Cross Roads Podcast
Cross Roads Podcast
Money Moves: Smart Steps Toward Retirement
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Ready for a retirement reality check? Whether you're a twenty-something who thinks retirement is light-years away or approaching your golden years with anxiety, this conversation with retirement expert John Ezell delivers straight talk about securing your financial future.
Most of us get financial advice from well-meaning relatives who lack expertise—a recipe for disaster. Just ask our host, whose mother lost $90,000 of retirement savings overnight in 2008 because she had everything in one investment. This eye-opening episode unpacks the power of compound interest (start in your 20s and you're practically guaranteed to hit seven figures) and explains why diversification isn't just financial jargon—it's your safety net.
For younger listeners, we break down investment vehicles from employer-matched 401(k)s to Roth IRAs, HSAs, and more. For those in their 50s and 60s feeling behind, Ezell offers game-changing strategies: maximizing catch-up contributions, delaying Social Security until 70, downsizing strategically, and generating side income. The truth? It might be the fourth quarter, but you can still win the retirement game with the right moves.
What sets this episode apart is Ezell's holistic "three-legged stool" approach, integrating retirement planning with tax strategy and estate planning—because working with experts who understand only one area means you're getting just a third of the solution you need. From calculating "your number" to automation tips that make saving painless, we deliver actionable advice free of financial industry doublespeak.
Have questions about securing your future? Contact John at cprwm.com or send your queries to crossroadspodcast2023@gmail.com for our upcoming follow-up episode. Remember: the best time to start planning was yesterday. The second best time? Right now.
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Crossroads Podcast. We'll be right back For those who want to be in the know. Who's your daddy? Good morning Crossroads. On the show today we're going to discuss investing in your future whether you're 25 or 65. Now most people get their financial advice from their Uncle Harry, their cousin Tom or their Aunt Sally Not really good sources of financial knowledge, but we do it anyway. You know they're relatives.
Steven Killfoil:We love them and we trust them, but the truth of the matter is we're going to learn today where you should go. I'm your host, Steven Killfoil, and today we're exploring a topic that affects everyone's retirement. Whether you're just starting in your 20s or you're catching up in your 50s or 60s, planning for retirement can feel overwhelming. Luckily, we're joined today by senior managing director and retirement expert, John Ezell. John, thanks for coming on the show today.
John Ezell:Thanks, Steven. I'm excited to chat about this. You know it's never too early or too late to make smart money decisions.
Steven Killfoil:So, John. Let's start with the basics. Back in 2008, my mother, who was very good at savings, lost $90,000 of her retirement overnight simply because she had it all invested in one place. Why is it so important to start investing for retirement early? And why is it important to diversify?
John Ezell:That's a great question, Steve. The earlier you start, the more time your money has to grow through what's called compound interest. If you start in your 20s or 30s, even small contributions can turn into a large nest egg over time. But it's not just about time. It's about starting early, and it gives you the flexibility so that you can take fewer risks and still be able to reach your goals. And as far as diversify, I'm reminded that wise people normally divide their assets into sevenths and eighths. Now, that's not from my writings, but it is from some famous writings.
Steven Killfoil:Yes, I think the name was Solomon, right.
John Ezell:Yeah
Steven Killfoil:Okay, well, let's talk about actual investment options. What should people be considering?
John Ezell:Well, I'll give you a list of some common and accessible options. For example, 401ks, especially if you have an employer match, which is most companies, either traditional or Roth IRAs. You've got health savings accounts, which have the ability to be deducted from your W-2 income and allow you to pay for medical expenses and allow you to pay for medical expenses. Then there's index funds and ETFs, which are low cost and give you diversification, real estate with passive income and appreciation. Then there's dividend investments, which provide income and retirement, and then annuities for those who are looking for a specified payout over time. Now you might be wondering how we can do all of that, and on top of that, we have retirement classes that we have every month here in the Dallas-Fort Worth area. Well, we can do that because we have a dynamite team, several individuals and I'll name a couple of them here who really are committed, as we are as a whole, to this holistic planning approach to what we do in the financial services area.
John Ezell:So, whether it's Tyler, which is a right hand for me, or whether it's Trey, one of my partners, or whether it's Greg, who is our estate planning, attorney or whether it's Allie or Zandra, we have a whole group that allows us to be experts in individual areas and then, collectively, we can bring a lot of value to the equation.
Steven Killfoil:That's great. Hey, getting back to the list, on a 401k plan, let's say you got a guy in his 20s. Would you recommend that he does the maximum contribution into that 401k?
John Ezell:Absolutely no more right. He could do more, however, by doing what the maximum is, which for this year, if you have a catch-up provision in other words you're 50 or older you can do up to $23,500. That same catch-up provision again, that's for 50 and older you can do $7,500 in an individual retirement account in 401k. I feel like it's fine to be able to do that, but you're going to get to the maximum at some point and once you're at the maximum, then you should consider that diversification thought process and have those funds in a different tax-structured account.
Steven Killfoil:Right. My favorite, of course, is the Roth, because I'm in my 60s and I don't want to pay any taxes, or as little as I have to, when I do retire. So, yeah, I'm a big fan of the Roth, Absolutely. Now, health savings accounts I'm really not a big fan. We tried that direction, Uh, and it was very frustrating because the carrier kept telling me oh no, you can't spend it on that, we need you to reimburse the account back. And it was like, okay, the dentist told my wife and sold her this unit in their office a water pick because she was suffering from gingivitis. And the dentist said you need this. We got it on the HSA card and we had to pay the money back. After that, I just take the money out of her bonus and slap it into an envelope and when we need it we use it.
John Ezell:Well, I think this is a perfect example of how you have to do what works for your household. Absolutely you might hear or read certain things that are great ideas, but if it's not a great idea for you, maybe a second thought is a better way to go.
Steven Killfoil:True, true, yeah, absolutely. So here's the big question what's the best age to start?
John Ezell:Well, ideally in your 20s and 30s, but if you're listening and you're past that age, don't worry, we're going to talk about that next.
Steven Killfoil:Okay, John. So let's say somebody is in their 50s or 60s and they haven't saved much. Is it too late?
John Ezell:Not at all, and in fact it's more common than you might think. The key is to be strategic and focused, and here are some tips. So maximize catch-up contributions again for people who are aged 50 and older. That would be for 401ks and IRA accounts. Second thing would be to delay taking Social Security Now. Whether your full retirement age is 65, 66, 67, or 60, you're waiting until age 70,. The longer you wait, the more benefit you're going to get monthly from Social Security. The third thing downsize and reduce your expenses. Cutting housing costs or relocating can stretch your retirement dollars. Then you might look to be generating additional income. That could be from part-time work, which could include consulting or maybe turning a hobby into a side hustle business. Then, of course, stay invested, but reduce risk. Shift to more conservative investments over time that provide for a safety in principle along with your growth objectives.
Steven Killfoil:Yes, Now there are some situations I've actually met. I call them young ladies, but they're seniors, Some are older than I. They're in a bit of a pickle. Either they lost their husband or they divorced their husband. And because they were the old school where the first half of their marriage they didn't even work a job, and now they're stuck and they're having to work a job well into their late 60s, into the retirement years, and they feel trapped. So somebody that's in a predicament like that, you can even help them right.
John Ezell:We can. In fact, it's not game over for folks like that. It might be the third or fourth quarter. However, you can still win, like in any sporting event if you make the right plays. Absolutely.
Steven Killfoil:And my heart really goes out to those people that are in a bit of a pickle like that, because often it really wasn't totally their fault. It's just they didn't know, and this is another reason why I brought you on the show today, because so many people out there, even young guys and gals, they just don't know. They don't teach this in high school. They should oh my gosh. They don't teach this in high school. They should oh my gosh. They really should teach finances in high school, but they don't, unfortunately.
Steven Killfoil:So I mean parents if you're out there listening and you've got kiddos that are in high school, take them to one of John's classes, because I tell you what they're not going to learn it in high school classes, because I tell you what they're not going to learn it in high school. And if you're kind of so, and so you, you know a little bit about it but need to learn a little bit more, this is an opportunity for you to do just that. Money matters by Dave Ramsey. I agree with him on a lot of areas. He has it pretty well nailed, but the one thing that he's always adamant about is educate your kids.
Steven Killfoil:Teach them the importance of saving. You know it's a no-brainer really.
John Ezell:Well, effectively, it becomes part of your legacy. In other words, most of us want our children to do better than we did. But you know what? If they don't have the information, how are they going to do. It. All right, you only know what you know, absolutely. And yeah, it's just, it's really getting kind of crazy like that. Definitely no-transcript, but you discuss things like that in your classes. Right, a little more detailed into it.
John Ezell:We do Our focus. We have more than one program that we do, more than one program that we do. So, depending on the topic, there's a variation of programs to allow people to learn. We're currently involved in doing one for Social Security and Medicare in retirement, which has been really well received over the years, because Social Security is meant to supplement your retirement. It's not meant to be your retirement. Now you might view that otherwise on a personal note, but when I say that, I'm telling you what the Social Security Administration and the law that was enacted was about at the beginning. It was meant to be a supplement.
Steven Killfoil:Absolutely and unfortunately, because my mother lost that $90,000 back in 2008,. She actually wound up just living on her social security and my mom was a very good financial manager of her money. But even that was very challenging for her and it was something that she was definitely not ready for, but she managed. She did make it.
John Ezell:She's from that old school where you're going to have to figure it out one way or the other and make it happen.
Steven Killfoil:Absolutely yeah. And my father, he's set quite well, he's got railroad pension and I mean he's very comfortable and doing very good. So I'm happy I don't have to worry about pop too much Mom I had to worry about and they got divorced. You know, there was a good example of my mother. The first half of their marriage didn't work and the second half of of the marriage before the divorce she finally started getting out into the workforce and after the divorce she went back to college and got her nursing degree and you know so it happens, life happens and you just have to be prepared completely.
Steven Killfoil:Yeah Well, so let's wrap this up with some simple takeaways. What is the first step listeners should take today?
John Ezell:I would say, no matter what your age, whoever you are out there listening, start now, even if it's just a small amount. The second thing is, I would encourage you to know your number. How much will you need to retire? And if you don't know that and you come to one of our programs, we can help you in a subsequent lab session to learn what amount of money you'll need in retirement. You know, I'm reminded that the biggest fear that people have in retirement is running out of money, and the second biggest is likened to it, and that is they don't want to be a burden to their family, usually as a result of running out of money. So, my point being, those are some fears that people have, but rather than hide from them, why not take it on and find a solution, and we're happy to help with that. Third thing I'd say is automate your savings and just make it consistent. Consistency is one of the key cornerstones for any measure of success while we're breathing and on this planet, I would diversify. I wouldn't put all my eggs in one basket, as the saying goes.
John Ezell:We talked about that earlier and I'd meet with someone in the financial services arena who is really knowledgeable about how things come together. Just imagine a three-legged stool from the financial world. If your retirement person or investment person only knows about those things and they don't know about taxes, they don't know about estate planning then guess what? You're only getting one-third of the possible solution. Same thing is true for a CPA. They're not focused on retirement planning. They can give some points and tips. Same thing with the estate planning attorney. Their practice is based on estate planning law and not the others. So it's really important that you connect with a group that has the ability and the expertise to cover all of those areas on that three-legged stool those areas on that three-legged stool?
Steven Killfoil:Absolutely. And let's kind of go back here a little bit the know your number. When I was in my 20s I had no idea what that number was. I didn't know how to plan for retirement. I thought I was going to live forever, and I'm pretty sure that kind of mindset hasn't changed Right. So, with that being said, how would you advise someone in their 20s on the importance of starting now? How would you show them okay, if you do this, this is where you can be Sure.
John Ezell:Well, we have some software, We've done the math behind the scenes and we plug in the numbers based on what their budget allows for them to start saving, and we can use some very conservative rates of return and offer some projections. Now, the projections are not meant to be exact, they're just that projections. But what I find is that if people start in their 20s, they're easily going to have well over a million dollars, if they save any kind of money at all. And the reality is you're going to need that amount or more. So the idea is to get started. The other caveat I would say is the amount that you need. So, in other words, knowing your number. The amount that you need has a lot to do with what your expenses are, what your overhead is. So, while you're younger and even if you're not, continue to work on reducing your debt. This is not a new concept. But reduce your debt so that you have more resources to put into a format that can help you earn an income at a future date.
Steven Killfoil:Yep, that about says it all. One thing that I would like to encourage your group to do we have a high school that is being built right here in Crossroads and I would love to get with that principal and say, look, I know this guy and he can really show these kids important life lessons. How about bringing him in? Would you be on board for something like that?
John Ezell:I'd be open to that for sure. It's interesting you should say that because we just had a guest at one of our programs this week on Monday night, and I know him because through church but also he's a coach at one of the Frisco high schools for football and all of that. To say, a year or two ago they were doing some sort of a project at school where they were trying to help young people learn how to interview better or more properly for job opportunities and for whatever reason he decided to call me. So I was one of the people that got to sit in on that. We had a lot of fun, met a lot of great kids with great attitudes.
John Ezell:And yes, absolutely we're open to that because we believe that the I'm reminded of what a guy in the old days, cy Sims, used to say. He used to say an educated consumer is our best customer. Well, an educated individual in the world of financial resources whether that's knowledge you have or whether it's knowledge that you have through your contacts and resources and I'm not talking about our neighbors and our relatives, but people that are committed to this endeavor and have the experience under their belt, so that they're not learning on your money Absolutely.
Steven Killfoil:Well, John, thank you so much. This was packed with value. Where can our listeners find you?
John Ezell:We have a website Actually, let me give you the letters, it's cprwm. com. But I need to share also, and you and I have spoken with this offline, but we're part and under the umbrella of Elevate Life Wealth Management. So CPR Wealth is a subsidiary of that and our CPR approach, in other words, like resuscitation, like from a medical standpoint, we have a process that we go through just like your physician would, and we help you determine the health of your financial goals and whether or not you're going to be able to meet them. So that would be one spot, cprwm. com. And then I'm on LinkedIn as well. You can find me there. It's John Ezell, e-z-e-l-l, and you won't have any trouble finding that. And then, of course, you can reach out to my phone number 214-929-0961.
Steven Killfoil:Great, great Well. Thanks again, John, and to our listeners, whether you are 25 or 65, the best day to start planning for your retirement was yesterday. The second best day is today. So John's going to be back on the show and we'll do some more follow-up. I want you, if you have questions, to reach out to me at crossroadspodcast2023@ gmail. com. Crossroadspodcast2023@ gmail. com with questions, because I want to have some questions for John when he returns. So we'll see you next time on Cross Roads Podcast. Don't forget to subscribe and share this episode with somebody who needs a retirement reset. Until next week, with more amazing guests, we'll see you at the top.
Steven Killfoil:Crossroads Podcast. We'll be right back.
Steven Killfoil:But those who want to be in the know who's your daddy.
