Episode Transcript
[00:00:00] Speaker A: Retirement is more than money. It's about family, freedom and legacy. Join Doug Vincent for the Retirement Income for Life Show Saturdays at 6am on Magic 102.3. Get the tools and strategies you need to turn your savings into reliable income you can count on. Visit retirementincome4life.com that's retirement income the number4life.com or call 301-242-3950 to schedule your complimentary consultation today.
[00:00:29] Speaker B: 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.
[00:00:56] Speaker A: We don't just build wealth, we build legacy. Welcome to the Retirement Income for Life show with Doug Vincent. For over 30 years, Doug has helped families right here in the D.C. area turn hard work into lasting income, helping you protect what you've earned, provide for your family and retire on your terms. This is where preparation meets opportunity. This is the Retirement Income for Life show. Here's Doug Vincent.
[00:01:25] Speaker C: Summer Slowdown or Summer Opportunity?
Summer Slowdown or Summer Opportunity?
How to stay ahead financially and checked in this summer season as we roll along into June, July and August. Welcome to the show. This is Doug Vincent.
Hopefully you are getting some sun in as the summer begins and you are checked in to your vacations and other things like that. But hey, you definitely want to stay checked in to your finances. Shout out to everyone in the DMV area, Washington, D.C. maryland, Virginia.
We are excited to be with you. Another day and another week, another month of us helping people in the DMV with their financial planning their Retirement Income for Life strategies.
Please don't hesitate to reach out to us for a 100% free consultation. You can get us by phone 301-242-3950. You can always go to our website which is retirement income the number four L I F E.com tune into our YouTube channel every week new episodes and hey, don't hesitate to reach out to us this summer as we want to make sure you know, hey summertime we can sometimes take a break from our financial planning so we want to help keep you accountable and keep you connected to your ultimate retirement goals.
Once again. 301-242-3950 Retirement Income the number4life.com on the web and also we have a free download if you you go to our website.
We have a free Retirement Income for Life Survival kit absolutely Free. You can download that today right at our, our website. For today's show. We are going to make sure that your financial plans do not stall this summer. We're going to make sure that, hey, as you move into this summer break, you know, that no surprises show up for you as a investor with, you know, the dramatic swings that can sometimes happen from May to October, definitely August, September, June, July as well.
We'll pick up also with some estate planning reminders before you go on vacation. You know, in the summertime, it's also a good midway point. You know, Jim's a good midway point to do some insurance checkups that most people ignore. A lot of people ignore their insurance around this time. And you know, your insurance is a, you know, coverage is a living layer of your financial plan.
And the summer's an ideal time for a mid year insurance review. All right, we'll wrap up today with, you know, why early planning lowers holiday stress.
Why? Why early planning? So planning now before you get to Christmas, you know, planning in July. Right.
You know, it's going to lower your holiday stress. Americans who arrive in January with their savings intact are almost always the ones who started their holiday financial planning during the summer. Okay, this is something that we recognize and we'll show you exactly, you know, how to do that. All right, here's our financial wisdom quote of the week.
Robert Kiyosaki says, more important than the how we achieve financial freedom, more important than the how we achieve financial freedom is the why.
Find your reasons why you want to be free and wealthy. Okay? Hone in on those reasons.
Not so much the how you get there, but why are you getting there? Why do you want to be free? Why do you want to be wealthy?
And the summertime is a great time to discuss your retirement planning, your wealth planning. And we don't want your planning to stall just because it's the summer.
[00:05:58] Speaker D: Right.
[00:05:58] Speaker C: It's got a way of pulling attention away from some of the matters that are for long term financial security because you're living in the here and now, you're at the beach, you're doing different things like that.
And so we want to make sure, you know, as summer acts as a powerful psychological, temporal. Temporal landmark, you know, a mental fresh start that prompts people to treat financial discipline sometimes as less urgent than they possibly, you know, should. Right.
If you are a person that, let's just say procrastinates in their personal finance, you know, the summertime is really going to create procrastination. Right. Studies confirm that individuals with higher Procrastination tendencies are significantly less likely, you know, to have wills, to have trust, to have retirement plans, you know, for you as a retiree or a, you know, pre retiree, even a short summer pause of your financial attention could delay some of the decisions about, you know, RMDs. Or you might want to do a Roth conversion. You know, even, like we said, with insurance, you know, a lot of people right now should be reviewing their beneficiary, you know, doing beneficiary reviews to make sure that your life insurance beneficiaries are up to date. Okay, at this time. Once again, as we hit the summer, recent research show that Americans plan to spend this summer 13% more on summer travel. Okay? People are wanting to get out and about this summer, right.
A peer review study found that financial procrastinators are significantly less likely to prepare for, as we said, wills, trust plans, you know, of retirement. And their overall retirement satisfaction is not as substantial as those that are getting this stuff done, you know, today, tomorrow, while you are on, let's call it a summer break.
[00:08:16] Speaker D: All right?
[00:08:16] Speaker C: Finally, studies in behavior finance confirmed that breaking complex financial tasks, breaking them down into smaller manageable steps. We talked about this last week. One step at a time, you know, this is going to help you overcome this seasonal financial disengagement. Don't check out from your finances this summer, right.
Once again, that mid year plan, you know, is going to, you know, help you, you know, big time over the summer. And so why does this matter? You know, a mental summer checkout can cause people to miss critical mid year windows, tax loss, harvesting Roth conversions, your Medicare premium management, right?
And as you get into the summer spending patterns, you know, it might feel harmless, but your travel upgrades, your entertainment, the spontaneous purchases, the budget just went out the window because it's summertime, want to have fun, you know, hey, I want to have fun too, but not at the expense of my retirement savings. And you know, these habitual annual patterns that you continue to see, you know, plague, you know, Americans every single year when they hit the summer, okay? So that's why over and over we're telling you a trusted financial professional is one of your greatest allies. And staying on track during, you know, especially the summer months, scheduling a mid year check in with your financial advisor, you know, you know, with someone that you talk to, you know, keep your goals firmly on course, you know, and leave plenty of room to enjoy the summer. But make sure you are talking with somebody, some of your allies related to, you know, financial planning, your retirement plan. So don't let that summer sunshine stop you from talking to your advisors to talking to us. You know, As I said, 100% free consultation, working with us.
301-242-3950 or our website, retirement income, the number 4L I f e dot com so you can always reach us. And we're not taking any days off. Okay? We, we are definitely helping people all through the summer, you know, and the market's not taking any time off. Okay.
The stock market is going to be open every day this summer except for holidays and of course, weekends. Right. And summer market swings can quietly shake your retirement income. If you're not, if you're just relaxing in the summer months, not paying attention to your portfolio, you could truly be in a position to where, you know, there's some consequences to that posture of you just, you know, taking the summer off of, of watching the market. And so we don't, we definitely don't want to do that. We want to make sure we, you know, are keeping, keeping in view the big picture. Okay. S and P. Let's talk about S&P 500.
During the months of May through October are roughly giving you a rate of return of around 3%. Okay. For May to October, on average, 3% is where you might see a rough percentage of how the market is responding.
6.3% between November through April. Right.
There's seasonal gaps. Right? There's, you know, August and September are historically the weakest months for the S and P. You know, Wall Street's in the Hamptons, you know, you're on vacation, you know, number of different reasons why. But, you know, for you as a retiree, market volatility can create what we call sequence of returns risk.
Sequence of returns risk because of the volatility, because you might even be taking money out in a down market that can really affect your principle on a, you know, over the summer. And so where losses during income drawing years can permanently reduce how long your money lasts, regardless of the long term market price performance. Okay? You got to be very careful over the short term, especially if you've already started taking, require minimum distributions. If you've already started taking money out for retirement, you know, you've got to make sure your, your plan is intact, okay? And so most effective response is to ensure your financial plan has the right protective structure in place against sequence of returns, risk against volatility. You know, like we said, you know, the summer months can bring some unwelcome surprises to a portfolio that's not prepared. All right, so here's here's some facts for you going back to 1945. It shows that through May through October, there's an average of about 2% return.
And then below that's, you know, well below that 7%, you know, from November through right through April, you know, so 2, 3% through May, October, November through April, you're gonna see close to 7.
So a safe suggested withdrawal rate for 2026. So if you were thinking about you've gotta take money out of your 401k, your qualified plan for 2026, a safe percentage is coming in from Morningstar's research at 3, 3.9%. It's probably the highest safe starting withdrawal rate for any retiree right now that's seeking consistent inflation adjusted spending over a long period of time. A 30 year period of time may be what your retirement is. You may have a full 30 years in retirement. And so that's going to give you 3.9% over a 30 year period, says Morningstar, is about a 90% probability of success. Okay? So keep in mind that the S and P has generated an average annual return of 10% since 1957, okay? So if you held your money from 1957 to 2026, on average there was a 10% rate of return, okay? And Vanguard, like Morningstar, they confirm a 3 1/2 to 4% withdrawal rate can support, support a 30 year retirement. The, the challenge comes in once again is with sequence of returns risk, okay, that's a 10 average, okay? But what happens that year when the market went down 20%, you know, and then it averaged out to 10% because it went up, went up, let's, you know, double that the next year or, you know, then the year before, year after that it went down 10%. Then when it went up, then it went up 20, you know, so the average is different than what you're dealing with month to month, okay? And so drawing retirement income from your portfolio during a summer market downturn, okay, that may force you to sell at prices that you really don't want to sell at, okay? It's going to be hard to make up for a systematic withdrawal and a market downturn that, as I was saying, might go down 10, 20%, you know, so, you know, things of, of that nature are something that you want to make sure your portfolio has the ability to recover. You also don't, you know, you want to stay invested. You do want to, if you have to take money out, I understand.
But moving to cash as well at the wrong time, you know, hey, though, the market went down 20%. I'm moving everything out of the market to cash. You know, you're having an emotional reaction and you know your portfolio wasn't structured for, for protective measures. And when, when the stock market rebounds, right, You've now sold low and now you're buying high. Okay. You have to keep a longer term perspective in the market. You know, if you're going to leave money in the stock market, it's got to be a long term approach with protective measures inside of your portfolio. They're going to be seasonal market patterns that should motivate you to review how your assets are allocated, where your income sources are coming from. You know, the liquidity Runway before summer arrives needs to be put in place. You need to understand that Runway before the volatility shows up and you look at your statement and you, you know, you, you're stressing out, okay? It's time for a stress test with your financial advisor or people that you ally with for retirement income planning before this summer volatility hits, okay, it's, it's seasonal as we said. It's, you know, underway market downturns, you know, you know, I have no idea where the market's going to be between now and September. And that's the whole point. Okay. No one knows from day to day, but history says markets can slow down okay, during the summer. So for you, you know, you want to build a portfolio that can withstand the market downturns, give us a call. 301-242-3950.
Go onto our website and sign up for a 100% free consultation.
We can help you with some of the things that you are thinking about related to the summer months and making sure you stay on track. Okay. For our DMV listeners, as we always remind you and those that, you know, would like to come to our office right here in Greenbelt, Maryland or set up a zoom meeting. You know, we always start with you, okay? It is your goals, your concerns. What kind of retirement lifestyle do you want to have? You know, a deep dive. We take into the current plan you currently have and are there any gaps or opportunities that you know, we need to work through while we personalize your strategy and get, you know, your strategies in place. And you know, for retirees we're really focusing in on income and security, you know, with some growth. And if you're a pre retiree, we don't want to cut the growth off too soon, but we also don't want the volatility to take some of those gains away as you are 1, 2, 3 years away from retirement. We want to answer all of the questions that you may have related to, you know, you're here, you're now, you're tomorrow, and most importantly, you know, you got to take some action, okay? You've got to put this in place.
You know, a great plan is only going to work if it's implemented, okay? And we'll here to guide you every step of the way. And so that's 301-242-3950. Leave us a message and we will get with you on scheduling. 100% free consultation or you can always register right online. Zoom. Or right here in our greenbelt offices. All right, so there's a 60 day sweet spot and there's small, we call small mid year moves with big long term payoffs. Okay, 60 day sweet spot.
[00:19:54] Speaker D: Right?
[00:19:54] Speaker C: Let's talk about that. Okay? You don't need a dramatic financial overhaul to move the needle on all your retirement security, okay? A handful of strategic mid year steps. You take them now in June, you take them in July, okay? And this can have some outsized positive impact on your taxes, your health care costs, your retirement income, you know, for, for years to come. So here, here's the big picture. June is an ideal planning checkpoint, as we've been saying. You know, you've got enough history to access, you know, assess your income, your tax picture. You know, it's enough time remaining in the year to make some adjustments before December.
You know, it's a strong window for those of you that may want to consider Roth conversion. You know, you've got your taxes done. We can now look and see how we can do some, you know, clearer planning, you know, as you approach next year, rebalancing your portfolio, okay, mid year asset allocation changes. Maybe your risk tolerance isn't the same. You know, the market has moved up, it's moved down, you're getting older. Maybe there's some shifts that you need to take some risks off the table and have less exposure to, to mark to the market, your RMDs. Okay, we, we always talk about those.
You know, if you are approaching 73, that is your required minimum distribution age where some money has to be taken out of your qualified plans.
75 is coming quickly as well for some of us that are younger.
But Roth conversions, you know, at mid, the mid year point, you know, is a good time that, you know, the tax laws are in place.
You know, you, you have to determine what your withdrawal rate is going to be. Is there money that you need to Reposition that you can defer taxes even longer than your required minimum distribution.
You know, now is the time to be looking into that as well.
Another big factor in the summertime is when are you going to take your Social Security benefits? Have you delayed, you know, are you taking it at 62, 63? Are you waiting to your full retirement age? 66, 67? Or maybe, you know, hey, longevity's in your cars and you're going to wait all the way to 70. You know, this is a good time to think through that.
And you know, the, on SSA.gov, there's a calculator that you can plug in numbers to really understand how each year that you might not take Social Security, that's an 8% annual compounded benefit and a lot of things that you want to check in during the summer to make sure you're making those decisions even related to Social Security.
All right, Retirees also, who maintain one to three years of, you know, spending, maybe you want to increase your emergency fund, you know, after you've got enough and you're checking and savings, then looking into brokerage accounts or short term CDs, or, you know, higher yield savings accounts. You know, this is why this matters so much.
You know, this is why these reviews are so important.
[00:23:17] Speaker D: Okay.
[00:23:19] Speaker C: There are a lot of decisions that you have to make along the way and some things I'm sure may have changed. You know, how about your charitable giving? Are there some tax breaks you can receive from your charitable giving? Do you want to help out, you know, a cause? You know, what are some of the things that you're doing related to, as we even said, tax harvesting or, you know, charitable gifts giving, you know, things of that nature for near retirees, you know, mid year is the right time to reassess your investment strategies. Right. You, you may need a more balanced approach. Do you need more bonds? You know, do you, do you need less bonds? You need more equities? You know, should there be some cash, you know, critical shifts in the market related to your age and your risk tolerance. You know, you want to confirm your allocations around this time. Very, very good time to do that.
And the, the danger is waiting until year end to address your tax plan. It's too late, right? To address your RMDs, your, your IRMAs, you know, all your Medicare issues. Are your Medicare premiums going up? You know, these are conversations once again in June and July to have with your financial advisor, have with us, you know, we are here to help you. And the next 60 days could really shape your retirement finances for the next decade. Okay, don't hesitate. Give us a call. 301-242-3950. Visit our website Retirement Income the number 4L I f e.com Schedule a Zoom meeting. Schedule an in person meeting right here in Greenbelt, Maryland. Jump on our calendar link. You know, we, we would love to, to work with you and help you, you know, put these things together during June and July. All right, so as we approach these two, you know, we're already in June, as we have mentioned, you know, July is, is fast approaching us.
And so before this summer is out, you know, before you take your vacations, before you, you know, even, even if you're already doing it, you know, just, just make sure you have put on the calendar some time for this seasonal review. Right. And one, one other thing with this that, you know, before the vacation season sets in. What about your estate plan? Right? We hadn't mentioned that. Right.
Every estate plan, you know, might have a will trust, power of attorney, you know, beneficiary designations. How about your life insurance policies? Do they need to be reviewed and, you know, updated related to your life insurance? You know, how about the powers of attorney? You know, your mom, your dad, you know, someone that needs assistance in your family. You know, this estate planning gets overlooked all the time and then people get sick or decisions need to be made and the legalities haven't been put in place.
Arp, you know, is very, we're very familiar with AARP and they note that if your power of attorney is more than a few years old, okay, if you've moved states, maybe you, you know, you're just new to Maryland, right? Or you, you're moving outside of Maryland. You know, if you own property in multiple states, it's worth your time to review and update, you know, your estate planning. Okay? All of this matters because, you know, you just never know when something may happen related to estate planning. You know, a loved one to get sick, someone, you know, their documents were not updated. You know, another marriage happened, another divorce happened, you know, someone dies. Okay? And so these healthcare directives that are in, put in place, you know, medical professionals may be sometimes legally unable to honor, you know, your wishes if an emergency shows up and you know, you have some issues with a family member, you know, some of this is irreversible. These decisions, you know, are irreversible. A lot of times, you know, outdated wills, you know, beneficiary designations that weren't updated. You know, your estate plan, it wasn't reviewed okay. You know, your financial and legal team can help complete most estate planning reviews and the necessary updates, you know, in far less time than you spend packing for vacation. Right. We can, we can definitely help give you peace of mind. And you know, and you know, this is, this is what will pay dividends for you down the road today, tomorrow, and in the near future, the summer months, June and July, these next 60 days. Please don't leave for summer without making sure your estate planning is ready to be protected for the people that you love. Give us a, give us a call. 301-242-3950.
Go to our website RetirementIncome. The number 4L I F E.com we are ready to help you in this area.
[00:28:42] Speaker A: You spent decades saving, but do you know how you're gonna pay yourself in retirement? Stay with us. There's more retirement income for life after this.
[00:28:54] Speaker D: Every July 1st, baseball fans are reminded of one of the most famous contracts in sports history. It's known simply as Bobby Bonilla Day. At first glance, it sounds like a punchline. A retired player collecting a paycheck long after leaving the field. But behind the headlines lies a powerful lesson about money, time and long term financial planning. I'm Jim Tarabokia for the retirement radio Network, powered by AmeriLife. More than two decades after playing his final game for the New York Mets, Bobby Bonilla still receives a check from the team more than $1 million every year. Those payments began in 2011 and will continue through 2035. Back in 2000, the Mets owed Bonilla nearly $6 million. Instead of paying him immediately, the team agreed to defer the payments for more than a decade. In exchange, Bonilla would receive annual installments with interest, ultimately collecting far more than the original amount owed. Front office sports writer Eric Fisher explains further. This was a very unique deal.
[00:29:53] Speaker A: At the time.
[00:29:53] Speaker C: He still had 5.9 million left on his contract, and there was a mutual desire to not pay that all out in one lump sum.
[00:30:03] Speaker D: Whether the Mets made the right decision decision or not, still being debated. But the arrangement highlights a principle that financial professionals discuss every day. The value of future cash flow. Many investors focus on growing assets, but successful retirement income planning is really about creating dependable streams of future income. Annuities, for example, provide income in the form of regular payments. And as Athene Chief operating officer Michael Downing explains, finding the right annuity could be a game changer.
[00:30:30] Speaker B: They should generally be an anchor of almost any portfolio in terms of the preservation of wealth. And so the things that customers should look at is the type of protection they need.
[00:30:39] Speaker D: As retirement approaches, investors face a critical question. Should they prioritize maximizing today's wealth or building sustainable income for the future? The answer often requires balancing both. So whether those payments come from Social Security, pensions or annuities, the goal is similar. Turning today's assets into tomorrow's paycheck. Bobby Bonilla's contract is an extreme example, but it illustrates an important point. Sometimes the most valuable financial asset isn't a lump sum. It's a predictable stream of income that arrives year after year. Because in the end, smart portfolio management isn't just about accumulating money. It's about designing a strategy that supports the life you want to live. And that's something Bobby Bonilla reminds us of every July 1st for the retirement Radio network powered by Amerilife. I'm Jim Tarabokia.
[00:31:28] Speaker A: It's not about how much you have, it's about how much income it can generate. You're listening to the Retirement Income for Life show with Doug Vincent. Over 30 years helping families prepare for retirement. The right way. Let's dive back in.
[00:31:44] Speaker C: It is time for a mid year insurance checkup.
How about those insurance policies that are collecting dust? Okay, do you know how much insurance you are even covered for?
You know, has the premium gone up each, you know, each month or, or should I say each year, you know, is it getting more expensive? Are you, do you have life insurance? You know, so many Americans don't even have life insurance. I was just on the phone with someone today who son has passed and the family does not have life insurance. You know, this is time. It is time for a mid year insurance checkup, folks. You have to be insured.
You have to protect your family's financial future.
And you know, this is something that, you know, if you already have it, great. You know, it's always good to review and look at the big picture for your insurance policies mid year. Right?
Are there gaps that need to be filled? Okay, do you need to remove some of the policies because they're outdated and you know, the riders aren't something that can be helpful for you now? The face amount's not enough. You just had more children and you know, life is lifing and you know, this is something you must review, you know, and a life insurance policy you purchased decades ago may no longer serve the same purposes, especially as you prepare for retirement.
Some of you bought big term policies and now you need a smaller whole life policy to make sure you have a dignified burial. You know, some of you Want big whole life policies because you want to leave money to charity or grandchildren or your, your, your children, you know, have you done a review now that you're moving into a retirement posture, right? Is, is the same coverage that you had while you were working, while you were raising your family, is that the same amount that you need? Higher, lower now that you are preparing for retirement? Also, long term care insurance is among the most overlooked policies for retirees. Okay?
Long term care, if you needed to go to a nursing home, if you wanted home health care, if you needed assisted living, Medicare is not going to pay those premiums, okay? You're going to have to plan accordingly related to long term care. And I, almost all the appointments that I have, the workshops I do, I always ask, has anybody in your family, have they experienced a long term care need? Okay? And almost all the time is someone's aunt or someone's mom, someone's dad, could be you that is experiencing it now.
And you didn't want to move in with your kids, but you had to, okay, you, you didn't want to go to that nursing home, you wanted to stay home, you didn't want to, you know, have to hopefully get Medicaid. You, you really had other retirement dreams. And then here comes this long term care challenge. And one out of two Americans over the age of 74 is gonna have some kind of long term care need. Now that statistic is updated all the time. You can google the percentages, you can google the, the, the ratios in the state of Maryland, I know that it's between somewhere between six months and 16 months of a generalized amount of time that someone may need long term care. So is long term care expensive or is a long term care inexpensive?
Think about it. Long term care is expensive, okay? And if you hadn't factored in a monthly premium, you know, from your Social Security, from your retirement planning, you know, you haven't died. This isn't a life insurance benefit. You know, you, you, you, you may need living benefits and you may need long term care insurance or at least long term care planning as a part of your overall financial plan as a retiree. Okay?
This is one of those threats, okay, Is it, is there's always threats to you fulfilling your retirement income for life dream, okay?
And as I said, Medicare, you have to be, literally have no money to be able to get benefits for long term care, you know, in this country today. And so as a part of your life insurance planning for term or whole life, also consider some long term care in there as well. At least have the conversation related to long term care along with life insurance. Okay, let's talk about Medicare for a minute. So the standard Medicare Part B premium in 2026 is $202.90 per month. So that's, that's your standard across the board for 2026.
But the IRMAA surcharges could drive that cost as high as 689.
Okay. You could go from 200 to 600, depending upon your IRMAA surcharges. You know, this is per month. For individuals in higher income thresholds, that potential increase, you know, can be more than $5,800 a year. Okay. And so one of the things that we help people do is understand their provisional income and understand their modified adjusted gross income. Because when Medicare takes a two year look back on your income, that's where your premium is gonna come from, not just from your Social Security or your pension.
They're bundling everything in there. And if you took out big amounts from your qualified plan, that's a part of that income test. Okay? And so those surcharges, they'll kick in for single filers with modified adjusted GROSS Income above $109,000. So once you, if you took in over 109,000, expect to see your Medicare premiums going up. You're going to be exposed to that MAGI amount then recalculating the amount that you have to pay for Medicare. Right. And Part D, you know, that's your prescription.
That's between $14.50 and $91 a month. Okay, once again, the standard 1450 for Part D, Part B, 202.90. But depending upon your, you know, modified adjusted gross income and all the money that's coming in your prescriptions could be up to $91 a month. You know, Part B, remember, $689, you know, and so you want to know what kind of income thresholds are in place so that you're not confused why your Medicare premiums went up 109,000 and then for married couples, 218,000.
Okay.
This is another planning time. You know, June and July is another time to plan out, make sure you're not in a situation where your modified adjusted gross income now costs you more for Medicare. Okay. It's happening every day of the week and people are getting surprised. They take a two year look back, and once they see that your modified adjusted gross income has gone past those thresholds, you will be getting a higher bill, more than likely for Medicare. Okay? And so that's planning that Needs to be done related to that. Okay. Fidelity says that in 2026 retirement planning guidance, they're, they're recommending specifically protecting your portfolio from long term, you know, from these high long term care cost and these, you know, you taking in too much provisional income and you want to also identify, you know, the risk, the financial risk that you're taking now that you are a retiree and these market related threats for your risk tolerance for your sequence of returns, even the risk of you bringing in too much income for now, you know, you're paying more Medicare, but then also the proper review must be done so you're not paying too much in long term care costs. You know, some people have the money to protect themselves with long term care insurance and other types of planning, but you want to make sure in 2026 that you're not being overcharged for that. Okay. And so you know, it matters because you know, if you're doing this planning, you know, and you're 55 or over, you know, you're, you're planning for long term care. 55 now that you're 68 might have changed. Okay. And so these reviews around this time, you know, I put in place for, for my mom, I got a long term care policy for her at 63. She's now 89 years old. Okay. And so her planning and our planning for our household, it's looking a little different now than it did back when she was in her 60s. And so that could be for you as well doing that review confirming that, you know, this plan is still serving, you know, your, your planning needs properly. You know, are there any gaps, is there overpayment? You could be paying premiums on coverage you've outgrown. You know, you might also be significantly, as we mentioned, under underinsured for long term care, for life insurance. And this will actually expose you and other people that are helping you to, you know, substantial, you know, surprises if you don't look at these reviews on a regular basis. Right.
You know, so for you as a Medicare beneficiary, a mid year income review can help you anticipate whether your 2026 income is on track to trigger higher 2028 IRMAs. They always take a two year look back. Okay. Those surcharges, you know, the review would just gonna give you time to adjust and you know, your income strategy before the year closes may need to look a little different if you're falling into that category of that two year look back. And then now, you know, those premiums are gonna be Higher. Right. Your insurance portfolio is a living layer of your financial plan.
Right?
Let me say that again. Your insurance portfolio is a living layer of your financial plan. And surprisingly enough, spending an hour with your advisor over the summer can potentially put you in a place where you feel very, very comfortable with your retirement strategies. Even before you retire, even before you walk out that door.
We want to make sure that you have allies around the proper insurance coverage.
And you want that insurance coverage and that planning, you know, to grow as you get older. It might evolve, you know, just evolve in different ways as your retirement evolves.
Check up on that today. Do a life insurance analysis. Right? And you know, it could be potentially saving you thousands of dollars because of that review.
Give us a call, 301-242-3950. Go to our website, Retirement Income, the number 4L I f e dot com.
You can register for a free, 100% free consultation right on Zoom or in our local offices right here in Greenbelt. We'd love to help you. No obligation, just a little bit of time, Right. And making sure that you are in position to win as we go into these summer months. All right, Christmas. Let's call this Christmas in July.
Right? Christmas in July. Starting now.
Starting now. June, July, Right? This could be the best gift you give yourself before Christmas. Okay? I know you're going to do all types of Christmas shopping and planning, you know, and the holidays will be here before we know it. But let's call this Christmas in July. You know, it may feel early to think about the holidays in June and July, but the financial data is clear. Let me tell you what it says. It's, it's consistent that the people who arrive in January with their savings intact, their stress levels manageable, are almost always the ones who start their holiday, holiday financial planning during the summer months.
Did you hear what I said? The people that arrive in January, okay, with savings intact, stress levels manageable, okay? Start doing some financial planning in June and July. Okay, here's the big picture. More than half of American consumers now begin their holiday shopping in October, you know, sometimes earlier, according to the data from the National Retail Federation. And the trend reflects a growing recognition that late planning carries measurable financial costs. Okay? You gotta get it done early. And that's why I keep saying the summer months represent a natural and chronically underutilized window for establishing a holiday savings goal. Right?
Setting this up now, beginning with urgency in the summer so that you are not stressed out in October, November, December. Right?
Holiday spending, okay? You know, and getting ready for the holidays over the summer, Right. Take significant pressure off of retirees, especially retirees that you're living on a fixed income now. Okay. You might be living off a third or fourth of the money that you are used to. You still want to give and you still want to contribute to that Christmas holiday planning and giving, right.
You got to start planning now.
You're not in the same financial position, more than likely that you were 10 years ago.
And so Christmas in July planning is less about the early shopping and much more about protecting your financial plan retirement strategies that you're trying to put in place. This spending can definitely provide some challenges. And then now you're stressed out and anxious because you're looking at more month than money. Right?
All right, here's some more key, key factors related to retirees and, you know, things that are going on nationally. National Retail Federation reports that holiday consumers are planning to spend an average of $890 per person in 2025.
That same, you know, group of people surveyed by Gallup, you know, they're saying Approximately a thousand and seven dollars. Right. This is in 2025 figures. You know, there's in retirees that are on a budget, you know, that's pressure for, for our retirees and fixed income. Okay. This can create a disproportionate structure, strain on that retirement budget. Okay. Two in five Americans, or 42%, plan to scale back their holiday spending in 2025 compared to the prior year.
And among those cutting back, nearly half said they were buying fewer gifts and over a third were opting for less expensive ones. Okay. And new research shows that well over half of adults say that they will begin holiday shopping in October. Right. Or hopefully even earlier, while only 13% say that they will start in December. That's a good number as. So that means, you know, at least 8 out of 8.5 out of out of 10 are getting this done early. Okay. We're planning early. As a retiree, it matters because now I need to make sure that my overspending, you know, I've got to have my spending more predictable. Okay. I've got to prevent financial disruptions, you know, as a retiree. Okay.
Also credit cards, okay. If we're doing impulse buying in December, November. Right.
Credit card debt is going to accumulate a lot more than if you're planning it out over the summer leading up to October. Right. Credit card debt accumulated in November and December 20 typically carries interest rates that can turn an $890 gift into 1100 dollars. Then $1100 obligation. So you started 890 on that credit card, here came the interest and now you owe $1,100. And guess what? That's why you're stressed in January and February.
That's why you're anxious in the beginning of the year. A cost simple savings plan, game plan for holiday shopping in June and July can eliminate that anxiety, can eliminate you showing up in January and February stressed out. When your holiday spending comes from a dedicated purpose built savings account rather than your investment port portfolio or even your emergency fund, you preserve the compounding power and stability that your retirement savings is going to depend on. Okay? This is why you got to start early, right? This is why you've got to put things in place now, okay? Starting early gives you the psychological benefit of intentionality. Okay? You choose how to express generosity on your own terms rather than reacting to retail pressure in that, you know, those frantic final weeks of the year. Okay? And so that's why we, we continue to say on all of these topics, have a brief mid year conversation with your financial advisor. Okay? And in this case, Christmas in July, what's your holiday budget going to be? You know, what stands out? Do you have, did you have another grandchild needs to be taken care of, you know, what are you getting for your children?
You know, what are you getting for your spouse? What are you getting for yourself? You know, have you mapped out the planning steps to take, you know, related to your Christmas and in July, Right?
This is going to protect not just December, but every holiday season following.
So this is a pattern. Now you put in Christmas in July, you've set out your savings and your planning and you've got, you know, you've protected your retirement assets, you know, what your fixed income is.
This is something that, you know, literally you can have a pattern in place that you make sure you are doing, you know, on a year, year by year basis. Right? So once again, give us a call. We are helping, you know, individuals with their Christmas in July, their budgeting, their retirement planning, their estate planning, their life insurance planning.
We are doing this on a daily basis. 301-242-3950 always our website where you can download your free retirement income for life survival kit.
Retirement income the number four L I F E.com don't hesitate to go schedule your zoom meeting with us if you want to come in person. If you're in the DMV, we do work in all 52 states. But if you do want to actually come into our offices, we are available, you know, for that as well.
So we don't want your financial planning to stall this summer, okay?
We've been breaking this down psychologically, you know, why people check out during the summer. You know, it's the warmer months and you know, we want to pause and, you know, do this, you know, after the summer's over, you know, we do, we go through a mental checkout and guess what? The stock market's not going to be closed in the summer, okay? The volatility of the ups and downs are still going to be there just because it's warm, okay? You can't check out, okay? And you can't. Your retirement future is depending upon this, you know, and we recognize the market volatility, you know, it and we recognize the ups and downs. You know, we, we discussed the track record of, you know, how, you know, August and September. Sometimes we're surprised at the rates of return that, you know, that show up, you know, between, you know, August and September. And sometimes these, these real big market swings that, you know, you just can't ignore this. You cannot check out of the volatility of, you know, just because it's summer, you know, we've also reminded you about your estate planning. Okay? Do you have that will in place? Do you need a trust?
Do you need a power of attorney?
Have you reviewed your long term care needs with your loved ones? You know, what's the plan if you had a long term care here need? Okay, you know, show of hands, show of hands dream retirement is, I'm moving in with my kids.
No, no, that's not a part of your dream.
It can possibly be that way if you don't have long term care planning taken care of by default. You know, long term care is expensive. Nursing homes, assisted living, even home health care in Maryland might run you six, seven thousand dollars a month. You've got to put these things in place.
The summer months are a good time to take a look at these. You cannot ignore your life insurance, okay?
You may have too much coverage, you may have too little, you know, have, have your, has your insurance planning changed since you were, you know, you were 55 the last time you updated it. Now you're 70, you know, or 65, you know, when was the last time you did an insurance? A life insurance, a whole life insurance, a term insurance, a long term care insurance update checkup, mid year reviews are a great time for this to take place. So your estate planning, your long term care planning, your insurance planning. And then finally we mentioned that a lot of you really need to have this Christmas in July.
You need to start planning on your holiday list of who you want to buy things for now that you're moving into a fixed income. Or maybe you are already on a fixed income and you didn't know why. Every January and February, you're stressed out, okay? It's because you started your planning late. It's because you're impulse shopping, okay? The Americans, I'll say it again, who arrive in January with their savings intact are almost always the ones who started their holiday financial planning during the summer, okay? They got it in order during the summer. And like I've been saying to you before, we show you exactly how to do that, we'll walk through your budget, your retirement planning, your new way of living. Now that you are a retiree, our listeners can start working with us today and what happens when we sit down together to review your retirement picture.
We want to know, you know, the why of your processes. You know your retirement planning is valuable. We start it is all about you. We take the time to truly understand your goals, your concerns and the kind of retirement lifestyle you're working toward, whether that means travel or time with family, you know, giving back, you know, just simply having peace of mind, Right? We want to take a deep dive with you into your current plan, reviewing your investments, your income sources, your risk exposure, your taxes, you know, what, what strategies are you working through now? You know, you need a clear, personalized strategy.
We identify the gaps, whatever opportunities may not be there. We want to make sure that we've touched on those.
And especially for retirees, focusing on asset preservation, income distribution, your accumulation strategies that you work so hard to accomplish all these years are not the same strategies when it's time for income distribution. Okay, so we want to answer all those questions along the way. But most importantly, you have to take action. You have to move forward. It starts with a conversation, but then you must decide to take action. 301-242-3950 always at our website, retirementincomethenumber4l I f e.com thanks for listening to the
[00:58:27] Speaker A: Retirement Income for Life show at Greater Washington Retirement Income Solutions. It's not just about retirement. It's about building income, protecting your family and creating, creating a legacy. Learn more at RetirementIncome4Life.com that's Retirement Income the number4Life.com or call 301-242-3950 to schedule your complimentary consultation today because your future deserves a plan you can trust.
[00:58:56] Speaker B: Greater Washington Retirement Income Solutions may conduct life insurance and retirement planning services in Maryland and may be licensed in other States. Financial professionals cannot conduct life insurance or securities business in states in which they are not licensed. This content should not be construed as an offer for the sale of insurance or securities products in unauthorized States or countries. Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice. Neither Greater Washington Retirement Income Solutions nor its representatives provide tax or legal advice. For answers to specific questions and before making any decisions, please consult a qualified attorney or tax advisor. Investing involves risk which includes potential loss of principal. Guarantees are subject to the claims paying ability of the issuing insurance company not affiliated with or endorsed by the Social Security Administration, the Centers for Medicare and Medicaid Services, or any other government agency.
