Common Sense Retirement 11-4

Common Sense Retirement Planning
Saturday, November 4th

Common Sense Retirement Planning


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

Well good morning do you welcome comments since retirement planning and Tony dale with the delightful charming and lovely Rebecca Kincaid unfortunately we are. Yet again bereft of our dear Philip pound. Who first he's off honing bears and his take a trip to Dallas for business and then that and get sick he's okay about it. So. Again you're you're stuck with just the two of us but we will. Muster up to the challenge today on common sense retirement planning. This program. Which is I think a very uninteresting show is uninteresting for a reason. Because unlike a lot of infomercials this is the regional. Radio program about retirement plan. And we sit out from the very beginning on comments at retirement planning to make it something a little differently we don't need we went into being in commercially even though of course. The goal is try to get you to come and visit a split. Our goal was to try to educate same same way as if I'm filling in for Bob McClain nor doing a talk show which is the reason you listen talk radio is the future going to be informed and entertained too. And and that's really what our arm main goal is is to try to do to tell you that things going on. In the world of finance and investing and so forth that you probably are not hearing on the mainstream financial pressed for a reason. And the reason is introduced as biased as the mainstream political crisis and they have sort of their own little message they're four. For the next hour. We will take control of the radio. And try to share some things with you that we think are of great import to you. One of the other things that we eat from the beginning and we started doing shows ten years for better. A week ago. Is because of our worldview we always believe victim the ultimate source of knowledge and wisdom is the Bible and therefore we always liked strict program was something from the Bible subtle. It just as fate would have it this week I happened to be reading. Re reading for the umpteenth time the book of Oakley CS which is fascinating and of itself but I kind of really good PP. Quote from a queasy AST's it's historically yes he's five team. Whoever loves money never has enough. Whoever loves wealth is never satisfied if your income. This too is meaningless. And sort of be over arching point Solomon makes him in netbook in the book clean CST and only the ref thought about it like this that. When you read the book of proverbs which precedes this book. That is sort of Solomon espousing. Wisdom. Let's say no more of a theoretical. Sense he's saying all these wonderful things. Primarily a couple of the people who wrote some stuff in their bit primarily Salman. But I do as we know from reading the history of Solomon's life Solomon blew it toward the end. Really didn't listen much trees on his vice in a way a queasy yeah it is sort of more like a memoir where he's. He's revealing things he's learned safe shall we say the hard way. Which probably is ultimately or anything but we don't want you to learn one thing part. We do not want you to learn retirement planning. The hard way because here's the hard way in this is going to happen to a lot of people there. And it has already happened it happened in 2000 happened in 2007 and eight and he's going to happen again and that is a lot of people who are. In the market stock and bond markets. When the market tanks and they're taking income what they're going to find out. Is it all of the losses they suffered in the market while all of the money they're pulling out taking income happened simultaneously. They now have suffer what are permanent losses. And we do not want this to happen to our clients. So that's kind of what we do so I'm gonna start today. With a piece I ran across in news Max one of the web sites that you can trust. And it's very interesting makes an interest in points how longer lives are shaking up retirement and demographics is going to play each usual we're gonna talk about this but Rebecca united going to be. I don't start when this article by mark Fareed. Many retirees are finding that their golden years or should not so golden after role. Driven by the disappearance of pensions. Fragile Social Security system inadequate savings and the fact of life for just lasted longer. And that final factor may be the most significant at all. Someone who reaches 65 for example can expect on average to live another nineteen years. But he can play Havoc. With retirement plan is many boomers are finding out because when you live longer your money needs to last you longer. And the big problem is people still are holding fast to your retirement model based on much shorter life spans. They're not considering. It their retirement could last three decades or more. And so they're not planning on how they're going to pay for old news. And there are few things people should take into account as they prepare for this long why we can retirement. First of all how about the effects of inflation. Are you aware. How insidious inflation news. I mean it literally will rob you your wealth facilities. A 3%. Inflation rate over 24 year period. Would cut the purchasing power of your retirement funds in half. Which means for example if you retired at sixty by the time he reached 84 you would need twice. The amount of money to maintain the same standard of living. So inflation is a critical thing to consider. Here's another when I alluded to earlier longevity. Is the root problem with Social Security. Because when social sorority east security reddish started in the thirties people were not living burial. And so that was not a problem and also they had a lot more workers are taxpayers to pay for those few people who were living collecting it. But today. It is completely different because of demographics. And we see this in the way government is limited the year to year increases in benefits nowhere near the actual rate of inflation. What it means is that Social Security is not going to be able to replace as much of your pre retirement income as he used to. And every one and should be seriously thinking about. Your decisions based on how dose changes in Social Security are going to affect you. And part of their problem is going to be. As fewer and fewer babies have been born over the last fifty years to pay you for those of us on Social Security. That is heading toward a fiscal problem it's going to have to be dealt with some where in our futures when we're retired. And there was a time. Remember when many Americans and generous pensions well as we know. The pension plans in this country are in dire straits. Double digit trillions of dollars of underfunding bandit state of South Carolina is one of the worst in the country Kentucky's just about to go over. So most people have been shifted to 401K plans. But the problem is most people really are not very good it investing lead they are trying to do this. And they haven't accumulated enough money to last a lifetime. So a good rule of thumb is with Social Security count on at least 20%. Of your gross salary and retirement has to come from someplace other than Social Security which is what by the way we view. So old. This is an entirely new world people retiring in two and it is one you were not going to want to in her alone I mentioned fill my friend our friend our. Coworker. Comments it's retirement planning. Who had to go into the hospital and it was he was having some symptoms they ran tests everything he's fine. But thanked god that they are. Was an expert to go see didn't do what to look for and how to run the task thank you when you're sick it's a good thing there are doctors here in the air not. How that is a good thing or is common sense. Retirement planning here. Because I'm telling the world that you're entering a retirement is not the same when it was for your parents. So. I am offering you an opportunity to come and see assemble cost generic thing. We'll sit down and have a listen to what your concerns are what it is you're trying to do and and we'll do what we've done for a literally hundreds of people in the upstate over the last almost eighteen years or so. We will show you way. To create one of the most important things in this is this is according to the Stanford center for longevity and you. Actuary organization units eight cameramen and crew. American Association actuaries. Cooked up a they did a study to find out what what what is the best and most important thing one must do we retirement in the number one thing they came up with is something they called green eggs. Thank you darling. It's good all Rebecca come and then there's this story T Stanford center for longevity society of actuaries. And so what they recommend. In retirement. Is you need retirement income generators or rigs they call them. And what they have to be isn't something that will guarantee a way to pay for you or. Essential expenses. Food housing clothing utilities any bare minimum. And it has to be something has no risk involved and that is where we come into the picture that's one of the first things we'll take care if you make sure the York. Those things are handled and then we'll have a conversation about you know what are the things might we do for investment strategies that they will achieve other goals you may have. One of which might be taxes. But please come and see this go to our web site. CN SRP got info check this out making import. I didn't tell you this yesterday and to see Philip. And the poor soul is sitting there bored out of his mind he's like I'm sitting here just when I go home. Can't do any thing I'm just gonna go home which you know you have to get as a hospital to get that air right. Eight and he had to get the hospital just to get some rest as a poke and prod me constantly but I cinema tech nests and I'm on the way to see you. He said it before and Italy baca ascent how are you this morning and he said well Yunnan OK and scanning it just sit here tearing our waiting to hear what's going on. And he Sydney takes in Assam which hospital. Are you that. He says I am at Saint Francis and he gave me his train number in the actor TC but don't worry about commit to see how highly OK I thought I. Wait a minute it. Right now laughed about that might say you don't want me to concede see that she conveniently gave meet actors how. A little injury number. So it but he is well but I'm sure he would appreciate your prayers. What are the things you just talk about Tony and I have a shot at and we mentioned this earlier just a hodgepodge of different. Interesting ideas to talk about today one of which. You talked about aging. The Simpson hearing in population has grown up 44%. There was an article in time magazine that said. They believe in studies actually show that a person he's going to live to be a 125 years old has already been born. My granddad pop news of the sweet potato farm that's Parker had a trip came alive in the summer and watermelon and harvested sweet dictators it's different and it will it will it it can't not Kidman has claimed team but you know we ice a tossed water Allen's. Take to gates and ticket fitness exercise character roles pressure pressure. Let. In doing that he you know I think it alive he's 91. Lost my grandmother five years ago or so he's really. And this doesn't sound harsh today is he knows who in had been in this season and their lives but he just wants to go and be home with her you know I mean he's only and I told a massive pop hit bottom she get a county this is such a southern thing. Marching down to the store. Yet there's always like a little kitchen in the store and go into the air and to sit down and have coffee can all the farmers would get down to the store like fox thirty have coffee visit with one another. I think I don't mayor and visit with the right hind and visit with your buddies down at the store. And he said sweetheart he said Al my friend's day ahead. Donald I wanna live to 125 pummeling one hero I mean by an act generally. Two but the problem news when there's two problems here. First problem is is I'm is an article was mentioning America is how does one pay for such a long life but here's the other problem in this is when I did did your. You don't know this about mikva 11 of the things from decades. She sort of our go to person in this one particular area is. At least two efficiently plans for taxes. Later in life and this is particularly germane for people who are fifty and under. And the reason news as I mentioned earlier birth rates have plummeted. Over the last fifty years. While the baby boomers are now and shell us starting immediate retirement age 101000 a day. So just do all you gotta do is the demographics and it's a mathematical problem. There are what two point eight workers for every recipient for Social Security now and is going to be dropping to what to. Yet there's going to be in drastic shifts and that and the double digit deficit that you were referring to see. Is at 42000000000. And 48 billion is the cut the deficit forced a security and Medicare so we look at nice things having a plane ended that the government plan may not be a good idea. The other thing that the government ingeniously done and this has been some legislation has been on the floor and that you like to see it comes to fruition or not at one point there was conversation about forcing year. To reposition your 401K. In two. A not qualify position might more of Iraq position and they wanted to do that to get a large surge or large influx of tax dollars. Fishing back into the government that they can blow our money and you spend it in as it is not their own anymore. So what we might have conversations about a couple of things one will have people who come in a lot of our retirees actually. We'll come in and say I don't have any debt now homes paid off nine U of an ivy student loans on the children are adult children. Which it perpetuates the conversation and your children are adults. But are they off the payroll beatable. The prison that definitely it's a kink in things. And people will sadly ruin their retirement asked supporting their adult children. But that's just a subject for a little bit later in the Shia. Where was it that is is there are opportunities out there where uncle same as doctor silent partner he still pretty neat that that. Well first of all we're not talking about evading taxes were talking about avoiding taxes and using a tax shelter. Where you can put money into a plane and they'll never be taxed again. Deployed where I was going mended again Tony when asked if people come in and and it did you meet with a lot of people who say they don't have any debt. If you have money in a 401K. If you have money in a traditional IRA. Which a large segment likes NET percent of the assets out there are in a traditional IRA. You have debt. You are in tax of bondage. And guess what you gonna have to pay before you can get to your money you're gonna act I it'll. So what this instrument dies is allows people to get to the proverbial tax free promised. I know that there's only too well having just 170 so repayment and went to my accountant terror. This week in Canada meaning you know we're really you know what well I mean I knew I was gonna are in these are required minimum distribution to have patent sent an email by tomorrow client's mental time that. What tune it. Andy and and that of course over the years I've I've I've put money in. In those from my past employment but I've I've used the instruments you're talking about for years and years and years myself and as have. My clients and so it was only when we just kind of give back to the demographic. Component here should keep in mind I'm on the leading edge of this wave of baby boomers retiring. Fewer and fewer people to pay for Social Security Medicare Medicaid and so forth to which tells us. At some point in order to pay for all of these things that we eat our whole generation is expecting we've been promised did talk to anybody over the ages sixty year. All of their own our guy mom pay did not pay into it and it. And we are such a huge cohort of of the population and we vote in larger numbers that did it they're not gonna mess would that. What they will do however at some point they will have to raise taxes on current war curse. And that is why this is important especially. For people who are in high income brackets now. And younger. And that and this is type of people we have we have a number item number measure of physicians. Attorneys fees and professional people small business owners can look. It would make too much in my you're describing is a segment of the population that make too much to contribute to a rural areas IRA the idea people like Ross because again Uncle Sam is not your silent partner Richard limited on how much you can put into the X you're bad in also. Because it is just tax code the government come can come. In changed debt yes. I sure can't say looking at alternatives to the tradition all. Instruments in your financial play and as a part of tax diversification we talk a lot about income streams and so forth. What if you could have a tax diversified income stream hearsay here's the rub with an irate suit. I've had say give people in this necessarily bad news it's bad news because people aren't being able to cheese when they take money out of there IRA right. They had someone telling them you have to take the money out not because you need it. But because I need it I would be an uncle saying him not because I think it's in your best interest but because it's and modest interest. Says if we could set up a play in number one where you can put it unlimited amounts of money into it. Number two the government wouldn't dictate TU we new take it out. And then number 31 if there was a little bit of a long term care component to that that's scope and military strike there. When you do take it out it isn't. Text and we can only stomach tea would go back to you're armed anything and this conversation with a client this week who is just turning seventy. In the next few months. So. This is that this is the unspoken truth about required minimum distributions most people think. So let's tissues around number let's say you had a million dollars sitting in this thing. Well you're going to have to take roughly just a little under 4% out your requirement you showcase CUQ you pull 4%. Forty. But you're in your typical diversified stock and bond portfolio and the market finally does what we expected to do at some point which is. Correct which it always does nothing goes up forever so the market's going to creek at some point in fact we think it's going to be good. Easiest time. But that's another story. But when Endesa less say the market corrects you've taken your 4% a year because the government's forcing you to do so. But you also lose let's say 30% over two or three year period seemed taken over that three year period. Let's say 12% and income. And you lost 30%. In the market. Your principal is now down 42%. In three years time. You think the government cares do you think they're not they're gonna say all it's okay it's cool you have to pay Amy written any requirement district and our union is going to know. Furthermore your foreperson you're you're required minimum distributions are instead of coming out of a million dollars. Are coming out of what's left. Of your portfolio. It doesn't take a mathematical wizard to figure out that if that continues for any length of time in you do live thirty years somewhere in that thirty year period the money is gone. And that is what we use common since retirement planning one not to happen to you or any of our clients. We don't we would love for you to come men and sit down with us and let us have a look conceive weekend helped you. I don't know of anybody he doesn't wants in tax diversification your portfolio and we certainly have insurance that we can put in place to help keep with that. Outside the box in this crazy market and we can certainly help PG yet. Clemency SR give us a call at 1800. 6876768. Or look us up on the web at common sense retirement planning dot com. We have a full show and for you today we gonna hang in there and not see what's coming up on the second half of the sand. And this has been a fascinating week because of what's happening with the tax code I'm talking to Chad. Chuck forward Charles for our go to CPA guy and as soon as they finally. Get a finalized version and is voted on and pass because of keep in mind so far much of this has been conjecture this week but once we actually know what changes at ten year going to happen. And has passed and signed in the law. Then we will have its chip Ford come on and and sort of give us the lay of the land on how. We can be Smart with tax planning ideas and it it it's one of the nice things about comments since returns I think two's we have. A lot of experts in various fields that the work alongside us they help. We if you tax planning attorneys they did do what they do estate planning. The set and about Amin in her house and I forget it. What I think people need to understand about all this capture form that trump is doing. First of all they're going after him with like daggers program. Though the left is. The other thing is is it to say it's our one that it can make tax reform and one but it can reverse tax reform. So you better buckle up and be ready for any event to get any direction the score and market. Amen and remember too that we needed tax playing the way we talk about it it isn't what's what's gonna happen in the next three or four years and whoever the next president may be but what's gonna happen mid likely next twenty. Thirty years and that's our our work time for him. So listen outcome in CSC. SRP dot info at web site 8068767. Succeed phone number. How ever you managed to come and see us it will be worthwhile thing for you to do. And please do possibly for stick around we get another half hour come with some lower interest in things where you. Well good morning welcome back to common sense retirement planning and Jeremy dale with the level you Rebecca Kincaid Philip not with us today even bid under the way he sees. Been gone for what throughout the longest. We need these Indian act estimates that you can think on again he said. Oh god they're gonna forget to laugh AM mass think of legality and unforgettable. Away if you missed it he should go look at this. You know we talk I'll talk a lot about Philip going in getting near big bear he was on upstate outdoors. With Philip and Tommy in it they interviewed him last Saturday but but if you go to their blog. On one of six point three to be already dot com. And look at that you can date they were whole article. About the interview felt and there's a picture of Philip and his mayor. You must go look at this you really GD muscular look at he skies you just. Bill do you how freaking Beijing. The Bay Area are now. It's it's a it's a monster what else would you call something hit me I don't and that wasn't. Eight feet to a thousand pounds. That wasn't even a trophy size they have and that the two big wins and Wednesday for trophy size or ten feet and 15100 am I getting that fits in what would you call them but a monster. Would totally freeze CDs hustled. And he warned me he was after me for months to go hunting with him up there has like I. I'd rather be tied to order imposed and be for a week well after recently conditions that he result in addiction and a way. Not for me. Well speaking of big errors the system tie it into the stock market here. There's a reason why they call big corrections and long corrupt live corrections in the market beer markets and the reason is is that people's. Life savings get mauled by those monsters to. And there is. An ever increasing. Number. Of voices out there of highly respected experts. There have been warning for quite some time. It it isn't if the market is going to correct but women and how much and how long this correction might line. And one of those voices and it's the one that I listened to arguably more than any. Is that Robert Shiller now Robert Shiller you wouldn't know the name the Schiller case index is that that is and an index that he created. As a measurement of of what's going on in the real estate markets. But he also. Created the cape could he shall work cape. Price to earnings ratio as a way to accurately measure the value of stock market. End. I'm holding a chart which of course you can't see. But if you saw this chart it would it would be an eye opener to you because first of all and you probably know this if you know much about investing. That the wade did a stock is valued his will call price to earnings ratio and Robert Shiller one Nobel prize in economics about four years gulf. Park in park like creating his very index I'm referring to. OK so. The only other time at times that the cape ratio has been as high as it is currently. Was on black Tuesday in 1929. When he was a little lower than it is now right at thirty dollars this year. And in 2000 and and right now as we see here in the cape ratios just short of 32 dollars a share. Now dean norm. The normal the median. Number historically. Is sixteen dollar share that is twice. What the normal days now you might ask why is that so important. We know the gravity is real we note that in for peace Israel to quote sir Isaac Newton what goes up must come down. And if you study marketing history which we have extensively you will discover. Markets go up and sometimes a dramatically as we saw them do in the run up from. To 2000 before that crash and such as happened over the intervening years from the big. Crash in 0708. To present. Here's the point of see fewer young person in the market crashes. And it's not as big a deal because you have a lot of years to continue to invest in and take advantage even of of the buying shares are lower prices if your dollar cost averaging. But if you are looking at this from our perspective which is all about retirement planning. Dean. If you suffer big losses like peace. Leahy senior year when you're within say 1815 years or retirement or warship you're already retired and this occurs. This can absolutely devastate you. We talked about and all of the dangers facing one longevity inflation and Social Security is questionable state east things. But. As mentioned earlier you suffer a massive loss in the market while you're taking income you have now in danger yourself and your spouse. In the possibility of running out of income and why because the one thing you're going to need more than any other thing. Is certain. Absolute certain income this is why we mentioned. Retirement income generators rigs we are big on the use of rigs because. They are they won the foundational. Element. That will make sure you have. A fearless. Retirement. Because if you're worrying constantly about oh my gosh I lost earning a marker I'm having it take armed we have got to take this money live on all of that thing. And in the market's going down. It it will absolutely each who look inside. You talk about anxiety. Think about being sent me five years old eighty years old and soon the running out of money. I think it's un is inconceivable and yet it's very conceivable cassette is going to happen to a lot of people but it isn't going to happen to our clients. Because we have created for them incomes that are absolutely certain. And have a component by the way to help him stay ahead of inflation. And way to pass whatever is left on to their ears and a tax efficient manner hikers were on just investment planners were. Retirement planners and and is arming focus and if that is your main interest if that is what you've got to plan for. Well if you need major piece fixed you wouldn't go to C a podiatrist which. And he's done this Spartan then right right and even though they may have a lot of salt. I'm sorry. Blaring but you know Paul Bunyan with advertisers anyway department appointees there is. Please don't see SC SRP dot info. Led to sit down and in in craft a retirement income generation plan for you. Here are two problems with the Wall Street's retiree problem could be people are in the market. Two things I'm united discussed a couple of them quickly the past must predict the future. And consumers always act rationally thought yeah egg it. Wall Street solution to the need for income during retirement begins with two killing falls. The first is a solution requires consumers to act like Hamas economists. Making every decision rationally with talk about many Toms how money is an emotional thing. So we don't make rational decisions the second fall is all day every performance graph. And table has some variation of the warning you should not rely on past performance as a guarantee future results. While street does. And here are the consequences. Possibly learn retirement income. And certain request. Aid and you can still ran out of money. Another problem is it even had a overriding need for mesh retirees is in com. Wall Street has consumers building accidents and then selling assets which is inefficient. May inching and selling these accents. Is an attempt to maximize in com and not run out of assets while living requires. This is theory is as to exactly to your point about and it wouldn't that the dot ships. Hello to admit or not run at a baskets while living requires ongoing management and analysts are retirees financially savvy. And we're remains to retire he won't need to pay ongoing phase well that's counter productively when and minimize taxes minimize these in retirement. Not and they eat it taxes we want to minimize taxes when at all possible. If the dizzy even retirement is running out of money. The Wall Street perch continues to charge for it. As a chronic illness. Without here. Still only look at this there's a couple of things and how one seed. Be specific about talking about would this particular article that was in the index can Indian jet Miree in his sheet in the retirement income space. He's very well respected and we get material from him. This couple's nicely with an article I can't hear from MarketWatch. You mentioned epidemic in this on an epidemic. Living alone time is better than the alternative. Is better than living a short time right so only look at age and retirement. They're so important and never come such a concern for our seniors. It's been a subject of the national press foundation I went to the White House a couple of weeks ago at. And that was one of the topics Social Security being one of them. But one of the things that they suggested was to create a budget which we all know that we should keep that in retirement but the thing is. Is there was a lot of talk about health. There was a lot of talk about dementia and diminished mental capacity. So I wanna talk about that just a little bit and then I would have brat pack around some announced. Is she is prevalent in older people regardless of the illness itself. And I thought this was fascinating. If cancer were cheered Tony people would only extend their life expectancy back three and a half years because another disease would take its place. It is a very likely that people 65 or older in the mean Paul's first second they're 65 as a pivotal age you got Medicare we talk about that was Frankel event last week. The thing is is that statistically. You're likely to have Bulger appeared in after the age of 65 a 70% likelihood. But what this article goes on to say is the actor 65 you'll likely face two or more chronic diseases. And this has come from Luigi. First she she. The scientific director of the national institute of aging. Eight in ten people have at least one chronic illness all the time they turn fifty years old and that's according to the national coalition on health care. You say why would you say that well I'm referring back sees. The Jack Kamerion article. AJ said that you're gonna have to manage ceasing defeat she usually your assets in their risky position and what we would define as. An investment. Position. If he had an investment plan that is one and where and bless their retirees financially savvy immoral or Mac will remain says well I hate says big debater bad news but that's not what it's. Studies show that's not with the national coalition on health care tells us that's not what the National Institute on Aging tells us. What it does tell us is that having a guaranteed income stream to keep him budget around. And that you don't have to manage our daily basis and have to worry about being destroyed vast seized. Is going to be important for the average senior out beer in the retirement industry right now. I owned jumping in here because I mentioned this article. Or this study that was done at Stanford university in the society of actuaries and you keep bringing up this word risk in this is when when when they. Created this term retirement income generators from green eggs. They went on to say. That they should focus on sources that Gary routine eat the ability to cover sexual expenses housing food. But they must be things did do not. Have stock market risk attached to didn't want to Stanford saying that's Tony Dale's right why would that be. Because of what exactly you just say that when I mentioned earlier in a different island way to illustrate it. If one is taking income which you must to survive. And the market does what the market does and during a typical retirees like they're going to be subject to three to five bear markets around in typical career twenty to thirty retirement. So is not if you're going to have to deal with the ad is going to happen the only question is. Are you going to be able to deal with it in any risk on one. Or risk off. Environment. And today us on. Thank you Daniel son Daniel circuit race gone well. Risk and that's very good time is this key times or why aren't his colleagues I'm sorry if I take you let and they sang this same article listed in the same. Article that I have here from MarketWatch. The need for retirement income measured in our rising health care costs. Longer life expectancy. And a low interest rate environment so holiday things keep coming up and coming up and it's interesting because we Pratt separately for the shad. Say we look at different web sites we look at different things and this is a resounding day so am ID imitate ad did not net. It was very interesting to me and this is where you come for information. It's outside of the mainstream financial press which talked a lot about student loan net. To say it will gosh that's like I'm an analyst feel as ours are subject matter we talk about such security today. Another area of trouble with seniors we talk about seniors fish rolling their retirement for a down payment on Helms cellphone bills to we've got 34 year old adults on their parents payrolls still. Did she NN. Another area of trouble is when seniors take out student loans for fame members aren't we know that we talk about that. In their usual loans. Art paid off. They'll linger can take Social Security. As pavement on minor yet. More than a third thirty said I'll just 40%. A federal student loan borrowers 65 years and older were in default in twenty. Seen as a result my gosh I'm not kidding is a huge day and be manipulated extend it year. The net and I mean appointee is just I these brought these mumbling to me as goofy as I look people point meal with her own united you know. They never borrowers sixty and older jumped to two point eight million. From 700000. Between 2005 and 2015 Indian now attitude. Grew to 23000. Up from 121000. Nearly doubled yeah nearly. Double. So. I do not know it did you read that now and up all the say it and what they're doing is and this is an article in the wash tree journal two areas. They're making it so easy to borrow money. ES sent me. He had checked that yes sad day here's a loan that we don't know if you are built and financially capable of prepaying it but here it is. Can you pray you stepped eat he stepped right into too good to deal Locke OK so let's examine the larger picture then. He's talking about dead right. So the entire. World now. Every major government. Every pension fund. Social Security Medicare Medicaid could be called scared because their promises yet. Our country is now. Twenty. Almost 21 trillion dollars in debt more than we produce any year not even counting. Social Security Medicare promises bald fat. The new attack on consumer debt which is our highest Bisping and they knew catch on student loan debt which is what you were talking about now let's look. Look at that you put those aside from him and think with me here. Let's take a long term leaped into the future for a moment. So now you have it's twenty years down the road. You have two thirds of the baby boomers now in retirement expecting Social Security Medicare and Medicaid in many cases to pay for long term care because they can't. Yeah. But at the same time. The people are now in their twenty's the Moline Eagles and the generics are doing their theories. They've grown they're now in their forties and fifties. They're not as many of them and they are being asked to pony up tax dollars to pay for all of this. So politicians have been. Painless rosy picture of the future show you'll elect him year after year after year after year by promising all of these things. Gold backed study history see what happened to the Ottoman Empire see what happened to Rome. Debt is going to destroy. Fortunes in this country in the world is going to destroy nations. And if there were ever a time in the history of the world to be careful with your money is now. And that is what we urge people to do. Doomed so. That that's a big chunk of information to to digest I realized. How did not I jeez I didn't know that that were people who TT. Really think about decisions that will affect in the long term like that or even. Ask you set an out you know you'd get in it gets up into. On the parent the children union that kind of aimed helicopter parenting I get that I have three children. I don't know what kind of parent I'll be when their older I'd like to think that they'd be off the payroll. But she the other thing they just say Imus and of course the promise of being paid back right I can't good luck right near the loan money that family leave it right just give it to Lama appeared indeed that that's what they framed with. Yet people like major decisions like that about their pension payments to do they just say I will this is what I should do without looking at the facts. Looking and a decision that they cannot change to what they what they have elected an option web people who come in who don't know the effect that their death we'll have a managed paths. Their ill prepared to bridge that gap when it happens in outside and I know am I imagine port Katie my assistant I'm Mike all over the place. I said this flood of these floods of spots right now. He had people making decisions about their pensions they don't know the effect of the other thing that she had this yet people right now you have what's our recent C bias. It's a breach since I missed. All right sick people or making decisions about their financial future based on the minister resent feeling inexperience that they have. That's what they're doing it here's what Buffett said about that. Bull markets. Are like six. At Phil's best just before Indians. How they popped up at that would be heard it. Appropriate here it really well India that they use it he went on to say based on mosque sun times unlike unlikely. And luckily and lucky. Experience of sex and bull markets. I would add another commonality. A climax. Is sometimes reached before every participant realize that the party even. Unlike get half of Buffy is. I'm not well in outlets in jacket pocket and a lot of information. On my ring and let you sit here today baby I add it as really good stuff and what is it like how to. Doesn't that risen we. It's you know everybody's got their hands in a year at the markets the markets but I'll get what. Robert Shiller highlight yet know with a title of his book irrational. Exuberance. Yet that is what we're talking about and this is what happens again. I know you probably don't do this Ayman peaked if they tease me work for being the chart geek as a play on you our charity but. Going back in studying these history of any kind is. If you wanna know what's got cleaves he asked these and what has been is what will be there's nothing new under the sun. Time to read time to plan to all that. Everything's cyclical the entire universe is cyclical. Therefore if that's a fact and you know that's true and you see get a particular cycle has had an enormously. Unnaturally long run. I eat our current stock bull market. Some in ought to be telling you. This is got to change at Saddam the longer it goes to close we are to the change and win the change occurs. If you are the last one. To wake up to it you are going to be in a world her and we can be another reason. Back when the last market crash happened. We had just a handful of exchanges. Today he we have all these computer generated algorithms ETS Ali sings. They're based on just following index movements. When the market crashes this time it is going to be quite a different thing. Because when people start to sell at the same time the computer algorithms are all going to be changing simultaneously. And you may not be able to sell your stuff quickly enough. Not too soft for suffer horrendous losses. Now that's fine if you're 25 or thirty years all but if you're 55 or 65 your original and that your entire life savings were talking about. And you may live twenty years Ewing had better have a different plan. Actually there is a different plan is called common sense retirement plan that's what we're talking about and that's what would you should be thinking. About. And doing something. About port. And it is so easy to do my show you Kennedy. If you sit in front of your gang computer. And type in seat is RP dot. Info are you really typing right now and over again riddled with here from justice out Orleans. Tonight when they get keyboard at midnight. I can. Voted anyway. I was seriously please come NC is that cost us paying you a thing for to sit down with one of our common sense retirement planning team. And do comics and retirement review find out what your situation is give you an idea what kind of risk you may be taking you don't even know about. Talk to you mess that was some good Social Security strategies. Most important thing is though. You tell us what you're trying to achieve. And we will craft a plan that'll get should be here. What gave you read or rip or. Just feel PC today still. Well which we have to make up for Phillips humor today and well and missing army killed a man I miss him being minor he brought in the warned about the growth that's the quote this I ask you a reason jealous button I have to I cinema and actually not an article I knew it like it. What do they view it said it now what do dent to get back to it Social Security. When it was couldn't allow in 1935. You talk about the birth rate he Merck quoting the number of workers. At the top when it was crashed in 1935 there are actually 42 workers contributing to the Social Security for every one person who actually injury to benefit I didn't wanna. When Iraq back around to give that information so people came back from the war. And they didn't. Right but the average IP space is in 1935 with 62 years old in the official retirement age was sixty. Study creators of Social Security in this is the God's honest straight. The creators of Social Security never intended for most people would ever collate the door and ended they did it will be a short time as I enough. Age we're living that law and said there's a fundamental. Problem. With how the Plame was cracked. Just how to properly. If there's a fundamental problem and how they built the Social Security plan back in the day. Things have to be done differently and they war back then because the markets are different that it and technology was different at hand. So it's it's fundamentally needs to be updated now how is that even any different. And what we need to do going forward in the stock market this is not the stock market from the 1930 times there has to be some changes there have to be changes made. Think it's lost on best bet this is a scary time retirements a scary time. Now so I'll share this treaty a couple of things. The first two years of retirement at pars you're meeting mating from human capital the financial capital and can be a scary thing. And Lance. Your financial capital it's you know that is going to be gear and axle we wanna do we wanna take at least one moving art out of the equation. And dvds and empower you to retire confidently. And move forward with confidence to Jeanne and the plane is in place. You know hearing control and they your money will last. As long EG so go to your keyboard and CE SRP. Dot your chicken I don't know oh lord kids can see that and series of please come to show and you'll enjoy it actually we're we're actually kind of fun people. And now we have real pretty office but most importantly we can help which reminded these. Listen thank you so much for joining us today and hopefully next week our good friend and partner Phil Powell will be back with a scandalous and have a great weekend.