Little White Lies

Financial Symphony
Saturday, August 12th

Discussing the "little white lies" of the financial world.


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

No financial symphony. Harmonious financial plan and getting your portfolio in two weeks so sit back slowly strike at the the financial simple it's starts now. Greetings and welcome to the show everybody it is the financial symphony I'm your host today Mark Killian. Alongside with Richard who drilling and of course it's time for a second what Richard. Right here in the Charlotte metro area he is an investment advisor with Carolina retirement resources. With offices in hunters go to a Carolina and Rock Hill South Carolina Richard how are you go to base their welcome. I agree Harry good I'm doing fantastic the sun is shining their release that was weaker when we walked into the studio today. You never know North Carolina right blank and the weather's gonna change we'll folks if you like to get some help with your retirement plans to make sure. Then it's not gonna cause you problems when executed your retirement or Richard is a great resource for that. At Carolina retirement resources and you can get a hold of him by calling 80646. 5996. That's 80646. 5996. To help make sure that you know you're on the right track when it comes to retirement. 806465996. Well Richard as we always like to do here on the financial symphony let's dive into some listener questions from around the area and see if we can not help the folks don't sell its. Sure are here we go our first one today comes to us from Craig in Fort Mill. And Craig says Richard my wife is significantly younger than me and I'm guessing she's gonna outlive me by about at least ten years. Do I need it life insurance on myself to be sure she's okay after I'm gone. Just love how people continually keep trying to guess when they're gonna pass and it's never ceases to amaze me. Well listen you know Craig when you're working in and create an paycheck you know life insurance was a great way to protect your family. It because they relied on you for that income that you were bringing home. I'm gonna when you retire if all goes as planned you know there's going to be fewer people who depend on your income. I'm the only one left dependent on your income at this point is then going to be your your belt so. Pack your death. You know the monthly income viewing your spouse have become accustomed to is gone it's gonna change you know you'll you'll lose one shall security check. And if there's a pension involved that could disappear or at least the crease by half of the pensioner is the one that has passed so. Have a life insurance contract to preserve a sure are surviving spouses in come. You don't replace that Social Security check maybe former place that pension I think that's a really good idea. Also if you're interested in diversify and the types of accounts you hold. He owned life insurance is an excellent option you know properly structured life insurance contract. Is what I called safe money strategies that provides long term growth. It's tax deferred and when you do withdraw funds from those contracts improperly structured contracts. Then you get those withdrawals tax free. So you know you'd kill to burger points W provided tax free gift benefit in the event of your debt for your spouse can replace lost income. And if you don't die you've created a safe long term growth strategy that can be withdrawn tax free in the future so. He satisfy your desire for safety group or protect who's going to come in the event of your debt a more importantly you've diversified accounts you have a tax deferred account. And now you have a tax free account. The when your focus is on income and growth. You know diversifying into a properly structured life insurance contract. It's a sound strategy was active with inside a comprehensive. Retirement income point. All right Greg great question and we certainly appreciate and he'd like to reach out to Richard to dive into this more or anybody else he finds himself a similar situation. 806465996. As 806465996. And now many happy years Craig to you and your wife. Richard we got time for one more here I think and it is from mr. Josh in Concord. And now and Johnson is Richard I consider myself a conservative investor. But sometimes I think maybe I shouldn't being quite so conservative today loosen up and take a little bit more risky thing. The other big question but dad is you know when you think about risk. You know they are really means different things to different people you know it depends on on on how your retirement savings is structured today. You know whether or not taken on more risk is appropriate or not. I'm you know from any. It's something in that they wanna completely avoid you know and for others. It's an opportunity. And not an acceptable part of every day life from me ever do everything we do has some level of risk. You know for her investors. Those investors that are prepared. Not to take on and manage risk. There are potential benefits in the form of higher returns you know we all know that the more risk we take the greater the potential for the return as well. I'm but also the greater return there to greater potential for losses as well so. On the book before investing in I think it's important. You know you review your current financial situation you determine your goals. And establish a plan to achieve them and the plan and part B in the most important you know your plan should include future shaven levels. In investment strategy and risk management strategy and because investment ALCON for Turkey particularly over the short term. You know they're very and uncertainty can be extremely volatile you know part of a plan must also bug B. Periodically reviewed. And just check and see what would that the progress that you intend to make his BM is is actually happening. You know it's very important to determine how much you will on the loose when invest in another words you know you need to determine what feature rich tolerance I mean do you have the ability. On to lose 50% and not jump off a building in I mean the bottom line isn't what is that risk tolerance okay. Some advisors like to communicate their risk. You know as a percentage of assets known as your maximum draw down so. If your portfolios maximum drawn down as 35%. It means you could lose 35% of your savings you know if that's too high. Then you're taken on too much risk and no one likes to lose money no one I know exclude Myanmar factor fear of losing money. Is much greater than. Then earning money. And you know no one likes to lose money especially if you don't have time to make don't losses back and if you're 75 years old. Don't lose money a big chunk of money is just not something you're interested in so rather than determinant. Whether you should take more risk. I think he should commit to get in a complete financial review. And see if there are other opportunities in a marketplace that will provide you with a better outcomes down the road you know for most of us. Completely ignoring the stock market is not an option especially if you're gonna keep pace with inflation and retain the opportunity for growth during periods of good economic times. The solution is to use risk management strategies that allow you to choose how exposure required income is to market volatility. You're car or you're you know that required retirement income should be reliable predictable you don't wanna be taken a lot of risk with that. And this requires a retirement plan is structured differently than plan you saved for retirement. You know that she won very passionate about my belief that you deserve to secure independent retirement and that's why we offer consultation to our radio listeners to help keep you on that path. If you Collison a next fifteen minutes and have at least 200000 dollars saved for retirement. I'll offer you this free consultation. To help you determine how prepared you are to handle retirement pitfalls like inflation. Health emergencies. Stock market volatility and taxation. You've worked hard for your money so we'll work just as hard to help you protect and grow it there'll wide variety of tools and services available in the financial world. We'll show you how to harness those tools and services to create a plan that's tailored just for you. And we'll show you how to achieve a lifetime of security. Thanks to a lifetime of income to give us a call the next fifteen minutes and work together to get through on their road to financial security and independence. All right looks great offer from Richard who'd surely Carolina retirement resources and here's your number. 806465996. That is 80646. 5996. It's a great opportunity to make sure you're on the right path toward retirement. He is planning process started with Pritchard who to really call 80646. 5996. Listening to the financial system there is more thinking. 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 as you look back online and remember the music strikes or take a moment to look forward to your retirement. Look at any time ripe with uncertainty. A 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. Then it's time to get a second opinion. Come visit with your financial my strength Richard materially. Serving the Charlotte metro area. Call 806465996. 806465996. Don't want to be sharp and not be flat and retirement. Is the financial and it. You're back here with us on the financial system thanks to begin today we certainly appreciate it. Mark Killian alongside Richard who drilling of Carolina retirement resources and of course the financial says he is the show that's all about helping people in retirement. You hear on the show like to win the worlds of music confining and together and of course Richard which really can certainly help you strike that right chord in retirement. If you'd like to get yourself on the appointment calendar is very easy to do just call 806465996. That is 8064659. 96. And now Richard I probably talk a little white lies for the rest of the show today that's not something that any of us are familiar with at all as a with the you ask me in line at a better time to Chicago white lies just a little white lies. I really what I wanted to talk about is we all save a little bit some degree but we'll we also hear a little white lies in the financial world. Don't think necessarily because someone is trying to make misleading statements. But I am anymore because sometimes the simple statement just doesn't quite tell the whole story I'll give you few examples and it'll make more sense to you can kind of explain to us why these can be. You're gonna give us a little bit of trouble here we're not careful. Our first little white lie is and you've heard us and a bunch of times is don't worry about those losses because the market always goes back up in the long run. Yeah and the key phrase in that little white lie is in the long run yes there. You know historically the stock market has rewarded investors with long term growth there's no denying that but for for most of us. You know a realistic time frame is ten to twenty years not more than a century so you know sometimes. The returns are high. Sometimes the returns are low and in fact from 2000 to 2009. You know that that's been dead dubbed the lost decade. You know the market return was negative you know you had ten years of negative returns and so we you know losing your savings. Is something that I think did everyone should be concerned about so. I'm I think it depends on the extent of the losses I mean I think it's impossible and irresponsible for. Anyone to indicate that it's you know likely or probable that you'll never lose money when you invest in the market. But you know the average buy and hold investor you know dependent on the strategy your shoes and the average buying whole investor mark I mean they they actually spend 74%. Of the time. Recovering from cycling downturns in the market so those losses matter a great deal. And and the reason for that is the unforgiven mathematics of lost you know when investments lose ground. They may date they must make up more ground percentage wise I just to get back even you know for example recovering from a 30%. Lost. Requires a 42 point 9% gain. A 50% loss requires a 100% gain. And and you only get exponential as time as as the losses increased ought to recover from a 75%. Loss. A 300%. Gain is necessary. To break even that's incredible yet but the math never ever lies OK so. You know get him back to eat then. You know dependent on how old you are back and eat up precious time especially if you're near retirement worker in retirement. Remember the idea is to grow your money not just regain lost capital through when you spend so much time recoup and avoidable losses. You spend less time growing your statement you know again no one likes to lose. Have these huge losses in their portfolios. But you suffer a large loss soon after retiring and listen it's just very very difficult to recover. You're no longer contribute your savings instead your often withdrawn from your accounts for expenses not covered by your Social Security your maybe your pension so. Listen losses matter a great deal especially in the years just prior to retirement. And certainly in the years immediately following the retirement. He had just really some staggering numbers in there for shore. And it was a thing it jumped out of me Richard when I read this and and I always thought this coming here it is the longest back of the long run but everybody's situation is different and you may not have the long run to recover as you said. So if you're 65 or seven need a long runs not so long so. Something to deathly look out for talking about little white lies here on the financial symphony would Richard future LE. That are sometimes heard in the financial world that was our first one done not worry about the loss is because the market comes back up the long run. What about this when Richard. The fees in your portfolio. Are less than 1%. Yeah I hear that on a frequent basis you know I'm when asked people if they know what their pain in their portfolios. You know Galileo once said that all troops are easy to understand once they are discovered. The point is to discover them. And and one truth mutual fund investors have not come easily understand is that there are other hidden cost not reflected in your monthly statements when you invest fusion mutual funds. So if you ask your advisor. What his or her fee is you're gonna get a response that's one per cent and and that's probably true in fact it's likely true. But the the problem is is is that it's not the only thief Europe others unless you know what to ask. The you know there's no obligation on their part to answer although you would think that that would be something that would be fully transparent. Unfortunately in the world and invest and it's not always the case. You know for example. Every mutual fund has a fund manager. So every mutual fund has they fund fee or what they call an expense ratio and that compensates the fund manager. And covers other expenses so even if you're invested in bonds funds. And the advisory fee is 1%. You know you could easily be paying more than one person and I just with the expense ratio not include and the other fees there's there's other fees centrist trading fees. Sales loads up commission's co B one fees and more you know and. And you get an idea of the day hidden costs inside mutual fund by looking at what they called a turnover ratio you know how often and our net equities inside the mutual fund being bought and sold. If you have a a turnover ratio of 200 per cent. Well there's a lot of buying and selling going on inside that mutual fund which means there's a lot of other hidden fees that you're not aware of so. All these fees combined are very likely to cost much much more than 1%. I'm that's why we call them hidden fees. That this is something that you should be aware of and if it's possible you know if you construction your portfolio to. To limit. Let's say 50% of those fees. That would be. Market change in and your return down the road ten years out. You know it's easy to overlook investments these people do all the time. I'm that could be a problem because investment brokerage fees certainly eat into your investment returns. You know whether baked into the funds that you selected. Like the mutual funds we just discussed or or added there's an added brokerage commission when you buy and sell. Oh or charged by an advisor who's helping you sort through at all. It's important you know torture pain I mean if you're paying 1% if you're paying 2% if you're paying 3%. You should now and then he should coral late how much repair and with respect to the amount of risk picture taken so you have a maximum draw down 40%. And your fees or 4%. I think that's a little bit out of whack that that's something that needs to be corrected as soon as possible. In the long run room. A big difference in your retirement savings so. If you Collison next fifteen minutes I'll help you with that our car custom designed for you and easy to understand financial review. That review will indicate if you're in need of full blown financial plan. Under no obligation or cost for this initial review all caller to call with at least 200000 dollars saved for retirement. And if you meet those qualifications here's where you can expect. I'll run a fee report to help you untangle what it's cost new to work with your current planner and it's archer thought I'll show you how to protect your investments and keep more of your money in your accounts next. A proforma tax analysis to show you how you could possibly reduce taxes and increase your cash flow. And finally will create a customized lifetime income plan. Usually proven strategies. And techniques that could Turbo charger retirement income short. I'll take the guesswork out of financial planner for you so far for all the caller to call one next fifteen minutes mark I'm gonna provide a comprehensive financial review. And no obligation. All right folks let's go ahead and pick up the ball and make that call really great offer from Richard boots wryly. Go ahead and called on the next fifteen minutes 806465996. That is 806465996. Make sure you're not telling yourself little white lies or being told little white lies go ahead and find out get a comprehensive review would Richard future really. At or retire resources get that second opinion and find out where you stand as it pertains to retirement. Really great offers a go and take advantage now folks 806465996. That again is 8064659. 96 state to there is much more common for Richard Israeli right here on the financial soon. We all see the finished product to 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 it takes to get to that stage. Hours and hours of practice that traveling the critics see improvement. All those little details have been in the background without us noticing and you know what your financial maestro puts together a financial plans for you are in much the same plane naming the process. Easy for you on the surface. And you'll get tomorrow we'll get the finished product. You're playing now. But don't forget about the all important he killed an effort has been going on in the background to grab your financial masterpiece. And remember your player should be a thing of beauty come visit with your financial maestro of Richard picture really starting to Charlotte metro area. Call 806465996800. 646 KB 996. Yeah. It's time for a fireside chats. As we get to know you're local financial symphony maestro. Well it's getting to know you time here on the financial symphony that's the fun part of the show where we step away from the financial chatter for a moment or two and get to know we're Richard literally just a little bit better and Richard you know these questions can be also all over the map they can be fun silly crazy. Interesting poignant you just never know what you're gonna get what these questions at today's a pretty good one. It's if you could trade places with somebody anybody for just a day who might that be Richard. If that's if we know it. Right now I guess I would did say Aaron judge of the New York Yankees I mean. He's. And man he's demagoguery Greek. Start to his career I mean I just I love baseball and I I still dream I know I. And hours and still see myself. It now home run to win the game you know so I think it would be really cool conducive to to take his place per day. Heck I'd take any major league baseball players not plays per day wouldn't matter who was Sloan saw as the baseball field so I would choose Jerry Jones right now. Well that's a way to get soy sounds like he's he's really put in the work so far this year. Yeah he's come on they've held them back for you know what 23 years I thought for sure he would have kind of a year to go for it. You know they know what they're doing and that's so far it looks like it's been eroded the right decision because he's doing a review job. He's not and now the park for sure what they ghost though Richard who'd like via the baseball agreement has gone wrong with that so. We all want to play baseball I think at some point line so we could trade places with somebody for a day. Feel player on the Yankees via. That's targeting today you folks stick around there is more what Richard literally right after this. It's time for another musical connections where we blend the worlds of music can finance together. Here's friend of the show and financial advisor and musician mark Lloyd withdrawn stunts. This is the musical connection and this is a financial stability of course and mark L let's talk more about you Jimi Hendrix. I have only one burning desire when we stand next unify. Them that yes that's a good song like that do that following years ago. And I surprised at how about that a move over over an allegedly takeover. Yes that the goodwill and you can say good move overrun over and let. Mark Lloyd takeover well. Here's here's another here's another one for you is a little bit more seriously we can learn about retirement planning from some of the greatest quotes from. Arguably the greatest rock and roll guitar player ever Jimi Hendrix here's something you said knowledge speaks but wisdom listens. What can we order from that when it comes to financial blip that's. Sounds like something Ben Franklin or somebody with site and dust it does make you and that it's a great quote knowledge speaks. But wisdom listen strike while the funny it's a connection that was easy it's not hard to find a financial advisor who can talk intelligently about saving. And investing for our Vaughn and you'd go to this yeah yeah yeah it is keep talking keep up. In fact you can find one on every street corner. But it's a bit harder to find that right advisor. Who knows how to listen. And how can how can somebody put together a retirement plan. That's designed for you if they don't let you do view the investors doom most of the talking. It needs to be you they need to understand what your desires are what your concerns are what your goals when this money is what you want to have happened to the money. How much risk you're willing to pay. These are all the things that these that a good financial advisor will know the answers to these questions before they ever recommend what you should do your money. And if you have somebody giving you investment advice and they haven't asked you those types of questions. Cannot just say run for the hills as best you can. Because there is they're peddling products folks. The last thing you want is to just go buy products from somebody and its products that are really haven't been designed specifically for your situation. And folks there are people out here like I said earlier on every street corner doing just that trying to sell an investment sell fund. Sell the new that he sell something to the so you've got to be careful be sure you're working with a advisor who listens to your story. Ask you the right questions to get to the bottom mobile what the what's most important to you. And designed a plan that truly is customized to your needs so if you work to come in and visit with the us. We're gonna have that chat. And it's going to be a very new low key nonchalant chat is going to be you'll asking questions about when you would like to retire and and you know and and talking about you know how you know about your retirement now what you've accumulated you know going and going over what accounts to. And how it's invested. And yell and some folks just Britain they bring in spreadsheets some folks bring a list some folks bring in their statements. And as long as the along with the ticker symbols are on their we can see what you're invested and we pretty much can get an idea of how you're invested. But that but really it did you know that first visit is more about getting to know you. And we have a series of of questions that are and it's not like you're taking a path. You know it is just it's just common sense questions little things like what would you like to retire. You know how important is it for you to you know cover health care with the with this money how important health care with your main goal with this to preserve it. To continue to outgrow it aggressively. You know how important is it to leave it to your kids and things like that. And these are questions that need to be answered so that a plane and can be designed. That would be used specifically. And that's what I guess this is what drives me Ron Ron it it it it's the it's the challenge. It's the opportunity. To be able to take a person's specific situation. And design something that fits them. That's you know and nothing and a note to play into the same so it ends up being you are unique plan but you've got to be willing. This take the time and invest in our love of your time to come in and have that cap. So Ron it's gonna share when it yet. How to get in touch with the just pick up the phone and call 806465996. That's 806465996. You can get a complimentary review of your financial plan. Just call now and take advantage of 806465996. I know it's only rock and roll. And retirement. But I like it they sing to the financial symphony. Well this is that part of the show here on the financial symphony where we we elected for about our slippers and our favorite glass of wine and sit down. For story time literature through your early. And that this kind of like case study if you will or just I guess just an example a time Richard when you help some folks in. We got a great question for you this week a like for you to tell us about time when you helped a client who had lived in two. And advanced age but they are still aren't really pretty good shape financially that's thanks in part to the health that you had given them along the way in designing their plane and. Oh sure yeah I. You know as soon as time goes by you know sooner or later you're gonna have some clients that. No reach those lost the ages of of the nineties and I do you have clients in the ninety's and and what we did with them it was to implement a planned that it was two fold earlier we implement one strategy. That took care of their required income needs. Another strategy for growth and future income. There is no we don't we do have to deal with inflation. And as such more income would be needed down the road so you know the first strategy provided. But nothing comes from and meet their needs. And to maintain their lifestyle. You know you always want that income to be reliable predictable so that strategy is more to say money strategy. Tom and and that money then income will come in it'll be paid month after month after month after month for as long as they both live in other second strategy. Com is invested for additional growth and to hedge inflation. You know they know that this account may fluctuate and it has. With the market but you know it's designed to avoid those deep deep losses when those market downturns do occur. And you know that we we knew they may they know that we can't control how much they earn on that in our portfolio but we certainly can control. The resistor taken and and limit losses so I think both strategies. Have their priorities. You know basically what it does is it all boils down to you know he'd he'd have an all those pieces of the puzzle. You know fit in together and and if you're a little bit concerned about maybe a puzzle piece being out of place. I give us a call the next fifteen minutes and I'm I'll give you an opportunity to combine and we'll sit down and and perform a comprehensive financial review on your behalf. And I'll offer this free review can anybody that has at least 200000 dollars saved for retirement how's that. Our books they go 806465996. That the number call. 806465996. To take advantage of this offer from Richard which really. I as you say you know is he said that we're living longer and so if you wanna make sure that your retirement plan is set to help you into some advanced stages as well as early retirement. Givers should call 806465996. We'll be right back you're listening to the financial services. Did you house produce more milk when listening to relaxing music. That's according to a study conducted in England in 2001. And reported by the BBC. Did you also know that people achieve a higher level of financial satisfaction while listening to the financial symphony. Would never recorded by the BP. Hey gang we're moving down the homestretch here today on the financial symphony thanks for sticking around with a today Richard which are really in myself Mark Killian here. Talking to you today about the worlds of finance and retirement of course Richard future really is an investment advisor with Carolina retirement or resources he's got offices. In hunter's bill North Carolina and Rock Hill South Carolina. If you'd like to reach out to Richard it's really really easy to do just pick up your phone don't procrastinate and given a call 806465996. That is 8064615996. And make sure you're on the right path as it pertains to retirement. Richard that let's pick back up we were talking about little white lies that are sometimes to hold in the financial world. On the prior segment recovered some really good ones a couple of really big ones there. Like you know know more about those losses because the market comes back of the longer and and of course those fees are in your portfolio are less than 1% lead. Really great information from you their own why those can be trouble if you hear those little white lies I got a couple more for you so let's see what we've got here. How about this when Richard though with interest rates so low you're much better off to invest that money instead of paying off your house early. I know folks find like the house debate kind of 5050 on the coin there but what do you think. I think you're right area you know it's an emotional on discussion regardless. But that's an I would say that that that mathematically that's probably correct. You know there's other factors are always other factors and variables in play. On the that would make it better to probably paid a house off you know. You know we don't want security of own our home free clear. With one less expense to deal with. And if that's you know if that's how you if that's what the priorities for you then you should pay off your house but. You know for me that's not the priority it'll never be the priority I don't I did the math matters to me a lot. And so paying off the home is not something that I'm probably. Good to concern myself where. However there are times I mean keep this in mind there are times when intuition. And finance they just disagree. On the decision to pay off your mortgage. Early you know it's just not about to get him out of debt. And there are other more complicated equations involved in you know return on investment. Time value money and inflation I mean I'm Bob Dole all can be involved you know shall remember. This is finance sometimes debt is the cheapest solution. And a dollar paid tomorrow might be preferable to debt freedom today so. There's no right or wrong answer here it's all about what's the best solution for you. But do keep in mind that when you pay off your mortgage. You lose the ability to be short today's more valuable dollars and repaid them with depreciated dollars in the future. The importance of this financial facts. Cannot be overstated given today's record of indebtedness. And a policy directed toward creating inflation by the Fed so keep that in mind. Yet that's really great advice Richard because I hadn't thought about it that way I was panel like you mentioned I was thinking about it for myself personally more in this sentimental or. My emotional side of it by saying well it be nice to have that security get the home paid off and how they can feel better but I hadn't really considered some of the math side of that so. Really interesting advice and into interesting data there as well. Well you know I I always them. And I could crunch the numbers I elected to determine for myself and my family what's the best solution moving forward. And in today's environment. You know with the currency worth they're going on the devaluation of currencies looking you know my decision is is that ought I'd rather pay off the house later on we depreciated dollars. Well again folks really good advice if you find this interesting at all and you'd like to talk and Richard which are really about you know maybe what's the best solution for you and your family reach out to Richard 806465996. As 806465996. Were talking about little white lies that are often told in the financial world and twice and always get a second opinion and make sure your thinking about things that it. As Richard says it's gonna be the best situation for you in your feeling and of course that when was I would anticipate interest rates being so low. Are you better off to pay off the house or invest money. Moving on on our little white lies list Richard how about this went diversification. Is the key north finest uninteresting because we hear that so much that diversification is incredibly important. But why might this be a little white lie. But I you know when most people. About diversification. They're usually reference in the portfolio with some percentage of stocks and some percentage of bonds you know. I'm diversification. Is the key is like the adage that says don't put all your eggs in one basket you know we've all heard that shortened cut you know but they you know true diversification. Did that requires investment in multiple asset classes and and most. Of you. The especially those of portfolios I've reviewed on your behalf. Our diversified. Typically amongst two and that's stocks and bonds you know your risk tolerance. Determines to what degree you're invested in stocks. And to what degree you're investing in bonds or you're conservative investor you might be invested 80% bonds and 20% in stocks. But you're an aggressive investor you might be invested 80% in stocks and 20% bonds. But but folks that's an accumulation strategy that's not a retirement income planned retirement income plan. Does have a group portfolio that will fluctuate with the market. But that's not the entire plan that's just one component of a holistic plan you know diversification your retirement. It is much different than diversification when you're working. In retirement not only do you want to diversify assets. But he also wanna diversify their accounts and you wanna diversify strategies so instead of having all your money let's say in tax deferred account. Trying corporate and tax free account and taxable account. Having all three accounts. Will help you to better manager tax liability and retirement and if you want to minimize overall risk in your portfolio. You might wanna consider allocating the percentage of your savings into a safe money strategy and some of your savings into a growth money strategy. How much goes into the safe money strategy and how much goes into the group. Money strategy is unique. To your. Personal situation but typically a lot of people use what they called the rule of 100 if you are sixty years old. Are you subtracting it from 160%. Of your assets should be in the saves money strategy. And 40% should be any growth portfolio now obviously that's I'm guideline is not absolute because everyone's situation is different. But but that's basically what you look at that with respect to diversification and retirement. All right folks you are listening to the financial symphony with the Richard literally of Carolina their retirement resources. With offices and hunters hill North Carolina and Iraq kill South Carolina you'd like to reach out to Richard he is available to you by calling 806465996. 8064659. 96 to make sure that your headed in the right direction for retirement we're discussing a little white lies here that are sometimes herder told in the financial world in that was diversification is the key. Richard I think we have time for one more today on the show what about bonds you've mentioned them so. These bonds significantly reduce the risk in you're portfolio I know a lot of us sometimes think that. Ons are a much safer. I guess I vehicle correct well they're certainly less volatile than stocks but they you know they still carry on your risk themselves. You know almost on the market are not high risk armed it's still possible lose money investment. In and so work you know some of the common risks associated with the investment bonds. You know including inflate. You risk I mean recently in February. The inflation rate you know you're year ticked up two point 7%. And a US tend had a ten year treasuries only paying 2.3. So you get 2.3 but inflation is two point seven your negative point four tenths of 1% or so so inflation is is concerned with the bonds. Interest rate risk obviously there's a relationship with them interest rates and bonds and interest rates. Our low and you buy bonds in today's market but then interest rates rise the value of your bond is gonna lose lose an inverse relationship there. And value will be crease when interest rates rise. Others call back risked their credit risk there's a liquidity risk and of course there's market risk so in today's market. At some point keep in mind the Fed policy will change. And interest rates will rise. And bonds bought in this low environment. Are sure lose value there's just no denying that they will lose value so you certainly want maturity dates to be as small as possible. Army you want duration is to be as low as possible as well most of their counselor review mark. Are you bonds to hedge against losses in equities and that's typically. The mindset behind having a percentage of your money in bonds is because it will hedged risk. You know you look back in 2008. Look at a balanced fund a mutual fund that has 60% equities 40% bonds. I'm not portfolio still went down about 30% you know so it's certainly beat the benchmark a benchmark in the S&P 500 went down much further. Com and so that portfolio didn't go down as much but is a 30% loss acceptable and retirement is that something that you're willing to to to deal with. I'm so bonds due reduce the risk in your portfolio but bonds do not eliminate the risk in your portfolio. And listen you know retirement plan and too many people means Saban and investing for retirement. But our retirement savings goal. You know the accumulation phase and a retirement income plan the distribution phase you know those are two very different. Events and they need to be approached differently you know you need a strategy for taking distributions from your savings. As well as how you continue to invest toward retirement she can have growth for future income and to offset this the negative consequences of inflation. He'll have a plan is where you need to begin that's the first thing you need to do is have that plan in place. But you won't have a fan that fits you you wanna have a plan that specific to your needs. And an end your retirement. And it's only it's really the only way to ensure that you'll never run out of money and retirement and it's always have retirement should be what you expected it could be. So you really don't boils down to the fact that there's all these different pieces to your financial puzzle and all those pieces need to fit together so what I'd like to do is. Offer you an opportunity comment for complete financial review and I'd like to offer this review for free to all listeners who have at least two and are now more save for retirement. And what I'll do is I'll talk you through all the different puzzle pieces that you need to consider for instance. How much rescue taken in your portfolio. And is that amount of risk appropriate for your age and for the amount of return mature actually Gannon. You know how much prepayment fees or commissions which are current plan. What about the tax implications of your statement is there a way to save money in taxes down the road by planning proactively today. Do you have an income plan in place to be sure that you aren't in danger of running out of money if you end up living dirty or more years in retirement. And do you have a plan to address inflation in future decades as the cost of everything continues to arise. Obviously there's a lot we need to discuss and we found that most people just haven't planned early enough to address these issues. Again this review was complimentary can anyone who has at least 200000 more save for retirement. But the calendar does still up quickly so go ahead and give us a call right now so you can be sure to get a spot reserved for you. All right folks let's go ahead and take some action in get one of those spots reserved 806465996. That is 80646. 5996. And of course we're talking to retirees and pre retirees here this is a great chance to make sure you're headed in the right financial. Direction as you playing for your retirement. Richard poacher is gonna be able to help you with that show you where you are now and help you get to where you want to be. For that successful retirement but you have to take some action and reach out to him there's lots he can do an offer to you but he can't do any of it if he doesn't get a chance to know you. So go ahead and pick up the phone 80646. 59 and 96 that is 8064659. 96 Richard sir as always thinks of me on the show we certainly appreciate your time in your wisdom. I appreciated mark document we yes sir everybody out there have a great week and we'll look forward to seeing you here next time on the financial symphony. With Richard Hu to rally. 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 overthrew Brookstone capital management LLC an SEC registered investment advice.