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KJCE 1370AM>Audio on Demand>>Retire, Set, Go! Podcast 07/27/14

Retire, Set, Go! Podcast 07/27/14

Jul 27, 2014|

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Automatically Generated Transcript (may not be 100% accurate)

Commentary contains opinions and analysis that are provided machines open for informational purposes only. And should not be used the primary basis for investment decision. Please consider your individual investment objectives and results as before making investment decisions Donald strategies discussed may be suitable for all. Securities advisory services offered through BS our financial services are registered investment advisor member advice in RA MS IPC. Gentlemen -- while Pelosi is not owned or controlled ideas are financial services it. -- our financial services think is not affiliated with -- -- -- and yeah. And. It's died or retired sick. With your host certified financial planners chains sold -- Life doesn't stop at retirement. Change will guide you in making informed decisions about retirement investments maximizing Social Security field. Protecting your family and harder to this day. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- This is not the show based on academics are just theory. We actually have a practice here in Austin and in south Texas. Or we work with retirees and for nineteen years we've been crafting plans. To help folks with this unique stage a life. It is. Quite unique one Italian night I talked to these retires on the day to day basis and frankly I'm jealous chain. I don't I don't know what dominant day for the next forty or so years in my life but. I'm looking forward to that that start lines. Well that's an but you know what that comes a lot of fear there's no question there's a lot of advice -- a good some of and that's exactly who we wanna talk about today we for nineteen years -- -- of the certified financial planner this is what we do we come up with strategies to help individuals. Maximize her in calm and avoid some silly mistakes and I include some slimmest and investments. The -- cause you take a pay cut retirement. Yeah and while you're there aircraft in those solutions -- -- we're there but crafting this solutions there are outside sources. That create problems that we have to overcome on a year to year basis. Tests now one -- court thinking about it a lot of them. The reason we came -- today's topic was based on your comment some occurred due. If you have if you have a question or thought and encourage good pick with phone 5127859876. That's 512. 7859876. We were -- your questions or concerns. Also can reach out who's bureau website -- -- set go again that's priest retire sect go dot com. There's put you up chooses this podcasters pot pot podcast. And put your -- to reach out with your questions or your thought we would hear about it also and think Mike. And Wesley and Barbara in -- query. My Camara both think you to listen to the show a lot of the questions we've been getting. Have dealt with just -- the challenges. Of. Retirement yeah and like I said there's there's always a new challenges seems come every year every month every decade for that matter. You know some of the common common challenges we hear from folks like Mike and Barbara. Our inflation what is inflation got to deal recently we've haven't seen -- so bad but. There's a lot of talk that that might be creeping up on us and that the value of that piece of paper in your -- to -- dollar. Might not -- he's so valuable next year. I'm I tell you that's that's funny I actually do the grocery shopping for my health and well -- that -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- It's not exactly -- sexy topic. But I will tell you -- member. Hearing that the and that was gonna make a lot of things cheaper for my life. But every time I go to the grocery store I noticed that it seems that things are more expensive get out there -- four dollars a gallon. The boxes cereal seems to be getting thinner and thinner and so it takes more of these little things called dollars' yeah the thing to do the same in my things. And it's tough because it's kind of one of those things that sneaks up on you need don't realize that until he sees something that jumps off the paper you know we all fill up our gas tank almost every day for that matter -- it sound so we don't notice this is because it's on our daily nature I tell you. The one thing that I've noticed in the last fattening. But Sandy's -- down on Barton springs bland when I left off to college that the Thursday Saturday special I think was around 279. That's quarter pounder Fries and drink red. I came back from school and working in another city after let's say seven years. It's up to over four dollars now. -- doesn't seem like a lot for a quarter pounder Fries and a drag but that is. You know close too close to a 50% jump over the course of seven years. I know exactly -- I feel I have been through a couple of those tractors and I think a lot of our clients have to. Whether -- Bret Meyer burger or -- health care or does the cost of everything. Seem to be going up. And it's kind of can -- -- by surprise especially if you still how some review where you where you police think the cost incurred. From a time in the path right near my dad comes to visit we're from small town south Texas when he comes to visit me. He just in all of the cost of everything especially if you wanna live. And a great city like Austin are -- -- like round rock like quake or a lot of our clients will share some of the sneaky things that a lot of our clients -- -- with and some of those questions. Some clients did. After -- they didn't directly after about inflation but the cost of retirement. And because people are living longer. There's there's there there are a lot of people who are worried I'll play a lot of our FEMA -- where about this more than amount client -- is that this video they're gonna live longer. Our mail clients and to be more concerned with taxes yes just just generically that's not that's a rough observation. But both of them are legitimate cause concerns won the cost of retiree is going up. I do plan on living longer. -- and there's a lot of our clients to -- fairly conservative in nature. They see what's going on in DC they feel that deficits there's threats to Social Security that's been underfunded. And they know the only way to fix the problem when you're you don't have it when you're in debt. Is a cut costs. Or be greater revenue. Or there is 13 and that's hyper inflation so what you can do it right you could do that in and that's something that he's he can do. But there's a lot of people concerned about the way that -- the site administration in Washington DC is managing the books right. And if there and it doesn't look like they're kind of group to let the cut costs so yeah a lot of our clients. Are genuinely afraid that the taxes. Which is a cost the retirement as well is gonna go up receive more more there's a security benefits. And that's not a year to year fear like -- we're talking about today today here we have no idea what does knuckle heads up their day on the set was that it were and a lot of would you vote for -- had to play every Jennifer every administration. It seems like I'm still paying more in taxes. And I have left confidence in world money's gone world knuckle heads not right tackle and right content now and then what are you supposed to do then you're left with so I have a lot of clients with get real right here in Austin. And as they look. I've -- amount of money I'm ready to retire. A lot of the questions dealt with what works I'm Beth might today right and and a lot of people are full of that and I give it back here it really they're boys. This is not just talking theoretical. Are two people who have. Theoretical opinions with both of -- and I don't know I really have managed to work my -- -- to get to this point. -- this much money. Where should I about it yeah and there's two big groups are taken down. Of course is the annuity group they're groups to say look stock market it's crazy it's a roller coaster will likely go white -- out. And -- to try to use the fear to have a -- approach at the fear button right the same look you can't make money in mutual funds or stocks you should go stick -- dog to have faith annuity and there are some pros and cons to that for sure yet. And on the other than a cornea of Wall Street Wall Street says look he should put your money in stocks bonds mutual funds that -- way to really make. What -- call long term wealth and there's a lot of good examples of where that's happened for a lot of people right but of course is true. There's no guarantees there. And so that's a big problem what are worried about is that people are getting to competing messages. But both of them how pros and cons and so that's what I really wanna talk about today what's going to go to break -- -- that if there was a third. My guys who don't like let's go -- way she's truly folks we're gonna go to commercial we come right back we're gonna take tackling some of these basic solutions -- here in about. Those make sure you understand what you're getting through. Retiring soon I think you have a number of critical decisions to make -- affect the rest of your life. Pension choices health insurance Social Security income strategies kick your answers and -- and started today. This is switching Sullivan at Belle haven well dot com. And tune in every weekend for retire said go here on talk thirteen seventy. Lots of money. Welcome back to retire should go. We exchange silver. -- -- Good afternoon folks thanks again for looking to another sort of retire that though I am in studio with Weston -- and. Here again sir I'm glad you're here we are we to take a lot of questions our courage if you have a question or. A concern or thought to a share with the show please give us a call 512785. 9876. You know west and I work. -- you know a lot of comments questions some of which came to our FaceBook page or retire check that you can find its allotted for ways. But there's a lot of people who are -- Brinkley just. Scared -- -- you have a ton of people doing seminars. Some of these folks have questions about some products that they heard about via one of these. Webinars are seminar there was talk of lunch and learn -- I think there's a lot of different waging get this information via. But I wanna help people understand there's two big messages that you're. A retiree here and often you're probably gonna hear one of these few messages -- both of which -- -- because the first. Is the insurance solution. Grace and I always -- laughed as you know we we talked to people obviously on day to day basis and -- people have gone the other seminars but I stars. And that a lot of time there's some sort of hidden motive behind these seminars -- whether they're trying to sell acts or why but there's no there's no. X point five solution in the middle so a lot of talk about one of those. -- approach is to your retirement planning which is annuities and I know we talked about annuities prior in the share the prison the cons and I'm gonna cut it short here you know really the pros with annuities is is she have a word guarantee. In your retirement life for a you know with the word guarantee you're usually gonna get a little less and come but it -- still have that guaranteed income so. You're gonna have income for life you're never gonna outlive that the downside is if you need lecture in town and one year another. It's going to be hard to get if not possible but I another thing I see as I mentioned earlier you're you're probably not gonna get as much in town because he do you have that word guaranteed and that. And then the last thing that I see with annuities. Is lots of times they're really aren't used correctly -- Shane we met with the guy. An individual this this past week. And he didn't need any extra income -- life but he was in an annuity. That made him a new ties that that was kind of his one option -- so he says -- I don't need this and come. But I have this product it's essentially making me take this encounter it and so you know that's that's obviously a concern of advisors you know with. Here -- haven well when. We see people being sold something frankly they don't need to be sold right. There -- a lot of good use gutters down the road thing to really remembers and concerns product. And annuities and insurance product and by virtue of being insurance. You have to understand what they're insuring against some risk. I think the two biggest mistakes with annuities are one. Some things ensure that you have income for life and ultimately look that's a benefit. They can't be overlooked now maybe now for all of your money but there's some merit to that. What I do see is there's a lot of people who bought these types of investment opinion that insurance premium but they're not taking any income. So there's no point in. Having an insurance product guarantees income for -- you're not if you don't need the incoming got to take it right it's like ensuring. Your car that you never -- yeah there's just no point -- if -- if it's not at risk because you're not gonna use that. And don't -- -- they're paying a premium to that would be an example where the Wall Street I would have been so let's talk -- a little bit the Wall Street guys that look you're paying for all this all these guarantees. You just go buy bonds. Or buy stocks or whatever it may be the Wall Street solution I think -- the -- now you come from. A predominately insurance background right but you've moved over to the middle. Where you can do about it I hear about say there right side. And I came from the there's no question that's where I started I started the big box brokerage world. And I've moved also to realize. You know there's a lot of merits to both sides of the story but I know want that either one of us were completely right. In these wants solutions a lot of problems with the stock market solution on the Wall Street solution. -- you're taking risk there's no question if you buy into the Wall Street idea there any kind of solution include they call it mutual fund the call -- -- There all fancy word for stocks. And with that does come some stocks ups and downs. The problem you know when I think about it and a lot of these things are sold based on average both -- the stock market average something like. 8910%. A year -- admit it doesn't matter but they're saying is -- average some greater return. The problem for the retire he is you need money not on average. I don't need an average of 50000 dollars -- I didn't exactly fifty grant it all right here on grant whatever -- number it. And know that the stock market is not gonna produce. Level rates of return it's not like 310101010. It's going to be some years twenty some years negative. There's no Santa Claus stock market wish list you can say you know I'd really like a 10% return this year right and so a lot of people I'm really really genuinely worried about that this is true pure. -- about to retire. A lot of people don't realize how lucky you can be. -- -- And I'm reminded what you have cousins that live in Hawaii nothing at all to that yet and I've gone snorkeling with my cousins and -- and to get to this the great snorkeling area yet to run down this lava rock jetty. And you can't run down these rocks and get the tying it just right for the waits. Get to the way it's come crashing on the day my first cousin runs off. Bounces into the water plots and he's -- I mean come on come on. Huge huge my second cousin run down -- -- avoid the first way it does in the water and we don't know Chapman air. When it comes chain tender foot ever run a lot of Iraq. But if you don't have a fence that you brought so -- Rendell there. I kind of got hurt a guy that's scared stutter step here comes the big wave and it -- you over the Iraq -- off my class ring. There is a terrible terrible -- of it. And a lot of people just don't realize that the -- to a stocks you can buy into all with the idea that you're gonna average some way to return. But a lot of that you could have retired in early ninety's right for the tech boom and everything went crazy the stock he just couldn't seem to lose right. Equally you might just retarded 2000. Where the market has done really it's. And be a tough decade devastating. For -- retirees who walked right to losing 40%. Only to what's to come back up. And walks of over the -- forget it did say there's little tender but there are the edge so I can see where some of the book. That it was no fun. I think it might go back and I'm gonna listen to discuss on the vehicle guaranteed whatever right and I just wanted I understand why both people. Are trying to because I was turning this way just like you share. And I heard the message but the reality is both of those solutions -- the pros and con great. And I'm really excited about people learning how to use to take the -- what gifts but why did I am proud of what we're trying to do. Until it let's go to break and we come back -- talk about hybrid solution. This takes the best of both of those solutions and try to get rid of some of the negative. This -- retire or go we'll be right back. Retiring soon I think you have a number of critical decisions to make double -- the rest of your life. -- choices health insurance Social Security income strategies -- your answers and -- started today. This of switching Sullivan at Belle haven wealth dot com. And tune in every weekend for retire said go. Here on talk thirteen seventy. Welcome back to retire said. Go which Jane Sullivan's. Once again -- shame. Good afternoon folks welcome back to -- retired thank god here in studio with western -- pay yell. We're talking about some of the solutions we're getting a lot of questions that deal with how should I invest my money we had some questions from. -- -- Gordon. And off then and his wife Linda both of them had come back from one of these workshops. They have a lot of questions as to pay this guy was trying to sell this strategy years. It seems like there's always mention -- there's no question there yuck and I thought that's -- militias that. Look I think people believe what they believe in Africa and I came from a world. A lot you'll understand that this world that we live in financially. Please use the vehicle Glass-Steagall -- came down and Glass-Steagall. Was an act does that look if you want to borrow money you what's your bank. If you want an insurance you and your insurance right yet you went to your due -- security -- what's your security guy right. Well they change cities that look that's not fair because each of those respective. Representatives was trying to educate yourself and those -- his guys are -- -- much uncertainly causes job. That's always doubted that are not nothing nothing. Wrong about that I guess but it's changed them -- better 2014 if we can allow it to this each of those individuals to do what's right for the client. Meaning that seeing the securities guy can July I'll just come on right well here that we can do what's best for client. But to do that we had to remove from the. So (%expletive) let me ask you this I mean I know that he did come from the record background and and and you solve their cheese and you know you put together great portfolios for people. -- but -- let me ask you this mean. Stock market averages. Nine to 10% the S&P that's what it's historically done but why -- so why do people lose money in the stock market. That's a very good question you'd think that if we've done it's done that since the nineteen hundreds. Averaging 10% that's the number they kick around I don't know how come we're not all rich because I know much farther my grandfather about father -- had an opportunity to get real concern over. The -- amid the number one rule when it comes with stocks is buy a low. Sell high exactly right and everybody knows look everybody who loses loses can be solved yet they sold out the worst possible time. And there's two big reasons why people -- One and fear clearly understandable. And they can try to talk up the lads but look when you're scared. And you've got like cure it's not just union -- it's your spouse and kids there's a lot of thought on the line yeah I don't -- if you -- in different. But the second big promise when you're retired you have to sell right -- forced to sell because -- -- eat. And so it's just so happens that that's one of the biggest drawbacks to the Wall Street solution. Is that they put together that the location strategies that. Require that part of your money's in -- stocks but they don't articulate will hold I know stocks are gonna do well every year. But I'm gonna take money out of -- yet some likely going to be selling at the worst time. Some of the time. Bright bright so that's I mean that's really why I know we've talked about this for hours on end. And we're gonna cut it short here but that's that's why we put together are you a safety first -- model here that valid and well then and really what it is. The whole concept behind it is is obviously you don't wanna sell your stocks from the -- -- so we've put a plan in place that. Does not require people to rely on the stock market year after year after year and day after day after day to eat dinner that night. Around you know the first piece is is foundational income now that this can simply be maximizing year pension finding ways to do that. Max minding your Social Security by a -- and one of the 81 Social Security strategies. And it may you know call hurt small annuity in your overall portfolio -- the point there's and we just want to make sure if the whole thing blows up at the stock market obviously does get it to you all time was right we want to make sure uniting -- they'd asked as -- talk about. Come. You know that the next piece there. Is is security. Maybe five to ten years of security and fixed. Like six fixed asset classes such as bonds a man now that's one of our favorite even though they're not -- analogue right now. It still something that doesn't do with the stock market so that's going to be reliable -- that she can count on. Tour you have eight income stream set up in place where you don't have to sell your stocks when they're left. Right so once you have your foundational piece employees and I want to know that we look at this dislike some of you might fall we have an emergency fund. You know you've got three to six months in an emergency fund. Then the next step is yet that the foundational and come. And then you're gonna have the next step to the next portfolio Phillips is this what we call it income portfolio and the last you're gonna have your risk. At the chair you don't want how you'd never wanna be in a position where I need money tomorrow. I have to take it from stock yet or any kind of risky I don't care what generous gift whether it be real estate. All of those types of of us with some of what's producing come -- don't. But they're considered left in predictable there risky right you wanna put them in a portfolio. Ten to fifteen years away from today. Position our component just give it personal example here aunts and make sure people do you understand it I mean if -- investor coming to you. And I said I've got to have this money back in six months where do you say happened that. -- I think it's clearly understandable decline can see what you see portfolio 123. If you're to have -- is -- the first grazer emergency fund filled. Is your income and if you need it back tomorrow or within a year or five years we're always put that somewhere safe that's always great place to put it. -- decline comes back and that this AA the money generally need for a minute 1015 years now. Then -- I think it nationally. Opens up the opportunity to consider stocks. Or other kind of riskier investments pray that -- Tend to do well as long do you give the time to do yeah that's exactly what we're trying to share with you. But there's a lot of solutions out there a lot of -- pros and cons I'm worried that there's these two world. That seemed to be fighting with one another. Both of them how good points Ambac. We're looking to help people find the a hybrid solution that takes the best of both worlds. If you -- yourself looking for a solution like that and encouraging give us a call or go to our website at retires that go we can find this podcast. Other articles -- learn more about the solution. We appreciate you being here today we're going to be -- every Sunday 1 o'clock. That you haven't got him. Commentary contains opinions and analysis that are provided machines open for informational purposes only. And should not be used the primary basis for investment decision. Please consider your individual investment objectives and risk tolerances before making investment decisions Donald strategies discussed may be suitable for all. Securities advisory services offered through BS our financial services are registered investment advisor member advice in RA MS IPC. Gentlemen and tell -- while Pelosi is not owned or controlled ideas are financial services it -- our financial -- think is not affiliated with -- -- -- and yeah.

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