Money Guy Show: "X% of Americans Over 50 Have NOTHING Saved…"

Podcast Information:

• Title: Money Guy Show
• Hosts: Brian Preston and Bo Hanson
• Description: Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.
• Episode: X% of Americans Over 50 Have NOTHING Saved…
• Release Date: May 21, 2025

Introduction to the Retirement Savings Crisis

[00:05] Brian Preston:
Brian opens the episode with a startling revelation about the retirement savings habits of Americans over 50.

"Unbelievable. This percent of my peers have absolutely nothing saved for retirement."

[00:10] Bo Hanson:
Bo echoes the concern but shifts the tone towards optimism and actionable solutions.

"Brent, I am so excited to talk about this because I think that we can change it."

Retirement Savings Statistics and Outlook

[00:26] Brian Preston:
Brian provides a clearer picture, revealing that while 80% are saving, 20% have nothing saved, emphasizing the urgency for the latter group.

"Now I want to flip this into the glasses half full. Fortunately, 80% of my peers are actually saving for retirement, but unfortunately 20% are. One in five have absolutely nothing saved."

[00:46] Bo Hanson:
Bo discusses the implications of turning 50 without sufficient retirement savings and the emotional impact it can have.

"For folks who have done nothing, who have not prepared at all, I got to believe it's a pretty frightening and pretty scary experience to be in."

Strategies for Those Over 50

[01:56] Bo Hanson:
Bo introduces key takeaways for listeners over 50, stressing that their dollars remain powerful despite the proximity to retirement.

"Your dollars are still powerful. There is still a lot of ground that your dollars can cover from age 50 out to a normal retirement of age 65."

[02:18] Brian Preston:
Brian directs listeners to their Wealth Multiplier Calculator, a tool designed to demonstrate the potential growth of savings over time.

"You can actually use this calculator and see how powerful every dollar in your army of dollar bills can be for you."

[02:43] Bo Hanson:
Bo elaborates on the calculator's dual functionality, motivating listeners to assess their current savings and potential growth.

"The other thing that you can do if you have saved something... let it show you without saving anything additional, what you are on track for."

Adjusting Retirement Timelines and Utilizing Available Tools

[03:49] Bo Hanson:
Bo discusses the importance of flexibility in retirement planning, suggesting adjustments to retirement timelines and considering phased retirements.

"Maybe age 65, full retirement is no longer the plan that makes sense for you."

[04:34] Bo Hanson:
Bo highlights additional tools like Social Security, encouraging listeners to understand and utilize available benefits.

"If you've heard like, okay, Social Security, it's confusing and there's all these different options. We have a great resource you can check out."

Catch-Up Contributions and Government Incentives

[05:07] Brian Preston:
Brian introduces the concept of catch-up contributions, allowing those over 50 to contribute more to their retirement accounts.

"If you are 50 is the year you turn 50... you can make a bigger contribution."

[06:05] Bo Hanson:
Bo reiterates the availability of these catch-up contributions, emphasizing their role in enhancing retirement savings.

"From 60 to 63... They're going to give you even more opportunities to catch up."

Encouragement for Younger Listeners

[06:05] Bo Hanson:
Bo shifts focus to younger listeners, urging them not to become part of the 20% unprepared for retirement.

"If you're someone who is under 50, you're not here yet. Don't let yourself be in this statistic of those 1 in 5 people who have saved nothing because you still have time on your side."

[07:29] Bo Hanson:
Bo emphasizes the power of time in wealth accumulation, particularly highlighting the exponential growth potential starting from a young age.

"For a 20 year old, $1 has the opportunity to turn into $88."

Listener Questions and Expert Advice

The latter portion of the episode transitions into a live Q&A session, where listeners pose various financial questions to Brian, Bo, and their creative director Ribe. Key highlights include:

Car Buying Rule and Debt Management

[08:32] Ribe:
Listener Renata questions whether to pay off a high-interest car loan or continue investing.

[08:54] Bo Hanson:
Bo advises keeping the loan within the 2:38 rule and focusing on building wealth concurrently.

[10:36] Brian Preston:
Brian stresses the importance of addressing high-interest debt promptly to maximize investment growth potential.

Health Savings Accounts (HSA) and Emergency Funds

[16:19] Bo Hanson & [17:39] Brian Preston:
Discussion revolves around optimizing HSA funds without compromising emergency reserves, advising against liquidating HSA assets unnecessarily.

Retirement Accounts for the Self-Employed

[21:23] Bo Hanson & [21:50] Brian Preston:
Listeners with self-employed spouses, like hairstylists, are guided towards Solo 401(k)s and other retirement planning tools suitable for their unique situations.

Maximizing Employer Contributions and Investment Rates

[34:22] Brian Preston & [34:53] Bo Hanson:
Advice is provided on how to effectively count employer match and profit-sharing contributions towards overall investment goals, ensuring listeners do not overly rely on discretionary employer bonuses.

Inheritance and Investment Strategies

[34:55] Bo Hanson & [35:22] Brian Preston:
Leah F. inquires about managing a substantial inheritance within traditional Roth IRA and fixed income annuity IRA accounts. The hosts recommend consulting with independent financial advisors to navigate tax implications and optimize investment strategies.

Balancing Enjoyment and Long-Term Financial Goals

[43:43] Brian Preston & [44:04] Bo Hanson:
Listening to anxiety versus persistent saving, Darn it Dave seeks advice on balancing immediate desires with long-term financial stability. The hosts encourage defining personal financial milestones and ensuring that current spending aligns with ultimate retirement goals.

Closing Remarks and Additional Resources

[61:00] Bo Hanson & [62:20] Outro:
The episode concludes with reminders to utilize available resources on moneyguy.com, encouraging listeners to download financial planning tools and consider professional consultations for personalized advice.

Notable Quotes:

• Brian Preston [00:05]:
  "Unbelievable. This percent of my peers have absolutely nothing saved for retirement."

• Bo Hanson [00:10]:
  "Brent, I am so excited to talk about this because I think that we can change it."

• Brian Preston [06:05]:
  "You get to choose your hard. The earlier you start, the easier it is."

• Bo Hanson [34:55]:
  "All of it actually makes it easier for you to build wealth."

Key Takeaways:

1. Awareness of Retirement Savings Gap:
   A significant portion (20%) of Americans over 50 lack retirement savings, posing serious financial risks.

2. Utilization of Financial Tools:
   Tools like the Wealth Multiplier Calculator can empower individuals to understand and optimize their savings potential.

3. Flexibility in Retirement Planning:
   Adjusting retirement timelines and leveraging catch-up contributions can bridge the savings gap for those nearing retirement.

4. Importance for Younger Generations:
   Early and consistent saving, harnessing the power of compounding, is crucial to avoid future financial setbacks.

5. Engagement with Financial Advisors:
   Personalized advice from independent, fiduciary financial advisors can help navigate complex financial decisions, especially in scenarios involving debt, employer contributions, or inheritance.

6. Balancing Immediate Enjoyment with Long-Term Goals:
   Defining personal financial milestones ensures that current spending aligns with future financial independence and fulfillment.

For more detailed strategies, tools, and personalized advice, visit moneyguy.com/resources.