Jeff Roediger -- Replacing Wall Street With Main Street
I would like to welcome all public sector employees to my podcast series dedicated to Improving The Lives of Public Employees. Our Mission since 2008 ""Committed to improving the lives of public employees by providing access to financial solutions." Support this podcast: https://anchor.fm/jeff-roediger/support
Jeff Roediger -- Replacing Wall Street With Main Street
Larry Spoth - Chapter One - Putting It All Together For A Secure Retirement
Join Larry Spoth - President, Retirement Protection Solutions and Jeff Roediger as we discuss the importance of working with a Financial Adviser Dedicated to Serving Federal Employees and Their Families.
Each aspect of The Federal Employee's Retirement can be complicated and that is why reviewing the details of your TSP, FERS or CSRS, and Social Security before deciding on a specific retirement date is critical to creating and maintaining a secure retirement.
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This conference will now be recorded.
Unknown Speaker :Hello, everybody, and welcome to our podcast series dedicated to federal employees benefit and retirement planning. My co host is Larry. He's located in northern Virginia, and focuses on federal employees. And so Larry, thank you for joining me and co hosting this. This channel. We're excited about it.
Unknown Speaker :Thank you, Jeff. It's a pleasure. I'm excited to be on it and bring hopefully a lot of value to everybody listening out there then is a federal employee and you know how to structure that retirement and start that planning process.
Unknown Speaker :So this session is the introduction. So let's give a little background on your practice. You know, how long you've been in business, some of your philosophy and then we're going to give Overview and then tee up some of the sessions coming up.
Unknown Speaker :Yeah, sure. Great. So we really got involved in I'll say, the financial side of the world all the way back through 2007, roughly. And you know, even back then we had a mortgage company that service Northern Virginia, Maryland in DC, and that was great. And we did some index products and insurance and different things back then. But that whole business grew into larger business here. We no longer are in the mortgage industry, but we focus entirely on investments, how to invest and grow our monies and roll into retirement. And when we get to retirement, how do we structure that whole thing? You know, most federal employees these days of course have the Federal Employee Retirement System first. Some people are still in the state. SRS program and we're trying to figure out if you get social security when to take it. What does our retirement look like all the way through age 95? Do we need life insurance? You know, all of these different things. As a firm, that's what we focus on, and really is our passion. So, Jeff, I'd say most of our clients are probably over the age of 55. There's some exceptions. Of course, the sweet spot is that golden age of 59 and a half, where IRS steps out of the way and we can start looking at, hey, how can we best structure, you know, this tsp plan for that person who's planning on retiring? Maybe they're going to plan right now or to retire right now? Maybe they're six years or eight years away? How do we put it all together? And so everybody is different. Of course, we all know that everybody has different goals. But as a firm as a financial planning firm with that fiduciary responsibility that we have to act as that's what we bring to our federal employees, and really help them to think and structure properly to move into that retirement phase. So I hope that makes a little bit of sense. But that's, that's pretty much where we are as a retirement or investment advisory firm.
Unknown Speaker :So your philosophy is
Unknown Speaker :putting it all together?
Unknown Speaker :Yeah, putting it all together. It's complicated. I'll give you an example. Some people, let's say somebody had a military background, and maybe they've got some pension, some IRA money over there, and they're gonna maybe get some disability tax rate. And then maybe they've gone and worked for the government, and now they've built out a tsp as well. Every single person is different. Some people have IRAs and Roth on the outside are non qualified. accounts. But how do you put it all together and build a legitimate retirement plan, Jeff, because when I say legitimate retirement planning what I mean is a good firm a good retirement plan is not just sticking somebody into a portfolio, crossing your fingers and hoping for the best and telling that person Have a nice day. No, it's putting together and bringing to the table, all the different tools that are available to us in the financial world, that might be index products that might be products with guarantees backed by an insurance company. It may be a market guard portfolio that we're so proud of to be able to offer on a private wealth platform. It may be all these different tools. And of course, everyone is different. Every single client we have is different and they all have different goals. So how to put it all together so the tools are on the table. How do we use You know, the right tool for the right job? And how do we balance all of that together to meet their goals? I mean, we work with tsp, it seems like every week. And again, every one is different. But I think everybody that comes in, I like to say at least that becomes a client. They're extraordinarily happy. And that's our goal, a secure retirement, right.
Unknown Speaker :That's everybody's goal.
Unknown Speaker :And seems like it's getting more challenging every year in this year is no exception. One of the questions that you and I talked about part of your philosophy is verifying or testing the retirement plan. Can you give an overview I know we're gonna get into details and upcoming sessions, but can you give the audience an overview of you know, why that's important to your
Unknown Speaker :your practice? Sure. So, you know, we heard the old think Reagan coined it but test but verify right? So let's say I was building out this retirement plan for you, Jeff. And we built out this plan, and it looks pretty good. We're pretty happy with it. But let's say we think, you know, Jeff might live to 95 or 100 years old. So what we want to do once we've built that plan, is we want to test it in a great economy, an average economy and a lousy economy. Look, we don't know what the next 10 years are going to look like. You don't know and I don't know. So we're going to test out plan now we're going to use tools like standard deviation and different things like that to figure out okay, this was a lousy economy for the next year, and I'm pulling, let's say 4% of my assets for income. What is my ending value potentially look like when I reach 95? Have I spent down my account? Am I going to run out of money in old age or is there plenty of money there as a buffer, maybe for emergency needs medical needs, who knows, but I want to have emergency money, I want to have a big buffer of money at the end. So the best way to try to project that out, is test again in a great economy and average economy and allows the economy because the numbers, they're not going to lie, Jeff, if I have a client, and we look at it, and they say, Larry, we're going to pull this much money for income. And when we test that, if it shows the income is going to run out, we're going to expose that may be bad news for those people trying to retire. But we have to put it on the table. People have to know the number. So we're going to test that whole retirement plan and see that and hopefully make it set up some very, very strong all the way through age 95. That's the goal. Test but verify. Right?
Unknown Speaker :Absolutely. salutely I
Unknown Speaker :was just thinking as you were talking, you know, we don't know the future, who would have predicted 2020? Nobody? Yeah, yeah. And so it's, we, you know, our firms dealt with federal employees for quite a long time and helping educate and introducing them to professionals such as yourself and what I've seen over the years, you know, you mentioned 2007. We started in 2008, right when the real estate market collapsed. And there were so many people that we met, you know, in 2009 2010, just wishing they would have had somebody sit down with them and say, Hey, you need to balance a little bit. Because it wasn't it was not an outlier for people to lose 30% in their in their retirement. So if you're thinking Planning for a year, year and a half to three years to retirement, you can't afford that. So, you know, the verification process is important. And Larry and I are going to get into more of that. In fact, let's let's share with the audience, our next episode where we're going to be getting into.
Unknown Speaker :Sure. So, we're going to roll into on the next episode, how to invest and grow while structuring retirement income. Alright, so Jeff, we all know that we're young and we have our portfolios or our tsps. And maybe we have some risk on the table more than maybe a normal person but we're young and retirement is way down the road so we can take that risk. But when you hit let's say, you know, the magic age 59 and a half. What we want to take some of that risk off the table because we can't afford To lose 1020 30%, just before retirement planning 234 years out, because often times, oftentimes, we're going to have a long run rate to get back to where we weren't, we don't want to lose that asset that we're going to create income from once we hit that, I like to use that golden age of 59 and a half. So there are tools out there, Jeff, that, for example, I like to tell people look, you can actually get indexed returns with no market linked risk of loss. Now, those products are guaranteed by insurance companies, right. And so the claims paying ability of the insurance company will stand behind that product and allow you to get indexed returns that are decent for growth, but yet protect us on the downside. But how do we balance that out with Let's say for example, a market guard portfolio where you do have market risk, and try to create income that's going to last forever. You know, it's part of our whole program, I think I would say Jeff is really teaching. So when a client comes in or prospective client comes in, we're going to teach them how these products work. And so when we build out the plan, they understand how and why we're using certain products to reach certain goals. And so the next episode how to invest and grow while structuring retirement income, what we're going to learn a little bit about sequence of returns while taking income. And I think people love that because they start to see not only the dangers that they're going to roll into in retirement right market risk, but they're also going to see how to address those James dangers and try to wipe them off the table if possible. So we'll get into some more of that detail on our next, our next podcast, but it's really neat and it's fun and you know, we're, we're passionate about it. We love doing this. It's like putting together a jigsaw puzzle for each and every person. And that's what we do. That's what Our firm focuses on.
Unknown Speaker :Well, and I was I was just thinking as you were sharing, I think clarity and having a vision of expectations for the audience out there of, you know, a timeline and a goal and and knowing what they need to do, and that they can have a a peaceful retirement is, is critical, especially in this day and age. So, we look forward to sharing these episodes with everybody. As we close out today. How can somebody in the audience would like to get in touch with you? How would they do it?
Unknown Speaker :Sure. So The easiest way is you can go to our website, retirement protection solutions.com there's a form field there, feel free to fill that in. If you want to just shoot me an email, I'll give it out on the podcast. It's Larry at. Yes. retire.com shoot me an email, we'll give you a call. All of our planning sessions are free. Or you might see us on TV Jeff. I'm on Channel Nine on a Sunday morning program. I'm on Channel Nine some of the evening news programs. Occasionally we're on Channel eight, or CHANNEL SEVEN as the financial guy right. Used to be a talk show radio host on WMO, that was a lot of fun, but we're pretty much just focused on TV now. So a lot of different ways to get ahold of us. Again, maybe the easiest really is the website retirement protection solutions.com Or Larry at Yes, retired calm in a way. It works fine.
Unknown Speaker :Okay, great.
Unknown Speaker :The audience can also check out fed checklist.com fed checklist. com, download a free retirement workbook and budget. You can also post questions and comments on there and mention the podcast and we'll get those questions to Larry. And he and his team will help you out. So thanks, Larry. Appreciate it.
Unknown Speaker :My pleasure. Glad to be on.
Unknown Speaker :So look for the next episode to be uploaded within a week. And we look forward to helping each of you understand your benefits and retirement in a very clear and vetted manner. So we'll be back shortly and this concludes our session today. Thank you, everybody. Transcribed by https://otter.ai