RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:00:00]

ANNOUNCER:  You found it.  It’s your safer place for retirement planning.  Prepare to be coddled in pure fiduciary goodness with your host and president of Decker Retirement Planning, Mike Decker.  This is Safer Retirement Radio.  If you’re in or near retirement, listen up and learn about a math based, principle based approach to retirement that is designed to help you enjoy a safer retirement.  These strategies are to help protect and grow what you’ve saved and live the life you want today.  So grab a pen, because your safer path to retirement planning starts now.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:00:37]

MIKE:  Happy holidays everyone, from Safer Retirement Radio and Decker Retirement Planning.  What a special time, what a special season.  Clayton’s joining with me today on the show.  We’ve got some people on vacation, we’ve got some people in the office.  But the beautiful thing is there’s a sense of togetherness.  I don’t care if you celebrate Christmas, Hanukkah, Kwanzaa, not religious at all, we all celebrate… I guess a few people don’t celebrate New Year’s, but it’s such a special time of conclusions.  What do you say Clayton?  I mean, do you have any family traditions that you guys do every holiday season?

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:01:12]

CLAYTON:  Yeah, we do.  You know, thanks for having me on again, Mike.  I love being here and, you know, I love this time of year.  So I live in a pretty snowy place.  We live in the foothills of some mountains, and I mean, just the other day got 10 inches of snow.

MIKE:  There’s deer going through your yard all the time.

CLAYTON:  Yeah, it’s…

MIKE:  Daily almost.

CLAYTON:  Yeah, I love where I live.  I’ve got a gorgeous view, love my neighbors.  But where we live, lots of snow and so my tradition is shoveling.  And I haven’t bought a snow blower yet.  I’m sure at some point I’m going to need to because I live on a steep-got steep driveway.  But when this time of year rolls around, one of the things that my family does is we actually get together the day before Christmas Eve to do a family celebration.

MIKE:  Mm-hmm.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:02:00]

CLAYTON:  And it’s a lot of fun, so I’m looking forward to that.  We’ve got that coming up here pretty quick.

MIKE:  I want to ask on the radio, ’cause I thought it was the funniest thing in the world.  You recently bought a new home, and your home did not have a fireplace that Santa could go down, and your kids were very concerned about this.  Am I understanding that right?

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:02:22]

CLAYTON:  Yeah.  So I’ve got three little kids.  So I’ve got a seven year old, a four year old, and an almost two year old, and one on the way.  And the question came up a few weeks ago, Dad, how’s Santa gonna get into our house?  And I paused and thought about it.  Because the movie Santa Claus, we know that in the movie it shows what happens.  It shows that the radiator converts into the fireplace where the stockings are all hung.  And so I was trying to come up with something for that, and so I was able to get a sweet deal on a fireplace, one of those portable fireplaces.

MIKE:  The electric ones you plug in.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:03:03]

CLAYTON:  Yep, yep.  So I’ve got what’s got the lights and everything on the front of it, it looks really cool, it’s not going to burn my kids’ hands when they touch it.  So it’s a great alternative, but it meets that need for a fireplace in the home.

MIKE:  Mm-hmm.  That’s problem solving right there.  And they, you know, traditions are fun.  Hopefully it’s a time that all of our listeners can just listen in and enjoy kind of moments like that.  Things that just, you just go aww.  That’s fun, that’s cute.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:03:34]

MIKE:  But, I mean, we’ve got a lot to talk about today.  It’s not as cute is that.  Talking about the Fed, talking about 401k contribution changes.  We’re going to be talking about a number of different things.  But even though we dive into the weeds, and the show is to provide you, the Safer Retirement Radio listener, value in your life.  We hope that that at no point either in this show or in this season that we forget what matters most.  Time is our most precious commodity, and when we can enjoy those moments that just make us smile, that’s really the-that’s why, at least for me, when I come to work, I want to help people retire.  I want them to be able to enjoy these moments.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:04:13]

MIKE:  I want them to be there.  It’s a beautiful thing when you’re just able to be there.  Like I said, we got a lot on the show today.  What I want to talk about first, Clayton, and we’re recording the show on Wednesday.  We record it Wednesdays, release it on Friday via podcast iTunes or Google Play, at deckerretirementplanning.com, wherever you get your podcasts.  Friday the 20th, December 20th, the President of the United States may and is expected to be signing the provisions of the SECURE Act.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:04:47]

MIKE:  This has huge impact on everyone.  So I want to go through at the beginning of the show, before we dive into the 401k, some of the most overlooked tax breaks and deductions, some travel tips and so on and so forth, the meat of the show.  I want to really start with the biggest impact, and I would call this political risk.  All retirees and near retirees, just hear me out on this one point.  Political risk may not be talked about enough in a retirement plan.  For example, this change right here could disrupt a significant amount of retirees’ plans.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:05:29]

MIKE:  By following the principles of retirement planning, the clients that we have that are following this, barely affected.  So I want to go through point by point and, Clayton, please comment as you feel necessary here, of just a few of the highlights of the changes of the provisions to SECURE Act here.  And keep it mind, if you are going to be retired for 30 years, political risk is a very real part of your retirement plan.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:05:57]

MIKE:  The first one, which I think is the biggest one, is limiting your stretch IRA, okay?  So let me give you some context on what this is.  Instead of withdrawals from an inherited, so non-spouse IRA, being stretched over the lifetime of that beneficiary, many will be required to take withdrawals within 10 years after the original account owner had passed away.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:06:28]

MIKE:  We’ve talked before about the lottery effect.  If you have a million dollar IRA, for example, and you have one beneficiary, I’m gonna simplify the situation, and you want to make sure that your beneficiary does not receive the lottery effect, which is when a large sum of money goes to them, that it destroys them.  They forget how to budget, they forget the ethics of hard work.  They become, and I don’t want to offend anyone here, but essentially a trust fund baby.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:07:06]

MIKE:  That the principle of hard work and discipline goes away, and it destroys a lot of people.  We see this when people win the lottery.  We also see this when a retiree passes and their kids get an ungodly amount of money, and they lose all self-respect and they go crazy, and within a few years they’re bankrupt, divorced, and miserable.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:07:30]

CLAYTON:  And you know Mike, there are-I’m sure some of you out there would think, well, that probably doesn’t happen that much or that’s not that bad of a situation.  We have seen it.  We have seen people that are affected by what we call the lottery effect.  And it’s something that, as a planner, when I was meeting with folks, I wanted them to be aware of this, because of the things that they can do to set their estate up that can avoid this issue.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:07:59]

MIKE:  Money changes people.  It’s just pure and simple, money changes people.  The seven deadly sins, greed is one of them, and it infects people in these situations.  Now, here’s my context in the…  Sorry to interrupt you Clayton, why I think they’re doing the 10 years after.  Uncle Sam is the biggest beneficiary, in my opinion, aside from your actual beneficiary, of your IRA.  Because, Uncle Sam, at least, except for the Roth IRAs, Uncle Sam gets paid on that.  This I believe is an attempt for all the Baby Boomers and greatest generations who will pass to get Uncle Sam paid back faster, more effectively, and to help reduce debt.  That’s a good cause.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:08:41]

MIKE:  But in the ‘80s and ‘90s, as we were working and able to put away money, we were told defer, defer, defer, fill up your 401(k), do matching, do more, defer your taxes now, and it grows tax free, and it’s this incredible thing.  But what started out as a small, good innocent idea has become a monster for most people’s retirements.  And we’ll talk about the retirees’ changes, but for the beneficiaries, this is a game changing moment on how you’re going to distribute your estate to your beneficiaries, without setting them up for failure.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:09:19]

CLAYTON:  And I want to, for those that are just tuning in, I want to add that we’re talking about the SECURE Act.  And what the SECURE Act is, it stands for setting every community up for retirement enhancement.  Now, more specifically what we’re talking about are the potential changes that could go into effect January 1st.

MIKE:  As you’re listening to this, they will have already been decided.  We are just recording the show before Friday, because it’s the holidays.  And so if it’s signed in, tune in.  If not just fast forward a little bit, and we got some other great content that is a sure thing.  But Clayton, keep going.

CLAYTON:  But this is the biggest change in legislation for retirement accounts in the past 13 years.  So this is a big deal.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:10:02]

MIKE:  Big deal.  The second point I want to talk about is annuity allocations in the 401ks.  The rules surrounding liability concerns have been relaxed.  Based on my experience, research, and observations, when rules become relaxed, abuse comes in.  Let me use the housing market as an example.  When rules became relaxed for the housing market and how to do a mortgage, for example, the NINJA loan, no income, no job, they were still approved.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:10:36]

MIKE:  Annuities are incredibly complex investments.  Now I’m not suggesting that it’s right or wrong for you.  All I’m suggesting is, they are very complicated investment vehicles that need to be understood before you invest in them.  Whenever I see that liability concerns or rules have become relaxed, my antenna goes up.  Please, please, please, I’ve seen too many annuities come through our office where they could not make more than two percent a year.  Where they could not even… in one case, they could not make money every year.  They lost at least one percent every year, and it was contractually impossible for them to make money, because it was set up wrong.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:11:23]

MIKE:  My huge warning.  I’m not for or against them.  In fact, they’ve done well for certain clients.  They’ve done terrible for other clients.  All I’m suggesting is make sure that you do the due diligence before you sign up, because when people sign up and they come into our office there’s only so much we can do to help you fix it.  That’s all I’m suggesting.

CLAYTON:  And another consideration too is your plan administrator for your 401k, that has been specializing in other securities, in other products, besides annuities, all of a sudden they have a tool they can use, that in a lot of cases, they may not be very experienced in what they should be offering.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:12:05]

CLAYTON:  And so your consideration that if you’re plan-your benefits administrators starts trying to throw an annuity at you, be considerate of that, because they may not have the experience.  And so go out, get a second opinion.  Talk to somebody who will give you a consultation and talk you through the pros and cons, the features, the benefits, the detriments of an annuity to help you understand it better before that is something you get into.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:12:30]

MIKE:  Mm-hmm.  Work, work.  We may be recording this in Utah, but we’ve got offices throughout Washington, Utah, and California.  And if you’d like to continue your education, your research, clarity comes-or comfort comes from clarity.  And if you want to continue the conversation and work with a purebred fiduciary, we’d love to have you.  You can call us right now at 833-707, let’s see, 833-707-3030 right now.  You can call us, get on the phone, one of our wonderful representatives at the call center is going to pick up the phone, gather information, and then on Monday we could reach out to you.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:13:02]

MIKE:  And yes it will be available Monday.  I know it’s the eve of Christmas Eve, but we’ll be available.  At least get that on the calendar and penned in, because here’s what we know.  Even when we’re on vacation, markets are moving.  Even when we’re on vacation, policy’s being written.  Even when we’re on vacation, tragedy can happen.  We want to be here available to you, kind of like Sherpas walking you every step of the way to help make sure you’ve got a safer retirement, that you can maximize your retirement outcome, whatever that looks like to you.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:13:33]

CLAYTON:  And if you’re hearing this over the weekend and you like to read, we do have some ebooks available for download on our website.  So check those out because there’s a lot of great content.  Maybe you are someone who isn’t quite ready to have a conversation with someone over the phone or in person.  Maybe you’re still trying to do your research on your own.  These books are a couple of great resources to go through and to learn a little bit more about how your retirement can be affected by a proper implementation of a retirement plan.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:14:03]

MIKE:  DeckerRetirementPlanning.com, go there right now or call us 833-707-3030.  Let’s keep going here on… we’re talking about the SECURE act provisions, or changes.  We talked about the limited stretch IRA.  We talked about the annuity allocations in a 401k.  There’s a no IRA contribution age limit that they’re suggesting.  Like 401ks or Roth IRAs, contributions may be made to an IRA can now be made by those working past the age of 70 and a half.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:14:34]

MIKE:  I don’t understand why someone would contribute to a 401k or an IRA in that situation to grow what could be developing a very significant tax burden in a very near future.  It doesn’t make sense to me, except for certain tax situations.  We are not CPAs, but that is a cool tool that CPAs will be able to use in very specific situations.  I just encourage you, based on the situation, talk to your financial professional and your CPA to see what can be done to help you proceed in making some tax efficiencies in your plan.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:15:12]

CLAYTON:  Well, another consideration is if you look at the historical tax rates.  We are near historical low tax rate right now, so taxes are… I guess you could say taxes are on sale.

MIKE:  Taxes are on sale, best sale Black Friday taxes.  [LAUGH] It’s not too late, everyone.  Buy now, taxes.  But it’s true, right?  Do you want to pay X now or in 10 years you can pay 10 percent more on your effective tax rate.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:15:41]

MIKE:  If you want to read The Power of Zero, Brian McKnight articulates it beautifully.  He says, folks… this is a summary not an exact quote.  He says, folks, taxes are on sale, they’re expected to go up, and believe me, going up just a little bit like a 10 percent is not out of the ballpark.  Look at the history, look at what we’ve experienced before.  It is no stretch of an imagination to be paying more in taxes because we’ve been there, and it’s expected to go back to something similar.  So if all things were equal and taxes never changed, this would be a different conversation.  But given the… I can’t think of the right analogy, but all I can think of is there’s an 800 pound gorilla in the room, and it’s called national debt.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:16:29]

MIKE:  At some point we have to deal with it.  And it’s your taxpaying dollars and my taxpaying dollars that is going to help alleviate that pain.  There’s a saying in the industry that I absolutely hate.  It says, it doesn’t matter until it matters.  I think that’s the most ignorant, selfish, ridiculous phrase I’ve ever heard, but that’s how a lot of the financial industry works.  2008, the housing market, it doesn’t matter until it matters.  Well, it certainly mattered in 2008.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:17:00]

MIKE:  There is a huge debt problem, and you know what, it may not matter now, but at some point it’s going to matter.  When it does, taxes are probably going to go up.  If taxes go up, how does that hit your retirement?  If you had to pay 10 percent more effective tax rate on your retirement income, would that be a life changing situation or not?  Now we’ve got some cool tools here at Decker Retirement Planning that we don’t have time to fully dive into, one I call the tax buffer.  And it’s a way to minimize and essentially buff out the taxes throughout all of your retirement.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:17:33]

MIKE:  For our clients that are in the 10 million plus range, even we’ve had a couple in the five million plus range that are that are implementing it, and it’s saving them seven figures.  And for the folks here that have 500,000 to a million or so, it’s so effective.  It is such a cool tool to use.  It’s proprietary, we figured it out, and, well, the IRS is cool with it.  So…

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:18:00]

CLAYTON:  And if you think that this is something that you might be interested in or you wonder how it would affect your plan, you’ve been talking with your CPA about your taxes and trying to minimize your taxes, our purebred fiduciaries at Decker Retirement Planning can help put this into practice, along with the help of your CPA.  There’s a lot of potential benefits that can come out of it, but if you’re curious on if this is right for you or not, you want to see how it would fit into your retirement income plan, give us a call, we can take a look at it.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:18:30]

MIKE:  That’s 833-707-3030, or you can go to DeckerRetirementPlanning.com.  Again, that number is 833-707-3030.  Let’s talk about the next one here, Clayton, RMDs at age 72.  I love this one.  I love it, I love it, I love it, and here’s why.  Most people are unaware of the runway that they have, and there’s a beautiful runway, that all retirees have from the age of 59 to 72, and it’s the tax minimization runway.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:19:00]

MIKE:  Oh, it is so much fun.  When you get someone in that’s 59 years old, they’re six months away from their tax situation and they have 80 percent of their assets in an IRA, and we explain the tax problems that are about to happen in the future, not only does the blood drain from their face, they go white.  But they realize, had I understood these problems, I would have invested differently.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:19:32]

MIKE:  It’s a very harrowing conversation for just a brief moment, because we are here to give people clarity.  And the clarity comes in by saying you’re still playing ball.  There’s a beautiful thing, it’s the tax runway.  At 59 and a half, you have access to start taking IRA distributions, if you want, and I’ll use IRA distributions as just an example, penalty free.   Before that, there’s an extra 10 percent penalty on any distribution.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:20:00]

MIKE:  Now, all your IRA assets are subject to income tax, so all of our listeners in Washington, for example, good for you, it’s a tax efficient state.  In Utah, sorry, you got state income tax.  But the beautiful thing is, when you can coordinate your income, let’s say you retire at 60 years old, and you have 12 years to do tax minimization strategies and you can be very deliberate about it.  You can articulate your income in such a way, and we do this through a safer distribution plan, to where you’re taking non-qualified assets as income, so your tax burden or income tax virtually dies off.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:20:38]

MIKE:  Then you’re converting IRA to Roth assets because Roth grows tax free, and it distributes tax free and it goes to your beneficiaries tax free, it’s a beautiful situation.  But you can’t do it all.  I know we said taxes are on sale, but please, I don’t think any finance professional would do this, but for the sake of argument, you don’t convert it all at once.  You slowly hack away at it in a mindful way, in respect to the returns you’re also getting on your investments.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:21:10]

MIKE:  You don’t want to pay too much in taxes and have too slow of a return.  On the same token, you don’t want to convert too little when you have a higher return.  There’s a beautiful balance in that, and you can slowly hack away at it, like eating an elephant, one bite at a time, to where when you are 72 years old, if this has passed, that your RMD burden, and I’m calling it a burden because Uncle Sam is now forcing to get paid back on, is not forcing you into the top tax bracket.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:21:43]

CLAYTON:  And a consideration on this, 70 and a half to 72 might not sound like a long time, that’s a year and a half, but that is two and in some cases three calendar years of extra time to deal with preparing for those RMDs.

MIKE:  More people put away more in their 401ks than they realized and they were unaware of the burden.  They were unaware of the consequences.  I’ll tell you a quick story, Clayton.  I’ve got a wonderful couple that I’ve worked with for years now.  She’s a math teacher because she enjoys it.  And just, salt of the earth, one of the nicest people.  They’ve got this beautiful little shih tzu dog that comes into the office with them.  And it’s just so fun, little black furry animal here.  And then she’s a math teacher, he’s retired, and he just enjoys the house projects right now.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:22:36]

MIKE:  He likes to stay busy.  He’s very physical, very just, you know, likes to get things going.  And this couple I mean, talk about pseudo parents or pseudo grandparents, just the most some of the most incredible people.  When they came to us they had about 10 million dollars, and they were 73 years old.  The financial professional who was articulating their retirement as best they could, through a pie chart, did not see this burden coming.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:23:06]

MIKE:  They don’t need income optimization.  They already have enough assets and they don’t need it all.  Their conversation is more around estates, charitable giving, that’s what they’d like to do. I mean for goodness sakes, what a saint she is.  She does anonymous donations to people that are just in the community, to help them out.  It’s incredible what they do.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:23:31]

MIKE:  They are stuck in one of the highest tax brackets, because they did not prepare properly for the required minimum distributions which happened at 72 years old.  They are paying more in taxes than they need to, because the preparation did not happen during the tax runway of 59 and a half to 70 and a half or 72 years old.  That right there is the attention that retirees need during the tax minimization runway to effectively prepare for the future.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:24:01]

MIKE:  Most of us are going to live to 80 to 85, maybe even 90, and if they figure out how to grow a leg, and we can install that again, we’re going to have 90 year olds in a couple of years running marathons.  I mean, maybe we even get to a point where we’re living to 150 years old because we can keep growing other limbs and putting them on.  Who knows what medical science is going to do and advance.  My point though is, we’ve got a beautiful 30 years of retirement to expect.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:24:31]

MIKE:  How do you want to spend those years?  Pay more in taxes or less in taxes?  That’s not meant to be a leading question, because objectively speaking how you treat your retirement tax runway situation is what your outcome is going to be.

CLAYTON:  And what we’re talking about for those that are just tuning in.  We’re talking about the effects of the SECURE act in the new legislation that by the time this radio broadcast airs, the fate will have been decided.  If this goes through, January 1st, so we’re just a few weeks out from this going live, assuming it passes through.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:25:11]

MIKE:  Quick turnaround, quick turnaround.  If you want to be talking about the tax minimization runway, or you like what you’re hearing here and want to continue your conversation, let’s invite them in.  It will be at no cost to you.  Are you okay with that, Clayton?

CLAYTON:  Let’s do it.

MIKE:  A little end of the year gift, no cost to you.  Call us 833-707-3030.  We’d love to sit down and have a conversation with you about your tax minimization moving forward.  It’s a critical conversation.  I don’t believe it is being done at the level that retirees would like it to be done, as detailed as math basis as it could be.  We do it through a safer tax plan.  It uses our safer distribution plan software, and then overlays a beautiful tax…  It’s kind of like you’ve got your map and you can articulate, okay here’s the burden, here’s the burden, here’s the burden, now let’s solve them.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:26:00]

MIKE:  That foresight’s incredible, you can get it, visit with us at…  And Clayton, walk us through the experience here.  If they call us, 833-707-3030, what’s the first visit?  What does that even look like when people come into visit with us?

CLAYTON:  One of my favorite meetings is the first visit because that would give me a chance to sit down with couples or individuals that are looking for more information on their retirement.  So they’d come in, you know, we’re really proud of our offices, very nice offices, so when you come in we know you’ll have a comfortable experience.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:26:35]

CLAYTON:  You sit down with the planner, and that planner is there to find out what is important to you.  They want to learn about you.  And just like you’re there to learn about the planner and what they have to offer, they want to learn about you and what’s important to you.  And so that meeting consists of a conversation.  It’s not a sales pitch.  It’s not them trying to hard sell you on this or that, because they can’t do that.  As purebred fiduciaries, they’ve got to know about you and what is important to you, because these plans are so customizable and so personalized that knowing about every aspect of a client’s financial lives, that is the only, we feel, the best way to put together a plan for someone.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:27:20]

CLAYTON:  And so by sitting down and taking that time.  It’s an hour to an hour and a half of your time, that’s setting up the next 20 to 30 years of your life.

MIKE:  If you want to take us up on that gift on that visit, give us a call, 833-707-3030 or you can continue learning about us at DeckerRetirementPlanning.com.  On there, you can click, there’s a little form on the homepage there, enter in some of your information, we’ll reach out to you within a day.  We’d love to have a visit with you, at no cost to you.

CLAYTON:  And one more comment I want to make on the taxes.  I know some people might be thinking, well, I’ll just take the money and save it, I’ll just take the distributions from my IRA and save it, then I’ll take the interest and the dividend payments off of what’s invested.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:28:07]

CLAYTON:  Well, then the problem that you’re getting yourself into is you’ve already paid tax on that money once.  Now you’re gonna have to pay tax on that money again.  And I just don’t think that’s fair.  I think it’s inefficient to do it that way.  But again, this doesn’t apply to everybody.  Your situation is going to be unique, and that’s why we want to have that conversation with you, to find out how we can save you, potentially upwards of six and in some cases seven figures worth of taxes.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:28:32]

MIKE:  Mm-hmm.  Call us, 833-707-3030.  We got three more points here on the SECURE act, assuming that it passes.  I believe it’s going to pass.  As you’re listening to this you will already known that it’s passing, but we’re just going to have the assumption that it’s gonna pass.  If it doesn’t pass, I believe there’s going to be a variation of these regulations to be passed and adjusted.  So, for what it’s worth…

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:28:55]

CLAYTON:  We could make some bets, Mike, about who’s going to be right.  I could say it’s not gonna pass, you’ll say it’s gonna pass and then…

MIKE:  Yeah, you think it’s not gonna pass?

CLAYTON:  One of us… no I think it’s gonna pass.  One of us will be right though at the end of the day.

MIKE:  Puts you at a disadvantage.  So three more points here that are very important to note.  One is penalty free distributions up to 5,000 dollars from a qualified account within a year of the birth or adoption of a child.  I thought that one was very thoughtful.  It’s kind of like an alternative to an HSA, as you can put in there pre-tax just like an HSA.  You just can’t use unlimited amounts for it, but what a thoughtful way to help those who are going… are expecting to have a new child.  I just don’t expect a 70 year old to be adopting a child.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:29:40]

MIKE:  I’m sure it happens.  But I thought this was a very thoughtful aspect to encourage young families to take their employer up on matching their 401ks and being able to have that situation.  Anyway, I thought that was beautiful.  There’s small employer retirement plans have also made a few things, increasing tax efficiencies for plan sponsors can help offset some of the costs of operating the plan, just some thoughtful there.  But the last one that I thought was huge, is the annual disclosure of lifetime income from defined contribution plans pensions.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:30:17]

MIKE:  One of the biggest questions people ask, they’ll say hey Mike, or hey Clayton, should I take my pension, or the lump sum?  I mean, Clayton, you got this all the time.  I know in Washington, the most common ones are Boeing clients.  They’re engineers, they’re math based.  They want to know objectively what’s better.  And what’s interesting is this regulation says they are now supposed to calculate and fine tune how they can show the differences.  Basically how much income could be guaranteed from their current lump sum balance and give more transparency to the retiree.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:31:07]

CLAYTON:  The conversation that I had a lot of times with folks on pensions, and for those that have a pension, they’re still working and have the options to withdraw, whether it’s a lump sum or lifetime payouts, typically they’re going to give you four or five or six different options to take those pensions.  Now, a few things to consider when deciding how you’re gonna take that pension.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:31:32]

CLAYTON:  Three risks that I always brought up with everybody to help them consider.  Number one, you’ve got your company risk.  So if you have a lifetime pension payout from a company.  In most cases, you’re gonna have to depend on that company to outlive you.

MIKE:  Mm-hmm.  [LAUGH]

CLAYTON:  I mean, if they’re offering a pension then they probably are set up to do that…

MIKE:  Probably, but Pan Am was a crappy situation.  Toys R Us, I honestly never thought Toys R Us would ever go out of business.  Blockbuster didn’t adapt.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:32:04]

MIKE:  We are in such a dynamic market, that the sure thing isn’t as sure anymore.

CLAYTON:  Right.  So you’ve got that company risk that you’ve got to keep an eye on.  You’ve got to make sure you’re comfortable with that company outliving you.  The next one is rate of return.  One of the things that I love doing for folks, they’d come in they’d bring me the numbers and I would show them what their return would look like, averaged out to their life expectancy.  And so, if that’s something that you’re curious about seeing, come in and are purebred fiduciaries can put that together for you and they can show you, comparatively how the rate of return looks.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:32:38]

CLAYTON:  Whether it’s taking lifetime income or whether it’s taking that lump sum.  But typically the math is gonna work out so that taking the lump sum goes in your favor, because you can do more with that money when it’s yours, than if you’re waiting on that business to pay out those pensions.

MIKE:  Well, and let’s just say that you and your significant other are caught up in a balloon accident, and you both tragically pass away.  Something you need to consider is the estate.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:33:11]

MIKE:  If you take the lump sum, those assets can pass.  If you take the pension, those assets don’t pass.  Food for thought.  It’s just having the conversation, whatever is most suitable for you, is what’s most suitable for you.  I’ll never forget my grandfather.  Boeing engineer, I mean just a good guy.  Let me articulate the kind of guy he was.  He was an engineer of integrity.  When I say integrity, I mean he worked on the government side for Boeing.  To his grave, he never told anyone what he did.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:33:45]

MIKE:  And I say, “Grandpa, Grandpa, so you work for the military right?”  He says, “Well, I work for Boeing.”  “So what do you do for the military.”  “I’m an engineer.”  “Okay, what does that mean?”  “I can’t disclose that.”  I’m like seven years old, right?  I’m wanting to know, you know, hey Grandpa, what do you do.  He would never, even to my grandmother, never said anything.  There’s only one project that I’m aware of that he did and that missile’s in the Smithsonian Museum.  Great man.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:34:16]

MIKE:  He had the type of integrity and knew who he was.  He never went to management.  Why?  He was offered over and over promotions and says, “I don’t want to lead people.  I like to come to work, I like to do my thing, and I like to go home.”  Over 30 years at Boeing, has a beautiful, little gold clock as a retirement gift that he was given years ago when he retired.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:34:41]

MIKE:  He knew that hard work was important.  He was so conservative in his own suitability that it was more important that he was taken care of, but mostly that my grandmother was taking care of the income for life.  Sure they had savings, they had a good amount in investments, but they just wanted the Boeing pension.  And they were comfortable knowing that they raised their kids in such a way that they should be able to earn on their own.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:35:17]

MIKE:  He was more concerned about consistency and reliability as of growing the assets and passing the estate, that was his opinion.  And so that’s what he did.  He took the-and according to my grandmother, and I was shocked when I heard this, he took the pension with 100 percent survivability.  So the surviving spouse would be taken care of.  He didn’t want to risk it.  And I guess he got made fun of a little bit at work for that.  Well, why don’t you just take more money for yourself and, you know, blah blah blah?  But he was a man of integrity.  Said no, love my spouse.  Funniest couple.  I mean, my grandfather, very Republican.  My grandmother, very much a Democrat.  Watching them talk politics was a hoot.  [LAUGH]

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:35:58]

MIKE:  But all things aside, that was back in the day when things were more civil.  But that was his thing.  He wanted to make sure that she was taken care of.  And when he passed, he knew that she was not was not equipped to manage finances.  With the pension and Social Security until my grandmother’s passing, she never wanted for anything.  And the inheritance that happened was wonderful, and it was articulated in a beautiful way to help their three daughters, my mother being one of them.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:36:30]

MIKE:  And it was a very generous situation, and some of the grandkids got some gifts as well.  That’s his story and it’s a beautiful thing.  Other people have a very different story as well.  But when it comes down to understanding what you’re trying to accomplish, that’s the important part of it.  And they were Depression babies.  They had nothing, they earned everything, and they wanted to make sure their kids had that same thing.  They didn’t believe in handouts.  They believed in helping people become self-sustained.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:36:58]

MIKE:  Anyway that’s a long winded story of the importance of understanding who you are and the retirement that you want to be able to achieve.  When it comes down to understanding your pension and the comparison, some people are more equipped, and I find those are the couples, where both are on board both are engaged in the planning process.  Because frankly, women, you’re the one that has the highest probability of outliving your spouse.  Women just live longer.  Are you equipped to manage the financial decisions that your household is making?

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:37:34]

MIKE:  Most families come into our office because it’s… and this is a bit of a stereotype, but either the women or one of the spouse is not equipped to manage the finances should the other pass first.  That preparation is critical.  You need to feel comfortable about your financial plan.  I’m getting off a little tangent here, but you need to feel comfortable about your financial plan, your stability.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:38:01]

MIKE:  Does it make sense for the household to make the decision of a pension or not a pension.  Does it make sense for the household to make a decision about what investments that they’re going to have and how they’re going to articulate the income for life.  I’m not suggesting income annuities.  I’m suggesting we’re going to draw income from these sources over the next, year one to five, and then these sources from six and so on and so forth.  Does it make sense?  Can you articulate it so one passes before, that you can continue on?  Because the worst thing someone can experience is not only the passing, that’s the worst thing, the passing of a loved one, but then financial chaos to follow right after, that doesn’t make any sense.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:38:43]

MIKE:  Proper retirement planning alleviates the second one.  At the very least, the second one.  Because the first one, I don’t care how well prepared you are for someone passing, you’re not equipped to really handle that situation.

CLAYTON:  Mike, you brought up the principles.  One of the principles of proper retirement planning, and that is only drawing income from principal guaranteed accounts.

MIKE:  Yep, diversified, or yeah, the first principle.  Draw income from principal guaranteed accounts.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:39:15]

CLAYTON:  Right.  Now, for our listeners that want to learn more about the other two principles, we’ve got our book online that you can check out at, again, DeckerRetirementPlanning.com, and you can read through what those principles are and it’s a quick read.  So for those that, if you’re like me, I prefer audio books.  Unfortunately we haven’t put it together in audio books yet, but…

MIKE:  2020 to-dos.

CLAYTON:  I like a quick read, and it is a quick read, very informative, but take a look.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:39:42]

CLAYTON:  Now, I want to go back to when you were talking about pensions.  So I was talking about the different risks to watch out for when deciding on how you’re going to take your pension.  You mentioned that the final one was estate risk.

MIKE:  Mm-hmm.

CLAYTON:  I just want to make sure that our listeners understand that this has to do with what is your goal.  So when you come in, our purebred fiduciaries are there to find out what is right, what is right for you, not who is right.  Because when you’re looking at how to draw your pension, how does that fit in with your Social Security?  How does that fit in with your 401k assets?  How does that fit in with your rental income?  How is all of that fitting together?

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:40:23]

CLAYTON:  I’ve talked to a lot of folks, and they would tell me, well, it makes the most sense to draw Social Security at age 70, so that’s what I’m going to do.  But I’ve always heard that you retire at 65 because that’s what you do.  And then they blow through a lot of their money from 65 to 70, and it just seems like it’s all compartmentalized.  And that’s the beauty of the distribution plan, is it shows the big picture of how all of those assets fit together, so that all of those questions that you’ve got related to retirement income planning can be answered.  Can be answered.  How much can I draw in retirement?  Do I have enough?  Am I going to be okay?  Is my spouse going to be okay?

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:41:03]

CLAYTON:  These are the kinds of questions that our plans answer.

MIKE:  I’ve got a question for our listeners right now, Safer Retirement Radio listeners.  Is your financial professional giving you full permission to live your authentic retirement, or are you being held back because of fear?  Are you being given permission to see full picture what’s going on in your retirement and how it will be able to carry out through the financial storms?  See, Clayton, you talked about the Principles of Retirement Planning.  You can get that ebook on our website.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:41:39]

MIKE:  Those principles are what caused our clients, back in 2008, to sail through it unaffected and enjoy an incredible bull market over the last 10 plus years.  Those principles are the reason that someone, and I won’t say-obviously I’m not going to say the name.  But one of our clients who lived in Oregon went through our planning process, understood a safer retirement, understood how to maximize the retirement lifestyle-not just income, but lifestyle, while minimizing taxes and invested.  And we did the research, we figured it all out, we organized it we implemented it, and then 2008 hit.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:42:19]

MIKE:  It’s the reason why he drove from Oregon to our office in Washington unannounced, because he wanted to thank us.  See, I’m comfortable with any retiree working with multiple financial professionals.  I’m comfortable playing in the sandbox with your CPA, and maybe a really good investor that you have.  I am not comfortable in people putting all their assets into one or two different kinds of investments, ignoring the second principle of retirement planning, diversify by purpose, not just by risk and winging it.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:42:59]

MIKE:  I am not comfortable with people trying to articulate their income through a pie chart, because it can’t be done.  I’m not comfortable having people do things because it’s just what you do, hate that.  I hate when people do things because it’s just what you do.  I mean, think of some of the great people.  Steve Jobs and Bill Gates revolutionized computers.  They didn’t do what people just do.  They challenged it.  I love when people want to challenge the status quo and learn more about how they can maximize their retirements.  That’s the purpose of a safer retirement ROI.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:43:42]

MIKE:  The research can show you a way to organize your assets better, and then when implemented correctly, you can maximize not only your income, but the purpose of your retirement and the lifestyle that you want to live.  If that’s something you want to learn more about, if you want to take your retirement and you’re dead serious about it, you want to take your retirement to the next level.  I can feel the market uncertainty right now.  I can feel the calmness of our clients.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:44:18]

MIKE:  I would love to invite you to enjoy that same kind of calmness, that same kind of clarity.  Call us right now, we’d love to have a visit with you, 833-707-3030.  Because here’s what the visit looks like.  We come in and we gather your information, and then we articulate through a safer distribution plan all the pain points that you currently have, and then show you how to solve them, whether you work with us or not.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:44:47]

CLAYTON:  And when you say, Mike, that we gather your information, it’s not just to get your name and phone number and address.  It is to find out what is important to you.  And I met with a lot of people that came in, that they wanted a second opinion.  And we give those.  I was more than happy to give those.  Some people, they’d come in and every aspect of their plan was working for them.

MIKE:  Mm-hmm.

CLAYTON:  It worked for their needs, it met their needs.  And there might have been gaps or holes that I saw, but they opted for one reason or another to stick with what they were doing.  I personally wouldn’t have said that they had a full plan, but they felt comfortable that it met their immediate needs and so they walked away, and there was no strings attached.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:45:35]

CLAYTON:  They came in, they got a second opinion, they didn’t have to pay for it, they didn’t have to do any follow ups.  It was an hour to an hour and a half sit down.  We just talked about their situation, about their current plan to make sure that they had something going for them.  I had other people come in, thought they had an idea of what they wanted, and they were missing the mark drastically because their advisor didn’t figure out what was important to them.  And when those questions were asked, they then felt like they knew where they needed to go.  And those are the ones that we planned with and got some great clients that that we were able to give that direction and comfort to.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:46:15]

CLAYTON:  I had one that I talked to not too long ago and met with her and her husband.  At one point she came in by herself and to talk, and she shared her thoughts and feelings on the future and expressed concern over how much longer she was going to be around.  And her big question was how is he going to be after I go.  And I loved meeting with her.  So ladies, if that’s a question for you, because statistically speaking you are going to outlive us males, that’s just…

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:46:53]

MIKE:  That’s just how it is.

CLAYTON:  The stats just show that.  I’m not being biased, that’s just what the data shows.  And that’s what we look at, we’re a data driven firm.  And so sitting down, we can make sure that both of you…  That’s one of the questions that we look at we review a plan, is, all right, we’ll say John and Jane.  All right, John, if something happens to you, here’s how Jane’s gonna be set up.  We go through the numbers…

MIKE:  You know, I’ve got another story on this that literally happened last month.  We had a client going through the planning process, a Boeing engineer, good guy.  He says, you know, look, I know I’m not gonna be around for forever, my wife doesn’t understand the finances, and they started building their plan.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:47:38]

MIKE:  During the planning process, and we do take time to make sure that all the Is are dotted Ts are crossed, he passed.  He literally passed as we were putting the plan together.  In that moment, when the dust had settled, so about three or four weeks later, the wife came and said, this was… you guys were one of the biggest blessings to us, because even though I don’t know everything yet and I need to come and learn the rest of it, at least I know my income is still going to be coming in.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:48:17]

MIKE:  I’m not saying you should go down to the wire there, but I am saying the clarity that you can get from there unifies families.  Not only you and your significant other, but also helps prepare for when that time comes, that you pass in a peaceful way and that relationships are fostered, not divided.   That we can bring families together, and that we can help you spend your time where time matters most, because time is our most precious commodity.  Clayton, I want to extend an offer right now.  Everyone that’s listening right now, if this is something you want to talk more about call us at 833-707-3030 and claim your visit.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:48:53]

MIKE:  We’re in Utah, we’re in Washington, we’re in California, helping people maximize their retirement.  Not just the income, but the lifestyle that they want to enjoy.  833-787-3030 at no cost to you, or you can go to DeckerRetirementPplanning.com, and continue learning about us.  And if you choose to proceed, we’d love to visit with you, you can click on our homepage.  There’s a GET STARTED section on the right side of the page, and we’d love to have that opportunity to continue maximizing your retirement.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:49:27]

MIKE:  We’re going to transition here.  It’s been a bit heavy for a little bit.  But over the last 10 minutes that we’ve got left remaining, Clayton, I got a story for you.

CLAYTON:  Let’s hear it.

MIKE:  Recently, my my wife and I, we had an argument.  And it was amazing. [LAUGH]  How many times do you hear that?  My wife and I had an argument or my husband and I had an argument, but no one says it was amazing.  And what’s interesting is my wife and I have learned to focus on what is right and not who is right.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:50:02]

MIKE:  And I can’t tell you… I can’t remember any arguments recently that we’ve ever had that were petty, or frustrating, because we’re so focused on what is right.  There’s nothing intentional against each other.  We’re on the same team still.  And it is so much fun, because nothing is personal.  The last one was about nutrition, can’t remember this specific subject here, it was earlier this week.  But it was about, [LAUGH], all jokes aside, we were talking about the milk industry, [LAUGH], and if the benefits of calcium, potassium, outweigh the negatives of the plant milks there, and this, that, and the other.  And it was so fun, because we were focused on what is right.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:50:47]

MIKE:  See, here’s the issue I have, and this is why I bring up the story.  The issue I have is so many times within the industry and financial professionals, they just want to be right, and they want to show you how smart they are and all the cool tips and tricks and fancy investment strategies and yada yada yada.  And we do a fair amount of that.  We’re a math-based, principle-based firm, but that’s what they’re doing.  What we’re doing here is lifestyle planning.  We’re focused on what is right and what’s best for you, and we want to know the narrative, what you want to get out of retirement.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:51:21]

MIKE:  See, when we talk about a safer retirement ROI, it’s not just maximizing your income.  It’s maximizing your retirement and all the aspects about it.  When we know that, then we can do the research and present the results to you on how to maximize the narrative that you want for your authentic retirement, for your specific situation because no two retirements are alike.  And that’s such a beautiful part there.  And when you work with a purebred fiduciary, you’re focused on what is right and not who is right.  Oh, it’s so fun.  You ever had that experience Clayton, where you’re just, there’s multiple ideas just swarming around, yet, when the facts come out and the research is shown, what is right is so clear it’s like the light bulb just comes on.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:52:12]

CLAYTON:  Yeah, when I sit down with couples, it’s amazing how many different types of personalities exists as far as money.  You get some folks that you’ll have somebody that’s willing to take risk and others that are, they want to save and those that want to spend and those that, you know, the money doesn’t really matter just as long as the relationships are there.  And so, in talking to folks and getting an understanding of it, for some people that came in, this conversation that I would have with them was one of the first real open conversations that they had had with their spouse about their finances and about their retirement plan.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:52:48]

MIKE:  And how old were they? [LAUGH]

CLAYTON:  Right…

MIKE:  Late 50s early 60s.

CLAYTON:  Yeah exactly.  And it was so much fun to have.  It’s such a great conversation to have.  And like you said, you keep in mind what is right, versus who is right.

MIKE:  It’s family planning, it’s life planning, it’s not just investment planning, and we don’t want to be short sighted. That’s maybe what all the other guys are doing.  We’re here to help you with life planning.  We’re not going to tell you which cruise to go on, but we’re going to say, okay, what would you like to do in retirement, and we hear,  oh, okay.  You want to do this cruise, you want to go that safari, and you want to spend some time in hobbit town in New Zealand, great.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:53:23]

MIKE:  Let’s figure out how we can make that work with a math-based, principle-based approach.  And, Clayton, if you have anything else to say on that that’s fine, I want to sum up with the principles of retirement planning.  These are the principles that when implemented correctly shape some of the most beautiful retirement plans that I’ve ever seen, and I’ve been doing this for long enough.  The first principle is that you draw income from principal guaranteed sources.  That’s it.  Draw income from principal guaranteed sources.  The jargon suggests a sequence of return risk, but what it really means is when you draw income from principal guaranteed sources, you sail through the market crashes that happen every seven to eight years.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:54:09]

MIKE:  The second principle is, diversify by purpose, not just by risk.  This is for everyone, people just like you.  People just like you who need to understand this is where my income is coming from and this is how it’s going to be accomplished.  For the most part, everyone understands diversify your assets to minimize risk, but what about diversifying your assets by purpose so you can have income.  Four percent doesn’t do it.  Four percent from what?  What stocks?  What investments?  How are you going to rebalance it after you take the four percent?  The questions go on.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:54:46]

MIKE:  But when you diversify by purpose, not just by risk, those questions go away because it’s articulated correctly.  And then the last one is use a distribution plan, not a pie chart.  The pie chart guesser plays retirement roulette, and people just like you that we’re seeing every day want clarity in their outcome.  They want clarity in their future.  People just like you want to alleviate financial stress and enjoy the retirement that they’ve worked their entire life to enjoy.

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:55:16]

MIKE:  You’re so close, folks.  You’re so close in getting there when you implement these principles correctly.  We’re seeing these people every day, people just like you, helping them implement them correctly to enjoy the maximum lifestyle that they want.  That’s so fun.  If you want to be a part of the fun here at Decker Retirement Planning, you can call us, 833-707-3030 or go to DeckerRetirementPlanning.com and learn more about us.  That’s 833-707-3030.  We’d love to sit down, have a conversation with you at no cost to you, no pressure.  When you come in, you’re gonna be greeted by our office manager, and then from there, they usually bring out some treats, some nice little goodies for you to snack on and a nice beverage as well.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:56:05]

MIKE:  And then we’ll sit down and for 60 to 90 minutes, whatever time you have is available, we’re here to answer the most difficult questions.  And some of the funnest questions to answer that people just like you were asking is, okay, how much can I draw?  What’s the maximum I can draw without compromising risk of my retirement?  I’ve seen the Monte Carlo, I’ve seen the pie chart, I can calculate four percent from there.  But you guys said you’re a math-based firm.  How much can I draw without running out of money before we die?

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:56:37]

MIKE:  What a fun conversation that is, huh, Clayton?  You’ve had it once or twice.  [LAUGH]

CLAYTON:  Yeah, gosh, I just love seeing people’s faces light up when that plan gets put in front of them, it’s finalized and they are… they’re set, and they’re ready to retire because that’s what it’s all about.

MIKE:  Mm-hmm.  So we’re wrapping up the show right now.  This is Safer Retirement Radio with Mike Decker and Clayton Bradshaw from Decker Retirement Planning.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:56:59]

MIKE:  We hope you’ve enjoyed today, the content.  Tt got heavy, it’s been fun.  I’ve had a good time.  Clayton, thank you for being on the show this week with us.

CLAYTON:  Thanks for having me, Mike.  It’s been a lot of fun.  I look forward to doing more of these.

MIKE:  Yeah, so hope you all have… for those of you celebrating Merry Christmas.  I hope you have a Merry Christmas.  Enjoy time with family.  And if you don’t celebrate Merry Christmas, I hope you’re enjoying the holiday season as it is.  We’ll be back, same time, same place next week, as well as catch us via iTunes, Google Play, I Heart Radio Podcast, wherever you get your podcasts.

 

RR S3 E26 SECURE ACT ADJUST RETIREMENT     [00:57:34]

MIKE:  It’s available first thing Friday mornings for you, so you can get the transparency that you deserve.  This show is about providing you value so you can make the right decisions and live the lifestyle that you’ve always meant to enjoy.  Thank you all so much.  And last but not least, we just published all of our new books, you can go to DeckerRetirementPlanning.com and catch the book that was written specifically for you.  Hope you enjoy.  Everyone, take care.

Decker Retirement Planning Inc. is a registered investment advisor in the state of Washington. Our investment advisors may not transact business in states unless appropriately registered or excluded or exempted from such registration. We are registered as an investment advisor in WA, ID, UT, CA, NV and TX. We can provide investment advisory services in these states and other states where we are exempted from registration.