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Retirement Questions Government Employees Should be Asking Transcript

Retirement Questions Government Employees Should be Asking Transcript

February 03, 2021

This is a transcript from Dad Cents podcast Season 2, Episode 3. I hope you enjoy!

Announcer 0:02
Welcome to dad cents a podcast for folks looking to grow their financial future. This podcast is hosted by Jason Fuchs, a dad, a husband and managing director of sage path financial advisors. Jason's goal is to help you grow your financial future, the right way. Now, your host Jason fears.

Jason Fuchs 0:25
Greetings everyone if you're new here, I'm Jason Fuchs, married to Amber's father to a two year old girl jewel. I also happen to be the managing director of sage path financial advisors. And it's h Beth. We're here to help you grow your financial future, the right way. I am pumped to be here today. And to all of our listeners out there. Thank you so much for joining me. You could be doing anything right now listening to anything right now. You chose to be here with me. I appreciate all of you. And guess who's back? It's my lovely wife, Amber.

Amber Fuchs 0:55

Jason Fuchs 0:56
Hello, Amber. How are you today?

Amber Fuchs 0:57
I'm doing great. How about you?

Jason Fuchs 0:59
I am lovely. Thank you. Glad you're here again. Thank you. Thanks for being here.

Amber Fuchs 1:03
Thanks for having me.

Jason Fuchs 1:05
You work for the government. Right?

Amber Fuchs 1:06
I used to Yes, I did. past life. past life. Yes. Actually, before we moved down to Florida, I was working for Smithsonian, which is a government entity. And then when we moved to Florida, I had to had to leave the organization. So disappointing.

Jason Fuchs 1:22
Yeah, I think they needed you. But the whole distance thing just didn't work out.

Amber Fuchs 1:25
Yeah, there is a value to being close to the museum. So

Jason Fuchs 1:29
it's important.

Amber Fuchs 1:31
It was a really neat job.

Jason Fuchs 1:33
It was it was making the transition from the workforce to retirement it can be demanding. And you know, as a financial professional, I understand the challenges that may lie ahead. I'm here to answer some of your most pressing questions regarding retirement. Ladies and gentlemen, public sector employees like some of you might face many of the same challenges as private sector counterparts. When it comes to retirement, you're probably concerned about whether your retirement accounts will cover the length of your retirement what role so security will play in your investment strategies. Then there's the added component of a pension and whether you should branch out into any other traditional retirement accounts to supplement it. So our financial topic of today's episode, well, retirement questions government employees should be asking. I've created six important questions, Amber, but today, I'll be sharing three of those with you and ladies and gentlemen, it's not a trick. It's not a hook to get you to do business with me. I go into great detail regarding each of these questions, and it would just take too long to cover everything here today. And I have a really, really neat recipe for mango habanero glazed BBQ pecan chicken. Say that 10 times fast.

Amber Fuchs 2:41
Oh, that's a mouthful.

Jason Fuchs 2:42
Maybe we should create an acronym for that. That That just seems like a lot of words.

Amber Fuchs 2:45
I love acronyms.

Jason Fuchs 2:47
We'll just call it chicken.

Amber Fuchs 2:50
That's not an acronym.

Jason Fuchs 2:51
No, it's not. I'm a numbers guy. What can I say? Ladies and gentlemen, I want to hear from you. What's on your mind? What are you thinking about? What are you excited about? I know we're in this kind of strange time right now. But I want to know how you're feeling. The email address is Jason Fuchs at Sage path My phone number is 904-366-9388. All of that information is in the description of the podcast. Amber, as always, I want to know what you're most excited about these days?

Amber Fuchs 3:23
Well, I feel like a lot of what I'm excited about these days tends to be surrounding family. And I'll remain true to that. I think what I've been most excited about these days is spending time with jewel and seeing her development. She's becoming so independent. Yeah,

Jason Fuchs 3:42
boss, baby, her

Amber Fuchs 3:42
son SAS level has been off the charts recently. But I mean, it's been it's been challenging, but it's also been fun and super rewarding. So that sassiness is one of the reasons we try to get out of the house as often as possible, right? We try COVID world but right right,

Jason Fuchs 3:59
yeah, Florida and Georgia. They have some really neat

Amber Fuchs 4:02
destinations that are close by and and different. You know, they kind of break up the monotony we can get out and explore a little bit especially since we're still you know, discovering the area.

Jason Fuchs 4:13
Yeah, we did some exploring what last weekend right? Mm hmm. Yeah, go Island right.

Amber Fuchs 4:17
We went up to Jekyll Island. It's only a little bit over an hour away.

Jason Fuchs 4:21
We crossed into the great state of Georgia. We did now we have to quarantine for two weeks, right?

Amber Fuchs 4:27
No, I don't think

Jason Fuchs 4:29
you kidding. Jekyll Island was really neat though.

Amber Fuchs 4:32
Yeah, it was so neat. And it was so fun to see something different and get out of the house with jewel and see her exploring and let her independent spirit run.

Jason Fuchs 4:42
Well, I want our listeners to know why we picked Jekyll Island. Yeah, you you found this.

Amber Fuchs 4:48
I did. I found this on on the social media platform. I can't remember exactly where but I was

Jason Fuchs 4:56
driving forward to say their name on this show anyway, since their names are trademarked

Amber Fuchs 5:03
Well, I was drawn to it because it was for a treasure hunt. And I love treasure. So

Jason Fuchs 5:11
just like that treasure treasure,

Amber Fuchs 5:14
we had to go find some treasure. That Jekyll Island tracer. This

Jason Fuchs 5:19
is the first time hearing that pronounciation or pronunciation

Amber Fuchs 5:23
Oh, I sent it the whole time we were there. Oh, yeah. Oh, yes.

Jason Fuchs 5:27
I was too busy looking for treasure?

Amber Fuchs 5:30
Probably. Probably. So yeah, Jekyll Island has this really neat program they do every year. And I think it's a great tactic that the The island has to draw people in during the offseason. So it's really cool. They place little orbs, they're actually not that little they're

Jason Fuchs 5:48
they're pretty big. It's almost as big as a soccer ball.

Amber Fuchs 5:51
Yeah, I would say soccer balls about the right size. Yeah. Although we wouldn't know. Oh, yeah.

Jason Fuchs 5:58
Other happy children holding their orbs.

Amber Fuchs 6:00
Right. But it was, it was so fun to go exploring. And we went to all of the highly suggested locations and where we could potentially find it. And that really kind of led us all around the island because it's a pretty small island and it was just cool to really see Joel get so excited about it and running around and she wanted to do it. She wanted to find it.

Jason Fuchs 6:24
And what's really neat, ladies and gentlemen, when she looks for things you see she does so oh boy or Su Su marking

is really good. If only she could see the open spots, though. It was really cute walking her or watching her, you know, kind of hop and run on the beats and sing or or you know, trying to find this magical orb.

Amber Fuchs 6:52
Yeah, the treasure treasure,

Jason Fuchs 6:54
but Jekyll Island was beautiful. I mean, we got to see some really neat spots. A lot of history as well. So we got to see some you know, some older monuments of of when the settlers arrived. Really? Yeah, it's that old the islands those is beautiful.

Amber Fuchs 7:07
It was cool to one thing that struck me was they had instructions on what to do if you find old shipwreck. What do you do if you find a shipwreck? Oh,

Jason Fuchs 7:20
okay. Don't put it in your beach bag. Ladies and gentlemen.

Amber Fuchs 7:23
Oh, I guess it's such a common occurrence there. They have to have instructions. So that's what people say about the turtles on our beach. Right.

Jason Fuchs 7:29
Right directions if you find a turtle absolutely anything. Yeah. Turtle shipwreck tomato, tomato, right.

Amber Fuchs 7:36
So the whole thing was really neat.

Jason Fuchs 7:38
Yeah, it was a ton of fun. We had a great time, we got to see some really beautiful things. And we didn't have to be around people, which was even better.

Amber Fuchs 7:45
Yeah, it was really wonderful. And Joel got to express her independence and be a part of something new.

Jason Fuchs 7:52
Yeah, absolutely. Absolutely. And you know, it goes great with treasure chicken. I think it's time to talk about food and go habanero glazed BBQ pecan chicken. That's what we're gonna talk about today. So let's get into it.

There's a really neat website called meat church, BBQ, meat church BBQ calm and that's where I pulled today's recipe from Amber. I'm loving this new grill. The convenience of using electric vers propane makes smoking meats, so much less work than in the past. Ladies and gentlemen, if you've ever smoked meat the traditional way, you know what I mean? Plus, I have this little fancy app that helps me regulate the temperature of the grill. I can set alerts, I can see the actual internal internal temperature of the meats I'm smoking. It's pretty cool. And I know look alert nerd alert, but I can't help it technology. It's just it's so fascinating to me. And this one utilizes a whole chicken. It requires a little bit of work, but it's so good. And well worth the effort. What do you think Amber's delicious, delicious. And ladies and gentlemen, the trick is in the jelly you choose, it'll make sense when you get to that part. Trust me. You want to be creative here. Now. I like Blackberry. Amber likes pepper jelly for a little added heat. Mm hmm. And it's so good. Your loved ones are going to give you a one word answer of when you try the recipe.

Amber Fuchs 9:23

Jason Fuchs 9:24
I thought it was delicious,

Amber Fuchs 9:25
delicious, delicious slash

Jason Fuchs 9:27
young. Ladies and gentlemen, that's what you're looking for. And now we're using a whole chicken in this recipe. But you can get creative here you can use just regular chicken breast, you know, boneless chicken, breast, bone in rib meat and all that good stuff. So we're using the entire chicken, but do use whatever you want. Just keep in mind the cook time will be a little different and the amount of seasoning that you use will be a little different depending on what method you try. And that being said I think it's time to talk about finances right retirement questions government employees should be asked What do you think I'm ready? All right, let's do it.

This is based on a white paper I published. So if you'd rather read about it, call me email me, I'd be happy to get a copy to you, ladies and gentlemen, whatever you need. So Amber, I've created six important questions. And today I'll be sharing three of those with you. And it's not a trick, it's not a hook. Ladies and gentlemen, to get you to do business with me, I go into great detail regarding each of these questions. And it's just gonna take too long to cover everything. Ready. Amber, ready? All right, Amber. So we talked about this earlier, public sector employees face many of the same challenges as their private sector counterparts. When it comes to retirement, they're concerned about whether their retirement accounts will cover the length of their retirement, and what role Social Security will play in their investment, their retirement strategies, then there's that added component of a pension and whether they should branch out and try to get involved in to any other traditional retirement accounts to supplement it. So we're gonna do these are the three questions to consider as you plan ahead for your retirement. Now, ladies and gentlemen, as always, it's best to work with your financial professional, just to ensure that you've covered all of your bases. If you don't have a financial advisor, or if you'd like a fresh look at your financial plan. I'd be happy to make myself available to you. Just let me know. Here we go. Question one. Do I want to retire? If you look closely at your community, you'll notice people have retiree age still in the workforce, from the guide at your local museum, to your medical professionals to the person making or serving your coffee. These older folks wouldn't be working if they didn't have to write Amber's

Amber Fuchs 11:44
not necessarily,

Jason Fuchs 11:46
maybe they could be working because they want to work. After all, many retirees, they've said that they truly enjoy retirement for the first 24 hours. After that, they found that they missed their careers, that regular schedule that a job brings or just being around people on a daily basis. Or maybe they're working because they don't have a choice. their retirement savings may fell short of what they need to survive. So security income, it's just not adequate. And there are other investments just don't seem to fill that gap. Then there's the retiree who never thought about retirement, then retirement happened. And the retires bottom line had the final word, get back to work. Then there's the retiree who is happy to explore retirement, this retiree doesn't work for two reasons. One, they don't have to, to they don't want to. Now I hope I'm like that retiree. I don't know about you, Amber.

Amber Fuchs 12:42
I don't know. I think I could see myself wanting to work part time. And when I'm in retirement, but I don't know. We'll see.

Jason Fuchs 12:50
I think so too, but I'm gonna take my time Yeah. Now there are three principles to follow, ladies and gentlemen to help make your retirement a success. Number one, prepare, preparing it provides the energy for most other endeavors in life, building a business, getting fit, taking control of your health, or maybe learning a new language. The same principle applies to retirement preparation can help ensure that you're on the right track to meet your goals. Number two, protect it took hard work, sometimes decades of sacrifice in careful provisions to build your retirement. One wrong move one bad investment and you've lost it all. Taking risks has its place, but protecting your investments, especially if they're being built over a lifetime must take priority. stay the course. Don't get distracted, ladies and gentlemen by whatever is new and shiny. Principle three, prosper. Usually, those who carefully plan their retirement and maintain discipline investment strategies end up prospering in retirement. Start early, stay smart. Watch your money continue to grow. And I obtained that information from Gov As a public employee, you're ready to start thinking about the decision of what you want to do next. Ladies and gentlemen, scheduled time to meet with your financial professional to create a roadmap, identify income streams and your projected expenses. How much will you have in Social Security pensions, retirement investment returns, other income sources, match your income with your expected expenses just to get a rough idea of where you're headed. Working with a financial professional helps you develop a long term, a pliable strategy that can change with you as needed. And ladies and gentlemen, if you don't have a financial professional, if you'd like a fresh look at your plan, I'd be happy to make myself available. Let me know reach out to me. I'll be happy to help. Now determine your retirement strategy. How much income will you need to maintain the lifestyle you want? Are you looking to travel Do you want to move to a warmer state Do you want to downsize your home? and Amber, we have to consider health care expenses right now, you're eligible for Medicare at 65. So you'll need medical insurance which might be available from your present employer just to cover the difference if you retire earlier. Additional insurance to fill that coverage gap might also be wise. And what about your legacy? How much do you want to leave to your family? Do you have adequate life insurance to cover ongoing living expenses for your spouse? If Heaven forbid you die first? Who has a lot of memories you catch all that?

Amber Fuchs 15:36
That's a lot of information. All right,

Jason Fuchs 15:38
pop quiz. Here we go. Ready? Question two. Yes. Can I see Ron class? Question two, can I afford to retire? retirement at a certain age or after a number of years maybe compulsory for public sector workers. However, contrary to misconceptions, the average retirement age for public sector employees it's still about the same for those in the private sector. Now Amber, can you guess what that age is?

Amber Fuchs 16:10

Jason Fuchs 16:13
You got it. 62 says public sector employees retire as the same time as those in the private sector age 62. It's pretty neat, huh? Interesting. Yeah. government workers on the verge of retirement. They have the same anxieties. They have the same questions as their private sector peers. The average retirement length is between 14 and 17 years, depending on the age of retire. Many retirees they want to make sure they have enough save should they live beyond that average life expectancy of 79 years. And that's according to Budgets foster a more disciplined outlook on Retirement Living, which helps alleviate stress over money matters. Once you generate some numerical projections from your personal budget, you'll be better equipped to decide how you want to spend your retirement. A simple a conservative way to estimate your monthly retirement spending levels is to multiply your current working numbers by 75% or 85%. So Amber, for example, you spend $3,000 a month while you're employed, you can expect to spend 20 to 50 to 2550 during retirement, that's according to the Once you've determined your spending levels, take a look at your income to get the big picture. This includes things like social security benefits, pensions, other retirement vehicles. If you've been able to generate retirement savings or investment income, you can use the money to supplement your lifestyle, make up any income shortfalls or cover excess expenditures, you'll need to track your retirement withdrawals closely over time just to ensure that your retirement money less while the US Census Bureau projects retirees today will live nearly 20 years past retirement. And a healthy and active lifestyle can add more than five years to that life expectancy. That's huge. That is huge. So just by staying active, staying healthy, you could potentially add five years to your life expectancy.

Announcer 18:20

Jason Fuchs 18:21
that's pretty easy. Just walk, walk. I'm kidding. Of course, it's not that easy. Ladies and gentlemen. You know, there's one problem with these life expectancy, expectancy formulas, and that's the X Factor your mortality, you can't precisely generate that number to determine your budget. While your lifespan it depends on a variety of factors like your lifestyle, your health, your genetics, the data suggests that you can count on living longer than your parents or your grandparents. So it's estimated that by 2060, the average Americans life expectancy will go from 79.7 years to 85.6 years. That's an increase of almost six years. Wow. That's incredible, right? Absolutely. And that's according to the United States Census Bureau. There's an earlier formula called the 4% rule. Now it was used in the past to calculate percentage of withdrawal retirees could take annually from their retirement accounts, and that rule may not be as applicable in today's rockier markets. According to Business Insider calm, and Jason Fuchs. a financial professional can help guide you through the confusion of an intimidating investment marketplace. Now, you might not be able to alter that X Factor, but you might be able to exert some control over other factors in the formula. Ladies and gentlemen, here are four ways you can tweak your retirement formula to help you pursue a more comfortable and secure retirement. You ready amber ready? Number one. While you're still working, you can increase your contributions to your retirement savings. contribute the maximum amount to your tax deferred retirement plan, if you're 50 or over You can do the catch up provision for your retirement contributions. Number two, if you can delay taking Social Security benefits, if you're under 70, you can increase your Social Security benefits by delaying when you take them and supplementing your income with a second career. Number three, take a current look at your living expenses. You know what you're spending currently, with the children are grown. They're living on their own, that large house just might not be necessary anymore. So you might consider moving into something smaller, maybe something cozier. To cut expenses, you can delay big purchases in the early years of your retirement that way, you can maintain a robust retirement account for much longer. Number four, many retirement jobs have a compulsory retirement age but that doesn't mean you have to stop working. Retirement can be a great time to explore that career you've always wanted or you could try something new. Now many public sector employees they take advantage of the opportunity to retire early from that public sector to seek part time work or maybe a second career. Now with your years of experience Ladies and gentlemen, your options are open part time employees may allow you to set your or CV part time employment rather, may allow you to set your own schedule or maybe pursue hobbies activities that you've long waited to participate in. Now Amber's employment income it can affect how much you collect and Social Security, at least until you reach your full retirement age. Okay, so that's number two. You got it. Got it. Ready for three? Yes. All right. What will my retirement look like? Question three. Now Amber's an ancient wise man once said, Where there is no vision, the people perish. The same is true for retirement. Deciding when deciding how you'll retire is important. But envisioning your retirement may be the single most important part of your strategy, numbers, timelines, they don't mean anything. If you don't have a supportive dream to drive them forward. your retirement vision becomes the foundation for your later years. Your vision has to be has to be carefully crafted detail by detail. Once you start imagining what you'll do, how you'll spend your time where you'll go put it in writing. Don't leave out any parts. how you spend your days, what will you short term and long term goals be charted out? lay out your ideal retirement day by day, month by month, year by year? Do you plan to take a vacation? When, where? How often? What will you do during the day? Where will you go? What will you do you want to travel visit family and friends? Join social groups recreational groups, writing out your answers can make transitioning to retirement so much easier. Once you've laid the foundation of your vision, start building upon it. You've already assembled the numbers you've already determined the income flow, shape your retirement vision to suit the financial reality you've built during your working years. For example, how much money will you have available to travel? overlay your budget onto your retirement vision and begin making adjustments to make your vision fit into your financial reality? Sounds pretty easy, right? Amber?

Amber Fuchs 23:21
I don't know if that's the word I want to that's why

Jason Fuchs 23:23
you have me right exactly.

You might be able to alter your vision slightly or rearrange some of your priorities, but merging the practical and idealistic sides may lead to a more secure and fulfilling retirement. So here are several steps ladies and gentlemen to help with your visioning process. Number one, who are you? This might be the most important question in creating your vision. This is kind of a personality index Amber, recall what you do or what you used to do during your off tee off time. When you are working. What do you do for recreation? Would you wish you had more time to do? Imagine how you will spend your retirement time differently? Number two, this gets back to imaging. So create a list of your favorite activities. This could include volunteering, starting a business, gardening, spending time with grandkids, maybe going back to school, put the items in order of priority. What is most important, your aim here is to make retirement satisfying and rewarding. Now on the flip side, make a list a list of your pet peeves and annoyances What do you want to avoid doing? I can't speak for everybody out there but for me, I'd like to avoid driving city traffic maybe getting up early. I don't know about you Amber.

Amber Fuchs 24:44
Wouldn't housework would be a nice one.

Jason Fuchs 24:46
Yes, absolutely. idea here is you're creating a kind of reverse priority list. Tip number three. What do you want to do every day? now describe your typical day. What will you be doing? Retirement offers at least one precious commodity freedom, you determine your daily schedule. And to avoid the doldrums establish a schedule to add anticipation and order to your day. Now, of course, you can change your schedule anytime. But it's the idea that counts here. Developing your day, it should be good. It should go beyond wishful thinking. What do you really plan to be doing? A typical day one year after you retire? How about in five years? It's tough to think about right amber? Huh? Sure. All right. Number four, look at examples. Are you struggling with some of the steps in the brainstorming process? You're You're, you're not alone. I'm sure there are many of you who aren't exactly sure what you would be doing every day. You're just happy, you're glad that you're retiring? You may be also interested in doing something completely different, or maybe a change of pace. Now after all, after several decades of living life one way, you might be eager to change things up a little bit. read stories about retirees living unusual or exciting lifestyles that you might enjoy? What do they do? How do they plan their lives. And it doesn't have to be all about skydiving doesn't have to be about winery hopping in the south of France, local newspapers and magazines, they occasionally feature profiles on outstanding retirees who are making an impact on their communities, some fine having a part time job to be invigorating, a pastime that helps them stay engaged, it stays connected with other people, while at the same time retaining a degree of freedom for the demands of full time work. last tip number five, set limits or excuse me, don't set limits. Don't set limits, no limit no limits. So don't set limits on your expectations, at least initially. What you want to do you want to let your imagination run wild run along with that imagination to see where it goes. What have you always wanted to do but never had the opportunity to pursue? Maybe your busy career in the public sector, the demands of raising a family prevented you from exploring those outer edges of life and maybe now is the time and it doesn't have to be fantasy. I mean, the idea of climbing Mount Everest might have stirred your inner adventure a few decades earlier. But your aspirations may have matured somewhat over the years. You could be maybe decide to do something as simple as I don't know playing the guitar or improving your golf game, renovating classic cars taking sculpture classes, or I don't know visiting the Grand Canyon. Don't worry about making changes in fact, expect to make changes later. lifestyles do change your health, your circumstances may alter your retirement strategies, and your retirement plans aren't set in stone. So Amber, we're going to go ahead and close out today's episode. I'm sure many of you listening are wondering, what the heck do I do next? you've created your retirement vision, you've painted the picture of your new life, retirement, it empowers you with the Liberty and hopefully the resources to retire in style. However, employing the services of a financial professional can instill a sense of clarity, confidence, it can help you ensure that your retirement plans remain securely on track. So I'm sure some of you are wondering, well, who do I call? I'm so glad you asked. I've hope you found this topic interesting, informative, reassuring. I want to show you simple steps you can take to make your retirement more secure. So call me. I'm ready to encourage and support you as you move into the next phase of your life. And I'm here to offer myself as a resource to you and your family. I'm happy to answer any questions you may have about your personal financial situation and your future goals. If you have any questions about the information in this podcast or anything else, contact me today. I'd be delighted to talk all the contact information is in the description of the podcast. Amber, anything you'd like to add? Oh, man,

Amber Fuchs 29:05
I'm excited to create my vision.

Jason Fuchs 29:08
Great. Your vision? Oh, yes. And that's something that we'll be working on together. Absolutely fun to create that picture. It is especially for us. I mean, we're several years out

Amber Fuchs 29:17
we are and things might change. But it's still cool to start sculpting the future.

Jason Fuchs 29:22
Yeah, yeah, absolutely. Very exciting. So anything else you'd like to add? No. All right. Well, thanks so much for being here.

Amber Fuchs 29:28
Thanks for having me.

Jason Fuchs 29:29
Good seeing ya. You too. Ladies and gentlemen, thank you so much for being here. I appreciate all of you. We'll see you in two weeks for another episode of dad cents. Have a wonderful day. And now, the fun part. The disclosures. Securities and investment advisory services offered through FSC securities Corporation FSC member FINRA s IPC FSC is separately owned and other entities and are marketing names, products or services referenced here are independent of FSC FSC does not guarantee legal tax or other advice. Although the information has been gathered from sources be reliable cannot be guaranteed and accuracy of the information should be independently verified. This material was created to provide information on subjects covered but should not be regarded as complete analysis of these subjects please consult your financial professional further information. This episode is sponsored by Dunham and Associates investment council Inc. information of this This episode was obtained through FMG suite LLC. safe path I need two advisors located at 512 Rose but lane Neptune Beach, Florida three two to six. I can be reached at 904-366-9388 or j Fuchs at Sage path

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