Retire RIght 04.02.17 Seg2.mp3

Retire Right with Alan Becker
Sunday, April 2nd

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

Do you. You're listening to retire right with Allan Becker on the retirement. News network. This is Al Becker would retire rant radio for retirement solutions here I am very excited about the gas. I have on today show right now. His name is David Bach and David has been in the financial industry for nearly three decades. As the author of nine. Bestselling books including. The automatic millionaire Smart women finish rich and Smart couples finish rich. He's also been a guest on the Oprah Winfrey Show several times is considered one of America's most trusted. Financial experts. You can find out more about David had finished rich dot com you know as I've worked with clients I've been surprised at the number of people. Who had a financial advisor but did not have a detailed financial plan. When you think about the key components of a good financial strategy what comes to mind. Well there's so much to do so again the pursing his. A good financial plan looks everything not just under part of your purple mountains gold can't show me what you got over here I'll help manage our money and good financial plan. To look at your overall networks didn't. Kids look at your insurance the extra cash flow needs. Looks at your goals financially it. And build an entire holistic gymnast who planned around. Without sad when you drill into the actual investment plan I will tell you that the most critical component of that. Investment plan is that it matches up. With year risk tolerance. So. Doesn't pay to make an investment plan that's aggressive even if you need to be aggressive if you can't handle me grass. Many people in fact I would say in my experience most people when you reach retirement don't take a lot of risk. In reached a point where you're like at the top of the mountain. You worked really hard to get there and they don't want all atop the mountain so. Is really important that your financial plan that your investment strategy. Matched your goals and your tolerance for risk and what is called volatility how much can you handle market's going up and down. Once you've done that conversation when you look at that. A good financial advisor is going to create. ETE tail asset allocation strategy. That matches what she told them your risk tolerance laws your goals. And past location is one of those complicated terms and in many cases it just blows right over people's heads but in layman terms. It took my exit which you don't put all your eggs in one basket when you diversify your investments when you have some investments in stocks and bonds cash. In gold and real estate when you're poor all new global announcement here or. You know that in any given point throughout the year something's gonna go up and something's gonna go down. But over time and that's the pour oil. Is going to do decently. Not looking I'm a big believer you're not looking for home runs. When you retire you're looking for singles. Still John basing get home and it. And that's how I think he'd been punished by it will build your plan again. That Kassell accused distract Q we know for found. Out when we look at what creates a performance and our clients' investment returns. All the studies had shown the last cell location is driving component in text data showed their remaining 80% of the purple has returned. Is based on the asset allocation decisions that are. So that is really. You know Arnold secret sauces or her but it is a critical critical component. The investment plan as creative or year and then really a big part of that plan. Is making sure that is regularly reviewed in regular rebounds he's on your goals what's changing your life. That's the investment. And the second world but to this. Is it's really. Important. That your financial plan looks at a statement. And specifically what I talked about scene playing and he really be secure for second. It means you've got yourself will are living trust in place. Saying case something happens you are when something happens when something happens your spouse or something we're happy with the two of you. You got it written legal document. Telling your beneficiary is how the ST should be taken no room where the money should be distributed. That instantly critical has he done it the easier part of your financial plan. And then there are sometimes where insurance is being part financial humidity ensuring. One or both the view in case is disastrous of the there's enough money to secure the other person or your kids. Now another time insurance comes in a plane. His first day I purposes is it can be so big a lot of people use insurance amnesty playing vehicle to pay taxes. When they pass. That's all really important lasting and I don't covered a lot of water is the beneficiary which. Really really really really important that the beneficiaries are up to date incorrect on everything's the beneficiaries correct. On your higher and it counts on your annuities on your insurance. You need to make sure that all beneficiaries of an update. And you also want check and make sure that you have a succession. Beneficiary and play Lotta times people have beneficiary witches or spouse. But listening were to happen to them members Alice they don't have success or which is often kids or you stay so you need to have that. On your documents and you should make sure those erupted at less definitely great advice there David. If some is looking to put together planned what do you think they should look for a financial advisor is that's the million dollar question right and what's it what do you look for first question look Flores is I think number one you trust. And I think that that's the single biggest thing people are looking for action when you go into financial advisors operas do you trust. And a lot of time fueling homily nil by contrast. So first of all I really do believe that most of us have an incredible guts and immediately the people we contrasts. Our gut sense is almost always right I think you go in the first ten minutes do you trust the person you're sitting across from. And for some reason you since you can't then that's I think all you really quite frankly need now. If you do you trust them and then I always go back to what Ronald Reagan said which is about the Russians. He once upon a time said trust but verify. See how it once you feel like you can trust the financial Basel and in need their fine. Who who are you can that's a very easy thing duty they're all kinds of web sit you can go on in a broker chat. I you can check three TV but you and your body can broadcast you'll. Go online and and due to due diligence to make sure your advisor actually is who he says he is there is who she says he is. Compare to what they told you I told you did in the business twenty years and you go back online in these foreign capital into the business I hears that the problem. You wanna find out that it buys got a complaint against. These kind of things by the way that say it ethical honest. Well doing punished but there is never gonna be concerned with because they're what he complains. And they're never gonna tell you doing that's not true sell these are very easy things now it and berries and check the second thing is I always go back a holistic side of this which is. When you meet with the financial advisor and Goodwin. Good one's gonna really spend time asking a lot of questions they're gonna get to know you gonna need to know your past meaning it's no your present wanna know. Where you see your future. They're gonna talk to you about your values are gonna talk about her goal or talk to about your dreams. They're not just talk about what age you wanna retire and how much money yeah that's that's what I would call beginning stages of financial. You need to question what's your number. That's an old school question no. Good financial advisors today. Are really happening a holistic conversation their clients seem to know him closely. And you'll feel that it bothers you being questioned though not salesmen. And then my present you with the investment plan. A good financial advisor is gonna make absolutely sure that you understand it and if you don't understand it. Usually feel comfortable asking them questions. And you should feel comfortable asking them as many questions as you war. If you feel like you can't ask that financed by your questions and quite frankly possible in the wrong advisor. You'll also want to make sure. That you understand the fees so. If I do Sherri and good financial blogger is going to be very transparent with him about the future option. I would tell you that that's really at this point and day with the deal will ruling. That's a job and that's a law need to really disclosed fees you need to understand what's cost you. And that has not my last comment here is which is really in dire financial bonds that are are you sure. These are people who are registered to be investment advisors. They have gone through tasks to be redshirt message of buzzer and they are required by law to be a do you sure that would sure interest first. I think you did you all of those things which I know sounds like a lot of people normal time finding great financial advisor. Under great financial advisor can change your life. And protect your am exactly I think a lot of people just assume all financial advisors at the same and as you and I know that's definitely not the case. David as you know the stock market it's near all time high interest rates are near all time lows. And there's lots of volatility in the global marketplace and numerous other things are affecting investors. Mean what do you believe is important to keep in mind when investing in today's markets. That's great question well first thing you got to keep in mind is the markets don't always go up. If people know that and I think people remember that but it's encouraging his rear outside. Sit here I know I'm using iridium. We are living through a seven year bull market and we've basically had sees the bottom of the marketing and in 2009 we had a market pretty much goes straight up now there's been volatility in the market and by the way that's a really important point that. There have been points throughout the last seven years in the markets had no drops remark has pulled back five or 10%. And that's very normal in fact what's important to know is very normal for markets go up markets go down as a lot like the weather you're gonna have winter greenhouse summary no script. Is important to expect that markets will go up and markets will go down. And again I think the real yield team. Is surviving a ball to market is diversification. Is having a professionally. Managed diversified portfolio. With professional money management. And that has a combination of really everything and it you've got stocks you've got on him that casting doubt US investment you've got global investments. You on the stock portion of purple you've got a large gap you've got knit cap you've got small cap. He had value stocks you have growth stocks in all of those years. A global investments and fixed income side you have government bonds and corporate bonds and preferred stock. And high yield and treasure no inflation protected securities. All of these different investments should you wrap them together you build a really well diversified portfolio. You're going to do better going through these Baltimore is a go up and down and didn't see your asset allocation model. Is automatically rebalance is being looked at it in. And is being rebounds almost forcing you times do you sell high and viola. Often what happens with the master's is being behind high and sell. And professional asset allocation. Does the exact opposite for as a client and hasn't vasser and I can make all the difference in the world. I will also say it's really important to understand. Don't risk that your investments have so good financial model used risk based tools. To help you look at the risking your work pool. Lot of advisors are using the tool we use called risk lives. It is a way to hope the client. Really have a deep conversation about their comfort level of risk and then build or oil. Based on the level of risk that they are comfortable take and that's simply critical. The last thing I would say here it is it when people talk about risk they often talk about risk decent stock market. And it's really important to know that there is risk in all the mark is risky fixed income there's risking long. So because the return all time low bonds is done that are well I you bonds gone up. It's been a very. Almost an easy place in the last 57 years even ten years to make money in bonds as rates go up. Bond prices will come down so it's critical. That you understand. The risks inherent in any interest rising market which we will ultimately some day have. And that you prepare your portfolio. Accordingly. And again you're not clear on what kind of risk in your fixed income in your investments have. That's the kind of thing you can talk your financial life or not commit kind of look you are or polio take a look at the duration of your bonds. Decent valuations to learn and you have to. Risking their portfolio and talk about who is maybe they can deeper the risk donor. And that's exactly what we do every day I've had this discussion many times potential clients. No I know it's important that people feel comfortable with their financial advisor and that everyone involved is on the same page when it comes to retire planning. Here retirement solutions group we will help you to create the plan and work towards your retirement goals. Give us a call 9136859422. Once again that's 9136859. Before 22. 91368594. Way too. David thank you again for your time and I look forward to talking with union sent thank you so much for having me on your show in great European debt. We'll be right back with more information on retire right radio Al Becker just a couple moments. This is retire right with Allan Becker on the retirement. News network. And. Whether you're approaching retirement. Or are already retired transitioning into retirement can be a daunting time where you get incoming what is the the market drops out she takes Social Security joined the team from retirement solutions group. And RST investments or discussion about these factors and more all out retirement solutions group treats you to a complimentary dinner at Joe's Casey barbecue you know late them. You've picked against 6 PM on Tuesday April 4 fourth Thursday April 6 at Joe's tasty barbecue you know link them. Reservations are required so call 9136590. Port 22 to reserve your seat today. That's 9136859422. Seating is limited so call now to learn more about these events and how you can attend. Retirement solutions group 91368519. Or 22 or on. Our SG. USA dot net. Investment advisory services offered through eight eat well management LLC. You are listening to retire right with Allan Becker on the retirement. News network. Megan does next year from the retirement news network back with Alan backer and Alan I detectives say fantastic conversation with David Bach whipped through Elliott key is so well known for his books he's written nine best sellers automatic millionaire that's the one that comes to my mind first. He's a wealth of information and I love what he had to say about. Or what need to be looking for in the right financial advisor how to find that person some of their qualities who would click takeaways from that discussion with him. You know he's just a privilege to talk to some is so Russia wealth of knowledge in. And I appreciate him taking the time to sit out with. We here at Kansas and in giving us the opportunity to share that information with our value listeners. Alan I brilliant and also enjoying this conversation we're having about charitable giving and where that fits into your overall financial plan. And I want it'd just give us a few more insights as you if you would as we start to wrap up the show today. A ballot. Discussing charitable mindedness with tier clients and some of those angles that we haven't gotten to yet the Ingles that you might cover. As you're talking about someone's overall financial play. We'll make it you know we noted the idea of giving non retirement assets to our beneficiaries upon death not for tax reasons. Let as I'm neither a tax professional or a lawyer and a stick to what right now and I know the one of the best things we can do both for ourselves and for the people we want our well will eventually impact. Is to be share to having diverse mix in our portfolios. Diversity in terms of assets and account types. OK so that diversification so important what that look like Alan. Well first of diversification. Doesn't necessary mean having stuff all over tout. I think what those things that people got an all time. Like we're diversified we've got staff with four different advisors and that's like a reporter for cooks in the kitchen a lot of times and diversification. Talks about having things in different asset classes. Be easier chase returns you're probably chasing your tail you're just always going to be a year by high of the three main asset classes are stocks bonds and cash equivalents and bay. Each have different degrees of risk and return. Both as a whole class and within each class itself so the classes typically act differently overtime as a result. So you have to have your assets based on your wrist tolerance. In look at the different portfolio mixes and and being with an advisor. Or somebody that you. Not only get along with but understand they're speaking English and it's resonating with you of why you should be in. Which product or which solution. So the you know where you should be draw money from when you take those withdrawals you don't want to raise your tax bracket if you can avoid it you don't wanna do not. Pay enough taxes because your. Prolonging the inevitable required men distribution. She battle at time is just so many questions in spots and solutions that go into building a portfolio and protecting your from losses. And having the option to make the withdrawals they you need to make it. That assist you the bat so yeah an overall retire for polar ocean include her can include a mix of taxable accounts such as the stocks bonds mutual funds and real estate but I also tax deferred accounts like traditional IRAs four case for a three b.s you know any of those alphabet type letters saps and samples. But tax exempt accounts including rock firings. Using life insurance is an asset class Social Security pension plans annuities. There's so many other sources you need to sit down and make sure that what you're doing makes sense for you. So it sounds like it. Having had diverse mixture it's gonna help you weather market volatility obviously but it's going to help you make those donations despite the market's impact. I think what you're talking about Reagan is that consistency of income that reliability of their incomes so if you have things situated correctly retirement. Whatever it is whether it's helping out your grandkids are taking care of your church. I your favorite charity that having that consistent and reliable income coming in no matter what even if the markets down. Your checks still come in and that give you the peace of mind and the consistency to do those things that you committed to you that you want to do that you. Our earnings you have to change your approach your mind your situation. Because of some sort of paper loss hate that term here old tired from a brokers to an advisor. Advises you how to position your. Portfolios of the you don't have to you work in that risk and meet with clients each and every day that think they're doing all the right things in them and make Eminem we talked with find out. Yeah actually they're person there working with may only be commissioned salesperson for stocks bonds and mutual funds they literally insurance license or perhaps. They've been in the business for thirty years but they don't know anything about insurance or safety they only know how to put money in the market. Which typically dilute support for us just meeting with a very nice couple the other day. And they've got several million dollars and they're working with a very well known firm but what. You know when Al came to it they were actually educating. They're quote unquote advisor on how to use their. Existing life insurance policies they've had for years rather than the person that the working with to give him to enter retirement. Having networking knowledge so I think it's so important. And as retirees in today's world that we know. Howell and wean him what to use. And to work with the fiduciary that. In my opinion is not only insurance license and securities license well. So please please come see me here retirement solutions group pick up the phone. And call me 91368594. Teach you how to put together is no cost no obligation consultation build out our round to retire process and this is just a great program. To tell you all the things you need your retirements he can figure out which charitable donations you're doing and how often but I also what monies come in and win and from where what's inflation. What's the chances you're gonna run out of money in retirement. Because we like to build a program that's projected out conservatively. To give you a 100% chance that's the goal. I like to be conservative I like to be consistent and I know. The people we work with like a team we are using safety gear keys we are using insurance products. And we are using and that's based on the claims paying ability of the insurance carrier we choose but regardless if you have a good working knowledge and you understand how these programs work. It's gonna give you much clear and hopefully safer path to retirement. Obviously your enemy in the market there's an element of risk you got to control of volatility. So pick up the phone call me 9136859422. That's 913685. 94 when he too. Allen's web site you can go to retire right with Alan backer dot net for more information. It sounds like as you're talking about planning for the future are having a little flexibility. But actually might help you beat our charitable be able to. Empowered others in my right. Now it's quite possible they retirement strategy can put you on the path to financial independence. Hopefully to where you could have a tidy nest egg for retirement keep more of your assets in your own pocket. And not an uncle Sam's. This thing wrong with help from the government I just think we know how to use our money a little better than Uncle Sam. Live the lifestyle you want in retirement and you know you don't need a great financial plan if you died tomorrow retirement and retirement planning is about longevity. Fixing longevity risk. And according to Social Security dug out of you've got a good chance saloon and in your mid to late eighties and if you're married one of you might make it in gear early ninety's on average. You need to worry about that twenty to thirty years of unemployment and proper planning can help you do that it also gives you the ability to give back and support those causes that you believed to be beneficial to yourself and others. And that's what life is all about making and so you know one more piece of advice to offer. Find it worthwhile cause organizations. A year passionate about and start giving like me with the veterans you're your time your money in all help. Alan it's been a real eye opener this discussion about charitable giving also really enjoyed your conversation with. Bestselling author and financial expert David bock during our program today. And that's a real treat and we are out of time it it's been it's just been a whirlwind it's kind of fly or else he won or shared today about charitable give being. Or are planning anything along that line. You know Megan. Charity is exactly what it is it's supposed to make you feel good inside it also doesn't hurt. Two you know receive a tax deduction I mean taxes are forced extraction voluntary contributions. And you don't oh. The law doesn't demand to pay any more than year obligated to sell if there's a way to help somebody else that's less fortunate and organization a good cause. And I'm all about supporting our listeners that one do that and giving value to retirement that your retirement. It's a scary proposition for many of us in the idea of going years and years with just what we've built for ourselves coming in as income unfortunate. For some people they are pensions. Others decide to create their own personal pension if you will by. Using an annuity or life insurance as an asset class to. Create consistent income over the years. Whatever solution that works best for you just realize. That there's a lot of options out there that you may not be aware of and eight good meeting with a knee. Financial planner that it years of experience like we do here for over eighteen years in the helping of good folks like yourself Keating Nellie to retirement at their retirement. You can benefit a lot. From a meeting I feel and and I'd love to have the opportunity to sit out what you can't help you with a no cost no obligation consultation. Or we can get your questions answered. Use your numbers to build out our round today retire process today for lack of better term create a blueprint. To guide you through those. Potential water's coming up front. So as it always maybe it is just an absolute pleasure of sharing the Airways with you and I hope that. Our listeners are aren't enjoying what we do for me to every week in the third. Looking forward to coming and seeing what we can do for them way to do that 9136859422913659422. All now. 9136859420. You've been listening to retire right with Allan Becker on the retirement. News network. Investing involves risk including the loss of principal no investment strategy can guarantee a profit or protect against loss in periods of declining values any references to protection benefits or lifetime income generally referred to a fixed insurance products never securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company are firm may be able to identify potential retirement income gaps and me introduce insurance products like annuities as a potential solution talk to your financial professional and your tax advisor about -- Social Security benefits can fit into a complete retirement income strategy financial professionals are able to provide you with information but not guidance or advice related to Social Security benefits Allan Becker is an investment advisor representative and insurance professional with retirement solutions group retirement solutions group is an independent financial services firm that helps people create retirement strategies every day using a variety of insurance and investment products to work toward meeting their specific goals we are not permitted to offer and no statement made during -- show shall constitute tax or legal advice -- should talk to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency investment advisory services offered you -- wealth management LLC.