Episode 104 – Are You on the Right Track to Retirement?

Brian Quaranta discusses his ‘Right Track Retirement Strategy’ and how income, investments, healthcare, taxes, and legacy planning all play key factors on when, and how, you retire.

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Radio Show Transcripts

Announcer  00:00

information provided is for illustrative purposes only and does not constitute investment tax or legal advice information has been obtained from sources that are deemed to be reliable, but their accuracy and completeness cannot be guaranteed. Neither Brian Quaranta nor his guests are liable for the usage of information discussed. Always consult with a qualified investment legal or tax professional before taking any action.

And now, Retirement You Radio

Asset protection, tax reduction, holistic planning

featuring Pittsburgh’s wealth financial and income coach Brian Quaranta.

Steve  00:38

Welcome, everybody, this is Retirement You Radio increasing your financial IQ with BrianQ. Brian Quaranta is here of course, this is gonna be a big show. We’ve got a lot of things to talk about, and a short amount of time to do it. So, we talk about, you know, people working hard dreaming about retirement and get into retirement and we’re gonna start by talking about young people and how they want to retire early. And then reality sets it. Folks, if you want to get a head start, it’s 800-656-8616 you can also text Brian just text BrianQ all one word to 21000. Brian, you’re hanging out, what’s happening?

Brian Quaranta  01:13

Steve, I’m doing great. And on today’s show, boy do we have a lot to go over we’re going to be highlighting some statistics about retirement and some may really surprise you, by the way the good news there’s still time to get yourself on the right track when we come right back right here on Retirement You Radio

Steve  01:34

Welcome, everybody, this is retirement you Radio. I’m consumer advocate. Steve. Brian Quaranta’s. here we’re talking about increasing your financial IQ with BrianQ. And he set us up quite nicely. When we’re talking about you know, retirement statistics. We like statistics, we like numbers, don’t we, Brian? Hey, how are you? By the way?

Brian Quaranta  01:53

Numbers are always good facts. Max. Sure, man. You know, I mean, you can’t go wrong with facts and math when it comes to retirement. Exactly.

Steve  02:01

I love the fact that we’re starting out we talked about the young people, and I’ve got a 28-year-old son who’s thinking whom retirement maybe I should think about retirement early. Yeah. And I said, wait till you turn 40.

Brian Quaranta  02:14

Well, you know, there’s a whole group out there I think it’s called Fire.

Steve  02:16


Brian Quaranta  02:17

I think you have to- isn’t it Fire?

Steve  02:18

It is Fire.

Brian Quaranta  02:14

All these kids are, you know, retiring in their 30s and 40s. It’s, it’s a pretty neat thing. There’s a whole you know, community around this whole Fire concept, which is really basic stuff. I cut your expenses down to-

Steve  02:36

Financial Independence, Retire Early

Brian Quaranta  02:39

That’s it, Financial Independence, Retire Early. And then you got there’s, uh, you know, Mister Money Mustache, which, you know, he’s out there preaching to people about how they can retire in their 30s and 40s. But, you know, if you look at what they’re doing, it’s just basic stuff, right? Getting expenses down to almost zero, having almost zero expenses. And then on top of it, how do you retire in that short period of time, you got to be able to save at least 90% of your paycheck. So, people are moving out of their homes, moving into small homes, getting rid of cars, walking to work, biking to work, all kinds of neat things. But that’s not what we’re gonna be talking about today. We’re not gonna be talking about Fire. No, but we are going to be talking about retirement and itself because I think the biggest concern for people today is whether or not they’re on the right track. It’s probably the number one question we get here at secure money advisors is are we on the right track. And it’s a matter of fact, folks, if you call in right now, 1-800-656-8616, you can get a complimentary Right Track Retirement System, complimentary meeting, and our right track Retirement System truly has been built around helping you determine whether or not you’re on the right track. It goes over five key areas, it looks at your income, your investments, taxes, health care, and of course, Legacy planning, five key areas not very often you get to sit down with a licensed fiduciary and go over those things. But if you’ve been wondering for a long time, are you on the right track? This is a way you can determine it. schedule that time, come on into the office, sit down with us, and we’ll go through that with you. But if you’re one of those most people I mean, typically, a lot of times people are saying to me, I you know, I’m not sure when to retire. I’m not sure when to take Social Security when is going to be the best time. I’ve heard that if I wait to take Social Security. I’m going to get these delayed retirement credits that go up by 8% a year. I’m confused. Brian, what do I do? Other people will say, you know, I’m in a situation at this point in my life where I can’t afford another big market loss. I don’t have the time to recover. What we hear a lot of now is that most people retiring today are not retiring with pensions and they need a pension. So, they want to know how to create a private pension for themselves. But also, a lot of people that are even retired Steve are worried about running out of money in retirement and retirement actually may be longer than expected. According to the Social Security Administration. A healthy 65-year-old woman has a very good chance of living to age 86, and a 65-year-old man has a good chance of reaching age 84 Older Adults should save for retirement that could last at least 20 years or more. And that’s one of the biggest challenges we’re dealing with is that people are living longer, and retirements are longer than we’ve ever seen them before.

Steve  05:16

Sure. Well, and again, even for those folks who want to retire early, you need even more money to last 30 years or 35 years, if that’s what it comes down to.

Brian Quaranta  05:25

Yes. And this is why, you know, unfortunately, a lot of folks spend more time planning their summer vacation than they do actually planning their retirement well,

Steve  05:32

Not last year, but okay.

Brian Quaranta  05:36

Not last year, that’s a good one. But it’s something that you definitely have to plan for, and more Americans are planning for a longer retirement. Fortunately, Americans seem to be taking the possibility of a longer life to heart. And according to TD Ameritrade, one of the companies we actually use 81% of Americans are shifting assets in present in preparation for living longer than their ancestors did, by reducing their expenses, buying secured life insurance, maximizing their contributions, creating private pension plans by utilizing annuities. So, these are the things that people are doing now so that they don’t run out of money. You know, annuities used to be a dirty word, but you know, you go back to like, 1995, and even, you know, 2005, 2008, the insurance companies really got smart about creating annuities that you maintain control of your money, they’re very low and fees, if no fees, right, you can buy an annuity, stay with zero fees. And you can actually get a guaranteed lifetime income for the rest of your life. So, if you live to age 100, it’s still gonna pay you. And these are the things that we have to think about, especially when we’re living longer is how are you going to leverage your dollars so that they last longer for you, in these longer expected retirements that we’re seeing? Well, let’s,

Steve  06:57

by contrast, let’s talk about you know, we mentioned last year, a lot of folks found themselves being forced into retirement or retiring early, we have to be able to account for that, too. And can we plan for that? Brian?

Brian Quaranta  07:09

Well, yeah, I mean, you know, many Americans are accessing retirement funds early on the opposite side of those who are planning ahead for longer life. There’s a growing trend of Americans who are dipping into the retirement funds early. I just had a client come in, he’s 57 years old, we’re going to be retiring early. How do you do that? How do you take money out of retirement accounts, especially your retirement accounts that you can’t take money out of until you’re 59 and a half? Well, you could do something, you can utilize something called a 55 rule. And you can use something called 72 T. And these are ways that you can access your retirement accounts early without incurring the 10%, early retirement penalty. Now these are these are the things that we have to know how to do because more and more people are retiring early TD Ameritrade actually surveyed and showed that 44% of American ages 40 to 79, have taken money out of the retirement plans, while 46% of those people aged 40 to 49. Have done so and 53% of the people 73 to 79. So, people are accessing money earlier, I’m seeing more and more early retirements. And yes, it can be done, folks, if you’d understand whether or not you’re on the right track. And that’s exactly what we’re going to do for the next 10 callers who call in right now. We’re going to give you the right track Retirement System, which is designed around five key areas. It’s designed around income, investments, taxes, health care, and investments. So, if you’ve ever wondered, “Hey, are we on the right track?” Are we doing the right things? Maybe you want answers to security? When should you collect social security. Or maybe you want to find out about ways that you can protect your money, you know, because maybe you’re one of those folks out there that can afford to take another big loss in the market because you just don’t have the time to recover the right track Retirement System will give you turn by turn directions a roadmap of how you need to get from point A to point B. And by the way, folks, if you’re not on the right track, when would you want to know that now would probably be a good time. So, if you call 1-800-656-8616. Call today, schedule your right track Retirement System appointment, no obligation to do that meaning just come down, sit down with us and we’ll walk you through those five key areas

Steve  09:17

800-656-8616 You’re going to get that comprehensive financial review, plus all the extras that Brian’s talking about you will find out where you are today. Yes, but more importantly, you will get as he described that roadmap turn by turn directions that can really help get you to where you need to be and where you want to be when it comes to retirement 10 collars right now 800-656-8616 800-656-8616 Or simply text BrianQ all one-word BrianQ to 21000.

Brian Quaranta  09:49

When we come back, why Decumulation is the new accumulation buzzword and retirement details.

Steve  10:05

We are back on retirement, you radio increasing your financial IQ with Brian Q. I’m consumer advocate, Steve said all BrianQ is right there. Brian Quaranta, of course, who we’re talking about, he is an author. He’s president and CEO of Secure Money Advisors. He is a fiduciary with better than 20 years in the business, and he’s an independent, all of those things that add up to me, in my mind anyway, as the kind of advisor I want to work with. And I think you will, too. You know, we talk about accumulating money for retirement, that really is how we spend most of our careers, Brian and now we have got to decumulate. That’s a whole different way to look at things.

Brian Quaranta  10:40

And that’s a new buzzword in retirement, isn’t it?

Steve  10:42

Kind of is.

Brian Quaranta  10:43

I mean, nobody talked about decumulation. What we also know is distribution. And the reason is, is if you go back 30-40 years ago, and you look at retirement was so different, because when you retired, you got a Social Security check. You got a pension check. You probably even had a retirement party. remember those?

Steve  10:59

Oh, yeah, sure. Yeah. My mom had one. Yeah. That was 1986. Yeah,

Brian Quaranta  11:04

right. It’s probably the last time you saw him in the 80s. I mean, nobody has retirement parties anymore, because they don’t know whether or not they’re on the right track to retire. That’s why we developed the right track Retirement System for folks to take advantage of. But when it comes to retirement planning, what we have to understand is that things have changed so much, because it didn’t take long for employers to realize it was a lot cheaper to provide a 401 K plan than have to provide a monthly guaranteed income called a pension plan for the rest of somebody’s life. So, they said, “You know what, we’re not going to have to, we’re not going to want to deal with this legacy costs of having to provide somebody with monthly income all the time. So why don’t we just, why don’t we just give them a plan, and we’ll make some contributions to it with them. And when they retire, they can take that money, and they can figure out how to generate income for the rest of your life.”

Steve  11:55

How generous.

Brian Quaranta  11:56

Wow, how generous. I mean, think about the monumental task at hand here for somebody that, you know, we’ve got very, very intelligent clients. I mean, I’ve got doctors, I’ve got attorneys, I’ve got, you know, I’ve got engineers, I’ve got physicist, I’ve got teachers, I mean, you name it, you know, and they’re really great at what they do. But when it comes to decumulation, actually how to distribute money. People are not versed on how that happens. See, accumulation. accumulation is the easiest thing in the world. Anybody can do it, you can open up a TD Ameritrade account, a Fidelity account, you can buy some mutual funds, you can buy some stocks, and you know, if you bought the right stocks or mutual funds, you could actually see it go up in value that’s accumulation. That’s how simple it is. It does, it takes no skill level at all to accumulate money in investments. But it does take a massive amount of skill to actually decumulate the right way and distribute, because what we have to understand is that when it comes to distributing money from a retirement plan, there are hidden risks. One of the hidden risks is called sequence risk. You ever heard of that before? Steve?

Steve  13:02

Yes, we’ve talked about it before.

Brian Quaranta  13:04

That’s right, sequence risks. We look it up, folks. It’s on Google, Yahoo, wherever you- Go Daddy, Duck, Duck Go. Have you used Duck Duck Go yet?

Steve  13:16

No, I have not.

Brian Quaranta  13:17

Duck Duck Go is the new browser folks You should check it out. Really Duck, Duck, Go, everybody’s going to it.

Decumulation, is what we’re talking about here. Distribution. The reason why it’s not easy is because one hidden risk called sequencing risk. So, sequence risk is a mathematical risk that happens when you try to take money out of a portfolio that’s at risk in the market. So, as we know, the market goes up and down. So, think about it like this, let’s say you’re planning on taking $10,000 a month out of your portfolio. And let’s say that month that you take that money out, the market also goes down, and maybe you lose $5,000. So now you just took $10,000 out and income, but you will also lose $5,000. And what happens there is we actually lock into that loss, and we actually compound the loss. And now the portfolio has to work even harder to try to recover itself. And this is how people wind up running out of money early in retirement through something called sequencing risk. And since you don’t know what your rate of return is going to be each year, it’s an impossible risk to remove from the portfolio if you’re trying to generate income, specifically from a risk portfolio. So how do you eliminate sequencing risk? Well, we’ll actually tell you that if you come in and go through the right trek Retirement System, no, I’m kidding. I’ll actually give you the answer right now. Okay, good. That’s alright. But the way you do that is you have to set up a two-bucket approach. So, you have to have a buffer account in place. Now that buffer account bucket could be you know, it could be a money market account. It could be some type of preferred stock, it could be bonds, it could be CDs, it could be annuities, but we have to have a bucket of money to go to that if the markets down we can actually grab money from the bucket that doesn’t have any fluctuation from market risk. So, if I need 10,000 $1,000 out, I might take it from the buffer account versus taking it from the stock account itself. And now we can start to eliminate sequencing risk. But, you know, that’s just one part of the puzzle. The other is how do I actually generate this on a systematic monthly basis? How do I make sure that I’m gonna get this money coming in on a monthly basis without running out of money? And how am I going to bounce back and forth between this account in the buffer account and this account and the buffer account, but you have to understand that distribution, or D cumulation. What we’re talking about right now is the process of setting up an income stream from your investments, because remember, when you retire, the paychecks, gonna stop bills, taxes, all the things you want to do all the travel you want to do, that’s not going to stop. So, if you’re like, 85% of people retiring today, and the only thing that you’re going to have is a social security check and not a pension, then we have to find better ways for you to generate income. One of those ways could be generating income through some type of fixed annuity. Fixed annuities are not a dirty word, although annuities are a dirty word. But fixed annuities are not a dirty word, because they’re just like bank CD’s. And they’ll also some of these insurance companies will give you a guaranteed income for the rest of your life. Now, think about it like this, let’s say you could split that money up into two buckets. And let’s say the first bucket, you could buy an annuity and you could generate $10,000 a month, for the next 25 years. Well, if you could do that, then the risk bucket you’d never have to pull any money from. So, you’re not gonna have to pull any money, it gets 25 years to grow. So, let’s say you’re still living after 25 years, well, I got to do is now split the money again, because that risk bucket probably grew. So, it’s a process of understanding how to systematize the income and eliminate the risk from running out of money too early. And this is why I put together the right track Retirement System, folks, because most people just don’t understand decumulation. And they wind up getting themselves in trouble. And unfortunately, and 21 years of practicing, I unfortunately meet those folks. And when they come in, the unfortunate thing is it’s just a little bit too late. So don’t put yourself in that position. Retirement Planning can actually be a really simple process. But for the next 10 callers we’re going to do is we’re going to actually give you that right track Retirement System at no cost, no obligation. I’ve seen others charge up to $1,000 or more for similar features or offers that we go through with you with the right track retirement system, but we’re gonna give it to you at absolutely no cost no obligation for the next 10 callers. If you call in right now and schedule a time, it really is going to take the mystery out of financial planning, we’re going to help you map out where you are, where you need to go. We’ll show you how to save on taxes, we’ll show you how to create a customized income plan that literally can turbocharged your income and eliminate the possibility of running out of money, most importantly, the Right Track Retirement System. It helps take the guesswork out of retirement planning and we show you the right way to do it. So again, that’s the Right Track Retirement System for the next 10 callers if you call 1-800-656-8616

Steve  18:05

800-656-8616, again, 800-656-8616. And you or you can text us text BrianQ Well, one word to 21000 BrianQ to 21,000.

Brian Quaranta  18:16

When we come back, we’re going to dispel three retirement myths. Social Security, the stock market, and savings. Come right back right here on Retirement You Radio.

Steve  18:35

We are back on retirement, you radio increasing your financial IQ with BrianQ. I’m consumer advocate Steve and BrianQ, of course, Brian Quaranta. He’s president of Secure Money Advisors. And let’s see you are found at securemoneyadvisors.com. That’s your website, Brian. And it’s a good one you guys have. It’s what we like to call robust.

Brian Quaranta  18:54

It is robust. And as a matter of fact, it’s ever-changing. I’m amazed. Yeah, we do keep the content really fresh because we do so much content. You know, it’s been a passion of mine to really help educate people on the best ways. And the best practices when it comes to retirement planning. That’s why we provided secure money advisors.com as a resource for you. You’ve got the radio shows there. And we also have retirement UTV if you haven’t caught the TV show, you can actually go to WWE secure money visors.com And you can watch all of our TV shows. We’re on Friday mornings at nine o’clock on Fox, we’re on again on Fox on Sunday morning, that we’re on WPTN at 10:00 to 10:30 and then we’re on KTK from 12:00 to 12:30. So, you can catch us quite a bit.

Steve  19:43

Wow. DVR it and you have all Brian all the time.

Brian Quaranta  19:46

I brought Brian all the time all Brian all the time. So, but how about these three myths? Okay. Number one

Steve  19:52

For me. It’s like you know, I graduated from high school about a million years ago and even way back then, people were talking about well, Social Security is never gonna be around for you. So, buckle up. It’s like what? Oh, here it is, you know, a million years later, guess what? It’s still here. It’s not going anywhere.

Brian Quaranta  20:06

If I had $1 for every time somebody told me, so Security’s going away, right? Exactly. The number one myth, folks is Social Security is going away. Let me just say this. No federal program is more important for retirement than social security. Now, estimates suggest that there’s probably 10 million seniors that would be in poverty. If it wasn’t for Social Security, holy cow.

Steve  20:34

that’s a big number.

Brian Quaranta  20:36

It’s huge. I mean, think about it. Social Security, is close to half of people’s income in retirement. So, take Social Security way. And you’ve got a massive problem. You think, you think we’ve got tent city in California right now, you’d have tent city across America. If you take sole security way, they’re going to do everything they can to fund it. And believe me, if they can print trillions of dollars out of thin air, for a virus, believe me, Social Security is not going away. According to current projections, the trust fund could run dry by 2035 of the program’s current weaknesses aren’t fixed. And if the trust fund were depleted, benefits would immediately reduce by approximately 25 percentage points. Now, some politicians encouraged, you know, they encourage all that pessimism. I mean, pushing this whole security is going bankrupt narrative like a mantra is just, you know, it’s so easy to understand why so many would expect so little. But these fears are just totally overblown. And I would just tell you that you’re going to, you’re going to high probability get yourself security. Okay. Yeah. You know, the truth, though, is security needs help. I mean, but it’s not going anywhere. I mean, even if nothing were done to fix our Security Trust Fund, and the benefits cuts were to happen. monthly checks in 2035 would still be higher than they are now. And that’s because Social Security benefits increase at a greater rate than the current levels of inflation. But well, let’s put it this way. I mean, do you really think politicians will just let Social Security run dry? You know, I mean, think about

Steve  22:19

I mean, well, you know, people over 60 vote, that’s the biggest voting bloc in this country. And guess who gets those security people over? 60?

Brian Quaranta  22:29

That’s right. You know, Myth number two, though, Steve. Okay, good. Let’s jump, stock market returns and home appreciation are the biggest Retirement Risk. Now, we hear a lot about market volatility. And it seems every newscast talks about, you know, the ups and downs in everything between without really saying anything of substance. Meanwhile, homeowners are constantly obsessing over the estimated value of the real estate, and its totally understandable home and retirement accounts comprise the bulk of most people’s net worth. Given the numbers, it’s no surprise that people view their home value and investment portfolios as the primary determinant of their future retirement possibilities. But a narrow focus on those numbers can be problematic when it comes to actually retirement planning. The truth is, longevity is your number one risk wave along how a research economist at Boston College Steve Yes, authored a study aptly titled How accurate are retirees’ assessments of their retirement risk. And what he looked at was retirees say that they are most afraid of and whether those fears correlate with reality. And what retirees say is that they’re most afraid of how well their investments will perform. Less than half of those surveyed in 2016, for example, said they expect the stock market to rise in value over the following year. The same was true in 2014 12 and 10. Earlier research suggested that pessimism was true even for the Great Recession of 2007 2008. But despite all those statistics, just understand that longevity is your number one risk. And this is why we have to build a plan based around not run out of money. And this is where the right track retirement system comes in. This is why I’ve designed it. This is why we have pinpointed the five key areas that you have to make sure that you have covered number one and most importantly is your income. So, think about it when you retire, how are you going to generate your income, right if you’re if you’re not going to have enough income when you retire. And you’re not going to need to generate that from your investments, think again. Because if you think you’re going to take the money directly out of your stock investments, and get that money last the rest of your life think again, there’s a lot of things that can go wrong. If the market doesn’t cooperate, you could run out of money much sooner than what you thought you could run out of much of money much sooner if you get a poor sequencing, or what we call order of returns. So, we want to eliminate those risks and that’s what the right track Retirement System is all about. And you know if you’ve ever wondered to yourself, hey, I don’t have a pension. I wish I had one. How do I do that? How do I create a private pension for myself? That’s what the right choice, right track retirement system is going to show you how to do. Or maybe you’ve thought to yourself, you know, I’m just in a position right now where I can’t afford to take a big market loss because I just don’t have the time for that money to recover, like I used to the right track Retirement System will show you how to mitigate that risk, so that you can still take risk with some of your money, but you don’t jeopardize your retirement by doing it, or maybe even thought to yourself, hey, what’s the best time for me to even take Social Security? Should I take it at 62? Should I wait till my full retirement age? Or should I maybe maximize it at 70 and get an 8% increase for waiting, you know, what’s the breakeven what really makes sense? The Right Track retirement system is going to bring you through all of that, it’s really going to help educate you on five key areas, income investments, taxes, health care and legacy planning, folks, and that’s for the next 10 callers who call in right now. We’re going to put together that right track Retirement System for you. We’re going to spend 45 minutes with you go through it, I’ll walk you through exactly how it works. What really takes the mystery out of financial planning, it helps you kind of map out where you are and where you need to go. It also will help look at how much you’re paying in taxes. If you can reduce your taxes, show you how to maximize your income and retirement and build an income plan based around proven strategies and techniques that can literally turbocharged your retirement. So, folks calling right now this is where you have to do your part. You can’t procrastinate. Don’t kick the can down the road. Don’t be one of those folks, that plans spends more time planning your vacation than you do your retirement. This is actually a fairly simple and easy process.

Steve  26:34

800-656-8616 again, 800-656-8616 Better yet text BrianQ we’d love to hear from you. Text BrianQ all one word to 21000 text BrianQ to 21000.

Brian Quaranta  26:47

Many listeners have questions about retirement when we come back. We’re gonna tackle those questions right here on Retirement You Radio.

Steve  27:03

And we’re back on Retirement You Radio, increasing your financial IQ with BrianQ, Brian Quaranta’s course who we’re talking about. And consumer advocate, Steve said O’Brien is President and CEO of secure money advisors. And he is a fiduciary 21 years in the business and independence as well as Brian, you put together such a great team of folks at Secure Money Advisors. And I mean, you can meet them essentially, virtually, you know, on your website. But I mean, again, I’ve talked to a bunch of them. And they’re a bunch of good folks. Lots of good people there.

Brian Quaranta  27:33

Yeah, they’re very dedicated people. And, you know, that’s, that’s one thing that I feel very proud of is that everybody cares deeply about all of our clients. You know, we’ve helped retire over 1200 people now, Steve, wow, you know, we’re a very busy office. But, you know, we have systems and processes that allow us to teach people simple and easy ways to retire. But I appreciate the compliment. They’re a great team of people. If you want to find out more about our team folks go to WWE at secure money, advisors.com. You can see our team there. You know, you can go there and listen to some of the older radio shows I even have all the TV shows on there now. So, if you’re looking for content and really to educate yourself, it’s a great place to do it.

Steve  28:16

All right, let’s jump into some questions here. We’ve got Lauren who’s asking, he says I plan to retire next year, I need to decide if I should roll my retirement account into an IRA. My current plan has very few investment options. I’ve also worked for the same employer for 30 plus years. So, I’ve got a lot of company stock in my 401 K. Any suggestions?

Brian Quaranta  28:35

Yeah, that’s a great question. I mean, you know, obviously, the canned answer to that is, you know, rolling your money to a self-directed IRA is going to give you a lot more options to invest in. Now, typically, the company stock conversation will differ depending on what advisors you talk to. But just like we were talking about, at the beginning of this show, we were talking about D cumulation. The distribution, the distribution of your money, works a lot better from an IRA account than it does a 401k account. Although, you know, I’m not really sure how old Warren is here. But this kind of reminds me of an individual that I helped a couple of weeks ago, that’s retiring. And he’s actually under the age of 59 and a half, and the 401k actually becomes an asset to us, because the 401k allows us to take money out something called the 55 rule, prior to age 59 ½ without incurring a penalty. So, you know, there’s a lot to discuss here. There’s a lot in this question, you know, and I’m kind of given some generalities here. But to kind of wrap this up and summarize always more options if you roll to a self-directed IRA. Much easier to control taxation from an IRA because you can choose the tax rate you want with a 401k There’s a 20% mandatory withholding. And then when it comes to company stock itself, you know, depending on how much you have there, you could always roll that out to the IRA also, without incurring any taxes or anything along those lines, but just from an easy use, the IRAs are gonna be a little bit easier to use in the 401k, and probably a lot cheaper too.

Steve  30:18

Sure. So, Lauren, if you’re interested, 800-656-8616. Got a great question from Kyle. He simply is asking what happens to my annuity after I die?

Brian Quaranta  30:28

Yeah, that’s a good one, depending on what type of annuity Kyle owns. You know, there’s three types of annuities. There’s fixed, there’s variable, there’s index, and there’s actually a secret little fourth one called an immediate annuity. So that’s kind of the old annuity though the immediate annuities. But if he had an immediate annuity, you know, let’s say he put, you know, $200,000 into this annuity, and he was generating income. When he dies, you know, the insurance company keeps the money. You don’t see too many of those very often anymore. But with most annuities today, Steve, the reason why they’re used and becoming very popular in retirement planning, and probably some of the best tools for income planning, is because if you die, the balance of the annuity just pays out to your family. You know, if you’re married, you know, I’ll use myself as an example, I have a large portion of my money in annuities, why do I do that? Because that will generate pension income for me that I can’t run out of, if I die, that income will pass on to my wife. And if my wife dies, the remaining balance in the annuity will pay out to my son, so they’re very friendly today compared to what they used to be.

Steve  31:37

Okay, so that makes sense. You know, again, I like that question. Anyway, let’s go with 800-656-8616. All right, before we run out of time, I want to go to Ron, he says, I just turned 52 been working for the same company about 21 years, I came in at the tail end of pensions, and then was converted to a 401 K, no, I’ve never met with an advisor. I think it’s time what should I be looking for? And how should I prepare? Interesting, do you see a lot of folks who kind of were in that transition

Brian Quaranta  32:06

all the time, especially in western Pennsylvania, I mean, I’ve got a lot of financial advisor colleagues across the country that don’t see it as much as we do. But we see it a lot, especially with the steel mills, and just some of the older companies, the airlines things along those lines. You know, we’re where people did have a pension, and then that was stopped, and a new contract took over. So, what happens they have a small little pension, that they can either take a lump sum of or maybe take some monthly income from, but the bulk of their retirement savings is now in this 401k. And for a lot of those folks, you know, when they retire, you know, they’re going to need to generate income from that money that’s accumulated in that 401k. And that’s really where that D cumulation comes in. Steve, what we’ve been talking about all show is how do you distribute that properly, without putting yourself in a position to where you run out. And that’s exactly what the right track Retirement System will help you do is all of these moving parts that you deal with, you know, we help build out a cash flow plan for you, we help build out an asset summary, we show you what happens if you take withdrawals and what the impact of them will be. It will show you what interest rates you should be shooting for there’s three interest rates you always want to be looking at. And those three interest rates are very eye-opening, it teaches you how to cumulate your money, the proper way, so you don’t run out of money during retirement. That’s what the Right Track Retirement System is all about. If you’ve ever wondered to yourself, you know, I’m not really sure how to generate income from my portfolio. That’s what the right track Retirement System will do. Maybe you thought to yourself, “Hey, I just can’t afford to take a big loss in the market because I just don’t have the time to recover.” The Right Track Retirement System will show you ways to avoid that type of stuff from happening. So again, for the next 10 callers who call in right now, we’re going to put together that Right Track Retirement System at no obligation to you. We’ve seen others charge up to $1,000 or more for the similar features. But this will literally take the mystery out of financial planning. It’s going to go through five key areas with you, which we’ve talked about on the show, it’s going to help you look at how much you’re paying in taxes, how much income you could generate from your portfolio through utilizing proven strategies and techniques. Most importantly, it’s really going to just take the guesswork out of it. And that Right Track retirement system that we’ve developed here at secure manufacturers is going to give you turn-by-turn directions. And that’s for the next 10 callers who call

Steve  34:23

800-656-8616. That’s the number to call 800-656-8616 You’ll get to that comprehensive review that includes the Right Track Retirement System, and so much more. You will see where you are today. But more importantly, you’ll find you’ve got a roadmap that can really help get you to where you need to be 800-656-8616 again 800-656-8616 Or better yet, text BrianQ to 21000 Brian Quaranta, BrianQ to 21000 You’re Brian Quaranta. Always a pleasure, Brian. It’s fun to get together again and just talk retirement.

Brian Quaranta  34:59

Steve it’s always fun seeing you, and folks, we’re gonna see you again next week right here on Retirement You Radio Have a great weekend.

Announcer  35:10

Information provided is for illustrative purposes only and does not constitute investment tax or legal advice. Information has been obtained from sources that are deemed to be reliable, but their accuracy and completeness cannot be guaranteed. Neither Brian Quaranta nor his guests are liable for the usage of information discussed, always consult with a qualified investment legal or tax professional before taking any action.

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