On this week’s episode of On the Money with Secure Money, Brian Quaranta discusses how to get ready for retirement when you’re over the age of 60.
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Radio Show Transcript
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. As 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 and 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.
Brian Quaranta 00:39
Is it ever too late to plan for retirement? The short answer is no. When we come back some strategies to help you get ready for retirement. If you’re over 60, we come right back with on the money with secure money.
And now on the money.
Brian Quaranta 00:54
Any good retirement plans starts with the foundation,
asset protection, tax reduction, holistic planning
Brian Quaranta 01:01
These are the things that start to move you towards having a retirement plan.
Retirement doesn’t have to be complicated.
Brian Quaranta 01:08
You think that’s the difficult part. That’s just getting started.
And now On the Money with Secure Money.
Hey, welcome, everybody. This is On the Money with the Secure Money. Brian Quaranta, of course is here. I’m consumer advocate Steve, Brian is President CEO of secure money advisors. He is well an independent fiduciary got a lot of experience more than 20 years for a guy that young it seems impossible. Hi, Brian, how are you?
Brian Quaranta 01:38
As soon as I graduated college, I got right into the financial industry of going on 24 years in this industry. So, it’s a long time to spend in an industry you learn a lot. And you know, the one thing you learn is that the good thing about retirement planning is until the day you retire, you can prepare an optimize, based on the current state of the economy for potentially greater returns, even if you’re 60. It’s never too late to start. And this is a question that I deal with all the time. Matter of fact, I had some folks come in last week, he was a driver for a major carrier kind of like a FedEx or an airborne Express or something along those lines. And, and that company had folded and that he tried to get involved with some other companies and it didn’t go well. And it’s his wife was working for one of the major airlines here in Pittsburgh and that airline filed for bankruptcy. I mean, they got hit in every direction you could imagine. They tried a lot of different things along the way to accumulate wealth, because they had so much trouble with employment. And they tried flipping houses, they tried vending machine companies, they and they did just about everything. And you know, here, they’re at my office, and they say, you know, we just haven’t really had a whole lot of luck in employment. And so far, that we’re really behind on savings. Now. It’s never too late. I mean, fortunately, in their case, they both qualify for Social Security, they’re both approaching their full retirement age, they probably have about $100,000 or so saved so far. But I was very quickly able to show them a way that by still working, but at the same time turning on their social security, how within a very short time period, and when I say short time period, about six to seven years, you know, with roughly about a five and a half percent rate of return on the investments, if they save 100% of their social security checks. By the time that they retire in the next six to seven years. They could have 708, seven to $800,000 saved. So again, yeah, yeah, it’s it is never too late, you know, what a breath of fresh air that story is people need to realize that, you know, if you haven’t had the opportunity to save, don’t get down in yourself. There’s always a way and you know, I’ve learned in my life, as I think a lot of people have, is that, you know, having a process and having a system matters. One of the things we do really well at secure money advisors has given people a system, a system to accumulate wealth, a system to distribute their wealth. And I think that’s really where we differentiate ourselves from a lot of other financial planning firms. A lot of firms like to talk about how to invest the money. We’d like to talk about strategies of how to distribute the money. So, when I say distribute, what I’m talking about is there’s going to be a day that comes when you want to stop working. And when you stop working, the paychecks going to stop, but bills, taxes and the money you need to do all the fun things you want to do. That’s not going to stop and so you’re going to need income and we teach people how to get their money to start working for them. How to get that money to start to pay them a paycheck every single month and do it in a way that they don’t risk running out of money, nor do they have to have the fear and uncertainty of the market volatility because we talk about and teach them through strategies how to mitigate that risk. So, there’s always a way and behind a way is a process or a system. And that goes on the reverse side to the story of the couple that I just told you, they needed a system for accumulation, and they needed a system that was going to accumulate very quickly, we have systems to help people pay debt down when they get close to retirement. So, you name it, if there is a financial challenge, we’re going to have a system and best practices on how to handle that. And I’m telling you folks, you know, as well as I do that, when it comes to making progress in anything in your life, you have to have a system, a written black and white system, that, you know, if I do this, I’m going to get this result.
Again. I mean, that was just a great story, Brian, I love the outcome there. Because you make a point, it isn’t too late. We all make mistakes, we all sort of you no stumble sometimes. But it’s so good to know that you’re there, you’re looking at things differently than most advisors do, clearly. And, you know, you understand what it’s going to take to get there. And the fact that you’re encouraging us and believing in us that we can actually do it. Well, then I mean, good for you.
Brian Quaranta 06:13
Yes. And the thing is, is that, you know, a lot of the strategies and techniques people use during their savings years, also are not the same strategies and techniques that you use during your retirement years. And I think one of the big mistakes people make is they think that the same thing they’ve been doing, you know, while they’re accumulating money is the same thing they’re going to do when they start to distribute or generate income from their money. And this is where people get themselves into a little bit of trouble. And there’s two, two factors that get people in trouble, something called the 4% withdrawal rule, and something else called sequencing risk. So, knowing what strategies to use in your retirement years is very, very important. Because, yes, you know, everybody’s heard of diversifying your portfolio. But when we talk about diversification here, we’re really talking about diversification. Completely different than most firms. Most people understand diversification, as, you know, having a diverse portfolio of stocks, bonds, or mutual funds in different asset classes, maybe some large cap, mid cap, small cap, you know, technology International. That’s what people think of when they think of diversification. When we talk about diversification, we talk about it in three buckets, bank money, pension, money, risk money, and when we come back, I’m going to talk to you more about why having buckets in retirement is critical to making sure that you have a successful retirement, one that gives you a peace of mind and security. So, you know, we keep a few openings on our calendar each week for our listeners, and we’d love to hear from the folks who have seen recent market volatility and are concerned about it. You have the opportunity right now for the next 10 callers to sit down with a fiduciary financial advisor who can guide you and possibly help you improve your situation. So again, for the next 10 callers, we will perform a complimentary easy to understand financial review of your portfolio. Our right track retirement review will truly help you indicate whether or not you’re in need of a full-blown financial plan. We’ll talk about how to generate income, reduced taxes, how to properly invest your money, what to do during a health event, should a health event take place. And of course when the good Lord decides to take you home, how to properly positioned for that so that the IRS doesn’t become your largest beneficiary and your loved ones do. We can also help you customize an income plan, utilizing proven strategies that literally can turbo charge your income. So again, for the next 10 callers it’s a comprehensive financial review. We’re going to be providing complimentary with no obligation
800-656-8616 You heard Brian 10 callers right now get that comprehensive financial review, you’ll see where you are today. But what’s important is you walk out with that roadmap that can help get you to where you need to be when it comes to retirement. 800-656-8616 800-656-8616 The
Brian Quaranta 09:03
old saying the more things change the more they stay the same is not necessarily true when it comes to retirement planning. When we come back some commonsense facts about retirement that we need to be aware of when we come right back on the money with secure money
do you ever feel like you’re fighting for financial knowledge? Don’t let bad advice be a punch in the gut your retirement to take advantage of a complimentary no cost no obligation consultation with a local trusted financial coach. Call Brian Quaranta host of retirement your radio 800-656-8616 or text Brian Q to 800-656-8616 we’ve made it easy for you to take advantage of this fantastic offer. All you have to do is call or text Brian Q to 800-656-8616
And we are back On the Money with Secure Money with Brian Quaranta, I’m consumer advocate, Steve. Brien is the President, CEO of secure money Advisors, a fiduciary independent advisor. And this is something this topic, Brian, I think is a good one. Because you use the two words, I like common sense. And I think that that is sorely lacking in America today.
Brian Quaranta 10:23
This is not your father’s retirement, that’s for sure. All right, well said. Yeah. You know, the days of the 40-year career with the same company are gone. Although, last week, I happen to be fortunate to retire three people last week that have been with their companies, for two of them were over 40 years, and one was almost 40 years, that’s, but that’s unheard of, in many cases. You know, not only are the 40-year careers gone, but so are the pensions that the companies used to provide. And the first truth of retirement is that, you know, we’re all now responsible for our own finances, this is what I call the yo-yo retirement, you’re on your own, you need to figure out on your own, you’re on your own. So, think about the monumental task that’s been laid out in front of the American public here when it comes to retirement planning. So, you know, you go back 3040 years ago was simple. As a matter of fact, that’s why, you know, 3040 years ago, people had a lot of retirement parties to go to sometimes you had as many retirement parties to go to as you did graduations or weddings. You don’t see that very often anymore. And that’s because the pensions are gone. See, when we had a country that, you know, the corporations were giving pensions after, you know, 30 years of employment. You know, an employee knew exactly when the retirement date was going to be, they knew that once they hit 30 years, they were going to get X amount of money every single month from the company. And if they were married, they could even choose an option that if they die, their spouse would continue to get that same amount. So, things were easy. And then on top of it, they got a Social Security check. So, when people retired, they had a healthy amount of Social Security coming in every single month, and they had a healthy pension check coming in. So that was enough for people to maintain their standard of living. And if they did save any extra money, they did not even need to take that money and put it in the stock market. A lot of people would go down to the local bank, and they would buy a CD paying 10 or 12%. So, you know, my grandfather did this. My grandfather had a remember Kirby vacuum. Sure, absolutely. So. So my grandfather had a repair shop. And that’s what he did with the money that he saved, he would take it down to the bank, and he would buy CDs. I think when you were buying CDs, if I can remember, you know, going back probably 40 years ago, I can remember going to the bank with him. And I think every time you open a CD, he would get I think at the time the bank was given like Tupperware or pots and pans or something.
I once got a drill
Brian Quaranta 13:04
Did you really?
Brian Quaranta 13:06
that’s a new one. I’ve never heard of a drill before. That’s a pretty good one. But yeah, so the, you know, the banks, you know, would give away all kinds of stuff to get our money. Now, the banks don’t want our money. And that’s very obvious because I had a lady come to my office. She’s going on our 42nd year, Steve of retirement, can you believe that she’s retired for 42 years, 42 years in retirement. She’s 96 years old, she drove to my office, and amazing woman. And never, she was a schoolteacher. And she has never, ever put any of her money ever in the stock market before. Her money has always been at her local bank. And she has always bought CDs at our local bank. She’d had roughly about $490,000 That was at the bank. And she uses that money every single year to pay taxes, help offset some of our bills, give gifts to her grandkids. And this is the first time she’s ever visited a financial advisor. And she was referred by a client of mine. And the reason she came in is because on her $490,000 Steve, she was earning $491 a year in interest.
Brian Quaranta 14:31
And that’s not a good wow.
Brian Quaranta 14:34
That’s not a good wow. But this is what’s happening. So, think about her situation now. You know, you know she Yes, she’s in her you know, mid 90s so that this makes her situation a little bit different but because of life expectancy, but you know, if you just think about the fundamentals here, she’s getting $491,000 a year off a 490,000. And we have roughly inflation at seven and a half percent. I mean, think About the purchasing power being lost on that money, day after day after day after day. And so, you know, we just don’t have the luxury of going down to the bank anymore and buying the CDs. So, people are forced to put their money in the market and look what’s happening to the market right now. But you know, you can protect your money. I mean, there’s great accounts out there that I personally use myself. Some people may get heartburn when I say this word, but they are called fixed annuities. Fixed annuities will pay you anywhere from three to three and a half percent and a guarantee just like a bank CD would. The only differences are with an insurance company. So, you want to make sure that the insurance companies a rated, which is very easy to find. But you know, I showed her if she just took that $490,000 and bought a bought a fixed annuity. And it was short term, it was only a five-year annuity. The difference was that she was able to take all of her money out of it. You know, had she gotten sick or gone into a nursing home, she could also take out 10% A year during the five-year period and a CD, they don’t let you take out anything. But the bigger thing was that she went from $491 a month or a year in interest to over $16,000 matter and interest, right should give you a big kiss. Yeah, you’re talking in the 1000s and 1000s of percents better return than what she was currently getting. But, you know, these are the things that people need to be made aware of and secure money advisors. As a fiduciary firm, and a full-service firm. Our job is to help you engineer what’s appropriate for you. And this is why every week for pokes we keep a few openings on our calendar each week for our listeners, and we’d love to hear from you. You have an opportunity right now to sit down and have a conversation with a fiduciary advisor who can guide you and possibly help you improve your situation. So, for the next 10 callers who call in right now we’re going to perform a complimentary no obligation, right track retirement review, that’s going to indicate whether or not you’re in need of a comprehensive financial plan will show you how to properly build your income. We’ll show you how to mitigate taxes. We’ll show you how to properly invest depending on what the purpose of your money is. We’ll show you how to protect yourself from a health event. And more importantly, when the good Lord decides to take you home, we want to make sure with your estate planning that the money goes to your loved ones and not the IRS or the state of Pennsylvania. So again, for the next 10 callers who call in right now. That’s a complimentary no obligation right track retirement review. Give us a call today.
800-656-8616 you heard Brian 10 callers get the comprehensive financial review. You’ll see where you are today. Yes, of course. But you are going to get that roadmap that will help get you to where you need to be 800-656-8616 again, 800-656-8616. We do need to take another quick break. But we’re coming back though we’ve got a lots more right here on the money with secure money and Brian Quaranta right after this.
He’s letting the clock run out on his social security at age 70 For maximum benefits. And here comes the Roth conversion. He’s got some outstanding coaching with that lifetime income plan. He’s created his own pension as well. And it looks like he’s going to go all the way.
Play your best retirement game call Brian Q 800-656-8616 or text Brian Q to 800-656-8616. Call or text Brian Q to 800-656-8616.
We’re back on the money with secure money. Brian Quaranta here I’m consumer advocate Steve, of course, Brian is President and CEO of Secure Money Advisors, where you have an incredible team of people and I’ve had the pleasure to get to know some of them over time. And again, you just do a heck of a job in terms of building, building a team that really matters in that and more importantly, that they care.
Brian Quaranta 19:04
Yeah, well, I appreciate you saying that. Because uh, you know, it’s the feedback that I get a lot from people that do seek our services out. They’ll always say, you know, your team is so welcoming, everybody is so professional, they truly care. And look, we know that you know, coming and visiting a financial office can be a very intimidating process. And maybe you’ve been a listener of the show for a long time. And maybe you haven’t scheduled an appointment yet because you’re intimidated with what it might be like when you walk through the door. Let me assure you that everybody at secure money advisors is truly here to help. Number one, we are problem solvers. We are problem identifiers, and we are problem solvers. We are not here to judge you on what you’ve done. We’re not here to judge you on how much money you have saved or haven’t saved. We’re not there to criticize anything. We’re there to truly understand where you’re at, and where you need to go. So, coming in and meeting with us should be a pleasant experience. You know, we’re not, we’re not here to sell anything. We are fiduciaries, which means that we’re held to a high standard of doing what’s in our client’s best interest. We’re not commissioned based with the money that we manage. So that means that, you know, we have to actually perform in order for us to make a living. And that’s a good thing, because we have skin in the game with our clients, you know, if the markets aren’t going well, we’re feeling the pain just as much as they are so. But at the end of the day, the one thing that I’m very proud of is a team of people that we have put together here. And, you know, if you have been fortunate to be a client of secure money advisors, I thank you for all the kind words that you’ve shared with us over the years. And all we do is continue to work as hard as we can to get better and better. And most importantly, you know, our job is to provide world class service, because anybody can talk to you about managing your money. The question is, are you actually going to get the service that you deserve throughout the years, and our servicing model is very unique. Our clients get access to unlimited financial planning appointments throughout the course of the year, we truly become their financial sounding board, we become their chief financial officer. And that’s great because, you know, if they’re looking to get a new job, leave a job, retire, whether they’re dealing with a death, looking to buy a home, sell a home, buy a car or lease a car, it’s nice to know that you can pick up the phone and call a team of people that can help you make an informed decision financially. So, it’s one thing I’m very proud of it secure money advisors to team of people, if you haven’t gone out to our website yet. WW at secure money advisors.com. Check out our team page. You can see everybody that’s there. And but let’s get to some questions. A whole lot of time. Yeah,
no, an 800-656-8616. Just want to sneak that in for you. William is up first. He says I’m 55 I plan to switch to a new and likely less lucrative career; I would need to tap quite a bit of my retirement money to supplement my new venture. How can I get the highest payout and avoid that? 10%? early withdrawal penalty? Yeah, well,
Brian Quaranta 22:10
yeah, let’s see. So, you know, if he’s 55, I’m assuming if he’s working, maybe he’s got a 401 K, you know, the 401k will allow you to do what they call the 55 rules. So, you know, if he kept the money in the 401k, he would have access to it as early as age 55. And he could avoid the 10% penalty. You know, the mistake that people do make is that if they do need cash flow, and they’re under the age of 59 and a half, and they were they want to retire early. If they roll that money out to an IRA, they lose the ability to access that money without incurring the 10% penalty. But you know, getting the highest payout. I mean, that’s tough. I mean, what’s the, you know, what’s the balance of the account? What what, what will those payouts do to the balance over time? There’s a lot of information that bill would have to give us here in order to get a really great answer, but, but I will say just from basic fundamentals, for those of you that are listening, if you do plan on retiring early, and you have a 401k Be very careful that you don’t roll that to an IRA, especially if you’re going to need cash flow, because you’ll disqualify yourself from being able to use the 55 rule where you can take money out early
WM 800-656-8616. If you want to reach out and talk to Brian, Eric has a question. He says my wife and I filed taxes jointly, we’re both approaching 50 years old and currently have a combined 750,000 In traditional 401 K money. Both of us are still working and have a taxable income of 150,000. I want to switch future contributions from my traditional 401 K to a Roth 401. K, we currently give 35,000 to our 401 K’s if I switch to a Roth 401 K that will push us to the 24% tax bracket. My goal is to have some untaxed income to fade our tax burden in retirement. Is this a bad idea?
Brian Quaranta 24:03
Yeah, that’s a good question. What he’s talking about here is creating a tax-free bucket. So, if he wants to start contributing to his Roth portion of his 401k, he’s not going to get the tax deduction. So, by not taking the tax deduction, he has to claim that income which could push them in what he’s saying into a 24% tax bracket, I’m okay with that. I personally do that stuff myself. Because I truly believe that I would rather pay taxes on the seed versus the harvest. Right? You know, in his case, if he’s going to put away 35,000 a year, maybe the time he retires, that Roth portion of his buckets worth four or $500,000, but it’s all tax free. And by the way, he doesn’t have to take RMDs then when he passes on to his family members, they don’t have to pay taxes. So, it’s a really great thing all the way around. And of course, in retirement when you’re looking to generate income. It’s always nice to have a bucket of money that is also tax free when you pull money out. So, folks, this is exactly what we do here at secure money advisors. the right track retirement review is what we’re talking about today. If you haven’t taken advantage of a complimentary right track retirement review, please do so now for the next 10 callers who call in right now we are going to give you a complimentary review. Now I’ve seen other people charge up to $1,000 or more for these types of reviews, we are going to do a complimentary it truly is going to take the mystery out of financial planning is going to show you where you are where you need to go. It’s going to give you turn by turn directions of what to do and how to create the best retirement that’s going to give you the most peace of mind clarity in retirement. So, for next 10 callers it’s a complimentary right track retirement review, pick up the phone and schedule with us today.
800-656-8616 That’s how you get the ball rolling. Just make that call to Brian, come on in, sit down, get a financial roadmap put together 10 callers right now we’ll get that comprehensive financial review, you’ll see where you are today. But more importantly, you’re going to have a roadmap that’ll help get you where you need to be when it comes to retirement. So, in short, you got nothing to lose 10 collars. 800-656-8616 again, 800-656-8616 Brian, as always, a pleasure to have these conversations with you. I love learning things and you teach us every week. Steve, great
Brian Quaranta 26:06
to see you again. Folks. We’ll see you again next week have a great week.
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 use of drip information. Discuss exposure to ideas and financial vehicles should not be considered investment advice or recommendations, 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 and guaranteed income stream for only two fixed insurance products did 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