Financial Safari, 5/14

The Financial Safari
Sunday, May 14th

The Financial Safari, for May 14.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Take talk with you anywhere we'd be on the news talk thirteen 70 am listening. Keep up with the latest breaking news and our search for top thirteen seven. Week's episode of the financial safari is brought to you try to build Capriati and figures tell. And insurance that I Cristiano. Information provided is for certain purposes only and does not constitute investment tax or legal advice information has been obtained from sources that are deemed to be rely. What better accuracy and completeness cannot be guaranteed either Peter. Including usage of information discussed always consult with a qualified investment legal or tax professional before taking any action. On today's show we heard for years ago. We're percent rule and some retirees are still building new plants around but it may not be used foolproof as you may think that much more coming up for the financial safari. Hi this is coach speak and if you've got questions and how to properly structured your assets until retirement income. You're in the right place and welcome to the financial safari. Now Phil I have an article from USA today in front of me talking about a new. Rule of thumb. For seat spending in retirement. Now since 1994. Financial advisors had been talking about the four per cent role perhaps we should start off by talking about. What the 4% rule actually said. The idea behind the 4% rule was that let's assume you had a nest egg in that nest egg you can pick any number really. Let's say and then their stake was worth a million dollars and as long as you earned 4% are actually received 4% in income. Each and every year that that should last you through you and your spouse's retirement years without having to worry about two running out of money. I love when they come up with these assets plant percentages. For all individuals to follow every single individual spending patterns are different. Every single individual's income needs are different some have pensions some don't. Some have large Social Security some have modest Social Security. So when we look at just 4% rule you can tell this key in this in this rule was thought of but not extensively thought out that's in my professional opinion so. They're starting this says there's 4% rule really is gone the way side not sure who is ever really does applicable rules to begin with. Well certainly there's something to be said for a rule of Don giving us a general guideline Ted as sort of I. It put us on the right path but once you're headed down that path you need to stay on that path he can't just say. Go east and just expect that you're gonna stay on. On a complicated swerving path that goes generally to the east. There's a lot of things that go into as he said. How much money you can take out of her retirement account and have its it support you through your entire retirement certainly. One thing that comes to mind is how long your retirement is going to be folks are living longer which means that pulling. 4%. And back in 1994 is a very different proposition than pulling 4% national. Right exactly and what about the situation where an individual may not have a long term care. And maybe a spouse gets sick and needs nursing home care or full time nursing here at home or comes down with a alzheimer's. Or in our situation may be a a family member or get C stroke it needs continuous care because. The because a spouse's tool to physically take in care that person will now we have situations like that without proper long term care coverages. Regardless of what your social security and pension maybe. This 4% rule becomes non applicable also. Everyone's situation is different every one income needs are different what about when we take a look at inflation. I mean sure inflation I don't mean mean number that we we get to. From a certain authorities that says tell us you know the dead base whether or so security colas or garner beyond talking about the actual inflation that take into account food fuel. The groceries that we died they gasoline that we purchase of the electric that we pay for well we actually take a look at that and then we can throw under the rear Bowman their two. How certain their taxes going to. 15% 25%. They Wear is high is 708090%. Back in the sixties and and back in the tour money so when you take a look at taxation we don't know how much of our income grew and have to pay back to the government to subsidize the debt that do we are messing so he must be very cautious at least we we talk with clients we like to tell them. Let's look at each individual's income plan in a specific fashion I wanna take a look at each individual. And custom designed inning come plan that it's their families. Needs their families our objectives. And and their families wants and desires. So let's talk about this new rule of thumb from USA today since. It sounds like rules of thumb are only as good as the paper that they're printed on perhaps. So this comes from Evan in place a fellow of the society of actuaries. And his recommendation is instead of saying a flat 4% withdrawal rate. He says a better estimate is your each divided by 820. So he's saying that at age seventy you could safely spend 3.5 percent and it's not until folks turn eighty that they could safely spent 4% of their nest egg. But I'd and I'm starting to see the problem security at that means that at each knot indeed you'd only be spending. Four point 5% of your nest egg and once you're getting up into the ninety range age you're looking at more health care costs right. Well you if I had a conversation whenever I see Evan. What about the individual that's subsidizing their grandchildren's. College. What is out to see what about the individual that's helping a child it hasn't been able to become self sufficient cash again and then we want to take a look and and and everyone we wanna look at each individual now like we'll thumbs don't get me wrong and and I I don't mean to be coming down hard on M and or where these separate or this particular article what I am saying it's important for each individual to individually plan out there retire meaning gum goal. And plan down based on the air specific needs and our objectives there are specific Social Security breach there are specific pension benefit or lack thereof they are specific IRA or maybe other assets that they may have taken a look at the individual's overall income goals do they have long term care don't they have long term care what provisions have they made it they don't have long term care to pay for these costs maybe they may be considering living with a child of course most of our clients come dread that but but the point but the point being down. I like quit and finished trying to do here but really M and I it's quite obvious she probably might not to spend that much time actually in there. People office working with hundreds and hundreds and send some cases thousands of clients individual retirement plans because. The rule of thumb is you really only as good as the individual you're planning to use it on well. Absolutely and today is the date to give failed capriati's president of senior tax and insurance advisors PL LC a cull. And yet on his calendar sit down for that initial no cost consultation and get your retirement plan built. Get that the analysis that income analysis and that tax analysis that can be so important to building a successful. Retirement. Heading into the future heading for a renewed their retirement date on through that entire thirty plus years that you could be looking that. That number is 808511636. Again that's 800. 8511636. And felt this is a perfect opportunity for folks to give you Collison that right. Yes certainly has folks if you have any questions are really have a complete -- incomplete planet would likely in the second set of eyes -- give us a call call can be covered her office she's our office administrator. One of the best of one of the finest civil and I've worked with many in my lifetime and she is second to none shields set up big complimentary consultation and we'll all be happy to sit down and talk about your plan talk about taxes so we just finished a great tax season enduring this time would be an excellent opportunity. For you to take advantage of our complimentary consultation. Appointment so we have set aside give candy call and will be happy to accommodate you. Also if you're in need Cedar Park Georgetown round rock area go on our website. Take a look at our calendar we have retirement income planning workshop Cesar educational workshops at all three libraries. We hope to month we hold them twelve months out of the year gives candy close shall update you on the times. Or if you want a personal consultation will be able to accommodate you with that as well. That number is 808511636. Again 808511636. To get your individualized. Customized. And complementary. Initial consultation. Today is the date to get on the calendar today is the day to pick up the phone and give Phil Caprio idea Kyle. At 80851. 1636. Once more before we go to break 800. 8511636. And Canada. We don't need to be consistently keeping up with the chances for that's never good idea but also never hurts to get a better idea on where you stand. And where do you stand and have issue retirement plans stack up against the average pre retiree. That much smooth return to more financial so far. We know Austin traffic can via. Challenge. These continue with time saver traffic. Mornings and afternoons on top thirteen seven deep the right choice. It fits Simmons here back Whitfield capriati's I've seen your tax and insurance advisors PL OC. Now Phil nobody wants to feel like they're alone and I think it's important. For our listeners to know that if you're concerned that you may have fallen behind in your plan for retirement. There are a lot of folks out there in the same boat right. There's certainly are what we normally fine he even if you started late on putting your retirement plan together those who plan very rarely fail those who fail to plan very rarely succeed. So begin it really comes down to really put year ducks in a row so to speak and down and put and not putting all your excellent one best that we use another cliche they're so. What I like to do with clients is again everyone's situation is different so we want to take a look at what you were specific situations. In our what you're specific needs are both for income and maybe you also have a legacy planning each is that's the case we may wanna take a look at that as well there are few things that many folks do not consider when they put together they retirement income plan number one. Is the cost of health care. Many folks especially for those of us who have been blessed with good health. In our baby boomers well we we believe that our bodies shall never Wear out terrible always stay up to the fact of the matter is when you put together retirement income plan if you do not have provisions set aside whether European insurance policy. Now that's a very important we see this a lot where if folks I will planned for their retirement but. It aren't thinking a bit too optimistically perhaps about what this situation is going to look like twenty years down the line. When they may need to. I long term care win that one of the spouses may have passed away. A lot of times it's a difficult conversation to have if we don't wanna think about things going wrong. Especially cents. It or we don't have time in our the Big Easy lives Ted both of live fully in the present and plan fully for the future. It's too much to have all upping your head at wants. Which is why it's so crucial to have that voice of reason that second set of eyes looking out for you. That fiduciary. Whose job it is to make sure that you are on the best path possible. To put you on the best track possible he using the best strategies using the best opportunities. Which you were unique situation in mind and today is the date to give someone like that a cult you can reach felt capriati's sit down for that initial. No cost consultation. No obligation whatsoever. Just sit down and get your questions answered. The number to call 800. 8511636. Again that's 80851. 1636. Now is speaking of health care costs. According to a recent report by fidelity health care will cost the average retired couple 260000. Dollars. And who went were looking at at how much and folks are gonna be getting. In Medicare benefits Medicare dot org projects that the average Medicare beneficiary. Will need to pay almost. He thousand dollars out of their pocket this year alone these are. Large numbers to be concerned with so how to we planned for this sort of thing. Well you know it's one of those things where it never happens to me it always happens to the other person number two shares some little something in our lives so. My way tonight what I have been lost they're just wonderful folks. But hey you know inevitably this happened to my grandparents as well there's still active ranchers and and down my mother in law had a little incident with them with a sheep OK it was election little Levy lamps. And make a long story short she got knocked over by the lamp. Broker femur and now this can happen anyone I've seen folks actually walked down one step trip and fall and break a hip or break it seemed her. But to the point and I'm trying to make is watchers in the hospital something else that happened at a cost a stroke but they teach her stay to reach him recuperation. Toast lasted well over a hundred days now you're many care if you have supplemental insurance they normally won't cover skilled care for the first hundred days whether it's skilled care intermediate care or custodial care unless you have long term care coverage and I'm not trying to push them out there and just saying as long as you have some sort of entered. Whether it's sell insurance or not. You can expect to start to spend down that Stanley nest day now two years ago what they used to do is they used to slip the family assets to liquid assets in half. If you had a million dollars. One spouse could only lose a half a million the other half a million would stay with the surviving spouse that is no longer true back in 2008 they changed that you can literally spend down to literally your last 5800000. Dollars a point and I'm trying to make not to scare you but understand. That. It's important to make provisions and that when I looked at this fidelity health care cost average I can relate to that with my own family with my own mom with my green parents with my mother in law and the point is once we hit our late 70s80s. And ninety's. Eventually. If we're not fortunate enough to have the good lord take us in our sleep an accident or medical condition may surface that may cause an extended period of rehabilitation. All of these services cost money. Unless you are literally award this state and possibly on Medicaid. You can expect to spend family resource is so it all comes down to. When a plan together you know my grandfather used to say to me prayed for the best. But plan for the worst and he was absolutely right so the queen is as part of the retirement income plan it's extremely important to make provisions for health care. For both an individual if you live by yourself or your divorce or or or widow. Or if you're married put together a plan that helps accommodate. And prevents suspend down of assets in any event. An unfortunate situation like this occurs in your family. That number to call to sit down with Phil Capriati. And the team at senior tax and insurance advisors PL LC is a country. 8511636. Again that's 800. 851. 1636. It is crucial that you know where you stand now and where you want to be heading into retirement. Finding that path from point a to point B can be easy putt. You need that voice of reason to be that second set of eyes to make it that easy. To show you the opportunities that are out there to show you the best strategies that you can be taking advantage out. The number to call eight contract. 8511636. To sit down for that initial no cost consultation. And feel this is a perfect opportunity for folks to give you Carl isn't that right. Yes we're fresh and taxis and fortunately. And we now do as I mentioned to retirement. Planning educational workshops at the local libraries feel free to attend one or you can call candy for complimentary consultation yes I said complimentary we will not charge you come in. Take advantage of our expertise our company resources in our time. Will be happy to sit down answered questions. Talk to you about your plan. And to make sure that your plan is just as you wanted to be make sure that that plank can actually get to. The distance that number is 800. 85116362. Reached field Capriati at senior tax and insurance advisors PL OC finally someone is offering retirees and pre retirees common sense and straight talk. Instead of financial double talk and a sales pitch. Pick up the phone today and give Phil a cult sit down for that initial no cost consultation. By calling 800. 8511636. Again that's eight country. 8511636. We do need to take a break while we return if you're concerned about where your retirement plans stands maybe it's time to consider your retirement more strategically it doesn't always make sense to retire early while we return we're gonna look at five specific benefits of holding Lawson stay tuned we'll be right back with more financial support. Yes. Again and stay up today all day long in the car on my way to work heading home listening online keeps you in touch will you work at top thirteen seventy dot com get a ring no talk thirteen seventy anywhere kind they're Greg's place. Chaos in the wake up and fly right on talk thirteen seventy. Built for some folks out there it's not an option when they retire sometimes your boss makes the choice for use sometimes you're just. Ready to get an affair and on two of the late curbs your route to our time with the grand kids. But for folks who have a choice about when to retire. It's worthwhile to be strategic. Sometimes it can be actually very beneficial to delay retirement right. Yeah he really is understand for the most part and when you're ready to retire you certainly are now looking to give the couple examples. Some folks in many of our clients they'll retire they'd just had enough of the job where they're at they're just tired of it well for what ever reason there's normally a number of variables that we look at it fiercely in tired of being sick and tired of the job you're maybe it's important issue retire from that particular establishment but started second career I have the number of folks that don't command my office and they say Phil I just can't take it anymore what should I do I really don't know what to do I can't stand my boss I can't stand the stress. And they'll they'll run through -- number of situations that they're dealing with and there are actually concerned for their now. In a situation like this and but they're still not ready for retirement when I say not ready they're not monetary financially ready for retirement so there are a number of different things you can do folks number one you can look at that second or third read in fourth career by something that may be you really enjoy doing. And you've always had a passion to do that maybe weren't able to do. So many this also had been busy raising our children we enjoy our job but we really in Julie working. We may wanna consider just saving longer remember when you do retire it is not mandatory. At this are optional. Where you actually retire. Its chances are most of us who retire. Will. At that point we wanna be financially set because that regular paycheck is no longer going to be coming in so we want to make sure that we take a careful look at that the loss of that regular paycheck how will that affect my retirement savings are returning to. But if I am forced to take Social Security. Earlier. Understand it if I collect early I'm going to receive an actuarial reduction. So for most of us we're full retirement at 66. If I filed for Social Security is 62 I'm winning at 75%. Of what I would normally collected a 66. Were 75% of my primary insurance amount that's determined misused at 6380%. What they've done and actually. If you receive day actuarial reduction in those of the youth common sense would dictate reduction means reduction in your Social Security those who want to continue working and wants to build delayed retirement critics of the Social Security has to build an additional. 8%. Of what your primary insurance amount would be every year you delay retirement after full retirement so at 67 you get a 108%. At 6816%. Up to seventy we receive a 132%. Of your primary insurance amount you may wanna continue working you may wanna continue. Catching up all contributions while the entire time you're growing your Social Security benefits to receive for youths and three your spouse. Three years 70s80s. And well well near nine these with the way we're living longer. It makes a lot of sense he and getting in there and they've been taking advantage of the time that you have to save for longer to take advantage of rules that are laid out in the Social Security system but also that there is taking advantage of health care if you have employer provided health care or. I've got 41 K company match. Well absolutely I mean nowadays we live well into our rat in late eighty's and ninety's in the many of us are going to be Centennial is so. I looked into I look at the home stretch so to speak is between sixty and seventy I'd work with folks who were 5859. And nearly ready for retirement and as they work to put a plan together for that last 510 years in their sixties. They put together a comprehensive their retirement plan that left them and their spouse and their beneficiaries quite comfortable through retirement. That the last ten years is extremely crucial for most of us our children are raised hopefully good lord willing their how to school. Many of our desk hopefully our mortgage is paid her close to being paid we can really focus that last five to ten years on saving for retirement. Putting together a comprehensive plan making sure the majority of retirement income he considers tax free retirement income because we cannot dictate what tax streets will be in the future so again it's all part of putting together this plan I want Social Security I want my own pension if I don't have attention. I wanna make sure the sort of my hiring provides you with tax free retirement income and and I wanna make sure that they. Survivorship plan for my spouse of unmarried and possibly a legacy client if I had children and grandchildren that I also want to consider in my retirement so the last ten years folks extremely important if you haven't made it by the time your sixty ball is not lost. It's kinds of what the plans together to save for your 70s80s and nineties and that the last ten years at home stretch 58 through seventy she is are really crucial par in much can be done during that last ten to twelve years in there I assuring. A comprehensive. Satisfying. Retirement income plan. Today is the day to pick up the phone today is the date to get on that right track for retirement the number to call 80851. 1636. To meet with failed capriati's I've seen your tax and insurance advisors PL OC. Make sure that you are on that right track make sure that you are taking advantage of all of the opportunities that are out there the ones that are going to work the best for your unique situation. We're talking about. Reasons why it might make sense to delaying retirement and one that we might be remiss to skip over. Is the idea. Indeed she meant to both mental engagement and physical engagement. The journal of epidemiology. And community health recently found that working for one extra year beyond age 65. Was associated with an 11%. Lower rate of mortality. Ice him not with jobs that folks dislike them. Well that's true that disliked and asked distress and that creates another issue the fact of the matter is. Busy hands are very important constructive hands my mom used to say and I online is the doubles workshops on absolutely right sometimes when folks retire they become sedentary we basically don't have we give them that routine of getting up going to work moving around motion always a body in motion extremely important so I believe their cash in. We especially when you work and career that you enjoy something that you receive satisfaction from. I think every year you delay retirement is saying no other year you added on to your life no if ands or buts about it I think I agree with this. Well if you aren't looking to get that process started to get on the right track to a successful retirement if you're looking to ensure that your plan is doing all it can for you. Or if you need to put a plan together to begin with. The number to call to reach filled Capriati at senior tax and insurance advisors LLC. Is 800. 851. 1636. Again that's 80851. 1636. And feel this is a perfect opportunity for folks to give you Collison that Ryan Church. Yes folks if he would we just finished tax season and I always tell candy for a listening audience and make sure she sets aside at least two or three complimentary appointment consultations here in our office if you give her call will be happy to sit down and talk to about Social Security planning we'll talk about retirement income planning many folks like to talk to us about. Tax reduction planning how to they move their money into a more tax free income plan which is also part of a comprehensive retirement plan give us a call key we will tell you should set an appointment you can speak with me or one of our qualified advisors here we have quite a few we'd be happy to help you and spent some time and our expertise with you so give the others across speak to candy and she will accommodate champ. That number is 808511636. Again 800. Eat 51. 1636. To meet with Phil Capriati and the team. Senior tax and insurance advisors PL LC get on the calendar today. Cindy you can take advantage of that tax analysis. Bet you analysis that income analysis that are also crucial to knowing where you stand and where you want to be moving forward the number to call 800. 851. 1636. If you're just getting your pen out here it is one more time 80851. 1636. When we come back we're gonna untangle some of the complexities of the Medicare system let's clear up some of the misconceptions. And that you can confidently make plans surrounding your medical future that much more coming up here on these. Financial so far. If every talk radio program for the same. What would be the point the Michael very shows a little bit different. We're gonna talk about politics we'll also talk about how great it is to live in Texas weekdays at five to seven on talk thirteen seven Michael Berry show. The right choice for breaking news first to talk thirteen seventy. The right choice. Feel we are looking at Medicare now a lot of our listeners have expressed confusion. About the forward different hearts of Medicare and what they each do so. And let's take a look at part 81. What is part eight to. So. Par today in Medicare it's available basically for everyone over 65. That qualifies for Social Security is part of the Social Security benefit plan it covers hospital care now it also covers limited coverage for skilled nursing care. Home health care and also for hospice hospice would be really the end of life care so for part of a dear typically no premiums subsidized by Social Security. It's an automatic if you qualify for Social Security qualify for Medicare part today should there's just an annual deductible. And -- in hospital deductible that's also a skilled nursing Kearney deductible Annie home health care deductible there are no deductibles for hospice they are this year. So who we know where. Looking at part A it sounds like it's covering it. Here once you've already headed to the I had treatment facility. Is heartened you looking at preventative care. Look at par today is covering that facility to look at part of the is covering the doctors and medical and surgical so we'll get through that part B covers and has been extended in recent years to cover preventative care a covers clinical research. So medical equipment like wheelchairs and walkers and things of this nature and also covers prescription drugs plus some types of restriction drugs are being normally comes in they monthly premium and with this monthly premium folks. Understand that not everyone pays the same monthly premium based on your retirement income and what types of income are coming in your premiums can range from anywhere from a 118 I love. I've seen some premiums of over 400 miles so that's another part of the retirement income plan that we addressed when you come into our office. How is you were retiring kind of warnings in affect your part. And the annual deductible varies from new thirty year and it also has seen 20%. Co payments so you pay a premium. They're basically going to pay the medical look at all of the medical areas doctors surgeons specialist preventative care clinical research medical equipment and such some prescription drugs for quite limited it comes with a monthly premium yes you have an annual deductible and yes you also have a 20% co pay for all services. That are covered under the Medicare plan. All right so Dan is since that's the limited number of prescription drugs the majority of prescription drugs are covered under part and key correct. That's correct so I think in this folks member A you thought about his hospital that's the facility be more or less medical. Doctor surgeon specialist. By a President Bush we never had a heart beat but of course in our country we never seem to be able to spend enough so we added a part B program to cover prescription drugs with this plan based on what kind of drugs she used the heard different kinds of artfully deep plans so again when you think it Medicare part. You want to go on line or you can come in and talk with a wonder are represented as you want to make sure that do drugs the use our covered senator plan and you want to make sure that you're paying the least possible premiums that would be the Medicare part. As in drug broke. Graham. And then quickly because I know that were running out of time here. Part C is Adam most complicated of the portions it's got the most at sub categories. I think it it's a kind of like the week that. If you have a pair of suspenders you. I'd just do or plan to. Hold up your pants depending on how much you need them held up and parts he has so many sub categories that this is. One of the reasons why it's so important to come in and sit down with someone who deals with these kinds of issues every single day. And that's why it's so important for our listeners to have that opportunity to give you a call to sit down with you for that initial consultation right. Yet that's certainly true when Medicare part C this is a privatize Medicare program we specialize. In these lines we also have trained licensed professionals. Who can help steer you through the mock. And that quagmire to help determine what type of plan is best for years so feel free to call our office will be happy and. That number is 808511636. Again 800. 8511636. To sit down for that initial no cost consultation. With the failed capriati's and the team acts senior tax and insurance advisors PL LC. The number one more time before we go 800. 8511636. Fill the show has just flown by today thank you so much for other great information we'll look forward to talking with you next week. Thank you to get it certainly did play by have a blessed week in Kentucky next Sunday thanks for listening everyone will look for you next week as well. Right here on the financial so far. Yes currency RA. Information on this what do the strength of purposes only and does not constitute investment tax will be live months information obtained from sources that are deemed to be reliable when it. Not be guaranteed their Peter. We get guarantees copies only a financial strength and claims paying ability patient company. Individual should thoroughly review the contract for specific details of companies withdraw from deferred annuities or just. Ordinary income in the year there. Keep up with the latest breaking news in Austin and around the world take a moment to make sure you're following us on Twitter at top thirteen 7811 tweeting me. Just one more way to stay connected with top thirteen seventy the right choice.