Hidden Gems

Financial Symphony
Saturday, August 19th

Discussing 'hidden gems' within the financial world and musical world.

00:44:06

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

No financial symphony. Helping you can. Harmonious financial plan and getting your portfolio in two weeks so sit back while always strike up the the financial simple it's starts now. Thanks for joining us this week on the financial symphony how mortars were halted joined as always by Richard who surely the investment advisor at Carolina retirement resources serving youth here in 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 financial future for retirement and beyond. Richard thanks for being here this week how are you served under great walker hurry you're doing very glad to hear that I am well I am 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 in investing in karlson and answer 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 rent 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 of fire marketed and you know buying or renting end. 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 hone in. 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. And 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 Lance 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 song. You know leaky roof. A new appliance. You got a cold taken care of a 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. Pay a homeowner association fee. Which seems to go up on a regular basis and then there's always the annual property tax so you know wrench in those are all someone else was 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 its flexibility but but often many of you rent. Do show 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 could spike Doran economic upturn. You know seniors who lost to live on a fixed income. Are certainly going to be more sensitive to those spikes so it's important for free to choose. A rental home in and a place where prices have remained relatively stable on the other hand. Owning a home pass from real advantages you know he can do whatever you want if you need to rip ripper on the wall without the carpet remodeling your. The way you want to remodel and I'm prepared home for your for your usage. You can do that with your home on and and more often than not I'm not always but typically. You know over time depending on your time horizon homes will appreciate in value. So you know I think it's a good idea to when I like that concept myself. On the beauty of plenty in is there is no lock and I I like the flexibility like the freedom of that. If the rents go up too much where you're at then no you simply move. And so. There there are some advantages to rent ten and I kind of like that 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 a beer guy's demanding it's just going to be different for. Different people obviously sub through a 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 there are officially off the payroll yet and got a dollar and entertain themselves that. But the bottom line is 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 clarified. Is are you consider it life insurance for death benefit. Or are you considering life insurance for asset accumulation tax free growth you know. Traditionally. Like 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 a nest day. There appears 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 spouses receive an alike 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. And you know life insurance can sometimes be an estate planning cool you know on if you have a form. Let's say and you wanna keep it in the family or are your business owner. And you don't have enough liquid assets and 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 there are still paying off large launch so. If your mortgage is a 1607000000. 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 over ensure unnecessarily and that situation. You know with that said though Walter in you know the biggest lie and modern finance is that put in 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 provide significantly more benefits than a 41 K or mutual fund. 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 adapt 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 is possible it delivers growth when market is up. Protection when the market drops tax free safe hands 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 task at best 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 and 80646. 5996. Call Richard that number serving you hear throughout the Charlotte metro area 806465996. Helen Cornelius says is an okay to have several different IRAs or should I consolidate. I have count them seven accounts seven ironies. Of 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 gone mushroom. 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 and a 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 well a lot less paperwork with respect organization. And and larger accounts and in a more money happened these accounts. Yeah you get break points so the fees could actually decreased more money in the account. However there's one exception to combine in diaries. And and that is if the higher rate 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 diversifying. 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 know they do not invest your diaries and precious metals were realistic. If you want to invest your hiring in those asset classes you would have to have an established relationship with a custodians that allows for those passes to be held in your higher rate. Or he decided to purchase an annuity. Was 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 oil Dreier raised. By except for the Roth IRA in one account. It may not be in your best interest to do so obviously they're 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 here in the 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 planned a however is a great story but haven't won at Fitch viewed your specific needs. For your retirement is the only way to help assure you retirement years will be a really want them to be. Don't really don't balls down to fact that there's a number of different pieces of financial puzzle and they all made to fit together from 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 I anyway and 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. You 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 in taxes down the road by planet proactively now. It would be happening come plan in place to be sure that you aren't in danger run out of money if you end up 1130 or more years in retirement you do you have a plan to address inflation. In future decades as the cost of everything continues to rise. 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 Elliot take advantage of a complimentary financial review. 806465996. That's 80646. 5996. Richard has offices and hunters Phil and in Iraq still searching 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 they treat your making the right steps here at the outset 8064659. At 96 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 plane needs to be customized to your individual needs. 806465996. Is the number to call. Again for this complementary review all you have to do was style map 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 800. 6465996. 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 a wide these are important to note ritual break at all down force coming up on today show states it. Wherever you go there I had. Following lurking stinking alone continuously nibbling away your hard work. Did he. Need. I. 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's see if we can eliminate those pesky. Didn't see. I'm. Come visit with your financial maestro and Richard materially sipping the Charlotte metro area. Call 806 point 65996806465996. It's time for another musical connection we're we blend the worlds of music and finance together. Here is a friend of the show financial advisor and musician mark glory we have Ron stylists. It is time now for another musical connection the financial symphonies so mark Lloyd did today let's talk about hidden jams. Engines in the financial world and the world of music which both you and I absolutely love. Hidden gem like to throw matches not really hidden but it's a much under appreciated band as far as I'm concerned. Okay how much little feet. Well this popular I mean that you would you would hear that more on FM radio back in the day clear I don't I think they should be in the rock roll fame because they've influenced a lot of people. Lol George was amazing. And but they'd be you know they don't really have that widespread appeal it so many bands out there do but. This guy has been so talented over the years to what is your favorite little feet track. I would say fat man in the bathtub. OK there was a fan man. In the band to way to get up and get a little bit too close to home. Thanks a lot. Hasn't actually about as they. With let living they would let me tell you I think it hit them when you said hidden gem in the music industry of public that they can about a bait and maybe that is not as as you know famous. Outlets thinking more about. The behind the scenes hidden jams on how songs are created a public come at the dig in deeper maybe this is my financial background coming in looking deeper into the into the creation but you know and into today into how songs were created in and and and designed for it but you know right now I am getting a super big fix on The Beatles channel on X and series this area. And I'm not only are they playing in the hits but they're playing other versions of the and it's. Back when they were demos and they're playing in the demos of the songs. And I heard like like on the white album rocky reckoned with was one Paul McCartney song I heard like the eighth debate can. All rocky raccoon and the other day and it didn't sound anything like the record but is really a little bit. It live is it more like hills country bluegrass. And I'm like this this is so cold and I'm getting into some of the early Beatles stuff and and in some of the influences that they had. And to me that's hidden kids I love the history of music. I love going back and looking at how songs were created back in the recording process and I could just sit there and watch hours and hours and hours or listen hours and hours and hours of that just to get more knowledge about it to me that's the hidden gem to be. Yeah well maybe you can tell us about a hidden gem in the financial world may be a strategy you're a tool or. An idea that most people don't know about and certainly don't implement let me throw one that's. That's an easy one. Life insurance. When someone thinks of life insurance you know that in those cases it's like OK I have a policy it may be worth 500000. In May be worth the million dollars whatever and it's it's it's a death benefit that with by should die my spouse or my family inherits this money tax free especially if I'm young. I've got to you know this money may be used to make up lost in calm because I prematurely died or maybe I have debt like I need to pay off more you know my life or spouse would need to pay off a mortgage. And we would need to have money to pay that often pay the bills off to get but the kids through college and he thinks that's what life insurance is for. What you know that when you get closer to retirement life insurance could be a very valuable pool. In your portfolio. And explain to me DB two examples how. There are policies today and these are what we call permanent policies that are building cash value and let's say that our death benefit is face amount is 500000 dollars. There are policies out here today that is far I needed that happened to that 500000. Dollars. They use it for long term care while I'm alive I can do that. I don't have to die to get to the death benefit it's called a chronic illness writer. And I've got clients today. Instead of buying an expense of long term care insurance policy and you know you run the risk that if you don't lose you don't use it you lose it. You know and we're seeing massive rate increases on some of these long term care policies. I'm seeing today where this has been at a viable alternative to some books. Hey we know two things in life for certain Ben Franklin's death and taxes were going to die Wanda. So if I can have this death benefit that I can set aside for long term care but a farm before one of the fortunate ones not the needed. I can do may almighty my family's going to inherit that tax free. Still we it's not like if we don't use it we loses. And that has been a great option. For some folks in their in their financial plan life insurance of that cash value inside it there can also be used this tax free income to. And we can explain to yet how you can draw tax free income. From a life insurance policy could be more like a brawl by our re alternative because that cash value is counted as alone it can be withdrawn. Tax free. So you know vote all the folks how to get in touch with a bronze to learn more about that kind of strategy. Just to get the following call 806465996. That's 806465996. Beaten got a complementary review of your financial plan. Just call now wanted to take advantage. 806465996. I know it's only rock and roll. And retirement. But I liked it stays safe for the financial symphony. You're listening to the financial symphonies won't personal here alongside Richard who can rally Richard is your local financial maestro right here in the 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 better plans for retirement and beyond Diaz offices and hundreds bill and Rock Hill as well. 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're sort of a moral swamp on the background you know it's this 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 your five year urge you know 78 yours now from retirement. You know you guys are shifting gears and if you have the ability. To do to perform an answer distribution of might be to your 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 am here and it's a lot from people to get nervous again. You know because they remember those two 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 years old when that happens so it was it was okay had plenty of time. And now hopefully you recovered then and the crash of 2008 came along. And you lost then as well but you are still only 54 years old and you still have decent 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. Betty come to be dependable and you want to come in every single month without fail no matter what's going on the stock market very economy. But if you were lose 50% of your 401K value again. Between now and when you retire that would hurt worse than a sharp stick in your. 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 are income will be when you retire in five years is Paramount. To do that you'll need to look at options outside of that 41 K plan so if you're at least 59 and a half years today. And you have a 401K. You were likely able to perform what is known as an in service distribution. That will allow you to roll that 41 K balance. If you your own self correct dire ray while you're still working in which you can then invest as you see fit. These insert distribution may also work for other types of plans for his fourth three B before 57 so you wanna talk to. Someone in human resources and an asking appropriate questions and get the appropriate answers Richard what about a Roth. Conversion Ethel a bit different than the in service distribution. It is it is you know if you're like most people you know you've saved the line insurer of your savings in your tax deferred accounts pictures of 41 K. Or Meyer ray. Or even a taxable account you know so in my opinion is generally good idea. For most of you to consider including a rock firing in your overall retirement income plan to generate tax free growth but also for manager taxes and retirement. Plus withdrawals aren't mandatory. During your lifetime with Roth IRAs which obviously allows. These assets to compound over a longer period of time. And I mean I mean who doesn't like tax free Walter I mean everybody likes tax free now Rauf diaries are free from all taxes. And withdrawals do not count toward the income commercials that determine whether your Social Security benefits were cut. They'll listen I think most of us realize. That our government will soon need more revenue. To meet its commitments and will have no choice but to raise taxes on those of you. That have worked hard. Sacrifice. And saved and play by the rules and keep in mind. That as for one k.'s and and your higher rate grows so does the government share. But his share can change you know Uncle Sam can increase this year whenever he needs more money. So if you believe that taxes will be increase in in the future. It makes sense to pay taxes in today's low tax environment so you can generate tax free growth and tax free withdrawals. When taxes are likely to be higher in future. Since 2010. Anyone could convert your eligible artery access to a Roth higher rate regardless of income or marital status so in the right circumstances. Converted from a traditional wiry to a robbery. Can be useful strategy to transfer taxable dollars today. To tax free dollars tomorrow. But you don't need to convert all of your tax dollars. To a raw you know you'll want to keep enough dollars in tax deferred account. So that your arm d.s equal your standard deduction personal exemption. The rest should be convert your rough higher rate in a manner specific cure situation but remember. Any time you complete a Roth conversion taxes will be due. Very important information on today's show of the financial symphony helping you learn a little bit more about the financial world. Getting better educated in the process Richard preacher Ellie is here with this investment advisor at Carolina retirement resources if you wanna get in touch with them. Again that number to call is 806465996. That's 800. 6465996. For talking about different financial terms and and distributions and conversions are certainly important but. 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. Play in a diversification. For most people's perspective what they did talk. It's pretty synonymous with and 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 equivalents and that's the Wall Street model the idea behind diversifying your portfolio is so you can reduce risk. False 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 and an aggressive investor what does an aggressive investor why you know why he's gonna probably allocate. 80% in equities in 20% bonds. Vs a conservative investor. Who might have 80% invested in bonds. And 20% in stocks you know this is how Wall Street position your 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 of 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 in 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 door in your lifetime. And it's important that these financial terms are understood to help the 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 a 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 so all worked just as hard to help you protect and grow it. There are wide variety cool and services available on a 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 answer your financial challengers and objectives. Give me a call next fifteen minutes and all worked together with you to put you on that route 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. That a pitch in touch with local financial maestro Richard dutrow rally. 806465996. States in this is the financial symphony with Richard future. Prior to a performance it's essential that all musicians giving team. Without proper tuning the performance suffer and the sound. It won't be music to your years. Tuning in the financial world is equally important to make sure your financial plans pitch perfect by calling today. Come visit with your financial maestro Richard Richard Elliott. Serving the Charlotte metro area. Call 806465996806468. 996. The financial symphony is reaching its crescendo at your local financial maestro and coming up next. Thanks for sticking with us today on the financial symphony number control alongside Richard. Naturally investment advisor and Carolina retirement resources serving you. In the Charlotte metro area reach out to Richard by calling 800. 6465996. Again that's 80646. 5996. 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. And we're doing now today show by educating me 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 fast so. Yeah 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 is 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 want 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. Meet Kiev sir are extremely flexible. You know again for those individuals that don't really know what they're doomed they want to 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 investment 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. No 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 them their tax efficient so I'll. I kind of like he kept myself. And those 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 in media coverage over the last couple years it. Another trillion 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 them here on the show to those tools are they good fit for your portfolio will now be yes for some people in the know. For others this is award speaking of things in the news. That we heard a lot about if you are watching the national news or probably even your local news any time over the last several months. He kept seeing this work pop up. We might have heard the letters DO well or Department of Labor and then you would hear fiduciary or the fiduciary. Rule it's a really important. Term to know but it. Can kind of be hard to grasp sir some people Richard because I guess it gets utilized but I'll stop talking you tell me what fiduciary means and what we need to know about it. And I think most of us when we hired someone to service in some capacity. Who we trust them and we expect that they're gonna do what's in our best interest but that's not always the case you know but he sure is a person. Who must place the clients I mean must is the keyword place the client's interest ahead of his own. You're pretty sure he's must disclose what their fees are you know how they're compensated. Any other conflicts. Someone's decision to use their services so investment advisors. That are registered with the sack the security exchange commission. Their fiduciary and they have been for quite some time. Until recently stockbrokers and broker dealer representatives. Who provide investment advisor who were regulated by you or are regulated by. Camera and are subject to a suitability standard of conduct you know their investment recommendations. Need to be suitable for investors. But those advisors were not required by law to act in their clients' best interest. You know for example. The brokerage firm Edward Jones settled the charge filed against them by the sack. In the sex and Edward Jones failed to disclose revenue sharing agreements it anchored in which seven mutual funds instead. Of disclosure and these free arrangement some of the advisories that are drones. Told customers of the fund were chosen because of their exceptional performance and investment objectives. You know in a client broker relationship the act of withholding information from a client is non intentional still raises the flag. Of why it's not been disclosed in the first place. If these registered representatives were held to a fiduciary standard they would have to fully disclose the revenue sharing agreements with you and now with the department of labor's new produce sure your rule all financial professionals who work with retirement plans. Or provide retirement plan and advice have been elevated to the level of a fiduciary. Bound legally and ethically to meet the standards of that status. While the new rules are likely to have at least some impact on financial advisors. It's expected that those who work on commissions such as brokers and insurance agents will be impacted the most you know fiduciary. Is a higher level of accountability than the suitability standard cream usually required by brokers. Planners and insurance agent you know who work with retirement plans and retirement accounts of suitability meant. That if an investment recommendation met her clients define main objective. It was deemed appropriate. Now all financial professionals are legally obligated. To put their clients' best interest first rather than simply suitable investments for them. And it's a really good thing to think about what is your advisor of fiduciary. And you know are they truly embodying that spear not just by the letter of the law but the spirit of the law to I think. Is really important and and sometimes I can be hard to put your finger on. And so it's interesting debate for sure and and has been waging. In government and across the country for awhile now. So again that's fiduciary one short 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 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 at 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 too focused on return that's what people do better if people don't feel good returner portfolio they think that personal reason. That the advisor may not be performing in 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't you can't no one can you can control the risk. But you can't control the 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 rich traverse and manager risk. You know the reality is is that the closer you get to use your savings at the source of it and come in Obi and risk averse to make sense. It's everyone is natural inclination to avoid losses nobody likes to lose money make a long after version of powerful emotion in fact. Launchers are twice as powerful psychologically is gains for rich perversion 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'm 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 world prepares. I'm off for a couple 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 here'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 encourage you take that 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 in 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 here wants in retirement and Richard pitcher Allie. 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 nets have your financial statements and all your portfolio accounts and those kinds of things standing by. All you have to do is call and express your interest in. Having a 101 review with Richard pitcher rally and his team at Carolina retirement resources with offices in 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 rad time for this week's show but is always a big thank you for joining us. And look forward to another good conversation. Next week. Thank you over we appreciate the solid center for future really your local financial instrument a mortar stroll thanks for tuning and noble thought to next week on the financial something. 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 overthrew Brookstone capital management LLC an SEC registered investment advisor.
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