What Can We Learn From The Doors Version of Light My Fire

Financial Symphony
Saturday, January 20th

Should you pay your house off early, how to get yout spouse involved in financial planning and more.


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

No financial symphony. For the harmonious financial plan and getting your portfolio in two weeks so sit back while always strike up the the financial simple it's starts now. Greetings everybody welcome to the show this week this is 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 the Charlotte metro area. And that is Richards who to really Richard is an investment advisor with Carolina retiree sources. With offices in hunter's bill North Carolina and Rock Hill South Carolina and of course Richard is available to you by simply calling 80646. 5996. That's 800. 6465996. 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 degree mark how are you doing very well that so we'll we'll see how it goes for the day we got a good show lined everybody out there are so hopefully once sticks around and enjoys it and if you want it will go ahead and dive right in to you our mailbag and just get started with some questions from around the area and suvs helps the folks out Shelley. Sure let's hear our our first one comes into us today here on the show. Firm Allen and hunter's bill 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 show around 45000 on the house. So it's really kind attempting to just pay that off what are your thoughts. Yeah I understand that temptation but you know Alan. You know perhaps the least modeled. But most important factor to consider and mortgage payments is a long term effects. 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 not so with that said the most important time. To pay extra on your loan and early is in the early years from me since. At that point in time most of the payment is interest related. Rather than principle if you do pay extra the first few years those payments are generally applied directly to paying down principal. And reduce your principal early on is effectively compound in your rear your investment. Because principal is 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 are worked a lot more than they will be next year. If you wait. You'll be paying your mortgage we've inflated dollars. There for you 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. An average is let's say you know 5% or more over the next few years you know by weight in. You will save money you know this may sound counterintuitive at first you know how can you possibly save money you're paying more dollar well. With a inflation your dollars are 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. I'm making money by not paying down at that loan if your mortgage rate. He's near the inflation rate you'll get little benefiting constant dollar by paying off your home. Personally I prefer to let inflation gradually eat away at the value of the principal. I'm I would most likely not pay off the homeless there were some extenuating circumstances. OK so a lot of good information and they are great question by the way Alan so. 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 show Allen and keep Wilson. All right we have another question here forests Richard from Tracy in Charlotte and Tracey says I make it too much money to contribute to a Roth. Or a traditional IRA. After I'm Max out my 401K. Where else am I supposed to save money for retirement. I'm too 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 rock Ari contributions. Have been able to make and indirect or backdoor Roth contribution instead. By simply contributed to a non deductible hire ray which can always be done regardless of income and convert me shortly thereafter you know but keep in mind. There're several caveats to this strategy so you're gonna certainly wanted to console with your tax advisor before finalizing any decision with respect to that back or Roth. Another opportunity for you Tracy's to save additional funds. In a life insurance contract finish structure for wealth accumulation. You know these the accumulation cool shares many of the tax free attributes. A Roth IRA 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 in 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 diary and a 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 acts as an emergency fund. In the event of say a short term emergency. You know listen the ideal retirement. Pass a tax deferred account for 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 there for yourself to put some more money away are you you certainly wanna do your due diligence to make. Sure and it gives 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. You are listening to the financial symphony with Richard who she really. Of Carolina retirement resources again 80646. 1599. B.'s six our final question this week Richard comes to us from Phil in Morrisville. And bill says that no matter what I do how I just can't seem to get my wife engaged in the financial planning process. Do you think that's OK Richard are doing need to figure out a way to get her involved in this. You know that the uncertainty that comes. With how you manage your finances to generate income. In retirement. You know it's it's stressful. And for many of you the biggest obstacle. Two getting started Asia is your spouse I mean all too often one's spouse just doesn't want to be involved bombs so yeah how do you go ahead and create a plan. When only one half is interest did well. You know we are ever trust 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 is and 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 but I do what she does best and you go ahead and do what you do best and even so. You will have 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. He's is just deciding what's best for you moving 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 won't listen to them and take those concerns and consideration when developing your plan. Regardless of any obstacles make sure that you meet with a professional and they not be able to help you transition that concern. Listen Phil I understand your frustration they don't have an a spell that doesn't wanna purchase the page can be one of the most frustrating aspects of managing your finances. But it doesn't help if your spouse be sure nagging 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 for an come and which accounts are for growth. And then I pick a time when I have her on divided attention you don't like drive in Florida on vacation. And at that point in time I'll start the conversation summarize or 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 bill. And just keep current form as 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 and you might some might find out that worked well for you to. Don't listen in the financial world every situation is different. You can't just look at a product Porsche Reggie and label it as 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. 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 ensure your retirement your will be everything you want going to be. Let's have 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 what I'd like to do is offer the opportunity for you to comment for complete financial review. And I'll offer this review for free to all listeners who have at least 200000 dollar staple retirement. I'll talk through all the different puzzle pieces that you need to consider. You know such as how much risk we take in your portfolio. And is that amount of risk appropriate for your age and for the amount of return mature actually again. How much do you pay any fees and commissions with your current plan. What about tax implications on your statement is there a way to save money in taxes down the road by planet proactively today. Do you have an income plan in place to be sure that you aren't in danger of running out of money if you end up 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 fill up 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 and that's reaching out to Richard an 80646. 5996806465996. To talk with a Richard what you really. Of Carolina retirement resources you are listening to the financial symphony and there is much more to come on today show stick around and don't forget call Richard 806465996. Will be right back. It's time for another musical connection. Where we blend the worlds of music and finance together. Here is a friend of the show financial advisor and musician mark glory. We have Ron has done us this time for another musical connections so mark. What we learned about retirement planning from the daughters most popular song and you know I think it is. With so many sons who we know as his today the doors record company thought light my fire. Was too long to get radio play. So the guitar solos were edited down to the single to make it shorter. But a lot of radio stations played the nearly seven minute version anyway I played that version on the airline's self many tunnels and is an old fans heard the full version on the radio and wanted it. Meaning they had to buy the album instead of just the single which spurred sales for the album and that was a cool deal for their doors and for the record company. It creative marketing yeah. But it could exactly. And so here's the financial connection you know other doors fans news that they enjoy the song more of they heard the full version right right. So they're willing to pay the extra money to get the album and the same thing is true in the financial world. You know sometimes on the cheapest route isn't always the best route. You know you don't wanna be paying unnecessary fees and commissions but you also little woman goes say OK I wanna get buy the cheapest way I can because you might be missing now. On good advice she may be and here's the most important thing you may be missing and this is what we're hearing from our listeners. All the time they say mark were looking for a plan. We're looking for a financial plan their retirement plan it's more folks than just investing. So you don't but it comes down to what. What your pain for with some times that he may be a little bit more about what you're paying for. It's priceless. And when I talk about putting a plan together I'm talking about it extensive plan not taking your Social Security. And say OK how can we optimize the Social Security how can we make sure for your family we're getting the highest possible income stream from Social Security. You deserve to have the highest Social Security you can get but what makes sense for you when you put all the pieces of the puzzle together making the right decision if you're lucky enough to have a pension to make shorts the best pension plan for you and if you're married to your spouse is well what makes the most sense cash flow lies income wise when making choices for your pension. May be your lucky enough to have a lump sum pension does that make more sense to have the lump sum pension vs an income stream how about the state plainly how we pass on what you've worked hard for. What you save for and it's something prematurely happens to you when there's money left in the account how can we make sure that your family. Inherits that with the most ease the maximum ease but the minimal amount of taxes. Why you'll have a exposed uncles AM when there was a way to do it a lot more efficiently and how about protecting your money from future stock market losses folks beat the market's not gonna continue to go up forever. We have been so blessed we were almost coming up to a year now where we seem market dean's. Is it gonna happen forever or we gonna have a correction argue prepare for the next correction is gonna happen it's gonna happen there's a bubble out there performing it's like a hurricane there's a bubble out there are forming we know what's gonna pop one of these days and you need to have a plan in place. That is efficient that maximizes. Your downside risk which means we don't wanna lose don't lose the money you know you'd volatilities OK but I'm talking about massive losses here but we still want a ride this week and unfortunately we know is we get older our health who's gonna change. So I'll yell putting together a deficient retirement plan also plans for future health changes. Ron is a lot more involved here than just what's the city. The C when you put all of this together. There's a cost of this sometimes but it's well worth it because we're talking about a stress free retirement we're talking about a retirement the last. Your retirement generation we're talking about money leaving your family. When something happens to you and all of that might be a little bit more to pay for but at the end of the day it could say viewing on. Of money and that would be priceless Ron tell what the folks need to do to find out how to put a plan together like this for them. To speed up the phone call 806465996. That's 806465996. He couldn't get a complimentary review of your financial plan. Just call now to take advantage 806465996. It's remarkable sometimes the emotions and feelings music brings to our daily lives. It was there for graduation. On her wedding day. And sometimes even resonates on our darkest days. So lets 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. A little me time eventually. If you're in a spot now 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. Pete Townsend has amassed more than ninety guitars and his his career including at least 23 vendors strata captors and twelve Gibson left calls and when he won Gibson as cheese. And our local financial maestro of all around the country ask smashing defeat that hundreds of portfolios to say their client thousands of dollars. Keep listening to the financial symphony. Well it's getting to know you time here on the financial symphony Cephalon part of a show where we step away from the financial chatter for Mulder to. To get to know Richard boots are really just a bit better outside the financial realm if you will. And Richard you know look how 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 with this and 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 the history. One event would it be. Can social mandate that at that. But I would choose the 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 one day be in the room in kind of witness it listen to the debate like all of that that's kind of wrapped in there and just in and see those guys sign that. And yes I would I would love to have seen. You know of them interact especially Ben Franklin and 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've been. They're pretty a pretty impressive and well obviously to you know a diehard patriots. And a tree fan of you know being Americans would be a seminal moment or of the of the feelings would just well up inside you watch a man and and in being present and and again and see them all compromise and come to a solution and finalize there's item here I unlike today right. Yeah like what a novel concept. If there at that the couple days ago that's are getting to know you've heard this week. That's a pretty good event to be to be president for so ask yourself out there radio play and if you could be present rule. One event only in history what event might that Pete and when it comes to financial events Richard who drilling can certainly help you out on background. You're listening to the financial symphony will get back to the financial talking just a moment. Johnny cashes estate was approached by an advertising company 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 symphony we requested that Johnny Cash the state allow us to use Folsom prison blues is our theme song. That request was also reviews. But keep listening anyway. You back here whether it's on the financial symphony thanks for tuning into the show today Mark Killian your host alongside Richard future rally of Carolina retirement resources. Here in the Charlotte metro area you'd like to reach out to Richard he's convenient to get ahold of he's got an office in hunter's bill North Carolina am 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. 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 part of what you guys do in the financial services industry. An earlier big baseball fan and outcome of equate it like this. I think a lot of casual fans of this border people who were watching baseball may just think it's the simple act of you know you gotta get he hits and runs and score and at this but there's a lot of strategy there's a lot more going on to baseball. Then just that via the general consensus that people have about you know. Scoring right. And that they 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 today here on the show kind. Sure so would you agree with that do you would you agree with my estimation there. Absolutely I retirement plan and is is not just about investment that your accumulation years. I 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. 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 than some situations that may. Come up or that you may face. When you have clients or potential clients commendable to talk about those individually and just 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 planning. But you know I'm starting to see this I'm more frequently or no every year. There are more or more retirees there for an early retirement and back. I recently read a study that said almost half of retirees and to retirement earlier than planned and 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 back and forth from person to 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 or 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 will 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 forced into the situation will 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 work and 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. 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. And that eighteen month severance package of torture contribution though. In the meantime she plans on role in most of her 41 K and her pension to a shelf directed account. And develop a long term retirement income plan that's a plan that will include a state money 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 entirety of her retirement years shall. Are there are options out there everybody'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. Of Carolina retirement resources 806465. 996. A lot of times potential clients think 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 may be attacks related scenario you just keep in mind that the key spoke. Civil retirement plans are you sure you have enough money to live to 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 ire ray is a lot to count 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 risk anything on on your Rick rolls once you retire. But if your retirement savings is primarily a traditional higher rate or 41 K you'll owe taxes you never paid income taxes on your 401K. Or your deductible hiring contributions plus. At the earnings on these accounts are tax deferred meaning you owed tax that you ordinary income tax rate on money you would draw for income in retirement. And if you delay distributions and postpone those taxes you're required to start taking those distribution when you turn seven and a half. Less than taxes don't and when you stop work and in fact. They will 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 saw their tax bill increase dramatically you know all of their retirement savings are in tax preferred accounts and now they must take those distributions and pay taxes. One solution is to make a qualified. Charitable distributions from your higher rates. You know since this couple was already make an existing donations totaling some 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 R&D requirement and it lowers your adjusted gross income and you pay less taxes. You know let's. CPA. The people that we get our advice from foreign taxes they've been trained to teach you to deferred taxation. That's what they do they encourage you to defer taxation during your shape in years and I see them doing the same thing wonder when you're in retirement. So let's assume your fifteen years old you have fifteen years left to say you and your save and 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 do want to say managers you're gonna receive. 4500 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. Dorn 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 at age 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 a 15100890. And retirement. So it's given me opportunity would you flip the script on the higher arrest. Would you go ahead and paid a 37500. While Saban to avoid face in the larger tacked on retirement. The point I'm making is is that tax plan in and tax preparation are two different animals and this is why I'm really passionate about you 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 offered a Koppel Mary financial review to anyone who called in the next fifteen minutes and has at least 200000 dollars saved for retirement. I'll talk about your retirement income needs. Where daddy comes 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 comb 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 the 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. There's a very good chance that you're not gonna do it at all so the first coach and then I'm gonna give you was to encourage you to take the first step right now. For almost everybody that's the hardest part from there it's not a painful process so you're ready to finally get a plan in place give us a call right now. 8064659. 96 that is 806465996. As Richard said take that action take that piece of coaching advice. And reach out to him today 8064659. And 96 to command sit down and have a conversation with Richard culturally. Of Carolina retirement resources. Get their planning process started Richard can help you a lot of ways but he can't do any of it if he doesn't get the chance to know you so. Given a call 80646. 5996. That is 806465996. And you'll sing to the financial symphony will be back in just a moment or two. 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 take to get to that stage. Hours and hours of practice that traveling the critics see improvement. All those little details have been in the background without us noticing and you know what your financial maestro 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 what the finished product. You're playing now. But don't forget about the all important each killed in an effort I'm going on in the background to drown your financial masterpiece. And remember your player should be king beauty come visit with your financial maestro of Richard preacher telling. Serving as Charlotte metro area or call 80646. 996. 800 646 KB 996. He can take a composer weeks months or even years to get together and make them and it's. That's because they take time to find just the right near scores no. And while in great financial plan won't takes years to put together. You should take the same time and attention to make sure it's perfect plan for yeah. Come visit me your financial maestro Richard that you really serving the Charlotte metro area. Call 80646. 996. 806465996. Well workers and down the homestretch here on the financial symphony the show that helps us strike the right core if you will in your retirement plans to everything trying to be harmonious and working together and of course Richard couture really Carolina retirement resources can certainly help you strike that right toward. Reach out to Richard 806465996. As 8064659. 960 economic calendar and talk with Richard future railing. We're having 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 your advisor could possibly potentially be working through some of those problems we touched on a few but there are so many out there. Albeit from forced early retirement the loss of a spouse prematurely. Faster than anticipated if you will. I 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. But but you know if you sit down with someone and they explained to you than an investment guarantees of certain returned. And that investment fails to perform as such then the broker may have been little misleading you. If fact anytime 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 when you wanna be very cautious. Even if there are guarantees for an investment it probably come with a significant piece so. You know there is also the case where 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 failed 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 advisors will do a basic suitability testing gather information about your financial situation. Before making any recommendations but not always you know so if you meet with someone. And they hardly ask you any 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 bought variable annuities they can that the annuity guaranteed a six or 7% rate return. Unfortunately there are no guaranteed rate of return to use and variable annuities variable annuities. May lose value because the sub accounts or mutual funds are correlated to market mania and when the market goes down so does your account value. 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 variable annuities have lifetime benefit riders and it's those writers that provide the guarantee. Your account value is not guaranteed but the income generated by the Trier it. The writers though do not come free according to Morningstar pennies short retirement institute. They say that these writers average over 1% annually. And and defeat that fears on top of other fees such as mutual fund expenses that they also said average about two and a half percent. And most of the funds in these terrible annuities are proprietary funds. You know add on a death benefit rider and the fees increase even further. You know 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're listening to the financial symphony Richard future really of Carolina retirement resources as Richard said if you'd like to reach out to them call 80646. 5996. That's 8064659. 96 we're 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 rising gets lower and lower closer to retirement. And that health problems Richard you touched on that earlier in the last segment. That can have a lot of effects to a lot of aspects of her life and death when the financial aspect as well. When you're hit where they may be a major health problem. Or re occurring health problems it can certainly dwindle in effect 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 for yourself. You know most of you make assumptions based on misinformation which means there could 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 cost. 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 statements 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 a benefit that can be attached to a life insurance policy. That enables the policyholder receive cash advances against the death benefit in the event of a nurse from 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 acts Fisher money you can make tax free withdrawals is what I call an all inclusive product. You don't 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 deserved 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 state 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 after the you can get that fact based approach that you deserve and get better answers to your financial challenges and objectives give me a call the 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 Richard which are really of Carolina retirement resources we're 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 need to be for 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 the 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 in there was the 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 financials opening. A registered investment advisor. BCM and Carolina retirement resources are independent of each other.