Mar 11, 2017|
Common Sense Retirement Planning
Automatically Generated Transcript (may not be 100% accurate)
Good morning. And welcome to common sense retirement planning. For the next hour we will be taking control of your radio. This is the CIV. I say that jokingly California Tony deal here is my friend Phil ballot and Rebecca can Qaeda and our common since retirement planning team after a week when we discover. That the CIA has been. Bugging in collecting information from pretty much everybody breathing. In the United States. I'm glad to garments look now former you know I know I feel so much better I feel like I'm living in 1984. But at any rate. We we're we will talk about retirement planning since of course we are the State's regional retirement planners but I have to tell you. I feel like I'm living in the outer limits right now with what I'm washing going on in the world and many of the things going on in this world and particularly in what is coming in the upcoming week and we're gonna talk all about it later. But the ides of march march the fifteenth. Could prove to be a watershed. Date. This week's we'll talk about it now if you had not listened to the show before as I mentioned. We have State's original retirement planners we've been doing the show for bashed him almost eleven years and and that we. Are after one goal. You or. Peace of mind. We want you not be living. In fear. Anxiety. In your latter years which can run out of money so everything we do is about retirement planning not in this meant planning. We wanna take the risk out of things as a first thing we do some harassment at this week. In his shoes seventy year old woman she she she said with a one thing I can and I just don't want any risk as who have been you can write plays does that the first thing we do. We believe in Warren Buffett's rules of investing which are. Rule number one never lose money and rule number two. Don't forget the number 12 that's kind of our form part of our philosophy the other part is we don't you run out of income. In your latter years fact we wanna see your income Grohl in your later years so that's attack plans week. We put together. Now we also do what we do to capital investment group member of Finneran said I think we have securities licenses and and now it for that reason we don't really want you to take something we say is actionable. Don't run out and make some broad sweeping change in which are doing because. Of something we said. And it is also why we offer complimentary free consultation you can come sit down with us well. Ask the questions aren't about you and try to come up with what we feel is the most suitable thing for you and the plan together that that would help you achieve what you. We also. Believe it's the greatest source of wisdom on the planet. Is the Bible. And for that reason only start to show something Bible. Today on region familiar verse from proverbs 1022. It says the blessing of the lord makes us truly rich. And he adds no sorrow to it. A little bit and and nabbed in light of what is going on. In the world today. I'm on Regis something the main selling it hasn't on I should do with with money your economics. It's Isaiah 4110. Don't be afraid. For I am with you don't be discouraged. Or I in your god. I will strength and you help. I will hold you up with my victorious right hand. And men with what's going on in the world in this. Flat out works underground coup in Washington trying to take down our duly elected president. In this battle between the right. Chess and he left. Behind this spiritual battle. Don't lose sight of who's in charge in this entire operation. So there are a lot of risk factors that there is so funny people come to us and LB. All excited about arm like cash look at the market and you know look generate returns and we did in and so forth well. There're a lot of types of risk that there but one of the risks after that I don't think many people are paying attention to is it is a big. And I ran across and we we've addressed this on the show and I ran across two really good piece from Charles Hugh Smith. Entitled the next domino to fall. Unless the Federal Reserve intends to buy up every dead and dying Mall of America and this is one crisis that the Fed cannot bail out with a few digital keystrokes. Planning to win the next four by assuming it will be a copy of the last conflict is an excellent strategy. For losing the next war. That same holds true for the next financial crisis. Reckoning that it will be a repeat of 2008. Is an excellent way to be caught completely off guard. Is the next global financial meltdown won't start in the subprime mortgage sector. Which had been wiped out written down passed on. The next crisis also want arise in the money center banks because central banks have figured out how to bail out the banks. In overbuilt the banking balance sheet by stripping hundreds of billions of dollars of interest from savers. No. Here's a question what if the next domino to fall is in the bank what. If it's a quote safe high yield asset held by institutional owners such as pension funds. What if it's real estate investment trusts. What if the next crisis. Isn't a spot of bother caused by excessive leverage but a systemic collapse of collateral. As an entire sector. Retailers holding millions of square feet of bricks and mortar space suddenly fall off a cliff. And you look at the list. Of retail closures. In recent months. Some due to bankruptcy others due to downsizing others claim to be downsizing there actually an initial stages of liquidation. And then you talk about an overvalued markets set up for a fall. It isn't just malls becoming empty retail wasteland to its corporate America shifting to flex war work at home slashing the need for. Four and an after four costly business park office space so here's the problem. Commercial real estate is grossly overbuilt in retail and office space. You combine sky high valuations. With crater ring demand and billions in short tomb CRE loans. There's commercial we listing. Commercial leasing loans that must be rolled over into new loans. And we won't have a liquidity crisis we will have a collateral. Crisis because the assets supporting the dead. Are no longer worth the loan balance. So unless the Federal Reserve intends to buy up every dead and dying mall in America. This is one crisis that the Fed cannot bail out with a few digital keystrokes. So I want you to listen closely to this because there are a lot of investment and advisory at their they have been pushing. Reits real estate investment trust and one of the problems with suites there there are numerous from fact I've I'm going to defer to my friend Philip coups. Even more astute and I am on the reads. Well. A very astute comment on Marines would be very very careful. One problem is there illiquid in many cases. And even if you see the writing on the wall became future many out without. Severe penalties. That's not that's not a good thing. But. You know it common sense retirement planning Tony and I and the team. We believe in certain cases that if you. Won't a safe investment that a certain types very specific types. I'm not real estate investment trust that mutual funds that are made up of real estate investment trust because that usually the liquidity. Are good option. But like Tony said things that you've got to consider what is the loan to value on the east things we need to make sure that the long delay was below. You know that they owe no more than 20% on average on these buildings and to do that you've got to get into kind of trophy real estate. You know. Institutional. Load leveraged. Private equity trophy real estate and you've got to do it in the right way and if you do you view if you handle real estate investment trust in a bad way. You can really be hurt the same thing with junk bonds a lot of you are saying man my bond corporal Jeff got this now what is yours Carl Lewis the there you know I said John Basel I mean John bonds what I've got his investment grade bonds high yield high yield bonds ball all those are junk bonds. Hand out. You know every. Where UV and just an idea said are you getting paid for the risk taken your parents probably talked. Use some basic life lessons look both ways before you cross the street curb your mouth when you golf. Don't buy high yield debt securities when yield spread between them and traders is too low or right now the yield sprayer is to load. Just as the stock market's price to earning ratio can be a warning signs that soak in the yield spread on junk bonds and right now. That sign is flashing rated and so. A lot of times what we do this when you coming and we wanted to ask say where your money is invested because. Investment grade bond sounds pretty safe doesn't like Phoenix that's semifinal on his faith based investment grade bond high yield bond. He's about one by Jon bond it's the same thing semantics can be tricky yes it is and so when you come in and that's why you don't have an end. Someone advising on your retirement does not securities license because they need to me. You know we preferred. Principal protected products that kind of thing sort like Quigley down under you know at the end of the movie. He shot the guy with a pistol but tells the whole movie he had been saying he preferred he has long rifle. Well he shot him all the best only tell the guys that didn't say they know how to use them so I didn't prefer them. And so Tony and I am Rebecca and detained here comes of Darwin like things with prince will guarantees we like lifetime in Cannes with there's a time. For mutual funds. Real estate investment trust mutual funds. And we want to explain you we have to know about we have to be securities license to show you. Where the risk he has and that's why we have to look at your particular situation but we live in extremely. Risky times on this thing and would look I got some other articles here there's just amazing at the that the potential risk people are taking. But you have to know that your at the tap somewhere near the top of a market. Do you really want to go to another 2001 and two or 2000 native you'd like to see all the ways to be safe with your money. You give us a call at 180687676. Say. Early this of on the way at CE SRP dot info. I think what you are leading to his I guess having someone do semis. Some internal dialogue about what their plan looks like in it it is bear proof. Every talk about that shaggy talked about the cool Herbie in bear proof of that was a great analogy. Is issuer investment plan is your retirement income plan they are proof something else to consider you're talking about junk bonds and ray asked. Another thing to think about is long jedi in retirement this is an article in the Wall Street Journal on there was published on March the sixth. On the and basically what is talking about is a right way to look at long. It talks about how retirees and an I don't know if you experience this but when I have a couple command to see me. One of them usually they golly sakes are gonna kick out at any minute. I don't know what it is but he's like I just don't need a dollar and my dad died young my mom died young. Donors people ironically enough end up living a longer. Don't know why they just happen to live longer operated Sanford was like that and there he. Well that's not on yes I'm the only way you're too young. And a bear proof he okay. Said Omer look at it this as far as people making that there and die you have to be prepared for is that. If it comes up that you are live along Tom. I and it talks about positioning assets and such a way to where you cover your basic living expenses with guaranteed money and then you have a discretionary fund. But she wanna be careful with the discretionary funds has kind of what Phillip was alluding to. We believe that if you had your basic living expenses covered by guaranteed in com. And you have a risk portfolio added that if it pays off hallelujah but if that doesn't. It's not disrupting the apple cart there is also no major every day life. So the difference is they shifted thinking is is when people think it discretionary income before they retire. That discretionary piece of it actually becomes quite necessary an actual retirement. And the overall they admit it I keep keep doing these fun things in retirement it's not worth it to retire and man does he not have a point there with Alan. Really so here's we do we'd love for you come. Saddam loyalists and and let us listen to you I really think. The most important things we do is just listen ask questions and can listen. Because everybody has their own story in their own concerns and make anyone's somebody care we do care. So if you'd like to know more about that is Phillips and go to CS RP dot info. There was a and any interesting commentary I mention this or short of tees and little earlier the ides of march this coming up. So. The ides of march are going to be interest and I'm worried about mark march 5 march 5 saint not the ads and I was hurt and I said yeah did. So on March 15 sorry I'm just take the I know your. Not tough crowd ears and neighbors say here's why here's why I keep saying this march 15 I had to Marcello. You call that Obama and John Boehner of cozy yet. And agreed to suspend the federal debt ceiling for a year remember that one year ago march 15. This year in March 15 after that date. The treasury will instantly surpass its cumulative Lee twenty trillion borrowing authority the debt ceiling. So. With just a days left. As we talk. Treasury's balance sheet is now plummeted 209. Billion. Making this a very scary time. And also there is a large withdrawal of cash in hand is continuing from the IRS says there's things begin to send out. They're tax refunds. To what people are missing here is date march 15. It is the data debt ceiling holiday there Obama and Boehner put together. Eons. They see in the freezer twenty trillion it will be in the law and it will be hard to stop and the treasury will have roughly. Only 200 billion. In cash. Which we are burning at 75 billion a month now so my summer they will be out of cash. So we will have the mother of all that ceilings. Two other events are also occurring on that day it is widely expected to Janet Yellen on March the fifteenth is going to raise interest rates yet again. And many believe that is going to be the start of a sequence of interest rate rises over the next year or more. And there's one other event that may not sound like a big deal here but it is a big deal. Kirk wilder who is running for president in in the Netherlands. We're gonna find out on the fifteenth if he gets he gets elected he's a trump polite guy he's a populist. And that would be another domino falling in Europe. And taking them away from the EU in the longer term which could have a profound effect on markets now all of these things. Could add a stunningly. Profound effect on new. If you are in your typical. Total return stock and bond portfolio which you probably are. In your 401K. Or your happy little advisors put you in this staying in with a much of as good ol'. Investment grade bonds and those real safe equities. You know what they're happy I don't mean interject she used to eat eat it happier here at mile Mazur. You know they're happy Tony nice people. In you have to appreciate Barry near this nice people in retirement or looking for guaranteed income we agree we read that we've studied it we all agree with that. But what ends up happening is is that advisor at these wire house firm is keeping it quiet it's fully invested. They are actually. Ironically enough per outing themselves with guaranteed income because and money and are about yeah yeah they are as say they use. Ella it with your investment plan. 81% of you have are providing. You're funny to a browser with guaranteed monthly income. Which is what you really need for yourself which is what week will show you have to do. And hide I wanna mention just one other thing and that is. What when you get to a market top floor we have been studied. In depth. The history of market bubbles is one of the one of the things that got me interested in this entire industry because I'm history net. One of the traditional signs of a market top is when you get individual investors succumbing to lower this apparently easy money in they'd start pouring all their life savings in the stock market. Well that's exactly what's happening investors poured almost 63 billion in the exchange traded funds or February. So that pushes the year to date tallied 224. Billion that's the part faster start in history. Any TS. So the question why is that a sign of a market top. Because small investors tend to trade on emotion. Rather than logic core expertise. So. What happens is it takes a long time to get the pain and the last bear market. And so they avoid the early stages of recovery near deer Kaz did they wait and they wait and they wait so always happen and you are not gonna give back and when they finally conclude that there's money to be made. They're the last ones to the party. And that's why individual investors. Our only the second dumbest money because governments. Are even less astute in more emotional than individuals and they plunge in the equities. And they've been doing that Japan's switch on other nations. So in the next downturn. The failure in the European central banker wanna find interest rates too low for the big further cuts. While they supplied bombs and the long. Term potential is force something. That could be. The magnitude far greater than 2008. Because we in this nation have as I said earlier created twenty trillion engine torque when he won now and the debt ceiling scamming on the fifteenth. And then here's the bottom line the bottom line is York. Bottom line what is your bottom line your income. What would happen. If you're taking I'll give you a perfect example and this has happened do we know clients we have clients has happened to you. Remember the tech stock crash. S appeals 47%. So let's say you retired in 2000 and you went through 2000 to 2003. And let's just say your portfolio portfolio rather lost 30% and you do what you were told to do which is taking 4% withdrawal rate. So what is that 12% plus 30% that's. Three years Columbine you've lost 42%. Of your entire life savings as money you would never get back. Ever that would not at BC well so well. We foresee another event like this and it could be the death and hell. For your life savings in Europe income in your latter years dad does not have to happen we will show you way. To secure your life savings. With a zero stop loss built into market could go to make 8015 you would lose zero how ever. The markets are going up and boy we had some doozies we've had some groups Emanuel reviews here of late and boy we have. At some fun yeah it has been far from happy people. Are so we make money when markets go up. Some pretty good decent rates reasonable rates a return. We lose none of it because we Lockett in annual reset every year and but most importantly. One of these days just what we're back was talking about. Guaranteed. Income for life for two people. And raises every time we get those bumps and upper movements in the market. And when you pass away the money passes on the most tax efficiently you're Ayers. That my friend is what you call retirement planning as opposed to investment planning a common cents is retirement a constant there early to tell you clever bunny so anyway. What we'd love to do receipt you actually. In our office. Porphyry. And that's a deal so good coated common since our website which you see is RP. Dot info with CS RP dot info. Got an article out of MarketWatch must show on Lang yes. The dangers lurking within the most deceptive stock market chart. And it just shows the stock market chart that shows all the ups of the market over the years India and all the drops. Of the markets over the years. And he he starts as says in theory. The buy and hold approach is the surest way to make your retirement dreams come true. The market goes up over time always has always will well. I don't have time to do this justice on women do it when I get back. But I've also got an article here in this is quick march re packed god to reach a 100%. And has shown and spoken about the ads of march and that may be part of it look. You need to be careful with your money. You wanna be careful with your money then you give us a call 180687676. A 180687676. Say. He can look at some in the way of commons and retirement planning dot com. Or CS RP dot info either way you have to be proactive about this and find out all the ways to keep your money safe. Tony myself the entire common sense retirement team would like to show you. Away for peace of mind in retirement. Will be back after the break god bless you. Welcome back to common century karma planning this is Phillip island with Tony dale and Rebecca Kincaid the newest member of the commons and retirement team. Sixteen years experience in the financial industry holding I don't wanna age and others the older and deeper into it and 36 years old so goofy you she put herself through college in the securities industry. And the financial services industry so it was quite a two for her to come on board and work with us. She came from brand park in his office he's never forgiven me for that. Guesses as and it was a recently and we had a good time together. Hey everybody's thinking about taxes these days and so I saw an article ten most immense tax deductions. And so what's interesting about it is I'd never thought of a lot of the east but they're kind of interest and first of all casualty. Disaster and theft losses so you can ask I guess I'm gonna go into the how you can deduct Omar it was a credit and things like that I just want you to be aware. So you can bring it up to your tax prepare you know theft losses asked. So what is essence can how you felt after the 2008 crash with your brokerage account. He can't write that one of the NB day hits I guess if you who loaned money out you know. Make sure you know you know if you loan money your relatives are not gonna pay you back would make sure you get in or adding to you Matt we will get a tax deduction for it. Job search expenses in the same industry. Okay so. Serious you know maybe his lack in Michelin looking around sleep is a better job in the plan or something you know I don't know until he's already Goodyear yeah. Margin account interest expands. Well. Need to be careful about their margin accounts. There's some wasted a debt jury pay him or did did did have a tax advantage when jury a number five breast pumps and lactation supplies. And I get and the panel that things are expensive I'm hoping you're writing off they do well I'd have a need for anymore but you can bet that day at black hat. I'm Galen says stay focused I've gained later in the year momentum here anyway. Contact I did they get their to be at their college and get a map promise contact Leah. Uses eyeglasses and hearing the masses. Fees for childbirth classes and certain fertility treatments. Smoking cessation programs. Through an okay. You know I thought about taking a a smoking cessation program. I don't smoke but you know I'm just want to do something that I know almost exceed it. They yeah. And the last thing is you could and he ducked or there's some tax advantages you need to look into weight loss aids. Assaulting the other day it said there's a Mayo Clinic that and I've been on the may showed that most of my life and that has. After about and they you need to look at every deduction possible we want to take you we want to reduce or taxes we want to avoid them but we do not want to evade them. But the best way. To save on your taxes is to be proactive way ahead of time and that's where Rebecca Kincaid is an expert. Well I've done a lot of this over my ten year now abandoned a lot of tax planning intact Chinese at the corporate level. I used to work for a company called old mutual. But they were an insult to fidelity guarantee life I was there for five years sex. Had a lot of experience in marketing partners on I got to work with actuaries who are different breed much like engineers are very anxious time and date. Yes. So they love me of course. Except. The things it we can do when we talk about taxing and Tony alleged this a couple of weeks ago is do you wanna pay tax on the seat of the crop. I have three children I had Ava who is eight temple who is six and Finley who is almost four. And since April was born I've never been able to eat a meal without some might have in their hand in my plate. I could literally be eating escape of dirt and they would come up to me and say. It's so irritating simple what SharePoint. Well I'm really describing your qualified plan. Somebody is gonna come stick in their hand in your pie. All pure play that she'll want and eat off your played and that's going to be your qualify play into that money pitcher deducting now. That your gonna have to pay the piper on down the riot what is Wiki decent tax diversification and tax diversification and put money into vehicles that are never be taxed again seated biggest tax pitfall. For a lot of the younger investors. Is at the 401K. Disable what does that name. Well if you're putting a more than the matching your 401K. You got a big tax target calling yourself. You could split some of that all evening over the for a for the matches on at 401K can be repositioned in such a way. To where you could leverage it up. Leveraging up to where Uncle Sam is not your silent partner someone's not eating off your plate at every meal when you sit down to have a to have dinner. What did that that strategies we talk about and specifically a lot of our target market effects that we work with our retirees. Well a lot of retirees sable the chips are you sailed for me. She may have sailed for you my friend but it is not sailed for your children and grandchildren. So what is he could jumpstart their retirement in the most tax efficient way possible IE no taxes. And pundit for an answer it's ready for life events. Stated she wages tucked away I don't know it's not thousand dollars a year for our grandchild. She did I over the course of ten years. They can have it 23. They can use that for college. You say well what kind of car are they going to well I'm assuming it's just this concept that I take student loans for four years and then repay the student loans. What if I can take and 95000 dollar withdrawal. Are alone. And repay in college debt and pay their taxes on. Then. What do you think it's happened to that site account that she only paid into for ten years bright house. What if you could help find. College for great grandchildren you've never even met our may never get to me. All Amish tech tree base is in and help jumpstart their retirement it's a novel idea. If you'd like to hear about ideas like this and many others about how to have a successful retirement. You look us up on the way a bit CS RP dot info now you'd need to write that down. If you're in the car you need to aegis. By Exxon and in below or something or play however you can write that MC SRP. Dot info I have to Rebecca has it tattooed. Honestly say we need Iraq. Touched approach to. So I actually I guess is since you brought that up I'm wanted to tell you. I actually did that for my daughter Alexi did realize you'd done it did you. Saying where she's 25 now so when she was about five. I started funding movies and don't plan your tour that you're talking about. And Alan topics are funny with a hundred dollars a month just donated ton of money and no clear that this is crazy right so. So when she turned 25 I said okay darling I've been funding this all the time. Now I'm going to turn this over TU. And I ran an illustration. Based on how much this had grown too and I only used a seven an additional note that this particular plan has averaged over 8% rated him but I eased to 7% rate returned just as kind of a benchmark. Just to see and hundred dollars a month frank plus that great return. Could we started or file a law of the magic of compounding. By the time she 65 years old. It would have approaching two million dollars. In it and it diets for real. Because of compounds because that is the way the way the earlier you start law banning the point the point here is. That would be tax free money all of it. And and that's that's the point you make in his so it's such an important win in we have a tell you this really works well for and we have a number of clients like this. Physicians. Turn these small business people. Who are making. Very high incomes and of course getting absolutely hammered with it. And their accountant says then all what you need is set you know you can put all his money in the assert. What you're talking San when you're talking 41 K whatever they're going to be limits on how much you can put into it for starter secondly and here's here's why this is such a big deal. The baby boom generation is in the process of starting a retirement. Regime is going to run fifteen to twenty years we were hitting retirement age of 101008 I'm going to be seven you have to next year here's an example. This year this year. There are 75 billion dollars is gonna come out of the market in baby boomers taking our MD required minimum distribution says they get swayed the biggest why are we ever saying it happened it is. And it's just started it this is a demographic tsunami this coming. Now here's why bring it out. We estimate during the office of management budget estimates that did there's a 122. Trillion trillion dollars. That's a stunning amount of money. That is expected to have to be paid out for Social Security Medicare Medicaid and so forth so. Where might that mean coming from and the answer is your kid's pocket or appear under the age of fifty your pocket. And the reason is this is Ponzi scheme calls Social Security Medicare Medicaid. Is paid for or by current. Current. Maybe a current rather workers your taxes so this is a way. Rather than worrying about what your tax liability might be in the next year or two what might your tax ability beat. In the future and an I just wanted to give you a sense of how how big this is this is a stunner. So. Our federal data symington is approaching 21 trillion dollars right listen to this. If you spent a million dollars a day since Jesus was born. You would not have even reached one trillion you would only spend 700 billion. Which by the way same math banks guy when they got bailed out. Now tried Pritchard had ran 122. Trillion. Where might be coming from so if you want to shelter and protect the news. In case you should use I love that expression pay and pay taxes on the seed rather than the entire you know why you love that expression can it came from you and but I didn't ask you gotta be Goldman's. I am a good listener you are good listener but anyway. So we can show you some incredible. Incredibly clever tax things I've been doing for Lopez to have one and well ram and we we've been using this strategy for years. So it'd be great. Give us a ring. 1806876760. Or go to our website CS RP which stands for concentrate our planning CE SRP. Dot info. What are the things he mentioned sorry Philip Steve a sentiment. What do you think you mentioned Tony it's really important if you're talking about the small business owner say one of their gripes about doing any kind of retirement play in width a small business owner is I don't have to do for all of my employees and I can't afford to do for all my employees. Well this instrument. This issue may can be used a couple of ways one. It can be discriminatory you don't have to do it for everybody else and cried you can just do it for yourself number one number two you can use this to world war to. A really good employee. An employee that you want to set up a phone assuring the war is. A a bonus plan is escaping me you're the second executive executive bonus plan and golden handcuff. The golden handcuff like of a vesting schedule. So this could be used in such a way to reward employees. And you could actually deduct the premiums and we can help guide you through the process but if you're a small business owner. And you say I don't have any angle infamy for retirement because I don't wanna have to do it for everyone. You don't have to do it for ever or one dating thing saying you're the winner. Switch gears a little bit out ahead not Debbie downer this is a good thing answer why people come in you know lately and they. That are still in the market and mutual funds and they're excited and you know I'm cited for the on the they've got this run up the trump Loria. Well I have just a little discussion with you here very quickly is make sure you understand the Tony and I and the rest of the team were securities license here at the accounts and retirement planning. And we deal with mutual funds possibly we understand mutual funds. But I've got a you know a picture quarterly. Book glitch from some of the best mutual fund companies in America and I take. Let me tea Almaty the one of the best mutual fund companies in America is American nuns. Tony and I have being going to these meetings ad nauseam for years and American funds has always been a stalwart they are. Safety oriented for mutual funds they have great management. They they they're just did a great mutual fund manager but their mutual funds target they're still mutual funds. We're just going to hear hasn't let me look at some of their funds. And what I want to delay is their tenure track record here we think you're going to be in retirement at least in years yet well. Now is got a graph here. And you know graph looks like mountains right we'll leave all about the apple action mounds as graph looks like the Himalayan mountain I mean they wouldn't you know your it is really got. Well let me just got through this with you these announced saying these are some of the bit I'm not this and on the submits mutual funds in the country's highest in their mouth American global small capitalization found in your records three point 89%. Growth fund it better American growth fund seven point 13%. International fund two point 64%. Senior trackers that means the bank and had to give you two point 64%. For seniors and a road to do what the American international fund it for you. New world fund that sounds good guess and Domino's Pizza here is a three point 87%. You say what I'm saying with those kind underage return you've got those great return and acquire risk. If you did it say. You could have got similar hand over returns maybe even better returns in things at no risk. But see we just been ingrained and I guess I've got to be in mutual funds. The problem me as if you'd have been taking a withdrawal. Through these this volatile structure. You could completely destroy your retirement. In a very good mutual fund because it doesn't eliminate the volatility. Did you hear those returns that I was Tony that's a tenure track record. Because it included 2008. What's the chances than sixteen years are gonna include a 2008. Types scenario. BC it's not that. Common sense retirement planning Tony Philip. Lauren Rebecca the rest attain don't understand mutual funds is that we do understand mutual funds that we don't prefer them. Well said. Well since you brought this up in Philippines you'll you'll recognize this chart I'm actually looking at one of those charged from American funds because every time they give the presentation. They try to say nasty if you did you statin destined for the last 101 years he would enter a cable here's the problem. It is. The problem is you died long. Don't ever achieved a 5% annualized return so the average American is facing is the limo heading into retirement. Because we have a finite investing time horizon to back games. Most investors don't even start really investing or saving for retirement tiller in the mid forties. And that and the reason is because by the time they graduate college to land a job get married had kids in my college. They really start getting serious or have the resources to save for retirement so many really get asked for right. Well at least what. 20/20 five productive working years before retirement to to reach your investment goals and this is where the problem here is because there are periods in history. And Phil was just referring to them or returns. Over toward your period have been close to zero or negative and wanna stop and give you an example of one I just ran these numbers. I look at the inflation adjusted. Dow Jones. S&P 500 and NASDAQ. From 2000. 22017. So the cumulative rate of return for that entire seventeen year period is fifteen point 6%. Divide seventeen into that and you come up with. Point 92%. That is the annualized rate of return for the last seventeen years if you took the three major indices and yet all people were talking about his. All the bells it was an all time high. But as I say that's not what you think about in retirement plan itself. Outside of the longevity and sure let's just look at the map because that's the problem. Let's assume that Yuri index goes from 1000. To 8000 right. So as investor you bought the index has generated. 700%. Return on your money. Why would you worry about a 50% correction in the market if he gained 700% right no problem we just down to 650 no. That's not man. Because a 50% correction is a subtraction of 4000. Points. Which reduces your 700% gain to 300%. Gain and then there's the problem. The issue of having to regain those 4000 lost points in just to break even. So. That is without taking any income. Now add to that little equation you withdrawing 4% a year. Are you starting to see how the mathematical. Numbers are working against you and yet. You can be told every single day by your happy advisory your favorite beat Wall Street machine firm. About hole you need to do is to street invested strain of the Porsche got. We heard that same mom trip through the crash of 07 and eight through the tech stock crash in your gonna hear it all over again. May be after march the fifteenth. Now. Our clients don't hear them. What and in you know we we don't hear from our clients. We only your phone calls we don't hear people showing up at the door saying. How do lowest ever. I realize savings man. That's just how what we do. But we talked to people about and we have people I met when my favorite clients is weakening just surreal these get. He's going to be 65 he's in ready to retire pretty quick and he's amassed a pretty decent little lack over these years. And he's going to be guaranteed income to him for life. And ID it's funny his wife didn't even realize this or should I maybe she didn't understand it originally. She came in with him and I was just telling him kind of how much we run some members of trying how much money he's gonna have for his first year of income. And that these income if people when he passed away. Whatever bad income had grown too would continue on for her for the rest of her life. And there's what eight year difference in their ages she fell out of the chair she did not she didn't even know that. And it did this is a lifetime income from both of them and and this is really big deal because she had ever state pension lord have mercy of South Carolina State pension and be a little nervous. But anyway she as they pinch in the pensions don't give you raises right. Here. He's gonna get raises based on whatever rate returning to its every single year so there's so if it if it's like you need in their case I wanna say they're starting was like 18100 dollars a month. Well if it just got you know some pretty decent rates of return over ten years. Could be a substantially. Larger number and will be passes away it continues on firm that's bad as a retirement plan my friend right there self. How would you like to seal one of those look like plugging in your own numbers mom found interest in the future and why don't you come see us go to CS RP dot info. Tony you. You alluded to that this chart they came out has been went across the you know financial advisors also all the same chart and there's an article actually about that charted out alluded to earlier. And so some things are worse say and in a different sort of way he says but. They point out said that chart is deceptive and worst dangerous in fact you absolutely must worry about corrections because. The whole charges to take you to buy and hold by an Orlando select so. Rebecca says so they can and unit has their retirement but anyway. He's the article dog's best and let's look at this realistically. The average America faces a real dilemma heading into retirement unfortunately and then individuals. Have only found that investing time horizon until they retire. Therefore as opposed to steady discussing long term investing without defining what the long term actually is is that pass. And we should be focusing on this the same thing Tony say in a different way investors for the most part all star focus our tower until their mid forties. After putting a slog of youthful adulthood behind him. This lays most individuals whose 2025. Productive work years to achieve investment goals here's where the problem is. Their beards in history where there returns over twenty year period have been zero or negative push Tony pointed out. And he goes on visas. This inflation adjusted chart. When you take that inflation suggested. As much more accurate depiction of market behavior. You know and so EC that if you retire into the wrong time. You can destroy your retiree says before you're sticking your head in the sand and ignoring market risk based on the article counting long term investing always wins ask yourself. Who really benefits. This time it's not different. If the last two bear markets haven't tar achieved this by now I'm sure. The next one whale. Through maybe the third time will be the charm you know folks I don't think you're gonna think the third time's the charm you not think the third time. Put me under for the last time if you'd like to secede had to be rescued. From this type of investing. Give us a call 1806876768180687676. Say CS RP dot info. In what we've seen too is that Avery. Correction looks different. So if you're with someone he thinks it cheered. Artists so would you Billick as stitcher diversified enough that we saw we saw it last time we prepare for this time. Every correction has looked very different than the last and the one that futures analyst theory different in this when I think is gonna feel different suit. I'm kind of going through articles here we have stuff all over the table Wilson did a sham in a cane it looks like my kid's bedroom floor. You can't see it but the tide of this article is and the time bomb more triggered next financial. Collapse. What's going on today is complete insane but he passed by stockman pigs waiting to get slaughtered. There's not nearly enough growth to keep growing. NASDAQ now more ever bought at 2000 at more hyperbolic than it 2000 bubble peak. Amazed these articles that we are reading and we're seeing. Your guy has seen the same things so he's warning you right he's telling you to be safe with your money said that you don't have a catastrophic loss of retirement right. What they're not now. When I got to be read the same things we are. Yes they are that they work for firm. I'm that if they tell people to get out of the market they could lose their job Tellme a little bit about what that means it's well well in this this is is true if you're here's where I think things they did you have to understand. We are independent advisors fumed do you use the word wire house that's an industry term most people don't know why are house that's what what we call in the industry all these being massive. Multi billion dollar Wall Street firm sure. You know looks at your Citicorp you're you or Merrill Lynch's U Wells Fargo injury Edward Jones is in all of those. OK so if you're an advisor you work for you are employed by these people right. And those guys up in New York City your managers the upper level guys are the ones who were cut and all these backroom deals with these mutual fund companies and doing various things and they are the ones. Who set the stage for what it is you get to show your client. The one thing you better not be doing now is telling him oh it's time to sell all your stuff and go to the money market because they won't make nothing. You can get fired by doing. So. My financial success or failure. Is driven by how much my advisor has the opportunity to make how much Richard Harris firm even more important what I mean if I don't think that's the right thing to do you're telling me and I notice is or torque obviously but. Your Helen made it. Dear doom when they're told to do regardless of it's if it's in my best interest. Actually I got command Sobel and concur corroborate this did that we used as they said. You know I work for an advisory firm and and and I really wish I could show the cat that's when these things are showing people can ask as we can't use those. To show you think. He did admit it did seem fazed and it does mean you just leader Carl browse and listen we came believe that we're almost out of time. You're not you've got time make use of it. Now go to CS. RP. Dot info why you still have time. Incumbency yes god bless you see you next week.