Wealth from Wisdom

10 Things Successful Investors NEVER Do!

November 04, 2017
Wealth from Wisdom
10 Things Successful Investors NEVER Do!
Chapters
Wealth from Wisdom
10 Things Successful Investors NEVER Do!
Nov 04, 2017
Carson Wealth
Show Notes Transcript

If you could speak with the most successful investors in the world … What would they tell you to do with your investments today? And what would they tell you not to do? Join your co-hosts Mark and Paul as they discuss 10 things smart investors never do!

Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and wealth from wisdom with Ron Carson or for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly. Investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm, LLC and SEC registered investment advisor.
Speaker 2:
0:30
This dud 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 203 the skyrocketing cost of healthcare and retirement could now run 350,000 planning for retirement today is a whole new ballgame. It's loaded with challenges, obstacles, the trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with 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, Warren Buffet, Peter Lynch, Carl Icahn, John Vogel. These are the names of the most successful investors in the world.
Speaker 3:
1:13
They face the same challenges that every investor has faced over the past several decades. We've seen markets go up and they've seen markets go down, yet somehow, yes, somehow they've managed to stockpile billions of dollars. So how do they do it and what do they know that you do not know? Hi, I'm Paul West and you're listening to the wealth from wisdom radio network. And thanks for joining us today. My cohost is March Littman and your everyday Joe investor behaves very differently than these world class investors. Yeah, we get that, mark, we understand, but in fact, everyone often makes investing decisions that are the exact opposite of what they should be doing. And unfortunately that could turn into financial disaster for you and it could erase years, if not decades of hard work and sacrifice that you've put in. If in no time at all. If you could speak with the most successful investors today, what advice do you think they would give you on today's show? We're going to reveal 10 things successful investors never do. Yeah, that's right. Tips to help you avoid falling into traps that successful investors are very conscious to avoid. So this could ultimately help you make your money go a lot further in retirement. So my cohost today, Mark's Litman, mark, I'm glad to have you on the show. Welcome. You're based out of Quincy, Illinois. Welcome to the wealth and wisdom radio network today, mark.
Speaker 4:
2:37
Hey, thanks Paul. I'm very excited about this topic and I think it's, it's great. These 10 tips are great pitfalls to avoid discussing things that people can consider doing a with their portfolios as well.
Speaker 3:
2:51
Yeah, they are. I mean, as I think about it, uh, most people try to figure out what's right, but sometimes the best people figure out what to avoid. You know, one of my favorite phrases is, uh, protect the downside and everything else will take care of itself. And that's so true with investing is don't take unnecessary risks. Don't go down a path that you shouldn't, don't cross a bridge. Um, that's rickety and crotchety and old and could break when there's a much safer one 20 yards down the road. You got to find the right combination of that. So I think about all the time when we have bad client service experiences. So let's say we go to a hotel or we go to a restaurant and we have a bad service experience, we tell everyone about it. When we have a good service experience, mark, ah, we might tell one or two people, but certainly not the same combination of people. And that's where I look at investing. So everyone's willing to share, hey, that one or two great moves that they made, but the best investors spend time explaining the things they avoided. So let's get into our list today. Of those top 10 things successful investors should never do. So number one is they never invest without a plan. And this is so
Speaker 4:
4:12
go ahead. Any more than that, having a game plan, looking at some of the pitfalls that you should avoid. I know that you know that Ron and the group of us, we went on that fourteener in Durango, Colorado and it was a great experience. And I remember going through the guide, preparing for this big climb, the big hike that we did and getting the feedback from the experts that were our guides on this hike. And my first reaction, Paul, was, this seems ridiculous. I mean, why do I need to go through all these points of references and the pack and the gear and all the things that they advise us to bring on to the hike. And also all the preparation that they advise us to do a, before we go on a hike. It was, it was over the top, I thought was over the top.
Speaker 4:
5:02
But when we were actually on the hike and going up the climb, boy, if I would have missed just a couple of those items that the guides recommended us to do, um, it would have been probably the downfall. I probably would not have succeeded on the hike and, but my initial reaction was this seems to be an overkill. But then again, I thought to myself, you know what, these are the professionals, they do the hikes all the time. And I really, really made me feel like I was on the other side of the table. Uh, and the client experience. And you're right, it was a great experience. And I'm telling a lot of people about the great experience. Kind of like the hotel example you gave.
Speaker 3:
5:35
Yeah. Well I think it's interesting mark. So you're climbing and you're going through this path. So you did training for I'm sure, how many months? Uh, from a physical perspective.
Speaker 4:
5:44
Yeah, it was, it was five months of training. And I'll tell you, Paul, I was down south of us. There's a, there's a hill, a lighthouse, and if there's 244 steps to this lighthouse, and I would go down there and I was training and a lot of people said, what are you training for there? They saw that I had a backpack on and obviously I was not camping in, in Hannibal, Missouri. And I said, well, I'm doing this hike and it's coming up in about four or five months. And they said, well, why you training now? And I, I said to them, I said, well, obviously I can't do this a week before and show up at the mountain and be like, okay, I'm ready for this big climb. And it really made me realize, Paul, even with financial planning and the things that we do is you just can't show up at retirement. You just can't show up for retirement and be like, okay, now it's time for retirement. I don't have a plan and let's try to figure this out relatively quickly. I mean, you might say you might succeed, uh, with that, but I do believe it takes the anxiety out that every day that you are planning and you have a course of action to get your end goal.
Speaker 3:
6:45
Yeah. Mark doesn't work out and you've got to make adjustments. And you told me on the hike you guys got hit with a surprise. It was extremely cold for that time of year and you had a cold snap hit and you guys had to go into survival mode and you had to make adjustments to your plan. And there were people that didn't follow your plan and what do they have to do? I heard they had to turn back that they couldn't make it that far because of they didn't have all of the steps outlined in their plan. That doesn't mean they can't get their goal. You accomplished your goal there on that date. The others didn't. Now guess what? They're going to have to go back again. And that's no different investing. You can fall down a financially and not make the right decisions, get hit with excess taxes or maybe not achieve the returns you want and you just got to start over and Redo your plan.
Speaker 3:
7:31
And so, I mean for me, mark, I think about it, you show me someone who really doesn't have a plan and I'll show you this. Someone who's going to be pretty much destined to run through their entire savings way too soon. And the plant. Yeah. And, and you know, this is, the plan is not about one thing. It's about many things working together. Their social security, their income, their taxes, healthcare, uh, long longterm care, medicare, Gosh, what else? Estate Planning. Inflation. That's a lot of stuff and they need to figure out the plan at one moment in time on how all of those things work together.
Speaker 4:
8:04
Yeah, I couldn't agree more. I mean they never claim social security benefits without a strategy and part of the big strategy is how you claim social security benefits. And I would say Paul, in my experience when I started this profession in the 90s I often hear people talk about, Hey, I'm going to take social security early because I don't think it's going to be there. And I would have to say that that may be maybe the number one wrong reason to take it early, but a lot of people need to be educated to make an informed decision. Do you take it at 62 do you wait till 66 do we delay it to 70 and get that potential increase every year until age 70 and what I do find out that his comment is everybody's situation is a little bit different.
Speaker 3:
8:51
Everybody, everybody. I mean I think about the of waiting while people always want their money and I get that emotionally a mark because the social security is, yes it's a financial decision, but it's also an emotional decision. No one wants to guess how long we're going gonna live. But you are going to go through the longevity thought process in your mind. I mean just the other day of sitting with a family and we did a social security analysis and gave them an information so they could decide and there's always the trade off of taking it early versus waiting. But part of it was we went through, well tell me about your parents. When did they pass away from what causes? So we could go look at a little bit of their social history of their family and the genealogy so they can make the right decision for them on what that looks like. And that's not easy, but you need guidance through that whole way. But the only way you can look at it is through a personalized social security analysis. You can't just assume that, hey, I'm going to go walk in the office and the security office, I mean, and they're going to give me the right answer for me. Their job is to help get you through the system and no offense to any of them, but you have to have somebody that understands the context of all of the different elements of your overall plan.
Speaker 4:
10:07
Absolutely. And you can't ignore the rest because I believe the number one potential risk that we all face as longevity, we are living longer. And I was sitting down with a couple Paul a couple of months ago, the retired at 62 they had thought in their mind, hey, maybe we'll take social security benefits at age 62 and uh, the whole idea there was, I don't think it's going to be there down the road and or it may be different. And I do agree it could be potentially different. And so his comment to me when we were doing the customized game plan for them, the social security analyzer is they said, well maybe it won't be, it won't go away at 62 or down the road. Uh, but maybe they'll reduce my benefits. And so you look at the reduction that you get at age 62 and if there is a reduction down the road, because for whatever reason they pass a law that they reduced benefits. Obviously we're not saying they're going to do this, but if that is a potential risk out there, then you also took a hit with that and you took a reduction in 62 so it really made sense for this person at this point in their life. They weighed the options and it looks like they're going to take it at 66 and then he's gonna wait till age 70
Speaker 3:
11:17
yeah. So mark, I'm curious, how long are you going to live
Speaker 4:
11:19
exactly?
Speaker 3:
11:20
I don't know how long. I want you to know. I want to know are you going to live this 60708090100
Speaker 4:
11:26
yeah. My, my psyche is telling me 115
Speaker 3:
11:29
115 I liked that. So all our lists,
Speaker 4:
11:33
if I get 90% of that, I'll be happy.
Speaker 3:
11:35
Well off. That'd be a good number of century figures there for you. But all of you listening, we don't know the answer, but we should think about it. And I know sometimes it's scary to think about those things, but we just don't always know what that's going to be. And for our listeners today is, that's just part of the overall conversation. And as I think about all of this, some of the things we don't know is when we should actually claim Marshall Street benefits. I'm like, we're talking mark, this is very complicated. It's confusing and we don't always know when the right time is for that, but not knowing that right time can cost us tens if not hundreds of thousands of dollars. And that mistake state can haunt you for the rest of your life. But if you had a personalize social security analysis, that this analysis can reveal the optimal time for you to claim your benefits and how to reduce your taxes on these benefits. And by the way, for even eligible for more benefits. So you might expect to pay hundreds of dollars for this type of analysis, but you can actually get that for free. A customized analysis if you want. Call us now at (888) 419-8513 don't cheat yourself out on thousands of dollars in lifetime benefits that are rightfully yours. So give us a call. (888) 419-8513 coming up next and investing decision that world class investors never make
Speaker 5:
12:48
that could cost you tens of thousands of dollars in retirement. He's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now, back to welfare. Wisdom with Barron's hall of Fame Advisor, Ron Carson, one of my favorite Warren buffet quotes. You only have to do a very few things right in your life, so long as you,
Speaker 3:
13:08
you don't do too many things wrong. Welcome back. You're listening to wealth and wisdom and I'm your host, Paul West, joined by my cohost Mark Schlep meant your everyday Joe investor behaves very differently than worldclass investors. In fact, he often makes investing decisions that are the exact opposite of what he should be doing. So coming up in this segment, we're going to reveal more of the 10 successful things investors never do that could ultimately help make your money go a lot further and retirement. And so far we've covered two. One is never invest without a plan to never claim social security benefits without a strategy. And let's move into number three is we can't ignore risk, never, never ignore risk. And this is really a big trouble spot we're seeing with every new client we're currently meeting, they're taking on far more risk than they know or they're taking on more risks they need to at this stage in life.
Speaker 3:
14:00
What's happening right now is the market, I call it mark, it's boring because it's, it's, it keeps moving up, which is great, but what it's doing is moving up slowly and there hasn't been a lot of volatility. So investors today are taking more risks than they ever before, but they don't know it. So when that next downside movement happens, they're going to be exposed in ways that they haven't before. It's like when you go out, the temperature is great and a cold front moves through and you don't have that sweater or jacket on and you're regretting it, but you've got a long way back home from your walk. That's not a lot of fun. And that exposure creates potential cold for frostbite or getting ill, whatever it may be. And you've got to think about all the risks that you could face potentially out there.
Speaker 4:
14:44
No, great point, Paul. Um, it was a couple of weeks ago and we had a cold front moving here in Quincy, Illinois area and my hands and my hands were tingling. I didn't have my gloves, my jacket, and to buy, to your point, I thought to myself, this happens every year, you know? And so it's nothing new. The, whether the seasons changed, but how quickly we forget the past. And that was just a year ago. Obviously when fall comes. And is Holly, you know, around the holiday season and things get cold and you have to work loves and jackets. And we look at, you know, in the past events, when I started this profession in the 90s, uh, the optimism was there in the late nineties and people were very optimistic with the markets. The economy seemed to be doing very well. And then the fear of y two k came and then we had, uh, 2000, one, 2000, 2000, three, we had a technology era there that was, there was a bus there, a little bit of a correction and then we can kind of forget about that. And then obviously we know what happens in two and happened in 2008 with the financial crisis. And I'm really finding out, Paul obviously that most people, I think it's the human psyche. Most people love volatility, but they'll only love it on the upside. They liked the volatility, the upside, they don't like the downside volatility.
Speaker 3:
15:59
Yeah, very true. Everybody likes to win, right? But they hate to lose so they can handle that. But the emotion that come with it makes sense. And so actually mark as I was driving in, I took a path the way the other day. Uh, so I had a chance, my son goes to a boarding school, one of my sons goes to a boarding school and I was driving him out there in the morning and when I was coming back, I had two choices. I could go down the express way, which could get me to my location in 15 minutes, but it could potentially take me 45 minutes or I could go down a way that was a little bit longer, had more lights, but I know it would get me there in 22 to 24 minutes. And like all sorts of risks, you've got to make a decision, which one's most appropriate for you?
Speaker 3:
16:46
And for me is all of us, you know, make those traffic decisions, right? We all, no one likes sitting in traffic or I've yet to find an individual cause I sit in traffic. But what we do now is if we all had a choice to take two paths here, let's say one road could get you there in 20 minutes, but it also could take 45 but also imagine that same one no matter what, every single time you took it would take you 30 minutes, no matter what time of day. Which path would you take the guaranteed 30 minutes or the chance for 20 or the chance for 45 what do you think?
Speaker 4:
17:23
Exactly? You're exactly right.
Speaker 3:
17:24
Are they going to take the 20 you think mark, are they going to take the 30
Speaker 4:
17:30
a hundred percent agree with you on that? And it comes down to their element of risk. I mean the idea of sitting in the traffic, none of us like to do that. And it seems like in some situations, uh, switching gears and switching lanes makes a lot of sense. But then sometimes people even with their own portfolios, stay in the course and having that personalized game plan that you know why you're invested and what's you're invested in and having that transparency and that assurity in your, in your mind, why you an investor and what you're doing makes sense with your personalized game plan and not just what you're well intentioned friends and family are doing.
Speaker 3:
18:06
Yeah. By the way, mark, don't you grand? Sometimes when you watch those lanes going back and forth and then a mile down the road, you want to just wave at them as you're passing in the mines. They've made the wrong choices through there and when I think about is everybody right now in the market is choosing that 20 minute path. They're trying to take the aggressive path and right now they got some nice, nice tailwinds in the market. The market's helping, but you know what? That wind will change at some point in time and is your, are you risk set up appropriately that all of a sudden your path went from 20 minutes to 45 minutes? Are you going to be late? Are you going to be delayed for your own retirement? So don't ignore risk. So let's move to number four. Let's never forget about the key role taxes play in investing in successful investors. Never forget about it. And this is really one of the most overlooked areas of investing when the big reason why is, is when we're recording our taxes every year. Think about it, we're recording history. We need to play it forward and think about the most forward looking tax efficient investment strategies that you can have. You know, for example, social security, you're re minimum required distributions, all of those things that can have a serious impact on your financial welding.
Speaker 4:
19:22
Yeah, I couldn't agree with you more in our office just yesterday and a couple was in our office and they had done some conversions on their IRA years ago. Uh, so they took some other IRA money as we all know that is taxable. And they decided to convert that to a Roth Ira, was in their best interest with their plan. And we were revisiting the plan that we had done 10 years ago and they're very satisfied because their account has grown. But what we positioned it in a way that I don't believe any of us know what the tax code is going to be 10 years from now. We don't know what the tax code is going to be next year.
Speaker 3:
20:05
It's changing every day, isn't it?
Speaker 4:
20:07
It changes every day and there's a lot of information out there and, but to have an option. So Paul, fast forward, you're 70 years old and you decide you want to go up, upgrade your vehicle and so you want to go out and buy a brand new truck or whatever you decide do you want to buy? And then maybe that year, uh, we've, uh, tax climate that is very consumer friendly and maybe it makes sense to take money out of your IRA, pay some income tax on it, or maybe when you're 70 years old, we've got high taxes and you go back in the history of the seventies and eighties. They look at where the tax codes were at. And so we've got high taxes and, and um, you need to take money out for that car or that truck purchase. Then you've got the option, you can take some money from your IRA or maybe you take some money for your Roth Ira and maybe have some tax free money as well because the pain of paying taxes, I don't believe anybody who enjoys paying taxes.
Speaker 3:
21:00
No, I've yet to find one. By the way, if I'm buying a car in 30 years, I'm guessing it's going to be a complete driverless car. I think that's the trend that we're seeing. Mark. Hey, by the way, have you ever explained taxes to children? Have you explained them to your kids? Mark?
Speaker 4:
21:14
Yes. And they, they don't like it either.
Speaker 3:
21:18
Are they probably didn't understand it, did they?
Speaker 4:
21:21
No, not at all. I don't know. But they know that there's roads. I know there's curves. I know we have a lot of great benefits. We have a military that the tax has helped fund that as well. And so they kind of get it. But no, I, I don't think either one of them have ever said to me, wow, that's great that we're paying taxes. Yeah,
Speaker 3:
21:39
no. Well, I took them. One of them had a gift card, uh, one of my teenagers, and they have a gift card and they want to go spend it. So those $40, and so they go on to buy something that's 39 99 and they go, here, dad, here's the $40 gift card. And I said, well, what about the taxes? Well, like, what do you mean I gotta pay for that too? And then it led into a conversation about taxes and how that works. But I said, we have to have these things if you want, you know, that road out by her house, that they're under construction right now here in Omaha, they got to fix it. So it's better for the future that the pain of change is the price of progress. And that's something we have to look at. Taxes included. So let's move into our next one, mark. Number five, top investors do not, I mean, do not ignore it. Inflation. And I know you'd love to talk about this, mark. So I'll flip it over to you. How do we avoid, we call this the silent killer. So how do we avoid the silent killer? You
Speaker 4:
22:29
know, it depends on what you listened to. Some people think that we have a 3% inflation, but really Paul, I believe inflation is, needs to be part of that customized game plan because you're buying habits may not correlate with what the government or other sources tell us what inflation is. And so there are some analysts out there that look at the substitution when it comes to inflation. So for example, Paul, if you go to the store and you're buying habits that on Saturdays you guys eat t bone steak, uh, on Saturday. And uh, that's just something you like to do. And if you go to the store and now t-bones or 10% higher and costs due to whatever reason, and maybe chicken is on sale, is your personalized game plan one that you're buying habits tell you that, hey, we're not going to have t bone steak Saturday night because it's up 10% in costs.
Speaker 4:
23:23
We're going to switch over and have pork or chicken or something else that's on sale. So that's something that that inflationary numbers really don't talk about too much. But what are your buying habits as a consumer? So if you're one that you know, clips coupons and gets the best deal out there, then you're spending habits and the way you spend money is completely different than somebody who doesn't change their buying habits due to a cost of goods going up. And so really it, it's different. And we've talked about how everything is different for every individual and it really, really is even down to obviously inflation and how we factor that into someone's portfolio.
Speaker 3:
24:02
Well first of all, you're making me very hungry. So thanks a lot for that mark. But people don't think about that always. So as I think about for everyone, remember it's not what you make. You actually keep. So how you factor in your taxes, your investments, your inflation, all of those things working together could save you tens of thousand dollars. It's like all the different seasonings. Maybe you put on your steak there, mark, you're using a lot of different ingredients to make that right combination for you, but you have to also think about your own personal situation and how could you actually save thousands of dollars in taxes every single year. And for a lot of people, it's just a simple phone call. That's all it is. There's no cost to you, so there's nothing to lose. So if you saved 100,000 or more, our operators are standing by right now to take your call at (888) 419-8513 it's your choice.
Speaker 3:
24:48
Really pay the IRS or keep this money yourself. Top investors keep the money. So learn the strategies that could save you thousands of dollars in taxes in your retirement. Give us a call. (888) 419-8513 that's (888) 419-8513 what lessons can you learn from the world's most successful investors? We're going to reveal the answer coming up next on the welfare wisdom radio network. 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 Halothane, but advisor Ron Carson. Every investor faces the same opportunities and challenges while some struggle and make mistake after mistake after mistake, a smart and savvy few managed to make millions if not billions of dollars. Welcome back. I'm Paul West and you're listening to the wealth from wisdom radio network. I'm joined by my harsh go host marks Lippman. Sorry about that mark. Hey, what do world class investors know that you don't know?
Speaker 3:
25:48
And in this segment we're going to talk about 10 of the things that successful investors never do. That is, yeah, helping you protect yourself from yourself by making sure you ultimately have your money go a lot further in retirement. And we've spent some time talking about a lot of different things it we've talked about investing without a plan, your social security benefits, ignoring risk about the roll taxes play about don't ignore inflation. It can be a silent killer. So number six is like what I call sequencing. Really good investors. Never withdraw money from their accounts without having a plan because we spend so much time as we're getting ready for retirement, contributing money, and that part's easy, right? It comes out of our paycheck or we make contribution decisions and that money can go in there, but withdrawing the money is riddled with trap doors.
Speaker 3:
26:38
There are so many mistakes that we can make and you have to have the right plan in place. And the truth is is you have more control during your retirement, over your taxes than any other time than you've had in your entire life. So making the right withdrawal, sequencing decisions is one of the most important decisions that investors make rather than saying, and this happens all the time, is people say, oh, well that account has the most money in it. I'm going to pull the money from there, or that account has the least amount of money in it. You know what? I'm just going to drain that account. And that's the right decision to make. Those could be the absolute wrong decisions to make. There could be decisions to make when you get in retirement. What happens for most people, you're not getting paid a salary anymore. But maybe there's a short period of time where we've seen this all the time, mark, where somebody should do a conversion analysis of changing from maybe a traditional or rollover IRA to a Roth because the tax benefits of making that change could be significantly better than just holding on to the exact structure that they have today.
Speaker 4:
27:44
You know, I was just looking at my own IRA and 401k simply Paul and I thought to myself, I've got a silent partner in this whole, we know this going into it, that someone's got to pay the income tax potentially on the IRA and the four o one k assets partner is obviously the u s government and we got to pay the tax person, uh, when we withdraw the money from the plan. And then, you know, a lot of people decide, hey, I'm not going to take any money out of my four o one k or IRA during my sixties. And I'll just, you know, live off other sources. But then as we know, we've got the required minimum distribution that starts at age 70 and a half. And if you don't take out that amount of money each year, the penalties up to 50% so there's another trap door right there that if a person is out getting the information and the guidance to take the money out appropriately, uh, there's a huge tax that, and not only the tax but the penalty involved for not knowing what the rules are.
Speaker 3:
28:40
Yeah. Mark, I like to play board games. I like to play cards. So I think about this is, it's like playing chess. So you've got a lot of different moves to make. What you also want to do though is you have to play a combination of authentic and defense is I don't want to make a move. And then I didn't realize that the IRS is ready and waiting for me there and they're going to take that chess piece from me because I made a move that was inappropriate and I didn't think about or I didn't know. I thought it was a great offensive move, like pulling money in an account. But in realize the ramifications of the defense that goes along with it. So whether you, same thing, we play cards with you, play pitch or Uker, whatever it is, you're, you've got to have the right combination because you're looking at the sequencing of your cards. And so I love to play cards we've played in our family who actually play it, you know, amongst many of us on the wealth of wisdom radio network. And it's a fun game because it helps you think about all of the different decisions you make and putting them all in the right order for yourself. So are you good chess player, mark?
Speaker 4:
29:44
Um, I could be a lot better, let's put it that way. I could be a much better chess player.
Speaker 3:
29:48
I have a good checkers player. That's how I have you figured out
Speaker 4:
29:52
and war in war.
Speaker 3:
29:54
Good. Okay.
Speaker 4:
29:56
Exactly. And that brings us to number seven. Uh, never having one source of income in retirement. And so a lot of people that, uh, have different sources of income during retirement, not only social security, uh, you're withdrawing money from your Iras. Maybe you've got real estate in your portfolio and what is the right mix? I've had several people, uh, contact our office and say, you know, is it a smart decision to have real estate in my portfolio? Should I own a piece of real estate personally and take care of it? And it really comes back down to that personalized game plan. A what makes sense for you? Should you have some investments in your portfolio that have more yield focused and growth to meet your income needs? And really that's the number we've got to figure out what it is. And what does that return that you need to have to get you closer to retirement or maintain your senior living while you're in retirement?
Speaker 3:
30:46
Yeah. None of us, I know you said you're going to live to 110 or 115
Speaker 4:
30:51
if they don't cut it short.
Speaker 3:
30:52
All right, I'll give you those five more years. But you don't want to be 110 years left and broke, do you? So you've got to figure out that right combination. And there's a lot of different sources of income. Of course social security, your retirement accounts, but I was looking at, there's three levers you can use to increase your total dollars and living longer. So one is you can increase your return, but we've already talked about the risk associated with that. And today's market to, you can lower your living expenses. So like you said, you're not going for that t bone, but you're going for the pork or chicken or whatever is on sale. Or three, you can increase income. So a couple of ways to do that. You can work longer. I know you may not like to hear that, but that is an option, part time. Think about that. That could be a way you could do it. Uh, we've talked about reverse mortgage. Maybe that makes sense. You need a professional to look at it. Just don't assume it makes sense for you, but you've got to play with those levers to help you think through life's trade off decisions because you have a lot of them there.
Speaker 4:
31:55
The, the pain. I would say the one thing that I would focus on is the pain of losing money hurts so much more than the joy of making money. Most of us don't want to lose money, but we quickly forget about that. Uh, when we were having, the markets are doing very well and the pain of losing money and also the choice that you would have that some people do choose to go back to work in their sixties and seventies because they really want to work. But that's a different mindset going to work because you choose to rather than you have to.
Speaker 3:
32:26
Yes. Have you had that feeling mark? Hey, I had a $20 in my wallet and it's not there anymore, or I had $20 in my pocket and it fell out. How long these men, I think about this happens frequently. People just panic because what happened to that money? Where did it go? And you're, you're looking everywhere on the ground or maybe you've been fortuitous and all of a sudden you're walking somewhere and you found a dollar, $5 $10 $20 on the ground. And you say, Huh, where'd this come from? Is it my lucky day or are you the person who is trying to return that to its rightful owner? Uh, you're exactly right. It makes the fear of losing money is so crazy. Um, so mark, it's fall time. Uh, you're based in the Midwest. I'm based in the Midwest and I think about what happens is there's a lot of mazes out there in life and I think about Halloween time just came in past is a lot of people create mazes for people to go through.
Speaker 3:
33:23
Well, amaze is full of wrong turns and dead ends. But imagine if you had like an aerial view of the maze before you went in there. And that's really what working with a professional is like. They can help give you an aerial view because they have experience of going through a maze before. You still have to make the decisions. It's your job to avoid the traps. You can just be coached on what direction to go and what ultimately is going to work best for you. But guess what? This is your only shot at retirement. You don't get another one. So you can plug along and do it yourself and plow into different walls inside the maze or get lost in spend hours and hours and hours inside of there. But you could also get someone to guide you through the process and think about how you're going to feel at the end.
Speaker 3:
34:10
And is it worthwhile getting there faster, get in there more comfortably and getting there closer for your family. That to me is what making the right decisions are. And that's why successful investors have that aerial view of trying to not crash into walls that other people have made before. And it makes me think, mark, that you know, there's a lot of people listening today that have saved and invested for their retirement or they're currently in retirement, but now they don't know what to do next. And what the reality is is they could legally save a lot more money in retirement and keep more money for themselves and they can really turn their investments into a work horse and income producing vehicle for them. So we've talked about a lot of different things today. Marks I'd like to offer up to our listeners. You can get a five step retirement master plan. This will help you discover five significant strategies that could help you make the most out of every dollar you've saved. So if you have actually saved $100,000 or more, our team is standing by now to take your call. So give us a call at (888) 419-8513 that's (888) 419-8513 what you could learn here could literally save you tens of thousands of dollars. You're leading up to retirement or during it, you're even more so give us a call. (888) 419-8513 and now coming up next we're going to reveal more of the 10 things that most successful investors never.
Speaker 5:
35:32
Is it possible you could pick fewer taxes in retirement and keep this money for yourself? You learn right here and right now on wealth and wisdom with Barron's hall of Fame Advisor, Ron Carson, Warren Buffet,
Speaker 3:
35:45
Peter Lynch, John Vogel. Yes, these are the names of some of the most successful investors in the world. They've faced the same opportunities and challenges that other investors had faced over the past several decades. Yet somehow they've managed to stockpile millions and billions of dollars. So how did they do it and what do they know that you don't know? Welcome back. I'm Paul West and you're listening to the wealth from wisdom radio network. I'm joined with my cohost Mark's Lippman. So coming up in this next segment, we're going to reveal the last of our 10 things successful investors never do that could ultimately help each one of you make more money and have it go a lot further in your retirement. So mark, let's move to number eight and that is they do not ignore successful people. Do not ignore investment fees and expenses. It doesn't mean they don't pay them, but it means they're conscientious of them. They know what's happening, and they're all willing to pay money by the way, for investment fees and if our expenses, but there has to be value produced from what their pain in a recent survey showed him. This is fascinating to me, mark is so how many people do you think that think their pain, zero fees and their 401ks today? 10% 20%.
Speaker 3:
37:00
Half. You're still low. 67%. Yeah, that's right. Two out of three Americans don't believe they pay any fees with their 401k. Guess what? They are dead wrong. They, they, there is fees inside there and they have to understand what they are because even if it's a quarter percent, a half percent, one, two, three, whatever that may be, gosh, I hope it's not two or three. Uh, but over a short period or a long period of time, this can cost them tens of thousands and thousands of dollars. And even more than that,
Speaker 4:
37:30
I mean, Paul, wouldn't you agree that you see will typically be lower than a c you don't see?
Speaker 3:
37:36
Yes, I would.
Speaker 4:
37:38
Yeah. And I go through investment statements. Obviously when we're doing a customized game plan for clients and prospects and we look at their existing holdings and we get into those what 300 page prospectuses and look at all the fees and fees and management fees and really find out what the true costs of investing and in some, in some cases, Paul, obviously even in my own situation with things that I buy and purchase a, I don't mind paying a little bit extra fee if I'm getting great value, but I do believe it's nice to know what the fee is. Then you can make an educated decision if, hey, if I'm getting the value that I, if I'm getting great value and I know the fee that I'm paying, then fantastic. Then you're making an informed decision to either stay the course or make a correction and it's just amazing. We talked about inflation, we talk about taxes that people pay, but that fee that you're paying is something that over time really, really accumulates and that could be a silent killer to your portfolio as well.
Speaker 3:
38:37
Yeah. But don't get so fixated on the CE Mark, and I hate when people do this, is you have to look at your net return after the fee because there you could be saying, hey, I don't want to pay x percent, but if if the returns and the value being produced on whatever the service offering is, it could make it so much more beneficial for you. So don't get stuck on one basis. Point here are 10 10 basis points or 0.1% whatever that is, because the benefit could be so much more than that. So that leads me into number nine, don't let, and top investors do not let emotions get the best of them. They take a longterm view and better yet they're smart. They turn off that TV, they do not let news headlines drive. They're investing decisions. They don't let that three minute blurb they saw on Fox, CNN, MSNBC, CNBC, whatever it was, influence their decisions. And so many investors today, mark, unfortunately let the pop up on their phone and that quick news blurb change their investment methodology.
Speaker 4:
39:42
Yeah, I look at my stomach and your gut, you know, your mind tells you one thing and your stomach tells you a totally different thing. Theresa chip cookies and cookies are my favorite and she made them there on the counter and my mind said, hey, have one. Well Paul Tell Ya, after five was investing in everything, your mind tells you one thing. Maybe you should buy a stock low or whatever the situation is, but your stomach typically wins. And if you could control that emotional behavior exactly right. Could not agree with you anymore. That emotional behavior is something that can make us make irrational decisions and do things that we will regret later.
Speaker 3:
40:32
Yes, those were, those must be darn good cookies,
Speaker 4:
40:36
Paul. As you know, I was well up 50 pounds heavier than I am now years ago and I could have made the whole counter top of cookies. Yeah, no problem at all.
Speaker 3:
40:44
Yeah. Well congrats. Congrats to you again, mark on weight loss and it's showing some discipline of only eating five cookies versus the entire countertop fall. So let's move into the last one. So number 10 and as we've talked about emotions is part of the emotions is people as they make irrational decisions often tend to move all their money into one decision. And I call this is top investors do not put all of their eggs in one basket. They come up with a diversified portfolio, a diversified income stream, and looking at all the different components of what happened. And, and many people are invested all in or all out. And it doesn't have to be that way because top people figure out ways to win in all markets. They may not win in exceed. So in the current market environment, they may not be outperforming go this, call it the s and p 500 which most people uses the current benchmark, but they win in the long run because they're not chasing returns and putting all their eggs in one specific basket like that.
Speaker 4:
41:51
And the one thing I would caution you and you know, perception of diversification is something out there that, hey, I've got five different mutual funds. But then when you do a portfolio analysis of your holdings, how many of the holders do you own and each of the mutual funds and there are overlapping. So I also look at that to Paul's being a risk that it may be perceived that you're diversified, but are you actually well diversified?
Speaker 3:
42:22
Yeah, and you may not be, I mean, I think about when people, I compare this to when people go to the casino and they go to the roulette table until they put their money on all red or all black, they're putting their eggs in one basket there. They're saying, Hey, well I'm going to go for everything. Or A, I hear people say all the time, oh, well I got a cash in my wallet, cash in my pocket. I might as well spend all of that and I got a gift card. I might as well just use all of that. It doesn't mean you have to do that. It means maybe you should make the right decision. And Mark, you know, I think about today is we've talked about all the things that are successful investors don't do. It reminds me of, we've gone through the top 10 things. So I want to think about top 10 list was famous from what late night show host and see if you can get this one right here. That's a question to you,
Speaker 4:
43:09
David Letterman, right?
Speaker 3:
43:10
Absolutely. So I had a lot of fun this week prepping for the show. You can actually go on youtube and see so many of the famous top 10 shows a and they are done in amusement and, but they also were educational for a lot of things. And in today's show is we've spent time talking with all of you. It's really about what are you gonna do with this information? There is a lot of different ideas and concepts we shared and things successful adviser, excuse me, investors don't do. So make sure you pick the right one and pick the right combination that you don't do as well. And that's going to be really probably for you. You have a lot of questions about money and investments, so why don't you give us a chance to help you figure out have you, can you make the most out of every dollar you've ever save for retirement?
Speaker 3:
43:55
And if you don't know enough about us on the wealth from wisdom radio network, we are actually the number two independent advisor in the country. According to Barron's, we were selected as one of America's top wealth advisors. According to Forbes, we've actually been on CNBC, Fox, and many other national media outlets. And probably most importantly, of course we are fiduciaries. So one simple phone call, it doesn't cost you anything, could change the course of your overall financial pan or it can reassure you on where you are. So give us a call, (888) 419-8513 even if you have an advisor right now, getting a second opinion benefits one person and yes, that one person is you. So give us a call. (888) 419-8513 (888) 419-8513 hey mark, I want to thank you for joining me today and I wanna thank all of the audience for listening to the wall from wisdom radio network. We'll catch up with you again next week.
Speaker 2:
44:48
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:
45:01
Okay, good. 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 SCC registered investment advisor.