When and How Should I Start Planning For Retirement | The Retirement Income Show | Can I Retire at 64? How do I Plan for Retirement?

 

Welcome back to the retirement income show with Troy Sharpe, the CEO and founder of Oak Harvest Financial Group, has over 100 videos on his YouTube channel. You can certainly search for Troy Sharpe and Oak Harvest Financial Group if you’d like to watch those and subscribe. The subscription fee is what a thousand a month, I think? Yeah. No, no subscription fee, subscribing just simply connects you to us on YouTube. There’s no cost for that. If you hit that little bell icon on YouTube, it’s notifications and it will notify you when we release a new video. So every Thursday, we release a retirement video or an investment or a tax video. It’s all about retirement.

We’re starting to upload the retirement income show, I believe on Tuesdays and we’re breaking it down into 15 minute segments. We may tinker around a little bit and put the whole show out there. But right now we’re doing 15 minute segments and we are upping the YouTube channel because it’s starting to really grow and people are getting a responding. We’re getting a tremendous response from it. So we’re going to start to do interviews with people in the retirement arena. We’ll be starting a podcast pretty soon. I do have a book coming out hopefully by the end of the year. But I keep rewriting it. So I’m not a perfectionist. But efficiency and just attention to detail and thoroughness is super, super important to me. It just it pervades my soul. And I can’t have something that; maybe it isn’t perfectionism, but there are certain things that; I’m just more picky about. And, when it comes to my my job, my passion, it takes me a little bit longer to write this book than I had anticipated, because I think I’ve probably written about five books by now. But either way, yeah, we have a book coming out. So, if you want to stay connected to us, whether you’re a client, you’re not a client, you’re thinking about becoming a client.

Maybe you’ve just watched on YouTube and now you’re watching the Retirement income show for the first time. Yeah, hit that subscribe button, hit that notification button, a little bell icon, and you will be connected to us. And when we when we release content, you’ll you’ll have it available to you. When are we doing our YouTube show Mark Elliot gives Troy Sharp golf lessons. That would be a great video. Wouldn’t that be good? Yeah.

Let’s get the full swing that then work into the wedges because it comes down to the wedges. How do you wedge and put it and how do you chip and part? It was really a key. Yeah, we could certainly do that. So glad you’re with us today for the retirement income show. Troye is talking about preparing for retirement. We tend to talk about after your own retirement, what are some of the things you need to be aware of? But preparing for retirement is really key. And you said, you know, before, if you’re five years out, eight years out, two years out, five years into retirement, you know, we can still help you to a degree, it depends on your situation, right. Everybody’s situation is different. Is there an actual time that we should start this process? I mean, is it 55? I’m going to retire at 62 or I’m 50. I’m going to retire at 58.

I mean, is there a time frame that that gives you and me the time to put everything in place or to be a little bit more confident heading into retirement? It’s the sooner the better. So if you’re let’s say you’re in your 50s and you’re planning on retiring or you’d like to retire maybe at age 60. I would say definitely, probably around 55, 56 is a good time to come in and at least have a conversation. You may not be able to roll any money over. You may not be able to hire us quite yet because you don’t meet the five hundred thousand dollar minimum. But still come in. Let’s sit down. If you’re here in Houston and let’s get you going on the right path. But the truth of the matter is, if, you know, you’re still in that accumulation phase, you’re going to be working for many more years. There are some just some basic, simple things that you should be doing. One of them is to diversify where you’re saving your money. You always want to put money into the 401K to get the match. OK, at least get that match.

That’s 100 percent free money. You want to get that match. From there just start building out your tax buckets. It’s a very simple strategy. You don’t want to go into retirement having all of your money inside this tax infested retirement account. Now, many of you, that’s the exact situation you’re in. And it’s too late to go back in time and to save more because you just retired, you’re about to retire or you’ve been laid off or something along those lines. We can still help you. OK, it’s going to cost you a little bit more from a tax perspective. But the goal is, is to determine how much; now, again, this isn’t for everyone, OK. We’ve had situations before where someone is spending, is so little relative to their means, and they don’t have a million five, two million saved up in their retirement account. If you have five or six hundred thousand saved in their retirement account, the tax concern isn’t as big for you because you’re not going to be in these huge required minimum distributions range.

But once you start to get to a million, a million five, two million, three million, four million, you have a serious problem if all that money is inside your retirement account. And you either have had the light bulb moment, you’re having it right now or you will have it at some point when you really start to look at the numbers and understand required minimum distributions, Urma taxes, net investment, income taxes, whatever President Biden does on the tax front with this upcoming legislation. The light bulb moment, it happens to everyone. It’s only a question of when. But make no mistake about it, you do have a big problem if you have a significant sum of money inside that 401k. Now, it’s not a problem where you’re probably going to have to worry about running out of money. OK, so I don’t want to you know, don’t cry me a river about having three or four million dollars. Right. You worked hard for that money, despite what the media may say, despite what other people may may think who have not done a good job saving.

But it’s about optimizing, OK? It’s about optimizing. It’s about making good decisions. It’s about saving a million, two million dollars in excess taxes that don’t have to be paid and inefficiencies created through a lack of understanding or a lack of perspective, because you only get to go through retirement once. We’ve gone through retirement, thousands and thousands and thousands of times. So being able to share that information, that understanding, that learning. We only work with people who are in that retirement phase or preparing for that retirement phase. We are a specialist boutique firm, OK? We don’t have a thousand clients that are 22 years old or 32 years old or even 42 years old.

We work and we have for many, many years strictly in the retirement phase. So preparing for retirement is a huge deal, because too often you get to retirement and you’re unprepared from a tax diversification standpoint, all that money is inside that that one tax infested retirement account. But also, there are many other aspects that often go without the proper attention paid to them. So Retirement Process, that is our process. The process is designed from our years of experience, working with people in retirement and developing a system that answers the big questions that ninety nine point nine percent of our clients have.

So if you’re not a client, what we do is we take our experience, we apply that to this Retirement Process process to help you answer these big questions. Number one, do you have enough? How long will that money last? How much income should you pull out and where should you pull that income from? How do you pay less tax? That’s a big one. We want to pay less tax. And the biggest one of all, all those questions they lead into, if something happens to me will my family be OK? 1-800-822-6434 the Retirement Process process answers those questions. At least they get you going down that road of starting to have that light bulb moment. So give a call, leave a message if you’re calling on the weekends. We don’t have people working on the weekends. We want our people at home with their families.

If you call in the weekday, we’ll pick up as long as it’s between 8:00 and 5:00 central 1-800-822-6434 to start down that Retirement Process process. Hey, Troy, at the end of the last time you were talking about sequence of returns and you’ve got a video on your YouTube channel, just search for Oak Harvest and Troy Sharpe, about the two portfolios, seven percent return, average return, one runs out of money. One obviously does not run out of money. Did you want to touch on that? Yeah. Yeah. Thanks for reminding me, Mark. So we’ve talked about the sequence of returns for a very, very long time. In the accumulation phase. When you’re building a nest egg, it doesn’t matter if you have a negative 20 percent loss. It simply doesn’t as long as you don’t panic and sell and get out of the market.

You should actually be hoping the market goes down and you should try to accelerate your purchases, just like we do for investment clients here when the market is down. You shouldn’t care in the accumulation phase. If the market drops 10, 20, 30, 40 percent, you should be hoping for that because then you can accelerate your purchases, buy shares at cheaper prices, and that is how you get greater compounding rates of return over time, at least historically speaking. And we believe moving forward as well, although, of course, no investments are guaranteed. Now in the retirement phase once you start distributing money from that nest egg. If you take out five percent and you lose 20 percent, you’re down 25. You’re million turns into 750 the next year to get that same five percent or 50,000 because five percent of a million is 50,000 in this example. To get that same 50,000, you’re left with 750.

So you have to withdrawal a greater percentage of that 750 just to get your 50,000 to maintain your standard of living. If the market goes down again that year, OK, now you’re you’re you’re in the spiral. You’re in the middle of the sequence of returns risk. And typically in that scenario, you’re probably going to have to go back to work or significantly reduce your lifestyle for a few years, which no one wants to do. So sequence of returns risk. It’s the biggest one most people faced in the beginning years of retirement. We need to be able to mitigate it. We need to first understand it, but mitigate it and have money in places that won’t go down in value when the market crashes.

So, bonds typically used to be the safe haven for a lot of people here, but bonds are not guaranteed, bonds are not safe, investments, bonds drop significantly in value in recessions in uncertain times. You can look back to Covid, where you can see 15, 20, 25 percent drops in most bonds. 1-800-822-6434.

We’re going to talk a little bit about the Core4, which is the framework for combining the planning that we’ve talked about, along with investment management in the next segment. But 1-800-822-6434. Give us a call. If it’s the weekends, leave a message. We’ll call you back if it’s on the weekday. Give us a call and we’ll have a phone conversation scheduled if you’re a good fit. We do have a $500,000 dollar minimum. And we only work with people that are serious about retirement, that want the combination of investment management, income planning, tax planning as the first three steps there of our Retirement Process process. And then, of course, health care and estate planning, step four and five. But you have to reach out.

You have to take that first step, which is giving us a call. 1-800-822-6434, And of course, you can always find out more just by going to the website Oak Harvest Financial Group.com, the office located at 920, Memorial City, Way I-10 and Bunker Hill and again over 100 videos on Troy’s YouTube channel search for Oak Harvest and Troy Sharpe. Easy to do. No subscription fee whatsoever. You click on the bell though, and you’ll get all the new ones as well as they do one basically every Thursday. So you’re always having new content to the YouTube channel. Enjoy the rest of their weekend. Have a great week. We’ll chat again. Thank you very much. Mark had a great time today.

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. Investing involves risk, including the loss of principal. Any references to protection benefits or lifetime income generally refer 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 Harvest 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 U.S. government or any governmental agency. This radio show is a paid placement.