Wealth from Wisdom

Preparing for Unexpected Retirement

January 27, 2018
Wealth from Wisdom
Preparing for Unexpected Retirement
Chapters
Wealth from Wisdom
Preparing for Unexpected Retirement
Jan 27, 2018
Carson Wealth
Show Notes Transcript

It’s a fact … 60% of Americans will retire unexpectedly. Learn 5 steps to prepare yourself now … no matter what curveballs life throws your way.

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, an SEC registered investment advisor.
Speaker 2:
0:30
This Doug market hit another old time. Records as much as $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 205 the skyrocketing cost of healthcare and retirement could now run 350,000 planning for retirement today is a whole new ball game. It's loaded with challenges, obstacles, and trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with 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. Life is full of surprises. Things don't always go according to plan. You know, for example, if you think you want to retire in the next five years, but then something unexpected happens, you know, for example, your downsized out of your job, you are offered an early retirement.
Speaker 2:
1:22
Unfortunately, your health maybe takes a sudden turn for the worse, or maybe someone else in your family, parents, siblings, spouse, their health than maybe fails and you need to take care of them. Well, unfortunately you're getting out of the game too early and that is the game of building up your assets to retire when you want to and whatever the reason you're going to be forced to retire a lot sooner and sooner than you expected and worse yet you're even ill prepared and now you're going to be left scrambling to pick up all the pieces. Hey, your wells listening to wealth and wisdom today, and I'm your host, Paul West and thanks for joining us today. I'm thrilled to have my co host, one of our wealth advisors, Jim Caldwell here. So welcome Jim. Thank you, Paul. Yeah, glad to have you and look forward to you sharing some advice with what you're seeing across the country.
Speaker 2:
2:07
Many of you know Jim's based in Omaha, Nebraska here. Uh, but he spent time in Florida, spent time in Ohio and so he's going to share some insight working with people and what's worked and maybe what hasn't. Um, and maybe I'm sure he'll put a football analogy out there for us as well today. So you know, according to research study, and I thought we'd share some statistics here with everyone and no, I'm not going to throw you under the bus. Jim was statistics you don't know the answers to, but 60% of Americans do not retire on their own terms. Yeah, that's six out of 10 of you listening right now are going to retire in a date when you don't get a picket because of something else happen. But what we have to learn from this scenario is what do you need to do to make this happen?
Speaker 2:
2:47
Whether it's a job loss, that health issue we were talking about, it's going to be something and that's why I guess what we call it life. There's the life board game, there's life, cereal, life happens and if you were forced to retire would you be prepared and to help everyone. What Jim and I are going to talk about is we're going to reveal five steps for you that could better help you prepare for retirement and really no matter what curve balls life throws your way and no matter what happens because a lot of things are going to change in how you adapt to those change. And there's a lot of great quotes out there about it. The best leaders and the best people realize they cannot change the past. You can learn from the past, but you can only look at the future and it's something, you know Jim, I spent time educating my kids on this.
Speaker 2:
3:37
They may be frustrated on something. Certainly here in the Omaha Metro area, they've had a lot of time off recently due to cold and snow, but it's, they can't complain about that. Well, actually the kids are excited. It's probably than grand parents complaining about it, but we can only go forward. Springs not that far away, warmer temperatures. Uh, but those are just short term blips. But as we look at the long journey of life, we've got to figure out how to make that happen. And the number one thing that we're going to start talking about here today and number one step is you have to have a game plan put together. Uh, there's a little little event coming up here in a couple of weeks, I believe, called the super bowl. What do you think's happening? There's two weeks between the AFC and NFC championship games. And then what are they doing that just to give rest for the players? Maybe a little bit, but probably, well, it's more to give coaches time to plan, don't they? Gym.
Speaker 3:
4:34
Yes. So you can bet that a, in both of those camps, there are some intense game planning going on, on both sides of the football. And if either one of those staffs went into that game without a solid game plan. And I don't mean just plan a, I'm talking plan B and plan c because things don't always go the way you want them to, not only in retirement but in sports. So they are spending a lot of time film, study, a dotting all the i's, crossing all the t's and preparing for that big game that'll be here a week from Sunday. You
Speaker 2:
5:05
don't know if somebody's going to get stitches on their hand or they're going to get a concussion. So you got to figure out, and this is no different than life. So number one here is you got to have a comprehensive financial plan. But no folks, this isn't what we like to call a dust collector that you know what I'm talking about, that thing, you get your will, your trust or a financial plan and it goes and sits in your house and collects dust. That is old school. That's not the modern world that were here in 2018 and beyond. It should be evolving. It should be breathing, it should be digital. It should be safe, it should be secure. But what does she mostly important before you is comforting that you got a plan in place. But if you need to make adjustments to it, you're going to have the flexibility to do that.
Speaker 2:
5:49
So by having a plan, and this is one of the fastest ways to help get yourself out of trouble. We've seen this people who make so many mistakes when they don't have a plan, but without a plan, you're just winging it. I mean you really are. You just going up and hoping things happen. Well, it's the proverbial cross your fingers and hope you get there, but, and if you don't have this plan set well in advance, you could be putting more at risk taxes that I would even say gym. For many of you, you wake up, I hear Sonia, you say your life is busy because you're taking care of your family, you're Russian to events, you're going to dinner, uh, you're going to church. Whatever those things are that excite you and you're not taking care of yourself to make sure they're all better off. So saving for retirement is really great, but it's what you do with money that really counts.
Speaker 3:
6:38
And also to take that a step further, I mean the biggest concern people have really two of them. Number one, do they have enough money to retire and if indeed they do get into retirement, are they going to be able to live off of that money? So, but people procrastinate. Even our clients, we see it, we have to chase him down when we need additional information to put their plan together. And sometimes it gets frustrating, but at the end of the day, when they do provide us the necessary data, we're able to at least have a starting point. I think another thing the financial plan will do for people that is overlooked as they will be able to have a family index number and the family index number is, you know, Paul is that rate of return that we, when we invest our money need to shoot for so they can live the standard of living that they're used to living while they both had paychecks.
Speaker 2:
7:24
Yeah, I mean, and it can be complicated so that your plan is about many things working together with your family, that comfort for the spouse. Many of you listening, one of you may be taking control of your investments and taking control of your plan. You still need to communicate with the other spouse, but more importantly, if something would happen to you, does your spouse know where to go and what to do? And we see it all the time. Jim and we talked to people and callers and people who email us across the country is we see that less than 50% of the time when you asked the spouse who's not always involved, what do they do? And they don't know what to do. And that's scary to me, Jim, the mean, and don't let yourself fall into that trap of I got this, I got this.
Speaker 2:
8:09
Don't let your ego take control here. Present your safety net to your spouse is let them know enough and help explain it to them in a way. More importantly though, help point them to a trusted professional. If you think you can control it and do it all yourself online, that's fine. But what happens if they're not here and that's not their skillset, then who's going to take over for them and going to help out cause it's not easy. Think about this. How are they going to think about their income, their taxes, their healthcare, their social security, their medicare, their estate plan, their trust. There will, who's their new health care power of attorney. I just got confused and exhausted. Just listing all of those here.
Speaker 3:
8:50
You're wearing me out. And then, uh, you know, in addition to that, I can't remember the last time I've sat down a household who's come in to chat with us. We're the husband and wife are the same age I'm seeing not just two years spreads, but five year and 10 year spreads in age. So that opens up a whole different can of worms with direct direction. Exactly. Exactly.
Speaker 2:
9:10
Yeah. And so I mean with, with fat though, you've got to have the right communication. And one of the ways to help with this is, is have a detailed budget. And Jim, I actually, it's interesting is not a lot of people want to put together a detailed budget and I don't mean you have to get down to the penny and every day you're looking at it. I don't mean um, you know, in your checking account and you got to go detail out everything, but you need a framework. You need something that you understand how much is going to your home, how much is going to living expenses, how much is going to tuition, entertainment. You can at least have a high level viewpoint of that cause that's going to help your family be more uncomfortable. Um, the other part about this is when you think about this plan, and by the way your budget too, um, I've talked on the show many times when you've, you know, I have three children, you know, part of my budget now that keeps accelerating is the education expense part of it. With two in high school, one in grade school. My budget is, you know, shifting my priorities and my expenses to educational expenses. And Jim, everyone's got to think about what their priorities are and how they shift them in their budget.
Speaker 3:
10:19
And actually that's good news for me. That means you won't be able to play as much golf. So I might win your for a change. But I look, I totally agree with that. I mean you, you go from an accumulation stage with your assets and and you're taking care of your family and all those good things. And then you get to a point where you're into the distribution stage. And I will say this, normally, most people have multiple advisors during that accumulation stage, but when you get older, you want to simplify. I want to simplify your bank accounts. You want to simplify your investment accounts. That's when I think people need to step up and make a decision of who do I want to go through the next 20 or 25 years of my life with?
Speaker 2:
10:55
Yeah. No, you do. I mean, and health issues happen all the time. I mean, and there's a shared it already. I mean there's a 60% chance you're going to retire when you don't think you're going to and don't let that happen. Have the game plan in place. Make it simple for yourself. You don't want to be out of the game too early, that's for sure. Um, no one likes, um, games that, uh, where you're, where you're out of it already. I think about football, Jim. No one likes a Nebraska football game when we're losing and we're out of the game and you're sitting there and you're seeing memorial stadium Claire out in the third quarter and fourth quarter. Now hopefully that never happens again. Scott Frost here. But Hey, I'm a little Nebraska bias for me. I know where you went, Jim, so I'm not gonna bring that up on the video. I don't want to deter our listeners.
Speaker 3:
11:37
I wouldn't want anybody to know that I'm an Ohio state fan. But I was there, said, well, here's another to expand on that. If you look, if you're watching the vikings game against the eagles on, on Sunday when case Keenum through that pick six, that game totally changed. And the vikings picked it up in the air. Went of the Minnesota Vikings sideline.
Speaker 2:
11:55
Yeah. Well what happened there is though their season's over. So now they get to go retire unexpectedly. They want it to be at the super bowl. That's where they set their goals. So they are off to a great start. But now you know, what do they do? And for you, all of our listeners, what are you gonna do with your money if that unexpected happens? Could you actually, you know, think about how do you pay less in taxes in retirement? Can you also look at how do you avoid losing tens of thousands of dollars from social security benefits? Or can you really turn your investments until workhorse for you because you didn't have to retire early. So Jim, stuff that we actually have here is our five step retirement master plan that helps people think about this. So if you want one of these, hey, no problem. Just give us a call at (888) 419-8513 and what you're going to see from us is this simple analysis can actually help you save thousands and thousands of dollars in retirement. So that phone number again is (888) 419-8513 (888) 419-8530
Speaker 4:
12:51
teen. 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 of Fame 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 well from wisdom with Barron's hall of Fame Advisor, Ron Carson. You weren't planning on retiring for many years.
Speaker 2:
13:14
You want her to keep working and saving, but then life throws you a curve ball and now you have no choice. You're retiring whether you like it or not. Welcome back. I'm Paul last and you're listening to the wealth from wisdom radio network. I'm joined today by my cohost, Jim Caldwell. The odds are against you. 60% of Americans don't retire on their own terms and are you going to be one of them? So coming up in this segment, Jim and I are going to reveal more of the five steps that could better prepare you for your retirement no matter what life throws your direction. So Jen, we've been talking about you know, one having a comprehensive plan. So let's move into number two and that is you got to have a diversified strategy to actually generate income in retirement. As we were talking about curve balls, pictures usually aren't successful if they have one pitch, whether it's just a fast ball, they got to have multiple ways to win. And families also have multiple ways to win. And I think about football, you know another analogy is you don't see many offices that can just run the ball all the time. And when you probably also don't see very many, they can pass the ball all the time. And when you're going to have the right balance to be successful in life,
Speaker 3:
14:20
I totally get that. And you're analogy is outstanding because if, if you look at it, you've got to be good across the board. And I feel like when you look at people's portfolios and new trying to decide and help them into retirement, okay, where are we going to take these assets from people that have even built up big, big portfolios. Okay, what's the best way income wise, how much do they need so they don't overspend. But also from a tax planning standpoint, and I, and I want to make a point, and I'm not being derogatory here, but you know, tax planning and tax returns are apples and grapefruits. There are a lot of accountants out there that can do and grapefruits. Well, yeah, they're different. I mean they're both fruits, but I just hadn't, you heard that one before? Oh, you know, I'm getting creative here, but uh, but I think you have a counselor can do tax returns and that's looking in the past, but what are they doing to help those clients in the future? And I think the tax planning part of retirement income is just huge.
Speaker 2:
15:13
Yeah. And Jim, as I think about interest rates, uh, where they're going and potentially rising here. I mean, are we going to get three rates are two rates this year. That's kind of the current debate that we're seeing. But here's some things you need to do is you're thinking about income union, your retirement. So here are some items I want everybody to think about. One, have you actually taken a complete inventory of your financial world and you really need to get a grip on six things. So here they are. One your assets. What do you have? Just making sure you've got a list of that balance sheet to your debt. Three, your interest rate on those debts. Jim, I can't tell you how many times people have debts and they have no idea what their pain. Um, could they have refinanced or they have credit card or whatever those different things are.
Speaker 2:
15:58
It's a big deal. What's the next one? Income. So what is their income? Do they truly understand it? Many people. And whether because they watch too much HGTV or they read the paper, a lot of people think it's easy to go buy a new house cleaning up and flip it. Well it's maybe not that easy. And as people see is they don't even understand the income they have coming in or maybe they go rent it. So you need to understand that. And there's many rental owners out there that don't understand that. Um, and by the way, they better be prepared for that unintended disaster. The furnace goes out, they got an insurance claim or whatever those things are. And the last thing they need to take a complete inventory of is your expenses. You have to have a grip on your expenses. I know we've talked about budget, but this is going to help you develop that right income strategy in retirement. Because if you're struck with this unexpected in retirement, your income stream is going to be more important than ever, ever before.
Speaker 3:
17:00
Yes. And, and another thing you have to look at is how is your portfolio structured? So if you're all inequities or are you all in bonds or do you have a combination of the two? You know, fixed income folks is just what it is. It's fixed, it's not going to change. So you need to be diversified. You need, you have your portfolio evaluated. And we're very fortunate here. We have the technology at Carson wealth to be able to take someone's portfolio and plug it into our, our solutions and see where it does stack up with risk and reward with income. We can do a five year cash flow. We can even go out further than that. So the ability to do that I think is paramount when you're considering retirement.
Speaker 2:
17:42
Yeah, and I mean also I look at families, uh, so some of us are fortunate that, you know, our parents are supportive of relationships or grandparents or maybe supporting of kids, whether helping with tuition or you get to go on those fun vacations. And I heard a great, great quote the other day, um, and the, the comment was, is, you know, these grandparents had been helping out and the grandma said, hey, when I'm not around, this party is over. And I think it's true is because maybe the parents are getting used to that income. Um, and if that changes, you have to be very, very well prepared for. Because also here's another key tip here of, you know, having a diversified income stream in retirement. People are living longer, Jim. They are, it's going to happen. There are almost think about this. There are almost half a million people now that are a hundred years old.
Speaker 2:
18:34
Yeah. Triple digits a hundred. I mean it's, it's fascinating to think about. Uh, and if that happens, do you, have you really thought about that? Have you really planned out your life to look that far? And I bet you have it. And I have very few people that we meet with Jim and you may not have longevity in your family, so it may be the right thing for you to decide to not play it out that way. Um, but for those of you that do have longevity in your family, you better prepare for it. It's one of the most important things you can do. And so there's two levers you have to pull here. So you know when you're driving a car, right, you can either press the gas or you hit the brakes. That's really your two choices you have with your pedals there.
Speaker 2:
19:15
Well, with your income you have two choices. You can either make more, earn more, or you spend less. Those are your two pedals and you've got to figure out what's the right combination of those for you and your retirement. But that's okay. Those can change. Just like your speed changes, you're flying down the freeway, you're at 75 miles per hour going from Omaha to Lincoln. That's fine. That's comfortable, that's safe. That's the speed limit. You're doing that on Don Street. Well maybe on the expressway that happen sometime but down at 72nd and dodge your, your, your, your pending a major, major disaster at that standpoint. So, but you have to adjust your speed of your spending and also your earnings in your income. You take and the sequencing that goes along with that.
Speaker 3:
20:00
Sure. And we, we see this all the time. Going back to your comment earlier about the need for a budget. It doesn't have to be to the penny, but it's got at least have categories with numbers in it. So you can work off that because at some point in time we've had situations with families where their, their family index number is so high that we have to take on much more risk than they're willing to take on. So we have to kind of dial that back for them a little and say, hey, you can't be going out to dinner every night. Or maybe you got to cut some things here. Because when you go on our technology and our decision center in particular, we can map that out all the way to 90 95 or whatever, depending on the individual situation.
Speaker 2:
20:40
Yeah. So Jim, one of the things, I don't think people understand it as risk and they hear us use that word and all they here is blah, blah, blah, blah, blah. But the reality is, is it's because we're in a recency effect. I'm Scott [inaudible], chief information, you know, investment officer here on behalf of the Carson team, you know, shared with us that there were eight trading days in 2017 where the market went up 1% or down 1% historically that's been over 50. So that's why I've said on the show before, and I keep saying it right now, the market is boring because there's not a lot of risk, but that will come back and we think it's going to come back here in 2018 and are you prepared for that? And can your income stream handle that? And here's my best analogy on what risk is.
Speaker 2:
21:24
And so when there's very little risk in the market, like today, people will go try to get a better return, but it means they could fall faster than they want to or they make a mistake. So you remember growing up, um, and all of us have done that. So you had a chance, you've walked through a creek or been around there and there's a spot to cross the creek. And there's always that safe spot where you know you can just step across it or jump across easily and make it well when you're taking more risk, all of a sudden you're not taking that easy spot. You're, you're going a couple feet down the creek and your jump are correct however you want to say it here, but where you're from, where you're from maybe. So you go a little further down and the spreads a little bit wider and so you got to, you know, get a little running and start to get across here but you make it no problem.
Speaker 2:
22:13
So you feel good about that. All of a sudden you're like, I can go a little bit further and jump across, but why? Why are you taking that risk? Because all of sudden you're going to go to a spot where you go jump and the spread was too wide and what happens? You Fall, you're all wet, your muddy and you're frustrated. If you're a child, you ran home and you're probably getting a lot of trouble with your parents for doing that, but you didn't need to do that to cross it. What you did was you put yourself at risk. You could maybe have broken a leg or had a major issue that you could have avoided and so why people are taking more risk in the market right now. Why they're risking breaking their leg or getting wet or muddy is not understandable to me because they don't need to. There's a safe passage way for them to cross and they need to keep going over that same
Speaker 3:
23:01
path. The concern there with with people we're talking with is you know they listened to the t, the the radio and they watch TV and they listened to all the noise in general out there and they feel like they kind of got to keep up with everybody but not only do you have market risk Paul, but you have interest rate risk. I think people are overlooking that right now. The 10 year Treasury is up over 2.6% right now and that that to me is a warning sign and and Scott Qbr, chief investment officer touched on it last night that the federal have four meetings this year. So there are four potentially opportunities for them to raise rates where that's going to lie. Uh, we'll just see where it goes. Yeah. So if you want
Speaker 2:
23:39
it with someone, if you want to bet someone and say, Hey, do you think the Fed will raise their rates four times or five times this year? And if they can guess five, uh, uh, easy money for you all to take from your friends there. Uh, but Jimmy, I mean, think you bring up a good point is you look at all of this, there's a lot of challenges out there in the market, but don't take them if you don't need to. Because even though 2017 was a phenomenal year in the market a year, we've never seen a year that there was 12 positive months in the market. The likelihood of that ever happening again is slim to none. And Slim's probably left the building on this one. Yeah. It's just so it's just successful. Retirement is really, they're not just build on your assets. They're really built more for your income.
Speaker 2:
24:26
Yeah. I'm going to say that again. Successful assets, I'm retiring as, excuse me, are built not on just acids, is on your ability to generate income off of that. And the good news is there's so many options available for you today, but you got to know which ones are the right ones and which ones that you're not going to break your leg by falling in the creek. So let us prove to you how you can actually turn all of your investments and your assets into the right income workhorse for you. We'll help you with this. We'll give you a complimentary review of that. There's no cost so you have nothing to lose. So if you've stayed over $100,000 be one of our first callers today at (888) 419-8513 you can actually generate more income in retirement while reducing your risk. So the answer is yes, and we're going to show you how at (888) 419-8513 that's (888) 419-8513 I'll Paul West with my coach Jim Caldwell on the wealth from wisdom radio network.
Speaker 2:
25:22
How could you make your money go further in retirement? Learn how next unwell from wisdom with their Intel and fame advisor run Carson. He's a published author and he's been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Welcome back to wealth and wisdom. I'm Paul last. You know what the statistics say? I can't say that word very well, but they say it's going to be likely to happen to you. So what do you think most people, when do they expect to retire? Age 65 but what is the statistics? Actually show us people retire at 62. Why do they retire? Early job loss, health issue. They're forced to take an early retirement. Uh, it's something that happens sooner than they wanted. And because of this, are you prepared if this happens to you?
Speaker 2:
26:18
That's a three year difference. So right now in your brain, if you took three years of income and wiped him off the table, would you be able to survive in retirement? Or I think about this, are you going to be left scrambling to pick up the pieces and figure out what to do next? So coming on to this next segment, my cohost Jim Caldwell myself, we're going to keep revealing more of the five steps that can help better prepare you for retirement no matter what heads your direction. So if it's so far we've covered, it's very important. Number one, to have a very comprehensive financial plan. Number two, you gotta have the right income strategy for yourself in retirement. And three, in looking at having a tax efficient investment strategy. This is so important. Hey Jim, I've never heard anyone yet to this day say I love paying taxes.
Speaker 2:
27:06
Now I hear CPA say, and actually we do as financial planners, you were okay with you paying taxes because that means you made money and didn't lose it there, but no one likes writing those checks. So we have to figure out how do we minimize the tax impact of investment strategies for so many people. And this is often often overlooked. We get calls all day long and in financial planning people always ask us about returns. What are your returns, what are your returns, what are your returns? But they're not looking at are they short term, are they long term or what is your after fee and after tax return. That's what they should really be looking at and thinking about it because you may actually be paying we more in taxes on your investments than the smart and savvy do when they work with professionals and if you think that other professionals may be, your CPA can take care of this for you, you're probably wrong here and no offense to my CPA peers, there's plenty of good ones out there but a lot of times a lot of you don't want to pay your CPA any more money.
Speaker 2:
28:10
You have to, so all you're asking them to do is be your recorder and not your CPA planner and that's a mistake because then you're not getting a forward looking view. You're only looking out the rear view mirror. I know, again, if you're driving down the road, you want to be stuck. Just looking under the rear view mirror. I want to see what obstacles and or opportunities are out there on the horizon for me.
Speaker 3:
28:37
And the issues here with taxes are two fold in my opinion. Number one, you have before retirement issues and concerns and you have during retirement issues and concerns. So you've got to take care of your house while you're still working. You need that planning. You need to understand what vehicles are out there. Do I do a Roth IRA versus a traditional IRA? How much do I contribute to my 401k? What percentage do I do it at the maximum? Do I want to, uh, contribute up to just where there's a match? And we address this with people to come in here all the time. Is there an opportunity to do some creative planning like a backdoor Roth Ira for people that might be maxing out in her 401k but because of income limits, uh, have the opportunity to do some other things. So before retirement and then during retirement, very variable.
Speaker 2:
29:30
Yeah. Well, I mean, you do tax reform that happened is presenting unique opportunities, uh, for families. But here's what we're seeing. What's happening is you heard the articles, you saw it on the news. Huh? That's interesting. And I bet how many of you listening today haven't done a darn thing with it. How many of you have not called your CPA or not called your financial planner to ask them what you should be doing for yourself? Has your actual financial planner or CPA reached out to you? Have they sent you a one pager explaining it? If they haven't and you want one, we actually have a really quick, easy one. If you'd like to get that from us, there'll be no problem. You can call us at eight, eight eight four one nine 85, 13 and we'll email that off to you. Simple, understandable. And it heads proactive is looking at the future and how it impacts you.
Speaker 2:
30:18
So Jim, I was thinking back in preparing for today's show. Um, my first Aha moment about taxes was um, hey, uh, your first job. So, uh, I remember my first job, it was a busboy. At a restaurant, you know, it's still here in Omaha many years ago. Uh, I remember getting that first paycheck and I'm like, oh, this is going to be great. I worked x amount of hours that, you know, a small dollar wage per hour and I cannot wait to get it. Boy, when I saw that net number and the paycheck and I'm naive at that point, what, 15 years old. Oh, oh. It's this thing called taxes that uh, takes a lot of energy and unfortunately dollars and cents out of my paycheck. Well, so what was your first job Jim?
Speaker 3:
31:03
My first job, we uh, cut grass delivered newspapers and shoveled snow. And the good news there, Paul, we were paid cash. So I didn't have that concern right out of the bat. But I can relate to that as I got into the workforce and actually worked in a warehouse for a supermarket in Columbus, Ohio, and you'd be working overtime every time they came around. Can you stay til five in the morning? Can you do this? Can you work the weekends? And you think, Oh, I work 75 80 hours that week. And you think, and I'm gonna get a big chunk of money. No, you gave it away to various places.
Speaker 2:
31:34
Yeah, you do it. I mean, I think a lot of us is, you're thinking about that. It's a challenge that's presented. Um, and I'm going to bring up a comment. So this was a hot topic the other evening. Uh, we are having our annual forecast event talking about the market. And of course bitcoin came up. Jim, then, you know, we've spent time on the show, Ron, me, you and others talking about bitcoin and it being a cryptocurrency. So we're not gonna spend time on today show, but part of being able to exchange payments is this, do you not think that the IRS and states are going to want a cut a taxes if we're doing a payment of services and exchange of goods for services or an exchange of currencies with each other, it's some point cryptocurrencies, they're going to figure out a way to get these taxed. So if you're doing it as tax avoidance, I know that's a big part of why it's being used internationally all over the place. And for hiding and black markets, uh, that taxes are going to have an impact. And our belief is is we want to help you reduce them as much as possible, but it also needs to be done in a way that makes sense for you both in the short run and absolutely in, in the long run that goes along with that.
Speaker 3:
32:48
And Paul, we're very fortunate as you know here at Carson wealth. We have in house right here down the hall. Um, CPAS, we have tax professionals, we have wealth planners, we have attorneys that can address all these issues in a good, good feel. Good story is a with a, with a lady who came in late last year and what it moved off her assets over and it was in qualified and non qualified money and the nonqualified the solution was we were able to calculate out what her tax liability could be for 2017 if she would liquidate some of those cause she had a very, very, very low cost basis. And then we were able to point out what 2018 we could do for her and then projected out the last chunk in 2019 so not only did we solve for her needs and be able to diversify our portfolio, but also very much limited her tax liability by doing it that way.
Speaker 2:
33:41
Yeah. Well I meant, let's give some people some ideas here. Some examples that we've just seen recently, so I can't believe this, you know, but I've had two people recently that have an IRA and they're below age 60 and they may not need to access it for income, but they're invested very conservatively. So I don't understand why it's sitting in a CD at a bank or why it's sitting in cash when they're not going to withdraw that money for over 10 more years. They need to actually be taking more risk. And here's another technique or idea. Why not? If you aren't going to need that money or you may want to be more charitably inclined, why not super charge it. Yeah. Supercharge it so that way you can do gifting from it and avoid taxes together on the assets you have inside of there. So think about that.
Speaker 2:
34:35
It's a little more complicated than how I just described it, but it's not that complicated. Your financial planner should be able to communicate that in a language that's understandable for you. But supercharger IRA, that's another way you can have a very tax efficient of measurement strategy, but that matches your overall income stream and exactly what you want to do. So thinking about that, what if you actually had 500,000 in your Ira right now and you don't know what to do with it, but you're still gonna have to pay taxes on this money. Are there techniques out there, I just gave you one of them that can maybe help you gift it or figure out the best ways to withdraw? Is it a Roth conversion? Is it a supercharged Roth? It could be any of those different things. And this can help you save thousands and thousands of dollars in your taxes on retirement or in your estate plan. But it has to start with a conversation, not just to Google search. It has to be a conversation. So be one of the first callers to schedule your initial complimentary analysis. Now at (888) 419-8513 that's (888) 419-8513 you got a choice. Pay The or keep this money for yourself and your family. Give us a call. (888) 419-8513 I'm Paul West with Jim Caldwell and you're listening to well from wisdom,
Speaker 4:
35:48
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. Is it possible you could pay fewer taxes in retirement and keep this money for yourself? You could learn right here and right now, unwelcome wisdom with Barron's hall of Fame Advisor, Ron Carson. You've been downsized out of it, out
Speaker 2:
36:13
of your job, or you've been offered an early retirement, or even worse yet, your health takes a sudden turn in the wrong direction, or maybe another member of your families health suddenly fails and you need to take care of them. So whatever the reason, the statistics shy say and show you that you're going to be forced to retire sooner and sooner than you're expected. So yeah, welcome back. I'm Paul [inaudible], joined by my cohost, Jim Caldwell, and you're listening to wealth from wisdom. You know, and we've talked about this already, the research from USA Today shows that 60% of Americans don't retire on their own terms. However, there's also another survey they did, and I'm gonna ask you this question. It's called Darryl. Question for you here, Jim, is how many people actually said the timing of their retirement was very unexpected. What do you think? What's your guests?
Speaker 2:
37:05
You want a percentage or you want a percentage? Yes, 20% nope. Low. 31% of people said there was just never get these right. Yeah, we'll keep trying here. They're good. [inaudible] I guess that would help advance it here for you. 31% of people said it was very unexpected and 29% said somewhat unexpected. So that gets us to the 60% and so what we have to keep doing for you on today's show is I hope you're enjoying this, is we're transparent with you. We're going to tell you what's really going on and we're going to tell you what's happening the market and we're going to tell you what's happening in life. But probably more importantly what you need to hear, not what you want to hear because those are so important as you plan out your life. So the fourth item that can help you better prepare for your tire man is have the right asset allocation mix to get there.
Speaker 2:
37:55
And this is, I know it sounds so simple and Theorem, but what I talked about earlier with related to the Vicks or people taking on too much risk or people jumping across that creek on a spot that's way too dangerous and they don't need to to get across, is don't let scope creep come into your asset allocation. And now that you've worked so hard, I was actually recently quoted in a CNBC article saying to everyone is, if you've gotten to this point and you've enjoyed this nice run up since 2009 it's okay to take a few chips off the table if need be or reduce your diversification or reduce it, but reduce your asset from riskier acids into less risky assets. This is going to help you prepare for that retirement. Cause I'm gonna tell you right now, if somebody's got $1 million out there and you're invested in the market and you went up to 1.1 million, is that going to change your mind on retirement? Maybe a little bit boss. Sudden if we have a downturn in the market, something stupid happens out there from nuclear to any other thing and you are from a million to 800,000 I can most likely assure you your retirement plans dramatically changed. You know, it also changed the amount of Melatonin you're taking at night to sleep better because you don't feel comfy.
Speaker 3:
39:16
Drivel. Paul, there's a solution to that though. And what is it? It's very simple. I mean, here's the problem out there and, and, and we've talked to a number of people lately. Our activity around the offices is, is really, really picking up and that's great for everybody involved and it's, it's worth hearing people, they're just blindly trusting their financial advisor. They're putting risk in the lap of her advisor. They're there, they're feeling okay. I feel like I'm a conservative investor and they come in and maybe they meet with us and we put them through our technology and it's like all of a sudden they're in a growth mode and the looks on their face or like deer in a headlights and there needs to be an adjustment. I mean, you go back to the tech bubble, people took a bath, you go back to black Friday, people took a bath, he took back to 2008 I mean, it's almost like people feel like customer at the little big horn. I mean, he got, he got slaughtered and, but you can avoid that situation by coming in and having a stress test your portfolio.
Speaker 2:
40:12
Yeah. And I think for a lot of people, and let's do a recency of fact over the last 20 years, and I know it sounds weird to say recently over the last 20 years by want to jar everyone's memory. Uh, probably a company here, many people recognize Enron. I'm sure people wished they would have diversified loosened. I'm sure they wish the diversified. I don't know who the next one's going to be. We certainly don't hope it's anyone. But the reality of life is those things are going to happen. So especially for many of you listeners today, if you've got a lot of your retirement tied up in individual stocks, uh, from your employer or in their profit sharing plan, I know you love where you work and you're passionate about it. And it's important. And by the way, we have a plan for all of our stakeholders here, the Carson Group, um, so that we want them to have some ownership interest in the company, but we don't want them to have too much because then we don't want them taking any more risk. We've got to practice what we preach in many people, especially financial advisors, don't always do that for you. So make sure that you have the right plan in place to take that risk off the table because you don't want to be facing a catastrophic event and be stuck working when you don't want to have to be working.
Speaker 3:
41:25
And there's a solution for that. And we've, we've been sharing this with many people that have come in our office, it's called an inservice distribution. Some four o one k plan providers will allow that, some will not. You can take maybe a onetime distribution or maybe you could take over a period of time. It's, it, it's a way to transfer assets and non taxable event and they're usually a traditional ira where we can now minimize your downside risk and protect your assets. So when you do want to retire, you can retire on your terms and not possibly be forced to retire.
Speaker 2:
42:01
Yeah. Jim, I was talking to someone the other day and this is fascinating story for me. So people have probably heard of a CFP, um, you know, a financial planning professionals. So it's, you know, one of the largest designations we have. Um, so I was actually talking to someone who works at a financial institution. Finance Institution means a bank Credit Union, and I'm certainly not gonna name their name here on the radio, but this person actually studied, got and receive their CFP, which takes a lot of time and energy. You get a pass courses, you need experience. Um, but they're not in a financial planning role today, but they're at a bank. And so they called us wanting help. And this is really interesting to me because as they're building out their retirement plan, they said, well, even everybody at our bank, all they're doing is putting people into variable annuities and other insurance products that I'm not convinced those are the best things for me, but they're chasing me just for that.
Speaker 2:
42:52
And listening to your show, seen all the free content you put on Carson wealth.com is, I realize there's a better way out there. And my financial planning professional told me in my heart that's what I needed to do. And I know I'm working at a job. She didn't say career, she said a job. But think about that. They work in a place that offers it, but they know it's not even offered it in their best interest. That's why someone you work with it needs to be a fiduciary so they can help give you guidance. So in today's show, we've been talking about a lot of different things, Jim and I appreciate it. Um, we've kept your football analogies at a minimum today, so well done there. We thank you for that. I'm not giving you a timeout chance to think of any more. Uh, there's really five steps you can prepare now to think about.
Speaker 2:
43:37
One is you got to put together this retirement income plan too. I haven't said this yet, but I want you to all the evaluate your needs versus your wants, your needs versus your wants. And think about that. Three, explore other income options if they're there for, do not make knee jerk decisions. Don't let behavior, emotion rule the day. And Five, figure out the difference between temporary and permanent choices. All of these can influence everything that you want to do, including do you want to pay less taxes? And we know many of you do, should you take more money out of your IRA or should you not? Or how do you really get the most out of social security? And you got a lot of these questions. So I think Jim would, for a lot of people, they don't really understand the difference of top professionals. You know, firms like us, we're certified financial planners, we're, you know, we have over I house so many years of experience.
Speaker 2:
44:36
We've actually been fortunate. We have accolades from Barron's and being in their hall of fame. Forbes is list of top advisors, but all of those things don't matter. What really matters is your life and making sure you're getting the best advice. So one phone call could actually change the course of your retirement for the better at (888) 419-8513 give us a chance, let us help you. And at minimum confirm you're on the right pathway that's going to make you feel better and sleep well at night. That's (888) 419-8513 eight (884) 019-8513 Jim, I've really enjoyed today's show. Hope our listeners got a lot of great advice and we look forward to seeing it next week on the wealth from wisdom radio, network
Speaker 4:
45:16
risk, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of Fame Advisor Ron Carson.
Speaker 1:
45:29
Okay. And here's the legal Mumbo jumbo. The opinions voiced and from wisdom with Rod Carson over for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly. Investing involves risk, including possible loss of principle. No strategy assure success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CW m L L C an SEC registered investment advisor.