Wealth from Wisdom

Your Best Bets For Generating Income In A Low Interest Rate World

July 19, 2019
Wealth from Wisdom
Your Best Bets For Generating Income In A Low Interest Rate World
Chapters
Wealth from Wisdom
Your Best Bets For Generating Income In A Low Interest Rate World
Jul 19, 2019
Carson Wealth
How will you successfully generate income in a low-interest rate world?
Show Notes Transcript

Record-low interest rates are punishing retirees. How will you successfully generate income in a low-interest rate world? Don’t miss this episode of Wealth From Wisdom. 



Speaker 1:
0:00
Okay, and here's the legal Mumbo jumbo. The opinions voiced in wealth from wisdom with Ron Carson are for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly. Investing involves risk including possible loss of principal. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CW, an LLC, an sec registered investment advisor.
Speaker 2:
0:30
The stock market hit another all time records $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 250 skyrocketing cost of healthcare and retirement could now run 350,000 words hard and save for retirement. That's great, but it's what you do with that money that really matters. Welcome to wealth from wisdom with Carson wealth. Carson wealth is a bear and hall of Fame Advisor and recognized by Forbes magazine as one of America's top wealth advisors and they're right here in Omaha. This is where you can count on straight forward and objective advice that can help you make the most out of every dollar you've saved for retirement. Welcome to wealth from wisdom with Carson wealth. Hey,
Speaker 3:
1:14
it's July, we're halfway through the year and the stock market continues to go up and up and you're really, you know, it's interesting. I think a lot of you aren't even paying attention anymore. Uh, earlier this week I was actually an an event ended amazed me that somebody said they look at their phone and they don't even look at if it's up or down. They look at if it's green or red, they use the colors on the phone. And by the way, not even, they're not even looking at it. Is it up 0.1%, 1% or 2%, but just as a greener red and they're determine if that's a good or bad day. Is that how you approach your portfolio in your financial situation? Is it purely just color coded and do the percentages actually matter to you? Hey, I'm Paul. Last, welcome to, well, from wisdom, my cohost today, welcome back as Jim Caldwell. Jim, glad to have you back on the show. Thanks Paul. Yeah, you're wearing a red tie today. So, uh, you're looking at green and red also there, right? Oh yeah, yeah. But isn't that amazing? I mean, people look at their phones. That's how so many people check on, uh, the market. Uh, but here's what I say is they look at their phone and they treat it like, hey, that 15 seconds of looking at it. Oh, that's good. I'm, I'm monitoring my situation. What do you think about that?
Speaker 2:
2:35
I think it's just the world of complacency right now. I mean, we had a bad fourth quarter and now we've had a great run here for the first, what, six, six and a half months in the year. And I think people, people are in a comfort zone, Paul, and they're just, they're just looking okay. Up or down. And we don't care how much, either way.
Speaker 3:
2:51
Yeah. Well, I mean, a lot of people, um, and actually I would pose this to you is the number one reason why people log into their bank accounts isn't for, you know, looking at every detail. It's just to make sure there's nothing abnormal. And I always say people are going to bank accounts to make sure someone didn't steal their money. And so it's a simple thing people do. But people also, when they look at their investments, all they look at is it up or down? And if you're a listener right now, if you log in to your financial account every single day, whether it's at a firm like Carson or somewhere else, here's my question. Why are you doing that? It's an interesting one, Jim. So there's a couple reasons. The personas and on today's show we're going to talk about some trends we're seeing in the world and how you as an investor can apply them in a way that can make you more efficient, but it not only more efficient but happier about your approach.
Speaker 3:
3:48
So do you log in everyday because it's a habit? So this is certainly something that we see, um, and I call it, we all have good habits and bad habits, right? Good habits are eating healthy exercise. You know, we can keep, you know, being philanthropic, uh, you know, whether you have a religious, all of those things that can be important to you. We all have bad habits. So of course the bad habits people talk about could be, you know, very direct like smoking or drinking or things like that. Or they can be bad habits of wasting time or getting focused on the wrong thing. Um, I've shared this on the show before, uh, that, you know, when I was at a conference or this year full of, um, just, you know, some wonderful people, one of the stats that was shared with me that if you don't have meaningful relationships, that includes social engagement, it's the equivalent of smoking 15 cigarettes a day, 15 gym.
Speaker 3:
4:49
And so what do I mean by that? Well, let's think about it. So meaningful relationships means communication. It doesn't mean liking a post on Facebook or liking a post on Instagram or things like that. Yes, you can look at it and monitor it and don't, don't take my brevity here to be, don't use social media. But what I'm trying to tell you is, is it's great. You can check out your grandkids and your kids and see what they're doing on social media. I think that's a wonderful thing. It's a way for you to keep in touch, especially if you're not within the same geographic area. But what this study showed us is that if you don't meaningfully engage with people, so talking to your kids, not just on, uh, looking at them on whatever social media outlet, Facebook, linkedin, Instagram, et Cetera, but have a facetime call with them. It's amazing the power of a live conversation and what that can do for you. So I bring that up, is this, we want you to make the right decisions. And as you look at the market and what's happening, don't base your entire thesis off of seconds of looking at your phone every single day. And we could you imagine, Jim, you, we've talked about, and you've got a background in coaching. I mean, you imagine if you built a game plan for a football game in 15 seconds, it's not gonna happen
Speaker 4:
6:11
and it's not going to work. I mean light that would be like watching the first quarter of a couple of games on your upcoming opponent and not watching the whole games to see what adjustments they might make or how they change players or whatever it may be. Um, to me it's just a shortcut shortcut.
Speaker 3:
6:28
So we're, we're halfway through the year, um, and we're trying to figure out, you know, where's the world going to go and what's going to be approached it here. So this week on wealth from wisdom, we're going to spend some time on that. And just a quick refresh. Uh, so, uh, we're fortunate, many of you know, uh, we're based, our corporate headquarters is here in Omaha, Nebraska. Uh, last week we actually had a client event, we call it our halftime report, uh, where we had a bunch of our clients and guests and friends of the firm all attend. And in there they, we, we talked about the market. So we had our senior investment strategist talking about what's happening, what's being pursued. And, you know, there's been a lot of positive things. Uh, and I would say it was interesting to me. Jim, I mean the s and P is up 20 plus percent. Uh, you have, I mean, of course information technology has been a winner. Energy hasn't been as solid. But one of the things I look at is holistically for our clients and investors is where's, where's the best direction for them to go? And a lot of times people ask me, hey, what do you think is going to be a really good stock? Or what do you think, um, you know, as small cap, we're going to go more than large cap here. You know what my answer is Jim?
Speaker 4:
7:40
Well, who has that crystal ball?
Speaker 3:
7:42
Yeah. Well and no, it doesn't matter. Why doesn't it matter? Simple. Because if you've got a financial plan in place and if you have the right structure set, I am not worried about the next three days, 30 days, three months. Why? Because if I put the right plan in place, because I could get and guess, right? I could say, you know what? Small caps are going to kick butt the next 90 days. Why? Because large caps are over valued. Um, there's great economic expansion going on. Economic expansion means small business owners are growing and developing like crazy small business owners are also then utilizing services. So the small caps are trying to become large caps. Sure. I could put in a strategic rationale based on what that is, but what if I'm wrong? What if there is deterioration in the economy and that doesn't happen then? Was it worthwhile making that bet? No, it's not. It's you. You're not going to go walk into a football game and by the way, many football coaches do this, right? You have your first 15 offensive place.
Speaker 4:
8:51
They script the first 12 to 15
Speaker 3:
8:54
okay, but what, you're out of the gate and you have two, three and outs. Do you, do you, do you make major adjustments?
Speaker 4:
9:01
Most of the time, most good coaches will stay with their script because the script is based on all the preparation they've had for that game and they want to see, let's say it's a, it's usually on the offensive side. They want to see how the defenses are going to line up against certain formations, certain personnel groups and those plays. Will dictate that so they can come back later in the game and make the appropriate calls based on the adjustments they expect.
Speaker 3:
9:23
Yeah. Okay. So now, now, now instead of the first two series of going three and out, of course we're talking about football here is now what if that happens a third time and a fourth time. So now I've ran my first 12 scripted plays and I've got nothing going. I'm just, I'm, I'm, I'm MTM v know I'm tired of my punter getting on the field
Speaker 4:
9:41
so that, you know, we talk all the time about, about trusted professionals. Okay. So as a coordinator, this is where you've got to trust your assistant coaches around you. You've got to seek out information from them, Paul and say, okay, Hey, here's where we are. What are you guys seeing? Give me some input. So you got sometimes go outside the box and get some help.
Speaker 3:
10:00
Yeah. Well and I think, but I think at the end of the day is you're not going to throw it out completely your, your game plan because you obviously did the preparation work. So let me give you a view, an example, and let's relate this back to the financial field here. All right, so it's July right now, and you are a conservative or moderate investor. You're not a growth based investor. So even though you see the market's up, let's just call it approximately 20% for the year in Europe, seven to 14 how are you feeling?
Speaker 4:
10:30
You feel you're going to feel one of two ways. You can feel really good, right? But then human nature says, well, maybe I should go after some more returns. Maybe I should become a little more aggressive with my portfolio, which is the biggest mistake people can do is to try to chase returns.
Speaker 3:
10:45
Yeah. So by the way, the stock market over time, if you take the full risk of the stock market is right at 8% annualized return. So if you are a conservative or moderate investor in Europe, 7% seven months through the year, shouldn't you be ecstatic? Because most conservative investors, their target return on an annualized basis is three to 5%. So I don't want you to, I'm gonna use the word jealous. Don't be jealous that somebody else is up 20% because you're absolutely positioned the way you're supposed to be right now. Then here, here's a phrase I give to a lot of people and a lot of people here, conservative, moderate and growth. Those are really three of the Oh to call them the major risk tiers that we see out there. So I often just again, these are blanket statements that a conservative investor is always, you know, are not always, is often trying to target three to 5% a moderate investors targeting five to seven and a growth based investor who's by the way, taking the most risk is targeting seven plus.
Speaker 3:
11:51
So here we are in 2019 we're kicking butt. We're, or are this just been a wonderful year? So don't chase because it's still been less than one year since we had the nasty downturn in the quarter four of 2018 so people are forgetting what can happen. So it's just as easily as that, hey, maybe you're only up 7% this year, but easily if the market dropped 20% and you switched, what type of mistake would you be making? And so that's one of the things we do is we help people look at how much risk they are or are not taking. We have a quantitative measurement. It's simple. If you want one of those free analysis where at (888) 419-8513 that's (888) 419-8513 hey, here are our wealth and wisdom. We're talking about some of the current market trends that can impact you, your family, and hopefully we don't want any you to make any further mistakes. We'll be back to UCF.
Speaker 2:
12:49
Do you own an annuity? Inflated fees and commissions could be costing you an arm and a leg. Get straightforward and objective advice from Carson wealth by calling (888) 419-8513 are you caring for an aging parent? Are you concerned about the skyrocketed cost of health care and longterm care or do you have questions about how to best manage an inheritance? We can help call cars and wealth today at (888) 419-8513 and now back to wealth from wisdom with Carson wealth.
Speaker 3:
13:19
Hey, welcome back to wealth from wisdom. I'm Paul [inaudible] joined today by Jim Caldwell. Jim, glad to have you back. I know you've been out on the road for a while visiting some clients and friends and most importantly family. Uh, so what do you seeing? I mean, I'm curious, you know, I think we're very lucky here at the Carson group. Uh, we're based in the, the middle of the country, which we will be all love and, or, or proud of our city. But we're a national firm. I mean, we're one of the largest, I think many people have consistently seen us ranked on barons on Forbes. We've been in inc 5,000. We've been on an investment news, best places to work. But one of the things we want to do is be able to take not only a national but a global look at what's happening, but we also want to be able to help share what we see around the world. I mean, I feel fortunate I get to travel to places to meet with our clients and friends and sheer our Carson story. Uh, Jim, I know you are just recently back in Florida. Here's just what are, what's the thoughts? What are you hearing from consumers on the coasts and what, what, what are they thinking and how are they approaching the market today?
Speaker 4:
14:20
So a lot of, a lot of those folks that I visited with over the last two weeks, the majority of them are retirees. So you know, they, they're out having fun and joy in life, doing their own thing. And normally when they're with me, we just spend time talking about what's going on in their life and you know, what's exciting and what their next trip is or whatever. And so they, because they've been with me for so long, Paul, they really rely on me to be that, that quarterback to be able to handle everything, to monitor everything. You know, we are fiduciary as we talk about, we're going to do what's best for them and they, they've really bought into that. Um, example would be, you know, we're upgrading our technology around here and, and talking to them about logging into the new system and all that.
Speaker 4:
15:02
The majority of them, if they do have internet, they say, listen, I never look at my accounts. So the old red and green, right, this is, this is to another level we depend on you to, to keep us informed as to what's going on. So that was Kinda neat. Whereas then I would meet with one or two of my business owners and they're a little more proactive, you know, they're in there looking all the time, like you said, they are, they are on top of what their accounts are doing. And, and if they see something that, that's not clear to them, they're going to reach out to me. Uh, and they're going to want answers, which we're able to give them. But, um, I think one other thing you've mentioned earlier was about returns. And I was sitting with a family that's retired and you talked about our different buckets, conservative, moderate and growth.
Speaker 4:
15:44
And they're pretty much kind of between conservative and moderate, even though we've upgraded their, their risk budget a little bit about six months ago. So they're right now 8.75% year to date. And I mean, I mean their goal was just to beat their RMD, which is at about four and a half, cause most of their money's in qualified or IRA money. So I mean we're killing it. And my conversation was, are you content with those returns? Are you content with that situation? Do you want to take on more risks? And they both shook their heads simultaneously. No, we want to sit right where we are. So there's kind of three different viewpoints.
Speaker 3:
16:23
Okay. So, so I'm gonna, I'm a look at this, a different angle. So what if they said, yeah, we want to take on more risk.
Speaker 4:
16:28
So well, what I would do is I would go back in and use our risk tolerance questionnaire. I would go back and, and ask those same questions of them that I've asked before, just to make sure they see in front of them exactly what those numbers look like and then compare it with what their current portfolio is doing and then make a decision that's in the best interest of them. I mean, it end of the day it's their money and I understand that, but it's my responsibility as a trusted professional to make sure we're going down the right road.
Speaker 3:
16:57
Yeah. So I mean, people can say, hey, we want to do this, but at the end of the day, uh, you, you as the consumer, you have to make the decision. All we can do is provide you the best guidance possible. But I really, here, here's a question I want you to ask yourself, are you a financial delegator or are you not? So what do you do for your taxes? Do you do it on your own or do you give it to professional legal documents? Do you use legal zoom or some other type of online service or do you outsource it? Professional financial, do you do it on your own or do you outsource it? Depart Professional. And then there's, the reason why I asked this is there's the very famous study it was called, um, you might've heard of a company called vanguard gym. Yeah, I've heard that very well.
Speaker 3:
17:44
I actually almost had Bogle on the show about a year ago, but if ours were, just didn't work out for some timing reasons. Uh, but when I was say is they did a study is called advisers Alpha. And what this study showed is that if you don't work with an advisor, or, excuse me, I'm gonna say to the other way, if you do work with a financial professional, they actually help you perform 2.92% better net of their fees per year. Imagine that almost 3%. And why? The biggest reason why is what the site was behavioral, meaning that financial professionals help financial delegators make decisions that otherwise they would have emotionally made that may have not been in their best interest or because they don't have enough time. I'm going to give you an example story, Jim, that this frustrates me. I'm going to just tell you that. Hey, so I, I had a phone call, I don't know this about two weeks ago.
Speaker 3:
18:42
Uh, this individual married low seventies, they've been doing a lot of the investing on their own and they're, they're running out of time. Okay. So you're not listening to the low sixties. They're running out of time, uh, in terms of they want to get ready for retirement a and they just want to make sure they have enough. And you know, they're, they're, they're doing well. They're, they're, they're close to being, you know, where they need to be. All right? So the, the person realizes they don't have enough time and they don't have enough focus. And so therefore, uh, should they delegate the, you know, outsourcing of their financial plan and their investment management to a firm like Carson. So, uh, earlier this week I get an email notification from them saying, you know what? We've decided that we're just going to keep doing this on our own.
Speaker 3:
19:29
And I responded back and I shared the following. I'm shocked because you reached out to us originally saying you didn't have enough time to do this. I shared this study that you perform 2.92% less per year without having a trust professional. But third, here's the most important. This is what I want to drive home for listeners. How many of you have a spouse that controls the majority of the conversations related to your personal situation? Now I know you're listening. I'm going to say most of you, there's, there's usually someone who is driving that car for you. But what if the person who was driving the car wasn't there and you had all sudden drive your financial situation? Would you know what to do? But more importantly, if you're the person who's driving your financial car right now for your family and you weren't there and you're sitting up above and you're looking down on your spouse and they're now driving their financial situation, do they know where to go?
Speaker 3:
20:27
Do they know where the map is of all of your assets? Do they know how it's being managed? They know how to get income. They have simple things. Is there enough money coming into your checking account to pay out all of the things is do you or do you move the money over manually? Or what does that look like? I mean, and I can't imagine that if something happened to me and I was looking down below and my family didn't even know how to approach it, yeah, maybe they know, oh, well you've got accounts at TD Ameritrade or Fred Ali. Sure. Maybe they know that they have no idea how to log in. They don't have know how to look it. They don't even know who to call. They may not even know your social security number off the top of their head and now you created all those situations.
Speaker 3:
21:07
So one of the biggest benefits of being a financial delegator is not only the professional advice and the money you're gonna save via tax planning and those types of things. But when I ask people that met, what makes them happy, what do you think the number one response always is Jim, their family. Their family. Yes. Their spouse, their kids, their grandkids, their parents, their grandparents. Whatever direction you're going there is their family. Always. Obviously their hobbies are important to them. Many of them like their careers. Why would you leave your, your, your family in a situation? Because you want to just be the driver of everything and not at bare minimum, at least partner with a professional. It doesn't mean you have to turn everything over to them, but at least somebody is there. Why? Why do we're talking football earlier. So why do you have a backup quarterback?
Speaker 3:
22:00
Jim case, your number one guy goes down in the middle of the game. Yeah. So if you're the number one guy, but if you don't have a backup quarterback, how's the rest of the game going to go for you? Are you going to put alignment in as a quarterback? Well, yeah, you got to pick. You got a big problem because now, now you have someone with no experience trying to run your office. So not only do you have no experience, but now you've got a dumbed down your playlist, which is going to make it easy for the defense to keep, but they don't even know the, they know. They know they're blocking schemes, right? But they don't know all the rest of it. Do they turn in the left? Do they turn to the right? Do they, you know, here's all the hand off. All the timing is off completely.
Speaker 3:
22:34
So now think about this, that if you're the one driving the car in your financial situation and your spouse now has to take control, or they're the quarterback now, they have no idea where things are. What type of scenario are you putting yourself in? In? What we see is imagine that this was your business. What if your business, what if you didn't have a backup plan? So, uh, your CFO is no longer available. Who's going gonna pay the bills? Who's gonna approach it? Who's going to help you? Your top sales person goes out, what are you gonna do? How are you gonna approach it? Your top client relationship person is gone. Who's the backup? And we all know if you don't have clients, you don't have a business. So one of the things that I challenge all of our listeners to really understand and think through and one of the biggest mistakes we see is you let your own ego win the day.
Speaker 3:
23:26
And there's a phrase, and I love it as a gentleman named Colonel Arthur Athens, and uh, he's, he's a, I've had the privilege of seeing speaks several times. I spoke, uh, to our coaching company before. He's actually been here in Omaha and spoke to our organization. But he talks about being selfless versus selfish and how selflessness is one of the best things that you can do. And when I talk about being a financial delegator, really you're being selfish because you're doing what's best for you and your family. You think you're being selfless by being under control, but really you're not because you're actually by, by letting your ego in the day, you're actually doing most likely what is most harmful to your family. And I want people to think about that, Jim, and I use the sports analogy because we all know in sports teams, when you have one big ego, what happens to the rest of the team?
Speaker 3:
24:24
They're not gonna perform up to their capabilities yet or they give up paying attention. So that's often what happens with spouses or partners is they're not paying attention anymore because the other spouse, I got a handle, I got a handled, don't worry about it, don't worry about it, don't worry about it. And then there's a problem and then they don't know what to do. So if you want help understanding how that works, you can call us if you have questions about this. It's (888) 419-8513 if do you have a portal that you use that you can at least store this information? We have several suggestions for you. (888) 419-8513 at least at minimum. Get a portal out there where you can access it for you, your family, that'll help you. Hey, I'm Paul Asher. Listen for a wealth of wisdom and we're going to be back in a moment talking about more ways to help protect you
Speaker 2:
25:13
and your family. Any major decision in life is worth getting a second opinion and financial planning is no exception. Let's talk about how you could make your money go further in retirement than you ever thought possible. Call Carson wealth. Just schedule your free initial analysis now at (888) 419-8513 do you have a lot of assets but are short on cash? Learn how you can leverage your assets to free up cash with Carson wealth by calling eight, eight, eight four 1,985, 13 and now back to wealth from wisdom with Carson wealth.
Speaker 3:
25:47
Hey, welcome back to wealth feminism. Paul lass joined by Jim Caldwell here today. We've been talking about being a financial delegator, really figuring out what's important and we've talked about where halfway through the year, uh, we're in, what's, I believe it's called the dog days of summer, days of summer. I don't know where you are in the country. We're here in the Midwest. We're based in Atlanta, Nebraska and it's just plain hot. It is what we're talking about. Uh, I feel lucky Jim. I mean it's hot, but it's, it's the reality. I mean, hey, we all choose to live where we live or most of us do. Uh, so we've been spending some time this week out at the Pinnacle Bank Championship. It's part of, uh, we used to be called the web.com tour. It's now part of what's called the corn fairy tour. Uh, and it's been just so neat to get to see so many clients and friends and new friends.
Speaker 3:
26:35
And I love to see, um, it tells me a lot about the community you live in, how people bond together. So I mean, it's been just a wonderful week to have all of these people in town. It's amazing watching all of these professionals, if you're not familiar with this, I mean this is the next step for the, if these people want to make the PGA tour and if they want to be the next Brooks cap goes or tiger woods or Phil Mickelson's, they really got to graduate from here and they've got to play well. Uh, and Omaha's, you know, on the second half of the stretch run here, helping them all get that direction. But what a great thing for the city. Uh, what a lot of fun for the people that attend, you know, minus the heat. But Hey, it's jai so we can't complain about that.
Speaker 3:
27:18
Drink a lot of water, lots of Agua going on there. Uh, so we've been fun. If you, you're looking for our square out there as well. Two Fun things going on out there. Of course you can visit us on the 17th hole. Uh, but we also, if you've noticed, uh, there's a boat going on out there this week called the Carson cruiser, a different way to enjoy the golf tournament. And we want people to think differently. That's what we do here at Carson. And you know, I can't talk about them all on the radio, but if you're a business owner, you're a high net worth investor. We have very unique ways, uh, to help you make investments, um, that are by the way, are priced in a way that's beneficial for you. It's not somebody trying to make a buck off of you. Reminder, most of you get tired of me saying this, but we are a fiduciary and I love it.
Speaker 3:
28:02
Jim Actually, the other day, uh, I got an email from a potential client, um, you know, hit a, went to our website. So they went to Carson wealth.com and asked for more information. And their first question to me was the following, are you a fiduciary? And Jim, I loved it. I was grinning because I want the consumers to understand what's going on. Um, they're, you know, there's another trend that's happening right now. Many of you know that I'm a CFP, which stands for a certified financial planner. Again, it's one of those top 10 questions I want you to ask your firm that you work with. Do they have people there that can help? Uh, but we're not predicament right now. Uh, so those of us are CFPs. We have a code of ethics. Uh, we also have what's called the CFP board that sets out some of the mandates and they're struggling right now.
Speaker 3:
28:50
They want to hold a higher standard than the SEC has out there. Uh, but if they do that, there are firms like Edward Jones and other, that's probably the most public one they've talked about, that if they hold 'em out to this other higher standard, they're talking thousands of their advisors may no longer qualify because of wirehouse firms don't necessarily want these higher standards. So whether it's Edward Jones, Merrill Lynch, Wells Fargo, you know, you just keep naming name on Wall Street firm or a large financial brokerage firm and they don't want these fiduciary protocols. Why? Because they're in the for profit business for themselves. There's a huge difference if you're in the for profit business but with an ethical and legal fiduciary responsibility to your clients. And so we're going to keep all of you updated on this. My goal and objective is is I know we're not going to change the world in a day, but over our lifetimes, my belief is I want to educate consumers where they understand this.
Speaker 3:
29:56
And I will tell you there are so many people moving our direction because you're getting smarter, you're beginning to learn these things. You're beginning to understand why it makes a difference. So Jim Caldwell, you're one of her advisors, you know, do you get paid differently if you recommend a different investment strategy versus another? No, not here. I made know we get paid for advice. We are not commissioned salespeople now and so why would you want to do that? I mean, Jim, I just saw something earlier this week and it just frustrates me all get out. So they're working with a, um, another firm, these people. And so they wanted us to give them a second opinion. They've got several million dollars saved. Uh, they really, you know, they make more money than they spend. Uh, they're living a good life. Their number one goal is they want their kids and grandkids to get their money and get it, enjoy their money when they're not here.
Speaker 3:
30:54
Sounds pretty simple. It sounds pretty appropriate. Yet someone locally here in Omaha, uh, works for an insurance company. You can figure out or insert your own name there. They're trying to get them to buy this gigantic life insurance policy. Why I don't get it. They don't need it. They don't have an estate tax issue. Um, why they try to do it? Because that insurance person sitting across the table from them is going to make a hefty commission. So how is that in their best interest? And I will tell you, and this is why I keep beating on this drum, and I want you as listeners to understand this, is you've got to ask the right questions and you've got to have the right financial delegators sitting on your side of the table. That insurance person sitting across from you is, by the way, I really do like insurance.
Speaker 3:
31:41
I think it is a great technique as part of an overall financial plan. But if they're not doing your financial plan for you and they're just selling you insurance, unless it's really simple basic term insurance and, but if it's, if it's a universal life policy or a guaranteed universal life policy or whole life policy, you better be going and talking to fiduciary to make sure it's absolutely in your best interest. And if not, and so there's a lot of different types of insurance out there. And by the way, these people are professionals. So they're going to be good. They're going to have documents they put in front of you that tell you why you need so much insurance. Why? Because they're in sales. They're there in position to show you why you need it. But it also, when you, when you ask, ask them how much money are they making, what is their commission on this and is it truly in their ethical best interest?
Speaker 3:
32:40
And then say, hey, all right, if it truly is, and I challenge you to do this, if you're currently talking to an insurance professional, and that's all they do. Or even maybe they do wealth management too, but they're not a fiduciary. Again, ask them if they're a fiduciary. And by the way, make them put it in writing to you because I don't want them lying to you to have face to face, right Jim, we can't have that happen, but ask them, uh, okay. If it's so good, if it's all right by you, I'd love to bring it to a fiduciary. So bring it to me at Carson and I'm at (888) 419-8513. If they are so confident, best for you, they will have no problem giving it to a fiduciary because we would agree with him.
Speaker 4:
33:20
You know, you go back to your golf analogy a minute and it talks about, you know, when we talk about insurance here, it's all part of our wealth plan that we do for our families. So it's, it's a part of the whole puzzle, right? It's kind of similar to where you talk about these golfers out here. They just don't show up and tee it up on the first hall. Okay. They just don't hit driver to hit driver. Right. I've actually got a good friend, his son Bo Hoag is going to be his playing in this tournament and he actually shows me how he charts every course that he plays. He does it on a computer and he knows how much yardage there is from t box to that first trap on the left or to the water on the right. And so he can pick his clubs and put together a game plan. So it's not always just tee it up and hit it as hard as you want to.
Speaker 3:
34:05
No, it's not at all. And uh, nor is it. Hey, uh, maximizing the amount of life insurance possible to give to your kids isn't always the best idea for you either because what you may be sacrificing is short term or medium term or potentially longterm thing. So that's one of the biggest, I'm going to call it risks that that's out there. And by the way, people are smart, they know how to ethically persuade you. They go through sales training and they go through, I'm looking at documents, they go through positioning, they go through all of this practice and training. Why to make a profit to get them paid more. And I'm telling you folks, I mean I'm 20 plus years in this business, um, and I think I've seen it all. Then I'll see something else that just, it wows me that uh, people really don't understand what's going on.
Speaker 3:
34:53
And by the way, you may like the person. Here's another one I hear, oh I'm just going to buy the life insurance cause I just really liked the person. How does that make sense? It doesn't, or you know what? I played golf with them at my club. So you know, we're a get along. I'm tired of them asking someone to go have them buy it. Come on. Are you serious? That makes no sense. If they were really a friend, they wouldn't do that to you and I, and I'm very sincere about that. They've been getting their hooks into you for a long period of time. So if you need help analyzing your insurance or a situation somebody just presented to you, we're happy to look at it for you. (888) 419-8513 that's (888) 419-8513 or if you prefer to submit your question online, you can go to Carson wealth.com and submit it that way. Or you can send us an email@infoatcarsonwealth.com hey, you're listening to well from wisdom.
Speaker 2:
35:50
Have you ever wondered how do other people get away with paying fewer taxes than everyone else? Learn how you could save thousands of dollars in taxes by calling Carson wealth at (888) 419-8513 social security risks, taxes, and healthcare. This is where you can count on straightforward and objective advice on the biggest challenges with investing for retirement. And now back to wealth from wisdom with Carson wealth.
Speaker 3:
36:18
Hey, welcome back to wealth from wisdom. I'm Paul Wes joined by Jim Caldwell, a gym. And I think we've heard enough about being a fiduciary and watching out for your life insurance and being careful and don't just want people to understand is we just want to, you'd help avoid risks. We want to help you avoiding falling down, making mistakes, doing something silly that you're just not even aware of. Uh, and certainly we don't want it to happen when it's too late. Uh, so we want you to be conscious about that. But one of the things is we want you to take action. I mean, that's the best thing. And I talk about this all the time. You know, when you, when you keep saying you're going to do something, you don't do it, what happens? Never gets done. Just kick the can down the street. But when there's something that you've been talking about for a little while or a long while and you get it done, how do you feel emotionally?
Speaker 3:
37:08
Real good. You feel so good. Like, or maybe even on the other side of it, which is also a good feeling, a sense of really, really, it's done. It's over. It's handled. Um, so I mean, what do you see, I mean, you, have you been seeing people are, they've been kicking the can down the road or how are they approaching this and how do you best educate them? Jim, I mean, what are you doing? So here, let's, let's get in the head of a financial advisor. So I'm going to pick on you here, not pick on you, but I'll ask you a few questions. I'll never, never do that. A all in good fun. But I would say gym. So somebody comes in and they're meeting with you for the first time. Uh, what are you covering? What are you going over? What are you explaining to them?
Speaker 4:
37:54
So when we meet for the first time, it's a listening session. I, I take many pages of notes. I let them talk, I let them explain to me what's going on. And we really, instead of being tactical, we work real hard to find that emotional connection, Paul, to find out what, what really is important to them and dig really deep into that. And I think that's the most important area that you can focus on. It's not just slapping something up on the screen and focus and totally on numbers. I mean, I can't tell you how many times families have brought in stacks of statements and they can't wait to just hand them to me and say, Hey, what do you think? Well that does work. We normally just it over and just totally don't look at it because we've got to find out more about them.
Speaker 4:
38:39
And I mean, I got a great example. You know, we had the college world series here about a month or so ago here in Omaha and I love baseball. You know that. And then I won't tell you I went to 10 out of 14 games, but any out Mr CWS now, but here, here's a story. I mean, I had a, had a guy in town, he's been a friend of mine forever and we coached together years ago and you know, he, he's, he and his wife were getting ready to retire and this is the biggest thing I'm seeing is can we retire and if, if we retire, what's that look like? So we got talking a little bit and he says, you know, I've got x amount of money and you know, I've got it with some guy and we're really not comfortable, can we retire? And I said, well, there's ways to determine that.
Speaker 4:
39:22
And I kind of gave him the quick, you know, 30,000 foot view of, of what we do and how we approach that. And I said to him, I said, well, who are you with? He had to actually look on his phone, Paul and look, the guy's name up. And I'm thinking he has significant money that he ought to have on the tip of his tongue, who his wealth advisor is. So it just drives me crazy. I bought, I mean I was mad at myself that I hadn't talked to him years earlier about his situation, but on the other hand, I kind of let it go. So we went to a couple games and then we got to the last day and one of his buddies came up cause he was on national conference and he said, you've got to help him. He really needs your help because he's scared.
Speaker 4:
40:02
So now I really dialed in on him and I said, hey, you know, I understand your situation. I put some more thought to it. Here's how our process works. Here's what we could do for you. What do you think of this? And he looks at me and he says, can I just give you my statements and we move everything over tomorrow? And I said, no, no, no. Hold on. It doesn't quite work that way. We will go through our process. So we're working through our process now. We've shown him some things he and his wife to consider. Um, you know, they've gotten plenty of information from us, Paul, to make the right decisions. And I feel like we're going to be, he'll be acting on it very soon and we'll be able to help this family out so that they can retire and move on and do the things you need to do. Yeah.
Speaker 3:
40:46
And what happened there, Jim is, is you educated, but they made the decision. They, they, so, and that's the job is, is hey, you all have your, your control of your student will. And Jim, this just drives me crazy. So how do you, so for those of you listening in, and if you have a financial planner or financial advisor, how do you introduce them? Is it, hey, this is my mayor, all person, this is my Goldman person? Or do you say this is Paul. I work with Jim. I work with Michelle. I work with Sarah. Huge difference in, in Jim. I can tell you right away because I see this all the time. I'll just give you an example. I have a family, they're a business owner. Um, they've got referred into us recently because they're going through what I call is a currency conversion.
Speaker 3:
41:34
And what I mean by that is no, not going from pesos to dollars or vice versa. What I mean is, is they own their business and they're going to be liquidating their business in terms of selling it. Someone's buying it from them so they're converting their personal concern currency or their personal net worth from their business to liquidity. So, and asking them, Hey, do they work with other professionals? Here's what they said to me. Oh, I've got an attorney and I've got my Goldman guy. It wasn't, Hey, I've got an attorney and I've got Jim, or I've got Paul, and it was this person. So it amazes to me, are you introducing your financial advisor or planner to other people based on the name of their firm or the name of the person? Wow. If you're introducing your person by the name of the firm, you know what that tells me?
Speaker 3:
42:24
You're either buying the firm or you're not really attached to the person, but if you introduce them, this is Jim. This is Paul. They work at Carson. Whole different story. I work with Carson and I work with Paul. It's different than trying to, and by the way, Jim, I go to Florida a couple times a year as well. It happens even more there where people are like, oh, I'm with UBS, I'm with Merrill, I'm with this. They don't answer the question, which is all of us, if you worked with them, why wouldn't you just work with their national headquarters? You ultimately work with a lead relationship manager who gets to know you, gets to know your family. And so I want people around me that I can know and trust and be assisting in all those things. Let's talk about trust since we're talking about golf too, cause I love golf for all you golfers out there, dude, do you normally play with just your three buddies or do you include caddies in the group?
Speaker 3:
43:22
And to me, I can draw an analogy here of when you play with a caddy, I know one thing for sure. I play a lot better golf. I mean you can't play much worse, that's for sure. But that's for another conversation. But when you have a trusted advisor that catty, that's why those pros are so good. They're not making all these decisions on their own. They may, may be club selection, but when you're on the Greens, especially as you know, Paul and you're still trying to line up that Putin and that putt means something you got, add the confidence on that, that caddy, that partner, that trusted advisor to help you make that successful for you. I mean, obviously the pinnacle bank championships is going on this weekend. Uh, but I, I would give you the analogy that I would say a catty, one of the best things that they do in golf is they tell you if you're going to make a mistake, where to make the mistake, where to avoid.
Speaker 3:
44:12
So with they're trying to do is, and I, I look at it investing in tax planning and estate planning too, is, you know, yeah, we're trying to design the best plan possible, but we're also trying to do is avoid the biggest area of mistakes. So a caddy could tell you if you're a golf analogy, keep going. That is it better to be short or is it better to be long? Is it better to be left or is it better to be right? So instinctively they're helping teach you how to do that. We're seeing as investing. Is it better to be more stocks or is it better to be more bonds? Is it better to be short term or is it better to be longterm? And you have to be able to look at that combination of things together. And so risk tolerance for people is, it's just, it's just not an investment guide or asset allocation. It continuously changes for you. If you want to talk about it, we certainly can. (888) 419-8513 hey, better yet, why don't you just call and we'll walk through it. At minimum, you're going to confirm you're on the Mat, right? Pathway at a maximum. You're going to get a new chart that'll help make you more successful in the future. Hey, I'm Paul [inaudible] from wisdom will talk to you again soon.
Speaker 5:
45:21
Risks, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Okay.
Speaker 1:
45:34
And here's the legal Mumbo jumbo. The opinions voiced in wealth from wisdom with Ron Carson for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consulted, qualified professional. All indices are unmanaged and may not be invested into directly. Investing involves risk, including possible loss of principal. No strategy. Assure success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CW m L L C an SEC registered investment advisor.
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