Transcript
1
00:00:00,400 --> 00:00:03,059
Welcome to something more with Chris Boyd.
2
00:00:03,120 --> 00:00:06,160
Chris Boyd is a certified financial planner, practitioner,
3
00:00:06,360 --> 00:00:09,120
and senior vice president, financial advisor at wealth
4
00:00:09,120 --> 00:00:09,880
enhancement group.
5
00:00:10,080 --> 00:00:12,820
One of the nation's largest registered investment advisors.
6
00:00:13,180 --> 00:00:15,239
We call it something more because we'd like
7
00:00:15,239 --> 00:00:17,380
to talk not only about those important dollar
8
00:00:17,380 --> 00:00:19,540
and cents issues, but also the quality of
9
00:00:19,540 --> 00:00:22,040
life issues that make the money matters matter.
10
00:00:22,380 --> 00:00:25,760
Here he is your fulfillment facilitator, your partner
11
00:00:25,760 --> 00:00:28,900
in prosperity, advising clients on Cape Cod and
12
00:00:28,900 --> 00:00:29,940
across the country.
13
00:00:30,320 --> 00:00:31,720
Here's your host, Jay.
14
00:00:31,780 --> 00:00:32,760
Christopher Boyd.
15
00:00:32,920 --> 00:00:35,060
Welcome to something more with Chris Boyd.
16
00:00:35,160 --> 00:00:36,660
I'm Chris Boyd here with Jeff Perry.
17
00:00:36,740 --> 00:00:38,760
We are both of the AMR team at
18
00:00:38,760 --> 00:00:40,360
wealth enhancement group and glad to have you
19
00:00:40,360 --> 00:00:43,620
with us listening for another segment of something
20
00:00:43,620 --> 00:00:46,560
more, um, today we're talking about early retirement.
21
00:00:46,800 --> 00:00:48,180
You know, Jeff, every once in a while,
22
00:00:48,180 --> 00:00:53,680
I get these, um, Notifications of topics and
23
00:00:53,680 --> 00:00:58,000
articles that, um, reporters might be looking for
24
00:00:58,000 --> 00:01:01,480
comment from, um, an advisor to weigh in
25
00:01:01,480 --> 00:01:04,140
on, and, um, this one caught my eye.
26
00:01:04,300 --> 00:01:07,300
I don't know if we'll get, um, quoted
27
00:01:07,300 --> 00:01:09,700
or not, but I thought it was an
28
00:01:09,700 --> 00:01:12,440
interesting, uh, thought exercise that we might want
29
00:01:12,440 --> 00:01:14,780
to share with our listeners about some of
30
00:01:14,780 --> 00:01:15,340
the challenges.
31
00:01:15,740 --> 00:01:18,500
If you are going to think about retiring
32
00:01:18,500 --> 00:01:21,620
early, I know you, uh, probably as much
33
00:01:21,620 --> 00:01:23,220
as I do hear from people who say,
34
00:01:23,380 --> 00:01:25,180
yeah, one of my big goals is I
35
00:01:25,180 --> 00:01:25,960
want to be done.
36
00:01:26,060 --> 00:01:29,980
I want to retire, um, early and, you
37
00:01:29,980 --> 00:01:32,160
know, there may, some people are focused on
38
00:01:32,160 --> 00:01:33,780
it and really dedicated to that.
39
00:01:33,960 --> 00:01:34,060
Right.
40
00:01:34,180 --> 00:01:36,180
And some people just have this sort of
41
00:01:36,180 --> 00:01:38,840
vague, yeah, I'm tired of working and I
42
00:01:38,840 --> 00:01:39,340
want to be done.
43
00:01:39,760 --> 00:01:42,040
You know, so, uh, I think it's a
44
00:01:42,040 --> 00:01:44,500
real high percentage of people who have that
45
00:01:44,500 --> 00:01:47,740
thought process, you know, like what if I,
46
00:01:47,800 --> 00:01:48,960
what do I need to do?
47
00:01:48,960 --> 00:01:49,200
Right.
48
00:01:49,940 --> 00:01:51,720
How can, could I pull it off?
49
00:01:51,760 --> 00:01:53,260
And they kind of go through the checklist
50
00:01:53,260 --> 00:01:56,400
in their head and, you know, it's the
51
00:01:56,400 --> 00:01:58,240
checklist might not include all the things they
52
00:01:58,240 --> 00:01:59,980
should, but I think a lot of people
53
00:01:59,980 --> 00:02:01,300
think about it, right?
54
00:02:01,960 --> 00:02:03,020
Yeah, absolutely.
55
00:02:04,040 --> 00:02:06,320
Um, now just as an aside, I mean,
56
00:02:06,340 --> 00:02:09,860
I, I have one client, excuse me.
57
00:02:09,919 --> 00:02:12,000
He's become one of our biggest clients.
58
00:02:12,480 --> 00:02:15,080
Uh, he came in, uh, I don't know
59
00:02:15,080 --> 00:02:17,140
if he was even in his forties, uh,
60
00:02:17,140 --> 00:02:19,300
when he started and said, you know, I
61
00:02:19,300 --> 00:02:21,340
want to be able to retire young, you
62
00:02:21,340 --> 00:02:28,000
know, um, in my fifties and, um, he's
63
00:02:28,000 --> 00:02:31,080
been just dedicated, vigilant.
64
00:02:32,120 --> 00:02:34,460
Um, he has a good paying job and
65
00:02:34,460 --> 00:02:37,640
is able to save regularly, but puts a
66
00:02:37,640 --> 00:02:39,880
lot of money toward that goal and is,
67
00:02:40,140 --> 00:02:41,660
is at a point where he could, if
68
00:02:41,660 --> 00:02:43,720
he wants to, he just happens to like
69
00:02:43,720 --> 00:02:45,280
his work at this point in time and
70
00:02:45,280 --> 00:02:46,720
isn't, isn't desirous.
71
00:02:47,260 --> 00:02:49,320
But yeah, he's right.
72
00:02:49,740 --> 00:02:52,460
You know, uh, I guess that's the, the,
73
00:02:52,460 --> 00:02:54,020
the financial freedom, right?
74
00:02:54,080 --> 00:02:58,020
That notion of having the resources that work
75
00:02:58,020 --> 00:02:59,140
becomes optional.
76
00:02:59,640 --> 00:03:02,620
That's what we're trying to think about here.
77
00:03:03,040 --> 00:03:04,700
I always think about this in the context
78
00:03:04,700 --> 00:03:07,700
of the older radio show host.
79
00:03:07,820 --> 00:03:09,620
He's not on the radio anymore, but Bob
80
00:03:09,620 --> 00:03:10,000
Brinker.
81
00:03:10,720 --> 00:03:11,280
Yes.
82
00:03:11,640 --> 00:03:13,820
Um, and he had the term critical mass.
83
00:03:13,820 --> 00:03:17,440
So it's when you reach that point that
84
00:03:17,440 --> 00:03:21,000
you have critical mass of assets, I guess,
85
00:03:21,060 --> 00:03:23,420
or income or not debt, or, you know,
86
00:03:23,460 --> 00:03:25,600
the picture you've reached that point where you
87
00:03:25,600 --> 00:03:28,420
can retire, doesn't mean you're retiring.
88
00:03:28,700 --> 00:03:29,940
It doesn't mean you're not working.
89
00:03:30,100 --> 00:03:32,520
You could be retiring from your full-time
90
00:03:32,520 --> 00:03:37,000
high stress, fast pace life to a still
91
00:03:37,000 --> 00:03:39,200
working, but not that right.
92
00:03:39,240 --> 00:03:40,660
Something that's less than that.
93
00:03:40,660 --> 00:03:44,580
That's more conducive to some travel or some
94
00:03:44,580 --> 00:03:46,820
leisure, but not, not going from a hundred
95
00:03:46,820 --> 00:03:47,840
miles an hour to zero.
96
00:03:47,840 --> 00:03:48,240
Right.
97
00:03:48,880 --> 00:03:49,340
Yeah.
98
00:03:49,520 --> 00:03:51,500
So the definition of, I want to retire
99
00:03:51,500 --> 00:03:54,600
early is not a single thing.
100
00:03:54,600 --> 00:03:56,740
It could mean I just don't want to
101
00:03:56,740 --> 00:03:57,740
do this anymore.
102
00:03:58,640 --> 00:04:01,440
I'd like to do something else, but something
103
00:04:01,440 --> 00:04:04,700
that is more flexible and maybe more positive
104
00:04:04,700 --> 00:04:06,980
depending on one's given occupation.
105
00:04:06,980 --> 00:04:07,360
Right.
106
00:04:08,020 --> 00:04:08,380
Yeah.
107
00:04:08,680 --> 00:04:09,480
Yeah, exactly.
108
00:04:10,000 --> 00:04:14,320
Well, I think one of the challenges that
109
00:04:14,320 --> 00:04:16,800
this really present, there's a number of things
110
00:04:16,800 --> 00:04:19,200
that do come up as reasonable challenges to
111
00:04:19,200 --> 00:04:22,680
consider, but the first one that comes to
112
00:04:22,680 --> 00:04:24,860
my mind is that, you know, you really
113
00:04:24,860 --> 00:04:29,760
must be saving with abundance because if you
114
00:04:29,760 --> 00:04:35,940
do retire early and start drawing from your
115
00:04:35,940 --> 00:04:39,960
investments, you know, I mean, the thing about
116
00:04:39,960 --> 00:04:43,100
it is you, we, people tend to be
117
00:04:43,100 --> 00:04:45,100
living longer, so we need to be planning
118
00:04:45,100 --> 00:04:49,540
for the prospects of long life longevity.
119
00:04:50,120 --> 00:04:50,240
Right.
120
00:04:51,160 --> 00:04:53,680
So if I retire, just say, for example,
121
00:04:54,340 --> 00:05:00,480
in my fifties, 55 instead of, or, you
122
00:05:00,480 --> 00:05:03,000
know, 50, you know, as an example, I
123
00:05:03,000 --> 00:05:05,140
want to, I want to retire well in
124
00:05:05,140 --> 00:05:09,320
advance of the traditional, you know, ages people
125
00:05:09,320 --> 00:05:13,340
retire, you know, that not only does that
126
00:05:13,340 --> 00:05:19,060
add 10 years, let's say, or 15 years
127
00:05:19,060 --> 00:05:21,340
of withdrawals.
128
00:05:21,480 --> 00:05:22,960
That could be a 40 year run rate,
129
00:05:23,020 --> 00:05:23,200
right?
130
00:05:23,760 --> 00:05:24,680
Yeah, we might have.
131
00:05:24,960 --> 00:05:26,500
So in that case, you could have it
132
00:05:26,500 --> 00:05:27,100
easily, right?
133
00:05:27,280 --> 00:05:29,000
40, even more, right?
134
00:05:29,220 --> 00:05:29,380
Right.
135
00:05:29,540 --> 00:05:31,100
Let's say it was 50 and you said
136
00:05:31,100 --> 00:05:34,120
for age 50 and you said, okay, normally
137
00:05:34,120 --> 00:05:36,760
I'd plan to retire at 65 or somewhere
138
00:05:36,760 --> 00:05:37,520
thereabouts.
139
00:05:38,100 --> 00:05:40,080
I think it's later from a lot of
140
00:05:40,080 --> 00:05:42,640
people, but so that's 15 or 20 years
141
00:05:42,640 --> 00:05:45,480
of additional withdrawals, right?
142
00:05:45,980 --> 00:05:46,080
Yep.
143
00:05:46,480 --> 00:05:49,940
But it's also now 15 or 20 years
144
00:05:49,940 --> 00:05:54,920
where I'm not getting the compounding impact that
145
00:05:54,920 --> 00:05:57,240
I would have from all the savings I'd
146
00:05:57,240 --> 00:05:58,820
be doing in that time, right?
147
00:05:58,840 --> 00:06:00,980
I'd be adding to the account instead of
148
00:06:00,980 --> 00:06:03,940
subtracting, and the money that's already there would
149
00:06:03,940 --> 00:06:06,660
be compounding for me.
150
00:06:06,740 --> 00:06:09,280
So it'd be growing, whereas now I'm probably
151
00:06:09,280 --> 00:06:11,140
drawing from it to some extent.
152
00:06:11,640 --> 00:06:12,740
So it's a big difference.
153
00:06:13,420 --> 00:06:19,840
So just that notion of the lack of
154
00:06:19,840 --> 00:06:25,880
compounding, earlier withdrawal, and the lack of addition
155
00:06:25,880 --> 00:06:30,040
over that period of time is impactful.
156
00:06:30,040 --> 00:06:33,780
So if that's something you think, I really
157
00:06:33,780 --> 00:06:36,320
want this, you really have to be extremely
158
00:06:36,320 --> 00:06:39,560
aggressive about your savings.
159
00:06:40,520 --> 00:06:44,300
The amount of your, we talk in generalities
160
00:06:44,300 --> 00:06:47,620
of, oh, what's a good amount to set
161
00:06:47,620 --> 00:06:48,120
aside?
162
00:06:48,300 --> 00:06:50,860
People have this question often, and it's a
163
00:06:50,860 --> 00:06:55,800
really kind of an arbitrary thing.
164
00:06:55,800 --> 00:07:00,020
What percentage should I set aside for savings
165
00:07:00,020 --> 00:07:00,520
and investment?
166
00:07:00,680 --> 00:07:03,260
And I think oftentimes we kind of answer
167
00:07:03,260 --> 00:07:04,060
that in different ways.
168
00:07:04,220 --> 00:07:07,060
Well, there's your emergency money.
169
00:07:07,460 --> 00:07:08,360
That's one thing.
170
00:07:08,600 --> 00:07:11,900
There's, well, there's vacations and new set of
171
00:07:11,900 --> 00:07:14,000
tires, delayed spending intentions.
172
00:07:14,000 --> 00:07:15,380
That's another thing.
173
00:07:16,280 --> 00:07:18,300
But if we're really talking about savings and
174
00:07:18,300 --> 00:07:23,980
investment to accumulate resources, we try to encourage
175
00:07:23,980 --> 00:07:26,140
people to, if they can, from the very
176
00:07:26,140 --> 00:07:30,660
beginning, save 10%, they're going to be really
177
00:07:30,660 --> 00:07:37,680
well ready for any kind of financial challenges
178
00:07:37,680 --> 00:07:40,780
they may face over their lifetime or opportunities
179
00:07:40,780 --> 00:07:43,300
like this that they might say, oh, I
180
00:07:43,300 --> 00:07:46,320
have the opportunity for financial freedom earlier.
181
00:07:47,780 --> 00:07:50,520
So I want to add a couple more
182
00:07:50,520 --> 00:07:50,800
things.
183
00:07:50,980 --> 00:07:52,800
If you're thinking about retiring early, all the,
184
00:07:52,840 --> 00:07:54,700
you mentioned the big ones, but a couple
185
00:07:54,700 --> 00:07:58,220
other maybe secondary things that people don't consider
186
00:07:58,220 --> 00:08:01,160
if you're retiring early is you said you're
187
00:08:01,160 --> 00:08:03,780
not contributing to your retirement plan.
188
00:08:03,860 --> 00:08:06,020
Certainly true, but you're also not contributing to
189
00:08:06,020 --> 00:08:06,700
social security.
190
00:08:07,580 --> 00:08:10,080
So if you're relying on, or if you're
191
00:08:10,080 --> 00:08:12,720
thinking about future social security benefits and you
192
00:08:12,720 --> 00:08:15,380
stop working, although you're probably vested certainly by
193
00:08:15,380 --> 00:08:18,540
age 50, you're going to have 15 years
194
00:08:18,540 --> 00:08:22,440
or 17 years of zeros on your highest
195
00:08:22,440 --> 00:08:22,940
35.
196
00:08:23,540 --> 00:08:25,600
Yeah, how many of those are going to
197
00:08:25,600 --> 00:08:26,760
be without number?
198
00:08:27,060 --> 00:08:28,440
So that's a missed opportunity.
199
00:08:28,700 --> 00:08:30,760
And they also, I know it's implied in
200
00:08:30,760 --> 00:08:32,200
your comments, but I just want to highlight
201
00:08:32,200 --> 00:08:34,600
it because some people who do their own
202
00:08:34,600 --> 00:08:37,640
kind of spreadsheets and don't kind of DIY
203
00:08:37,640 --> 00:08:41,020
this, you have that 15 more years in
204
00:08:41,020 --> 00:08:44,900
this example of 50 to 65 of inflation.
205
00:08:46,180 --> 00:08:48,860
And we certainly add in inflation for the
206
00:08:48,860 --> 00:08:51,220
work that we do, the modeling that we
207
00:08:51,220 --> 00:08:51,420
do.
208
00:08:51,500 --> 00:08:53,120
But I see that as one of the
209
00:08:53,120 --> 00:08:55,800
mistakes of people who are doing DIY.
210
00:08:56,260 --> 00:08:57,800
And they're saying, all right, how much money
211
00:08:57,800 --> 00:08:58,360
do I need?
212
00:08:58,400 --> 00:09:00,440
All right, I need $50,000 of income
213
00:09:00,440 --> 00:09:00,880
a year.
214
00:09:01,420 --> 00:09:03,220
And they kind of think that number is
215
00:09:03,220 --> 00:09:04,580
going to be stagnant, right?
216
00:09:04,580 --> 00:09:06,580
Because maybe they have their mortgage paid off.
217
00:09:06,580 --> 00:09:08,920
But as we've seen in the last few
218
00:09:08,920 --> 00:09:13,320
years, the impact of inflation, sometimes in a
219
00:09:13,320 --> 00:09:16,280
short period of time, but certainly over 40
220
00:09:16,280 --> 00:09:19,500
years, you really have to account for that
221
00:09:19,500 --> 00:09:23,260
and not lower all that estimate of what
222
00:09:23,260 --> 00:09:25,140
future expenses are going to be.
223
00:09:26,300 --> 00:09:30,780
Yeah, I remember an advisor who, I used
224
00:09:30,780 --> 00:09:33,320
to do these seminars when I first started
225
00:09:33,320 --> 00:09:33,640
out.
226
00:09:33,640 --> 00:09:35,960
And when I did, there was an advisor
227
00:09:35,960 --> 00:09:38,440
who had a video series to kind of
228
00:09:38,440 --> 00:09:40,080
show you what you talk about.
229
00:09:40,520 --> 00:09:44,520
And he talked about inflation and tried to
230
00:09:44,520 --> 00:09:48,280
explain that as much as people maybe do
231
00:09:48,280 --> 00:09:53,620
have some fixed costs, they also have lifelines
232
00:09:53,620 --> 00:09:55,200
to the community was the way he put
233
00:09:55,200 --> 00:09:55,480
it.
234
00:09:56,260 --> 00:09:58,200
And I think that's a good way to
235
00:09:58,200 --> 00:09:58,940
think about it.
236
00:09:59,640 --> 00:10:01,380
What are those lifelines?
237
00:10:01,380 --> 00:10:04,600
Well, I have real estate taxes.
238
00:10:05,080 --> 00:10:06,700
I have insurance.
239
00:10:07,180 --> 00:10:08,820
I'm going to buy a car.
240
00:10:09,580 --> 00:10:13,660
The car has gasoline, you know, in repairs,
241
00:10:13,840 --> 00:10:14,460
etc, etc.
242
00:10:14,680 --> 00:10:16,320
I buy food.
243
00:10:16,820 --> 00:10:18,740
I like to go out to dinner once
244
00:10:18,740 --> 00:10:19,360
in a while too.
245
00:10:20,040 --> 00:10:22,740
You know, all of these things that we
246
00:10:22,740 --> 00:10:27,440
take for granted, all are subject to the
247
00:10:27,440 --> 00:10:29,420
risks of inflation over time.
248
00:10:29,420 --> 00:10:32,800
And, you know, there's a stereotype, right?
249
00:10:32,920 --> 00:10:34,140
I mean, have you ever been to your
250
00:10:34,140 --> 00:10:35,380
homeowner's association?
251
00:10:35,980 --> 00:10:38,880
If you're like me, it's all the older
252
00:10:38,880 --> 00:10:41,880
retirees complaining about the dues increase because they're
253
00:10:41,880 --> 00:10:42,820
not working anymore.
254
00:10:43,600 --> 00:10:45,980
And it's, you know, these are examples of
255
00:10:45,980 --> 00:10:50,660
inflation, you know, they're on a fixed income.
256
00:10:51,080 --> 00:10:52,940
You know what they're voting against is maintenance.
257
00:10:53,940 --> 00:11:00,260
So over 40 years of life, if you
258
00:11:00,260 --> 00:11:01,600
own a home, if you own a brand
259
00:11:01,600 --> 00:11:03,780
new home today and you're retiring at 50,
260
00:11:04,260 --> 00:11:06,740
everything in that house is being replaced.
261
00:11:07,540 --> 00:11:10,100
Yeah, over that 40 years, at some point,
262
00:11:10,260 --> 00:11:12,060
there's going to be a lot of maintenance
263
00:11:12,060 --> 00:11:14,120
repairs that are going to be needed.
264
00:11:15,240 --> 00:11:17,620
So, you know, those are just things that
265
00:11:17,620 --> 00:11:20,560
will work into your inflation concern.
266
00:11:20,700 --> 00:11:21,720
Yeah, really good point.
267
00:11:22,840 --> 00:11:25,040
And, you know, as much as we might
268
00:11:25,040 --> 00:11:27,200
say, oh, inflation's two and a half percent
269
00:11:27,200 --> 00:11:30,460
or three percent or whatever it is, you
270
00:11:30,460 --> 00:11:34,280
know, rule of 72s, right?
271
00:11:34,660 --> 00:11:38,300
If we divide that by three, 24 years,
272
00:11:38,400 --> 00:11:38,980
that's double.
273
00:11:39,400 --> 00:11:40,100
Everything doubles.
274
00:11:40,300 --> 00:11:40,420
Yeah.
275
00:11:40,500 --> 00:11:42,860
And, you know, if you're living 40 years,
276
00:11:43,060 --> 00:11:44,500
you know, you're close to double.
277
00:11:44,500 --> 00:11:45,660
You're probably going to get a double double,
278
00:11:45,780 --> 00:11:45,960
yeah.
279
00:11:46,400 --> 00:11:48,420
And if you don't believe that, if you're
280
00:11:48,420 --> 00:11:49,720
just like, yeah, kind of, that's not going
281
00:11:49,720 --> 00:11:50,100
to happen.
282
00:11:50,100 --> 00:11:52,960
Go back 20 or 40 years and say,
283
00:11:53,060 --> 00:11:53,860
how much was a car?
284
00:11:54,700 --> 00:11:57,060
How much, you know, you pick your item
285
00:11:57,060 --> 00:11:58,540
that you want to compare it to a
286
00:11:58,540 --> 00:12:00,180
basket of items and you'll see.
287
00:12:00,640 --> 00:12:04,340
Bread and milk and eggs these days, right?
288
00:12:04,780 --> 00:12:05,880
Taxes, insurances.
289
00:12:06,280 --> 00:12:06,600
You know, tax.
290
00:12:06,680 --> 00:12:07,700
Yeah, all of them.
291
00:12:07,800 --> 00:12:10,020
You can just say, oh, it's changed.
292
00:12:10,260 --> 00:12:12,340
It will continue to change.
293
00:12:12,380 --> 00:12:14,420
That's just the reality.
294
00:12:14,420 --> 00:12:16,880
So inflation is one of those things you
295
00:12:16,880 --> 00:12:20,900
have to be more mindful of.
296
00:12:21,100 --> 00:12:23,420
I think another one we should include in
297
00:12:23,420 --> 00:12:25,920
there is, you know, you got to think
298
00:12:25,920 --> 00:12:30,000
about health care, health insurance as one of
299
00:12:30,000 --> 00:12:31,380
those practical things.
300
00:12:31,500 --> 00:12:34,680
If you're retiring, you know, in your 50s
301
00:12:34,680 --> 00:12:37,440
and Medicare starts at 65.
302
00:12:38,000 --> 00:12:38,280
Right.
303
00:12:39,420 --> 00:12:42,980
Um, let's face it, health insurance costs are
304
00:12:42,980 --> 00:12:44,340
exorbitant today.
305
00:12:44,980 --> 00:12:48,400
So, you know, is that something you've planned
306
00:12:48,400 --> 00:12:48,860
for?
307
00:12:48,940 --> 00:12:51,740
If you're not employed, you're not getting any
308
00:12:51,740 --> 00:12:55,500
subsidy from the employer to help defray those
309
00:12:55,500 --> 00:12:55,840
costs.
310
00:12:55,900 --> 00:12:57,980
And usually an employer picks up some of
311
00:12:57,980 --> 00:13:00,580
that cost if you're working through an employer
312
00:13:00,580 --> 00:13:01,100
plan.
313
00:13:01,660 --> 00:13:03,360
I mean, sometimes a lot of it.
314
00:13:03,440 --> 00:13:06,220
Even if it's 50 percent, it's big money
315
00:13:06,220 --> 00:13:08,060
over a year and decades.
316
00:13:09,960 --> 00:13:12,040
So, you know, that could add.
317
00:13:12,860 --> 00:13:13,020
Yeah.
318
00:13:13,120 --> 00:13:17,320
I mean, 20 years of 10, 10 years
319
00:13:17,320 --> 00:13:20,260
of those costs rather, you know, you could
320
00:13:20,260 --> 00:13:25,140
be looking at, I don't know, $250, $300,
321
00:13:25,640 --> 00:13:27,280
you know, more because of inflation.
322
00:13:27,480 --> 00:13:27,660
Right.
323
00:13:27,720 --> 00:13:29,260
The health care inflation is higher.
324
00:13:29,820 --> 00:13:29,920
Right.
325
00:13:30,000 --> 00:13:33,060
So, you know, another chunk of money that
326
00:13:33,060 --> 00:13:35,340
you got to have set aside with that
327
00:13:35,340 --> 00:13:35,840
in mind.
328
00:13:35,960 --> 00:13:37,360
And that's assuming you don't have any health
329
00:13:37,360 --> 00:13:37,860
problems.
330
00:13:38,280 --> 00:13:39,900
That's just for premiums, right?
331
00:13:39,960 --> 00:13:41,580
Not deductibles and all that kind of stuff.
332
00:13:41,580 --> 00:13:46,940
And uncovered dental and other vision and whatever
333
00:13:46,940 --> 00:13:48,300
it is, things that are not covered.
334
00:13:48,360 --> 00:13:50,000
As you get older, you run into more
335
00:13:50,000 --> 00:13:55,200
of these non-covered optional things like teeth,
336
00:13:55,480 --> 00:13:56,000
for example.
337
00:13:56,040 --> 00:13:56,300
Yeah.
338
00:13:57,340 --> 00:13:58,340
We want to keep them.
339
00:13:58,460 --> 00:14:00,000
But, you know, generally, if you don't have
340
00:14:00,000 --> 00:14:03,040
an employer plan, you don't have dental insurance.
341
00:14:03,580 --> 00:14:04,940
You can buy it, but it costs money.
342
00:14:04,940 --> 00:14:06,840
I keep hearing this from people who are
343
00:14:06,840 --> 00:14:10,740
in retirement about the cost of implants and,
344
00:14:10,740 --> 00:14:12,600
you know, some of the dental expense.
345
00:14:13,300 --> 00:14:14,820
Just rough.
346
00:14:15,160 --> 00:14:16,760
It's a common conversation.
347
00:14:16,840 --> 00:14:18,440
In fact, we had people over last night
348
00:14:18,440 --> 00:14:22,260
and one of the ladies in the couple
349
00:14:22,260 --> 00:14:26,820
was sharing how much money she has spent
350
00:14:26,820 --> 00:14:29,820
in the last two months as her need
351
00:14:29,820 --> 00:14:32,340
for dental insurance has come up and she
352
00:14:32,340 --> 00:14:33,200
doesn't have any coverage.
353
00:14:33,200 --> 00:14:36,420
So, you know, it's not inexpensive.
354
00:14:37,020 --> 00:14:39,440
I mean, even if you do, some things
355
00:14:39,440 --> 00:14:40,880
aren't covered enough, right?
356
00:14:40,900 --> 00:14:41,300
That's right.
357
00:14:41,480 --> 00:14:42,400
50%, maybe.
358
00:14:42,720 --> 00:14:43,000
But, yeah.
359
00:14:43,120 --> 00:14:43,360
Yeah.
360
00:14:45,080 --> 00:14:46,300
Well, so, okay.
361
00:14:46,980 --> 00:14:49,140
That's on some of the expenses side of
362
00:14:49,140 --> 00:14:49,380
things.
363
00:14:49,520 --> 00:14:50,480
There's probably others too.
364
00:14:50,580 --> 00:14:50,840
I don't know.
365
00:14:51,020 --> 00:14:53,300
Before we move on from expenses, anything else
366
00:14:53,300 --> 00:14:55,700
that you wanted to think in terms of
367
00:14:55,700 --> 00:14:56,720
that I didn't think of?
368
00:14:57,530 --> 00:15:02,020
No, I would just add when you're projecting
369
00:15:02,020 --> 00:15:05,220
out long-term spending thing, you know, in
370
00:15:05,220 --> 00:15:07,680
addition to the cars and the vacations and
371
00:15:07,680 --> 00:15:10,460
the home maintenance that we mentioned, you have
372
00:15:10,460 --> 00:15:13,780
to really consider is in the next 30
373
00:15:13,780 --> 00:15:18,880
years, am I likely to need to or
374
00:15:18,880 --> 00:15:20,460
want to help a family member?
375
00:15:20,580 --> 00:15:22,620
Because this is something that sneaks into our
376
00:15:22,620 --> 00:15:24,360
financial planning discussions.
377
00:15:24,360 --> 00:15:27,260
Do you have a daughter who's getting married?
378
00:15:27,440 --> 00:15:30,000
Or do you have someone you want to
379
00:15:30,000 --> 00:15:31,680
help buy their first house or maybe a
380
00:15:31,680 --> 00:15:32,860
grandchild with college?
381
00:15:33,740 --> 00:15:35,540
Well, if you're at 50, you might be
382
00:15:35,540 --> 00:15:36,800
talking about your kids in college.
383
00:15:36,820 --> 00:15:37,520
That's what I mean.
384
00:15:37,640 --> 00:15:38,120
That's true.
385
00:15:38,760 --> 00:15:39,640
Yeah, that's a good point.
386
00:15:39,920 --> 00:15:42,600
So, consider not just your household expenses and
387
00:15:42,600 --> 00:15:43,940
even if you're doing a good job with
388
00:15:43,940 --> 00:15:46,100
all the things that we're talking about, kind
389
00:15:46,100 --> 00:15:48,540
of open up that field of vision and
390
00:15:48,540 --> 00:15:50,960
say, what am I going to do with
391
00:15:50,960 --> 00:15:52,280
my time if I retire?
392
00:15:52,460 --> 00:15:53,360
Oh, I'm going to buy a boat.
393
00:15:53,360 --> 00:15:55,780
OK, well, let's make sure that that's there
394
00:15:55,780 --> 00:15:57,980
or I'm going to travel more or I'd
395
00:15:57,980 --> 00:16:00,880
like to be more generous, family charities, or
396
00:16:00,880 --> 00:16:02,260
I'd like to do X, Y or Z
397
00:16:02,260 --> 00:16:06,000
hobbies or all these things have potential costs.
398
00:16:06,340 --> 00:16:08,940
So, enlarge your vision and say, what is
399
00:16:08,940 --> 00:16:09,960
my life look like?
400
00:16:10,120 --> 00:16:10,840
What am I going to do?
401
00:16:10,920 --> 00:16:12,000
What might I do?
402
00:16:12,520 --> 00:16:15,120
And what is the cost associated with that
403
00:16:15,120 --> 00:16:16,400
item?
404
00:16:18,610 --> 00:16:19,610
Good points.
405
00:16:20,110 --> 00:16:23,310
Yeah, I think those are good examples of
406
00:16:23,310 --> 00:16:26,710
sometimes underestimated expenses.
407
00:16:27,970 --> 00:16:31,710
The money we spend on family needs, you
408
00:16:31,710 --> 00:16:32,850
know, come up.
409
00:16:33,730 --> 00:16:34,250
All right.
410
00:16:34,270 --> 00:16:35,970
Well, the next thing I want to talk
411
00:16:35,970 --> 00:16:39,110
about as it relates to this notion of
412
00:16:39,110 --> 00:16:41,690
if you're going to retire early, things you
413
00:16:41,690 --> 00:16:45,270
need to think about and this probably applies
414
00:16:45,270 --> 00:16:47,690
to everyone, but it comes to my mind,
415
00:16:47,750 --> 00:16:50,630
especially for people retiring early, and that's the
416
00:16:50,630 --> 00:16:52,350
notion of tax diversification.
417
00:16:53,550 --> 00:16:56,910
You know, if you're retiring again at 50,
418
00:16:56,990 --> 00:17:01,170
55, you don't have access to your IRAs,
419
00:17:01,470 --> 00:17:02,410
your 401ks.
420
00:17:02,750 --> 00:17:06,109
They're usually now there's some workaround to that,
421
00:17:06,170 --> 00:17:09,190
but by design, they're structured to be available
422
00:17:09,190 --> 00:17:11,170
to you at 59 and a half and
423
00:17:11,170 --> 00:17:11,609
thereafter.
424
00:17:12,190 --> 00:17:15,310
So, you know, you may want to make
425
00:17:15,310 --> 00:17:18,510
sure that you do have, one, other buckets
426
00:17:18,510 --> 00:17:21,210
of money, non-IRA, just, you know, joint
427
00:17:21,210 --> 00:17:23,710
account, individual trust, whatever it might be that
428
00:17:23,710 --> 00:17:27,329
non-qualified taxable, we'll call it kind of
429
00:17:27,329 --> 00:17:27,569
money.
430
00:17:29,490 --> 00:17:31,870
Meaning it, you know, pays income tax each
431
00:17:31,870 --> 00:17:34,350
year as opposed to something that's tax deferred
432
00:17:34,350 --> 00:17:36,570
like your IRA or your 401k and so
433
00:17:36,570 --> 00:17:36,770
forth.
434
00:17:36,770 --> 00:17:40,070
And of course, Roth IRA money, you know,
435
00:17:40,130 --> 00:17:43,190
it's important to have some different buckets of
436
00:17:43,190 --> 00:17:45,050
money with different tax treatment.
437
00:17:46,710 --> 00:17:50,290
So the challenge is if you don't have
438
00:17:50,290 --> 00:17:55,070
sufficient resources in your non-IRA money, we
439
00:17:55,070 --> 00:17:59,470
see this throughout retirement anyway, that if people
440
00:17:59,470 --> 00:18:04,710
draw down on some of their investments outside
441
00:18:04,710 --> 00:18:08,390
of retirement plans, it becomes challenging when they
442
00:18:08,390 --> 00:18:10,630
have a big expense, like a purchase of
443
00:18:10,630 --> 00:18:12,850
a car, it's a common example.
444
00:18:14,650 --> 00:18:17,070
If I want to pay for that car
445
00:18:17,070 --> 00:18:19,290
and I don't have a non-IRA account
446
00:18:19,290 --> 00:18:21,270
to, you know, draw that from a taxable
447
00:18:21,270 --> 00:18:24,370
account, I have to take that out of
448
00:18:24,370 --> 00:18:24,830
an IRA.
449
00:18:25,170 --> 00:18:26,270
I have to, you know, I want to
450
00:18:26,270 --> 00:18:30,910
spend $30,000 on a car, $40,000
451
00:18:30,910 --> 00:18:32,330
on a car, whatever it is, right?
452
00:18:32,890 --> 00:18:36,630
I have to end up spending $50,000
453
00:18:36,630 --> 00:18:38,710
to get that money or, you know, fill
454
00:18:38,710 --> 00:18:40,630
in the blank, whatever the tax.
455
00:18:40,850 --> 00:18:42,870
And that's if you're after 59 and a
456
00:18:42,870 --> 00:18:44,130
half, generally.
457
00:18:44,310 --> 00:18:45,470
And that's if you're 59 and a half.
458
00:18:45,630 --> 00:18:48,890
Now, there is actually a workaround for people
459
00:18:48,890 --> 00:18:54,890
who are pre-59 and a half, but
460
00:18:54,890 --> 00:18:58,570
are definitely going to be in a position
461
00:18:58,570 --> 00:19:01,470
where they need to draw from their retirement
462
00:19:01,470 --> 00:19:04,410
money in a retired status.
463
00:19:04,790 --> 00:19:08,530
But prior to being eligible to access that
464
00:19:08,530 --> 00:19:14,550
money, there's a Rule 72T that relates to
465
00:19:14,550 --> 00:19:16,110
the Internal Revenue Code.
466
00:19:16,310 --> 00:19:20,210
And it does allow for some substantially equal
467
00:19:20,210 --> 00:19:21,550
periodic payments.
468
00:19:21,550 --> 00:19:24,570
Now, the rules around this are very precise,
469
00:19:24,910 --> 00:19:27,910
and you need to know them before you
470
00:19:27,910 --> 00:19:29,490
undertake this process.
471
00:19:30,370 --> 00:19:32,870
So this is why you're better served if
472
00:19:32,870 --> 00:19:35,390
you can avoid it altogether, you know, have
473
00:19:35,390 --> 00:19:38,990
other resources available to you to draw from.
474
00:19:39,070 --> 00:19:41,650
And if you're going to be retired early,
475
00:19:41,930 --> 00:19:44,070
you probably should make sure you do have
476
00:19:44,070 --> 00:19:45,610
those additional resources.
477
00:19:45,610 --> 00:19:49,630
But if you find circumstances change and you
478
00:19:49,630 --> 00:19:51,670
must, you know, be in a new circumstance,
479
00:19:53,090 --> 00:19:58,610
this separate equal periodic payments is an approach
480
00:19:58,610 --> 00:20:01,230
that can allow you to get access to
481
00:20:01,230 --> 00:20:07,210
your retirement plan and not be penalized the
482
00:20:07,210 --> 00:20:08,510
10 percent penalty.
483
00:20:09,250 --> 00:20:11,210
You'll still have income taxes the way you
484
00:20:11,210 --> 00:20:13,930
would from your retirement account, but not have
485
00:20:13,930 --> 00:20:16,830
the 10 percent penalty for withdrawals prior to
486
00:20:16,830 --> 00:20:17,450
59 and a half.
487
00:20:17,710 --> 00:20:19,550
And it's worth mentioning there are other instances
488
00:20:19,550 --> 00:20:22,850
where you can access if there's a disability
489
00:20:22,850 --> 00:20:26,050
or, you know, certain kinds of circumstances that
490
00:20:26,050 --> 00:20:29,630
might allow for earlier withdrawal.
491
00:20:29,830 --> 00:20:33,430
But in this case, the rules are somewhat
492
00:20:33,430 --> 00:20:35,830
involved in, you know, I wasn't planning to
493
00:20:35,830 --> 00:20:37,530
spend the whole show on this, but just
494
00:20:37,530 --> 00:20:39,590
the notion that it is available.
495
00:20:40,150 --> 00:20:44,130
The challenge becomes if your circumstances change, let's
496
00:20:44,130 --> 00:20:46,270
say, as an example, you start down this
497
00:20:46,270 --> 00:20:48,590
path of a 70 to 50, you know,
498
00:20:48,650 --> 00:20:52,070
you're going to withdraw some money and not
499
00:20:52,070 --> 00:20:54,150
be penalized by doing it, you know, do
500
00:20:54,150 --> 00:20:55,870
it in this appropriate fashion.
501
00:20:56,990 --> 00:20:59,630
But then you decide maybe I'm going to
502
00:20:59,630 --> 00:21:01,350
get a part time job and I don't
503
00:21:01,350 --> 00:21:03,570
need to draw from this.
504
00:21:03,650 --> 00:21:04,810
I'm going to stop doing it.
505
00:21:05,370 --> 00:21:09,750
You violated the rules of the separate equal
506
00:21:09,750 --> 00:21:10,410
period.
507
00:21:10,590 --> 00:21:13,410
Periodic and violated the periodic component.
508
00:21:13,890 --> 00:21:14,030
Right.
509
00:21:14,350 --> 00:21:18,010
So essentially there's different methods of whether how
510
00:21:18,010 --> 00:21:18,750
it's calculated.
511
00:21:19,210 --> 00:21:21,770
One that I think of as a common
512
00:21:21,770 --> 00:21:23,590
one is, you know, related to that R
513
00:21:23,590 --> 00:21:25,670
&D kind of notion.
514
00:21:25,910 --> 00:21:27,890
You know, you look at a table to
515
00:21:27,890 --> 00:21:29,750
come up with an amount and that it's
516
00:21:29,750 --> 00:21:34,030
permissible to withdraw from and that allows you
517
00:21:34,030 --> 00:21:34,610
an amount.
518
00:21:34,850 --> 00:21:36,470
Now, is that the right amount to meet
519
00:21:36,470 --> 00:21:37,330
your needs or not?
520
00:21:37,470 --> 00:21:38,490
You know, this is why you look at
521
00:21:38,490 --> 00:21:38,710
these.
522
00:21:39,130 --> 00:21:42,870
There's a few different ways to calculate what
523
00:21:42,870 --> 00:21:45,870
the amount of these periodic payments can be.
524
00:21:46,570 --> 00:21:48,710
But you are required to do it.
525
00:21:49,150 --> 00:21:50,030
Let's say you're 55.
526
00:21:50,410 --> 00:21:53,250
You have to do it at least until
527
00:21:53,250 --> 00:21:55,270
you're 59 and a half and not less
528
00:21:55,270 --> 00:21:56,450
than for five years.
529
00:21:57,490 --> 00:21:59,950
So in that case, you'd have to do
530
00:21:59,950 --> 00:22:03,230
it for five years, even if you said,
531
00:22:03,310 --> 00:22:04,610
oh, circumstances change.
532
00:22:04,710 --> 00:22:05,830
I don't need this anymore.
533
00:22:06,790 --> 00:22:09,960
So it's an oddity and it's complex.
534
00:22:10,810 --> 00:22:14,870
And I would consult an advisor, probably both
535
00:22:14,870 --> 00:22:19,170
a financial advisor and a tax advisor in
536
00:22:19,170 --> 00:22:21,650
reviewing this to make sure you follow through
537
00:22:21,650 --> 00:22:22,910
on doing it properly.
538
00:22:23,550 --> 00:22:26,090
Should you feel that this is a necessity
539
00:22:26,090 --> 00:22:27,530
that you might have to deal with.
540
00:22:27,690 --> 00:22:27,850
Yeah.
541
00:22:27,870 --> 00:22:30,810
On the opposite of the technical comments that
542
00:22:30,810 --> 00:22:33,810
you shared, I have to say that this,
543
00:22:34,130 --> 00:22:39,610
not the 72T, but this frequency of people
544
00:22:39,610 --> 00:22:43,490
who retire at before 50, after 50, after
545
00:22:43,490 --> 00:22:45,570
60 or 70 with the intention of not
546
00:22:45,570 --> 00:22:48,050
working and then wanting to go back to
547
00:22:48,050 --> 00:22:49,870
work or finding something that they want to
548
00:22:49,870 --> 00:22:52,710
do or being bored is super common.
549
00:22:53,430 --> 00:22:56,370
So you can think that you're retiring at
550
00:22:56,370 --> 00:22:58,970
55 and you're done working.
551
00:22:59,930 --> 00:23:04,030
But I suspect that most people are going
552
00:23:04,030 --> 00:23:06,330
to want to do something productive, something.
553
00:23:06,470 --> 00:23:06,590
Yeah.
554
00:23:06,650 --> 00:23:08,110
You may just be done with what you
555
00:23:08,110 --> 00:23:10,510
used to do and not want to do
556
00:23:10,510 --> 00:23:11,290
that anymore.
557
00:23:11,790 --> 00:23:13,850
But that doesn't mean you may not want
558
00:23:13,850 --> 00:23:16,930
to do something for compensation along the way.
559
00:23:16,930 --> 00:23:19,170
I just had a conversation the other night.
560
00:23:19,250 --> 00:23:21,590
I was at Home Depot picking up something
561
00:23:21,590 --> 00:23:25,850
at the tool rental thing and I had
562
00:23:25,850 --> 00:23:27,090
a police shirt on.
563
00:23:27,530 --> 00:23:29,830
So the gentleman who had long hair and
564
00:23:29,830 --> 00:23:31,810
a beard, by the way, he said, oh,
565
00:23:32,030 --> 00:23:33,150
you're retired.
566
00:23:33,410 --> 00:23:35,410
I said, yeah, because me too, LAPD.
567
00:23:36,110 --> 00:23:37,990
And so he was talking, he goes, I
568
00:23:37,990 --> 00:23:39,550
retired for like five years and then I
569
00:23:39,550 --> 00:23:40,230
had to do something.
570
00:23:40,370 --> 00:23:41,390
I started part time.
571
00:23:41,870 --> 00:23:43,490
Now I'm working 60 hours a week.
572
00:23:44,790 --> 00:23:45,470
Yeah.
573
00:23:45,730 --> 00:23:47,130
But that's not the exception.
574
00:23:47,310 --> 00:23:49,350
That's kind of what develops into the norm.
575
00:23:49,630 --> 00:23:55,350
You can only play pickleball so many days
576
00:23:55,350 --> 00:23:56,950
or go to the beach so many days
577
00:23:56,950 --> 00:24:01,430
or whatever you're retiring for and then you
578
00:24:01,430 --> 00:24:02,950
can say, well, I'd like a few bucks.
579
00:24:03,050 --> 00:24:04,230
I need to do something productive.
580
00:24:04,390 --> 00:24:06,410
I want to meet some new people and
581
00:24:06,410 --> 00:24:06,930
a part time.
582
00:24:06,950 --> 00:24:09,030
Well, sometimes it's, yeah, there's a whole range
583
00:24:09,030 --> 00:24:09,430
of reasons.
584
00:24:10,010 --> 00:24:11,770
But sometimes it could be just to help
585
00:24:11,770 --> 00:24:13,270
you afford some of the things you want
586
00:24:13,270 --> 00:24:13,570
to do.
587
00:24:13,770 --> 00:24:14,190
That's right.
588
00:24:14,190 --> 00:24:17,070
And that's what this retired LAPD officer is.
589
00:24:17,070 --> 00:24:18,670
That was just getting a part time job
590
00:24:18,670 --> 00:24:19,650
to get out of the house and have
591
00:24:19,650 --> 00:24:20,550
some pocket money.
592
00:24:21,170 --> 00:24:23,230
And then they creeped, you know, like they
593
00:24:23,230 --> 00:24:25,250
offered him a position to manage the tool
594
00:24:25,250 --> 00:24:27,190
rental and he likes dealing with all the
595
00:24:27,190 --> 00:24:28,370
customers and contractors.
596
00:24:28,790 --> 00:24:30,510
And so he's enjoying it.
597
00:24:30,650 --> 00:24:31,510
So he's enjoying it.
598
00:24:31,730 --> 00:24:35,210
And let's, let's turn our attention, sorry, let's
599
00:24:35,210 --> 00:24:37,550
turn our attention to social security part of
600
00:24:37,550 --> 00:24:39,710
this for a minute or two, though, because
601
00:24:39,710 --> 00:24:41,330
I think that's something we should also talk
602
00:24:41,330 --> 00:24:42,690
about before we wrap up.
603
00:24:43,630 --> 00:24:46,750
And the whole notion of working, even if
604
00:24:46,750 --> 00:24:50,150
you turn on social security early, it has
605
00:24:50,150 --> 00:24:51,650
its own complexities.
606
00:24:52,110 --> 00:24:52,790
Right, right.
607
00:24:54,350 --> 00:24:56,450
So you want to let me set the
608
00:24:56,450 --> 00:24:57,250
stage on this.
609
00:24:57,870 --> 00:25:00,230
Yeah, really related to my comments of people
610
00:25:00,230 --> 00:25:02,910
who retire, say they retire at 62 and
611
00:25:02,910 --> 00:25:04,370
they say my social security money is there.
612
00:25:04,390 --> 00:25:05,390
I'm going to take it right there.
613
00:25:05,450 --> 00:25:05,790
It is.
614
00:25:06,190 --> 00:25:07,510
I know I'd get more later, but I'm
615
00:25:07,510 --> 00:25:08,250
going to take it.
616
00:25:08,590 --> 00:25:10,770
And then I want to start now.
617
00:25:10,850 --> 00:25:11,870
I got who knows how long I'm going
618
00:25:11,870 --> 00:25:12,230
to live.
619
00:25:12,230 --> 00:25:13,630
I'd rather get started.
620
00:25:14,370 --> 00:25:16,030
And then you fall into that scenario I
621
00:25:16,030 --> 00:25:18,010
described or something like it, and you decide
622
00:25:18,010 --> 00:25:18,570
to work.
623
00:25:19,090 --> 00:25:21,730
And so since you're not of full retirement
624
00:25:21,730 --> 00:25:25,110
age, which would be 66 or 67, where
625
00:25:25,110 --> 00:25:26,550
you'd have a higher number, right?
626
00:25:27,170 --> 00:25:27,650
Yeah.
627
00:25:28,490 --> 00:25:30,990
I think it's 20 some odd thousand dollars
628
00:25:30,990 --> 00:25:32,370
is your limited amount.
629
00:25:32,370 --> 00:25:34,730
That I'm planning to find.
630
00:25:35,230 --> 00:25:35,630
But yeah.
631
00:25:35,850 --> 00:25:37,430
So if you make more than.
632
00:25:37,630 --> 00:25:40,790
Twenty three thousand four hundred dollars in 2025.
633
00:25:41,370 --> 00:25:44,650
I'm pretty sure that retired LAPD officer working
634
00:25:44,650 --> 00:25:47,730
full time managing the tool rental center is
635
00:25:47,730 --> 00:25:49,010
making more than that.
636
00:25:49,450 --> 00:25:50,390
So yeah.
637
00:25:50,810 --> 00:25:53,770
So you wouldn't want to keep receiving social
638
00:25:53,770 --> 00:25:56,310
security if you turned it on at 62,
639
00:25:56,510 --> 00:25:59,510
as an example, retiring early if you're going
640
00:25:59,510 --> 00:26:00,750
to be working part time.
641
00:26:00,910 --> 00:26:03,230
So an important consideration.
642
00:26:03,230 --> 00:26:07,950
And it is good that you can suspend
643
00:26:07,950 --> 00:26:10,830
your payments if it turns out that you
644
00:26:10,830 --> 00:26:11,910
have this circumstance.
645
00:26:11,910 --> 00:26:14,430
You thought you wanted it early and then
646
00:26:14,430 --> 00:26:17,130
you change your mind, even though you filed
647
00:26:17,130 --> 00:26:19,850
for it, you could suspend and that would
648
00:26:19,850 --> 00:26:23,350
still help that new wages would count toward
649
00:26:23,350 --> 00:26:25,030
your recalculation.
650
00:26:25,170 --> 00:26:27,570
So if they, you know, add some money
651
00:26:27,570 --> 00:26:30,010
in and took off the zero somewhere, you
652
00:26:30,010 --> 00:26:31,770
know, for your 35 years that you were
653
00:26:31,770 --> 00:26:35,910
talking about earlier, you know, I think that's
654
00:26:35,910 --> 00:26:36,930
worth keeping in mind.
655
00:26:37,390 --> 00:26:40,090
But twenty three thousand four hundred dollars, if
656
00:26:40,090 --> 00:26:42,570
you if you make more than that and
657
00:26:42,570 --> 00:26:46,410
you're receiving social security, you're penalized.
658
00:26:47,370 --> 00:26:49,510
It's it's very unattractive.
659
00:26:49,550 --> 00:26:52,130
So you don't want to do that.
660
00:26:52,510 --> 00:26:53,890
No, I don't want to do that.
661
00:26:53,930 --> 00:26:55,550
So think about it.
662
00:26:55,550 --> 00:26:57,470
And we don't have time for this segment
663
00:26:57,470 --> 00:27:00,430
to add commentary on it.
664
00:27:00,470 --> 00:27:03,190
But I'll just say it may even be
665
00:27:03,190 --> 00:27:06,670
financially prudent to wait and draw from other
666
00:27:06,670 --> 00:27:09,130
assets that you have because of the, you
667
00:27:09,130 --> 00:27:10,830
know, the ultimate benefit that you would get
668
00:27:10,830 --> 00:27:12,710
if you retire at a later date or
669
00:27:12,710 --> 00:27:14,610
maybe even 70 because of the.
670
00:27:14,830 --> 00:27:17,390
Yeah, the increases in social security have a
671
00:27:17,390 --> 00:27:19,130
long lifetime projected and all that.
672
00:27:19,210 --> 00:27:20,270
We talk about it once in a while.
673
00:27:20,350 --> 00:27:21,090
We'll go back to it.
674
00:27:21,150 --> 00:27:22,710
But there's a lot of things to talk
675
00:27:22,710 --> 00:27:24,270
to your advisor about on these.
676
00:27:24,270 --> 00:27:27,350
It depends on like the spouse is who's
677
00:27:27,350 --> 00:27:30,250
the higher earning if their spouses, you know,
678
00:27:30,310 --> 00:27:31,790
all that kind of stuff to help you
679
00:27:31,790 --> 00:27:34,130
think about how to strategize around that.
680
00:27:34,630 --> 00:27:35,710
But, yeah, it's a good point.
681
00:27:36,010 --> 00:27:38,970
If you're trying to retire early, not that
682
00:27:38,970 --> 00:27:41,070
we're we sound kind of negative on this,
683
00:27:41,230 --> 00:27:43,750
Jeff, I think we just want to be
684
00:27:43,750 --> 00:27:44,330
careful.
685
00:27:44,630 --> 00:27:46,210
Yeah, I'm not negative about it.
686
00:27:46,210 --> 00:27:48,070
I just want people if they can do
687
00:27:48,070 --> 00:27:49,150
it and if they want to do it,
688
00:27:49,170 --> 00:27:51,090
just go into it with your eyes wide
689
00:27:51,090 --> 00:27:55,350
open and talk to a fiduciary financial advisor
690
00:27:55,350 --> 00:27:57,170
who has not trying to sell anything, just
691
00:27:57,170 --> 00:28:00,750
has your best interest at heart and go
692
00:28:00,750 --> 00:28:04,150
through all these oddities or scenarios or what
693
00:28:04,150 --> 00:28:07,110
ifs to make sure that you're fully aware
694
00:28:07,110 --> 00:28:09,530
of what an early retirement might look for
695
00:28:09,530 --> 00:28:09,770
you.
696
00:28:11,130 --> 00:28:13,010
And if we can be a resource to
697
00:28:13,010 --> 00:28:14,990
you in the process, we're happy to help.
698
00:28:14,990 --> 00:28:17,810
We talk with people with initially with a
699
00:28:17,810 --> 00:28:19,590
consultation that's complimentary.
700
00:28:20,390 --> 00:28:22,630
We go through a little bit, learn about
701
00:28:22,630 --> 00:28:22,930
you.
702
00:28:23,070 --> 00:28:25,510
We then do some analysis and then have
703
00:28:25,510 --> 00:28:28,610
a follow up meeting where we can explain
704
00:28:28,610 --> 00:28:31,910
to you our observations and make some recommendations
705
00:28:31,910 --> 00:28:34,690
and elaborate on if we were to work
706
00:28:34,690 --> 00:28:37,470
together over time, how we work together.
707
00:28:37,650 --> 00:28:39,950
So if that could be a resource to
708
00:28:39,950 --> 00:28:41,750
you'd like to take advantage of, don't hesitate
709
00:28:41,750 --> 00:28:42,830
to reach out to us.
710
00:28:42,830 --> 00:28:45,810
Until next time, everybody keeps driving for something.
711
00:28:46,190 --> 00:28:48,550
Thank you for listening to something more with
712
00:28:48,550 --> 00:28:49,270
Chris Boyd.
713
00:28:49,550 --> 00:28:51,710
Call us for help, whether it's for financial
714
00:28:51,710 --> 00:28:55,630
planning or portfolio management, insurance concerns, or those
715
00:28:55,630 --> 00:28:57,690
quality of life issues that make the money
716
00:28:57,690 --> 00:28:58,790
matters matter.
717
00:28:59,190 --> 00:29:02,430
Whatever's on your mind, visit us at somethingmorewithchrisboyd
718
00:29:02,430 --> 00:29:05,590
.com or call us toll free at 866
719
00:29:05,590 --> 00:29:11,130
-771-8901 or send us your questions to
720
00:29:11,130 --> 00:29:15,090
amr-info at wealthenhancement.com.
721
00:29:15,510 --> 00:29:17,210
You're listening to something more with Chris Boyd
722
00:29:17,210 --> 00:29:18,050
Financial Talk Show.
723
00:29:18,210 --> 00:29:20,650
Wealth Enhancement Advisory Services and Jay Christopher Boyd
724
00:29:20,650 --> 00:29:22,990
provide investment advice on an individual basis to
725
00:29:22,990 --> 00:29:23,530
clients only.
726
00:29:23,690 --> 00:29:25,670
Proper advice depends on a complete analysis of
727
00:29:25,670 --> 00:29:26,850
all facts and circumstances.
728
00:29:27,110 --> 00:29:28,950
The information given on this program is general
729
00:29:28,950 --> 00:29:30,990
financial comments and cannot be relied upon as
730
00:29:30,990 --> 00:29:32,570
pertaining to your specific situation.
731
00:29:32,770 --> 00:29:34,750
Wealth Enhancement Group cannot guarantee that using the
732
00:29:34,750 --> 00:29:36,750
information from this show will generate profits or
733
00:29:36,750 --> 00:29:37,870
ensure freedom from loss.
734
00:29:37,870 --> 00:29:40,230
Listeners should consult their own financial advisors or
735
00:29:40,230 --> 00:29:42,330
conduct their own due diligence before making any
736
00:29:42,330 --> 00:29:43,110
financial decisions.
