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What’s going on, gang, thanks for hanging out with Jude Wilson and myself as we talk investing, finance and retirement and Jude, let’s go back into our list of ways that wishful thinking can cause us a little trouble. You’ve been doing this 25 years plus, right? You’ve seen a lot of wishful thinking items that they sound great. Hope is wonderful, but in practicality, they kind of derail us a little bit, right? Oh, for sure. Let’s get into the remaining topics here on the wish list, Social Security, June, it’s gonna be enough to pay for my expenses. I’ll be all right, right. I

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cover most of my expenses with a parent who is on Social Security only, I can tell you, yes, technically, it does work. She is getting by on Social Security only. However, is it the retirement that she wanted? No, no, absolutely not. And this is one of those fallacies that was basically built off of our historical norms when your grandparents retired, probably Social Security. And the pension that they had was more than enough for them to live a good lifestyle. In fact, they used to call it the three legged stool Social Security pension and whatever money you saved up, yeah, really, it could be a modest money too. It didn’t have to be a lot, right? Exactly. Well, that stool is a little shaky now, because most people don’t have access to a pension and Social Security because of the of inflation, I think I read in The Wall Street Journal that Social Security for most people, it only only is enough to take care of 30% or less of their lifestyle expenses. So wow, yeah, I I think most people today do realize, and people that are younger, Gen X millennials, they realize that Social Security, one, it may be a whole lot different by the time they retire. And two, even if it is isn’t different, it’s only going to take a small portion of what they actually need to live off of. Yeah, it’s great point. Yeah, I looked that up while you were Miss mentioning that 40% you were pretty close. Oh, it says, it says 40% is expected now. And like I said, you know, my mom’s getting by on Social Security only. Sort of, I pay for a few of her expenses. My sister pays for a few of her expenses. So kind of, not really, right? I mean, it’s close, but not really. And again, it’s not the lifestyle that she envisioned or wanted. So again, that fallacy that hopefully Social Security is just enough to cover. And of course, we all know that the problems that it has anyway probably only gonna get worse. All right, next one on the list, well, you know what? If things go south, I’ll just keep working whatever. No problem. Right? A lot of times people coming to see someone like yourself, Jude, and they’ll go, maybe you go through and you’re doing the diagnostic and everything that you talked about, and you do have to deliver the bad news, all right, well, Mr. And Mrs. Smith, looks like you’re not going to be able to quite retire yet. We’re going to have to do a couple tweaks or whatever to kind of get you there. And, you know, sometimes people just get upset and they go, Well, that’s fine, whatever. I’ll just keep working till I die, you know, or I’ll just go back to work that one too, right? Yeah, your body might have another Yeah. Body might have another say in this matter. That’s a tough one. I, in fact, a recent client that I was meeting with been in construction his whole life, from

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the bottom of the construction industry all the way to working himself up to being a VP in a construction company. Nice, but he told me just recently, dude, I definitely have to retire next year, even though I’m not doing the heavy lifting that I used to do, I just can’t do this anymore. My body won’t, won’t allow me to do it. Yeah, and so I’m always concerned when people say, Well, you know, I think I’ll work for a few years, and you don’t need to be in construction. I’ve got another client who has been an attorney his whole career, but he recently told me, I just can’t take the mental stress anymore. Yeah, to do so working a few more years, if you have to. That’s one of what we call the four levers, if you if you’re not able to retire, one of the Levers is working longer. One of the Levers is living off of less. Another lever lever is potentially getting a higher return,

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and another lever is, is delaying retirement. So those four levers combined could help, but you really need to, kind of to have this customized to their situation. And some of those four levers may not be available to your particular situation, yeah, definitely a higher return, yeah, and especially if you’re thinking.

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In that stance of, well, well, if we run out of money, I’ll def, I’ll just go back to work. And it’s like, Okay, what if you’re 82 years old and you run out of money? I mean, you’re not going back to work. Let’s just be honest about it, right? So you got to be smart again. Wishful thinking that this one, to me, is kind of like the we’ll just take care of each other one, you know, from the prior show, right? It’s just not, it’s not really grounded in a whole lot of reality anymore. It’s in today’s world.

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Speaking of health, healthcare costs will also get a little more manageable once I’m on Medicare. Look, Medicare is a good program. I mean, in ways, right? It’s got a lot of good there’s some good things about it, for sure, but it also doesn’t cover a lot of a lot of the things that people sometimes need or they think that it covers. I mean, just the eye and the dental thing alone, uh, surprises a lot of people. That surprises people, and another fall fallacy that people believe is Medicare will also pay for long term care. I cannot tell you how many times I have this conversation with future clients that say, Well, you know, I don’t really need a long term care plan because I, you know, I’ll qualify for Medicare. What they’re confusing is Medicaid, and Medicaid is your worst case scenario. Yes, so no health care cost is is more than likely going to go up in your budget, not down. Yeah, and Medicaid, you got to basically be broke, right for it again, absolutely. And then you get no say, right? So, I mean, that’s one of the things that terrifies me about our my own mother’s situation is like, as I mentioned before, she’s on Social Security only. She doesn’t really have a lot so should she need to go into a long term care facility if she’s completely broke? I don’t get a say in it. If we’re like, relying on the state, the state’s gonna Where’s there a bed that’s open? That’s where they send your loved one, right? That’s, that’s not really the thing you want. So you’ve gotta, you’ve gotta, again, start having a strategy to work yourself towards that, you know. Back to the taking care of one another concept, another one, Jude that’s similar, is my mom. Well, my kids are going to take care of me, right? And, first of all, do they know that?

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I laugh at this one, right?

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Yeah, because do they know that? And secondly, again, like, what can they take care of you? Like, it’s a big assumption. Look in we’ve had this conversation before about my family background, Caribbean upbringing that I had, we took care of

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my grandparents, and when I was a kid, we took care of my grandparents, and then when I became an adult, we took care of my mom and dad. I used to, I jokingly say in our seminars, my mom and dad didn’t have a 401 K. They had nine kids, so their idea was a 901 K. You better be there to take care of you when we retire. But when I talk to our current clients. Now, in fact, I had dinner with a client last night, very successful cardiologist. He said, Look, I took care of my mom, brought her in the home, retrofit some of the house, to take care of some of her needs, and my two kids helped me with that, because I was working with during the day. My two kids still at home, adult, young kids, but I can tell you right now, Jude, I don’t expect them to do the same for me, not that they wouldn’t want to, but I’m helping them with their expenses and their adults, so I can’t imagine them being in a position to help me when I retire or when I’m in need, in that, in that level of senior care, yeah, exactly. I like the 901, k2, it’s like, if you got a great big family, you know, maybe that’s easier. But again, maybe it’s not. We got one kid, you know, and she’s like, Y’all better have your ducks in a row, because I’m not, I’m not gonna be able to take care of you by myself, you know, or whatever. So you get again, and plus, it’s hilarious when we have this saying, right? Jude, because what’s when people come in to sit and talk with an advisor for the first time? One of the things, like the top five items that people always say is, I don’t want to be a burden on my kids,

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right? All the time. But yet they also go, Well, my kids will take care of me if I need,

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yeah, I think you need to have your parachute, you know, they say on the plane, put your mask on first before you help anyone else. I think you need to have your mask ready. I like that. That’s a good way of looking at that, all right. And the final one. Jude, if all things go I’ll just sell the house, downsize, and I’ll use the funds from the house to help pay for my retirement housing. The market’s pretty high. You might get a good chunk of money for the house. It’s been still really high for a while. Now, you might get a lot more than maybe you owe left or maybe you don’t owe anything. However, what’s it going to cost you to get a new place? Because again, housing market is high for sure.

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And I being in Florida, I see this all the time. The market for homes, even in Rocky real estate times, usually our values are higher than most other states. So I see clients when we do their reviews. Hey, Jude, let’s look at how much my house is worth. Now, let’s update that value. I’m so can you imagine, I bought this house 20 years ago for 175,000

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and now it’s almost a million dollars, and they’re so pleased. But I say, Okay, you do realize, if you move someplace else, you’re not gonna spend $175

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$75,000

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it’s gonna cost you significantly more, and probably three times that, right? Yeah, and eat up most of the equity. So downsizing is a possibility, but it’s not, it’s not the answer. And yeah, speaking of the answer, we talked about a lot of different myths today, and when I think about all of the myths that we talked we didn’t really talk about strategy, but if you listen to the podcast and up on other episodes, we talk about the bucket plan and the three different buckets. We talk about the tax filters and the three ways money are taxed. We talk about the tax management journey and how we look specifically at people’s tax returns, and to try to figure out where are there some opportunities all of these things combined help address a lot of those issues. But at the end of the day, and we said it before, you need to see a qualified financial advisor, tax professional, that can put together a holistic plan, because each one of these things is a domino that could tip over other dominoes. Oh yeah for sure, you know. And you know, we do the podcast, anybody can see it, you know, anywhere. So you know, if you’re not working with Jude, find somebody in your area. But I will say that a lot of financial advisors have clients all over the country. Jude does as well. So don’t let the location specifically kind of be a deterrent. Just get some time with somebody you can do the Zoom chat. You know, a lot of you know, we’ve all gotten much more comfortable with that nowadays as well, ever since COVID, obviously. So do yourself, do your retirement a favor. Have a chat about some of the things that maybe you’re assuming will go well, or if it all goes according to plan, everything will be great in retirement. Don’t just rely on that. Sit down with somebody, have a chat, or get over the internet. Do what you need to do. But we got links in the show descriptions below to get some time on the calendar with Jude. There’s been some things popped up there in the screen as we’ve gone along, but again, all the links to make it easy for you are in the show descriptions below, so reach out to them and have a chat about your unique situation. And don’t forget to subscribe to the podcast the Roth guy here on Apple or Spotify in audio form, and of course, here on YouTube in video form, hit that subscribe button, thumbs up, and the notification that way you catch new episodes when they come out. And the support also helps the channel, which we certainly appreciate and hopefully helps other folks along the way with some nuggets of financial wisdom. Jude, my friend, have yourself a great week. Thanks for hanging out and breaking it down, buddy. Thank you, my friend. I enjoy it every time. Always love chatting with you. Always learn something new, and we’ll catch you next time here on the Roth guide,

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financial planning and advisory services are offered through prosperity Capital Advisors, PCA, an SEC registered investment advisor with its principal place of business in the state of Ohio, centrist financial strategies and PCA are separate, non affiliated entities. PCA does not provide tax or legal advice, insurance and tax services offered through centrist financial strategies are not affiliated with PCA. Information received from this podcast should not be viewed as individual investment advice. Product discussions and illustrations are hypothetical in nature and will vary based on many factors, including, but not limited to age, health product insurance carrier and product design, you should consult the insurance carrier website and policy for detailed information, for information pertaining to the registration status of PCA, please contact the firm or refer to the Investment Advisor public disclosure website, www.advisorinfo.sec.gov,

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