Wealth from Wisdom

Becoming Financially Independent

July 07, 2018
Wealth from Wisdom
Becoming Financially Independent
Chapters
Wealth from Wisdom
Becoming Financially Independent
Jul 07, 2018
Carson Wealth
Show Notes Transcript

What does it mean to be financially independent, and how can you get there? Learn all about what being financially independent means for you.

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. I may not be invested into directly. Investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an SEC registered investment advisor.
Speaker 2:
0:31
The stock market hit another all time. Records as much as $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 250 the skyrocketing cost of healthcare and retirement could now run 350,000 blending for retirement. Today is a whole new ball game. It's loaded with challenges, obstacles, and trap doors, but you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson. What does it mean to be financially independent?
Speaker 3:
1:12
It means you have assets that are producing more income than you have expenses. So having a job or needing to go to work every day is no longer an obligation. It's a choice, and I've known a lot of people in my career that they cross over that line and it makes such a difference. Matter of fact, sometimes there's second part I maybe have the same career is 10 times more productive because they don't have the worry of money. When you become financially independent, it'll change the way you view the world. It'll change the way you think about everything and it's so worthwhile. Thanks for joining us today on Ron Carson with my cohost Paul West. You're listening to wealth and wisdom. Today we're going to talk about becoming financially independent. Here we are, Independence Day weekend, and it's a big deal. We liberated ourselves. It was great time. We want you to have the very same thing for you and get rid of the notion that you have to be a certain age, like 65 to become financially independent because we see it happening all the time.
Speaker 3:
2:20
It's the holy grail. It is the secret to having a richer life when they say money can't buy happiness. It's only partially true because once you take the financial pressure off the, even the Harvard Studies Dan Gilbert show, it does buy a ton of happiness. And one of the biggest factors, and you've heard us say it here before, wealth from wisdom is it's about your behavior. It's about how having a plan, sticking to the plan in having an wavering commitment is really all it takes. The rest of the everything. You know, the market, the economy is up and do the right. Yeah, we have pauses. We ask some scary times and that's just the way capitalism in our capital markets work. But if you can have a plan and stick to that plan, Paul, it's really not that complicated.
Speaker 4:
3:11
No, it's not. And I, it makes me think about Ron. Um, you said something about age 65, so we have a stigmatism in our brain for certain numbers. So 65, what do you think about retirement? Yes. Medicare. So I'm going to ask you a question, Ron. So what do you think about, what are you going to do at age 16? Drive? Aright 18 but I was 10 when I started driving. When you lived on a farm, so that was acceptable. What about 18? What do you get to do? Went to the service service. Yeah. Yup. You can vote. You can smoke whatever you want to when you're 21 your favorite. I actually smoked when I was probably nine. Okay. So before you start it in my tree house, I'll remember. I'll never forget it by the way, cause I'm like, oh my God. It was best thing that could ever happen because it was like Whoa, this is the worst.
Speaker 4:
3:56
But yeah, it was, I remember how nervous I was going to the gas station and buying a pack of cigarettes and my buddy and I try and um, it was awful. It didn't work out well, did it? No. Actually, it's funny, I've, I've shared the story. A chance to meet Joe Buck was a financially independent then, so that was a big investment. Yeah, well hopefully you didn't steal them as a young kid. Um, so actually Joe Buck's funny, you'd actually told us a story several years ago, Ron, that um, you know, how did he become a failure, you know, a famous and then hall of fame radio broadcaster and his father told him to start smoking again, his radio Voice, which I thought was funny, but I bring up the story about being 1618 he still smokes, I think doesn't he does, yeah. And then 21 well, I think he does. I haven't seen him in awhile, but 21 the right to drink, but you attention a number and you think that's the date you get to do something. Um, retirement doesn't have to be that way. It doesn't have to be that 65 number and actually go look as whole security. That number is increasing when 66 and now it's going to be 67 soon. And you can answer, and I'm glad, I'm glad
Speaker 3:
4:59
calling this financially independent and not retirement cause I think retirement is an outdated term anyway. It's it because it does set people up to think you have to be a certain age to do something. But I have seen people that once they cross over that line and they realize whatever their day, their time, what they get is a 100% their choice. If they don't want to go back to the job they are at, they can even entrepreneurs that start a business, at some point they have breakaway velocity and now all of a sudden they sit back to take enough chips off the table to say, you know what? This will sustain my lifestyle. And they start making even better decisions because they're not, you'll gripping the, you know, when you grip the golf club to tight, what's it do? You don't hit as good a shot when you're loose and relaxed. And that's, I'll use that analogy. That's exactly what it can do for you. You'll make better decisions in life.
Speaker 4:
5:50
Yeah. And then on the contrary of that though, Ron I would say is financial independence, is making sure you have the right plan in. And so I'll tell you, and you actually know this individual to retired about a year ago, I'm a successful business person here in Omaha, Nebraska, and now about a year into their financial independence, they didn't put together a plan, but they just figured that enough money, they had reached a milestone number. And so now a year later they didn't put a plan together. What's happening? He's fretting over decisions more than ever before because he doesn't have a 100% confidence. When I think of financial independence, I think of a hundred percent confidence of your plan. It doesn't mean you can go spend millions and millions of dollars. It just means you're free. It's like that first time you're four years old, you're riding a bike with training wheels and you got to take the training wheels off, and I remember this is a kid and you're, I'm riding down the street. The first time that you're turning the wheels, you feel this sense of independence, right? It didn't mean I was going 30 miles per hour on the bike or even 20 it just meant I was free and I think that's the same way you need to look at retirement is how do you feel free and comfortable in every decision that you make.
Speaker 3:
7:04
I remember a few years ago having this conversation with a group of peers and we were saying, okay, what is your number? How much money? How much wealth do you need in order to be financially independent and and feel just comfortable and everybody had a different number and the number was the difference. The delta between the two is huge. The point is everybody had different lifestyles, they had different ways they envision living their life when they were financially free and that's the key to the plan is what is it you want? If you want to do and have a lot of things, it's going to take more time. It's going to take more early sacrifices. If you're saying, you know what, I can live a more simplified life and here's what I want to do and quote unquote, when I'm financially free, then that's a whole other, that's a whole other, you know, a lot lower, right?
Speaker 3:
7:52
A lot less income that you need to be satisfied. But having a plan that's proactive, not reactive and a good plan isn't static because every day, you know, we do a plan or your advisors doing a plan. It's a projection of things in the future. Well thanks, change interest. So he changed the markets, change your goals and objectives, change each day of projection that you live becomes a day of fact and reality, right? So then that makes an adjustment. So it needs to be a dynamic process, but once you get the big decisions or the structure of the skeleton put in place, then you're going to find you're going to make a lot better decisions much easier. And especially if you know what your family index number is and that's a number that your family needs in order to be able to hit the goals that is appropriate. Also in a, in a risk budget for you that you're not taking on more risk than you're comfortable with.
Speaker 4:
8:46
Yeah. So this makes me think of a famous movie Ron, the wizard of Oz. So his eyes in front of the curtain or behind the curtain if you remember the movie. So I'm, I'm going back in memory behind the curtain. Behind the curtain, right. Well sometimes, but it depends which side of the curtain you're on. Okay, well if you're on his side, I'm going to go from my movie watchers pointed view of the thanks for making this not such an obvious it's chin then, but he's behind the curtain. And I think about, and I'll share this recent story is I was talking with an individual and you know what? This, this gentleman has a good job, a really good job around, actually I'm a salesperson and a great career. His kids go to some private schools, they drive a nice vehicle, they live in the suburbs.
Speaker 4:
9:28
You would think everything looks wonderful in their life. They go on nice vacations, so in front of the curtain and they look financially independent. They look great. But then he kept avoiding and he's like, I got to talk to you, but then kept putting off meetings and why I couldn't understand because on on the outside front of the curtain and they looked financially independent. Things look great. They were doing the right things. He told me he was saving it for his four one K at Sandra. He eventually told me, and this may happen to you as a listener, is I didn't come in to meet with you right away because I was embarrassed. I wasn't saving enough like I thought I should have been, but I didn't want anybody else to know that, so I was embarrassed. I said, well, how long have you been waiting to have this conversation?
Speaker 4:
10:13
Five Years Ron? Like because, and by the way, there's a part of privacy and confidentiality that comes along with being a fiduciary. But imagine if he wouldn't have had the courage to step up and say, you know what? I want to be financially dependent. I'm showing the whole world. I am behind the scenes. I can't sleep at night because I haven't done all those right things, but I don't know how to pull back from my lifestyle to become 100% financially confident. So I'm gonna Change for financially independent and financially confident and the pressure just in society, going back to being embarrassed as a facade of trying to keep up with people, people that you know, overspending because no one's really looking at how much debt you have a consumer debt. They have no idea. Salute cancer to being financially free. Yeah. And I said, it's a warrant.
Speaker 4:
10:59
And I said, this is where he got to make the decision here is, here's the pain is they needed to throttle down of course expenses to make this happen. I'm not saying they needed to downsize their house, but you know, maybe not a new car every two years or a new boat or you know, maybe they don't need a $10,000 trip every year. Whatever it is, little things that can increase their plan. But knowing that they had a better pathway to financial independence and that was the point for him. And he said, if it wouldn't have figured out how to sequence it and figure out those steps, he'd still be sitting there late at night feeling embarrassed and worse yet that no one had any idea how much financial strength he lacked rather than what he perceived and wanted to show people. So don't be afraid or be embarrassed. There's confidential conversations that happen that can help you out if you're stuck in this situation. Hey, the first day of rest of your life is
Speaker 3:
11:54
today. The past has bedrock. It's unchangeable. The future's clay to be molded day by day, be proactive, take action, having a plan. And there's such a huge Delta between uh, and quality of plants that we really see coming across here at the Carson Group. So make sure it's one that you have total confidence in. And also getting a second opinion, looking at all the things, all the pieces, all the assumptions. And you know what? If we give you a second opinion and we can't add value, we're not going to ask for the business. If we can add value, we're going to tell you exactly so you can operate in a fact based environment and sometimes fall. It's just overlaying logic to the process. I mean just it's doesn't have to be that complicated. Give us a call. 888400900 85 13 that's eight eight eight four nine 85 13 today's the first day of the rest of your life. It's your money. Be Proactive. Eight eight eight four nine 85 13 I'm Ron Carson with Paul West and you're listening to [inaudible]
Speaker 2:
12:50
some wisdom. He seemed good times and bad times and he's got the gray hair to prove it. You're listening to wealth from wisdom with there and tell the same 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 Fame Advisor, Ron Carson. You don't have to be 65
Speaker 3:
13:14
years old to become financially independent. Matter of fact, I would say no matter what your age is, today is a day to start taking control and being proactive. And not reactive. And it's really not that complicated. I'm 36 years in this profession and the people that have done the best have an unwavering commitment and they stick to the plan. Welcome back. I'm Ron Carson and you're listening and wealth and wisdom with my cohost Paul West. Today we're talking about and in the spirit of independence and the u s and the 4th of July, uh, independence for yourself, giving yourself the ability not to have to live your life because you have to have a pay check to pay the bills, but you've put yourself in a position where you just don't have to think about it or worry about it. And Paul, last week I was to that note, I was in Boston for the entire week and the end of the [inaudible] great.
Speaker 3:
14:06
It is great. It's a great city. I mean New York is fine, but Boston has just a lower, slower pace and it just laid out. You can warm up the rest coffee establishments in the world there. You know, we were down in Creighton today because I'm going to talk about creating here in a second. And we're going to be, Carson group's going to be doing some naming of part of the hydro business school. One of the rooms. Common areas. Yeah. Well of course it's a great, great place. Um, but you know how many, how many, here's a trivia question. How many Starbucks is crate and have, I'm going to look at my credit and people in the room here and guest one. One. Okay. How many Dunkin donuts or they have, well coffee cups or locations. They're just, just keep it either, right? Oh, where'd it goes?
Speaker 3:
14:52
Zero locations. So they're going to add another coffee resource. Who Do you think it is? Duncan? Of course. Starbucks. They're running to Starbucks. So, and that has nothing. All I does in a way because you think about how much money you spend for a cup of coffee, a cup of coffee. Right? And if you just the latte factor every day a latte and you look around of all the ways that you're spending this money, that compounded, especially if you're young. My Gosh, the difference that'll make. So back to Boston, I was in Boston for the week ahead. Some stuff with fidelity. Of course we had some of the Carson group. Then I have a mastermind group and this is a group I've been with for years. We get together, we talk about our businesses. We really take a step back and think about what are things we need to be doing to get ahead of what's coming at us.
Speaker 3:
15:42
And a lot of times we bring in a speaker, we go visit a company and we visited Cogo labs and Cogo labs. You may have never heard of. They have the largest data repository in the world. They're located right across the street from MIT and they eat 24 hour period. They download six petabytes of data. Now if you're saying what's a petabyte cause I did, I was like, what's a petabyte? One? Petabyte is a thousand terabytes. Okay, well what's a terabyte? 1,000 gigabytes is a terabyte and a gigabyte is 1000 megabytes. It's just a lot of data. I mean it's enormous when you think of a petabyte of data, but here's a cool thing. They are taking this data and in some of you listening to this are going to go, I don't like that. But it's the reality because everywhere you go around the Internet you are leaving an identity and your behavior is being tracked and they have 220 million American, very in depth profiles.
Speaker 3:
16:40
And because I mentioned MIT, they bring these kids in literally, you know how tough competition is for the brightest, you know, data scientists and AI specialists out there. They actually let them start mining the data to look for what they call signals. It's really what's going on with all the data and consumers. We could start a business, they've started seven businesses today that do revenue of more than a hundred million. One went public last week. So here's a kid coming out of MIT, hey come in. If you are an entrepreneur and you find something, we're going to back you. You're going to own part of the company. And then they'll move them up to the second floor and then out of Cogo lab. And that's only thing they get the data use force. Or here are kids that have a real shot, it coming in without any money invested and can become financially independent, maybe the first five, six, seven years of their life possibly. You know, probably not probable. But I love the idea that man, if that's what if, if you're bright and you're energetic and you've got the energy to do that, let's start off right away and give you an opportunity to grow real wealth. Well talk about a game
Speaker 4:
17:50
changer there. I mean just think about all of us as families. How many listeners today have been approached by their son, their daughter, their daughter in law, their son in law, aunt, uncle, whoever. Hey I got a business idea. Can you loan me 25,000 I'll give you some equity or 50,000 or those things. And now because of technology, there's ways to evolve that. And Ron, you and I've experienced this in our careers, working with families. You're in this terrible dilemma. Do you loan money to the family member or do you not? And it brings both financial stress, but probably more importantly family stress. Cause, especially when it doesn't pan out. And I mean, I can think of a scenario working with a family recently where it didn't pan out and then guess what, people aren't talking to each other. And, um, money can be a great enabler but can also be a huge divider. And I love hearing stories like this, that there's incubators. You know, we were at our excel conference, I know we had a great show a couple of weeks ago talking about Arianna Huffington and Marc Randolph, the cofounder of Netflix, how we're told in the futurist. I mean, he's got a business alone too,
Speaker 3:
18:53
Chicago on the largest incubators in the world
Speaker 4:
18:57
to hear those stories. So there's ways that you have the ability to point, you know, people who are trying to make these strategic business decisions related to building their own that can help out and stop some of this pain and families when give me a loan for this, give me a loan for that. And we are, the reality is we know 90% of small businesses fail. That's just, those are the statistics. So if we can eliminate some of these pain from financial independence,
Speaker 3:
19:21
great way to do it. And you know, going back to cogo there, their theory is fail fast, fail fast. I mean they don't view failures, failure, but simply as a more intelligent way to start over. And I think about that as we relate to financial plans. People are so afraid of doing something and making a mistake. If you make an a mistake working with a competent group of people or if you're doing it on your own, learn from that and reapply. I mean, buffet says it best because I have no problem with someone making a mistake. I have an issue with someone making the same mistake over and over again. Yet we see going back to behavior, we see behavior. These mistakes get repeated over and over and over again. Matter of fact, cogo going back to them, they're supplying us with data on consumer behavior so we can help figure out what people do and what do we need to do to influence that behavior in a positive way.
Speaker 3:
20:10
We actually had an AI expert in today meeting with Erin and I on this very topic. It's fascinating. I'm all for, Hey, I want you to have my data so you can better understand me. Anticipate my needs before I know I have the need. I know I'm, there's other people that don't feel that way, but if you're going to be digital, you're gonna leave your behavior out there and there are ways that they're going to, they're going to learn more about you to give you stuff and sell you stuff and give you services that you need some and most of the time that you need.
Speaker 4:
20:42
Yeah. And so building this plan, Ron, I think an important part of it is you gotta have more than one source of income. I mean, if you're a farmer, do you only plant beans every year? No, probably night, right? You, you figure out multiple sources and there's no different in your retirement or your financial independence. Here is figuring out multiple income sources for yourself and whether it's social security, whether it's from your investible assets, whether it's from rental and Carm, whether it's from farmland, whatever those things are, you've got to find a great diversifier. And since it's 4th of July holiday week going on here, many of you have probably at a barbecue or a Po, a potluck. And I love potlucks by the way, because everybody usually brings their best dishes, rods, they're so fun to eat. But could you imagine if you went to a potluck? Uh, it wasn't independence, but it was, everybody brought one thing. So they just brought Coleslaw or they just brought, everybody brought potato salad. So you had to eat eight types of potato salad or baked beans or whatever you have. But it's the combination of all of those different things together that makes you love the potluck, cause you get to try all these different things. But if you had to try eight things of Coleslaw, you're probably not going to be as excited about the potluck there.
Speaker 3:
21:54
I agree. You want to, you want total diversification. And the other thing is if you're going to the potluck, you're probably going to be talking about social security. Oh yeah, absolutely. And that's usually the number one topic. Move all around there today you're going to start hearing though, hey, the trust fund, we're running out of money faster than we thought. There's the issues with social security. The other thing is, thank God, I guess for our government that most people under claim $10 billion a year, get left on the table. Let that be somebody else. Do not allow that to be you. You can get every single penny that's legally owed to you. So let you know. And I, you can sit there and say, well, I don't want to pull from the trust fund and all that stuff. You know what? Um, this is where sometimes as a society you have to figure out your environment, all the tools that you have to give you financial independence as soon as you possibly can. And we have a five points. So security analysis will show you the precise timing that can literally help you get the most out of your business.
Speaker 4:
22:58
You're, yeah, there is, I mean, yeah, if that, that program works really well for us, Ron. I mean it's really good because it helps show people what to do. And I'll give you an example of this. So at this, you know, barbecue and you're having your potluck, what's happening there? You're eating, you're talking to, you're talking to your buddies about social security, right? Because this happens all the these ways. But here's what you do as about every Saturday night. Yeah, I know it is. Yeah. So you, but here's what does happen. Hey, somebody is in their mid sixties or low sixties. Hey Paul, Ron, Andrew, Liz, have you filed for social security yet? Oh yeah, I did it at 63. It was great for me. You should do that too. Well, how in the world do they know if that's actually good for you too? That's the challenge I'm going to put out there to you is they don't, and here's an example.
Speaker 4:
23:45
Somebody recently, um, less than a year ago, got this issue. And so they went and filed Ron and then they came and did this free analysis from us and found out they made a huge mistake. Yeah. So they went back. You do have one do over one time. You got to get it done in the first year, I guess they got to play. It used to be an unlimited time. You don't have unlimited time anymore. Not at all. And so now they're flipping it. So they solved this problem because they took advice from location that wasn't the best one for them. And they have to figure that out.
Speaker 3:
24:16
Getting a second opinion is critical. And part of a great plan is knowing what your risk budget is. You've, what's your downside? If you can, if you can take the downside, the upside will take care of itself. And the other thing that you need to solve for is what's your family index number? What the Paul West, it'd be the West family and index for Carson. It's a Carson family index. That's the only index, not the s and p 500 are not gold, not the 10 year treasury, not oil. It's your personal index. That's the only thing that mattered to you. You want to get it right and keep it current. Measuring downside risk is critical though to having that piece of the puzzle actually work. We can do that for you. There's no cost. There's no obligation. We'll put you through our digital allocation process. Hold to understand lots of colors, a bit of a late side by side where you're at and really where we think you should be. Give us a call. Eight eight eight four nine 85 13 that's eight eight eight four nine 85 13 it's your money. Take responsibility. Take control today and make that call. Eight eight eight four nine 85 13 I'm Ron Carson with Paul West and you're listening to wealth and 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. If you want to become financially independent, it doesn't have to be to be
Speaker 3:
25:47
by achieving some magical number. It doesn't happen with some financial product or automated planning. Sure doesn't happen with a get rich quick scheme in. It doesn't happen by accident. It happens by design. If you think about putting a plan together and it's no different than going to home depot and you're going to build a house and you have no blueprints, he goes grab a bunch of stuff and you make random decisions, all little of this and a little of that, you're not going to have anything that's worthwhile. It's going to be on it and if you do put it together, it's not going to have the foundation to actually support it. Welcome back to wealth and wisdom. I'm Ron Carson off my cohost Paul West and we're talking about independence day and becoming financially independent and really just taking control of of your life, living your life by design, not by default.
Speaker 3:
26:34
And Paula that in having the right partner is really critical and we've beat up on the difference between a fiduciary and a broker a lot on this show. And I'm going to do it again right now cause Merrill Lynch was in the news again, find a $42 million for misleading to 42 million. So it's nothing for them. Not a lot of money. Read what they did. You're going to be appalled. That's all they were fined. Um, Merrill Lynch was fine. The 42 million for misleading it's customers about how it handled their trading orders and this was according to the Sec, the sec is order stated that Merrill Lynch falsely informed customers that had executed millions of orders internally when it had fun, in fact routed them for execution to other places including their own proprietary trading firm. This, this mat, this practice is actually, it's been done enough. They even have a a term for it.
Speaker 3:
27:31
It's called masking and what it does as they go in, according to the SEC, they falsely report execution venues, altering the records and reports and providing misleading responses to customer inquiries. So even customers where institutional clients were asking about this and there were a mascot according to the SEC report, how is this, I mean I read this and go first of all with wells Fargo and all this stuff and people are doing business with him. It's like why lot? Why if if, okay, maybe one time and there's a rogue person, but this is a pattern. This stuff continues to step on. It just boils my blood. But then also look at the consumers out there. They just continue to put up with it. And My, it's like why?
Speaker 4:
28:21
Yeah, so Ron, I mean I look at what if, what if this, if you change the name of the company here from Merrill Lynch gets fined 42 million for this breached and you changed it to Facebook, it's fine. Four to 2 million. Imagine how big the story would really be and everyone would be talking about, because people were very, very upset about Facebook's data breach a while back. And then equally this week, if you read the articles, I'm sure you have that. So after they found the problem, they didn't solve it then for another series of time
Speaker 3:
28:50
after they're in the news again yesterday. Yeah. Yeah. So,
Speaker 4:
28:53
but imagine that everybody's up in arms and social media is just blasting them. But how many people are blasting Merrill Lynch right now? Even though what they did, you could argue is actually worse, Ron. Because while yes, Facebook selling data and these problems go associated with imagine somebody screwing with your money. I mean that's exactly what's happening here. You, if you're a consumer of theirs, you are not winning here. And yet people aren't getting nearly as upset or even they're turning a blind eye. I hate to say this, people are almost acting like, oh no big deal. They got fined again. Like, it's not, well, I'm sorry, but if that's my money, I got a huge
Speaker 3:
29:28
well, and with that Paul, you said it, it's the intent. The intent was, it's not like an honest mistake somebody made and oh, you broke a rule. And unintentionally it was literally when there was inquires, they falsified reports to cover it up and, and it, it anyway. Yeah, it's, it's, I think you're right. They're so used to hearing about it that they just don't do anything about it. And I, and you know what, I think Andrew, Andrew's a young professional, that next generation, I don't think they are going to put up with it. I think they're starting to see as a wealth transfers, they're going to go, you know what, maybe my parents were there and they were there for a long time and it was just a nurse and they wouldn't move the next generation. I think these branded houses like that, um, have been in the news enough and all you gotta do is they go out and do it. A little bit of research. You know, when the last time you saw fidelity in the news for not, you don't, right. Or TD or the fiduciary custodians out there, but this stuff or this product and, and all these backdoor payments, hidden fees, proprietary trading platforms, it's where you're not being a fiduciary. All the stuff really has, there's all kinds of of ways that you're able to in companies are able to take advantage of the consumer.
Speaker 4:
30:47
Yeah. And so it always is ad laugh, Ron, when I ask them what about, you know, do they have an advisor? And if they start the phrase this way, I've got a Merrill Guy, I got an RBC guy, I got an Edward Jones guy. You know what that tells me or Gal by the way, um, is all they care about is the name of the company, not the actual person who's there. And I think you're right. I think smart people, they don't say, I've got such a such companies person. They say, I work with Ron, I worked with Paul. That's what they say. So right there, it tells me the relationship isn't strong, was there. But also, I think you saw this Ron, but I just, I have to make a comment just so proud of our peer group here, but here in Omaha, we just won the Omaha Choice Award for best financial planning from earlier this week.
Speaker 4:
31:29
So just congratulations to our entire team. And that tells me everything wrong because guess what, that's voted on by the consumers. That's nothing by US pushing that. So thank you to everyone. By the way, all the firms that we just mentioned who are getting fined and things like that, do you think they made the list? No Way. Because consumers are understanding and there's a reason why we're a Barron's hall of fame from we're a Forbes. If we just do what's right for a client, I put them their best interest. Everything always works out. And one of the reasons why is we're not just about investments. We help people worry about their next biggest concern. I think Rhonda, which is taxes. So as we're thinking about financial independence, helping people avoid the the bite that can get taken out of them for taxes. I've yet to find someone yet that enjoys paying taxes.
Speaker 4:
32:12
So helping them figure out ways to resolve this, whether it's medicare premiums, whether it's helping them avoid their social security, be taxed. There's a lot of different things and I think you've done a really good job and I like it when you're on the show. Ron, you talked about being taxed, always being taxed later or tax. Rarely. That's language. I think people understand once we start talking to people about their four zero three B's and 401ks and how they're all taxed and RMDS. You know what people here, blah, blah, blah, blah, blah, right? What, what? What they want to hear, and actually Dennis McMillan, one of our advisers told me this earlier today, you got a tr, you have a watch, right? You got to trust the company that built the watch that all of the insides of the watch work. But if you're really going to have a good advisor and planner, you trust, you just want to be able to look down and read the time.
Speaker 4:
33:00
Right. And the end of the day, because of my watch, it's not been [inaudible] that one out. So normally I'll get you a battery and it'll work. Cause the point when it's way off, you know it, right? You look at it and you go, there's something wrong. You don't have to break the whole thing apart to see, oh my gosh, they have a tracking mechanism. They know where I live, they know where I go, they know what I do need. You don't have to understand that if it's keeping time to the millisecond. But if you look at it and you go, okay, it's not, you know, 6:00 PM tonight or night, you know, it's what then you want to dig in and really understand. Is it telling the right time? Absolutely to the right time. Yeah. And so the right tax plan though helps you tell the right time and it actually lets you stay ahead of schedule.
Speaker 4:
33:42
Ron instead of behind. And, I mean, we see this all the time. Families will walk in and they're too late. They've made tax mistakes. They haven't prepared for their RMD correctly. Or they could have done a Roth conversion because they didn't have income this year, but they waited one year too long. Uh, and they're not thinking through those things. And why? Because they tried to save $250 but not going to a CPA. But what did that cost them? $5,000 in taxes. And that drives me crazy because you sometimes you have to pay a professional. And one of my favorite quotes is if you thinks it's expensive to hire a professional than wait until you actually hired an amateur. Yeah. Well, and so much is wasted on not planning. Yo Don't, I'm not talking about going to h and h and r block and have your return done and recording history.
Speaker 4:
34:33
Doing planning right now, here in July, we're halfway through the year. What are the things you can be doing to reduce your taxes, taxes on your IRA, your 401k taxes on social security, taxes, on your investment, income taxes on your estate. Because the IRS IRS is licking it's chops and getting in and having you pay all these taxes cause this is going to be a field day for them and they need the money. We just talked about all these, you know government spending, social security. You don't want to have to be the one paying more than your fair share. We've got a retirement tax savings action plan and what you're going to see is how and when you can withdraw your money from Iras and four zero one k's and other retirement accounts versus after tax savings and investments and the one overlooked opportunity with the Trump tax plan that could really big financial windfall and easily retirees make all kinds of mistakes and getting a lot of taxes on their social security. Give us a call. Eight eight eight four nine 85 13 it's eight eight eight four nine 85 13 it does matter and taxes was one of the area. A lot of gets wasted
Speaker 3:
35:38
every single year, but you have to do something now. Vow to do it now. Be a proactive call. Eight eight eight four nine 85 13 I'm Ron Carson with Paul West, and you're listening to wealth and wisdom. Trust, transparency, accountability. These are the values that drive Ron Carson and Carson. Well, you're listening to wealth from wisdom with bear until the fame advisor, Ron Carson. He's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to well from wisdom with Barron's hall of Fame Advisor Ron Carson. Imagine drive into work on Monday morning, not because you have to now because you need that paycheck, but because you choose to. Matter of fact, you're excited. Imagine the power of having that choice and how it impact your psyche and every single day and every decision you make in the future because you're financially independently free. Welcome back. I'm Ron Carson with my cohost Paul West. So we're talking about financial independence where you get to do what you choose to do because you have enough put away that you know, you don't have to worry about financial resources. And Paul people worry about their money. People fight about their money. I think it's still the number one cause of divorce is financial pressure, the leader, and there's just things that you can do. It's just today to be proactive, to actually not have that happen to you.
Speaker 4:
37:03
Yeah, you definitely do. Ron and I had the fortunate over the last week, I've been out in San Francisco. I know you were in Boston, so we were on opposite ends of the u s here, uh, visiting. We've got a great office there and I think about planning and what they have to do there. Every element of their day for travel is dealt with the following question. When do I get to leave to get somewhere? Because you've got to do and you've, you've been out in bay area traffic, it's, you know, significant, I won't call it severe or nasty, but it's, you have to spend your entire time. Um, but I imagined the people that are sitting there and you're in traffic, what happens? Your mind wanders, you just started thinking about stuff. And I think about, I would love to do a study on this and maybe there's some artificial intelligence that already exists.
Speaker 4:
37:48
Relate this, the people that are financially independent, does it even cross their mind when they're off in Lala land daydreaming while their sin traffic didn't even think about their finances? Or are they thinking about how much fun they're having versus those people who haven't solved those, they're sitting in there, what do they probably do? They probably tend to lean to the things they're worried about versus not. And so I can imagine if I'm seeing traffic, I'd really be thinking about the fun things, those exciting things rather than things I can't control. And that's part of having a plan. And actually I heard a phrase over the last week that I want to shout out. Um, our marketing and turn Liz. So she taught me this phrase, it's called fire financially independent. Retire early. I just heard that this morning. Did you from her as well. Yeah. Thanks for sharing that with us.
Speaker 4:
38:35
Liz is actually sitting in here with us right now. Completely surprised by the way. So that was good. Yeah. But I thought it was a great phrases. People want both, but let's, let's eliminate the retire word from that is be financially independent early. So I'm gonna change it to five. So that's a word I'm making up. So if you can get that trademarked or copyrighted or whatever I need to do with it. But I want to be as financially independent as early as possible in my life. Why the shackles are broken off and you're going to feel comfortable. You pick the age, get rid of that bias we talked about earlier about being at age 65 or anything else. And Ron, speaking of that, um, you know, she's an up and coming young professional. We're glad to have her as part of the team here.
Speaker 4:
39:17
Liz, as part of our intern to hire program. Yes. And I just, uh, if you're out there and you're a young professional, your grandparent, your apparent Carson group, we're growing rapidly. And Andrew, um, who's the last one in the room who's running this show is, and he came to us from intern to hire and I look about how many Creighton is an absolute jewel of the education world. We're so proud to have him in Omaha, Nebraska. We are going to be, you're going to see a partnership announced here soon with the Carson group, Creighton and Barron's where we're going to be supplying barons to the entire hydro hydro school of business. Oh Wow. Um, so yeah, we're making an investment in the community, but also if you really want to work for a progressive on the edge of technology or very young firm, we're not defending what we know.
Speaker 4:
40:05
We're embracing the new, the unknown, and we're really making a difference in a lot of people's lives. You know, go to Carson group.com and look at careers and there's all kinds of opportunities out there and we love interns, but we want you to come with the idea that you're going to intern because this was a profession you want to be in. And if we, if we do well by you and you do well by us, and there'll be a career here for you at the Carson grew. Yeah. Right. So I think about when I was that age, I didn't know exactly what I do. I knew I wanted to get into financial services. I knew I liked it. But if you would've asked me the difference between a wirehouse, a brokerage firm, a financial advisor, a financial planner, I would have had no idea. You know what I would've done?
Speaker 4:
40:46
Well, we didn't really have it then I would do at Liz would do. Now I'd Google it and then I go on to Facebook to find out what other people are saying on it. Then I'd go watch videos about it. That's how I would consume the info. But I imagine still everybody puts out their own marketing propaganda and today's world trying to woo people. But imagine if you were armed with information, truly knowing what a fiduciary does and how they help in your best interest, not, not understanding why Merrill Lynch got fined $42 million and what the real impact of that was to the consumer. That's what teaching young professionals today. And I'm excited actually to see the future, Ron, because I think they're going to be financially independent a lot more than everyone else. They've grown up in. Many of them have seen o one and o eight which not everyone else had gone through and understood. So their first experiences with money and their families hasn't always been a positive one.
Speaker 3:
41:43
So here it was something I learned in Boston last week, um, which I thought was such a profound statement. The people that I was meeting with Cogo labs and the class that their gender that they're working with today, they think they will be the greatest generation to emerge since the greatest generation. That's a pretty big statement, right? So it's you guys really, and I mean millennials, I hate that term by the way. Um, yell it got this bad rap. I mean because they were so different. They do things different. They think about things different. They think about our society, you know, not as a liberal, not as a Democrat, but really truly, I think they're the greatest generation for saying what's best for, for a happy medium, what's just best for society, period without having this poor rising views. And I think they could be the generation that really brings, you know, this, there's a, you know, there's a lot of great things going on in the world and specifically in the United States, but what's not going on? Well here is the venom and the poison, the way parties attack each other. And I'm hopeful that their generation is going to not only bring unprecedented technological advances, our society, but also get rid of that and get back to where we just a community, um, helping helping each other.
Speaker 4:
43:09
Yeah. Well I think about them becoming financially independent round. We've talked about a lot of different steps, social security and tax biases. And having more than one source of income, but let's talk about technology for a second. They're going to have a better chance than you and I potentially even did Ron, because technology is going to be smart enough to help them out and not be relying on what's the biggest mistake we see? People make behavioral, they avoid things. Let's go back to earlier segment embarrassed the person who is embarrassed to talk to us because they hadn't saved enough, but what if technology showed them that and made it easier for them to communicate that with someone and made it easier for them to catch up and not feel bad about it? That is really exciting for financial independence in the future.
Speaker 3:
43:50
Yeah. I don't think technology is going to replace financial advisors to make financial advisor much better at doing what they do. Planning for financially freedom, being financially free may seem complicated and confusing and you just don't know where to start, but doing nothing is a recipe for disaster and you don't want to pay that price. Do not do nothing. Be Proactive. We have a five step financial freedom plan. It's an action plan and it's going to just show you, it's going to lay it out. All the things you need to do. We talked about taxes, they're the single biggest expense. What are some of the things you can do today, but more importantly, what's the behavior activity you need to do in order to turn this around for you? Also making sure you're all your investments are an income workhorse. I mean, what's even today with interest rates, you know, money sitting in banks almost earning nothing where you can get a substantially higher return. Um, and really not taking on much if any additional risk. Also, unconventional strategies for getting the most out of social security you hear talked about all the time and there's just a lot more to it. Give us a call. Eight eight eight four nine 85 13 that's eight eight eight four nine 85 13 it's your life. It's your money. You deserve the best. Eight eight eight four nine 85 13 I'm Ron Carson with Paul West and you're listening to wealth and wisdom
Speaker 2:
45:16
risk, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson.
Speaker 1:
45:29
Okay. And here's the legal Mumbo jumbo. The opinions voiced and wealth and 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 Cwm LLC, an SEC registered investment advisor.