Wealth from Wisdom

Maintaining Your Money in Retirement

July 14, 2018
Wealth from Wisdom
Maintaining Your Money in Retirement
Chapters
Wealth from Wisdom
Maintaining Your Money in Retirement
Jul 14, 2018
Carson Wealth
Show Notes Transcript

More than 40% of Americans are at risk of going broke in retirement. Tune in to this week’s episode to learn why that statistic is true, and how you can make sure you aren’t part of it.

Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and well 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 and 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
market hit another old 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, 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. More than 40% of Americans are at risk of going broke and retirement. That's the latest headline from Marketwatch, and if you're thinking about retiring or recently retired, I hope that gets your attention. Welcome to wealth and wisdom. I'm Ron Carson with my cohost Paul West, and today we're going to talk about the market, but we're also going to talk about this tragic statistic.
Speaker 2:
1:30
More than 40% of Americans are at risk of going broken retirement. So why is that? Well, the biggest culprit always has been always will be the failure to turn savings into an investment. It really just having an overall game plan. If you don't know how to do this, you could easily run through your entire life savings right away very quickly, and no matter how much money you've saved, we've seen people that have modest means a lots of money. You don't know, you don't have a plan. What you can spend, how much you can give away, how much you can help the kids and the grandkids. All of a sudden you find yourself completely out of money and generating this income is no easy feat, especially today. There's lots of different ways or non nontraditional ways. You can't go to the old ways because they're just not working.
Speaker 2:
2:16
Interest rates are too low. Markets are maybe stretch and valuation. We'll talk about that a little bit. Uh, but there, there are some very specific things that we can do. And Paul, we're to start with the very first one, something we were uh, we talk about frequently at the Carson Group. It's what your family index number. People get fixated on what the SAP is doing, what the Dalles doing, what, whatever, how old Joe is doing, right? And there's only one number that matters. And that your specific number based on your goals, your objectives, what it is you want to accomplish. Sometimes you have a number that's higher than what your risk tolerance will support. So you've got to go back. You can't, you can't
Speaker 3:
3:00
say, well, I'll just take more risk if you're really not there with your risk budget because then you are going to do the wrong thing at the wrong time. So you got to go back and say, okay, my world would work longer and more willing to downsize my willing to put a reverse mortgage on the house. There's lots of things, but planning for it in advance is the key to success here. Yeah. I think about this. How many fingers do most people have? 10, right? No, don't they have nine and then two films are eight and two thumbs if you really how many digits that I was looking at. How many you had. All right, you're gonna, you're gonna see one shortly.
Speaker 3:
3:39
Two of those. Yeah, I do. Okay, here they come. Uh, anyways, but if you think about you only have one fingerprint and there's one unique fingerprint that everybody has, right? That's vain. Why do you get fingerprinted? Why do people do? Because it's a unique identifier. That's the same thing with your family index number. That's your unique identifier for you and your family. Everybody else has one also, but it's, it's different based on what's important to them. For you, your most important thing, maybe make sure my family gets as much money as possible. Others of you is, I want to give as much charity as possible. Others you may want to be, I want my last check I ever have written from my account, my life to bounce because I don't want anything else left. I don't know. Everybody's different. Run there. There's some variations. I mean, I love when you go to the paint store, you go to home depot or Lowe's. I mean how many different colors of gray and they do on a paint her room. I joke, cause I feel like our house always has agreeable. Gray seems to be our theme color for the West family. But there's, there's, there's a color called agreeable gray. Oh yeah. Oh we don't, we don't fight over it. Oh God, there could be on it.
Speaker 3:
4:50
But there's all these different iterations. But you picked the one that's best for you. And that's what I want our listeners to understand today is, is figure out that best iteration. Some advice you may get from friends and family could be good, but it's not always tailored. It's not your fingerprint advice. It's your hand adviser is you astutely said you're eight digits and your two thumbs, uh, advice Ron. But how do you personalize it in each of that? I think in today's show we can talk about great ways for people to personalize their own family index number. So we just, we just had the 4th of July not too long ago and everybody sitting around and they're having beers on there, having cookouts and then uncle Joe was talking about how much money he's made in x, y, z. And what happens is that we become jealous because uncle Joe was talking about this incredible success. He's have it now. If we were to know the real truth about uncle Joe, because we hear this a lot, if you really dig in and you net his winters and is in his losers and how he's actually done overall, you don't hear about all of that. And TV's the same way. The sensationalism that goes on all the time. It's designed to suck you in
Speaker 2:
5:59
and to have your watch be a listener. And Uncle Joe wants to do the same thing. He wants your admiration that maybe knows a little more than you and you get to where you have a bias that maybe you're not doing as well. And this coming back to that family index number, and this is such a key to being successful and not running out of money, is knowing like you said, your thumbprint, what is it that unique to you and your family and then customize a plan around that and forget about all the outside influence. It's just try not to listen to it and just assume, no matter whether it's whatever source of information you have, you're probably not getting the full story. It's getting, it's getting spun in a positive way.
Speaker 3:
6:41
Yeah, and for most people it's that balance of risk and reward and routes. It's his summer season, 4th of July. We just had, uh, many people go to a pool and I think about, I'd love to see a, a statistic or a survey. There's probably is one done on what some people love to this one pool that jump off a diving board. Well, I'd love to see how many people are willing to jump off. If it's one meter above the pool, three meters above the pool, five meters, 10. I'm sure it's inverse relationship where less people want to jump. The higher you get up, that's risk and reward because some people want the reward of jumping that high. Others don't want to bear the risk that goes with that. And it's similar to your financial plan. Let's think about it this way. Most people put together a budget.
Speaker 3:
7:29
It's pretty simple, right? So what do you have costs? Your House, your car insurance, food, you know, food on the table. He or he don't want to eat, right? But you want electricity for air conditioning. But you want to watch people get panicked. Um, our power went out a couple of weeks ago for a couple hours. He goes up quickly, neighbors, AC went out. Those things cause panic. Um, but there's all these expenses you have. But what happens is is Ron, these things creep up and you're taking on more risk than you've ever seen in and I really see it in the going out to eat factor. I know we've talked about this on the show, Ron, by the way I like to go out to eat too, is that's probably the biggest entertainment expense we see that happens is people want to go somewhere and and here, here's the reality.
Speaker 3:
8:17
You may not think it's that much, but do you go out an extra two times a month and you ended up spending, call it $200 then you take that $200 times 12 and now you're at $2,400 a year. Well that creeps into something else. Maybe you wanted a weekend trip to Chicago or you wanted something else. Those things all can make a great impact on your life by watching those little things. I was saying you have to watch your penny and you have to order the $9 early bird special versus the $39 entree. I'm not saying that when you go out to you, what I'm saying is the risk we've seen people make is, is they let the creep in their budget take over and that deteriorates, or I'm going to use the word erodes their family index number because they stray away from their plan.
Speaker 3:
9:06
Probably no different than a football coach. Let's take a football coach if you're really good at running the football, but for some reason you just, you're happy that day and you want to pass the ball a lot more, even though the game plan doesn't call for that, and you know, you can beat your opponent by just running the football and pounding it down their throats and just take advantage of your offensive line taking the risk. Right. Because it's less risky to run the ball then to pass the ball. Yeah. Right. Yeah. Um, I know our producer and feels exciting throwing a bomb. Yeah. All the time. And some of the, I love your football analogy because we see people all the time, they were like, let's go for a touchdown. This go for Tasha. I'm pretty soon, you get your four bounds, you, your downs, you turn over the ball and you don't accomplish anything versus the Tom Osborne era, right.
Speaker 3:
9:45
Where you have a strong offensive line and you just grind it out. Um, you smash mouth football and a cloud of dust. Yeah. Well, and people have, the perception is it looks better if I'm throwing the ball that way. Um, so I'm going to go to a recent event. I enjoy it. I know our producer really enjoys it. Um, we wish the U s team was in it this year, unfortunately, didn't make it. And that's the World Cup. So what happens at the end of time if both teams are tied, they go to a shootout. So a shootout, a goalie really has three options to stop these freeways. Like can't stay on soccer because he can end in a tie. Well, no, a candidate at a time, I'm explaining how it can end in a tie. I was not at, not at the end of, well it can and the round Robin play, we're talking when it gets to, yeah, yeah.
Speaker 3:
10:28
Come on. Ever follow this. And whatever. Everybody standing around looking at each other on a big old field. I don't get, they run more miles than, Oh, I'm not suggesting that I'm not in great shape, so, but a goalie as three choices still jumped to the left or jumped to the right to stop this free kick. The reality is is they jumped to the left and the right over 80% of the time. However, if they stood in the middle, they would block 70% really? Yes. It's, there's empirical evidence yet they still don't do it. Ron. Why they don't want to be seen on TV not moving. They don't, even though the record would show them if they stay in that center boundary and that call like one standard deviation of the goal run, they're going to block the majority of the kicks and that's no different than I see a lot of other things is if people just follow the numbers and what's best for them and not worry about what everybody else thinks, they're going to be a lot better off. I mean that's the keeping up with the Jones's mentality. It's just interesting to watch. The soccer players are making, I mean how many millions and millions per year, Andrew, it's like free throw shooting for the NBA players. Why they can't do that thing that they know all the time. I'm sure I've offended a lot of soccer fans. I have to admit I actually do get sucked in and watch it cause it is exciting and I'm glad to know it can end in a tie. Yeah, I'm glad you learned something on today's show or something. Do
Speaker 2:
11:54
you know successful retirement is Paul are not built on assets are built on income and your ability to generate income when you want to quit working. And if you don't have a specific plan to do this, you're probably going to run through your money way too soon. You're going to take on more risk. But the good news is there are some actually surprising attractive options that you probably don't even know exist. And what we'd love to do is show you how to turn your current savings into an income workhorse for retirement. Come in, there's no cost, there's no obligation and there's absolutely no sales page and there's no product to buy. It's a listening session to really get to know you. Are we a fit culturally? Can we do a plan and come up with your family index number then show you some nontraditional ways to really generate income in this environment. Give us a call. Eight eight 84985138884 nine 85 13 I'm Ron Carson with Paul West and you're listening to wealth and wisdom.
Speaker 4:
12:51
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 there hall, the same advisor. Yeah,
Speaker 2:
12:59
Rod Carson.
Speaker 4:
13:00
Is it possible you could pick fewer taxes in retirement and keep this money for yourself? You could learn right here and right now. Unwelcome wisdom with Baron. Taller boom advisor, Ron Carson. According to him,
Speaker 2:
13:13
Pew Research, the world was home to nearly a half a million centenarians. People over the age of 100 and older in 2015 which was more than four times as many as 1990 but guess what? The number is projected to grow by more than 700% to 3.7 million in the next 30 years in. If you'll listen to singularity, they're saying within 12 years or less, and I was a year ago, so 11 years or less that they think we're going to be a breakaway velocity and you're not going to die of natural causes. So you really have to plan for retirement. Then welcome back to wealth and wisdom. I'm Ron Carson and with my cohost Paul West, and thanks for joining us today. Coming up on this segment, we're going to talk about the markets because the markets play a big piece and really psychology and behavioral Paul and to why people run out of money.
Speaker 2:
14:01
And I love what Warren Buffet says. He says he don't be fearful when everybody else's brave. Be Brave when everyone else is fearful and what we have, what has happened, I saw this on the 1987 crash. I mean people that finally got into the market right towards the, I remember that August before people were pouring it and cause this time was different only to see a third of their portfolio wiped out and two trading days. Then we had, you know, Short memories. Finally people started getting back in again only to be set up for really, there was a couple of bear markets in there, but nothing like the.com meltdown. We had a huge run up in the late nineties especially 1999 I think the Nasdaq was up over 80% that year alone. And then we had the financial crisis. People were just getting back in again and here we've had a long period and this is where if you don't have
Speaker 3:
14:52
a plan, you're going to get sucked into these human behaviors that repeat themselves over and over and over again. Yeah, and I call it the recency bias, Ron. That's happening and we're even seeing that here in quarter two versus quarter one. Quarter one was very volatile. I'm way more volatility and certainly had even in all of 2017 quarter two at last, but uh, but people are starting to get complacent. Again, I was talking with our chief investment officer, Scott Kirby about this earlier this morning and actually had a person reach out to me about returns and what's going on in the market and what's happening. So I share over the last 50 years, so this is the last 50 years of the stock market. It's actually averaged 10.09% what time period was at 50 years? 50 years. Okay. But over the last 10 years, which still includes 2008 which was as we know, not a good year at all.
Speaker 3:
15:47
It's 6.88 so that was from earlier this year. I don't have it as of today, but that was a couple of months ago. So think about that since its inception. And I had this discussion with people all the time because of recency it the last 50 years, and we've had some incredible runs here, really tend to now run, you know, is you know what happened the late nineties and what went on, but since the beginning of the market, so let's go back to the 1920s here, the market has actually returned 7% so when we're helping people build financial plans, if I think of a growth base plan, we're talking about 7% or seven plus percent, we're not talking 10 plus percent people. Last year, 2017 was an anomaly. Everyone, I mean, listen, I mean it was, it was up 20% with the least amount of risk we've seen. That's just not reality. And I think now Ron, maybe we should talk about is we're seeing people are quarter one was a reality check, right?
Speaker 3:
16:46
You know, when those things happen in life to your gut, you get a health scare or something happens, you're like, okay, I'm back to normal. I'm not going to keep doing what I was doing. Well, what happened? It's now past the 4th of July, quarter two. We had a nice quarter. It was up a little bit. People are starting to forget about what happened in quarter one. They're starting to stretch out the amount of risk they want to take. And there's some big obstacles. So what's one protectionism of it? Paul's on intentional. They don't even realize we're building additional risk in their portfolio. Absolutely is happening, right? Yeah. Well, one way that's happened, he's inflation. They don't even realize it's happening. Um, but to protectionism, right? That's certainly a popular topic today. I know all of our portfolio managers are looking at it, but protection is, it doesn't mean you have to make a rash decision on getting out of us are getting out of global or whatever.
Speaker 3:
17:35
It align. You stand on here. What it does mean is maybe you need to look at your overall investment lineup and figure out what's the right asset allocation between global and us. That Ron I think can always be tweaked or another popular term is rebalanced inside of your portfolio. It takes discipline to do that by the way. It does rebalance. Absolutely. And I think, you know, take us to the car square. We are even looking at global a lot more. Last year it was very popular. It did really well. Well there's been some new indicators right now about inflation being a global risk. Um, and there's been some European weakness. So, uh, I would say some of the, the, this, the heat that was going on at in a positive momentum has now turned heat towards a negative direction. Uh, for that. Overall, I'm not saying we're getting out of that asset class, I'm just saying times change what was popular doesn't mean it always is going to be popular here in the future.
Speaker 3:
18:28
Well the s top style has been growth and you know, valuations are stretched and here, especially for growth stocks. But if you look at value stocks, they are, you know, they are definitely cheap relative to growth. And you know, there's two, there's value socks and there's growth stocks and value stocks or companies that are more established, better round, don't have a lot of extra, you know, growth ahead of them. But they paid, you know, high dividends. These are companies you probably want to take a look at today. International, the same thing. Emerging markets have gone through a real bear market, right? They've had some significant sell offs and so, and in energy, I mean energy is one of those areas that um, we as an organization still or we've been bullish wall before, it was consensus to be bullish. And so this is what you want to do in our portfolio is don't get sucked in to where all the money's flowing, what everybody's doing.
Speaker 3:
19:21
You literally want to take the contrarian approach and it can trade approach will by definition allow you to not be where everybody else is, which provides less downside risk historically then crowding into these crowded trades. And that's really what we're seeing happening today. I mean everybody's buying growth stocks. Yeah, and I think Ron, I think as we think about all the different things going on in the economy from as you talked about corporate earnings, I've talked about protectionism. You know, other thing is is really is our co economy actually getting overstimulated. I love Scott Kirby or chief investment officer talked actually earlier today about are we getting too much caffeine into the economy at the moment in terms of the tax cuts, additional spending and as the Fed eventually going to overreact and keep raising rates too fast that could have a negative impact. I don't know.
Speaker 3:
20:09
Um, and actually run, I would just like to offer this to all the listeners. If you want a copy of our slides and what we talk about, we do a quarterly market outlook. If you want to send an email that's fine. It's info@carsonwealth.com that's info@carsonwealth.com. I'm happy to have our team send you the slides. It also be on our website or if you would prefer to go to those types of meetings in person and learn more about that. We're actually hosting one to talk about what we've seen halfway through the year. We call it our halftime report. That is on Tuesday, July 25th it is at 5:30 PM at 130 second dodge. You do have to Rsvp, but you do not have to be a client. Do not. There's no obligation
Speaker 2:
20:48
to become one because you want to hear what portfolio managers are thinking about the market. 88, eight four one nine 85 13 they just get need to get your name so that you can show up at the door. Um, if you want to do that once again on Tuesday, July, what does that, uh, 24th 25th I'll get the back to you. I'll figure it out here, but let's talk about 24th sorry. Yeah, it's July 20 your certain I'm positive. Tuesday, July 24th for the third time. You know, the market right now is putting the odds at 48% for four rate hikes this year were, we think it's higher than that. But here's a real positive thing is the fact that we've been able to raise the Fed's been over to raise interest rates and the market has as really dealt with it and we get to a point where we get normalized interest rates.
Speaker 2:
21:36
I mean a that gives a fed ammunition on down the road if they need to cut interest rates again, but be things, the sum of these funky things that have been going on, you can actually get a return on savings. You can get a return on money markets, you'll bonds become more attractive. Um, today though I'm in, we're doing our call on municipal bond ladders. Paul, I'm shocked at how good he yields you can get because we have a pretty flat yield curve right now. You don't have to go out very far. You can pick up what, 70 80% of the yield with fairly short duration the first three years. And you know, so people are sitting around getting zero or close to it in a money market. And I think you can get what, two and a half tax free and you know, and keeping it very fairly short.
Speaker 2:
22:21
I mean, that's, you know, these are some of the little things we talk about. An income workhorse in your portfolio. Make sure all of your assets are taking and getting as much return as they can relative to the downside risk. You're willing to take with your portfolio? Yeah. Well I think we're the also plays into people who put all their money into bonds. They are not there. D were certified at that standpoint. Now ladder helps protect them a little bit. But one of the biggest mistakes we see people make, and it happens all the time when callers call in and by the way, don't be embarrassed by if you have questions, they're all good questions. Our jobs to help you if you're not a professional, you need to work with people who have trained. We have CFPs and other professionals on staff that can help all of you out, but have an income diversification plan that helps you, whether it's bonds, whether it's your stocks, whether it's rental income, uh, whether it's your social security.
Speaker 2:
23:15
That entire combination is what helps you. Again, as you don't see people go plant a garden with just tomatoes, they usually have other stuff with it. Peppers, onions, cucumbers. Actually probably I'll put cucumbers and salsa, but we could maybe try it and I work. Maybe mangoes weren't good and salsa, but right now Paul, he ran a good low risk. Bonds are yielding more than the s and p 500 and a flow rates after the financial crisis spurred investors to take on, you know, a lot less risk. All of a sudden this in bonds, 10 10 treasuries, especially if you get a financial crisis, they actually rates come down. The value of the bond goes up and having a diversified garden, like you said, lots of different income sources, but making sure each income sources maxing the amount it can contribute for the relative amount of risk that you're taking with it.
Speaker 2:
24:08
We see very inefficient portfolios or taken a ton of risk and not getting the return. I want you to talk about the workshop. We have the quarterly market outlook coming up here. Yeah, Tuesday, July 20 fourth@fivethirtysoyoucanactuallygotocarsongroup.com you can look or you can watch the video. I think the video is actually already out there, isn't it? I think soon we have shown, if it's not, it'll be soon or you can come and you can actually do it here in person. There's absolutely no cost and no obligation, uh, to ever become a client of Carson group. If we help you become more educated, you make a better decision than we feel good because we've made a contribution and it does sometimes make sense to get a second opinion will absolutely give you a second opinion. Your portfolio. If we can add value, we'll ask for the business. If we can't, we'll absolutely tell you that we're not in to just change the relationship for the sake of changing a relationship.
Speaker 2:
25:02
Call US eight eight eight four nine 85 13 that's eight eight eight four nine 85 13 I'm Ron Carson with Paul West. Coming up on the next segment, we're going to continue to talk about more financial stability. We're all going to talk and touch on social security, but what are the things you can do to ensure you don't go broke? We'll be back in just a moment. Could you make your money go further in retirement? Learn how unwell from wisdom with their Intel and 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. According to MarketWatch social security to tap into the trust fund for the first time in 36 years and Medicare trust fund will be fully depleted with current projections by 2026 and I'm sure this isn't the first time you're hearing about the financial stability of social security and Medicare, but the question is the big question, the only question that matters is how will it specifically impact you?
Speaker 2:
26:08
Welcome back to wealth and wisdom. I'm Ron Carson with my cohost Paul West, and thanks for joining us today. We're going to continue to talk about not going broke. One of the things that you need to do, and we're going to really set the record straight on a lot of topics in one, is that you have to take a lot of risk in order to get income and that's, that's just not, that's not the case. Paul. Today we're seeing um, dividends on good and you just can't buy dividends blindly. There's what we call the dividend trap. If there's a real high yield, you put money into it. There's a reason if a, if it's something looks too good to be true, it probably a great place to look today is value stocks. But more importantly, before you even start that process is what is your family index number? What's the number that you need to hit in order to get an attain your goals and objectives. Then after you know that, is it consistent with your risk budget?
Speaker 3:
27:00
Yeah. So I'm going to go back to what you just said in the prior segment, Ron, to make sure people understood what you were saying. The yield, the dividend healed with payment yield on short term, mainly government securities has now hit the crossover point between that of s and p stocks. So how many of you go online and you're do it yourselfers you're on your fidelity account, your TD Ameritrade account, and you do a search by yield and you're looking up high pay in stocks. But like you just said, Ron, that doesn't mean they're going to increase in value. That maybe pain do something. So now what this is telling us is the risk associated were more importantly, the risk adjusted return you're getting is less than if you're using short term bond type vehicles. That tells me a lot and people who may say, what in the world you're talking about, it's really this simple as is I got to, we got two cars right next to each other and they can both go the same speed, but one, one now is going to take less gas to power it and it's going to be safer if I got into an accident.
Speaker 3:
28:09
Yeah. So which one would you choose? Yeah, it's pretty simple to me. You may not have that as your only vehicle, but you got to figure out what's the right one for you.
Speaker 2:
28:21
Hey, let's just talk about preparedness for a moment with our society. A year ago there was a survey and 55% of people, this is according to go banking rates. Um, 55% had 10,000 saved for retirement today. That's 42% I mean, that's a huge drop in just one year period of time and you see these specially in a good market and a good market economy savings. Maybe they took the savings out and threw it into the market. Paul, maybe that's what have auto home or did something so they yell. I you hear too, how far can $1 million go in retirement? It's the absolute wrong question to ask, you know? Sure. You can plan on all of those things, but really it has to come back to what it is you're trying to accomplish. And I'll use the example if we're here in Omaha, Nebraska, hey, you know what we're going to do?
Speaker 2:
29:13
We're going to go, we're going to take, the kids were going to go to Disney world in Orlando and this Philip Dick tank full of fuel, and let's just see how far it takes us. Yeah, right. You know you're, you're absolutely not going to get out of the state of Nebraska. What I would suggest you do is you fill up the tank and you go, this is all we have. Instead of shooting for Orlando, which was no way to make it, that you can actually go to adventure land, eventually land, you should get to adventure land and back and still
Speaker 3:
29:42
have an experience that is successful versus shooting for an experience that can't be successful because you're starting out with not nearly enough resources. And at the end of the day though, Ron, isn't it about life's experiences and being with people anyway. So if you go look back, sure have been nice to say, hey, we went all the way to Orlando, but then the rest of our life was miserable. Instead is you go when you have fun and you get to keep doing other fun things all day long that can help you out. And I mean, one of the things that many people around, and we talked about all of the time on the show is social security and doing it correctly. But one of the things I think we have to talk about with people, and it's not exciting radio banter, but Medicare is, you gotta be careful with that because if you don't make the right social security decisions, you're impacting your medicare decisions.
Speaker 3:
30:37
And now this creates, so when it's cold out, one of the fun things to do is build a snowball. What happens if you're up on a hill and you build a snowball and you push the snowball down the hill? What happens to that snowball? It collects a rolls. Yeah, you're good. You're tracking with me here. I got it. But it builds, it gets bigger, right? It gets bigger and size and mass, but it also most likely builds in speed. It's rolling down the hill because of the momentum that's playing along with that. Well, that's what you're doing when you make mistakes with your social security, medicare, you're just having them build on top of each other. You're creating a bigger snowball that's pointed right at you, and you're stuck. You can't move. It's going to hit you and it's gonna hurt. It's gonna hurt, meaning you have to go to adventure land versus Disneyland or uh, you wanted to get a new car, but you've got to now buy a used and not buy used, you know, 2017 models.
Speaker 3:
31:35
You've got to buy a 2002 model based on decisions you make. Because what's probably gonna happen is with social security, they're going to figure out a way to fix it and the 2000 thirties but with Medicare, I don't think they have a choice, Ron, they're going to have to raise the monthly premium. And so right now the ranges on the low end, you pay $134 a month for part B. On the high end you pay $428. What if that creeps over 500 and then to 600 all of a sudden, well, you said, what was it earlier? The average person spends $42,000 a year in retirement. Well, what if this somehow gets up to $700 a month and that's 8,400 what if 20% so 8,000 of your 40,000 is going to Medicare. Oh, that's a problem. It's something you probably never planned for as part of your overall financial plan. You should. Let's talk a moment, um, Paul about reverse mortgages and this is again, you may say I'm uncomfortable with reverse mortgage. You may say it's a great thing, but it's something they
Speaker 2:
32:40
should be considered when you're putting your financial plan together. And the way it works is you have a house, you have equity in the house, and you can start having your house pay you and you start taking that distribution from the equity in your home. It's another income source when you're gone, when you're, when you and your wife were gone, you can set it up toward, as long as you're living, you are, you are protected from not having to move out of the house. And I think a lot of people going, oh no, that's completely sacred. Okay. If it is, then what kind of lifestyle can't we have without it. But for many people, um, the home that they have is the single largest asset that they own. Yeah. And use all your other assets are on, use your investment accounts, you use your Iras, use your savings, why not use that to your advantage?
Speaker 2:
33:25
It actually can be a good planning technique for the right people. And there's not always, they don't always get them through banks. You can get them through other sources of lending companies, but they've got to make the right sense for you. Hey, speaking of banks were on, actually I just want to say this next weekend. Um, thanks to Pinnacle Bank, we have a great golf tournament here in Omaha at the Pinnacle Bank. Classic. Yes. We're actually going to be out there, Carson wealth. So if you want to come meet us on hole 17, we'd be happy to say hi. If you're a listener, please tell us and give us ideas for the show. What do you want to hear? What do you like? What do you not like? We'd be happy to do that. And Actually Ron, I think, um, somebody wants, we have a couple extra tickets. So if you call in to the show, talk to our, our listeners that are, excuse me, are receivers and pairing listers.
Speaker 2:
34:09
Do I receivers and they can help. It has been. Can you believe it? It's moving quickly. So just thanks again. It's fun to see the community supported that way. It is. And thanks to Pinnacle Bank, what a great corporate citizen of our community. I have tastic um, claiming your social security is complicated and it's riddled with trapdoors. Your decision to claim social security will impact a lot more of your benefits and you can believe and what I can do is trigger an avalanche of taxes, double your medicare premiums like cause you to forfeit your spousal benefits. Ultimately can cost you thousands and thousands of dollars and your only defense to ensure you get every nickel that is rightfully yours. Get a customized social security analysis of your specific situation. Now sometimes firms charge a lot of money to put this together. You can have it a five point social security analysis and here's what it's going to show you. The price precise timing to get the most out of your benefits, the secret to boosting your spousal benefits and how you can avoid sending your medicare premiums through the roof. Also, strategies to eliminate or minimize taxes on your social security benefits and also be eligible for additional benefits that you may not even know exist. See if you qualify. Five social security analysis now at eight eight eight four nine 85 13 that's eight eight eight four nine 85 13 give us a call. Eight (884) 900-8513 I'm Ron Carson of Paul Weiss. And you're listening to welfare. Yeah.
Speaker 4:
35:45
Was that trust, transparency, accountability. These are the values that drive Ron Carson and Carson. Well, you're listening to wealth from wisdom with baron, tall 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 wealth from wisdom with Barron's hall of Famer, Divisor Ron Carson, the single biggest factor.
Speaker 2:
36:13
Good that could impact your life, your lifestyle in retirement. The single most important factor will be your ability to generate income from your savings. If you fail at this, it could be the quickest recipe to running through your entire life savings far too soon. Welcome back. I'm Ron Carson and thanks so much for listening to the show today. I'm here with my cohost Paul West. If I'll actually knew somebody back and a well known name, I won't mention it, but has sold their company many years ago for so much money. They thought they could never run out. Well two things happen. One is they invested that money super conservatively and to treasuries. And then in those days treasury yields were pretty good. Uh, and the other mistake they made is they had a huge lifestyle and then they made some investment mistakes along the way and all of a sudden they went from a position of never needing to think about money to all of a sudden out of money.
Speaker 2:
37:09
And so it doesn't matter how much you start with, if you don't align with your family index number is and really have a game plan. I want to talk about a couple of other things that people can do that are nontraditional. One is, I don't care what your age is and you want, you know, that number, that number that you need for your family. Is that consistent with your budget or your downside risk by Jay. Consider starting a small business or investing in a small business or being a passive owner. You know, looking at, you know that small businesses can, Eh, you're true, you're working, but you could take something that maybe you can get pretty good distribution yup. Out of that business. Um, and you're taking more risk. But sometimes people feel comfortable with that because they're actually involved in that business day to day.
Speaker 3:
37:59
They got their hands on the wheel. Ronnie, it also helps them, it helps them save taxes. Sometimes it's a way that can be very beneficial. Also, there are credits, um, and benefits by the state. I know the state of Nebraska has done great. Ron. I mean, think about us here at the Carson Group. They've helped us with our growth in terms of by adding new jobs. Yes, it's been a great thing. And so if you have your own business or have some employees look at your tax structure of this and how you're set up, whether as an s corp or an LLC, and if you haven't really looked at it with the new tax law, you need to, you really do because some be some tax advantaged advice. And don't let this, here's what's going to happen for most people today, Ron. You know, and they're going to make a change may April or May of 2019 because they just let 18 happen and they're going to wait till the taxes to tell him what happened.
Speaker 3:
38:51
And then they're going to get irritated and wish that they would have gotten it done. But don't go meet with someone now. Meet with the CPA professional, will meet with the CFP, meet with someone who's going to give you unfiltered, unbiased fiduciary advice to help you make those right decisions. And so Ron, I think we're talking about now, how do you make the right investment choices today on the show? And there's a lot of different ways to make the investments, you know, between dividends and bonds. And we've talked about those that sometimes we tell bonds and you start talking about general obligation. You talk about revenue bonds, you talk about municipals and corporates. People get glossy. I they don't know what's right. You're relying on professional. So I thought of, what's another B word that we could use to show people a comparison of, there's a lot of different choices.
Speaker 3:
39:41
You just got to pick the right ones for you. So let's use something from your farmer background. Beans. How many different types of beans are there? Lots. Lots. Lots of beans. Tons of beans, black beans, pinto beans, Lima beans, common beans, chick peas, kidney beans, black eyed peas, navy beans, soy beans, broad beans, black turtle beans. Think of all these different types. Which one's the right one? I don't know. Depends on your specific situation. It depends on your likes, your dislikes. What do you want? What are you cooking? What do you want to play on the field? No, different from, don't assume I'm going to get into bonds. W I don't want you to do lists are so this is the mistake we see this all day long of the Carson group is and you got to avoid this right now. If you are in a bond mutual fund, watch it. If you think you've made an investment, because that's basically saying I think I like all type of beans but I'm going to throw them all in the pot. Sturm up, heat them up in the, eat them all together. It won't be perfect, but at least I'm eating my beans. That's not the case. No, not at all. You're taking risks with your bond fund because other people are selling in that fund are buying when maybe you don't want them
Speaker 2:
40:46
to. Well the nice thing with the von Ladder, absent them going broke, you can buy the bond. You know what you're going to get at a very specific time in the future and strongly recommend owning individual bonds over the fund. Another area, Paul, that people might be surprised as real estate. I mean there is a real shortage of affordable housing. So get that house, fix it up, even if it's taking money out of your account with wherever you're working with and you can get a pretty good yield, especially if you can afford to take something and add the value because you're handy. And a lot of, we've seen a lot of our clients over the years make a lot of money through rental real estate.
Speaker 3:
41:29
Yeah. Um, but I would caution be careful with that. Um, walk you run Heran so, uh, another family I would share did that. And the first home that they went and worked on, what happened? Well, I got to fix something in this room. What do they do? Well, now the next room doesn't look quite as good. Oh, now I've got to fix the next room a little bit. And all of a sudden they ended up spending an extra hundred thousand dollars on fixing up this home and they went to go sell it. What happened? They didn't make any money actually, you know what? They lost a little bit of money because they put too much money in it, so learn, right? We hate guess. I always remember when I've made mistakes in my life. That's when I learned best and so that's why I always say walk before you run or you know a very famous Collins phrases, what fire bullets over cannon malls?
Speaker 3:
42:20
It's do the same thing with your money. If you don't understand something, what if a friend of yours asks you to get in a private investment? Well, you better certainly understand the risks, but if you do dip your toe in the water. I'm a full of all analogies for you today, Ron, but we, we've got to figure out a way. If you're a listener and you're trying to step into a new territory of financial that you've never experienced before, if you don't have a professional, and even probably if you do, find a way to approach it diligently with a little bit, don't take too much risk because trust me, like we've said before, is something looks too good to be true in. Most likely is
Speaker 2:
42:58
you make a good point on investment. Real estate, especially, I learned this, the very first house I had that was a fixer upper is don't, don't put money into it based on what you want to live in because that's different than your all day. Exactly. An investment. Um, three important words that we had today, Paul, for this whole show is getting the income right, but before you can get the income right, you got to get downside risk. Right? Here's an interesting statistic from MarketWatch 82% of married people in their late forties who had children said running out of money in retirement was her primary fear and just 18% said death was a bigger concern. Think of that. People are more afraid of running out of money than dying.
Speaker 3:
43:45
Yeah, I believe it, Ron. I mean the last thing we wanted to do is if you're flat broke, no you don't. And we don't want to have to go back to work. And probably a little bit of is we don't want the shame Ron, like did we not plan well enough or did we overspend? Did we make a mistake? Shames probably one of the hardest feelings for people to overcome, but it's also one y. If you work with a financial planner, you, you can eliminate or reduce that emotion, shame, embarrassment because you can trust someone else to help you out.
Speaker 2:
44:22
Hey Paul, would you give the date for the quarterly market? You can go listen to it online at [inaudible] group.com you can actually attend in person and you're also tickets away, uh, for the golf tournament. Yeah. So Tuesday, July 24th, five 30, uh, be about 45 minutes. You can hear our thoughts on the market. If you just like the slides, you can email us@infoatcarsonwealth.com. Also, I believe they still have a few tickets left. If you want something you can call us at eight eight eight four one nine 85, 13 proud of local supporter of the Pinnacle Bank Golf Championship. And also if you want a second opinion, you'll want to know what your downside risk is. We have the risk tolerance questionnaire you can go through online, gives you upside downside risks. Now's the time to do that plan appropriately. Investor behavior is what destroys value. I'm Ron Carson with my cohost Paul West, and you've 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
Oh, 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 mean not be invested into directly investing involves risk, including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CW m L L C an SCC registered investment advisor.