Wealth from Wisdom

Critical Steps To Take Now, Before You Call It Quits

August 25, 2018
Wealth from Wisdom
Critical Steps To Take Now, Before You Call It Quits
Chapters
Wealth from Wisdom
Critical Steps To Take Now, Before You Call It Quits
Aug 25, 2018
Carson Wealth
Show Notes Transcript

Do you plan to retire in the next 5 years? If so, that clock is officially ticking. But, there is a lot more work to be done than you know. The planning and preparation you do now can determine your success or failure.

Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and welfare 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 assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an sec registered investment advisor,
Speaker 2:
0:31
Doug 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 203 the skyrocketing cost of healthcare and retirement could now run 350,000 for retirement. Today is a whole new ball game. It's loaded with challenges, obstacles, the trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with Baron 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. Do you plan to retire anytime in the next five years? If so, that clock is officially ticking. I can hear it now, but there's a lot more work to be done that you may have any idea or really appreciate in the planning and the preparation you do now could determine your success or your failure.
Speaker 2:
1:25
Welcome to wealth and wisdom. I'm Ron Carson. If my cohost Paul West today. Then we're going to talk about critical steps you must take now, now before you ever think of calling it quits. Remember, saving and investing for retirement. It is great start, but it's what you do with that money that really matters and if you retire and have a covered all your basis, you're setting yourself up for big financial disappointment and fall. So what are the specifics that needs to happen? Leading up to that, we're going to talk about it. We're going to talk about tax efficient strategies. Also, you've heard a lot about claiming social security. We're going to give you some numbers on the number of rules and variables involved with that. And then also making sure that you've got a plan for income because today there is a way to get decent income. You're not going to get high end income. But I see a lot of people Paul out there and money market funds today almost getting nothing. And that is just plain silly.
Speaker 3:
2:19
It is around. I'm actually, you know, watching these interest rates rise to watch what people are actually doing. And we've even been watching all of the custodians we work with Ron and if my understanding's correct, when the Fed loans money to banks, they all use the same rate, right? They all have the same borrowing rate. So how in the world of these banks having such a big difference on what they actually pay the consumer, so how can one pay 50 basis points and the money market and the other's pain 99 what does that tell you? Who had done it? Tells me is what's in the bank spent best interest versus what are they passing through to you as the consumer? Because they all
Speaker 2:
3:00
borrow at the same number. There's, there's no discrepancy here. Well, and a little bit of that, Paul, is how much is that? How many assets does a bank have? So if they're actually loaning money out and they've got demand for money, that can dictate the rate, but to the consumer, it doesn't matter because they have the same FBIC insurance. And so you want to go to a bank where you can actually get a higher yield, but, but the best of the banks, from what I've seen, aren't close to going to on a short term Muni ladder. It's tiny. And especially if you look at cds, Ron, and if you can do the municipal, the tax benefit, by the way, when you hear the word Butis Bowl, a lot of times you get this focus of, I'm going to buy a bond and let's just use, we live in Nebraska.
Speaker 2:
3:44
So you think I've got to buy a municipal bond based in Nebraska? Guess what? You don't have to. There's some times the benefit of using a national municipal ladder is so much more powerful, but you get the emotional bias like, oh, I want to buy it. I live in Douglas County, Nebraska. I want to Douglas County bond. You don't have to there. There may be some but you may be taking more risk or worse yet you're getting less return and the reality is that why are you buying that bond? You want the tax benefit that go along with it every single time. Yeah, if you just took, I mean if we look at everybody that comes in here looking to start a relationship with the Carson group, cash is something very rarely are people maximizing and they're sitting out there with a lot of cash and and it makes them feel comfortable but at least get it in short term cash equivalents and you know, making an extra two or 3%, especially as you're leading into the five years leading up to retirement.
Speaker 2:
4:39
Not only can it give you some additional principle, but also gives you the mindset. There's some other ways of getting income once you start withdrawing income. Paul want to change directions here because this is probably the most critical decision that someone's going to make. We used to say it was a planning process and it's still up there as one a but one before one a or one B. Um, and I was in Florida this last week. We opened two offices in Florida, uh, and we did client events and meeting our new clients. I would ask a question in the room, how many people know the difference between a fiduciary and a broker? And this still surprises me, Paul. How many people do you think no? What a fiduciary is or can even attempt to poke a little bit of, of information in that direction. Yeah, I'm going to guess a one and three. Actually I knew what a fiduciary one in three. So one and three. You were saying a third, a third row. So I gave approximately nine nine talks when I was in Florida and I had it anywhere from 50 to a hundred people in each one of those. Okay. So let's just call it 500 people. 500 people and less than 10, between all of them, I [inaudible] are 10% people. Okay. Somewhere between zero, a couple. I had none. Well that's scary and, and I'm going
Speaker 2:
5:58
to give a partial credit for, um, uh, the couple that raise our hand and said, I think that it's better to be with a fiduciary then our broker, they didn't know what that meant. Exactly. And when I, and I still to this day, Paul, I've been in this business since 1983 even when I tell people if I were not in financial services and someone tried to tell me what I'm about to tell our listeners, I'd go, that just can't be, it just can't be. So I'm asking you trust, but verify. Let's operate in a fact based environment. So go do this research herself. There's what a broker and a fiduciary and it's pretty simple, but it's, it's huge. When, as it relates to you as a, as an investor and making the most important decisions to set yourself up for. I hate the term fund retirement, let's call it financial freedom.
Speaker 2:
6:48
A broker and a fiduciary, a fiduciary is required by law to put your interests ahead of theirs. They're required to sit on the same side of the table as you to always start with your interest first and work backwards from there. And everybody listening is gone. Yeah, well that's it. The broker do that. No, a brokers only requirement is suitability. So if what their recommendations are making to you is quote unquote suitable under rules or regulations by Finra, not the Securities and Exchange Commission. There's two different sheriffs there in town and they give you a prospectus in that prospectus has anywhere from 50 to hundreds of pages of legal leads and they can basically within that prospectus, do whatever they want to you as long as they disclose it. And it's suitable. And we've always said here at the Carson Group, Paul, that just because it's legal doesn't make it right. And this is where buyer beware. There's no reason not to work with a fiduciary. Just think how much you stack the odds in your favor when you have someone that's required by law. And if, Hey, I'm not saying that there's bad things that happened in the fiduciary world cause they do the registered investment advisors, but at least you're going to have people who are going to have real consequences not for not putting your interest for,
Speaker 3:
8:07
yeah. And Ron, not only is it illegal, but it's ethical. So we're all held to an ethical code of conduct that if we don't behave that way, then we're gone. Then we can no longer participate in this. And that's not everyone else. They're gone by not he hitting their sales quotas. Right. I mean if they're not bringing enough money, and especially for our Wall Street based firm, they're not hitting their quarterly earnings. Their stock price goes down. Who gets the pressure? The Salesperson, Aka the broker to go out and hit everyone else up. I mean, when I think of the word broker, you ever been to an event run like a fair or festival and somebody is there trying to pedal, and I'm picking on him here for a second, but like, um, satellite TV coverage. So direct TV type service, don't you just feel like they're hounding you? They could care less whether or not you want that coverage, they want to sail across the desk. Again, I'm not picking on the real estate here.
Speaker 2:
8:56
You're saying someone might sell me the service even though I can't afford or don't own a TV. Yeah,
Speaker 3:
9:00
yeah. No care or concern whether you own it, whether you like TV and whether you have the financial wherewithal to afford those monthly payments. Same thing with the home. If a realtor is trying to sell you a home, do they actually go view your balance sheet? They make sure you have a, a statement that you can buy it, but they actually say this homes in your best interest because of you want that type of home. You want a big backyard. Do you want this? You want that. End of the day they want to sell you a home. Why? Because they get paid. And I think that's important for every vertical to look at this. And especially when you're dealing with publicly traded financial services companies or the brokers, the Edward Jones, the wells Fargos, the Merrill Lynch's, the Morgan Stanleys of the world. When they don't have that same fiduciary responsibility at the end of the day.
Speaker 3:
9:47
Ron, I mean I can imagine. And by the way, I'm just like you. I got in this business 20 years ago. I graduated from the University of Nebraska Lincoln. I didn't really know what I wanted to do and financial services. I took a job here in Omaha and I got to learn. And what happened was my eyes got really big and I worked for a broker dealer. We worked with thousands of brokers and a few advisors across the country. And it was amazing to me how many people, I would've never entrusted my own family's wealth too. Cause once you get behind the curtain and see, here's how people actually give advice. You really realize these people, they're great people, but they're trying to necessarily, because they're a broker, they want to put food on their table. How do they put food on their table for their family? They got to sell you something when they got to sell you something. Whose interest is that in theirs and not yours? And I think it's important for you. I can't believe Ron. So essentially 10 out of 500 people actually, I mean that's what, 2%
Speaker 2:
10:51
and Paul, that's being generous. I'm saying I even gave credit for those that have that it was supposedly better, but they didn't know why it was better. Right. And I tell you the other fun thing though about being down there and you know, I tell the story about how I started, grew up on a farm just north here, man. There's a lot of people around that have connections to Nebraska, have relatives that live here, lived here, um, over you at like central Florida was I was actually in Orlando and there are still upset about is taking the quarterback away and I'm like, Hey, you don't get it. We loaned them to you to make history. It's time for him to come home. I'm sure they went with that argument. So Paul, we're talking about critical choices, forks in the road. These are big, big decisions that need to be made about taxes, social security, you know, figuring out whether it's a broker or a fiduciary, really truly understanding that we can talk about these things all day long.
Speaker 2:
11:41
But the specific strategies are unique for every person. And even a minor difference in all of these, your assets, your risk tolerance level, longevity could trigger a shift in what you're, what's best for you, what's best for your strategy. And that's why what I don't like Paul's, all these rules of thumb, generally speaking, best generally speaking, that it's never that easy. It's never one size fits all. And with or without as you need a plan specifically tailored to you and your family cause there were no shortcuts or you've actually gotta do the work. And you were saying we had someone interested in the from last week and they were comparing us to Fisher, uh, versus comprehensive planning. We do. And you know, if someone wants to just, just, just, hey, I just want to invest the dollars, that's the easy part. Cause the investor behaviors where it's going to be won or lost. Come in and let us have a listening session. Get a second opinion. If we can add value, we'll tell you if we can't add value, I'll tell you that. Eight eight 84985138884 nine 85 13 I'm Ron Carson with Paul West and you're listening to often wisdom,
Speaker 4:
12:48
trust, transparency, accountability. These are the values that drive Ron Carson and Carson. Well, you're listening to wealth from wisdom with their install of theme 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. Unwelcome wisdom with Baron, Taller Foam advisor, Ron Carson. Will you ready
Speaker 2:
13:13
tire anytime in the next five years? If so, that official countdown is going on. Just imagine this huge clock with time, fast passing by it. If you don't have it all buttoned up, a really good proactive financial game plan, you could be setting yourself up for big disappointment. Welcome back to wealth and wisdom. I'm Ron Carson with my cohost Paul West. We're talking about critical steps, things that you need to do. We covered fiduciary versus a broker. Also maximizing and getting the most out of income where it was talking about cash. It's one of those throwaways where it's not only important maximizing your cash going into it, but also, uh, once you get into retirement, make sure making sure you're getting the most out of cash. And Paul, you're up a good point too. People just have a question about individual securities that they own. We see a lot of large concentrated positions. They have a taxable gain in it. This is one of the big mistakes people make is they're over concentrated or exposed to one area that can really have a devastating impact. You know, it's really great if it goes up, but if it goes the other direction, it can throw a monkey wrench into great retirement plan.
Speaker 3:
14:19
Especially if you work for an employer right now where you're allowed to invest in your employer stock and your, um, 401k plan. That's something we really, really have to watch out for. And I think it's good. I mean, I think it's good to have some, it means a lot to you. You're personally entrenched, but there's actually techniques. We're not going to go through them. There's way too much today in detail to go on and like a radio show. But if you own employer stock in your 401k plan and if you want to understand how to pay less on taxes with that, actually you just give us a call. We'll walk through that. We got under, see a little bit more your specifics, but (888) 419-8513 we'll walk through that. And here's another fascinating thing. So we're on, I think about, we tend to have you say that number any faster trisomy in that one more time.
Speaker 3:
15:02
I can't, do you want me to start with so I don't even, I eat eight four one nine 85 13 all right. I've been practicing that one. So I need some more coffee today. Uh, but I'm thinking of this, so I work in the financial services industry. So what do people tend to do if you've got your own account, your trading online at TD Ameritrade or fidelity or wherever it may be, what do you probably look at? Other financial services companies? We as individual investors, so if you're listening today and you're looking at right now online that your account and listen to us on the radio, I'd be willing to say over 50% of you are overweighted in the profession you work in. So you say you're in transportation. So what if you work for a Union Pacific here in Omaha, you probably have more transportation stocks, an allocation of that.
Speaker 3:
15:51
Why? Because it's something you know something about and I think that's good. But the danger is is you're getting very industry specific and if your industry comes out of favor, you're going to end up making a decision that is not in your best interest because you let emotion coming to play and run. I don't think we talk about this enough on the show. You actually said this earlier today and I thought this was brilliant and I think we all should share it, is markets don't dictate people success. People dictate their success because they ride a wave and emotion. And what we were talking about earlier today, so the market started this year, the first two months were down. We had a, we had a, I'm not going to call it a volatile, even though most people did, we had a normal first quarter of the year. We had a normal but volatile compared to the recency effect of 2017 so quarter two and here into quarter three we're back to less than normal, which is not volatile and people have already forgot that their accounts can go down again.
Speaker 3:
16:54
So there's a recency effect of people that hedge their investments and wanted to protect them on the downside. And by the way, downside protection is one of the best things you can do for your account. People are now starting to think again, should I get away from downside protection because there's not any risk in the market. So I'm going to go back to what you said. The market isn't dictating their success, but here's what's going to happen is those people are going to say, you know what? I'm going to take more risk. I'm going to go buy another s and p 500 fund or do whatever and what's going to happen here in September the market? Well then maybe go down, they make a behavioral based decision at the wrong period of time. So they did turn their sex, their success, what else goes with it there? So yeah, football, right? They can't actually, in today's world, so that's our problem. It's their choice. We're in a modern age. The market will do whatever it needs to. If you're just going on behavior, you don't have else, you don't know
Speaker 2:
17:50
your rest of budget, you don't know your family index number. The market will do whatever it needs to do to prove the largest number of people wrong at any given moment. And so it you, you people want to be in the consensus and if you're in the consensus you're going to be wrong. You want to be a contrarian. But also just not being a contrary to be a contrarian. You need to know why you're taking a position in something. Here's an interesting stat we've set up before, but from 1926 to 2017 bull markets lasses lasted an average of nine years and this bull market turned nine years old on March 9th, 2018 so we're already like live months beyond that and the typical bear market lasts 1.4 years with an average loss of 41% now, I was asked this question every time for every event I did is where the market's going to go.
Speaker 2:
18:42
We don't know. I mean everybody, if, if any, if you take the Barron's roundtable every single year, Paul, there are actually net net. You're better off flipping a coin because you can't predict the short term. You just can't. But Buffet says that you buy companies good companies at a discount to their actual intrinsic value and your patient are markedly relocation centers. They relocate well from the inpatient to the patient from then from those that don't have a game plan, to those that do have a game plan, it's so efficient. What the market does has very little to do with how you're going to do, um, because you're good dot. Going to do the right things, right? It's all just navigating your, your apps. You're absolutely emotion, your emotion. It's like, you know, the market is not cheap here. The fact is you can just look at history, but that doesn't mean it has to go down just because it's expensive or fairly valued.
Speaker 2:
19:33
It can go up. The economy is strong beneath. We saw this in [inaudible] 99, um, I remember again and you know, famous 1996, Alan Greenspan's comments, irrational exuberance. Well, you know, he thought the markets were overvalued in 2000 or 1996. It was three more years than you would have left an enormous amounts of appreciation on the table. Had you followed his cute went down the next day. I remember he was giving a talk and woke up the next morning. Y'All markets or down based on that comment and then people panic and they sell. So just having a plan, understanding what that plan's supposed to do and getting hugging your wrist benchmarks today is more important than ever.
Speaker 3:
20:11
Yeah, I think so. I love your statistic there. Um, but actually you just go back to when the market started. Everyone thinks that the market performs. And when I say the market, I mean I think the best benchmark for people who look at is the s and p 500 today. If you go back to the 1920s when it started, the market has not earned per year 10% and for some reason people believe that, but they're wrong. It's actually right next to 8% Ron. So it's a w and that means you're taking full risk. So like you just said, if you're willing to take 8% up year on the upside, you're going to have pockets of time that the market is down 41% on average, on average, on average. So right now, let's think about that Ron. So if I had $1 million in an account, I'd be willing for it to drop essentially to $600,000 if I was taking full market risk and I see this happen more and more and more.
Speaker 3:
21:05
I'll give you an example. Global based stocks did really well last year. That is once that made a lot of money and this year they're a little bit out of favor. We actually think they look a little cheap at the moment, but people are willing to get out of them because they haven't performed great over six, seven months. That's a bad decision. That goes back to the market didn't dictate their success in the short run the investor did because people want to move out of it because short run is not maybe performing as well. If you really think that way, I mean shouldn't you just switch your employer every six months if you're not getting paid the maximum for your employer, shouldn't you change it every six months to go do that? I'm going to, I'm going to guess if you did that, you're not going to be doing very well financially because people want to look at longevity. They want to look at it for the long run. Overall. I actually think about, we joke here at the Carson Group, um, you know, we want everyone to be lifetime stakeholders here at the firm. Yeah. We joked did you get your Carson group Tattoo because we want everyone bought in. This is a longterm decision and we tutored organization and are going to have some ups and some downs, but as it keep the end goal in mind.
Speaker 2:
22:09
Yeah, I was reading about this. Um, and some of you know, I'm big on in the future and technology and especially artificial intelligence and as read about a software package that it's not inexpensive. It's like we're looking at investing in it 50,000 a year. Um, but it's, I mean it's, it's a, it's a marginal investment for us, but for an individual to spend $50,000. But what it does is it tracks every single trade you've ever made. And it keeps track of how those investments actually do into the future. And so when you sell something, it says, are you sure you want to sell this? The last time you sold something you held for this amount of time in this sector and this environment it went on to gain x, Y, z over what you rolled the proceeds into. So it really got a rear view mirror.
Speaker 2:
22:56
It is, but it's giving you real time feedback on, you know, just checking the behavior side of it, you know, double check the fundamentals that you really want to pull the trigger on this because your track record in this sort of environment, right. And this setup has not been good and that's just one example. Or artificial intelligence. Paul is going to be huge. Um, and just the ability to, and I and I in my talk to other financial advisors, you know, they're comparing each other. This is competition. The competition is coming from over the top. I was reading an article over the weekend about singing from singularity hub. You know, Alibaba and Tencent in some of these companies, they were so far ahead of the US. It is shocking to know where they're at and what kind of capabilities and kind of influences they're already having mayor and eventually they'll have here in the u s and so you want to be and have technologies that are actually exploiting, taking advantage of that, not buried in the old archaic legacy systems that drive so many financial services firms.
Speaker 2:
23:56
Yeah, I'd love to see the data behind that Ron, to say, hey, of the last 10 trades you've made on a market's down day, 80% of them turned out to be the wrong decision because you got scared consumers. And we know Dalbar tracks of stuff. It's like four to 5% a year. Is that the gap between stuff that most investors held and what went on to do when they didn't hold it just because he held it absolutely positively at the wrong time. Yep. And here's another area, Paul Social Security and we talk about it, but it's a big asset for most people and it's complicated. It's confusing and it's riddled with with trap doors and your decision. How to, when you take this is a lot more to it than you think. You could trigger lots of taxes. You could double your medicare premiums. There's all key things that can happen. Ultimately, it could cost you thousands of dollars if not more, and Forbes estimates there's more than $10 billion every single year. That's 100% left on the table. We've got a five point social security analysis at eight (884) 900-8513 give us a call. Let us help you take the guesswork out of this or just come in and have a listening session. You know about what it is and how we think you should claim social security. Eight eight 84985138884 nine 85 13 I'm Ron Carson with Paul West and you're listening to welcome.
Speaker 4:
25:21
He seemed good times and bad times. Hands. He's got the gray hair to prove it. You're listening to wealth from wisdom with Barron's hall of Same Advisor, Rod 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. We see it with nine out of ten first time quiet
Speaker 2:
25:44
meetings. It's been forever since they've updated their investments inside their IRA or 401k and they're taking on way more risk than they know or need for that matter at this stage of the game. And it's a recipe for financial disaster. Welcome back to wealth and wisdom. I'm Ron Carson with my cohost Paul West. If you're thinking of retiring anytime within the next five years, o'clock is officially ticking. Today we're talking about critical steps you must take now for you ever think about calling it quits. And Paul, you want to do things we've seen people retire and then come in and say, Hey, what's it look like? You really, this is a, this really is a five year process of the next segment. We're going to actually talk about what you're doing five years out, four years out, three years out, two years out, one year out. But today, um, what are some of the things and that, you know, we talked about risk a lot. What's the downside? I was taught if you, if the, if you couldn't stand the downside, the upside will take care of itself. I think we've ever had only one client ever that complained to somebody about making too much money. And that was our client in Tennessee because he realized with another firm that if you made that kind of return, he was taking too much rest. That was a pretty astute call by the way. And really wanted to have downside protection.
Speaker 3:
26:58
Yeah. Well it's, I mean, two things. People want to make money and people don't want to pay taxes, right? Ron? And then they're willing to take varying amounts of risk. But when push comes to shove and you look at risk across the perspective for everyone, they don't want to take a lot. So we have to think about ways as an investment advisor to help them think through it. And I think that's something we're really good at is like listening to people's preconceived notions and not immediately challenging them because sometimes they're right. Sometimes they're absolutely on the direct pathway to success the most of the time they're not. And here's why you're not. So let me just give you an example. We have a new client, Ron, that has been with us for less than a year. And so what they did is they just retired and they've put together a great asset allocation.
Speaker 3:
27:48
Their asset allocation is focused on downside protection. They don't want to go below a number. While what happened in January and February, the market went down. So they went below a number and they wanted to get back to the number, and I actually call this a rock bias. What I mean by a rock biases, they've picked a rock that is a number, call it $1 million. They've picked an if they're below $1 million, they can't emotionally function without getting back to that rock. And until that rock is reset back in the right place, they're struggling. So what happened? They've got a game plan in place. They can live life the way they want to, but because the market moved a little bit in the first quarter, now they want to take more risk. So what's going to happen when they take more risk if they, they, they now are going to potentially never get back to their rock.
Speaker 3:
28:39
And maybe they do and they want to get back to that rock facts faster. But they're only decision. He right now is how fast can I get back to my rock. They don't even care the amount of risk they're going to take and they're going to make end up a horrible decision if we would let them do that because of you cannot let a single number. So if you want to get to 1 million or 2 million, that's a goal. But goals change, right? We, everybody updates their goals every single year. Actually, we here at the Carson group, we don't even do three year goals anymore or five year goals because the world changes too fast and we can't let that happen. So don't let our rock number for yourself determine whether or not you're going to make a trade. And we see this by the way, people writing it down or you give him some of the best advice we've heard is, let's go back to Enron. What happened here in Omaha? What happened? It started going down. Well, if it only gets back to x, I'll get out there and then I've seen it. We've seen it with level three. We've seen it with Lucent, we've seen it with plenty of things that if it only gets back here, then I'm going to sell. Sometimes
Speaker 2:
29:43
getting out as the best thing you can do and you gotta you gotta take some losses and just move on. There was a big savings alone. Most people aren't going to remember that, so it was ha heritage federal here in town. I had a client call me up and he said, hey, I want to buy x amount of, here was I'm heritage federal for a nickel a share and I think it had been high, maybe $15 he goes, well, at a nickel, it can't go any lower. So if you put candy, let's just say you put in $100,000 at a a share versus 100,000 at $15 a share and the stock goes to zero, how much you lose in both cases. I'm pretty sure it's the same amount, same amount of it doesn't, Barbara doesn't care. You just get more shares that go to zero.
Speaker 2:
30:20
And that's what happened with heritage federal. Obviously that's what happened with Enron. Um, and you do, you do need to pay attention and have a disciplined approach to understand why you do or don't. But we talked about broker and fiduciary. Let's just talk a little bit about our friends. Wells Fargo, who was myered, I admired him, obviously a buffet, you know, a company and they're in the news again, I mean you just think it can't get any worse. And the US attorney's office convened a grand jury to look at accusations against Wells Fargo, um, on actually gaming the housing texts tax credit program where, uh, in late June, wells Fargo a took out this two page advertisement in the New York Times saying they wanted to rehabilitate its reputation trumpeting as financial financing of billions of dollars of low income housing. So they actually use this as an example of how we're such, we're good, we're back, we care.
Speaker 2:
31:19
And the signature effort has become the most recent example of its failure to revamp it's trouble culture, which has featured phony accounts scandal, improper alteration of documents, a business borrowers, and the improper collection of fees and its penchant fund business. The banks wealth management unit is also under investigation for pressuring clients into rolling over their low cost 401k into more expensive alternatives that they have. And this is an, by the way, I went around and said, how many of you actually have accounts at Wells Fargo? And a few cans went up. I said, why do you stay there? And people were like, yeah, you know, it just, it's that kind of culture. It's like, first of all, company, if you recommit means you weren't committed at one point, but how long do people stay with this when there's just one scandal after another? Now they have an improvement guilty here, but you know, they did pay a $2 billion settlement, you know, earlier. I think that was last year. 2 billion. 2 billion. Yeah. Yeah. Whether it be lots of money and um, and this does it mean you'd go, well, does this impact me? You sure does because it's a taxpayer program. So it means that a cost taxpayers hundreds of millions of dollars of additional money because of the scandal and price fixing on these tax credits. So, so Ron, let me think. If you're at a financial, whether
Speaker 3:
32:40
it's a bank like wells Fargo or you're with the right, um, a regional bank or whatever it may be, they're making money off of you one way or another. But whether it's in lending or credit or trust or ever, but they need to disclose that to you. I've actually a recent article, so many do it yourselfers call us up, Ron, and ask us what we think about vanguard. And we think vanguard is a very reputable company. However, they also, by the way, they're not nonprofit [inaudible] as, I don't know, something wrong here. And I'm pretty sure I'm right on this one. So now they came out here in August of 2018 and said, hey, we're going to test a program of offering e f e ETF trades for free. There's about 1800 of them on the platform for free. So if they're a for profit organization, how are they offering trading for free if they're a trading platform?
Speaker 3:
33:33
I don't know. I mean, they go out of business if I'm a business person, right? So they have to be making money somewhere else. There's just no doubt about it. So if I'm sitting there, why are they doing this one to make money somewhere else, but to, and this is my huge, huge concern, is this is a disaster for clients are on this. And here's why. Because at least when you're making a trade today and it costs you $8 or $10 or $5 or whatever the number is, I don't care what it is. Yeah. If you're going to get the treaty, you're just going to think about it. This is going to cost me x, but now if it's not going to cost me anything, you're going to start trading more and more. Why? Because you think, well shoot, it's not going to cost me anything. Therefore I'm going to make a trade. Well, that's craziness because why are you making the trade? Are you doing it because your neighbor talked about it? Are you doing it because you did two minutes of research? Are you doing it because you saw it on CNBC? I don't know, but I just think this free trade stuff is a bunch of Baloney because they're still making money and they're creating behavior that is actually very, very bad for the consumer.
Speaker 2:
34:37
Yeah, no, you make a lot of good points there, Paul, and he had it just, man, I want to trade your brains out is not good. I mean, look at all the day traders that quit their job back when in the 90s when things were hot, you know, so hot. The more they traded, uh, but for the most part the more money they lost and the quicker they took their accounts down to zero or to a point where they just couldn't afford to be retired anymore. And that's a shame because you work hard, you make sacrifices, you save for retirement and that's a great start. But now the second half of that is making really good decisions is so important to, to being able to get, I don't want to call it financially secure so you can stay in the lifestyle that you've grown accustom and see if you are a fit for us. If we can add value, we, we, we'll tell you. We'll show you how, if we can't, we absolutely will tell you that come in for a listening session. Eight eight eight four, nine 85, 13. There's no cost, there's no obligation, there's no sales fish and certainly no product for. This is your chance to learn what is different. What can we do to truly add value? Eight eight eight four nine 85 13 that's eight eight eight four nine 85 13 I'm Ryan Carson with my cohost Paul West, and you're listening to wealth and wisdom.
Speaker 4:
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, 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 Famer Divisor Ron Carson [inaudible]
Speaker 2:
36:12
to retire anytime in the next five years. If so, the time is ticking away, but there's probably a lot more to be done then you know, and planning and preparation now can be the difference between success and failure. Welcome back. I'm Ron Carson. If my cohost Paul West and you're listening to wealth and wisdom and Paul, I want to talk a little bit about just the count down of things that they should be doing. I want to talk touch on investments here too because there are, you know, there are some opportunities out there, uh, in the marketplace. It, you know, aren't necessarily geared to the market going up or down, but let's run through just a checklist quickly. So these are things that five years to the final year you need to be doing five years out. Just see where you stand financially. I mean is it within your grasp to be able to retire and what kind of income stream or are you going to have and make sure that reasonable assumptions are made because you don't want to get to the end of your, your life and not have it run out of money.
Speaker 2:
37:10
Too much life at the end of the money as we would say, four years out, take a look at maybe a retirement community. You know, one of the officers that we opened in Orlando with our partner down there, it's in the villages. You talking about retirement can be, what a cool. It's kind of like the epicenter for retired Paul the first time. I mean I'm, I'm, we're driving down the road and I'm seeing golf carts like dodge street going back and forth and they're colorful and they're big. I'm like, this is like something out of a Scifi movie. It was, and it's, it's real and it's so well done. And they're building over 500 new homes. They're a month a month. Think of that. So you may, but we'll look into it. I mean there's so many benefits to being input on the research and where do you want to spend the rest of your years and then three years out, put aside some time to contemplate what retirement will actually mean.
Speaker 2:
38:03
Like are you going to, I is your whole life, your whole purpose around that. And we have something called the blueprinting exercise. We can give it to you. Give us a call. Eight eight eight four nine 85 13 I wrote a book on this called the avalanche. Live your life by design, not by default, but this is a good time to take a personal valuation to say what's it going to feel like? What's it look like? What are the things I want to accomplish two years out now, two years out because you've got maybe some swing things that can be done and some income that you can move around. This could be the biggest tax savings opportunity and you want to really lay it, lay the groundwork. Then what they can do, especially for that final year, and then the final year. You want to look at, hey, where do I want to spend my money? There are no rules of thumb. Your income may go up, may go down. I mean your need for how much you're actually going to spend, but this way you can. There's a systematic process five years out, start putting some real effort into this.
Speaker 3:
38:59
Yeah, no, I think that's a great timeline of how those things work. And you know, back to your village, his comment, he must, people had to do research, right? And so how are you going to do research right now if you're listening, you're sitting at your computer, you're probably on a mobile device and you're googling it, you're googling the villages and looking into it and then you're going to start saying, okay, that looks nice. But what other people say about it? And I think we're in a consensus based society now and how we respond to things and you know,
Speaker 2:
39:27
do you do consensus fall? I do. And I, this morning I was on Amazon and I'm looking at who's given it five stars and I'm reading the review.
Speaker 3:
39:36
Yeah, it, it's, it's how we're wired now as human beings. We've been trained to think that way. Two things that one, do you really know who that person was? You don't. Who is giving the review? So they may think polar opposite for you. They may be a Democrat when you're republican or vice versa. I mean, you have no idea. Or that somebody who's a crazy spender and you're a frugal, but you know, even a recent example of this crazy or just crazy overhaul and maybe you're the crazy one. I mean, so I had some guests of mine coming in from New York to Omaha. And so what did they do? They sent me a text messages saying, hey, we researched all the best places in Omaha and we thought we should go to the steakhouse called monarch. And I responded back, that is true. It wasn't a buffet place.
Speaker 3:
40:20
And I said, what in the world is that? They said, oh, well we looked online and the consensus says that's the absolute best place. They'd never been to Omaha before. And I said, well, do you mean Mahogany? And they said, no, no, no, we mean monarch. And I said, well, what in the world is it? So of course I googled it, but I said, don't you think you should ask someone who's lived in Omaha their whole life, who likes to go out to eat like steak and likes to entertain that they may be, have a good indication of a better consensus then digital consensus on somebody they don't even know or don't even trust and don't even know who's in the same situation from them, whether tastes buds or economic on what they were looking for. And I think so many of us, Ron, even like with our financial stuff, we go do research online and we make a decision, but we don't go talk to people if I'm going to move to the villages, yeah, I may research it online, but not until I go down there and touch and feel and look at it.
Speaker 3:
41:16
And that's why I can't stress enough. Getting a second opinion hurts. No one, no financial advisor, US included. By the way, Ron has a monopoly on good ideas. If you can go get a second opinion from someone and get a good idea, your life could get that much better related to it. So if you want
Speaker 2:
41:34
a second opinion, eight eight eight, four one nine 85, 13. It's an easy way. Don't take consensus from everyone else. Take consensus from professionals that can help you with your thought process to figure out what's the right stake house for you and your family. Hey, by the way, what do you think the best steakhouses in Omaha besides my grill at home? Yeah, no problem. My Dad. I mean, it really makes the best, you know, that's my opinion, but we're, you know, we're, where are we to tell somebody coming in the absolute best steak and then, yeah, the best steakhouse. I mean, so it depends on, I'm going to say a little bit on how much they're willing to spend, what type of atmosphere they want. See, you're not, you're not going with me. Sorry. You just go with the best take and then let's assume all that rest of that.
Speaker 2:
42:20
This is the best piece of meat. And then we'll go, because here's, I'll give you my answer. All right. Uh, it's Mahogany and we entertain people from all over the country. They come in and even seafood, by the way, in the fish, they go crazy. But if you don't want to marathon meal, and I think Mahogany and I put them up, I've traveled the world, I put that place up against anywhere. They got it right. They get it right, the care factor, the service, the service was good, but just the food is really amazing. If I want, if I don't want a three hour experience and I rarely do that and I haven't been there in the year years, but it's some of our team just brought one of our prospects there that we're in visiting the drover. Yeah, that's what I remember. They had the best.
Speaker 2:
43:04
I, it's probably been 10 years. I just tells you how long they'd been around. Um, but yeah, I love to eat. Yeah, they're, they're, I mean they're, they're, they're great places that we could all though have disagreements on what we think is the best place. But it's banter. But the end of the day, if I give you a referral, Ron, on a good place to go to eat, it's one meal that's finite. It's transactional. If I give a family member friend a referral on who to go use as their wealth advisor, that's now life lasting that affects you probably affects your kids and could based on the decisions you made even affect your grandkids. It doesn't affect you whether or not the eight ounce filet you had was that good, or the bourbon sauce or the whiskey sauce or whatever it goes on top of it. Notice those who were both alcohol and, yeah.
Speaker 2:
43:57
Yeah. And that's how we opened today. Show critical decision you must make and we even give you a timeline, but getting the fiduciary broker piece right is absolutely, positively the most important decision you're gonna make. Then once you've done that, make sure they're committed to comprehensive planning, that they have the credentials on the team as well. The CFP, the CPA, the attorney, um, uh, the cfas and actually manage the money that you really have a real capable team in order to do that and give us a call, eight eight, eight, four, nine 85, 13. We'd love to give you a second opinion on what you're doing. And you know, for example, medicare alone, there's 2,728 rules. Then there's hundreds of rules about each one of the rules called the program operating manual system. You really need software to navigate that, to maximize that. There's no way in the world you're probably gonna make the best decision on your own. That's why over $10 billion that's left on the table every single year. Don't you know the little things, if you're not doing them right, you're leaving a lot of value. Give us a call. Eight eight eight four nine 85 13 get that second opinion. 888-4985-THIRTY nine Ron Carson with Paul at West and you're been listening to wealth and wisdom
Speaker 4:
45:15
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:
45:29
Okay, and here's the legal Mumbo jumbo. The opinions voiced and wealth 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.