"ROI Now Means Reliability of Income" — The Retirement Income Optimizers on Retirement's New Math

Full transcript preserved below for show-notes editor. Filler removed; substance and direct quotes intact.

Paul Tyler (00:28) Hi, this is Paul Tyler and welcome to another episode of the L&A Hub. I've got a trio of individuals today. Joe, I'll let you explain who they are — but I want to set the stage. Just a couple of weeks ago I was on the shores of the Mediterranean in Sicily. I got off the bus and there was this wonderful fruit cart, with a Sicilian man calling up to people in the homes. We bought the most ripe strawberries, and I looked at the man — he must have been 78, 79, could have been 81 or 82. I had to think about community, aging. We talk a lot about AI on this show. Maybe he'll be replaced by a robot. But there are big social changes coming, and I think a lot about what won't change in retirement planning. Joe, introduce yourself and the other folks.

Joe Jordan (01:59) My name's Joe Jordan and I'm going to talk about how the world is changing and what we can expect from it. With me are Ted Rosedale from RSSA — he'll talk about the first professional designation for Social Security, sponsored by the American College, where I happen to be on the board. And we have George Bain from Fairway Mortgage, on home equity in retirement, especially with an aging population. We packaged this because you'd have to go to multiple meetings to get all this content in one place.

I've been in the business for 50 years, so I've seen a lot of change. There are three drivers: regulation, technology, and demographics. Everyone is saying technology is changing the world — true. But one very subtle thing going on is demographics, and I think it's just as impactful as tech. Together they create the change. Birth rates have been declining for decades. Social Security started in the 30s with 44 workers per retiree. Now it's down to three, soon two, and soon it's going to turn negative. Paul — which country has the most people over 100?

Paul Tyler (04:13) Quick — I'd guess Japan. Or China. I don't know.

Joe Jordan (04:21) Everyone thinks Japan or China. It's the United States. Japan has more per capita, but the U.S. has the most total. The whole society — the whole planet — is aging. And people experience losses much more intensely than gains. As of now, Social Security benefits will have to be reduced 20% by 2032 or 2033. 39% of retired men and 44% of retired women get 50% or more of their income from Social Security. For every man over 100 in the U.S., there are five and a half women. 80% of men die married, 80% of women die single. Women have a big longevity issue. The number one retirement concern today is outliving one's money, followed by healthcare.

Paul Tyler (06:18) I remember when we were first working together — early 2000s — 2035 sounded like a long time away. It's upon us. I don't think today's Congress has the wherewithal to make the funding changes that would avoid that 20% cut. Am I wrong?

Joe Jordan (06:41) You're not wrong. It's very real and very upon us. I think it's the biggest domestic issue in the U.S. for the first half of the 21st century, and everyone is ignoring it. That's the idea behind the trio — we're the retirement income optimizers. The evolution of annuities and life insurance is part of the answer. Living benefits are real now. National Life just came out with a living benefit for Alzheimer's — accelerated death benefit to pay for care. F&G has a product where if you become sick or disabled, your $50,000 income doubles to $100,000.

Paul Tyler (08:40) Joe, I worked on that product. The income doubler. Not me personally — I helped explain it.

Joe Jordan (08:42) You're the genius. That's how the business has changed to facilitate the changing environment. You never saw anything like this 15, 20 years ago.

[Joe hands off to Ted Rosedale to introduce RSSA.]

Ted Rosedale (14:07) Social Security is probably the largest financial asset most Americans have, and probably the most least understood. Most people are making this decision — probably the first and most critical retirement decision they'll make — without guidance. We're in peak 65. 70 million-plus people are becoming eligible. One in three Americans will rely on Social Security for ~90% of their retirement income.

Where are advisors sending clients for help? They're sending them to the Social Security Administration — which is a government agency, not there to give advice. My organization — the National Association of Registered Social Security Analysts — is closing that gap. We educate professionals on the 2,700-plus complex rules so they can answer client questions. It's not just "I'm 62, do I take it now or wait until 70." It's age gaps, remarriage, dependent children, business owners, divorce. Software is a major component — the RSSA Roadmap pulls a real earnings record from My Social Security and runs full optimization. We're uncovering hundreds of thousands of dollars left on the table because people — and their advisors — don't know the rules.

Paul Tyler (18:36) If I were a carrier, can this be provided en masse to the people selling my product?

Ted Rosedale (18:47) Great question. I see Social Security as a financial wellness opportunity. It's a door-opening conversation that cements credibility, and it transitions naturally into Medicare, annuities, and the rest of retirement planning.

[Hand-off to George Bain.]

George Bain (21:09) Ted's program is so important we're considering having a bunch of our loan officers qualified as RSSA. Home equity exceeds total retirement savings for many retirees — 40 to 70% of net worth — and yet it's rarely incorporated into financial planning. 45% of retirees still have a mortgage. 70% don't expect to pay it off. We've created a Certified Home Equity Advisor program with NAFA — eight CE hours, two virtual sessions — for CFPs, RIAs, insurance and financial advisors. There is $14 trillion in home equity in households over 65. It's not if it gets tapped, it's when. Reverse mortgages let you convert home equity into non-taxable usable funds, with no required monthly payment, and the line of credit can't be frozen, reduced, or canceled due to market conditions. That's a structural piece of liquidity sequence-of-returns risk can't touch.

Paul Tyler (25:41) Do you think any of the recent legislation or executive action will make it more friendly for people to take loans on their homes in retirement?

George Bain (26:49) A lot of state legislation is concentrating on home equity. Tennessee just took the first step toward allowing proprietary products into the state — non-FHA but FHA-regulation-following. States are looking at reverse mortgages as a viable senior tool, and the public is starting to understand it better.

Paul Tyler (27:46) Joe, Elon Musk told me I don't need to save for retirement. The robots will take care of me.

Joe Jordan (27:49) Look, this is the biggest boon to our business. Young people are terrified of taking jobs because they think they'll be replaced. When people have to make financial decisions and the penalty for getting it wrong is high, they want to talk to somebody. Advisors who use AI will replace the ones who don't — they'll be that much more efficient. I'm not anti-AI. But the country's built on Judeo-Christian values, and what better thing than to help somebody set up their retirement, give them options, create a better life. This career is a conspiracy of good.

Paul Tyler (29:53) Ted — designations are going to matter more, not less, because anyone can spin up a credible-looking website with AI.

Ted Rosedale (30:17) I completely agree. AI advisors that understand how to use it properly will win. But the consumer that goes to a real person will choose someone with deep specialization. AI plus a designation is the powerful combination.

Paul Tyler (31:42) George — biggest steps to take the fear out of reverse mortgages?

George Bain (31:55) Always education. I thought reverse mortgages were bad because my barber told me they were — and that was confirmed by the guy who came over to fix my sink. And on the long-term care front: if 70% will need it, that means 30% of your clients will need it. Three out of every 10. "I help 70% of my clients" — that's not a great line to take to market. Personally, I would never refer anyone to a financial planner who doesn't understand home equity. Reverse mortgages, cash-out, HELOCs — if you don't have it in your quiver, you're not a holistic planner.

Paul Tyler (33:00) Yeah. Going to Mars shouldn't be a realistic financial plan.

Joe Jordan (34:15) Don't forget — life insurance and annuities with living benefits taking on multiple tasks is positive for the future and for this business.

Paul Tyler (34:34) How do people get more of you? More of the trio?

Joe Jordan (34:45) We're just starting out — josephjordan.com, and we may build out our own trio thing. The context matters: we're not talking enough about the aging population. The whole planet is dealing with this. It's a great opportunity for our business. It's not so cool for human beings, but human life is valuable. We just want to make people more comfortable in their longer and more expensive retirement, which people have never experienced before.

George Bain (36:16) FHA's site has information. fairwayreverse.com or gbain@fairwaymc.com.

Ted Rosedale (37:07) theamericancollege.edu/rssa or rssa.com — for advisors and consumers.

Paul Tyler (37:47) Great — Joe, thanks for arranging this. Hope everyone goes to Protectors Las Vegas to hear Joe, George, and Ted in person. Thanks for listening — join us next week for another episode of the L&A Hub.

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