Episode Details

68. Make Your Money Last Longer in Retirement With Easy to Understand Advice from a Financial Advisor

Season 1 Episode 68 Published 2 years, 1 month ago

Description

Diane is here to ask the questions we ALL have about saving, living on a fixed income, Medicare and social security.

This episode she brings on Christopher Hensley, financial advisor and host of the Money Matters podcast, to talk about finance in a way everyone can understand, without the technical language.

Taxation on Social Security

Diane and Christopher discuss the fact that even recipients of social security aren't spared from taxation. Diane raises the issue of fairness after a lifetime of contributing taxes. Christopher remarks that Medicare, often perceived as free, is funded through social security contributions.

The Power of a 401k

Reflecting on personal experiences, Diane highlights the value of a 401k. She talks about her experience being able to use her 401k to show liquid financial assets when she was getting her mortgage. . Christopher reinforces the importance of contributing to a 401k and some of the opportunities when employers offer matching contributions.

Demystifying Annuities

Christopher tackles misconceptions surrounding annuities, acknowledging their tarnished reputation. He explains that annuities serve as insurance products, albeit often misrepresented for personal gain. He advocates for careful use, particularly for individuals without pensions.

Asking Questions and Having a Reputable Broker

Diane and Christopher stress the importance of asking questions, whether or not you have financial experience. Christopher shares a valuable resource to verify financial brokers to ensure they are who they say they are, as well as to view their history and any complaints against them called the FINRA BrokerCheck. He says it is your responsibility to do your due diligence and know what you are getting into so checking this resource is essential.

Financial Planning for Longevity

With extended lifespans becoming a reality, Christopher delivers his key piece of advice for each age group to help plan for a longer life:

24-49: Start saving early and consistently.
50-70: Focus on smart investing, taking social security and Medicare seriously.
70+: Prioritize preserving wealth, making strategic rather than drastic financial moves.