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Transcript

Mike:

By the way. Do you know who is the number one fan of you getting rid of your life insurance after you retire? Who wants you to get rid of your life insurance after you retire more than anybody else? Any guesses Zach?

Zach:

The life insurance company?

Mike:

Yes, the insurance company, because they’re like, this is awesome. Joe over here has been giving us premiums for 30 years and right before he’s likely to die. He’s going to stop that and let, and now we don’t have to give him any money. This is beautiful. Like insurance companies really love that idea.

Zach:

Welcome back to Retirement Today, I’m your co-host Zach Holcomb. And alongside me, we have Michael Reese. He’s a certified financial planner and founder and president of Centennial Advisors located right here in beautiful Austin, Texas. Today’s show has been awesome, Mike, we’ve been talking about the retirement questions that you absolutely have to answer yes to. We’ve talked about income planning. We’ve talked about protecting your assets through, you know, your investment plan and really important, protecting your assets from the I R S.

Mike:

I hate taxes.

Zach:

I know not a fan of taxes at all. We have one more really important question for you. This is a big one. And it’s one that a lot of people don’t think about. So I’m going to go and ask you this question, Mike, remember, these are simple yes or no questions. If you’re listening, can you answer yes or no to this? Do you have a plan to protect your family, should you occur large healthcare expenses unexpectedly? Do you have a plan for that?

Mike:

Yeah. Devastating healthcare expenses. By the way, before I dive into healthcare, I think I should get a bumper sticker that says I hate taxes.

Zach:

You should.

Mike:

I don’t know where to find one. So as you’re listening or if you’re watching the podcast and, and as you’re watching the podcast admiring how I’m looking thinner because I’m wearing black coffee, cause I am thinner. But if you know where to get that bumper sticker, please let me know,

Zach:

Give us a call. Please.

Mike:

Give us a call, send it, just send it to zach@michael-reese.flywheelsites.com. Send him an email and say, Hey, I can find one of these for Mike.

Zach:

Yes.

Mike:

All right. Do you have a plan to protect yourself from the devastating expenses of healthcare in retirement? Or we could say the potential devastating expenses, healthcare in retirement can cost a boatload. And really when you think about this, one of two things, well, I’m going to rephrase that.

Mike:

One of three things are going to happen. There are no ifs, ands, or butts. One of these three things will occur. So number one, you could live a healthy life in retirement, right? You could live a nice, long, healthy life. That’s what we all want. Number two, you could get sick along the way, and that could cost a boatload. Number three, you might just die too soon. You see, here’s the thing. When it comes to your planning, if you want to have a complete, if you want complete financial security, you know, you’re going to make smart choices about replacing your paycheck, right? You’re going to have an income plan a way that you can generate, you know, this is how you’re going to generate, generate income for your lifetime. No problems. It doesn’t matter what the market does. Here’s how you may get your income.

Mike:

Maybe you’ve done that. Maybe you’ve actually done something with your investments where you now know, Hey, here’s how you are going to protect your money from the market’s going backwards on you. It’s like, look, my 401k values at the highest point ever. Here’s how I’m going to protect that money. So it doesn’t go backwards. Right? You might have, maybe you’ve got a wonderful tax advisor where every year you sit down with that advisor, whether it’s your financial planner or somebody else, and you’re sitting down and you’ve got a strategy in place or a number of strategies to keep your tax liability to a minimum over the years. So you’ve done all that stuff. You’ve dotted your eyes, you crossed your T’s and it all goes to pot. I don’t know because you ignored. Maybe you get too sick along the way, or maybe you die too soon.

Mike:

In other words, you ignore what might happen. Right? You’ve got to protect yourself. So let’s talk about this a little bit because number one, what if you die too soon? Here’s the question? Do you have enough life insurance? People rarely have enough life insurance. And today this is silly, by the way. Now I know what happens, right? So I’ve been married to Becky coming up on 30 years. Right. And you know, and you know, it’s, if you’re married to me it’s just glorious for her. I’m going to go with that. Right. It’s probably the other way around. Right? Anyway, it’s probably, you know, not so glorious for her, but wonderful for me. Nevertheless, for 30 years we’ve woken up in the morning, you know, roughly the same time we look at each other and, and you know what, not one time, not one time Zach in 30 years, did we look at each other coming up on 30 years? Did we look at each other and say, honey, wouldn’t today be a great day to review our life insurance.

Zach:

I don’t think many people say that when they wake up.

Mike:

I don’t know why. I mean, I should say that, I guess. No, usually what happens is I say things like, man, maybe I should get a motorcycle. Right. And Becky says, that’s wonderful. And before you do that, maybe you should increase your life insurance. The point I’m saying is this: when we do review meetings, when we visit with people, for their planning, it’s very common that people don’t have enough life insurance and term insurance these days. It’s so darn cheap. There’s really no excuse. I mean, if anything just be over-insured the death benefit is tax-free, have too much better to have much than not enough, but here’s what happens. A lot. People get close to retirement and they say Hey, I don’t think I need life insurance anymore. I’ve got a million dollars saved to my 401k. If I die, you know, the husband says my wife gets a million dollars or vice versa. What do I need life insurance for anymore? I don’t need it. Right.

Mike:

Not so fast because you’re forgetting about something. You know, maybe your house is paid for, great. Maybe their money’s there. You know, Hey, there’s enough money. I don’t have to worry about replacing my income. Great. But don’t forget this, if you die, your surviving spouse is now a single taxpayer. That million dollars in the IRA is suddenly worth less because of taxes. There’s a boatload of tax is going to be paid in that money. Wouldn’t it be cool if you had some tax-free death benefit money that your surviving spouse could use to pay off the IRS and get them out of their lives, maybe convert that 401k to a Roth IRA or something like that. Wouldn’t that be cool.

Zach:

That’d be great.

Mike:

Be awesome. Do you have enough life insurance? If you die too soon, there’s a lot of reasons that it could come into play. And by the way, these days you can use life insurance pay for long-term care too. So lots of uses for that. So don’t miss out. Should you have life insurance in retirement? Probably by the way, do you know who is the number one fan of you getting rid of your life insurance after you retire? Who wants you to get rid of your life insurance after you retire more than anybody else? Any guesses, Zach?

Zach:

The life insurance company?

Mike:

Yes. The insurance company, because they’re like, this is awesome.

Mike:

Joe over here’s been given us premiums for 30 years and right before he’s likely to die. He’s going to stop that and let, and now we don’t have to give him any money. This is beautiful. Like insurance companies really love that idea. Yeah. Don’t play their game. Play your game. All right. Dying too soon, make sure you have enough life insurance. A lot of great reasons to have life insurance in retirement, but here’s the other one everybody’s like, okay, I’m on Medicare. When I’m retired, I get Medicare. I get my Medicare, like a supplemental insurance policy. People get the Cadillac plan. It doesn’t cost that much. And only it’s like 250, 300 bucks a month in retirement for Cadillac plan life insurance covers everything and not life insurance, health insurance covers everything. You’re like, all right, I’m good. Yeah. I’m good. I’m done. Again, what do we say?

Mike:

Not so fast,

Zach:

Not so fast, my friend,

New Speaker:

Because you can have the most Cadillac plan and retirement, you might be in Tri-Care even, you might have the government. Hey, I worked for the government. I worked, I was, you know, I had military, I worked, I was in the military. I’ve got, you know, the, the Tri-Care I got the VA, I got this, I got that. You have all this wonderful insurance. Here’s the deal. None of that insurance is going to take care of the expenses for you. If you get Alzheimer’s you need long-term care. Or you have a stroke. It’s like, yeah. Pays for the, your time in the hospital. But what about recovery? It pays for like, okay. Yes. Medicare might pay for the first couple of weeks, but you get past that. And man, you’re pretty much on your own. And I’ll bet I will bet that, you know, somebody who basically blew through a ton of their money, maybe all their money, because they needed long-term care of some type, whether it was at home or in some kind of facility, they didn’t plan for it.

Mike:

Do you want that to be you? Do you have an answer for that? Do you have your plan? If you die too soon, if you get sick along the way, have you planned for that? Well, if your answer is basically, well, no, I just assume I pay for it out of my retirement savings, then that’s a no right and need to have you need to think, but yet have a better plan of attack than that. Right? For complete financial security, you need a better plan. So as we wrap up the show tonight, here’s what I want you to do. We’ve got one action step. There’s only one thing you need to do. It’s simple. It’s easy. Here’s what you do. Go to the website. Retiringwelluniversity.Com since retiring I N G retiring well, university.com sign up for our free class, right? It’s going to be on zoom so you can do it from the comfort of your own home.

Mike:

You don’t even have to turn your camera on. Now. I hope you do so I can see you, right, but I’ll be there. Live. There’ll be a live zoom event. Tuesday night, July 20th is part one Tuesday night, July 27th. Part two, you go to retiring. Well, university, you sign up name, emails, all you need. And boom, you’re in there. You join me. Six 30 to eight 30 each night. I’ll probably go a little long. Cause I always answer questions, but here’s how it works. I share a topic. I teach you how to make great decisions in that area. Then I open up for Q and a and then I answered about every question out there. Yep. Sachs there. He coordinates it all. He laughs at me. He makes fun of me. I make fun of myself. We have a great time. It’s a lot of fun, but it’s very educational and it’s free. That’s the best part costs you nothing. No excuse not to take the time, invest in yourself so you can enjoy that complete financial security and retirement. So as we wrap up, Zach, take us away. Give us that website, what our listeners need to do right now.

Zach:

Retiring Well university.com again, retiring well, university.com, July 20th and 27th, 6:30 PM. Sign up. Be there. Answer yes. To these questions that we talked about today. All right. That’s our show. We hope to see you there and we’ll see on the airs next week. Take care everyone. Hi and thanks for checking out retirement today. If you like the content we share on our channel, make sure to like comment and subscribe. So you can say notified about all of our latest content and videos. Be sure to share all of our information with your friends and family as well. Thanks for joining us. We’ll see you next time.