Wealth from Wisdom

Your Biggest Questions About Saving and Investing For Retirement

September 22, 2018
Wealth from Wisdom
Your Biggest Questions About Saving and Investing For Retirement
Chapters
Wealth from Wisdom
Your Biggest Questions About Saving and Investing For Retirement
Sep 22, 2018
Carson Wealth
Show Notes Transcript

Have you ever wondered if you’ve saved enough for retirement? How much you can afford to spend? Or if you’ll run out of money? On this episode, Paul and Jim answer your biggest questions about saving and investing for retirement.

Speaker 1:
0:00
Okay, and here's the legal Mumbo jumbo, the opinions voiced and wealth from wisdom with Ron Carson and 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 CW m LLC, an SEC registered investment advisor.
Speaker 2:
0:31
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 205th the skyrocketing cost of healthcare and retirement could now run 350,000
Speaker 3:
0:47
think for retirement. Today is a whole new ball game. It's loaded with challenges, obstacles, and trap doors, but you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson. You have doubts or concerns about your money and retirement, and you often ask yourself, hey, am I going to be okay? Have I saved enough or will I actually run out of money? No one likes these fears, but you need to be asking yourself these questions because if you wait too long, it could be too late in the game to do anything about it. You're listening to well from wisdom. I'm Paul West, and this is the only place where you can really count on straightforward, objective, fiduciary advice about investing for your retirement.
Speaker 3:
1:41
We're not trying to sell you anything. We're trying to give you the real truth, what we learned in the trenches and share our wisdom with you from years of experience. I'm joined today by my cohost, Jim Caldwell. Jim. Hey, great to have you again on the show. Thanks, Paul. Yeah, so I mean, new clients ask us this question every day. They want to know are they going to be okay? Have they saved enough? What is there right number and how can I help out? And some learned by the way, Hey, they could, uh, you know, put, you know, put the shoes away a long time ago. They've got a retired others, uh, their eyes get a little wider and they get a big wakeup call and discover there's a lot more work they actually need to do before they could ever think of calling it quits, Jim.
Speaker 3:
2:25
And we have to help people balance those emotions, right? So I'm, that's, that's great excitement. Other is frustration, anger, those things that go with it. But you know what? Both of them have Jim peace of mind. They at least know an answer when you don't know something or you make a decision and you're not a hundred percent confident, that's the worst, right? That's when you wake up in the middle of the night or you keep looking back in your rear view mirror. Hey, when I'm merging on Dodge street in the morning, sometimes here and coming in, and if I'm not 100% confident merging when there's rush hour traffic and that Sun's glaring at you from the east and you're staring at it, if you're not 100% confident, you're looking in that rear view mirror of one, two, three times, checking your blind spot multiple times. And it's good to be safe.
Speaker 3:
3:13
But it's just nice when you have peace of mind that you're making the right move. And when we think about retirement for people, it's about planning and, but it can be challenging because a lot of things happen. What actually, if you actually retired in a bear market or on a major bull run since 2008 but what if you're one of those people that would've retired in 2008 2001 and did you do the right things? We know healthcare is not going to go down the price and we don't think that's gonna happen. And what does it really good for all of us is we're living longer, more time with our kids, more time with our grandkids, more time golfing and more time with friends and family barbecues. But with longevity means we need more money. And so this may be difficult, but there's strategies you can take.
Speaker 3:
4:03
And one of the things we're going to share with you, his ideas on how to make this easier for you. So on today's show, Jim, let's really help people talk about the best ways to save for retirement. And we're going to share with these seven strategies that could help you make more money and go a lot further than you thought possible. So let's talk about strategy number one and that is developing a financial game plan. And as you think about that, I look at this, there's two types of people in the world and no, I'm not talking Democrats and Republicans is here in gym and we don't need, this is not a political shore show, nor do I want it to be. However, there's people who have a plan and people who don't and people who don't. I feel like they get nervous, they can get a panic. They, they, they, they their conflict avoiders and they have more questions than answer and they have a four letter word I like to call their plant hope. They're hoping for it. All right. And you have to be able to figure out how do you, how do you change your plan from a hope to actually a goal and objective that helps you carry it out?
Speaker 4:
5:12
Well, it needs to be written. I mean if you just have it up between your ears, they're there. It's very difficult to execute. I'll give you an example. Uh, I go to Disney world a lot. It's one of my places I go to relax and it's frustrating to walk into the end of the parks and you see people standing in the middle of the aisles reading the maps, trying to figure out at the last minute where they're going to go and what rides are going to go on and what attractions are going to see. And you know, you can see the panic and the nervousness all over their face and they end up not being able to enjoy the ultimate experience and being able to have fun. So basically in that situation, it's all on hope. Also another misnomer, I think Paul is the fact that most people think financial is just
Speaker 3:
5:58
for the wealthy, whereas in real life, every adult out there needs one who, and we need to be able to provide that for them. Yeah, well, I mean it's not just for the wealthy, it's for everybody, Jim. I mean, everybody needs a plan. And by the way, if you're a football team, whether you're undefeated in Windsor law says you still put a game plan together for each game. You don't like throw your hands up and say, oh, I quit. Right? That doesn't happen. Um, but when looking at a plan, so let's think about the key areas of this. And by the way here, Jim, I actually truly believe this. The number one reason why people don't put a plan together is because they're embarrassed to do it. Correct? Totally. That sounds weird. Wild Paul, why would I be embarrassed? Well, because we've all made decisions in our life that didn't turn out the way we thought they would.
Speaker 3:
6:49
Whether we got in a car accident, right? Or um, you know, oh, we didn't do a good job plant our garden this year and all of our plants died, or whatever the silly things we've done, we're human, right? At the end of the day, we make mistakes. We see people make mistakes on the football field. People make mistakes in life and it's okay. But what you can do and what's gives you more comfort is actually being able to build that right infrastructure for yourself. So one of the ways you do it is so security benefits too is reducing your taxes. I got to tell you, I mean more than anything like [inaudible] not having the right tax plan in place is one of the biggest mistakes we see people make because you can control it more than you ever thought possible. And so let me think about it this way. If I had, um, you know, multiple decisions to make in terms of taxes, I'm always going to choose what the one that costs me the least.
Speaker 3:
7:48
Correct. There we go that direction. But there may be a strategy out there for help you. So I was thinking about this the other day. Jim, I'm going to go down a little diversion here for a moment. Okay. All right. So what's, you know one of the most iconic movies of all time, Forrest Gump? Oh yeah, great show. It's a great show. Tom Hanks' character is legendary. I think about the emotion in that show and I think about like all the political history of him. You know, I go into Alabama and running across the country and all of those things, but one of my favorite phrases from the movie, and by the way, I am not a good uh, uh, what do you call it? Imitator or, um, I, I'm not going to try to go my best Forrest Gump voice cause you would all be laughing here on the radio is when he uses the phrase life is like a box of chocolates.
Speaker 3:
8:33
It's great. It's great. I mean every, if you hear that phrase, what do you think instantaneously, Forrest Gump, and I was sitting there thinking about that, so the life's like a box of chocolates. You never know what you're going to get, but when you're getting that box chocolate, don't they put that map on the underside of it that says, Hey, this one's the cherry one, this one's the orange one, this one's correct. Double chocolate. This one has got nuts in it. This one, but how many people? I'd be curious and when people actually read that, probably 10% at the most. What do most people do? You grab wine, you, you take it, you're putting in your mouth and you're like, oh yeah, that was awesome. Or what do they do? Eat half of it it out. Yeah, they throw it away and then they go try the next one.
Speaker 3:
9:14
If they don't like that one, they try the next one and there's a little bit how that world works, right? Is is people have hit and miss and trial by error. Unfortunately, I think like life is like a box of chocolates to your financial plan. You can't keep taking a bite and throwing it out. At some point you're out of your different chocolates and desserts. You have your retirement accounts, your social security accounts and all of those things. And there's not a map there. There's not a mapping of like there is chocolates to saying, hey, here's how you do it. But there is for life it's called that financial plan. So if you have it laid out and you know what order to pick those chocolates, but better yet you know what order to avoid. So you don't get that one that has orange in the middle of it that you do not like.
Speaker 3:
10:04
You can't stand and you're going to be able to figure those things out. And that's what a financial plan does. It helps you think through picking the right sequencing of chocolates for you to enjoy. And the big thing is you've got to pull the trigger here. We had a a listener a couple of weeks ago called in and wanted to have a conversation and came in and we talked about what, what are your pain points? And he basically brought up, you mentioned a financial plan. I don't have a financial plan, but I've had a great career. I've, I've worked for a long time. I'm in my sixties the reason he had put that off, Paul, was something you alluded to earlier and that is, he was embarrassed. And I said, well, why are you embarrassed? I mean, you've done very well. He provided me some, some statements and he says, I don't feel like I've succeeded like other professionals in my industry.
Speaker 3:
10:51
And I was like shocked. Totally shocked. End of the day we've decided to go ahead and, and put a plan together for him and I'll promise you at the end of the road there he's going to be very pleased. Yeah. Well, I mean, and I think as we look at all of this gym and the big thing people need to understand is, is we tend to overestimate because our human, our ability to pick investments on our own to say how good we are doing a performance and we're also prone to just over precision and looking at things when if you just get strategically pointed the right way, you're going to be a lot better off than trying to pick one little tiny point in the future and think you have to nail that overall. So Jim, I mean we've been talking about some cool things. We're going to keep going through a, I want to talk about marijuana stocks here in a little bit.
Speaker 3:
11:39
That's a big hot topic and some other things, but I was just thinking about, you know, if you've been a good saver in your life or if you haven't, you still, no matter which way you've gone, you got to have a good action plan sent for your retirement. So if you want us to help give you a complimentary second opinion, we will. We're a fiduciary eight, eight, eight, four. One nine 85 13 when we talk to you, there's no sales pitch. This is complimentary advice. We want to help educate the world. That's why we're calling it wealth from wisdom, sharing what's in people's best interest. Jim and I love to see their faces on this because it makes them feel very comfortable that they've gone the right way. They feel empowered. I love it. I heard that phrase the other day. Someone said, I never felt so empowered after getting a financial plan because I can keep doing the things I want to do and feel comfortable. Then I'm not making a mistake. I'm not looking backwards and looking forwards and I get a live my life. If you want that feeling, eight eight eight 41985138884 one nine 85 to 13 you're listening to the wealth from wisdom radio network and we'll be back in a moment.
Speaker 5:
12:48
Trust, transparency, accountability. These are the values that drive Ron Carson and Carson wealth. You're listening to wealth from wisdom with Baron Hall of Fame Advisor, Ron Carson, orbs, investment news, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Hey, do you ever have doubts or concerns about saving? Yeah, saving
Speaker 3:
13:11
for retirement. And do you ever ask yourself, Hey, am I going to be okay? Have I actually saved enough or will I run out of money during my lifetime? Hey, you're listening to wealth and wisdom. I'm Paul West and this is where you can always count on straightforward, objective advice from us here at Carson wealth, helping you think through life's moments and what happens to you. My cohost today, Jim Caldwell. Jim, glad to have you on board. And you know today we're talking about the most frequently asked questions and concerns about saving for retirement and this segment, we're going to spend some more time with you and revealing ways to actually help turn your retirement to the ultimate direction you want. You take the hands on the wheel, you're in control, but you got to do some things. So in segment one we talked about building that right?
Speaker 3:
13:59
Plan to is, let's talk about, you got to actually put your investments to work for you. You've got to have enough in your safety bucket and you've got to have enough in your growth bucket, but you also gotta make sure you can live the lifestyle the way that you want to. So successful retirement, and I say this all the time, Jim, is they're built on assets, not on how much money you've saved, but really build on your way to generate the income you need. Stock markets can go up and down. Even though I think most people right now only think it goes up because of what's happened the last series of years. But those of us with experience, the business, you're going to know this, it's inevitable. It's going to come back down at some point. So you must have a backbone set of your income plan and potentially your safety net, right?
Speaker 3:
14:44
I mean there's a reason why a trapeze artists, maybe they love the thrill of being up high. There's a reason why they got a net below every go. Yeah, because happens if they don't, I don't want to go into it. It's not a good, not a good ending. No, not at all. So there's a lot of things moving right now in the market and what's happening. There's a lot of, I would call them as sexy things that people love to see. So what happened early this year in January, we were on this show all the time talking about Bitcoin, right? You don't hear us talking about that much on the show anymore. You don't hear the radio or other people on the radio. You don't want to hear your see it very much on TV. Do you know why? Because it was a fad and it's, uh, a bubble potentially. And yeah, it's still up there in price a little bit. But at the end of the day, there's a lot of other moving parts, and I'm going to tell you one of the trends and fads we're seeing right now is related to the marijuana industry. Oh, yeah, yeah. You're saying, oh yeah. Like, Oh yeah. Good.
Speaker 4:
15:41
I get about four or five calls a week on that.
Speaker 3:
15:43
Do we really? Oh yes. Just asking your thoughts
Speaker 4:
15:46
so far. What do you recommend this, these stock, I got one in the break room this morning from a fellow stakeholder. He's got about five of them he's watching. So I made people are tuned into this.
Speaker 3:
15:55
Yeah, I know there was one earlier this week, you know, where the circuit breaker went because it went up so much then it went down so much. And um, you know, there's just a ton of great articles on this. I was reading one on Barron's the other day, um, you know about his, his mid, the marijuana stocks and marijuana industry, the next bubble potentially. And I know people are excited that it's going to get, you know, a legalized in Canada and you know, multiple states and all these things. But I just be careful, I mean, fascinating thing. I was looking at one of these stocks, Jim, and I mean, it's like made $30 million, but it's worth 300 times that, I mean, and it just, it, it absolutely makes no sense. If you are actually truly evaluating a company based on its successful metrics, you would you, you'd laugh if somebody ever put it on front of your desk.
Speaker 3:
16:43
But people are buying it because of emotion. And you're here. Here's something I heard once on a story. And so don't take this the wrong way, but if you, if you look and someone else made money on something that you feel like you are so much smarter than them, then that could be a bubble. Because once it becomes mainstream, that's when it becomes a concern. And I go, look. But way back in the two thousands with the housing crisis, what happened? Everybody heard how everybody else was making money in the housing market. So what they do, everybody jumped in and there's a reason why him trends turned into catastrophes. Because when too many people are doing it, it creates opportunities for loss. Not Success, but really more opportunities for loss.
Speaker 4:
17:30
So do you really think this is a classic example of the grass could be always greener?
Speaker 3:
17:35
Oh, well played there man. You've been thinking about that one for a while. Uh, no. I mean, I do think that it's, you know, it's an industry that's never existed in the legal market. Uh, Jim, but I also think it's still the wild, wild west in terms how it's going to work out. And, you know, is it the marijuana industry? Is it cannabis oil, is it all of these things? And I will tell you here at the Carson group, we are watching it and we're identifying it as a trend. Um, but it's not something that we're necessarily moving on from an investment perspective at the moment because there's so many unknowns out there. And right now I think a lot of people could get hurt because again, once it's on CNBC and Fox and all these other stations would be able to do that. Oh, I'm gonna go buy a couple shares and do this.
Speaker 3:
18:20
While the reality is, is they're probably losing money and ended up getting smoked. Yeah. I like to say this all the time. So, um, we all have that friend or family member that loves to go to Las Vegas. Right? Many people. Yeah. Well, I can think of one in particular right now. I always hear about the time they went and they won gambling. I never hear back from them when they went and didn't win. Right? Oh, that's true. In life. Everyone wants to brag about our successes, you know? Ah, you know, I like to golf. So do you Jim. You know, when we go out and golf, like, Hey, we're more attuned to say, oh, I've got a birdie today, or I shot 84 today. We're not going to say, Oh man, I went and played shot 98 it was the worst round I had. That's it.
Speaker 3:
19:03
Just, that's not something you're going to come back and brag about. And it's sometimes it related income. That's not something that when you're sitting at your country club, you're sitting at the dinner table with your family. You don't Brag about, oh, well my income assets are working really good for me. Well, and to go back to, you know, something dull and boring was the sole security comment. And we had a situation where a listener came in and we had a unique situation here. Husband was 62 wives, 52 second marriage for both. So they're pain point is how do we take, so security and then based on the age difference, how do we have enough retirement income to last down the road and how do we leave a legacy to our children. So we were able through a social security analysis, fill in part of those gaps and then we're currently working on their financial plan that we talked about in our first segment.
Speaker 3:
19:54
Hopefully build a connect all those dots for them. Yeah. So when you say a gap, like what do you mean by that? Well you, you don't always have to take or want to take social security at 62 you want to have some options to wait until you're 70 and we're able to map that out for him. Plus in this situation they have a lot of qualified or IRA money that if they start taking it for a half, two at 70 and a half, huge tax problem then. So can we take some of that money through tax planning that we talk about on the show and distribute that during their sixties yup. No, and I think that's good. And I think it's the age old debate here is like some people are in the camp of well, Hey, as soon as I turned 62 I guess would flip the switch.
Speaker 3:
20:35
I want to get paid. I've worked so hard my whole life and I want to get this money. And I get that. I understand that emotionally. But if you sit down with a professional, and by the way this is not means you go to social security office and ask them their opinion. They are not in the business of providing advice. They're the business of getting you in or out of the system as appropriate. But if you go sit down and talk with someone, by the way, who is a fiduciary? So if you don't understand what the fiduciary is briefly, it's somebody that's always going to put your interests above their own. Right now, if you get anything from today's wealth, from wisdom show, why don't you go ahead and send an email to your financial adviser, which is the following question. Are you a fiduciary?
Speaker 3:
21:18
And if the answer's no, just realize that they can probably do put their interest in front of your own. But if you're, if your advisor comes back and says, yes I am a fiduciary, I think you should feel better because you know then that they are held to a higher authority and hire really thinking about business perspective of how they treat their families. And I want to know is, I mean the same thing if I'm going to go and you know, I have a medical issue, am I going to want to go get a diagnosis or go get a surgery from someone that is more worried about the maximum amount of patients they can get in and out or am I going to be more concerned about finding the best person who cares about Paul is going to make sure Paul's health is okay. Got It.
Speaker 3:
22:09
Go to the bus, got to go to the professional. Yeah, you're, you're going to do that all day long. So don't take any shortcuts in you related this and related your income. So next week we've been talking about this a little bit, Jim. Number three was social security benefits. Just getting the maximum out of this and your life, figuring it out and helping you think through that. Um, but, uh, you know, earlier today we were talking about this and I just thought I'd share it here with all of our listeners. So I know it's not social security related, but I want to share it. It's about everybody's hearing these things and you may not know a lot about it's called buybacks. And so buybacks have been talking about, but I found it interesting is um, our head of research here that, um, Carson group actually said is they've been tracking this and this is actually via Bloomberg that the buyback companies they're doing buybacks means they don't have necessarily other major growth based investments that they want to deploy.
Speaker 3:
23:00
So these companies are doing the buybacks actually performing 4% less. So I just want you to know, you may think, oh by backstory thing and they can be, and they are. But from an investment perspective, those stocks are often value based stocks. Not always. I'm not saying that, but traditionally that's what they are. And there's a reason why those may underperform related to that. So you've got to understand how all of those things work together in making your decision. And sometimes, by the way, I like to share this analogy Jim, and I know people tease me about analogies and how I love to use those stories. But you know, stock can do one of two things. It can go up or it can go down. So I think about what if a stock was valued at $10 so, and you were, let's say the stock is like equivalent to being on an elevator and so you're going to get in on floor 10 and then let's say it's a 24 company.
Speaker 3:
23:55
So do you think the stock's going to go up or go down? So if you think it's going to go up, you're going to hit the up button and the elevator by it at $10 and sell it hopefully for more than $10. Yes, that works. But there's also ways to make money in the market that if you think the stock's going to go down and it's at $10 you're going to hit the down button and write it on the way down. And not everybody knows how to do that and you need to have professionals that help you. But I shared that with you is because there are techniques no wind to get on the elevator or do you want to go on an escalator? I don't care which one it is, but it helps people think through what's the right trajectory because even though we've been in a fast growing market, there's some very overvalued stocks out there that maybe you can still make money on writing them the other direction, but you just got to do it smart and with the professional and like I've said, professionals are so valuable. Helpful for you. Jim, you and I talked about this social security analysis. If somebody wants one of these, let's just give our phone over. Easy way for you to do it. (888) 419-8513 all we need is a copy or social security statement. You can actually go a social security website, download it super easy. Get us a copy. We'll make a free complimentary report. Send it over to you so that way you have access to it. (888) 419-8513 (888) 419-8513 it's simple. It'll help you out. You're listening to the wealth and wisdom radio network.
Speaker 5:
25:21
He seemed good times and bad times and he's got the gray hair to prove it. You're listening to wealth from wisdom would there until the same advisor, Ron Carson, he's a published author and he's 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.
Speaker 3:
25:41
You're saving and investing for your retirement and maybe you're trying to achieve a certain number, but you still wonder, is this really going to last? Am I going to have enough money in my retirement or have I saved enough? Hey, you're listening to the well from wisdom radio network. I'm Paul West, my host, today's Jim Caldwell. And this is really the only show that you should count on straight forward and objective advice. And so today we're really talking about the most frequently asked questions and concerns about saving for retirement. And this segment we're going to keep talking about the skyrocketing cost of healthcare and how we can help give you advice on saving thousands of dollars in taxes in your retirement and healthcare. And part of this advice, Jim and I know we've said is be a fiduciary. You heard in our prior segment, send your advisor. No. Are you a fiduciary?
Speaker 3:
26:29
If yes, great. You're in a good spot. If no, I'm just telling you they're putting their interests first ahead of your own simple question. Ask Them, put it in writing. Put it in writing. You want that answer back. Guess what? Gym In writing from them. So, and by the way, I mean you hear it, uh, certainly as part of the show. But Jim, the 2018 lists just came out again. Carson wealth again was one of the top rated registered investment advisory firms in the country. We're so happy with that because this is a testament that our clients get an understand that working with someone that's helping them with their financial plan, putting their best interest are first being a fiduciary and helping be truth givers and truth receivers. I look at it as I want to work with professionals who are just as good communicating with me about my investments as they are an actually manage them. I don't want to talk over me or talk under me or I don't want him to try to use big fancy jargon to confuse me or act smart. I just want to understand it. And that's anything in life that's like with taxes. That's with insurance, that's with all these things.
Speaker 4:
27:37
Well, I'm going to add to that and I know Paul's too humble to to bring this up, but Paul West was named one of the top 100 advisors in the United States, which also he is the number one wealth advisor in the state of Nebraska. So,
Speaker 3:
27:53
well, we have a great team, Jim. I mean, yeah, it's, it's awesome to be recognized, but it's certainly the team approach. But I think it's, you know, as we share on the show and they were all Jim or Paul or anybody you meet for our team, we're no different in the show than we are in real life. We're going to tell you what we think we're going to give you advice. And I actually, um, I had love when somebody says, Hey, I want a second opinion. And we tell them they're doing great because they walk away saying, I thought I was going to be sold something but they're not. And at the end of the day I look at it is if people need help, we'll help them. But if they don't, they feel even better knowing that they're headed the right direction on what they're doing and what they're thinking about.
Speaker 3:
28:34
And you know, one of the areas, Jim, let's talk a little bit about, you know, health care. So what's the one of the major tools or techniques, people use insurance and they use longterm care. I mean, and we think about it, the 65 year old couple. Can actually expect to spend 275,000 yeah, that's a quarter of $1 million you can expect to spend on healthcare and medical expenses. So one of the ways, techniques, some people use, I'm not saying it's right for everybody, but they use insurance. And so longterm care is one of those things. I mean, and now Jim, I think, what is it? The average cost is almost a hundred thousand dollars a year in stay in a facility.
Speaker 4:
29:14
If you live in Lincoln, it's $96,000 a year, right?
Speaker 3:
29:17
Wow. Lincoln, Nebraska, I mean, and people don't think our Midwest is the same as across the country. But it is. I mean, if you go look at the numbers and yet here, here's the other startling step. Seven out of 10 of you listening right now and us included, by the way, Jim, you know what me is will require some form of longterm care, 70% so there's things to look at. You either save enough use insurance as a vehicle. But here's something I gotta tell Ya is when you're using insurance as a vehicle, please, please put together a comparison from multiple providers. So making sure you are getting one the best solution for you and your family and to priced appropriately. No one likes over pain. Um, but also no one likes being sold a bill of goods. So you just got to hold people accountable. It's like remodeling your basement. Do you ever get just one quote? No, you get multiple coats cause you want to make sure you understand what you're getting for the price you're pain and the value that comes along with it. So I'll give you a great example, a great example here,
Speaker 4:
30:27
good household. But working with them for probably eight years, husband was, he's a, he's a workaholic all day long, doesn't have much extra time. Now he's getting closer to retirement. So we put together a financial plan with our wealth planning department here at Carson wealth and he'd always had this old contract, this insurance contract, and about 60,000 in cash. And he, he would never really entertained doing anything with it. Long Story Short, we sat down and showed him four options of what we call a hybrid long term care life insurance concept. And Lo and behold, after seeing that and tying it together with a plan, he said let's move forward through that. He was so comfortable and so excited. So just it took a while. It took the plan, we gave him the options, he pulled the trigger and off we go.
Speaker 3:
31:14
Yeah. And as neat because he got to make a decision on all these options you gave them on what works best for him. And by the way, if he then knew how it works in context of your financial plan. Correct. So like I, I can't imagine I'm going to an an, you know, an insurance based company, whether a Northwestern mutual or someone else and going and having them give me all this insurance but they don't know my entire financial picture. And I don't mean just saying like, oh fill out a couple pieces of information. I mean about your life, your dreams, your goals and how they all work together. Cause, guess what, that person, that agent sitting across the table from you, what are they thinking? How can I sell you as much as possible? What's my commission going to be on this? Yeah. Um, what am I going to do with it?
Speaker 3:
31:59
It drives me crazy. And by the way, I do believe in insurance and I think insurance is a great tool as part of a financial plan. But I don't know how in the world you go buy it without somebody knowing the big picture. Because again, I get this question all the time here at the Carson group, how much life insurance should I buy? A million, 2 million. I mean, that's a standard question we get Jim. And I love to look at them and say, I don't know. I said, I got to know more about you. I've got to learn more about you. I don't need to do you know these, you know, I love these worksheets I've seen throughout the insurance world of, Oh, it's six times this. It's five times that. It's four times for who? I mean what it needs to be is that needs to be Jim Caldwell's decision, Paul West decision on what is best for our families, not at what is best from a formulaic perspective.
Speaker 3:
32:50
By the way, those worksheets are built by those insurance companies for what reason? To coerce you into thinking you need what exactly what they have and to maximize the amount that you buy for them needs based analysis. Yeah, no, that's actually, that is the phrase that to what really is a needs based analysis of what that looks like. Always need though. Right? There's your stores. I'm not saying that it'd be you know, evil here. I'm just saying it to be a realist is know what you're getting into. I mean no one wants to be put in a buying decision where they don't have the knowledge. That's what I love actually the car industry now because it was one of the most painful things was to go buy a car before because you had no idea. You are stuck with the mercy of the sales individual you are working with, but now information and data has flipped over to the buyer side.
Speaker 3:
33:41
We can do all our research online. All of those things are out there. People are transparent. We understand any hidden fees and costs and buy backs and all at least back all these things that go with it so we can make an educated decision on what we're actually doing there and I love the financial services profession is coming back to this. I'm a little disappointed that everybody's fighting this department of Labor issue related to transparency and people being a fiduciary. By the way we hear it, the Carson Group have been doing that for a long time. We're actually advocates of that. So again, look at the people who are fighting it, people who are not fiduciaries and people who want to sell the maximum of their clients without actually being served and it's just going to catch up to him. Jim, all things do things catch up.
Speaker 3:
34:24
Consumers get smarter. They figure these things out and those that are head are going to be well more trusted in the future. Sure. A new talked a little bit earlier about being able to offer a number of, of hit upon a number of areas and know about, but a month ago we had an awesome social security workshop here. Got a ton of feedback, all positive. We had current clients, prospects. I mean it was fantastic just to pull a little plugin on Medicare. Medicare is another issue that ties in with so security, longterm care, health insurance. We are offering a workshop here at Carson wealth. It's Tuesday, October 2nd and Wednesday, October 3rd if you're interested in attending you just simply call (402) 330-0808 and or just send an email to info@carsonwealth.com and we'll get you signed up info@carsonwealth.com send an email or just send a text to that address and it will get back to you and get you to confirm for RSVP.
Speaker 3:
35:22
Jim, but I mean I think about when you're there and you're learning about Medicare, you're just doing it to protect yourself. So you want to be careful. You don't want to get an avalanche of extra taxes though based on your medicare filings or social security filings. And that's what this really helps out. So we just had those questions. (888) 419-8513 (888) 419-8513 and coming up our next segment, we're going to keep talking about those tens and trek techniques that can help a little bit more about the marijuana stocks and how life is like a box of chocolates.
Speaker 5:
35:52
How could you make your money go further in retirement? Learn how next unwell from wisdom with Barron's hall of Fame Advisor Ron Carson, is it possible you could pay fewer taxes in retirement and keep this money for yourself? You could learn right here and right now on wealth and wisdom with Barron's hall of Fame Advisor, Ron Carson. Hey, welcome back. I'm Paul West and you're listening to welfare wisdom. You know, we've been talking Jean
Speaker 3:
36:17
today about the most frequently asked questions we get from clients across the country and especially here in Nebraska about am I actually going to run out of money in my life? When can I retire and how am I going to make sure my family is taken care of? And so I like to talk about this gym and we're getting into a lot of things here in the last segment, but there's a lot of people that are either afraid, they're embarrassed, you know? But I actually say the reason why people don't put the right financial decisions in place is because they're selfish. Why? And you're, you're not in grinning at me and you're like wearing the world is Paul going with this today? It's because they're selfish is, is like they think they know more than they do or they want to control everything. And by the way, when you work with a true professional, you still control everything.
Speaker 3:
37:10
You're just interesting. Some of the decision making to them, it's like, I'll give you an analogy. You still own your own professional sports team, but you're just hiring them to be a general manager, making sure you're authentic and defense is working well together. The players are working, you're bringing the right people on the field, your insurance is working, all of those things, and that plays a critical role. And we were just talking about marijuana stocks earlier, right? A general manager's going to be able to say, hey, you know, if you want to really buy some, okay, you're playing offense, but you are throwing, uh, down the field pass and super deep. I mean, it's a 50 yard pass and you're hoping you connect the boy, guess what? You could get sacked and loose some money because it's high flying. It's the wild, wild west at this standpoint.
Speaker 3:
37:56
I want to GM though that can outline the risks and rewards that go with those types of decisions. I don't say, Oh yeah, that's a great idea. I saw that on CNBC to do it. Guess what? They're just trying to sell advertising. They know that's popular at the moment. It doesn't mean it's what's best for you. So let's talk about our sixth strategy on today's show, and that is managing your overall asset location and having the right amount of diversification that makes sense for you. And this can tend to be our big trouble spot for clients. I'm Jim, I'm just thinking about, you know, my 20 plus year career, we're actually on the longest bull market in a long time. We're over years. I mean 2008 seems like a lifetime ago. But if you remember what happened, 2008 a major market reduction, 38% I mean, so think about this right now.
Speaker 3:
38:48
If you've saved $1 million for retirement and you're retiring in the next three years and you're $1 million fell, because right now you're invested in s and p 500 fund and your retirement fell to 600,000 is that going to change your decision? That's going to hurt. That's going to hurt. I'm crying right now. Even think about it, Jim. It's, yeah, it's awful. But if people who didn't protect themselves, and I think about, I mean all these people that retired at the end of 2017 so what do you have to do? You have to be go into what we call downside protection mode. We want people to still make money, but it's a very big concern. So if you're listening right now and you've heard your friends making more money because they're invested in more growth based stocks or they've bought, you know, the Facebooks, Amazons, Netflix, alphabets of the world, is it time for you to be chasing that? I'm going to tell you it's not. You better have enough money in what we call downside protection. So that way the worst thing you do is, again, if I go back, you had $1 million. If you fell to 950,000 probably not going to change your mind on retiring again. If you go down to 600,000 like what happened in 2008 or back in 2001 ish that you wouldn't retire and I'm going to tell your, your sleep factor goes through the roof in terms of inability to sleep.
Speaker 4:
40:12
So we had a, we had a couple come in last week. They wanted a second opinion and we sat down, we were having a great conversation and it was, it was interested because most people are, are concerned about the market going down. They, they there, they were more concerned as how much more upside do we have. So we got into the defensive conversation about downside protection, but here's the, here's the cookie. They have five separate accounts and they felt like five separate accounts was diversification. They had a Roth, a traditional, a joint and to individual accounts. And inside those five accounts were basically the same holdings. They weren't diversified, they didn't have tax deferred tax free taxable, but they thought by separating by type was going to give them protection in a down market. You're not good. How's that going to work out? Not real well. Yeah,
Speaker 3:
41:03
it's going to be hard. I mean, and so one of the things that I want to share, so I love statistics as well, and this was shared by our head of research here with us, that 92.7% of top performing funds failed to remain and their top core tile two years later. So think about that. Some of them that's doing fantastic right now from an investment perspective, most likely two years from now will not be. So if you've made some money over the last couple of years and you've been smart, lucky, and your pay rate agile, all of the above and you've made money on, you know what, pick your favorite stocks, Facebook, Amazon, Netflix, etc. Is now the time to take some chips off the table to do a little diversification. When you think about it, the best businesses figured out, hey, we made some money. Let's figure out how do we keep making them money in the future and what made us money in the past isn't going to necessarily make us money the future.
Speaker 3:
41:59
I know I've told this story before, but I share it again. Blockbuster entertainment is one of the classic examples of this is they wrote something too long. They didn't adapt and didn't make change. And the same way it could be said with your overall asset allocation, because the typical actual, you know, bear market when the next one happens last 1.4 years. So basically 18 months I think about that. And by the way, the average loss over that time period of that 18 months is 41% ouch. So yeah, I would probably understand, we can say a lot more words, but I don't want to be fined on air hair. So it's, as we think about it, you have to think through how can you protect your portfolio the best, and this is where I say people are financially unprepared, so they may be financially successful gym, but notice the difference unprepared.
Speaker 3:
42:57
So right now if you're sitting there and you're thinking in your mind, you're driving down the road, you're sitting, listen to us watching the husker gate right now. Imagine financial success versus financial unprepared and how can you actually be fully prepared? And what I say is, I mean I think Jim, I think you shared this with me is did you meet with your advisor and is it a talk session or is it a listening session? I'd rather go someone who's going to listen and understand rather than talk to me. And don't you think, I mean you've been a coach before. I mean is a lot of what we do as coaches is we need to hear what our team's thinking and we need to figure it out and hear from our players and our team and I I call it, we guide you decide and helping put the right things together. And a lot of times you know, you can have your say. Um, and so I think those are important and there needs to be the right two way street of communication and building your asset allocation plan and forming the right amount of diversification.
Speaker 4:
43:55
And you know, you talked earlier about defense, I'll use it, a Gif or a football analogy. Since we are still in the fall here, we get God gay. We tend to be good at those. So we like to talk about them. You know how many times you turn on the TV pick any game. It could be an NFL game of college game and every quarterback has a goto receiver. Somebody they can count on to catch a ball play, usually on third down. You can almost count on that quarterback going to that go into that receiver cause they don't, he doesn't spread the ball around. Defense gets a little smart. Now they make an adjustment in their scheme, which is the same as making adjustment in your portfolio and soon they're going to make
Speaker 3:
44:32
a big play and make an interception. Yeah, I mean you're, you're right Jim. I mean I think people who have smart, they figure it out. And I, I guess I would say, let's keep it on the game analogy. Here's what stage of life are you in and what stage of the game are you in and are you prepared or is it too late to recover? Well, it's probably not, but you need advice so you can give us a call. (888) 419-8513 again, there's no sales pitch. We are a Barron's top firm we've been on Forbes were on Fox, were on all these places. Why? Because we have these customized listening sessions to help you out. Give you fiduciary advice. (888) 419-8513 hang on, Paul Weiss. I really enjoyed the show with you that a gym and you've been listening to the welfare, wisdom radio network
Speaker 5:
45:16
risk, 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:
45:30
Okay. And here's the legal Mumbo jumbo. The opinions voiced and Wellframe wisdom with Rod 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 assures 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.