Mark: Glad you're here with us today for The Retirement Income Show with Troy Sharpe, the CEO
and founder of Oak Harvest Financial Group, I'm Mark Elliott. You can always go to the website to
find out more about Troy and the team's phenomenal website, a lot about the different teams that
Troy has created to help you with your retirement strategies and plans oakharvestfinancialgroup.com.
You can find out about the individuals, there's a lot of information as well.
Questions you may have about retirement might be able to answer them just by going
to the website oakharvestfinancialgroup.com. Of course, the office of Oak Harvest located at
920, Memorial City way right off I-10 and Bunker Hill. You have questions you want to call and
chat with the team, it's 800-822-6434, no cost for this. We're here to help. 800-822-6434. Again, you
have a great opportunity to go, Troy and Jessica just did a market summit, if you will. They put
it on YouTube. You can go watch that if you didn't catch that. It's really a neat thing about Ukraine
and Russia and how everything's moving and what should we be doing now to get ready
for our retirement. Just search for Troy Sharpe Oak Harvest and you can find that. Just search
for the market summit and you're good to go. That's YouTube, search for Troy Sharpe and Oak
Harvest. Now, we're talking about a lot of different things today. We're talking about
the 2022 guide to retirement if you will. Remember, you're the CEO at your retirement.
Troy and the team, really are your CFO to help make sure you don't make mistakes,
but they do this day in and day out. They know so much more about this than most of us, certainly.
They're here to help you but it's really about you. How do we put the plan together?
That means we need to know about your hopes and dreams and what do you want to do in retirement.
We're going through that retirement plan and the process that goes with it and all the different
areas that are involved in that. Certainly, Troy, it starts with investment planning,
income planning, tax planning, and then there's health planning, estate planning. There's a lot of
different parts. You've covered a couple of these already, but I know you wanted to add in a little
bit more before we just keep moving down the road. Troy: Just to bring you back up to speed for those
just tuning in to The Retirement Income show here. We were talking about income mapping, and
first segment of the radio show here, we were talking about the first step in the Oak Harvest
Retirement 360 process, which essentially is identifying risk capacity, your willingness
to take risk to identify what is the appropriate investment allocation based on your risk, but also
with respect to steps two and three of the process generating income. Step three is taxes. Once we've
identified those risk parameters, now, we need to identify where are we going to generate income?
How much income do we need in retirement? What is the impact of taxes on that portfolio
distribution rate. Meaning, if you need to pull out a simple analysis 3% per year, 4% per year,
what is the after-tax distribution rate, and then we need to take into account inflation over time.
We do that with respect to what we call a sensitivity analysis, essentially,
based on what we identified in step one: possible portfolio allocations and expected returns
for that given level of risk. To make this simple, we call it the Oak Harvest Retirement
360 process or the Oak Harvest Retirement 360 plan, where we're looking at not just investments,
like most firms out there are doing. Most firms and a lot of good advisors in the
industry, really, there's a lot of good advisors out there. I just personally believe they work for
firms that do not provide this level of planning that I strongly believe you need in retirement.
"It's too often, let's just get you into these stock funds, these bond funds, take 4% out." If
you want to talk about taxes, go talk to your CPA. You want to talk about estate planning,
go talk to your attorney. Oftentimes, we see clients go talk to their business, the
person who's just maybe done their very simple tax return over the years has never projected forward
and looked at your entire financial estate to do this type of tax planning, it just doesn't happen.
A lot of times, we'll also see clients go to their business attorney who helped them create an LLC
or possibly help them with some issue they had at some point in the past.
They go to them because it's familiar and, "Hey, I need a will, I need to trust." The attorney says,
"You know what? Sure, I'll do that for you. $1500, $2500." We simply believe all of this
needs to be connected. You get one chance to do this right and if it's not all connected,
trust me, I've seen it enough, over many, many, many years. It's very likely that there's going
to be some type of oversight, some type of miscommunication, some type of something not
followed through with. That creates inefficiency. For those of you who know me, I hate inefficiency.
I don't know what it is. I can't stand inefficiency. Income mapping, getting back to step
two here of this process. Once we have identified the risk, we want to know, "Hey, where is your
income coming from relative to your spending goal, and then also relative to your guaranteed income
sources." Social Security, pension, and annuities. These are guaranteed lifetime income sources.
The more guaranteed income you have in retirement, typically the more secure you feel.
Why? Because whatever the market does, in your 70s or 80s, you typically don't worry
about it because you know there's going to be a check deposited into your bank account
next month. If you have $60,000, $70,000 of Social Security, and then another pension for $30,000.
It doesn't matter if the market goes up or down, if you have 100,000 being deposited over an annual
basis into your account, that brings security. We want to map those out because then that helps
us determine if we go back to step one, and maybe we can adjust the portfolio allocation
for other goals, such as a little bit more aggressive growth for charitable giving,
to help children out, to your children out or anyone's children for that matter.
All this also ties into step five, which is the estate planning stuff because we need to have an
idea of how much is left over. Do we need trusts? Do we need to introduce some more sophisticated
estate planning techniques to make sure the beneficiaries of your account are your family
or your charities and not the IRS? Because those are the only three possible beneficiaries. It's
either your family, your charities or the IRS. A lack of planning, typically the IRS,
will start to become a bigger and bigger beneficiary of your life savings,
but all of this ties back to step one, step two, and step three. Investment planning,
income planning, tax planning. Once we layout the guaranteed income sources, we look at your
spending goal here, then we identify the gaps, and then we have to say, how are we going to generate
the income needed to fill these gaps? We need to look at inflation and we need to look at taxes.
Once we have that figured out, and of course, we have the discussions with you,
the client. We look at various alternatives. One of the things we do is what's called a what-if
analysis. This is really, really cool. I'm looking here at my computer screen and
I have it pulled up here. One day, I think we're going to turn this into a podcast or at least
hook this up to the YouTube channel so everyone can see it but I just want you to imagine
four dials. Think of them as probability dials,
where someone who's very, very secure in retirement that probability dial is at 99%.
Somebody who's very insecure or at risk of running out of money, that probability dial is at 25%.
When we start to look at the first three steps of the Oak Harvest Retirement 360 Plan
and going through different assumptions for spending, investment portfolio allocation,
returns, risks, life expectancies. We'll plug these into each of the what-if scenarios.
What if we spend 100,000 for the first 10 years with 3% inflation, reduce it to 80,000 per year
in year 11, with the life expectancy for the husband at age 88 and the
wife age 92. That's one what-if scenario. Then we'll have a second and a third and a fourth
where we adjust the spending levels, we adjust the portfolio investment allocation, we adjust
all the variables, and then we dial each one in to give us what is the highest probability of success
given those various circumstances. That is what I mean when I say, "Staying connected to
your money." The most important thing from that point forward though is to actually
stay connected to the plan. Things change. Now, what changes? Your health can change, your
spending goals can change, your actual spending versus your projected spending, portfolio returns,
that's obviously going to change. We do a very dynamic spending plan for our clients, meaning,
we recommend for the most part when markets are good and we have great performance, we can
feel comfortable spending a little bit more. Maybe we bank some of that growth and we keep
it invested or we create a secure bucket where it's much lower risk, but when markets are bad,
we do encourage people to typically tighten the belt a little bit if we go into a recession.
Of course, this depends on your particular circumstances. If you're coming in at 99%
and we're looking at all types of bad market returns, you can spend at that point whatever
you want to spend, it's your money. Our job is just to keep you connected to what all of these
different variables that can impact your portfolio value, your income, your taxes, what do they mean
for you? Do they impact you in a negative way to where you are at risk now of running out of money?
These are everything that-- This is what we look at when it comes to retirement planning,
the what-if worksheet, that process is really cool. If you haven't done anything like that,
it's something that's definitely worth taking us up on because it helps to connect you to
your money and what those decisions that you have to make, how they're all interrelated, how they
impact your security? To do that you want to reach out to us the phone number is 1-800-822-6434.
I encourage you, go to the YouTube channel, get to know us, learn on your own time. Just
go to YouTube and search Oak Harvest Financial Group, have a couple hundred videos out there,
income planning, tax planning, the markets, current events, investments. We put out five
videos a week on the YouTube channel. Jess is starting one for women.
Not just for women, but she approaches it from a women's perspective to help bring it down to a way
she best communicates and she communicates with others. Man, the YouTube channel, if you're not
taking advantage of that, it's a great resource. Just go to YouTube, search Oak Harvest Financial
Group. There's no cost. There's no strings. If you want to work with us, great, reach out to
us. If not, you're still going to learn a ton. I encourage you to go to the YouTube channel
and start watching some videos. Mark: You think about it, just starting
the YouTube channel with a topic of women in retirement, you think about this stat: 80% of
men die married. That means at the end of their life, their spouse or significant other, they're
basically to help them get to the end, I suppose you could say, but there's somebody there to help.
When you think of the other side of the coin, 80% of women die widowed, divorced, or single.
Who's there for them? Hopefully children, I suppose, or friends, but it's just a totally
different thing. I think this is really cool that Jessica is going to come out with some of videos
that really pertain to women in retirement because it's a much different scenario.
You think about losing a spouse? Well, the lower of the two social securities goes away. Maybe a
pension, some or all of it goes away. Then, "Hey. Congratulations. You were married for 50 years,
so this year we'll let you file joint, but next year you have to file as a single person now
your taxes have gone up." There's a lot of moving parts here, so really look for
those from Jess. The YouTube channel again, just search for Oak Harvest and Troy Sharpe.
If you want to chat with the team about any questions or concerns, or anything that Troy has
talked about, or you just have some concerns that might be keeping you up at night, 800-822-6434. It
can be a 15-minute phone call just to touch base, see if there's a way that Troy and the
team can help. They can't help everybody. You might have $250,000. You might have $500,000,
$1 million, $5 million, $10 million, $20 million. Everybody's situation is different.
The Retirement 360 Plan that Troy has been talking about today, everyone is
created different for whomever they are sitting down with: married, divorced, widowed, widow,
whatever. They're here to help you and it's all about you. There is no cookie-cutter
Retirement 360 Plan, it's about whomever they're sitting down with. Again,
that number is 800-822-6434. We're going to come back and wrap up today's show. This is
Retirement Income Show with Troy Sharpe, the CEO and founder of Oak Harvest Financial Group.