Wealth from Wisdom

New Year’s Resolutions

January 06, 2018
Wealth from Wisdom
New Year’s Resolutions
Chapters
Wealth from Wisdom
New Year’s Resolutions
Jan 06, 2018
Carson Wealth
Show Notes Transcript

As the New Year came and went, you are one step closer to retirement. Paul & Jim Caldwell will cover the 5 strategies that will help you take control of your money, and can help you retire sooner than you thought possible.

Speaker 1:
0:00
Okay, and here's the legal Mumbo jumbo, the opinions voiced and well from wisdom with Ron Carson or for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged and may not be invested into directly investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an sec registered investment advisor,
Speaker 2:
0:30
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 for retirement. Today is a whole new ball game. It's loaded with challenges, obstacles, and trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson. I'm going to stop smoking. I'm going to lose weight. I'm going to exercise every single day and I'm going to get a financial game plan. Well, guess what? You're making a lofty list of New Year's resolutions and little did you know you're even setting yourselves up to fail. Hang on, Paul West and you're listening to the wealth and wisdom radio show.
Speaker 2:
1:27
Today I'm joined by my cohost, Jim Caldwell, and thank you very much for joining us today. Everybody's going through their new year's resolutions right now, especially here in Nebraska. I think there's new year's resolutions to see how many Scott Frost's tee shirts you can possibly buy in to put in your wardrobe. So you know, I make it a new year's resolutions. Great. But really if you make too many of them or if they aren't specific, they're not going to stick. They're not going to work. And you're going to be exactly where you are right now, this time next year. And Hey Jim, I was thinking about this. So what's the touristic, how many of new year's resolution succeed every single year? How many would you think? Two out of ten two out of 10 and unfortunately it's even worse than that. Only 8% succeed. That means 92% don't make it through the full year.
Speaker 2:
2:17
Your number was right. 80% of them fail by February 1st and many gyms around the metro area and across the country can certainly attest to that, but the reality is is people make what I call nonspecific goals. What are they doing? We like to call him smack certified, s m a. C is it specific, is it measurable, is it achievable and has a compatible, and are those goals you're making important? Maybe you haven't realized yet. 2017 is poof, it's gone. It's out in the rear view mirror and that means you are one year closer to retirement going on that big trip or whatever it is you're looking for. And if you're in your or sixties this should be a sobering wakeup call. One more year closer, one more month, closer to when you got to make those big life decisions. And is this going to be the year that you're not part of that 80% that fails and doesn't complete the resolution?
Speaker 2:
3:16
Are you actually going to take control of your money and your life and your investments? Or are you just going to do nothing and continue to wonder if or when you'll actually be able to retire? So Jim, today on our show, we're going to talk about this and we're going to spend some time revealing five strategies that help you take control of your money and your investments in the new year. And that could help you retire far sooner than you ever thought possible. And I think about New Year's resolutions, Jim and I like other people, go sit and do them. Um, and I want people to think about them in their port and order to spend the time and today shows talking about money. But what's the most popular one out there? Always. What do you think? So security. So security for money? No, I mean the most popular new year's resolution.
Speaker 2:
4:02
Lose weight, lose weight. Yeah, absolutely. Take off the 10 pounds, all the extra cookies and drinks and everything. We did over the holidays. Um, but unfortunately people don't succeed with those all the time and I think they have to be more specific about them. And we're going to spend some time about financial resolutions people have for the year. But also I remind you it's not always about financial resolution as well. Sometimes one of the best things you can do is make a resolution to sleep more. Sleep. Deprivations is one of the biggest mistakes people make. But also I'm going to tell you planning a trip, Jim, and this is one of my favorite things I learned at several years ago was if I don't preplan out a trip I want to make with my family, guess what happens? The dreaded B word of busy and I don't get it done cause I let life happens and it just skates away and it becomes one of those goals that never happened.
Speaker 2:
4:56
So I actually have it inked, I have it on the calendar, I have that blocked, actually have one of them booked and we're ready to go to make things easy for family. But also that I get across that new year's resolution off the goal, um, to make that happen. So let's talk about some of these five techniques that you can put into place here in 2018 number one, let's have a strategy to actually claim your social security benefits. Stop talking about it or stop saying it'll eventually get their login online. Let's get your statement and everyone figure out when's the best time for you. Because the mistake people make is they wait till it's too late. They get busy. So what do they do? Get in their car, hit the gas pedal, hurry up to the social security office file, get money in your pocket and you're like, oh gosh, I remember hearing about, I should do an analysis. But Jim, they never do. Well, people are, are procrastinators. I mean, we all put things off if it's not important to us at that time, or maybe there's something else that we're focused on. But if you look at, so security
Speaker 3:
5:58
moving forward in 2018 there's about four or five changes that are happening in that area. Couple of things are a full retirement age is going to change. So instead of it being 66 like it's been for a while, it's now going to be 67 for people that were born after 54, there's going to be a 2% cost of living adjustment next year. Uh, beneficiaries have opportunities to receive more money there. So these are reasons that people need to put this on the front burner and if they need assistance, they should look for a firm that would offer them a social security analysis. And not always just bank on the fact that the social security administrative office, we'll have all the answers.
Speaker 2:
6:37
Yeah, they're not Jim. And we've harped on this in the show and we keep bringing it out because guess what happens? People listen to us, they hear it, but then they go out and mow the lawn or, well, I guess we're not in that time of year. They shovel snow or do whatever, go to a crate and game, whatever it may be, but just put it, block them your time. And this is why I talk about when I said earlier, a smack certified goal for the year specific, measurable, achievable, compatible. I am going to get a social security analysis game plan by February 1st that is Mac certified because it's specific measurable by a date you can achieve it and it's compatible with your overall financial goals. And you know, I think about what's going on in the market, Jim, and it's been fun to watch all the new highs happen and what's going on.
Speaker 2:
7:26
But I thought I'd share some fascinating statistics about the market because I keep using the other dreaded B word of boring is the market's a little boring right now because there's not a lot of volatility and don't, don't get me wrong, I like when the market goes up, but I call it boring is because there's not a lot of volatility. So I thought this is fascinating. So you know, this happens many times over the history of the market. If I go all the way back to 1928 but right now, when is the last time that we've actually had a 3% correction in the market? How many days ago do you think that was Jim?
Speaker 3:
8:05
I want to say somewhere around August, 2015 so how many days? About a year and a half.
Speaker 2:
8:12
All right. Not Quite. That's a little far out. Little less than that. 3% so we had a 3% downturn, so just think of a couple of days where we went and had 3% movement down 261 days. So not quite a full year, but we had it happen, um, second quarter or last year. So as we look at this 261 days, so let's go next. When was the last time we had actual a 5% downward movement in the market? How many days ago do you think that was?
Speaker 3:
8:41
I want to say that was early 2016 January or February. Then that area.
Speaker 2:
8:47
Very close. Yeah. So 353 days ago. So almost a full year ago is when we had a 5% movement. So what 10% have we had a recent, do you think? We've had a recent in the last 10 years, 10% market draw down. You got me stumped on that one. We have Jim, really not that long ago. 447 days since we've had this last one happen. 447 days. That's a little over a year and a quarter. And guess what that is so far from people's memories, it's like your new years resolution. It's way past what you thought it was going to be. But those things have happened. Now here's the scary one. How many days has it been since we've had a 20% downside correction?
Speaker 3:
9:39
I want to say 2014 about the middle of
Speaker 2:
9:42
farther than that Jim. We got to go a little farther than that. I'm just going to go in days cause I liked days here. So 2,192 days. 2,192 days since we've had a 20% correction. And I'm going and looking back to 1928 and we've had over 20 of these over the history of the market. So if you think about the average duration in these happening, I'm not saying we're do, but these things happen and why call the market boring right now and why you better be careful as part of your new year's resolution is these things can happen and they do. But people forget about. And the recency effect is a big concern in looking at people's portfolio cause they're there. People are more shortsighted and make short sighted based behavioral decisions.
Speaker 3:
10:31
We need to look out further than what they're doing. Uh, people are chasing returns. They look at the noise on TV or on the radio or whatever out there that that isn't positive. And I hear people making more money so they get out over their skis a little bit and they take on too much risk.
Speaker 2:
10:47
Yeah. All mean, especially every time I turn on the TV now it's stories about crypto currency and you know, up 10000% and these crazy numbers that aren't realistic and it's creating a false sense of hope. Uh, uh, also, uh, the lottery tends to be a big conversation topic and sure winning and mega millions and the power of all it was fun. But I think we all know the real estate, uh, chances of anything like that happening. And that's why when you're setting your financial goals, you have to be specific about them. You can't be wishy washy and hope, pray and think that it's all gonna come together because there are people, and we're going to share some stories on today's show, Jim, of people that have made that strategy of hope, pray and just, it's all gonna work out. And unfortunately they're sitting in a situation that they want to share with you of they're in trouble and they're working way longer their want or more importantly, they're lying in bed, not sleeping as well at night because they have concerns.
Speaker 2:
11:49
And one of the biggest reasons they have these concerns is because one, they made a mistake on social security benefits. When did they claim it and did they claim it actually correctly? And really your decisions you make are going to determine how much you receive in benefits. And this could also trigger an avalanche of taxes. It could double your medical care premiums and cause you to forfeit additional benefits that are rightfully yours. Ultimately, it could end up costing you thousands of dollars. And really that kind of money can go a long way for your gym and your retirement. But the only way you can make sure you figure this out is to do one of those social security analysis. And you can do this at no charge. It won't cost you a dime. And if you want to customize analysis, go ahead and give us a call. We'll help you out with that at (888) 419-8513 that's (888) 419-8513 don't leave thousands of dollars on the table like others before you be smart about this.
Speaker 2:
12:42
It's not going to cost you a dime and it's going to help you out. Give us a call. (888) 419-8513 trust, transparency, accountability. These are the values that drive Ron Carson and Carson wealth. You're listening to wealth from wisdom. Would their Intel, the fame advisor, Ron Carson, he's a published author and has been featured in Forbes Investment News, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. How would you feel if you knew exactly when you could retire? Yeah, you got that crystal ball and if you knew exactly how much you could spend every single month in retirement and sleep like a Rapunzel or how would that impact your life and the key decisions you make every single day? Welcome back. I'm Paul West and you're listening to the wealth from wisdom radio show and I'm joined by my cohost, Jim Caldwell. Guess what? 2017 you already know this by the way, is officially in your rear view mirror and you are one step closer to retirement, your financial goals and all of those important things that you've looked out in the horizon that they're just a little bit closer and a little bit clear at this point in time.
Speaker 2:
13:52
And if you're in your 50s or 60s there should be a real sobering call to you. So coming out in this segment, Jim and I are going to spend some time with you revealing more of the five strategies that are going to help you take control of your money and investments in the new year, but also that can help you retire much sooner than you ever thought possible. Well, Jim, we've been talking about New Year's resolutions and one of the resolutions I think should be important it is, is to think about me and me as I mean myself and all of you out there yourselves is it's okay to be selfish, to think about yourself for a while to make sure you're making the right decisions for you and your life. So one of the ways to do that is number two for us today is have a strategy to generate enough income in retirement for yourself.
Speaker 2:
14:40
Some of you may want to keep working full time, part time, whatever that may be, but there are other strategies and techniques that can help you and it can also help you from a tax perspective. I don't want to do, I mean, what people forget is we have longer longevity, longevity than ever before. I can say that, right? Longer longevity. That's all right. That flows highs together. Tongue twister potentially for me. Uh, but there's almost half a million centenarians. Yeah, a hundred people years old, almost a half a million. And that number is only gonna continue growing. So we have to plan out our life and what that looks like from an income perspective.
Speaker 3:
15:18
And a lot of that success or failure is going to be based on how well you're able to estimate what your taxes are going to be or your tax consequences as you do a live off of your investment accounts. Cause you're used to getting a paycheck from work or wherever you, you were employed. Now you're gonna get a paycheck from yourself. So some of the thoughts that we have would be number one, you're going to have to take RMDs. So from your Iras, four zero one ks, four zero, three bs, whatever you have, you're going to need to take the required distributions. The second area, then you would take from your taxable accounts. These could be brokerage accounts that you have, that you might have individual stocks or whatever in there. Uh, then you would look at your tax deferred. That would be a good strategy to go third and then fourth year at last. Your Roth Iras, your tax exempts. The reason we like to have, uh, a process there is because if you're not careful with your withdrawals and you take out too much money, a bump you in a higher tax bracket and it could affect your social security benefit.
Speaker 2:
16:15
Yeah, well you're bringing up the tax word jam and if there hasn't been a hotter topic in the last couple of weeks, it's been about the new tax act and what's going on. And you know, it affects everyone a little bit of a different way. It's certainly a major benefit for people, but it can, it can be negative for some people out there. And so, you know, there's been a lot of change. The tax bracket. Um, you know, one of the, you know, positives or negatives for a few people is the standard deduction doubling. You know, that's certainly a big change. Uh, from an investment perspective, I like a lot of the changes that are happening for capital gains, but there's a lot of going on and you got to wonder what's going to happen for your personal situation. And actually Jim, we're hosting a tax event here where we're sharing some ideas.
Speaker 2:
17:01
We're actually gonna have some local CPAS here to present. So if somebody is interested today and want to come attend, just give us a call, eight eight, eight four one nine 85, 13 and you can actually RSVP for the event attend. You must have an RSVP into get there. But you can listen to our CPAS, estate planning and other professionals tell you more about the new tax act and specifically you can ask them questions about how it applies to you so you can feel more comfortable. Cause again, don't wait until February, 2019 to make changes. I think the tax laws in effect. So we got to make changes now. If we want them to really take value for the entire year, including deductions. I mean, Jim, then I look at, you know, the medical expense deductions, the salt, right? Every knows what salt is. We love it. It tastes good.
Speaker 2:
17:51
Sodium, nope. State and local taxes and our ability to the that and before of it being unlimited and now having a cap of $10,000. Well that impact you potentially. So come listen or talk to her, your professional, talk to your CPA, talk to your advisor and find out exactly what's going on. This is the largest change in a long time. And what's happening now is it was headline news, it was breaking news. It was all over CNN and all of our local stations. It was every leading article digitally in the Omaha World Herald and other locations. Now it's kind of starting to fade down. It's becoming the secondary stories, the tertiary stories, not quite a big of a deal, but guess what? It's still matters to you because no one likes paying more taxes and they need to and you need to spend time worrying about that from an income perspective.
Speaker 3:
18:46
And when you look at getting tax advice, I mean there are a lot of qualified CPAs out there that are great at doing tax returns, but when it goes into the area of tax planning, that's somewhat of a specialty and you need to make sure that you can engage with someone that can plot that course for you as you move down the road in your retirement years.
Speaker 2:
19:04
Yeah, I think about if I'm a business owner and I'm listening to a show, business owners have the most to win in the most to lose with the new tax reform bill, and each situation's a little bit different from, you know, the corporate rate change, changing the 21% to some of the changes that went through to pass through corporations. And we're not going to get into the details on today's show gym, but when I can tell you is, is the business owners I'm talking to are coming in and talking with their advisor and their CPA to figure out their strategy now because they don't want to wait, or at minimum they're saying, I got to get this done by February 1st or March 1st or whatever the date is. They're making it specific. It's measurable. It's not just, hey, I'm going to go learn more. It's, I'm going to make a decision, I'm going to keep it the way it is, or I'm going to make an election change to become a c Corp or an s corp or whatever's in their best interest. And there's no generic, hey, if you're above x million of revenue or why thousand of income, it makes sense. It's really dependent on each business owner situation and ultimately how much income they create and how much income goes forward to them and their retirement. So Jim, it's also, we're in 2018 the market is volatile, not at all. Uh, so what's your I do if I'm in a 401k right now, should I look at making an adjustments, um, to help me out?
Speaker 3:
20:32
I would highly recommend that. And there's a way to do that. And we, we do that here all the time. There's a couple of, of approaches. Number one, um, if you have a financial advisor now share your four oh one state with, with that person, if they're willing to spend the, to go through and evaluate it or put it through a stress test, which we have the ability to do here with our technology to find out really what's your upside is and what your downside is most importantly. But there's also an area called an inservice distribution where as long as it's allowed in your 401k plan, you have the opportunity to take some of that money out of there and roll it into a traditional IRA. Or if it's a raw 401k into a Roth Ira and let someone on the outside manage that possibly give you better options to choose from. Uh, have the ability to protect your downside and play a little bit of defense. In some cases it might even lower your fees. So those are some of the strategies that we've been using here with, with people who've been coming into our office.
Speaker 2:
21:33
Yeah. Um, and even if you have a longterm and you have a great ass allocation here, 401k and you've got 10 years plus, I think you're fine. But if you have less than that, I'd be willing to look at it that you've probably chased performance. So you've gone in and looked and seeing the SNP and maybe some other sectors have outperformed the others and you've moved more money there and you have now taken on more risk. So if you've taken on more risk, that means you can return more. It also means you can lose more. Right? But we forget that. So let's talk about this for a second. Imagine right now, say you had $1 million in year four o one k. And so the market goes up 10% this year. So you're at 1.1 million. But what if we had one of those occurrences happen here in 2018 there's a crazy man over in North Korea.
Speaker 2:
22:27
We've all heard about us, does something stupid? Could we have a market event? I don't know if we will, but those are possibilities that exist. So we've actually gone back and looked at the history of the market. So going back over the last century here, and if the market dropped by 20% how long does it take in the number of days to actually catch back up, to get back to where you were before, how many days do you think it takes from that spot where it dropped, where it was at its high, where it went down 20% to get right back up to where it's high was before,
Speaker 3:
23:05
I would say a minimum of two years. Yeah. So I get 700 days plus
Speaker 2:
23:10
I'm gonna tell you to double that, you're going to double that gem almost four years it takes to recoup when those happen. So 1,424 days, including, you know, recently when we had the 2007 crisis. So when the 2007 we had a high on October 9th of 2007 we hit a low on March 9th of 2009 we did not hit the break even point until March 5th of 2013 that was almost six years. I mean, think about that was 1,974 days it took to recoup your money back to where you before. So right now, for those of you listening, you have $1 million in your one k plan and if it now took you six years to get back there again cause we had a market event, what would that do to your retirement? Is that what you'd want to happen? And think about that. And so you know, as we think about all of these types of things, you want someone helping you retirement cause your retirement isn't built on your assets.
Speaker 2:
24:19
It's your ability to generate income in retirement, to live out life the way you want to and the traditional go to options are changing for. The good news is, is there's really some good options out there available and options. You probably don't even know exist. And so give us a chance to prove that to you with a savings and investments plan and really how do you turn your income into the right work horse for you in retirement? If you want this, there's no cost, there's nothing to lose. So if you've saved 100,000 or more, the one of the first callers to get a customized income analysis at (888) 419-8513 could you generate more income in retirement while also reducing the risk? Let Jim, myself, the team we could show you and you can avoid pitfalls that other investors have made. But you got to call (888) 419-8513 that's (888) 419-8513 I'll Paul Weston with my cohost Jim Caldwell on the wealth from wisdom radio network.
Speaker 4:
25:21
He seemed good times and bad times and he's got the gray hair to prove it. You're listening to wealth from wisdom. Would there and tell the same advisor,
Speaker 2:
25:29
rod Carson,
Speaker 4:
25:30
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 Baron. Taller Boom Advisor Ron Carson, 2017 is officially in the history book free
Speaker 2:
25:45
books. And for many of you, that means you're one step closer to retiring. And if you're in your 50s or 60s this should be a very serious wake up call to you. You're listening to well from wisdom. I'm Paul West and I'm joined by my cohost Jim Caldwell. And thank you again for joining us today. Is this going to be the year that you finally take control of your money and your investments? Are you going to do nothing? Sit idle and just see you at happens? Where are you gonna continue to wonder? You're going to lay awake at night? Are you ever going to be able to retire or if you do retire or are you gonna run out of money? If something happened to you today, would you be proud of the legacy you've left? Have you made it easy for your family to take care of the things that you left around?
Speaker 2:
26:29
So come on the segment, Jim and I are going to spend some time with you really in more of the strategies to take control of your and money and investments in this new year and it's going to help you retire or if you're in retirement, continue to live life the way you want to for as long as you thought possible. So Jim, you know, one of my favorite phrases as we're thinking about New Year's resolutions is, you know, what are some things I should start doing but also new year's resolutions can be, what are some of the things I should stop doing? So people think, oh, I need to quit smoking and I needed to quit drinking. I quit, need to do whatever other vices people have. But let's talk about the world of investments in your own financial thing. Maybe stop the latte effect. Maybe I can, you know, have one less latte a year.
Speaker 2:
27:16
Um, maybe I need to stop spending money where I shouldn't be. Um, but there are other things that we want to tell you that you need to do and we want to urge you to stop. So here we go. So here's things you should stop doing. Stop making investment decisions based on the news. Stop making investment decisions based on current events. Recency effect is one of the biggest behavioral biases out there. And we've shared this on the show. When you work with an advisor, the Alpha added is 2.92% net of fees per year. And the main driver behind that is because of your behavior. You make decisions because you're up at night looking at your farm one k plan. You're at a cocktail party and you're brother-in-law gives you a recommendation. These are reasons why not to make a decision. So stop listening to that stuff. Listen to what's important to you. Also, here's what I also am gonna stop doing. Stop trying to figure out when's the right time to get in out of the market. Jim. And we see this all the time, is you got to have the right asset allocation, but also make adjustments as appropriate as your life progresses.
Speaker 3:
28:27
I see that all the time and because in my opinion, it's kind of a football analogy here where people become one dimensional. Um, you, you, you have to be diversified. You've got to be able to run the ball. You've got to be able to pass the ball. You've got to be able to be strong on special teams. The three areas of football. If you watched the Oklahoma game and the Georgia game, I mean I would ask people listening right now, are any of you able to go into too over times to be able to retire comfortably as you move down the road? My edge would probably be no, you're not because you're not diversified. You don't have enough of different buckets to put your money. And when we say put the sand
Speaker 2:
29:07
den, your dragon, your dragon, exactly. Your had energy or you're out of water. I'm paid, by the way, Jim, I know you used to coach football. He got a little bit of a passion for it. How can you not win your conference? It's still make the national championship game and you know, go on.
Speaker 3:
29:24
Beautiful. I'll tell you the first thing, you're asking me all these date questions earlier and I don't even know what I had for breakfast. Okay. Now you're asking me that question,
Speaker 2:
29:33
don't you don't need to answer. So let's go to the things you should stop doing and I'll stop asking you about football questions. Other things you should stop doing. Looking at your franchise. Stop focusing solely on performance. Performance is yesterday's news. Everyone. It doesn't help you for tomorrow because what was in last year may not be in for this year. The market does a wonderful job from a performance perspective of making the fool out of the majority of us. So stop chasing performance. The next thing I want you to stop. Stop making decisions based on what you read or what you look at. Our big personalities like Kramer or money magazine or CNBC or any other type of massive mass media, and that's why we tell everyone you need to have individual consultations with your adviser. I certainly want to teach you and educate you that as part of the well from wisdom radio network and don't want you to use advisors that have your best interest in heart.
Speaker 2:
30:31
They should be a fiduciary. If they're not the f word, then you should be really concerned if they don't put your interest in front of their own. If they're not charging you on a fee basis and being transparent about the fees and ascribing an investment advisory fees and money management fees and all those things, then you're making a mistake. Also. You just need to stop really thinking that you can do it all yourself. There's reasons why they're our trusted professionals out there. They're in this business to help you. And you know, there's personas out there that are not. And that's why we share with you the fiduciary, the world of people being advice, choose the best relationships to help you. And one of the ways to do that, and one of the strategies for the new year is to update or make sure you're at least monitoring your asset allocation and diversification plan.
Speaker 2:
31:20
And Jim, this for us is, you know, we think about this, this is trouble spot for almost every new client, uh, we meet is they're just taking on more risk than they know. And especially as time goes on in the stages of life. And you know this run up we seen since oh nine to present. Is it starting to scare me to watch, to see how much risk people want to take? Because I just shared with you, can you imagine them getting taken six years to get back to where they are today? Right now they're thinking they're going to be double where they are in six years from now, not even randomly thinking through their mind. They could be at the same place or even worse than that. Lower.
Speaker 3:
31:57
Well, let's say you're right now. Let's say you're 62 63 all right, and you've mapped out that you want to retire at 66 or 67 depending on what works for you. All of a sudden we have a setback. We have a pullback and it's going to take based on your numbers, Paul, six years to recover. Now you're pushing not being able to retire till 70 and there's no guarantees that you're going to make up the difference then, so where are you? You're in a quandary. I think a big problem out there right now is people are very passive. They're very complacent as we've talked about. Um, they need to be more proactive. And I think most people that are working with a trusted advisor who has all the characteristics you mentioned w they advisor will be more proactive, which will keep their clients from getting into
Speaker 2:
32:40
problems down the road. Yeah, and I think you're right Jim. So I want to use a phrase you may have heard on TV and investment article you read through your financial advisor and it's called Monte Carlo analysis. So Jim is, you think about that Monte Carlo analysis is a way to go run a series of hypothetical results to give you some probabilities of success and your advisors make sure that with you, and you know we have the possibilities around that to Jim. But what's interesting to me is the data is the data and it's only what you put in is what comes out. So garbage in, garbage out right away. That can happen. But also, unfortunately life doesn't happen that way. Life isn't always a straight line of how this goes on is it ebbs and flows. It looks more like a roller coaster. Then it looks like a straight line of those things and we were just in a situation where a family was looking to us advice similar what you said there about 60 years old looking to retire, had built a nice nest egg for their family and they had gotten some Monte Carlo analysis from some advisers and they were interviewing three firms.
Speaker 2:
33:49
I think they were doing the right thing, asking all of them the same questions and what that looked like. But one of the advisers, Monte Carlo analysis, looked a lot better than another ones, and so we were trying to ask him why and explain the metrics. Well, they had this, the, the hidden killer in their gym inflation. They went super aggressive, which means a really low inflation number inside of there, which dramatically improve the results, which ultimately made this person feel better. But when they were educated on the truth and what historical inflation was and what that looks like, and that they really wouldn't have as much income and their Monte Carlo analysis of potentially being on a hundred percent chance of success changed dramatically. It was this Aha, oh my gosh, moment of life and I don't want you to fall through the trap. So don't fall through that trap that Monte Carlo analysis is going to tell you the whole story.
Speaker 2:
34:44
Just going to give you a snapshot of that data and that specific time, but your adjustments will change on everything it looks like. And you may pay more than a retirement, you may pay less, you may pay more taxes in retirement, you may pay less, but you need someone to help show you how at every point in time in your life that's most important for you, not once. And how's it going to look over the next 30 plus years. And that's really the ultimate win win for you, right? You get more money coming in, you have less money coming out, and that makes a huge difference in your lifestyle for retirement. It allows you to make adjustments while you're doing those things. And No, I'm not referring to specific products here, I'm not, this is just done with simple sound. I'm going to tell you continuous Jim, continuous, continuous, continuous investment advice and strategies. So if you've saved at least a hundred thousand for retirement, someone can help you talk through that right now. No obligation. (888) 419-8513 you really don't know. It's possible unless you make this call. Make it now. (888) 419-8513 that's (888) 419-8513
Speaker 4:
35:52
how could you make your money go further in retirement? Learn how next unwell from wisdom with Barron's hall of Fame Advisor Ron Carson, 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've been bombarded with suggestions for New Year's resolutions, lose weight, go to the gym
Speaker 2:
36:17
more. Stop Smoking, turn off the big 10 network. Come on exercise every single day, but I'm going to argue with you that there's one resolution that ranks above all are all others and no, it's not. Turning off the big 10 network for your gym is to take control of your life and your money and your comfort and your investments. About what's going on in retirement or on your pathway there. Hey, welcome back. I'm Paul last and this is going to be our final segment today of wealth from wisdom. And I'm joined by my cohost, Jim Caldwell. Creating a financial game plan doesn't just impact your money and your investments. He really has a profound impact in all the decisions you make about your life every day. And coming up in this final segment, we're going to reveal the last of our strategies to help you take control of your money and your investments in this new year. And it's going to really help you live your life the way you want to, even more than you thought possible. And you know, one of my favorite comments to share, Jim, is you know, as you're planning out your life, you're making investment decisions. You're looking at taxes, you're looking at spending, you're looking at your lifestyle. And I keep saying, just rinse and repeat that the numbers may change. But keep thinking about how all of those different levers make an impact on your life.
Speaker 3:
37:33
They do it. And you know, that kind of leads into a little bit about what we want to talk about here, about healthcare. A little bit about launch is a great strategy. Let's go over with people. I think it's something that people, of all the topics we discuss when we're talking with our clients and or prospects is longterm care. Nobody thinks, nobody thinks it isn't going to be me. I'm not going to be in an assisted living and I'm not going to be incapable of taking care of myself. You know, I'm going to live in my house until I die and off we go. It's not happening. And the numbers show it. And then there, there are people who have longterm care contracts, they're outdated and now they're becoming very cost prohibitive. And the older they get, the more costly they will be. The problem is when you need that contract the most, you're not going to want to pay for it. So you've put all that money out the door for no reason at all. Yeah, and it is. A lot of those is, I think a lot of those contracts
Speaker 2:
38:30
sharks get thrown in your drawer and I've heard nicknames for it before called like your junk drawer is the things you throw there, you know you need but it's really junk because you don't go back and look at it ever and you don't make adjustments and those are the things that can get jump up and bite you, but you're going to kick yourself. How many times when we made that decision or life like we kicked the can down the road and that one last kick created a gigantic problem because it went in the sewer and we lost out on an opportunity that if we would have stopped kicking it and just handled that situation and confrontation is actually probably one of the biggest things we kicked down the road. What about that argument or that conversation? I'll remove the word argument. That conversation you wanted to have with a friend, a fiance or spouse.
Speaker 2:
39:14
You kept kicking it down the road till it's too late and it came back and bit Ya on the rear end. Same thing can have your finances. You keep kicking these conversations down the road. Don't let the happen and don't let health care and longterm care longterm care expenses come on bite you. The the last strategy we think we need to keep talking about today is make sure people have a forward looking, tax efficient investment strategy to keep paying more taxes. You know, we've talked already on the show about the tax reform and some strategies and techniques that can help people out. Um, you know, certainly as we look at deductions and what those can do and the impact that a lot of that can have, um, exemption limits. So Jim, a big, big change is the estate tax exemption. And if you haven't had this relooked at you better cause this can seriously benefit your life.
Speaker 2:
40:05
But more importantly, your legacy. I mean really, if you died today, would you be happy with your legacy? I want everyone listening today to think about that. Have you made the right decisions? Have you done that? One last thing that can happen just in case you got hit by that proverbial bus and the estate tax exemption is one you don't want to pay any extra taxes. Your kids or your grandkids certainly don't. And if you don't understand enough about the tax law and what's happening, you're more than welcome. Actually on Thursday, January 11th at five 30 if you want to come to our office at 132nd and dodge, you know, give me a call us call right now at (888) 419-8513 mentioned the welfare from wisdom show and you want to attend. You must RSVP cause there a list to get in. But if you want to attend, you can please call us at (888) 419-8513 we're talking about the estate tax exemption.
Speaker 2:
40:55
We're talking about the new tax brackets and we want to share information with people. Our job is to educate you. You still got to make the right decisions. You are all in charge of your own destiny. Our job is to educate you and help you avoid the mistakes. We've seen many people make pitfalls and mistakes and what's going to happen now is with this new tax bill is people will say, oh that's interesting and not do a darn thing with it. Jim, take it, take an opportunity, stop you're busy, busy life for an hour and get more information to decide what's the next thing you do. It may be nothing, it may be making a significant amount of changes that can help you out but it also may be looking at your event investments and are there other tax efficient ways for you to approach those in 2018 and beyond
Speaker 3:
41:42
and I think to take it one step further there, because it is January and this event is early in the year, it gives you a golden opportunity to be proactive and not reactive to something. And I would go even one more step to include in your thought process. Have you had your wills updated? Have, are your beneficiaries current in, in on all your investment accounts, even your bank accounts? Do you have power of attorney set up? Is there a medical power of attorney? Those requirements have changed over the years. A lot of times when you say to somebody, well do you have a will? Yes. They don't expand on it. They just think, yes, it's good. It's sitting somewhere in a safe. So I would tie all that together, Paul with, with the proactive tax planning a approach.
Speaker 2:
42:29
Yeah. So, um, Jim, I don't know about you, but I've been asked to be like trustee on accounts for family members and friends. I'm sure you have to. And there's probably many of our listeners have, they have no idea of the ramifications of not making the right decision. So understanding the impact of what a trustee is and what your responsibilities are are really important. And you know, in this session we'll actually help spend some time with people on what that is, but it was also look at again, what are some most important things that everybody needs to be doing is they're playing out for retirement. And one is, are your retirement savings actually on track? Two, is your portfolio allocated correctly? Three, how well are you really prepared for unexpected expenses? Long Term Care, a car issue, whatever it may be, but end of the day, many of you think about and you're up at night wondering are my loved ones really taken care of?
Speaker 2:
43:34
Have I done all the right things for them? That should be your new year's resolution. That is important to you, your family, your life, your legacy. That's what matters the most. That's why if we ended the day, everybody asks what's most important to them. High, high majority of people say their family will do the things that can help them out and take care of yourself too, whether it's weight loss or those things, but we see those don't always happen every single year. Make 2018 the year that you improve your own financial health and you know, don't only get focused on investment returns. By the way, Joe is firing Evangel. We've already talked about that. But look at taxes and remember it's not what you make, it's what you keep and as you get closer to retirement, you have more control. And we've talked about this all the time, Jim, that you work until you ever have before.
Speaker 2:
44:24
In any time of your life on what you can do there. And you can save so many thousands of dollars, but don't ignore those. So if you've saved over $100,000 our team members are standing by right now to take your call at (888) 419-8513 you know what you really learned could possibly save you thousands and thousands of dollars and even more. That's (888) 419-8513 again, that's (888) 419-8513 you can learn more about how to save money for your retirement. You can learn more about the new tax bill. You can even talk to us about all of your financial resolutions for 2018 and beyond. Make this the year about you and your family. I'm Paul Dwell, Paul last joined by Jim Caldwell. And thanks for listening to the welfare wisdom radio network
Speaker 4:
45:16
risks, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of Fame Advisor Ron Carson.
Speaker 1:
45:29
Okay. And here's the legal Mumbo jumbo. The opinions voiced and wealth from wisdom with Rod Carson or for general information only, and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly. Investing involves risk, including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an SEC registered investment advisor.