Wealth from Wisdom

A Second Opinion on Your Investments Could Save Your Retirement

August 18, 2018
Wealth from Wisdom
A Second Opinion on Your Investments Could Save Your Retirement
Chapters
Wealth from Wisdom
A Second Opinion on Your Investments Could Save Your Retirement
Aug 18, 2018
Carson Wealth
Show Notes Transcript

Some things in life you can’t leave to chance, and that includes your financial game plan. Learn 7 reasons why a second opinion could save your retirement on Wealth From Wisdom.



Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and well from wisdom with Rod 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 Cwm LLC, an SCC registered investment advisor
Speaker 2:
0:32
get 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 280 the skyrocketing cost of healthcare and retirement could now run 350,000 for retirement. Today is a whole new ballgame. It's loaded with challenges, obstacles, and trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of fame advisor, Ron Carson, straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson.
Speaker 3:
1:11
There's certain things in life you cannot leave to chance and getting a second opinion on your investments is one of them. Hey, let's not forget something. This is everything. I mean everything you've worked for throughout your working career and if there's any chance you're missing something or not even on the right track, it could actually turn into a financial disaster and something that could have happened. You could have avoided this with the second opinion. Hey, welcome to wealth and wisdom on Paul West and we have a great show on tap for you here today. My cohost is Jim Caldwell and for some of you the biggest stumbling block for you getting a second opinion. I think I met block, not Bach. They're close enough is loyalty. Yeah. You've been working with the same financial advisor or the dreaded B word of broker for a long period of time.
Speaker 3:
2:00
They may even be your friend. You like to go to dinner with them. You like to play golf. You like to go to the movies, whatever it is, and your loyalty is admirable, but what does matter the most is getting the best possible advice for you and your family. It doesn't mean you have to displace them as a friend, but getting that second opinion because you need your biggest advocate and who's your biggest advocate? You. No one else is ever going to do this for you. This isn't about friendships here. This is serious business and the sooner you realize that the better off you're going to be and ain't coming up on today's just show. Jim and I are going to reveal seven reasons why giving an objective, not subjective. Objective. Second opinion could literally save your retirement. Plus if your advisor isn't talking about these five things, it could cost you more than you know.
Speaker 3:
2:53
We're going to talk about the one big red flag gym that's going to send you running for the hills in third. Why your advisor could have a bias towards some investments or products that may not be in your best interest and Jim is we think about wealth from wisdom. I'm going to start about something that's maybe an unintended consequence. And that is, it's just really plain common sense sometimes about getting a second opinion. So when you go buy a car, do you just go look at one car, buy it on the spot? No, no. When you buy a home, do you do that? Well, you may fall in love with the home, but also when you see a doctor about a major medical diagnosis, why should your money and investments be any different? And to help you iterate this, there's a great story in the San Diego Tribune and it says, you know, there's this 18 year old girl.
Speaker 3:
3:41
She was told over the phone while she was actually at a pizza parlor that she was going to pass away within three months due to a tumor on her ovaries. So what did she do? She got a second opinion and guess what? Today she's 60 years old and cancer-free. A second opinion saved her life and can a second opinion actually save your retirement plan or put it on a much better pathway? You can do better with the gym. This is fascinating to me. According to Gallup, 70 to 85% of people don't seek a second opinion about a medical diagnosis. I think that sounds crazy, right?
Speaker 4:
4:21
It makes no sense to me. I mean, especially if it's a major issue, which could be a life or death changing situation, but I feel like a lot of people that we talked to, they, they'll come in for a second opinion and they'll be shocked at what they hear from us, that they're getting information from us. The fee aren't getting from their present situation. But the mindset going in was, you're going to try to sell me something. And that's not the purpose of the second opinion. It's just education and information.
Speaker 3:
4:51
Yeah. I was listening to radio actually the other day, Jim and I heard a commercial, I thought it was a really well played commercial here, um, by an auto repair company. And so when you go in and get your car serviced or repaired and let's say your transmission's out or there's a problem with it, most of us consumers have no idea. I'm throwing my hands up in the air. I'm going to pay whatever they tell me cause I don't have a clue what they're talking about. Exactly that. How often do you actually go get a second opinion and how many times were you told maybe, Hey, you need to get rid of your transmission, but the reality is something else was wrong with it and can you fix it versus throwing it out. And I look at the same as your investments that you can actually get it fixed or edited versus having to do a whole scale landscape, big change to make that happen.
Speaker 3:
5:40
So is your financial advisor really creating value and if they're not building value, you know who's going to have to pay for that? Yeah, that's right you. And that's why a second opinion helps people put people on the right course. Hey speaking, of course Jim and I actually last weekend and had chance to play golf together. It was a lot of fun. I was actually to be able to see my son for his birthday, able to bring my father and Jimmy, you know this, I like to golf and sometimes with a second opinion, what do you do? You ask someone else, your group, hey, help me read this Putt. Right? I don't ask you very much Joe, you might need to touch on that. I was getting whooped so bad by you that I needed a second opinion as to why even showed up. Well, no, I enjoyed that with a Jv Jim.
Speaker 3:
6:24
But, but sometimes you know what happens is is you ask your partner or you know, if people are fortunate. Well, let's look at the professionals here. Here's a great example. The Pga Championship just happened recently. Every person who's playing in that has a caddie. Almost all of them have a professional caddy who is trained and spends their time looking at the course set up, reading how much distances, reading putts, and looking at all of that. And I look at the same way of Reading Putz, by the way, on a golf course. Sometimes when you're looking right behind your ball with the whole you need to walk around and get a second opinion on the other side of the hole cause you may have missed something, you may have got a good glimpse at it, but reading on the other side and hold it gives you a complete diagnosis on what it looks like.
Speaker 3:
7:13
And I think that is a way that Jim people can make the right decisions portfolio is somebody may be looking straight on it for you. Maybe that view from a different angle is going to help you make the tweaks and adjustments just like a Putt. Instead of deciding do I hit this on the left edge? You may change it to the right edge based on what you see from the other side. Well and I'll tell you on a golf course why people don't do that in my opinion. And you've got another force in play in right up behind you and you want to hurry up and you just want to get it done and you're going to be satisfied with a to putter, even a three putt. I think you go back to your automobile analogy. Let's say you are x Xyz repair shop and they've got it up on the blocks and they've already turned it halfway inside out.
Speaker 3:
7:57
Most people aren't going to say, Hey, put it back together, put it on the ground. I'm going to go down the street and look for a second opinion. It takes too much work. Yeah, no, it definitely does. I mean, and I think about all the things that have an impact. So let's go to number two here. So this is a big, big deal about getting a second opinion. If your advisor is not a fiduciary today, you need a second opinion. And I, I can't say that enough. If there's somebody who's guided by making a commission or earning a fee on a specific transaction, you're, you're going to be in trouble. So if you think about a fiduciary, this is someone who has a legal and ethical, I'm going to say about their legal and ethical obligation to do what is in your best interest. That's not someone who only sells annuities, that's not someone who only puts you in stocks. You have to be careful of these biases because they're dangerous. So for example, if someone comes to you and says, Hey, what's the retirement plan that we can put you in? And they only talk about annuities, run, run, run, run quickly because that's a one trick pony. That's all they're saying. And how do you know that's like saying, Hey, I'm going to go watch a movie and I only give you one movie to watch. I need to give you a menu and align up that fits your personalized interests there.
Speaker 4:
9:18
Well, I'll tell you, and we're, we're having more and more people that come in here to chat and they must be listening to the radio show or something because a lot of them are asking, are you a fiduciary? Do you charge a commission? What is your fee? And of course, we're very transparent with all of those questions and give them the answers that they need to hear. And I think that's very, very important.
Speaker 3:
9:39
Yeah, well, I think a lot of this, um, and I look at the stock market and what's going on with it and happening. And one of the big things I, we've seen recently, I say recently over the last several years is everybody's buying the biggest, the name stocks and we call it the Fang, Facebook, Amazon, Netflix, Google. And as you're looking at all of those, you know, you get attached to them emotionally and you're going to ride the waves. Of course, you know what we've seen over the last month with Facebook. Um, I hope you're ready for that emotional wave in the probably happened with all stocks. I mean every, everything can do well and is, is Amazon perfectly protected, can not have a downside. I would say no because at some point something's going to happen and you have to watch that. But you also have to be thinking about it from our perspective of what's working now may not always work for the future.
Speaker 3:
10:32
And we've told this story before, I'm a shared again. How many of you out there still go to blockbuster video stores? You don't, right Jim? I hope you don't write cause cause you're not going to get it in there. It's going to be an empty buildings or maybe you bought the building area and um, it turned it into something else. But you cannot let your biases to what happened in the past. Keep working for the future. And that's why a second opinion works for so many people because getting confirmation of your bias and that it's good and still prevalent in today's world is great. And if it's not, then that's okay too. There's no different than, hey, what's the best golf ball to play? Is it a Pro v One? Is it a chrome soft, whatever that may be.
Speaker 4:
11:13
So let's talk about timing because people say timing is everything. And we, we read something earlier today that the s and p 500 average monthly return since 1950 are x. The two months that have the most that have the negative returns are August and September. Last time I checked, we're into August right now and I think are out there without, without a doubt, this would be it perfect time for someone to go out and seek a second opinion on their present.
Speaker 3:
11:44
People are going back to school is Labor Day. I mean all of those things were at ball football season in which we're all happy about. They really, there's no downside risk gym to getting a second. It's simple. It helps people. It's to the point you can actually give us a call, (888) 419-8513 one of our advisors will be standing by, can help answer questions you may have, but think about this. There's no cost to you for an initial analysis. There's no sales pitch and there's no products for sale. Those are three pretty powerful statements there. If you want that second opinion, give us a call at (888) 419-8513 (888) 419-8513 Jim Caldwell and I are going to continue to give you the best ideas on why a second opinion in all forms of life here in looking at your financial situation, we'll help you on the wealth from wisdom radio network.
Speaker 2:
12:36
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. Maybe you've been working with your financial advisor, Pfizer
Speaker 3:
13:14
or broker for a long time and where your loyalty is admirable. What really matters most is that you're getting the best possible advice for you and your family. Hey, welcome back to wealth and wisdom. I'm Paul West and thanks so much for joining us today. My cohost is wealth advisor Jim Caldwell, and today we're talking about seven reasons why getting an objective, not subjective and objective. Second opinion and how that could literally help save your retirement. And this segment we're going to talk about having conversations with your, your advisors about five critical pillars of retirement planning. And if it's not being discussed in your retirement, this should be a huge red flag. For example, are they having conversations with you, not just about your investments, but about your taxes, your social security, how you generate income, health care, longterm care, et Cetera, et cetera. And Jim, I can keep going on and on and on.
Speaker 3:
14:08
But if you're listening today, you know exactly what I'm talking about. If you're a conversation to your investment advisor, and notice how I said the word investment in the eyes are not wealth advisor or wealth planner or a financial planner, but if your conversation is only about your returns and what those look like and not how they work in context with everything else, that tells me exactly right away that you're not working with someone who's taking that holistic picture. I'm going to give you an example about this. So let's think about, um, I love to go drink coffee. You know that Jim, I love having a cup of coffee every day while it's more than one, probably like three to four. Our producer, Andrew definitely knows that. Uh, I was having breakfast with someone a few weeks ago and this individual me to do a portfolio review. And as part of the doing the portfolio review, he gave us a statement and the statement had a list of every position they had. But what amazed this person across the table was when he slid the statement over to me to look at. I didn't look at it.
Speaker 4:
15:10
Why do you think that his job, it's just one piece of the puzzle. It's not the most important area to focus.
Speaker 3:
15:16
No, it's not. It's important, but it wasn't urgent at that point in time. What was urgent to understand is how did that impact, how much of that did they want for retirement? How much did they want to use for gifting? How much did you know they want to save? How much do they want to make? How much risk are they willing to take? All of those things are variables in the entire decision. You know no different than look at how do you value a house, right? If you're going to sell your house right now, I know it's been a more heated market in the whole United States. It's certainly has in the Omaha Metro area, but you look at the quality of the house. You look at the neighborhood, how much updates need to be done. You look at what are other comparable market segments doing? We, in our business, if you're comparing portfolios, we call that benchmark analysis comparing how other risk adjusted portfolios are doing. And so when someone wants to give a second opinion, they do have to understand what are you being compared against. And I, and I, and I warned her, all of our listeners, if you're comparing your personal return versus what the market's doing, or even worse yet, Jim, what your neighbor's doing, you're making a serious, serious mistake because you're not worried about then what's right or wrong,
Speaker 4:
16:31
important or relevant for you. Sure. I mean, we see a lot of situations where people have come in and they want to compare, let's say 401k returns with risk manage returns. Those are apples and oranges. They're, they're not the same. And I feel like what we need to do as advisors is we need to manage expectations and behaviors versus just managing returns. Um, I mean, I think people, you only get one chance to retire. You don't get a Mulligan a lot of times. So you better have a plan in place. And, and we've talked about taxes all the time. So security, very important to hone in on that.
Speaker 3:
17:06
Yeah, you're definitely right. Well, we gave you a lot of mulligans last weekend jam, a whole different story. So let's go into that. Let's talk about taxes. So I can't tell people enough. This is one of the most overlooked areas. And by the way, I think it's one of the most painful things out there is paying taxes. I know when the time comes up, every year I send everything to my CPA. We all at the end of the day want to see what our tax bill is. But guess what? That's looking out in the rear view mirror. But when you make investment decisions and financial planning decisions, here are some key traps to avoid. One RMDS that stands for required minimum distributions with your pretax retirement accounts. This includes your Ira's and your 401k's. So at age 70 and half, the government's going to want to get their money and you're going to have to take a required minimum distribution.
Speaker 3:
17:55
Have you planned for that? Because that is now taxable income and what's going to happen. And there's some techniques out there. One of the simplest ones, Jim is many of us, you know, my family included, I'm not at 70 yet, but when I get to my required minimum distribution, I know every year I give money to my church and I give money to other philanthropies. Well did you know you can actually take your required minimum distribution and give it directly to a charity. So therefore if you're having an annual gifting and you want to avoid getting that tax hit from annual income, this is a great way for you to give to people. So that's good to social security. Did you realize you could pay up to 85% of your total benefits as actual taxable income? That's scary Jim. And I know you meet with a lot of people often do people actually know that they don't.
Speaker 3:
18:47
And I've got a real life story if you have a second. So couple came in and we did the tax planning and we did the full financial plan for them and, and obviously the good thing is this, they wanted a second opinion. They put it off, they put it off, they put it off. Finally came in, we did the plan and we were able to put together a strategy with their blessing where they could hold off social security until they hit 70 which maxes it out. But we took some money from their qualified accounts, IRA accounts, and we supplemented their income in the 60s so that then when they hit 70 and a half and had to take the money out, they didn't have as high a tax bite. Yeah. And how good did that feel for them? They're still thanking is to this day. Yeah, because no one wants to pay more taxes, but here's what happens is, is everyone kicks that can down the road.
Speaker 3:
19:34
I'll worry about it later, I'll worry about it later. It's kind of like the home repairs, right? That we keep. I need to fix the driveway, I need the take care of that problem I have in the backyard with that Bush that I need to rip out of the yard and replace my landscaping. By the way, how's your air conditioner holding up? You mentioned that on a few shows back. Yeah, it's still, it's still chugging along well, so it's been repaired. It's fixed and uh, most likely it's battled his last battle here soon. So thanks for bringing that up. Just taking care of you. No, I appreciate it. So let's move next into, as we talk about social security and the benefits is h how many people leave too much money on the table? So actually Forbes magazine I was reading this recently says that approximately 10 billion, that's with a B billion dollars in social security benefits goes unclaimed every single year.
Speaker 3:
20:26
$10 billion. Why? Because people make mistakes. And the beauty of, of social security, second opinion is it's black and white. It helps show you what your optimal portfolio is. There are smart people that have developed these analysis tools that are at your disposal and people can help you with weekend two, eight, eight, eight, four one nine 85, 13. If you want a complimentary social security second opinion, it's easy to get. But Jim, it's, when I think about this, this can trigger taxes, double your medicare premiums and it can wipe out potentially your spousal benefits. If you don't do this correctly, so make the right decision and have that looked at,
Speaker 4:
21:09
you know, Paul, we, we see this is the number one area where people listen to all the wrong people, they listened to their coworkers or next door neighbor social security. If you want advice, you need to get it from a professional. And, and obviously we can do the analysis. In fact, we do have an event coming up here on August 29th at five o'clock here at Carson wealth. More than happy to include any of our good listeners out there. It's, it's going to be more than worth your time. Just, just respond to the phone number, give us your email and we'll send you an invite and we'll put you in the room.
Speaker 3:
21:44
Yeah. Well I think that's a good point cause I think part about is this education for everyone is, and think about how many hours you spend looking to buy a car or buy a home or all the hours. And I love by the way, to plan for travel. Jim I think is one of my favorite things to do. Um, just gone as you know, last weekend it was fun planning for that event. Um, I'm taking my twins and October to Chicago we're going to go to a bear's jets game, which I'm looking forward to that football game, but I'm more excited I think talking about it and planning it than I am actually when I get there and granted it will be a lot of fun, but I'm educated and I need to get educated myself. Where are we going to go? What are we going to do? How much is it going to cost? I like putting all of those variables together yet on how you're paying yourself back for social security. People don't even spend even the same amount of time. It's probably even less time that they spend driving from west Omaha down too. The Century Link Center for a crate and game. They probably spend more time in the car doing that than they actually do. Thinking about their social security analysis.
Speaker 4:
22:45
And there are so many different options as to how you can take. So security, I mean, we can, it'll take us no more than five minutes to put that analysis together and then we can review it together and see where it goes from there.
Speaker 3:
22:56
Yeah. And I think it'll be helpful for everyone. So next, let's talk about income. I mean, so if you really think about successful retirements, they're not build on assets or really the amount of money you've saved, they're really built on your ability to live life the way you want to and what we call that as true wealth. All that money can't buy and death can't take away is what it's all about. And you know, I had a true wealth moment this last weekend, Jim, you were part of it. Taking my new 13 year old son out golfing for the weekend. It just was those moments that you get to enjoy your life. And I look at my retirement income plan for our family is it's gotta be based on having enough of those moments that make sense, but not too many of them so that you lose the value with it.
Speaker 3:
23:38
And there's nothing more sad to me, Jim, and we've seen this here on the wealth from wisdom radio network is somebody comes in and thinks they've saved enough, but then we run the numbers on how they want to live the lifestyle and what are we got to tell them they can't do it. They can't retire. They've got to put it off. They have to maybe work part time or or whatever. But it's not, it's, but it's the truth. But it's not a happy ending or what do you have to do? And I'll just give you an example. You and I were talking about this the other day is somebody comes in and what do you have to do? You either work longer or you spend less and it's, it's not fun to have to tell people that, Jim, but guess what? I also don't want to put any sugar on it.
Speaker 3:
24:19
If that's the truth, that that's your real situation. You're free to Sherry, your advisor and planner needs to tell you those things. They need to be a truth giver to you and you need to be a truth receiver. Understanding that so they can help set that up and explain it to you. So Jim, I mean, and we've been talking a lot about different things that can happen with getting second opinions and looking at your income plan, your taxes, social security. Really there's just a huge cost to doing nothing at the end of the day is like that backyard problem or are my air conditioner. So thank you for bringing that up, Jim, is if you actually do something, it makes a difference. So if you want that second opinion, give us a call. (888) 419-8513 don't put this off for another day. You're gonna feel so much better if you even come back and here everything's right, which is might possibly are very well. Could be. You'll feel better. (888) 419-8513 that's (888) 419-8513 you're listening to well from wisdom.
Speaker 2:
25:22
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 a second. Okay.
Speaker 3:
25:43
Opinion on your financial game could confirm you're on the right track or it could reveal, you may be missing some critical pieces of the retirement puzzle. Either way, you're going to learn something and only good things can come from that. Welcome back to often wisdom. I'll Paul West Georgia with my cohost Jim Caldwell and thank you so much for joining us today and we're going to keep talking about seven reasons why getting the objective. Second opinion could literally save your retirement. And in this segment we're going to really talk about how to update your financial game plan with your advisor plus specific events that should trigger an alteration in course with your financial game plan. And I think about your financial game plan. And again, I go back to many of you listening today, I'm actually throughout the world, you talk to your advisor about one thing, investments and how are they doing, how are they performing, how are they returning?
Speaker 3:
26:31
But investments is just one picture of the puzzle. But let's talk about life. You know what life happens is we all know and you may have personal situations occur, death, divorce, spousal issues, whatever it may be, kid issues. And as we think about all of that, if your personal situation as change, whether your portfolio's grown or not, you've gotten married, divorced kids near retirement, you might need some help. Jim, and as we see this all day long or the well from wisdom radio network, what do you think? I mean our best practices for people to avoid what we call life changes, surprises that can help them get better. I'll give you a big surprise that we ran into a few weeks ago and uh, some folks came in for a second opinion and as part of our second opinion process, we do a full beneficiary review. And it turns out that in one scenario with one of the retirement accounts, the ex spouse was going to receive all that money upon death.
Speaker 3:
27:30
How long have they been divorced? Eight years. Eight years. And so obviously they, either the president advisor hadn't picked up on it or they hadn't brought it up or I don't know the circumstances, but they turned out, we helped them with the paperwork and they went back and fix that and they were very, very pleased for our assistance. So he, I'm just imagining that situation. So if something unfortunate in a life tragedy happened to that family, if that problem wouldn't have been identified, someone would have received all of their assets because they had not updated their beneficiaries. And in addition to that, yeah, children were involved. They had three children. So how do you think they're going to feel when that happens? Yeah, I think there's gonna be some litigation along with that. I'm going to be a happy ending. So I think the statistic is so fascinating to me.
Speaker 3:
28:22
And you know, I love statistics gym, but statistics help for many people understand the reality. So we review this all the time, and this isn't from Carson, but this is through another provider here that 90% of estate plan beneficiaries are incorrect. That means something has happened, uh, life changes happened, a marriage, a divorce, um, an inheritance, whatever it may be. So I, I can't even fathom that today. Or they've just set it up incorrectly and not putting the people in the right order or many people set up a living trust. So to help take care of their family if something would happen to them, but they haven't updated and put that living trust inside of their beneficiary stack inside of their 401k, their IRA or other accounts. And you may say, but Paul, what in the world are you talking about? I got to tell you, if your financial planner is not reviewing these with you, you're making a grave mistake.
Speaker 3:
29:22
So think about this. You spend all your time, you go spend $1,000 $1,500 with an attorney, whatever the number is to set up your trust, but then you don't go carry it out and give that information to your investment advisor. So their accounts don't have it listed correctly. You just wasted time and better yet you wasted money. And worse yet you're in a plan is not going to get carried out potentially the way you want it to. So you have to think about these things. And I'm going to talk about for a moment, Jim, you and I were very fortunate. Um, last week, uh, we did something here at the Carson group was our first ever, we call it our Carson days. So we had all of our stakeholders throughout the country come and meet at our national headquarters here in Omaha, Nebraska. Um, and we call them stakeholders.
Speaker 3:
30:10
By the way, we don't like to call our team employees because we really think everyone has a stake in making sure our clients received the best experience possible. But it's part of Carson days. We brought it in a nationally renowned speaker called Colonel Arthur Athens, and I've had the privilege of seeing, uh, Colonel Athens speak several times. And I know you've heard them as well. He's a phenomenal, but what he did was he talked about selflessness versus selfishness. You think about that. Hopefully I can get that out correctly in my pain times real quick. No chance. Selflessness versus selfishness. And so many of us say we're selfless, but when you look at managing your own money or taking care of your family, most people are actually blinded by selfishness. Why I got this, I have it under control. I, I've already done what I needed to do.
Speaker 3:
31:06
No one can do this as good as I can. Well, I'm going to ask you if you manage money on your own, where did you get your professional training? What did you go through? How much time do you actually spend on that? And I'm being serious about this Jim. Cause people all the time think that, hey, if I'm going to sit down and have a cup of coffee in the morning and watch CNBC, MSNBC, Fox, CNN, pick your favorite station. And by doing that I'm promptly apt enable to actually make all of those decision. Guess what, especially if you have a spouse and they're sitting across having the cup of coffee and they don't care about all of that stuff, I'm going to challenge you that you are being extremely selfish because you think the decisions you're making there, and they may be some really good ones, but think about selfless would be how are you working with a professional to make sure you're on the right pathway.
Speaker 3:
32:01
So that spouse of yours who sit in across the table with you and having that same cup of coffee, that if something ever happened to you, they would be well taken care of. And Colonel Athens did a wonderful job talking about this. And Jim, one of the, you know, his stories he loves to tell is about, you know, the US hockey team back 1980 and how he got them motivated to stop being so selfish on this team because everybody wanted to be the best to how he got them to be selfless, not he colonel Athens, but the coach at the time. That, and I think that makes a big difference. And I think about your own financial life. Are you being selfish or you being selfless?
Speaker 4:
32:40
Well, another real life example, I mean, we had household come in and the husband had basically driven the bus for 30, 40 years. He had run the family finances, but he felt like it was time to turn that over to a trusted professional for a number of reasons. I mean, he wanted to enjoy retirement, but the biggest one is he wanted his wife to be taken care of because he was older and numbers show that no, he's probably going to go first. So he was being selflessness versus selfish.
Speaker 3:
33:10
Yeah. Well there's a great, uh, you know, stat here. I'm a share. So this is from El Avastin and asked to 1000 women and 1000 men about money, and that we found that 47% of women say they know how to achieve their financial goals versus 64% of men. However, what's the good news in this? I mean, that's scary first to me, to both of them, that they're not closer to 90 and less than 50% of females. But women also told us in this survey from LLS that saving was their number one confidence booster. That's think about that protecting themselves or getting started was way more important. And I also tell you, education on saving, investing or retirement planning, estate planning, all those things matter. And from a team of people who can help, you can still be the lead driver at home and drive the bus and help make investment decisions. But do you want a team of people making sure your beneficiaries are set up correctly on your life insurance, your Iras, your trust, your individual accounts, your houses, your cars. I mean I can go on and on and on here, Jim. But make sure you're making those right decisions because it has a, a not gigantic impact, not about just you and your spouse, but your kids, your grandkids and all of those people that impact your life in a positive and emotional way. So think about that and what it impacts you.
Speaker 4:
34:38
Well, you know, and, and we have in house, obviously CPA's and CFPs and jds and we can do it all here, but we work with your trusted outside advisors. So we work as a team with them. And we actually had a household come in three weeks ago and they brought in their estate planning attorney and it was a great two hour meeting. We kind of connected some dots on some things, made sure our paperwork was up to date. He showed us what his firm does, we showed him what our firm does, great meeting. Everybody won the clients, went out. Very pleased.
Speaker 3:
35:14
And the best part about that, Jim, is everybody had a chance to have their say and help each other out. And that's what all the whole point of getting the second opinion is, is there's no cost. There's no obligation. If you want us to look at it, we're happy to. You have shared some great ideas here at that's (888) 419-8513 again, no products for sale, no sales pitch. We're not brokers. We're not trying to sell you a stuff. We're trying to help make the right decision. It's your life. Make the best decisions for you. Be Selfless, not selfish. (888) 419-8513 you're listening to wealth from wisdom,
Speaker 2:
35:48
trust, transparency, accountability. These are the values that drive Ron Carson and Carson wealth. You're listening to wealth from wisdom with bear and tall, the fame advisor, Ron Carson, he's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to, well from wisdom with Barron's hall of Fame Advisor, Ron Carson, your current advisor or broker may have gotten
Speaker 3:
36:14
you from point a to point B and that's great, but they may not be the right person to help you get from point B to point c. Hey, welcome back. You're listening to [inaudible] from wisdom. I'm Paul West and thank you so much for joining us today. My cohost today is Jim Caldwell and today Jim, we're talking about seven reasons why getting an objective. Second opinion could literally save your retirement and thousands and thousands of dollars. So what's coming up in our final segment here, we're going to talk about why you need to understand every single part about your investments and to about how fees and expenses could be helpful or hurtful to your entire portfolio. But let's go on the first part here, Jim, and talk about understanding what your investments are. I heard someone tell me this the other day, Jim and I both so fascinating and they're looking across the table and they said, I don't know what the heck I'm invested in and why I'm invested in it.
Speaker 3:
37:09
And the first part scared me. The second part shocked me. You may not understand every little thing about your investing in, but why you're not. You know what that tells me you're not being educated. So here's what happens is most people pick a few investments and then let it ride. This is super dangerous because you need to be constantly updating your plan, especially as you get closer to retirement. We talked in an earlier segment about the Fang Theorem, Facebook, Amazon, Netflix, Google. I would add apple into that or any other one you want to, but that's not diversification. We saw what happened a couple of weeks ago with Facebook and it's quick, rapid decline that could happen to any of those. So you can you imagine, what if you owned $100,000 worth of apple and all of a sudden it went down to $75,000 how would that make you feel?
Speaker 3:
38:01
Not Good. Yeah. Ouch. That hurts. So think about how do you know what you're actually invested in? And Jim, one of the tools I've seen you use and many advisors here use it is what we call as the digital allocation tool. So here's what happens with people is so somebody again slides their statement over and says, Hey, can you review my current statement with pick wherever Edward Jones, Raymond, James, Wells Fargo, wherever it may be. What do you expect to get back from that investment advisor advice on why they need to change and move over to you. That is called sub objective because it's that individual person's opinion across the table. However, what if they actually gave you a report called the digital allocation that actually showed you exactly the metrics of your existing portfolio and I just changed it. Let Jim from subjective to objective, that makes a big difference.
Speaker 4:
38:58
Well Paul, you know, many people have referred to us as a, as a technology firm that gives financial advice and there's a great example of of what we do here and I really feel like there are some people out there that have had multiple advisors for years and you're right, they've gotten them from a to B. But how do you get them from B C which now they're moving into the distribution phase. The asset allocation tool is a great way to show them visibly, not just throwing something against the wall and hope it sticks, but visibly, here's where you're at, here's where you're going, here's how we can generate the appropriate retirement income. It's foolproof. It works well. It's, it's made many, many people much more comfortable as they approach retirement.
Speaker 3:
39:38
Yeah. Well, and it just is, again, it's objective because why do people not get a second opinion? They feel like they're going to be sold something and there's a big difference. So if they're a fiduciary, they have that legal and ethical obligation to give you that second opinion. And it's actually, Jim, I, I enjoy helping point out small issues. I actually love telling someone across the table that there's looks incredible that they're on the right pathway and they don't need to change. And I just, I'm going to call it the relief on their face. That happens because what then occurs is they don't go try to chase something. What happens a lot of times you're at that backyard barbecue and someone says, Hey, I'm up 10% this year and you go look at your portfolio and you're only up 4% what do you want to do?
Speaker 3:
40:24
Then you're probably going to try to ratchet up your risk to try to get better returns when you don't need to. And they'd be earning 4% is exactly what your portfolio needs to do to help meet your life goals. And Jim says, we played golf last week and I'm just going to bring this up because this is a great example of that. So you ever played golf with people who go hit on the tea first and they hit a really long golf ball and you know if you even hit your best drive, your golf ball cannot catch up to theirs in the fairway.
Speaker 4:
40:56
That happens to me on every hole. So I'm well, well in tuned on that.
Speaker 3:
41:00
So what do you do then? So what happens? You get up there, you swing harder. And what happens when you swing harder? It's not a good thing. It's in the bunker. It's in the rough. It's out of bounds. You deaf it off the tee. Whatever happens. Why? Because you are trying to do something that you shouldn't be doing. You need to stick with your plan. If you stay with your same game plan of play, Jim Caldwell's golf game, say it right down the middle, not worry about the distance and then get up to the green chip and Putt. Get your car. You're in a great situation off to the next hole. You're happy. You didn't take really any risk there, but all of a sudden you say, you know what? I'm going to out drive this person. I'm going to muscle this. I'm going to hit this as hard as I can.
Speaker 3:
41:42
Never works. No, maybe once in a long time, but that's no different than I think than your portfolio today. Not Yours personally, Jim. I'm saying the people are now taking more risks and I'm, they're muscling up their golf swing and wanting to buy more equities because they think it's the right thing to do to outperform against everyone else. That's not what you should be thinking about. You should be thinking about how are you playing this game smart so that every whole you're doing fine and you're taking risk off the table. What kills the game for a Bogey Golfer, a double bogey, a triple bogey, all because most of the time they're taking risk they don't need to take and and what's fascinating is, and thinking about risk and I and I worry about this and four o one k plans, Jim by the way, is is people don't understand how much risk they're taking the four o one k plan or they don't understand the costs involved. So listen to this, this is from the recent article from CNBC and Tony Robbins actually pointed out that 92% of Americans don't know the costs involved with our four one k plan. That's crazy. Yeah. This is for most people, your number one investment vehicle and you don't understand it well and
Speaker 4:
42:56
go back on what you said earlier about using the digital allocation tool. We can plug in all the holdings if someone's 401k and we can actually show them graphically how much risks are taken. We can normally get pretty close on the fees. But an addition to that, we can also have another tool that we use within five minutes. We can calculate how much money they could take out of their total portfolio, social security, all their income streams, and how long will that last and give them peace of mind so that as they get near to retirement that they're going to be able to pull that trigger and make that call.
Speaker 3:
43:28
Yeah. No, I think that's right Jim. And I think about, by the way, I'm teasing you, you're your drivers almost within 40 yards of baseball. At least 40. Yeah. Yeah. Well that includes the Ralph, but hey, um, is there a fairway on a golf course? I to find that's in the middle is the, it's the nice green stuff. There you go. Hey, it's worth it. Talking about providing advice to the gym, I mean, one of the things I want to share with our listeners are the following questions. So I want you to ask these to yourself. Number one, do you have a written plan for your investments? Number two, do you have a portfolio that has tax efficient? And number three, do you understand the level of risk in your portfolio? Number four, do you know the level of verse that's appropriate for your situation? Number five, do you understand all the expenses with your portfolio?
Speaker 3:
44:20
Do you understand investment devices actually fiduciary advice and do you understand the methods to evaluate investments in your portfolio? If you can't answer these definitively, you need a second opinion. I'm telling you, if you don't even have a written plan, just don't even listen to the rest of the questions. You can give us a call. (888) 419-8513 have a written plan. Make sure it's tax tax efficient. Understand the level of risk. It's like trying to hit that drive too far. Don't do what you don't need to do because that's going to hurt your family, your spouse, your kids, your grandkids. Be Selfless. Stop being selfish about your own individual investments. Give us a call that's simple. Analysis will help protect your downside. (888) 419-8513 (888) 419-8513 thank you for listening to the wealth from wisdom radio, network
Speaker 2:
45:16
risks, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of Fame Advisor Ron Carson.
Speaker 1:
45:30
Okay. And here's the legal Mumbo jumbo. The opinions voiced and wealth from 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 assure success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an SEC registered investment advisor.
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