The Most Important Thing That You Absolutely Must Do Going into Retirement and Through Retirement Is Protect Those Savings to Make Sure That Market Volatility Doesn’t Take It Away, Inflation Doesn’t Take It Away.
Announcer 00:00
Investment advisory services are offered through Foundation Investment Advisors, LLC an SEC registered investment advisor. Brian Quaranta and his guests provide general information, not individually targeted, personalized advice, and are not liable for the usage of information discussed exposure to ideas and financial vehicles should not be considered investment advice or recommendation to buy or sell any of these financial vehicles. This information should also not be considered tax or legal advice, past performance is not a guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. Any comments regarding safe and secure investments are guaranteed income. Streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company.
Steve 00:39
Welcome in to On the Money with Secure Money and Brian Quaranta. My name is Steve, and today, as we step into 2025 it’s been a tumultuous year shaped by geopolitical shifts, ongoing conflicts, lingering questions about inflation, interest rates, immigration and trade. While the retirement investing landscape may feel overwhelming for a lot of us, good news, Brian Quaranta is here to help us dig into five ways to help protect our retirement savings, Brian?
Brian Quaranta 01:04
Well, it is always about protecting retirement savings, and I think it’s critical that we have this show, because the most important thing that you absolutely must do going into retirement and through retirement is protect those savings to make sure that market volatility doesn’t take it away, inflation doesn’t take it away. And more importantly, let’s make sure you don’t run out of money. We’re going to hit all of this when we come right back with On the Money with Secure Money,
Announcer 01:32
And now On the Money.
Brian Quaranta 01:35
Any good retirement plan starts with the foundation,
Announcer 01:38
Asset protection, tax reduction, holistic planning.
Brian Quaranta 01:42
These are the things that start to move you towards having a retirement plan.
Announcer 01:46
Retirement doesn’t have to be complicated.
Brian Quaranta 01:49
You think that’s the difficult part? That’s just getting started.
Announcer 01:53
And now On the Money with Secure Money.
Steve 01:59
We’re back On the Money with Secure Money. My name’s Steve. Brian Quaranta is here. Brian, of course, is, well, he’s an author. He wrote the book called Right Track Your Retirement, simple planning strategy to help you reduce risk, build income and provide peace of mind. That to me, Brian sounds like one heck of a retirement. How are you
Brian Quaranta 02:15
I am doing great. Stevie, it is one heck of a retirement, isn’t it? You know, I really do, you know this whole thing can be a lot simpler than what the investing community makes it out to be. You know, I think people are confused between investing and retirement planning. It’s kind of all got merged into one space. And people think that investing in stocks and bonds and mutual funds and the way, well, the way that you would invest your money through your employer for 1k people think that that is the way that you invest for retirement. That’s the way that you save for retirement, but it’s not the way that you actually invest into retirement and through retirement, it was a completely different approach we have to take
Steve 03:07
And again. So, as we, as we look at this, you’re talking about five ways that we can help protect us. I mean, it is, it’s, there’s so many unknowns going into this year and so, so invest in funds that have an intelligent approach to risk management. That’s a very interesting way to say that.
Brian Quaranta 03:22
Yeah, yeah. Well, I mean, here, here’s, here’s how simple you can make this look. I mean, there’s lots of ways in 2025 that you can try to mitigate, you know, market volatility and you should focus on risk management strategies as you go through retirement. But these techniques you know, such as tactical allocation or dynamic rebalancing, things that you hear about a lot, that are fancy, quite frankly, are not as good as just investing your money, let’s say in the s&p500, or the Dow or the NASDAQ, and just buying the index itself, a lot of there’s a great book I was reading called the Forever Shrinking Alpha. Wasn’t there a show the Forever Shrinking Man? Or what was it the Shrinking Man? Wasn’t it? What was the Incredible Shrinking Man, the book, I don’t know now that I think about it again, the book was The Incredible Shrinking Alpha. I think it was. And alpha is a fancy term, by the way, for getting more return than what the stock market did. So, if the stock market got a 20% rate of return, alpha would mean that you got greater than 20% rate of return and so and it used to be that these active fund managers that use tactical asset allocation could get alpha on a year to year basis; And, you know, there was simple ways that they would do that they would look at, you know, what the average investor was buying, and they would do the opposite of what the average investor was doing. And so, there was all these different techniques that they would use. But it happened was so many fund managers got into this tactical asset allocation, and they started to cannibalize the alpha, meaning they were all starting to compete against one another, therefore shrinking the alpha and making it harder to get the alpha. And what’s happening right now is you’re seeing that something as simple as just buying the index is actually getting you the better return. But that doesn’t mean that we can avoid asset allocation, and asset allocation is looked at differently in retirement, so I like to look at it as your safe bucket versus your risk bucket. So how much money do I need to set aside into a safe account that will ensure my income for the rest of my life, and if you’re married, for the rest of your spouse’s life, and then the remaining balance. How can I invest that so that it has the opportunity to grow and provide additional income? And you know that bucket, also known as your risk bucket, also allows us to have time to invest so that we can absorb market volatility. Look any, if you read any investing book out there, they’re going to tell you that the one thing that is going to help you mitigate market risk and volatility is time, and that becomes the problem, because as you approach retirement and you’re going to need your money to live off of like most people do, how are you going to give your money time to grow if you need to actually take it as a source of income? And that’s kind of the conflict that we have. And so at Secure Money Advisors, what we teach you is the appropriate way to allocate the money into two separate buckets, three sometimes that allow you to hedge against inflation, but do all the important things like make sure you don’t run out of money, make sure you keep ahead of inflation, make sure that you keep the purchasing power of your dollars, making sure that we have a good tax strategy in place, so on and so forth and again. You know, folks, if you’re just joining us. You can go to RightTrackYourRetirement.com and get a copy of my book, Right Track Your Retirement, where I lay out a road map for you to follow and make this retirement planning stuff a little bit easier than what the industry itself has made it.
Steve 07:38
800-656-8616, that’s the number you should call. Get yourself started with Brian, sit down and really begin to have the conversation. So, we’re talking about ways to just make sure that we’re going to be okay and that we’re protecting our assets. I like this one, invest in funds that provide a hedge against large equity losses. I think I know what that means, but help me out.
Brian Quaranta 07:57
Yeah, the funds designed to hedge against significant equity losses can act as a safety net during market crashes. I mean, these funds are going to include alternative investments, such as option strategies, low correlation of assets, or inverse ETFs. So, you know, if the inverse ETFs mean that if the market goes down, you go up, right, and if the market goes up, you go down. And so, there’s a whole strategy behind inverse ETFs, but you’ll see things like structured notes, and by integrating these hedging tools into your portfolio, you can create a layer of protection that cushions the blow of market downturns, preserving your retirement savings and, more importantly, providing peace of mind during turbulent times.
Steve 08:47
Just exactly what you said, Brian, we’re about out of time here, so let’s remind folks how they can sit down with you and begin the conversation.
Brian Quaranta 08:54
Yeah, look, folks, I want you to first go to RightTrackYourRetirement.com get a copy of the book so you understand what we do at Secure Money Advisors and how we can help you, then I want you to take the time to schedule an appointment. You can do both. When you go to RightTrackYourRetirement.com you can do both right there, get a copy of the book and schedule a time to come in, and when you come in, we will roll up our sleeves and we’ll work together and building a plan that’s customized towards your goals, your what your money needs to do for you again, RightTrackYourRetirement.com. 800-656-8616, 800-656-8616
Steve 09:32
Quick break. We’re back with more On the Money With Secure Money and Brian Quaranta right after this.
Brian Quaranta 09:35
Coming up, retirement planning can take an emotional toll on even the most resilient people. That’s why we put together a few ways to leverage your biggest emotions for a richer and more fulfilling retirement. Stay with us for some special ways to get your mind right and your money right. And we come back with On the Money with Secure Money
Announcer 10:01
And now On the Money with Secure Money.
Steve 10:08
Welcome back On the Money with Secure Money is the program. Brian Quaranta is here, and my name, Steve, we have been talking about really things that can help protect our retirement savings, get us involved. And now we’re kind of getting into the emotional side of it. The trouble with retirement is that you never get a day off. So says Abe Lemons.
Brian Quaranta 10:30
Well, I think we can all agree that retirement and the stuff leading up to it can be emotional. I mean, wouldn’t you
Steve 10:36
agree? Yeah, it really is. I mean, you know, just having, I mean, my sister six years younger than to watch her and her husband go through all of that. Yeah, it’s a process, and it’s scary.
Brian Quaranta 10:47
Yes, it is. And you know, you know, I’ve gotten emotional over money before, right? I mean, you know, and yeah, and a lot of people will, and it’s a very stressful thing, especially when you’re getting worn out and burnout from your day to day, grind with your employment, and you’re ready to go. And now you got to start making these big decisions around money, and you have to start to either decide that you’re going to do it yourself, or you’re going to go out and you’re going to find somebody to help you. And so now you’ve got to seek out professional help, and now you’re trying to find someone that you can connect with and someone that aligns with your money philosophy. And this is the best advice that I can give to people that are having to work with a financial advisor going into retirement. And through retirement, is find someone that shares in the same money beliefs that you do. So, for example, you know, I’ve never been a big risk taker, so the way that I manage my own money is I’m gonna protect my family and my lifestyle. First, I’m gonna make sure that no matter what happens, no matter what happens in the stock market, no matter what happens, you know in the economy in general, that I’m going to be okay, that my family is going to be okay, that my wife is going to be okay, and we’re going to be a continue to stay retired, and our lifestyle is not going to have to change. We’re not going to have to go back to work. And that’s the way that I think, and that’s the way that I think about my client’s money. Now, there’s other advisors out there and this is okay. There’s other advisors out there that say, You know what, we need to get the best rate of return that we can, and that means that we’re gonna have to take risk to do it. And here’s what I have found, Steve, it’s really easy to tell somebody else to take risk with their money, of course, you know, especially if you get paid a fee or commission to do it. And so, I mean, ask yourself this. I mean, if someone is risking your money and they don’t do well with it and they lose it, are they going to pay your mortgage? Are they going to pay your electrical bill? I doubt it. So be smart about what you’re doing. This is not a dress rehearsal. We don’t get a second chance at this. We don’t want to be in a position where we have to go back to work. That’s the last thing we ever want to see happen so- and happiness is one of the first emotions that I want to talk about. And I think you know, what studies have shown is that people that are the happiest actually have the most guaranteed monthly income, meaning people with pensions.
Steve 13:17
I wonder why that makes so much sense. Yeah, you know, it really does.
Brian Quaranta 13:21
Right. I mean, you take federal workers, or, you know, first responders, teachers that have pensions, not worried about anything. You take the average, you know, corporate person, or you know, blue collar worker that you know has not received a pension at all, and they’ve got to live off that money that they’ve accumulated for the rest of their lives. They’re worried the heck. And you know, this is where people get confused, because, you know, sometimes they’ll be sitting down with friends or family members, and family members might say, Well, look, just invest your money in a good, diversified portfolio and don’t worry about it. When the market goes down, and don’t look at it at all, and you’ll and just don’t panic. Well, that person that’s giving you that advice might not be telling you the other half of the story, and that is that they have a guaranteed pension coming in along with their social security check, so the money they have invested is truly long-term money, but there’s not a lot of people like that these days. A matter of fact, you got 85 to 90% of people retiring that don’t have a guaranteed source of income. So, you know, you know, not worrying about market volatility and not paying attention to it, and don’t worry if the market goes down. That’s really easy to say. If you’ve got, you know, a guaranteed income sources coming in that are paying for your lifestyle. So, that’s why I always say protect your lifestyle first. Because if you protect your lifestyle first, and you put enough money aside to ensure that monthly income, you’re going to be the happiest in retirement, I promise you.
Steve 14:48
Sure, and so that was happiness. We got to flip side that and sadness. What brings that on? And how do we apply that in this situation?
Brian Quaranta 14:57
Well, regret or disappointment may arise if you feel you haven’t saved enough, you started too late.
Steve 15:01
Most of us, right, yeah, right. We all think that whether or not we have.
Brian Quaranta 15:04
Right, you know, that’s right, or you missed opportunities. You know, that’s the other thing too, is that you know people, you know they have FOMO, the fear of missing out. And you know people that even protect their money, like myself, for example, right? If I’m protecting my money. I’m getting a reasonable rate of return of maybe four to five percent I don’t ever have to worry about, you know, the stock market crashing and my lifestyle being taken away from me. But if I see a stock that I could have bought that just went up 80 90% it’s natural free to go, Gosh darn it. I should have put some money in that, right? So, we all feel that way. So, you know, acknowledge any missteps, but focus on actionable changes going forward, like ramping up your contributions if you feel you haven’t saved enough, consolidating debts, or, more importantly, seeking financial advice from a financial advisor. And here’s the truth, the biggest threat to retirement is uncertainty, and that’s why I wrote Right Track Your Retirement. Steve, it’s a simple, powerful guide to help you reduce risk, build income, and most importantly, it provides you with peace of mind. And if you’re feeling uneasy about your financial future, now is the time to act. And many of the people who come to us share the same concerns. They say, I can’t afford the risk they’re taking because they don’t have time to recover if the market goes down. They’re unsure about the right time to take Social Security and maximize their benefits. They don’t know how taxes will impact their retirement accounts, or how much of their hard-earned money they’ll actually get to keep, and their biggest fear is running out of money. And these are real human concerns, and they’re exactly why you need this book. It’s not just about the numbers, it’s about security, clarity, confidence, control. With Right Track Your Retirement, you’ll learn how to take control of your financial future, reduce unnecessary risk, and finally, feel confident that you can stay retired. So go to RightTrackYourRetirement.com, claim a copy of my book today, and while you’re there, you can also schedule time to come in, or you can call 800-656-8616 to schedule a meeting with our team. And as promised always, this is not a sales pitch. It’s an opportunity for you to sit down with a trusted advisor who will help you get all your stuff organized, roll up their sleeves and identify potential problems and show you solutions to fix those problems.
Steve 17:24
That sounds great. Brian 800-656-8616 it’s a great opportunity for you to once and for all, come in, sit down, get a financial roadmap put together. It’s an opportunity for you to get a true, practical financial review. If you’ve never done it before, there’s no time like the present. Don’t procrastinate any longer. Simply call Brian. 800-656-8616 and begin the process. And again, 10 callers right now get that comprehensive financial review. You’re going to see where you are today, but more importantly, you’re going to see that you now have a road map that can help get you to where you need to be. 800-656-800-656-8616, 800-656-8616 Brian, as always, let’s take a quick break. Come on back. We’ve got a lot more to talk about here On the Money with Secure Money right after this.
Brian Quaranta 18:09
Do you know the keys to a financially secure retirement from creating a spending plan to managing debt and investments? Sound financial planning can turn your goals into reality. Today, we’re going to break down the essentials for a solid retirement strategy when we come back with On the Money with Secure Money.
Announcer 18:31
And now On the Money with Secure Money,
Steve 18:38
We’re back On the Money with Secure Money. My name’s Steve, Brian Quaranta’s here. Brian, of course, is President and CEO of Secure Money Advisors. The website is SecureMoneyAdvisors.com. You can start there or RightTrackYourRetirement.com. That’s an even better place to start RightTrackYourRetirement.com. Sign up. Get the book. It’s free. Brian’s going to send it to you, pay for postage, everything else, and it’s really a great book to get you on the right track to retirement. That’s the whole point, right, Brian?
Brian Quaranta 19:05
That’s right. That’s right. We want you on the right track. We want you to have a blueprint. We want you to have a plan, and more importantly, want you have a strategy.
Steve 19:11
And you know, retirement, I like the little quote here, Retirement is wonderful. It’s doing nothing without worrying about getting caught at it. I do like that, yeah? Gene Perret, whoever that is. Perret.
Brian Quaranta 19:25
Right, right, yeah. You know, doing nothing is very hard, yes, yeah, yeah. It’s really hard, especially if you’re a real type, a personality like I am where, you know, you always feel you can need to be, you know, checking something off the to do list. But you know, retirement is a time where you should be doing nothing and not worrying about getting caught. And you know, retirement isn’t about- it’s about more than just savings. It’s about planning every aspect of your financial life to support the lifestyle you want, whether you’re tackling debt, exploring investment options or preparing your estate, you got to be proactive. And you got to be a proactive approach is the cornerstone of success. And you know, so I want to talk about, you know, some questions, you know, yeah, go ahead. Go for it.
Steve 20:18
What are the big four indicators of a strong retirement plan. Are there just four? It’s probably more. But go ahead, let me see.
Brian Quaranta 20:24
I mean, look, here’s, here’s what financial experts highlight. You know, four key metrics for retirement readiness is living within your means, increasing assets yearly, right? So, we’re seeing our assets increase on a yearly basis, decreasing reliance on debt. So, we’re using less and less debt to live our lifestyle, and you’re ensuring retirement cash flow, you know, that covers the basic living expenses without depleting assets. Oh, my gosh, geez. I wonder who talks about this every weekend. We do.
Steve 21:04
Absolutely.
Brian Quaranta 21:06
You know, the disclosure to our listening audience. Steve had given me these notes about these four indicators, and I was reading those for the first time, and didn’t realize that, Steve, did you get these from me?
Steve 21:21
Well, you know, I can’t lie. When the information is good, it’s good. So, you’ve got that and it and again, even, I even use the language, stay on track, huh? Yeah, see what I did there?
Brian Quaranta 21:36
I know, I know. I know that’s right.
Steve 21:38
So, what about sticking to tracking? What about tracking our cash flow and just how critical that is, especially for retirees. And I mean it, you’ve said this 1,000,006 times. It’s, it’s, it’s, you know, you’ve got to have the income. You’ve got to- you’ve got a plan,
Brian Quaranta 21:51
Yeah, and a cash flow statement shows all money coming in and going out. And, you know, Steve, I will tell you right now, and it still amazes me to this day, we are probably one of the only planning firms that actually give people a cash flow statement that shows all of their money coming in and all of their money going out. And let me tell you, it’s probably why a high percentage of people that come into our offices, even if they’re going to go meet with you know, two or three other financial planning firms, a high percentage of those people will always come back to us and say, we’re going to go with you guys. And when I ask why, they’ll say, Well, you’re the ones that actually showed us a clear picture of financial health, and you showed us all the monies that would be coming in and going out, and we were actually able to see how our money was working, how if we had an emergency and we needed to go in and take a large sum of money out, you know, let’s say an unplanned amount of $50,000 to $100,000 I always like to do big amounts when we’re planning, because you like to look at worst case scenario. And we build these cash flow statements so that people can actually, you know, plug and play their own scenarios. You know, we’ll slide the keyboard over to people and say, go ahead, just punch some numbers in. What do you want to see? What happens if you got sick, you know, next year, and you know, for the next three years, you had to take out $100,000 a year. What does that do to the balance of your accounts? What happens if there was a family emergency, and all of a sudden, you know, you needed to stroke a check for $200,000 for something, you know, because of a family emergency. And we start running all these scenarios, and a lot of these scenarios are in everyone’s head, right? I mean, everybody’s got, you know, their own fears. Well, what? What happens if? What happens if all of a sudden one of our grandkids needs us? You know, maybe, and maybe this is somebody that you know has a very close relationship with their grandkids, and their grandkids have been in trouble before financially, and they want to know if they can be there to support them again if they stop working. So, everybody’s got these scenarios in their head that are unique to them because of the life that they’ve lived. And so, they get to play these out right there in the conference room, and they get to see how all that cash flow starts to work. And Steve, this is why I took the time to write the book, because so many people would come in and say, we’d say, Are we on the right track? Are we doing the right things? And here’s the truth, the biggest threat to your retirement is uncertainty. So, what we want to do is remove the uncertainty and replace it with certainty and Right Track Your Retirement. The book that I wrote, it’s a guide to help you get that certainty to help you understand how to reduce risk, to how to build income and most. Most importantly, provide what we all want, and that’s peace of mind and certainty. And so, if you’re if you’re feeling uneasy about your financial future, now is the time to act. Don’t procrastinate. Do not kick the can down the road. Many of the people that come in and will share with us, they don’t- they can’t afford to take risks. They’re not sure when to take Social Security. They don’t know how taxes are going to impact them. They don’t know how unplanned emergencies and expenses are going to impact them. Let us show you how to build that certainty into your plan. And look, these are real concerns that everyone has, and that’s exactly why you need this book, so you have the security, the clarity, the confidence, the control, and with Right Track Your Retirement, you’re going to learn how to take that control. So let us help you get organized. Come in, let’s roll up our sleeves. Let’s identify any problems that are in your plan, and we’ll show you some solutions on how to fix it. There’s no pressure at our office, there’s no judgment, it’s just education and support to help you get on the right track, so call us now or go to RightTrackYourRetirement.com claim a free copy of the book, schedule your appointment right there, or our team is standing by to take your call right now and get you a copy of the book. And also get you scheduled to come in. And I’ll let Steve tell you the phone number and how you can do that.
Steve 26:19
Thanks, Brian. 800-656-8616 is the number. And you know, really, retirement is nothing but the certainty of uncertainty, and that’s what you just talked about. And if you’d like to get that cleared up, now is the time to call Brian. 800-656-8616, 800-656-8616 make that call today. While you’re thinking of it, we’re going to take a quick break. We’re coming right back. We’ve got more On the Money with Secure Money right after this with Brian Quaranta, listeners
Brian Quaranta 26:45
Listeners with questions, advisors with answers. That and more, when we come right back with On the Money with Secure Money.
Announcer 27:01
And now On the Money with Secure Money.
Steve 27:08
We’re back On the Money with Secure Money. Brian Quaranta here, Brian, of course, author of the book called Right Track Your Retirement. You can get your copy as- boy, join the crowd. You’re sending out those things faster than you can imagine.
Brian Quaranta 27:20
You’re darn right we are.
Steve 27:23
And you keep watching that postage go ching, ching, ching, we don’t care, Brian, because you want folks to get the book.
Brian Quaranta 27:29
Well, you know, Steve, and you bring up a great point. You bring up a great point, we actually pay the postage. I mean, it’s literally a free book. No, it’s not cheap. I mean, you know, I you know, I think it’s like $10 all in between printing the book and paying for the postage. So, I mean, when I say it’s free, it’s free, we are sending you a hard copy of that book. And, you know, and it’s because I’m so passionate about people getting this information, because I want to help them reduce that- that stress and that uncertainty that they have when they think about retirement. And I want to give people a better understanding of what retirement planning really is. And I promise you, it’s not what you’ve been doing to grow your money. It’s not how you’ve been investing your 401(k) retirement is completely different than what you were doing when you were growing your money during what we call the accumulation phase. And there’s five key areas you must absolutely have a plan for. Number one and most importantly, is your income. Number two is your tax strategy. Three is your investments. Four is your health care, and five is your estate plan, and you’ve got to have a plan for all five of those. Or folks, I hate to tell you, you just don’t have a retirement plan.
Steve 28:49
And it’s yours to- really- Yours for the asking. You’re not charging anybody to come on in, sit down and have the first conversation. 800-656-8616 but I mean, that’s really what it takes. Just come on in and understand where you- where you’re coming from, and how you want to get us to help get us from A to B and Z.
Brian Quaranta 29:05
That’s right. And look, I mean, if you’re like most of the people that we’re talking with, and you know, you know that you can’t afford, you have the concerns of risk. And you say, Look, I can’t afford to take risk right now because I don’t have the time to recover. You’re not sure when to take your Social Security, or if you’re getting a pension, you’re not sure what pension option to take. You don’t know how the taxes are going to impact you. You’re fearful of running out of money. These are all the things we’re going to help you answer and we help you get organized. Look, you’re going to bring in that POS: that stands for Pile of Stuff, and we’re going to roll up our sleeves, and we’re going to identify what potential problems you have. Oh, by the way, if you’re already doing a great job and you’re already on the right track, there is nothing more my team loves to tell you, then, great job. Keep doing what you’re doing. You’re on the right track. You are doing the right things. You got a good advisor working for you. Keep working with them. And that’s the beauty of working with a firm like Secure Money, because we don’t need- need to acquire you as a client. We’ve got, we have a large client base as it is, so we want to help those that actually we can have an impact on. And I mean that sincerely, we’re not going to transact business with you just to transact business with you to make money. That’s not how we operate. We’re fortunate to be in a position to where we can take those who, number one, want the help, and number two, need the help.
Steve 30:27
Fantastic. 800-656-8616 Brian, and let’s jump into a couple of questions here. I’ve got a 52-year-old with 300,000 in their 401(k), they want to retire early, so they’re thinking about using a series of substantially equal periodic payments or SEP to avoid early withdrawal penalties. What are the benefits and the pitfalls of SEP? We’ve talked about this before. It’s an interesting question for sure.
Brian Quaranta 30:51
Well, they’re also referring to something called a 72T which is, which is basically where you take substantially equal periodic payments to avoid the 10% early withdrawal penalty. And, yeah, we’ve done these a number of times for people that want to retire early. So, you- you know, and that’s all about, how do I exit my employer, and how do I get access to my money prior to age 59 and a half without, you know, incurring that 10% penalty. And you do it through the 72T or substantially equal periodic payments. So, it is a strategy that we believe in, but it’s got to be done, right, or the IRS will come calling.
Steve 31:31
Hey, we got time for another one here. Let’s go to a retiree who receives Social Security and pension income. They want to know if they should continue to withhold federal taxes to avoid a large tax bill. What is the best way to estimate their withholding needs?
Brian Quaranta 31:44
Yeah. Well, I mean, you know, a general estimate is, especially in the first year, is to withhold 10 to 20% right? So, no more than 20 for most people. But you know, if you want to get it right, the best thing is to really have a financial planner look at the income sources that you’re going to have and figure out what your estimated bill is, estimated tax bill is going to be, so you can actually get that right. But I like the federal taxes being taken out. We have lots of clients that do their own taxes. They’re smart individuals, and they say, the heck with that, I’m not giving the government a, you know, a free loan so they don’t have any taxes withdrawn, but that’s not a good idea for most.
Steve 32:24
Absolutely. Well, I can’t believe we’re out of time, Brian, but let’s remind folks one more time
Brian Quaranta 32:29
That’s right, Steve, and here’s the truth, the biggest threat to your retirement is uncertainty, and what I want to give you is certainty, and that’s exactly what we’re doing at Secure Money Advisors every day, and that’s why I wrote the book. Right Track Your Retirement. So, if you want certainty, if you want peace of mind, if you want confidence, if you want control back, go to RightTrackYourRetirement.com and get a copy of my book so that you can finally feel confident that you can stay retired, and, more importantly, get retired, because that’s the first step. First step is getting retired. So go to RightTrackYourRetirement.com. Get a copy of the book, or I’ll let Steve tell you how you can call, because our team is standing by to take your calls and get you scheduled to come in.
Steve 33:05
800-656-8616 give us a call. 800-656-8616, 800-656-8616 really a fun show today. Brian covered a lot of ground, got some good information.
Brian Quaranta 33:16
We sure did, Steve and folks, thanks again for joining us, and remember, if you want that clarity and confidence, go to RightTrackYourRetirement.com and we’ll see you again next week with On the Money with Secure Money.
Announcer 33:27
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Outro 35:27
Coach P Radio
