What Financial Lesson Can We Learn From"Light My Fire " By the Doors

Financial Symphony
Saturday, October 21st

Anwers to listeners questions, and what can we learn from the Doors music.


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

No financial center and helping you. 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. Hello and welcome into the financial symphony thank you so much for tuning into the program today. I'm your host Mark Killian along side or Richard approach a railing he is an investment advisor at Carolina retirement resources. Serving you here in the Charlotte metro area with offices in hunter's bill North Carolina. And Iraq kill South Carolina Richard can be reached at 806465996. As 806465996. Delegates she on the calendar. Commander have a conversation with Richard about your specific unique financial situation. And that's what we do here on the financial symphony each week is talk about the world of finance and retirement. And Richard as we usually do well well first let me say hi how her refusal to honor grave markers going on I'm not you must just going through today hopefully had a good week looks like maybe some we've got some chillier weather finally maybe it's cool to Smart enough you gonna blow before you know like that. Yeah so hopefully mother nature we'll get straight and we'll have a a decent he's a winner this year would never really good. I'm very cold winner last journal thing. Yeah you know I don't really care we have to winter anonymous of course I'm skiing and her commitment and a but outside of that I'm okay would be average temperatures mean 6570. Well the well the good thing about a good cold winner is it kills off some of those bugs and stuff so we don't have a so bad here in the summer here in order. Light fixtures and up. Well let's go ahead and dive into our mailbag this week Richard NC we've got on the other request line we've got a few questions and of command and see if we can. Help out Andrew in Charlotte and he writes any says should I work with a younger financial advisor with less experience or maybe someone who's closer to my age but might retire at the same time I do. I hear this frequently because I'm an old advisor OK so if the decision that I think to hire younger or more experienced advisor. You know to help you financially it's not as simple black and white answer you know you should go. You know should he go with the industry veteran and those individuals have been around and all long enough time to see the ups and downs in the market understand the dynamics of those ups and downs. They have a little bit more experience with respect to education and possibly. Or do you go with a younger advisor you know and again it really depends on your priorities. I know a lot of number advisories that are are excellent I don't sees them as being a detriment one way or another and I know a lot of older advisors are as well. But if you're new retirement it might be better to have an advisory that has the experience. You know which retirement plan specifically. And so that might be a better choice you know in my opinion you know when issues of financial advisor one of the primary factors you need to consider is experience. You know I'm not experience in the traditional sense of choosing someone they simply because they've worked in the industry for decades but merely experience that comes from a person. Who has faced similar financial challenges and milestone I compared to. What you're currently face and an experience that I'm just can't be taught by webinars or continuing education courses you know. When you find enough financial advisor that is close in age and shares a similar financial perspective can you worse. Who actually gets it in off financial planner your own age understands the issues. Face and knows that you need a comprehensive plan of action to get your financial life in order so in my opinion. You know they can be a better guy done to help you through that planning process and prepare strategy to address your specific needs to remember. Not all investment firms and financial professionals are created equal you know most individuals. Who call themselves financial advisors you know they oh. Their primary allegiance to the company they work for a product vendor they represent. Rather than to customers make sure you know legally these are what we call sales professionals and a legal obligations these individuals have. Toward your customers or specific and limited. They are not required to disclose potential conflicts of venture at least not right now. Torture recommend the best product available for you only shoot one so on the other hand. Advisors. Of registered investment advisory firms you know they worked directly for their clients. They have an open ended fiduciary responsibility toward those clients. Such investment advisor represented there's you know they need to disclose. Any potential conflicts of interest to other clients shall those clients have the ability to evaluate the context of the advice. The deer being given. So I recommend a product these advisors are required to recommend what they consider to be the best product and not merely a suitable or acceptable ones so. You know most investment advisors. There herb given all have contingency plans in place where they have associate younger associated monitors in place. So that is something more happened and then they're prepared to make sure of their clients were taken care of so you know I think it's a matter of perspective Andrew it's a matter of preference and comfort and I don't think he had modern age matters. All right and you will great question was certainly appreciate you sending many NN certainly give them license at least some things to think about here firmer Richard who drilling. If you like talk and Richard Moore it's 8064659968064659. 96 another question here for you Richard from Lonnie in Morse bill. And money says I've been planning to sell some investment property. To do some different investing for retirement but I just discovered how much I'm going to owe in taxes because of the increase. In the property's value since I purchased it. You think I should just hold onto it. When you know why I don't really know for sure that's in the best course of action for you I don't know your complete situation. You know I think it depends on your overall portfolio on how much income that portfolio can generate to replace income when you do retire. And of course your retirement time horizon. Unfortunately when you do so on investment property has increased in value you're gonna have capital gains which are going to be added to your adjusted gross income in the year do you shell. And the tax is often much larger than the stated federal and tax rates will be careful with that. But don't go there are ways to avoid those capital gains taxes you one option would be what they call a deferred sales trust. You know this could work if the situation meet two criteria you know one. You wish to dispose of an asset that is sufficiently valuable that is worthwhile to incur that cost to avoid the adverse tax consequences. A windfall. And two year compared to hand or interest did. In receiving the proceeds of an asset sale over time and do not need to cash for immediate needs another way of looking that it. Would be to say that if you're going to invest the money you got from selling that property and you don't need to spend it right way and deferred sales troops might work preview it might be good option because that's what essentially allow you to do. Another option would be eternal world remainder trust the charitable remainder trust. Porsche your key for short is an irrevocable truck. That generates a potential income stream for you because you're the donor. True deterrent only her trust or to other beneficiaries. With the remainder of the donated NASA's going to your favorite charity or charities. You know what you do if you transferred. In appreciate an asset in QB irrevocable trust. This removes the assets from your state. So no state tax whom we do when you die you also receive immediate charitable income tax deductions. The trust even sell the asset and market value and no capital gains taxes. And they reinvest the proceeds interest income producing assets. The result is that the trust Peja and income for the rest of your life. And then when you die to remain in trust assets go to the charity you've chosen and that's why it's called a charitable remainder trust. I remember that with either one of these strategies it's essential that you don't take a do it yourself approach you know you should seek the advice of a qualified attorney. It may cost you a little bit more than a turnkey approach but it. Always money there will be well again another great question this week here on the financial symphony thank you so much Lonnie for that question. A lot of moving parts in here so certainly. You wanna sit down with a qualified professional and discuss the different options that are available to you. And Richard can certainly help you with that and 806465996. 8064659. 96 our final question this week Richard here on the program is from Jay in mint hill. And I feel like this when chases that Richard I'm worried about a market meltdown but my Brothers on the drum drain and thinks you've got a few good years left what's your opinion. Authoritative people have been not a concern about market meltdown for quite some time now. And whether or not trump has made a difference I'm not so sure in fact you know the market could go down to end 320% from here. I wouldn't be surprised it's it's long over due for correction. You don't want to start tomorrow I certainly don't doubt that first second. Asked for a bigger downturn you know like 2008 I'm a little less worried you know large declines like 2008 are few and far between. And it's unlikely wolf here correction like the one we saw in the dot com bubble and a financial crisis anytime soon and my reasons for saying that. Or that I'm not seeing signs of stress and economy yet. And until I do I'm not worried about big downturn particularly regardless you should be prepared at all times. Four I'll pull back a correction or even a bear market you know but to completely dodge these inevitable corrections you'd have to time the market perfectly. And you're not likely to sell at the market's top and and certainly buy back at the market bottom on a regular basis you know no one does that consistently. You know we're prospective president trump the stock market began to rally long before trump was elected president. What's more the evidence shows that the rally would've liked it occurred even if another candidate who won you know it really boils down to the market's price parent. Unfortunately many in the world of finance believes the president and hence presidential elections also play a large role in determine the course for stock market. And I just don't agree with that. But here's what you do you need and not even the president United States gives the stock market its marching orders it's true that the market has mainly reasons his truck was elected. But the board's action was in the cars long before the world knew he would be president in my opinion the market will continue to rise for now. We likely have a correction in fact I would I would embrace a correction at this time. You don't corrections boring buying opportunities they bring other opportunities. They allow you did to make some money. Sort correction isn't a bad thing and the definition of a correction is a ten to 19% drop you know pull back would be like five to 9% drop. And then you know us traditionally a bear market is 20% or more or. You know some corrections happen often they're inevitable you don't but they're not predictable. And typically corrections only matter to short term investors. But your focused on the long term correction in the market and aren't an issue. But I think we will see a continued gains moving forward in fact I believe that there are still some big gains ahead. You know for most of those mark completely ignored the stock market is not an option especially if you're gonna keep pace with inflation. And retain an opportunity for growth too long periods of good economic times. The solution. Is to use risk management strategies. That allow you choose how exposure you our market volatility and limit losses. You know knowing your risk score and your potential maximum drawn down we'll help you decide if the risk you're taken today is appropriate for you or not. You know and that's why I'm very passionate about my belief that you deserve a secure independent retirement. And that's why we offer a free consultation tore radio listeners to help keep them on that path. To be calling the next fifteen minutes and have at least 200000 mark save for retirement. How often you just free consultation help you determine how prepared you are handled retirement pitfalls like inflation. Health emergencies. Taxation and of course stock market volatility. You know you've worked really really hard for the money that you save for retirement so I'll work just as hard to help you protect and grow it. You know there are a wide variety of tools and services available in the financial world I'll show you how to harness those tools and services to create a plan that's tailored just for you. And I'll show you how to achieve a lifetime of security thanks to a lifetime of income to go ahead and give us a cone next fifteen minutes. And I'll work together with you to join their route to financial security in and. OK and here's your number to call 80646. 59 and 96 that's 8064659. 96 if you're are running errands today riding around the car. Go ahead and get pen or pencil McRae on her eyeliner or whatever right now on the number and give Richard the caller please do so safely. 8064659. And 96 to talk with Richard who should really. At Carolina retirement resources here in Charlotte metro area of he's got an office of hunters build off Carolina hamper Rock Hill South Carolina great resource to turn to. For some retirement health 80646. Of 5996. To take advantage of this offer from Richard wood to rally. You're listening to the financial symphony much more come after this. It's time for another musical connection. We're 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 Stutz. It's time for another musical connections so mark. What can we learn about retirement planning from the daughters most popular Sar and you know what name 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've played that version on the airlines sell many tunnels and is an old. They answered 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 the doors and for the record company. Nick creative marketing effort that it exactly that. So here's the financial connection you know the endorse 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 don't want to go 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 is more folks than just investing. So you know when it comes down to what. What your pain for with sometimes the fee may be a little bit more about what you're paying for. It's priceless. And when I talk about putting a plan together and talked 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 planning how to we'd 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. Inherit its that for the most ease the maximum ease but the minimal amount of attack. Taxes. Why you'll have 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 greens is it gonna happen forever or we gonna have a correction argue prepare for the next correction it's gonna happen. It's gonna happen there's a bubble out there are forming its like a hurricane there's a Bobble out there are forming we know what's gonna pop Warner 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 feat 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 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. Dispute at the following call 806465996. That's 806465996. You can get a complimentary review of your financial plan. Just call now at a take advantage 806465996. Strap him. Well it's time to take him with a Pritchard who drilling here on the financial symphonies with in the news this is the topic we've received recently here throughout the last. For weeks or so. In the headlines with news and Richard it's been reported that Warren Buffett you know the oracle of Omaha controls about 449. Billion with a B. But also has about a hundred billion currently sitting in cash what if anything do you win. Far from that information failure of the purpose of this cash or what they call offer assets is to support spending when the portfolio is down so. It's possible that he's expecting some sort of correction and he's waiting on our corrections so that he can reallocate those funds. For profit you know this is an old strategy to maintain. A separate cash reserves from the rest of the investment portfolio with the intent. To reposition Wendy opportunity arises argued I'm sure people do that as well. They always you're not doing that if you're in a position right now where everything you have is invested. In it's possible that we should do review on your behalf. Give you an opportunity to understand the worst you've taken and maybe an additional opportunity to take care of some opportunities that. Look promising down the road. If he calls a buying stocks on sale a lot of times right Asahi donors Syria. And so and you talked about that earlier in the program as well as this does sometimes I'll pull back or correction is a good time to make money by actually getting into some different investments depending on. The situation if it works well for you. So I'd listen that's the whole idea you just need to make sure that you have a plan and that you're talking with your financial advisor. Were your financial professional about your situation and making sure your communicating man. That's in the news with Richard literally here on the financial symphony 806465996. Johnny cashes estate was approached by an advertising company asking permission to use. Ring of fire on an ad for him right green. The request was freaky. On a similar note here 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. Thank you are staying tuned into the financial symphony Mark Killian here alongside. Richard gooch are really he is an investment advisory Carolina retirement resources here in the Charlotte metro area. 806465996. Is the number to call to talk with Richard. Get yourself on the appointment calendar and command and have a conversation about your specific financial situation. 80646159. Nine. While there's so many factors that you know are different for everyone in retirement planning variables if you will. There is also some constant that affect everyone no matter really the specifics of your situation. And a lot of times on the program we talk about how everyone's unique situation is different and that is true. But there are some constant that do affect this also had a we plan around some of these for example inflation. Talk a little bit about that. Well you know just to find inflation you know on its defined as a sustained increase in the general level of prices for goods and services you know is as inflation rises. Every dollar you owned by a smaller person and so inflation is known as perch and power risk. And again it's the risk that the cash flows from your retirement savings. Won't be worth as much in the future because of changes in purchasing power. You know inflation causes money to decrease in value that's some great. And does so whether the money's investor or not. You know for a retiree. Inflation is a significant concern and one that requiring your attention. It also lets say you're planning to retire at age I'm 66 you know your current life expectancy figures. Give your retirement window of about 25 years maybe maybe a little longer but 25 years. So we use a 3% for an average annual inflation rate the future value of your dollar. 25 years later he's only 48 cents put another way you can afford to buy less than half. Half as many good is 25 years into retirement as you could when you story so. The impact of inflation on your cost to live in you know certainly has real consequences. And factoring that into your retirement plan is extremely important. In house Social Security has built in inflation protection. But don't we've seen that their costs live an increase rescinded in the past whether or not or would happen again who knows but it can. But the balance. Your shaven certainly needs to be managed appropriately to. Wore off then the negative consequences associated with inflation. And even though inflation is low today. It could be much higher in the future you know in the last fifty years mark. Inflation United States went as high as 13%. But let's say it's only 9%. We get a benched 32 years three years and it's about 9%. Well I'm percent inflation won't cut the value of your dollar and half he just only eight years. So looking at the world today. Not one country. Is run and a surplus all of them are running deficits. That's OK if you have enough economic growth but we don't and god is going up faster than growth can replace it. And if government's own money there will be inflation you know how much I don't think anybody really knows it's it's possible it could go as high. You know his 1520%. Who knows it it could it might not but I wouldn't bet my dollar on that triggered the deal. If inflation does return suddenly you certainly need to be prepared to prepare for inflation. You know you want balanced portfolio to include. A growth portfolio mean but I don't portfolio you're retired as your retirement plan. Has a growth portfolio wanted to include hard assets in stocks you know after you've met your required income needs to the balance of those statements. Should be invested in allocated for growth. Stocks have historically been the best long term hedge against inflation and hard assets have done very well bunkers or high inflation as well. In a sense stocks and hard NASA's act as a supercharged. Cost of living adjustment for your retirement account so be prepared. When Richard you know you mentioned with the and all the countries. Running a deficit and you mentioned taxes so that's the other piece of this that is a constant rain is rising taxes. Who knows when that's gonna happen obvious today you know every administration says they're gonna try to cut taxes but. Believe it an hour currently living in some pretty historically low tax rates. Which means it's almost certain that at some point they do need to increase not to mention the debt that you mentioned as well so had a we've planned for that with all that uncertainty. Yeah you know when I talked to potential clients there under the impression no market taxes will be lower in retirement because they've been cold. That bill venal or catch Brian rice told you better pay taxes later in retirement and furthermore you're working. Unfortunately that concept is a myth frequently when I meet with these pre retirees are retirees are subject to taxes comes up. And I always Ashman. They think taxes will be going up or down in the future and inevitably. People are thinking that taxes will go up and I agree. I personally believe taxes will will be increases regardless of what we hear publicly. I say that with confidence because the maps never lie to you our government will shouldn't need. More revenue to meet its commitments and those of you who have saved a tax deferred accounts may soon be surprised what the government share of that account may be. In a remember you haven't paid taxes on your contributions. And you have to pay taxes on the growth at some point those taxes will be due. Unfortunately. I think that there we don't think this much but unfortunately imposed plan. Can increasing share if you want so. You know the best plan for you is the one implemented by you and I plan should include details on how you move some of your tax deferred savings accounts. That are forever being taxed. Two accounts that are never be intense factional fortunately the tax code includes several tax provisions you can use to create tax free retirement. Income. But few of you take advantage of them you know for example if you can pay the taxes. It's always a good time to do Iraq Roth conversion. But it's especially good time if you sustain portfolio losses. And if you do Roth conversion today you'll get tax free republic rolls tomorrow later on down the road a rock are raised don't have. Required minimum distributions during her lifetime. And that's the case. Then you're not required to take money under the account for you have more money staying in the account and growing tax free compound in overtime so a Roth conversion today. Means leaving the tax free Harry shares tomorrow as well shall keep that in mind as you ponder whether or not are creating a tax free account is in your best interest. Another option out there is life insurance you know properly structured life insurance contract will provide tax deferred growth. Tax free distribution. Eliminate market volatility. And provide tax free distributions in the event of a nursing homes day. While creating a legacy for your beneficiaries through death benefit. The lack insurance retirement plan you know it's an accumulation cool. Just like a Roth IRA or should take similar to a rough water. You know properly structured life insurance contracts and raw retirees in my opinion are the accounts of choice. To create tax free withdrawals in retirement when your thinking ahead to retirement. Or even if you're already in a retirement. You know tax plan and should be part of your decision making from the beginning and you can pretend that these things that are going on world. Don't exist you could pretend that everything is fine and there's no need to worry or you can implement some proven strategies to limit your tax exposure in the future. You know I think most of you will agree that the economic environment is unpredictable. And that's why we preach putting your money into many different blockage in a lack of Ferris wheel if one bucket happens to turn upside down. All the other buckets you've invested in are still opera you know what kind of shape will you be in if all your money's an attachment per bucket. And Uncle Sam raises taxes dramatically. So if you believe that taxes will be higher in the future. You know to ask yourself does it make sense to deferred taxation on all your retirement savings to a higher tax rate in the future. So for the next ten people call us right now. With at least 200000 dollars in their retirement accounts. I'm gonna offer a free complimentary financial review of your entire financial and retirement plan. There's no cause for this visit it's simply a chance for you to get an education about your money. So that you can make the best decision for yourself moving forward you know we found that most people don't. Have a true understand and have three basic things they don't know how much you're paying in fees and commissions they don't know how much unnecessary risks are taken with their nest egg. And they don't understand the tax implications of their retirement savings. Many of our radio listeners who go through this process eventually become clients. But others don't in the process isn't designed to turn every listener into a client is just an extension of the education that we try to offer on the show. But we can't give specific advice for your unique situation on the radio so this is an opportunity for you to get answers to some specific questions that you may have. Or maybe even answers to some questions that you didn't even know you needed to ask. So for the next ten cars with at least 200000 dollars saved for retirement I'll make some time on our calendar to visit with you again you just copy Murray financial road. To get started the day call 806465996. That's 8064659. 96 to sit down and talk what Richard which really about your situation. He is an investment advisory Carolina retirement resources here to Charlotte metro area and you can reach him at 80646. 5996. To get yourself on the appointment calendar commanders have a chat 80646. 5996. You're listening to the financial symphony would Richard who drilling will be right back. 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 as you look back on life and remember the music strikes or take a moment to look forward to your retirement. Any time ripe with uncertainty. Only the time eventually. If you're in a spot now where you don't think your current plan deserve that kind of celebration when you reach retirement. Think it's time to get a second opinion. Come visit with your financial my strength Richard materially. Serving the Charlotte metro area. Call 806465996. 806465996. Did you house produce more milk when listening to relaxing music. That's according to a study conducted in England in 2001. And reported by the BBC. Did you also know that people achieve a higher level of financial satisfaction while listening to the financial symphony. It was never recorded by the dvd primarily because we made it up I keep listening anyway. Lower cruising down the homestretch here today on the financial symphony Mark Killian alongside Richard could surely investment advisory Carolina retirement resources. Here in the Charlotte metro area Richard can be reached at 80646. 5996. That is 80646. 1599. B six richer we've been talking today about retirement Constance on the last us section of the show as well as this one. About those things that affect all of this kind of generally across the board everyone's situation is different and specific but there were a few Constance that we. Kind of all share of course we touched on inflation. And rising taxes. And and when you were talking you also mentioned the market in there as well. And that's another constant market volatility is always going to be there and some former fashion correct structure of. You know when you invest in the market you know it's all about risk and return no more tolerant. You are at risk of more risks that you can take which eventually hopefully translates. Into a larger profit. On the other hand if your risk averse you want to be placed in more conservative investments that are more secure. But less profitable. Hailed as a definite difference between B and risk averse and manager of risk you know the reality is. That the closer you get to use your savings as a source of income. You know being in risk averse makes sense it's everyone's. Natural inclination to want to avoid losses and I agree with that you know so when you invest in the market. You know remember risk is what you bought it and returned it what you hope for and there can be no expectation of return without risk. So you have control over what you bought and what you bought these risk you can't control for return but you can control full risk. Unfortunately the average investor tends to obsess about return. With very little focus on the risk that your take him. And the temptation to focus on return is extremely strong because that emotion known as Corey. You know but in the end success really comes from a focused on things that you can't control. Risk is the control factor in your portfolio not returned an excess return of that your desire. Cannot be achieved without excess risk. You know volatility. Must be controlled and retirement. And you do this you know by and point and risk management strategies that minimize the effect of a significant drop in the market. On your income and your portfolio. Market volatility. Is much greater when you're taken income from your retirement savers and it is when you were saving for retirement. You know when you were saving for retirement. You know those market downturns they may have reduced her assets but they didn't affect your income and nobody retirement. All or portion of your income is generated through her assets and the impact of market volatility is much much greater. What you need to do as you need to have a plan for retirement plan and that plan should include a safe money strategies for required income. And make wrote portfolio for your future income you know so that you can offset inflation. When you diversify our strategy Jr. retirement income plan you create in com to pay your monthly bills today. And you invest for additional growth and income in the future. All these pieces work together is certainly is a puzzle and having all those facets of those puzzle parts. Working together certainly can make it a successful retirement plans that much more possible we're talking about some of the Constance market volatility there being another one. Health care Richard obviously is going to be a constant as we age health issues are going to. A rise for most of us and everybody at least needs to have some form of a plane and and how they plan to cover this cost in the later years you can't just the go about it or input like an ostrich and put your head in the sand and say it won't happen to me. That's so true you know I've had maybe 23 clients a year that are often quite surprised. At the rising cost. Medical care to own sure events and so there are very happy that they had prepared in advance. It's something that you need to prepare for you know unfortunately many of you believe Medicare will cover everything or not and neither of which is true. Until you experience it yourself most of us make assumptions are based on this information which means there could be some uncomfortable us surprises ahead. You know health care costs and longevity they go hand in hand. But stay healthy retirees that tend to end up with higher lifetime health care costs. Simply because they just live longer you know and the biggest cost of course is custodial care or long term care. Or notion home care. You know some clients rape the ability to pay for long term care 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 this year received long term care for for more than five years at a cost of about 6000 dollars per month. I mean that's 360000. Dollars over five year period. So you don't nursing home care is not cheap and it will be more expensive for most of you twenty years down the road. So to be prepared for the financial impact that long term care. May impose you need to plan for today in offer many of my clients that requires investment portion of their statements. An insurance products to help cover the cost. You know for example many of my clients have life insurance contracts to provide an accelerated death benefit. And accelerated death benefit is a benefit they can be attached to a life insurance policy that enables a policyholder receive cash advances against the death benefit. In the event of a nursing homes today were being diagnosed with a terminal illness. And in most cases accelerate get benefits are not subject to federal income taxes. And if you never me Medicare your errors receive an income tax free death benefit. And if you ever need access to your money you can make withdrawals tax free. It's what I call an all inclusive products are regardless don't believe it won't happen to you. Because it could and that's why you should be prepared rising health care costs are going to be a reality so planner. Org and yet we have to make sure we address these things folks it's so so important that we. Look at all these facets of retirement it's a different animal than just the accumulation phase. As were working in growing our wealth than when we get to the preservation and distribution phase. And now retirement and of course Richard can certainly help you out you're listening to the financial symphony with Richard who drilling. 806465996. As the number to call a talk when Richard. 8064659. And 96. OK Richard our final piece here fees and commissions. Nobody works for free right there's no free lunch is out there and there's always going to be costs associated. With anything that you do in the financial world. Patty minimize these cost or maybe maximize which are actually getting in exchange for what your paying. I guess the value may be is the better question as long as you feel you're getting good value for what you're paying. Yeah I during you know Galileo once said that all troops are you understand once they're discovered. The point is to discover them and one truce mutual fund investors have not come to easily understand is that there are hidden cost. Not reflected in your monthly statements when you invest fusion mutual funds you know when you hear people talk about mutual funds. He always you're talking about greater return but you don't you're talking about the costs associated with those mutual funds so if you ask your advisor what is his or her feet is. You'll likely get a response of 1% or one point 2%. And that's likely true but that's not the only feet there are others and for example every mutual fund has a fund manager. So every mutual fund has a fund fee or expense ratio to compensate the fund manager and cover other expenses. Even if you're invested in bonds the advisor fee in the fund fee may be much much greater. And then there's also this notion of turnover rate you know what how much is that mutual fund buying and selling Dorn a quarter of the year. And generating additional fees as well and additional fees trading fees and sales slowed her commissions all these fees combined. Are very likely to cost much much more than 1%. Listen you know feature par for the course in the financial world. Independent advisors give you advice and investment options they can build a full retirement plan in corporate and tax plan and legacy plan in. Income plan and investment and long term budget end they'll stay abreast of the worldwide economic environment and monitor your finances on a regular basis. And adjust them accordingly so so make sure that you receive in significant value for the fees which were pains if you're not sure. You're on the right path. Over how you should be managing your retirement savings you know gotta hinder me calling next fifteen minutes I'll custom design Q and easy to understand financial review. And that review will indicate if you're in need of a full blown financial plan. There's no obligation or cost for this commission reviewed all caller we have at least 200000 dollars saved for retirement. So if you meet those qualifications here's where you can expect you know first Colorado mornings or analysis and comparison report. And that'll help you untangle what it's cost you work with your current planner advisor. As well as how your portfolio may perform dornin sugar market downturn but also show you how to protect your investments and keep more money in your account. So we'll also talk about your taxes may be doing tax analysis to show you how are you could possibly future taxes and accretion cash flow. And finally will create a customized lifetime income plan usually proven strategies and techniques that could Turbo charger retirement income if one is needed. In short we'll pick guesswork out of financial plan for you Phil for all the calls caller next fifteen minutes mark hum offer a comprehensive financial review. And this review being offered for no obligation on their part. And the number to make that happen is 8064659. 96 again no cost no obligation. To get on the calendar command and had that initial conversation with Richard he does have to take some action 8064659. 96. That is 806465996. To come in and sit down. With Richard which are rarely at Carolina retire resources either at his office and hunters on a Carolina or Rock Hill South Carolina. But he services the whole Charlotte metro areas to give him a call 80646. 59 and 96 take advantage of this great opportunity to make sure that you just headed in the right financial direction. As you head for retirement as you get into that our retirement red zone whether year. Five years out or so were already into retirement maybe even already have a plan in place will second opinion is always a good idea as well. 806465996. That's 80646599. Six you've been listening to the financial symphony today Richard thank you so much for being a guest on the show was always. We appreciate your time and your wisdom. Thank you very much and know we'll do it all again next week to make sure you tune in for more of the financial symphony with Richard could derail. 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 also threw Brookstone capital management LLC an SEC registered investment advisor.