Emotions and Finances

Financial Symphony
Saturday, November 18th

Discussion about 401K's versus Roth IRS, and the tyoes of emotions that drive your investment decisions.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

No financial center and helping you. Harmonious financial plan and getting your portfolio in two weeks so sit back while always strike up the the financial simple it's starts now. You're listening to the financial symphony and mark Haywood and I'm joined today is always by Richard through drilling. Is an investment advisors serving you what Carolina retirement resources in the Charlotte metro area with offices in hunter's bill. Rock kill basically if you can hear us he serves you. Coming in for a visit with team give him a call at 80646. 5996. That's 806465996. Richard how you doing the net I'm doing good mark carrier I'm doing all right it's good to hear from today and Richard is always like to kick to show off with some of listener questions from the New York questions out there in Charlotte you've written in and we'd like to be able to take some time to answer those those are important to also Richard won't kick the show off today. With a question from any in Fort Mill about family down that way and it. Any says most my 401K is invested in company stock does that man. Well you know employee stock purchase plans that allow you buy stock owner of the issues is good but to a point may end. And that I think it's a good idea to balance you're your company stock in relation to your total net worth. So oil dependent on how much you have been Sabin is a good balance would be about five to 10% of your savings and your employer's stock. Program. More than that could end up being a problem especially if the company you work for is not performing well in the market. You know remember Enron. We had Lehman Brothers I mean companies fail I think that's just the nature of business. And if your company fails and you have most of your savings in that company. Not only will you lose your paycheck and health benefits you'll lose your savings as well and your company matches. In company stock based on your your contribution. Scale that's certainly a good reason to buy company stock. If they match 5% in company stock for every 5% that you contribute. And your company is reasonably. Good company then that certainly I would take that match. And take advantage of a net. What they call net unrealized. Appreciation. Which is an investor rule that allows company stock appreciation to be taxed at a lower rate as capital gains not as ordinary income tax. Just another good reason to invest a portion of your savings and your own company. But you know holding a disproportionate amount of savings in one stock it's just not a good investment or accumulation plan. And it could be. Putting your statement that risk so. You know it's OK to have some exposure to your company stock but a better approach would be to diversify. Among different asset classes different sectors you know such as stocks bonds and index funds. Thanks to that question ending it sounds like that could be a good question to come in and get unpacked yourself with Richard nurture really. 401K is an important part of your overall financial plan it's important to know how to maximize them to their. Fullest potential so as always be blood come in and talk with Richard Moore about your specific situation. Given to those details are given call. Do so by calling 80646. 5996. That 806465996. Richard we got another good question here from Kevin and more is bill. Kevin says my employers said they're going to stop matching 401K contributions. In a few months McCall's they have to offset rising health insurance costs. If I'm not getting a match should I just stop contributing to my 401K and save money somewhere else here seem to. The common theme month a lot of men a major companies. You know they have suspended their 401K master over the years. With more likely to join them in the future so with that said the only advantage to continue each contributed to a 41 K. You know is the contribution limits you you can defer up to 181500. From your paycheck annually. And those have you aged fifty and older can save even more by making what's called a catch up contribution of 6000 a year. For a total contribution of 24500. And if you're adjusted gross income is less than a 189000. Dollars. You'll get a full tax deduction for back here. But if you're just a gross income is greater than a 189000. Then your ability to deduct your contribution begins to phase out. Listen if you don't like your 401K investment choices you could consider contributing to a lot higher rate the rock fire raise funding use an after tax dollars in gross tax free. And if you hold a rough diary for more than five years than the growth is also tax free. You can contribute up to 5500. Dollars to a Roth IRA or 6500 dollars if you're fifty years of age or older. And give yourself more investment options unfortunately contributions to a Roth IRA or phased out dependent on your income. In general you can contribute money to a Roth fiery next year. If you earn less than a 135000. In your signal less than a 1099000. If you're married and file jointly. Now now you're at least 59 and a half and your administrator allows for an in the service distribution. You can also rolled up 41 K pretax dollars to an RA or your after tax dollars to a rock fire rate. And this will provide you with the unlimited investment options that focus first and foremost on risk management. You know that's a big plus since no one can control for greater return but you certainly can't control the risk. And avoiding deep losses is key to accumulating assets for an in retirement. Finally. Kevin you could consider get in the new drop you know after all matching contributions are a form of compensation. So by eliminating the 41 K match. You know your employer has effectively cut your pet day it may also be a sign of things to come since eliminating the match may be in response to financial difficulties that could lead to lay offs. Or less salary increases down the road. So that's something that you want a factory in on your decision is well. Obviously the best thing to do Cavendish to meet within advisor get a comprehensive financial review and consider all your options. Couple 1041 K questions from Kevin and any like Richard says best thing to do meet with an advisor get a personalized look at your unique situation. Kevin your situations different for Manny is any your situation is different from a lot of other folks out there poured in to meet with the specialists like Richard culturally. And the team Carolina retirement resources. Can call 806465996. That's 80646. 5996. For one more richer and mark in Iraq kill. Good to see another mark out there in the world mark says I'm reading that inflation could be a problem soon. Do you think that inflation is something I should be concerned about what can I do to protect my purchasing power now that I'm retired bring us when inflation is so. We knew we eat we should all pay attention to hunt you know inflation or something and unfortunately that most but you likely aren't thinking about on a regular basis but it always has significant influence on not your financial lives. True economic inflation mark is defined as the increase in the money supply in excess of well output. In other words the supply of money exceeds the supply of goods. And since the Great Recession and central banks have printed over fifteen trillion. In paper currencies out of thin air globally. He also eventually the price of goods must go higher in my opinion we're getting closer to those moves higher. In fact we're seeing price increase is already occurring global stock and real estate crisis. And also the global economic system has a has reached a tipping point. And price inflation combined with severely negative real interest rates to go to functions as precious metals rocket fuel. So diverse finds some of your retirement savings of precious metals. We'll protect your person power in the future you know currently commodities and precious metals are undervalued. Relative to the Dow. In fact if you go back to 1917. There were only two prior periods when commodities were extremely undervalued vs the Dow. That was the late 1920s. And early 1930s. And Doran the 1960s as well both of those times the US dollar were significantly devalued version of gold. In November 1934. Franklin del more Roosevelt re value the price of gold by 75%. Vs the dollar. With gold going from twenty dollars an ounce to 35 dollars an ounce. The market forced the devaluation of the dollar purse is gold after Nixon disconnected gold from the dollar in 1971. You know since 1971. The dollar has lost 80% of its purchase and power vs veterinary basket of goods. In 1971. It took 35 dollars to buy one ounce of gold. Today it takes 12171. Dollars to buy one ounce of gold. That's a 97%. Decline in purchase and power of the dollar purse is goal. And here's the funny thing about dollars eventual fall to zero. That last few percentage points before Fiat currency completes its collapse. Usually produces the biggest nominal price rise in gold just look at warmer Germany as an example you know in 1920 to January of nineteen Tony to an ounce of gold would work 1000 German marks. By November 1923. When the market collapsed. An ounce of gold was worth 100 trillion marks. There are however some negative effects of devaluations especially for retirees on fixed income. So be prepared for that possibly. Rudy is very very important. Because of inflation you'll always need an every crease and income in retirement to maintain your purchasing power especially if you live twenty to thirty years to retirement. You know on an individual level the inflation rate affects how much to retirement dollar for work. Over time we can take a serious bite out of your savings. Understand how inflation may hurt your retirement strategy. Is a must fur sure you have enough assets the last three years in retirement. Anderson why am passionate about ensuring that your well prepared come off on a couple Marie financial review to anyone who called the next fifteen minutes. And has at least 200000 dollars saved for retirement. I'll talk about your retirement income needs where that income is going to come from and how he'll outpace inflation pay as little as possible taxes. And make sure that you don't outlive your money. I you might say I really don't have to call next fifteen minutes and yes it's true he could probably take care of it next week or even next month. But here's the deal. I think coaching people on retirement plan for a long time and I've learned that it's really easy to procrastinate or get distracted. So if you don't start to process now there's a very good chance that you're not gonna do it at all. So the first coach and then I'm gonna give you is to encourage you take that first step right now. For almost everybody that's the hardest part from there it's not a painful process so you're ready to finally get a plan in place go and give us a call right now. That number call is 806465996. 806465996. Great questions today we love getting your questions. Come in for a visit with Richard in the team Carolina retirement resources get more specific answers to your questions about retirement. You call 80646. 5996. That's 80646. 5996. There's a great way to get personalized answers to your questions and your needs for your retirement. Get the team or call 806465996. That's 806465996. More to come home up financials and. Stroud played. This is fun it's simply time now sport in the news where we unpacked current events and how they affect you. Potentially your retirement. And Richard and I we like to typically stay out of politics but sometimes politics and finance collide. This week's news you know there's been a lot of talk recently about how to pay for the tax cuts that the trump administration wants. One proposal was lowering the amount up I found this inch thing lowering the amount that people are allowed to contribute to 401 k.s. Why. Do they think this would help to start with and then do you think it's good idea well. Let's just forget the novel idea of tune cutting taxes for you've cut spending as well if you do that and it's not a problem but let's get back to your question. Hum the reason why some economists I think. Well I think that cap and 401K contributions. They think it's a good idea. And is that the majority of those who participated. Form case. Are the wealthier segment of society. So the belief is is that if left uncapped. Rich get richer. But you know cap and 41 K contributions would benefit the government the most because it would generate additional tax liability for those Americans that are already paying most of the taxes. You know there's no denying that 41 K plans disproportionately. Benefit the highest earning Americans because they have more money is safe but in my opinion. I believe captain for one case is just dead on arrival. You know contributions are really limited for high income earners his contribution deductibility begins to phase out for income earners above a 189000 dollars a year on the other hand few Americans aren't saving enough for their futures and something should be done to provide some incentive. For people to save for retirement you know there's there's money that you hope you'll have in the future and there's money you know you'll have in the future. You know good financial planning decisions extend well beyond. You know where and how you invest your money not knowing what to do or how to plan makes it easier to avoid or put at all for a later date but you know sometimes that that later never comes and so to build anything you need three things you got to remember this. You need a plan. You need to process and he'd help of financial professional. So I can be a. Systems just please don't have to call that number called courses 80646. 5996. That's 806465996. Interesting thought Richard I know that. This talk about tax cuts and then. Going all well since before the election last year sort of wish to receive help. Plays out but regardless. It's important have a plan in place. That gets you to end their retirement no matter what the US government does the markets do etc. Give Richard in the team call 806465996. That's 806465996. We'll financial talk coming up. It's time for another musical connections. Where we blend the worlds of music can finance together. Here his friend of the show financial advisor and musician mark lawyers withdrawn stunts. The musical connections mark you're on the financial stability today let's talk about another. Hidden jam. And they were talking about hidden jams votes in the financial world in the world of music. And I had a hidden gem for you when it comes to music. And that would be an I'm all about them and you know all about them but a lot of people don't the four Brothers. They were like all vote bet you NK about four Brothers they were I don't know I know about them they were that house band the musicians behind all those great Motown hits. Oh now I think they had a I'll say it but I did know that may well all men they were so incredible James Jimerson was a bass player. I mean these guys were so good they played well all these hit records and reach in the last few years they've gotten some recognition because they resist. Documentary made called standing in the shadows of Motown. And that's what they did and it's just fantastic you have seen that you've got to see it. There's one particular cover version of the song that's they have all these artists come in and do these old Motown songs with the funk Brothers playing in the background. My favorite from the whole thing is Joan Osborne doing what becomes of the broken heart. I'll go to temptations are really Jimmy Ruffin. Giving Ruffin David reference older brother OK but terms as she does a bang up job on that and it's just fun watching these. All funk Brothers the ones who have survived after all this time. Playing on stage with her and all the other musicians and you gotta do you gotta hidden gym when it comes to music. That when there's cops at the public's thinking when when you started talking about hidden GeMS like that I was thinking about all the different kind of house abeyance and pay you'll look at look at it like you don't you you think the monkeys could play their own instruments without really had a billion behind them they had in this in the studio it was somebody else play in the instruments here. Yeah but but yet TV would make you think the monkeys play their own instruments to when you started talking about the fault Brothers I was thinking about. Other situations or other similarities when it came to house bands inside the studio and how much about the absolute how about CC in the music factory's. Abu the woman who did the vocal so there is not that little skinny so hot looking girl on the video. Actually the woman the bullies. And mailers she had noble it was leaders hit it and and edit a bit thin young woman couldn't couldn't upon the good thing and vote. Exactly does she look good so that you Jesse did pull records. Well how about financially can you think of another hidden GM financial. Absolutely almost all your for a Lou are you ready for a fixed indexed annuity I got yet another. What I'm gonna be a bad article you speak up. No and not talk Donna how many times how much I can I do not like variable annuities on the show I don't like the fees account still I don't like you know the volatility that's attached to him you know I don't I don't like the lack of liquidity that's attached dome BO but but I won't tell you in my own portfolio. I own some fixed indexed annuities and the and I tell you what I use import I use them for the safe part the safe money part of my future retirement. I know that. I'm I you know I love but the greatest wealth creation tool on the planet folks in my mind are still stopped I can't find anything out here better than stocks as the greatest financial poll on the planet as far as growing your money. But when it comes to balancing out risk I'm using a fixed index annuity because that's my safe bucket and I'm able to use that as a bombed alternative so I know that what I have eight. When you put my total portfolio together it's more balanced. And there are some great programs and products that are available out here today is Matt in that area. In that field that is paying some very good interest rates. Yelled more than what bonds are paying. And and and and I have the the extra safety of knowing that it's not if but when the next market downturn happens that every dime and there's gonna be safe because it's. Protected principal 365. Days a year. And some of those even have guarantee growth rates. If you're planning on using it. For future income down on the road and creating a check of lifetime income and some of them even double that check if you get sick indeed long term care it's. It's not the same type of program programmer product that used to be years ago. It's evolved and the second generation versions of these or worse taken a second look at. You know the thing about it is this is a hidden gem because of that eight word. And and you know I'm just I had I don't like ability. But I'm telling you there are some that I do like and this is one problem so Ron tell the folks what they need to do. Disputed the following call 806465996. That's 806465996. You can get a complimentary review of your financial plan. Just call now to take advantage. 806465996. Johnny cashes estate was approached by an advertising companies asking permission to use the ring of fire on an ad for him right green. The request was freaky. On a similar note here's the financial symphony we requested that Johnny Cash the state allow us to use Folsom prison blues is our theme song. That request was also reviews. But keep listening anyway. This is the financial symphony I'm mark Haywood joined as always with Richard future really of Carolina retirement resources is an investment advisors serving you in the Charlotte metro area. With offices in hundreds bill Barack kill. If you're within seminal voice he serve and you come in for a visit with him in the team. By calling 806465996. 806465996. Now Richard I get into a little bit of a different type of discussion today than we might normally have normally look at your investing decisions your retirement plan and it's based on logic and facts of commotion. More to drive every financial decision you would end up broke quite quickly. Having said that the truth is that emotions usually play a pretty important role for all of us in the decision making process. Some like to jump then find out kind of what types of emotion drive these decisions. And then also how do you manage your financial decisions in light of that. So let's just start off with you know quite simply what types of motions do you find are likely to drive financial decisions. Well if there's no denying that emotions play a very important role in every aspect of our lives. And especially when it involves making decisions. You know the reason behind everything we do our life in one way or another. Is going to be related to our emotions you know with respect your money. There are three emotions that drive individual financial decisions and there are fear anger and grief. Unfortunately these emotions often have a destructive rather than a constructive impact on your portfolio. There's no question that the ability to control your emotions will lessen the negative impact on your portfolio. You know and I realize that some of you might be better it limited and the impact of your emotions but you know listen no one can truly eliminate them. Remember in the world of investment gains and officers are measured in dollars and dollars are important to every. So money drives emotions as such financial decisions can be some of the most emotionally charged decisions. That you'll make your life especially in retirement in our studies have shown that losses were twice as powerful psychologically is gains. People would rather avoid a loss than acquiring game this is known as loss aversion and is one of the most powerful forces in the market. The prudent approaches to recognize that retirement represents a fundamental change in your life. It's important that you transition. From the accumulation portfolio. Like the one you had won your work and receiving a paycheck. To a portfolio. That is structured to generate your require him to come and maintain your lifestyle for the entirety of your return here. Yeah that's right Richard emotions are going to play a role in your decision making process and it's important to note that you can't just leave emotions now more emotional beings and they're good things at the same time if you get too wrapped up near motions you can end up Brooke quickly and so you gotta find that balance. Of letting emotion factor into your decisions but also having a plan that you stick to. No matter what and you know ride the highs and the lows to be committed to that financial plan and of course that's something you're mentioning getting for yourself you can do so. But Carl Richard in the team at Carolina retirement resources you can call at 806465996. That's 80646. 5996. Come in find out what it looks like for you personally to balance emotions in the decision making process. As are looking at retirement after all. We're talking the next thirty maybe forty years of your life the big decision you're looking and you wanna make sure you're well prepared for that. Give merchant or call 806465996. That's 806465996. This is the financial symphony we're talking about emotions. And your retirement and the decision making process. Richard what are some of the mistakes specifically that you've seen people make. But calls of emotional decision making. You know I I know that people express on a regular basis how hard they've worked to make the money that they have and that they've tried you know to make wise financial decisions. You know but sometimes you trip up in the and you make less than brilliant choices and it simply put it's just because you're human I mean we make mistakes. And money will stir up your emotions especially if you lose what you have and that's a real strong emotion that not for your loss. Unfortunately irrational thinking occurs so often when it comes to money. That you know entire field of study called behavioral finance has been dedicated accurate. For example studies show that the human brain. Experiences the pain of losing money Q&A half times greater. And the joy of gain and money and once fierce jets fan. Logic walks out the door and bad financial decisions generally follow. Another example would be people who were attracted to what other people or do win or there are attracted to invest in the latest new fad. You know it's human nature to want to be included. And follow the herd this cause you to base your financial decisions are what others are doing. As opposed to what makes sense for you based on your unique financial circumstances. You know I think the biggest mistake that most of you make it's taken too much risk with your retirement savings. You know keep in mind that for many of you. Retirement is gonna last 2030 years and and you're gonna be engaged in an unpredictable. Economic environment. So you don't take him too much risk can be devastating mistake. Many of you with long term goals and actually this frequently. Often invest with short term time horizons. It's not unusual for me to help someone and best their assets and and a month later they're asking what's going on in the marketplace. People just tend to over monitor their growth portfolio. Which causes you to agonize over every little gain or loss especially losses you know. This leads to the hype portfolio turnover. It also leads to low returns over time. Unfortunately since fear is the dominant emotion. Most of you can sell low and buy high heard in your long term performance. You know when you watch the stock market every day you can experience a whole lot of losses and feel a lot of pain. Over time the stock market has risen significantly. But if you zoom in on the daily ups and downs it's easy to lose side of these long term gains. And retirement. You don't want to underestimate the value of created a reliable and predictable income trained. While at the same time preserving your capital because capital losses capital they can't grow. It really boils down to the fact. That all the pieces of your financial puzzle need to fit together. To wed like to do is offer you the opportunity come in for complete financial review. And will offer this review for free to all listeners who have at least 200000 dollars saved for retirement. I'll talk you through all the different puzzle pieces that you need to consider for example. Don't how much risk you take an in your portfolio. And is there an amount of risk appropriate for your agent for the return sure actually get him. You know what about your tax implications on your statement you know is there a way to save money in taxes down the road bike plan and proactively today. Do you happening come plan in place to be surely you aren't in danger of running out of money if you end up live in thirty or more your retirement. Andy have a plan to address inflation in future decades present cost of everything continues to rise. Obviously there's a lot that we need to discuss and we found that most people just haven't planned for early enough to address these situations. Again this review is complementary to anyone who has at least 200000 dollars saved for retirement. But the calendar does fill up quickly so go ahead and give us a call right now so that we can be sure get a spot reserved for you. 806465996. That's the number call 8064659. 96. Come in learn what it looks like to factor in your motions and that financial decision making process. I gotta do is pick up the phone and call 806465996. That's 806465996. And Richard I'd really like to continue this discussion. After the break because I think honestly I see a little bit of myself in this second let my emotions. Get noise and I think this is an important topic so when we come back we're gonna continue to. Unpacked this idea of the of your emotions in the financial decision making process in the meantime get Richard call 806465996. That's 80646. 5996. You're listening tonight financials yeah. It's remarkable sometimes the emotions and feelings music brings to our daily lives. It was there for graduation. On her wedding day. And sometimes even resonates on our darkest days. So lets you look back on life and remember the music and it strikes work and take a moment to look forward to your retirement. Limit your time ripe with uncertainty. Oh will be a time of Julie. If you're in a spot now where you don't think your current plan deserve that kind of celebration when you reach retirement. Think it's time to get a second opinion. Come visit with your financial my strength Richard Richard Elliott. Serving the Charlotte metro area. Call 806465996806465996. It's time for a fireside chats. As we get to know you're local financial symphony maestro. This is the financials and end it's time to step away just for a second from the financial talked. Questions and a market how above. That's what talk to you Richard for second and get to know you a little bit better and pretty simple question for you today and if you have to live in a different state now. A preface that with we'd love the old north state or aren't going anywhere but if you did have to live somewhere else. Where would you live. That's true I don't plan on moving but if I had to live in another shape I would go back and live in Colorado. Couple reasons my wife is from Colorado for family lived in Denver since she was little girl. And so most of her family is still there. But you know there's just so many things about Colorado that I enjoy you know their skin and her bike and they have hundreds of miles of I can trails you can ride. For hours and not be on the roads like around here. You've got to be real careful when you ride a bike but they they have tons of biking trails the weather's a whole lot better than people think it's not as wintry. As you might expect we sure there's some winter storms that come through but on the general basis. The weather is very model is now you're talking sixty degrees weather and a weaker when that sun comes out it feels really good so. I think I go back to Colorado I'm with you Richard I had family who lived out their for summer years so I grew up going out there all the time to. Skis to hike in the some are Broncos games. You know there's a great food and beer scene out there if you're into that there's just something for everybody from beautiful stay in your about the whether it's crazy because. It'll be dumping snow one day and the winner and then two days later. You could be out playing tennis or golf for whatever activity it is you like to do in mid January and February it's it is a little bit different than some people expect. I gotta tell you I've seen that happen in a bit we got to a blizzard pit stops at noon and it's gone by 5 o'clock. You know so yeah you're right miss Thanksgiving Day I used to go out on my bike and ride for 34 Porsche. And come back home in feast you know fainting at Christmas and he's he's he's just not the weather is much much more conducive it's actually similar. To our North Carolina without the humidity. Yes that's true it's a lot drier out there you can Wear you quarter shoot in the summertime not swept you really can't it's so true at the same time I love the old north state. You got the mountains you got the coast. Great basketball scene now that organ in the basketball season had some success different schools of football this year. Just a great place to be great place to live and work coming here in Charlotte. Mean you've just got a hot bubble business torture great nightlife. For those who were into the arts he got musicals and concerts. It's a great place to live so I don't think we'll be going anywhere. Anytime soon had the same time if Richard where to live somewhere else and beat Colorado interest thing. Interesting choice there Richard does men getting in you and all get back to the financial talk next. On the financials and things. We all see the finished product of the music superstar. The sold out performances the TV and magazine covers and the eventual acceptance speech have been dreaming. Like you don't often see is what to engage in exchange. Hours and hours of practice the traveling that critics see improvement. All those little details have been in the background without us noticing and you know like to your financial maestro takes together a financial plan for you in much the same plane naming the process. Easy for you on the surface. And you get some marveled at the finished product. You're playing now. But don't forget about the all important be killed in Africa and going on in the background to wrap your financial masterpiece. And remember your players should be in the beauty come visit with your financial my stroke Richard that you really serving the Charlotte metro area. Call 80646. 996. 80646. KB 996. Much like musicians buying giving the excuse to have their instrument are analyzing pictures to them around for a performance. Our local financial Meister is fine tune your financial plan to adapt the ever changing financial world. Keep listening to the financial Stephanie we'll welcome back to the financial symphony I'm mark Haywood joined as always by Richard drew drilling investment advisor. Airliner retirement resources. Insert menu in the Charlotte metro area with offices in hunter's bill. Rock kill given McAuliffe you like commend her visit that number's 80646. 5996806465996. Richard when we're talking last segment about emotions and the financial decision making process. And to continue on the discussion calls quite frankly I think it's important one we are talking off fears about how easy it is. Just to fill that angst when the market dips and at the same time we get greedy when the market goes up and so it's so important that you stick to your plan. But at the same time that you factor in emotions calls were emotional beings so let's continue that conversation a little bit. I want to know are there are times when it's appropriate to factor motions in New York financial decisions. But I don't unless you're Roma you know most of us can't be afforded you know so I guess. Will just have to live with them and simply blame the outcome on the human brain because. You know do you embrace there's such a way that any input through the senses it's gonna pass through the brain structures which govern emotional reactions. I'm an information already has an emotional color by the timing gets to that part of the brain where rational thing can happen so. You know rather than denying your emotions just be aware of how your feel and and why you feel that way. Most retirement income plans will be structured. Based on your feelings. If you fear losing money. The advisor is probably gonna stressed a plan that is usually safe alternatives. Although that's not always the best decision you see so little under a number of factors that would come into play remember it when you retire. A portion of your required income will likely come from your show ravens and the impact of market volatility specifically market downturns is going to be much greater. In retirement and when you work so just don't need to understand that there is it fundamental change that occurs when you go from the workforce. To retirement. And you don't fear in the loss of your life savings is certainly a legitimate concern you know experience in the emotion of fear in this case is a good thing because. This fear will motivate you seek out of shape for alternatives. So financial decisions like any other decision or subject to all the human factors so I think that we just need to accept our emotions they are what make you you but I think it's important to bring good reason and that your financial decisions as well so you need to do your homework you need to be informed. You need to read the fine print you need a list of pros and the cons way them accordingly. And better yet seek the advice of a professional. And advisory that has a fiduciary duty. And who specializes in creating for you her retirement income paycheck because listen retirement is. All about you come first and foremost that's right retirement all about income and you got to remember that you're retirement is unique. To use you may experience more stress than Samir friends. Same time you may be someone who's greedy and really wants to just take advantage of those market gains that's fine which got planned for that. Make sure you're prepared and make sure that you're staying steady through the ups and downs of the market Richard can help you do that with his team Carolina retirement resources. All right got to do is give him call the schedule your visit with the team 806465996. Is that phone number. 806465996. This is financial simply we're talking about emotions and your financial decisions. And Richard and have a hard time understanding this little bit McCall's I think I see the importance of both. Factoring in your emotions and the mathematics the nuts and bolts of at all. So could you maybe just explain a little more give us an example maybe of a time when you help someone construct a solid plan. That worked for them mathematically. Owned paper but then also met their emotional needs as well. Well you know most of my clients that are our retirees through the greatest concern that most of them have not at all. Is the fear of losing their assets and many have experienced the fear of loss. Only because they have entertain those losses in the past. That's always a big concern for most my clients so you know to be a true value. The financial advice you received should be based on a comprehensive analysis. And I'd be killed view of your financial circumstances. You know many factors are considered before making even a minimal recommendation. You know so with that said I find that by asking the right questions I can develop a clearer picture of what your expectations are. And what motivating your visit with me in first place you know are you worried about retirement do you need to generate income from your retirement statements. How do you feel about the stock market deal like annuities he hated annuities. These types of questions helped me understand you and your emotions and then I become a data collector mark. They don't want to have all the facts and I understand your needs and wants I and then attribution to strategies. That will help you meet your goals so if your retirement. And income leisure need my goal would be to help you to understand your options for generating income for the entirety of your retirement years. The bottom line is that many of my clients are dependent on my advice and nothing makes me feel better than when I get a sincere thanks for help them out. When my favorite client comments is Richard I'm sure glad you understand this stuff. Alyssa when it comes to managing your retirement savings some of you base your decisions on your relevant factual figures. Or on hot tips from friends rather than active non professional financial advice. Advice that is backed up with research and analysis designed to meet your financial future goals. You'll help in my clients make Smart financial decisions is what I do it's what I enjoy doing it's extremely rewarding yet at times. I find myself scratching my head feel a bit baffled and confused by the decisions as some of you make about your financial future. There it goes against logic and financial sense what I do is tell my clients achieve their financial goals provide them required income. As well as continuing accumulation of their assets. You know when UK that's balanced approach between income and growth it helps to keep your emotions that day and it certainly should be a major part. Of any retirement plan process so you're not sure you're on the right path on how you should be managing your retirement savings. Go ahead and give me a call the next fifteen minutes we'll do is our custom designed for you and easy to understand financial review. There will indicate if you're needles full blown financial plan. There will be no obligation or cost for this initial reviewed all callers who have at least 200000 dollars saved for retirement and if you meet those qualifications here's what you can expect first I'll run a Morningstar analysis and comparison report and those reports we'll help you to untangle. What it's costing you work with your current planner advisor. As well as how your portfolio may performed on sugar marker drawn down we'll show you how to protect your investments we keep more of your money in your counts. Next will perform a tax analysis to show you how you could possibly reduce your taxes and a preacher cash flow and finally. We'll create a customized lifetime income plan huge improvement strategies and techniques that could Turbo charger retirement income in short our take the guesswork out of financial planner for you so for all the caller to call an X fifteen minutes mark. I'm offering make comprehensive financial review and that review is being offered was no obligation. That's a great deal Richard in the take advantage of that he ought to do is pick up the phone and call 80646. 5996. That's 80646. 5996. But you can't delay you gotta do it now now's the time to start planning for your financial future. Do you say about picking up that phone given the team at Carolina retirement resources a call. But numbers 806465996806465996. Well Richard we've had great discussion on the show today it taken listener questions on 401 k.s and inflation. And impacting emotions in the financial decision making process. Course if you have any more questions about these topics or retirement in general. Give Richard in the team call come in for visit wartime that number's 806465996. 806465996. Richard as always thanks for joining us now you're welcome market injury. We in Jordan as well we'll look forward to doing it again next time on the financial symphony when Richard. Information is for illustrated purposes only. And does not constitute tax investment or legal advice. Always consult with a qualified investment legal or tax professional. Before taking any action investment advisory services offered through Brookstone capital management LL CBC him. A registered investment advisor BCM and Carolina retirement resources are independent of each other.