Wealth from Wisdom

Dotting Your I’s and Crossing Your T’s: How to be fully prepared for retirement

June 16, 2018
Wealth from Wisdom
Dotting Your I’s and Crossing Your T’s: How to be fully prepared for retirement
Chapters
Wealth from Wisdom
Dotting Your I’s and Crossing Your T’s: How to be fully prepared for retirement
Jun 16, 2018
Carson Wealth
Show Notes Transcript

Imagine what it will feel like once you finally retire. Its exciting, but it can also be scary. And, today more than ever, you have to dot your I’s and cross your T’s. On this episode, learn how eliminate unwanted financial surprises and become fully prepared to retire.

Speaker 1:
0:00
Okay, and here's the legal Mumbo jumbo, the opinions voiced and welfare wisdom with Ron Carson or for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm, LLC and SEC registered investment advisor.
Speaker 2:
0:31
Did Morgan 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 203 the skyrocketing cost of healthcare and retirement could now run 350,000 planning for retirement today is now a whole new ball game. It's loaded with challenges, obstacles, and trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson. Welcome to wellspring of wisdom I Ron Carson, and thanks for joining us today with my cohost
Speaker 3:
1:12
Paul West. Imagine what it'll feel like when you finally do retire. I just want you to imagine for a moment you're driving home from work for the very last time. You have no more alarm clock. They you out to hit the snooze button two or three times on no more getting stuck in traffic and all the commute. That sounds great, doesn't it? But also there's a scary side to this. There's no more paychecks that are going to be direct deposited or given to you. It depends upon how you take it. So, so for so many people that we advise, it's an exciting, but it's scary at the same time. And believe me, this is a much, much, much bigger deal than anybody imagined it was going to be. It's a big change of life. It's a big transition. There are just so many moving parts today when it comes to, and I hate the word retiring, let's call it financially secure, to be able to do the things you want to do versus the things you have to do.
Speaker 3:
2:18
And today more than ever, you've got to dot those i's and cross those t's. And most things are probably pretty obvious to most financial teams, but there's a lot of little things that aren't so obvious. And if you overlook them or your underestimate him, that could have a huge impact. They could get you into real trouble and they could set you back financially. We're shut worsh yet. And this is a nightmare scenario. It could force you to have to go back to work. And that's why the last thing you want to do at this stage of your life is not be totally prepared and just don't wait to you get to retirement. We're going to run through a checklist today that you need to start today. So you're going to avoid and eliminate those unwanted financial surprises so you can eliminate pain and consequences for really not prepping.
Speaker 3:
3:15
So Paul, I've been gone for two weeks. By the way, you probably wonder where the heck's Ron been. I've been talking to so many of you around the country last week in Bellingham, Washington, Spokane, Washington, Boise, Idaho, and even Sioux Falls, South Dakota. Paul, we ran into lots of our listeners and clients and it's just been great. And by the way, and all of that also spent an entire week at singularity university. There's a book that I recommend you read called exponential organizations that Peter Diamantes, Salim Ismail actually founded the college and also wrote the book. And I think it's important, whoever you're preparing to trust your, your future to helping you make financial decisions. Are these staying plugged in to the changes that are coming down the road because they're huge. And if you have an organization that's not prepared for what can happen, I think they're going to be co they're going to be caught flat footed because if you think technology has been moving, it's been a trickle and according singularity avalanches near, and I love another saying, it's like, you know what?
Speaker 3:
4:26
Change is a slow as it's ever going to be. And if you're not moving as fast as the outside world, you're going away. And that's probably true with a lot of organizations. So it's really time to say, what are you doing to think about and prepare for the massive change where our economy's going to go through a Paul? Uh, no, we're going to get through the checklist today, but I've been sharing a lot of this with you. I actually have videos that you can subscribe to called Ron Sense. You can go to, you can follow me on Twitter, uh, or you can go to the Carson group website under insights and what, pull up one of the Ron since videos and you'll be able to subscribe. All you do is put in your email. And I tried to cut one of these a day, but I've got two videos every single day I was at singularity.
Speaker 4:
5:06
Yeah. Well, welcome back. First of all, Ron, to have you back. Uh, and so that's a lot of places you've been asked several weeks. I'm sure you feel the same way, uh, through all of that. But I was sitting there thinking about while you were talking, very beginning about picturing that last day in the drive. So actually I was sitting here, my brain, you, many of you know, our Home Office is in Omaha and I was picturing myself driving down dodge street and saying, hmm, I wonder if this was my last day, where would I be going? What would it be doing? I'll probably do a pub to celebrate, but a dif different story there. But as I think about it, I don't know, one likes, unexpected challenges and a plan. And actually this weekend I was very fortunate enough I was able to go to a local university here at Creighton University and I had a chance to go tour their behind the scenes athletic facility. And it was fascinating. It was really neat to see the changes for both the men and women athletes and what they can go
Speaker 3:
5:58
do. But when I was getting off the freeway, all of a sudden it said the coming street exit was closed. I was like, oh, that's my exit. So my plan had to change. Now was risking being late. And I was sitting there, I'm like, why didn't anybody tell me about this? And I go Google it. Of course it was all over the Internet. It was all in the newspaper, all those places. I missed it because I didn't see that point in time and if I would've planned better, I would have shown up there correctly. But also I have two ways to handle a little bit what you're talking about. Similar university is I could have complained and been nonstop or just realize this is just a small roadblock. What'd I do? Go on the next closest exit. I knew how to get there and I still by the way, made it there in time and my boys were in upsetting me with me about missing that exit.
Speaker 3:
6:40
So as we think about people's life, sometimes you get thrown a curve ball or a roadblock like that. How you react to it to get back on your path makes a huge, and we've done behavioral shows before, Ron, how you respond is probably equally, if not more important than having a plan put together. I agree. But having the plan gives you mental awareness of how to respond right when the plan doesn't go as expected. Paul, before we get too far into the program today, I want to record, this is veteran's day and really to our men and women in uniform, past, present, and future. God bless you and thank you for your sewer service to this great country. America must never, ever, ever forget your sacrifices. All the people, like I said, that, uh, that have served, that have given their lives to make this country great.
Speaker 3:
7:29
And you know, I get frustrated sometimes today, Paul, I, you know, it seems like we're so often a country that knows all of its rights that maybe not all of its obligations. And when I look at the people that serve the selfless in the way they give for their country, boy, they're just the opposite. They know all their obligations and sometimes it was the last person to out there taking advantage of all the rights. Yeah, well sat around. I mean just thank you to all the men and women who put themselves on the line all day long to make sure the rest of us can be driving down the road and can reach retirement and all the things that help. So thank you on behalf of everyone, just not only on the radio network but throughout the United States. So Paul, let's run through this. I mean, number one, it's not going to surprise you.
Speaker 3:
8:13
This checklist, and this is something that should start today, not tomorrow. I mean, absolutely positively start today and that's have a financial game plan. And I don't mean a financial game plan that is, you know, it's, it's not customized for you as a bunch of garbage in, garbage out. It's a bunch of templates. This is about sitting down and really getting to know what are all the resources you and I just on Friday we're in Colorado meeting with some people that desperately needed our help. They had done no planning. And by the way, I mean, thank goodness or at least thinking about the process now that Paul a very situation, right? We've got businesses involved. We have kids involved. We have no estate planning that's been done there. Last tax return was filed and what 2014 I think. So we got some issues there. All of this could have easily been avoided by really having, putting some time into what the game plan is and they kids want to go to school.
Speaker 3:
9:21
So you know, one an Ivy League school, you know, not, not enough money put away. And so the, the plan isn't about one thing, it's about everything. It's all the little things that come together that have a huge impact on the quality you're going to live now for. The couple were helping in Colorado. They've gotten serious and I think we impressed upon them the importance of making some decisions on this stuff. Now they're fully engaged, right? They said, okay, we've hired you guys, I want you to do the planning. But I'm wondering had there was one particular person in this group that really pushed to bring us in, have that not happen in another 10 or 20 years could go by and all of that work or an unexpected death. They have total chaos. And the way everything was not structured
Speaker 4:
10:10
well. I think about the pain they're experiencing isn't just the emotional of, hey, we're behind on all this wrongness. They're getting financial pain on taxes and delays and penalties that come along with it, but there's other pain. They're gonna feel insurance not being set up properly. This is huge and so many of you think, oh, I did insurance 10 years ago, 20 years ago. If your actual professionals not making sure your beneficiaries are correct or that the policy is going to turn out the way you expected it to, those are huge pain points that you have to make sure you're reviewing and looking at. And Ron, we all get it. Life happens. You get busy with your family, with your businesses, you go home at night. The last thing you want to do is necessarily sit down and work on your financial plan. Just work on it in pieces.
Speaker 4:
10:56
It's all sequential and how do you do stuff? So think about remodeling your home. What do you say? All right, I'm going to fix my living room next. Then I'm going to move on to my kitchen. And then I'm going to move on to my family room. Then I'm gonna move on to my siding. But you do them all and follow an order and your financial plans, no different is you can't solve everything at once, but solve your biggest pain point now and then move onto your next one and your next one, your next one, and you're going to be much more secure.
Speaker 3:
11:19
Paul, with all the proposed changes on taxes, that's also a biggie that a lot of people mess. You know they've saved for their retirement and that's a great start. But now what? Because it's what you do with the money that really matters. And so often you could legally pay a lot fewer taxes in retirement and keep money for yourself and you can also avoid losing tens of thousands of dollars in social security benefits. How do you do that? An income or course in retirement? How do you structure that? We have are great. Five step master will give you the answers. You'll discover five significant strategies that can help you make the most out of every single dollar that you've saved for retirement. If you've saved and if you've saved, well, that's not nearly enough. Our operators are standing by to schedule an initial analysis at (888) 419-8513 what you could learn will save you many, many a lot of heartache and maybe tens of thousands of dollars. Give us a call. Now, operators are standing by eight eight eight four nine 85 13 that's (888) 419-8513 so if you dotted your i's and cross your t's coming up next, Paul and I are going to talk about the most overlooked items in retirement that could cost you thousands of dollars every single year. We've covered the importance of having a financial plan, but there's a lot more around the corner. I'm Ron Carson with cohost Paul West, and you're listening to Walter. Yeah.
Speaker 2:
12:52
How could you make your money go further in retirement? Learn how next unwell from wisdom with Barron's hall of Fame Advisor Ron Carson, he's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to welfare. Wisdom with Barron's hall of Famer Divisor Ron Carson. Most people who are on the doorstop or retiring
Speaker 3:
13:15
Herso unprepared, grossly ill prepared would be an understatement if for so often they just don't play in it's ready, aim, fire or ready, fire, aim, right? You know what it's supposed to be, but are you doing it in the right order? You made that decision to retire and I hate that term, or to give up what you have to do for the things you really want to do because you wondering, am I financially secure, but you're not sure. You're not sure whether you can afford it, and by the way, don't make this decision until you really have all the facts and all the answers. Welcome back. You're listening to wealth and wisdom and I'm your cohost Ron Carson with Paul West today. Remember an account balance, a number, a financial game plan or something here on TV or the radio or your brother in law did it with so much. That is not enough information to do that. We're going to continue to go into the retirement checklists, things that you should do start doing today in order to ensure you're going to be financially secure and be able to retire the way you envision. And Paul, we talked about the financial game plan. It all starts with that and really everything else falls underneath that. Creating a budget, creating a budget is such a critical piece to this overall retirement puzzle. Otherwise, how do you know how long your money's going to last?
Speaker 4:
14:31
Yeah, and around a lot of times he'll say budget and they get scared and think, oh, I need to go down to the penny. It doesn't mean you have to go down to the penny, but it's like you should have some guardrails. Hey, I can spend x dollars per month or up to y, but just don't go all the way to z or all the way down to a, so you've got to figure out that right now what happens when I think about when people have cash in their pockets and I'm, I'm fine care Gash, I personally carry cash because I don't like to not have something in case of emergency. But what happens when in retirement if you don't have a budget, you may get bored. You have more free time on your hands than ever before and if you do, what's going to happen? You're probably gonna spend more money because you're looking for other things to do.
Speaker 4:
15:14
If you don't have a game plan set, what you want to put together. A, I was letting, my son was going to the movie theaters here a couple of weeks ago, Ron, and he said, hey, I'm going to go see a movie and I didn't have $10 to give him. So I gave him 20 he said, great, you don't need any change, right dad? They said, no, I do. Your budget is you go to the movie that costs x, you can have one tree. That's why at maximum it's going to be whatever it was, $13 I expect minimum $7 back for you. It's actually set a budget for when he went to there. And that's just one example because if I let it run up all the time, which just like people doing retirement, oh, let's go to that couple extra meals or let's take one extra trip per year. Well, the ramifications could be significant if you're not budgeting properly
Speaker 3:
16:02
for that. Uh, Paul, so somebody, you and I both know, um, the spouse was lamenting this last week because her husband was actually in a, on a trip and sent her a text saying, Hey, can I buy a watch for $26,000 for what a watch? And, and I was more worried about the dollar amount was like, she's like, heck no. First of all, we only have $30,000 of cash, right? I spend $26,000 and I'm like, Mike and I said, how often does happen? She goes all the time is whatever's in there. He'll automatically spend, and so I've had to start taking money and putting it away and account that her husband does it cause he has no financial discipline whatsoever. And I said, you guys have a budget. She says, we really don't have a budget. I said, I think maybe that could help influence behavior. Knowing this $26,000 a watch today, right when they're in their thirties could mean it's going to add 2.5 years on to when they can be financially secure. Especially if you're going to spread that over a 30 year period of time. Yeah,
Speaker 4:
17:09
I can't believe it. They want to spend 90% of their savings on one time.
Speaker 3:
17:14
Well he, he 63% of workers are at least somewhat confident that they have enough money to retire yet get this 63% Paul think they have enough money. Yet the reality is this, the average 401k balance in 2016 is $96,000 and you may wonder, well how long would $96,000 last that would provide $3,200 in annual income over the course of a 30 year retirement. So there's a big, big mismatch between expectations of or assessment of preparedness and how many people can, how far is $3,200 going to go even when you throw, throw another thousand in their s for social security, 4,200 bucks a year. Yeah, it's not going to go very far. I can take you very far at all or I saw you were talking about traveling, you and I actually were fortunate enough to be visiting, visiting with the family up in South Dakota and they were hit retirement, so that's great.
Speaker 3:
18:12
And they were working on a plan, but part of what their plan was is running a small business and they wanted to open up a second location, multiple, call it four plus hours away from the original location. And that creates a lot of complexities that goes along with it. But just because your heart and desire is in there doesn't mean it's maybe the right decision. So not having a plan put together and open that second location meant, what do most of us do when we want advice? We go to family and friends and somebody that's probably done this before, but no, very few people actually go to a planner. So this person went to some of their insurance professionals. They went to a real estate person, they went to a local bank and yeah, they got deals, but they didn't get the best deals for this person.
Speaker 3:
18:58
So they fell in the trap of asking one person in this specific city, who did you use to get your loan from? When the reality is is for six figure loan, they just cost themselves tens of thousands of dollars over the lifetime because they didn't find the right person for them. And you have to think about this. Your plan is don't take an unnecessary risk. So a lot of people think, oh, this is a good idea, but it may not be because of not knowing the right professionals to ask. Don't think asking one person, why do they always tell you get three quotes for everything cause you need to find the right solution for you. This just happened this weekend with my dad, Paul. I mean I'm, we're talking. Um, he said thank well it actually happened two weeks ago, but I just found out, uh, this this weekend that he was borrowing money from one place and I said, why don't you look at my bank and see what they can do for you.
Speaker 3:
19:47
Saved him 2% on his operating loan. Wow. 2% on a fair amount of money. It's a huge difference. And so just don't assume that everybody's going to be sort of in the ballpark. Number three on the list, and this is one that we see all the time, torpedoes great retirement is you don't, you're not expected and you don't have health care and longterm care covered. This is a time to cover it. The typical 65 year old will spend between Twitter and 50 and 500,000 and healthcare and medical expenses in retirement. According to Forbes, nearly 70% of all people live to age 65 or acquire some form of longterm care. That's these are, these are big numbers. You can, you know, I, we're not a huge end insurance, but I believe in taking insurance to transfer rest as you can't afford to bear on your own. I see a lot of people are way over insured, but just as many are way under insured because they're taking risks that you can't afford to take. Yeah. Well, Enron,
Speaker 4:
20:48
when I think a lot of times happens is everyone thinks it's a little bit, the Oedipus complex here is something's not going to happen to me that I'm, I'm invincible or I'm invisible and these things are going to completely be avoided. But you just shared the numbers and guess what, with longevity, and I'm sure what you heard through singularity, we're going to live longer, but at some point in time all of us can probably think of a health scare, health risk for us, a spouse, a family member under the age of 70 you're under the age of 80 that has happened. That was probably very costly. We can also share stories of things that happened post then where people had to pay money and find ways to solve for those problems, but don't let your own personal beliefs that you are invincible when out here. There's just no reason to bear that amount of risk. I can't even imagine thinking through, oh well what if all of a sudden I don't do a good job preparing and I have three children and then they have to financially support me. In my old age, I couldn't imagine putting that burden on them. I would be so mad at myself if I ever did it.
Speaker 3:
21:52
You don't want to and and guess what? It's going to. You're going to need health care longer. According to singularity, worked within 12 years of not dying of natural causes, which would be a significant acceleration of how long we're going to live, and I actually had an opportunity to meet with a lady who started a foundation for the cure of Alzheimer's. She actually has the gene and one of my children actually have the gene. We all done genetic testing to find this out. Sometimes you don't know. Do you want to know? But I'm more motivated now. You know, and my mom actually died of Alzheimer's and uh, she says she thinks within five years. By the way, a fascinating lady, her and her husband were the original investors of Netflix. She says it was a wild ride for 18 years and had to literally bail him out twice. Think of that Netflix, they are today, but be prepared to fact is all the roles are out. And this is why having a team that is in tune with what's possible and what's probable in the future means planning decisions have to get really need to be a lot different today than they used to have to be in the past because you need a backup plan, you need contingencies. And how would you adjust?
Speaker 4:
23:03
Yeah, I mean it's continually adapting and evolving world and everything we look at, and for many of you, you may have trusts you set up for your families and there can be minimal, there can be zero in it or there could be a significant amount of dollars. And Ron, I'll share on the story with you. Working with a family across the network. They came in. Their issue is, is they need a trustee to help them disperse their assets. When that time happens, it has to be outside of their family and they're working with a very large firm across the country and has been in a lot of new stories for not putting their clients' interests first. And they are there. They showed me their pain over 1% to have this other firm managing my wells Fargo. I can't believe they're doing a while was Fargo. All right, so I mean for trust services, it's baffling to me that these things are happening out there and so not only are we solving a plan, but helping them avoid conflicts of interest that are out there.
Speaker 3:
23:58
Paul, the next one is social security. Go back and listen to one of our old shows because there's, we're not going to beat that to death today, but you know, it's huge. Claiming your social security has been turned upside down, and if you follow the old rules of thumb, you could trigger an avalanche and taxes and you could forfeit lots of benefits that are rightfully yours and it can even cause you to pay a higher medicare premium. Ultimately, it could cost you tens of thousands of dollars in additional additional costs and taxes and unclaimed benefits. We want to help you ring every single penny out of your benefits. With our customized social security analysis, there's no cost. You've got absolutely nothing to lose. You'll learn precisely how and when to claim those benefits strategies that could minimize taxes on those benefits. Plus, if you're eligible for additional benefits, it could mean an additional tens of thousands of dollars in your pocket every single year. Give us a call. (888) 419-8513 don't leave tens of thousands of dollars in social security benefits on the table. (888) 419-8513 that's (888) 419-8513 I'm Ron Carson with my cohost Paul West. And you're listening to wealth and wisdom, radio
Speaker 2:
25:18
trust, transparency, accountability. These are the values that drive Ron Carson and Carson. Well, you're listening to wealth 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 on wealth and wisdom with Barron's hall of Fame Advisor Ron Carson. Welcome back to wealth
Speaker 3:
25:44
wisdom. This was a great day. This is veteran's day. And on this veterans day, let us remember the service of our veterans and let us renew our national promise to fulfill our sacred obligations to our veterans and to their families who have sacrificed so much. So we can live in this amazing country and we get to live the way we want to live and we get to be free. So if you see a service member today, thank him, take the time to have a conversation with them because we don't have the great United States of America thought all the people that have sacrificed so much for the United States. Thank you very much. Thank you. So you think you're ready to retire? Sync again. Welcome back. I'm Ron Carswell. If Po Paul West, you should go by Paul Chicco by Paul woes. I like that. That's better than worse. So it's such a complicated name.
Speaker 3:
26:38
It is. But you're listening to spell too, you're listening to wealth from wisdom. There are in Paul, you and I talk about this all the time. I mean it's, people avoid dealing with retirement because there's so many moving parts. There's so many things that can be forgotten. And my wife and I just recently was just over the weekend. She was like, you know, we just, we bought a, we bought a property out in Colorado and she's like, did you get insurance on that property? And I go, that's, you're the CEO of the household in reserves out of to get the insurance. So we've had no insurance on it for probably about three weeks old. It didn't burn down, you know, in the meantime. But it just goes to show there's a lot of little things and you know, we would have, we do our, we do an annual checkup to make sure we've got everything covered so it would eventually gotten caught. But there's this a lot of stuff, a lot of currents, a lot of, you know, [inaudible] t's to cross. There's a lot there. And we're running through our checklist today to help you think about these things before they become an issue. Yeah.
Speaker 4:
27:40
And as you're listening to show, it's on a weekend, right? So what are most of us do this weekend? We say, what are we going to do this weekend? Oh, we might do some yard work. I need to run to the bank. I got to get an oil change. There's the to do list or the honey do list, rephrase. You ought to use Ron that goes along with it. But how many of you get to Sunday night or Monday morning and 90% of those things you didn't do? You got sucked into, hey, there's a really good football game on Saturday or Sunday or shoot, we were talking about Netflix. I started watching one show on Netflix and all of a sudden next, I know I had just binged and consumed three of them and so make a goal even for yourself for the weekend. If I get my yard work done, I can watch a couple of those shows or get it done in time so I can watch the football game I want to watch and get enjoy because otherwise like those things are odds of getting your insurance. They just get kicked down the road and same thing happens to us every weekend on all of those activities. We know we're going to feel so much better about about getting done. It's like, why many people don't exercises if they get up and get it done, they feel so much better knowing that yes,
Speaker 3:
28:44
come on every night before I go to bed. You know, I list the six most important things I've got to get done the next day in order of priority and it just gives me such a satisfaction to let my subconscious work on them at night. But these, you know, getting through these checklists should be, and just, you know, you eat an elephant one bite at a time, you know, address them either on your own, recommended with a financial team that you really have confidence in. They can help you quarterback and make sure all this stuff is being taken care of. The next one on the Les Paul is Managing Risk and it's not just downside risk in the portfolio. Do you have enough liability insurance? You have insurance on your home, do you have longterm care insurance? All those risks. When you look at your plan that you're unable to bury yourself, you need to transfer that risk to somebody else.
Speaker 4:
29:34
Yeah. And the risk isn't just that it's your tax risk. Ron. Um, and, and I look at all of your overall financial situation is people want to take on more risk than they can bear, but they don't see it. So it's like why, I always compare the analogy to casinos. Why do casinos give you chips? Because it doesn't feel like you're taking the risk because you don't see a $20 bill sitting there on the table. You probably wouldn't bet as much or as frequently if you knew the amount of risk you are taking. And a lot of people don't think the same way about their life and their investments right now, especially around there's been this incredible run up in the market. It's been almost all driven by growth stocks, uh, large names, uh, and you know, value in some other places have been out of play. So what's happening right now and you and I see it all day long, listeners are calling us and saying, Hey, I've missed out on some of the run up. I think I'm going to move more over there to catch up. And I got to tell you, that's probably the worst thing you can do because now you're really, you're doubling up or doubling down on whatever phrase you want to use. You're taking on more risk than you even should be with where the market is.
Speaker 3:
30:41
Well, and Paul, we had something happen this last week where we were evaluating a strategy for somebody and our risk analysis was showing that the downside with significant, yet the strategy is sold as an always hedged strategy. So we actually reached out to the fund manager and said, you know, tell us exactly how you're protecting the downside. And part of their strategy was human, um, decision making process to what we would do this and this. It's like, wait a minute, that's not always hedge. What if North Korea fired a missile? And if Japan overnight, you can't actually do something the next day. And so using technology to really pure through and look at how much downside risk you have is invaluable. So really understanding what something says, but as it really structured to perform as advertised. And that's one of the things we are investment group. We have 38 people dedicated to research in figuring that out because it's a full time job. And one of the red flags always tell people looking for a financial team is as a one guy trying to do everything or do they have subject matter experts in every area. But one of the biggies, not only the wealth enhancement group or the planning and tax, but also managing assets, but more importantly managing downside risk because you've take care of the downside. The upside always takes care of itself.
Speaker 4:
32:05
It always does Ron. And people have to look fat from risk. And unfortunately we all have a recency effect right now and right now the recency effect is there's not a lot of risk in the market. So therefore people are ignoring it. And unfortunately what it may take is whenever this next market correction happens, people are gonna feel pain because they heard us or hurt other people across the country saying, take some chips off the table or protect yourself on the downside and what are they going to do? Ron Ignore it. And then all of a sudden until it becomes painful for them is when they're going to actually make an adjustment and by far
Speaker 3:
32:40
that's way too late for what they want to do. We seem to many people the painted consequences of being, you know, after the fact they realized, oh my gosh, I was there. I was at the finish line. I had enough resources and then this happened. Now I looked at it and find out I was there, but now I'm not close to being there. I'm 30 or 40% away and they beat themselves up because they had the golden ticket and they lost it because they didn't get around to taking a look at evaluating it. I couldn't imagine what if I was within two years of retirement right now, Ron are my age. I want to do that and I'm fully invested in the growth part of the market and I don't make an adjustment. And what if something does happen? That crazy person in North Korea presses a button and the market goes down 20% all of a sudden I can't retire anymore and two years, how am I going to feel about that?
Speaker 3:
33:28
Horrible. Not good, not good. Let's move on to taxes. You know, with all the talk to change in the tax code, the new tax plan, now's the time to really be thinking about, okay, what adjustments should we be making based on what even could happen? Because you know, there is literally going to be some changes are always are. But in you and I talked about this with the group we're meeting with in Colorado, they have a tax for prayer today that is recording history. They're just, here's the numbers and they're plugging things in the boxes right now as the time that you can impact 2017 and lower your taxes. So if you're not having that tax planning meeting, if your CPA is not bringing a proactive tax ideas to you, you're not getting the most are making the most out of the situation now you're definitely not.
Speaker 3:
34:17
And I think about, um, not only the cost basis on your stocks are on, but there's some other ideas and techniques that you're professional should always be aware of. And as I think as we're talking through the different ones, I'll share a story here shortly, Ron, with the whole team about a tax idea that could save you so much money and your families throughout retirement. Well you could pay fewer taxes in retirement. It's a fact, but what's the most efficient way to take that money out of your Iras and your 401k's and I'll help you get the most out of those social security benefits. How do you do that? You have questions, lots of them about money and investments. Let us prove to you how we can help you make the most out of every dollar you've saved. If you don't know who we are at the Carson group, we're one of the top independent advisors in the country.
Speaker 3:
35:06
According to Barron's, we were selected as one of America's top wealth advisors according to Forbes and were featured all over the place. We have great subject matter experts on CNBC, Fox, you name it, US News and world report, Forbes. We're in there and of course for true fiduciary is we've put your interests ahead of our own. One simple phone call could literally change the course of your retirement. Our operators are sandy body. Take your call now at (888) 419-8513 even if have an advisor now, owe it to yourself to just get a second opinion that would benefit you. Eight eight 84985138884 nine 85 13 I'm Ron Carson with Paul Watson.
Speaker 2:
35:50
You're listening to wealth and wisdom radio. 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 Barron's hall, the same advisor, Rod Carson, he's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. So what should you do? Right, right now, I mean, this very minute to prepare
Speaker 3:
36:17
herself to retire within the next several years. And how could you avoid it, eliminate any unwanted financial surprises. Welcome back. I'm Ron Carson with Paul West, and you're listening to wealth from wisdom. If you overlook or underestimate one little thing, it could get you into real trouble and put you into a major financial setback or shut. And this is nightmare scenario. You could be forced to go back to neck, back to work. And Paul and I are giving the retirement plan, checklists and some of these things fall. You know, you should start doing, you know, five years before, two years before, three years before. And I'll give you some of those as well and just a minute. But let's talk about having a diversified income plan in a world today, or interest rates are basically almost zero. And you know, how do you convert some of these assets that aren't giving you a yield into a yield play?
Speaker 4:
37:12
Yeah, we're on. So people get money from their investments. They get 'em from full security, of course, that we talk about when they're in retirement. Uh, the sequencing, she pulled them out of your Iras or other taxable accounts, but a lot of you own real estate or own property and there's some techniques out there on that we're really seeing today that could be very helpful for you. Uh, you may have heard of a 10 31 exchange. So if I'm going to sell a multitenant building here in the city, or maybe I own some farm land, uh, the actual profitability on a lot of these for people and the yield is what I mean, the farmland community, it's what one, right?
Speaker 3:
37:49
2% depends on where you're at, but, but Max two and a half all the way down to one and a half percent.
Speaker 4:
37:54
Yeah. So you're thinking, okay, what if I sold a piece of property worth $1 million? I sure as heck don't want to pay taxes on that. I don't want to write a tax bill for 250, 300,000, whatever the number is based on your tax bracket. And I know my kids don't necessarily want it today, so I'm not ready to give it to them as part of their inheritance. But what if I told you there's techniques out there that we've helped solve for clients where they're able to exchange that property and not buy a new one, Ron? Because a lot of times people want to go do that and they end up mistake they make is they overpay for news piece of property just to avoid taxes. I can't tell you how big of a mistake this is that we've helped people solve, but what if I able to help them
Speaker 3:
38:36
move into what we call a Delaware statutory trust? And by the way, if your CPA or our attorney isn't aware of this, you better be working with a planner that can use this type of technique. But I'm able to help people move real estate transactions into the statutory trusts and help them get yields and therefore income and then a diverse way for income of five, 6% range that Ron is helping solve two problems. One, they're not paying the tax man to, they're helping generate additional income for their retirement and what's so important for them. That's perfect. I mean, again, a lot of people don't know. Some of these things exist out there and it is by not knowing you can leave and you can make a bad decision. There's no tax ramifications. You move it, you turn something that's generating one and a half or 2%, maybe as much as six and a half percent yield in the current environment with high quality core real estate.
Speaker 3:
39:34
I was actually working with a family and I gave him this concept and this technique and how we're going to do it and they of course wanted to go validate it with their local CPA and by the way, this is just a CPA that works with two other people, not a complex office and the CPA had never heard of it, but they didn't want to spend time learning more because guess what? They were busy trying to get everything else done and they pushed the client down a pathway that was old style and old technique that didn't modernize the ability to create this diverse income stream. So now this conflict was of interest. They're long, trusted professional, wasn't in tune with what the modern trends are and creating a very diverse income plan. So Paul, we've covered a lot of items and we've got one more on here, which is update your legal documents.
Speaker 3:
40:25
I mean, and not just update them but have a regular cadence where you're going in in there should be of with our clients we have, we have alarms that go off to say we need to make a change, either regulatory change or something that when the client, but even if you don't think anything's changed, all that discussion and documents should be reviewed every few years, every four or five years, and not getting a long time. That goes by without any attention being paid to it. But you're asking some of these things guys, how, when should I start to do at Longterm Care Insurance? 15 years before retirement? If you say, well, I don't have 15 years than today. Today's the first day of the rest of your life. Make the most of it. Also, one of the things that I, and this a lot of people don't think about it is, right?
Speaker 3:
41:13
Your bucket list does start on that today. If you're two years or 20 years away and you can change it, but start making a note of things you would love to do. I've traveled this country and I've traveled outside of the United States a lot, and the more I travel here versus other places, like why don't more people just spend all, cause I'll never see everything in this great country and it'd be in veteran's day that people fought. So I had the right to have this great country to roam around and look at all the amazing things, right? I'm not going to write your bucket list, but be thinking about things and you can add to them. You can take them off, but when you get there, you can, you can mentally put yourself in that
Speaker 4:
41:52
position that Ron, I, I love when you're or around talk to people. They're like, oh my gosh, that is so cool that Paula or Ron or Andrew or whoever it is, you've got to do those things and it's not about the financial wherewithal at the time. Ron, what it is is people who create their bucket list set a plan on how to go do that and I love hearing the stories of, Oh so neat. That's so and so got that done or got to accomplish this because they actually built the plan to hit
Speaker 3:
42:17
that item on their bucket list leads to this next one is once you have a general idea of the things in places you want to do, you craft a retirement budget and you can have your bucket list done, but probably two to three years out because within a year you're going to make a final decision on how you're going to claim social security to maximize those benefits. And this all ties together, so we've covered a lot of items today, but you know the longterm care thinking about what you're going to want to do, getting a retirement by shit that will, that will support that. And then also social security within one year of actually claiming that these are a general timeline of when you should start thinking about these items.
Speaker 4:
43:00
Yeah, and if you don't, if you fall behind, by the way, plenty of people have called him the show, Ron have fallen behind. But what we've helped them do is set that next step to solve one of the problems and then move on to the next. And that's so important for our listeners here today. You cannot take that bite of the elephant and consumed the whole thing one bite at a time. We'll help you solve individual problems more. Partly Ron, I think about the emotional part of it. When we have fear, we avoid things. So what happens with cues or confused or want to feel like we're not knowledgeable? That's okay. There's professionals out there for a reason that you go to to help you solve problems and help you feel better that you're on the right pathway for whatever direction it is that you want to go.
Speaker 3:
43:47
Well, Paul and we, we deal with Iras and 401ks all the time. And so you know, if you have money in there, you know, whatever that dollar amount is, you really don't have that much in there because we talked about taxes today. Understand gotta pay taxes. But here's something I think will shock most people. Some people will pay through the nose when they take that money out of their IRA or 401k, but a smart savvy few will legally pay far less taxes. You could potentially save tens of thousands of dollars in taxes on your retirement accounts and keep all of this money for yourself or that bucket list we were just talking about. And we'll show you how it sorts of a simple conversation be one of the first to give us a call to schedule an initial analysis at eight eight eight 41985138884 nine 85 13 it's your choice. Pay The IRS are, keep the money for yourself. (888) 419-8513 (888) 419-8513 and Paul, before you sign off on this week's walls from wisdom, just again, thank you. Thank you. Thank you to our great veterans who had given us ability. You and I, and everybody listening to this show to live in such a great country and be free. Thank you for being so brave. Thank you. All.
Speaker 2:
45:15
Risk, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here. Unwell 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.