On this week’s episode of Retire 360, Dwight and Mitchell explain how you can be like Warren Buffett and apply a billionaire’s winning strategies to your own life and retirement plan. We share a list of rules that The Oracle of Omaha lives by and discuss how you can take action and improve your own financial plan today.

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6.30.23: Audio automatically transcribed by Sonix

6.30.23: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.

Producer:
Welcome to Retire 360 with your host, Dwight Mejan. Dwight is a licensed fiduciary and financial advisor who always places your needs first. Dwight works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for. And he can help you, too. So now let's start the show. Here's Dwight.

Dwight Mejan:
Hey, we want to welcome everybody back here to the show. My name is Dwight Migeon. Next to me is Mitchell Keiser. And just want to welcome everybody back here to the Retire 360 show, brought to you by 360 Capital Management. Want to welcome all of our listeners in the western part of the state and down in the Moore County area here where we are recording from today. But hope it's been a great week and a happy early 4th of July to everyone. Love the holiday. Love what it represents. Love those who are in service to this great country that we still live in. It is still a great country. And those who have served and those who have paid the ultimate sacrifice for the freedoms that we do have just a great time to celebrate hope. A lot of our listeners have some time together with family and friends and barbecuing. Mitchell What's on the agenda? I think we got a little travel plan together here, don't we? Yeah, So.

Mitchell Keiser:
I'm looking forward to heading up to Chicago. I've never actually been to Chicago, so that'll be nice. And get to spend some time with my grandmother in law, aka your mom, so that'll be nice.

Dwight Mejan:
Right on. Yeah. So we're. We're breaking you in the right way. We're taking you during the summer and not the winter coming into the Windy City. So should be good.

Mitchell Keiser:
None of our listeners had ever been up to Chicago, but I've been hearing nonstop about this food ever since I've met the Megyn's, my wife and their family. They've been talking about the food for the past four years, so get to go up and experience it all. So we.

Dwight Mejan:
Better not. We better not let you down then, right?

Mitchell Keiser:
I come back and I'm like, Hey, guys, the food sucks. I'm just kidding. No, I've always heard good things about.

Dwight Mejan:
Hey, I'm going to bring Sam into the conversation here. He just threw something up on a post here that says Great delis in Chicago. Maybe he's got AA1 that I don't know about. So I got to ask Sam, since we're talking about food. So Sam's our executive producer. So, Sam, we were just talking about Chicago before the show started. So you got a particular deli there or are you just talking about deli in general here?

Producer:
Oh, well, I couldn't give you the name. I could tell you that it's right around Wrigleyville. But to be honest, the last time I was there, I wasn't checking out the names. I was really hungry, stepped into a spot. I loved the people in Chicago. They're super friendly. I'm from the Midwest myself, so we get along just fine. But I love all the different delis. And I remember noticing that there was like Polish restaurants and stuff like that up in Chicago. And of course the classics like Deep Dish and A Portillo's Hot Dog. Great place to visit in the summer.

Dwight Mejan:
You got Portillo's. You got to go. Mitchell had his first. Portillo's He was talking about food in Arizona not too far back. We were out that way. And they have a Chicago chain there. Portillo's And it's a great Chicago beef. You can't get that here in the South. You just can't get that Midwest beef like you can't. So guess it's just a returning to our roots.

Mitchell Keiser:
So nothing to do up there but grow beef or raise beef.

Dwight Mejan:
Right on. But hey, we're we got a great show today. You know, what do we do here at the retired 360 show this next hour or so? We're just dedicated to help you responsibly grow, preserve and protect your wealth. If had to put it simply, just want to say a special shout out to our first time listeners who are in our listening area. We're glad to have you with us, hopefully for the whole show, but if not for a piece of it. But hey, if you can't make it for the whole show today, you can find some rebroadcast of our show. Wherever you download podcasts, you just got to go to the search menu and type in Retire 360. We have a YouTube channel. You can type us in there, look us up on Facebook or Instagram. We have pages there as well. Don't hesitate to call us. We took a lot of questions here the last couple of weeks. We're taking a little break from that today, but we'd love to hear from our listeners and love to answer your questions. But if you have questions, we would direct you to two phone numbers. If you're in the western part of the state, you can call us at (828) 278-7814. And here in Moore County, you can call us at (910) 235-0812 or go to retire 360. Show.com that's our website and you can contact us there. But for our listeners, just get in touch with us today to receive a free report on tax free investments. You ought to be concerned about keeping more of your money. As we like to say here, it's not always what you make at the end of the day. It's how much of it you can keep. And taxes is that dark, lurking enemy that's waiting for us in retirement. As we like to say, we talk a lot about taxes. We do events and workshops on taxes. We have one coming up here. We don't have the date for that yet. Mitchell, do we? The one coming up, it's actually in Sanford. We got one coming in Lee County. Is that right?

Mitchell Keiser:
Yep, yep. So our next event here is going to be in Sanford and that is going to be on July 20th at 6 p.m. and on July 21st, which is a Friday at 11 a.m. if you guys are interested in joining that class, the best thing to do is to call us. And our office number for that is (910) 235-0812. Again, the best way to save a seat is to give us a call. We can give you the details of where it is, what it is, how to get there. For our listeners up in high country and the Boone Blowing Rock banner Elk area, we're coming to you guys in the next two months, so we'll be there in August and September. So if you guys are in that area and you want to check out some of our classes, we don't charge for our attendees and teach a lot of great information. So yeah.

Dwight Mejan:
Awesome. Thanks for sharing that. Mitchell We're going to hop right into this week's show. Our Quote of the week comes to us shortly here from Mitchell from the Oracle of Omaha. Hopefully that name will ring a bell to you. We're also going to talk about Warren Buffett's gave you the answer, their rules of investing, how you can apply those principles to your retirement plan. We've got some Independence Day travel news, some updates we're going to share there. We're going to talk about some recession fears that are kind of lingering here still. And also why American? Doubt their retirement plans. So we'll talk about that. So just a listener call it if you've been listening to the show because you're interested in proving your financial situation in retirement, let us help you with some one on one attention. Just give us a call to those numbers Mitchell just mentioned. We'll share them throughout the show and we'd love to meet with you personally and provide some customized guidance and solutions based on your specific financial needs. So, Mitchell, what do you have for us for the Quote of the week?

Producer:
And now wholesome financial wisdom. It's time for the Quote of the Week.

Mitchell Keiser:
All right. So we have two rules brought to you by Warren Buffett. Rule number one, never lose money. Rule number two, never forget rule number one. That's kind of funny. Pretty true, though. Important in diversifying and importance and knowing what you're invested in, what the risks are associated with, how you're invested, and making sure that you're either very educated yourself if you're, you know, self-directed or that your advisor is educating you on where you are, what you're doing and how your assets are all correlated. And if you don't know what that means, get with somebody that will teach you what that means. It's my best advice for you. Just some more facts here on Warren Buffett. So, Dwight, we were talking about this earlier. I didn't realize that Warren Buffett was 92 years old.

Dwight Mejan:
Yeah, he's he's up there. He's starting to give his wealth away.

Mitchell Keiser:
Yeah, I saw that. So actually, we're going to talk a little bit about an article here on Investopedia, but was reading this article on Forbes and it said, So Warren Buffett amassed a fortune of about $112.3 billion and he's vowed that he's going to give away 99% of his wealth. 99%. I will be honest with our listeners. I would accept that remaining 1% of what you know, it's just the percent, but I'd still take it. But yeah, so he's going to give away 99% of his wealth. He's already given away $51 billion to its a to a foundation. I'll ask our listeners if they could guess what foundation that is. If you think of any big foundations out there, well, he gave $51 billion to the Bill and Melinda Gates Foundation. So Bill Gates, I'm sure you all have heard of them. But you know.

Dwight Mejan:
What, Mitchell? He took a lot of heat. And I've read a lot about Buffett over the years, but he wasn't very benevolent by standards of someone with his capacity of of wealth that that gave. But he was a big proponent. Guess his his goal was to let the money compound. And he always had the plan to divest of that wealth, you know, throughout his lifetime and when he passes away. But he's been we're going to talk about him here some more as far as some of his principles, but he certainly giving it away now.

Mitchell Keiser:
Yeah, I'll say. And I'll also just find it interesting. So he has three kids, so I guess the three kids are splitting the 1%.

Dwight Mejan:
They're still be are you still take that too, wouldn't you.

Mitchell Keiser:
I'd still take a third of his 1%.

Mitchell Keiser:
But I think we're going to talk about Dwight. You had some rules for us that Warren Buffett lives by. And how do we apply them to our own life and retirement plan?

Dwight Mejan:
Absolutely. Well, we'll let you share a couple of those as well, Mitchell But yeah, he's known as the Oracle of Omaha. I think he's still maybe. Mitchell You came across this in some of your reading on him. This week, but he lives in a very simple, modest home I know is of this big housing boom as far as real estate values. He lived in a house that was under $400,000. So he lived pretty simple. I'm guessing he's still in that original home, although I don't know that you know.

Mitchell Keiser:
I didn't see anything that said different. No, I'm pretty sure he's still the same place.

Dwight Mejan:
Interesting. Well, his first principle never lose money. You know, just to apply that to our listeners, you know, we talk about this a lot. We talk about with people when they come into the office. We always have client meetings and we're looking at the amount of money that they have exposed into what we call smart risk plans may be used that term. If you've listened to the show before, they're smart, safe money, and then you have your smart risk money. The smart risk money is money that you take calculated risks based on factors such as your time horizon that you have left during your working years, your tolerance for risk, some of your goals, some of your your income needs. But you got to protect a sensible piece of your portfolio that you've saved. And one of the rules that we use to do that is we use something called the rule of a hundred, and that's simply taking a hundred and subtracting it from your age and your age really determines the amount of money or the percentage that should be kept in smart, safe money. Which essentially means that money is either principal protected or very, very safe money where you can't lose it. So the smart risk money would be the money that's left over. So if you're listening to this right now and you are 60 years of age, that means that 60% of your money should be, you know, smart, safe.

Dwight Mejan:
And the other 40%, if you subtract 60 from 100, that other 40% is what you could set aside and have somebody invest for you according to your tolerance for risk and put that to work somewhere in the market. So the older you get, more and more of your money is going into principle protected accounts. And really a great question that we would challenge you all to ask yourself is how much of my savings am I willing to lose? Because whatever that amount is, that's the maximum amount that you should be investing in the market. So that's just a simple rule of thumb. But Mitchell, you've got another rule here. And by the way, I just got something on the screen here that Warren Buffett's house, it is the same one that he bought in 1958. He lives in the same residence in Omaha, Nebraska, that he bought in 1958 for $31,500, the equivalent of roughly 285,000 in 20 $20. And Buffett has no intention or intention of putting his own home up for sale. He says, quote, I wouldn't trade it for anything he told CNBC earlier this year. So interesting. Thanks, Sam, for throwing that little stat up there. Interesting, interesting facts.

Mitchell Keiser:
So rule number two, if you guys forgot, do not forget rule number one. So rule number two, do not forget rule number one, don't lose your money. How do you do that? Number one, be informed If you guys have been listening to us for any amount of time, you know that at the heart of what we do, we are educators. We do. We are a part of a 501. C three called Coffee. Coffee stands for Council of Financial Educators. You can check us out there if you don't believe me. But so how to not forget rule number one in losing your money, be informed. Make sure that you guys understand what you're invested in, how you're invested, how the instruments work. Do your homework on those investments. Make sure you're thoroughly researching those, how the strategies are working for you, and make sure that you trust the person that you're working with. And even though you might trust them, they might, you know, have a nice smile, good tone to their voice. Make sure you verify that. Another tip for you guys. Buffett invests only in strategies that he thoroughly researches and understands he doesn't. Go into an investment prepared to lose. And neither should you. I know I read something. This was years ago when Amazon was starting up in Bezos. Used to always go by the rule of thumb of investing in things that will change people's lives forever. And that's what he did. And now he's one of the world's richest people. I think, you know, maybe Buffett didn't do that so much. I don't I'm not sure how that would have applied. But I know like Elon Musk, I mean, he's definitely changing the world between Tesla, Space X, all the different things that he's got going on. But you guys have any questions on how to research either stocks or your broker would be happy to help direct you to do that as well.

Dwight Mejan:
Well, rule number three, if the business does well, the stock eventually follows. Great piece of wisdom there. Buffett searched for stock to invest in. When he does that, he seeks out a business that exhibits favorable long term prospects. So does the company have consistent operating history? Does it have a dominant business franchise? Those are just great things to to mention there. Mitchell made a great point there about, you know, just does the company look to change people's lives or the way that we live in the future? That's just a great. Those are the great things that change right now. And, you know, we look at, you know, a lot of money's being dumped in this year into AI. Now, we're not proposing that you go dump a bunch of money in AI. We don't know your situation, but artificial intelligence is, you know, where a lot of bets are being placed right now. And currently, there's no really regulation. You know, as far as what's happening. But there brings with that whole AI technology the possibility that a lot of sectors and people are going to lose jobs. I read an article this past weekend that said AI over the next, you know, 24 to 36 months was saying that up to a 300 million jobs around the globe could be lost in a relatively short period of time if they don't get some kind of, you know, regulation on the AI industry right now.

Dwight Mejan:
So just something to be, you know, where there's where there's a great opportunity. There's also, you know, possibility for some danger in certain sectors that get replaced. So we don't know how that's all going to flush out yet, but let's be careful with that. Is the business generating high and sustainable profit margins? So if the company's share price is trading below expectations for its future growth, then it's a stock you may want to own. It's certainly a principle that Warren Buffett looked at. He looked for companies whose share price is trading below expectations, and he would gobble that stuff up. We can help educate you on different smart risk strategies for growing your hard earned wealth. Don't be an emotional investor. Let us help you plan that work and then go out and work the plan. So, Mitchell, what's number four rule there?

Mitchell Keiser:
So rule number four, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. I think the a kind of rule of thumb here that I would give people is the whole mantra of get rich quick. That is the opposite of how Warren Buffett built his wealth. He was definitely the turtle in the story of the turtle and the hare. So got a couple points here. Wanted to go over with you guys. When the markets tanked during the oh 7 to 0 nine financial crisis. Buffett was stockpiling great long term investments by spending billions in names like General Electric and Goldman Sachs. So again, those weren't the crypto currencies or the, you know, the start up companies. Those were the, you know, established high equity, high cash cash position companies. He was investing in companies like that. Now savvy investors seek companies that offer durable products or services and also have solid operating expenses and ongoing potential for future products. So finding the right investment at the right price with margin for safety against unknown risk, that's obviously the ultimate goal. So. You're sitting here listening. So how do I do that? That all sounds great, but how do I know what's a durable stock to buy or, you know, I just saw this stock went down, so maybe it's a good time to buy that stock. Well, if you don't know, guess what things to look at as far as, you know, what cash business positions do they hold or what equity do they have? What's their, you know, assets versus their liabilities? If you don't know how to do that or you're not comfortable doing that for yourself, it is important that you work with a professional because that is that is a pretty important feature that they can help you navigate the waters through because too often people go out and dump a bunch of money into a stock that they think sounds great and then they end up, you know, just losing it all. So you want to take risk, but you want to take smart, calculated risks.

Dwight Mejan:
Absolutely. This is probably a good time. I just want to interject something that made me think of kind of where we're at, kind of a state of the market right now, year to date is we kind of finished the first half of the year here shortly. Um, you know, the Nasdaq is up this year just under 30%, 29.9%. Again, what's driving a lot of tech stocks, which is what that index is heavy and a lot of artificial intelligence people are placing bets there as opposed to the S&P 500. It's up 13.7% year to date. And what's interesting there, I've mentioned this maybe last week on the show, 85% of the growth right now in the S&P 500, 500 largest capitalized companies here in the US. Five of those companies make up 85% of that 13.7% growth. So you got the other 495 companies contributing just right at 15% of that total growth, which more mirrors where the Dow is at. The Dow Jones being the top 30 companies here in the US is only up 1.78%. So there's a huge, huge disparity going on right now between the Nasdaq, the S&P and the Dow. We don't have time to dissect all of that in today's show, but just some interesting things. We're going to talk a little bit about some of the fears that are still lingering here with recession. Um, two two stocks. Just to show you the other disparity here, we know Bitcoin fluctuates a ton. Bitcoin is up 84% year to date and then Netflix is currently up 43%. They're almost 44% year to date. So just some interesting things going on here. First half of the year. Yeah.

Mitchell Keiser:
I wanted to add in there, you were just talking about Netflix. So I think a part of that could be I don't know if you knew this or not. I know your household did us included because we used to use your Netflix, so Netflix just went through this big push where they if you're in a different Wi-Fi, they kicked you off of using your family's Netflix. So everybody under one Wi-Fi has to have their own Netflix. And the starting price for like if you want the top tier Netflix with the good video quality, it's like $20 a month. And I read something through this news feed that I follow on Instagram that that the month that they implemented that was the highest. It was like the highest number or the highest month of subscriptions that they've had since like they launched or something. So I'm sure then doing that, ticking a bunch of people like me off probably they've done a lot of money.

Dwight Mejan:
That's true. I didn't realize that was their biggest inflow of new accounts, but it makes sense. Makes total sense. So the rule number five that Buffett had is is our favorite holding period is forever. What's he getting at there is how long you hold a position that you buy. So how long should you hold a stock or other investment? Buffett says if you don't feel comfortable owning a stock for ten years, you shouldn't even own it for ten minutes. Even during times of volatility, Buffett has loyally held on to the bulk of his portfolio because he believes in the long term viability of his investments. You know, we say this you've heard me say this on this show. If you've been a listener for any length of time, it's not timing the market that enables people in the long run to make money. It's the time that you put in the market with your investments. And the reason a lot of people I find get out of the market had somebody in my office this morning before we did the show and I was this person told me that they got out of the market. And I hear this quite a bit last year, about halfway through. And obviously the market was down considerably, you know, through June of last year. That had already taken a big hit. And what's going on there, most of the time, folks, when we see that is someone does not.

Dwight Mejan:
Typically those are people that don't work with a financial professional. They're either self-directing doing it themselves or they are working with somebody. But that individual hasn't really asked good questions. Gins to evaluate the investor's risk tolerance. And that's what's most important is to stay the course with the with the right risk adjusted portfolio so that when the market does have some ups and downs, you're not seeing your portfolio drop to a level that causes you discomfort. None of us likes to see that smart risk, money that's invested in securities, you know, go down. But if it's invested the right way, most people will be able to tolerate and stomach a certain level of going down. But when you try to time that market and get in and get out, you're going to miss some great opportunities. Probably shared this on the radio before, but if you invested $100,000 over the last 20 years and you just left it in there, left it alone in 20 years, that 100,000 would be 636 grand if you miss five of the best days. Now, keep in mind, 20 years is 7300 days. Now, not all those days I know are the market's open because you got holidays and weekends in there, but you still got a ton of days in there. Call it 5000 days plus that you're in that the stock market's open.

Dwight Mejan:
If you miss five of those days in the last 20, instead of having 636,000, you had $392,000 down over a quarter of $1 million just because you missed five of the best days, if you missed 25 of the best days. You, your portfolio would have been 142 grand, so you would have only grown 42,000 versus two, 636,000. So very, very important to stay the course. I totally agree with what Buffett has said there. Don't be an emotional investor. That's what we want to emphasize here. Being overly fearful or too greedy can cause investors to sell stocks when they're at the bottom or buy at the peak and destroy the portfolio's appreciation for the long run. So it's important to keep in mind why you're investing. It's to protect and grow your wealth. And we want to help preserve and increase the value of your assets so that you're able to thrive in retirement and leave a legacy for your loved ones. And we're going to talk a little bit here in the next little couple segments here about baby boomers and why they're delaying retirement. So we're going to get to that. But we're going to take a quick break. And when we come back, we're going to give a little update here. Mitchell will on 4th of July travel news and some statistics. So we'll be right back.

Producer:
Helping bring you one step closer to financial freedom. You're listening to Retire 360.

Producer:
And now back to the show.

Dwight Mejan:
And we.

Mitchell Keiser:
Are back. You guys are listening to the Retire 360 show, brought to you by 360 Capital Management here in downtown Southern Pines and in Boone, North Carolina. We are going to hop in here to the 4th of July travel news and statistics. Some of you may be traveling this upcoming week for the 4th of July, or perhaps you're already at your destination. But here's just some statistics brought to you guys by a couple different sources that we have now. If you guys have been listening to us for some time now, we talked about over Memorial Day how that was one of the highest trafficked holidays ever. A lot of that was due to the end of Covid being over. So since the CDC and the government said that we are no longer in a crisis, everybody is out moving, traveling. Most a lot of people between the years of 2020 and 2022 put traveling on a hold. So now that we are allowed to travel without being vaccinated or without taking all these certain precautions, the numbers have just spiked pretty high. So more than 60% of the surveyed Americans plan to travel for Independence Day this weekend. That's about a 155 million people. If you guys are traveling, make sure you hit the road early or arrive at the airport with plenty of time. Give yourself just a little bit more of a buffer. And most years people probably do that anyhow. This year we'd say, you know, maybe just add a 20% more of a buffer. On the Friday of Memorial Day weekend. So that was the week, the day leading into the Transportation Security Administration. The TSA screened roughly 2.7 million people at US airports, which was the highest checkpoint volume thus far in 2023. So that was just Memorial Day. Statistically, Independence Day is traveled more. So if you guys haven't hit your destination or you're still planning to travel, make sure you take all those things into precaution.

Dwight Mejan:
All right. Well, thanks for that update, Mitchell. We're going to segue in here to an article that came out of Kiplinger's recently that talked about baby boomers delaying their retirement. And the article talked about 1 in 5. That's a big number, 1 in 5 delaying their retirement. And here's some of the reasons why they're doing that. Number one, amid uncertain economic conditions, baby boomers are not feeling confident in their retirement plans. You know, we talk about confidence quite a bit, you know, with building a retirement plan. And that's one of our goals here at 360. Capital Management is to help people be confident of their plan, not just when markets are thriving and when they see the portfolio going up, but that they still have confidence in the long term viability of their plan when they see markets going down. And I think one of the things that enables that and we'll look at some of these stats of what retirees are doing differently to shift in light of these, you know, concerns and some of the sentiment that they feel with this uncertainty. But one of the things that we find is that when people see their way through to the income that they need, not just focusing exclusively on income, but there's a lot of people that don't really know how they're going to take their income in retirement. There's kinds of there's all kinds of questions around the timing of Social Security, their pension, you know, when to retire, can I retire, can I afford to do it? And one of the things that we do is we lay out on a one sheet of paper for people.

Dwight Mejan:
We lay out their income. If they haven't started to take Social Security, we ask a lot of questions around, you know, their some of their goals and we'll give them some target ranges of when to take Social Security. But we show them how much of their income in retirement, based on their need is going to be guaranteed. And we show them where it's going to come from in the portfolio. And then how much is going to come from, you know, the unknown side of the portfolio, which would be that smart risk money, the money that's in the market. And we show two different plans. We'll show one that includes, you know, a more aggressive portfolio where they're putting you know, some people want to put more in the market. We'll show them that plan and then we'll also show another one side by side and it'll lay out for them income that could be guaranteed. And that generates a lot of great discussion. It generates some questions. But the fact is, a lot of people, 70% of baby boomers expressed uncertainty over whether their retirement savings were healthy enough to carry them through retirement, and that was according to a study from retirement Living. So there's basically principles. We lay out a lot of these principles for our prospective clients or people who just want an evaluation with us.

Dwight Mejan:
And, you know, financial planning is all about discipline. It's following a plan, it's having a plan. It's sticking to that plan, and it's following some very simple financial formulas. And that's what helps enable people to, you know, build the wealth that they need to enjoy the retirement that they've dreamed of. So retirement living. They also found that 69% of baby boomers are worried about a potential recession and that because of this, 22% of baby boomers plan on delaying their retirement. Most are planning to stay in the workforce for another five years or more. So Americans are already working longer to save for retirement than they once were. Gallup poll from last year found that the age individuals expect to retire has risen from 60in 1995 to 66in 2022. So a little over 25 years or so. The average age people are retiring has gone up six years. So that's, um, you know, that's a big jump. And, you know, we would love to have, you know, the opportunity to see if you could retire early. I know we had somebody come in this year who thought they needed to work. Another 2 to 4 years was their timeframe. And then when we went through all of our questions, we found out what their target income was. By the end of that meeting, we just simply told them, Hey, look, you can retire anytime you want to retire. And this person actually was going to be done sometime here mid.

Dwight Mejan:
Late summer, they were planning to put in their notice because they had more than enough income. They just didn't know how it was all going to fit together and we helped lay that out for them. So we'd love to do that with you. If you're listening and you have those same questions, let us know that we would love to get with you. We'll give you our phone numbers here at the end of this segment. But according to the study from Retirement Living, here's what the respondents in this survey and this article plan to do in order to better their retirements, 47% said they plan on decreasing spending. Okay. Not a not a great option when you're retired, you don't want to really decrease spending if you don't have to. If anything, we want to see you increase spending. Those are the years that you're you know, you want to enjoy the things that you envision, the things that you dream of. We don't want to have to be the bearer of bad news and certainly come to one of our clients and say, hey, you need to cut your spending. Now, those aren't fun conversations for us and they're not fun conversations for you as a listener to have to hear that. I'd love to have meetings with clients where I get to actually encourage them. And I had one of those this week that they need to spend more money from their portfolio and this person took it well and and is planning on doing that.

Dwight Mejan:
We actually have a plan in place to bump up their income somewhere between 800 and $1000 a month just based on how the portfolio was doing. And they just need to increase their their spending a little bit. So those are fun conversations to have. 30% of the responders said that they plan on increasing their savings. Okay. That's that's great if you're still working, but it's not great if you're not working well, you can't really save too much. You just have to cut spending if you're retired. Right? So 26% said investing in safe assets. I found that to be an interesting statistic. So I'll just wonder if a lot of that was influenced by what happened last year in the market. You know, we had such a good bull run in the market the last you know, the last dozen years. We had a pretty good run up until 2022. And a lot of people may have taken too much risk with their portfolio. And now they're realizing, hey, I need to get more smart, safe money put to work and protect more of my money. So I was 26% of the responders. Also 26% said they continue to work on a full time basis was part of their plan. So that's sometimes in the deck of cards and sometimes by necessity, it's great if you want to work and have something that you enjoy doing, but it's not fun to do if you'd like to be done with work, but you're having to work based on necessity.

Dwight Mejan:
And we see a fair number of people sometimes that we talk to that are having to work by necessity, not by choice. So diversification, big percentage here, 25% said they need to diversify their investments more, 23% said building up an emergency fund was something they were going to do. We talked about that on this show. Very important to have somewhere between 3 and 6 months. We'd like to see six months of savings set aside and then applying to a part time job. 20% said that was what they were going to do. So anyways, if you'd like to talk about your situation, let us know anything we've talked about here so far on today's show, you can call us at (910) 235-0812. Or if you're in the western part of the state, you can reach out to us at (828) 278-7814 or look us up on Retire360Show.com you can get in touch with us there. You can book a complimentary consultation. It doesn't cost you anything to talk with us. We'll set aside about 20 minutes or so and see if we can help get you pointed in the right direction. So we're going to take another quick break. And when we come back, we're going to have a little report on some financial jargon that we're going to start out with that Mitchell's going to talk about. So we'll be right back.

Producer:
You're listening to Retire 360 to schedule your free No obligation consultation with Dwight visit Retire360Show.com border fever. God questions. Dwight. Meghan is here to help visit Retire360Show.com today.

Mitchell Keiser:
All right. And we are back. You guys are listening to the retired 360 show brought to you by 360 capital Management. We're going to hop into some financial jargon and what does that what does that doing with retirees and how is that making them feel? So financial jargon is has been so confusing that 34% of Americans say that they don't know where to start when it comes to retirement planning, According to a new study from unbiased.com. In fact, analysts found that the majority of adults say that they have no confidence when it comes to dealing with their retirement options. What the survey found out was that 25% of the 25% of respondents to the survey said that they did feel confident, only said that they felt confident as a result of working with their financial advisor or professional. I would just kind of note on that with their confidence about their financial future and diverting that to their financial advisor. Some people that don't think that's important, you probably would not expect to have a long, healthy lifestyle not going to your doctor. So if you want a long, healthy relationship with your financial future, you probably should consult a professional because don't think unless you are a doctor and you're listening to this, don't think you would profess to know as much as a doctor. Even if you're somebody that's on Google day in and day out, don't think that you would say that you have quite the knowledge and expertise as a doctor, just like you should assume that you know everything that there is to know with your financial future as well.

Mitchell Keiser:
Other retirement areas where respondents felt shaky was the two largest, most unpredictable expenses, those being health care and inflation. Health care was cited as a primary concern by 56% of respondents who have a pretty good reason to worry. For instance, one of the widely circulated fidelity studies found that the average retired 65 year old couple in 2020 3rd May need an approximate $315,000 saved to cover medical expenses during their retirement. So that is Medicare premiums. That's what they're going to pay when they go to the hospital. Part of that is what kind of coverage you have. I handle a lot of our clients Medicare and kind of help them navigate the Medicare plans once they hit that age. And I'll tell you. So I have my grandma is on a plan from her old employer. It's essentially an advantage plan if you guys know what that is. So she was on an advantage plan paying about $300 a month. That's what her employer was taken out of her pension. And I kind of brought light to her eyes that that same type of plan is offered in North Carolina for free. So the plan is she's paying $300 a month for you could get that same plan in North Carolina for free. It's just not through your employer.

Dwight Mejan:
So what's causing that, Mitchell, for like is that just a difference in obviously the state, you know, different regions charge different amounts. That's a big difference.

Mitchell Keiser:
So I think that's the same rule of thumb as you know, you go to your bank, you trust your bank because, you know, it's the bank, it's the brick and mortar, and you think that they have your best interest in mind. So you go buy CDs that are, you know, whatever they are, 4.5% or 5%, whatever it is. And you don't think that there's something better out there. So you just go to what's familiar to you, which is just a human characteristic. You just stick to what's familiar when, you know, some financial advisors could get somebody five, 6% in a CD like things that are guaranteed. Same thing as a CD. It's just private. I think the same thing kind of applies, Dwight, where it's, you know, you get a pension from your employer. They say they're going to set you up with health care for life, and then you just trust that you're just like, Oh, thanks. You know, I'm just going to take your word for it and trust that you have every best interest of mine accounted for. And that's, folks, that's just not always the case. It's 2023. You know, this past week, I've heard of like five different cases of fraud on seniors bank accounts.

Mitchell Keiser:
People are family clients. You know, it's you need to be aware. You need to be alert. And you need to be aware of what health insurance plans are out there for you and what they mean. Because like my grandma, there's no sense in paying, you know, thousands of dollars more than you really need to. And if you think that you have the best health insurance ever and it's a supplement and they pay for everything and, you know, you don't ever have to pay, you go to the doctor. Well, there's a good chance that you could probably qualify to get that premium reduced. So there's there's ways to save money around the insurance arena as well. So you need to be cautious on the financial side. That's what we're here talking about. But you also need to be cautious on the insurance side, make sure that you're not insurance poor, that you're not overspending on insurance. If you guys have any questions on that or you'd like for me to explain something deeper with that, feel free to give us a call. Our office number, best number to reach me at to answer those questions is (910) 235-0812. Are you going to say something, Dwight?

Dwight Mejan:
Yeah.

Dwight Mejan:
Just think one thing, Mitchell. You didn't directly say this, but it's part of that health care figure is long term care. You know, we have talked about that before on this show. I just I sense there's some listeners right now that have some questions about that. Perhaps somebody listening right now that has looked at insurance to cover long term care, you know, long term care insurance. But maybe they were looking at or they looked at it years ago and ruled it out. They thought it was too expensive. But perhaps somebody listening to this is, you know, is older and they realize that they have an asset or some assets that are not really being utilized in retirement. They're just part of the portfolio. And what we would recommend and we'd love to talk with you about this, we can get you some quotes. We can explain it to you a little bit more in detail. But asset based care is the concept where you use slice of your portfolio, okay, a percentage of it, and that money gets turned over to an insurance company and it's going to pay out one of two ways. It's either going to pay out in the form of benefits for long term care during your lifetime. So it's funded with a single payment. And what's interesting, Mitchell, our listeners didn't need to know this. You can you you can fund this with traditional IRA money, like your 401. K, and that money is a one time payment that goes into the policy. And some of the objections that people have had the long term care in the past.

Dwight Mejan:
I know when I was early in my career, we didn't have this type of coverage. People would have to pay a premium, you know, monthly or annually. They'd pay for this policy. And if they never used it, let's say they died of suddenly of a natural cause, all the money they paid in just was retained and obviously kept by the insurance company. No one received any benefit beyond, you know, the insurance company collecting that premium with asset based care. You fund this policy one time and then if you never need it and you passed away suddenly of natural causes, the amount of money oftentimes that you put in is paid out or higher than that amount. It's different based on the type of product that you know that you select. But many cases, the amount of money that you put in is paid out tax free, like a life insurance. It's kind of a combination product of using life insurance where you have living benefits available for long term, for long term care, which are also payable, paid out tax free to you as well. So just it's just an interesting concept. And I would just encourage those of you listening, you may have done a great job and of planning for your retirement, but you know, in the back of your mind, this is the one area that is you're susceptible to and you would be susceptible. The ongoing cost to care today, monthly is anywhere depending on the facility, ten grand, you know, $12,000 or more per month. So so I.

Dwight Mejan:
Was.

Mitchell Keiser:
I was going to I was going to touch on that. Dwight, before you moved on from that topic, because I used to I worked in long term care administration for about three years and, and so for those that don't know. So there's people like me you're in your early accumulation years want to accumulate this mass amount of wealth you know so that way I have this big nest egg to retire, retire on. Then there's people like you that are, you know, farther along the journey, still got time left and you're thinking about how you're going to spend that money. Well, I worked at two different facilities and one of them was a health and rehab center. So basically, if you were older and you, let's just say, broke your leg and you had to go somewhere and you couldn't take care of yourself, your spouse couldn't care for you to go into this facility and get a private room, assuming that most people that are listening to this would probably not want to share a room in a nursing home with somebody else. They want a private room on a rehab hall. Okay. Well, to get a decent quality rehab center, I'm just telling you. All right. Now, most of those facilities are private pay. Your Medicare is not going to cover that. Does it matter what insurance you have if you want to get a good health and rehab center? It's more than likely going to be private pay. So that private pay facility, remember spouses coming in to write a check. Do you have any idea how much it cost a month.

Dwight Mejan:
For the rehab? Yeah.

Mitchell Keiser:
To stay at this rehab center.

Dwight Mejan:
You're talking about today's dollars.

Dwight Mejan:
If I had to guess, um, I'm going to say 12, 13 grand a month.

Mitchell Keiser:
So this was granted, this was probably eight years ago now when I worked there. But remember, people were bringing in checks. It was $15,000 a month cash to stay in this facility. So you think about all the money that you've accumulated. Well, there's people that were in there for a year. You guys are in there for, you know, ten months. That's $150,000. You just dropped into this facility. So now, granted, if you don't get better and the rehab doesn't work and you can't go home and you have to move into the long term care side of things, I mean, that's still going to run you at least, you know, 9 to $12,000 just to stay there in full time skilled nursing facilities. And if you don't have I know there's some people that say, oh, well, you know, I only have like this amount of assets. I'm not worried about it. I'm going to position myself to get on Medicaid. If you're thinking that Medicaid is going to be your solution and you're going to rely on Medicaid to take care of you someday, I could probably get a whole bunch of people on here to testify of what a medicaid facility is like. The goal should not be to go to a medicaid facility and to somehow, you know, work your way around paying private pay. You want a private pay facility because the people that are working in those Medicaid facilities, they're typically. Typically not where you want to be. Folks, I'm just going to leave it at that. There's a lot of great people that work at those facilities, so a lot of great people that run those facilities. There's a lot of great people that own those facilities. I'm not saying that, but if you had to go into the to, you know, a private pay and a medicaid paid facility, I'm just telling you, night and day difference, folks, night and day difference. So having that insurance, like Dwight was saying is huge.

Dwight Mejan:
Well, and.

Dwight Mejan:
It's you know, you look at the statistical probability that almost 1 in 2 people are going to spend some. Level of care for some period of time. Average stays two and a half years. And when we when we factor that in, you know, you could do the greatest job planning for your retirement in your portfolio. But people don't just get sick, go to the nursing facility and then die. A lot of people go and recover there. I had a client that was in a facility for nine months, got out, but they were private pay there for nine months. So I got calls and, you know, the spouse was concerned because she was watching the assets start to go down a little bit because we were having to liquidate, you know, positions that they had to pay for the care. And with this asset care approach, with the companies that are doing that, it's a great product because there's no chance of a rate increase. It's guaranteed. But that money is either going to be paid in benefits or it's going to be part of your estate when you die. It's a no lose proposition. Mean somebody's going to get paid. It's going to stay in the family. So especially if you have a desire to leave money behind for loved ones and you don't want to just give it to an impersonal institution, definitely take a look at asset based care will be more than happy to explain it in more detail to you. But I just want our listeners to know that there's a lot of products. I'm working with a client right now that's funding an annuity that they have.

Dwight Mejan:
They're never going to need the income from it and they're going to roll that money into this asset care. They're waiting to see if they get qualified for it Right now. That's going to be a product for them that they could use. So there's all kinds of assets in your portfolio that could be idle where you're not going to be candid, you're going to die with those assets. Why not leverage them and use a small piece of the pie to protect all of the pie? And that's the concept of asset based care. So didn't plan to go that deep, but I sense there's probably some people listening within a year or shout of us here of course, that need to hear that. So reach out to us. We're at (910) 235-0812. Or if you're in the western part of the state, go to (828) 278-7814. We'll be happy to get you some more information on asset based care to see if it's right for you. We just want to remind our listeners of fact here, there's only two types of tax free investments and how to take advantage of those. Only those only two types of investments. One is to open a Roth IRA account. You start a Roth account and set up automatic contributions if you're still working. Great place to park money. You can also convert. There's a lot of confusion there. Mitchell With our listeners sometimes about converting existing tax deferred retirement savings into a Roth IRA that's just simply doing Roth conversions. We're huge fans of doing the Roth conversions.

Dwight Mejan:
If you're working or you're paying income tax, you're already in a tax bracket. Let's say you're in 10%. So our philosophy is if you're in the 10%, let's see how much more we could fund and transfer money to a Roth account, stay in that 10% bracket, but move more money into that tax free bucket. Okay. So that's that's option number one for tax free money. The second one is to explore whole life and indexed universal life options. Now we say this. You know, life insurance offers a death benefit just in case, you know, you die prematurely. But it's also a great wealth building tool to generate tax free income during retirement. Now, I would tell you that you want to first before you look at the life insurance route. We're not here just peddling life insurance. But if you're maxing out your retirement plan, that's the first place you want to go, is to get that. I say free money, but you're working for it. If your employer is contributing toward a match on what you're contributing to your 401. Or other retirement plan that should be funded first. But if you're looking for more tax deferred growth or a way to get more tax free money in retirement, life insurance strategy could be a good fit for you. So reach out to us and we'll discuss that with you and see if that's a better fit. So, Mitchell, you want to finish up I know a little bit today's show talking about some inflation news here. So we'll let you share with our listeners what's going on in that category.

Dwight Mejan:
I do.

Mitchell Keiser:
And you know what? I did just want to add one more thing to the life insurance and just tell folks, you know, we talked a lot about insurance on this show. We talked about Medicare insurance, long term care insurance. We talked about Dwight just talked about life insurance. And insurance is like financial planning in the sense that, folks, it's complicated and it is not something that if you're like, well, I don't fully understand this myself, to be honest, then you're in the majority. Most people do not know all the ins and the outs of any of their insurance. You need to be working with an insurance professional and a financial professional because having the wrong insurance could cost you a lifestyle adjustment. And we've seen it happen. Then.

Dwight Mejan:
You know.

Mitchell Keiser:
We see it happen every day, every week. Um, anyhow, switching gears, hopping into the inflation demonstration. So this is just some new data that we had on the impact of inflation as of May in 2023. So food at home, the average cost to buy food at home has increased about 5.8%. Electricity has increased about 5.9%. Shelter or the home prices have gone up about 8%. New vehicles, cars have gone up about 4.7%. And the biggest one here, transportation services have gone up about 10.2%. And this was brought to us by the Bureau of Labor Statistics. I don't have it in front of me, but I'd be curious to know what the inflation was on going out to eat. I know that that if any of you guys go out to eat, I know that that's kind of shot up like probably the highest that I've seen it since you know, being of age to go out to eat by myself. But if you guys have any questions about inflation, insurance, taxes, anything that we discussed on this show, we'd be happy to go over this with you on a more one on one basis. Or if you just have a simple question that you'd like to call us. We had a gentleman come to one of our events from the radio show one time and he's like, Oh, you know, I been meaning to call you guys, but, you know, I was just I didn't want to do it and blah, blah, blah.

Mitchell Keiser:
That's you. And you guys have been sitting on the fence listening to us. Um, one just want to say there are no stupid questions. You have something that you're thinking that you're like, don't want to call them, you know? Sounds like an idiot. We were all there at one point in time. You don't know what you don't know. So if there's something small that you have to ask us, feel free to reach out. If you're interested in coming to one of our events, we'd be happy to direct you to that as well. If we give you guys some good information and you want us to point you to a good financial advisor or in your area, you could also ask us. We'd be happy to point you in the right direction. And the best way to reach us is our office number here in Southern Pines, which is (910) 235-0812. Or if you guys are in the high country up in Boone. Our office number there is (828) 278-7814.

Dwight Mejan:
Yeah. And just. Yeah, one other thing. We don't we promise we don't push, we don't bite. We are fiduciaries. And the heart of that of what we do is we educate you as a prospective individual that we can help. Our goal is always to add value. It's up to you. You make up your mind if we're a good fit or if what we're proposing to you is right for you. But we're glad you tuned in today. Today's show. Mitchell, what's the dates again? Just give them that and we'll let you sign off here today for our next event in Sanford. It's going to be yep.

Mitchell Keiser:
So if you guys are in the Southern Pines, Pinehurst area or Sanford area, we are going to be having an event up in Sanford on July 20th, which is a Thursday, and that is going to be at 6 p.m. and on Friday, July 21st, and that is going to be at 11 a.m. And if you are interested in learning about taxes and retirement and that is probably the right class for you, we're going to be talking about how to manage and take advantage of your taxes after you've retired or if you're approaching retirement years, you're getting ready to retire. We're going to talk about what you should do with that so you don't get clobbered. So if you want to save a seat, give us a call. We'd be happy to make sure that you guys have a spot.

Dwight Mejan:
Yeah, Have a happy fourth, everyone.

Producer:
Thanks for listening. To Retire 360. You deserve to work with an experienced and licensed expert who will strategically work to protect and grow your hard earned assets. To schedule your free no obligation consultation with Dwight visit Retire360Show.com or pick up the phone and call (910) 235-0812. That's (910) 235-0812. Investment Advisory Services Offer through Brookstone Capital Management, LLC. Bcm A Registered Investment Advisor. Bcm and 360 Capital Management are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

Producer:
Fixed annuities, including multi year guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity. Contract guarantees are backed by the financial strength and claims paying ability of the issuer.

Producer:
At 360 Capital Management, we know you've worked hard to earn your money and you've worked even harder to save it. When it comes to wealth management and planning for retirement, Dwight Migeon is passionate about helping people protect and grow their wealth. Visit Retire360Show.com to schedule your free consultation today. It's a thousand hundred dollars value provided at no cost to you. Book yours now at Retire360Show.com.

Producer:
Information provided is not intended as tax or legal advice and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional.

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