven, eight hundred dollar visit to Walmart or whoever your grocery store is, with a fraction of the number of bags when you walk out. That starts to panic you. Again, that's when people will go, I need to increase that four percent withdrawal rate to five, six, ten, whatever, because there's just not enough money. Same thing, the psychological side happens. Why did I retire? I shouldn't have done it. Numbers look good, everything looked perfect on paper, but in reality, I'm suffering. I don't even have enough money to take my wife out to dinner. Again, all these pessimistic thoughts start to go through your mind. When we come back, another curveball. The unexpected loss of a spouse. Welcome back to the John Sanchez Show on Newstock 780 KOH. Once again, our thoughts and prayers to those affected by the hawk fire. All right, we finished up 140 on the Dow. The NASDAQ lost 200, the SP down 22. All right, we're just getting warmed up into our great topic today. Your retirement plan needs a plan B. So we're talking about, first of all, some things that can go wrong in the beginning of retirement. I've covered a major bear market during the first few years. Inflation causes your living expenses to rise much faster than you anticipated. Now on to my next point. One spouse dies and the household suddenly loses a Social Security benefit. Well, of course, re expenses usually remain the same. This is a real life devastating one, folks. and I could I chose to use Social Security, but I could also use, as I think I covered on Friday, pensions, right? Especially if you have chosen a single life pension, right? Meaning it's the higher monthly amount in most cases, but when you die, the payment stops. So your spouse who's been used to that pension payment coming in of whatever 5,000, 6,000, 7,000, some massive ones that are out there. It stops. It's gone. And usually those people that have the pensions, like I said, usually it's first responders and things like that that have a really good one, and then of course, state and federal workers. remember a lot of those people have not paid into Social Security or they're not eligible. So it's not like, okay, I just lost my $7,000 a month pension when my husband died. yeah, you lost that and no social security benefit coming in. So it's a devastating, devastating issue that can you talk about dramatically changing your your financial cash flow. It's like I said, tough situation. Not much you can do about it. There's really no way to plan around that, other than some of the things I'm gonna mention here in a second. you get a next curveball is you get an unexpected health care or long-term care event. I've shared with you stories over the years of clients that, you know, started off with a, you know, would have thought was this kind of a a normal healthcare event. And all of sudden, before you know it, one spouse is being put into assisted living, and then maybe Alzheimer's care and so on and so forth to the tune of, you know, five to ten thousand dollars a month. Devastating, right? Most people cannot afford that. And if they didn't be proactive and have long-term care insurance or other forms of insurance, again, it easily can bankrupt a family in no time. next one is retirement happens earlier than planned because of layoffs or health issues, right? See this one a lot. we haven't had any major job layoffs in the economy in quite some time, but it'll happen. I promise you that it will happen during your retirement. And it may happen to you, right? You lose your job, you weren't expecting it, you weren't financially or mentally prepared, but it happens. Or you develop a health care issue that you can't go back to work is physically or maybe mentally, or combination of both. You can't work anymore. So you need to plan for that. another frequent one: an adult child or grandchild suddenly needs financial help. And I'm not talking about Hey mom and dad hey grandma and grandpa, you know, can you lend me some money for a down payment on a house? I'm talking a major financial event. some of the most common ones that I have seen. The adult children have a child. The child has major medical issues when they're a baby. Mom, dad, or both have to stop working. And they just have no income coming in. So mom and dad, grandma and grandpa, et cetera, will step in. And then that's usually kind of the beginning of some of the financial challenges. I mean, I'm not gonna sit here and bore you. You're all grown adults, you know how life goes. family needs help a lot of times. And again, if we we as parents and grandparents, we want to help them in many cases. We want to help them, but it can throw your retirement plan for an absolute curveball. a next one is a major home repair and unexpected expense hits. just talked to a dear friend of mine this morning and woke up Saturday morning in crawl space under his house, two feet of water. Luckily he's got great insurance. But you know, imagine if he didn't, right? So we all know that major home repairs can happen. God forbid, again, situation of a natural disaster, that type of thing. And the final one I want to mention that can throw a curveball is one spouse lives substantially longer than expected. I know it sounds morbid, but You know, as we all know, people are living much longer thanks to medical science breakthroughs. And that will probably continue to grow. I think, you know, probably in the next 10, 15 years, it's going to be very common for someone to live to be their be, you know, in their hundreds. And so that sounds great if they want to live that long, but it's can be devastating on the financial side, right? Instead of us planning for a 30, 35 year retirement, you know, maybe we're planning for 40 or 45 year retirement. That's a long time for that money to last. So to wrap up this, you know, what are what can actually go wrong, I want you to think about this. The question isn't whether someone unexpected, or excuse me, the question isn't whether something unexpected is going to happen to you during a 25 or 30 year retirement. The question is whether your plan gives you enough flexibility to deal with it when it does happen. Because I promise you, it will happen over your retirement. I promise you. That's why we need a plan B. All right, I told you I was going mention this one, which is what we call the sequence of returns, big fancy, you know, Wall Street term. And I want to explain this because it, you know, again, my my first item that I mentioned was a major bear market during the first few years of retirement. Well, this is where the sequence of return risk happens. Okay, so here's an example. Two retirees can have, you know, very similar investment returns over retirement, but still have dramatically different outcomes when the bad years occur. You see, and here's the reason why. If the market falls substantially during someone's first few years of retirement, as I mentioned, while they're simultaneously withdrawing money, which they do, they're selling investments while they're down and leaving fewer assets available to participate when the stock market does recover. Right? That's called the sequence of returns. I've seen sequence of returns happen literally a day apart, where give you so many examples. Literally a person invests in the same investment, let's say on Monday, the next person invests in it on Tuesday, and fast forward three, five, ten years, and it can be substantially different just in one day, much less when we're talking about sequence of returns over a retirement time period. It's amazing. And that's why, again, no one no one wants to retire when there's a bear market, right? But it does happen. Because you think about it. What causes a bear market? Usually it's going to be economic weakness, right? Something's happening. Interest rates are going up. But the bottom line is people are losing their jobs, right? Businesses tighten up, they get rid of people, cut expenses. Payroll is usually one of the biggest expenses of a business. Now you're out of a job and the stock market's going down. So, you know, I've seen it also where it's devastating. I didn't even get into this, but you know, you got your 401k and you're like, okay, I just lost my job, just got my pink slit. But you know what? I've got, you know, X amount of dollars in my 401k. I'll be all right. But then of course, by the time you're able to move that money out of the 401k, it's not all right. Maybe you've subs you know faced a 5, 10, 15, 20% decline. That's why, again, it's a good reminder in in your plan B of retirement. Remember, folks, every one of your 401ks, your 403Bs, so on and so forth, by law, they have to give you a cash or cash equivalent option, right? Something that where you can shift your money out of the stock market and into a safe haven place. So If you lost your job suddenly and you feel nervous, you don't know what's gonna happen, call up your 401k custodian and consider moving your funds into something safe and secure. Right. That's the most important thing. It's not about returns at that point. It's about preserving your capital. Okay, what do we need to do if the sequence of returns hits us? First of all, that's why we need to have a meaningful cash reserve. As I always tell people in retirement, cash is keen, cash is golden. You will never, most likely, unless you sell an asset, have the opportunity to save up after cash, after tax cash. So cash reserve, very important. Have, of course, different sources of retirement income. I cannot stress that enough. Do not rely solely upon the stock market. You need things like annuity payments coming in, safe and secure. Pensions, if you can do it. That's out of your control. Other sources of income, rental income, small business income, so on and so forth. Remember the next one, you can always temporarily reduce your discretionary withdrawals, what I call the variable expense side of things. That's why I like to track what are my clients' fixed expenses versus fixed income, variable expenses versus variable income. That's why I created that program called RISC, retirement income savings calculator. Because now we know, all right, clients spending whatever, $1,500 a month on variable expenses. Times got tough. Guess what? You got pull back, drop it down to a thousand bucks. Cut out going out to dinner a couple times. another way we can do it, we can delay a major purchase. We can draw from a different account. We can have guaranteed income, as I'd mentioned, to cover at least our essential expenses. So keep this in mind that sometimes the absolute best investment decision during a bad market isn't changing the investments. It's having another bucket of money available so that you don't have to sell, right? That's the last thing you want to do. The old basic Wall Street adage buy low, sell high. But a lot times when we get into bad market conditions and we need a plan B, the opposite happens. That's why you need a diversified portfolio, not only from an asset allocation standpoint, but also from an income standpoint. So what does plan B look like? I'll cover that when we return. Welcome back to the John Sanchez Show on Newstock 780 KOH. Again, we're talking about your retirement plan. It needs a plan B. And that's what I've been laid out so far as why do you need a plan B? I'm giving all the various reasons, a bear market, so on and so forth. Now, let's wrap things up with the following question. What the heck does a retirement plan B look like? A good plan B isn't one giant backup plan, but it's what I like to call several escape routes. Income flexibility is the first one. Where else can the paycheck come from if you don't want to sell investments? Again, are you gonna be willing to go back to work on a part-time basis? Start a business, get some real estate? Who knows what it may be? But what's gonna be Your income flexibility answer. Secondly, a little bit easier to control, spending flexibility. Which expenses are mandatory, meaning fixed, and which ones could temporarily be reduced, meaning variable expenses. You should know those off the like the back of your hand and know that if times got tough, immediately this is what we can cut out. Tax flexibility. Having money in different tax buckets, taxable, tax-deferred, and potentially tax-free. That can give you a lot of choices, also. What about housing flexibility? Could you downsize someday right away? Is there substantial equity available if circumstances change? This is why we always encourage our newly retired clients, whether their house is paid for or not, as long as they have equity. Get a home equity line of credit on that house before you retire. Why? Because it's so much easier to qualify, obviously, while you're still working. But again, plan B, this is real life. Plan B, we have X amount of money that we can write to ourselves. Yes, we're going into debt. But I'll tell you, if it's a matter of making your mortgage payment, putting food on the table, I don't think it's going to get that bad. But again, you get my point. You have a plan B by having a home equity line of credit. Social Security flexibility. Don't automatically lock yourself into one claiming strategy years in advance. I've covered this many times. You got to be very careful with strategy, your timing, so on and so forth. Excuse me, investment flexibility. Enough liquidity so that every dollar is not dependent upon market conditions. Right? We want some long term investments that maybe we can't get our hands on for a while, like an annuity. But we also want access to funds if something comes up and we need to do it. That's where your equity portfolio comes in, whether it's stocks, mutual funds, ETF, so on and so forth. So have that investment flexibility. And one important one: work flexibility. Somebody planning to retire at age 62 might discover that working just another year, or even consulting part-time, as I've recommended many times, can dramatically improve the plan. point is that they'll not necessarily have to do it if they have other choices. I want to squeeze on this next one: stress tests. This could be really important. What if the stock market falls 25% the year that you retire? Inflation stays elevated. You live to age 95. Your spouse dies 10 years before you. You need $100,000 unexpectedly to help the kids out. You need long-term care. Social Security, for whatever reason, didn't provide exactly what I've projected. And I have to retire three years earlier than plan. I know I just threw a lot at you. But these are the issues I've discussed. These are real life things. Then I want you to ask yourself after you do this stress test does my retirement plan still work? You don't necessarily need to answer yes to all of these. But a good answer can be yes, but here's what we would change. That's what makes it a plan B. A great retirement plan is not one that predicts the future perfectly. No plan can, no human being can, no AI can. It's one that doesn't require you to. You have spent decades accumulating your money. Retirement planning is about creating enough flexibility so that when life inevitably changes, which it always does, you aren't forced to make major financial decisions. That you don't want to make at the absolute worst time, right? None of these things ever happen at the right time. They're always at the worst time. The old Murphy's Law scenario. That folks is the difference between having a retirement projection and having a retirement plan. That is the difference of having a human being monitoring and managing your retirement plan so you can go live your life versus saying, hey, AI, create me a retirement plan, or hey, you know, some automated system out there, create me a retirement plan. It will never, never accomplish these things I just talked about. This is where the human element, the experience, few gray hairs comes into play. We've gone through this, we've understand it, we've we've navigated and guided clients through it. That's what a good solid retirement advisor does. And that's what we'd love to have the opportunity to serve you with at Sanchez Gon Capital Management. So the bottom line is we I need a plan B in so many areas of our life. Retirement is one that's often forgotten. Now you have the tools necessary to do it. don't forget you can pick up our show, of course, if you missed today or you want to hear it again on Spotify, iTunes, YouTube, et cetera. And once again, God bless all of you affected by the by the hog fire. our hearts are with you. And again, if you need anything, please reach out to us. We do anything we can to try to help our friends and neighbors. Love you all. God bless. We'll see you tomorrow.