2.3.23: Audio automatically transcribed by Sonix

2.3.23: 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 Retirement Unbroken with your host, Merrit Strunk. Merrit is a licensed fiduciary and financial advisor who always places your needs first. Merrit 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 Merrit Strunk.

Merrit Strunk:
All right. Welcome to the Retirement Unbroken show. I'm the host, Merrit Strunk. And I want to welcome our unbroken nation out there. If you're joining the show and you're a regular listener, you know you're part of the unbroken nation. And our job here, our role here with the show is to educate you, equip you so that you can unlock your financial future and what it could be for you by virtue of you listening and getting equipped and getting educated on these things. If you've never been to our website, you can check us out there and reach out to us. It's a RetirementUnbroken.com and our phone number is 858 521 9700. So let's go ahead and get into the show here. Let me tell you what's coming up here. It's going to be pretty pretty packed full of information. So I'm going to give you a little bit of the market update. Jerome Powell from the Federal Reserve was on the television today making an announcement. And right before he was on that and right after the market did some things. So I'm going to share those with you. And also, do you remember the Secure Act? The Secure Act 2.0 is now out and it's got a really significant changes that you as a hopeful retiree need to be aware. And then we're going to continue on with our Smart Retirement Plan series, are going to be talking about smart care, something that's so many of us need to be aware of, and for your family and potentially for yourself and your spouse. So let's go ahead and get into this here. Oh, and by the way, I just want to acknowledge my the other guy in the foxhole here with me in this studio booth there, Matt McClure. Hey, Matt, Welcome aboard, brother.

Producer:
Hello. Hello. I enjoy being down in the trenches with you. I really do. You're right.

Merrit Strunk:
Wait a minute, Foxhole. What's going on here?

Producer:
Incoming.

Merrit Strunk:
Yeah. And the way that I say that is for your team member, that if you're facing one way in that foxhole, you want a good partner in the other direction, looking the other way. And the foxhole, right? Yeah, absolutely. Okay, Well, crazy stuff happened today. So Jerome Powell, to you at the recording of the show is getting ready to make his announcements. They're going to be together and they're going to say, hey, so are we going to increase the lending rates? I think it's to nobody's surprise. And they said yes. Just the question was, you know, are they going to throw us a curveball and announce something bigger than what the market expected? As expected, they raised the lending rate 50 basis points at least. It's not 75 basis points. And that is what everyone was expecting. That is what the market priced in. However, prior to his briefing on air and making the announcement of what those basis points were, the market was opened and it went straight down. I mean, some of these indexes were down 300 points. And then as he started speaking and confirmed, just 50 basis points, then the market recovered and made some made some slight gains. And so that was nice. So it was gyrating around and looked like it was trimming off some of the great gains we've made this month, year to date. And and then after he spoke, then it finally got a little above, you know, the at least the opening the opening bell.

Merrit Strunk:
So I think what's going to go on here is the market's going to continue to digest the economic data that he talked about, things like the manufacturing activity, things like that. And and, you know, Powell did mention, by the way, that he does not see cutting rates this year. So that means this year we're probably in for a few more of these smaller basis points increases and then maybe a pause. But they are dedicated to their mission of controlling inflation. So they've got to get the inflation down. They reaffirmed that they continue to be dedicated to that and they're going to continue to do that. So some of the other things that the private sector employment grew at a slower rate than anticipated. That's actually what the Fed wants to see. And mortgage rate applications snapped a three week winning streak, and construction, surprisingly also declined. Q For earnings, we're still getting some of those earnings reports. Heat it up and SNAP reported a larger than expected loss and suggested current quarter revenues may decline for the first time. That influenced some of the market's ups and downs. There were some other folks, you know, actually reporting some good quarterly estimates, and then the Treasury yields were mostly lower and the US dollar is also falling. While crude prices turned up right at the end there, it turned up and gold was also up. So far, the major indexes I'll share this with you. The Dow came back. It's a smidge. We're talking basis points like 0.022%.

Merrit Strunk:
That's okay. That's positive. We're happy to see that the S&P index did the same at a 1%, 1.05%, and the Nasdaq was up 2%. So you could see if we were down in the morning and then the announcement was made and then we came back again based on, you know, I guess, exactly what the market expected. And it's good bond yields have. We've seen heightened volatility lately. And so we'll see that to remain solidly higher probably or, you know, the last 12 months or so. That's actually interesting because, you know, the the low rate environment that we came out of and here we are going into the higher rate environment is brought back. The idea that you could actually invest in bonds and the bond market where the smart money is. Right. So like I said, the markets are going to continue to more than likely be the volatility that we've seen is the new normal here. And, you know, we'd like to see a few more things like strengthening of the fundamentals and technicals that we've got going on here. So that's as much as we're going to touch on the market and what's going on for you. It just kind of position that as what should I expect in the market, some ups and downs and people digesting the economic data here. All right. So getting into things here, let's get on the lighter note. How about the financial wisdom quote of the week? Matt, bring it on.

Producer:
And now for some financial wisdom, it's time for the Quote of the Week.

Producer:
Sure. I will share the quote of the week. Absolutely. This time around, it comes from somebody who knows a thing or two about money and is one of the richest people in the world. As a matter of fact, Warren Buffett said this one time, quote, Someone is sitting in the shade today because someone planted a tree a long time ago.

Merrit Strunk:
So no wonder, you know, if I be somebody like Warren Buffett and you could talk about, hey, you know what, that tree is there because somebody planted that. But, you know, and have it being quoted now. So this is analogous to and folks, I don't know if you've ever heard this before, but the law of the farm. And it very much has to do and we have this in our retirement Unbroken book, The Law of the Farm. If you've never heard it before, it goes like this, which is it's not like studying for an exam for college where you don't study and don't study and doesn't. And then at the end of the night, you're what's called cramming to digest as much information as you can and then show up the next morning and take that test. If the farmers did something like that, they can't wait. And wait and wait and wait, wait and then feed the cows and then try to deal with it or. Wait, wait, wait, wait. Don't plant the seed and then expect crops to grow because crops take a long time to grow. What is that metaphor? Growing. Growing your money. Right. You have to plant the seeds and you take action. You've got time to do it. And just like the the law of the farm, you know, it takes a while with the time, right? So the law of the farm related to that, issues about retirement and money and financial future and Warren Buffett here, right there, you know.

Producer:
Want to know where your hard earned money is going. It's time for an inflation demonstration.

Merrit Strunk:
Matt, you know, we're coming up here to an event, a television televised combination, live event so that everybody looks so forward to coming up here. Could you can you guess what that is?

Producer:
Oh, is it always something happening? It could be. I'm trying to think of what was that, that Adam Sandler movie where he called it foosball all the time. Waterboy. That's what it was. It was Waterboy. Foosball.

Merrit Strunk:
Foosball. Well, it's a super version of that, right? So? So. And related to inflation, we've got some issues happening here in USA Today reported this on what's going on with Super Bowl foods related to inflation. So we know inflation is driven. Prices up for at home, food about 11.8% over the past year. But some of these things like watch party foods are easing thanks to the supply chain getting a little bit better. And there was a report by Wells Fargo here that we're going to be talking about. So a couple of ones that are going to be lower this year is avocados. You know, I can't believe that because avocados are darned expensive. And where I live, I mean, I could literally walk about a quarter mile here and pick my own avocados and having them around us in where I live. And then you wonder to yourself, why are these so expensive? They're right here. Anyway, so. So because supply chain may must have eased here maybe from different places we're shipping it from. And avocados, by the way, are the MVP of the dish called guacamole. So much less expensive this year thanks to a strong crop. And Wells Fargo notes that the prices have dropped about 20% for the avocado. So must be good oils for you. I don't know. The other one. What's a what's a favorite of yours, Matt? That Super Bowl favorite finger food. What what you do in your household?

Producer:
Oh, my gosh. I will have to say the chicken wings. Oh, I'm all. I'm all about them. And, you know, last couple of years, I feel like they have been so crazy expensive because of like supply chain issues and all that. So it's been it's been a bit of a struggle.

Merrit Strunk:
Well, then, good news for you in your household when you're watching that and you can make your gourmet chicken wings. I expect some shipped over to me. Casa there is that at the supply chain at the highest level since 2019. The chicken the chicken chicken prices have dropped about $3.38 a pound the last week here, as we come up to the Super Bowl to about 2.65. So $2.65 per pound, according to the Wells Fargo report. And then hamburgers. While hamburger prices are slightly elevated from last year, they fallen below the peak in July. So frying up some bacon on top of those burgers will cost less this year. And the last one, sirloin steak. So prices are dropped almost $1 per pound since December. Boy, thank goodness because, you know, the groceries were crazy. So not all of them have dropped, though. And this is bad news for for many of you beer lovers out there, The star. Right. The star attraction, many Super Bowl commercials. Right. The Anheuser-Busch beer is about 11% pricier than compared with last year. And wine is 11% higher. You know, I remember going to the grocery store last time buying a 12 pack, and it had been so long since I bought a 12 pack, I was shocked at the price.

Merrit Strunk:
I was just shocked. Wine is up 4% and spirits are up only two. That's interesting. They always think that, you know, the alcohol business is a recession proof business because, you know, if you're depressed and can't buy anything, you could get your alcohol. Soda is up in the the rising ingredients and shipping costs means the soda is up 25% from last year, 25% increase. You know, there's a lot of people that are addicted to their sodas in the morning, just like, you know, I'm addicted to coffee. This report notes that the price hike is unlikely to break the bank, though, that the two lots, two liter bottle costing about $2.13. And then lastly, potato chips. Between December 2021 and last month, the prices for the potato chips are up 22% to $6.28 for a 16 ounce bag. And that comes from the Bureau of Labor Statistics. And I don't know, you know, those bags in there? You got you got you got bag portion to chip portion, Right. Just like. Where's the bag? Where's my chips? In there.

Producer:
You're paying for all that air that they pump into it, you know.

Merrit Strunk:
Right. Well, as much fun as that is, here's some real education of some big changes. And this is the big one that affects so many retirees out there. The Secure Act 2.0. So it passed in late 2022 in a congressional session and it's now law. So what can that mean for us? And here's an overview of all the different changes are imd's. And if you've been in our retirement unbroken classes here on our show and a podcast, RMD stands for what class required minimum distribution, right? What does that mean? That means if you have a traditional pre tax IRA. Then at some point you have to take and you are required to take out the minimum amount distribution. That's which is a calculation. And it used to be a 70 and a one half. It was put back to 72. And so now in 2023 it's at 73. And then the big change, it will begin at age 75, starting in 2033. Now, that may sound like, oh good, I don't have to take the money out of my IRA because I don't need the cash and I could not pay taxes. However, it's much like our government and the budget debt ceiling that we're dealing with, that everybody kicks that can down the road and eventually you may have to take that money out at the highest income tax of your lifetime. So it's a possibility that waiting could be a good deal for you, so that with age those RMDs go up as a percentage because of mortality tables, but also the value of your IRA goes up.

Merrit Strunk:
Therefore that percentage represents a larger amount of money that you're going to be. What the big old baseball bat that the IRS has. Their taxes are going to tax you on that money that comes out. So it's a possibility that you consider letting that money grow. And it's gross. Never been taxed form before. If you can afford to postpone withdrawing that for your income needs. Like I said, pros and cons that may work for you. This also means that you have an extended window or extra runway to complete a Roth conversion over your lifetime and divest the IRS from your retirement plan like we've covered many times here before on the Retirement Unbroken show. But you want to see if you can complete your Roth conversion before you need to start withdrawing for retirement. That makes sense, right? Move it from left pocket to right packet, you know, left pocket tax forever. Right pocket. No more taxes for the rest of your life in your Roth, Right? Och, yet deferring that rmd age can benefit many savers by the way, from a financial perspective too. So for example, it may help reduce the premiums that people pay on Medicare Part B and D, right? So if your income is higher because you're taking those RMDs, then your Medicare premiums on bad are going to be higher because you have higher income. So Medicare premiums are tied to that income and distributions from pre tax retirement accounts and that will raise the taxpayer's income.

Merrit Strunk:
Therefore you get nailed on your on your premiums. That may be you. There are some people and some of our clients that really just have higher income in their retirement and they really get nailed on on Medicare and the Medicare taxes. Delaying that bump in your annual income that could therefore lower those premiums longer. But again, the back side of that is, you know, you could say, I don't care if I need it or not, I'm going to start taking it now because I know taxes are going to go up. So could you could even start taking your distributions. Don't call them RMDs at that point. You could say it's 60 or 61 and you could just start taking them controlling the amount of taxes you may have to pay later in your life where taxes might be higher. I hope that makes sense to you. This is huge. Starting in 2024, as part of this secure Act 2.0 RMDs, those required minimum distributions will no longer be required from employer based Roth retirement plans. So employers under this new change at 2024, employers can now contribute matching contributions in after tax dollars. Gigantic. So in your current situation, if you're in a Roth 401 K only you, the employee, can make an after tax contribution. That employer's match is actually going in the tax deferred bucket. So in everyone who has a Roth 41k, you actually have two buckets. If you were to roll them out into an IRA, the plan would tell you you have a pretax and an after tax portion.

Merrit Strunk:
You've got to open both an IRA and a Roth IRA. Now under the new auspices of this starting in 2024. Now, that employer can make after tax dollars. Yeah, who The law change. And this is a big one. What if you don't take those RMDs? What if you fail to take an RMD? The penalty used to be. Imagine. So you're 73 and you take your RMD. You just plumb forgot. The first time you had to take it, you just. You just forgot. Well, the IRS would then come and penalize you 50% of that amount that you were supposed to take. You talk about a punitive kick in the you know what? 50% of what I was supposed to take. What if you're what if your RMD was 30,000 and and 50% of that is the fine. Now it's 15,000 fine on your 30,000 you were supposed to take. That seems really punitive. So the law changed, right? So the penalty now for not taking your RMD is now 25% of the RMD that you should have taken instead of the 50%. And then if you come back and go, oh, mea culpa, mea culpa lo siento, I didn't mean to do that. And you file a correction tax form, then it's 10% penalty, but you've got to file that amended tax return. So right there that the Secure Act 2.0, those are some really big, big deals. So the ketchup contributions in your 41k, the catch up contributions are a phrase that comes in play that if you're older than 50 years old and you are still working and you've got a41k, you can by law contribute an additional amount of money to your 401.

Merrit Strunk:
K. And those people under 50 cannot write. So the current catch up limit in the 401. K, it will bring you up to 7575 more for those 50 plus and up. So that brings you up to 30,000. So you can put that $7,500 extra in there if you're 50, 50 years old or older. And then that total makes up 30,000. So also they plan an additional increase of 10,000 after 2025 for those who are 60 and 63 years old. So that's nice. You get $7,500 extra if you're over 50. And then in 2025, you also got this additional bump of 10,000 extra for 60 to 63. So you can see how that would really help the situation. But here's the catch. If you put that in a Roth, that's after tax. You're going to pay money. You're going to pay taxes on the lowest amount of your taxes historically, probably on that money that you increase. So at least you're putting it in the tax free bucket. And this may also be adjusted for inflation going forward. So as inflation goes up, time goes by, that amount could grow as well. Ira Ketchup. So if you're 50 plus, the same thing happens. So we're not talking about a41k now we're talking about the IRAs. So you can put a catch up contribution of $1,000 more a year if you're over 50 and your IRA and then starting at 2020 for that 1000 additional ketchup, it will be indexed to inflation.

Merrit Strunk:
So it'll probably go up as well. All right. That's a lot of information there. Lastly, before we take a break here, 529 college plans, do you have some youngins out there or people who have been in college for a while? And what if they have a lot of money in their 520 nines? Interesting. After 15 years that the 529 has been established, those assets now can be rolled, get this into a Roth IRA for that beneficiary. So wherever the money was put together for for the 529 for their college expenses. Now that money that was in there can go into a Roth IRA regardless of your income. However, there is a catch. It limits the amount of money that you can roll into a Roth 230, just 35,000. So we're going to take a little quick little break here and join us. Back after this segment. There's a couple more that you want to hear. If you're highly accumulated, you're going to want to hear this. Right. And I'm not talking about stuff in the garage. All right. You're highly accumulated. No, highly accumulated and financial means. So this is Merrit Truck. You're listening to the Retirement Unbroken show if you want to stop by our Retirement Unbroken dot com website, you could do this or you can give us a call at 858521 9700. We'll catch you back after the break.

Producer:
Missed part of today's show? RetirementUnbroken.com is available wherever you listen to podcasts and online at RetirementUnbroken.com. Are you concerned about market volatility, rising taxes, economic uncertainty, and how it all could affect your future in retirement? Then tune in to your Retirement Unbroken with your host, Merrit Strunk. To learn how you can protect and grow your hard earned money. Retirement Unbroken every Saturday at 1:00 PM right here on FM 96.1 and AM 1170. The Answer. Protect your hard earned money today and schedule a free no obligation consultation now at RetirementUnbroken.com.

Producer:
Are you concerned about inflation, political uncertainty, rising taxes, and how it could all affect you and your family during retirement? If you have an IRA balance over 400,000, you could save six figures in retirement taxes that you would be paying over a 35 plus year retirement. Find out how much you could save today by scheduling your free Roth conversion consultation with Merrit Strunk at Retirement Unbroken dot Com.

Producer:
When it comes to saving for retirement, Who is winning the battle of the sexes? I'm Matt McClure with the Retirement.Radio Network. Powered by AmeriLife. The gender gap is a real thing in the US, with women making less money on average compared to men. Congress passed the landmark Title nine law more than 50 years ago prohibiting gender based discrimination in education, and that resulted in women pursuing careers that had previously been considered off limits. And while females have made strides over the years when it comes to finances, a new study from TIAA shows it's men who are setting aside more money for retirement 27% more, to be specific. And while that number is better than in years past, it's still a significant gap.

Stephanie Asymkos:
And in the past year, 78% of men have increased their retirement portfolios through stocks, compared with 51% of females. And now this imbalance really underscores not only the gender wage gap, but it also has really far reaching implications for long term retirement security.

Producer:
Stephanie Asymkos with Yahoo! Finance recently reported on the gender gap in retirement savings.

Stephanie Asymkos:
When stretched over the course of a career. A woman's lower wages really directly impact her ability to save for that nest egg and then live comfortably in retirement.

Producer:
And she says the pandemic surely didn't help the situation. In fact, it got worse.

Stephanie Asymkos:
Because of the pandemic. A preponderance of women have downshifted taking time away from work to really concentrate on these pandemic measures of supervising remote schooling for children or caring for aging parents.

Producer:
The TIAA study also showed women have some catching up to do when it comes to financial literacy. When asked financial questions in a survey, women got 45% of them right, compared to 55% for men. And Olin, with TIAA told CNBC that all of this underscores the need to equalize financial education among the sexes. So women, do you have a sound retirement plan in place? That's a key question to consider. As all of our retirement years draw closer with the Retirement.Radio Network powered by AmeriLife I'm Matt McClure.

Producer:
Registered Investment advisors and Investment Advisor Representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosure of any conflicts of interest, if any exist.

Producer:
You're listening to your retirement unbroken to schedule your free no obligation consultation with merit visit RetirementUnbroken.com.

Merrit Strunk:
All right. This is Merrit Strunk, host of the Retirement Unbroken Show. Welcome back from that segment. All right. We just got through talking about some of those provisions that are a change in the Secure Act 2.0, and they are very significant for you, depending on who you are and how old you are and things like that, if you're saving for retirement. So this might be a little bit different here. This under the Secure Act 2.0 is called a, Q, c, D, qualified charitable distribution. So let's just say you've got an IRA. It might be a traditional IRA. And this Q's c d allows you to direct a transfer of funds from your IRA custodian directly to without stopping at your house or your bank account directly from your IRA custodian to a qualified charity. And that QC RD The qualified charitable distribution can be counted towards satisfying your RMD. You're required to minimum distribution on your IRA. So maybe you didn't want to take the hit to your income, but you have to take the RMD. So now you know you don't have to take that hit to your income, which potentially, like I said, could throw your Medicare premium sky high and you do directly direct that over to a qualified charity.

Merrit Strunk:
And it counts as your RMD and as long as the rules are met. So if you're a giver, if you give every Sunday to your church or other charity, then you can group your contributions and you could do it from your IRA using the QC. Dx And you don't have to pay taxes on the on the amount and it does meet your RMD. The Secure Act 2.0 expands the type of charities that can receive a QCD, and these are pretty cool because you're talking about advanced planning when you get into these. So beginning in 2023, people who are 70 half and older may elect as part of their QCD limit a one time gift of $50,000, that that will probably be adjusted annually for inflation. To get this a what's called a crushed c r u t crushed. That's a charitable remainder unit trust. The benefit of that. Yeah. Excuse me. Don't step on the cut. Right.

Producer:
Watch out for that crud.

Merrit Strunk:
That's right. Don't. Don't stumble on that Kraut right there. They're going to go. What are you talking about? Well, if you use a charitable remainder unit trust, you can distribute a fixed percentage of money based on the balance of the trust assets that are revalued every year. There are advanced planning strategies for you who are highly accumulated to use this, contribute to a charity and still benefit your errors in certain ways. Also, another one is a cracked. Matt, you like the carrot? How about how about a crack?

Producer:
The carrot and the carrot? Just watch out for them.

Merrit Strunk:
Both, please. Plus, pass the carrot. This way is so good. I love that crat. So it's a c, r a t charitable remainder annuity trust and this one will distribute a fixed annuity amount each year as income. Right. Or you could do a charitable gift annuity. You make a donation to a single charity, right? Which means you get the the the credit right. Then the gift is set aside in a reserve amount and it's invested. But I'm.

Producer:
Disappointed they don't call that a ga.

Merrit Strunk:
Ga ga.

Producer:
Ga ga.

Merrit Strunk:
What am I? Is this is this a carrot? Carrot or a good guy? All right, so then so on that charitable gift annuity, then it's based on your age. At the time of the gift, you you receive a fixed monthly or quarterly payout. You and then typically supported by an investment account for the rest of your life. So interesting you've given to charity. You're getting money, you're getting a tax credit. Right? Amazing. So all together, advanced planning, some of those really great things. If you have a passion for giving to charity nonprofits, a special cause your church, then we can help you make a strategic donation and in effect, a way that leaves a lasting legacy and benefits you from a tax and income standpoint. So pretty nice, right? So all of you out there, you just got a master's in advanced planning here. From a financial standpoint, if you are of that accumulated area accumulated assets, then this might be for you. I call this informed giving. Right versus uninformed giving. So if I had a charitable heart and I want to give to a charity or a church, something like that, and I give the money straight out. Then that's OC. But there are other ways to do it that are smarter and more informed. So that's why I say inform giving, uninformed giving. If you don't know the difference and you still have a heart for giving, give us a call at 858521 9700 or at the retirement unbroken dotcom website.

Producer:
Here's the cost cutter of the week.

Merrit Strunk:
We talked a lot about Ross. We talked about secure 2.0. And here's a cost cutter tip for the week here. You're ready. Try to complete your Roth conversion by age 63, if possible. Why? Because Medicare's two year lookback, Medicare has a two year lookback. Right. Few people realize that financial change is made by age 63 can affect them when they turn 65, and this is one of them. The tax returns you file starting at age 63 will affect your Medicare premiums. Why? I already said it, the two year lookback that Medicare does so. Want to talk about a. I want to talk about. Medicare. Real quick, Medicare. And did you know that 61 million Americans are covered by health care plans right now? That's a lot. So if you said out of the 350 million people in America, plus or minus. You know, that's going up every every month, I hear. So 18.5% of the population. Of that 350 are. Are on Medicare. And this is a study done by single care. Single care is the source for this data here. They did a they did a study here. And also we've got data here from the National Committee to Preserve Social Security and Medicare in 2020. So and then of those people that receive Medicare, there single care did a survey and 65% of the survey respondents said that they would not know which parts of Medicare they should enroll in. It is confusing. It's very confusing. And then almost four out of ten Medicare consumers.

Merrit Strunk:
Are enrolled in the other. Component, which you'd have to be hiding under a rock during the open enrollment state period. Medicare Advantage plans. And that stat came for the Kaiser Family Foundation in 2021. So it's confusing. There are Medicare advantages. What's going on there? So if you if you need help in talking about that, thinking it through, then give us a shout. You know, it's confusing and sometimes it's not the best choice a lot of people make. And those Medicare Advantage plans are there's pros and cons to that. So that brings us to some of the things that are near and dear to my heart. And if you're if you're 50 years old and your parents are still in good shape here, then you're probably going, That's not for me. I could tune out. That's not going to happen. All right. But I want to set the positioning in your in your gray matter here. There is a stat and I believe this is from Genworth and the kind of milestone research that they did and they said 70% of us at some point in our life are going to need long term care. You might say extended care. Right. And right now, 13 million Americans rely on long term care services, including around 7 million retirees. Right. They've got disabilities or chronic health care conditions. They just need some help. You know, Alzheimer's or dementia might be included in that.

Merrit Strunk:
Or it could just be old age. Also, 69%. And that's this is the stat I was talking about. Americans will require some sort of long term care assistance living during their retirement years. And a lot of that, folks will fall on you. That's right. I didn't say other people. I said you. If you don't have a plan in place, the burden of care may fall on to family members or even friends. Your loved ones that could be your spouse, that could be your parents, that could be grandma or grandpa. Your loved ones will then become unofficial caregivers, friends, family members. These unofficial caregivers are not paid for their service, and they're also referred to as informal caregivers. This is distinguished from the paid caregivers, such as home health aides and nursing home staff. Okay. So what if you become one of these unofficial caregivers? It's very possible. If your parent's going to live a long time, that could be you. If your spouse and you live a long time, that could be you. Or it could be your statistically, geographically closest female child. Right. Unpaid caregivers go through a lot of things when they're trying to do these things. Physical strain. Right. Emotional strain. Try to do everything for them. Their parents can be emotionally taxing. It can lead to feelings of stress, depression, anxiety. Right. How about financial strain? If they don't have the right provisions in place, and now that care that you may have to pay for and maybe not give yourself is costly.

Merrit Strunk:
It can create a financial burden on the entire family. Not just their generation. Your generation. Okay. And then the next generation, depending on the situation, it could be your kids taking care of you could be your taking care of your older parents and folks, if you think it's not going to happen, we're living longer. We're living a lot longer on average here. How about social isolation? Caregiving can be very isolating and can lead to unpaid caregivers feeling disconnected from friends or other social networks. I can't do that. I can't go there. I can't take a holiday. I can't take vacation. I can't go to the kids X, Y, Z because I am taking care of. Fill in the blank. Burnout. Ever had burnout? You're fried. There's been a statement that is, you know, folks who give care become as sick or sicker than the person they're taking care of. And a lot of times, folks, you know, later in age, you just don't want to be the one who's doing that care. You'd rather supervise the care, then give the care. I don't need to go through all the bodily functions that that would entail. You can imagine them. And you may think I'm being morbid, but I see this. I see it. And we're human and we're frail, and we get ill. And that tends to happen later on in life. And the bills go up. So in order to avoid subjecting family, friends to these potential stressors or even yourself, you should work with that person.

Merrit Strunk:
Now, if it's you and your spouse, good conversation. If it's your parents and you, great. Bring in a financial advisor now. When I said now, because time has a lot to do it to make sure you're prepared in the event you should require long term care in the future or your parents. I tell you what, when they turn 84 and 85 and you don't have provisions in place, it's too late. It's too late because time and money go together. You've heard me say it many, many times. Right. So how do how to pay for this? Let's go through a couple of traditional options here. Right. Purchasing long term care insurance, this type of insurance can help. Help. Remember the key word here, Help cover the cost of care in a nursing home and assisted living or in-home care. And like I always say, we're okay until we're not. And we're here until we're not. And we know who we are until we don't. Right. So long term care can help. Most of the times it can't take care of all of it. Right. Saving for long term care expense. You just set aside some money, you know, And in financial planning, we often look at and we use figures, estimated figures on inflation amounts, on what medical costs will take and can you be self insured through your normal investments and things.

Merrit Strunk:
So saving for using your retirement savings. You know, that would be a drag actually, to use your retirement to pay for long term care. Hopefully it's your own care and not somebody else's that you're now robbing your retirement because that's going to that's going to bite, too. That includes withdrawals from for one K as an IRAs. And if their traditional now you're getting taxed on that money because you need it. The last one is Medicaid, folks. And if Medicaid comes into the conversation about caring for you, that is, you're basically destitute. Medicare, Medicaid will not pay for long term care. That's a common myth or misunderstanding, and neither will Medicare. Medicare will not pay for long term care. Medicaid will. But you have to have no more than 2000 to your name. That's rough, right? If you're a veteran, which is great, thank you for your service, folks. Thank you for my freedom. If you're a veteran, you may be eligible for benefits through the Veterans Administration. That will help you through long term care. That's really, really great. And so if you don't know what your health care plan is, what's your health care plan? Not your health care coverage? How do you plan on funding health care? And will you have enough as you get older? Part of financial planning, cornerstone planning. And the other one is do you have a formal written financial plan, retirement plan, income plan, insurance plan? If something happens, it's going to be funded, right? If you don't know the Answer. to that or the Answer. is no, then you know, you've got to talk to somebody.

Merrit Strunk:
You've got to stop, step outside of the busy day and ask the right questions. And even say, I don't even know what the questions are. Merrit Can you help me with those? Can you get a certified fiduciary financial advisor to give you some feedback on that and help you walk through that process? If I didn't change anything today, Matt, where will I end up? If one of us died, where will they end up? If one of us gets sick, where will we end up? If someone loses our jobs, where will we end up? Write, check the boxes, go through it, take a look at it. So when you're going into that conversation, what's it like? Well, we'll take a look at everything. This is the home inspection for your financial well being. So we'll take a look at that. One of the things we offer to folks who are listeners and respond to the Retirement Unbroken show is a series of great reports, kind of essential reports. And we bind that all up together. We call it the retirement unbroken report that can be yours at no cost. Isn't that great as to establish your baseline? Take a look. Kick the tires. Find out if you're going to be okay, folks, why wouldn't you do that? And if you're sitting there with your spouse in the car and you're listening to this, why wouldn't you do it for him? Or why wouldn't you do it for her? Why wouldn't you make sure that everything's going to be okay and that you have done your planning? And when I say you and that I also, as I pointed out to the men out there.

Merrit Strunk:
Men. This is part of your promise to take care and love your spouse and your children and to provide for them. Have you often heard folks who older parents who go, I just don't want to be a burden to my children? I don't want to be a burden to my children. I understand that. But if you don't do the conversation, if you don't do the plan, guess who else is not going to do it for you? Nobody's going to do that for you. You have to own it. It is your responsibility to make sure that everyone's going to come out okay. If you've never been to our website, go there. W w w RetirementUnbroken.com. Look at the top. You can either fill in the form there. It says, Hey, contact me or you can click a button and set a calendar appointment where we can just chat for 15 minutes, Answer. any questions you want. Talk about the market, get you some Answer.s. We're happy to be a sounding board for our listeners. Our goal here is that you would have a retirement that remains unbroken, and that is our our wish.

Merrit Strunk:
Okay, So we are grateful and honored to have this time to educate you and to equip our listeners. That's our goal, make you more financially savvy. And I dare say we just went through some of those things that are going to affect people's retirements and their long term care and their financial future. A lot of stuff. If you were listening, maybe you took some notes, maybe went, Aha, I got to follow up on that. And if you did, we were we're going to feel good about that. We got some feedback from some of our listeners recently and they were like, that's a really educational we really enjoy it. So we love to get that feedback. If you need to chat with us, you can call 858521 9700. And like I said, we are honored and grateful to do this with you every week. So we want to make sure your retirement is forever unbroken. This is Merrit Strunk for the Retirement Unbroken show, and we hope that you jump on board, become part of the unbroken nation. We'll see you next time on Saturdays at 1:00 PM in San Diego. That's on 1170 AM and 96.1 FM or anywhere you absorb and participate on podcast. So you can go to Spotify, iTunes or anything like that. Look under Retirement Unbroken, look for Merrit Strunk and you'll find us. Thanks again. We'll see you back here next time.

Producer:
Thanks for listening to your retirement Unbroken. 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 complimentary no obligation consultation with merit. Visit RetirementUnbroken.com or pick up the phone and call 858521 9700. That's 8585219 700. Advisory services are offered through Momentum Financial and Insurance Services LLC. An investment advisor in the State of California. Insurance products and services are offered through Merit Strong an independent agent. California License number 07510 Certified Financial Fiduciary as a FINRA recognized Professional Certification.

Producer:
Do you have a vision for what you want your retirement to look like? I'm Matt McClure with a Retirement.Radio Network powered by a life planning for retirement can be overwhelming. A survey from Gobankingrates shows that one third of Americans don't think they know enough about retirement. And they're probably right. So if you fall into that category, how do you know where to begin? Well, you've got to know where you want to go before you start planning how to get there. That's where having a smart vision for your retirement comes in. Whether you want to be a jet setter during your retirement years. Want to take it easy in a quiet cabin in the woods or start a new adventure by opening your own business, you should set that goal and keep it in mind throughout your working years, retirement expert Dean Waguespack said during a recent TEDx talk.

Dean Waggenspack:
I want to challenge all of.Us to redefine retirement away from depart, remove withdrawal to a new definition, a blending of pay, passion and purpose.

Producer:
Still, retirement looks different for everyone. Sit down with your spouse and talk about your retirement goals. That will make it easier to determine how fiscally responsible you need to be now and how much income you'll need to make it happen after you retire. That's right, I said. Income. More and more retirees are finding that cash flow is more important than one big nest egg number.

Lee Baker:
That's when you want to say, Hey, listen, I want to start thinking about all of this accumulation that I've done through these decades of working. How do I. Begin to think about. Turning what I've saved.And what I've accumulated into paychecks after I.

Producer:
Retire? That's Lee Baker, president of Apex Financial Services, speaking to CNBC. He says annuities are a great option for most retirees to generate an income you can never outlive. That's especially important since life expectancy has grown over the years. So you'll need to plan for a longer period of time than you may think. So do you have a smart vision for your retirement years? That's a key question to consider as you start planning how to get there. With the Retirement.Radio Network Powered by a Life, I'm Matt McClure.

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:
Are you concerned about inflation, political uncertainty, rising taxes and how it could all affect you and your family during retirement? If you have an IRA balance over 400,000, you could save six figures in retirement taxes that you would be paying over a 35 plus year retirement. Find out how much you could save today by scheduling your free Roth conversion consultation with Merrit Strunk at RetirementUnbroken.com.

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