What Can We Learn From "A Bridge Over Troubled Waters"

Financial Symphony
Saturday, December 9th

Answers to listener questions and What can we learn from "A Bridge Over Troubled Waters"


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

The financial sense and. Harmonious financial plan. And getting your portfolio in two weeks so sit back. Well always strike up the the financial simple it's starts now. Greetings everybody welcome to the show this week visit as the financial symphony I'm your host today Mark Killian and it's time for us to check in with your financial simply advisor. Right here in Charlotte metro area and that is Richard who derailing Richard is an investment advisor with Carolina retirement resources. With offices and hunter's bill North Carolina and Rock Hill South Carolina and of course Richard is available to you by simply calling 80646. 5996. At 8064659. 96 to help but make sure you're on the right track when it comes to retirement welcome back to the show Richard how are you today. I'm mark how are you doing very well that Zola we'll see how does for the day but we got a good show lined everybody out there are so hopefully once sticks around and enjoys it and if you want people go ahead and dive right in to view our mailbag can just get started with some questions from around the area and suvs helps the folks out Shelley. Sure it's here are our first one comes into us today here on the show. Firm Allen and hunters hill and Allen says Richard I'm hesitant to pay off my house because I don't have many other tax deductions. At this point but I do have a 100000 in the bank and I only know around 45000 on the house. So it's really kind of tempting to just pay that off what are your thoughts. Now I understand that temptation to you know Alan. You know perhaps the least modeled. But most important factor to consider and mortgage payments is a long term effects. Off inflation. You know many financial planners and investment advisors will discuss the merits of putting money in stocks or bonds rather than into a mortgage but. You know you have to consider inflation to determine whether it makes sense to pay your home offer knocked so with that said the most important time. To pay extra on your loan and early is in your early years for me since. At that point in time most of the payment is futures related. Rather than principle if you do pay extra the first years of payment for generally applied directly to. Paying down principal. And reduce your principal early on is effectively compound in your rear your investment. Because principle that has paid off his principle that you wanna pay interest on the next twenty to thirty years. I also think it's important to remember that your loan principal. That amount will not change in relation to inflation. So if you make a 25000 dollar payment now your payment is valued in today's dollars which her work a lot more than they will be next year. If you wait. You'll be paying your mortgage with inflated dollar. They're worried if you make payments over time those dollar will be significantly less valuable in terms of what you can do with the money today. And suppose inflation spikes a little more. And averages let's say you know 5% or more in the next few years you know by a way to end. You will save money you know this may sound a counterintuitive at first you know how can you possibly save money you're paying more dollar well. With a inflation your dollar worth less over time. If the prices of goods go faster than the rate of your loan. You know with the chargers are with respect to interest on that loan you effectively. Making money by not pain down at that loan if your mortgage rate. He's nearly inflation rate you'll get little benefit in constant dollars by paying off your home. Personally I prefer to let inflation gradually eat away at the value of the principal. I would most likely not pay off the homeless there were some extenuating mr. Focus a lot of good information and their great question by the way Allen's though. A lot of information a lot of things to think over in that situation and if you. Really need to dive and that further anybody who finds himself on a similar type situation and give Richard a call 80646. 5996. We appreciate you listen to the so Allen and keep us. All right we have another question here forests Richard from Tracy in Charlotte and Tracy's as I make too much money to contribute to a Roth. Or a traditional IRA. After a Max out my 401K. Where else am I supposed to save money for retirement. Our two real nice problem I have to ask this. You know I since the end. Limits on on a Roth conversions were removed in 2010. You know higher income individuals who are not eligible to make Roth artery contributions. Have been able to make an indirect or backdoor Roth contribution instead. By simply contributed to a non deductible higher rate which can always be done regardless of income. And converted shortly thereafter or not but keep in mind. There're several caveats to this strategy so you're gonna certainly wanted to consult with your tax advisor before finalizing any decision with respect to that back or Roth. Another opportunity free Tracy's to save additional funds. In a life insurance contract finished structure for wealth accumulation. You know the the accumulation cool shares many of the tax free attributes of a Roth higher rate in that withdrawals are tax free. And with these policies you're fine and as little death benefit is possible is required by the IRS. While stuff and as much money into it as the IRS allows you know historically. These life insurance retirement plans have been reserved for the very wealthy. But these plans have been re engineered and by capturing the tax free qualities of rock fire radio low cost way. These plans can now benefit the everyday investor and finally you can always contribute to a taxable or an individual account. You know I I I advise my clients to limit how much they put into these accounts. Typically about six to twelve months worth of expenses and and and basically it acts as an emergency fund. In the event of a a short term emergency. You know listen the ideal retirement. Has a tax preferred accounts that tax free account and taxable account. And that will allow you better manager taxes and retirement so you have to you have a couple opportunities air for yourself to put some more money away. Are you you certainly wanna do your due diligence to make. Sure and it give you qualify your decision based on an education you received. Well again great problem to have Tracy and certainly if you need some help Richard can certainly do that for you by giving him a call 806465996. Euro listening to the financial symphony with the Richard gooch a relic. A Carolina retirement resources again 80646. 599. B.'s six our final question this week. Richard comes to us from Phil and more Israel's. And Phil says that no matter what I do heights is key and seem to get my wife engaged in the financial planning process. We think that's OK Richard are doing need to figure out a way to get her involved in this. You know those the uncertainty that comes. With how you manage your finances to generate income. In retirement. You know it it's stressful. And for many of you the biggest obstacle. Two getting started these future spouse I mean all too often one spouse just doesn't wanna be involved I'm so yeah how do you go ahead and create a plan. When only one half. Half is interest as well. You know we ought ever stress and weaknesses and and sharing your life with your spouse doesn't mean you must do everything together. You know so if you're better and more interested in your personal finances and your spouse isn't. You know I don't care problem there I think it's fine you know move on you know spearhead the project can get it done you know don't wait for your spouse to get interested that you might be waiting a long time. But you know you wanna play your spouse a do what she does best and now you go ahead and do what you do best and even so. You will have to. To talk to her at some point when it comes to finalize your goals for retirement that that's probably where you need the most help from her. Is this just deciding what's best for you move forward which where you wanna live how you wanna live. What your travel plans are your hobbies things like that okay if she has concerns certainly want to listen to them. And take those concerns and consideration when developing your plan regardless of any obstacles make sure. That you meet with professional and they are not able to help you transition that concern listen Phil I understand your frustration. They don't have an espouse that doesn't wanna participate can be one of the most frustrating aspects of managing your finances. But it doesn't help with your spouse feature imagine her or hound and on the money all the time you know you just don't need to stress. In my home. I do all the plan I keep my wife informed but she knows which accounts for income and which accounts are for growth. And I pick a time when I have her on a divided country you don't like driving to Florida on vacation. And at that point in time I'll start the conversation and summarize our plan which inevitably leads to more conversation which includes her dreams her desires and so one. So go ahead and get your plan put together Phil. And just keep current form your best she can along the way. What I like to do is I send my wife emails and I find that works out real well you might some might find out that worked well for you Q. Don't listen in a financial world. Every situation is different. You can't just look at a product or strategy and labeling is good or bad across the board at all depends on your specific needs of nuances of your situation. Haven't a plan is a great start in fact. Act haven't a plan is a mosque but haven't won it fits you and your specific needs for your retirement. Is the only way to help insure your retirement years will be everything you want to and B. But it all boils down to the fact that there are all these different pieces of the puzzle. On your retirement puzzle and all those pieces need to fit together and so when I'd like to do is offer the opportunity for your economy and for complete financial review. And I'll offer this review for free to all listeners who have at least 200000 dollars saved for retirement. I'll talk through all the different puzzle pieces that you need to consider. You know such as how much risk you take in your portfolio. And is that amount of risk appropriate for your age and for the amount of return to her actually again. How much you paying in fees and commissions with your current plan. What about tax implications on your statement is there away 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 Livan thirty or more years in 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. And we have 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 dollars saved for retirement. But the calendar does Philip quickly so go ahead and give us call right now so that we can make sure that we have a spot reserved for you. And the number to call is 806465996. That is 8064659. 96 it's a perfect opportunity to make sure you're on the right track for retirement. You gotta get this planning process started and you gotta make that happen by taking some action that's reaching out to Richard at 80646. 5996806465996. To talk with Richard what you really of Carolina retirement resources. You're listening to the financial Stephanie and there is much more to come on they show stick around and don't forget callers are eight. Or 646. 59 nice things we're back. It's time for another musical connection we're we blend the worlds of music and finance to get there. Here's a friend of the show financial advisor and musician mark glory. We have Ron's stuff so this is a musical connection on the financial symphony run sets and mark Lloyd let's talk about. Bridge over troubled water. What a great songs from Simon and golf classic. Yeah wow. Right you know Paul Simon is just dumb masters singer songwriter just one of the most phenomenal song writers that I can think off. That was Art Garfunkel though who's on the slow yes exactly. His voice is there perfect for this just really acknowledge I knew it's win here at first Paul Simon thought the opening lyrics were too simple. You know what it's dark sound when you're weird in feeling small. And tears are in your eyes. A will drive the ball marquis could probably sing and if you want that's okay that's all right well and you later realized that it was this simplicity unit held view that song a universal deal. I know anybody really didn't like that song coming Art Garfunkel did a great job singing it. Paul Simon's lyrics everything Paul Simon does great. Why in the world kind of connection can we make with this and financial matters. Where you said the word simple about two or three times and as you were describing that zone simplicity keywords simplicity yeah. And you know retirement planning is the same thing it does not folks it does not have to be complicated. It doesn't have to make your head spin. It cannot just say that I feel like we you know as financial coaches and and financial might shows that we're really good at keeping things simple. In the way that we explained things you know there's a lot of different things that have to be addressed and have a lot of pieces level puzzle. That have to fit together when it comes to Europe to your your financial plan to your retirement plan. You know things like we got to make sure that her body's going alas that's the number one concern we hear each and every week right here on the financial symphony. Yeah I'm worried about my money lasting mark how to we make sure our money last so as financial coaches and financial advisors. We have to put a plan together to show you how you can make your money last fall we also need to show you how to protect the money. See what we have found in the the math doesn't lie folks the math doesn't lie the more conservative. You are adorn your retirement years but you still got to grow the money you gotta beat inflation which you've got to get off this risk. This thinking in your head I've got to deal multi noble gamble gamble risk risk risk that they'll roll dice you you don't need that if you've got enough money say it is about as. Asset preservation. Will there enough accumulation. To always beaten beating inflation. And we didn't do that by having it diversified model of many different buckets of money that can help get used through retirement but we also got to look at how much the fees far you don't wanna be. You know paying a lot of these every year in hurting your return we've got a look at. Make sure that we're diversified we got to make sure that it. Your Social Security check is optimize it you're getting the most you can out of Social Security winners of the optimal time to turn that on we gotta make decisions about if you are lucky enough to have a pension. With the best way to set up a pension especially if you're married we also need to look at how do we pass this form of the minimal amount of taxes to our Ayers and what about amid a whole lot of taxes while we're alive and water up now. Something happens that were married or even single something happens to one of us and we need health care we get sick in the later part of our life and we need long term care especially if you're married. Are you gonna put your spouse in the pour house. That can be avoided. And that fear can be eliminated. If you have a plan that puts all those pieces of the puzzle together nicely. You know any good advisor can take the complexity out of four you and make it simple and make it easy to follow and let me just say folks that's what we do with the best. I feel like. All of our advisors all of our coaches. Have a way of communicating to where they can keep it simple where you understand it but at the end of the day when the plan is in place you can sleep at night known. Kind of good player in place I know that I can enjoy retirement we did an educational class last week and I had one in my one on my clients came up to me and I had a little brisk exercise in my class. And I showed him work at the my money was in the a vanguard 500 fund and I was taking out distributions toward retirement. How much money out of had left that I sort of with a million dollars and it was some low figure because of the risk and volatility of the S&P 500. And then I showed him a real conservative strategy didn't really look very sexy and I guess the word I used it look where exactly but at the end of the day the people had a lot more money in their bucket. If they were taking distributions out of that and a gentleman come to me at the end these that mark. He's that it took me awhile for me to understand when you said you've got to bring the risk down. But she's still need to grow the money but you've got to bring the wrist that it took me awhile to wrap that around my head but I am seeing that now. And I understand it so much better and I'm so thankful that I came and met you. I'll mail off owls on cloud nine when I heard that on Albert and you know it the thing about it was it all you how he nearly found us. He picked up the phone and he called us right here from the financial simply radio program surround go to all the folks right. Now how they can connect with a us to speed up the phone call 806465996. That's 806465996. Even got a complementary review of your financial plan. Just call now to 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 to know you time here on the financial symphony that's fun part of a show where we step away from the financial chatter for Mulder to. To get to their Richard boots are really just a bit better outside the financial realm if you will. And Richard you know a lot of times we ask crazy questions on here they can be something goofy like what kind of animal would you be here. What's your favorite piece of pie or who knows what we go all over the map witness in this one's actually kind of an interest in fund one. The see what's your which are mine might take you to you if you could be present for just one event in history one event. Would it be. Shall manage that that. But I would choose to sign in of the declaration of independence. For me that was probably the most historical moment in the history of our country and it would have been. Really exciting to be present when that occurred. Now he wanted to be in the room in kind of witness it listen to the debate like all of that that's got to wrap them there and just an NC those guys sign that. And yes I I would loved to have seen. You know of them future act. Act especially Ben Franklin Thomas Jefferson and John Adams you know James Madison who it is these were intelligent folks amendment it would have been exciting for me to sit there. And just be a fly on the wall and watch everything. Yeah I can't imagine that that debate prior to signing that was probably pretty intense I can imagine all this. Those guys and their kicking things around and discussing how things are gonna work out in the conversation must have been. Pretty a pretty impressive and well obviously to you know a diehard patriots. And a true fan of of you know being Americans would be a seminal moment where of the of the feelings were just well up inside you watch a man and and and being present and and yeah and see them all compromise and come to a solution and finalize their side here I unlike today right yes like what a novel. Concept but there have been perfectly together they're getting to know you've heard this week. That added that pretty good event to be to be president Corso ask yourself out there radio wave if you could be present world. One event only history what event might that be. And when it comes to financial events Richard future really can certainly help you out on that front. You're listening to the financial simply won't get back to the financial Boston's. Johnny cashes estate was approached by an advertising company asking permission to use the ring of fire on an ad for him right screams. The request was freaky. On a similar note here's the financial symphony we requested that Johnny Cash the state allow us she used Folsom prison blues is our theme song. That request was also refuse to let keep listening anyway. You back here with us on the financials simply thanks for tuning into the show today Mark Killian your host alongside a richer future rally of Carolina retirement resources. Here in a Charlotte metro area you'd like to reach out to Richard he's convenient to get ahold of he's got an office and hunter's bill North Carolina and Rock Hill South Carolina. And he's available to you by dialing 806465996. If you need some help. Have a conversation about your retirement situation and how things are shaping up or not shaping up he can certainly help you dive into that little further 8064659968064659. 96 you know Richard problem solving is a big half. Part of what you guys do in the financial services industry and earlier big baseball fan and outcome of equate it like this. I think a lot of casual fans of this border people who are watching baseball may just think it's the simple act of you know. You gotta get it hits and runs and score and at this but there's a lot of strategy is a lot more going on to baseball. Then just that via the general consensus that people had about you know scoring right. And at the same thing applies to financial services I think a lot of people sometimes think that most of what you guys do is just. Pick stocks but there's so much more going on there's so much more behind the scenes. And a lot of it has really problem solving and strategy. So let's talk about that on the next couple segments that they hear on the show kind. Sure so would you agree with that do you would you agree with my summation there. Absolutely I retirement plan and is it is not just about investment that your accumulation years. Thank you know retirement is a fundamental change in your life and you know your portfolio. And how do you manage that portfolio how you manage your savings needs to fundamentally changes wells do you shifting gears from. I push for accumulation strategy to one that employees preservation. Development of income. Certainly want growth but you want their growth to be managed for risk first and foremost. Yet couldn't agree more and so problem solving becomes. Really Paramount in this endeavor so we're gonna talk about problem solving and I'll give you some things in some situations that may. Come up or that she may face. When you have clients or potential clients commendable to talk about those individually into how you might adapt to some of those for example. Maybe someone comes in with the problem that you need to solve. Of early retirement but in this case maybe they were forced into an early retirement how does that shake out when you're doing. Retirement plan. Went on start to see this I'm more frequently aerial every year. There are more more retirees there for an early retirement in fact. I recently read a study that's an almost half of retirees and her retirement earlier than they plan. On of those early retirees only 25% of them choose to retire early willingly. The same study also indicated that the most common and uncontrollable situation that could work for personal retire early. Our poor health having to take care of a family member or just simply a job layoffs and no matter what the circumstances are collagen. Better call you retire earlier. Unemployed and you're gonna have to make some adjustments in your your retirement plan at four if you don't have a plan you're gonna need to implement one as soon as possible. Don't most of my clients who were forced. Into early retirement mark. Many of them found new jobs. But those jobs typically resulted in lower income. And I think that's to be expected since it will be very difficult to match the income. That you had with your present job the one that you just lost. And and often many choose to take on a part time position rather than a full time job. And I certainly encouraged that is dependent on your age I think that day you should continue to work. You know sometimes for retirement you know things like that will won't force a I changing your spending habits or should. Four should change your spending habits I mean obviously wanna reduce overall expenses. Unfortunately neck and include showing your home. You might have to relocate. Certainly tighten the budget to include or exclude excuse me. All those unnecessary expenses that we end up spend our money on. Without thinking twice about it you know and certainly you want to be Smart about collective Social Security a lot of people. Who were fortunate situation won't collect Social Security early. You know but if you're married for at least ten years you have many ways to claim benefits though doing it right could mean. Collective significantly more so be sure to get some advice to ensure your collect as much as you can. If at all possible and don't forget if you get laid off. Probably eligible for unemployment you know you've paid into the system all your working life. And there's no shame and taken the benefit you know those you know those of you there are forced to retire early because of illness. You know some of you might be eligible for disability benefits he certainly wanna look into that as well. Actually for many of my clients that we're fortunate early retirement. On it included a severance package that was based on their annual salary. And they are years of service with the company you know this is exactly what's happened to one of my clients recently. She's 56 soon to be 57. And has received an offer that will pay her income for the next eighteen months. Her goal is to find another less stressful job you know something that she's more passionate about. Tom and that eighteen month severance package of torture contribution of in the meantime she plans on role in most of her 401K and her pension to a shelf directed account. And develop a long term retirement income plan that's a plan that will include say my strategy for lifetime income. And our growth portfolio for additional income in the future. The emphasis is on risk management has these funds will need to ensure her a quality lifestyle for the target for her retirement year shall. Are there are options out there everyone's situation is different but you certainly wanna go through and look at every option. And not and not jump in and make quick decisions. We're talking about problem solving with Richard future rarely Carolina retirement resource is 8064659. 96. A lot of times potential clients think there advisors just pick stocks and so on and so forth. But really it's about problem solving a lot of different scenarios in this case Richard maybe a tax related than. Area I'll just keep in mind that the key focus of all retirement plans is sure you have enough money to live their retirement lifestyle he want. You know why you were work and you took advantage of the workplace savings accounts which is 41 K. And maybe higher res. You know individual retirement accounts and and what you did as you deferred taxes you were educated to defer taxes. Now it's your hiring is a Roth account you don't have to worry about tax issues because of you pay taxes on the money before you put it into a Roth higher rate. And earnings have grown tax free that means you don't hold a higher as anything on on your Rick rolls once you retire. But your retirement savings is primarily a traditional IRA or 41 K you'll owe taxes you never paid income taxes on your 401K. Or your deductible fiery contributions plus. The earnings on these accounts are tax deferred meaning you owed tax that you ordinary income tax rate on money you would Roth for income in retirement. And if you delay distributions and postpone those taxes you're required to spur taken those distribution when he turned seven and a half. But some taxes don't and when you stop working and back. They won't likely be much higher than you anticipated for many reasons. And taxes are the single biggest factor that will separate you from your retirement savings. And when it comes to taxes you want to pay taxes at your lowest possible rate. For example. I have a couple that's all their tax bill increase dramatically you know all of their retirement savings are in tax deferred accounts and now they must take those distributions and pay taxes. One solution. Is to make. I qualified. Charitable distributions from your higher rates. You know since this couple was already make an existing donations total ones from 2530000. Dollars a year. What they can do is they can transfer funds from their ire ray to a qualified charity. The money donated satisfy your warranty requirements and it lowers your adjusted gross income and you pay less taxes. You know let's just. CPA. The people that we get our advice from port taxes they've been trained to teach you to defer taxation. That's what they do they encourage you to defer taxation adorn your shape in years and I see them doing the same thing one when you're in retirement. So let's assume your fifteen years old you have fifteen years left to save and your shaven high 101000 a year in tax deferred vehicle. Let's also assume the account has grown by 7% a year and you'll take withdrawals for thirty years you know due to save and jeers you're gonna receive. 2500 dollars in taxes deferred annually and the cumulative effect of this is a 150000. Going into the plan. And deferral of 37500. Dollars in taxes. Torn your spending fazed however and retirement many of you forget that you have a silent partner in your retirement plan and that's Uncle Sam. Now when you begin withdrawals and a 65. You'll withdraw 20250. Dollars annually. And the IRS claims 5063. Every year in taxes. The cumulative effect is 607500. In total withdrawal over thirty years. And a 151890. Dollars in taxes being paid. Here's the bottom line. He put off paying 37500. Dollar cost saving and but it cost you 1510089. Indian retirement. So it's given me opportunity. Would you flip the script on the IRS. Would you go ahead and paid a 37500. While saving and to avoid face and a larger tax don't retirement. The point I'm making news is that tax plan and pay tax preparation are two different animals and this is why are really passionate value being well prepared for retirement. And I want to expand an opportunity for you right now to help you be sure that your well prepared. I'm off for an Koppel Mary financial review to anyone who calls in the next fifteen minutes and has at least 200000 dollar saved for retirement. I'll talk about your retirement income needs where that incomes gonna come from. How you'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 home the next fifteen minutes and yes it's true you can probably take care of it next week or next month but here's the deal. And he coaches people on retirement plan for a long time. And I've learned that it's really easy to procrastinate or get distracted so if you don't start the process now. Here's a very good chance that you're not gonna do it at all so the first coach and I'm gonna give used to encourage you to take the first step right now. For almost everybody that's the hardest part from the air it's not a painful process so you're ready to finally get a plan in place give us a call right now. 806465996. That is 806465996. As Richard said take that action take that piece of coaching advice. And reach out to him today 806465996. To commands at dam have a conversation. With Richard that you really. Carolina retirement resources. It now planning process started refused to help you in a lot of ways. But you can't do any of that improvement with the chief business so you can call 806465996. That is 806465. 96. He looks into the finance. Wherever you go there I am. Sonnen is thirteen stinking alone continuously nibbling away your hard work. And the. SC. Yeah. A 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. Yeah GE. I'm and I. Come visit with your financial maestro and Richardson to LE sipping the Charlotte metro area. Call 806 point 65996. 806465996. Timing is everything. In music as well as in 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 sent to 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 in retirement. Is everything. Come visit with your financial maestro and Richard Richard Elliott. Serving the Charlotte metro area. Call 806465996806465996. You're listening to the financial Anthony that show that makes your your financial plan at the perfect pitch. Well prison down the homestretch here on the financial symphony the show that helps us strike the right quarry he will. He's your retirement plan everything trying to be harmonious and working together and of course Richard future really of Carolina retirement resources can certainly help you strike that right court. Reach out to record 8064659. 96 at 8064659. 960 economic calendar and talk with Richard future rally we're having a good conversation today talking about problems solving. And how it affects and how different kinds of problems affect. What's gonna happen in your retirement plan and how you're advisor could possibly potentially be working through some of those problems we touched on a few but there's so many out there. Albeit from forced early retirement the loss of a spouse prematurely. Faster than anticipated if you will our tax related issues of divorce lots of different things go into that. Maybe also a situation where you've gotten bad. Or. And fortunate advice that wound up sending you down the wrong path may be from a different broker or advisor in the past. How does that change things Richard and obviously you need to work through that problem as well. Yeah you know I'm. Pretty subjective. From individual to individual. I'm but but you know if you sit down with someone and they explained to you than an investment guarantees certain return. And that investment fails to perform as such then the broker may have been the misleading you. In fact any time someone shows you an investment is guaranteed. And they aren't talking about something like a certificate of deposit. Or other guarantee fixed income instruments you know he won't you wanna be very cautious. Even if there are guarantees for an investment could probably come with significant fees so. You know there is also the case were broker may simply omit information altogether. You know common example of this is when the advice you. They advise you to purchase. A mutual fund that has a front load or commission. And yet they fail to mention it prior to the sale. Listen. Unless you specifically tell your broker or bartered by X number of shares of the stock. Any recommendations that they make must be within your suitability. And you know most of barges will do basic suitability testing data or information about your financial situation. Before making any recommendations but not always you know so if you meet with someone. And they hardly Asheville and questions about future income investment objectives risk tolerance. Or anything of that nature you know again be extremely cautious for example. I have had many clients that far variable in new mistaken that the annuity guaranteed a six or 7% rate return. Unfortunately there are no guaranteed rate of return Busan variable annuities variable annuities. May lose value because the sub accounts mutual funds are correlated to the market mania and when the market goes down so does your account values. So for those of you who thought you couldn't lose any money because of the guarantee. You found out the hard way that you can. You know very own duties have lifetime benefit riders and it's those writers that provide the guarantee. You're account value is not guarantees but the income generated by the Trier is the writer though do not come free. According to Morningstar pennies short retirement institute. They say that these writers average over 1% annually. And and the team that he is on top of other fees such as mutual fund expenses that they also said average about two and a half percent. I'm most of the funds in these herbal under these are proprietary funds. You know at on a death benefit rider and the fees increase even further. You know with fees and their owners can be as high as five and 6% and that is somewhat shocked into a lot of individuals. Once I bring that to their attention. You want to be sure that you understand. What's being recommended here and you wanna make sure you do your due diligence. Ash direct questions and if you have any questions feel free to call I'll be happy to help you. You're listening to the financial symphony Richard future really of Carolina retirement resources as Richard said if you'd like to reach out to him call 80646. 5996. That's 8064659. 96 were talking about problems solving here today on the show there's so many facets that goes into retirement planning and financial planning in general but obviously as you approach retirement. It's definitely something that you want to I need to make sure that your doing the right things because any misstep can be magnified as our time horizon gets lower and lower closer to retirement. And health problems Richard you touched on that earlier in the last segment. That can have a lot of effect to a lot of aspects of our life and death when the financial aspect as well. When you're hit where they may be a major health problem or recurring health problems they can certainly dwindle and affect your financial plan. Especially if you're not planning accordingly correct. That's true. You know one of the most surprising in and rising costs in retirement is costs of medical care. In fact it's much larger than most of you were prepared for and many of you believe Medicare will cover everything or nothing and neither of which is true. You know until you experience it yourself. You know most of you make assumptions based on misinformation which means there can be some uncomfortable surprises ahead. Listen health care costs and longevity go hand in hand. You know it stay healthy retirees attending and up with a higher lifetime health care costs simply because they live longer. And the biggest cost is custodial care while long term care. Know some clients rate the ability to pay for long term care a priority because they just finished taking care of a parent and know all too well how much it costs. In fact. My father in law who recently passed receive long term care for more than five years at about 6000 dollars per month. You know custodial care is not sheep and will be much more expensive for most of us you need to planned for today. For many of my clients that requires investment portion of their savings and insurance products that help cover their cost for example. Many of my clients have life insurance contracts that provide an accelerated death benefit. That accelerated death benefit. Is that a benefit that can be attached to a life insurance policy. That enables the policyholder to receive cash advances against the death benefit in the event of inertia Homestake or even after being diagnosed with a terminal illness. And in most cases accelerate death benefits are not subject to federal income taxes and if you never need care your heirs receive an income tax free death benefit and if you ever need to act Fisher money you can make tax free withdrawals is what I call an all inclusive product. You know listen financial decisions folks. Are among the most important decisions you'll make. Adorn your lifetime and it's important. That these potential financial problems are understood and minimize in fact you'll see the most important principle on which debate sure investment education. Is simply good common sense I'm very passionate about my belief that you deserve secure independent retirement. And that's why I offer free consultation to our radio listeners to help keep you on that path. If you call me in the next fifteen minutes and have at least 200000 dollar estate to retirement. I'll offer you this free consultation to help you determine how prepared you or to handle retirement pitfalls like inflation. Health emergencies stock market volatility. Taxation. And health related expenses. You've worked hard for your money so will work just as hard to help you protecting growers there are a wide variety of tools and services available on the financial world. I'll show you how to harness those tools and services to create a plan is 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 so you can get that fact based approach that you deserve and get better answers to your financial challenges and objectives give me your column next fifteen minutes and I'll work with you. To get you on that road to financial security and independence. All right let's head down that road together 806465996. That is your number to call to reach out to Richards future really of Carolina retirement resources for talking to retirees and pre retirees. It's a great chance to just make sure you're headed in the right financial direction. As you plan for retirement Richard can look at to a portfolio show you where you are now but more importantly help you get to where you needed before that successful retirement. But you do have to take that action and make that phone call. 806465996. That's your number to call 80646. 5996. To get yourself on the calendar. Come in and have a consultation with Richard which really sit down and have a nice conversation about your unique specific financial situation. Again Richard which really 806465996. At Carolina retirement. Resources Richard thanks for being here on the show with me again this week we certainly appreciate it every week we appreciate your time and it was them. You're welcome I enjoy it and we certainly enjoy having you here again as we depart 806465996. 806 or 659. 96 you've been listening to the financial settlement. A registered investment advisor. BCM and Carolina retirement resources are independent of each other.