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Preparing to retire during economic uncertainty | To The Point Q & A

If you are preparing to retire, what should you be doing financially during this time of economic uncertainty? ABC10's Alex Bell spoke with a financial specialist.

SACRAMENTO, Calif. — There are fears about the possibility of a recession. So what does this mean for people preparing to retire? ABC10's To the Point host, Alex Bell, spoke with financial specialist Shayne Corriea.

Q&A with Shayne Corriea 

Alex Bell: I'm here with Shayne Corriea financial advisor. Shayne, thank you so much for being here. The first question I want to ask you is how can people really prepare? What are your clients coming to you for? What is keeping them up at night?

Shayne Corriea: Well, thanks for having me. I think the main thing about the recession is the unknown, the uncertainty of it. And whether or not they're going to have enough for retirement if the stock market remains so volatile. And I always say this is a long-term game. So we don't have a quick fix. We need to just sit and wait, and historically, we have seen us come out of recessions after a couple of years. So it's a waiting game. It's a long-term game and people just need to be patient. 

Alex Bell: And so statistically, we know that women just outlive men. So what should women be thinking about when it comes to retirement? Because if that's the case, how will you have enough money to live on and not outlive your retirement? 

Shayne Corriea: Right, that's a huge fear, is what if I outlive my retirement? There are tools out there. So it's planning, planning, planning. Right. Sitting down with somebody and really putting together a financial plan. We always have to be looking at or if you think about it, like a car, pop the hood, make sure that you're refilling your oil, you're putting water in, you're making sure that everything is connected and talking to each other. So you do that with your plan. You look at things like annuities that can help you so that you don't outlive your income. So really, the tool is planning. Talking to somebody and getting it all planned out.

Alex Bell: Preparing.

Shayne Corriea: Preparing. Exactly.

Alex Bell: And then something that a lot of people may not think about is taxes. What role do taxes play in planning for retirement? Is that something that people should really be keeping their eye on?

Shayne Corriea: Yeah, huge role. We always say, 'oh, well, I'm going to defer my taxes.' We've been told, put money in your 401K, your IRA, you can defer your taxes. That's awesome. But when you're getting ready to reach retirement and you are in retirement, now taxes are a huge bomb about to go off. Right. So between the ages of 59 and 72, that's when you should really be planning for retirement or taking those withdrawals out so that you can do things like converting them into a Roth. Paying taxes little by little every year instead of at age 72 when it's required. That's when the IRS says, Hey, it's time to pay me.

Alex Bell: And if people don't know where to start, I mean, they should start with a financial adviser, right? 

Shayne Corriea: Absolutely.

Alex Bell: Like you said, pop the hood. She went under there and get a check.

Shayne Corriea: A comprehensive planner that has an investment license, that has insurance licenses. Right. That does full-fledged planning with estate planning. You want somebody like that, that's going to be able to take you from budgeting. Right. Your relationship with money, the money mindset, and all of the right vehicles that you can be putting your money in so that you can mitigate taxes at the outset or at the end game.

Alex Bell

All right, Shayne, thank you so much. I appreciate you being here.

Shayne Corriea: Absolutely.

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