What Can We Learn About Finances From Music Snobs

Financial Symphony
Saturday, September 8th
Answers to your financial questions, and what can Music Snobs teach us about our finances?
00:44:05

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

The following is a sponsored program on WBT. The financial center and this. Helping you can. Harmonious financial plan and getting you'll portfolios into. So sit back while always strike up the the financial simple it's starts now. Hello and welcome to the financial symphony would Richard's food surely thank you so much for tuning in the program today. We always appreciate your time here on the show Richard of course is an investment advisor representative at Carolina retirement resources. Serving you right here in the Charlotte metro area. Richards got an office in hunter's bill North Carolina and Rock Hill South Carolina and is available to you by simply calling 80646. 59 and 96 at 806465. And nine. 960 get yourself on the appointment calendar for no cost no obligation consultation. With Richard been doing this for many years in the great resource for you to tap into here in the area. And with that ritual commence sir how are you today drew great mark curry again I do a fantastic thank you for asking I appreciate your time. We chat a little bit before we kicked off the show here and I know that you're yankees fancy your pretty excited and the things are going for you will hear as the season winds down. Can we are struggling in some areas of of the game but they have 87 win lose now I'm here to have the second best record in the league so. Not just the American League but nationally so. Yeah but still dangerous because there are probably gonna qualify for that one game playoff between a wild card teams and that's always a dangerous situation Alia. Alia less than excited time of the year though so I know let's you look forward to these games so hopefully continued success there. And now let's go ahead and do we always do you Richard and see what people from around that area have to say our mailbag segment. We've got done several questions for you this week so let's dive in and see what miss Mary's got four issues over in Fort Mill. And says hey Richard I'm considering buying some gold and silver do you think it would be a good idea and if so could you tell me why please. And there's a lot of advertisements mentioning in pine cones so really I certainly would stay away from those print. Bottom line is that precious metals have been I trusted store of wealth per thousand years. In fact gold and silver are considered by many experts to be true safe haven asset. You don't think about this now you know precious metals are finite resource you know they're they're not controlled. By any single government or financial institution. And they have held they're inherent value. Across history and culture so no government can print. Precious metal worst paper currencies Fiat currencies. You can continue to be printed until it was completely worthless and we've we've seen that happen as well. So dorm at times precious metals could help protect the perks of power. You know in 19331. Ounce of gold had a value for your final or per ounce for thirty dollars you can have purchased a men's three piece suit. Dre shirt and a tie well today with the price of gold well over a thousand dollars. He can still purchase cements three piece suit or dress shirt and a tie and still have a few dollars left over by a nice pair of shoes. So in fact the value of the dollar today. You know it's it's about 5%. Of the dollar's value in the early twentieth century. This is due to the ongoing and debasement of our currency. You know the US officially lose twenty trillion dollars in debt. And if you include unfunded liabilities for social security and Medicare that amount jumps to about go more than a hundred twenties. Trillion dollars so unfortunately the value of the dollar is based solely. On the believed that the US will continue to honor of those promises in perpetuity. You know I believe precious metals offer unique benefit. Not found in most other asset classes you know when you acquire. Precious metals your information is not stored nor Scherer with any private or public entity. What you do which you're golden where you sure your goal is your business. And precious minerals cannot be hacked or race with a click of the mouse I think it's a good idea allocates some of your dollars of our precious metals like gold and silver. Person a lot of thousand people looking at some of these I guess more speculative type of things. Is very at percentage we should kind of just keep in mind I've always heard you never wanna have anything more than like five or 10% of any one thing is that it's a good rule for this as well. And I think every group that but I am I ever I don't see it is being speculative remember guys is not an investment okay. When you're buying precious metals you have a distinct purpose and that is to ensure war. The purchasing power of the dollar based assets that you hold regardless of how you hold them so took I don't I don't seem to be speculative IC is insurance I will good both thank you for correcting me on Masso certainly good question Larry we appreciate you sending that in and of course. If you'd like to talk with Richard further about it in more detail about your specific situation you don't call 806465996. Or if you find yourself. With some questions of your own you like talking Richard that's the same number for you as well 80646. 5996. Georgian Charlotte's got a question he says I'm about ten years Al from retirement Richard and I'm concerned about the debt our government has incurred. Should I be concerned about the debt and how this debt will affect me personally in retirement what your thoughts there. Listen if you listen to the financial news you know that volatility in the markets is a fact of life. You know the Dow Jones Industrial Average goes up and then goes down consumer confidence rises and falls. You know numbers statistics in the season now mergers bombard you daily. You know one day the Talking Heads are saying the economy showing signs of recovery and the next day. Concerned your mountain that there will be a double dip recession you know so it make sense to me. That people are concerned because that's where they get most of your information from. You know fact is that the markets go up. In the markets go down you know there's euphoria and fear on a daily basis. Unfortunately most of you focus on short term headlines and miss the important long term trends you know the official reports coming from the government the Federal Reserve. In other mental lol you into thinking things are really look enough. Yet for the millions of Americans living with stagnant wages. Rising health care costs and ballooning deficits. That picture just not that Rosie so let's look at some facts the US has the national debt of twenty trillion dollars to buy 2040. Net interest is projected to rise 18% on the federal budget. The FDIC has only about 67 billion dollars to cover. Close to eleven trillion deposited in banks and unemployment is higher than reported statistics. At some point rates will rise and have a negative impact on the market. And inflation will also. Rear its ugly head at some point. This will have a negative impact on your ability to retire comfortably so your worries are understandable. The key is to be prepared and if you're not the good news is that it's never too late the first step is identifying the long term issues that matter and keep your retirement plans simple and formulate a plan that prepares you for both good Bangkok's. Well again thanks for the question George we certainly appreciate it. Obviously a lot they can be out factored into our overall retirement planning process one of the reasons we do the show every week so. Reach out to Richard if you got questions get on account are coming for consultation. And talk more and deftly about your own specific situation. 80646159. And 96. Finally Robert and Cornelius as the question this week Richard is I believe that at some point the increasing national debt will negatively impact the economy. How does that affect us someone like me surviving this growing debt crisis what is a lot of recurring themes. Today Arthur yeah I like these questions you know I don't get to talk about this stuff often except in the office but. These are good questions are never that you know this for short glisan today's economic growth rate. Would be a heck of a lot worse if not for government spending. And that this securities market. Have to rise. On earnings posted by companies flush with federal money. But you know you can't count on the government to drive the economy forever so. Again I understand your concerns so do what you might want to consider his diversifying beyond. Your traditional investments you know in it in an environment of negative interest rates global instability. And soaring debts. It's really hard to find any asset that's not directly affected by these systemic problems so. You know I'm convinced. That everyone needs to prepare for the potential for currency instability. You know this means dealing with the possibilities of bowed deeply shouldn't and inflation. You know in a deflationary scenario cash is king. In a longer term inflationary environment commodities especially precious metals can play a role. With today's uncertainties that may not be a bad idea to have vote and remember returns are not what they see. You know you must evaluate your wealth in terms of purchasing power and no in a country with an unstable Fiat currency. You know simply designing your portfolio to McCain returns. It's just not enough. You know you must design into whether the type of inflation that is followed every major expansion of the money supply. Throughout the history of Fiat currencies. And don't count on the status quo. One of the worst mistakes many of you make your bed and on the false perception that your home injury and calm your network will increase indefinitely over time. Even in economy free of government debt and strong job growth those of you don't plan for the worst replaying the game. Reese game. Listen at some point the federal government must take steps to address the debt. This means that your taxes will likely go in the future so don't plan your retirement savings based on your current tax burden. And the belief that future proposed tax cuts will be permanent. Never assume your income levels will stay the same or increase. So I believe that you should diversify your portfolio to include precious metals precious metals have proven to be a store world that has with stood the test of time. There is only one asset class that can be categorized as safe haven and national gold and silver. Unlike paper based access personal may perform well when the federal budget deficits are finally address. There's gonna be painful spending cuts and there's probably going to be tax increases so. Diversifying with gold so over you know it's just a common sense strategy that all of you should consider. You must take concrete steps now otherwise when the time comes he try to rush combined those medals. Interest won't be enough available so you must take concrete steps now. Let's preserve and protect the perks of power of your wealth or face the potential consequences of a reduced lifestyle. Retirement. You know currency devaluation. Is such a destructive portion of a 20%. Annual return on your investment is worthless if their currency you hold worth 20% less at the end of the year but it wasn't to begin. When our government prints money it avoids politically difficult decisions like content spend all the money can be printed value cannot. By pretend it's way out of the debt crisis the government levies. A hidden tax on Americans who have saved and invested their well. That tax. So it all boils down the fact that all the pieces of your financial puzzle need to fit together. Who I like to do is offer you the opportunity to comment for complete financial review. And I'll offer you this review for free to all listeners who have at least 200000 harshly for retirement. And I'll talk you through all the different puzzle pieces that you need to consider for instance. How much risk you take and we your portfolio and is that amount of risk appropriate for your agent returned that your gift and how much do you pay any fees or commissions were your current plan. And what about tax implications on your statement is there a way to save money in taxes down the road by plant in 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 Livan thirty or more years in retirement. Do you have a plan to address inflation in future decades as a cost of everything continues to rise. Obviously there's a lot that we need to discuss and I found that most people just haven't planned for early enough to address these issues. Again this review is complementary to anyone who has at least 200000 saved for retirement. But the calendar does fill up quickly so go ahead and give us a call right now that we can be sure to get a spot reserved for you and that number is. 806465996. To take advantage of this opportunity from Richard who drilling in get on the calendar today. 806465996. That's 8064659. 96 a lot of great content here we're discussing today would return to drilling. On the financial symphony so stay tuned there's much work on the day on the program reach out the other counter right now he's back in just a moment. It's time for another musical connection. Poor people in the worlds of music can finance together. Here's friend of the show financial advisor and musician mark Lloyd. Withdrawn stylists. It's done now for another musical connection here on the financial symphony rice that's eleven mark Lloyd and mark let's talk about music snobs. But at the people who love music snob yet. You and I are big music enthusiasts semi we'd love music but we've all encountered people who we consider to be snobs when it comes to their preferred brand of music. Don't you be an example here their classic rock snobs who think that there's no good rock music it's been written or performed since about the middle ladies. And unfortunately I think I knows the musical theater club and I are classical as you obviously have some bases and and named in your head right now yeah I think goat I absolutely get. There are classical music snobs who think they were all about two rooms for listening to anything that was imposed in nineteen sentry Germany. Right wing moon walking you know we looking down on you because you like other stuff. And there are people who like different types of music but to test any thing this country because they think it's only about. Drinking and then trains imprisoned in dogs how. Hello I'm not a lot of it is. They're divorced such a competitive and expect breaking up mobbed Lee I'll probably be no more slowly early. Let's got to the stereotypical. Country to now against Mitt I got my mom and a prison and jail. I am so proud that my kids in my 42 year old yeah loves all kinds of music yet. He will listen to the Sinatra Frank Sinatra channel on serious and let them. And at the same time he likes contemporary music and he likes classic rock if I go to a classic rock concert how commune take mean. Here I am so happy that I that I'm much at least my bloodline. Loves all kinds of music like I do. It's much the same in my family and I think we both did a good job of instilling in me appreciation of all kinds of music would those kids this year. But interestingly we see the same kind of thing in the financial world these days and how are their financial snobs mark. Well there's the you can see advertisements. Out here today full page ads that if you don't have all of your money in the stock market. You're making a mistake. Watch that doesn't make sense to have all of our eggs in the stock market. You know especially especially the closer we get to retirement but don't even think about using any kind of other alternative investment because it's wall to do. That's crazy. I'm telling you all my years of doing this over twenty years of doing this. All the experience I have I know the most efficient portfolios we have put together that are designed to last a lifetime. Our diversified. We don't even have a in the same kind of strategy we have different buckets of strategy that we use on purpose. Because we want to be able to draw income from different sources and not rely only one kind of strategy. I had a couple they came in and they were 74 and 72. Jerry in and Martha and Algerian Martha portfolio was invested one away with one broker. And it had 30%. Downside risks which means that at the market had another crack sobered eight. It could've dropped 30% and when I asked him how much are you willing to let the portfolio. Dip before you get a little nervous. His answer was yeah whoa. No unknown. But I know that has got to go up and down I probably. Can withstand. You know 5%. Or 10%. And I didn't know how much risk he had when I asked that question. And it do we plug although holdings into the software and it and we hit print. And it spit out the report. And I looked at it as a wo me three times over three times the amount of risk. And that they had no way of knowing they were trusting that the broker they were working live. Was investing it based on there philosophy and here's the interest to your sad part they have enough money. They can live comfortably for the rest of their lives they do not have an income problem. This is only about protecting what they have for their errors and doing things that they tax efficient way and creating income because of the because he's over seventy and hang out. This was so easy to solve but you know what's sad. Is that there's people out there that only know one. Way of investing. And if you don't deal with their way. It's the wrong way and let me just tell you right now vax wrong because we. Show you different ways of investing. And it makes sense when you put it altogether but that pieces to a puzzle together and if you wanna learn how your investments are structured and and if you are diversified enough and you have your risk under control. You need to give us a call right now and round gonna tell you how to do that. Distribute the following call 806465996. That's 806465996. Didn't get a complimentary review of your financial plan. Just call now at a take advantage 806465996. It's time for a fireside chats. As we get to know you're a local financial symphony maestro. Well it's getting familiar time here on the financial symphony was Richard who surely. We step away from the financial talked for a moment or two and ask Richard usually random and off the wall question just to get to know a little bit better. So you feel like you know the fellow when you come in and sit down have a conversation with them and these can always get some kind of you know some sort of interesting from time to time here so. Richard is an odd question for you this week puts a place that you visited that you never want to return to again San Francisco really tough guy. I'm not a big fan since Francisco food straight and had a guy that's the bread and some of the restaurants I went to were excellent you know restaurant they did feel it is Galliano that was a great meal who but the deal is is there I mean this city is absolutely Greeks and I mean it's just a walk around San Francisco is not an exciting experience any longer you know magnets that. If I traveled to California I'm going to Coronado island hotel Coronado on the beach down there are loaded down there weather's nice videos just producing excellent catch up. And they travel quite a bit too at a low things you enjoy to do is go check out a lot of the different ballparks around the country. So does that kind of value you know Kelly came across to San Francisco thing was that something different yes we had gone to giants game bog down now. In Nash spent some time there after the game. I just don't need to go back now and I've been ballpark it and video at its exit off the list with eight. All right all they got told it was a weird question this week hey it is what it is though. That's are getting in that you this diamond will what have more financial talk here on the other side in just a moment or two so don't go anywhere. This is the fine. Traveling. Bullets in the news time here on the financial symphony would like to grab a headliner so that's making its way around here we have the news channels. Can get Richards take on here on the show our Richard we've seen the market sell a lot of new record highs you know recently really just all over the place right as a financial advice. Or do you get excited about these new records like that. The heck yeah yet but let me explain who can't get. Doesn't that tell how I was what 26600. So what's up like I guess it was in January and then recently here in August. And we got over again and you know 126000. So that might be an indication. That doesn't correction might be over I mean I don't know for sure Brent Wright but typically if you have a high and then drops below that high. And eventually hits that high again. That would be an indication to me be the correction that we but I experienced this year. Over those who remember the markets go up to markets go down and sometimes they go flat and yeah I mean who doesn't like when the market goes up. But it got a good advisor. Is more concerned re preserving your capital. And when the market memorably goes down. This is when the good advisors were shrine so yes I get excited when my clients profit from an upward trend. But it's more satisfying when losses were limited Dorn inevitable bear markets. You don't know words I would rather cap your downside making sure that you don't let a small loss become a big loss. Once the market begins to plunge you know there's just no talent where it's gonna stop. And when you design portfolio that when we sure losses to seven or 10%. You preserve capital to invest for another day who unfortunately. Most of you don't want to take a loss of any kind let alone seven and 10% so you wait. And you hope until the losses gets a larger caution dearly this is by far the number one mistake. They're most people make weave their investments so if you're concerned about the potential for lawsuits if you're concerned about the potential for another bear market. If you would like to know. Exactly. What your maximum drawn down is another words your potential for losses. Just give us call at your convenience. And will be happy to sit down and address that situation for you. 806465996. That's 800. 6465996. This has been in the news here on the financial simply more come on the program after this show. 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 residents on our darkest days. So as you look back on life and remember the music strikes or take a moment to look forward to your retirement. In the meantime 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 materially. Serving the Charlotte metro area. Call 806465996806465996. 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 the traveling that critics see improvement. All those little details happen in the background without us noticing and you know legend George I need to maestro puts together a financial plan for you are in much the same plane naming the process it's easy for you on the surface. And you'll get tomorrow we'll get the finished product. Your client. But don't forget about the all important each killed in an effort that I'm going on in the background to wrap your financial masterpiece. And remember your plan should be paying beauty come visit with your financial my strength Richard did you really serving as Charlotte metro area. Call 80646. Tied 996. 80646. KB 996. Johnny Cash is a state was approached by an advertising company asking permission to use the ring of fire on a net for him right greens. The request was freaky. On a similar note here financial symphony we requested that Johnny Cash the state allow us to use Folsom prison blues is our theme song. That request was also refuse. But keep listening anyway. Well your back you with us on the financial symphony with Richard future really investment advisor representative. At Carolina retired resources 80646159. 96 your number to call here in the Charlotte metro area to get yourself on the appointment calendar. And a have a conversation with Richard which really at one of his two offices whether it's hunters hill North Carolina. Or Rock Hill South Carolina 80646. 5996. I got a fraud hang hammer throw Richardson you're gonna have to help me through this section here. He doesn't wanna go label let's talk a little bit about mutual fund concerns. You know mutual funds can be a good tool for investors with smaller portfolios. He is seeking professional money management especially young savers is starting out. So let's talk about five concerns of of mutual funds and why retirees. May need a new approach so we'll start off overture was diversification. Gone wrong explain to us what you're talking about here. Plain and generally diversification is a benefit which is one of the reasons many people buying mutual funds in the first place. Unfortunately mutual funds can cause over diversification. And your wife you know I find. That many retirees who invest in mutual funds have anywhere between five and ten. Mutual funds in their portfolio on average an equity mutual fund holds about a 150 to 200 stocks. So only intend mutual funds could mean have been between 15100 to 200 securities. For more so when you have this much exposure to so many stocks matching the performance of your overall market you can just be typical ones fees are considered. And this strategy may also result in unknowingly concentrating too much of your savings. In sectors are specific stocks so many mutual funds contain the same holdings. Which will increase risk cannot be creeks and the managers. A different mutual funds don't communicate with each other about your world portfolio. So one mutual fund manner may be buying the stock while another one. Sells the same stock which may cause your Holmes to incur additional training costs for no net change your position. So owner many mutual funds especially from the same fund category may lead to unnecessary portfolio overlap. Another words to seemingly different mutual funds can own the same set of stocks. And it's such a scenario. There's no real purpose of holding these two mutual funds this leads to redundancy and at least increased risk there can be a real danger mutual fund overlap. And you may not be as diversified these things. Yeah we've seen that before when people have written Christians into the show and talked about having you know of 1215 even twenties sometimes mutual funds. And a lot of times in those situations Richards is it mostly large cap stocks at all and is that where a lot of overlap comes from Mary traditionally I see a blend of guys between bond funds in the stock equity funds and you know and they try to get as much diversification as they can you know you'll see mid cap large caps but. But more often than not. I see people we've done like three mutual funds are all large caps took on an annual overlap percentages almost like 60% how well look like so what about the lack of personalization does that kind of feed into that is it where it's just kind of people are being tossed out stuff and they're just grabbing whatever you know as is I guess the hot topic at the time to some extent. You know when it comes to investing in you know have a personal relationship refinement to professional is good I think is really important to know that mutual fund managers. You know they don't know who you war and will likely never know your specific investment needs so there objectives may not coincide with your investment goals. Peter current planned needs to be aligned with you're actually even those financial Jackson showed prior to retirement. In a while general goals like create an income were long term growth are common goals or retirement factors. Such as your your time horizon you know your life expectancy. You're risk tolerance you know it varies. From retiree to retirees so unfortunately many mutual fund companies follow sure mandates. With respect to portfolio allocation. This limits the manager's ability to change their asset allocation based on market conditions. And many mutual fund managers won't adjust your strategy to reflect your changing goals and needs. For example. A young receiver with no income he's probably have a longer time horizon while sixty year old with facets save your generating income in two years. Might have a very short time horizon. The mutual fund manager won't know the difference so the very important allocation choice falls on you. You know with mutual funds your merely an anonymous member of the investment pool. So when it comes to something as important measure invest in future. Flexibility. And awareness of your situation is so much time mutual fund companies offer neither so unlike mutual fund managers. I get to know you personally cannot take the time to understand your financial situation. Your financial goals. And then I recommend a portfolio strategy. Not concerned about your time horizon your life expectancy your income needs you know mutual funds obviously can be convenient for more portfolios in younger investors. But retirement represents a fundamental change in your life and how do you manage your savings requires fundamental change as well. So I believe that you deserve a secure independent retirement and that's why offer free consultation in my radio listeners to help keep you on that path. If you car next fifteen minutes. And have at least 200000 or save for retirement. I'll offer you this free consultation help you determine how prepared you are handled retirement concerns like inflation. Health emergencies stock market volatility and taxation. You work hard for your money saw work just as hard to help you protecting grow it there are a wide variety Colmes. Services available in the financial world I'll show you how harsh those tools 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 of income. So let's get to work now to he'd get that back space approach did you deserve and get better answers your financial challenges and objectives. Give me a call next fifteen minutes and I'll work with you to get you on that route to financial security and independence. And that number is 8064659968064659. And 96 go ahead and take the 21 seconds it's gonna require either. Our call inning give yourself on the counter leaguer contact information Richard and his team we'll get back reviewing gets a scheduled court time it's convenient for you. The commander of that consultation again no cost or obligation to get started just reach out and get on the calendar today 806465996. Talked Richard. Who drilling investment advisor representative. And Carolina retirement resource. We'll be right here in the short metro area. More coming on the program this is fine. Wherever you go there I had. Following lurking stinking alone continuously nibbling away your hard work. The video. C. Don't be afraid of hidden fees in your portfolio. Come in to meet with their financial maestro for review of all the fees in your current plan. Let's see if we can eliminate those pesky. Didn't see. I'm. Come visit with your financial maestro and Richard that you LE sipping the Charlotte metro area. Call 806 point 65996. 806465996. Timing is everything. In music as well as life. Having the right tempo and rhythm helps all the musicians in the connector lock into place and ensures smooth and steady performance. The same can be said for your financial future where timing is everything. Having the right person to guide you through your financial concerto can make all the difference. Timing and tempo in life in music and in retirement. Is everything. Come visit with north financial maestro and Richard Richard Elliott. Serving the Charlotte metro area. Call 806 point 65996806465996. Much like the musicians 1980 its mistakes and their instruments were analyzing the acoustics of early in the forum performance. Your financial maestro nineteen to a 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 did all the right notes in your financial plan. Come visit with your financial maestro of Richard Richard Elliott and serving the Charlotte metro area call 806465996. 806465996. You're listening to the financial Anthony that show that makes your your financial plan at that perfect fit. Well you back here Willis on the financial simply were cruising down the homestretch here today on the program. I've been talking when Richard which really about a lot of great content today on the shows that you just now joining us thank you so much for tuning in. We've been discussing mutual fund concerns we're gonna get to that here again in just the mall of the before we do. Let me remind you that if you'd like to reach out to Richard to get yourself on his appointment calendar it's so so easy to do you simply just have to call 8064659. And 96. Please contact information the team we'll call you back and schedule you for a time. That's convenient for you to come in and have a conversation with Richard about really whatever is on top of your mind and he'll help you in any way that he can't. But you do have to get on the counter because it does fill up pretty quickly so. 806465996. Talk with Richard and investment advisor representative at Carolina retire resources right here in the Charlotte metro area. They're richer we were discussing mutual fund concerns earlier in the segment in the program actually and we. Discussed diversification gone wrong. That kind of lack of personalization they can be found in their as well so let's get a few more key points here we talked about the five concerns of mutual funds. And why retirees may need a new approach that was two albums so number three here hidden fees and heavy costs. Obviously always a big concern that's true. You know many of you unknowingly paying more in fees and expenses owner mutual funds and you realize. You know they can be costly as these can stack up quickly and take a significant Biden your returns before taxes even coming to play. Even though load funds which are free of initial sales charges can charge numerous management fees that aren't obvious. These add up off an increase in the total cost by as much as one or two percentage points. And decreasing your returns over console 1% fee difference may seem small but it can be have a dramatic impact. On your portfolio over time so it's important that you ask your advisor or broker or mutual fund company. For a detailed description of all your fees not just the advisors speed which can be assessed in a variety of different ways so some fund managers. You know those charges sales load that's known as they for an end or back end sales load and each charge when you buy or sell their shares. In addition. You often pay a management fees as well as other fees such as twelve B one fees and operating costs. Plus funds with a high turnover ratio can mean more commissions as a fund manager buys and sells securities within the mutual funds. You know these fees are in addition. To the advisors fees so. If you if you think that you're only paying your advisor. A 1% or one point 2% and you have nothing but mutual funds your portfolio. It gears are good likelihood that you are paying much more than that 11 point 2%. You know these layers. Fees they can be burdensome. And you know when all is said and done you're looking at anywhere from two to 4%. In fees in these funds. And higher fees make it difficult to reach your long term goals and unfortunately these fees are for less than transparent as are not posted on your monthly statements. Making it difficult for you to know exactly what your pants you work hard to accumulate your retirement savings and you need to know that there are better options think costly mutual funds. OK so a lot of these things are gonna factory into the concerns that different people have. And it's obviously a good idea to have a conversation about what's bothering you what's your worried about things of that nature. And so lack of communication is another one of these five concerns we're gonna talk about does this kind of go hand in hand with the personalization Richard or is it kind of its own issue. When I think it goes hand in hand I mean yeah when you have a personal relationship with a financial advisor for financial professional in hopefully be communication is there as well right on that's not always the case but that the goal. Behind having that personal contact. With him with a mutual fund company no that's not gonna happen if you don't expect much of it. In a way of communication or explanation from a few mutual fund manager. As that personal interaction and communication about your retirement goals is rare you know mutual funds can have thousands upon thousands of shareholders. And personal communication is just not standard industry practice think about this now. When is the last time you called your mutual fund manager to ask why the fund is up we're down for wire certain stock was bought commercial. Has your mutual fund manager ever called you or your visor achieve your objectives and change and to make sure the fun is achieving your retirement goals. Or to see how planned changes in the fund might impact your tax situation. You know annual mutual fund prospectuses and generic letters to you. It's just not enough you know so you deserve frequent interactions and personalized updates about your retirement plan. And to have your questions answered quickly by a skilled professionals familiar with your unique needs. We listen to the financial symphony with the Richard future really were discussing mutual fund concerns that. People have a lot of times when it comes of this thought type of investment vehicle of course if you'd like to talk with Richard. More and deadly 806465996. That's your number to call here anytime on the program 80646159. 96 to talk with Richard get yourself on the calendar and come and visit him and his office and they're hunters go Carolina north Rock Hill South Carolina. Either way right here in the Charlotte metro area. Richards available to you 8064659. 96 so finally Richard I guess our fifth such concern if you will. Yeah on the mutual funds that have been talking about is the tax a disadvantage. Talk just about that no one fort. Really and unknowingly. Many of you sacrifice tax efficiency when investing in mutual funds. You know in addition to the fees previously discussed. Mutual funds often have certain tax disadvantages that may negatively impact your learnt from returns. You know like stocks profits on mutual funds and taxable account obviously capital gains tax. But unlike stocks to be held accountable for any capital gains the fund incurred as a trees throughout the year. So you have no control over win or what the funds cells or wind it distributes their capital gains to year. Additionally mutual fund her can be accelerated by the need to meet requests for cash not only cost you commissions. But also potentially increase in the capital gains you incur and because capital gains in the mutual funds are distributed to individual shareholders. Of the fun you could end up paying taxes on these gains in the year when you don't Sony shares herself or even when the overall funny current laws in other words. You can lose money and still have to pay taxes again you've worked hard to build your retirement savings and you shouldn't. Have to be worried about paying an unnecessary taxes yet each year be sure funds are required to take any capital gains they generate from selling their investment holdings. And pass them through do you in the form of taxable capital gains distributions. Unless you own your mutual pushers and a tax deferred account like and higher rate. He must include those capital gains are your tax return as taxable income even if you reinvested distributions straight back in the mutual fund and never saw penny of the money yourself. When you invest in mutual funds you place your money in the hands of professional manager. To return on your investment depends heavily on the manager skill and judgment. And researcher Sean that's you portfolio managers are able to outperform the market. Some really passionate about our community being well prepared for retirement. And I want to extend to you the opportunity right now to help you be sure that you will prepared. I'm offered a culture merry financial review you if you call the next fifteen minutes and have at least 200000 dollar safe retirement I'll talk about your retirement income needs. Where that income is going to come from. How he'll outpace inflation pay as little as possible taxes and make sure that you don't outlive your money. Now you might say I don't really have to komen next fifteen minutes and yes it's true. You can probably take care of it next week or even next month but here's the deal. I mean coach and people on retirement plans for a long time and I've learned that you really easy procrastinators get distracted. So if you don't start the process now. There's a very good chance that you're not gonna do it at all so the first coach in the I'm going to give you is to encourage you to take the first step right now. For almost everybody that's the hardest part from there it's really not a painful process so if you're ready to finally get a plan in place go ahead and give us caller right now and a number again is eight. 960 get yourself on the appointment calendar with Richard to a drilling. You know if you're concerned about some of these things even discussing via the five concerns of mutual funds whether it's diversification. Lack of fertilization. Hidden fees heavy cost lack of communication the tax disadvantage these things even discussing or even more hasn't had to be about mutual funds if you've got some concerns and our questions about your own retirement journey. Richard is here to help you out but you gotta get all that important calendar as we said 806465996. Those slots to fill up pretty quickly so we encourage you call right now 80646. 5996. To talk with a Richard what you really investment advisor representative. At Carolina retirement resources right here in the Charlotte metro area Richard as always thank you for your time on the program a friend hope you have a great week. I will thank you so much absolutely able do it all again next time right here on the financial symphony whip Richard pooch around. A registered investment advisor. BCM and Carolina retirement resources are independent of.
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