Wealth from Wisdom

What’s Holding You Back from Retiring? Your 7-Step Action Plan!

April 16, 2017
Wealth from Wisdom
What’s Holding You Back from Retiring? Your 7-Step Action Plan!
Chapters
Wealth from Wisdom
What’s Holding You Back from Retiring? Your 7-Step Action Plan!
Apr 16, 2017
Carson Wealth
Show Notes Transcript

This show will challenge you to think about what’s holding you back from your dream of retiring. Ron Carson and Paul West offer a 7-step action plan that could help you retire sooner than you ever thought possible and make the most out of the money you’ve saved for retirement.



Speaker 1:
0:00
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 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 and SCC registered investment advisor
Speaker 2:
0:31
Doug market hit another all time records as much as $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 205 the skyrocketing cost of healthcare and retirement could now run 350,000 planning for retirement today is a whole new ballgame. It's loaded with challenges, obstacles, and trap doors, but you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson. Welcome to a wealth from wisdom Radiolab. I'm
Speaker 3:
1:11
Ron Carson with my cohost. Oh Wow. Paul's group Dab you here today. Hey, do you ever wish you could retire now? Do you ever wish you could just be done with the rat race and all for once and all the stuff that you have to do and really live the life you've dreamed of living? Maybe it's playing golf, spending time with your family or just doing nothing. For me, it's being up on the hunting lodge, hanging out with my dogs. I really even hunting, but just just taking life at a pace outdoors with things you really enjoy or truly my profession, my profession is my passion and I think so many people fantasize about, you know, what some day might look like and we're big believers here at the Carson group is make some day today. What are the things I need to do in order to be financially secure?
Speaker 3:
2:01
I don't even like the term retirement Paul anymore because I think it's an outdated term that we need to live our life by design, not by default. We, and that's what our whole wealth defined wealth design life to find processes about is really, you know, gearing our life and our resources to something we could just love. And so the real question is, you know, what's holding you back from doing that? What's standing between you and really making that a reality and what are the very specific steps you need to take to make this happen? The answer may not be that you just need more money. In fact, you could have an excess of money, which also could be a tragedy. I'll explain why in this coming up section here. Also, it could be possible. That is by making some adjustments to your lifestyle. You can enjoy an incredible financially secure life. Right now I'm going to interchange financially secure with retirement. So you have a choice. Continue doing what you're doing, what you've done,
Speaker 4:
3:00
or take some action now so you know the answers so you can live your life by design, not by default. And in this segment we're going to talk about seven steps that could help you get financially secure a lot sooner or stay financially secure if you're already there and we're going to help you make the most out of every dollar that you haven't. And Paul were talking about yesterday, you know, this show and all the different ideas around it. I mean this is one that's fun to do because it isn't that most people can't have a financially secure life. Most can. It's just most don't know how to even approach the planning process, which is the number one step. And our seven step process is you gotta have a plan or absolutely nothing. You're never going to feel secure to take that big step. Yeah.
Speaker 4:
3:52
Around. I couldn't agree more. I mean, as we work with families and others that are asking us all the time, what should we do? What happens when they don't know something? They tend to just avoid it overall. And that's the whole important part about developing a plan on actually, um, it's national stress awareness month. And I, the reason why I bring that up as I think it's interesting, so there's a recent survey of a thousand adults in 86, 86% of them indicate that they are stressed about their finances. That's how a lot of people, wow. Um, and as we think about that, why is that? And really the good news is 75% of those who were stressed about their finances said that they reacted better with, they had a deeper knowledge of their finances too, if they had a better understanding of their financial situation. But the number one thing that can help them is have a financial plan, be able to put that together.
Speaker 4:
4:48
But here's what's interesting, Ron, because this tells us when people don't know what to do, they avoid it. How many people do you think actually had a financial plan and contacted professional? This was a survey. A how many thousand people? Thousand people. I'm going to say out of a thousand, probably 15% less than that. Less than that. Less than 10% because they got, so here, here, they know it. They know the number one thing they need to do is to work with someone, but then they're fearful actually to call someone. And so what they have to figure out is how do they help do it. So I think Ron, let's today talk about how do we help people get away from that fear and actually sit down with someone and go through that plan. And they mentioned in the survey why people were fearful of making the call. Now I didn't go through the behavioral elements of it. Here's what I think it is. Paul, I think, and I and I understand why people are afraid of making a bad decision. By the way, all of wealth from wisdom shows are available on iTunes. You can go to and get our past podcasts, one of our past episodes. It was like what are the minimum requirements you need to look at when hiring a wealth management team? And if you do that, I think you can dramatically stack. The odds in your favor is you're going to
Speaker 3:
5:58
have a really, really good team. I want to tell a couple stories. I mean, this is my 36th year in this wonderful profession. And I remember in the mid nineties, 94 think to be exact, uh, two clients that are with the firm today came to me, they work for a company in town you've probably heard of called Enron and they, it was a high stress job. They both actually work there. So they had in Ron stock, they had aesop plan, they had a four o one k plan, they have it or retirement plan. And I remember they, neither one of them were enjoying what they were doing. They were stressed out. They really more so tired cause they were ground so hard in their position that they really weren't enjoying life at all. And I remember when they sat down and they said, main reason for us coming in as we want to know when it will be possible for us to just quit and not look back.
Speaker 3:
6:52
And I remember that first meeting and then I went through and I actually did put with my team, puts a plan together and I'm looking at what they're spending living in Omaha, Nebraska. And I couldn't wait to meet with them for the very next meeting. They are like, I go, you guys can retire. You could have retired two or three, maybe five years ago. And he was very cynical. He's like, I just don't believe it. I don't think it's possible. And I said, it's not only possible, but unless your spending habits tray changed dramatically, there's no way you're ever going to outspend your income unless you do something really stupid with it. And so he said, well, if, if in fact we run out of money, we're moving into your house. I said, deal, that's a deal. And here we are, 2017. I mean, the resources are worth more than what they started with and they've lived a life they've, they've wanted for nothing.
Speaker 3:
7:51
Uh, but again, it was pairing. What are they going to spend? What are the resources they have now? We didn't know it at the time. Had they stuck it out, those resources would have gone to almost nothing because everything, everything was bet on Enron stock. And we all know how that story ended. They would be living in your house right now if that was the case? Well, no, because I never would have, I mean we probably what today have 35 40 in Ron people that we saved from financial devastation. There was one, there is another story I'd love to share and that is the person that didn't have the plan. So these people actually knew each other cause I used to do these brown bag lunches over it and Ron and so another gentleman came in, him and his wife and we're good at, we did a plan but they never executed the plan. And that's a second piece of this is do a plan but execute the plan and make sure someone's on top of it is they had, just like Bob and Mary, they had everything tied to Enron and they kept waiting for it to go a little higher and a little higher and a little higher and a little higher and a little and eventually doubled. And they
Speaker 4:
8:56
had so much more than they would ever spend and 20 alive. But the, he kept wanting to go further and up. This gentleman went to my church and it has started down and I said, guys, I would at least saw half of the cause. You can still guarantee a great life, but they were anchored to the high watermark of this, of the Enron stock, and they never transferred any shares in, never opened an account, never executed on the plan, and an Enron went to zero. They lost their job, they lost 401k the loss or health care benefits. And I'm about three years later, our church, he comes up to me, says Ron, every time I see you, I think, why did we listen to your advice? And I'm sitting there thinking, I wish I were better at convincing you. You know, 99% of the people from Enron, we did have great outcomes for.
Speaker 4:
9:42
But man, that's a story to this day. It's like, I wish I were better at convincing him to take those chips off the table. All right. I think it's interesting as we talk with a lot of families and what are they doing? They're working so hard throughout their life. They're building their retirement amount, but it's, when do you pull the trigger? When do you actually look at it? And I think this is what's so interesting is, is you know, those are great success stories, but not everyone's in the same boat or they don't go sit and talk at dinner at night. They don't go have dinner at home and they're grilling out and oh, let's talk about our finances on when are we going to retire? Do we have enough? How much are we going to spend? But sitting down and having that conversation is so helpful.
Speaker 4:
10:20
I mean, just give you a recent story that's happened. So we have a family we've worked with for a couple of years. We help them do a plan. Um, he ended up having an event with his work where they had a nice payout and he said to, Hey, I've got enough to retire, but I don't know if I can because he's a mid fifties. He said, I don't know what I'm going to do the whole time. So what we said is go find something else to do. So we found something else to do. Unfortunately, uh, things didn't work out with that came back to us and said, okay, now I really do want to retire. What does that look like? And so we're able to put together what a paycheck strategy is out of their portfolio. And they feel very comfortable there maybe not going to spend quite as much as they thought they were going to before, but they had a plan in place because the plan changes over time.
Speaker 4:
11:07
They're not desk collectors. You don't go put them in the corner of your house at home and let them sit there. And one of the worst things you can do is pull the trigger too soon and not be able to get the benefits and the job back. So, you know, this is something you can't take lightly. And so my question is, are you getting just one piece of the retirement puzzle? Are there gaping holes in your plan that could cost you not only thousands of dollars, but the ability to really enjoy a financially secure retirement? And the answer could be yes, she could be a lot you could do and you're not doing. Getting a second opinion to make sure you're covered all your byte basis and you're doing everything you can to avoid making those huge financial mistakes. It's only going to benefit one person that's going to be you, the ones you love. There's no downside risk. If you want to have that conversation with us, we'd be to look over
Speaker 3:
11:54
your shoulder to help ensure you are on the right track and we are good at what we do. We can help your money go further and retirement and are living in retirement master plan. This plan addresses a key components we're talking about in today's show. It could help you avoid making expensive financial mistakes and also how you can make the most out of every dollar that you've saved. It won't cost you a dime. You've got nothing to lose. Give us a call. (888) 419-8513 that's eight 88419008513 (888) 419-8513 it is possible you could retire and or be financially secure way before you thought, just like Bob and Mary and their example and we're going to talk more about the remaining six steps so you can maximize your financial security and how soon you can enjoy it.
Speaker 5:
12:51
He's a
Speaker 2:
12:52
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.
Speaker 3:
13:06
Welcome back. I'm Ron Carson and thanks for joining us today and wealth from wisdom radio here with my cohost Paul West. Have you ever mumbled to yourself, I'll never be financially secure or able to retire or I'll just have to work for the rest of my life? If you have, you're not alone. According to a study by Forbes, over a third of all Americans guns
Speaker 4:
13:25
don't believe they'll ever have enough money to retire. I'm that. That is sad. Most people do. Just got to make some adjustments and as we talked about in the first segment, you have to have a plan. It's possible you could have retired now, you could have maybe even retired a few years ago. We're going to continue through our seven step process. Paul and we covered, you know, plan. Having a plan is very, very, it's critical. You just shared a stat. Less than 10% of the people actually have one. But the next is once you have a plan, the next biggie is really having a plan match your risk tolerance level. Um, we see people taking on way more risk than is even appropriate. I'm going to go back to the Bob and Mary clients from Enron. You know, they were basically had all their eggs in one basket and it turned out well because we got out at the right time.
Speaker 4:
14:15
But if you want to get rich, you can concentrate. You want to stay rich, you diversify. It's guru. Good rule of thumb that we live by. But getting the risk budget right is critical. Yeah. And I think a lot of it for people is, is they want to, they hear their neighbors had at a backyard barbecue talking about, oh, I got x percent return or white percent return. It doesn't matter. Only only return that matters is your personalized one that's tied to your own game plan. And what I think's interesting, Ron, is because we think about those people out, financial plans, 86% of them with a planned spend less than their income. So, and I think that's an important because they know what they need to do. They actually have a number. It's not a guessing game and neither should you be. You're guessing game on how much risk to take with the market.
Speaker 4:
14:59
You've worked so hard in your life and let's say you have $1 million, $2 million, whatever your number is. So if you went from $1 million to $800,000 versus you went from $1 million to one point $2 million, which one are you going to have more emotion about going down? Because you hate that feeling. You don't want that to happen. You're going to stay up at night a lot more than you are. Uh, the joy and benefit of going to 1.2, and that's why a lot of people build what we call our irreplaceable capital approach, is let us help protect the downside first as part of a plan and then we'll let the advance the upside take care of it so it or have strategies that are agnostic. They don't care what the market does, right? That's there. They're designed to generate positive returns in any environment. I'm curious, Paul, when you think about a lot of people out there, look at the Dow or the s and P as an index that they follow, what's the one index that you care about most?
Speaker 4:
15:51
Their family index number. I mean there you personally, it would be the West family and exactly right. It's the Carson family index and for all of you out there is, it's all noise. It really, it's about outcomes based planning. What are your goals and objectives? If your last name Smith, the only index it matters in the world was a Smith family index. And so getting it matched to you so your team knows exactly what the bogey is. That way you don't get emotional when you have volatility or you don't reach and take on more risks. It's not appropriate for what you're trying to accomplish. The third, the third step, so having a plan, appropriate risk level, then it is get your spouse involved. Man Almighty. This was one of those. It's a biggie because you have all the confidence in a team and then all of a sudden something happens to the person responsible in the family and then the, the surviving spouse is just thrown into it and it's very overwhelming and so you want to have them also start building.
Speaker 4:
16:49
Okay. How many years you've been working with advisor? Today's the first day of the rest of your life. Get them involved in the finances at a level that is something were to happen to you. Your spouse would be comfortable with the plan that's in place and the team that's in place. Yeah, I mean we, we work with this all the time. I mean, as we think about it, it's okay to have one spouse who takes the leadership of the financial situation. It's not okay though for both of you not to have that conversation and for both of you're not to have the comfort if something would happen to either one of you, who's your go purse, goto person to help out. Because a lot of times around we get phone calls in to this radio show and from clients across the nation saying, I'm going to figure this out and and do this and then my other, my spouse will come in and meet you at the last second or, or I make all these decisions.
Speaker 4:
17:35
Yeah. Which is even worse. Siloed. Yes. Because then if they're not here, that trust has to be developed. It doesn't mean they have to know everything, but I think is important is you need to work with an advisor and a team who can speak in language common to each spouse. So one, you may want all the details and that's good. And we as an advisor will spend time explaining it to you, but the other spouse may want to know who do I call and are they going to be able to help me if that time is necessary. So it makes me think of a family around the joint. US recently and again, a dominant person that knew all the details, but it was having dinner with the spouse and sitting down and making sure they were very comfortable with our team and our process. They, they really didn't even know the total amount of wealth that their family had, but they know who to call at that point in time because her comment to me was so interesting today, Ron is, she said, we've worked our whole life and now we're retired. Our retirement was always coming. Our paychecks were coming from our employers. Now our paycheck is coming from our own account, so I feel like I got to pay myself now to live. She said, that's scary, but, but you laid it out for me. Here's how much money I need to take out of my account per month to keep living the way I want to and I can do that. You just made me
Speaker 3:
18:51
Oh really good. Well, and I, you and I both have been on the other side of that where someone comes in, normally it with children, if they have children because they know nothing about what's called the patriarch or the matriarch of the family was doing, they, they were in charge sometimes they weren't very inclusive of what was going on. It's terrifying for a lot of times. The kids aren't even local, so they've got to come in, they got to do the best they can. They understand that their, their mother or father is very emotional, you know, about going through a tough time and throw all the anxiety on top of that. Uh, whereas everything out, how's that operate. And fortunately we've done a really good job of really encouraging our clients to get the other one involved. The nondominant one, let's call it on financial because very rarely is it truly 50, 50, and also include the children is soon as possible.
Speaker 3:
19:42
In what you're doing, what the overall game plan is. Um, and I know that my, my parents had done that with my sister and I, and it was nice just knowing and, and, and even Janie's parents have done the same but there's a lot of clients and you know, the older clients, they don't want to bring them in. They don't want to share. It's really, I think that's a big miss, you know, really sharing what's, what's going on with the family. Uh, then number four, so we've got, you know, first develop the plan to what your risk budget or your family index. Number three, really get the non dominant spouse involved in this. Um, and then develop an income strategy. I mean this is a hoe. You just touched on it a minute ago. It's a hard concept because you've been at accumulation your entire life. Now all of a sudden, I don't care how much money has, I remember the first mega wealthy client I had, they had 60 some million dollars. I mean this is, I know a huge number, but she had anxiety over cause they've been in accumulation mode. How are we actually going to live on this? I go, are you kidding me? That much money? She goes, no, I mean, how does it like work? Because none of these stocks
Speaker 4:
20:49
pay any dividends. I'm like, I get it. It's like you don't even, you can't even conceive how that works. Like how would I get income off of this? And so it was a really real fear, even though they had so much wealth that most people are gonna look at that and say that was a silly question. It was real to her. Um, and then we work through how to operate and that, you know, what was great about that we're able to wall off enough and the rest of it, they're given to charity. So they're very conscious and thoughtful about, about being charitable minded. Yeah. Once they're taken care of. So, well we have to do though Ranez is in situations much smaller than terms of wealth. It is, we can help people to take the guesswork out of it. And that's what you're helping her do is so I see so many people come in here and they know their expenses.
Speaker 4:
21:36
Usually much closer to the penny. Then they know their income, which I think is actually very interesting. So what we have to help people look at, and by the way, most of the time they come in and it's on a yellow pad and you know what they don't get right most of the time is they don't account for taxes. Yes. They just know how much do they need to spend and was like Uncle Sam takes a big chunk of that. Yup. And so it was interesting is once you get into retirement, your expenses level actually tend to go up a little bit and people are like, what? How does that happen? Well a couple of reasons. One is you have more free time and when you have more free time, what has happened. You want to go on trips or you want to do stuff. The second is what happens when you're bored?
Speaker 4:
22:14
You got to do something. Sometimes you tend to spend more on Amazon. Prime was ordered something yesterday. I didn't need it on Amazon prime, we love you. You're a top customer. No, I love getting a bike every day. It's like Easter. I go home and there's a, there's a delivery or maybe it's Christmas, you know at the door from Amazon, the imagine if now you know what those expenses are. But you have an itemized plan every single month showing you exactly what your income is. And by the way, what your income is related to taxes. And I know we're going to talk about that later on, but it is such an important point to see. I'm exactly what it's going to happen there. And it makes me think about, you're always going to have what we like to call life's trade off decisions. You're going to get them.
Speaker 4:
22:58
And so your retirement one, do I travel more? Do I travel less? Do I spend more, I spend less? Do I take my grandkids with me or not? And what's fun is when you actually have a plan in place, you can make those with confidence. Yes. And you're not guessing, you're not guessing. How often do we see people even in our own profession that have made a random series of decisions without a thoughtful plan? Can you imagine trying to win a football game or just randomly going to go out and just do whatever? No, there's a game plan now. It gets adjusted is a game goes on, but it's silly just to wing it. Our advisors work with all kinds of people here at the car sink rope, and some have modest means. Some are very wealthy, but the common theme, many of our high net worth clients is that they want to know how to optimize the social security
Speaker 3:
23:46
benefits. If you think about it, over the last several decades, you've contributed hundreds of thousands of dollars social security. Some cases even more than that, even if you've made a modest income, you've at least contributed, you know, six figures, the sole security, that's a lot of money, but claiming your benefits is complicated and it's riddled with all kinds of potential trap doors. We see him here at the Carson group all the time. You make one simple mistake could easily cost you tens of thousands, if not hundreds of thousands of dollars. We have a customized report on social security to help you get every nickel of your benefits. It'll show you precisely how and when to claim the benefits. Also, if you're eligible for additional benefits and plus how you can potentially pay a lot less taxes. We talked about taxes second ago, and this won't cost you a dime. Be One of the first callers to get this customized analysis at (888) 419-8513 that's (888) 419-8513 (888) 419-8513 I'm Ron Carson. You're here with Paul Weiss and you're listening to wealth. Yeah.
Speaker 6:
24:53
Oh, it's done.
Speaker 2:
25:02
Is it possible you could pay fewer taxes in retirement and keep this money for yourself? You could learn right here and right now. Unwell from wisdom with Barron's hall of Fame Advisor Ron Carson. Welcome back.
Speaker 3:
25:15
I'm Ryan's Carson and you're listening to wealth from wisdom with my cohost Paul West. You wish you could retire now or feel financially secure. Put another way. Do you wish? Do you wish it could be done with doing things you have to do versus things you love to do? We'll call that the rat race. It's possible. You're in a position to walk away now and live your life by design, not by default. You may be convinced that you have to work the rest of your life, but if you knew more about how to make better, smarter decisions, you could start living the life now that you've dreamed of and don't let anything hold you back. We're going through the seven steps. What you need to do specifically to prepare yourself and to maximize your financially secure retirement. We've talked about Paul having the plan. Number two, the fact that you need to really have a risk budget or your family index.
Speaker 3:
26:07
For example, the Carson family and docs, the Smith family index. Three, get on the same page as your spouse. Make sure you all understand that you feel uncomfortable with the team for develop an income strategy. Really important today, especially where we're rates are so low and and don't get sucked into buying something. I'll high dividend. Uh, we saw someone run their portfolio to zero trying to do that. So we have to have a thoughtful income strategy. And then five, well, we're going to talk about now is optimizing social security benefits. And this is a stat that shocks me. Paul is claiming benefits become so
Speaker 4:
26:44
complicated that according to the Center for retirement research at Boston College, as much as, hold on to your hat here, $10 billion in benefits go unclaimed every year. $10 billion. That's an enormous amount of money. And until we really, I dunno, 10 years ago, got into really using software to optimize all the decisions. I wouldn't have believed it. I always thought there you're going to social security office, you sit down, there's a couple of choices. You take a or B and it's that simple and nothing could be further further from the truth. So optimizing this as a big deal. Billion. That's, that's, that's just fascinating. Anyway, Ron, but now that I hear you say that, it makes me think about when people come in and we give them a second opinion and the people that have already pulled the trigger on social security, how many of them that we look at?
Speaker 4:
27:38
And I said, you nailed it. You did it dead perfectly. Very few or few. Yeah, it's probably no different than most people. You only hear the big success stories. You don't hear the mistake mistakes people encountered. The thing with social security is I want you to, once you make the decision, it's most likely finite at that point in time, depending on all the new scenarios, especially what changed over the last couple of years of file and suspend. So now this decision even becomes more important. And I know the big thing for a lot of you listening today is you don't. You want to make sure you don't lose the money. You want to make sure that you get it, but as you wait one year or two years or file differently, it can have a material impact on your lives and we're talking hundreds of thousands of dollars for you if you don't make that right decision.
Speaker 4:
28:27
I wonder how many of our listeners right now are going, okay, $10 billion go unclaimed every year, but that's the right thing to do because our country needs it. How many of you take your saying your hands. Okay, not one hand went up because you don't want to. I mean you've, and that's the thing that shocked me in my 36 year career is it doesn't matter how much money you have, you want to get back what you paid into that. So we've talked about that on other segments and other shows by the way, you go to iTunes and you can get a podcast if you like. Wealth from wisdom to all of the past shows that we actually had. So we've, we've, we've touched on that a lot. So it's, it's a biggie. You can have an analysis, you can figure out what it is. Then the next one here is number six is create a strategy to pay a minimal amount of taxes. How do you structure those accounts to minimize taxes? Going back to the plan, but the plan isn't static because tax rates change, rules change, assets held in different kinds of accounts change. So there needs to be an updated thought. Be Thoughtful, be intentional about when you take what you take it and what else is going on. And
Speaker 3:
29:42
how to maximize that. And you may think, well, is it worth all that effort is sure is because they can make the difference in 10 or 15 maybe 20% and less taxes if you're thinking
Speaker 4:
29:53
this through thoroughly. Yeah, right. I couldn't agree with you more and which accounts you're pulling from. So you may say, Hey, I've got x amount and one account, but it's a taxed unprotected account. The other one may not be. So you've got to think through it. And I think, I want you to think about Ron too, as part of your taxes is people think about bonds and how to bonds affect my taxes. What do I do? Should I be in corporate bonds or should I be a municipal? Well, somebody's got to look at your after tax return and that's so critical. So I'm guessing a lot of people on the phone or in what I would call traditional diversified portfolios, right? 60 40 year, whatever it may be. But if you're in bonds and you're in a bond fund, I hope you call us in our hope.
Speaker 4:
30:34
You talked to your advisor about that because of not only what can happen but the taxes potentials associated with that that you may have no idea that could impact you, especially in this rising interest rate environment. And that's not the point of today's show, Ron. But I think it's important for us to look at with what everyone does. I also think what's interesting is, and we just heard this, I mean super reason like this morning when you were talking is so they think now the tax reform is going to take longer than the healthcare reform. So a lot of you out there sitting and waiting, I'm not going to make changes to my estate plan because of I'm going to see what's going to happen with the tax situation. Or you're saying, I'd better hurry up and do something before the tax situation changes. This may take some time folks. So waiting is the worst thing you can do. You can make a as adjustments to your estate plan. So many people think, okay, once I go do it, it's done and over with. That's not the case because taxes may change. You can develop strategies to help yourself out with that. Uh, and I think that's an important thing for all of our listeners to hear today. It absolutely. Yeah, I mean, again, taxes, taxes, taxes
Speaker 3:
31:39
or a huge deal and there's a lot that can be done around this. Um, the other thing we see too is people holding the wrong assets on the wrong thing or they're giving money away and they're giving cash away versus, you know, stocked it has a low cost basis in it. And there's a lot of things that can be done that, that dramatically lower the amount of taxes that you're going to pay. One of the things too, and I've got a couple of books out, one sustainable edge ones avalanche. Uh, you can get them on Amazon, but we'd love for you to give us a call. We'd be more than happy to give you a copy. They have the blueprinting process in the this, and I think this comes back to going back with a plan is we talk about living your life by design, not by default.
Speaker 3:
32:22
And that's why we have, um, the, the wealth design life defined process. It's a very specific process that we and all of our partners across the country really follow because we believe that really digging deep and understanding, you know, what it is, what you value, what the things that you love to do. It's a tragedy to go through and spend life without those. I had a client who ended up selling his company later in life and he was miserable. I mean, he, he accumulate a lot of money, but he could have, he could have lived that life 15 or 20 years earlier. And that's also a Strat, a tragedy. So have a strategy about what's really important to you. And I don't want to get too philosophical here, but it is, I mean, you're going to go to the end and work backwards when you get to the end of your life.
Speaker 3:
33:15
You know, one of the things we talk about, true wealth, all that we have that money can't buy at death, can't take away. When you get to the end, you want to be able to say, I'm glad I did. Not that I wish I had. Think about that statement. True wealth. Money is a tool to help you get what you want out of your life. Money is not your life. It's a tool. When you're gone, it's going to do you absolutely no good whatsoever. So be planning for what you can do, how you can do it, how you can live a financially secure life. Now, how would you feel if you drove to work Monday morning? Not because you had to, not because you needed a paycheck, but because you truly want it to. I feel so blessed. My profession is my passion. Every time, every minute I'm doing this.
Speaker 3:
34:02
I love it. Imagine the power and the confidence that will come from having choice. Imagine the freedom that we give you. If you could be financially secure, I he retire sooner than you ever thought possible. The answer could be yes. Let us prove how we can help with our seven step wealth designed life defined process. This plan addresses everything we've talked about today. It'll help you avoid making a bad financial mistake. It also help you get every penny, maximize the return. Every penny that you have, there's nothing. This will not cost you anything. You have nothing to lose. Give us a call. (888) 419-8513 (888) 419-8513 one small discovery could literally save you thousands of dollars, possibly more. 888-FOUR-198Y-45
Speaker 2:
34:52
13 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. Welcome back. I'm Ron Carson and you're listening. Learning
Speaker 3:
35:09
to wealth from wisdom with my cohost, Paul West today. How would you feel if you'll learn that you could retire now, be financially secure now? How would that change your life? How would you continue to work? What would you do if you had total financial freedom? Would you call it quits? We just spend time traveling, playing golf, enjoying time with your family and friends. The truth is, I think most people are a lot closer than they know. There's a few things you should know. Today we're covering said seven steps
Speaker 4:
35:39
that are an action plan that can help you not only get retired, but stay retired in a standard of living which you've grown accustom. A quick summary is having a plan. Number two, matching your risk budget. You're taught risk tolerance. Level three, having your spouse and partner on the same page as you for develop an income strategy, making sure you're thoughtful, intentional about that. Uh, five, have a strategy to optimize social security benefits. More than 10 billion benefits. Go unclaimed beach here. Find that mind boggling. Create a strategy. Number six, around paying minimal taxes and retirement. And the last step is create a strategy. Withdraw money from your IRA and 401k. And Paul, this was one of those areas where people don't put nearly enough thought into this. And also even the assets that they're holding in some of the, sometimes they're already holding and I ran them.
Speaker 4:
36:27
They put it into a tax deferred annuity. I've even seen people come in with municipal bonds, which makes absolutely no sense inside of a retirement plan. Yeah, it is just interesting to watch that. And for a lot of you, if you spent your life building your far one, can you put an Ira for all the additional options or benefits you may get with it? It's figuring out the right plan and I think one of the first things we often ask people around is, okay, now that I'm getting a paycheck out of my ira to live off of, are you a saver? Are you a spender or how do I really mean that if you've got extra money in your bank account and your wallet does it disappear quickly and you don't even know how it disappeared, whether it's two lattes or an extra trip. So actually one of the things we sit down and we asked that question, Ron, is a planner, is if you are one or the other, that's okay.
Speaker 4:
37:13
We're all different, right? We all have our own personalities, but that's going to help us choose should we pay you out of your paycheck and sends you money into your bank account via ACH on a monthly basis, on a quarterly, on a semi. Annually we do it so it's right for you and your family because some of you like the feeling of getting that monthly. Some of you say, Hey, I don't want it very much because I want to keep minimal cash in my account, so therefore send it to me quarterly or semiannually. Your advisor needs to build the right plan for you, not for them. In this situation, and one of the things we I would do when people would come in and say, I have no idea what I spent, and they didn't really want to give the expense as a good rule of thumb is what'd you have for cash in your account a year ago?
Speaker 4:
37:53
What do you have today? Did your cash balance go up? Did it go down? That's a quick rule of thumb to Sandra. You're overspending your income. It's awful to get towards the end of your life and not have nearly enough resources in order to defend your income. One of the things we're talking about, the number one step here, the thing that is the most important in all of this is having a plan. You share that less than 10% of the people actually have a plan. And I ask why. We don't know why, but my guess is people are afraid of making a bad decision or hiring, you know, a team that's not committed to putting their interests ahead of their own, which I get, I mean Wall Street's been full of that for most of my career and we give very specifics as to who you should look for on a team. And there's minimums. You'll being
Speaker 3:
38:36
a fiduciary, having a CPA, a CFP and attorney, um, a CFA at a minimum on staff. Those are, those were table stakes to make sure, but the author is just making sure that I be of all organizations are a reflection of the leadership of those organizations. And we've talked about on wealth from wisdom, a lot of the bad stuff going on on Wall Street, we want you to be aware of it cause I think it's important to understand the firms that you're doing business with. We've talked about Merrill Lynch, we talked about Morgan Stanley, um, this week, either that today, just this week, matter of fact, uh, the feds order wells Fargo to pay a five point $4 million to an to an ex wells Fargo wealth manager then figure federal regulators announced the largest whistle bro Blower award believed to be related to the wells Fargo fraudulent account scandal and what they did to this person.
Speaker 3:
39:35
Um, they went in and three weeks before this person's termination, they, uh, she had called the company's ethnic line to report that the bankers were under under her supervision in this and California. We're opening client accounts without their permission to meet sales goals. This was almost exactly five years before regulators fined the bank for opening millions of accounts nationwide on behalf of unsuspecting clients. Then what they did is they alleged all kinds of things that this person was doing. Um, that you know, that were, were untrue and Osha went on with a decision, a 78 page decision, just how she had had detailed accounts of new client accounts. Also there was 20 pages of uh, commendations that wells Fargo had awarded this person over a six year period before all of a sudden she reports what's going on and thank, thank you. I mean it's nice that she actually was vindicated.
Speaker 3:
40:37
It looks like they're also going to be forced to giving her her position back. But you just, you look at organizations, you'd think what the heck is going on? And you could argue well the very top that no in my view, either the top, they don't know or they know either one is really bad if you don't know what's going on and, and it's bad and if you know it's just as bad, right? Ignorance of the law is no excuse not to follow the law. The same thing's true with an organization. If you're that big, maybe your organization should be smaller so you really have a feel for what's going on beneath the surface. And you've heard us use on the show, the, the term fiduciary acting in a client's best interest of your own around you've been in business 36 years, mine 20 and I just, I can't believe people just don't have the ethical belief that if you always put your clients' best interest first, everything's always going to work out. Because if people are happy with what you're doing and they know that you're treating them well and you're always thinking out for them
Speaker 4:
41:34
and their family and next number, et Cetera, they're gonna tell their friends because they're going to say what great of experience. And ultimately it's about the inherent trust. When I hear stories like you just said there, I don't, I want to run away the other direction from those types of institutions because I don't have a trust and if they're going to do that to those people. Am I just a number in a system versus a
Speaker 3:
41:53
well, and Paul are from just one a week ago today in New York, the innovators award word and I got a chance I, I sit on a board with John Bogle, but he was actually recognized as an icon of our profession and I got a chance to have a great conversation with Jack. Here's a guy you love because he truly, his whole life's mission is as fighting the fight for the consumer, making sure that they're protected or trying to make sure having policies in place that benefit the consumer. And that's what we're about. I mean, we're about that at the cars aren't group and we would, we would love for you to be more aware of things like this. We talked a couple of weeks ago about Merrill Lynch charge an additional 6% that wasn't disclosed to anybody. The advisors that weren't even aware that they were, that they were charging it, which brings up the question is, are you blow blindly trusting your financial advisor?
Speaker 3:
42:46
If you could be on are? You talked about bond mutual funds a minute ago, you could be owning these things that have all kinds of hidden fees, backdoor payments, and over a period of time it could cost you a few hundred dollars or tens of thousands of dollars and that thought stuff compounds and the earlier you catch it, the bigger benefit you're going to have by doing something about it. Do you really know what you're paying? Do you know how bad it really is? These are questions you should truly know. We can tell you if you've put a bond or Bob Pond, did you pay a markup in addition to a commission? You, we can tell you he's really need to understand that. We'll show you exactly what it is and what you're paying. It's quick. It's easy. It won't cost you a dime count on straightforward, objective advice, and what we do is we make the complex simple.
Speaker 3:
43:34
We have an effective game plan. We're all about transparency on fees and costs and we've talked to people and advice and a common language that they understand. If you would like this straightforward advice and understand what you're paying, give us a call. Eight eight eight 409 to 85 13 that's (888) 419-8513 (888) 419-8513 today has been an interesting seven steps to make sure that you can be financially secure. Don't like the term retirement and hope you enjoy the show. I'll see you next week. Enjoy. Thank you Paul for being on it. I'm Ron Carson and you're listening to wealth from wisdom
Speaker 7:
44:11
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:
44:25
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 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 in 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.
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