The Jon Sanchez Show

12/02-Retirement income sources

When you go to work each day, you are creating income for you and your family. Yet when you retire, you are responsible for creating the income from whatever sources you deem appropriate. But there are various types of income you can develop such as fixed, investment and other sources, some better than others. This afternoon on the Jon Sanchez Show at 3pm, we’ll discuss what each of these income sources are and most importantly how you can create them in retirement.

Duration:: 41m
Broadcast on:: 03 Dec 2024
Audio Format:: other

- Tired of the same old decorations? Free Discover the Magic of the Season with deals on everything holiday from Family Dollar. Family Dollar, helping you do more. - Good Monday afternoon to you. Welcome to the John Sanchez Show, on his Doc 780KOH. It's a pleasure to be with you and a pleasure to be with my cohost, Mr. Jason Gunn of Sanchez Wealth Management. This thing in front of your mouth right now, but this is called a microphone. We're doing this thing called the John Sanchez Show 3PM. It's good to have you back. I just want to refresh your memory on it. Couldn't find my key to get in here. You talked me out. - Exactly, exactly. Exactly. Give this social code. - Right, thank you. One, two, three, four. I couldn't figure it out, but yeah, you got it. - It's a tough one. - Yeah, how's it going? How's it going? - Happy post Thanksgiving, it was good one? - Yes, you too, yeah. It was good, went fast, you know? - Yes, it did. - Telling you earlier, yeah. - Good, yes. - Don't care to drive any more anytime soon, but-- (laughing) - Yeah, you're not supposed to drive on Sundays after things. So, no, bad idea. - How was the traffic? - I was actually not too bad. It was worse going south towards LA, you know? Kind of an I-5, you know, let's go 75 and then stop, and then be 75 again. (laughing) The funny part is I was watching traffic come the other way, and I saw the pockets of, you know, the ghosts that we all know of that stops in front of everyone, like way out there, and then you see. I watched it happen, it was so weird. Like, people just, I'm convinced they're just randoms that their job is to stop and then go again. But now, I made it back. It was-- - Just realized you're happy you don't have a two-hour commute every day. - Right, now that is a fact, no thank you. - Good stuff, good stuff. But we hope all of you had a great and safe Thanksgiving holiday, and hey, we're on the final stretch, folks. One more month ago, less than a full month, of course, and it's gonna all be over for 2024, and then we're gonna get ready for 2025. - Yeah, it's Jason, I were talking about this early. It's just incredible, I don't know if all of you feel the same way, how fast this year has gone. It is just absolutely flown by. And what a year it has been. What a year it has been, to say the least. And luckily, we can say that in a good sense, right? - Yeah. - Not a lot of bad this year. Not at all. - For sure. - Well, let me tell you what we have lined up for you this afternoon. We're, of course, gonna recap today's market activity, a record-setting day for the NASDAQ and the S&P 500, dug on down, you know, could have closed in, made it a trifecta, but it didn't. We sold off a little bit, but nothing major by any means. So we're gonna give you all the details, what happened today. Some news in regards to some Fed speak, some news from, soon to be President Trump, and yeah, there was a little bit of things going on today. But overall, just kind of a, to use your term, Jason, kind of a melt update. So we'll get into the details, as Jason does, as eloquent market recap, as he does for us each and every day. And then we're gonna get into our topic. You know, you go to work each and every day, right? And I know many of you are like, yeah, I'm back at it, boy, do I remember what work feels like. You're back at it each and every day. And now, of course, the reason you go to work is to create income for you and for your family. But guess what? When you retire, you, you, you, you are the one that is responsible for creating the income from whatever sources that you deem appropriate. And of course, one of those sources will be your portfolio. But there are various types of income that you can develop, such as fixed income, investment income, passive income. I mean, the list goes on and on and on. Some, of course, is better than others. Some is more reliable than others. And so what we're gonna do this afternoon, we haven't touched on this in quite some time. We thought it'd be a good time to be talking to you about this very important subject of retirement income sources. Because, you know, we're getting quite a few phone calls. People are thinking about retiring. I know two of my phone calls today, Jason, our reviews, the things they're retiring next year. And it's, I don't know what it is. I think people, of course, take a little bit hard or look at their retirement and go, hey, you know what, I had a pretty good year in the market. I'm up, you know, whatever percent. And I feel comfortable. I feel I have enough assets. And let's do it. Let's get out of this rat race and go enjoy life a little bit. So this afternoon, we're gonna discuss with you each of the income sources that are, we'll say most importantly, to be considered. And we'll kind of go through some of the pluses and the minuses we'll interlace in our conversation, how we use them. We're gonna be talking about things like guaranteed income sources, investment income. And then, of course, the mixed bag, which is the other income sources. And for those of you that don't know, Jason and I love this absolute topic because this is why we exist, right? Clients can go out and buy, you know, an investment, buy an index phone, whatever they want. But, you know what, where we feel we really add a lot of value to our clients. And I know other advisors that, you know, kind of focus in the world of retirement planning like we do, feel the same way. And that is good luck going to pick your favorite online brokerage firm or whomever and figuring out an income stream, an income plan. They're gonna go, oh yeah, you know what, you got this amount of money, take a 4% withdrawal. Life's gonna be great. Well, those of you that have listened to us for years, you know, that's not the way we operate. We really laser being focused into the different types of investments, try to get as much fixed income as we can, so on and so forth. And so, this is what we're gonna be going through with you this afternoon is talking about again, one of our favorite, which is guaranteed. And I'm gonna give you a little disclaimer here. I hate using the word guaranteed, but there's no other way to describe it. There is nothing in this world that is guaranteed. So, probably a better terminology would be a fixed income source, but, you know, some of you may say, oh, you know, my social security benefit, which it falls under the guaranteed income category, is guaranteed, well, maybe, maybe not. I hope, you know, in all of our lifetimes it is, but you just never know. So, well, we'll just substitute guaranteed for fixed, but I'm sure I'll slip up and say guaranteed. You'll know what I'm talking about there. All right, my friend. Well, let's get down to the first trading day of December of 2024 and give a nice little weekend. Go for it. - Yeah, I, you know, today, as you mentioned, it was a bit of a melt up, not a high volume day. See bigger news items that the CEO of Intel got the boot, long time coming. Yeah, this guy's, you know, it's a tough job, right? Clearly being second or third place in semiconductors isn't, you know, the desired outcome you either first or last most of the time. But that got, I think, parts of the semiconductor space excited, just knowing that change can occur. There's some positive comments out of China as well in semis that they were looking to AMD, even Nvidia, more comments on a throttle down version of the chips that they currently create. Figure if the second largest economy is being restrained on as a customer for you to see that lift a bit is always gonna be positive. Even though some of the semi-cap equipment players, the ASMLs and KLACs have not had the rosiest of pictures, the creators, the Nvidia's, as we mentioned, have done quite well. But that space had lagged over several sessions and certainly picked up today, communication services did well, consumer discretionary did well, sort of the mega-cap tech found its day in the sun. And the other part of the S&P, the part that actually most recently has been doing quite well, financials, utilities, materials, industrials, they were the lagers and that's why the Dow underperformed today. I think the rotation is healthy. We're seeing it rotate one way, we're rotating the other. But there seems to be a leader with the baton versus just a lot of negativity. And that is a healthy market. We mentioned small caps. I was looking earlier, the Russell 2000's now up over 20% this year. It did pass the Dow and that happened fast. It was up 11% last month, right? And that is why you want to own a little bit of everything. Just sitting in your favorite S&P 500 ETF is great until you get a pronounced draw down of some kind. And that's going to be the source of funds for folks. So having some small cap exposure or commodity exposure will be helpful. And in the case that as people in a bullish market trend like we've seen start to buy the stuff that hasn't been working and small caps and some of those areas have been those. And it's a good reason to not just have all your horses in one barn. Well, yeah, Trump, as you mentioned earlier, was out making comments as far as tariffs. And Canada would say, hey, we're friends, right? And Mexico says, hey, we could be friends, right? And the dollar has been quite strong over the last session or five. We talked about the 10-year scene rates come down. 20 plus basis points over the last week or two has been helpful as well. I think you had a little bit of left and right as far as Fed speakers were concerned today. But Waller did make comments that he expected another cut here in December. I think it moved to what, 70-plus percent now of another 25? OK, another 25 here. And one is it next week? Next week? Next week? Yeah, I don't know all about the day. But that's probably the last cut, I would say, for a little bit of time. I wouldn't be surprised to see some pauses the first part of next year, especially given President Trump getting in there and probably jaw-boning and saying some things. That's why I wouldn't be surprised to see that cut come in here soon. And then tariffs and all that will affect currency. And it will affect inflation. And it will infect interest rates. And so that's probably why the Fed may sit back a bit to see how things respond before making a big change. But yeah, nice to see more green on the screen. And I would expect it continues into the end of the year, just given the normal seasonal melt-up that we see. And there will be more chasing, given that maybe people have been too cautious and needing to chase into the end of the year. There's still a lot of money sitting in the sidelines. Money market accounts, CDs, and so on and so forth. So yeah, there is a lot of money to chase. Let's go back to the rate comment just a moment ago, Jason. So two bases point increase on the tenure today to 420, which is pretty decent considering-- here's the reason I'm bringing this up. Last week, of course, the world got excited when, for those that believed it, that Israel and Hezbollah, they signed that ceasefire agreement for-- some say in 60 days, some are saying that Biden said it's permanent, but you got others that are saying 60-- whatever. I don't care if it's a day. Many questioned whether it was going to last. And today, midstream of the session today, New York Times came out and said, hey, guess what? They've traded fire with each other. And so we'll see how long that lasts or if it's going to go back to what it was before, which is what I think I just don't think. Put it this way, you got Trump came out today, or he posted on his true social, that if Hezbollah does not release hostages-- now, he didn't say specifically which countries are. Israel's whosmever may be. But all he said was, if they don't release hostages, there's going to be consequences for the Middle East. And so normally, that would have rattled the markets. You'd have seen bond prices rise and bond yields fall dramatically. You would have seen a lot of movement in currency. You'd have seen a lot of movement in oil prices. We didn't get that. Market just kind of brushed it off. So I thought that was a pretty good positive to come out of there. Oil prices were relatively quiet up just $0.18 today, $2.68, $0.17 a barrel. And like you said, you had the fed speak. And yeah, everyone's pricing in a quarter percent cut. That was a pretty good bump up today to that 79% probability I mentioned. Last week, we ended the week with about a 66% probability. And a week ago from today, it was a 52.3% probability. So the street is definitely on towards that. But like I've said before, and you've said, who cares, right? A quarter percent is spitting in the wind. So it's just something fun to talk about. So overall, not a major day. Had just a couple economic reports. We had the ISM manufacturing member. You want a reading of a 50 to show expansion in the manufacturing sector. We're still below it. We came at 48.4. But it was a nice improvement. That was November's read, a nice improvement from October's read, of 46.5. And then October construction spending up just 4/10 of a percent. So like I said, just kind of a nice way to ease into the week after a long weekend. And hopefully this momentum will continue as we run through the rest of the week. So yeah, that fed meeting December the 18th. So it'll be here before we know it. All right, geez. That was pretty simple. That was one of the easiest market recaps who've been able to do in a long time. So I say we come back and get started on our topic. So that one's going to take a little bit more time and a little more work. All right, let's turn it over to Kristin. So speaking of hardworking people that she is, my dear, how are you in the right now? Traffic Center. Welcome back to the John Sanchez Show on new stock 780KOH which Jason got. Here's how we finished up for the day of 129 decline on the Dow. 0.29% with a close of 44,782. And as I mentioned, a NASDAQ and S&P record day. NASDAQ rising 186 points, 0.97% to 19,403. S&P at 15 points, 0.24% to a level of 6,047. Also as I mentioned, oil prices edging up just slightly, 18 cent gain on oil, the 68, 17 a barrel, small loss in gold down 8/10 of a percent, 26, 58, 20 an ounce, and two basis point increase on the 10 year treasury at a close of 4.2%. I want to share with you one quick thing. For those of you that have listened to the show for a long time, you probably also tune into some of your favorite financial shows like CNBC, something Jason I have on in our offices all day long. And you know, I've heard many of our listeners say that we have become a part of their life and I've had people say, we've sat in my driveway in my garage to listen to the show and so on and so forth. And that's what happens when you have the same routine over and over again. You develop like a bond. We feel we have that bond with you guys and hopefully you feel the same way with us. Jason and I got a little bit sad this afternoon. It was announced that if you watch CNBC for any length of time, probably last 10, 15, 20 years, if not longer, there was, I should say, just a legend, Art Cashin. What was his final for you? Who was paying whoever? The CBS, right? Yeah. This gentleman has been a fixture on the New York Stock Exchange. He's a floorbroker, he's a director of floor operations to be exact. The Washington Post years ago called him the Wall Street version of Walter Cronkite, been on CNBC for more than 25 years, been on the floor. What was the number, Jason, like 45, 50 years, 50 years. And just a hell of a nice guy. And again, one of these guys, not Ivy League educated, but just street smarts and just a great guy and a gentleman that people would go to, the news professionals on CNBC, and I mean, he was on Bloomberg. He was on a lot of different stations. When things got crazy, right? He was a man of very great common sense. And unfortunately, he passed away today at the age of 82, or 83, excuse me. And just a loss. Like Jason and I were saying, it's a sign that you're getting old and you've been around this business a long time when, you know, people that you kind of grew up with, which Jason and I did watching this guy when they start passing away and, you know, you were saying about movies already kind of, kind of open your eyes and things like that. But yeah, it's just sad, you know, sad when you lose another legend on Wall Street. Because there's, there's not many of them left. You know, they're, they're, they're, that whole generation, Jesus, you know, they're up in their 80s now and some of them are still working, but a lot of them, of course, retired. I wish he would have retired and could have enjoyed life, but he chose to work. And, you know, I think the floor of the stock exchange was his, was his, his, his vacation, you know, he loved, loved being there. So rest in peace, my friend, you were a legend to all of us young guys when we were younger and now all of us guys that were getting older and you're going to be sorely miss his, his expertise and friendship that he displayed to the, you know, to us and the industry and, and to many of you is just, you know, retail investors and stuff, he's going to sorely be missed. So I just wanted to, you know, give a little shout out to him and his family and things. And it's just sad day, a little bit of sad day there. So you have any, any great, you know, memories of him, but yeah, I mean, you know, again, sort of like you said, it's one of those fixtures in your day to day, right? Yeah, being on the floor, I, I got to meet him when I was on the floor in New York. And it's just, like you said, these types of people that pass away, like, wait a minute, we're all, you know, we're, we're all not going to live forever. And, I mean, it's, it's, if you could make it to 83 and, and get to do it as long as you do something that you like, it's, you know, went out to probably exactly how he wanted to. Yeah, no doubt about that. Yeah. I mean, he went, seemed to see these last few years and I don't know what he died of, but he had the, I know he had the shakes pretty bad in his hands and things. I don't know if it was Alzheimer's or whatever it was, but you could tell he was, he was fading a little bit. But man, like I just showed up every day and, and wrote his comments and so on and so forth. Old school guy didn't, didn't use a computer, which is bizarre, you know, his line of work and, you know, being on the floor of the exchange and, and, you know, just kind of the old school. I think that's the part that gets me. It's just, it's that old school side of things that just slowly, but surely going away. You know, especially on the floor of the exchange. So yeah, I got to meet them when I, when, when the times that I went back there to just, just a great time. Cool. Can be sorely missed. No doubt about it. All right. Let's get down to our topic, which is retirement income sources that are not all created equal by any stretch of the imagination. So we're going to go through what we feel are some of the ways you need to start thinking about retirement income. So going back to some of the conversation, Jason, I have with our clients when we get the phone call that they're thinking of retirement or hey, it may be, I just got laid off or whatever the case may be. We don't really get there, you know, if they're a brand new client, we don't really jump right to the topic. Well, you know, what are your asset levels and things like that? My first question is, I know Jason is too is, okay, so what are you going to be your, your income sources? Because yes, you've heard us say a million times, does it really matter how much money you have invested? What matters is what are going to be your sources of income and retirement because that is really going to determine what your retirement lifestyle is all about, right? You can have multi millions of dollars producing, let's say $300,000 a year. But if you are living on or needing $400,000 to live, what's the $300,000? It means nothing, right? So what you want to be thinking about is I need to get reliable sources and that's going to be our first topic here. The reliable sources, again, we're going to interchange the word guaranteed with fixed, it's the same type of thing. Because remember, folks, when you're doing an income plan, the goal is is you want to get as much on that side of the ledger of guaranteed slash fixed income. Why is that simple? Because then you are not relying upon this crazy thing called the stock market and this crazy thing called the economy. That check, hopefully every single month is going to be deposited into your checking account or if you're old school and you get it in the mail, it's going to be there. That way you can count on it to pay your bills and live your lifestyle. The variable side, which we'll get to things like portfolio income, et cetera, that's out of everybody's control, right? We all try to do the very best we can to grow our assets in the stock market, but things happen. And again, our job as advisors is we want to try to, again, build up on that ledger side of things. And I'm just going to mention it once. I'm not self-promoting, but go to our website, www.sanchezwealthmanagement.com. We have the risk program, the retirement income savings calculator. And that program will do exactly what we're talking about for you. It'll show you what your fixed income sources are, your variable income sources, net it all out. And then you can see where you kind of sit on this scale because it's very important and so Jason, let's get at least one of these out of the way into our fixed income side of the equation. And that is the social security side of it. I mean, this is a, as we hear it from our clients, this is a story in and of itself. There's a lot of confusion out there, but the bottom line, that checks pretty reliably each and every month. Yeah. And I mean, remember the government has a money tree that they can harvest from to continue to pay social security. I've told most folks I have the utmost of confidence that that's not something that they need to worry about going away. Only anyone who's at or near starting it or currently on social security. But the payments from it are we talk about fixed income. It is a fixed payment over time. Yes, you've got COLA changes, but at least you can say it's fixed floor that you have a income payment that you can rely upon social security. Where many is a primary source of income, I would say, depending on when you started, it may or may not have been intended to be so, but for some it is very much their only income source. Inside of this group too, we've got pensions that may affect their social security, depending on what the source is, whether it was from state or a state pension may reduce what your social security payment is. And that is something that folks. They're looking to, there's some bills going through Congress where they're trying to get away with that too though. And those are changes that should certainly be discussed where you, some feel they get short changed in that. Annuities are another way, VA benefits, but anything like we talked about on the guaranteed income side is something that you can count on, and like you mentioned earlier, to have the market portfolio be the portion of your growth keep up with inflation, whereas fixed income oftentimes, outside of COLA, like we talked about that social security provides, not every fixed income source has inflation protection. It is a fixed payment. If you're getting $200 a month, if prices of goods and services go up by 100%, you're still getting $200 a month, it feels like you're only getting $100 now, right? And so that is why you have a portion of your assets allocated to something that does have a growth component to it versus entirely being on fixed income, because that can hurt you too. Absolutely. All right. We're just getting warmed up. We'll continue our discussion on helping you create retirement income sources. Let's turn it over to Greg Nef. He's got news traffic on weather. Hey, Greg. Welcome back to the John Sanchez Show and his stock 780K away to what Jason got. Once again, we finished down 129 on the Dow, a record finished for the NASDAQ and the S&P up 186 on the NASDAQ to 19,403 S&P at 15 points to 6,047. Retirement income sources, right? It's not as simple as it sounds. You don't just take a lump sum of money and say, oh, just give me a three, four or five percent withdrawal rate. There's many, many strategies that go behind that and we're trying to highlight some of those strategies for you. We mentioned at the first segment or second segment, right before we went to break, we started getting into this. Again, our first area to talk about, again, the guaranteed/fixed income side of things, as Jason mentioned, Social Security, pensions, annuities, veterans, benefits, et cetera. I want to mention, I got a little stat. We were wondering about this on Social Security. Jason, according to the Center on Budget and Policy, this is as of March the 14th of this year. According to that organization, roughly 40 percent of Americans age 65 and older rely on Social Security for at least half of their retirement income, 40 percent. So, that's pretty substantial. I knew that number was up there, but again, that's the way it is for a lot of people, but it is a great reliable fixed income source for you, but hopefully you can use it as a supplement, not as your primary source of retirement income. That's not what it was designed for. You can go back to the history and it was designed as a supplement. That's part of the reason why, again, maybe it's foolish, but I have a lot of confidence that that's not going to go away anytime soon, A, because the folks you just mentioned are massive voters, B, the pitchforks and flames that will take place if they decide to pull those away will be quite amazing. The conversation about removing the taxes on Social Security, I think, are interesting too, I mean, if we were running a budget surplus, then I understand taxing something, right? But ultimately, if we're printing the money to pay out Social Security, why are we then taxing it? It's sort of dumb. It doesn't make any sense. So, I think that all those reasons Social Security is here to stay, it provides a lot of systemic support for folks. Not only that, that's a great point, but not only that, but folks, remember this, and we get this the reason we spend a little bit of time on Social Security. We had a lot of questions exactly as Jason alluded to, which is a good question. Yeah, fear, especially the younger clients, Social Security going to be there, and again, we always say yes, but keep this in mind also to make you feel a little bit better. For those of you that don't understand how Social Security is funded, right, it's funded between you and the employer, okay? So you pay 6.2% into Social Security over wages. The employer pays 6.2%, and then you add Medicare 1.45 on both sides of the equation, et cetera. But the reason I'm bringing you up to this is really simple. We as business owners, Jason and I, we experienced this after the Great Recession, and let me tell you what I'm talking about. In our wonderful state, which I love to my hardest content, but I'm not happy with the certain department, I'll just say, I'll leave it at that, within the state. Because what they did, when they extended the long-term unemployment benefits for people that decided, you know, it's easier to stay at home and collect my long-term unemployment benefit that just kept getting extended and extended and extended. They didn't come out of their pocket, or they didn't, you know, take it to a ballot measure and decide to raise an income tax or something else to fund this long-term unemployment. What they did is they came to us, business owners, and said, hey, guess what? And they didn't tell us all afterwards, you guys are going to be paying, guys and gals are going to be paying us back to the tune of over a billion dollars our state decided to pay out an extended long-term unemployment benefits. It's called the modified business tax, right? Any business owner knows this. We are still continuing to pay on it. Jason and I have to pay on it every single quarter. We have to show money out. Large corporations, small businesses, you know, you have to be over a certain income level to do it or to have it assessed to you. But it's like, and as I talked to a representative one day when I got really upset of having to continue to pay this bill, and she said, John, between you and I in the fence post, and she's kind of whispering in the phone because she had like one week left at this agency, she goes between you and I, it's a cash cow for the state. It's going to continue forever. I'm like, yeah, no kidding, no kidding. So the same thing will apply to Social Security. If God forbid tomorrow Social Security ran out of money, guess what they're going to do. They're going to come to every single business owner like Jason and myself and say, Hey, you know what, guys and gals, you were paying 6.2% for your portion of Social Security. Guess what? You're now going to pay 15%. Right. I mean, it's or 20 or 30 or 10, whatever it may be, they always can come after the business owner. So unless we're in a great recession in our country, the business owner is big and small is always the one that's going to be that that that safety net for Social Security. Everything about it that way? Yeah, and I mean, ironically, it is self-funded. The income line item that is the Social Security contributions from employers and employees into the bucket actually pays for Social Security. So it's one of the few things, if you look at income versus exhaust as far as government spending and income is concerned, it isn't a negative. It isn't like we're paying out like a GM pension, seven people are taking for every one person that's putting in. It actually is self-funded, which still is a good thing. It's just like you talked about, oftentimes taxes get used for different things and that's where the frustration happens. Another part two, touching on interest rates, right, people asking how come rates have actually gone down over the last couple of weeks is, you know, as you read into this department of government E or whatever the E is on Doge, the thing that Elon Musk, Vivek, Rama Swami are working on, you know, their goal is to try to expose in some way the ridiculous government spending, right, the $600 paper clips and things along those lines that if done well, you know, you probably could create a lot of budget relief, right? That could help with the debt issue, longer term, I know they say they have 18 months to sort of do what they're going to do, but that may be part of the reason also that, you know, the market has reacted somewhat favorably on the interest rate side to the U.S. debt situation that maybe someone is going to lift the hood a bit and cause some, you know, at least a desire to scrutinize some of the spending that we have that could read favorably in the next five to 10 years from a debt standpoint. So that's just another thing that I had read about over the weekend in my driving and listen to on various podcasts that could be favorable as far as the debt situation, Social Security was mentioned as one of the areas that, you know, there's some clearly some fluff spending that probably could be exposed as well. Absolutely, speaking of the same thing, I read an article over the weekend about it's not a jokey matter if you're on that side, but how Elon Musk has already gone through and identified a number of federal workers, like, I mean, some crazy departments, like, I mean, bizarre things, like, you know, researching this for, you know, green gas, I mean, positions that pay $180,000 a year and you can't even describe what they do and there's like one person in that department, so, you know, it was a give me by, you know, somebody in the administration. Yeah, we're going to create a job for you and we're going to give you this title. But yeah, it's crazy. The amount of waste that is out there. Absolutely crazy. So it's going to be interesting and a lot of people are saying, you know, Musk is going to use it as kind of a go against some people that have gone against him over the years. I don't know, it's, which is not right, but, you know, but hey, you know what, he's got to find some money somewhere, Jason, because just right before the show is announced that he, the court rolled down again. Right, so now $50 billion compensation package. So maybe there's going to be some changes, you know, it's just, you know, very much nothing would make me happier to see a bunch of government, politics, garbage exposed and gutted. That would be my, that would be my happy day for sure. You hear you 100% all right, so once again, we covered the guaranteed and the fixed income site. Just remember, it's really simple. Try to get as much as you can on that side of the, of the ledger. Okay. Now we're going to the second side, the investment income. This is where again, a lot of advisors will make the mistake and say, all right, we're just going to, again, assign a withdrawal rate of your entire portfolio again, does not work that way, does not work that way. But it should be a component, not all of your retirement income. So investment income side of things. What do we have? Well, things that you think of, your 401(k), 403(b), your IRA withdrawals, you've got your brokerage accounts, you get income from dividends, from interest, from capital gains, from, you know, selling investments and so on and so forth, move into the world of real estate. You get the rental income, which has a lot of great tax benefits for the right person. Obviously, rental income, depreciation, et cetera. And then, oh, by the way, interest income, which a lot of people are going to be shocked, Jason, when they, when tax time rolls around and they're into the gym, I should say, January of next year, when they get their $10.99, I go, I made that amount of interest off my CD. They're going to be surprised. Or my savings account. It's not tax free. It's not tax free. So those are, again, what we call variable income side of things. And to your point, as one emphasized this one more time, you brought up a great excellent point, which is you have to have this variable side of the equation, because this is especially the investment side of it, 401(k)s, IRAs, brokerage, et cetera. This is where you're going to stay ahead of inflation, right? The way the system is designed, stock market stays ahead of inflation. So you can't just put it all, be safe and secure. We always joke about this. Clients will say, oh, I just want to put everything into a CD. I don't want to take any risk in the stock market. What your risk is, is inflation is going to erode your dollars, right? That time you trade. Interest on, or pay taxes on the interest, and of course, you factor in inflation. Even when we're at 4.5%, which is kind of where we sit now in the low force, you're still really not coming out ahead. You need to have some money, whether you like or not, in the equity markets, again, to help you stay ahead of inflation. So that's the variable side. Again, you got to have it, but you don't want it to be the majority of it. We'll come back on point number three, Jason, wrap us up with our fun area, the other income sources. Boy, this list is long. Let's wrap it up with Kristin Snow, the right now at Traffic Center. Hi, Kristin. Welcome back to the John Sanchez Show on News Talk 780KOH. All right, we've been going through retirement income sources, right? Trying to give you an idea of how you do some calculations, some of the sources, so on and so forth. But as a reminder, if you've missed this show, if you've missed any of our shows, go to your favorite podcast distributor. We've done many topics on retirement income planning, and you can sit back and listen to your leisure and get really smart because we shared a lot of information with you over the years. All right, so far we've covered guaranteed/fixed income sources. Number two, we've covered investment income sources in your retirement. And now the bucket, as we like to call it, all of the other income sources. Jason, I love this list because this is where I can let my entrepreneurial spirit run, getting into different businesses, we need to do an entire show on that because we're seeing a lot of people, especially the younger generations, making a whole bunch of money in all different types of social media and YouTube and all the different things. Let your mind wonder, there's a million ways to make money these days, but start us off in one of the old fashion ways, the part-time work. Yeah, he's really covered. I mean, consulting, freelancing, part-time employment, pet projects, jobs that keep the mind busy, right? There's probably a time where maybe there's some things that you've always wanted to do that you could find income sources from, and there's all the ability to deduct certain parts of business costs, be it healthcare, et cetera, from being a part-time employee on one side or more so a small business owner that you can take advantage of those deductions. So the part-time work is a big, broad topic, but it is a place you can derive income from wife insurance. Can I stop you over for you? Please. I want to share a real-life story because everybody loves it, starting to interrupt you. So I had a discussion with one of our clients this afternoon, and she's getting ready to retire in January. For used to be self-employed, but for many years, has worked for the state of California, right? Well, hopefully through some of our guidance and things like that, we've had a lot of discussions, and she and her husband are going to retire next year. And they've got a little bit of an income shortfall, I'll say right around the two grand mark. So as we went through our risk profile, which again I told all of you is available on our website, and we uncovered this deficit, right? We want to find out now, not when they're retired. We then went into, okay, what can we do to make up that deficit, right? They want to retire, they want to travel. So as Jason and I love to do with our clients, he was just mentioning the self-employment side of things. Many of you, when you retire, you have a talent, right, otherwise you wouldn't have lasted as long as you had in your career. Don't think for a moment, A, that your employer won't hire you back as a 1099, meaning your self-employed employee. We see this happen all the time or independent contractor. But with this client that I'm referring to, they're going to travel, Jason, and they're going to be gone for three, four months, at least, if not longer, living out of their RV. And at the same time, she is going to be able to take on some part-time work to more than make up for this $2,000-month deficit. So think about this. They're going to be able to travel. They want to go to a lot of campgrounds and off the grid and so on and so forth. And she's going to be able to work, make money, and go live that lifestyle that everybody desires wanting the freedom. But at the same time, she's not going to have to go to work for somebody and hope to make a couple grand a month. She can just sit back in her RV, press a few buttons. Yeah, of course, she has a lot of years of experience. I'm saying that wholeheartedly here. And basically sit back and generate that income. And that's the great thing now, folks, is you can do that, right, especially coming out of COVID where remote work has become so much more accepted. And we're talking earlier about Elon Musk, folks, I'm telling you, and I'll just tell you from personal experience, if you want to live that lifestyle, if you want to go live and slash kind of somewhat retire, but not whether it's financially or mentally, you want to continue to work, take a look at Starlink. I was telling a friend about it over the weekend, Starlink is one of the most remarkable pieces of technology for their basic plans, like $250 a month, and you got this little tiny antenna that you just plug into a power source, and you can have internet pretty much anywhere you want to go. And so the reason I'm bringing that up is, you know, again, if you need to do Zoom meetings, if you need to, whatever you need to do, everybody, you got to have internet these days, that's alleviated that too. So you could be sitting out in the middle of the Nevada desert, if you want to just get away from it all, pop up this antenna and, you know, five minutes, your, you know, high speed internet connection, that is just absolutely incredible. So look at the technologies, don't think, again, if you have a shortfall, that's the end of the world. There's many things you can do. Again, we favor the small business side of things versus going to work for someone. So anyways, thank you for letting me interrupt. Yeah, no, it's kind of Starlink is sweet. The, you know, other items, always a sensitive topic, reverse mortgages. I think that my, one of my assumptions is over the next three to five years, that becomes less of a sensitive topic. I think people will find some very creative ways to structure reverse mortgage products, just given the amount of assets that so many people have in their primary home that they want to hold on to. But in order to get, you know, any sort of withdrawal from that asset, it's, you know, you have to take out high interest rates and people don't want to do that. So I think that's going to be an interesting area if done correctly. Well, you've got to agree this way, right? And this talks about, you know, again, so much equity is tied up in people's, you know, primary homes. Yeah. And they don't want to sell because they got the two or three percent mortgage. Exactly. So there's a way to, to, to have a great, yeah, and I think I think you're going to see more of that for sure, some creative ways to do it well. Inheritances, life insurance benefits, royalties from, you know, books or any other properties you may have. Maybe you got a stamp collection or some kind you can use to sell off little bits of overtime. There's lots of ways that people just need to, you know, think a little bit outside the box. Think outside the box. And we really enjoy that part of our income planning for our clients is again, just thinking about creative ways. If there is a shortfall of what we can do for it because, like I said, sky's the limit. There's, there's no reason you can't make as much money as you want today's world. Great job, Jason. We'll do it again tomorrow on the John Sanchez show. God bless. Have a great evening. 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@sansheswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC a registered broker dealer and investment advisor member FINRA SIPC securities offered only in states John Sanchez is registered in Sanchez wealth management LLC and independent financial group LLC are unaffiliated entities. Rediscover the magic of the holidays with great seasonal deals from family dollar. It's never been easier with our wide selection of seasonal decor gifts supplies and so much more for less family dollar helping you do more. You