Responsible Retirees

Financial Symphony
Saturday, October 7th

Richard answers listeners questions and discusses being a responsible retiree.


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

Financial symphony. This. Harmonious financial plan and getting your portfolio in two so sit back slowly strike at the the financial simple it's starts now. Hello and welcome to the financial symphony thanks for tuning in to the show today. I'm your host Mark Killian alongside her Richard culturally. He's an investment advisor at Carolina retirement resources. Serving you here in the Charlotte metro area with offices and hunter's bill North Carolina and Rock Hill South Carolina you can reach Richard and 8064659968064659. 96. And welcoming Richard how are you sir burger and mark carrier I'm doing quite well thank you for asking hope you had a good week Malia. Baseball playoff series and I am excited. And that's always a good time that's particulars though we'll try to be as exciting as the baseball playoffs I think we've got a pretty good show lined up here for folks today. We're gonna talk about that responsible retirees. A little later on the program are getting to know you segment as well but for now let's take some questions from around that area and ever gonna start off of their first question today for you Richard from patty in Davidson she says Richard what's so important about asset allocation. Yeah you know you hear that a lot done asset allocation is the process of spread end or diversify in you know not don't keep everything. All your eggs in one basket type mentality. On the supposedly reduces the impact of price volatility in any one asset class. Over the value of your entire portfolio you know building your asset allocation. You know this is something that's kind of a main driver. For those of you consider yourself investors. You know for retirees. You know asset allocation. May have been the priority while you're working on receiving a paycheck but that gives way. In my opinion to strategy allocation. In retirement now if you have a traditional Wall Street portfolio of mutual funds own mutual funds are going to be manner by mutual fund managers at a price unfortunately markets pricing power. You don't work against mutual fund managers who try to outs mark. Nine you know other managers. Through stock picking and market time in. And time in the market is difficult you know if not impossible. Even for the most experienced a masters so you know this is where the idea behind. Asset allocation comes from you know you know look at NAFTA is furious. I was able to find data that indicated that only 19%. Of the US equity mutual funds have outperformed their benchmarks over the last fifteen years and so most investors that select mutual funds especially ones and 41 K. What did he used to go look at the average reader returns over ten year period and they tend to choose who want to have the higher average rate returned the problem here is that an outperformance fund will not always be a winner in a past performance told you about as much about future performance. In the markets as it does with a coin flip you know five heads in a row doesn't necessarily guarantee that the six foot is going to be had you know so everyone knows. That invest in is a numbers game com how long you invest has a huge impact on on your return. The financial markets reward long term investors. An asset allocation. Is supposed to reduce the risk of loss unfortunately. You know asset allocation alone isn't enough. The crashes between 2002003. And 20072008. Clearly reveals that asset allocation more than enough to avoid deep losses. Well great question patty thank you so much for submitting that in and obviously if you one to talk more in depth with Richard about this given or call 806465996. That's 806465996. To sit down have. A conversation with Richard coach really a Carolina retirement resources again thank you so much for the question and keep listening. To the show our next one here Richard is from Tom in Charlotte and Tom says a what kind of annual return should I be seeking on investments. In retirement you wanna get questions like that about re return. You know that that's that's how investors have been trained they've been trained to think that. In a greater return is indicative of a successful. Portfolio and it is to some extent but it's not everything. You know a lot of us even when I was a younger. And not release. As educated as I am today. You know we've been told that the mortgage market's average about 12% over history and for many abuse that has stuck and it and it has become your benchmark. How we still have individual radio personalities that still communicate and mutual funds are gonna give you you know 12% rate returned. But returns below 12%. Then become viewed as a fan point when in fact upon every return is always good news. Sure you can you want as much as possible when you invest I mean who doesn't okay. But is at 12% average reader return realistic. I mean is it true and if it is does that mean you should expect to earn 12% every year on your investments. Well of course I mean expect that a 12% greater return here in your eyes just simply ridiculous. No listen. The temptation. To focus on return. Is very very strong. But in the end. Success rarely comes from a focus on things you can't control if you lack a healthy appreciation for risk. Then you lack control over your portfolio on my opinion. And excess return in of those 12% greater returns that you think are normal you know that can't be achieved without taken excess risk so you know I always recommend to people don't obsess over returned you know when investment market risk is what you buy and return is what you hope for toward retirement. Your primary focus should first be on generating enough income to comfortably live a lifestyle of your shoes then. And it's all or part of your retirement income is generated by your statement. You need to limit losses because the effects of market volatility is so much greater in retirement than when you're working is saved for retirement so remember. When your statement for retirement market downturn to reduce sure assets but they don't affect your income. But in retirement the opposite is true. So to overcome this dilemma you implement a plan that is structured differently than the plan you had when you're working and saving for retirement and rather take a balanced approach. Using three different strategies one for income. And one for growth and future income you're required income strategy using more conservative products that significantly limit your risk thus resulting in lower returns. The strategy is designed to generate income that is reliable and predictable for the entirety of your retirement years. Greater return is not a priority in this strategy and they completely avoid in the markets is certainly not a solution especially if you're gonna stay ahead of inflation and retain the opportunity for long term growth and future income so you need to also implement our growth strategy and that growth strategy should bring you back about 7% compound an annual return over the long term long term being in about ten years but again there's no guarantee I mean we've had tenure periods common market. Where the return has been negative in a we can't control for greater return that's very important that you understand that. We can only control for risk and if you control for risk. Your potential for success increases. You're listening to the financial symphony was Richard future really of Carolina retirement resources. We're taking questions from around the area here and Tom thank you so much for that question you'd like to reach out to Richard which really it's 80646. 5996. Again that his 80646. 59 and 96 to talk with Richard culturally at Carolina retirement resources. One more here Richard before we wrap up this for section of the show and it's from Alex in Rock Hill. And Alex says Richard I've seen a lot of growth. In my 401K recently which has been nice but I feel maybe I should capture these gains and take some risk off the table. On the other hand what the market keeps going up for another year to and I miss out on that growth I think gets the Angel questioned during. They you know time and market not the typical strategy to follow. On fact it's probably impossible but you don't problem. We're trying to time market you know what do what not to do is that you know you've you've got to be right twice. You know you've got to be re going out and you've got to be right going again. And there's other variables such leisure time horizon that matter a great deal and if you have long term goals. You know you don't want to invest with short term time horizon so. You know it depends so many things in this financial world just depends on your specific circumstances. If you're twenty years from retirement. I would stay invested you know you can reduce your exposure equities. If you're concerned about risk and increase your exposure to bonds and hopefully that will limit your risk of loss to some extent. In that scenario your returns would be lower of course. And if the market crashes like it didn't 2008 well you're awfully should be less but when the market drops. Especially when your work and it's not necessarily a bad thing since you're receiving a paycheck and your your bills are being paid. This affords you the opportunity to buy more shares at a cheaper approach and so your average price per share drops this is called dollar cost average in short you're. Far enough away from retirement to weather financial storm. You know short stay invested and don't be too concerned with interest just focused on shaven. As much money as possible and keep your spending to a minimum now if your five years out from retirement you're gonna want to prepare for retirement and implement a retirement income plan you know retirement represents a fundamental change in your life. And it also means the loss of your work on picture you know so you'll need to play and how you intend to replace your work and paycheck you know human after retirement you know life it's gonna be different you know most 401 k.s the -- review most of them are correlated from marked you know meaning that if the market drops so will your 401K. In fact now's the time to calculate your risks score to make sure your not taken too much risk with your statements remember we can control for risk. We can't control the return and the reason why this is so important. Is is that severe losses early retirement only serve to increase the risk to run out of money. Before long manulife you know this is known as what we called we call this what it's a sequence of return risk. It's one of the biggest risk your financial independence. It's not the risk that the market will crash we know. They're gonna crash from time to time the real risk is is that. You're gonna have received a very were returned. Early in retirement and that statistically has shown to be a year a major risk with respect to run out of money in retirement for no one knows when the bearers. Will growl again you know it's pretty much a foregone conclusion. That another crash is inevitable at some point. That the bottom line is you just need to be prepared so you're nearing retirement. Harvested here leaves and reallocate into a comprehensive. Retirement income plan. You know that's just not a bad idea and this is why I'm so passionate about. Be well prepared for retirement and I wanna extend an opportunity. Two year right now to help you be sure to your world prepares. Come off earner couple rare review can anyone who calls 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 gonna come from how he'll outpace inflation. Pay as little as possible and taxes and make sure that you don't outlive your money now you might say. I don't really have to call in the 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. Having coach and people on retirement planning for a long time and I've learned that it's really easy to procrastinate or get distracted so if you don't start the process now. There's a very good chance that your not gonna do it at all so the first coach in that I'm gonna give used to encourage you to take the first step right now. For almost everybody that's the hardest part from there it's not a painful process so if you're ready to finally get a plan in place. Go ahead and give us a call. And that number is 806465996. 806465996. To take advantage of this great opportunity for Richard coach are really at Carolina retirement recent. He's an investment advisor here to Charlotte metro area was 200 filled North Carolina and Rock Hill South Carolina again 806465996. Is the number to call. Which itself on the calendar would return to real 80646596. Through listening to the financial symphony will be right. It's time for another musical connection. Where we blend the worlds of music and finance together. Here's friend of the show financial advisor and musician mark Lloyd and we're bronze stuff. Well here on the financial simply mark boy and I are talking about all kinds of instinct things in regards to. And orchestra. Runs that's you're always so much fun you mr. market and mark here of course being a musician and a financial maestro as well. So this is all right appear Alley markets can't wait to hear to how you're going to be swinger but time this time mark director of time in front of the orchestra. That's the way than an orchestra is divided is separate sections is a lot like the way that your retirement plan. Can be divided in different sections. An orchestra has poured different sections strings percussion woodwind and brass and and you said that back when you were playing in an orchestra. Back in school you were in the precautions that. Yes all right yeah. A snare drum nodded at the play the marimba and the bills the most block out and play the piano that's the same thing as a piano notebook keyboard if you're looking at a bells marimba yet but yeah I played all that stuff to Anthony you name I play the big tamales on the marching band. I mean Alison they're banging away and I play the piano like a drummer right now apple now really. But now if you head to divide somebody's money. And to different sects such as someone that you were working women on the retirement planning what would those sections of the. We talk about that shortly it's important to have different buckets of money we need to have a rainy day bucket. Right we need to be able to get cash when we need it. In order to be able to you know pay for a miscellaneous expense. It could be maybe the refrigerator one out we wanna pay cash for batter might even be car. We wanna make sure we have enough to pay for car. And it you know a lot of people leverage and get that zero interest for five years that's great but if you wanna pay cash not have a bill that needed to have that money sitting in in cash to be able to get that I usually say you need to have a minimum of three to six months. Of whatever your lifestyle expenses more you know to be in rainy day anything above and beyond that you're probably lose in money safely because it's not earning enough interest to keep up with inflation. You need to have the rest of that invested somewhere where they can even be low risk but where you can get to it if you need to. But I rainy day bucket of money critical but you also need. They paid big growth bucket. Because we talk about longevity risk or outlive in the money we talk about how it's important to make sure we have enough money. 10152030. Years from now because retirement were not disclosed that around and do nothing matter of fact we encourage you to enjoy your retirement spends the money and we are helping our clients that a little bit more on the front end so that we you know we but we wanna make sure we have enough to cover them in the back again dry. So we gotta have a diversified growth bucket that is still invested in the market among on brawl didn't come from it I'm using it down the road I'm layering. My risk from putting more risk and that diversified growth bucket. But I also have to have another section like him orchestra would have a need to have an income driven section I need to have those holdings in there that is all about creating income interest and dividends. Ought to collect the check every month. I don't have to sell anything market goes up we get some extra growth market goes down out I'm not selling at wallets to wallets you know down. The worst thing we could ever do folks is sell sell a mutual funds sold stock solo the F out of here what do this seller wallets down you've lost you've taken a loss you'll never get back. But if you didn't have to sell you just live off the interest and dividends that's an income driven bucket it needs to be part of your portfolio. But more importantly we need to manage the risk you don't need to go crazy risky toward retirement. So a lot like something like a protected in column I called my safe bucket the bucket where I don't have to worry about any kind of risk but I can draw income from that every month. And at the market goes up. I'm capturing my gains in that protected and come bucket when the market goes down I'm not losing anything. That's having my case you needed to cannot explain that each one of those but it has a purpose just like in an orchestra each section has a purpose and it is not designed to be one section one style of investing is designed to work. In harmony. So how do we know if you've got that kind of diversification in your portfolio maybe you think you're doing you don't or maybe you know right now at Ottawa and that kind of diversification on the lore about what he's talking about. Well it's real simple you just call us give us a call sewed up an appointment. And and take advantage of a complimentary consultation it helped get yourself on solid footing Ron tell us how to make that happen. To speed up the phone call 806465996. That's 806465996. Didn't get a complimentary review of your financial plan. Just call now to take advantage 806465996. It's time for a fireside chats. As we get to know your local financial symphony maestro. Well it's getting to know you time here on the financial symphony. This that part of the show where we step away from the financial chitchat for a moment or two and get to know Richard a little bit better outside the financial realm. And now peek inside his personality if you will we like to ask random and off the wall questions. Usually they've can be simpler kind of kooky you never know this one's pretty straight forward Richard. Basically just wanna know what's your favorite movie genre piece it down to what some than what you kind of prefer to watch the style may be. I'm an action movie guy. Others those are my favorite movies and the reason. Prime real funny is that that. They keep me from falsely you know let's just I think it. I he would actually flick I seem to be engaged all the time and I don't fall asleep you know other movies. You all start out intrigue but at some point my head kind of falls over and gets it I never see the movie. So we try to stay away from going there the fear in the evenings because I never make it through a movie even end of the year or so. I guess if so I you just you enjoy this year loves the action flicks or does lessen had to guys assume up I guess again maybe being an action adventure or something like that as well. Audio but I like against these are not going to be. I like to see new weapons Revere you think that's app after app and I mean I know it's not real but it's still fund 10 yeah well I think that's the point of movies right there's some his athleticism to it so great. Well you know it's all of those things where I think that's pretty universal for most of us guys we tend to gravitate towards that stuff so. Certainly in good company there blessed are getting today this week was Richards who drilling you want to keep his interest that the movies have an action flick. Pull out we'll be back to the financial cost in just moments program. Yeah room much like the musicians 1980 its mistakes and their instruments or analyzing the acoustics of early in the forum performance. Your financial maestro nineteen drug financial planed to adapt to the ever changing financial world. Don't settle for an advisor who offers a sales pitch and also plans to make sure you get all the right notes in your financial plan. Come visit with your financial maestro of Richard pitcher Ellie and setting the Charlotte metro area call 806465996. 806465996. Did you house produce more milk when listening to relaxing music. That's according to a study conducted in England in 2001. And recorded by the BBC yeah. Did you also know that people achieve a higher level of financial satisfaction while listening to the financial symphony. I would never recorded by the BBC primarily because we made it up but keep listening anyway. You're back here with us on the financial symphony mark Kelly alongside Richard culturally of Carolina retirement resources he is an investment advisor here in the Charlotte. Metro area give Richard a call 80646. 5996. That is 80646. 5996. And Richard let's talk about responsible retirees a little bit here in even for people who have been very responsible with their money over the years. Entering retirement is still a pretty big gear shift at a different stage of life. So let's talk about some of the missteps that even the most responsible savers can make in places to just kind of keep our our eyes out if you will. So for example cash I've myself love cash and know that it makes me. I feel good about seeing a certain number in my accounts and I think a lot of people might relate to that but you gotta be careful not to get too enamored with a rate at. Yeah. You know him. In those individuals there are gifted and the ability to save you they often. You know at a lot of money sitting cash and have come across a number of retirees that. Have in fact all of their money in some sort of cash liquid environment. Can I get it yeah you know you gotta have some cash I mean there's never going to be a moment where you wanna be cash core. Emergencies happen life happens things happen. And it's nice to know that you have access to ready cash in the event of an emergency of some type. But you have to remember that the money that's sitting in the bank over time. You're losing purchasing power because of inflation. You know there's two factors of cold too much cash financed the purchase power draw and and emergencies so you you wanna have some cash for emergencies but you don't want have too much cash because of the inflation risk in the loss of purchasing power. And it on and a lot of people are just simply really comfortable. Leaving cash at the back you know they they assumed that the banks are safe and I believe that's because of FDIC protection. But what you might not know about FDIC protection is is that you know there's really no specific time and drummers the FDIC. Must make insurance payments available so you know presently we think about this now presently our monetary base. The amount of cash flow and three economy is about four trillion dollars. Yet there's over eleven trillion dollars on deposit in banks across the country. You know that's just not a good ratios for and being safe is concerned and Nina event of an unusual. Run on the banks it's possible that there won't be any cash available for you if you should go to the bank didn't want to pull it out. You know there's always the other issue of ever increase in taxes you know as. Taxable accounts you know cash and CDs and money markets and savings accounts. You know you receive a 1099. Every single year and have to pay federal state taxes on it and again you have to deal with inflation so. You're real greater return is is probably negative especially in today's market environment. But you know these taxable accounts as your cash accumulation school row so diluted taxes that you have to pay on that so. Keep that in mind as well so it's safety. Is the priority. You know I'm here to tell you that Europe other opportunities. In the financial world outside of the local bank that will give you the safety feature looking for. And a reasonable greater return that will keep you head of inflation and limit your taxes so I would suggest that if you do have a significant amount of money in cash. Then you want to avoid the loss of perks and power and you want to limit taxation. Then you might want to look at those solar opportunities in the near future. You're listening to the financial symphony. With Richard Fisher really were talking about responsible retirees and certainly some good advice from Richard there what about too much risk Richard we all know about not taking too much but obviously as we get closer to retirement or even into it. Our time horizon as much shorter yeah you know people I'm. When they leave the workforce and enter retirement. I think at times their risk meters broken. You know I mean think about it. When the market dropped in 2008. None of us like this nobody likes the fact that there feeder counts going down losing money. But if you were working had a paycheck it didn't change your lifestyle he didn't negatively affect your lifestyle. You were working in your receiving a paycheck so your expenses were met. And you were still contribute tier retirement account so so market volatility in 2008. Didn't affect your lifestyle. Unfortunately in retirement you no longer have a working paycheck. You'll need to generating come from your savings to pay your living expenses. And maintain your life styles for the priority in retirement focuses on making sure that your money last as long as you do and because her shape means is now needed to generating income the effects of market volatility. Or the ups and downs in the market is much greater than when you were working and saving for retirement. The biggest mistake mark that I see is is that many. Individuals many of you are still invested in as if you're still working to receive an paycheck can no words. You have the bulk of your savings at risk in the market. But listen completely avoided the financial markets it's just not a solution for most of us. Especially if we're gonna keep pace with inflation and retain the opportunity for growth and future income. So structure in your assets to create an income generator returned it requires a different approach. Saving for retirement which is what you spend your working life doing and plan your retirement are two different things. Earning and saving money is different and creating a retirement income plan that accounts for your income needs in retirement. So taking a balanced approach between incoming growth that's gonna ensure. That their retirement income that you mean. It's gonna ensure the retirement income that you want and ensure that you we prepare for both good and bad economic time. Now you know the term risk I understand the death means different things to different people. For many it's something they want to avoid especially when it comes to money and protect against risk is all about protecting against the worst case scenario. Before invest in it's important to review your current financial situation. Determine your goal and establish a plan to achieve them with a plan in part be in the most important. Your retirement plan should be structured differently than the plan use saving for retirement. And again this is why I'm so very passionate about my belief that you deserve to secure independent retirement. And that's why we offer free consultation tore radio listeners to help keep you on that path. So if you call me in the next fifteen minutes and have at least 200000 dollars saved for retirement how often you just free consultation to help you determine. How prepared you are to handle retirement pitfalls such as inflation. Health emergencies stock market volatility and taxation. You've worked hard for your money so I'll work just as hard to help you protect and grow it there are a wide variety of tools and services available on the financial world. I'll show you how harsh those tools and services to create a plan that's tailored just for you and I'll show you how to achieve a lifetime of security. Thanks to a lifetime event income. So give us call the next fifteen minutes and I'll work together which you can get you on that road to financial security and independence. Call 806465996. That is 806465996. And take advantage of this great offer from Richard who's really get on that right rude towards retirement. Or into retirement as Richard says it's yard have a plan in place get a second opinion certainly nothing wrong with that at all. 806465996. To sit down with the Richard. At Carolina retirement resources. Here in the Charlotte metro area of the office of hunters hill North Carolina and Rock Hill south. 806465996. You're listening to the financial symphony will be right back. 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 with bronzed us. This is the musical connection you're listening to the financial symphony runs that Cyril would bar Floyd mark we've been talking about Alvin and the chip monks Welch a real tell. In June cribs on duality of helium balloons around here in the studio and not enough. Or album and a chipmunk impersonate you know we argue about them earlier in and believe it or not as you have demonstrated so far. We can learn a lot about retirement planning from Alvin and chip monks. The voice is for the group. Three different voices were all performed by their creator. A guy by the name of David Seville actually that was his stage name his real name was Ross back this area and which explains why you say that there are three times they didn't sit. Well back with Jerry and Magnus aryan bags area it's got to get a playback. To create these high pitched voices and these days technology is such that you can do that men are much easier way bit. He actually sped up the playback on the tape machine a real real. And those sped up voices weren't a new technique for him because he had used it in his previous hit song that'll make me sing miss again. Hollis probably about twice on the St. Joe please tell. This week we definitely been listening you ordered her to watch he had a nugget. A good kid and David Seville have a song called witch doctor. And he managed to use that technique was that my question to you is as ridiculous is all that seems what can we learn about retirement planning from that. Well fast talking works for chip out right. Yes. But if you're if you're working with a advisor or you're working with a retirement planner and it sounds like they're selling your car and just get up and go. And none against car salesman ami I've got a friend who Zocor. But I'm talking about EO fat fast pitch. You know by now or forever hold your piece on me you know it's kind of thing where you know you feel like you've got pressure and stress that's not what this is all about that you don't deciding on who you're gonna use as your financial advisor. Is one of the biggest decision shall ever making your lifetime. This is the difference between. You know living a stress free retirement a retirement that is that you enjoy. You retirement that you don't have to worry about gone back to work. And haven't retirement vs you know where your you're constantly second guessing whether or not you made the right decision if you if you're going on the road right now do you think in that. That probably there's something to that you know there is something that we have Rondo called I'll gut feeling or another name for that isn't tuition price. And of our intuition is that something might be a Falmouth something might be wrong. It probably is. So we've had a lot of folks come in and just to get a second opinion to make sure there on the right track for retirement or maybe. Opt out folks recently that have been. Self investing in and they know that there are time horizon shorter there will be retiring here or sooner. And they wanna get a second look at what do what's going on with the or strategy they have is there anything they could tweak or anything they could do better. You know the bottom line is it's very important who'd you work with the you need to be sure you're not moving through the process so fast that you don't understand everything that's happening. Just take a deep breath slow it down to work on your timetable. You know I am very proud of all of our folks that work with a us. Because we don't we don't have any kind of stipulation you gotta do it today or not do a little bit of that. We're the opposite. We're slow methodical we take our time. And at the same time we educate that way we inform you varies slowly. We want you to be able to understand what we're talking about yeah yeah there's trust involved here right get that. We would wanna make sure that you number one number one factor. But you're comfortable and when you have questions that you're not afraid to stop and ask. Instead of thinking in my dumb for not understanding what that what that person is saying no never absolutely not. We won't questions we wanna make sure. That you do understand everything and that's why we take our power and a couple committee times wrong my folks are trained. They are trained in a way to be able to explain these strategies and explain the type of investing that we do. To where this greater and understanding. And I'm not trying to say that you know our clients have the intelligence the Pittsburgh not out totally the opposite. Many of our clients have MBAs and there and and they're very Smart in what they do and I could never fill their shoes and what they do. The one thing we know how to do very well is it put together retirement plan but more importantly. Understand it there where it doesn't sound like it's the chip monks trying to do some type of fast pitch it is more like. Very slow methodical where you understand and you know what Ron. Our folks appreciated. So tell people here out listening today how they can get in touch with the house and learn how we can help them. Put together a retirement plan for their future. Just to get the following call 806465996. That's 806465996. He couldn't get a complimentary review of your financial plan. Just call now to take advantage 806465996. Your back here with us on the financial symphony were cruising down the homestretch today here on the show thank you so much for staying tuned in. Mark Killian your host alongside co host Richard who surely. From Carolina retirement resources he is an investment advisor here in Charlotte metro area. He can be counted 8064659968064659. 96 digit number to call to getting contact Richard get yourself on the calendar. And come in before that no cost or obligation consultation. And have a conversation with Richard about your specific unique situation. We've been talking about responsible retirees here on the show that the last little bit just being careful of some things to look out for even if you've done a great job saving for retirement. Being careful not to get too enamored with cash obviously you know limiting your risk the closer you get to retirement. Richard let's talk about the tax bomb that tends to get forgotten about sometimes and they can sneak up on invite him. That's so true you know when your tank in ahead to retirement. For even a fury retired you know tax planning should always be a part of your decision making from the beginning. Because if all your retirement savings during tax preferred accounts. Then at some point taxes will be due and listen Uncle Sam determines what percentage of the counters his. As a reminder remember that tax preferred accounts mean that you defer taxes on your contributions. But when you would draw income in retirement you're being taxed not only on your contributions but also on the account growth. Whereas a tax free account you pay taxes when you contribute. And distributions are tax free on your contributions and your growth so. Don't listen taxes don't end when you stop work and who OK in fact they will likely be much higher than you anticipated. For many reasons I think it goes without saying that our government will soon need huge cash infusions to meet its commitments. You know unfortunately tax deferred accounts will be sitting ducks for a revenue hungry local fan. You can pretend the problem doesn't exist or you can do something about it so you do nothing and then it's likely that you're gonna face higher taxes later on in life. The big question should consider is do you think you'll be alive when taxes are higher than they are today. If so then it might be a good idea to take advantage of the historically low tax rates today and avoid higher tax rates tomorrow. You know you have a choice of paying taxes now or later folks it's it's not a matter of you know someone's fortune and you had your choice you can you can now. Are you compare him later one way or another you're gonna pay. Too many of you. Across the nation sheen's like a logical approach when it comes to paying higher rational for years. Many of youth soccer where a massive amounts of money in your 401 k.s. Higher res for a three b.s. And the idea is you invest now in that tax deductible tax deferred account. While you're in a high tax record then when you withdraw those funds later on her retirement you'll be in a lower tax bracket when you retire or at least two hopes so. You know our country close close to twenty trillion dollars. Projections suggest this amount will continue to rise and more and more baby movers. Are going to be retiring an average of 101000 a day or turn 65. They're going to be stressed in the system Medicare. They're going to be you've drawn funds from the market there's a lot that's going on with the baby boomers and they're gonna be retiring in math. In the next 1020 years. Since income taxes began in early 19100 folks the average top marginal rate was 62%. Today it's 39 point six. We've had much higher taxes and pass with lower debt and it's imperative that you be prepared for those taxes to return those type of higher taxes higher marginal countries to return. At some point I believe that our system you'll be necessary to raise taxes. Reduce spending and hopefully correct the problems that exist in our government today. What if the tax bomb the contacts bomb that tell you may be sitting on as the concerned he reach out to Richard culturally. 806465996806465. 996 and Richard are final piece here to wrap up. I think one that gets missed a lot of times by retirees whether you've done a good job saving or not whether you're a pre retiree your retiree. It's just a member of what you're saving four and with a little enjoy yourself right. Absolutely I mean now. A lot of people retiring go back to work I mean after 34 years of work and I think it's just built into our in our system now that that's what we need to do and right. I think I might have a little bit of time settling down like that has them I enjoyed server mothers and non. I'll keep busy so. To listen. Some people I meet somebody just simply have trouble remembering that all that save and over the years which for a reason. And in most cases the purpose is to be able to retire and have a lifestyle. That you envision that you plan for. And if that's the goal then you need to have a plan. On how this money's going to translate into enjoyable retirement that you can transition from my save the mindset. To a mindset where you're able to spend with confidence. You know whether your retirement assets are modest for massive you know there common challenges. In retirement for all of us. And even though most of you are in the middle of those two extremes. We're all concerned about potentially outlive and Armani and that's a legitimate concerns so the first thing you lead on day one of your retirement. Is a reliable income stream. When your paycheck stops coming in you'll need to still pay the bills. No one how much income you'll need each month and where will come from wolf form the foundation and for the rest of your retirement. Once the foundation is in place you can then build your lifestyle. You don't lifestyle income you know this is the income that you'll spend for funds for family for adventure. Again this is gonna be different for everybody but lifestyle money news your fun money this is the income stream that's generally going to be more flexible it's going to be more fluctuate and as the markers traverse their inevitable ups and downs. So to summarize. Once you implement a plan. That creates the income necessary remained comparable. You're planning shifts to lifestyle income. You know you want to have fun you want to ensure your retirement but make sure you have a plan in place that addresses your spending now and in the future. So take a balanced approach to create an income that you need an income that you want. Is a technique that ensures preparation both good and bad economic times. So you've spent a lifetime accumulating money for retirement you've saved invested took advantage of workplace retirement plans. And now you're in a position where you have to make a lot of decisions about how to generate a steady income stream and these decisions could have lasting repercussions. The rules are different in retirement you may need to adjust her asset allocation considered different investment choices you'll need to make decisions on on the best methods to withdraw funds from your savings your investments your retirement plans. You'll want to help for capturing come and your ass is firm on fourteen events. Fortunately they're sound ways to help stretch your retirement income at all boils down to the fact that there's all these different pieces to your financial puzzle. And all the financial puzzle pieces need to fit together. So what I'd like to do is I'd like to offer you the opportunity come in for complete financial review and I'll offer you 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 instance. How much risk you take an in your portfolio and is that amount of risk appropriate for your agent for the amount of return to her actually get. How much prepayment fees and commissions with your current plan. What about tax implications understatement is your way to save money in taxes down the road by planet 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 live and thirty or more years in retirement. Andy have a plan to address inflation in future decades as the cost of everything continues to rise. Obviously there's a lot you need to discuss and I found that most people just haven't planned for early enough to address all these issues. Again this review is complementary to anyone who has at least 200000 dollar save for retirement. But the calendar does fill up quickly so go ahead and give us a call right now that we can be short get a spot reserved for you and the number. Call to make that happen is 80646. 5996. Again 8064659. 96 the command and sit down and have that conversation with Richard future really investment advisory Carolina retirement resources. Go ahead and not procrastinate take that action get started today. With Richard it only takes about twenty seconds to make that phone call in about an hour of your time to sit down have a conversation so you started the day 80646. At 159. 96 again Richard is here in the Charlotte metro area with offices in hunter's bill North Carolina and Rock Hill South Carolina. So reach out and get started today 80646. 5996. Richard thanks for real financial symphony in this week and certainly appreciate your time in your wisdom. You're welcome. Refrigerator and we'll talk you next time make you tune in for more of the financial symphony next week with Richard could drill. 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 officer Brookstone capital management LLC an SEC registered investment advisor.