Feb 11, 2017|
Common Sense Retirement Planning
Automatically Generated Transcript (may not be 100% accurate)
Good morning welcome to common sense retirement planning power you Tony daily with my best friend Phil Alan and mark Crawford is with us as well today. And our whole common sense retirement planning team is behind us today that's the cool things are. Commas as are our planning and just opened eyes don't team of people and you get to meet a bunch of them a lot of times can you come to see as. And they show is really designed well to do Brinkley a couple of things first of all. We watched for decades is that mainstream press has fed. Absolute full revolt to the American public. And much of it is we've discovered of late has been faults misleading spine. And a lot of people think that's just the case with the mainstream political. Media it is certainly not the mainstream. Financial press is every bit as biased as the political guys war. Their bias of courses toward. Keeping you live in the markets keeping you taking risk making sure that they keep keep feeding that Wall Street monster so they can all get their big bonuses at the end of the year but week. We deconstruct that narrative. On the show and try to tell you some things are going on that you probably are not hearing on CNBC. Or not reading in money magazine or whatever ourselves. Everything we do on the show is done through capital investment group member of Finneran and sipping it would be if securities license and and end any and that is why. Don't we do want to inform and entertain you we don't what you go out and take some sort of rash action because of something you heard us say. We've Randy Cummins analysis and let us look at your situation and help you craft something that would be appropriate for you. On how to deal with some of the things that we made mention that we believe are going to happen coming down the road. And having said all of that. We always. Start this program. Within the greatest source of wisdom in the world which is the Bible. We have certain. Acxiom and things we think about money and one that I always think about first is the fact that we all go to heaven with the same amount that it. You know that's a good way to look at Manny in the fact that god blesses us with here and also to be a good Steward of people think a lot of faults things about money Manning has a lot of false promises one of monies false promises that bring you happiness. But the Bible teaches us and psalm 374. Says delight yourself in the lord and the lord will give you the desires of your heart. Not money. Well said and we are living in cook. Perilous times they have to say. And and much of what is happening in America right now is. He's a shifty cultural societal shift of magnitude realized never our lifetimes we witnessed. Because a handful of people have become very wealthy and very powerful. And the election of Donald Trump by and large it was a repudiation of that. That it'll lead assists. A global lists. Worldview. And god loves the humble he says is so many different way he's been Luke thirteen 29 he says and people come. From the east in the west and from the north and the south and then recline at the table in the kingdom of god and be hold. Some relaxed. When we first. And Sam who were forced. Will be last. In other words it is not. What this world sees you as having accomplished it's not the status or wealth or power you have achieved here this going to matter in the final analysis. Because this little brief. Whiff of time we call our life down here on earth is going to go by in the twinkling in the ninth. And what's gonna matter is what do we do with it and so I would hearken to all of you do the portables out there rank. Thankfully consider myself one. To not lose faith to stand fast to speak truth. Into falsehood because we're living. In a time where there's more falsehood and I've ever witnessed being spewed forth. And essentially have started calling this is this is this this is ace. You know what this is another says nothing to do with with with what we're talking about as far as retirement planning and yet it does because what happens in our world in our culture here. He's going to affect us all so here's what I what I see in you and you can comment on this if you like. We've reached a point that in divorce court is called irreconcilable. Differences. You have to religions in America now you have the original line which is. Judeo Christian based constitutional. Most of people simply 1% in the latest survey identified themselves Christian. So that is who we over and fly over country red states that's kind of who we York. SR religion that's our faith. There's another way to call secular humanism cultural marxism and that is the faith of the left and they believe that justice fervently as I believe in my Jesus. And day. Unlike our side have a tendency to be violent very violent very quick. There is going to be no reconciling that world view and what they're willing to do because Solomon's key said the means justify the end. There's not going to be a way to reconcile what they are calling for. Cultural complete transformation. Verses. Our world view and so I have to tell you irrespective of your investment plan or any other thing. Buckle your seat belts because the war on Donald Trump has only begun this is round one it was going to be fifteen round heavyweight world championship conflict. And eat your money is at risk because in the end what they wanna do is take your money from you re distributed to people who don't deserve it. And I'm sorry and maybe maybe it's because I had Bobby Mack show this week and I'm all fired up and and and that's what I got to say about what worries. He Tony is that two things if you set already. Were the exact things that were going through my mind is almost like Bernal married couple exciting and that you that maybe that bothers me but one is hours reading this morning about their fake news. And the first thing I thought was this not just political fake news. Is this financial fake news that can really calls. Some disaster in your personal financial situation you know we talk about that there's people out there right now that are. Living lives of quiet desperation because they made pour fund manager or given poor financial advice. In 2001 and two in 2008. And but I was thinking that there's so many articles after they want you to take too much risk with your money in its fake news. He says that about buckle your seat males. I was thinking the other day about sleep males it was a weird as they when he says in the when I was growing up. You know I'm old enough to know when CE mails kind of first started coming down and even older and hammer and guess what my dad's in the league. For bailing people thought that this is it you know why you we've been runner Iowa seat belts all her whole life and everything and it took a long time for people to realize. Yes you do need to be wearing so emails it does save lives you don't want a tragedy in your life. And now you take a child out without a seat belt and it's almost criminal. Well I don't know if this analogy you'll bring home but you know first in the eighties and all. You two Koreas with your mind. Ever end and when Tony and I came out and said look we need to start thinking about retirement and you sort of need to put asleep melt. Around your retirement you know people make fun of us. In other all the way out you know you know markets go up in the air and all of a sudden in 2001 and two in 2008. People were killed because they didn't have a seat belt around and now you know is becoming more mainstream for people to think how can we be safe. Now with their retirement money but they're still so many of those people out there that believe you ought to feel like I used to read it here to California. In the against the window you know in my car no C melting any thing and usually that not work out. The so many people it's been you know a tragedy could happen. And now we realize that what we're trying to take unity is going into retirement. You have to make a change. You have to make a mindset change where you are more concerned about not having these big losses. Then you are being in every. New investment gimmick around. And you have to let. In some ways. You are safety over Roger agreed there in order to have more money and retirement if you want to know how to be safe and retirement how to get rid of the fate knees. They kind of make she field food. You know I always felt safe ride in the back of my father's car. When I was up next to the windshield. Didn't realize it is something had gone wrong I was in the most precarious situation that I can imagine. But ignorance is bliss. Look don't go into retirement with an ignorance is bully a stack portfolio it could mean disaster give us a call 1800. 6876768180687. 676 say look this up on the way admits CS RP dot info CS RP dot info as well. As swayed you or just mentioned we choose to respond or fake news. There's another. Achilles heel for investors. It's it's not just for investors but we all are favourable something called confirmation. Bias. And he's one of the biggest threats there is to investors and giving example reckon on nine he did a study in the found out essentially that. People are twice as likely to seek information that confirms their current beliefs. Rather than seek evidence that might disagree with their beliefs. Well. In the world of investing bet Kim BA very costly mistake because it's your money is on the line. And so under the spell of this confirmation bias the problem here is is the more information you learn more you gather. The more certain you become yours do you think you're right. And you don't know that the time. You're wrong because you keep being yourself this same false information. Bakken 2015 and get a steady CFA institute and found confirmation bias commonly. Influence investors judgment in usually lead to poor investment choices another study actually Beckham 2010. Found an investor strongly prefer ideas matching their own. Stock choices. And what they re on their message boards so. If investors have a strong buy a view of the stock market they are eight times more likely to click on bullish posts about it. Well here's where the rubber meets the road why it's dangerous to do that. Most biased investors. In this study became overconfident. Do his confirmation bias and in the end. Win the investors buy this increase by one standard deviation. It led to. Returns of negative 9% so one person standard deviation in confirmation bias led to. And 9%. Loss. And it is easy to do because the fact of the matter is they're all these voices out there talking to you about. All you go go get learn how to be a traitor and do options trading in all it. They're shown many out there telling you jumping into the bond market it's really really good so. We. Are believers if common sense retirement planning our common sense retirement planning team has won if toxin that is. Safety first. It is from if you Warren Buffett he's built his entire. Philosophy on. His rules of investing which is rule number one. Never lose money rule number two don't forget rule number one and by the way he is eight. Very much against confirmation bias him recently. Muffin actually invited. One of the guys that is at Doug Kass who is a vocal critic above it to speak at their annual meeting. The year we had the same. I as a talk show hosts like I would go and read. What the other guys are saying and just so I'll know. What they're thinking on the how to refute. So here's the the overarching point. This is too serious a matter. This is a series seizure hell. Because your health and your ability to generate an income in your retirement. Mean that's pretty much what you path. And if you something happens either one of them was in fact if you something goes wrong with your health you better I have your income in Europe. Your financial resources square way to help you pay for dad which is likely to happen in older each. Was you see we we we look at all of these things we look at long term care options. We look at how do you pass things on you're just the first and most of fundamental thing in common sense retirement planning we do. Because we are the upstage original retirement planners lest you forget. Is it we want to make sure that if the market. Goes south tomorrow. There's a terrorist attack or some Bob Bryan in downtown new Yorker who knows why it. Date you will not lose a dime. Even if the market loses half its value. We want to make sure that first you can't afford to lose any money at this stage in the game. Secondly you know we wanna make sure that whatever you saved. Is going to land issue and your wife for a life by that I mean guaranteed. Income not the or I got a bunch of money over here and there may be fighting for version a year I'll be okay in the in the market crashes and money's no not that. Guaranteed income for life for two people. I'm not talking about an older annuity here talking about a whole different approach. Income for two people for life and gains. Raise news in your income. Based on whatever rates of return we're getting at that time because you seem to be it is as we get away and making good rates of return. During periods in the market going up without putting which you've made at risk when they crash. To that in a nutshell is sort of one of the main things we do the blink of other things well bit. This is the time before things get completely sideways. To come and see yes. Four complimentary common sense retirement plan review one of our team members or meet with you learn about what you. Which are trying to accomplish and achieve and will craft. A plan specific for you that will help take the fear out of me so today is the best day to do the race. Go to CS RP dot info they sent for comments and retirement planning CE SRP. Dead end though. Come and see this and get rid of that war. We have a lot of Acxiom here that we. Go buy it comments and retirement planning at soldier one earlier. As far as money's concerned everybody goes to heaven with the same amount of it the other. One of the others is money relative. At the more money you get the more relative Judea. And so one as they were and where you want the address. The is saying it it's things that. A lot of talent we have to counsel against. Parents who love their children's Manning all their retirement savings for their kids college education so their kids can get a job Starbucks and they're both broke. And so there's a lot of things that we help wit. But as far as going back to this claim a fake news what's worrying me is now an act but believe me. When trouble is elected I had a sigh of relief you know for a lot of reasons but it wasn't necessarily economically. And everybody's telling NASA look at how things Dumars who knew really well over the next four years you know. And there there has some confirmation on biased there cause they wanted to do well because they're excited about from being president. The seven top money managers the United States starting on number seven point two number ones JPMorgan Ali ounce fidelity State Street UBS vanguard in black rock. Would you like to know what the CEO of black rock is saying about what he. Does he want you to invest in the market yes he's the number one asset manager company in the world he manages that company. And here's what he's saying this is from Reuters. Black rock chief executive Larry Fink on Wednesday said the US economy is in the midst of a slowdown in financial markets could see a significant set back. But calls and uncertainty over global trade. And trumps administration plan to cut taxes I see a lot of dark shadows he said in a event hosted by Yahoo! the markets are probably ahead of them sales. Fake whose company manages five point one trillion in assets said investors are caught up in the potential for a restructuring of US tax policy which might not take place until 2000 maintained that disruptions to trade or a possibility in the meantime he said. US president Donald Trump has called for tax cuts he says were leaving in about polar world right now. I think is the latest major figure to call for a dose of caution after trumps election touched off a rally in US stocks. Bond investors Gerri. Now is have probably enlarged and Bill Gross are among those who have said the same thing in recent weeks and he goes on down he said. He warned that there could be tension between the fans dollar boosting policies and trumps as a stronger dollar could make it harder to read about it export. Dependent manufacturers he goes on and he say is in marked. And mark and his men's. This is what happens when you read from your I oh yeah yeah. He said. He said that in Iraq conversation this is fame whose the war hit in the world's largest asset manager company black Barack. He said in my conversation with CEOs in Europe and CEOs and use United States. They may be very bullish. But why. But what may come but. Most businesses are not investing today. You know there's a difference between hoping that we're gonna get some of these things straightened out or whether you should be in the market. He goes on to say insure. After focusing exclusively on the potential upside from the trough agenda with the ever passing day that noting tangible. Materializes. The market optimism is fading to the realization that very little if anything he's changed right now. You know it would be terrible if trop. We didn't miracles over the next eight years and you lost your half your life savings in the second year of his administration. All right because of the market corrected. That doesn't have to happen you could lock in the gains that you've had the last eight years. You could make a reasonable rates going forward protected for inflation have an income that you K now live with them for. That would keep government talk a little bit don't talk about some and now inflation numbers. But in order to do that you can't just be passive and let this happen to you got to be proactive. Give us a call 180687676. Say. Look this up on the way had a common sense retirement planning dot com or CS RP dot input. Oh yeah and just quick promo in next half hour the leveling charming Laura Crawford is going to talk to you about some. Something that confuses the deacons animist people which is required minimum distributions are and he's no less she's she's got some great stuff to. And all of that let me give you just quick insight didn't sell. Donald Trump and this is saluting sort of what to what you're talking afterward be it has inherited truly the worst economy since World War II. We doubled our dad. We have never seen GDP over one point 7%. In in the world this number so make it came believe that it is a true number. As of the ended last quarter 2016 meters 324%. Debt to GDP ratio in the world that is. Near the use it to be an ev. So. We are in a situation now. Where. Is going to take quite a long time before we ever hope to return with three to 4% annual GDP yes he is. Trump's plans if he can get them done. If he's not opposed to ever here here's a word picture here's Donald Trump he is elected president walks up the front door. Then and this car which is our country's rolling backwards down a hill. He runs and gets behind the car his job is to stop it from Merlin backwards first. Is start pushing the death they'll get into the top they'll and hopefully it goes and the design star speaking at a speed. As our economy. What he's doing this with people standing on both sides car beaten in mistakes throwing rocks and in us and had him. Dynasty. Of the conditions under which he's going to have to to turn things around so. This is not going to happen quickly and I believe in sodas. Larry Fink and many the other people we talk about the we're going to see a major correction because the market is not. Built on fundamentals. What's gone on on the market he's been the result of Federal Reserve manipulation. And he's made a handful of people very rich at the top. And some people finally gotten back to where they were after the crash and all money they lost back and away and these are the people there and get slammed again if unlike do you help. They don't common locked in what they have we will show you had a lock it all that great game you got don't leave it sitting out there a risk now. Coming in and CS and let us put a floor underneath you zero show you how you can get good returns a market score up and not lose when it goes down. Create an income for Koppel for life pass it on to your kids. Whatever's left over be decent way to returning raises in your retirement keep up with inflation. You've got to do something about the X. Now is the time seat is RP dot info. Go there make an appointment. Please come and sees. As sick a round of Laura will be back on the us and with a little bit about required minimum distribution. Welcome back to common sense retirement planning this is Phillip island. With Tony dale. And mind Tony is my business partner and good free and it is so wonderful to be in business with someone who has your back. And Tony has proven over and over again and I hope I have the same for him that. Or true friends main you don't he can count you can capture true friends probably on one hand if you're lucky. And is so wonderful to work with dear friend now Tony necessarily Tony stayed with me while one time and non answer the British roommate sometimes goes you know there's like Patton. You know you don't be a roommate normally it starts flying he got elected and they cast versions that note. I just does that ease to him composing songs and that can the thing. It's hard for someone wanted to. I'll always opt. How we would like to his saying and I can think I have absolutely no talent I don't have any year for musings on I'm jealous I. OK so I gotta say this so I I was abused I was leading praise and worship in my church on Sunday. In the foreign saying we're getting this word on what you think about this when it comes to singing. We've all gone too. Programs where our child or are greens here are niece or nephew singing in some little programming and man they seeing and they sound so good. Do you when in fact they probably can't sing worth a flip but they're your kid and they sound really good maybe other people don't think so. Well. We are God's kids. And all he wants to do is hear you saying. He respects as when we work but he loves to your dressing and and so it next time you feel like singing. You go Cink has because you're singing to him not to anybody else anyway and have fun. Well. Odds of there really appreciated many males around mere lack of. On the the it's a it's a wonderful thing to get richer sometimes view eight years or refreshed renewed church you need to make that have been in your line of kid this week Ian madam. Last weekend my pastor speaking on faith and he said just a simple thing that I need you. Mean you know nonetheless and where Jesus told his samples were gonna get in the boat we're gonna go across the ocean and we're going to go to the other side. And that's what he said they were going today and then they gotten about legislate well they got in the middle of the ocean. And there was a big storm. And they were scared to death and they woke him up and Jesus stood up and rebuke to win and I heard 1000 the wing and remembered the voice to pay created it well and there ends the inning and he stopped the wind. But she said all they need to remember was Jesus didn't say we're gonna get the vote go halfway across the storm were all our ground you know he said we're going to the other side in if they had the faith to believe what Jesus say they would have had so much fear. We try to reduce the people's financial fear in retirement of Rory relationship when Jesus Christ if you understand it. You talk about reducing fear. Deal not have to fear anything else as long as you live. Well. One of the things in retirement that is a a good thing is when you reach when you're seventy and a half. With your IRA the government has said Lou we completely achieve get ballot not paying any taxes on this account but now. You do and Laura's got some. Updates on everything you need to know about required minimum distribution. This article. Earlier in the week actually on Monday and the Wall Street Journal and I found it very interesting. It was also written by a Laura but Laura Saunders so I that kind of cop and I that anyway. This isn't very calming question and that we get Daley did does create lots of confusion is Tony indicated. And if you're one that may mean Americans with the retirement account. The three most important letters in your financial life might be this. R&D. Now what is that. That is called a required minimum distribution. Which is now something that the nation's baby boomers are needing to grapple with for the first time. And they must take down some money out of their can't count. The first of the baby boomers. Which were born in the mid Ford in 1946 through 1964. Just now starting to hit the ages seventy to have mr. Tony Taylor overhear him. Where and most will be required pull out money that there is and there is an exception only exception would be is if you are still working you do not have the pull money out of your for a winning key out. For a one K account. But that's neat that's the only exception so what are you send Indian Hansel important. And. Plaza had to be saying Nina I don't ever tries to make Ellen that's what it a week you know why why is it that we you're gonna count on this and I'm stealing your Thunder Bay. Because it's a 50% fine if you forget it or how convenient listed in the middle of the year make it really hard from the yes yes. While bloody bureaucrats I tell you in that that it. Well it in you probably wonder why this is even required well if you think about it and we'll alluded to this earlier. You have been able to save with all of these town benefits and you haven't been paying taxes on this account. Would guess what they want their taxes. So that's why all of a sudden this seven round this not all of a sudden that is have any and a half their warning due to start taking money. An aide is mandatory. Now the amount of the withdrawal is pretty much standard in it does vary somewhat related to your age and how much money's and there are of course. But and in essence it's it's a good figure to go off of this three point 6%. Com and it's supposed to not be large enough to actually in DD camp however we have seen that happen when you are in a market downturn in you're losing money and they at a camp. And having to take R&D so that's not entirely true all the time. And you wonder how he figured that. To figure out what you're required minimum distribution is com. Generally is handled by where your money is acts they would do this calculation for you enabling you. Com know about that which we do is part of our job yes. So am. N. Now add another comment question is is yeah okay now I have to take this money out how much taxes and Mike and have to pay. Well it's based upon your income tax rates so. And it varies by individual bit. You pay eight your ordinary income tax rate in anywhere from 15202530. You know so on so for sewed your tax professional conflicting that. And it's according to win you wanna take the withdrawal you can take it towards and the year you can take it in monthly distributions. And you can do all kinds or varieties have that. And then of course the most interesting thing that mr. Tony was telling us about is if you do not take this withdrawal. You will be. Penalized BD percent. However according to this article dead CPU discovery made a mistake he knew hurry aping you take this withdrawal uniquely forgiveness from higher as a lot of times and will. Forgive me the first time but from then on out you need to make sure that you do that. Well I would tell you doing you know this too could you talk to them both of you. And we've had people come in the door to see us the first time and restarted again and there's that sure enough. You discover they have not taken arm these for two or three years sometimes and they're just like quiet you're kidding me. Well and these are people I have to say bumps who had advisors. They know they didn't ever tell them. But so so this is an important part of of of what you do is making sure you know that stuff so that's that's that's good information but as I mean two week. We won't tell you. That you have to take harmonies and give you configure an amateur and me. Tony. You know. Don't you see so many times when people are taking our Indies the reason they're just taking the R&B is not because. They could use more money they're taking the RMD because they're so afraid about leaving the money. You know and so they say I just not I hate to take the R&D I don't want taking anything that they couldn't have. Enjoy a cruise or go to the holy land or help the grange you ordered. They're afraid of running out of money so they wanna take the very minimum. They can. And they don't realize on. TSA on me and are frozen figure 34 point six you know that's 34600. They don't realize that it is set upright they could probably take out maybe 50000 a year. And have that insured for the rest of their life and their wife's life and they can't outlive it yeah you know but they bit but their hope that their pad at the end of this we wanna take out so just barely enough. And I as and so don't you wanna go on making it was I don't run out well. That kind of thing can be addressed and we do it all the time but you have to find out all the ways. How I'd like to take my power India out in a little bit more. And make in guarantee a 100% chance that many or my wife cannot outlive it. Plus have raises for inflation that's the way to take an RMD out so if you're getting close to seventy and a half. In won't know the best way to take your RE ND plus. Plus a lot of things. Give us a call 1806876768180687676. Say. CS RP dot info. Well think about for example we've talked fell open and Laura about. However 4% rule does not work if you happen to go through a period of declining market cycles. So I just happen in 2002008. Well what would be the only difference here instead of taking four you're taking three point 6%. So as you pointed out rightly are. If you are taking your required minimum distribution and we go through it to another 2008. For example. Not only have you withdrawn this three point 6% or whatever the amount is. But you've also sustained whatever losses which are irrevocable loss as you cannot be one not be able to make those up at all nor the withdrawals. What Phillips talking demand is there a way. To create. A guaranteed income that would we're number one satisfying. Your own RMD. Would that would be taken care of and in most cases gives you give you switch sometimes it's a substantially larger amount. So the difference is if if all you're doing is taking withdrawals from your RMD. There is a very real possibility that you could completely. Go through your entire principle all your life savings between losses and your arm peace can be just could put on. And you're still hang around at this point. What we can show you what you do not like that word RMD plus is pretty good. We can show you a call from his call armed these plus which essentially means we can show you ways said this into a guaranteed income stream. There will be spinning off more than you're required to take. And every time we seed good year in returns in the market. We get a raise by however much that is so now we have. Not only an incumbent in increasing income potential and this for two people you pass it goes to your spouse is keep score on for them. And when they pass whatever lessons account goes to your ears and that is part of what. Common sense of Tara planning Hingis twos is is help him. Can't council on what's been the most tax efficient way to take that when they receive it is a beneficiary. So listen there are. This is confusing stuff. And it's easy to forget about these things but you are not in this thing this alone. Do you think for a minute that the Clemson Tigers. Without Davos Sweeney same bunch of guys could have gone out on the field. And won a national championship of that memo Sweeney is their coach know. And I have to tell you wouldn't know ice is Smart as you may be as Smart as you may think you are. You're not as well versed in these. Arcane things that we do. Asia may think I have. Block doctors law years professors. But bunches assume people who are way smarter than me what every their skills cities. Who've entrusted us with. Well frankly we have several hundred million dollars under management and it comes as retirement plan that's people who've trusted us. To be their coach. Because they understand the risks involved I don't think a lot of people out there and do it there are some serious frisked now. And we can show you how to build. A walk. Around your life savings we will be safe no illegal aliens getting into steal it. 84 lumber and made me so man in the Super Bowl I wanted to speak it I wanna call 84 lumber our column of a say. Are you think who do you think my slumber I'm sorry I'm going to talk show host it just it's would have to offer body met in this what's happened. Somebody save me Phelps. All right I'll save you things you should be concerned about besides illegal aliens and 84 lumber. The I am. We're in the process of building a house from the first time from scratch and you know I appreciate the people bill in the house. A lot of these people have been here for years there's some of the hardest working people in the world just like the immigrants the Irish in the Italians and all and that. You know this country has never been against illegal immigration. And you know it is pain and this is. The Bible talks about professing themselves to be wise they became fools in so in these cities there. I'm new mess they made Tony in the EC the last thing Obama did was he was. Bringing court action against a CD who didn't wanna make illegal aliens allowed him to be in law enforcement. You know and when you hear something as a absurd is that that's the truth that's not fake need now best entries you realize that people have become those. But. What I see is traditional. Investment planning fall short in retirement planning one thing is. Risk tolerance questionnaires. IE IEC lobbed a risk tolerance questionnaire they set up my. Financial plan are Carroll plan because I took a risk tolerance questionnaire. And I have an article here and water is that you likely filled satirist tolerance questionnaire before you open your investment. But that questionnaire which probably labeled you as an aggressive moderate or conservative investors more about protecting your advisor than helping news. Goes on assays in that typical risk tolerance questionnaire she's about the industry are worse than useless. And Tony was talking about biases and all the it talks about he said. Whether or not you like to drive fast and that's that's cast that they ask you are jump off clay yes. Has nothing to do with your investment risk tolerance he said. The person's actual capacity to take on financial risk. That depends on income wealth and investment horizon none of which are dependent on emotional or behave Rio biases. And they says some in Manny said another issue. Risk tolerance questionnaire measure wrist dollars based on hypothetical wrist an actual Aureus. Sounds like what does that mean he has honestly saying you can tolerate a 20% loss is quite different from actually losing 20% your nest day I don't know it's easy to go through risk tolerance that well if you Marcus down 20% you know with that let's say achieve. And a lot of times you'll say well I and then not I could handle land. And when you realize that. You've just lost 20% what is that five years of your life that you save them money is now gone. You know and in retirement when your pulling money out that may never come back and so they use these risk cars questionnaires. I believe. In order to just like when I was naive in Iraq and Iran and carve out a seatbelt I didn't realize the risk I was taking. Look I've seen some of the crashes were people that Nancy males I sing some of the people who went broken retirement passing. Lots of people and it's not a pretty sight and when you're relying on things that just make you feel good to have no. Basis in reality to help risk tolerance questionnaire to do not key piece say they encourage you to take inordinate risk. And then I say. Others other things but we'll get into that and a man by. I just I wanted just to support China in -- talking about it a quick story because it's so relates I just had this picture when I was living in New Zealand. I was working out of this boxing gym and I was kind of helping train these fighters and there's this guy. They had a tough member tough man contests during this one guy and he really. Was just kind just get the hang in this fighting staff and music nobody was a big old strip and to me. He just was bound and determined he was going to be in the tough man contest I try to talk him out of habit that but he denies fast okay dear I'll work your corner and I try to work with him a little teaching some from whatever it. So we got. And he's G us. Dave man he's gonna go and he had just enough confidence in the had just enough information to climb in the ring with this guy. That beat him like a step child. End. And I I tried my best to warn him I said there's a YouTube he's still a more risk involved climbing in this ring and you really never been in actual crime ring in being released. Match before you know it. I think he can understand that you don't know what she may come come up again. And man I'm check this out that actually had to say next. So I'm just. It is no different they are shown much information after trying to give you false confidence right now all the markets up and I would ask you. If the market he's reached the top. And if the goal and investing is to by law old. And sell high and the market is as an all time high eight and we know that markets are cyclical what are you thinking. Now would probably believed to be the best time to his Kenny Rogers said in the song. No window Holden and know when to fold them know when to walk way. Yeah you're right and and and walkway to. Walk. Away to some security like it's one thing to be 3040 years old. And you can take some risk and loose in my and you get time. Off turn seventy this year. I would tell you timely shorter skirt as time goes on hooked he he's a non renewable resource. In ways you approach retirement Ager god forbid you're in retirement age. And we go through a major correction. And you're just sitting there in your typical stock bond portfolio. In your catcher risk question years Philip was talking about you don't you say I was a should be moderately conservative here so I was is doing what they. Anyway. And you start taken income and you start losing money at the same time. Now Liu Justine in the world of on time to own machine groomed shall return in Mariska. You probably never heard of it is actually one of the most dangerous things you'll face retirement most people every powers seek when sobering tour and risk. What that means news. And I'll give you an example actually give you I'll give you some numbers real numbers are based on the S&P. So here you go you get these two Brothers one of them retires in 1990. With half a million dollars and desire a the end when retires in 2000 with half a million dollars and he's diary they both decide to take the same amount of money. 30000 dollars a year. Based on the rates of return for that period of time. The first brother retired in 1990 retired and the biggest asset bubble in history in this country. He would have taken all incoming head over one point two million dollar in his bank account. After taking 30000 a year for ten years. The other brother to all he did was this retire juniors later in 2000 well who first thing happening him. Mister tech stock crash so he's taken his thirty grand he's taken his income things you can and then little ways down the road Lucent and LA cops out. At the end of his. Junior period he had a 156000. And change it Israeli withdrawal. That's about five more years of income and then he would he's gone he's toast and it's over for Nikko. That does not have to happen but it is going to happen to a great many Americans who were taking the advice of Wall Street in just taken withdrawals. And Neiman hoping that the market does well we know. Protection whatsoever. So you know they say don't have unprotected sex well don't have unprotected investing. You. I you need to come led a show you have to be safe with this stuff. As they Wheatley it's not a game anymore it's from the world out there is getting more volatile and uncertain. By the minute I'm largest ever regain shaken his hat who had ever thought. Well. You can look back in history and read stuff that happened there and at the time people were saying who would have ever thought of depression like this could have occurred. Who would have ever thought war war to happen and there were well. I'm telling you quoting a lot smarter people meet their stuff coming down the road you can't even imagine yet. Now's the time to lock in your life savings com to see yes. Common sense retirement planning. Dot in folksy is RP dot info. CSR PI info please come cease now. Or overpower us for the Wall Street Journal and USA today on retirement issues has been our big article. This is how much do you need in retirement he says more than you think. Sid don't shoot the researchers are new study indicates that those saving for retirement will need dramatic will need to dramatically increase the percentage they save. If they want to fund their desired standard of living in retirement and he's just talking about 22 particular things one he has. Low future investment returns. You realize that we bed many people believe the stock market including Bogle of vanguard. Believe that the market is not gonna return what is done in the past even though your 401K projection using numbers from the past. The people who own main guard. Don't believe that those are realistic. And the fact is as the baby boomers are all pulling their money out of the market we may have Lou returned. But he's also talking about two other things is that retirees are living longer. And the fact that the interest rates are so low and you can't get a decent rate return in safe investments and I'm here to tell you that you going to be even worse if you leave the money in the risky ones. But listen this fact the researchers calculated that the price of a dollar a safe in come for a person retiring today. Is the cost that it is nearly a 100% higher or twice as high today that it was for a person retiring in 2000. Because of increases in longevity. And declines in the real bond in the real interest rates. Not only are investors getting less return on their safe investments. There are also living along vs the need to fund. More years of spending the bottom line is that retirement is just more expensive today than it was ten years ago. And those are the kind of things you've got to take into consideration. In a properly structured. Retirement plan. We've got to take and consider inflation. The he still have we had much inflation. Another article talking about coral retirees it says that. The second issue is how the Consumer Price Index measures inflation. It is an incentive that the prices of the things we won't are going down while the prices of things we need are going. The elderly TN not to be big buyers a technology edge is durable goods out of autos and so on these have fallen in price over the years. That is reflected in the CPI on the other side. Of the pricing ledger healthcare housing food and energy the things we can't do without. And we generally have to concern at all seeing significant price increases. That's the inflation rate for those retirement is is higher than is reflected in the CPI. While I'm telling you is a lot of these projections in fancy programs are not. Giving you the true picture there fake news. So listen there are a myriad. Reasons for you to come see us but probably the most important one is you do not want to retire. And spend your entire. Retirement worrying. About running out of money. That is no way to link that and it isn't necessary. Because we won't help you craft a plan that work for you. Guarantee an income for you and a spouse for the rest your lives I don't care field to be honoring her more. Give you a shot at giving raises to help you stay ahead than inflation Philip was talking about every time we get game and whatever celestial passing there's a death benefit you can pass on your year's tax efficiently. That is one of the many things to comments into retirement planning team will help you address but you need to be proactive police. Today. Go to common sense retirement planning doc commerce CS RP dot info. God bless you.