The Jon Sanchez Show
07/17-The 12 month retirement checklist
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Sorry for missing you yesterday. I missed you. What a day to be out sick yesterday. What a day to be out sick after the massive run-up in the Dow Jones Industrial Library yesterday. I want to thank Cori and Dwight for pulling it out in the last minute, but I had no voice. And like I said, I know a lot of you got this flu/cold thing going around and it got me somehow, some way, no matter how cautious I am, it got me. But hey, like I said, that was yesterday. God willing, the voice will hold throughout the rest of the hour and we can get through a great show tonight. Mr. Gotten has the evening off, so it's just myself flying solo with you. You know, yesterday it had me a little bit worried as I was observing the market with my mouth shut because I couldn't talk yesterday. So many things came to my mind in regards to what yesterday was all about, right? We surged on the Dow Jones Industrial Library. It's one of the largest gains in, gosh, just about two years, I believe, was the number. 743 point gain yesterday, record close of $40,954. But the NASDAQ rose only $37, S&P gained only $36. So it was a very strange day, once again, a day that was indicative of market rotation, right? Something we've been talking a lot about on this program, where the markets begin to rotate, get out of some of the tech names into the broader scope, the industrials, the utilities, pretty much everything. And that's what the Dow Jones Industrial Library is supposed to represent. It's a broad scope of different types of industries and companies, et cetera. So it was no surprise that today, everyone kind of went, you know what? And it started this morning, folks, in the pre-market session, everyone kind of went, well, you know what, these techs, they have had one heck of a run. I mean, you know, even after the sell-off of today in the NASDAQ, still up 20% for the year. But the S&P, the Dow, they're catching up. S&P is up now 17.2% for the year. The Dow's risen 9.3, Russell 2000. That's the one that's just on a tear, a 10.5% gain year to date. But let me take you back to this morning and kind of lay out what happened. But first, let's lay out the rest of the show, because I got some great things lined up for you. You know, a few months ago, we did a show, like I said, roughly a couple months ago, maybe it was four weeks, five weeks, somewhere around there. But Jason and I did a show on what we called the five-year retirement checklist, right? It highlighted numerous things you need to do to prepare for successful retirement in this critical window of five years. Now, we all know the older we get, that five years goes by in a blink of an eye. And it especially goes by, well, sometimes it can seem slow if you have your some sites set on a certain target retirement date. But in reality, it goes by pre-80 Dog Gone Fast. And so we laid out for you when we did that show the different checkmarks, the different milestones you need to achieve in order to be ready when that day finally comes to have that successful retirement that you want. Well, tonight, I'm going to shrink that down for you. And instead of the five-year checklist, I'm going to bring it down to a one-year checklist. But I'm going to go even a step further. We're going to be focusing on different milestones again between now and that final 12-month date of retirement. So we're going to focus on a 12-month, a nine-month, a six, a three, and a one-month checklist. Because again, as you get closer to that magical day, all kinds of things need to make sure that they have been accomplished, that you're aware of, so that there is absolutely no surprises whatsoever when you are ready to walk out that door or off that job site or out of that truck, out of the office, wherever you may be retiring from. We want to make sure that everything is ready to go. All the eyes are dotted, all the teas are crossed. So there is no regret whatsoever when you walk out that door that this was the right decision. Now, remember, whenever we talk about this subject, I always like to remind everybody, let me do it now while I'm thinking about it. No matter all of these great checklists, I'm going to share with you and all these milestones that I want you to accomplish and achieve before you are ready to retire within the next year. There's one thing I cannot do for you, and it's more important than any of the checklists I'm going to give you tonight. And that most important thing is to make sure that you are mentally ready to retire. Only you can answer that question. Not me, not your spouse, not your best friend, your financial advisor, nobody can. You have to ask yourself, am I mentally ready to retire? And if the answer is yes, then boy, if I got a show lined up for you tonight to make sure that again, all the eyes are dotted, the teas are crossed in your 12 month or one year, we'll call it retirement checklist. Okay, now let's get back to the market side of things today. So I take you back to this morning, and it looked like it was definitely going to be an ugly date. Now, the reason I say that is, when I did my first stock update at 523 this morning, the NASDAQ features were already down 293 points at 523 this morning. So more than an hour between the opening bell, and we're already down that far. Well, the reason behind it is really twofold. Number one, the semiconductors. Now, we have seen these fits, right, where people, the investors begin to rotate out of the semiconductors that then drags them out of the meadows and the Microsofts and some of the other major technology names, then the NASDAQ comes down, but nothing like what we saw today. So we start to see that happening, or we saw it happen in the pre-market session. Now, what was the catalyst today? Well, overnight Bloomberg reported that the Biden administration is discussing tightening export restrictions to China even further. Now, we, of course, of course, we have the unlikely scenario where, as a matter of fact, I haven't been with you all week because I've been sick, so we didn't get a chance to talk after the tragic event with former President Trump. And, of course, everything related to him and how the markets now really begin to focus on a Trump victory. But Trump kind of added to the sell-off today, too, from an international basis, because he made some comments overnight in regards to Taiwan needs to be paying us to protect them from China. So it was kind of a day of, I'll call it some international events, but it started overnight and at the momentum just continued on throughout the regular session. And, unfortunately, it was a very painful day, but thank goodness we've got some, you know, what we call money in the bank. We have some shares that, of course, hopefully you've had for quite some time now in the technology space that have, you know, risen very nicely for you, but you gave a little bit back today. Now, the question that we have to ask ourselves is, is this the beginning of an official rotation? Well, many on the street say the answer is yes. So to each zone, but I'll tell you what you need to be thinking about. Look at your cost basis on the stock. Look at where the stock is trading at today. Let's say if you have a video or a meta or some of the big technology names that that really sold off today. And ask yourself, is this a name that you want to own for many years? Is this a name that you want to book your profits on? Remember, no one can ever fault you. No one can never fault you for taking profit. And so you need to look at that. And then, of course, if you're owning these shares in a taxable account, obviously what the tax ramifications are, are these short term gains, meaning short term capital gains, they would be taxed at your income tax bracket, or they long term, meaning you've owned the shares longer than 12 months. And then they will be taxed somewhere around between 20 to 23% depending upon your situation. So you need to start looking at all this, because it would not surprise me. After the action that we saw today, it would not surprise me if we go into a correction mode easily 10% off the highs. It's already happened in some of the names. And maybe even a little bit further. This is how technology goes. It can do no wrong. Remember, it was just a month ago, when the video could do no wrong. And then one guy always warned you, you wake up one day and they go, you know what, enough is enough. And the traders will find any reason whatsoever to begin selling it off. And then it starts dragging everybody down. Because remember, the best analogy I can give you if you're new to the market, technology is like a little like a little whirlpool, right? It just begins to suck everybody into the into the dream with that technology related. And then everybody goes down. And then before you know it, the pool fills back up again. And everybody loves it. There's nothing you can do about it. It's not like, did anything change? I mean, this is what you always have to ask yourself. Did anything change on the video? Did anything change whatsoever? Did the company come out and say, hey, guess what, our earnings are going to be bad or sales orders are going to be bad or anything negative whatsoever? And the answer is no. So, you know, what has driven the stock? You remember, we had the stock split. But what has driven the stock from its 52-week high that was hit on June 20th of $140.76? So today's closing price of $117.99. Did anything change? Not one bit. It's just once again, it's everybody's perception that we find ourselves in. And everyone goes, oh, you know what, this is a situation where I want to take some profit. And I want to rotate back to the rotation scenario, rotate to some of the names that have been beaten up, the small caps, the Russell 2000, the utilities, the industrials. I mean, we cover this list all the time. I'm not going to waste your time with it tonight. But that's what we have going on right now. The question is, is you never know how long these rotations collapsed? I've seen them over my 34-year career. I've seen them last just a couple days and seeing them last for a prolonged period of time. So you have to be very careful. And once again, you have to assess your specific situation. Now, when we come back, we'll start with a semiconductor, semiconductors. And you can see some of the damage that was done there. And then again, some of the other big tech names, like, like I said, like Microsoft and Broadcom and, well, it's in the tech space, or in the semi space, but meta and some of these others, Apple, and how they just got sucked into the little title poll today. So no big deal, but we need to talk about it. All right, then we'll get into our topic tonight, your 12-month retirement checklist. Let's turn it over to Kristin Snow in the right now, traffic center. Hey, Kristin. Welcome back to the John Sanchez Show on News Talk 780KOH. It's a pleasure to be with you this fine Wednesday evening again, Mr. Gunn has the evening off. All right, let's get down to the damage and then back to the sector rotation that we experienced and the weakness in the semiconductors today. So like I said, doubt it amazing 244 point game, 0.59% to a record close of 41,198. The NASDAQ different story 512 point give up down 2.77% close at 17,996 and the S&P 500 lower by 79 points or 1.39% to close at 5,000, 5 and 88. Quick update on the commodity side, good day for oil, 2.8% gain, 82.84 a barrel, little weakness and gold, $7.90 loss finished the day at 2004, 59.90 an ounce and the bond market was quiet with the two bases finishing at 4.15%. All right, once again, as I said at the beginning of the show, it started overnight when the Biden administration indicated that they're discussing tightening export restrictions to China even further when it comes to the semiconductors. So we saw the semiconductors begin to weaken overnight pre-market and then of course during the regular session. Here's some of the damage that was done in the regular session. Nividia, we'll start with that one, of course. When you talk semiconductors they're at the top of the list, $8.37 loss down 6.6%, 6.6 that is to finish at $117.99. We moved to Taiwan semiconductor, lower by $10.70, 5.76% loss. Advanced micro devices declined $15.99, a 9.01% loss to close at $161.55 and the list just goes on and on. But then again, it sucked in other major tech names. Apple for the day was another week when down $5.94, 2.5% loss to $28.88. Broadcom, $13.39 loss down 7.9% to $155.98. Tesla, $7.18 loss, Amazon down $4.19. I mean, the list just goes on and on. There was no place to hide if you're in the tech space today. So is it overdone too soon to tell? Don't know if this is going to be the beginning of a trend or not. And once again, you need to make the decision, are you in this for the long term or do you want to take some profit? Move to the sidelines. Let this rotation, if it's going to continue, you know, pan out and then jump back in. Again, just I told you everything to be thinking about, especially if you have the shares or an ETF that's in the tech space in your taxable account, just be cognizant of what the tax ramifications are and then make a decision. But you know, again, one day of weakness, too soon to tell. But we've been seeing signs, we've had a couple of days with a NASDAQ spend week and rotated out. And then the next day they come back into it. And so, you know, it's pretty, again, it's pretty hard to tell. Now I'll give you some bright news. I told you that in the video again today was was down $8 and 37 cents, stocks up in the after hours up $1 17 to 1 19 16. What I always mention, and I'm going to mention it this time, whenever I've lived through these rotations before, here's a piece of advice I want to tell you about. It's very difficult for institutions that are causing the sell off in the tech space. It's very difficult for these institutions to stay out of it very long. Because even though the calendar quarter ended at June 30th, obviously, but we're not too far from the end of July. This, of course, many of, you know, many funds, for example, many mutual funds, they do report on a monthly basis, not just on a quarter or not on a quarterly, but sometimes on a monthly basis. They do report what their holdings are. And once again, if you start to, if you're a shareholder of XYZ mutual fund and you no longer see Nividi and your holdings or you no longer see Microsoft or Amazon or some of these big names, you may think twice about owning that mutual fund. So these managers, sometimes they'll begin to trim their positions a little bit, rarely will they go completely out of it. So I think right now from what we're seeing, I think this could be a short-lived phenomena. Now we have used this in many instances, not specifically this time, because we're not worried about it. But use this as a buy-in opportunity. I mean, we did this when, last time the video sold off and, you know, we like to do this, like to get in there when the blood's in the water as the saying goes. Kind of calls us a shark, I guess. We like the blood in the water because that gives us a great chance to get in and pick up some of these shares at a cheaper price for our clients. And so, you know, we're not day traders by any means, but, you know, if we think a long-term trend is going to develop, sure, we're not going to do that. But if we think it's just a short-term balloon, yeah, not a bad idea to get in there. So if you wanted, you know, for some time, you wanted to get into, you know, pick your favorite tech stock, but you felt it was too expensive. Maybe it was overvalued. Whatever the situation was, you know, you use situations like this. Also, this is a great time to do a little dollar cost averaging, you know, especially if you have a long-term horizon. You know, pick up some of the shares of, you know, just as an example, NVIDIA at 118 bucks a share. And then if it drops further, you know, 115, pick up a little bit more, so on and so forth. Because folks, would you always have to ask yourself, is, did anything fundamentally change with a company that's down? And did anything fundamentally change with the economy? And the answer is no. And so that many times says this could be a short-term phenomenon. I mean, did Biden say something? Big deal, okay? He's probably not going to have a job anyway, so does it really matter? I'm surprised the street got so excited about it. But again, it's just another excuse because the tech sector has just risen so far so fast. But, you know, discussing, that's all he did, discussing tightening export restrictions to China even further. Well, you know, what's going to happen when Trump comes in and says, all right, we're slapping a bunch of tariffs on China. But I think what upsets the Biden administration, you know, remember, they got really, really upset at China and many other countries that produce chips. And that's why, you know, he created so many of these incentive programs for the likes of Intel and many other companies to build semiconductor factories here at home. Excuse me, because we experienced during COVID, of course, how at risk and we are at bay for many of these countries to produce chips that we all live and die by. We need them in everything. And so, you know, he may be getting a little bit upset about that. Who knows, you know, and again, I didn't see any specific communication out of the Biden administration today. This was a Bloomberg story that, you know, started the sell off. So like I said, too soon to tell, just take a deep breath. And hopefully, you know, things can rebound a little bit tomorrow. And then we can begin to look back and go, man, what a great buying opportunity. July the 17th, you know, would have been. That happens again, many, many times. Looking at the NASDAQ futures, the futures are actually up. NASDAQ are up 60 points right now. So again, if we start to rebound tomorrow, they're going to jump right back in there. They really will. They can't stay out. These companies make too much money and people want them in their portfolio. So keep that in mind. Like I said, just a deep breath. All right, you're now up to date on what happened in the market today. Now, let's get you up to date. And if you plan to retire in one year, what is some of the milestones you need to achieve? Three, six, nine, 12 months out. I'm going to help you answer those questions. But first, let's turn it over to Jack Saban, who's has news traffic and weather. Hey, Jack, welcome back to the John Sanchez show. Excuse me on Newstalk 780 KOH, which pleasure to be with you. Once again, it was a tough day on the NASDAQ side. But a good day on the Dow Jones Industrial Average Front. We've gained 244 on the Dow, 0.59% to record close of 41,198. NASDAQ lost 512, 2.77%, S&P lower by 79 points or 1.39%. All right, one day of weakness. Like I said, let's see if it continues. If not, great buy an opportunity after the sell off today in the technology side of things. But one day in the market, it's not going to derail your retirement plans. But that does not mean you should stop planning. You need to plan. So what we have done tonight is put together a 12 month checklist. Like I said, you can go to our podcast, find your favorite distributor and go back and take a look at the show that we did regarding the five-year retirement checklist. We're going to narrow it down tonight. And I'm going to give you, again, a 12, a nine, a six, a three and a one month checklist. So let's get started. All right, 12 months before you retire. Here's the five steps I've created for you. The first one, number one, review your retirement plan. Maybe your plan was created years ago. Maybe it was, you don't ever have, you never had a plan. If you haven't had one, get one created. Call our office. We'd be happy to help you with that one. But you need to confirm your plan retirement date if you had the plan created before. Make sure that you're saving to your investments all aligned with your retirement goals, especially, again, if you had it done years ago, most likely the numbers are not going to match. So you need to freshen them up. Second step in 12 months before is estimate your retirement expenses. So absolutely critical. We stress this over and over again. Go to our website, download the risk, the retirement income savings calculator. And it will help you calculate your budget. Let you see exactly where your money is being spent on the fixed side, on the variable side, your fixed income and your variable income. It'll net it all together. So you can see precisely what your income is going to be less your expenses. So calculate the monthly expenses. Also, at this point, you want to consider potential changes in lifestyle and health care costs. Right? If you right now, let's say you're living here in Reno, but at some point you go, you know what, I want to move somewhere else. Like I've told you, we've had a lot of clients move out of the area for various reasons. You want to go to a lower cost living area. Well, factor that in. And then that health care cost side of it, boy, please make sure you understand, do you have health care? When you leave, are you going to be Medicare eligible at age 65? Are you going to have to go out and buy your own policy? What is it? Because again, these health policies, these insurance policies can literally, they're going to be like a mortgage payment 1500 to 2000 for a couple is not unheard of these days. So estimate your retirement expenses by calculating the monthly expenses. And then again, look at potential changes in your lifestyle and your health care cost. Third step 12 months before. Same thing. Assess the income side. Make sure you leave plenty of time to review your social security benefits and decide when to start claiming them. Remember, social security recommends that you contact them. At least, well, actually file three months before you are ready and eligible to claim your benefit. Remember, you can claim it 62 for most of you. Full retirement age is going to vary, but you know, 65 years, 10 months, 67, somewhere around there. So you want to make sure you understand your statement. If you don't, get ahold of social security. Like I said, our local office is outstanding. They've got great men and women that are more than willing to help you, but sit down with them and go over your statement. Decide when you want to start claiming the benefit. Realize a course if you're retiring before full retirement age, that you could be penalized if you're going to be bringing in some side income. So you need to understand that. Also, when we're assessing our income sources, check your pension benefits and other retirement accounts. Check the 401k, the IRA. Do you want to be fully invested at this point with such a small window ahead of you? Many times we'll recommend the clients get a little bit more conservative in that 401k 12 months before because what happens if the market does go through a correction phase? You know, if you got a substantial 401k, let's say you had a half a million in there or a million, guess what? You suffer 10% decline on a half a million. That's $50,000. That's income for some of you when it comes to retirement income. You have a million, 100,000. So it can be very substantial. So it's a great time to assess whether you are too risky in your 401k, IRAs, etc. during this 12 month window. Number four, great time to update the budget, right? You just went through all your expenses. Let's update the budget. Create the retirement budget based upon your estimated expenses and your estimated income. Not what you have going on now, now that you're still continuing to work, but when you are retired, guesstimate the very best that you can what your expenses are going to be, what your income is going to be. And again, throw it into our risk calculator and then identify any gaps and address them now. Again, you've got 12 months. You want to address any negative scenarios and any of these gaps as we like to call them now well before you have to retire. Because let me tell you, I've seen it way too many times. People don't do this and they're ready to retire and they come in and there's like a major gap there between income expenses or some other problems. Now's the time to address those. And then again, this is the time you want to consult with us or your financial advisor, review the retirement plan, review all of this, discuss the tax ramifications, discuss the tax strategies for withdrawing from the retirement accounts. As you've heard me say many times, one of the biggest surprises with retirees is many of you will most likely end up having to pay estimated taxes. This is a big shock, right? You're used to having taxes withheld from your paycheck. But when your income, your retirement income is just coming from Social Security, coming from your investment accounts, etc. Many times you don't have enough money withheld so you'll get stuck doing estimated taxes. That's a big surprise to a retiree. So sit down with your tax prepare your tax accountant and discuss, look at, bring this data that I just mentioned. Here's what my budget's going to be. Here's what my income and expenses are going to be. What do you anticipate to be my tax ramifications? Because one of the things that we're going to ask you or any financial advisor is going to ask you is do you want, if you're taking money from an IRA, what percent of taxes do you or what percent do you want withheld for taxes? I mean, people are like, I have no clue. Well, that means you didn't meet with a with your accountant. You should know that answer. You know, is it 20%, 25, 15? Maybe it's nothing. But you want to know because that's one thing your advisor is going to ask you is how much do you want withheld? And they can't give you the advice because we don't see your tax returns many times. That's a great question for your accountant. Okay. So 12 months, review the retirement plan, estimate your retirement expenses, assess your income sources, update your budget, and consult with your financial advisor or us, hopefully. Now, let's shrink it down a little bit. Nine months before retirement, health insurance planning, like I mentioned earlier, review your health insurance options. That includes Medicare eligibility and supplemental plans. I hear it a lot from people. I'm shocked how much the supplemental plans cost. I'm shocked how much Medicare costs, right? Because it's based upon your income. So consult, if you need a referral on this, we got some great sources that can really sit down. They know Medicare inside and out, and really take a look at what these plans are going to cost you. And then, you know, you probably should have done this before, but I threw it into my nine month checklist. Consider long term care. Once again, the odds are that just about everybody's going to need some form of assisted living down the road. Chances are you're probably going to fall into that. And let me tell you, you can wipe out a multi million dollar estate very easily if there's prolonged stay or in home here in a facility. I'm dealing with this right now with my father. And let me tell you, it is very, very expensive. Luckily, we've got it covered, but you got to throw this in. You got to consider the long term care. Like I said, to not repeat myself, it can wipe out in a state. So, you know, discuss the long term care insurance criteria. Second, plan for the health care cost. Estimate what your out of pocket health care expenses are going to be. You know, when I review the risk that the retirement income savings calculator that clients will fill out for us, you know, I go through that. And to be honest with you, I'm shocked at how much money people spend out of pocket for health care, right? It's just the way it is nowadays. Insurance plans have such high deductibles. Many of you are stuck with out of pocket expenses that it really can throw your budget way out of whack. So, sit down and figure out, what am I out of pocket health care expenses going to be? And then consider setting aside along those lines. You still have time to do it. We're nine months out setting up an HSA health savings account, if applicable. Remember, you get to fund the HSA with pre-tax dollars that grow tax deferred. And then you submit a receipt and you can pay these out of pocket health care expenses. Most of them, not all, but most of them with this pre-tax money. So, it's tax-free money. So, you know, again, not too late to set that up. But boy, if you got more time than the nine months that I'm on, talk to your employer, see if they offer the HSA because they are just lifesavers. Our third step within nine months, debt reduction. Work on paying down your high interest debt. The last thing in the world you want to do is go into retirement with a bunch of debt, especially credit card debt or personal loans, those type of things. So, really begin working on paying down that high interest debt so you can go into retirement nearly or if not completely debt-free. And then plan for managing any remaining debt in retirement. This obviously needs to be part of your budget. Figure out where this money is going to go. But most importantly, you don't want to be paying on debt while you're retired. You want to be debt-free. So, are there other options that you and your advisor can come up with? You know, there's a lot of, I'll use the term tricks. I say that tongue and cheek. A lot of things that we can do to help clients get out of debt much faster than they ever thought of before. And so, this is part of what we do in the pre-retirement process is really begin working on paying off the debt. And if we can't do it before retirement, then definitely having a solid plan once they are in retirement to get it paid off. And then the fourth step in the nine months before is review the estate plan. Update or create a will or other estate planning documents. We did a great show on this a few weeks ago. Review your beneficiaries on the retirement accounts and on the insurance policies. Make sure your plans or your accounts that you can name beneficiaries on. Make sure the money is going to go to whom you want it to go to. And again, make sure you have the estate plan in place. Right, you're going to get your hands on a whole bunch of money, hopefully, from your 401k. And you want to make sure again, you got the proper estate plan in place. And like I always said, if you need any referrals on estate planning attorneys, just send us an email at info@sancheswealthmanagement.com. Be more than happy to refer you over to some of the attorneys that we use. All right, so that's the nine months health insurance planning, plan for health care costs, debt reduction, and review estate planning. Now, when we come back, we'll hit down to the or get down to the six month, the three month and the one month before retirement. Let's drop it up with Kristin Snow on the right now, traffic center. Hey, Kristin. Welcome back to the John Sanchez Show on Newstalk 780 KOH. All right, we've been talking about a 12 month checklist to get you ready for retirement. I'm going to hustle to get through the rest of these, but I just instructed my staff to send an email to them to put this into a blog, put this checklist into a blog. So by the time we get it through compliance, et cetera, check back on the Sanchez wealth management.com website. Probably on Monday, we should be posted by then. If it's sooner, that'll let you know that way you have it available to you. In the meantime, if you have something urgent, just send me an email. John Sanchez wealth management.com, and I'll send you a copy of it before we get it on the website. All right, we're in the nine month. Okay, we got to go back to the excuse me, we're at the six month. We got to go now to finalizing a few things like number one, you need to finalize your social security strategy, confirm your decisions of when you were going to start receiving social security benefits, apply for benefits if you plan to start them soon after retiring. Second thing, review the investments again, rebalance your portfolio one more time to reflect your retirement timeline, your risk tolerance, a lot of things have changed from 12 months or excuse me, six months ago, when I had you do this, ensure you have a mix of growth, income generating investments. So this is where the asset allocation is going to come into play. Third, I need you to get serious, we're only got six months to evaluate your housing options. Decide if you're going to downsize, decide if you're going to relocate, or if you're going to stay in your current home. Maybe there's some things you need to do. This is a good point also, that you may want to apply for a home equity line of credit. If you need to get your hands on some equity for various reasons, whether it's home repair or just an emergency, this is a great time, you're still working, get that HELOC lined up. And then under the evaluating the housing options, research housing markets and plan for moving costs, if you are going to be moving out of the area, this is something else I hear from clients, how shocked they are when they decide to move out of the area of what moving companies cost these days. And fourth, plan for life cycle changes, or lifestyle, I guess is a better way to put it. Consider how you're going to spend your time and retirement. Remember my mantra, you've got to have a reason to get out of bed in retirement, where it's going to be your hobbies, your travel, you're going to volunteer. A lot of those things take money, maybe not the volunteering, but the hobby is the travel, they take money. Hopefully you put that in the budget. And then make a list of the activities and goals for your retirement years. You know, maybe you didn't finish your college degree, maybe you're a few credits short, go back and finish that. Maybe you want to get a certificate certification in something, time to go do that. Again, make these goals, it's going to make your retirement so much more enjoyable and keep you busy. All right, we're down to three months, times a ticking, notify your employer and form the employer of your retirement date. They may say, hey, can you stay on as a consultant or not? But there's a lot of things you can do at that point once you tell them, we see this a lot nowadays. You've got a lot of experience and they hate to see that go out the door. So don't be surprised if they say, hey, you know what, we'd like to hire you back as a 1099. If they do that, give me a holler. I'll help you to sit down and talk with you about setting up the right business structure, by the way. And then discuss any unused vacation or sick leave in final paycheck details. We come across this a lot with our clients that retire from the fire departments, the police departments. You have accumulated a bunch of PTO or unused vacation time, that is taxable income to you. But the way we get around that, if they've not maxed out the 403B, we have them do that that minimizes the taxes. So again, some strategies there. Review the insurance needs again. Take a look at the life insurance, the disability. Again, you may lose both of those when you retire. Do you need to buy your own policy? Make any necessary adjustments to coverage. Set up the retirement accounts. Again, time to sit down with your advisor. Where the funds going to come from? How much is going to be coming in? What's going to be the direct deposit of my social security, etc. And then also, what's my withdrawal plan? How am I going to be taking this money out? RMDs. Remember, you got to take money out at 73. Now, what are the tax implications? So on so forth. One month, confirm your health insurance. Review the final details with your employer. Update the contact info. Celebrate and reflect. Folks, it can be done, but you got to be organized. Retirement is a very serious time period. Hopefully, this list helps you. And again, just send me an email if you need this right away, john@sancheswealthmanagement.com. Or again, in about, no, by Monday, we should have a blog put up on our website at sancheswealthmanagement.com. Thanks so much for tolerating my terrible voice today, but hey, the voice held up. God bless. We'll see you tomorrow on the John Sanchez Show. Take care. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sancheswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through Independent Financial Group LLC, a registered broker, dealer and investment advisor. Remember, FINRA SIPC securities offered only in States John Sanchez is registered in Sanchez Wealth Management LLC and Independent Financial Group LLC are unaffiliated entities. Hey, everyone, it is Ryan Seacrest here ready to heat up your summer vacation. Get ready. Things are about to get sizzling at Chumba Casino. Your summer getting a whole lot hotter with a special daily login bonus waiting just for you. So sign up now for reels of fun and reels of prizes right here at Chumba Casino with yours truly. Join me at chumba casino.com and dive into a summer of social casino fun sponsored by Chumba Casino. No purchase necessary VGW Group. Ford were prohibited by law 18 plus terms and conditions apply.