Wealth from Wisdom

The Magic Retirement Number

January 19, 2019
Wealth from Wisdom
The Magic Retirement Number
Chapters
Wealth from Wisdom
The Magic Retirement Number
Jan 19, 2019
Carson Wealth
Show Notes Transcript

What is the magic number that will let you retire? What if we told you that number wasn’t so magical after all? On this week’s episode, Paul and Erin discuss what you could be missing for your retirement, and how to fix it before its too late.



Speaker 1:
0:07
Okay, and here's the legal Mumbo jumbo, the opinions voiced and well from wisdom with Rod Carson over 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 principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an SCC registered investment advisor.
Speaker 2:
0:37
This dud market hit another all time records as much as $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 250 the skyrocketing cost of healthcare and retirement could now run 350,000 blending for retirement today is a whole new ball game. It's loaded with challenges, obstacles, and trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson, and straightforward and objective advice and how you could make your money go further in retirement. And now here's your host Ron Carson.
Speaker 3:
1:15
Honey, do you think you're going to need to retire? Everybody's got this magic number, right? Well, what if I told you everything you thought was so magic about it that you actually had it all wrong? What if I told you your magic number? Does it mean anything? Hey, this is well for wisdom on Paul West and I have a pretty sobering message for all of you today and that is what does it really take for you to retire successfully and help me talk about this topic. I'd love to welcome Erin would do the show. Erin, good to have you on again. Thanks Paul for having me. Yeah, we're going to talk about what really happens because I think what happens is the everyone gets this number bias in their head, right? They need to get to either a specific number, I need to get to 1 million, 2 million, 20 million, whatever your number is.
Speaker 3:
2:03
And then once they get there, they think they can take as much risk as possible but never go down again. It's kind of fascinating, isn't it? This number really is just this magical number that appeared from somewhere in somebody's feelings more than anything. Yeah. So I mean it's, you know, I think about growing up. Yeah. If you go to a park now, you go to these things, you know, remember teeter totters, right? Do you ever get on a teeter totter? Oh yeah. Yeah. Like last weekend taking the kids. There are no, no, they don't really have many of those in parks anymore. They don't, well, they were wooden, so it break or splinter and those were all sorts of different problems. Just launch a few kids off. You'd have to have balance though to make all those things work and you would never see a teeter totter sitting perfectly on its own by itself, right?
Speaker 3:
2:44
Yep. There that perfect harmony didn't exist if it was a proper one because you had to balance it to keep it that way. And so I look at similarly like, cause you're looking at your retirement, you've got to have this right balance between your taxable accounts, your tax deferred accounts. But also the number's going to change and it's going to fluctuate, is going to go up and it's going to go down. But how do you feel most of the time and is it really balanced? And so just picking out some form of random number is not going to insure you retire successfully. It's really about what you do with your money. I mean that's what really matters and this is ultimately what's going to determine your sales success. So as we think about today's show, we're going to talk to you about really little known strategies that can help save you money in taxes or thinking about simple ways you can generate income.
Speaker 3:
3:27
Income's king, right? I love when money comes into account. I love, you know, we talk about paycheck hits the mailbox, the feels darn good when that happens every month. And plus how are you going to manage risk? And so I thought we'd share some articles and stories here to get started, um, and help everyone think through different ways to approach it. So let's first start talking about what's going on from a tax perspective. So now we're in really your two of the tax cut and many of you are going to begin filing your taxes. Your 10 90 nines are coming out. And here's what's I'm predicting going to happen, Aaron, and I'm sure you won't be surprised by this. People are going to get those. You're going to go out and if you're a do it yourself, you're going to plug all your numbers and the turbo tax or intuit or whatever you use and then it's going to spit out the number and you're going to like it.
Speaker 3:
4:13
If you're getting money back and you're not gonna like it if you've got to pay money, nobody likes paying, right? Nobody likes pain even though they owe it, they don't like pain. And then you're going to say, clap your hands, be done with it. Wash 'em and they're not worried about it again until February of 2020. By the way. I just said 2020 it doesn't that sound weird? Yeah. Yeah. Can you believe it's almost here? Well, and you think like 2020, we've all heard of the news. Welcome to 2020. And so you hear it and it doesn't seem like it's a year. It just seems like something you've heard hands down. And I think alley, I mean, think about the books were written. I'm sure that TV show 2020, we'll love to dim enough plays on that here this next year that you don't let this happen to you.
Speaker 3:
4:57
It make a commitment that have a tax professional look at this even if it's one time. But here's what I can tell you is they can uncover value almost every single time that you're leaving on the table. And my analogy here for you would be is, um, could you imagine that you have money sitting there on the table and it's, you're going to go out to dinner and you want to pay cash for some reason. You don't want to use a card or whatever. And you just said, you know, hey, I need $100 for tonight, so you're going to take $100 off the table. But what if your table had 120 on it? But you didn't even know it because you didn't see it. And that's the same way with your taxes. You're missing out on this lost money, whether it's $20, 200 or 20,000. Everybody's situation is unique. And so that's why, and I think Aaron, would you and your team do is you help look at the tax planning situation for people versus the tax preparation. Exactly. So we have three PS, three CPAS and the building, as you know, uh, and that's what they're at all the time, is
Speaker 4:
5:58
what is the current tax law today and how can we use it to the client's advantage so that our clients get more money coming back to them this year. But in the future as well. Uh, you know, a really good example of this as a, a few years ago there was a bunch of credits for energy efficient. So how many people replaced their heater or the air conditioning and didn't know that there was credits available and credits are dollar for dollar. And so they just missed out on them if they weren't worth working with a CPA who knew that that was available.
Speaker 3:
6:28
Yeah. By the way, people love as we know and we talked about to pay less in taxes. Don't be stupid about that. There's significant and challenging consequences for you if you make mistakes, not only financially but also criminally. So, um, no one wants to spend time in jail and it's certainly not our producer, Jamie, because she had been there before. But that's a whole different story that we don't need to go over today. So yeah, Jamie does a great job. We really appreciate how she helps us here. I want to read an article to you all and this is just, I think it's right. So I think it was the New York Post article that was posted earlier this week. Sorry, didn't mean to say post twice. They're just life happens here and so it's called America's richest are losing confidence in the stock market. So I would say every level of wealth is probably, but even now more than ever is people like to follow.
Speaker 3:
7:25
I call it smart money. So where does smart money go? Well, smart money doesn't always do the right things either. So there is just fascinating to me that people with more than 500,000 and million of dollars in their account, how many of them in the end of December they're saying went to cds or cash or things like that. And now the first, what, 10 12 today's trading days of the year we're up. So they just missed out on opportunities all because of fear or what I call uncertainty that goes with that. And I think it's just a fascinating article to read that that many people, um, are doing that. But if somebody, what would they say though? This is, most of them are concerned about asset protection and so they have to be defensive oriented. And that's why we've coined the phrase irreplaceable capital. Are you smart about your area, place, book capital? Are you protecting it in a smart way? And for many families, if you're not, then you have that anxiety and fear that's building up in the market today. Yep.
Speaker 4:
8:29
And you know, there's so many ways for downside protection, but yet people only focus on the equity side. And so when we're talking about that you're replaceable capitol, there's lots of ways we can look at doing that and people just have to be open minded to do those things.
Speaker 3:
8:44
Yeah. So here's an analogy again, I'll share with you is, so last Saturday I woke up and I needed to fly to Florida. So I woke up and if we remember it snowed last weekend here in Omaha. And is it snowed? You had, I had to make a decision is okay, well it's node. So for downside protection, the safest thing I could do is not go to my flight. Right. That's an option. And stay in the snow. Yeah. Yeah. Well this business meeting down there, uh, but, or if I'm going to do this, I want downside protection. I drove to the airport. But guess what? I left much earlier. I gave myself more time. And as I'm driving on interstate 80 going to Eppley airfield is I drove at a slower speed. It was snowy, it was icy, and I wanted to be careful. So I had my downside protection was, you know, be careful with the breaks, doing all those things and that there's different ways to approach it.
Speaker 3:
9:40
Now I could have taken the risk and driven the same speed and I probably could've gotten there safely, but why would I take that risk? Was it worth it to save 10 minutes of time and I would have been in the other car probably cussing him out the whole way for driving like an idiot. And this no. So true. Well, and I think about that is you have to, when you look at your downside protection, figuring out how much level of risk you can stomach. So if you can't stomach a red number, then there's certain investment things you need to be involved in. And by the way, if you think you go into bonds and assume that they're completely safe and you're not going to go down, have you actually checked your statement over the last year? They probably have not. Yeah, they have gone down a little bit.
Speaker 3:
10:23
It depends when you got in and what type in bonds. Yes. Maybe have some more security than, you know, certainly equities are certainly less volatility, but when we're on this rising interest rate environment, bond prices go down. So actually you could have bought something, a bond a year ago, and because the interest rates, you know, I've increased, that may have gone down. So I just don't want you to surprise when you're opening up, you're in year end statements or many of you don't look at your 401k's maybe once a year and now you're going to look at it again. That price could be down. So don't make a move though and say, oh, it's down and I need to get out of it. That's again, and we call it the compounding pain affect your, or you're just, you're throwing salt on a wound, whatever you want to call it, because people see something they don't like and then make another change.
Speaker 3:
11:10
And behaviorally, and by the way, there's been so many studies done about this. Aaron does the acceleration effect of pain? Yes. Yeah, it's, it's crazy. So when you think about pain from taxes is it's, it's the blind eye. So people are blindly trusting yourself. And by the way, you're, you're blindly trusting the tax software to, and don't be around there. Great software is out there and I think it can work for many people. However, are you maximizing it or are you doing what's absolutely best? Because people don't know when they're reading the question whether they should be checking yes or no. Yeah, it's a human hair. So what do they do? They choose, they check no. Or sometimes yes. Or they read it. They don't understand it and move on. And then again, additional confusion and concern. So I mean, I think about this, if you ever wondered, are you getting, are you paying the minimum amount of taxes as possible?
Speaker 3:
12:03
So Erin, and we talk about this on the show, but everybody's different. It's like a fingerprint. Your tax situation is completely unique to you. So what your neighbor does as a matter, it's what you do because your numbers are what matter to you. We actually have a tax reduction analysis. If you'd like that. (888) 419-8513 that's (888) 419-8513 some people may charge you hundreds and hundreds of dollars to do this. We'll look at it. No charge. We'll help give you an analysis of what that looks like. (888) 419-8513 hey, you're listening to wealth of wisdom. I'll Paul West with Erin Wood and coming up in our next segment, we're going to keep talking about these challenges we're seeing here in the market and how you can help protect yourself and your family and don't be like most people. Most people don't do anything. They let this fall down their priority list. Don't let that happen to you. You're listening to wealth and wisdom,
Speaker 2:
12:56
trust, transparency, accountability. These are the values that drive Ron Carson and Carson wealth. You're listening to wealth from wisdom with there until the fame advisor, Ron Carson, he's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to, well, from wisdom with Barron's hall of Fame Advisor, Ron Carson, how much money will it actually take for you to retire? And what does that mean? Magic
Speaker 3:
14:34
number or maybe better yet, Aaron, I'm thinking about this. What was that number you think it's going to take so that you don't run out of money in your lifetime? And you can get rid of that fear, right? It's actually at the biggest fear people have now. Okay. Hey, this is well for wisdom on Paul West cohost today is Aaron would hear from Carson and it, you know, as we think about magic numbers, people get stuck on them all the time. Uh, it's kind of like their favorite food and I'm not saying there's anything wrong with that, but sometimes you got to take a look at it again and maybe try something different and make sure you're approaching it that way. So we're going to keep talking about ways to avoid that magic number bias and what you're doing. I have to, I have to talk about this, Aaron.
Speaker 3:
15:15
So, of course, earlier this week here in Omaha, Nebraska, uh, you know, a pretty big announcement from ops about a 771 million pension shortfall. Say that number again, 771 million. That's a big seven, seven one with six zeros behind it. So you know that that's, I mean, first of all, this is happening across the country by the way, so they're not alone. Um, but most people are going to ignore this or most people I hope can understand the ramifications of this. So this is the current projections right now that if it had to meet its future obligations, only 64% of it would be met. And that's certainly well below what it really is considered the standard, which is 80% yes. So this takes then two things they're gonna have to make enhance payments and better investment returns. So what does that mean? Oh, now they have to figure out how to diversify differently and then just sitting in cash and bonds or take more risks and either equities or private investments.
Speaker 3:
16:29
And so now just what the universities have been doing for quite a long time. Yeah. But I think the universities and I think foundations and endowment models, they're, they're really smart and it actually, it's like actually doing a game plan with a financial planner. You put enough money in your first category, which is how much money do I really need in cash over the next two to three years? Yup. That, that way, you know it's safe and then you say, okay, how do I invest for the next five years or maybe 10 years, whatever their number is so that money can go up and down a little bit, but I'm going to keep sliding my dividends, my income, etc. From that into the first category. So that way I always have that cycle of two years worth of income. And then I look out at that third category or third bucket, whatever you want to call it.
Speaker 3:
17:13
And that can be my growth based, Hey, give that 10 years to run. It can be in a bunch of individual equities, it could be in private investments. So the challenge I think that ops is going to have here is how do they do that? But unfortunately they got to get the investment returns to the third bucket in the second bucket. Yes. And that creates risks. So now if you have to start paying people out, and if we have a decade, like the two thousands and people forget this, since we're almost in 2020 is to figure out how many times like say 2020. I just like saying that like five. I'm pretty sure our producer takes a drink every time I say it. So, um, you need another bottle over there. You're good. So as we look at going into 2020 the years, 2000 to 2009, we're actually a losing decade.
Speaker 3:
17:59
So now imagine in this second category of the next five to 10 years for the pension fund and it's in a losing decade, which could happen. We're just accelerated the problem with them saying that they could get 64 cents on the dollar. So many people believe that's not true, that I'm in a pension, it's safe. I'm going to get these dollars. I can tell you when I was in Milwaukee and I ran my own practice, there was a pension up there that did go bankrupt and then they got pennies on the dollars. They didn't even get 64 cents on the dollar. They weren't getting pennies on the dollar. That is something that people were planning on and it disappeared within a few days. Yeah, I mean there's some pension protection offered by the government, certainly. Um, but it's again, people's perception and reality are not aligned here at all. Um, and so I guess, you know, this is obviously big news here in the Omaha area and I certainly feel for all the people that have invested their lives in, you know, commitment to children and to the administration there.
Speaker 3:
19:00
And you know, of course we're all extremely thankful the service. But if I'm right now and I'm listening to this show and you know, I work there, I better be going in to have my planner and be running the new estimate and thinking I'm only maybe going to get 64%. I'm not saying that's gonna Happen, but I'd rather be conservative from our tournament and I'd rather in, what I mean by that is in my projections, yeah, I'd rather make sure I'm going to make it rather than be aggressive. It's like, oh, I'm going to go do this. I'm going to buy a house, I'm going to buy a boat, I'm going to get a second place in Scottsdale, blah, blah, blah. I want to make sure I got enough so I don't have to worry. They have that stress. That goes back to what we've talked about before.
Speaker 3:
19:37
Having a plan that his needs versus wants. What can I get by with my absolute needs that I have to have and all the others are the ones that are nice to have and if the pension ends up being more, well then great. We can talk about that category. And so I think, okay, I'm listeners, I'm going to go in. I'd go, I'd go meet with their financial planner. I mean, I certainly did. And by the way, if you want to help on this and you work there, please give us a call. We'll guide to help (888) 419-8513 or minimal helping answer your question. So glad to do that. But then I sit there and think, okay, I'm listening but I don't work for ops, but I worked for somewhere else and you know, when is the last time you actually looked at like the fees in your 401k plan when there is no fees.
Speaker 3:
20:15
Paul, come on, it's free. I got to tell you Erin, I was sitting in the, in here on Friday and I'll excuse me last Friday and I was like meeting with someone who works for a pretty big Omaha based company and I'm looking at all of their investment choices with them. The lowest cost was 40 basis points. So 0.4% on expense ratio for the cost. They had no idea, right? No, they did. So the interesting part was it was actually on their investment menu. It was, but they of course were asking me for advice and again, we offer fiduciary advice, which means advice that it's in their best interest. But here's what you're going to, you're going to fall over. You're, you're not going to believe this. So for that lowest cost investment of 40 basis points, guess what it was invested in. Please don't tell me it's an index that she had been like lower, much, much lower.
Speaker 3:
21:09
You guessed it. You knew, you knew where I was leading you here. Huh? S And p 500 index fund, 40 basis points. The one that you can essentially, you know, buy on the market via an ETF or essentially, you know, a couple of basis points via vanguard or blackrock I shares or you know, there's several other choices and they're paying 40 basis, but they're basically overpaying by 0.38% a year because that's as part of the plan. Of course, you can imagine then like the growth funds inside of this retirement plan. So you as investors, you're empowered, go and your employees go tell your HR department this is unacceptable and that they need to go take it out to a four one k plan fiduciary expert to talk about this because guess what? They're not going to do anything about it unless they hear from you.
Speaker 3:
21:56
You need to let your voice be heard. And if you don't know or understand, again, give us a call. We'll help walk you through that. Or if you want to do is send us an email info@carsonwealth.com. Hey, by the way, I'm super excited shortly. We're going to have texting capabilities. If you want a Texas questions and Info, you'll be able to do that here soon. Um, but I look at that and if I'm a business owner, if I want to help out my families and my employees that I work with and their families, why don't I want what's best in my retirement plan? Your employees or your single most important thing to your business, they are your business even before your clients. Because if your employees aren't doing what's best and if they're not happy, guess what? You're not going to have a good business.
Speaker 3:
22:40
It's just that's, that's how it hit works. So let's maybe move next into a topic. You know, I was looking at the year and what happened here in 2018, again, I know I've talked a little bit about this, but I mean it was a really rough year in the market. S and P was down 5.6, 9%. The Russell 2000, which many of you track was down 12.4, 8% international down 14.15. Um, US corporate bonds were down 2.61 high yield was down. I mean that's a lot of down, down, down on, uh, that happened there. So it makes me think, you know, our people properly diversified, the people have the right asset allocation. Um, and if they think about what I like to call their sequence of their returns, are they configured in those right categories or buckets to make sense. And I think this is a great time, um, to think about rebalancing and in this can be one of the biggest keys to maintaining your risk level over time.
Speaker 3:
23:44
Because, you know, we've certainly seen it, um, large, large cap growth has done phenomenal. Yeah. Over a multiyear period. And this is, so the rebalancing into your normal asset allocation is so important and everyone seems to just gloss over it. They pick those investments when they sign up for their 401k and they never look at it again and they get out of whack. And then something like this happens and you're following the market because your accounts have grown and shrank according to those categories. Yeah, I, I love to share the story by the way. And don't assume. Um, so the good news is is you know, money market rates have gone up and but it doesn't mean they've gone up to the same amount that interest rates have gone up. That is for sure. But I mean, prime now sits at five and a half, right?
Speaker 3:
24:27
Two year treasuries are 2.5 to here. Here's some piece of unfound value that I, I can't believe happened. So a lot of people say, Hey, I want to be as low cost as possible in managing my investments. So they do it on their own through Charles Schwab, TD Ameritrade, fidelity, whoever it is. And I don't disagree. That can be a cost effective manner. One if you have discipline, but to, this is the one that just, just, I can't believe this happens to people. So I had a family recently sent us their Charles Schwab statements. They wanted us to do that free quantitative analysis for them. And they do it all on their own because they basically have it in some index funds, low cost. I think they're doing some great things with that. But then they have a bunch of money in cash because they got out part of their money and so it's invested in the lowest pain money market.
Speaker 3:
25:21
Oh, sitting there. And by the way it actually, Schwab does a good job on this. On their statement. I saw it has the five are they, I can't remember. It was four or five money markets listed and it shows you what their current seven day yield was. Point one no, it varied from like 0.3 to up to two over to I believe at this point in time where the, where the money market choices. Well you know we use fidelity and TV. So those are both, you know, pain right around 2% right now. I think that's great. And this person was just missing out. So imagine this, they had $1 million and they were paying 0.3 versus 2.2 so really 1.7% on $1 million. Yeah, let's do the math there. That's not chump change. No, not at all. $17,000 yeah. They're costing themselves silly, silly. Don't let this happen to you. We help read statements. We help them. So if you want us to do that, (888) 419-8513 since we're a fiduciary, we're going to give you legal and ethical advice that is in your best interest. We don't sell your stuff. You're not getting a commission or a bag of products or any of that stuff here. That's for sure. (888) 419-8513 we want you to make the most out of every dollar you've saved so hard for retirement. You're listening to well, for wisdom.
Speaker 5:
26:39
He seemed good times and bad times and he's got the gray to prove
Speaker 3:
26:44
you're listening to wealth from wisdom. We're there and tell the same advisor, rod Carson,
Speaker 3:
27:58
he's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. How much money do you really think you're going to need to retire? Have you figured out what your magic number is? No, I'm not going to sing that song right there. You here? Do you believe in magic? Well, of course, of course. We all do actually. The beauty of that, right? Um, but saving money isn't magic. It's real. It's legitimate. It's not. But if you make mistakes, guess what can happen. Poof. Yeah, you can lose money. You can hurt yourself and then you got to stay and work a lot longer or not sleep maybe as well because you're concerned about, I'm Paul last joint, my call us today. Aaron would, we're talking about what really matters with your money.
Speaker 3:
28:48
That's what we do on the wealth from wisdom show is we want to help educate you. You know, we'd spend time, we'll spend some time talking about the market, so we'll spend some time, you know, as you said, talking about the taxes, but we also want to tell you what's happening in the world related to money because sometimes people just read the headlines out of fear, but not maybe some of the good things that are happening and you are sharing with me an awesome one here. Yeah, yeah. This was one that I came across a couple of days ago and I thought it was so great. I'm going to say the senator from South Carolina might be my personal hero at the moment. What's the senator's name? Luke Ramekins. Luke Rankin, I believe a state senator. He introduced a bill to require financial literacy as part of the required high school curriculum.
Speaker 3:
29:31
How awesome is that if you think about it, it's one of those things that applies to every single one of us as an adult, but yet the school curriculum does not enforce that. Be Part of something that is so prevalent in all of our lives, they're all going to have to have money coming in and out of an account at some point in their life. Right? Yeah. And it's just, it's basic. I mean, and we don't, I mean this is, and this is disappointing to me. I, if it takes being mandated then great. Let's do it. Um, my daughter is a sophomore, she takes a personal finance this semester actually. So it is so much fun. She was drilling me the other night on questions of course, knowing and I work. It was that, tell me about excise taxes and once you know about them and tell me about this.
Speaker 3:
30:13
And I was like, I was watching the passion, it probably, because I'm in this space and in this industry, but what she was learning was so, so important to make them successful at life. And I don't care, public or private institution, I think this is absolutely mandate. So what's next? They just, they put the bill out to the state senate and hopefully they get it approved. And I hope it gets enough press that people are behind it and then it doesn't get, like you said, good press sometimes gets lost. And so I hope this really gets attraction. It needs so people can be behind it. Yeah. Luke Rankin's you said. Right. Okay, great. Well we're to keep pushing. I'm going to actually try to promote that social media wise too. Um, cause I think that's good. Uh, and if you have that on my Twitter account, what's your Twitter handle by the way?
Speaker 3:
30:57
You're on a blood photo to Aaron would four oh two. I like it. Your hip. You got it. There you go. Uh, mine is Paul West coach. And so if you want to follow us, we obviously share some ideas, stories and articles or you can ask us questions there or if you prefer email and private info@carsonwealth.com. So let's keep talking about ideas here for success in 2019 and beyond. She turned 62 this year. Anybody listening or you to 70 yet? You're not quite there yet, Jamie, who you can see it on your eyes. You've got a few more years, but we turned 62 you begin to think whether or not you should file for social security. And I'm going to tell you, you better have a bulletproof plan put together this and don't laissez faire it. But people do. I mean I would actually suggest that over 50% of people do one of two things.
Speaker 3:
31:50
They won. They just go in and file cause they got the letters. Yeah, I don't say when or two. Here's when they do. Hey Aaron, when did you file for social security? 62 62 or you'll say 65 or whatever like cool. And what do they think they're going to do the exact same thing. Yeah. Bad, bad mistake. I know when you're growing up and your parents said to you, hey, if somebody else jumps off a bridge, would you jump off a bridge? Well I hate to say it, but this is a little bit of the same. That's my best growing up voice. You know what you hear in your head. Not Good, was it? No, but that's all right. But the same principle applies here. Just be because something was good for Erin doesn't mean it's good for Paul and you have to be smart about that.
Speaker 3:
32:34
I mean, yes, it's okay if somebody needs to remodel your family room, Joanna one, of course they're going to remodel their family room. So asking other people who they use for contractors or drywallers, are those types of things completely acceptable and people are open to having those conversations? Yes. So when it comes to money, people do not talk openly. They have all sorts of reasons why they're keeping things to themselves. And I had told you earlier, I had seen a study on this recently. Reasons people don't talk about money. Number one, it's not etiquette. What? Yes, why is it not etiquette? I have no idea. But obviously that is become, are a typical thing here in the United States. It's not etiquette to talk about no money. So I would agree. It's probably you're at a cocktail party, probably not. Etiquette. Hey, how much money you make.
Speaker 3:
33:23
Yeah, I get that. Part of it might be a little specific. Number two, fear of being taken advantage of sensitivity from that people. I get it. They don't want to be, people don't want to be sold. Erin. I mean I think that's the end of the day. Is that fear that somebody's going to take something from them that they don't want to happen. Three fear of spoiling your children. Oh yeah. A big one. Yeah. You and I both have kids that, that's top of my last, yeah. Well like we joke about, um, uh, my twins are in high school, they're sophomores. They both got a cell phone, um, over Christmas, their eighth grade year. Um, and by the way, it wasn't the brand new phone. Oh yeah. Which then it's not cool enough. Yeah. Well they figured as long as it has snapchat at work. So I mean that's really all they're concerned about.
Speaker 3:
34:11
But second, so of course we have our third youngest and he's not quite to that same period of time. And I'm making him wait until then, which he thinks is unfair, but of course, yeah. But again, it's like, oh, you're not going to get the new iPhone 10. That's just, that's not how it works and I think we have to, and I want to teach them lessons and life. You know? I remember growing up and you're like, Oh man, I need to go out with my friends. I want to do something. So you're in high school or before then and your peers like okay, here's three bucks or here's five bucks or whatever it is, and now you're here. Last weekend they were like, oh, I'm going to go with my friends. We're going to go out, we're going to go to runs a or somewhere.
Speaker 3:
34:49
Can I have 20 bucks? Yeah. Like 20 bucks. What are you doing? You're going to a movie or show you driving a Lincoln to go get this. I mean, what's happening? Yeah. It is so crazy to think about how expensive some of those things have got the iPhone x, I'm pretty sure it was like a thousand visitors. Yeah, I have one. So I can tell you it is no way. I'm not giving my seventh grader a thousand dollar phone. No, you wouldn't. That's how you have to think about it. If they're like, oh, but Johnny's got it. Her, Susie's got it. Who Cares? It's you and your life. I don't even have cable at my house. You're not getting a thousand dollar phone like that. That's just how it's going to be. Do you have heat? We do. We have geothermal see tax credits. I took advantage of that if he years ago, speaking of tax credits, I read an article last week, Karen, this is another one.
Speaker 3:
35:35
So if something seems too good to be true, it is. Um, so, um, and actually I was approached by this company and that happens a lot of time and my role running Carson wealth and helping investors always make the right decisions. Of course people that have tax opportunities centered to us or call us or those types of things. And this gentleman was here and I let them in the door because it was a connection of mine, said you should talk to them. And they were doing conservation easements. So I'm going to not go into the detail of that because I will lose all our listeners and pure board from hearing about it. But basically it's attack, it's taken advantage of conservation easements and the tax benefits that go along with that. Well, I decided not to go forward. It sounded super interesting, but it didn't pass my smell test.
Speaker 3:
36:21
Right. And we all have that. You have that smell test with people. Um, and so I just saw the other day they got hit with a federal lawsuit investigating. So Department of Justice. So I mean I just think about again, for all of you, if something seems too good to be true, it's not, I was talking, I work with a family and this is again, you know, we have a great plan in place and they were at an event last week down in, they weren't Florida also, but it's somewhere else. And they were playing golf and they heard they met another, I'm going to use advisor, but who's actually a broker? And they're saying, Oh man, I can get you 10 to 12% a year. Well that's completely wrong. That is not historically average. And that's just promissory. Yeah, you can't do that. So if somebody is again promise you something that's too good to be true, get out of the conversation.
Speaker 3:
37:14
Runaway, be away from that because it is dangerous. And Aaron, I mean you and I talk about this is be careful. So again, I go back to social security. When people give you advice, unless they're an expert or unless they have some form of social security analyzing software like we do at Carson wealth, then they can't give you advice. They're not trained to give you advice. So if you do actually want to buy, so it's, I should probably, hopefully people out here hiring. Let's say if you actually want a social security analysis, call us directly at (888) 419-8513 that's (888) 419-8513 he prefer email info@carsonwealth.com I mean do you really want this avalanche of taxes by filing incorrectly? Do you want to double your medicare premiums? Again, if you make a mistake here and it just crazy to me to people do this, where do you want to forfeit your spousal benefits? How would Mike feel for you or Courtney? For me? Not Good. We don't want that to happen. Don't let that happen to you. (888) 419-8513 you're listening to well from wisdom. How could you make your money go further in retirement? Learn how unwell from wisdom with their Intel and fame advisor, Ron Carson,
Speaker 2:
39:43
is it possible you could learn right here, right now on wealth and wisdom with baron, tall of home advisor, Ron Carson. Hey. Most people are fixated on a magic number that's going to get
Speaker 3:
40:00
them permission and provide themselves this comfort in their brain, but it's false comfort that they can actually retire and I don't care if the number is 1 million, 3 million, 5 million, et cetera. If you don't have a plan for it, it's silly for you even to build it you, you got to have a plan for your taxes, your income, social security, your risk, all of those things. Hey, I'm Paul s goes today. Erin, would it be talking through all of the best strategies, whether it's social security, whether it's rebalancing, but here and I was really enjoying what you're doing. We need to continue on where you're were talking about reasons why people don't talk about their money. Number one I think you said was etiquette number two was taken advantage of and get of Asheville and sold. Number three, fear of spoiling children. It's one of the children. All right, what are the last two then? Number four, embarrassment, embarrassment, number five there. Fair being judged. Huh? So those are almost the same category to me. Yes they are. I would say, but I think that are important.
Speaker 4:
40:59
It's unfortunate that people are embarrassed or feel judge. I mean we were talking about before, there is no education and most of the high school systems, most people become adults and what they've learned they've got from their parents. Hopefully. But what if your parents taught you nothing and the school didn't teach you anything? Now how is that your fault and why should you feel embarrassed about that?
Speaker 3:
41:18
You shouldn't. It could be through your education. That's why I love the bill from Luke Rankin's we were talking about earlier about mandating high school is actually giving you, making you take a personal finance class and pass it. By the way, don't make you take it for it, actually pass it, show you, learn something. But I think you're so right. I think people have a fear. Um, and I guess a fear, I say they're embarrassed, which is why they don't do it. I think that's why they don't go to financial planners. They're embarrassed that their number is not big enough compared to other people. I don't care. It doesn't, I care about your number and what's best for you. The number doesn't mean anything to me. What matters is, is your number going to help you match and meet your goals. And I'll add to that.
Speaker 3:
42:04
I've had so many people over the years, they'll bring me their spending plan and it's almost like, you know, they're handing it over and you can see I'm inching towards me, but they've got a death grip on this piece of paper. And, and I just tell them, you know, I'm not looking at this to judge you and tell you how to spend your mind. I don't care how many lattes you have or you'd like to go to the movies all the time, or you spend all this money on Gucci. I mean, if you can afford it and it's part of your spending plan and it works for your overall plan, that's great. Where I noticed things is things where actually it can benefit them. If I happen to see that their cable bill is $600 a month, I say, well, you know, the average for this as this.
Speaker 3:
42:45
Um, so there are times where I see something, what is the average? I wonder, let's say about 170 is pretty typical of what I see. Um, but you know, if I saw someone who had $600, that would be something good. This is outside the range of normal. Um, but if someone spends a thousand on a vacation or 5,000 on a vacation, that is not for me to judge. It's for me just to help them figure out how to accomplish that next year and for the next 30 years. Yeah. So I, I couldn't agree more. Don't be embarrassed. Make the decisions that are right for you. Um, and at the end of the day, I mean what you just said like about vacation, another favorite comment of mine is money memories and spend money for, for if it's going to create the memories and the experiences you want. You mean people fret over Oman to pay $100 a night of a hotel or 120 120.
Speaker 3:
43:33
You think you're going to enjoy more or you're really going to miss that 20 bucks? No. Or same thing. This one, this one baffles me too. So people search the Internet just for hours or days looking for the best flight price, but then they sacrifice their time. So yeah, maybe they save $50 but they have to leave at 7:00 AM returning home versus if they were leaving at noon so they got five more hours of flight time or she's me time in that city, which they could sleep. Go to breakfast, whatever they're doing. So basically they valued their time at $10 an hour. Yep. Over their life. I don't know about you, but I value mine more than that. Yeah, me too. We are taking our daughter on a trip and uh, next month I think she doesn't know we're going and we had the opportunity to actually go earlier than what we were planning. She going, so we're going to cruise, you're going to listen. She's five. So she might just listen to the show every week. She does.
Speaker 4:
44:32
And she says, mom, is that you? Now she knows secrets out. And my husband actually said something about it last night at dinner and she's quick and she's like, what crews? So if she is listening, it's going to be confirmed. Um, but you know, you don't get on those until like four o'clock. And we had the opportunity to get on it like 10 o'clock in the morning. And so we're like, you know what, we'll just pay the
Speaker 3:
44:54
oh, so they do extra like hey, pay the extra and you get on earlier. Yeah. And so I think we get on at 10 o'clock in the morning and the boat will mostly be empty. Yeah, you're going to enjoy it. You can experience it. And it's probably wasn't that much more money. No, he was not. No it because otherwise, what else would you have done said at the hotel until they kicked us out yet. But you would have gone out to lunch. So you would have spent money there. You would have probably shopped, shopped, done an activity, whatever it may be, and all of a sudden you're in the same price thing and now you get to start your experience faster, better. Um, and so I always ask people to be so calculated on being smart with their time. So I want to talk about this from a money situation too.
Speaker 3:
45:35
Um, I've said this on the show and our producer, Jamie definitely knows this, but what is my least favorite word? Busy. Busy. Hate it. Hate it. Why? Because you ask everybody, what are you doing? I'm busy. I'm so busy. I got so much going on. Everybody's got stuff going on everybody. It's how you prioritize your life. And by the way, I hold our team accountable and this you can ask them. So in our meeting every Friday with all of our advisors and we're sharing our best practices to make us better, which ultimately helps our clients more and more. If you say the word busy, you have to stand up. Yes. That had to do that by the way. All right. You better knock on wood. Not Jinx yourself off. Now. Uh, so, uh, this one individual got caught again last weekend and then they were texting with me over the weekend and they put that word in there of busy.
Speaker 3:
46:28
So I sent it back. You said what? With all these exclamation points and things. So they sent out an article, 10 words to use instead of busy, abundant, rich, engaged, wholehearted, captivated, productive, resplendent. Don't use that one very often. Dynamic or excited. So I'm going to challenge you. Well, from wisdom, part of what wealth is, isn't financial. It's mental, spiritual, it's physical. And so if we can help you change your perception, your mind to be more dynamic and what you do, be more productive, captivated, wholehearted cars, confident. Don't let this world control you. And I say this happens in two ways. One, people get sucked into the social media trap. And by the way, I use it, but I'm very calculated. I only spend x amount of time. I just don't like to be on it. That one, yes, I love to check Twitter, but it's like a minute, a time that I'm done.
Speaker 3:
47:30
Move on. And when people do that though, they, they lose half hour, hour of their time emails. Guess what? If somebody's sending you an email, that usually means they want something from you. Again, can be a time suck for you. So be careful on how you do that. You want wealth, but time is one of the wealthiest things you can have and being smart about your time to do that. And part of that is planning out your time in retirement. How much time do you have? What are you going to do with it? How are you going to enjoy it? So Erin, I know we've created this. I think it's so cool for people. We call it, you know what it was? It are our five step. Yeah, that's what it is. Five step retirement action plan. This thing, it actually helps people look at all of those things.
Speaker 3:
48:11
Your Age, your assets, your longevity, having fun being with the kids and grandkids. You know, if you want one of these, (888) 419-8513 because this helps feel really, why don't we say is maximize the most out of every dollar they have. By the way, most people hear me say something like that was like, oh, Paul is going to try to sell me something or something like that. That's not the case. At the end of the day, we're a fiduciary. If we can't provide value beyond a reasonable doubt, then we're not going to do it. Just hands down. It's that simple. (888) 419-8513 ar and I've really enjoyed the show today. Talking about reasons why people don't like to talk about money, reasons why they make mistakes and make sure you learn something out of this and go apply it. You've been listening to wealth from wisdom,
Speaker 2:
49:00
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.
Speaker 1:
49:13
Okay. And here's the legal Mumbo jumbo. The opinions voiced and well from wisdom with Ron Carson or 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 principle. 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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