Business Innovators Radio - Interview with Richard Hanson President of Generations Wealth Management Discussing Financial Confidence in Retirement

Episode Date: December 10, 2024

Two generations of trusted Hanson financial professionals serve multiple generations of clients concerned with financial goals, wealth management, safety, security, and estate planning. Richard Hanson, President of Generations Financial & Insurance Services, began his career in 1983. He is currently an educational speaker on retirement and money management. Mr. Hanson is Designated as a Certified Senior Advisor (CSA). He Currently Holds a membership with the National Association of Life Underwriters. 2011 Insurmark Hall of Fame Inductee. Andrew Hanson, Vice President of Generations Financial began his career in January 2016. He is the Head of Case Design Team & Digital Outreach. He hosts numerous Seminars educating our community on such subjects as; Social Security, RMD’s, Asset Protection, Legacy Protection, College Funding and IRA / 401(k) Analysis.Learn more: https://www.generationswealthmgt.com/Registered Representative & Securities Offered Through Capital Synergy Partners, Member FINRA/SIPC , 2860 Michelle Dr. Suite 150 Irvine, CA 92606, Phone: [phone] Generations Wealth Management Group and Capital Synergy Partners are Unaffiliated Entities.Influential Entrepreneurs with Mike Saundershttps://businessinnovatorsradio.com/influential-entrepreneurs-with-mike-saunders/Source: https://businessinnovatorsradio.com/interview-with-richard-hanson-president-of-generations-wealth-management-discussing-financial-confidence-in-retirement

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 with us Richard Hansen, who's the president of Generation's wealth management and will be talking about financial confidence in retirement. Richard, welcome to the program. Thank you, Mike. Great to be here.

Hey, I'm looking forward to talk with you because I know that you've got a minute or two in the industry. So I'm looking forward to learning from what you have put together in your career to serve your clients with. But before we dive into that, give us a little bit of your story and your background. And how did you get into the industry in the first place? Well, probably as interesting as I thought it was at the time. I was a teacher. When I got out of college, I played football in college and got into teaching. And as I was teaching, one of my old college roommates was in the industry.

And he talked to me and he said, hey, you know, you might want to take advantage of these 403Bs or TSA's teacher's retirement plans since you're going to be teaching for several years. And I said, okay, that's great. So I met with him and we sat down and we talked and ultimately opened a very small TSA. I think it was probably $50 a month. But as I was talking to him, it was the beginning of summertime. And he said, you know, you've got three months now before you've got to go back to school. How'd you like to take a little look at what this business looks like? And I said, sure.

And at the time, I geared up, got licensed within a month and spent the next. next six, seven weeks working side by side with him. And ultimately at the end of that period, I was able to earn as much dollars as I did teaching the previous nine months. But more importantly, was able to help a lot of folks that are still clients going back from 1981 now. So I made that transition in August of 1981. And they were still here today, despite ups and downs and marketplaces, changing environments, et cetera. So it's been a fantastic journey.

And my goal is to continue doing this as long as God lets me do it. So happy to be here. You know, I love that because it is not just a dollar sign, check the box, got the client, collected the revenue next. It's a lifelong commitment to serving your clients. You use that word, relationship building, you use that. And I think that when your clients realize that, wow, he's got clients that have been with them for that long, it's similar to when you hear people that say, you know, I started working for this company and their employees have been around for 10, 20, 30 years. That says a lot about the company.

So that says a lot about your approach to serving your clients. Well, thank you. So we're talking today about financial confidence in retirement. And I would venture to say that that's probably a. really tough nut to crack given the fact that every time you turn on the TV, the news or the computer, there's all kinds of craziness going on in the economy, the financial markets. So what is the first thing that you are addressing with your clients when you're starting to help teach them to have that financial competence?

Well, I think one of the biggest, biggest lessons that you can go back on and that I preach daily to clients I've had for, you know, brand new ones to ones that are a year or ones that have been with me for 40 plus years is the concept of three components, your expenses, your income, and your taxes. And if you can make sure that those are all tightened up and they're in the right position and you know that, hey, either with Social Security or a defined benefit plan that I'm getting from my old company that I worked with or some kind of TSA retirement income. If I know what that is going in, that's one block that I've taken care of. The second one is my expenses. We oftentimes going into retirement assume that we're going to need less income because our expenses are going to be low.

Well, I will tell you being 68, that's not the case. Our expenses always stay where they're at, if not higher, because you're treating. treating grandkids, children to trips and gifts and things of that nature. So the bottom line between how I address any of those concerns is to get in front of taxes, get in front of expenses, and get in front of income. The volatility in the marketplace certainly is something we address. But if we are upside down on our income and our expenses and the assets we have to drag out from our savings, retirement dollars, we don't want to exceed a withdrawal rate that's too

expensive and can't fulfill that promise of longevity. When we do our planning, we have to look at not a five-year period, a 10-year period, but the rest of your life period. And what that rest of your life period is, we don't know. But the most important part, again, are those three components, expenses, income, and taxes, along with risk tolerance, et cetera. But if we address that properly when we start, I think the rest of the things fall in place. Yeah, and when you mentioned those income expenses and taxes, only two of them we can control. Because we can control expense, we can control income. We can't control taxes, but we can look ahead and help mitigate that.

But you said something interesting, you said the word lifestyle. And I think that that's kind of where I want to zero in on here for a second because sometimes people, yes, they'll fill out that expenses. Like here's what I need to live on. But they don't really have a proper perspective on those expenses because they think, oh, well, when I retire, I'm just going to have this much to need for expense. But in reality, you've got way more time. And to your point, you're going to be taking grandkids on trips or

traveling more or starting that nonprofit or a hobby. So talk a little bit about helping your clients really clarify their expenses based on their lifestyle that they're going to be experiencing in retirement. Well, some of the first things that we talk about really is what does your retirement look like? What does your dream look like? If you had all the dollars in the world that we could show you that you're going to have comfortable lifestyle. What is it you want to do? And dream with me, if you will. Do you want to travel

because you never were able to travel because you had that job for 40 plus years? And is that part of what you want to do? You want to travel the world. You want to go on cruise ships. What is it that you would envision your lifestyle to be like? And then we will back into those numbers. Now, it's important to say, yeah, I want to dream that I'm going to travel around the world. But if our assets or our income or are expensive or expenses or taxation don't allow that, then we have to mold it a little bit more. But it all comes down to making those decisions as to what your life might look like. And how can we prepare you for that?

Yeah, that's a pretty huge point because sometimes I'll, bet you have a checklist of 15, 20 things like, okay, in retirement, would you be doing this, this, this, this, and this. Probably your clients would say, I hadn't even thought of half of these. So when I hear the word longevity, I also know that in today's day and age, we are exercising more, eating more healthy, have better health care, and we're living longer. So when you think about, you know, probably one of people's biggest fears is outliving their money. So you never know, what day you're going to not be around anymore, but you do know the day

you're going to retire. So how do you factor in that longevity given the fact of the lifespans are even, you know, longer than they used to be decades ago? Well, I am known for this following comment and we do it at our workshops and I repeat it to my to my customers. It's the greatest thing about medical science is we're living longer. Yeah. The worst thing about medical science is we're living longer. And that's kind of a two-edged sword in that you can fix hips. You can fix knees.

You can fix shoulders. You can do a lot of those stuff. But the things you can't fix are that cognitive ability. And how do you plan for that? How do you prepare for that? I'm not sure that you do. other than you can protect it with some type of long-term care insurance if you've got the where to all to do that or some kind of adult daily living benefits inherent some investments that we work with. But that's our key component.

We talk about let me know any kind of health problems that you've had. parental issues have your parents are they still living when did they pass what was it from and again no matter what we're still going to be doing those plans specific to no specific end date we want to make sure that we get you know to 8590 95100 and you'd mentioned it earlier the statistical numbers about mortality women outlive men and so there's a different challenge dealing in that area. What we try to focus on with everyone we work with is the entire family, the man, the woman, the husband, the wife, the spouse, the children, the grandchildren.

And we try to be in a position where we educate everyone. So everyone knows what we're doing for that person. So if they are no longer in the picture, the opportunity for, continuity is always there because the spouse is educated and to the degree that they want to give us information or how much information to give to the beneficiaries. We establish that relationship with beneficiaries too. So everybody's involved. That's huge. That family history plays into potentially zeroing in on some of that longevity. And then knowing the family is part of the decision-making process helps them know what's going on moving forward.

So I think that is that is huge. So again, zeroing in on that financial competence in retirement, what are some of the strategies that you are recommending without getting into details or the weeds or specifics, but what are some of the things people can keep in mind so that they keep that confidence really strong in the financial plan that you are working on for them? And especially with change.

You know, you hear the word market volatility, but there's just always change. So there might be inflation change, tax change, market volatility. But what are some of those strategies that we can kind of gloss over from a 30,000-foot view that you're recommending? Well, again, you hit the nail right on the head. We're in a position now where volatility is king in a good way and sometimes in a bad way. Recent presidential elections reaffirmed that. where we had a significant jump in both markets.

And folks had asked us beforehand, what do we think is going to happen in the market? Well, again, been doing this for 43 years, have seen plenty of presidential elections. And my first response is volatility. Yeah, you didn't say which direction. You just said things are going to have some big fluctuation one way or the other. Correct. And at this point in time, we don't have a crystal ball. that says, hey, this is what we believe is going to happen.

But more importantly, to prepare ourselves, we, again, when we first meet with folks, and as we do our twice a year reviews with our existing clients, we bring up the same topics I stated earlier. We talk about have your expenses increased, have they decreased, has your income increased? Did you get a part-time job? What about our taxes? let's take a look at our taxes and not be forensic, meaning going backwards, but let's be proactive and prepare for what those tax ramifications may be for the following year.

And then again, take a deep dive into the risk tolerance level. I've had clients in this last year where we've had a conservative portfolio and have had reasonably good returns. But if they take a look specifically at some of the other things that are out there, individual stocks that may have performed at a significantly higher number, they always come back to me and say, well, why didn't we? Why weren't we in there? They don't always come back. But we have to go back and re-educate them, saying, hey, we can certainly be in a more aggressive position.

But based upon our at least twice a year discussion, here's where we've decided to be. You may try to get a huge, huge return, but understand when you do that, there can be a. significant downturn. So we always want to make sure that we're checking each person's pulse. We want to make sure that nothing's changed. And if we were putting together a portfolio, it's specific for that client. Nothing is a cookie cutter. Yeah.

Someone comes in, they're going to have different dreams, aspirations, risk tolerance, assets, income, expenses, tax situations, et cetera. So each person's planned differently. but again, it's going to be based upon your risk tolerance and the dollars you need to acquire outside of any income you're coming in. And there may be some fixed components. They may be CDs. There may be individual stocks.

There may be mutual funds. There may be fixed indexed annuities, which we believe are products now that are significant in the market and provide for some upside growth, but 100%. downside protection. So again, each person's different. All those factors are compiled. And we try to be in a position where we can address those, like I said, twice a year. And for our new folks, the same thing. We want to make sure that all those components fit the right way and the way that they're supposed to. Well, it's like they say hindsight is 2020. So why weren't we in that sector? Well, we didn't know that six months ago. We see it now looking backwards, but we had a plan to move forward with a

conservative approach. And we did that. And here's good conservative returns. So I think that that's a huge thing that people need to realize is as long as we're posting those, you know, average good returns like we wanted, don't look back and see what could have happened because what could have also happened is in the negative. So that market unpredictability, I feel like really lends itself to the dire need for state. planning. Correct. And you mentioned a couple ideas or topics, you know, like, you know, well, if we want to

have a certain percentage in, you know, guaranteed, you know, maybe like annuities, there's wonderful opportunities that way, but I really want to key in on what you said also, which is the same recommendations for client A might not be the same for B, C, or D. Everyone is different. Everyone has different needs. everyone's risk tolerance is different. So talk a little bit about how you can protect the family's financial future during retirement, given these differences and needs because I feel like even when you meet with someone every six months, there could be some nuances of changes in the plan that you

set up six months ago just from maybe some changes in the last six months. So how are you addressing those in those meetings to make sure that you're protecting their financial future during retirement. Again, it goes back to my original mantra, expenses, taxes, and income. And we want to make sure, because there are significant changes. There may be an inheritance. There may be a death. There may be a divorce. There may be significant things. There may be a long-term care issue that have transpired from A to B. And we've got to be on top of each and every one of them. We talk. We talk. to our clients when they first come in and we develop that relationship. It's as if you're going to a doctor.

Now, if you walked into an orthopedics office and you had hurt your knee playing pickleball and you go into the doctor and say, I hurt my knee playing pickleball and the doctor looked at you and said, well, boy, I've seen a lot of folks your age who've done the similar thing. And I think you've got a torn meniscus. and I can have surgery next Thursday or Friday, which would be better for you. Well, you're certainly going to say, whoa, whoa, whoa, you haven't done any testing. Ask me about how I did it, what my history is, medications.

Did I hear a pop? Did I hear this? Did I hear that? I'm not real comfortable. Well, we do the same thing. A doctor's going to give you an MRI, a CAT scan. He's going to manipulate it. He's going to do physical therapy.

And then he's going to give you options. Well, we do the same thing. We do that initially, diagnose the problem, make recommendations, and then each and every year, just like a follow-up with that knee injury from pickleball to change things, to adapt things based upon what's transpired in the last 90 to 180 days. 100%. And I think that that makes so much sense because you always have nuances that can change. Now, when you're working with clients, are you wanting them or recommending to them that they should be keeping updated on current trends or what kind of learning could they be doing to make sure that all of the things that they put into place with you that they're up to speed on? In other words, you don't want them just to take, what you're saying at face value and say do it, you want them to be part of the equation. So what are the types of learning that you would recommend as opposed to go out and Google it and get really confused?

Well, that's the first thing. And we say this when we do our client workshops is Google is now the new medical examiner as well as the financial guru. Now, you can press Google and ask them about anything, and you're going to get 50% of the pundits believing that whatever you put in there is the greatest thing since sliced bread, you're going to get 50% that say it's the worst thing. So you've got to go between the hedges. Now, we've got the benefit that we send out a monthly newsletter to all our clients and all our workshop attendees

and give them specific things that they can actually go look at this Wall Street Journal article. here's a book that we have read that we believe adds to where you're at right now. And we'll send out what kind of performances have happened in the last 30, 60, 90 days. What might be out there in Congress for tax changes? What's happening with Social Security? So I think, and what we've gotten back from our folks is, When we do send out those monthly and quarterly and year-end letters, what we get back from them is it's succinct and it's specific and it addresses some of the concerns they have, like longevity, inflation. You know, we just recently received social security increases that didn't even keep up with inflation.

So the good news is you got more money, but the bad news is it buys less. and we need to go in there and show them the source of where that came from. And so we've got some great feedback saying, hey, we're just not sending out junk. But what we're utilizing gives them, I think, an advantage ahead of anybody out there who's just simply on their own, Googling whatever might be out there. Yeah, I think at the bottom line is that seek that professional advice and like your big three that you mentioned, income expenses and taxes, you cannot, just go out and figure it out on your own. You've got to make decisions on those individual points and more, all based on the plan that works for you. And I really, I love the example you brought up about inflation and Social Security. Okay, yay, the good news is so security went up, but the bad news is

it's not buying as much as it did a year ago. So that lends the question, what do you do about it? And then that's when you come in at the six-month, 12-month, you know, reviews and go, okay, because of this, we need to now fine tune here. Correct. Correct. And really with that social security increase, you know, they're in a position that that may put them in a different tax bracket.

It may affect their Medicare costs. So there's a lot of things you've got to look at. And maybe we can change the withdrawal rate that you were taken out of your investments to help mitigate that potential increase. Medicare and or increase in tax burden. So I think the biggest thing, and I'm real proud of my staff and what we've been able to do over 43 years, is to be in a position where we're more proactive than not, meaning we always want to be on top of things. And, again, gotten great feedback from it.

I'm real proud of the staff for doing all that. You know, I love it. And it just kind of wraps it all up in this conversation we've been having. of having that confidence in retirement, but making sure that you're focusing on the right pillars to be confident in and getting the best advice from that professional advisor like yourself and knowing that the advisor is going to be sending out great educational content to keep you up to speed. And then when you go in every six months, you're just fine-tuning and tweaking and verifying. And, you know, just like a second opinion at a doctor's office, if they say, nope,

we were good to go, then you leave that semi-annual review with the thumbs up going, yep, the plan is in place and doing what we are looking for it to do. So I think that that's a huge piece that would just kind of wrap up this mindset of confidence in retirement. Before we close, other, any final thoughts that you would like to bring up? You know, again, I think the biggest thing, and we've touched on it a couple times, is education and confidence. Number one is educate yourself. And if you have a conduit, someone like us that can get you that non-biased educational material. And confidence, I think, is real important between you and an advisor.

And we tell people that when they come in all the time, hey, what's different about me than anyone else? If you drew a circle around me for 25 miles, there's 100 folks that do. do what we do. But I think most importantly, from our perspective and what I learned 43 years ago, we're going to be different because we're going to show you things that you may not see elsewhere that gives you an advantage in the markets and greater confidence in the person that's leading you. So I guess that would be my go-to and my end-all on financial confidence. I love it. Well, Richard, it's been a pleasure having you on today. If there's anyone interested in learning a little bit more, what's the best way they can reach out and connect with you? Well, first off, hey, they're welcome to call us at 833-948-2466. Or they can go ahead and go on the internet and go to www.

www.Generationswealthmgt.com. And we'll be sure to answer any questions you might have. Perfect. Well, thank you so much for coming on today. It's been a real pleasure talking with you. Thank you, Mike. Appreciate it. 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.commercial entrepreneurs radio.

com.