Latest / Financial Survival Network / Rethinking Retirement: Planning for Life After 65 - Eric Mangold #6045

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Rethinking Retirement: Planning for Life After 65 - Eric Mangold #6045 · Financial Survival Network

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  Well, I mean, AI is obviously changing, changing our worlds, and
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  uh, changing our worlds fast. We could probably comprehend. You know,
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  AIS is obviously interesting. You know, I still wouldn't use it to to
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  really create a retirement plan for myself. Again, it's it's it's going to
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  be some one of those things. It's going to give you more of a
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  of a cookie cutter type of type of bancer versus something that's completely customizable to
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  you in your situation and what you what you want your legacy to be.
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  You're listening to Carrie Letz's Financial Survival Network, where you get valuable information you
• 0:35
  just can't find anywhere else to thrive in today's trying times. You need the
• 0:40
  Financial Survival Network now more than ever. Go to Financial Survivalnetwork dot com and
• 0:46
  get your free newsletter and gift. Financial Survival Network now more than ever.
• 0:56
  And welcome you are listening to and watching the Financial Survival Network. I'm your
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  host, Carrie Lutts. Well. Two fears in life. Well, one
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  main fear that I have and I'm sure many of you out there do as
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  well, and that is that your money is not going to outlive you or
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  outlast you. You're going to outlast your money. And that is a nightmare
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  because what do you do then go back to your kids. Last thing you
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  want to do, because they'll put the screws to you. You know,
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  they're going to be controlling your life. And of course retirement, you know
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  the concept of retirement. You work twenty five thirty years for the same company
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  and then they give you a gold watch and send you on your way,
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  and then you retire. And so many of you out there no people who
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  passed on in like a matter of months after their retirement. So, hey,
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  I'm in my sixties now. Retirement has absolutely no allure to me whatsoever.
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  It had more of an allure Eric, than when I was forty then
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  when I hit sixty. So good figure. Eric Mangold is with us,
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  founder of Argency Wealth Management and in my birth state, New Jersey. Eric,
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  it's great to have you on the show. So what of this retirement
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  thing. We got this article from CEO Larry Fink Black Rock say in time
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  to rethink it. Is that just a question that he wants to raise the
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  retirement age and all that to put down on the social security deficit. What's
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  up with that? Yeah, Kerry, thanks for hosting me Glad to be
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  here. Yeah, So Blackrock CEO Larry Fink came out and said, I
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  think people really start to need to rethink retiring at age sixty five because,
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  like you said, who's really retiring at sixty five now? And was that
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  just the date that everybody did it or is it just is there some significance
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  outside of when you know, that's what medicare gets kicked on, like why
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  is it sixty five? You know, and we're living longer too, so
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  is sixty five early to date? And for more and more people doesn't seem
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  like it is? Right? Yeah, for sure. You know, I
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  don't think I'm unique by any means. I think that the drudgery of work
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  where our parents' generation perhaps led them to want to escape it. Many of
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  you out there your parents were in that situation. But now it's chained work.
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  Not that it's necessarily more important part of our lives, but the role
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  that it plays I think has been recognized as something way beyond just actually putting
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  in your nine to five and getting a paycheck. There's social aspects to it,
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  there's a mental acuity aspects. And you know, my best friend he
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  retired like three or four years ago, takes care of his grandchildren, travels
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  and all that. And I thought about it for a while and I just
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  said, there's no way I can do this. I can't do it.
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  Eric. I mean, the BBC came out with a study about twelve years
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  ago, ten twelve years ago that said that people that retire and don't have
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  a game plan they did, the rate of depression increases by forty percent within
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  like six months. So it's you know, retirement kind of sounds all great,
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  like, oh, I'm not going to work anymore, We're not going
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  to work anymore, but that honeymoon doesn't last all that long, and you
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  know, one two months of not working and you're like, Okay, this
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  is great, this is great. You did all the home projects that have
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  been you know, on the honeydew list forever. You took care of those,
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  You took care of the Martinez by the by the dock and everything.
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  But now it's like, all right, what's what's going to make me happy?
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  And sitting around is not going to do it for most people. Yeah,
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  I think a good rule of retirement. And this is what I did
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  when I moved to Florida, is I don't drink. I don't have any
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  alcohol until the sun goes down, except sometimes on the weekend for brunch or
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  something. But I'll never drink if the is out. And you know,
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  the other thing is what do you do when you're retired and you don't have
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  that plan? You wind up watching a lot of news and nothing will make
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  you more depressed than watching the news. So I never watched news on television.
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  I'll only read it because you know, a lot of it's manipulation,
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  gas lighting and all that. So all right, but some people have to
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  retire for health reasons, family reasons, take care of a loved one who
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  needs there needs them to be a caregiver. So for those people, what
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  do you advise? Well, I think that in those cases, and those
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  happen a lot as well, is what is the plan? I mean,
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  the folks that are caregivers, they're really lies their activity, right, they're
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  a caregiver. They're not sitting around and then trying to figure out that it's
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  eleven o'clock on a Tuesday, what am I going to do today? Now?
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  Their full time job is taking care of a loved one and that's what's
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  keeping them keeping them active. I mean, it's not the most positive vironment,
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  but it's certainly keeping them active. But I think for anyone that's really
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  considering retiring and not working at all really needs to have a plan. And
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  what that plan really needs is going to be is Okay, what do they
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  want retirement to look like? What do they want them what do they want
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  their money to do? And what do they need their money to do?
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  And what I mean by that is Okay, they obviously want their money to
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  last, they want their money to grow, they want their money to be
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  there when they need it. And then what do they wanted to do?
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  Is it travel the world? Is it you start start the side hustle.
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  More people who are retired, they have opest post age sixty five are starting
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  these side pit hustles now because you know why they can. The environment is
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  great for the side hustle. So a lot of people are retiring, maybe
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  stopping working at sixty to start the side hustle. But anyway, for those
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  people that need to retire, having a plan. If the boy Scouts say
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  the best time to have the map is before you enter the woods, and
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  I think that really applies to retirement too, because you got to have your
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  plan. It's not a DIY project. You know, you got to map
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  it out, all right, So what's the best way to do this?
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  I mean, I hear what you're saying, but I don't really know how
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  to do it. I think, you know, if you can break it
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  down into really there's there's seven pieces of it. The first first piece is
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  obviously, have a plan, got to have again, time to have the
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  map before you get in the woods. The second piece is going to be
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  how do you maximize your Social Security benefits? And there is, yes,
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  a ton of talk, a ton of gloom, doom and gloom about is
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  the money going to be there or the benefits going to be paid? But
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  let's just take that off the table for a second and just say that they
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  are going to be paid. You know, how do you maximize the benefits?
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  And you know people can start collecting at age sixty two, but is
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  that really when you know you're going to start to need the money? Because
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  remember, social Security continues to grow. The longer you wait, the more
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  you get. And that's a paycheck that keeps coming into your checking account every
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  single month, whether the market goes up, down or sideways. So maximizing
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  social Security is a great is great. Step two, Step three, and
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  we're certainly seeing this a tremendous amount, is the hybrid retirement where you stopped
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  working for the company that you maybe stayed for when you're until you're sixty five,
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  but then you pick up some extra hours. A lot of substitute teachers,
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  a lot of adjunct professors can go in a couple three days of a
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  week and really kind of create their own schedule, stay active and bring in
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  a few extra dollars. Because the more dollars you're able to bring in by
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  working a few more years excuse me, into retirement is going to have a
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  dramatic effect on how much longer your money will last. Okay, and I
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  think step four is going to be you got to protect your money from inflation.
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  And obviously that's a hot button topic right now. I mean, everybody
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  keeps talking about when rates are going to get cut, Rates are going to
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  get cut in every single number, and that's that's tracking in that we've seen
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  over the last months, few months it's been going on. So I don't
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  see a rate cut really anytime soon right now, because of the fact that
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  the economy is still overheating and interest rates are already high, and I just
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  don't think they can bring them down. So how do you protect your assets
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  from inflation? And you should have a bucket of assets that are going to
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  be protected from inflation. Okay, so inflation proofing your investments. I mean,
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  I hear a lot of people talk about it, but I don't really
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  hear a lot of people with really good ways of doing it. I like
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  to use a call a bucket strategy, where you have a bucket of money
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  that's going to be your guaranteed sources of income. This actually is step five,
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  and I'll answer step four the answer your question on stuff four too.
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  But step five is how are you securing your guaranteed sources of income, whether
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  that's Social Security, whether that's pensions, whether there's are annuity strategies, real
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  estate. What are your guaranteed sources of income? And you want your guaranteed
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  sources of income in this first bucket to really take care of most of your
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  expenses, if not all, of your fixed expenses. If you're carrying a
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  mortgage, pay those off utilities, grow streams, dry cleaning, your travel,
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  your entertainment, your fund of things. Now you want those, you
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  want those expenses covered, and the second bucket is where you're able to have
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  those funds, those assets in investments that are designed to grow and designed to
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  grow and actually keep help keep pace of inflation. And when whether we're talking
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  about traditional stock, a bond and mutual fund and investments ETFs or going into
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  the alternative investment space, but that second bucket of money needs to outpace at
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  least or or at least keep pace, if not outpace inflation. So it's
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  kind of a one two punch. Secure your guarante, secure all your expenses,
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  guaranteed sources of income, and then have your second bucket of money keep
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  pace or out based inflation. Right, all right, so all right,
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  what's the best way. What do you think is the best inflation heads out
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  there? I think it's something that is constantly evolving. I mean, there's
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  going to be Obviously you see a lot of articles and about some traditional stock
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  and bond investing in mutual funds, but also into alternative investments, whether that
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  might be real estate, whether that might be private equity, hedge funds,
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  credit lending. There's a lot of different flavors of alternative investments. And you
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  know, we do a lot of due diligence on our side to make sure
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  that our suite of alternative investments are really have really been been vetted, and
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  because what we want to make sure that they can do is in twenty twenty
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  two is a great year as an example of this, because in twenty twenty
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  two, in the stock market and the bond market we're both getting cloppwered.
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  There are a lot of alternative investments that we're still giving positive returns, so
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  they can sometimes be speed breaks as part of your portfolio. So if the
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  market happens to go down, your stock investments aren't going up, the alternative
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  investments can still give you a positive return. So I think it is a
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  mix of some stocks and bonds as well as layering and alternative investments to help
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  not only grow your assets, but if certain sectors are down or certain asset
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  classes are down, you're going to have other asset classes in your portfolio that
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  are going up. Okay, So some diversification here. What about these the
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  flavor of the day? You know which one? Now? Right? Heyeeks,
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  like there's well, I mean AI is obviously changing changing our worlds and
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  changing our worlds fast. We could probably comprehend, you know, AIS is
• 12:37
  obviously interesting. You know, I still wouldn't use it to to really create
• 12:43
  a retirement plan for myself. Again, it's it's it's going to be some
• 12:46
  one of those things. It's going to give you more of a of a
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  cookie cutter type of type of bancer versus something that's completely customizable to you in
• 12:54
  your situation and what your what you want your legacy to be. Okay,
• 12:58
  so it's the flavor of the day, and maybe in Vidia is going to
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  infinity. But look what's happened at Tesla recently, so we know about how
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  that works, right, Yeah, And Tesla came out in the news today
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  that said they had to lay off I think they're laying off at about ten
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  thousand employees, which is something that they, yeah, never wanted to do.
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  So you know, it's funny how those flavors of the day they changed
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  quickly. Yeah, isn't that interesting? Today's hero is Tomorrow's the one?
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  Right? Well, yeah, I thought you were going to ask you about
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  crypto. Well, crypto too, So you know, crypto is hitting mainstream
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  now. We got ETFs, we've got funds, we got options, futures.
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  Do we want to be in crypto? I typically say that you don't
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  want it as a foundation of your overall investment investment portfolio, and if you
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  want to, I take it almost like the going to the casino night money.
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  And you know a lot of people go to the casino night and they
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  say, you know, I've got one hundred dollars and once that's gone,
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  you know, I'm done gambled for the night. And that's kind of how
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  I look at crypto, because it has had some positive times, but I
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  look at it as something I just I just don't have that confidence to put
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  a significant portion of a portfolio into crypto. Okay, well I buy that.
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  I buy it, so not a significant portion, but is five percent
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  Okay? I think that's something that could be safe. It's not something you
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  want to have if if it does go down, does it totally derail your
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  retirement plan? I mean, really, no investment that you should own should
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  really if they go down, they should not be derailing your your overall retirement
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  plan. Okay, So crypto, precious metals, same type of thing,
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  same type of thing. To hear a lot a lot of news, a
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  lot of advertisements for gold. I mean, again, is this something to
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  is this something to put put a portion of your portfolio in, maybe a
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  small portion of it. You know, I think it's something that's it's again,
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  it's not going to be something that's going to break the overall strategy.
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  It's going to be something that it's more more speculative for sure. Okay,
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  so speculatively more of a traditional guy, Carrie, more a traditional type of
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  guy. Yeah, Well, you know, like traditionally, what happens,
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  the sheep get shorn, that get slaughtered, right. Well, I think
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  that's also where I come in with the alternatives, the alternative sleeve, because
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  those are things that there's a wide variety of alternatives. Not all of them
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  are good, and obviously they have to be vetted very very carefully. But
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  I think the alternative space is something that's been growing significantly, and for that
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  reason because you know, traditional that that traditional stock and bond investment of the
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  sixty to forty portfolio just hasn't been getting it done like it used to be
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  able to. Right, Okay, So things have changed, right, definitely.
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  So if somebody's sitting down and they're like getting close to their sixties,
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  and you know, they've saved, they've got some savings, maybe not enough
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  maybe not enough investments. What are three things that you think they can do?
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  You could say the first thing I would have. I mean, obviously,
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  and coming from a financial professional standpoint, they should find a financial professional
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  that they trust and have them build out a retirement projection and say, okay,
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  if we're on if we're on this path and we stay on this path,
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  in terms of how much we're saving, how much we're investing, you
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  know, a reasonable rate of return over the next ten to fifteen years.
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  What does our and also understand our expenses and put an inflation rise in that
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  on the expenses as well. What does retirement really look like? How much
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  money is going to come in the day come in day one of our retirement?
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  And am I happy about that? Or am I scared about that?
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  But if I know now, if I know in my fifties what my retirement
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  projections could look like when I'm sixty five, I have time to make changes,
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  time to change things up, time to make things better for myself.
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  Because I always say to people, you know, retirement is not a duo.
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  It's not a DIOI type of project. But it's not a dueover type
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  of situation. You know, when we were growing up and we're playing hide
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  and seek and somebody, you know, when you're eight or nine years old,
• 17:15
  is bending the roles. You know you always said, okay, well
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  you kind of bend the roles in that one. Let's do a do over,
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  you know, when you start the game over again. Retirement's not like
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  that. Whenever you decide to pull the trigger in a retirement, what you
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  have is what you have. There isn't a due over and say, I
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  wish you did this ten or twenty years ago. So the earlier you can
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  diagnose what your retirement may look like and understand is that something that's attractive to
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  you, it's going to be really really beneficial for your future. Again,
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  time to have the map is before you enter the woods. If you can
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  get an diagnosis on your retirement in your fifties or fifteen years earlier, you
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  have plenty of time to make some changes and make retirement look the way that
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  you want it to look. All right, well I buy it the sooner
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  the better. And ounce of prevention is worth pound a cure, right,
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  Yeah? And what was pat and saying? You know, gallon of sweat
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  says it, or a pint of sweat saves a gallon of blood type of
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  thing. Maybe that's not kind of negative for a time of pods, for
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  a time of conversation, but it's so true. You know. It's like
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  or warned is forearmed, right yep. So so we need to take all
• 18:23
  these things into into account. When people think, am I putting enough away
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  in retirement? Don't you think that everybody could put ten percent more into retirement
• 18:37
  than you're doing now. I think one of the biggest things that is tough
• 18:42
  to understand is when people think, Okay, I'm maxed out my formal Okay,
• 18:45
  I'm going to be fine. And I think the problem is is that
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  for many of the people that we talk to, and this isn't just ultra
• 18:52
  high net worth people, right, but a lot of the people that we
• 18:56
  talked to, the formal case simply not going to be enough. You have
• 18:59
  to do it saving on the outside of the four oh one K four key,
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  nothing wrong, nothing wrong with it, right, but it may not
• 19:06
  be enough. And again it goes back to projecting how much you're going to
• 19:10
  have saved by the time you retire, because what we're finding that what we
• 19:15
  have found is that the four on K is probably not going to be enough,
• 19:18
  you have to do something else. So I think so I think a
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  lot of people can save more than they they're saving, and I think they
• 19:23
  can save more than they're saving without it taking a bite out of their lifestyle.
• 19:29
  You know, they don't want to have to say, Okay, I'm
• 19:30
  not going to be able to go on vacation this year because I'm saving for
• 19:33
  retirement. You know, while that sometimes is a rare case, more times
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  than not, it's it's something that saving a little bit more is not going
• 19:41
  to take a bite out of your lifestyle to the point where you're going to
• 19:44
  feel it all right. So I guess people you want to know how you
• 19:48
  can connect and get to know Erica. Where do we find you out these
• 19:55
  days? So you can head over to my website. It's Emangold dot com,
• 19:59
  ww W dot Emailgold dot com. I do work a lot of medical
• 20:03
  professionals, but I always say to people eat it. When people say how
• 20:07
  do we work with you? You know, do is there a minimum or
• 20:10
  things like that, I always say, I want to work with people that
• 20:14
  are respectful of our relationship and are fun to work with and what and actually
• 20:18
  want my help. So while I do work with a lot of medical professionals.
• 20:22
  I'm not going to shy away from somebody because if they ask me for
• 20:25
  my help, I'm going to try to give it to them. But emailgold
• 20:26
  dot com is my website. That's where you can learn a little bit more
• 20:30
  about me, what I try to do for my clients, and also connect
• 20:33
  if you'd like to connect. All right, excellent, Well the links in
• 20:36
  the show notes to this interview on Financial Survival Network dot com. Make sure
• 20:41
  when you go there you sign up for your free newsletter. If you've got
• 20:44
  a question for Eric myself, email kl at Carrie luds dot com. Eric
• 20:49
  appreciate you coming on and thank you Carrie so great, Thank you very much,
• 20:53
  Thanks for listening to Carrie Lutz's Financial Survival Network. Your solution to today
• 21:00
  trying times. For the latest, go to Financial Survivalnetwork dot com. Financial
• 21:04
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