Business Innovators Radio - Interview with Clark Smith President of Golden Years Financial, Discussing Retirement Lifestyle

Episode Date: June 23, 2025

Clark Smith boasts an impressive career spanning over three decades in the financial advisory realm. He embarked on his journey in 1990 as a financial advisor with Dean Witter Reynolds, quickly rising to prominence as the firm’s youngest Retirement Planning Specialist by 1993. Specializing in Retirement Financial Planning, Clark has dedicated his career to helping clients achieve their long-term financial goals.His career trajectory continued upward, becoming Vice President of Investments at Prudential Securities in 1995. From 2000 to 2006, Clark served as Vice President of Investments at UBS, further honing his expertise in investment strategies. In 2006, he took a significant leap by becoming a founding partner and portfolio manager at Woodridge Capital Portfolio Management, where his leadership extended to managing a hedge fund at Woodridge Partners from 2008 to 2016.After a brief retirement from 2017 to 2020, Clark re-entered the financial sector as a Senior Financial Advisor and Director of Retail Operations. His commitment to nurturing talent led him to become the Head of Training for Advisormax financial advisors from 2021 to 2024, where he played a pivotal role in shaping the next generation of financial advisors.Clark Smith’s career reflects a steadfast dedication to financial excellence and leadership, marked by his strategic vision and commitment to education and mentorship within the industry. His specialization in Retirement Financial Planning underscores his passion for guiding clients towards secure and fulfilling retirements.Learn more: https://goldenyearsria.com/Insurance products are offered through the insurance business Golden Years Financial. Golden Years Financial is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. AEWM does not offer insurance products. The insurance products offered by Golden Years Financial are not subject to Investment Adviser requirements. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Golden Years Financial is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Golden Years Financial.Influential Entrepreneurs with Mike Saundershttps://businessinnovatorsradio.com/influential-entrepreneurs-with-mike-saunders/Source: https://businessinnovatorsradio.com/interview-with-clark-smith-president-of-golden-years-financial-discussing-retirement-lifestyle

Welcome to influential entrepreneurs, bringing you interviews with elite business leaders and experts, sharing tips and strategies for elevating your business to the next level. Here's your host, Mike Saunders. Hello and welcome to this episode of Influential Entrepreneurs. This is Mike Saunders, the authority positioning coach. Today we have back with us Clark Smith, who's the president of Golden Years Financial, and we'll be talking about retirement lifestyle. Clark, welcome back to the program.

Thank you, Mike. Happy to be here. You know, it's interesting. We talked about in a previous conversation about, you know, the concept of striving and building and growing and accumulating funds for retirement. Now we want to talk about, okay, now that we've checked the box off and accumulated the right amount and had that plan in place, what's that retirement lifestyle look like? We want to make sure that we're, you know, beginning with the end in mind. So, from your experience, when you're working with your clients, what keeps people from enjoying retirement as much as they actually could? You know, Mike, one thing that we strive for here at Golden Years Financial is to make everyone's retirement as golden as possible, to make the Golden Years truly golden.

And people generally envision retirement as a time of joy, a time of exploration. And then a lot of times people find themselves really being held back from enjoying that chapter. One of the biggest barriers is financial insecurity. When the paycheck ceases, the anxiety of maintaining a stable income can really overshadow the excitement of the newfound freedom that's available. 100%. Yeah. Many financial plans are designed. to provide a consistent income strength, and often it's indexed with inflation.

But what a lot of people really fail to take into account is the reality of their spending patterns in retirement. Those spending patterns in retirement are typically not linear. Most retirees spend more in the early years. They're out there pursuing passions, doing things they wanted to do. They've always said, one day we're going to. And when we first retire, it's typically a time period. Our bodies are young enough and healthy enough to get out and do those things. You know, I was dealing with a couple, I think it was last summer. And they always had a dream of going to Africa on a photography safari.

But they didn't think they could afford to. So I just built into their budget that they were going to take an African photography safari first year. and I built numerous trips in the first 10 years of retirement for them. And then we built that their spending would go down for some time period. Because while we often spend a lot more in those first years of retirement, we do have a decline in expenses during the middle years. But toward the end, cost often rise primarily due to health care needs. And good planning, in my opinion, recognizes the ebb and flow of ensuring that

resources are allocated to match those changing demands because that's what allows people to retire and focus on living fully without having financial worry. You know, it kind of makes me think of, in a sense, you act like a life coach of sorts to sit down with someone and say, tell me what retirement looks like to you and how much travel. Oh, like photography. Oh, you like African safaris. And the next person might say, oh, my dream is to whatever. So once you paint that picture and articulate what retirement looks like, then let's figure out where you're at now and what it's going to take to get you there and making, you know, planned for some of the changes that could come in between. I think that's a super, super, super,

a great approach that you're describing. Well, thank you. And it's often a little more, complex than that because when we retire, we typically have a loss of a daily structure. We've got a professional identity. And in my experience, men are more apt to identify who they are by what they do professionally. And so that loss of professional identity and loss of daily structure can very much leave people kind of feeling adrift. And they've got lifestyle changes. They've got, you know, just this transition from a bustling work environment, which is very much welcomed in the very beginning.

But having that transition from a bustling work environment to quieter days can certainly lead the feelings of isolation. And our emotions pay a crucial role because we've got the joy of this newfound freedom, but it can quickly be overshadowed by fear. and uncertainty. And having a well-rounded retirement plan addresses these emotional and financial challenges at the same time. It typically offers safeguards like perhaps strong social connections, community involvement. You know, it really enables retirees to embrace their golden years with confidence and fulfillment. You know, you bring up a great point there. We could probably spend about four hours on that one concept, which is, hey, you spent decades of your life doing X, whatever you did.

And you felt that purpose. I got up and I did this for work. And I don't care whether you were working on the line at Ford and helping to make cars. That was a purpose. But then when you retire, you're getting up and doing something totally different and your goals change, your schedule changes. And I know that there's some research out there that says when that happens, there's a chance that you can feel like, okay, well, I don't matter or, you know, that whole emotional side of

things, which can lead to a reduced lifespan. But talk a little bit about that approach, how you help your clients plan for that so that they're living their life to the fullest during retirement. Well, you know, Mike, a lot of things that lose power when they're brought into the light. And if people understand ahead of time that they're going to have these profound life style changes, that they're going to go from a loss of structured days and perhaps the need to redefine identity. If they understand ahead of time that daily routines might need to be reinvented, there may be

some relationships that require nurturing or even renegotiating, they've got the time to do it, and that's the perfect time to do it. And when they understand ahead of time that, you know, there's a lot of the, you know, These daily routines are going to need to be reinvented. They can put time and energy into how am I going to reinvent these daily routines. A lot of times new hobbies are picked up. A lot of times old hobbies are picked up again. And often those skills become even sharper than they were before.

You know, we've got time to do all those things that we said, one day I'm going to. And there's something else that kicks in that I don't hear many people talk about. I mentioned it on the last podcast. And that's the fact that our bodies are young enough and healthy enough to do those things. Yeah. I remember a couple of years ago, I had a client and he had the ability to work from anywhere in the world. I don't remember if this was before, after COVID, but he had the ability to

work from anywhere in the world, and he was 67, so he was eligible to take his social security at that point, but he wanted to wait until he was 70 to take it because he would get more money. Well, it turns out his wife really wanted him to take Social Security right then, because she wanted them to go spend a month on the Amalfi Coast and use his social security to fund it. So I did the math for him, and if he had taken Social Security at 67, this couple was going to bring in $108,000

by the time he reached age 70. I don't remember exactly how much more money he would gotten every month at age 70, But the question becomes, let's say, for instance, it's $900. I don't remember the exact dollar amount. The numbers I'm going to speak about are wrong. Let's say it's $900 a month. How many months does it take bringing in an extra $900 to make up not bringing in the $108,000?

Yeah. When they started thinking about it like that, and I think in his case, his break-even point was going to be age 80. It may have been age 82. I don't remember. but when they started thinking about it like that, they're like, you know, we may not be healthy enough to go spend a month on the Amalfi Coast when we're in our mid-70s.

And so I just asked the question, well, there's $108,000 sitting here if you take Social Security now. If you delay it, you know, let's say you break even at age 80, at what point in your life are you going to enjoy that money more? and they came to the realization that they would enjoy that money more by taking it right then. And they got to have a month on the Amalfi Coast because of it.

Wow. You know, and if you were to hit Rewind before you had that, you know, conversation with them and asked the question right off the bat, it might have been answered differently, but you framed it up in a way that really served them well to meet their needs, not any need you had. It didn't matter to you. But I just loved that.

And they're like, you know, now that you mention it, it sure would be nice if. And then there became a clear path forward. You know, Mike, when we're at the end of life, for instance, and we're laying there, relying on our deathbed, typically having that extra $100,000 is not what people are grateful for. What they're grateful for is the thing. they did in the memories that they were able to create for the people that are still going to be left on planet Earth. And in my experience, people's biggest regrets are things they did not do. Yes.

You know, that aligns up with kind of like a personal development mantra that a lot of people have heard of where it's like, you know, we are more motivated by the fear of loss than the prospect of gain. You know, so we at what you just said there at the end of life, we, you know, wow, we we missed out on X or Y or Z, not, oh, I wish I had an extra buck or two in the bank. So it's all about those opportunities that you lost out on. So what can we do about that today? Not spend every dime you have, you know, but maybe sanely and safely maximize those moments. I think that's a spectacular observation. Well, and I think we talked about this on the last podcast as well. I'm not positive.

But when there's a realization that we've got the ability both financially and health-wise to go and do these things now, and there will come a time in which we don't have the ability health-wise or physically to do the things that we want to do, then oftentimes a plan can be a little bit front-loaded in the end with fun money with the understanding that, you know, in 10 years, for instance, spending may need to come down and then have the ability to ramp back up at the end with health care. But you mentioned the fear of loss, and people are afraid more of loss than they get more there's more sadness associated with loss than

there is happiness associated gain. But one thing people don't think about until it's towards the end that loss is not just financial. Loss is lifestyle as well. What did I not do that we always said we were

going to? And I don't know how many widows I've dealt with who have said John and I always plan to fill in the blank from there. And then he passed away. And so I'm having to do these things with a group of ladies because he never got to.

You know, it's like you hear people like, oh, hey, it's been so long since we've seen it. We ought to catch up and grab a coffee. Yeah, we should. Have a nice day. Well, in reality, when that conversation comes up, it should be like, oh, yeah, it has been a while. What do you do in next Thursday?

And to your example there, it's like, you know what, John and I really, when we sit down every year and we make some plans, boy, it sure would be nice if we could take this trip or that trip. Put it on the books, you know, because it's like the old saying, knowledge is power. Just having knowledge is not the power. It's implementing that knowledge. That's the true power.

Well, having some wonderful plan, you know, for this trip or that fun thing to do, that's fine and all. But put a plan into place to start making strides toward that. Now, that doesn't mean blow all of your money and do all these fun things. And now you don't have money for retirement. but if you have a balance plan, take some action because that's a safeguard that can be put into place with those lifestyle changes that can and will happen. We don't know what's going to happen. We don't know if you're going to be physically able to go do that hike that you wanted to do for a Machu Picchu or whatever the case is.

So, you know, take action. I think that's, you know, it's kind of like a reminds of that old movie from the 90s of Dead Poets Society. You know, Carpe Diem. Sees today. Absolutely. You know, retirement is often a time of emotional growth. That emotional growth requires courage and it also requires reflection. And it requires having a good plan that includes financial, financial, emotional, and social aspects that can act as safeguards.

and turn pitfalls into stepping stones. When you build a strong support network and maintain open communication with the people that you love, that can provide the security and encouragement that's needed to thrive. And when income safeguards are in place, and this is something that's often overlooked, it should not be overlooked. but income safeguards and guard rails can let us know when we can and even when we should spend more

as well as letting us know when we should perhaps cut back on spending a little bit. Times of excessive stock market returns allow this freedom and income guardrails when they're in place properly. For instance, I'll give you an example. Let's say that you and your wife need, I don't know, $8,000 a month to live and have fun, enjoy things. And times have been good for a few years. And you're spending $8,000, but there are other things that you want to do. I've said, well, you know, I've got these guardrails in place in your plan.

and these guardrails say that right now you could easily increase your spending to $10,000 a month. But if your account value falls to this level, you know, maybe you need to bring it back down to $8,200. And I almost never see anybody come in and show me what they're doing and have guard rails in place. And income guardrails can be so important. for allowing us to enjoy life the way we really want to, and more importantly, the way we could enjoy life. You know, and it makes me think of this, Clark, some of the things that could crop up

that would make you have a guardrail in place, whatever that might be, you know, long-term care, health needs, you know, whatever the case is. If you have those safeguards and guardrails in place and did not need them, you still have peace of mind. But if you ignored those things and didn't put the safeguards and guard rails in place and all of a sudden you needed extra money for whatever those things are and you didn't have it, what an anxiety-laden feeling that that is.

So I would much rather have it and not need it than need it and not have it. absolutely and the way I think of guard rails are kind of like the the rails that are in place when you're going over a bridge we've got them on both sides and there are a lot of times that people that don't have this in place might want to spend extra money and don't know that hey it's okay because nobody told them ahead of time you know, I'm putting an upper guardrail in place as well that says if your account value gets to here, it's okay to spend this. It's okay for your spending to go up to this level. But if account value gets down to here, your spending needs to come down with it. And, you know, it's important to put those in place so that if the account value does get down to that,

and they do need to cut spending, that they're cutting it to a level that was acceptable to begin with. You know, this is all part of the mantra of, you are likely to be able to enjoy a better retirement than you realize. And a good plan points this out to people. Well, Clark, if someone is interested in having that good plan and having those guardrails and safeguards in place, what's the best way that they can reach out and come?

connect with you. Golden Years RIA.com. Perfect. Well, I will make sure we have that in the show notes and they can learn more about how you're serving your clients with this clarity. I think that is just spectacular. And thank you so much for coming back on today. It was a real pleasure chatting with you.

Mike, as always, I enjoyed it. Good to talk with you. You've been listening to Influential Entrepreneurs with Mike Saunders. To learn more about the resources mentioned on today's show or listen to past episodes, visit www. www. influential entrepreneursradio.com