Latest / The Jon Sanchez Show / How To Build A Retirement Paycheck
Transcript
- Jon G. Sanchez: Good Friday afternoon to you. Welcome to the John Sanchez Show One News Talk 780K, which pleasure to be with you. T G I F. We made it to another one. We did indeed. so great to be with you. We've been looking forward to today's topic. We're gonna recap today's stock market activity. And for those of you that may be new to the stock market, you're gonna be in for a treat. Because I'm gonna I'm gonna teach you something today that new investors have idea exist in Wall Street. And it's called the Glass Half Full. Or the glass half-empty strategy. You see, that's one of the problems of being a brand new investor. Common sense logic many times does not come into play in Wall Street. We go through periods where many times it's better to almost do opposite of what your common sense tells you to do. Sometimes logic does uphold, but it seems as time goes on, here's my my little two cents. As time goes on and AI becomes more prevalent on Wall Street, managing trades and making investment portfolio decisions, et cetera, common sense longer becomes logic. These algorithms are going to do what they're going to do based upon their certain criteria. So we as human beings find ourselves battling what, again, would be a common sense trade. You know, this happens, I'm gonna buy. That happens, I'm gonna sell. Many times that doesn't happen anymore. Many, many times. Matter of fact, the majority of the time. And today's a prime example of this. We had a non farm payroll number this morning that I'm gonna give you some some details on that was terrible. And what happened today? Markets rally. S P 500 closed at a record level. And again, if you're a brand new investor, you may be thinking to yourself, and you saw this today and you saw the headline, or you heard me on the stock updates this morning, you go, wait a minute here. How can this be? We lost 23,000 jobs in the month of July. 23,000 jobs. But again, the market rallies on the news. But what no one's talking about is this is the beginning of a trend because it wasn't just this month that was terrible. They revised June's data down by about 66,000 jobs from what they originally told us. And we walked away from the month of June with only 20,000 jobs created. Now, mind you, folks, up until going to say six months to a year ago off the top of my head, we were an economy that was averaging about 220 to 230,000 jobs a month. If you go back over a 12 month time period, that was our average. That was a Goldilocks number. That was also before AI really took off. But here we lose 23,000 jobs and the market gets excited about it? ⁓ you new investor, I am I feel terrible for you. Because you got to be sitting there scratching your head. Sure, you enjoy hopefully the gains in your portfolio, but you're trying to make sense out of it or or ⁓ kind strategize as far as you know where you're gonna be allocating the portfolio, you again you're scratching your head going, wait a minute here. Does that mean I should invest in the stock market when the at least the jobs picture of the economy is slowing down? Well, once again, That's where we find ourselves in a situation where it depends upon what side of the trade you're on. Glass half full, glass half empty. So I'm gonna go into an explanation of what happened in this jobs number today and why the market rallied on the news versus selling off, which again would be common sense. later in the program, I I thought this would be a fun topic. It's Friday. Many of you got a paycheck today. But have you ever thought about when I retire, how am I going to build a retirement paycheck? Right? No longer have an employer. Money's not going into my account anymore. I've got to be self-sustaining. I've got to create my own paycheck. But how are you going to do that? Well, today I'm going to help you answer that question. I've titled today's show, How to Build a Retirement Paycheck. It is really that simple. it's going to be fun. I'm going to share with you some ideas and strategies that you may not have heard about before. Because again, you've got to, in this market, this economy, this environment we find ourselves in, you've got to be self reliant. And you also have to kind of think outside the box. And that's what I try to bring you on this show almost each and every day. I can't do it every single day, but Outside of the box ideas, outside traditional thinking. Nothing crazy, solid advice, but again, just outside the box a bit. Now, before I get started in today's stock market recap, I want to give you a quick ⁓ reminder of my upcoming estate planning webinar. I'm so excited to ⁓ to get this going. Next Wednesday, August the twelfth at 6 p.m., I've titled it Trust Funding: The Step Most Families Miss. Again, next Wednesday, August the twelfth, six p.m. cost, no obligation. Just join me. Learn. That's all this is about. Learning, learning, learning. How do you sign up for it? Very simple. Go to my website, specializedtrusts.com, specialized trust.com. And right on the homepage, click here to register. It's really that simple. I'll give you some more reminders later in the program, also. Okay. So you're ready, Mr. or Miss New Investor, as to why this market has no common sense right now. my goodness. All right, here we go. So before I give the explanation, let me let me kind of kind of build this scene for you, right? It's like we're gonna build a movie. things are driving the stock market right now in your portfolio. Number one, of course, the earnings season. Companies report earnings that are good, better than expected. Most likely you're gonna see their shares rise, and that has a you know ⁓ effect to the rest of the market, right? All tides lift, or what is it? All tides lift. falling boats or something, whatever the saying goes. But you know, you look at it again, we have days where everybody loves the semiconductors, the memory sh stocks. Other they hate them and the whole group goes down. Again, all tides go up and down. But it also carries over because this group is so very important because it's AI related, et cetera. It's so very important to the overall market. So that's you want to try you know basically kind of see the health of the stock market. Forget about the non farm payroll numbers. Obviously the street doesn't care about it, as I'll explain in a moment. But watch what the semiconductor conductors are doing, watch what the memory stocks are doing. And that'll give you a pretty good idea of the attitude of investors. But the second factor, which is, I wouldn't say a distance behind the first important factor, again, the semiconductors, but not far behind, the Fed. What is the Fed's next move? Well, you know, I told you when when we we when we lost Mr. Jerome Powell, which I had a tremendous amount of respect for as our former Federal Reserve Chairman, I told you it's always a ⁓ challenge when manage money as I do, and ⁓ You try to figure out the personality of this new Fed chairman, Kevin Worst. He's kind of a tight lip guy. I mentioned this on the show with the boys yesterday. Everyone's still trying to, again, get a feel for him. It's like when we were younger and we went on dates, it's like you go on that first date and you're like, what's this person really about? So maybe you go on a second date and you get them figured out a little bit more and so on and so forth. Well, let's say we're on maybe our second date with Kevin Warsh at this point. We really don't know. I mean, we know his history, which is an incredible past. Extremely wealthy guy, former Wall Street, so on and so forth. But as far as ⁓ you know, ⁓ How his character and his personality is when it comes to the Federal Reserve and interest rate decisions and leading the FOMC, we're still trying to figure it out. Again, meetings, the the the conference after the Fed meetings, completely different. He he wants to manage this Fed ⁓ and things completely different than his counterparts or his ⁓ predecessors, excuse me. So the street after our last interest rate decision and press conference, et cetera, as I've said many times, very, much leaning towards an interest rate increase at the September meeting. I've been sharing with you the statistics. It's not a by any stretch a a done deal, but you know, we've been hovering around thirty to forty percent probability, which is pretty high considering that meeting is still a ways away. And we felt that the only thing, and I said this on the show yesterday, if you if you missed it, Dwight asked me, he said, you know, what do you think the market reaction is going to be And I said, Well, if it's a weak jobs farm or non farm payroll number, we could see the market go up. If it's a strong one, we could see the market go down. And I said, Why? And this is what happened in the market today. We wanted the glass half empty, meaning we wanted a weak jobs report. And boy, did we get it. Why did the street want that? Just as I said yesterday. Because it boots the probabilities out the door that we would get that quarter percent increase come September. Now, that's the streets interpretation. I promise you, if I had Kevin Worsh as a guest on the show right now, I said that same question, Mr. Chairman, you just lost twenty three thousand jobs in the economy. Is that enough catalyst for you and the rest of the members of the FOMC to give us an interest rate cut at your September meeting? And he'd probably I have no idea, I don't know his personality. He'd probably laugh, I would assume. Say, John, John, John, John, you've been at this for 36 years. You're gonna ask me that stupid question. You know that we don't make market reaction one report, good or bad. What does every Fed chairman say? We look for trends. Two, maybe more months of either good or bad economic data before they make a decision. They're not knee-jerk like investors are. I think that's what he would say. So why the street got excited about our economy faltering on the labor front? I have no idea. Well, I do. And that is because of this one report, this one report, the street is now confident that, you know, we can s kind of kind of move the pendulum a little bit to the next move is going to be an interest rate cut versus where the pendulum was, you know, prior to five thirty this morning, which was the next move is gonna be an interest rate increase. That's what drove the market. And that's what I was saying earlier. If you're a brand new investor, you would say, wait a minute, the economy, we need jobs, right? People have to work. To go buy things, buying things produces corporate earnings, which produces stock performance. They're not, you know, if people aren't working and we're losing jobs, not a good thing. Again, Wall Street throws that logic out, says, how does this impact the Fed's next move? And the conclusion, and it right, you know, right after the report came out, is hey, yes, jobs report, chance gonna get an interest rate cut. That will falter. We'll get back to the basics of earnings next week, but today's reaction was this bad news was actually good news for investors. All right, I'll tell you this market reaction when we come back. Let's turn it over to the Sax Man in the right now traffic center. Mm-hmm. Welcome back to the John Sanchez show on NewScalk 780K, which happy Friday to all of you. All right, a lacklustre, terrible non-farm payroll number. Because I'm going to delve into the details here in a moment. But it didn't affect the stock market, as I said earlier. Here's how we finished up. 152 gain on the Dow, 0.28%, 54,036. Nasdaq surge 342 points. 1.3% finished the day at 26,690. The 500 higher by 48 points, 0.62%. To close at a record of 7,757. Pretty amazing. Pretty amazing. Oil side ⁓ had a slight uptick there. again, if you're not to date on the latest Iran situation, what we're being told, of course, is Iran and Oman are making progress in their negotiations. But we still have not heard anything about where we're involved. Remember, as of yesterday, Iran saying, gonna control who's coming into the strait. And kind of said, Yeah, that's cool. And ⁓ by the way, we're not allowing any US ships to come into the strait. That's what Iran said. Still haven't heard any reaction out of the president other than things are going well in the in the ⁓ negotiations. And that's what the oil are believing. So we will see. So, you know, bottom line is no one knows what's going on behind closed doors. But oil's saying there's be a deal. There's gonna be a deal. Gold prices today, what a nice move here. $97.50 rise, $4,398. to the bond market, we lost two basis points to finish at 4.65%. And a nice pullback for the week, down 10 basis points. See, the bond market's doing the work of the Fed. Fed doesn't have to do anything. Now ⁓ I had a chance. I was able to ⁓ to dig up numbers. I want to see ⁓ where we sit on a probability, as I was mentioning, ⁓ now that had this terrible non farm payroll numbers. According to the CME Watch tool. Here's where we sit. The probability of a quarter percent increase the September meeting fell from 55% yesterday to now 41.9% today. See what I said, how the street reacts to this? Like, yeah, bad number. Fed's gonna be our friend. The probability of at least ⁓ rate hike in September dropped from 71% yesterday to 57.3%. Today. not only are they, you know, looking at again I mean, I'll I'll be honest with you, when when you get up around high forties, fifties, and beyond as far as probability, the street is usually fairly accurate. This report, this Fed CME Fed Watch toll, fairly accurate. I you know, I would say I'm probably still on the fence fifty fifty what the Fed's next move is gonna be, but it's starting to edge up. You start getting up in that sixty seventy percent probability, pretty good likelihood that's gonna happen. So we're again we're kind of sitting on the fence here. Pretty confident of a September ⁓ or excuse me, an October increase, but still on the fence regarding September after today's report. So there's the ⁓ where the statisticians hold it at this point. But let's jump into this jobs report because this does affect your life, your portfolio, and maybe you're some of these that lost a job, unfortunately, in the in the month of July. So let kind of hit the ⁓ the highlight numbers and I'll delve into ⁓ into the some of the details. So once again, for the ⁓ the month of July. The economy lost 23,000 jobs. The street was looking for, depending upon whose predictions you were looking at, between about 85,000 and 90,000 job creation. But what got everybody was the revision for the month of June. They always revised the previous two months. So if you go back to June and May, total revision was about 66,000, if I remember correctly. And that showed the economy with that revision in the month of June only gained 20,000. ⁓ Once again, our historic numbers, north of 200,000 monthly job growth on average. So two months now. So now we were talking about trend before the break. Now maybe we're starting to develop a little bit of a trend. The bull side out there right now is saying, but wait a minute here. June and July, May and June, there's always a lot of revisions. Remember last year we had that, gosh, I don't remember what that number. It was a massive revision in in May and June. Hundreds of thousands of jobs they wiped out because of seasonality factors. On the other side of the camp, economists today are saying, yeah, but when you, you know, when you got two reports, okay, we could see the the revision in June, where again we only gained 20,000 jobs, 66,000 or so less than what they originally told us. But when you got a second month going, meaning the month of July, that's starting to begin a trend. So that's that's the there. But anyways. Let's get down to the details, see how this affects you. So The unemployment here, let me find a bright spot here. The unemployment rate. At least on the surface, it appears to be bright. See, here's the great thing about reports, right? They can twist these numbers any way they want to, and I'll tell you what I mean by that. So the headline is hey, we went from a 4.2% national unemployment in June, now down to 4.1%. Sounds pretty good, right? So they're not counted as unemployed. There's about a million of them to be exact that have said, I can't find a job. I haven't looked in the in the ⁓ previous period. So therefore, I'm no longer counted. So you get a million people just waving the white flag, as I call it. They're giving up looking for a job. Mysteriously, the unemployment rate drops from 4.2 down to 4.1. And other than you, my incredibly smart audience, they're gonna see that head number headline number tomorrow and their favorite news, and they're gonna go, hey, things are great. Look at unemployment's only at four point one percent and we drop. Things are really, really good. They're not smart like you. They don't they don't know the what's going on behind it. where did we see some of the damage? Government. Government job losses pulled the numbers into negative territory. About job loss ⁓ in government sector is what I recall. Private sector made a weak showing as well. Now, on Wednesday, we always get the ADP private sector report, which is generally a big miss compared to what the government tells us. They were pretty close this time. On Wednesday, ADP said the private sector job growth was 30,000. ⁓ In reality, today we learn the private sector job growth was a whopping forty four thousand jobs. Now, a bright spot was in the construction side of things, probably because of the AI boom, right? AI data centers. So the construction sector added about twenty two thousand jobs last month. Manufacturing gained five thousand jobs. But here's one that worries me. Okay. Especially we we all grow grew up here in northern Nevada and we know how important leisure is to the economy. And we all know, of course, how important it is in the middle of tourist season. Well, let's expand that across the country. Leisure and hospitality in the month of June lost forty thousand That's after cutting even more in June. So that has me worried. It's like, well, what's going on there? So let's put a little bit of logic into this. Leisure and hospitality loses 40,000 jobs. First question that should come to your mind is could these jobs have been lost to AI? not, right? They still haven't figured out how to, ⁓ know, wait a table or clean a hotel room or do anything that those hardworking leisure and hospitality employees do. So therefore, this is. Maybe on the corporate level. CFOs, CEOs, the C-suites going, hey, you know what? Because of AI, we can get rid of a bunch of jobs in the office, in the in, you know, in physical type of jobs. But that gets thrown into leisure and hospitality. So what we don't know, again, were those food servers, bartenders, or again, was it people in the office on the corporate side of things? But you know, the bottom line is that sector lost 40,000. Very, very unusual for this time of year. Retailers. No surprise here. I you couldn't pay me enough money to own a retail shop right now or a restaurant. lost ⁓ employees. Private sector education and healthcare jobs, this was a nice gain there, 25,000, but a relatively poor result for what has been a big source of new jobs over the past year, right? ⁓ every Friday or every month, you know, once a month on a Friday, when I tell you these numbers, it it's like clockwork you can count on the the healthcare area to grow. It's just ⁓ obviously Through the pandemic, through everything, it is by far one of the most steady job growths. Over the past two months, the labor force has fallen, as I said, by nearly a million workers, large decline for which economists have yet pinned down the exact reason. Some are saying faster retirements, or some are saying the Trump administration's immigration crackdown are natural reasons. But some analysts on the other side of the fence say those factors aren't the full story. But again, that's why. We saw the unemployment rate drop. Like I said, million people just out of the workforce altogether. big numbers on the revision side. you what's amazing. again, you go back to ⁓ essentially a year ago, July of last year, when we had those revisions, May and June, revised down ⁓ it was 285,000. Pardon me. Now that here's the number 285,000. Remember that's when Trump got so upset that he fired the commissioner for the labor department, said data's incorrect and so on and so forth. Well. We didn't get a massive revision today, but we got a pretty good one. So, All you're now up to date on the labor front. And you, again, hopefully those of you new to the market, that's the reason. Street likes it because it increases the probability that we may get a rate in decrease versus the proposed increase. There it is. All right. Let's have a little fun Friday afternoon, right? Hopefully you got a nice paycheck to hit your bank account today. What about in retirement? How are you going to create a retirement paycheck? I'm going to help you out with that. Back the John Sanchez show on News Talk 780K which happy Friday to you. Wishing you a great safe weekend in this very, very hot weather. right, here's how we finished up on the day. Once again, a 152 gain on the Dow, 0.28%, closed at 54,036. NASDAQ rose 342 or 1.3%. ⁓ the SP, a record close there at 7757, a 48-point gain for the day, 0.62%. All let's get into our topic today: how to build a retirement paycheck. Hmm. Think about this for just a second. Thirty, forty, sometimes fifty years. Your focus as an investor has been about accumulation. You save, you invest, you contribute to the 401k, you build the IRA, you grow the portfolio, right? Accumulation was number one factor on your mind. That was your goal. Then before you know it, retirement arrives. And suddenly the entire game changes. Why? Because the paycheck stops. Now you as the retiree have to figure some things out. And you better figure them out quick. Hopefully you figured them out before you retired, but I find a lot of people don't. You got to figure out how Social Security works, what your benefit's gonna be. Pension, if you're so fortunate you know to get one, which many people don't have those anymore. You figure out, ⁓ wait a minute here. You know, I had put my portfolio 80% in Nvidia and Microsoft and all these high-tech names. I really still want to do that in retirement. You need to figure out the retirement accounts. ⁓ my gosh. Do I have any Roths? So I have some cash free or tax-free money. What am I going to do with my 401k? All these different things. Do I have any cash? If I do, how am I investing it? And something you've heard me emphasize over and over and over again. Do I have any guaranteed income coming in? Right? What we call fixed income that has no correlation to what happens in the stock market, has no correlation to anything other than, you know what? On the First of the month or the first or the 15th, I know that money's gonna hit my bank account. It's gonna be like clockwork. Do you have any of that? you see all these things start going through your mind, and ⁓ when the sweat starts. And you're like, ⁓ my God, I got so much to think about, so much to worry about. Again, hopefully by listening to this program every day, ⁓ prepared well ahead of answer well ahead of this. But if you haven't, no fear. I'm gonna help you out here. So we need to get down to it. The big transition. We need to somehow shift our minds and our pocketbook from an accumulation strategy to a distribution strategy. Because again, when we are working, we have income coming in. Then we go right down the line. Minus expenses, minus money going to savings, minus money going to investments, boom, we have our net income that we live off of. But in retirement, it shifts, right? retirement and our other sources are now our income. Now we have to subtract that from the expenses. So you see, instead of just the paycheck coming in, we've got hopefully, hopefully, hopefully, multiple sources of income. Again, the investments, retirement benefits, income, and then we back out the expenses. Sounds pretty simple, right? Well, it isn't. now, as the retiree, you need to be asking yourself five completely different questions. Ready? Here's question number one. How much income do I actually need to create my retirement paycheck? I guarantee if I had a room of a thousand. future and I'm talking within the next year retirees guarantee that maybe 10% would know the answer. I know because I ask people this every day. What do you think you need? No clue. That's why I'm here, John. So have to answer that question. How do you know how much you're gonna need? Back to the old basic. No one wants to hear the B word. Budget. You gotta know what's coming in or what you think's gonna come in in retirement. Not what not what it is when you're working and what's gonna be going out. So you can't do any of this None of these questions could be answered until you know how much you're going to need. Second question out of the five, where should that income come from? Right? I just went over some of the various sources, and I'm going to give you some more here in a moment. But you have to know what the sources are. And please don't say, yep, it's coming from my portfolio and Social Security. That's it. Please don't do that. Because I promise you, we will have a severe market correction at some point in your retirement. I promise you that. And I'm going to run some numbers with you here in a second. Third question, what account should I withdraw from first? Do I draw from my Roth IRA, as some advisors say? Do I draw from my IRA, as some advisors say? Do I draw from my taxable investment accounts, as some IR ⁓ advisors say? Well, the answer to that one is everybody's situation is different. Fourth question, very important question. How much can I safely withdraw from these accounts? Is it 3% a year, 4%, 6%, 10%, whatever it is? Well, there's many factors that I'll share with you to answer that question. And then the icing on the cake question, the one that, again, will cause you sleepless nights when you're a retiree, when we get into a bad market condition, how do I make sure that my money doesn't run out? And I've got to go back to work at seventy five years old. Right? That's the fear that every retiree, no matter how much or how little money they have, every retiree wonders that question. So now let's start building the retirement paycheck. And I thought the best way to kind of hammer this point home is I want to create a hypothetical customer or client. Okay. We're going to call these people Bob and Susan. Both Bob and Susan are 65 years old and they are ready to retire. Here's a breakdown of their assets. In their 401k and IRAs, they've got about 900,000. So they've done a good job. Brokerage investments about 350,000, cash and CDs about 150,000. So they've got investments totaling about one point four million, right? Very common to what we see. Social Security, well, they've made pretty good wages over the years, so they got good social security social security benefits coming in. About forty eight hundred dollars a month, which is fifty seven six a year. Their desired income, after running through some numbers, they're saying, you know what, we need 10 grand a month to live. Obviously $120,000 a year. Well, though, that's going to be a gap. Again, desired income is $120,000. Social Security is going to be $57.6. They've got an income gap of $62,400 a year. So $5,200 a month has to come from somewhere. Folks, this is what we deal with on a daily basis as we plan our clients' retirement. We come up with a gap. So where should this gap income come from, this $5,200? Back to the John Sanchez show on News Talk 780K, which I want to give you ⁓ just a couple housekeeping notes once again. You know, many of you, I I had a conversation with a listener today, he was not aware that this show can be found on the internet. Everybody thinks it's only live right here from three to four o'clock. Not even the the case whatsoever. If you are ⁓ among the growing crowd of people that love to listen to podcasts, well, you can find me on Spotify. You can find me on ⁓ what used to be iTunes, so Apple Podcasts. ⁓ You can find me on YouTube. three of those are available. Use within about 30 minutes after the show ends. So if there's anything you've ever missed, you want to hear it twice, ⁓ want see my ugly face, whatever, just go to one of those sources ⁓ and it up. Tell your friends about it across the country. Yeah, we got listeners around literally around the world ⁓ on podcast side of things. So always can ⁓ can do that. ⁓ And again, one more reminder about my upcoming estate planning webinar next Wednesday. wait. You know, again, as our review. So many different trusts, I'm seeing the most common problem. This is why I keep wanted to do this this topic again. These poor people spend time and money creating their trust. They think everything is fine. We get their trust, we review it, we throw it into our AI models, and all of a sudden, boom. This was not funded. This was not funded. That wasn't funded. And we have to be the bearers of bad news and look, it you've been kind of going naked here for these last you know three years, four years. You've got all these accounts that are still listed as joint tenants or just under your name. And they go, Well, what does that mean? I said, What it means is, God forbid, if you and your spouse die right now as you sit, those assets are going to probate. They're no, we can't go to probate. I spent all this time and money by, you know, creating a trust and you know, years ago. It doesn't matter because unless those accounts were funded, i.e., moved into the name of the trust, they're going to probate. No one's gonna get their hands on them until the judge says people can get their hands on them. I see it with houses, I see it with massive brokerage accounts, I'm seeing it everywhere. So that's where I said, I gotta do a webinar on this. Show people how you do this, why this is so important. That's what this webinar is all about. Trust funding, the step most families miss. Wednesday, August the 12th, 6 p.m. Go to my website, specializedrust.com, and sign up. All right, enough of that. running out of time very quickly. All right, we got our hypothetical client you know? ⁓ And we've got to ⁓ we we've got to figure out how we're gonna come up with this fifty two hundred dollar a month income grab ⁓ income gap for Bob and Susan, right? They did a good job accumulating assets. They think everything's fine. We've got $1.4 million, life's gonna be great. ⁓ then we run the numbers and go, ⁓ you need $10,000 a month. Your assets are only gonna produce this amount, you got a shortfall of about fifty-two hundred. So where's money gonna come from? That's the question they always ask. Is it gonna come from their IRA? Taxable withdrawals, unless it's a Roth. Is it gonna come from their brokerage account? Well, are they gonna have to be selling investments on a regular basis, therefore potentially generating short-term or long-term capital gains? Is it gonna come from dividends? Yeah, pretty simple, but most people can't, unless they've got millions and millions and millions of dollars, can't really count on much money to live off of on dividends. How about interest? non-existent. Can they live off of cash? I hate that one. Some advisors I get some some new clients and and they're go, yeah, we, ⁓ know, have an advisor, and he you know. When I retire, just you know, put $500,000 into a high yield savings account and draw off of that for the next three or four years. Then we're gonna start taking money off your investments. And I I just you can see me right now, I just did the the the V eight, you hit to my face. I'm like, no, don't do that. Because then retirement, cash is what I call the golden asset. Most likely, unless you sell an asset, you will never have the ability ⁓ to away cash. So preserve dollar you have in retirement. Annuity. my God, the terrible word of annuity. I would love to have a discussion with ⁓ of you, any of you, and give you the real story behind annuities, the type that we use that produce guaranteed lifetime income with no stock market risk. Love when someone says, I've heard from people, Susie Orman or ⁓ whoever may be, that ⁓ my God, annuities are terrible. I love when people tell me that. So please consider. an annuity, but talk to somebody that has the knowledge and experience like we do. They are an incredible addition to your retirement income, creating your check. How about this? If you got a little shortfall, let's think outside the box, folks. Let's start a little business. I could show you, I could start you a business in two hours that would produce thousands of dollars a month in cash flow without much effort at all. I'll leave it at that. For the traditional person, what are the six sources of retirement income? So here's I kind of thought back and went, okay, here we go. Social Security, right? But when do we take it? Do we take it at 62? Do we take it at full retirement age? Or do we wait all the way to age 70? And then what kind of impact, right? Just taking Social Security, that's just the beginning to making that decision. How's it going to impact your other investments, your tax bracket specifically? Your Irma when it comes to Medicare. There's a lot of factors that go into instead of just saying, hey, you know what? If I take it at 62, yeah, I know it's a small amount of money. If I wait till full retirement age, hey, it's a bigger chunk of money. And if I wait to seventy, it's even bigger. But there's a lot of things that have to go into that decision. It's not just what's going to give me the biggest paycheck. Pensions, boy, you know, I tell you the last time I saw a client with a pension. They're just, you know, unless you're coming out of the the government sector, either either locally or nationally, they're just almost non-existent. I so I won't waste your time on that. But I will tell you one cautionary t point on that. Please seek professional advice when you decide if you do have a pension, what method you're gonna take. If it's gonna be single life, which everybody wants jump on because that's the biggest lifetime income. Or is it going to be joint? If you're married, amount, but you die, depending upon which joint method, your spouse is going to get either what you were receiving while you're alive or maybe a smaller amount. But again, so many stories I could share with you of people that jumped on that single amount, took the biggest payment, you die, pension stops, wife comes to us and goes, how do I make up that five, six thousand dollars a month we're used to living off of? A lot of decisions there. All right, didn't get a chance to get to portfolio withdrawals, ⁓ so on so forth. So once again, If you are interested in creating retirement income, give us a call at SanchezGaunt Capital Management seven seven five eight hundred eighteen ⁓ one or reach out to me personally, John J O N at SanchezGaunt.com. What a week it has been. God bless. Thank you for letting me be a part of your life. I wish you a great weekend and I will see you on Monday. Have a great weekend.