Explain Financial Diversity

Financial Symphony
Saturday, July 15th

Using Pink Floyd's 'Another Brick in the Wall' to explain financial diversity.


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

The financial center and helping you can. Harmonious financial plan and getting your portfolio in two weeks so sit back slowly strike at the the financial simple it's starts now. Thanks for joining us this week on the financial symphony Tom Walters strolled joined as always by Richard future release the investment advisor at Carolina retirement resource is serving you here in the Charlotte metro area. The person we turn to for guidance in the financial world each and every week. This is the should help you better prepare for your financial future for retirement and beyond. Richard thanks for being here this week howry served under great Walter curry done very glad to hear that I am well and looking forward to our conversation today. Lots on the docket Richard we're going to be talking. In just a little bit about some of the important terms that you need to know when it comes to financial planning and investing in Carlson and answers some of your questions. To get things started off this week but a quick reminder if you wanna reach out to Richard. And ask questions of your own have a one on one conversation you can do that by dialing 800. 6465996. Again that's 806465996. Richard let's turn to Jack in Charlotte to get our first question from male bag this week. Ed Jack Charles says were retiring in two years and plan to sell our home and moved to the beach. But home values in our neighborhood are sky high right now some wondering if I should sell now. And ran for a couple of years is that a bad idea to try and rent at this stage of life. You know obviously Celadon seller's market is preferable to sell one and empire marketed and you know buying or renting and we don't when you downsize. It's far from a no brainer it's not just it's not a simple I answer. You know for starters you the one thing I like about Clinton loses its is much more flexible and Conan. You know if you decide. You don't like where your Livan you just simply a move on wants that lease expires you know so. A while the value of a home may increase over time. You know the life of the equipment present in the house does not. And says properties are valuable last says you know you'll try your best speaker house well maintained. And that means spending money on repairs and modifications. You know reader corporations. You know we keep that property value up you know the cost of ownership is usually something that is overlooked but it adds up to a considerable sum. You know leaky roof. A new appliance. You've got a cool taken care pool. On the landscape in all those things cost money and you know expenses annually yes he can increase on a regular basis. You know apart from this owners. You may have to. Pale homeowner association fee. Which seems to go up on a regular basis and then there's always the annual property tax so you don't Renton those are all someone else is concerned someone else pays the property taxes they paid homeowners association fee they take care of the property maintain the property. You know statistics show that more and more seniors are opting in for rent and and it's flexibility vote but often many of you rent. Do so because you need the added money the sale of your home can provide to boost your retirement portfolios you know show. Renton is not all peaches and cream however since our rental prices in major cities. At the beach can spike Doran economic upturn. You know seniors who often live on a fixed income. Are certainly going to be more sensitive to those spikes. So it's important for free you do shoes. A rental home in and in a place where prices have remained relatively stable and on the other hand. Owning a home has from real advantages you know we can do whatever you want if you need to rip ripper on the wall without the carpet remodel and you're. The way you want to remodel and I'm prepared home for your for your usage. You can do that with your home mom and and more often than not not not always but typically. You know over time dependent on your time horizon homes will appreciate in value. So you know I I think it's a good idea to ran I like that concept myself. On the beauty of Renton. Is there is no lock and I I like the flexibility elect the freedom of that. If the rents go up too much. Wear your hat and no you simply move. Now so. There there are some advantages to rent ten and I kind of like an ideologue. You know what do you value devalue the flexibility or do you value the virtues of being a homeowner and let that kind of the beer guy demanding answers going to be different for. Different people obviously so it's really good question Jack and something to be thinking about at this stage. Of life and if you have a question that you want featured here on the financial symphony and go to. Financial symphony dot com and look for the request line and you can submit a question that we might feature here on the program again that's financial symphony dot com. Best in mint hill has a good question for you Richard she says that just paid off. My last tuition payments and my kids are officially off the payroll congratulations that's. How much life insurance. Should I now have. I'm not so sure they're officially off the payroll yet can get a dollar and entertain themselves that. But the bottom line is as I understand. You know it depends up obviously you know whether or not you need life insurance it depends. But you know I think what I mean by that and I wanna clarify. Is are you consider it life insurance for death benefit. Or are you considering life insurance for asset accumulation tax free withdrawals you know. Traditionally. Life insurance is purchased to help protect your family from poverty in the case of Europe untimely death. However you want your children. Have become self sufficient. And you and your spouse have accumulated a significant. Nest day. There's there's less need to keep paying premiums for life insurance only for death benefit. On life insurance certainly makes sense for a death benefit standpoint if protect and income as your objective. You know for example if your spouse is receiving a life only pension. And passes. You know you'll lose that income as well as one source security track you know in this situation. A life insurance death benefit would replace that income and life goes on if you didn't have the life insurance contract and that death benefit. On the lifestyle changes will likely occur generally for the work. You know life insurance can sometimes be an estate planning tool you know on if you have a form. Let's say and you wanna keep it in the family or or your business owner. And you don't have enough liquid assets to take care of obvious state taxes. You know you can have a life insurance policy. That is certainly tied to your state plan and additionally life insurance coverage makes sense for those of you are still paying off large launch so. If your mortgage is a 1607880000. Dollars. You know that there might be something in 22 to keep like insurance. Around four certainly you want Q. Make sure that you don't overeat sure unnecessarily in that situation. You know with that said though Walter in you know the biggest lie in modern finance is that putting money into life insurance for cash accumulation is a big mistake. Because of high fees and commissions in a fact is that properly structured life insurance contract. Is very competitive and it provides significantly more benefits than a 41 K or mutual funds. You know these properly structured life insurance contract they're very good tax free accumulation tool. And most of these contracts allow you to access the death benefit prior to debt to pay for long term care you know this type of life insurance is specifically designed. To maximize cash accumulation. In Apollo these growth account. Because you're fine as little death benefit as possible it delivered growth on a market is up. Protection when the market dropped. Tax free statements and tax free withdrawals so it just depends on your objective about life insurance made via a solution and it may not. Absolutely and it's a really good question to ask Beth and Danielle are the key is officially off the payroll lower at least one of those. Big it dispenses may be came off the payroll but to make sure they're truly flew in on their own first right. That's a really good thing to consider them thank you Beth for one more question here from Helen in Cornelius and by the way through and reach out to Richard and ask. Questions of your own and have a one on one conversation you can do that an 80646. 5996. Call Richard at that number serving you hear throughout the Charlotte metro area 806465996. Helen Cornelius says is it okay to have several different IRAs or should I consolidate. I have count them seven accounts seven IRA is the well yeah that's that's that's a lot. OK but but let's. Let let me make my answer is clear as possible I'm I'm I'm I'm gonna assume. That all your accounts are in a brokerage account or an investment account. On and the big benefit if that's the case. Of combine and all your diaries into one brokerage or investment account is simplicity. It's a lot easier to manage and there's only one account for you to pay attention to as wells a lot less paperwork with respect to organization. And and larger accounts I mean more money you happen these accounts. Yeah you get break points so the fees could actually decrease the more money in the account. However there's one exception to combine in diaries. And and that is if the diary is a rock fire ray you know rob diaries we'll have to be held in a separate account of its own. The only situation that would require different higher res. Is it you know you wanted to diversify. And have different investment strategies working for you in this environment you can still consolidate the diaries with one professional. Who can then help you make those investment decisions you know for example. You know brokerage firms. No they do not invest your diaries and precious metals were realistic if you want to invest your hiring and those asset classes. You would have to have an established relationship with the custodian and the allows for those passes to be held in your higher rate. Or if you decided to purchase an annuity. When an insurance company for example for guaranteed income it would be held separately and so you would have an additional higher rate over that brokerage and investment counsel even though you can consolidate all Dreier raised. Except for the Roth IRA in one account. It may not be in your best interest to do so obviously dirt diversified investment strategies retirement is a very important concept. Especially if you're gonna preserve capital and continue to accumulate more money. So before consolidating make sure that doing so would provide a benefit to you and not just your advisor going to financial world every situation is different Walter. You know you can't just look at product strategy and label it is good or bad across the board. AL it all depends on your specific needs and nuances of your situation. You haven't a plan. However is a great story but haven't won that Fitch viewed your specific needs. For your retirement is the only way to help assure you retirement years will be a really want him to be. Don't really don't balls down to the fact that there's a number of different pieces for the financial puzzle and they all made to fit together some nice and neatly so I'd like to offer you the opportunity to come in for complete financial review. And will offer this review for free to all listeners who have at least 200000 dollars saved for retirement. I'll talk you through those different puzzle pieces and you win what you need to consider you for instance you how much risk. Are you taken your portfolio and is that amount of risk appropriate for your age and for the amount of return mature actually get. Know how much are you paying in fees and commissions on your current plan. We're not tax implications of your statement is there a way to save money and taxes down the road by planet proactively now. You know do you have an income plan in place to be sure that you aren't in danger run out of money if you end up less than thirty or more years in retirement. If you have a plan to address inflation in future decades as the cost of everything continues to arrives. Obviously there's a lot that we need to discuss and we found that most people just haven't planned early enough to address all these issues. Again this review is complementary to anyone who has at least 200000 saved for retirement. But the calendar does fill up quickly so go ahead and give us a call right now so that we can be sure to get a spot reserved for you. And again here is your number to called reach Richard future railing and take advantage of a complimentary financial review. 806465996. That's 80646. 5996. Richard has offices and hunter's bill and in Rock Hill. Serves you throughout the Charlotte metro area if you're retired recently or maybe your approach retirement in the next couple of years. Make sure you're making the right decisions now you don't have time on your side to recover from bad choices. So make sure your making the right steps here at the outset 806465996. Is your number to call. You can ask questions like we've covered on the show so far today. That pertain to you or unique situation that's what's so important as every plan needs to be customized to your individual needs. 806465996. Is the number to call again. For this complementary review all you have to do is dial now express your interest in coming in in meeting with Richard good to rally and he'll be sure to reserve a spot for you. But you have to start the conversation and that number again is 806465996. That's 80646. 5996. Stay right there much more coming up on today show this is the financial symphony in a little bit will be talking abouts in service distributions Roth conversions diversification some of the other important terms. That you need to know in the financial landscape. Oh why these are important to note virtual break at all down force coming up on today's shift stated. It's time for another musical connection. Where we blend the worlds of music and finance together. Here is a friend of the show financial advisor and musician mark Gloria we're Iran's style acts. It is time for another musical connections so mark let's talk about Pink Floyd. In what we might be able to learn from pink Floyd's another brick in the wall. Ought to great tune great album emit very great album and you know I got to ask you questions here. Right up front we're talking about Pink Floyd. Is there anybody in there just not if you can hear me. A few I don't know where those lyrics came from they may be an induced by some kind of foreign object and everybody's kind of chemical reaction we get to look at the well known chorus of the song another brick in the wall which starts out with the iconic line that. We don't need no education. Well that's Westport grab that would work very well already over a long way be a million units of education in as it can learn how to speak that you're playing a little better bit. We don't need no education was sung by students from a school in his rulings and England and I'm pronouncing correctly. So is it his Wellington. Anyway the school was chosen simply because it was close to the recording studio just habit to be there wasn't a lot of trouble to get them exposed. The group was made up of 23. Kids between the age of thirteen and fifteen. But they were over dubbed twelve times in order to make it sound like there were a lot more kids sort of trick in this studio. And the colts stacking back right. Aunt and my question do you mark Lloyd because you're so good at doing this even from Pink Floyd. What can we learn financially speaking. How. Well I was thinking about the recording process when we were talking like that I remember working in the recording studios and singing the melody line and then turning around to make the voice sound but larger sound more. You know like it has more volume to it has more you know deficit that actually singing that same line in stacking on top of each other you know who really used to do that a lot the sixties was The Beatles don't ever listen to George Martin and The Beatles sure there was a lot of stacking going on even on the melody lines. And what it makes me think of in the financial world. Is diversification. It's all about the numbers many people think that they're diversified in their retirement portfolio because they have a lot of different stuff a lot of different investments a lot of different statements coming in the money have money they have money at this firm they have money at that firm they have money at this brokerage house they have money at that brokerage house they have money at this online you know a stock. Platform they have money it in their 401K and all of this is did it in their mind is diversification. But in reality many of those same funds in the same holdings are all in the same stocks. So one of the reports that we run complimentary pulled everyone who calls into the show is an overlap report I had a gentleman whose assault investor who came in this week. And he said Markey says I love this report I did not realize. That I had so much in these with these stocks I didn't realize that of them was ten different funds that we're investing all the same way and I am and I shared with him that he was missing out on so much more growth by the lack of diversification that he had and I gave him examples of by having diversification and other types of funds how much more he would have earned last year. It was like a light bulb went off. So it's very very important but you know you think you might have a lot of diversification did you get a lot of different holdings. Hundreds and hundreds of companies but direct blow might be represented your portfolio but it may be the same group of stocks kind of alike. Those thirteen. Those kids of point three kids between the ages of thirteen and fifteen that over dubbed those songs several times. It might be the same thing in your portfolio. So we talk about the power of diversification. By not only having the different holdings. But also different kinds of holdings we talk about having different buckets of money you wanna have a growth bucket that's your longevity bucket to make sure that we are continuing to be disciplined and keep that in the market let it grow. And that's the money for down the road 101520. Years down the road retirement doesn't mean we're not necessarily die tomorrow retirement is another season and our life. That could be as much as thirty years. We also want to have another bucket of money where we can draw income from. And in come bucket. That bucket to be safe money could be protected money protected income. In come that we know what's gonna come out because it's designed to give us a specific amount of income every month or could be done through interest and dividends there's different ways of setting this up. But if you don't know the difference in the different kinds of buckets that you might need to consider inside of your retirement it is so important. And for you to become educated especially if you're already retired or soon to be retired. So what's real easy as a matter of just taking an hour out of your mind and picking up the phone for Iran and tell everybody what they need to do. This pick up the phone and call 806465996. Spent 806465996. You can get a complimentary review of your financial plan. It's called now the detective. 806465996. He can take a composer weeks months or even years to get together we can make an endless. That's because they take time to find just the right near scores yeah. And while in great financial plan won't takes years to put together. You should take the same time and attention to make sure it's the perfect plan for yeah. Come visit me in your financial maestro Richard preacher yelling serving the Charlotte metro area. Call 806465996806465996. You're listening to the financial company. This show that makes your your financial plan have them the perfect. Since you're listening to the financial symphony Walter stroll here alongside Richard future railing Richard is your local financial maestro right here in Charlotte metro area he's the person we turn to two. Conduct our financial plans and guide us through. The financial landscape try to put together a better plans for retirement and beyond Diaz offices and hundreds bill and rock kill as well. Throughout the Charlotte metro area you can turn to him if you have questions of your own. 806465996. Again that's 80646. 5996. Coming up on today's show we're talking about some of the important terms that you need to know when it comes to planning for your financial future some gonna throw. A couple of buzz words a couple of terms out at Richard and some of these things. I don't know like this very first one Richard in service distribution. Kind of I I hear you sort of I'd want want on the background you know it's just kind of make your eyes got legalese over a little bit but. For some people that's going to be a really important term ten now so let's respect that and in service distribution there's actually some important things to consider here. But especially here and financial red zone you know after five year urge you know 78 years out of retirement. You know you guys are shifting gears and be happy ability. To do the performance or distribution of my speech here benefit. You know let's say your last sixty years old right now in and you plan on retiring the next five years. You look at your 401K statement he she how much it's gone up over the past five years. But you're getting nervous you know I mean I I'm here and it's a lot from people to get nervous again. You know because they remember those who drops in 20012002. You know you lost some of you lost over 50% of you're havens. We have certainly isn't good thing especially if you're nearing retirement. But you were only 47 year old when that happens so it was it was okay had plenty of time. And now hopefully you recovered them the crash of 2008 came along. And you lost then as well but you are still only 54 years old and you still have peace amount of time to recover and hopefully you did. But now you're sixty. And and you need income to start come from those figgins in the next five years when you retire. So you want. Then you come to be dependable and you wanna comment every single month without fail no matter what's going on the stock market or economy. But if you were loose 50% of your 401K value again. Between now and when you retire that would hurt worse than a short stick in your eyes. The problem is most 401K plans don't offer ways for you protect your gains right now. And a shift into a program where you know exactly what your income will be when you retire in five years is a Paramount. To do that you need to look at options outside of that 41 K plan so if you're at least 59 and a half years of and you have a for a one day. You were likely able to perform what is known as an in service distribution. That will allow you roll that 41 K balance. If you your own self correct dire ray while you're still work in which you can then invest as you see fit. These in search distribution may also work for other types of plans such as for three B a 457 so you wanna talk to. Someone in the human resources and an asking appropriate questions to get the appropriate answers. In all cases if you shoot performance servers distribution of the transfer tax free if you do it properly. Yep and that's the the key part right to a properly because there can be consequences to these things if you don't do with the right way. And so make sure your aware of those different things that's the in the service distribution kind of the skinny on. That financial term but it's important to learn some others on today show as well. Richard preacher Ellie is here with this investment advisor and Carolina retirement resources if you wanna get in touch with them. Again that number to call is 806465996. That's 8064659. 96 for talking about different financial terms and maybe the eve you know biggest buzz word out there Richard is diversification a lot of people say that's the key. To retirement and financial planning what is diversification look like in your eyes what we need now. My you know diversification. For most people's perspective what they did talk. It's pretty synonymous with in advisors terminology of asset allocation. Airlines and it's an investment approach to diversify his portfolio of equities you know fixed income or bonds. And cash equivalent should not the Wall Street model on the idea behind diversifying your portfolio is so you can reduce risk. Walsh move and out investment return by including different securities across a wide range of industries and sectors. This supposedly allows you to participate. In a variety of their investment opportunities while reducing that risk of large losses. Due to any one security. In other words you don't want to put all your eggs in one basket we've all heard that before she don't wanna just put all your money school or apple and hope for the best. For example look at an an aggressive investor what does an aggressive investor why you know why he's gonna probably allocate. 80% in equities and 20% bonds. Verse is a conservative investor who might have 80% invested in bonds. And 20% in stocks you know this is how washed reposition or shape mr. speaker your risk by reducing the exposure you have to a single asset class. But from 20032007. You look at that period of time. And diversification worked just fine. But in 2008. Nearly every asset class went down and diversification did not provide a hedge against financial crisis. And many of you saw your portfolio decreased dramatically so for retirement. I'm more concerned about diversifying different strategies and I am securities. And the primary reason is because the market volatility. Market volatility can negatively impact your income. Fortune on comparable lifestyle changes to market volatility. Much greater when you're taken income from your retirement savings that it was when you were saving for retirement when saving for retirement market downturn reduced her assets. But it didn't affect your income. But it retirement. All or portion of your income is generated from your assets and the impact of market volatility is much much greater. So by diversifying strategies in your retirement income plan you create income to pay for your monthly bills. And you create growth for future income that you're gonna need based on the present economic environment you know folks financial decisions. In these these are some of the most important decisions that you're gonna make torn your lifetime. And it's important that these financial terms are understood to help us fish too and making those decisions. In fact you'll see that the most important principle on which to be sure investment education. Is simply good common sense in this is why I'm very passionate about my believed that you deserve to secure independent retirement. And that's why I offer free consultation to our radio listeners to help keep you on that path. So if you call the next fifteen minutes and you have at least 200000 harshly for retirement. I'll offer you this free consultation help you determine how prepared you or to handle retirement pitfalls such as inflation. Health emergencies stock market volatility and taxation. You've worked hard for your money tall worked just as hard to help you protect and grow it. There are wide variety cool and services available on the financial world. I'll show you how harsh those tools and services to create a plan that's tailored just for you. And I'll show you how to achieve a lifetime of security thanks to a lifetime of income. So let's get to work right now for the you can get that back based approach you deserve and get better answers your financial challengers and objectives. Give me a call next fifteen minutes and I'll work together with you put you on that road financial security and independence. The question is how do you get that complementary review and the answer is easy pick up the phone and call Richard future LE 800. 6465996. Is the number again that's 8064659. 96. Richard is an investment advisor and Carolina retirement resources serving you in the Charlotte metro area. With offices in Rock Hill in hunter's bill as well. 8064659. At 96. Call that number get a complimentary review of your financial plan. Make sure you know where you are now in where you need to go in the future it's very simple really all you have to do is start a conversation about your plan. Talk about what kind of customized situation. You need to have put together for you 806465996. Is the number to call. Again that's 80646. 5996. That a pitch in touch with local financial maestro Richard future rally 80646. 5996. Before you move on Richard I have a trivia question for you this week. Can you tell me and are you a fan of trivia by the way I'm putting game people play game think it's fun I'm like okay. As a Richards not a fan of trivia lower I'm gonna get your trivia question anyway just to see our we'll see if you're smarter. And our listeners about that. What was the day that the most flowers. Were sold in the United States in our history as a country. When was the most popular David flowers. We're sold. Think about it for a second in a couple moments here on the financial symphony we'll give you the answer and see if that Richard is that would come up with it as well. They did this is the financial symphony with Richard future. Wherever you go there yeah. Following lurking stinking alone continuously nibbling away your hard work. Did you. We need. Don't be afraid of hidden fees in your portfolio. Come in to meet with their financial maestro for review of all the fees in your current plan. Let me see if we can eliminate those pesky. Yeah okay. I'm. Come visit with your financial maestro and Richard that you really serving the Charlotte metro area. Call 806 point 65996806465996. It's time for fireside chats. As we get to know you're local financial symphony maestro. This is the part of the show that we called getting to know you where we ask Richard preacher LE a pretty random question each week just trying to get to know little about. His life his personality likes and dislikes that sort of thing we talk all about the financial planning elements of your life and whatever what's while let's talk about the advisor. Himself and that's Richard in Richard it's pretty easy question for you this week I would imagine. Who is the best cook for you now. Well I would be my wife of course crucial equipment just about anything Walter from scratch. Here well very happy man because you're welcome for the opportunity to score some brownie points there. Well I don't know if you listen to the show. Yeah that's supposed to say that. I don't know ours is a loyal listener asked every every time the show is on she's tuning into you unfair. Okay I'll make that I'll assume that that's the case you'll you'll pretend that candidates did. You know she doesn't get enough of Viet home already she's got to hear your voice any opportunity she can funds that I'm sure she wants to hear my lord that's refer well on on the off chance that maybe she heard you today and that she just wanna be your lovely voice you scored some brownie points there or how about this I'll just send her. This audio clip you know I'll cut this out of the show ascended to it that way she doesn't have to tune in on the exact time that would be great guy I dare you do that perfect perfect. I've best coach Richard knows his wife get answers that are gonna answer eight it's a safe answer in case she was listening right so maybe you'll get the radical Thomas here I'm sure is she is the great cook because it was an insurance leaving some. That's great thanks Richard we appreciate and that's getting the original with better on today's show we'll get back to the financial talk coming up next. Much like the musicians 1980 its mistakes and their instruments were analyzing the acoustics of early in the forum performance. Your financial maestro fine tuned to your financial planed to adapt to the ever changing financial world. Don't settle for an advisor who offers a sales pitch and also plans to make sure you hit all the right notes if your financial plan. Come visit with your financial maestro of Richard Richard Alley and setting the Charlotte metro area call 806465996. 806465996. Johnny Cash is a stay was approached by an advertising companies asking permission to use. Ring of fire on an ad for him right screen. The request was freaky. On a similar note here the financial symphony we requested that Johnny Cash the state allow us to use Folsom prison blues is our theme song. That request was also refuse. But keep listening anyway. Thanks for sticking with us today on the financial symphony a mortar store alt alongside Richard future rally investment advisor at Carolina retirement resources serving you. In the Charlotte metro area reach out to Richard by calling 806465996. Again that's 800. 6465996. A little earlier I asked Richard a little trivia question if you didn't hear it here's one more opportunity to maybe guess the answer before we reveal it here on the financial symphony. What day were the most of flowers sold in the United States in our history. Richard you have any guesses. Well I know that they I know him as far as I bought in a single day was on my wife's birthday so definitely had that. Her well but it's only everybody share that birthday that probably be right. Then be fine him and I'm gonna guess because I don't know for sure I'm gonna guess. The Bennett was a any major event like 9/11 that's a really good. Guess I would have also probably guess that for some I read this I actually was thinking. Maybe when the most flowers percent you're kind of along the lines of the the right lines in terms of a tragedy but on a different spectrum a different scale. The correct answer is elvis'. Death on on the day Elvis died everybody across the country was sending flowers to Graceland and it ended up being the highest flower sales of all time. Oh my god would you ever guess that if you had a hundred no Arnie and I'm a big Elvis personally fan but for a celebrity. Receiving flowers all across well I'm I'm sure it was from women it in that wild again. Talk about the impact of a star no doubt about it. Yeah I didn't send flowers are his way there was 97 Yates cars kind of young so there's no way you involved I would talk to our anybody at this stage in my mind that's very threat that that came years later when the lights came along right. At sun not a little longer and hello Ali they've put it did even so and find flowers is never been like top my list. Yeah interesting trivia question for the week yeah through thought you'd enjoy that when. Well let's get back to the financial talk here on the show this is the financial symphony after all and we try to. Harmonize your financial planning a little bit easier make it easier simpler for you as well. We're doing now today show by educating about some of the important terms to keep your eyes out for an. Something that's been picking up in popularity over the last couple of years it seems Richard. ET f.s ETFs. Exchange traded funds what do we do know there. Yeah these funds have been around for almost 25 years now believe that it's gone by that path so. I you know I am ATF and exchange traded fund is nothing more than a diversified collection of assets. It's kind of like a mutual fund but it trades on an exchange like stock. What I like about him you don't have to wait until market closed by ETF shares or meet an investment minimum. As you would with a mutual funds or ETFs can be traded throughout the day. And you come by as little as one share and I like that concept that works well for a beginner investors especially. And while mutual funds especially you know those those really active wanted to have a turnover ratio of hundreds per cent. You know they can dish out on wanted to capital gain distributions and you know extreme treated fund almost never do. We TF sir extremely flexible. You know again for those individuals that don't really know what they're doomed they wanna focus on the sector let's say they wanna focus on. The mining sector or precious metals or. You know maybe a specific country something like that they they have the ability to do that with the PS. You don't need a lot of money to begin investing in the Kia from you can buy one share earnings so you know with SLV which is the iShares silver trust. If you want to buy one share that today comprise pick it up for 1415 bucks you know so. And you know these are passive investments that track larger indexes. So they are favored choice of those individuals that are just getting started. They're easy to use their low cost America. Sufficient through my I kinda like he kept myself. Again there's there exchange traded funds and yet it's hard to believe they've been around that long I kind of need to stop referring to them my guesses the new hot thing but I suppose they picked up in popularity and the media coverage over the last couple years maybe. Other trillions of dollars in he PS3 now yeah trillions. Lots to think about when it comes to those opportunities to those products source we like to call me on the show to those tools are they good fit for your portfolio will now be a yes for some people in the know. For others one more term let's cover here on today's show obviously were not covering every single term. We possibly can here today Richard but a couple of the important ones that would like to address from time to time this one is at risk. A version or maybe you've heard it said are are you risk averse even asked that question. Before but what is risk aversion how do you utilize that term in your offices. But I know risk averse investors. Had investments whose values are relatively stable. You know growth is limited and there's no risk of loss like banks Phoebe you know there's a lot of TVs out there and the reason for it is because people at risk for. The opposite of being rich Cooper is a risk taker and this is an individual willing to accept greater risk in hopes of a cane and a higher return on their investment. And remember folks investing in is all about risk and return you know the more tolerant you are risk. The more risk that you can take which will hopefully translate into a larger profit. On the other hand a risk averse person typically is placed in more conservative investments that are more secure but less profitable. But for most of you listen to temptation. Is to focus on return that's what people do better if people don't feel good returner portfolio they think that for some reason. That the advisor may not be performing and as expected. But it's only because emotionally we have a tendency to focus on return but listen. You can't control the return I can you can no one can. I you can control for risk but you can't control for return and it's difficult to succeed. And anything really when you focus on things that you cannot control you know risk is the control factor in your retirement plan not return. And there's a definite difference between being risk averse and manager risk. You know the reality is is that the closer you get to use your savings are the sorts of and come in Obi and risk averse makes cents. It's everyone is natural inclination to avoid losses nobody likes to lose money Macon water version of powerful emotion. In fact launchers are twice as powerful psychologically is gains from risk of mershon or lost her version is a concept that addresses how you react. In a situation. With uncertain outcomes and fortunately there's all sorts of advice floating around when it comes to planning for your retirement. But not all advice is created equal and some of it is just plain wrong. Even so an objective review of your retirement plan is commercial since the decisions you. Make in the years immediately before and after may have irreversible consequences. And this is why I am really passionate about you being well prepared for retirement. And I want to extend an opportunity you right now to help you be sure that your well prepared. Amare foreigner Koppel Mary financial review to anyone call the next fifteen minutes and has at least 200000 more safer retirement. I'll talk about your retirement income needs. Where that income is gonna come from how he'll outpace inflation pay as little as possible and taxes and make sure that you don't outlive your money. Now you might say I don't really need to call in the next fifteen minutes and yes that's true. You could probably take care of it next week or next month but here's the deal I mean coaching people on retirement planning for a long time. And I've learned that it's really easy to procrastinating get distracted. So if you don't start the process now there's a very good chance that you're not gonna do it at all. So the first coach and and I'm gonna give used to urge you to take the first step right now. For almost everybody that's the hardest part from there it's not painful process to appear ready to finally get a plan in place give us a call right. Now and then number once again is 806465996. That's 800. 6465996. Make sure that you are on the right track to get to and all the way through. Retirement it starts with finding out where you stand and then what needs to happen to accomplish your dreams your goals your wants in retirement and Richard pitcher LE. And his team the Carolina retirement resources will help make that happen but it starts with view and a conversation and you have to pick up the phone and dial 800. 6465996. To begin. NATO and attend your financial statements and all your portfolio accounts in those kinds of things standing by. All you have to do is call and express your interest in. Having a one on one review with Richard pitcher Elliott and his team at Carolina retirement resources with offices and hunter's bill and in Rock Hill as well. 806465996. Is the number to call again get a complimentary review when you dial. 806465996. That's 806465996. Richard Graham time for this week's show there's always a big thank you for joining us and look toward another conversation. Next week. Information is for illustrated purposes only. And does not constitute tax investment or legal advice always consult with a qualified investment legal or tax professional before taking any action. Investment advisory services offered through Brookstone capital management LLC an SEC registered investment advisor.