What Can We Learn About Finances From Musicians Who Have Struggled

Financial Symphony
Saturday, June 23rd
Answers to listener questions and what struggling musicians can teach us.

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

The following is a sponsored program on WBT. No financial symphony. To the helping you can. Harmonious financial plan and getting your portfolio in two so sit back while always strike up the the financial sympathy starts now. Well hello and welcome to the financial symphony with. Richard through drilling. Is an investment advisor representative at Carolina retirement resources serving you in the Charlotte metro area with offices in hunter's bill. And Barack kill South Carolina. If you live and any of those there isn't really anywhere you can hear our voice giving call fuel reach out of the team call 806465996. Nets 806465996. And with that Richard good morning and welcome to the show how we doing wonderful market redo it I'm doing great it's good to be with you on the show as always and we want to kick off the Saturday Richard with a couple of listener questions we get great questions on our request line from folks all around the area here let's kick it off with a question from Rhonda in Charlotte. Rhonda says Richard Arnold about 5000 dollars Livonia each month and retirement and my social security and pension will total about 5300. Does this mean I'll be able to leave my entire 401K behind my son. We know Robert your form located A you know that's your retirement savings in although I'm happy. To hear that you have a pension to supplement your Social Security united presently covers. You're living expenses you don't need to plan on using the funds in your 401K in the future. And the reason for that is primarily inflation. He seem if we averaged just 3% inflation over the next ten years. You're gonna need about 6700. Dollars to live on each month and over twenty year period. You're gonna need about 9000 dollar per month so is inflation erodes your perch empower. Because the cost of living increase you'll you'll likely need to draw on your 401K. To make ends meet. In addition to that etc. you have to have to start taking your record minimum distributions from your 401K. And then there's always concerns about the cost of medical care and the taxes you know I understand your desire to leave your songs something wants to pass but. You know you should plan for them advances or strategy you can implement that could multiply. How much you can leave him without sacrificing your comfort in your goals and retirement. Obviously life insurance is useful tool to ensure that your son receives Yost says she would like to leave him. While meeting your financial goals that you set for your future your retirement but life insurance is so much more as this traversed. As a financial tool that can meet many different names so life insurance would provide a tax free death benefit. It can be structured as an investment they can pay down debts he can provide access to death benefit. While you're alive for chronic illnesses commercial home and can cover state taxes and other costs associated with the SO. You know what I'd suggest you do is it is meet with a trusted advisor put together comprehensive financial plan that meet your financial goals and bite organize and and advance. He'll make sure that your wishes are carried through and once completed you will be able to relax and enjoy your retirement. Think your question Rondo of course if he'd like to meet with Richard and his team you can do so by calling the number 80646. 5996. That's 80646. 5996. All right let's move over now Richard to Ted for milk. He says it seems like inflation hasn't been very bad recently so I'd be worried about it in future years. First thing worrying never solves anything kid you know that yes you should be concerned about inflation in the future in fact. A study are ripped from Mali on their 2016 inflation study. My deal was talking about two years ago. It looked americans' perception of inflation and study revealed that 47%. Reported being very concerned about the rising cost of living and how will impact your retirement plan. You know while 36% were either worried very worried or panic and that they won't be able to afford. Lifestyle they've come to enjoy due to rising costs. You know it's true inflation has been relatively low over the past two and a half decades as its average slightly. Over 3% on ninety's about two and a half percent to 2000. Its average about four point 1% over the past fifty years. You know which underscores how low it has been recently regardless. He should be concerned about inflation even a relatively low inflation will more than double the cost of goods and services -- your average life expectancy. For helping 65 year old. Unfortunately fixed income investments are not likely to produce a return that is high enough to permit adequate we're drawl and keep pace with inflation. And since Social Security has an automatic cost of living adjustment guilty and you know you'll want to maximize your Social Security or current plans. Should examine. The best ways to maximize Social Security benefits to get the most from this inflation fighting feature. Then you'll want to prepare for inflation are retiring by building the substantial savings. I keep a sufficient percentage. Of your assets and equities to fight inflation while equities have historically shown more volatility. You know than fixed income they also have historically faired well in relation to inflation so. You want to establish an asset allocation strategy that allows you to take advantage of the volatility in the financial markets. Without affecting your retirement income and the best way to do that is to implement two different strategies one for income. And one for growth you know the future's uncertain and retirees like yourself should be concerned about inflation plan and help prepare for that uncertainty. That's right the future is uncertain but rather than worry planned get a plan in place. Then I would hope you two face that uncertainty with confidence knowing that whatever happens you will be taking care of in retirement. If you'd like some help from Richard who trillions team Carolina retirement resources simply call 806465996. That's 806465996. But that question Ted and now Richard let's take one more from Mary. She is an Iraq kill and she says I have a stock brokers that have worked with for thirty years wants a long time long before I even moved here in Iraq killed. How are taken very much and I think he does a great job but I really am no way of knowing. How can I agreed his performance. Well you know you can always get a second opinion merry you know in general. I think most of you understand the value of them came in the second opinion whether it's for your health or your families. When you re search all the options. You know gathering information and get second opinions. You tend to have more peace of mind a better understanding of the situation. And potentially a better outcome to your decisions. For you should treat your finances the same way you know if you seek out a second opinion with your money management you could see the same benefits as and other areas of life. And avoid repeating past financial mistakes. You know many of you avoid getting a second opinion because you're just comfortable with your current advisor or you fear making changes not knowing where restore. Or simply put an offer another dam broke across the nation is something that we all do. Or you assume that if you keep doing what you're doing who will be OK but you know according to an article in Forbes. While many of you are quite confident about your retirement and financial future. In most cases you're not truly prepared now to meet this indicates that many viewers simply investing your savings as you've always done. And if you have a plan he let gathering dust without review unit or modifying it to see if that plan can be improved. We'll hear why you should get a second opinion. If multiple advisors. Offer similar advice independent of each other. He gives you the confidence that your plan is appropriate for your goals. If they contradict each other they can each explain why they're making specific recommendation and help you better understand your options. And it Osama advisor may promote certain products for investments over others. But the new deal will rules require that anyone advise you wanna retirement account provide unbiased advice so. Get a second opinion from an independent fiduciary advisor. Can help eliminate doubt of voucher plan Mary's. You know and folks I understand that retirement income planning can be complicated it can be overwhelming and to make the best decisions possible. You know you need to create a plan that helps you feel secure confident. And it's important work with a qualified and experienced financial professional we get that done. If this is where I come in you know we're meeting with me you can expect to have the opportunity to communicate what you want. Tell me where your past decisions and plans have taken you've. I wouldn't give you an unbiased advice based upon principles not products. We walked through our findings on your finances and discuss how he may improve potential and con so you're not sure you're on the right path on how he should be managing your retirement savings. Go ahead and give me Cohen next fifteen minutes. Now custom designed for you and easy to understand financial review that will indicate if you're in need of a full blown financial plan. There's no obligation or cost this initial review all callers who have at least 200000 dollars saved for retirement. So if you meet those qualifications here's what you can expect. First I'll run a Morningstar analysis and comparison report to help you untangle what it cost you work with your current planner advisor. As well as how your portfolio may perform Doris from your market downturn. We'll show you how to protect your investments and keep more of your money in your counts. Next hop performance chart for analysis to show you how you could possibly producer touches and creature cash flow. And finally our create a customized lifetime income planned use of proven strategies and techniques that could Turbo charger retirement income short hop take the guesswork out of financial planning for you so for all caller to call an X fifteen minutes mark. Comprehensive financial review being offered no obligation. To get that comprehensive financial review just call 806465996. That's 80646. 5996. Come in for a visit with Richard couture really in the team Carolina our retirement resources call 80646. 5996. Would you call that number you'll leave a message somebody from the team won't call you back you don't even have to have your calendar. All hand right now he can handle that later for now just call 80646. 5996. That's 806465996. You're listening to them financial symphony and there's more. Mom went. Wherever you go. There I had. Following lurking stinking alone continuously nibbling away your hard work. I didn't see. 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 AD. I'm. Come visit with your financial maestro and Richardson to LE sipping the Charlotte metro area. Call 806 point 65996806465996. Did you know the Hermione is the world's best selling musical instrument for more interesting information about the. Financial world keep listening to the financial and and this is the financials and then with Richard which really I mark it would alongside Richard dutrow really. He is an investment advisor representative Carolina retirement resources. Serving you in the metro area with offices and hundreds villain Rock Hill South Carolina. If you like to reach out to Richard and his team you can do so by simply picking on the phone and calling 80646. 5996. That's 80646. 5996. Richard. Let's gets proverbial on this segment how about it. And what I mean by his own talk about the proverb from the Bible it's proverbs 1618 and it says pride goes before destruction a haughty spirit before a fall belief. We've all heard that when we may be quite simply saying. Plain English pride go with the for the fall right. So let's talk about some of the ways that pride might manifest itself annual financial planning. Perhaps may be more in the form of overconfidence we don't want to say that. This is an egregious sin in your financial life but it came to toon trouble. If you're not careful so as an example Richard. If you're overconfident in the stock market right or maybe your ability to manage to maybe manage those ups and downs manage that risk on your own. That could spell trouble. For you down right absolutely you know from a behavioral finance prospective. Overconfidence is a decision making bias. Take your opponent you know psychological studies show. That although people differ in their degrees of overconfidence. Almost everyone displays it to some degree for example. Much more than half the population claim to be above average drivers. Or have an above average sense humor and there's also a tendency for individuals to place too much confidence in their own investment decisions beliefs and opinions so. Think of confidence as a continuum. You know lack of confidence is paralyzed and self confidence is good. But overconfidence is deadly. Overconfidence can cause real problems for you when you mistake look for skill. For instance when something turns out well. After decision you've made he claimed credit however when something goes badly he came to see this as just bad luck or misfortune. You know many of you fall into the trap of believing you can pick when investments as a result you sometimes put too much of your favorite one single investment. Which can be very risky you know research shows that picking women investments is incredibly hard to do even for professional investors and those of you. With too much confidence in your skills often buy and sell too often which can have a negative effect on your return general re sure sure lose. To those of you who buys so often aren't the disadvantage compared to those who take a long term view and trade less frequently. Confidence implies realistically trust and in your abilities while overconfidence. Usually implies an overly optimistic assessment of your knowledge or control the situation. And all you have individual gold desires fears and hopes for retirement. But you know you all have different habits shown different people you trust Ford vice different beliefs about the right decision on many occasions. But you all exhibit very similar psychological biases in your financial decision making which could lead to poor purport don't choices and subsequent investment performance so. It's a fact that most actively managed funds don't beat the benchmarks. Often it's not knowing too little bit leads us about financial decisions the problem is is that we don't know as much as we think we know because we're overconfident. And Richard another year that you can be overconfident in this certain amount of money that it takes to get to retirement right so let's say that you're the type who says. Once I get to a million dollars then I can retire. Well maybe that's the case but maybe not when your hearts. Pretty common though most of you think you'll be able to return comfortably. But you know most of you aren't nearly saving enough to meet our gold. For many of you believe that a million dollars a benchmark to achieve a successful return yet study after study reveals that many of you were too overconfident. About your retirement and those of you who are overconfident. You know you have a tendency to put less of your paycheck toward saving for retirement and generally have smaller contribution plan balances than those who are under confident. You know I think the problem begins with a lack of education about retirement plan and and the more confident you more or less likely you'll be open to sound financial advice. In the worst case scenario you know you make completely disregard the guidance of your advisor opted to take charge of your retirement instead. And when you're not well versed to deal with extreme surrounded retirement plan. It causes many you take short cuts and overlooked a harsh realities of long term money management. You know I once met a couple that had over a million dollars in retirement savings and they were drawn off 5% annually to cover their expenses and their lifestyle. And then the market crash and they lost 50% of their statements they know how do we draw. Twice as much about ten per cent annually to maintain her lifestyle. Unfortunately the only solution for them was to scale back their lifestyle. You know they were overconfident. The they have enough for retirement and they forgot to implement a plan to guarantee income for as long as they live. And many of you underestimate how long you're gonna live following retirement I hear this day in day out. You know if you plan here yearly income based off this incorrect number you have an incredibly high chance of run out of money when you needed them most in addition. Many of you also overlook the issue of inflation you know the money you need to retire now. Won't be the same in 51020. Years down the line so there's several risk. You must prepare for weren't planning for retirement and understand and these rich will help you determine how much you need to say. But understand your true financial ability is also crucial as a lack of ability can be dangerous. Q your retirement funds. Tell folks it all boils down to the fact that there's all these different pieces to your financial puzzle. And the only to fit together ever so nicely so what I would like to do is offer you the opportunity come in for complete financial review. And I'll offer this review for free to all listeners who have at least 200000 more faithful retirement. To what I'll do is all talk you through all the different puzzle pieces that you need to consider for instance. How much riskier kicking your portfolio. And is that amount of risk appropriate for your agent for the return to sure actually again. How much do you pay any fees or commissions with your current plan. And what about the tax implications understatement you know is there a way that we can save money down the road in taxes 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 live in thirty or more years from retirement. Do you have a plan to address inflation in future decades as the cost of everything continues to rise. Obviously there's a lot that we need to discuss we found that most people just have planned for early enough to address these issues. Again this review is complimentary can anyone who has at least 200000 dollars saved for retirement. But the calendar does so quickly so go ahead and give us a call right now so that we can be sure to get a spot reserved for. That number to call is 806465996. That's 806465996. That's your number to reach out to the team Carolina retirement resources. A comprehensive plan in place that would make you confident retirement rather than overconfident or not competent enough. Just call 806465996. That's 806465996. You leave a message for the team and someone who get back with you shortly. All you have to do is pick up that phone call 806465996. That's 806465996. This is the financial symphony we're talking him up overconfidence in your retirement plan making sure that you don't let your pride get T we'll continue that conversation right here just a moment. We all see the finished product of the music superstar. The sold out performances the TV and magazine covers and the eventual acceptance speech have been dreaming. Like you don't often see is what it took to get to that stage. Hours and hours of practice the traveling that critics see improvement. All those little details have been in the background without us noticing and you know what's your tiny to maestro takes together a financial plan for you 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 and going on in the background to grab your financial masterpiece. And remember your player should be king beauty come visit with your financial my strength and Richard pitcher telling surfing the Charlotte metro area. Call 80646. 996. 80646. KB 996. Stroud played. Time now for in the news here on the financial symphony with Richard which really Richard this is where we just take your recent. Headline and try to apply it to our finance to see if there's anything that we need to know. Anything we can take away from this and financial lessons. Richard the fan that recently admitted that the Social Security trust fund will be insolvent by 2034. And the Medicare trust fund by 20/20 sixth what implications does this have on retirement planning for your clients. Mean I'm not too worried about it for most people for some that there could be concerned but you're correct I mean that. You know they they talk about insolvency. As early as 2034 yet. Realistically. The Social Security is only used pay Social Security benefits that can't be funded by Social Security. Taxes alone which he owned by 2035 are projected to cover 75% payments so if source dirty trust fund goes broke. You know payroll taxes are still gonna cover 75% of the payments that are due. And the way it's a security works so we're gonna see clients that may receive a reduction in their benefits but they're not gonna lose your benefits in my opinion. You know the consequences are there is nothing is done to shore system up over the next twenty years that's probably what's gonna happen. So skirt taxes are raised by two point 67%. From the total of fifteen point three. You know to a total of seventeen point 97 this system is fully funded and there's no benefit come at all. So I expect it does they're gonna worries that are age that you can collect Social Security they're gonna raise the taxes that we need paying. Commercial security. But for most financial planning clients who may rely only on Social Security benefits. You know that could be a problem now the impact may not really be. As severe as expected but there could be a reduction at some point so for someone who rely solely on Social Security to fully fund retirement. You know I think they should expect I funding cut at some point almost taxes are raised so claim Social Security's 62. Obviously may not be in your best interest especially twenty years down the road. We could forfeit 25% if you claim Social Security early. Up to 76% of you claim it well before age seventy the most important thing is to have a plan. When it comes to Social Security so give me a call the next fifteen minutes. I'll provide you with a comprehensive financial review that will include council scurry fits into your retirement no plans to give us call right now. The number call is 806465996. That's 80646. 5996. That's your number to get in touch with Richard drilling. And his team Carolina retirement resources one more time that's 806465996. Mets 8064659. Nice it's your listening to finance. It's time for another musical connection. Where we blend the worlds of music and finance together. Here his friend of the show financial advisor and musician mark glory. We have a bronze ducks in a stand up for another musical connection so mark Lloyd let's talk about overcoming the loss. When I thought today today we could talk about musicians who overcame hardships on their way to great success. You know I like to relate everything to musical issues and you're kind of fun that twosome yeah. And that's a bit a lot of stories of musicians that have had hardships through their years some of that self inflicted death that's a that's absolutely injury. Yeah there are several famous musicians who've enjoyed the legendary careers. Even though they were blind. Stevie Wonder. Ray Charles. Running mills to amp you up and there's a three that immediately come to mind. And all those guys are fantastic I don't know how in the world they have done what they've done over the years they've given us some great music. Well their ears took over for what their eyes didn't see yeah it's amazing when you hear what you hear them and interviews and stories about. Going in and listening for parts of listening to what songs that sound like. There ears over compensated for what they lost with their site. And of course you know the history of these three musicians and and the music that they written and produced and created. Is amazing happened happened to see Stevie Wonder last time he came into town where I live here and a half and I got lucky I have gotten some tickets that were on the front row. And I watched him I literally watched him go I can throw out well how was it with a throw a rock but I'd be bad withdrawal rockets Stevie Wonder program. I think he was that close to me. And I'm telling you what it was just phenomenal and they played the songs in the key of life the whole album both sides almost a double our counsels for side. I love that well. Yes I remember that would really well and I don't think it was blood that you got on first round you must try really hard to get there I did I did. Well let's go back a little further there's Beethoven who wins death in his later years. Mo was still able to compose symphonies. We are never saw him lie. I could. I thought and I. I hope for a big double cut off the legs of his piano acidity can distinguish different notes. By the different vibrations at the piano made on the floor. That's phenomenal yeah not a kid even a keen even fathom being death and being you know musically inclined at all talk a little improvisation my goodness. There's another guy Rick Allen who plays with a man called death left upper yeah up and he he had his arm is left arm amputated is involved in some kind of an automobile accident accident but he continue with a successful career as a drummer thanks this an engineering adjustments to his drum set. And that made it so he could play the snare drum with his foot. I know they're still playing today as far as I know. Yeah absolutely that was about 1985 when that happened and after that is when they had their biggest success. And Rick Allen somehow managed to persevere and I know all these musician ray about compensate for the loss of something. And what kind of both financial. Conclusion can you draw from all this. But your portfolio needs to have the same ability as these musicians are what I mean by that is. Everything is not going to be peaches and cream all the time we're not going to see the stock market just continue to rise go up go up what record after record after record there's going to be turmoil. I mean you can sit there and turn on the news today of what's going on and it's almost like the stock market is so delicate right now. One wrong move I mean just look what happened here recently would trade talks with our with our allies. Look what's happening overseas and you know in Asia. Look what's happening with the Russia look what's happening in the hole. Economy in the global markets that. Could just it's so fragile something could just change and what happens normally when that happens our economy suffers. Ron when our economy suffers is when we got to be concerned. That these market gains that we've seen the largest bull run in the history of Wall Street. It literally could turn on a dime. So I have to ask you out there are no folks that you want your driving down the road or you're listening to us from the confines of your home or however you're hearing the show today. Do you know right now what kind of stress your portfolio was under. Has anyone ever ran a stress test to see that if the if the economy changes the markets change we have a correction in the stock market something happens to your portfolio. Do you know what the potential loss could be as your advisor if you have one ever sat down and run a stress test on that to let you know. And if the answer is no folks what are you doing. You've got to have your portfolio stress tested and that's something we do for all of our listeners just by connecting with dust and making a phone call. And setting up a time to have that done at no charge Ron tell the folks what they need to do to make sure that the airport. Foleo is in line with where their license this pick up the phone call 806465996. That's 806465996. Can get a complimentary review of your financial plan. Just call now and take advantage 806465. Pound. He can take a composer weeks months. Even years to get together and make them yeah. That's because they take time to find just the right near scores yeah. And while in great financial plan won't take years to put together. You should take this same drive and intention to make sure it's the perfect plan for yeah. Come visit me your funny to maestro Richard Richard Elliott serving the Charlotte metro area. Call 806465996806465996. It's time for fireside chats as we get to know your local. Financial symphony maestro. Well this is getting to know you with Richard preacher really like to just step away from the financial talk from time to time. Get the know Richard the man a little bit better and Richard I know this may. Come to you or someone of an off the wall question your financial advisor or you're supposed to be good with your finances but. You too can get caught up sometimes I'm sure an emotional spending what is the worst purchase you've ever made. Harmon's easy. My in 1970 should be nova. All that sounds like a great purchase that dang thing ended up being a money pit manna OK what I learned a lot about auto mechanics and fixing vehicles because their car. But I thought well I'll tell you man I was on here the other day talking with a guy and dumped about his boat. And he said you know the thing about boats they always say if the best day for boat owners as the day by in the day's sell it sounds like your car was that same experience. America I didn't have many options at that point magic and we were talking in the Chicago area weren't sure. Freezing weather and I'm changing hands on fixed involves online this is not. So it kind of motivation to keep working hard to school get your education so you can move on and get your career have a decent income and get a decent car. Oh most definitely does some at a point now where I think mark Karr is on its last leg but I'm not quite ready to get a new one yet and some just kind of trying to Beth what's that point where the repairs some putting. Intuit don't equal that of a car payment cause at that point what's the point keep. Exactly oh group home in well they haven't even Richard gets caught up every now and then with the but I thought they actual decision making now it was a long time ago that civilly and different life. Give you some slack there this is the financial symphony and there's more fun and talk on the way. 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 work and take a moment to look forward to your retirement. That any time ripe with uncertainty. Oh will be a time of Julie. And viewing 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 806465996. 806465996. Johnny cashes estate was approached by an advertising companies asking permission to use the ring of fire on an ad for him right greens. The request was freaky. On a similar note here's the financial Stephanie we requested that Johnny Cash the state allow us to use Folsom prison blues is our theme song. That request was also refused. But keep listening anyway. Well you're listening to the financial symphony with Richard petroleum mark it would alongside Richard who trailing in the studio today. Is an investment advisor representative at Carolina retirement resources serving you in the Charlotte metro area with offices and hunter's bill. And Iraq kills South Carolina he lied to reach out to Richard and his team he can do so just call 806465996. Now it's 80646. 5996. Now Richard before the break we were talking about pride in your retirement plan how specifically we've all heard that proverb pride goes before the fall. And we found there and retirement you can often be overconfident in May be your own understanding of the market we talked about how you can be. Overconfident and that specific amount of money you need to retire. Now let's talk about overconfidence in the rules of thorough so we've always heard things like. I can withdraw 4% of my savings each year and be okay. Or we've heard things like shifting from stocks to bonds and retirement. And that's the way to do it right but those rules of thumb kin what they're just that their rules of thought. In our rule of thumb is is simply a guideline. You know it provides a simplified. Approach regarding a particular subject it's a general personable that gives practical instructions for accomplish and a specific task typically rules of thumbs develop as a result of practice and experience so. They'll rule of thumb is there aren't absolute gem either they're meant to help you learn. You know remember and apply financial guidelines including those for save and invest in. And even Korea now retirement income. Although a rule of thumb may be appropriate for most of you it may not apply universally to all of you and your unique set of circumstances so. While rules films are useful as general guideline they may be to oversimplify and in many situations leading to underestimate him or overestimating your individual needs. Rules of thumb don't account for specific circumstances or factors are current at a particular time. Where that could change over time which should be considered for making sound financial decisions you know. One rule of thumb mark. For retirement is the 4% rule which has been used to determine how much you should withdraw from your retirement account each year. This rule seeks to provide a steady income trained for your expenses Walsh who maintain and I count. Dallas that keeps income flow into retirement. Let's say you have a million dollars since then you saved that go over thirty year period the 4% rule produces an initial income for you a 40000 dollars a year. And then you assume inflation at two and a half percent you would increase sure we're crawl to 41000 a year to and so one. But in recent years the rules safety has been questioned. All 4% would have worked over every thirty year retirement from 1926. For you assuming you had a 60%. In large company stocks and 40% and entering the US bonds. You know it failed almost half of the simulations researchers recently ran fusion forecast for the future rather than cash returns. As a result they're recommending that a 3%. New shake withdrawal rate would be appropriate so rule of thumb or simply guidelines enough and more. Simply guidelines and nothing more Richard what do overconfidence. In your own understanding of how different products work actually have a buddy who's a little bit like this a lovely guy and he's financially savvy. But he's the type to always come to me and say you need to be in the certain mutual fund this particular ETF. It's great because of its low fees that does this and it does that. But at the same time you know again my buddies financially savvy buddy system bodies on the trained. Professional I think you need to be careful when you start diving into the particulars of certain products. You don't have film trouble with the curve Clint Eastwood plays a long time baseball scout for the Atlanta Braves. And he discovers a high school in sensation. He comes up against a younger scout. Who uses statistics to assess plays and doesn't bother with Washington and and the young scout openly challenges he's was relevance you to watch a movie marquee removing our of that being a big movie a few years ago I haven't seen it but I've heard all about. Well you know each would visits to potential draft pick him because of his Fallon site. You know he listens to the sound of the ball hit in the bat and has his daughter watch how the player groups about how his hands moved Doren hit. Well eastwood's conclusion. Is that while the player can hit fastballs he can't get curves and he recommends pass them on the kid. Well the younger scale out demands that the Braves selecting use based on the data he wins the battle. The Braves used the team's first round draft pick a pick a player well you can guess how the story goes from here it turns out and what we've got right. And hit him prodigy unraveled when a talented pitcher buries his throws. Trouble with the curb. Highlights the problem of overconfidence and decision making which comes from you believe you have more accurate and complete information you actually do. You know social and financial products or must haves. You know retirement funds health insurance college savings you know these counts are all necessities for those of you want to be prepared for major life expenses. However there's no shortage of other policies products and plans being marketed to the masses. From specialty insurance too complex investments so I may have limited benefits for questionable value. Others may be good byes but only for small portion of the population so. You want to make sure the products you choose satisfy your specific financial goal. A general rule is to avoid products that seem too complicated to fully understand. Now that's not because complicated is an all cases necessarily bad but because complexity offers product designers an opportunity to gain you the investor. Well Richard Helms told the less than theirs to work with. A professional financial planner just simply that Clint Eastwood is always right but either way I think you hit on something there and that's that. Your financial plan really is more than just a collection of products and so even if he did know about certain products it's all about knowing how they work together and it's really even more so about. Your goals in retirement. And I think that's important factor in the calls if you're not careful Richard in your going to this decision making process and if all your thinking about this product he can be really over confident in the decisions that you making. When maybe you don't actually have all the information you need to have. To make a sound decision and it's really important that you work with a professional to do that who can help you to set your goals along the way and know how to make the right decisions. Can you don't kangaroo overconfidence Hutus you know pretty much everybody has their response they don't feel like they know which direction they should be going. Regardless of the context weather sports finance politics. In many believe your judgments and decisions are better than they really are overconfidence has been blamed for everything from seat in the Titanic to the Great Recession. Overconfidence causes us to make important decisions without a sensible degree of consideration. But fortunately there are some strategies you can and I used to reduce overconfidence. The most effective strategy is to obviously consider more information and possible Turner's sort of respect your finances. You know advisors like myself we spent a lot of time trying to understand your risk profile. You know we often employ question yours ask questions to try to pinpoint the holding period of investment here investment knowledge. And how you would react in various markets scenarios but what if you're in the midst of a bull market like today. When you answer these questions are likely going to be over confident that the market will continue going up. And I'm pretty sure that if you answered these same questions Doran a bear market your answer would be different. So there's one common theme I see time and time again and that is is that many of you. Have a large appetite for risk when things are going well. And when the markets aren't so kind you're the first round of the exits so you can your tendency be overconfident by first defining your financial goals. When your focus should be on achieving your goal not to try to make as much money as possible in the market and hearsay and should be used for specific purposes. Not to die with the most money the one who dies with the most doesn't win so prioritize your short and long term goals. And your knees and you want and then create a plan that will enable you to achieve what is truly important here. You know this is why I'm I'm extremely passionate about ensuring that you will prepared normal former cop or refinance reviewed anyone who called the next fifteen minutes. And has at least 200000 are saved for retirement. I'll talk about your retirement income needs where that income is gonna come from. How do 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 go home next fifteen minutes and yes it's true you could probably take care of it next week or even next month but here's the deal. I mean coach and people on retirement plan for a long time. And I've learned and it's really easy procrastinators get distracted. So if you don't start the process now here's a very good chance that you're not gonna do it at all. So the first coach and that I'm gonna give used to encourage you take the first step right now. For almost everybody that's the hardest part from there it's not a people process so if you're ready to finally get a plan in place give us a call right now. That number call is 806465996. That's 806465996. That's number to reach out to Richard preacher really in this team. You can get a comprehensive plan in place in retirement like we said. It's not about a collection of products it's all about your goals and dreams of retirement account go about accomplishing them. Reach out to Richard in the team call 806465996. That's 80646. 5996. As we've said you can leave a message you don't have to schedule only thing right now they'll call you back to handle all that. All you're doing now is just indicating it mentioned in learning a little bit more about what I've heard on the show today mentioned coming in for a visit perhaps. Just pick up the phone call 806465996. That's 80646. 5996. Will Richard as always we just like think for me also with us today. Hey thank you mark. This has been the financial symphony with Richard dutrow it will be your bank your next week with more of them financial some. Information is for illustrated purposes only. And does not constitute tax investment or legal advice. Always consult with a qualified investment legal or tax professional before taking any action investment advisory services offered through Brookstone capital management LL CBC him. A registered investment advisor. BCM and Carolina retirement resources are independent of each other.