Wealth from Wisdom

Following the Millionaire’s Money Managing Process

June 23, 2018
Wealth from Wisdom
Following the Millionaire’s Money Managing Process
Chapters
Wealth from Wisdom
Following the Millionaire’s Money Managing Process
Jun 23, 2018
Carson Wealth
Show Notes Transcript

What do millionaires know about money, that you don’t know? How do they get away with paying fewer taxes than anyone else? And how do they make their money make money, while minimizing their downside? Learn all the answers on this week’s episode.

Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo. The opinions voiced and from wisdom with Ron Carson or for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly. Investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an SEC registered investment advisor.
Speaker 2:
0:31
It hit another all time. Records as much as $10 billion in social security benefits go unclaimed every single year. Reserve announced that they will raise interest rates by 250 the skyrocketing cost of healthcare and retirement could now run 350,000 today is a whole new ball game. It's loaded with challenges, obstacles, the trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with bear and hall of Fame Advisor, Ron Carson. Straightforward and objective advice and how you could make your money go further in retirement. And now here's your host. Ron Carson,
Speaker 3:
1:07
what do millionaires know about managing their money that you don't know and how do they get away with paying fewer taxes than anyone else? And how do they make their money make money while minimizing their risk, their downside? Welcome to wealth and wisdom. I'm Ron Carson with my cohost Paul West, and whether you're currently a millionaire or a multimillionaire, striving to add to your wealth today, we're going to pull back the curtain on strategies that help the rich get richer. I had been doing this for a long time since 1983 and I can tell you it's not the stuff you think it is and you don't have to make a lot of money yet to make a lot of good choices. And there's a process that if you follow the recipe, you're going to do well. It's not all about inheriting money or coming up with a great idea.
Speaker 3:
1:59
In fact, many of the opportunities that millionaires use to their advantage are absolutely 100% available to you. You're just not taking advantage of them or you just don't know that they exist and it could be costing you thousands of thousands of dollars every single year so you have a choice, do nothing and continue down this road that you've been on for years. I talk about people being on an unconscious journey to arrive at death safely. You don't want to be that live life by design, not by default or you can take advantage of the opportunities and the legal loopholes. I did say to legal loopholes that are available to you and people get frustrated with that, but if you have experts, they can exploit them and if it's legal, you should absolutely do it and we're going to talk about a lot of these secrets, a lot of things that are done that can really help you get ahead.
Speaker 3:
2:49
And Paul, this is, I always love to tell the story that both these clients are gone now, but they were in a little town in southwest. They made the equivalent today of about 25,000 bucks a year only the husband worked. He worked as a bank teller his entire life. When he passed away and his wife didn't take care of the finances, she actually came in and worked with us, brought in all these stock certificates. What do you think in today's dollars, by the way, when he passed away, he's making like 16 17,000 bucks a year. What do you like to have portfolio was worth? So how long do they invest for? They were both of them that he was in his mid eighties when he passed away. Uh, and by the way, they had no kids less bleed out of the pocket book there. I would say a couple hundred thousand dollars, 3.2 million.
Speaker 3:
3:45
Really? Three 10 x $2 million. Now I'm not suggesting they lived, they never this. There's a tragedy actually in this story is they had no kids. They died with three point $2 million. She never spent any of it all got left to charity. So I guess that's a good bad. There's a benefit that they didn't enjoy any of it. They lived a life of, and I had a client pass away and Blair almost identically the same story, only he had kids who never came and saw him and they went through the money. Literally about four years, it was all gone. And I know how hard he worked because he was afraid he was going to run out. So reason I share this story is it isn't about, I mean, having a lot of money is good, but we see all people have a lot of money, inherit a lot of money.
Speaker 3:
4:33
They lose it all because they didn't have a process and they didn't have a plan to keep it. I don't care how much money you have, if you don't have a process and a plan, you can, you can lose it. Yeah, you can run it. And I think for a lot of people, I mean your story there, it doesn't mean you have to live your life on ramen noodles. You're, but it also doesn't mean you have to be living with caviar either, is you've got to figure out what the right balance is for yourself. But it sounds like those clients you were mentioning, they built a phenomenal plan of saving or they didn't build a plan was spending spending and it's, it's two sided. It's like a coin, right? Coin has heads and it has tails unless you've got an illegal coin there, but I mean your two choices and you've got to figure out the right balance and I'm pretty sure the probability if I flip a coin is 50% for heads, so that makes it, what, 50% for tails.
Speaker 3:
5:22
I just wanna make sure you're quick on the math. I've got it. I didn't have to use my calculator for that one. Good. I'm glad to hear that that was spending and saving. Sometimes the ratios when you're getting closer to retirement, you're going to be closer to 100% on the saving side, but then when you get to retirement you better be spending. But there's always some form of balance cause you're in high income earning years or maybe low income earning years and you may have to adjust that formula and the tilt of the coin of the spending and saving. I think what we'll talk with you here is, is putting the right plan in place to actually do that instead of winging it means so much to everybody. And probably way more important than the plan is the team behind the plan. And let me ask you a question, Paul.
Speaker 3:
6:05
Do you ever fly a one of the discount carriers or the regional airlines? Not very often. Yeah. And why? Well, I think w annoyances, one thing Ron is, is I'm concerned about, oh well it's my cost, really my cost and I have no idea what my total cost is going to be. And I'm worried about lack of transparency, lack of transparency. And if they're going cheap on the fares and all of these add ons, are they going cheap on who they hire? Okay. So hold that thought. So I'm flying back on Friday and I have someone that I just met about a month ago. They're coming to Omaha for an interview. They're coming back with me from the west coast and we're talking about, um, flying and airlines and low cost airlines and some of the accidents that have happened. I mean there's, I could go list all the names.
Speaker 3:
6:57
I'm not going to do that. But here's what you have to remember as an investor. And I'm going to relate this back to the financial plan and the team is if you get a low cost ticket, you're, you're flying on an airline that, that has pilots that do not have a lot of time. So first of all, you're putting your, by the way, taking off and landing safely, you need to be right on about it. You can't screw up one time because you could lose your life, right? And so they don't have a lot of experience. In addition to that, look at the age of the aircraft. I don't care how the rules, but stuff starts to happen. You saw southwest, and I'm not suggesting selflessness, a low cost airline. I'm talking about some of the others in below that, but they had the, the, the engine come apart.
Speaker 3:
7:42
Um, that's from a lot of, in my opinion, that's from a ton of cycles. And, and so do you want to do once something that's, they're not reinvesting in the best technology with the best people possible. Back to a financial plan and a team, a team that you make an investment in is going to be your low cost. When you look at value, you're getting the most value relative to what you're paying. And that's also true. Pay a little more to have the convenience and transparency of an airline but also know they're flying new aircraft with pilots, want to fly new areas. You're going to get the most experienced pilots out there and that's exactly what you want with cause it's just as critical of having that team because you could have, you know, financial death. There's a lot of salesmen out there that turn out to be financial assassins.
Speaker 3:
8:29
They sound unfortunately they're the best. You hear all these radio shows and indexed annuities and you can have of the upside without the downside. Those are truly financial assassins. Yeah. Well I think Ron, you know we've talked about on the show before is that many people have this fear and fear of doing nothing. So they just do nothing. But it's also they have a fear of choosing the wrong advisor, Ron. And it's because they're not educated enough. And I think one of your best questions always to ask people is, is what are they doing to reinvest back in their business and their people, their technology. And so similar to your airline story, which I really liked there is, is what's your financial advisor doing to reinvest back in? And if they're not, then are you flying on an old plane there that could be dangerous to you and your family or um, you may make it, but no one likes turbulence, right?
Speaker 3:
9:18
No one likes that feeling to bouncing up and down and shaking. And people complain about that. You don't want to put your family through that type of term. But if you're having the turbulence, you know, you've got the best aircraft and the best experience, you're, you're feel a lot better if then, if, then our fact, the Colgan airline, right? The, uh, when they crashed right before they landed, both the pilot's admitted, Hey, I've never flown in ice before. And for sure enough, they had a stall because of ice. I don't want to have pilots up there that's like, oh my gosh, I've never been through this before, and they did. Everybody on that aircraft died, unfortunately, because of lack of experience. Here's the other thing too, Paul, is when they hire a team, millionaires higher in really do due diligence and start with a fiduciary.
Speaker 3:
10:00
Make sure of those are just basic table stakes anymore. People say, well, we can be a fiduciary. No, in my relationship, are you acting as a fiduciary? Are you legally required to put my interest ahead of the firms? You're 100% working for me, and then they invest in quality there. They're willing to make IEE a bigger investment in order to get exactly what they want and put the a plus team. By the way, if you're listening right now, pull out your iPad, your iPhone or whatever device you have and shoot an email to your adviser. Just ask them, are you a fiduciary that's and they need to respond in writing back to you. You don't want them to say something or by the way, Ron, something we've learned, I think of salespeople once you ask them a question and you know that they're not giving you the truth, what do they do?
Speaker 3:
10:44
Ask. They don't answer. They don't answer, don't answer board the deal. They just start talking about everything else. They deflect it and they just start going and spinning tales that should tear anything. But if you put in writing to them, whole different story. I agree and yeah, and like is you're a financial advisor, 100% adding value via value. Beyond a doubt. It's this is critical. It's important that you make sure that hey, there's ways to absolutely major that and also a lot of people don't do anything. Have you ever felt so overwhelmed or confused about how to invest your money? You just are paralyzed and you're frozen because you were afraid of making a mistake or you don't even know where to begin and I get it, but there's a huge cost to doing nothing. Most of our first time appointments here at the Carson Group are people who come to us.
Speaker 3:
11:35
Out of frustration. They've put it off for years. They have not made it a priority, but then all of a sudden they come in, they go through the processor's, a little bit of work, anything worthwhile takes work and the comment, we always get it, man, I wish I had had done this a long time ago, and the truth is, the sooner you get started, the better off you're going to be. So what can you do? We have a five step action plan. This is your opportunity to take a look at everything and get second opinions. It's simple and it's easy and we'll fight. We'll focus on five critical pillars of generating and retaining and keeping your wealth. We're going to help you reduce taxes. We're going to show you how to generate more income, how to get the most out of Medicare, look at all the other risks that you have in a biggie is how efficient is your portfolio? How much return are you getting for the level of risk that you're taking? That's a biggie. There's no sales pitch, there's no cost for this initial analysis, and there's absolutely no product sales. Give us a call. Eight eight 84985138884 nine 85 13 don't put it off another day. Eight eight eight four nine 85 13 I'm Ron Carson with Paul West. And you're listening to wealth and wisdom,
Speaker 2:
12:48
trust, transparency, accountability. These are the values that drive Ron Carson and Carson wealth. You're listening to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. He's a published author and he's been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to well from wisdom with Barron's hall of Fame Advisor, Ron Carson. What do billionaires know about investing their money that most people don't
Speaker 3:
13:16
probably don't know either. The truth is many of the strategies that millionaires use to grow their money and save thousands of dollars are also available to you. You're just not capitalizing on them. You're not aware of them. Welcome back to wealth and wisdom. I'm Ron Carson with my cohost Paul West, and today we're pulling back that curtain on all of the strategies that the rich get richer. Whether you've got a million or several million, you know what I'm talking about and by the way, being a process of continuous learning and improvement, I don't care where you're at. Continue to study the brightest because it'll help you make better decisions and Paul are just, you know, you as you said it, there's so many great, great processes and ways of protecting and accumulating wealth. A lot of people just don't use,
Speaker 4:
14:05
they don't use her Ron, they hear about it and they say they're going to do it and then they go let life happen. They get reprioritize and everything that they have and I think one of the big things that we see is dumb. Everyone you've done something and your life from that you've put off and you put it off and I do too. I've shared, you know, home improvements for many of our listeners and myself included are one of those like, oh I need to put in a new ceiling fan but I'm going to get to it. I'm going to get to it. What happens? A month goes by, two months goes by, six months go by and all sudden, you know, it's two years and something happened. I was actually, we were laughing this last weekend, Courtney and I were that we've been in our home 13 years and one of the projects we first wrote down in our list that you just got reprioritized still isn't complete because, and it's not a big one, but it just, it, it fades away.
Speaker 4:
14:52
Well, the problem is in your financial plan, if you're not focusing on the big ones and you're letting those fade down to the bottom, you're not going to be able to catch up. And one of them, it should be saving more now. Or what's your tax plan you put in place? And I think there's a big cost of doing nothing. And a quote around, I want to share with the listeners today, um, is Morris lost by indecision than wrong decision. Indecision is the thief of opportunity. It will steal you blind. And I think that's a great quote and think about that. It is great loss. We see it all the time. And not making a decision. And that's whether you save where the taxes, I mean that's a huge one that indecision. And I think it's okay for people to realize they can say the word no.
Speaker 4:
15:34
And I think in making financial decisions and many people today, Ron, the economy has been doing well the last 10 years and I think it's even starting to get a little heated in that more people are now trying to keep up with the Joneses again. The 2008 economic crisis. What did that market cycle teach us that, oh, we better be careful. I better stop spending so much and taking out as many loans and things like that. What's happening? And I especially, I would say here's, since we both live in Omaha, the housing market's getting heated. Yeah. So what are people doing to try to keep with the Joneses, buying more real estate or be trying to become, we can blame maybe HGTV on this is they're trying to become flippers and I just heard a story over the weekend is a family that doesn't have a lot of money.
Speaker 4:
16:15
You know, they do well, they're good. Middle Income family, they have some money invest in the market. They've put money in their four zero one ks. They've put money in Iras that are deductible, but now they're trying to put a little bit more money into flipping a house. Well, what's happened? They invested all this money. They, so let's say they put in $50,000 into this house, so they marked it up $50,000 above it. What are they finding? They're not able to sell it for that. Now they've put themselves in a bad situation. Why? Because they wanted to keep up with the Joneses next door of someone else that was flipping houses and now they're going to make a huge mistake financially for themselves. Yeah, there's, you know, there's no get rich quick schemes and that's where one of the secrets for millionaires and billionaires that I've learned is they get the silver bullet is there's no silver bullet.
Speaker 4:
17:02
Right. There's just, there is, it's, it's have a plan together of those all the little things done. Exactly right. Yeah. Like you don't chase it and try to get this big hit. What, I'm going to give you a gift though, Paul. So, all right. You know what this is here. I've given Paul, um, a circle and inside of it is t u I. T. Do you know what that is? I do not. I could guess you might have worst handwriting the night too. Actually. I can make it prettier if you want. No, that's all right. I'm going to make a better circle. And then there's t u I t here and we can actually give these away from people to call in. Yeah, we can mail it to you. So what that is, that's a round to it. So we'll give you a round to it. So when you get around to it, uh, how we are, you go there should make a run around to
Speaker 3:
17:50
it. You should put this on Ron Sense. I had it. There you go. Yeah. Did that entertain you? It did keep it matter. It's a matter of priority though, Paul. I mean it's, people will spend more time picking out a Dang car then planning for how they're gonna manage their wealth. Yeah. Or I'm going to go back to the house analogy, Ron. I can't believe, because people get emotionally tied that they're going to buy a house super quick, but they don't do any comparison of, hey, is this house really worth 300,000 or 400,000 they just, they want to go by. It becomes, they become very emotionally tied to it. So Jeannie and I, our very first house, we came down to Omaha where both grew up in small towns and we walk in and we fall in love with this house and the house is $69,500 and we're applying for Nifa and Nebraska Investment Finance, a third authority, first time buyers.
Speaker 3:
18:41
And we were so afraid. I mean again, we're young, we're dumb, we don't know anything but that someone else is going to get to this house before us. And so we made the offer on the house. Then we're going through underwriting houses that worth that. And we ended up borrowing additional money to buy, to overpay for this house until I tried to sell it. You know, 10 years later we barely got out what we put into it. Um, and because we overpaid, it doesn't have a discipline and we didn't use a professional. This was a for sale by owner. We drove by it. We loved it. I think we were to use a professional and how many people don't use a professional today you can go portrayed your brains out for nothing, but the lawyers don't represent themselves. Doctors don't do their own surgery. It's crazy.
Speaker 3:
19:29
When something is this important that you think without all the years of training and the expertise, and by the way, you can't just have one advisor either. Today. It's really, you need to be a librarian and not a library where you can find the information because one person can't know enough to navigate everything that's out there. Yeah. And speaking of using a professional run, I mean there's a huge cost of doing nothing or equally as challenging for people as the cost of doing it all yourself. There's this new generation of people were seeing Ron and I call them the CNBC coffee investors. So what happens? They wake up in the morning, they're, they're retired or maybe they're not retired. What are we like to do if we'd like to get her morning caffeine jolt, so we have the cup of coffee ready to go, we flip on the TV, we go look at the market and see what's happening and then ultimately some people make decisions based on that.
Speaker 3:
20:22
And I was out in Colorado a few weeks ago, Ron, I'm meeting with a family and it was so fun to have a conversation with the two spouses. One of them never looks at the market, the other one looks at the market every single day. And I looked directly at the person that looks at the market every single day. I'm like, why do you do this? And he said, well in case I need to make any changes. But I said, are you going to make a short term change based on what you heard that morning on TV that has nothing to do about the of your own
Speaker 4:
20:48
financial situation? Well, well, well, I said stop. Just stop watching all of that. You cannot make your best family decisions on that because guess what? TV is pushing content to you. What are they pushing to get their viewership up to get more sales from advertising, not to pull out what's best from you and your families. This push pull mentality of it's W it's a one way flow. You don't get to talk back to the tee. Well, you can talk to the team and oil sensational. They put it on TV either. You know, the, the crazier, the idea, the thought, they liked it, they liked to lead with it. And I wanted everybody out there to think about a debate that they watch, right? You just sit there and you'll watch a debate and you're like, oh my gosh, what a compelling argument until what counter you can to the counter.
Speaker 4:
21:33
And you go, oh my gosh, that's so compelling. And if you really, do you want to go with the best debater or what's best for you? Absolutely. And that's where sales, unfortunately in our professions, sales great salespeople end up with most of the assets. Not the best technicians. They do. You're right, Ron. And I think about, um, so whether you watch CNBC, Fox, MSNBC, whatever financial station, they're pushing their content to you and it's part of that then. So if you're taking this and then you're going to apply life decisions, here's a question for all of you. You had a profession, so whether you were in construction or you're in the medical field, you're a doctor, lawyer, whatever you were, what training did you actually go through to make financial decisions? Did you sit through a class? Did you get a CFP? Did you, I mean, or is your training that coffee with CNBC with push content to you?
Speaker 4:
22:30
And I don't know about you, but think about your, if you're retired now or you're working and you're in a, you're taking advice and you're applying it in a profession you know nothing about. I'm not Ron. If, if my next door neighbor actually happens to be a doctor. So my kid couple, you know, years ago, you know, got hurt in the backyard was bleeding and she was able to stitch them up. Yeah. That's great. Do you think I could do it even though I could go online and read how to stitch somebody up? No Way. I'm going to go to a professional to do that. And why people decide to make short decisions on their own. And what I mean short, I mean shortened timeline is they make them fast. Like, Oh, you know what? I saw Amazon's doing great or I saw Berkshire's doing great.
Speaker 4:
23:11
I'm going to buy more. I'm going to sell. They make short term decisions based on what they're hearing and that's a problem of there's this great fear of missing out on something. And so they make what I call irrational based decisions. Oh Man. Fear of missing out. I mean you're, you know, here we had father's day. I know you get calls, Hey, I heard about this, I heard about this company is going to happen. But at the end of the day, investors who take the time to create a financial plan, it tend to make better informed decisions because those decisions are aligned exactly what their goals and objectives and what it is they're trying to and nothing
Speaker 3:
23:46
else. And this is a huge deal and making sure that they're going to hit their goals and objectives. Let's talk about taxes for just a minute. Taxes are huge and right now the IRS was licking their chops because as we have this older generation, they got to start taking money out of their Iras or four one k's or pensions or retirement plans, taxes on social security, taxes on investment income. And it's a real field day cause they see this, this rabbit through the python actually calming. And if you're not prepared and route it through the python, yeah, you can see this rabbit, you know they ate the rat from where you see it. Okay, I see it now. But we specialize here at the Carson group and creating simple and straight forward strategies like illegally help you save thousands of dollars in taxes. Let us show you how you can keep more of what you earn and put it and keep it in your pocket.
Speaker 3:
24:40
And we have what we know is a tax savings action plan. Now, what's you're going to discover is how and when you should withdraw money from all these various accounts. Also, the one overlooked opportunity with the Trump tax plan. That could be a financial windfall, and what? Nine out of 10 retirees get wrong with the spousal IRA and a heck of a lot more. Give us a call. Eight (884) 900-8513 remember, it's not what you make. It's what you keep. 888400900 85 (388) 849-8513 coming up next we'll reveal how millionaires turned savings and investments into an income workhorse throughout retirement. I'm Ron Carson with Paul West and you're listening to welcome wisdom.
Speaker 2:
25:21
He seems good times and bad times and he's got the gray hair to prove it. You're listening to welfare
Speaker 3:
25:27
wisdom with Barron's hall, the same advisor, Rod Carson, he's a published author and he's been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Famer Advisor, Ron Carson. What do millionaires know about investing their money that you don't know? And how do they turn their savings and investments into an income workhorse and why do they care more about their social security benefits? Welcome back to wealth and wisdom. I'm Ron Carson off my cohost Paul West and we're pulling back this curtain and really showing you what the, how the rich get richer, how millionaires become millionaires, multimillionaires. And in some case even billionaires. And what we're going to talk about in this segment is income sources, things that you may be ignoring and ideas on how you can generate more. And Paul, one of them is so simple. We talked about it many, many, many times. And we'll just spend a second on it. Just optimizing social security, just getting the social security piece right. Can the Delta because that's already money that's there, that yours, just making sure you optimize it is going to be a big deal. Yeah, it is. Ron Is, um, our last couple of days ago, I was down in Kansas meeting with some people and we were talking about social security actually. And no matter what, and no matter what of wealth, everyone
Speaker 4:
26:44
wants to maximize it. But what they don't do is maximize their time and investigating with the right strategies are because there's some big pitfalls. There are some big ways you can be, what'd you say, a rabbit or what gets eat by a pipe through the python can see a common, right? Yeah. Yeah. Well, I don't want to be that rabbit. I want to make my own decisions on what's best for me. But the big ones is taxes. So your social security can trigger this avalanche of taxes against you around the people don't understand. So there's certain levels. We're not going to bore you with all the details here, today's show, but what about if you were to double your medicare premiums because of social security? What? What happens now? Now you're looking at, you've ever done the story like with the kid, I did this because you know my son's mowing lawns this summer and said, hey, here's a dollar, but let's put it out in a dollar bill.
Speaker 4:
27:32
But I was actually put it out in some quarters from Nicole, some dimes. It's a penny's. Here's, why don't we take off for taxes? Here's what I'm going to take out for dad's costs for buying them over for you. Here's an, all of a sudden you see that dollar go away. Well, imagine that with your social security, some engineer, you think you're going to get through $2,000 a month, but you're only really going to get 1300 yeah, it's a big deal if you're not patching. And then if you thinking, oh, I'm going to be paying a couple $150 in Medicare, we're really, you're paying $200 well do you like that? And that keeps compounding cause compounding on the positive side. And most people understand that, hey, if I put money in and keep letting grow with the power of compound interest is very powerful. But so is the power of compounding and taxes and the more you're losing there, it makes a big hit to you. So think about the power of compounding on both sides of the ledger there.
Speaker 3:
28:24
Let's talk a little bit about income sources. We've got dividends, stocks, we have bonds, real estate, lots of different things. One of the things I want to put a big warning out cause I'm hearing more and more of these radio shows talking about indexed annuities, about how great they are. There's no downside risk. You only get the upside. And I'm going to make a statement that is 100% true. The costs of these things are high. You can accomplish the exact same thing but get a lot better terms by just doing it in a liquid form in the marketplace. You absolutely can do it and do it. And, and by the way, these insurance companies that are issuing them as part of the general account, and if things get tough, it's not in a separate account like a variable annuity is, he's index annuities. If the company goes out of business, it's part you become a general creditor.
Speaker 4:
29:19
So here's a question. So we've met many people throughout our times given advice and our job is to help people. How many times do you think collectively between you and I have we had someone come to us, it hasn't has one of these types of annuities and said, oh my gosh, this was the best decision I've ever made. Never. Zero. Never, ever. Never. So that should tell you. By the way, the, the guy got paid a huge upfront commission and then so they're there. Unless you have more money, they're trying to sell you more, you're probably not going to hear from them. And we're a fiduciary, so we have to tell you if there are plenty of times, Ron, I mean two weeks ago we had a family came in and they showed us all of their existing portfolio and statements. And by the way, one of the coolest things we can do is give you a complimentary second opinion that shows you how much risk you're taking your portfolio.
Speaker 4:
30:05
And this family was doing really well. Well, we have a legal and ethical obligation to tell you exactly that and how good would you feel knowing that you're going to get the truth? Because one of the biggest fears is that you're going to pick the wrong advisor. That is so true out there. So when you get to needing income for your retirement, what was your reaction when you said everything is going great? Really Fun. Really. Absolutely, because they s they said, thank you, we appreciate your honesty. They said, by the way, we had gone to two other people and they both nitpicked and found these things that were wrong and they shared them with me and Ron. I mean it was like, by the way, Paul, being a good fiduciary means not replacing a relationship that's going really well. Absolutely not. You shouldn't. And that's, that's in a good legal, professional CPA professional.
Speaker 4:
30:54
You're a good health care professional. Everyone that you trust, you know they're going to tell you what you need to hear, not what you want to hear. And that's critical. So let's talk about how to make the right income decisions for on, I mean, cause there's a lot of different pathways. We've already talked about that most annuities are not the best decision for you, but it's really figuring out what's the right sequencing of different investment choices. And there's a lot of different categories. So many of you today in your life, you're working, you're, you're putting money in a retirement plan that most likely is going to be either tax. Now it's in like a Roth type plan or it's going to be taxed later. You're going to 401k plan and you're going to have to figure out what's the right sequencing of all of those individual accounts and how to take the money out.
Speaker 4:
31:38
But then at that point, you don't want your money just in your retirement plans. You want money in taxable accounts and people are probably listening saying, well, Paul, why in the world what I want money in taxable accounts versus money in tax deferred accounts because you don't know what the future tax situation is going to be. So this is the same thing. You're putting all your eggs in one basket. Do you want everything tax deferred? Or if everything's taxable now, maybe the tax rates change later. And to your benefit and by managing the tax, you actually have a larger base to get a higher income out of. Let's talk about dividend stocks for a second. I mean to be, don't fall into the trap if there's a really high dividend yielders a reason why a tie and it's a value trap you can buy to get the yield, but you can have lost in the principal, but there are some really good stocks out there today. You can get a two and a half, 3% maybe 4% yield, but here's a way to to really increase yield, and we do this at the Carson group. You can do this with your financial advisor is write covered calls. Now, I don't want to get too technical here, but think of this. Let's say you own a share of Merck and you're going to actually
Speaker 3:
32:41
say, you know what? For the next six months I'm going to give somebody the right but not the obligation to buy my merch at a price above where it's at today. They pay you for that option and you get to keep that and the worst thing that can happen is it gets called away at a price higher than it is. If it stays the same or it goes down, you get to keep the premium regardless of what happens. And this is a very effective, I think, um, our current yield, you know, as, as in the double digits, we can't give the exact deal, but it's, you get a, you get a high yield, uh, and there is some risks because you're owning individual securities, but because of the amount of income coming in, you really buffer downside risk. Bonds are another area where you can do a bond ladder, not buying a bond fund, but an individual bond ladder.
Speaker 3:
33:29
You can get substantially better return with very, very low risk. I mean, you were talking about municipals general obligation, they're backed by the taxing authority and it's tax free and you can get a higher tax for yield with a good Muni bond ladder, then you can on a taxable account sitting in money markets at the bank today. Yeah, I mean, I'm sure our listeners know interest rates have been rising and so as interest rates rise, bond prices may go down, but what it's doing is if you have a bond ladder in place, then your portfolios insulated from that type of rescue, you're helping protect it in ways and other way Ron people earn income, and again, don't put all your eggs in one basket here is because the real estate market again is warm, is they're looking at rental properties and so we've been big investors and rental properties we're on.
Speaker 3:
34:20
However, but as professionals, it doesn't mean you're going to go out and buy individual places on your own without knowing what you're doing. I agree. And by the way, if you find a good one and you can do the work on it, I'm a big proponent of that. If it means withdrawing money from from us, from your advisor, you can really get a good yield if you're handy at doing that kind of stuff. So you know it. Think about whatever you're doing, getting a second opinion, and we talked about earlier on the show today is looking at the quality of the team that's sitting behind you. Does the planner have a CFP? Does a tax for prayer, either a tax attorney or is it a CPA? This is the other pet peeve of mine, Paul, who's managing the money? Is it a CFA? Someone's been formally trained or they winging it or listening to just garbage just coming out of Wall Street and they're allocating it.
Speaker 3:
35:11
They're basically charging a fee to guess. These are things that you want to do. The Carson Group, we can give you a second opinion. There's absolutely no cost and no obligation and the other thing you'll appreciate as we can show you what your downside risk is. Great. With the whole digital digital allocation can show you real upside, downside, how much risk you're actually going to get today in a very simple, easy to understand way. Give us a call. Eight eight eight four nine 85 13 it's eight eight eight four nine 85 13 today's the first day of the rest of your life. Make it a priority. Give us a call. Get a second opinion. Eight eight eight four nine 85 13 I'm Ron Carson with Paul West and you're listening to wealth than wisdom.
Speaker 2:
35:52
How could you make your money go further in retirement? Learn how next unwell from wisdom with Barron's hall of Fame Advisor Ron Carson. Is it possible you could pick fewer taxes in retirement and keep this money for yourself? You could learn right here and right now. Unwelcome wisdom with Baron. Tall Boom advisor Ron Carson.
Speaker 3:
36:13
What do billionaires know about investing their money that you don't? Matter fact, they started off as millionaires will solve them, even grow to become billionaires and it's possible. How do they show their assets get passed along to the next generation without getting double taxed by the government. They do a plant. They have professionals. They get the 18 I'm Ron Carson. Welcome back to wealth and wisdom with my cohost Paul West today and our final segment. We're going to talk about some of the things that millionaires absolutely positively doing, some of the mistakes that they don't do. We're also going to touch on asset allocation, which is a big deal. And really estate planning, I mean, getting that plan right. I don't care how much you focus on all the other stuff and risk and returns and worried about the markets, you're not going to outrun the benefits of effective estate planning can actually bring, it was just so much value if it's done properly.
Speaker 4:
37:08
Yeah. And, and effectively, I mean, and by the way, um, I saw a great video the other day, Ron, and it made me think about how this applies to our business. I know you make, you tease me, Abby and other people tease me about, I love analogies. Yeah. But think about this. You're, you're under three hours a tease you I love about you actually. So imagine this, you're a three year old, there's a great video and they are looking at a magazine and what do they do with the magazine? Ron? The whole time they're trying to swipe on the magazine. So here there's this nice glossy ads and things they're trying to swipe on it. And so guess what? Here's a magazine for a one year old is really an iPad that doesn't work. Yeah, that, that's exactly it. So, but as your state plan in the same way is it just sat there, but it's not integrated.
Speaker 4:
37:56
It doesn't link up to everything else and it's static. So it was like, it really looks nice in his binder, but guess what? It's not updated. It's not modern. It's not connected to everything else. It's not digital. Think about the mistakes you're making with that and you can't because times change and there's so many times we've seen in people's estate plans where they have the beneficiary and correct or we've all dealt with aging parents and dementia and things that go on is you need the right healthcare power of attorney and have you put that in place and you, you really have to look at it. It's a living, breathing thing. So my, my analogy is don't let your estate plan to be a magazine. Yeah, it looks
Speaker 3:
38:36
nice. Make it an Ipad, make it integrated, make it worthwhile, make it continuous, make it digital. It's going to make your life a lot better and easier there. And the other issue too, Paul, is sometimes these estate plans are five, six, seven, eight, nine, 10 years old. So think about how much your personal situations change plus the tax laws. So you got two big variables that are moving, making the estate plan probably way al a date and not nearly as effective as it could be. No, you're definitely right. And you don't want to get in a situation in the end where you have to spend thousands of dollars on probate and legal fees. It's because not only you're going through the grieving process, then you want to go through, unfortunately what I call the headaches that happened afterwards of deal with that. No one wants to deal with it.
Speaker 3:
39:20
And then you have to make sure you're picking the right professionals to help you sort through all of those different pieces. And for listeners, if you don't have time, you can give us a call, eight eight eight four nine 85 13 and we'll send you on of these round to it. So you have around to us and get around to it and a you can come in and get, get stuff done. Let's talk about asset allocation. Paul. Um, I love one of Buffet's quotes. He says, find a trend, throw yourself in front of it and you'll do very well. The may getting the allocate the right allocation is critical for two reasons. One is it drives what your risk budget is. So if you protect the downside, the upside will take care of itself. So getting the right allocation based on your risk risk budget is critical.
Speaker 3:
40:05
And also if you, if you have the right trends and you're in front of them, then just time will will literally benefit. And I believe work magic and mentally, you know, being able to see the portfolio overall do well. Yeah, I think a lot of us now and run out, unfortunately it's, technology's a wonderful thing, but it can be a challenging thing. So I heard a statistic the other day that we check our phones 173 times a day, 173 that we look at our phone and glance at. It doesn't mean we're always, you know, looking up stuff in it, but that we glance at it. So if you think about how many hours the average person's awake, that's, let's just call it a little over 10 per hour, that's a ton. And so a little bit, unfortunately, it's the behavior we create because of technology. It creates behavior. Should we make investment changes quickly or change your asset allocation quickly when really for a lot of people run, the best thing is you got your plan in place. Actually it was overheard a conversation. One of our advisers right before I walked in here this morning, Ron, to talk and they were walking through with this client because I could hear him on the phone. Remember, this is why we set your asset allocation the following way. We have this much in downside protection. Yup. You were fortunate. You made money, you worked hard. We don't want to lose that. So let's make sure, even though it's not going to grow as fast as the market, that's okay, because guess what?
Speaker 4:
41:35
It's not going to ride the roller coaster down as fast as everything else. Here's why. Or you're getting income from your portfolio. Remember, this is why we picked that pulled out x thousands of dollars to help pay for these expenses, and here's how we're trying to grow your portfolio. That to me sounds like asset allocation and diversification in more importantly, protect the downside. I cannot stress enough run, um, downside protection or what we call irreplaceable capitol. Everyone wants to chase returns or say how great they did, but here's what it's going to happen. We have recency by us, and the problem with recency bias is bring back everybody's memory in 2008 and you've got to go back into the memory banks there or go back to 2001 fear, pain, scared, anger, all of these things related to your portfolio. If you weren't properly protected and don't let that happen, people have to learn from their mistakes. Don't
Speaker 3:
42:32
let them keep going on and on and on. With that. Let's summarize some of these fall. Um, first of all, millionaires, billionaires, they operate, they face facts and operate in fact based environment. Don't get caught up on hype trust, but verify. Really understand what are you're getting. Do you have a team? What are their credentials? What, how are they going to be a proactive, don't overspend. Also adjust your plan. We talked about estate planning, but all of that goes through. The other thing I love is, and I hear this all the time, is wealthy people don't waste money on things. Just because they can afford something doesn't mean they're gonna. They're gonna spend a lot of money on it.
Speaker 4:
43:14
Yeah. Let's talk about some of the positive things that they do. Ron is one, they start early. So the successful people start early. Um, they also have more than one source of income. Next, I would say they also are smart about creating a promising future for their children. Um, Ron, I've talked about this. I got two kids in high school, won another one will be on the way soon and we start when they're born and I've just used the power of compounding, putting in a little bit each month into a five 29 plan to help them out. While it's fun now to see the value of those accounts that are going to help them for their colleges, which is taking what I do there, I took advantage of automated savings, savings
Speaker 3:
43:51
and vehicles to do that. If you've been a good saver and you've managed even save whatever it is, a few hundred thousand maybe a million may be several million. You may feel really confident, but what you don't know is the downside. Paul, you're just talking about this could be lurking out there. Protect the downside. The upside will take care of itself, always has always will because you've accumulated some wealth, you have opportunities, but don't get caught up and taking too much risk. Take advantage of them, but also be really aware of what the downside is and we have this high net worth analysis that we're able to do and coming back to measuring rest today, we've got the markets, they're up. We've been around this long period of a bull market. You really want to understand, and we've seen a lot of risks Creek Paul. Absolutely. Yeah, and it's, it is a big deal. This net worth analysis, we'll give you a lot of answers to what you need to do. Give us a call at eight eight eight four nine 85 13 there's no costs. You have absolutely nothing to lose. Even if you have a financial adviser, this is your chance to get a second opinion to make sure they're not missing anything. I've never seen a plan that could withstand a second opinion. Eight eight eight four nine 85 13 call eight eight eight four nine 85 13 I'm Ron Carson's, Paul West, and you're listening to Walton Woods,
Speaker 2:
45:16
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 may not be invested into directly. Investing involves risk, including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through CW m LLC, an SEC registered investment advisor.