Mark Elliot: Welcome to the Retirement Income Show, I’m Mark Elliott alongside the CEO and Founder of Oak Harvest Financial Group, that of course is Troy Sharpe. Troy is a certified financial planner professional. His team at Oak Harvest is incredible. If you want to go to the website to learn more, oakharvestfinancialgroup.com, oakharvestfg.com works as well. A lot of great information on the website. You can learn about Jared Kenney, Ryan Kenney, learn about Chris Perras, Jessica Cannella, the whole team, there’s just a phenomenal team, oakharvestfinancialgroup.com.
Of course, you can always go to the YouTube channel, there are over 300 videos on there about any topic you can think about in the financial world, the retirement world, it’s phenomenal. There’s no cost you subscribe, you’ll know when all the new ones are out but there’s no cost to any of that. YouTube, check out Troy Sharpe and Oak Harvest. Troy’s office is located at 920 Memorial City Way I-10 and Bunker Hill, they are here for you, if you need help, they would love to help, they just don’t know if they can help until you reach out. You can do that just by giving them a call, 800-822-6434.
Today, we’re going to be talking, the retirement success plan. Troy is going to explain what this is and it’s a process. It’s about investment planning, income planning, tax planning, health planning, estate planning, and they all go together. Security, Medicare in there as well. You’ve done this for a long time, you sat down with a lot of people so you understand the common mistakes, the common things that we overlook as well. This will be good going through the retirement success plan. How are you going to inform us today of this retirement success plan?
Troy Sharpe: Well, just like we have as humans, we have basic needs, we have that hierarchy of we need shelter, we need food, we need security, in retirement or once we get to retirement, people have the same concerns, the same questions, we all have the same, let’s call it fears. Do we have enough? Can you retire? When can you retire? How much can you spend when you do retire without the fear of running out of money? We all want to pay less tax, the government can get their fair share, but not a penny more, and whatever that fair share is, it’s defined differently based on your plan.
If you take the government’s plan, they want to get as much from you as possible and the tax law is set up in a way that if you don’t plan for taxes in retirement, oftentimes we see people in situations where if they keep doing what they’re doing 200, 300, 500, 800, we sat down with a prospective client recently and we’re doing this analysis, it was well over a million dollars in taxes.
If he kept doing his way of things, the way that his visor had him doing it in regards to his income plan and tax plan and retirement, well, there was no tax plan obviously but his income plan was going to lead to create this domino effect of his tax bill being over the course of time, over the course of 25 years, over a million dollars in estimated taxes that he was going to pay that he simply didn’t have to pay if he went about a different approach, the approach that I’m going to talk with you about today, as far as step three of our retirement success process, the tax planning aspect.
Just like we have basic needs as human beings, we have basic concerns when it comes to retirement and we’ve created the structured process. That’s the beautiful thing about the retirement success plan, is it’s a plan that is something that is actionable but it’s also living and breathing. It’s something we review with you throughout the year once you’re a client, but it’s also a process.
We believe in structure here, we’re really big on structure and process and that keeps us organized, that keeps us on schedule, and that keeps us ahead of the planning curve in order to do the things that we promise for everyone that’s entrusted so much to us, and I’m talking about your retirement. You worked for 30 years, 40 years, 50 years in some cases and you save up whether it’s $500,000 or $5 million, or $50 million, you need a team of people that, of course, are knowledgeable but before education and certifications and designations and training and experience, first and foremost, you need somebody that cares.
If you start there with someone that’s a fiduciary, you can be a fiduciary and still do the wrong thing. I’ve seen it for years in the industry where fiduciary advisors still sell mutual funds that have high fees, and commissions, and they can make justifications for why they’re selling them or why they think they’re in your best interest.
I don’t believe that they are, personally, we would never put someone into a mutual fund that is charging a 5% front-end commission and then has 2% or 2.5% of hidden fees and we’ve seen that for years coming from fiduciary firms, fiduciary advisors. You start from ground zero, are you working with somebody who truly cares, who’s truly passionate about retirement? With that philosophy in mind, that’s the foundation of what we look at when we hire people here at Oak Harvest Financial Group.
You could have all the designations in the world, all the education, all the experience, but if you’re arrogant, if you’re not humble, if you’re not hungry, if you’re not continuing to strive to be a better person, we don’t want you to work here because that foundational element, do you care about the people that you’re working with on a human level? If that’s not there, then we don’t want any part of that type of person. I don’t care how much you produce, what the metrics are when it comes to how we measure advisor performance.
That’s the foundation. Now, once you have someone that cares, well, you want a structured process in place to deal with those big questions that you have, the big concerns that you have. Do you have enough? It’s not just a yes or no question, it’s a function of how much do you spend. What is your health situation? If you’re healthy, yes, of course, you’re going to live longer, most likely, but are you planning for the increased medical costs and increased probability of needing long-term care or assisted living? These are aspects that healthier people do have to absolutely be concerned about.
Those that are less healthy, it’s less likely you’re going to have a two or three-year, four or five-year stay in a long-term care facility or need nurses in the home. When we talk about do you have enough and can you retire? The answers to those questions are function of how much do you spend. What is your longevity? What is your health situation? Of course, your family history but not only that, it’s what are we doing with the other aspects of this process, meaning the income planning side, the tax planning side? What about the healthcare side? Are you retiring before Medicare?
Do we need to look at some type of health care planning that qualifies you to receive a subsidy so you’re not paying $2,000 a month for both spouses for health insurance, that maybe we get it down to 400 a month, or 600 a month, or maybe no out-of-pocket costs whatsoever for health insurance premiums, you can do that with proper planning but you need the right type of asset structure, meaning if you have all your money in retirement accounts, this is where tax planning comes in. When you take money out, that goes onto your 1040, your tax return, and then you probably aren’t going to qualify for as big a subsidy as if you had money saved in non-IRA accounts.
The structuring of income planning, tax planning, health care planning, and then, of course, the estate side of things, this is all what the Oak Harvest retirement success process, retirement success plan is, and that’s what you receive when you become a client, it is a very clear and structured process that we go through but then it’s also a plan that is living and breathing and we’re making adjustments as time goes on. Tax law changes, economic conditions change, goals change, your spending levels will change.
Retirement is and we’ve only learned this from years and years of experience, the best-laid plans, we can’t just set them and forget them. Plans need constant monitoring just like a plant or a garden or a human being. The retirement success process we’re going to today, we’re going to focus on the first three steps. The first step is risk management and investment planning. Next step is income planning. Income planning is social security, when do we take that? It’s not just based on the math, which it does play a role. When we start to look at, are you a conservative investor versus an aggressive investor, that plays into the social security election decision. Of course, your health and longevity plays in.
Analyzing the Conditions:
Market conditions. Are we in a recession when you’re thinking about taking social security? Are your accounts down 20%, 30% or did we have a really good year last year and it looks like we’re going to have a good year this year? All of these factors tie in to that income planning component as well as many other we’re going to talk about. The big one we’re going to get into is tax planning. That’s step three of the retirement success process. When you start to understand that retirement is a set of dominoes.
When you’re young, you work, you put the kids through school, you deal with traffic, you deal with bosses, you deal with, if you run your own business, all the headaches that come with that, you deal with so many different things. Money is really simple. It’s life that’s complicated in the accumulation phase. Once we get to retirement, now life gets a little bit more simple. It’s the money, it’s the decisions you have to make, and the realization that every single decision you make, how you invest the portfolio impacts not only how much income you can take today, but how much income you can take down the road.
The sequence of returns risk based on how you’ve invested, sequence of returns is if the market goes down and you’re also taking money out, you exacerbate that downturn in the market because there’s no paychecks coming in. You’re pulling money out and losing in the market. These decisions, every single one that you make, it’s a domino effect. It impacts everything else. It impacts the tax plan, it impacts the income strategy. It can impact the healthcare.
It can impact absolutely the estate plan. We walk you through this process, so we have a plan in place. We call it the Retirement success plan, and the goal is for you to have security first and foremost. What I find most often is the outcome is that people feel more comfortable, they feel more secure, and they’re able to enjoy retirement a bit more because they have a plan in place that addresses all these certain needs, but also through the continual monitoring and adjusting and conversations.
One thing I love about our process is when someone comes to us and we have that first meeting where it just get to know you, no pressure, no obligation, no cost, we get the information. We do an analysis between that first and that second visit, and then when we come back on that second visit, you actually get to see what it’s like to be a client at Oak Harvest Financial Group because that second visit with us, we’re starting to go through the foundation of a financial plan. We’re starting to discuss the decisions that you have to make not only this year but in the future.
That’s almost exactly what it’s like to have an annual review with us or a semi-annual review with us. I love that about our process is that you get to see before you ever decide to become a client, what it’s like to actually be a client. When we have up on the big television screen, all of the information, the choices you have to make, the impact of making different decisions.
How it impacts your taxes, how it impacts your income, how it impacts your account balances, when we do a sensitivity analysis, and show you, okay, this outcome in the market and this outcome for income decisions versus this one, here are the possible outcomes for those choices and that those combinations of choices. You get to see what it’s like to actually be a client just through our normal process of going through that first, second, and third visit with us.
For many engineers, it takes a little bit longer than that. Sometimes it’s four or five visits, but our goal is to simply provide value. We want to make deposits in your life, we want to provide value. People see that value and they say, what I think you guys could be a great part of my financial team, my retirement team, and yes, I want to work with you, Troy.
If that’s you, if you don’t have a retirement success plan, if you don’t have a tax plan, income plan, if you don’t understand the guardrails, why I’m going to get into in this next segment as far as risk management in retirement, give us a call. We want you to leave a message. There’s no one here working on the weekends. If you’re watching this on YouTube, if you’re listening to this later and it’s during the week, sure, give us a call.
Someone will pick up but we want to have a conversation just to see what’s important to you, who you are, if you’re a good fit for what we do. Of course, you can ask questions to see if we’re a good fit for you, and then we’ll schedule that first visit. There’s no cost, no obligation. We can do it through Zoom, we can do it in person at the office right here at I 10 and Bunker Hill Memorial City.
That first visit, we’ll have a cup of coffee, a glass of water, and just get to know each other and if we are a good fit at that point, we’ll get that second scheduled. We’ll do the analysis that I talked about and we’ll walk you through that retirement success process so you can have those big questions answered. Do you have enough? Can you retire? How do you pay less Tax 1-800-822-6434, Oak Harvest Financial Group. Check out the YouTube channel, check out the website, Oak Harvest Financial Group.
Mark: When you think about this, this is what I think you should really like about it, it’s you’re working with the team at Oak Harvests for your retirement, right? The coming up with that retirement success plan. You’re the CEO, it’s your retirement. Look at Troy and the team at Oak Harvests as your Chief Financial Officer here to help guide you. You’re going to make the decisions, they’re going to give you the choices.
It’s up to you because it is your retirement. It’s your hopes and dreams, your bucket list, and all of that. It’s really important though, that they understand your feelings, your thoughts, your hopes, your dreams. It is about you. You’ve got to talk to them and they’re here to listen and they’re here to help. Again, that number’s 800-822-6434. Risk management. How important is it? What actually is it? Troy will explain when we come back. This is the Retirement Income Show with Troy Sharpe of Oak Harvest Financial Group, back right after this.
Investment advisory services offered through Oak Harvest Financial Group, LLC. Oak Harvest Financial Group is an independent financial services firm that helps people create retirement strategies using a variety of insurance and investment products. In investing involves risk, including the loss of principle. Any references to protection benefits, or lifetime income. Generally referred to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.
Oak Financial Group, LLC is not permitted to offer and no statement made during this show shall constitute tax or legal advice. You should speak to a qualified professional before making any decisions about your personal situation. We are not affiliated with the US government or any governmental agency. This radio show is a paid placement