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: Welcome to the Retirement Income for Life radio program.
Once again, this is Doug Vinson back at you in the DMV for another episode of our Retirement Income for Life program. And as I have said to you before, we are here to schedule complimentary consultations for you. If you've been listening and understanding what we've been doing really for the last 30 years right here in the DMV, we're willing to work with you at no cost, no obligation.
We want you to have a plan that will position you for Retirement Income for Life. Also listen to us in previous episodes on our website.
Just search your favorite podcast, Retirement income, the number four for life. Your YouTube subscribers, people that use YouTube as well, please don't hesitate to contact us with any questions.
We are here to help you, especially if you are in the DMV area.
Our office is in Greenbelt, Maryland. Phone number 301-242-3950 and once again, you can visit our website at retirementincome the number4life.com so today's show, here's an overview. We're going to talk about this inflation, you know, we'll talk about how Social Security isn't keeping up with rising prices.
We're going to talk about the Sandwich generation. Many Americans are stuck caring for their older mothers, their older fathers, as well as now caring for their teenagers and college students and those 20 year olds that have returned home even after they have left. So we'll talk about the sandwich generation. Thirdly, four money moves that you you will regret. There are four money moves. If you don't avoid these, you will regret that you have made these money moves. So we'll talk about financial moves that you want to avoid. And then we'll wrap up today with planning the work and working the plan. We're talking personalizing your plan, making sure you have your own personalized retirement income plan for life. We'll look at a lot of surveys and things that are going on in America today that you need to be aware of. All right, our quote of the week.
This is your financial wisdom, a nugget.
And it is from Sam Ewing. Sam Ewing says inflation is when you pay $15 for the $10 haircut you used to get for $5 when you had hair.
I'm not a comedian, but that's kind of funny. You know, you get the point inflation gu.
You know, that check has arrived, but guess what? The raise already ran out. That check came in.
But the raise, the cost of living adjustments, specifically with Social Security recipients, you know, it is already, you already have more month than money, and you've been getting cost of living adjustments. These cost of living adjustments, they're designed to help you benefit with keeping pace with inflation. And, you know, every year, millions of retirees discover that, hey, that raise hit my account and inflation has already eaten up most of it.
You know, this year is really no different for 2026. And in fact, a lot of people, it's even worse.
Let's take a look back. So 2025, Social Security benefits were increased by 2.8%. So there was a cost of living adjustment at 2.8%.
But the problem is in inflation for this year, looking back to March came in at 3.3%.
So inflation is already outpacing the adjustments retirees received.
And when you look at what's actually driving that inflation, the picture gets even a little bit more personal. That headline inflation rate at 3.3, you know, but let's trickle that down to the real pain of your gas prices, you know, and just thinking about real life Social Security benefits, let's say that we're $2,000 a month. That 2.8% only got you to $2,056.
And then, you know that those gas prices basically ate that up, not to, you know, mention food or anything else of that nature.
Right. So you're gonna feel that pinch. You know, retirees are being pinched through education costs, clothing, younger people in their households, you know, you just feel trapped because that raise that you receive, the bottom line is it's really not a raise, right? So Social Security, as we mentioned, doesn't use the, what we call the consumer Price Index, the cipher.
They don't set that annual COLA based on that. Right? So the cpi, you know, it gives more weight, you know, to gasoline than, you know, the CPI U. So the cpiw, to be specific, gives more weight to gasoline than the CPI U. So this sounds like it should work in your favor. But this COLA is set based on the average CIPW for July through September of the prior year. By the time the adjustment takes in effect in January, an inflation environment may have already shifted significantly. So in other words, just in layman's terms, that COLA is already looking backwards, you know, so if you are dependent upon Social Security as a primary source of retirement income and you are banking on a cost of living adjustment, it's going to be very difficult to keep up with inflation. And you know, not to even mention what you're paying for groceries. You know, we already talked about gas. And so this structured lag is one of the reasons retirees consistently feel like their benefits are keeping up. Even in years when you've got that cost of living adjustment, that math is just not mathing. Right? The math is working against you before the check even arrives. So let's look forward to 2027 where there's potentially a silver lining that's going to come through. If inflation stays elevated through the third quarter this year, which is July, August and September, the 2027 Cost of Living adjustment could be one of the higher adjustments retirees have seen in several years. So the Senior Citizens League is currently estimating that the 2027 cost of living adj be around 4%.
Now 4% as we mentioned, is higher than 3.3. So based on current inflation trends, that would be a meaningful increase. Right. But the calculation won't be finalized until the fall of this year. So you got to keep tuning in, keep looking in to understand what actually happened and what, what really fleshed out for you. You know, continue to, to listen to us and other information out there to get this full, full picture when it finally fleshes out. So the honest reality about that, ideally retirees wouldn't need a big COLA because it would mean inflation had returned to healthy levels. Right. A larger adjustment next year doesn't erase the purchasing power that's lost this year. Okay? It's a catch up mechanism, not a solution is worth remembering. A higher COLA next year only helps you if you have a plan that bridges the gap between now and then, the COLA didn't help you this year. Right. And so what's that going to remain? What's that going to mean for your retirement plan?
Well, I'm glad you asked. If Social Security is your primary or only source of retirement income, this gap between the cost of living and actual inflation is not a temporary inconvenience. It's a structural problem that compounds over time and quietly erodes your standard of living year after year. This is exactly why building a diversified retirement income strategy matters so much.
Social Security was always designed to just be a foundation, right? Not the whole building.
Supplementing it with income sources that conflicts with inflation is what keeps a retirement plan durable for the next 20, 30, potentially 40 years. Right? So higher gas prices are visible and immediate.
They're hitting us every week right now. $5 at the pump is very, very normal right here in the dmv.
But the more dangerous inflation for retirees is slowing, right? Steady, kind of, that works on, you know, I'm sorry, but the more dangerous inflation for retirees, it's slow but steady. It's the kind that works on healthcare costs, groceries and utilities over the years, right? So it's not just gas, you know, you're also factoring in a number of factors. What you're eating, you know, what you're paying for gas and electric, your healthcare costs, you know, pray you don't ever have to have a long term care need. We'll talk about that a little later.
But if you're relying just on Social Security, right.
And you're hoping that that cost of living, you know, is going to allow you to keep pace with all these actual costs of living.
This is the year that you really going to have to take a hard look at this, you know, whether your income plan has enough flexibility in it to handle these gaps. These gaps are coming.
I believe taxes are going to go higher. I believe healthcare is going to be higher.
You know, you really need to take a look at Social Security just being the starting point, not the finish line, right. The gap between what that check covers from Social Security and what your life actually costs.
This is a problem. And without a good retirement plan, you know, you really are not in position to solve these problems, right? So if you worry, so think about it right now. If you're worried that inflation is outrunning, you know, your retirement income, right. You're not sure your plan is built to handle, you know, your income lasting you for life. This is why you need to give us a call. This is why you need to set up your free consultation on our website that we will talk to you and we will try our best to work with you to have a retirement income plan that will last you for life. So locally here, just call us at 301-249-3950 and always our website at Retirement Income, the number four for life. Let us take a look at your full picture and let us try to work with you to make sure, you know, inflation is not, you know, putting you in a position to where you won't be able to survive over these next 10 or so years. All right, so let's look at another option that we, another topic that we want to discuss today and the financial realities of cost of living and inflation really challenging our Americans and people in the DMV that are in their 40s and their 50s. Now. Let's, let's talk about that. Let's talk about the financial reality of what we're calling now the sandwich generation.
This is a group of you all, including myself, that we're not only still raising and supporting our adult children, at the same time, we are working with our aging parents who also have financial responsibilities that we're caring for.
Financial experts are calling what you and I are going through.
We're part of what they call the sandwich generation. Right? And if you're in it, you already know exactly what I'm talking about. You know, grown children you're helping to support, you know, older parents that you're helping to support and let alone you're trying to, you know, save for your retirement, you know, so what you might not know is just how much this is costing you, you know, as it relates to you, not just today, but in terms of your own retirement. Okay, the sandwich generation. Let's talk about that for a minute.
The sandwich generation typically refers to adults between roughly 40 and 59. Okay? So if you're in the, in the age group of 40 to 59, you know that you're, you're who I'm talking to right now.
And simultaneously you're supporting your children. Right? Adult children. You know, maybe they're in college, maybe they're, you know, in trade school, you know, maybe they're just in your basement playing video games, I don't know. But at the same time that you are working with your adult children, you're caring for one or more of your parents.
You know, this is a reality. My mother in law lived with me for 12 years, you know, loved her. We, we enjoyed it. That wasn't a part of her, you know, dream retirement. And it wasn't a part of my working years. You know, we, we worked through it and it was something that we, we had to deal with. But the reality is I had a child on her way to college and you know, thankfully, you know, she has graduated and you know, we work through this. But this is something that you must focus on. About 23% of U.S. adults currently find themselves in this position. One in four American adults are managing care responsibilities on both ends, both ends of the generational spectrum at the same time. The financial pressure compounds. Right now you're stressed. This is emotional weight as well. You know, you have an aging parent that you're concerned about, you want a loved one and take care of you have a child or children that you want to make sure have a, the best education or you know, you, you're providing for them, but at the same time you've got commitments for your short and long term while you're working 40, 60 hours a week. Okay, this can really get stressful as you are trying to navigate through this as well as it taking a toll on your retirement. So nearly 75% of sandwich generation Americans have already changed their retirement plans because of the caregiving responsibilities, reducing their own savings. You know, you're going to have to potentially reduce your own savings delaying retirement. Now you're working longer than you planned on it and then also pulling money out of accounts that you've already built up. You know, unexpectedly you didn't realize you're going to have to pull this money out. And so about 28% of sandwich generation caregivers spend 1,000 or more per month directly on caregiving costs. Right. Nearly half have reduced their retirement contributions because of this financial strain. This is a reality that we have to plan for and position into our retirement income plans for life. Right.
So in practical terms, if you reduce your retirement contributions for even five years during your peak earning years, right. That long term effect on your portfolio with compounding could really be devastating to your account.
This money, you know, you're not putting it in during your highest earning years, your 40s and your 50s, and it's just disappearing. So this could take decades to see future growth. And this risk isn't just financially exhausting now, right. It's arriving at your own retirement where you have far less plan for it. Right. Because you're too busy trying to hold everybody else down and as well as, you know, build that foundation for your own retirement. One other statistics, Let me, let me point this out. Related to long term care is that approximately 70% of people turning age 65 will need some form of long term care at some point in their lives.
And this is straight from the U.S. department of Health and Human Services website.
And this care, Think about it. Let me ask you a question. You think long term care is inexpensive or expensive?
Inexpensive or expensive? No. It is expensive.
Just adult daycare alone, $24,700 on average a year.
If you needed home non medical care giving on average 80,000 a year. Semi private nursing home on average $115,000 a year, private nursing home, $130,000. So guess what? Your dream retirement without a retirement income plan for life. Okay? In place to take some of these risks off the table. A part of your dream retirement could be you're moving in with your kids. A part of your dream retirement could be you don't retire because you took care of a retiree and you're taking care of an adult child. Okay? Long term care is real and you have to make provisions for it. You have to make sure it doesn't disrupt your retirement plan and plans and that you have to really think through how you're going to currently of course, take care of your aging parent. You definitely going to do that, right? But it's also time to build in things. If this is not you before the crisis happens, before you need long term care for yourself or for an aging parent, or before your kids are five, 10 years away from college, whatever it might be. We need to start these conversations a little bit old, a little bit earlier, okay? The conversations aren't being had until the crisis shows up and that's too late. Okay? As a financial advisor, I'm consistently saying that the single biggest mistake families make is waiting until a parent is hospitalized or incapacitated to think through the financial implications. Right? Early planning gives you far more tools, far more flexibility.
Crisis planning and prevention beforehand can really end up well, right?
So you want to explore the long term care funding options now, you know different ways of going about it. Traditional long term care insurance, adding riders to certain cash accounts that you have, maybe some annuities, savings in your savings and checking account for that, you know that down the road care that might be needed. There are a number of different ways to earmark funds for long term care before it happens. So you want to get a plan that accounts for all three generations, right? The families who navigate this best aren't the ones with the most money. It's not always the most money. It's the ones that have planned early may deliver decisions you know about, you know, how they could fund these different things and how they couldn't. And then building a structure around the priorities before life just basically forced you into the issue. So finally on this topic here, being sandwiched between two generations of people you love, that's one of the most demanding things life can ask you.
So think about that, right?
Are you going to drain everything you've built trying to send your child to college and then that child or children come back from college without work and now they're back at home while you are there now taking care of your mom who needs long term care or your dad who needs long term care, or both of them. Okay?
So it is extremely important for your retirement future. It's extremely important, right, that if you're in this sandwich generation category and you can see this coming, you know, and you don't have a plan in place that accounts for both the care of these costs, you know, ahead of your retirement, okay? We want to make sure you have your retirement in place as well as costs for your adult children and you know, that loving mom or dad, you know, all of those costs you want to account for. And so this is the exact type of planning conversations we're having every day.
And so as I said, reach out to us. Our phone number directly is 301-242-3950.
You can always set up a free consultation right online at retirement income the number4life.com you know, set that free consultation up. We even have a free downloadable Retirement Income for Life survivors kit. We've packaged this with all of these things in mind that will accompany your free consultation. Things you can think through well before, you know, you get to these areas where you have to make decisions. So whether you're looking to optimize, you know, your investment portfolio, maximize Social Security, you know, we want to help you create a comprehensive retirement income plan. You know, our team's ready to assist you every step of the way. Just give us a call. 301-242-3950. Or as I mentioned before, write online retirement income the number 44 for number 4 life.com retirement income the number 4 life.com book your consultation today and we look forward to helping you achieve your retirement dreams.
[00:24:30] Speaker A: If you want help building your own retirement income plan, visit retirementincome4life.com to download your free Retirement Income for Life Survival kit. That's retirement income the4life.com sit tight. Doug will be right back after this.
You spent years working hard building your savings and planning for the future. But as retirement gets closer, one big question starts to matter more than anything else. How do you turn all of that into income you can actually live on? That's where Doug Vinson comes in. Join Doug every Saturday morning at 6 for the Retirement Income for Life show on Magic 102.3. With over 30 years of experience helping families in the D.C. area, Doug shares real strategies designed to help you create reliable income in retirement so you can stop worrying and start living. If you're already retired or getting ready to retire, don't wait to get a plan in place. Visit Retirement Income for or call 301-242-3950 today to schedule your complimentary consultation. That's retirement income the number4life.com or 301-242-3950. Your retirement isn't just about saving money. It's about creating income for life.
[00:25:49] Speaker D: In the rush of everyday life, it's easy to focus on the here and now, paying bills, running errands, squeezing in time with family.
But for many retirees, the biggest question still lingers. Did I really plan enough for the years ahead? I'm Jim Tarabokia for the Retirement Radio Network powered by Amerilife.
Financial planning isn't just for the wealthy. It's for anyone who wants to make smarter choices with their money. And it's never too late to start trying to envision the complexion of your financial future and overall retirement can be an overwhelming endeavor. Morningstar director of retirement planning Christine Benz tells CNBC she understands different financial and retirement approaches can be tricky, but reiterates that you don't and shouldn't go about this journey alone.
[00:26:32] Speaker E: The gold standard would be to work with some sort of financial advisor who is helping you calibrate how much you can safely spend. But the name of the game is to look at your portfolio, ideally every year, and make some adjustments.
[00:26:47] Speaker D: According to A Charles Schwab 2024 Modern Wealth Survey released in November of last year, only 36% of Americans have a written financial plan. Of the rest, 43% said they didn't even have enough money to make a plan worthwhile. So here are a few important ways financial planning can help you save for the future. Financial planning can jumpstart savings. Planning, even in small steps, doesn't require large sums of money to start. The proper financial planning can help you create an investment portfolio, giving you a comprehensive view of how to reach each individual goal. And finally, financial planning can lead to better money habits. Planning isn't just about investing it's about what money can do for your confidence, security and quality of life.
Financial planning and security. It isn't as much about perfection as it is progress. Your future doesn't plan itself, but with the right tools and a little guidance, you could be well on your way to a stress free financial future. For the Retirement Radio Network, powered by Amerilife. I'm Jim Tarabakia.
[00:27:48] 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.
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.
[00:28:40] Speaker C: All right, number three for today's show, our top topic is four money moves you can possibly regret in 10 years. Matter of fact, if you do these, I know you will regret them. So these are four money moves you will regret in the next 10 years. And so we spent a lot of time on this part in our first few meetings with clients. But here's, here's the big picture of retirement income and Social Security. And you know, all of these topics that we discuss on a regular basis is you, you want to make sure that you take a step back, you look at your everyday financial habits, you know, quietly pull back and just say, hey, you know, maybe ask yourself some questions about, hey, you know, how old you are, you know, small decisions that you maybe made over the, you know, last few years, you know, have you been moving in the wrong direction? You know, just take a honest assessment of how you feel about your, your finances. You know what, what we see is really, these are our top four that we see people making these mistakes and we want to help them try to avoid this. And the number one is you're budgeting too late. Okay. You know, most people don't want to live off of a budget, but then don't have enough money in retirement, don't have enough money for an emergency, don't have enough money if the car broke down or you needed a new hot water heater or whatever it might be. And so then now you're always in crisis mode, putting items on credit cards that you're paying high to too high interest on and you know, if you're not doing damage control related to budgeting, it can really, really start to put a strain on you being able to ever, you know, really save any money. And so that's, that's the first area that we want to, we want to focus in on is, is that, you know, how much money do you have that's budgeted in your budget that, you know, every single month this money is going towards this area of savings or this area of retirement planning or, you know, is all of your extra money because you're not living on a budget going towards credit card debt or, you know, things of that nature, you know, and so we want to make sure when we first start a retirement income plan that you have set up your budget, you know exactly how much money is coming in per month, you know how much is going out.
And the real cost, you know, isn't just, you know, you're paying too much in interest or you know, this interest rate is too high on this credit card. You know, listen to expert Melissa Sid. This is how she puts it.
Living beyond your means might provide temporary satisfaction, but it often leads to a cycle of debt that can be challenging for you to ever break free from. Is that you today. Think about that right now, that the real cost isn't just that high interest rate on that credit card. It's the compounding opportunity you lose while you're trying to dig out of that hole. So we want to start with a budget. Number two, start saving for retirement early. As early as possible.
As early as possible. Contribute to that IRA, that 401k as early as possible. Get the matching from the job. If they're going to give you free money, whatever it might be, the earlier you start, right, retirement is going to feel distant. When you're young, you're 25, 35, even 45, it might seem like that's an eternity away, but that feeling is exactly what makes it so costly. You know, the math on compounding is unforgiving, right? So starting at 25 instead of 40 doesn't just give you more years, it gives you, gives your money more time to multiply on itself. You know, it's just compounding on its stuff on itself. So you don't need to start big, right? $10 a week, $25 a month, whatever it might be, this invested consistently over a 40 year period will grow into a meaningful sum. Trust me, I see this every day from those that are preparing to retire that have contributed to their plan for 25, 30, 35 years, right? This amount that you put in it matters less than the habit of doing it every time you get paid, right? That habit is the most important thing, you know, and that's why you have to start now. All right, number three, not having an emergency fund. We kind of talked about that related to the budget, but you have to have an emergency fund, okay? And the way we look at an emergency fund is that you have a certain amount of money in a savings account, money that can, you can get, that can easily go into your checking account, that can easily go towards liquidity, you know, with just the push of a button to transfer from one account to another, right? This is a financial cushion for unexpected debt. When was the last time you knew that emergency car light was going to come on, right? You know, or that, you know, my engine failed or the hot water heater broke down, or you had a leak, you know, in your, I mean, you never know. These car repairs, these medical bills, you know, job disruption, you know, without an emergency fund to tap into, right? Guess where you're tapping. You're tapping that credit card. And that credit card balance is going to carry interest and debt that you're going to be dealing with months and possibly years later.
So an ideal target for you right now, if you're listening right now, an ideal target for you to have in an emergency fund would be three to six months would be an ideal target. Some of you can go six to nine months, right? You don't need it all at once, but you do need to start building on it because the goal is to have this in place well before you ever need it, okay? When it's time to, to pay that car bill, it's too late, right? And so we want to make sure that, that you have a healthy emergency fund. And those that we see that have that healthy emergency fund, they have focused in on a budget. You know, the people that have started early saving in their retirement accounts, these people and these individuals right here in the DMV are ready to retire. All right, number four, and our last one for, for today is you have to avoid not investing beyond a savings account, okay? Some of you are actually being too conservative in your savings. Okay? Yes, you want an emergency fund. Yes, you want a checking savings account, ABCD's, money markets, things of that nature, right? But if you're keeping all your money in the, what we call the feel safe zone, right? The very, very ultra conservative zone, over a 10 to 20 year horizon. Inflation now is going to quickly, or should I say actually slowly erode that purchasing power. Remember we were saying that inflation was tracking at about 3.3%.
What if I added in cost of living? If we added a combined cost of living and inflation rate on average for the last 75 years, that's about 4.8%.
Okay? So if savings in your check, just think about what are you getting interest wise in your checking account, what are you getting interest wise even in that cd, right?
What are you getting interest rate wise from your saving account.
You have to consider diversity over the long haul so that you're investing this money in places other than just banking interest, interest instruments other than places other than the savings account. Right? You want to build wealth over time by a healthy diversified plan where you're investing not just saving. Right. You don't have to be an expert to get started. You know, low cost mutual funds, index funds, steady contributions. There, you know, time in the market, you know, does the heavy lifting. But only if you start.
Right? The common thread through all four of these items is what? Think about it, you need time, you know, you need time for this compounding interest and these savings accounts to accumulate, right? Every one of them gets harder and more expensive the longer that you wait. So the best move you can make today is just stop waiting, stop waiting and start making sure you avoid all four of these financial risk, right? So if this is sounding familiar to you and you're ready to stop waiting and you want, you know, someone to assist you, as I've been saying, you know, today that we're here to help, we're here to assist, we're here to consult. Give us a call here at 301-242-3950.
You can set up a consultation with us right online at Retirement Income, the number four for life. Com. We are here to help you grab that free Retirement Income for Life survival kit right here at our website. Retirement income number four for life, the number four life.com, retirement income4life.com. So we look forward to helping you. We look forward to making sure you avoid all of these risks and that we continue to move forward towards your healthy retirement. All right?
The plan that you put in place is going to make the difference.
The plan, the retirement plan you put put in place will make the difference. Okay, Number of different surveys have been put in place.
One that we've seen here recently that I'll quote to you from Goldman Sachs and even practically right here in the dmv, we talk to A lot of people that listen to the show that come into our office, come to our workshops and they are emphasizing to us, they're thanking us for really encouraging them to have a plan, not just a general idea of what retirement might look like. And you know, I'm hoping that this happens, but an actual written plan, a personalized retirement plan, one that spells out your contribution rate, right? How much I'm putting in each month, each year, my income target goals, what kind of income do I want this accumulate to distribute eventually, right. How your assets are positioned so that you get there.
And now this new survey that I mentioned from Goldman puts a new number on exactly what that plan is worth, right? The results are hard for me to ignore and so that's why I wanted to bring this up to you. So according to Goldman Sachs, their latest retirement survey on people that they've surveyed who retire with a written personalized plan and have a savings to income ratio, this group has a savings to income ratio of 5.92 times their annual income. So you do that math, you know, and so that's people with a plan, 5.92 times annual income. All right, Those without one, those that just winged it and hope to get there, you know, these are the people that they surveyed. They were still savers, but without a written plan, their income. So it was 4.68 times for them. So 5.92 with those with a written plan. Right. Savings to income plan, savings to income ratio was 5.92 with the written plan and 4.68 savings to income ratio for those that didn't. Okay, so think about it. Do you want more full time income and retirement? Do you want more than, you know, than what you're making now? Do you want the, which one of those would you rather have? 4.68 times or 5.92 times? All right, six times or five times. You know, a written plan doesn't raise your income, it raises your outcomes.
Did you hear what I just said?
A written plan, a retirement income plan is not going to raise your income. It's not going to cause you to make more money. It's just going to cause you to raise the outcome of what happens in the end, right? It creates a confidence gap, right.
You know, there's a confidence gap that's even wider, right, than a savings gap. As you're seeing more money grow and as you're seeing that written plan come to life, right?
You're going to, is going to, you're going to have more confidence, you know, more confidence to Save. Right. Once that, once that starts to happen.
Right. And so among workers in America today, okay, we, we have a number of, as, as we were saying before, we've, we've looked at a number of different surveys and we've, you know, looked at a number of different people who are dealing with this.
Not, not being confident in, you know, their, their savings plan, not not thinking that they're going to get to the end and have enough money, you know, to retire because of these factors that we're, we're talking about now. Right. Personalized planning adds confidence, it adds readiness. Right. Personalized planning, you know, contributes to you be being more effective. Right.
This data, you know, puts real numbers, you know, in place. Right. Housing cost has risen, you know, we're sure about that. Right.
Health care is going to keep rising. Right. Child care is going to keep rising. You know, that gap that, that instead of having 6% versus 5% that could really, you know, stop you from having a dream retirement. You may have to work longer, you may have situations to where you can't do all the trips that you wanted to do.
Okay. And so with that in mind, you know, this survey breaks down exactly how individual financial behaviors stack up in terms of these retirement outcomes that we, we have been discussing. Right. Striking difference. And you know, I know, I know I want to be in that 6% area versus 5%. So saving early we've been talking about that is also a part of the survey and it adds about 15, I'm sorry, 14% to your retirement outcomes, to be specific. 14% to your retirement outcomes. And that's significant and is the piece most people focus on. All right. Personalized Planning, though, adds 27%.
Right. So think about that. Most people focus on savings. Right. So that's going to move things up by 14%.
But personalized planning adds 27%. Right. So what does that mean? So that means that the act of having a written plan contributes nearly, what, twice as much to your retirement readiness as simply stating and simply stating you're ready or simply starting to save early. Right. The biggest factor of all is what the report calls financial grit. Right. Financial grit. What's that? Behavioral consistency over time.
Behavioral consistency over time. It's going to be very hard to stick to a plan that you haven't written down.
It's going to be very hard to be consistent to a plan that you haven't put on paper. Right. Sticking to the plan. Right. Staying invested through the up and down markets. Your plan should have already mapped out that there's going to Be volatility in the market as you're accumulating, you know, assets, right? This also helps because it's written down. It also helps you not to make emotional decisions, Right?
Making emotional decisions contributes to 49% of retirement outcomes. The market went down. You sold when you should have been buying. The market went up.
I'm sorry. Yeah. The market went up, you sold. You should have held, you know, emotional decisions have people buying high and selling low.
No. Within a healthy retirement income plan that is built for longevity, we've already factored in the emotional volatility that can derail you. And so we've already had these discussions to not get emotionally tied in to the ups and downs of the market, right? And so if you have a retirement plan but you don't have, you know, a retirement account, I should say, but no written plan, you know, no clearly defined income target, no withdrawal strategy, okay? No roadmap for how that account becomes a paycheck. You know, your accumulation eventually has to distribute, okay? So if you're in that category, it's very likely, you know, that as this survey said, 41% don't feel like they're on track, okay? When you can't see how the accumulation is going to turn into distribution and asset preservation and retirement income for life, you're really not going to feel like you're on track. Now, here's the good news, is that this is one of the most actionable findings in the retirement research, right? Is that you can easily increase your overnight or eliminate the rising cost of housing or healthcare.
This is something that can be done overnight, but you have to have that planned out. According to this survey, those that are putting this in place and that are putting these plans in place, right? This single step is worth about 27% more money in retirement savings, okay? 27% more retirement savings as you put together a plan related to housing and healthcare, okay? That personalized plan isn't a luxury reserve for people just with large portfolios, right? That personalized plan, that's the tool, okay? You could have a lot of money, but not the right tools, and you can still really mess this up. So it's the tool that helps you build a portfolio in the first place and then make sure it's working as, you know, as hard as possible for the life that you want to have down the road. So if you're looking to retire at 70 or 65 or 62, the question should be why?
You know, that's the age I've chosen.
The question should be, have I Like these people that were surveyed put together a written plan to get to my income target, not just my age target.
Have I factored in built in raises for cost of living and inflation?
You know, these surveys are good. But you that are listening right now, this is real life, right? This is real life for you. And I know one day you want to be in full retirement, which means the hardest work you have to do is make sure the money hit the account, make sure the Social Security check came in, the pension check came in, the ira, whatever it might be. You want to make sure that you are financially confident to have retirement income for life. So think about it. What we're talking about here is the differentiator of this all is income and the structure to get you to that income, right? It's knowing where you're going, having a map to get there. So like we've been saying, you know, if you don't have a written plan and you're not sure, we're here to help help you. We're here to reflect on all the pieces that you may have already put together. But even if you're starting from the beginning, give us a call. 301-242-3950. We're here to help you. Free consultations, right on our website. Retirement income, the number4forlife.com. You can set that up today. We will work with you all. All you have to do is just let us know you want some help and we will take it from there.
And so one of the things that we do, finally, as we sit down together and we review, you know, the big picture with you, we always remind our clients and those that are potential clients that this is all about you. You know, we've got all the prescriptions, but we have to start with you. We don't do any prescribing without a full diagnosis. We've got to understand your goals, your concerns, the kind of retirement lifestyle you want to have, how do you want to travel, what is your family time? You know, are you giving back? What's the peace of mind plan for retirement that you want to have? Right? We take a deep dive into what you've currently done. We look for, you know, where you may be exposed to risk, maybe you may be exposed to too much in taxes. You know, different strategies are going to work for different times of your life. And so we want to dig in on those while also identifying, you know, different gaps that you may have different opportunities, you know, strategies that you may not have considered.
Many people don't realize you Know where they may be overexposed to risk as they get into their 60s. Okay? You're missing income opportunities while, while staying too, too much in the market and leaving your money exposed to too much volatility as well as not looking at the blind spots related to potential tax savings. So you're going to need, and this is what we help people build on a daily basis is a clear, personalized strategy, right? You'll walk away with straightforward information, easy to understand, designed, you know, easy to understand plans of action, no jargon and you know, big words. And you know, we're not trying to impress you. We will just really sit down with you and build a clear personalized strategy as you get to retirement. Once again, accumulation strategies, which I pray you've done very well in accumulating accumulation strategies are not the same as income distribution strategies.
You got to get this money out now to you to last for a lifetime. To last for. Watch this. You may have a full career in retirement. People live in longer or shorter today. Think about it, are people living longer or shorter today? People are living longer. And so we need income that can be provided to you with security, right? Retirement isn't just about growing your money. Right. It's about turning it into reliable income. Income that's going to last you until you die. So we help you understand how to create that paycheck in retirement, self directed pensions, how to maximize your current pension, how to turn on that 401k for income, right? And so we don't rush through this.
It's a marathon, not a sprint. You know, we answer all your questions, you know, no pressure. You know, if you don't want to work with us, that's fine as well. We are here for a second opinion, a first opinion, you know, open conversations and dialogue so that you feel confident with next steps that you are taking. This is so important for you to take action. You know, like I said, no obligation.
We're here to help you second opinion, get you started. You know, it all starts with just a simple conversation and that could be the most important decision that you ever make. Okay? So we are here to help you, as I said, with a retirement Income for Life plan.
Give us a call, 301-242-3950. Always on our website. Go and download those resources. We have a Retirement Income for Life survival kit free of charge. You can download that right now at retirement income, the number4life.com. So we look forward to working with you, scheduling a complimentary consultation. Do that today and we'll take that first step to a more confident, secure retirement.
[00:54:54] Speaker A: Thanks for listening to the 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 a legacy.
Learn more at retirement retirement income for life.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.
[00:55:24] Speaker B: Securities offered through One America Securities Incorporated, a registered investment advisor, Member FINRA and sipic Greater Washington Financial Services is not an affiliate of One America securities or the companies of One America Financial and is not a broker, dealer or registered investment advisor. Greater Washington Financial Services may conduct life insurance and securities business 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 OneAmerica securities, the companies of One America Financial, Greater Washington Financial Services, nor their 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. If you've got credit card debt, you are not alone. I'm Matt McClure with the Retirement Radio Network powered by AmeriLife. Consumer debt is piling up in this country. In fact, the Federal Reserve bank of New York says as of this year, Americans hold more than $1 trillion in credit card debt. That's trillion with a T. And the average interest rate? It's hovering around 20%, sometimes even higher.
That means if you're only making the minimum payment each month, most of your money isn't even touching the balance. It's going straight into the lender's pocket as interest. And that debt, it adds up quietly, consistently and often painfully. One of the smartest money moves you can make is to avoid going into debt in the first place. Robin Growley is head of consumer Deposits at Bank of America.
[00:57:11] Speaker E: Even if you're spending with a credit card and you have a bit of a higher limit, don't max that out, right? Just spend with what you've allocated for in your budget. But anytime you're spending on that credit card, you have to make sure that you're paying that monthly balance off on time and in full because that's really the key to building your credit history.
[00:57:28] Speaker B: But maybe you're not there right now if you feel like you're drowning in a sea of credit card debt, there is hope out there. A debt management plan often offered through nonprofit credit counseling agencies can help you consolidate those payments into one monthly amount, often with lower interest rates.
These aren't shady payday loans or too good to be true ads, Experian says. These are regulated, real programs built to get you back on your feet. And here's why that matters. Your credit score, Growley says it's not just a number.
[00:57:59] Speaker E: Well, a good credit score is so important to our financial journey, right? And all the doors kind of that good credit score can open for us. So things like renting an apartment or getting a favorable rate on an offer auto purchase, a good credit score is so important to be able to do those.
[00:58:15] Speaker B: And so if you've been avoiding your statements or feeling the stress build every time your phone lights up with a balance alert, make a plan and ask for help if you need it. Because this isn't about shame. It's about taking back control.
With the Retirement Radio Network powered by ameraLife, I'm Matt McClure.
[00:58:33] Speaker A: You spent years working hard, building your savings and planning for the future. But as retirement gets closer, one big question starts to matter more than anything else. How do you turn all of that into income you can actually live on? That's where Doug Vincent comes in. Join Doug every Saturday morning at 6 for the Retirement Income for Life show on Magic 102.3. With over 30 years of experience helping families in the D.C. area, Doug shares real strategies designed to help you create reliable income in retirement so you can stop worrying and start living. If you're already retired or getting ready to retire, don't wait to get a plan in place. Visit retirementincome4life.com or call 301-242-3950 today to schedule your complimentary consultation. That's Retirement Income the number4life.com or 301-242-3950. Your retirement isn't just a about saving money, it's about creating income for life.
[00:59:32] 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.
