What Can We Learn From Eric Clapton, Paul McCartney and Jimmy Paige

Financial Symphony
Saturday, March 10th

Answers to investment questions and what can we learn from the careers of many rock stars.

00:44:05

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

No financial symphony. She. Harmonious financial plan and getting your portfolio in June so sit back slowly strike up the the financial simple it's starts now. Hello and welcome to the financial symphony thanks for tuning into the program today. Mark Killian hear your co host alongside with Richard coach surely. Investment advisor representative Ed Carolina retirement resources. Serving you right here in the Charlotte metro area. Richards got an office in hunter's bill North Carolina and Rock Hill South Carolina and and you could reach out to Richard any time by calling 806465996. Pretty easy number to remember. Where you can jot that down and call when it's convenient for you 8064659. 96 call that number get yourself appointment on the calendar. And command for no cost or obligation consultation with a Richard talk about your specific financial situation 80646. 1599. I'm doing too bad hope and that we see spring we know we're getting Natalie in the does bring forward here's happen and pretty soon. No just happened right now we're getting a lot of a lot of growth. The FB Aaron he's coming out. It's hard to bill would be nice if we can get some steady temperatures that's all I'm asking. Could exist and he is just a couple of days is that he temperatures. But anyway I hope you had a great week we got a great show lined up in that will dive right in and get started as we usually do. With questions that have been submitted into the show from around that area and we got a couple of good ones for you today Richard Tom and Iraq hill. He has questioned he says this is pretty cool too he says Richard we have a lot of big travel plans once we retire. Including destinations to all seven continents that's pretty sweet. Do we need to plan on having even more income into retirement then we probably have right now we're out. That depends of course you know. That's a fairly common theme with a lot of retirees. You know I hear them tell me on a regular basis that they. One of the things they wanna do after they stop or canoes to travel more frequently. Investigate the world and you know you're gonna need a plan to have that because the reality so. Anyone to get as specific as possible about those travel plans. You know it'll probably make you more likely to prepare in advance. But it'll also allow you to travel rather than just talk about it so those of you who have a plan a more likely achieve that goal. First your plan should take care of all non discretionary obligations and your budget like house and food transportation and health care cost. Can I call this and come here required and become and you want to see come to be reliable and predictable print target your retirement years. This is the income that your gonna need to remain comfortable in retirement. And then second your plan should include what Irish virtuous lifestyle and come. Is this income that will cover your travel expenses and this is going to be different for everybody you know that to combine your required in. And your lifestyle and income constitute your total determining income. And the strategy employed to generate each type of income and financial cool views within each strategy are going to be different so. So the plan process first began with your record you come because providing for your comfort must be assured before planning for fun. And the opportunity for growth once you've determined your record income than the planning process we'll shift. To that lifestyle income. I'm in this specific strategy for creating your lifestyle and come again it's going to be different. The new plan you have free you're required income unfortunately most people are not preparing for life after retirement let alone travel you don't plan and is essential to realizing your retirement dreams. And consulting with a retirement income planner can point out critical issues that you need to consider and then offer guidance to help you achieve your goal. Yeah you know when I was reading this question Richard I was laying in all seven continents but they can't be cheap I imagine a trip to Antarctica is not. It's not on the you know below side than again maybe it is is that what he goes right it's a that's where I'm offline and it just a flight to Europe yet and now they're round trip flight to Europe you're looking there probably. You know five grand dam and an Asia and so on so forth was also in play and so out that Tom and take lots of pictures and send them into the SharePoint U kid that that's pretty great. But certainly I would deadly talk with the make sure that if you don't have a plan in place of course we don't know if you do because you don't mention that. That she certainly sit down and talk with someone to make sure that you are adequately. Planning for such a you know a large travel plans are really great 806465996. If you'd like to talk Richard about 8064659. 96 and Leo in hunter's bill. He says Richard is it wise to have a trust as part of my financial and estate plan it seems as though a lot of people I know have one. Yeah you know. Yeah I think first you need to understand that there are different trust your several different trust depend on what you're trying to retrieve you know most of you. It claimed to have trust usually have they were vocal or trust commonly called a living trust. Which is in effect of a state plan and cool for important costs and hassles of probate. For preserving privacy. And preparing your state for the ease of transition. To the next generation after you die and fortunately. Most people that purchased the living trust never really fund the trust I don't see that on a regular basis. And if you never transfer ask this here trust and the benefit of only wanted to meet. And some assets to simply shouldn't be in the name of the trust anyway so. Assets with main beneficiaries you know such as pay on death bank accounts. A transfer on death investment accounts. Retirement accounts you know IRAs Roth IRAs annuities life insurance policies all of these main beneficiary products will pass directly to your beneficiaries without them don't through probate for that reason many people don't title them in the name that trust but in some cases it makes sense to name the trust as the primary beneficiary you know for example if you have a child. Named as a primary beneficiary on a life insurance policy and that child is under the legal age when you die. You know guardianship may be necessary to hold proceeds but within your remarkable life insurance trust is the beneficiary. You can specify exactly how and when that monies to be distributed through the trial. And don't forget you know create a notre us. Doesn't get you out of writing a will because assets in a living trusts are not safe from creditors even though they don't go through probate so. When considering a trust always seek professional advice to make sure your making the right decisions for yourself and your loved ones. You know on a state plan an attorney a financial advisor you know they can provide you an expert advice about whether trust could be useful component in your long term financial plan. Well thanks for the question Leo we certainly appreciate it we don't tell get a lot of questions about trust from time out on here all the programs so we certainly appreciate that one. I definitely would say you know don't just consider one just because people you know have one that's certainly not the way you wanna do you wanna sit down as Richard said. And talk with a qualified professional 806 or 65996. 80646599. A six this is the financial symphony with Richard who are really investment advisor representative. At Carolina retirement resources here in Charlotte metro area final one for you this week Richard Italy in mint hill she says. When should I start to focus less on growing my money and focus more on protecting it instead. A plan to retire in two years and the volatility of the market makes me nervous. He had you know Emily when your two years out from retirement and a significant market losses can be extremely detrimental. So you you know you can't afford any huge mistakes here so gonna happen to a lot of people in 2008. Those individuals ahead 41 case that we're in a 2010. Target date fund unfortunately lost significant amount of money and 2008 and so that probably changed their retirement plans two years down the road. Don't you want to preserve the assets at this point in time in your life and the reason for that he's he's we call that time period. Prior to retirement and that time period just after retiring we call that the financial red zone you know that was a term that was coined by credential. Describe the period that we just discussed. In football you know when you're close to the gold mine you know you want to wrap up the ball would two hands you know if you drop the ball in the red zone or even in the end zone. You know that can be the difference between winning or losing the game well and retirement those are critical years. You know immediately before and after retirement and they are extremely vulnerable to adverse market movements so when you plan for retirement. You know there's a whole lot of things that are out of your control you know no one can predict what the market will do over a period of time you know inflation. Health care costs how long you'll live I mean these are all unpredictable and out of your control. I in these uncontrollable factors you know there are real challenge for you retirement and your retirement will succeed or fail based on how do you prepare for these challenges shall. Unlike your work and your when accumulate and assets was the priority. Of the distribution of your assets from retirement you know they're they're going to be subject to sequence. Of returned. In the market would no plan to follow. You know you could end up strong way to much money early on bad market returns Mayer wrote principal and then unfortunately it could end up leading to a situation where you run out of money in retirement. You know the sequence of return risk is frequently overlooked by both retirees and their financial advisors. VMware of the dangers associated with this reform plan euphoric. Can be invaluable you know so discussed in the sequence or return Rick we cured by her maybe the most important money discussion you'll ever have. You know it's just natural that once you retire you know you go to a major transition when you enter retirement at the focus. Of your working years is primarily on accumulating money. In retirement to focus shifts to being able to pull that money out while still preserving it and make it and laughs you know early declines in the stock market combined with ongoing. Or overworked roles that's gonna lead to run out of money. So it's important very very important that you plan accordingly so right now I'd like to offer you the opportunity come in for complete financial review and I'll offer this review for free to. Anyone who has 200000 dollars saved for retirement you know I'm really passionate about making sure that my clients have all their bases covered no retirement plan and you know for instance how much risk. Are you taken your portfolio. And is that amount of risk appropriate for your agent for the return mature actually get it you know what about tax implications you know. Is there a way to save money on taxes down the road by a planet crock of lead today. You know do you have an actual income plan in place. You know you you want to be sure that you aren't in danger of running out of money if you end up Livan thirty or more years of retirement. Do you have a plan to address inflation in future decades as the cost of everything continues to Iraq. Obviously there's a lot we need to discuss and we found that most people just haven't plants early enough to address these issues. Again this review is complimentary if you have at least 200000 dollar estates retirement. But the calendar does fill up quickly should go ahead and give us a call right now so that we can be sure to get a spot rigor Prius. And that number is 806465996. At 80646. 5996. To get himself on the calendar with Richard Burgess really at Carolina retirement resources to wanted to take advance that offer. Get on the counter and sit down talk about your specific unique financial situation. 806 or 65996. This is the financial symphony or come after that. It's remarkable sometimes the emotions and feelings music brings to our daily lives it was there for graduation. On her wedding day. And sometimes even resonates on our darkest days. Unless you look back on life and remember the music strikes yeah. Take a moment to look forward to your retirement. Limit your time ripe with uncertainty. Over the time of Julie. If unions are now when you don't think your current plan deserve that kind of celebration when you reach retirement. Think it's time to get a second opinion. Come visit with your financial my strength Richard materially. Serving the Charlotte metro area. Call 80646. 996806465996. You're listening to the financial company that show that makes your your financial plan at that perfect pitch. Well you back here with us on the financial symphony with Richard who drilling investment advisor representative. At Carolina retirement resources thanks so much for staying tune into the program today. If you're just now joining us will command we are talking about the world of finance and retirement with Richard procedurally. If you'd like to reach out and if you have questions about your own specific situation your own retirement plans give him a call get a second opinion. If you if you like and that's 806465996. Again 806465996. In the got a plan in place and you just wanna. Get seconds and eyeballs on that plan make sure that it's working well Richards a great resource for that. 8064615996. Richard let's break up a harsh language your money used a word the and that's that I don't worry a CC that's annuities that's a we're not gonna say LA things you can't stalemate here. But I was thinking about this you know we don't talk often about variable annuities specifically on this show. We use a don't have a lot to say about them and certainly not much that's nice. Is that. We don't know. Let's keep in mind at all. Advisors. To bring your personal experiences devices to the table when they communicate with potential clients and clients. You know I think the largest drawback to a variable annuity is the cost. I fees associated with many verbal new fees can range. You know as high as 6% to 11%. That speak and that many of these products are sold. Unfortunately using deceptive sales sick he's promising guarantees and aren't properly disclosed so. Another drawback is the that the sub accounts mutual funds and very well known as they're likely to be proprietary funds which. Which means that they may not be the best mutual funds in the marketplace. And research indicates that these sub accounts tend to underperform the stock market indexes over time you know nevertheless the managers of these sub accounts you know they're compensated very well these sub account fees can be as high as 2% per year and some are even higher than that you know if your own a variable annuity whose average sub account fees 2%. And you own that terrible on duty Doran a lost decade when we had an average annual return of a negative 1% under your Barrymore nudie. Lost upwards to 30% over that ten year period of time so. You'll variable annuities are not safe money products as the value will fluctuate with the market they are not risk free. And they certainly do not guarantee your rate of return but a variable annuity is just one type of annuity you know we also might consider. Educating yourself on one an immediate annuity is what do fixed annuity is and what a fixed index annuity is. And the primary reasons. Most of you buy an annuity in the first place is for guaranteed income and first safety. Variable annuities again are not safe and regardless. You don't want to buy an annuity to buy an annuity you wanna find a new deal only if it is that a -- solve the specific problem in your retirement plan you know I personally don't offer very blue my clients because in my opinion. Other inappropriate for both retirees you know what I try to do is always match my clients cold weather with a financial product that best achieves that goal. And you know Larry Paul Moody's typically don't meet that criteria so in my opinion they make sense for only a small fraction of the population. This is the financial symphony was Richard through drilling we're discussing variable annuities here on the program today. 806 or 65996. If you have questions or concerns or like talk of Richard about that 806465996. Richard you mentioned some other types of annuities and aero with other options available that maybe are potentially a better fit. But why are so many people invested in variable annuities. We know very little new leisure classified as a security so in order to sell them an advisor will have to pass feeder series seven. Exam or a series 63 in a series six exam so. You know most variable annuity sales are made by advisors. They're affiliated with brokerage firms and these firms are well rewarded. For so very Bourne movies in part because of their commissions and in part because those commissions don't typically fall. Has invested amount rise the way they do with money you put into mutual funds so. You know most brokerage firms they limit the sale of annuities to you very blown duties ignoring the other types of annuities in the marketplace and many register represented news at brokerage firms you know they have a license to sell very delivery but they don't have an insurance license allowing them to self fixed were fixed indexed annuities. So they naturally gravitate towards so unbearable Moody's even Norfolk product may be a more suitable for the client. You know registered securities such is terrible news can only be offered and sold by friend run registered financial professionals. Or persons under their direct supervision you know these advisors are contracted with a brokerage firm. And are only allowed to sell these terrible Moody's and other words they're not independent of the brokerage firm. And the brokerage firm decides what is suitable and what is not in my opinion haven't licenses required to recommend is so both insurance products and securities. He's always gonna be in the best interest of the client but you you will only received that type of scrutiny from an investment advisor or investment advisor representative. Who is affiliated where registered investment advisory firm. So if you're being offered a variable annuity or a few. Own a variable annuity and you're not completely sure you understand what you have you know go ahead and give us a call you know there's no cost for this visit is simply a chance to get some of your questions answered. And you know many of our radio listeners to go through this process you know they don't become clients but others do. The process isn't designed to turn every listener Andrew Klein it's just an extension and of the education that we try to offer on a show but we can't give specific advice for your unique situation on the radio. So this is an opportunity for you to get some answers to some your specific questions. And maybe even answers to some questions that you didn't even know needed to be asked choker one of the next ten caller for the at least 200000 more safe retirement. I'll make some time on my calendar to visit reviewing give you this comp memory financial room. We'll go ahead and make that call its 80646. 15996. He's number two remember go ahead and take the twenty seconds it'll take you call right now. And get yourself on the counter leave your contact information and Richard and his team we'll get back at the end gates is scheduled for that complementary review. 806465996. At 806465996. Again. 8064659. 96 this is the financial symphony with Richards literally investment advisor representative. Right near the Charlotte metro areas to go ahead don't procrastinate give him a call at Carolina retirement resources and get started today 80646. 599. Why would your conversation. Much like the musicians fine tuning its mistakes and their instruments or analyzing the acoustics of early in the forum performance. Your financial maestro nineteen purify need to claim to adapt to the ever changing financial world. Don't settle for an advisor who offers a sales pitch and also a plane and make sure you've hit all the right notes in your financial plan. Come visit with your financial maestro of Richard Richard Elliott and having the Charlotte metro area you call 80646599. 806465996. Bullet time part in the news segment here on the financial symphony. Like taking a topic or headline that's making its way across the new platforms or on the Internet. And discuss that with the purchase food to rally investment advisor represented that Carolina retirement resources. Richard you know there's been a lot of talk in the media here lately with the tariffs or you know the NAFTA thing dollars. All the conversations going on with the potential trade war what does that all mean out in a short amount of time that we could talk about a on the radio here. But do you see any implications for our listeners are investors. And I you know these proposals. They they seem to have some people word more so on one side of the aisle many other good. For the people in Pennsylvania that. Workers do factories they're kind of excited because they see your chance of more jobs bigger paychecks. But you know again others believe that tree protections. Might be a problem while others believe it could be a big lift to domestic steel industry. But recently strong dangled the possibility of Clinton those terrorists if NAFTA renegotiated the terms are more fair rule the United States right so. I think this is just standard operating procedure for trump. He'd he does this on a frequent basis. It's not new I mean Obama applied terror to the Chinese tires you know before that bush. Instant data tariffs on foreign steel products and and Clinton did the same you know and so. And then you look back at the Reagan administration you know over imported cars in 1980 so I personally think the administration's right. To want to have a strong steel and aluminum sector United States. But I think the initial panic over the terror proposals has calmed. The stock market probably would be vulnerable to terrorists if actual trade war word two armored hero RA's. But I don't really think that's gonna happen you know historically we try to stay away the United States tries to stay away from a trade war. But if one should materialize. And your portfolio wish for sure to limit losses and you have little worry about. If you're not sure your portfolio can survive a global trade war didn't give me a call and let's review your portfolio was calculate your maximum draw down. And let's see if the risk you're taking is in line with your risk profile. 806465996. He likes talk with Richard about that 80646159. 96 yeah kind of seems to be his limo right Richard it's as Brad and his book really you know again you hit him in the nose to get him off guard first in the new. Start to negotiate from there are so that we'll see how it all plays out again this is a financial simply whip Richard who drilling do you have questions or concerns about. How your portfolio your retirement might stack up given a call 80646. To. It's time for another musical connection. Where we blend the worlds of music and finance together. Here's a friend of the show financial advisor and a musician mark glory. We have run stuffs I miss the music connection on the financial symphony mart employees here in their mark. Let's talk about so many great musicians over the years and I think you who just happened to be a great musicians. It's you know you're. Talking about this since the series of folks. Mark is a musician but a lot of great musicians over the years and enjoyed significant success with different groups. Jimmy Page panic Jones and in my brain yes you know he gained worldwide fame with Led Zeppelin everybody knows who was only guitarist for Led Zeppelin but he also. Played with the yard birds and we jet back and play with Eric Clapton I mean those two guys were in the yard birds ins and stick it in the yard birds. Clinton joined the yard birds when he was eighteen years old. All left about two years later and within a year he form cream with ginger baker and Jack Bruce dark. Wow it sounds like the yard bird with a minor leagues for the Majorly drew yeah yeah not monitor lizard men are incredibly good rain only lasted two years and and Clapton went on hand us. Played with a blind faith and slow AME went on eventually have a great solo career the decisive for decades. And the same thing happened would deserve The Beatles when they broke up Paul McCartney went on to great success with wings they had fourteen top ten singles before. He wants a solo career a decade later. But my question to you is how can we make sense out of all this. Whether it be Jimmy Page you're Eric class dinner Paul McCartney who makes sense when it comes to your financial mess. It's not uncommon to see similar situations in the financial world what a broker. Is successful. I don't wanna use the word sales person. Because a lot of times that's what you get. And you know folks if you're going in the someone's office that you feel like you're getting a sales pitch. Vs good information. Good education. And that's successful broker are sales person that there with a particular firm. And it gets recruited away to go to a different firms and here he comes to you and says hey I'm no longer -- this current problem with that firm if you wanna stay with me you come home with me and here's new paperwork for use our. I mean you know it's all about that to me it's all about the money as what I'm seeing here. So when you get that call from their broker you worked for three years asking to move within to a different company to aloft and claimed that it's in the best interest of you know of yours. But is it. Or is it in the best interest of them you know that's my question. And the move might not necessarily be bad for ya I'm not saying that all of a Maria you gotta be skeptical on every move sometimes it does make sense but for in most cases. There's usually no major advantage or disadvantage to you and a lot of cases it's the same investments that you're in with a company day vs company B but it's important for you to understand really what's going on when you're presented with an option to make a change like that. I know that here in our firm if we've ever made it change like that it's because we wanted to better somebody would cost. You know one thing we try to do is manage the cost efficiently. And in our case lower the cost every time we can because the lower the cost is the more money you make it's simple. So there's some way of doing that where we can make you more money and lower your calls that Dennis that view in the long run. And that also you're gonna be a happy client and stay with us longer. Because that's what it's all about it's about. Building relationships. That are long. You know we're in three generations to clients here than in but that never would have happened if we didn't have long standing relationships with all these generations. And that's the thing that worked we try to do each and every day for our clients is that there's a way of of reducing the seat and make sense to make a change will recommend it but we just don't make a change because there's gonna benefit us. That's not the right thing to do we can't do that as a fiduciary is the wrong thing to do as a fiduciary we have to be looking out for your. Best interest. That's the definition. We have to look up everything we do every recommendation we make passage before your. Best. Interests. And we have to have they reason for every recommendation we make and if you're working with a local brokerage firm and they're not doing that. I'd be careful I would just because us. Because nowadays. But it's about you and it needs to be about you any should've been about you and with us that's always been about you. We elected to be a fiduciary back before the government required that you be a bit fiduciary we elected to be a fiduciary because we knew it was the right thing to do. Are you working with a fiduciary. If you are not. Then you need even though the difference between. Through the type of person or piper firm you're working with and what a fiduciary can do for you and we can show you what they complimentary analysis. The recording a charge anything for doing analysis and show you exactly what are you stand right now and should things may be beat tweet. Or maybe maybe you get a good bill of health like going to the doctor you get a good bill help we will tell you one way or the other because we're here to help educate you. But you gotta be willing to pick up the phone you've got to act upon this and you gonna be gonna pick up the voting give us a call Toronto wanna ask you to get a whole let let the people know what they need to do to reach us. To speed up the phone call 806465996. That's 806465996. And got a complementary review of your financial plan. Just call now to take advantage 806465996. It's time for a fireside chats. As we get to know your local financial symphony maestro. Well it is getting to know you time here on the financial symphony with Richard coach early. We're gonna step away from the financial chitchat for a moment or two and get to know Richard just a bit more outside that realm. Maybe peek inside his mind a little bit to Norah that could be scary may be courted new your wife and Noble's. We're gonna ask Gary and the question of the day Richard. And it's going to be a fun one was out there listen to the show today ask yourself the same question. If you could or relay a message to yourself forty years ago what would you tell yourself knowing what's in. Now who Miami it'll walk on and I know now that I didn't know then you know so actually the one thing I've learned. He is I'm I think we tell myself that some people will give you good advice. And that. You should listen to them but others don't know what you're talking about and it's important to learn to distinguish between the two I think that's very important in life because we don't we always have someone. Whether it's family friends or associates that. Have opinions that they share with you and I you know sometimes those opinions are not always right in on not not all opinions have equal value in my world and so it's really important can be able to distinguish between the good advice. In the data points lets a pretty young when I think that and it's certainly one that we do you have to learn overtime in life right we. We certainly have to work our way through that I won't go as lofty as you Richard Ellis is gonna say dad probably tell myself to stop having so many cheeseburgers twenty years ago. At that cheeseburgers and French Fries that would be either way out might go I don't know I'd like back to the merger that's gonna play the employer is a world. So yeah I think is set yourself a message Tony years ago what would be now here's the real question. Would you listen because I think we probably all had somebody in our life in different states is telling us good advice. As you just mentioned but those sometimes you know how it goes you don't always listened so you have to learn. The hard way. As well you know that's part of life right this fit. This was hypotheticals are girls Beirut with an advantage and that's it's it's part of that resort he tried talking about twenty year old to build a better anybody's Tony year old Silva that restore. Anyway that's forgetting that you this week viewers Richard who surely have a little fun they ask yourself that question. Lauren joined the program today and we'll get back to the financial talk and Richard just. Wherever you go there I have. Halloween is thirteen sinking along with continuously nibbling away your hard work. SC yeah. And I are. 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. Yeah. Yeah. Come visit with your financial maestro and Richard that you know he's serving the Charlotte metro area. Call 806 point 65996. 806465996. The financial symphony is reaching its crescendo. Your level financial maestro didn't. Coming up next. Playback here with a solid financial symphony cruising down the homestretch as I like this thing. Wrapped up the program for this week back with Richard future really investment advisor representative at Carolina retirement resources. Here in the Charlotte metro area Richards got an office over and hunters go North Carolina and also one in Rock Hill South Carolina. Very convenient to do I get a hold of Richard get yourself into. On the on the docket to talk with him about your specific situation you do that by calling 806465996. That is 806465996. Get yourself on the calendar for that compliment to read review with Richard we were talking earlier on the program about variable annuities and as I mentioned wanna come back and kind of wrap up well we don't often talk about them but seems like a good topic today so it was dive and this a little bit more. And now I got a couple more questions here for you Richard so. Tell us how often do you find people and maybe potential clients or whatever the situation might be they've made don't even realize that they were invested in a variable annuity at all. Well you know what happens frequently you know I mean there are a lot of marital duty sold on an annual basis and there seems to be a sense of confusion among those who own them. And I think this confusion is due in part to a lack of transparency during the sales process. To the uninformed consumer Brit. I think it's important that when you consider whether to buy a very blonde beauty that you take the necessary precautions to make an informed decision. You know and a decision that's that's going to be best for you unfortunately inappropriate sales practices can occur in many ways and comes from a variety of sources. Anyone can be a victim but retirees a remain a prime target. You know for example. It's just not uncommon for variable annuity arms to think that there variable annuity guarantees or greater return. You know whether intentional or not the illustration you received shows a guaranteed growth rate. But those numbers aren't exactly real money that is it's not the same as having your money in mutual funds stocks for bond to ETS. This enticing guaranteed growth greed isn't anything like I guarantee greater return and it confusions conservative retirees. So you wanna make sure you always review the contract make sure you understand the long term nature of the contract. And because of the fee if you wanna make sure you keep to variable annuity long enough so the fees don't take too much of the money that you've invested you know fees and their own duties again can range anywhere from three to 6% annually. Hey you know make sure you question anything that you don't understand remember the proof is in the paperwork as you complete your reach church. And decide to purchase the contrary it's important to keep you killed records you know get all explanations. And he information arrived in. And once you've made a purchase keep a copy of all the paperwork completed and signed as well as any correspondence you know and finally make sure you work within advisor that is an independent advisor and who was obligated to do what's in your past century. Orchard for our listeners out there how can we tell you know what type of annuity we may have. Maybe what we're paying in fees as you mentioned they can be a pretty good range there and any other pertinent information you think we ought to know about that. I don't primarily what you're gonna use fees you're gonna receive a statement in a statement will generate a list that type of the new do you have if you have a variable annuity will likely say so when the title. And so it's terrible Moody's investors sub accounts mutual funds your statement will likely list these sub account funds. Or provide you with a pie charts showing you your portfolio allocation. You know the frequency that you receive your statements will tell. Whether it's a fix product or variable annuity as well you know six annuities I'm you know they provide a predetermined interest rates so. You know that's the only meaningful activity and accounts so typically they generate annual statements. Fixed indexed annuities don't investor money in the market so there's no risk of loss of your principal. And so they generate annual statements as well but variable annuities carry statements heater on a quarterly or monthly bases because. They generate returns by investing in mutual funds and other equities which will go up and down with the market cycles so the higher activity level means or greater need for reporting for example statements for variable annuities typically contain a more detailed listener of your investment transactions throughout the recording period. This can include purchases or sales of mutual fund units by the annuity but it goes deeper than that you know mutual funds. I held and your new you might receive dividends Dorn a quarter might take capital gains on a stock that's risen and if you should withdraw funds prominent new Euro original contributions. Are not gonna be taxable to gain will be. So your statement allows you to track how much of your current balance comes from those gains so you can you can kind of estimates the tax impact of any withdrawals so. As to the fees and other more detailed information. You know it's important to review your perspectives. Every bearable nudie hasn't perspectives that you should have received one of variable annuity contract was delivered to you. And this prospectus will disclosure fees and all other relevant information. And it Sampras. Berkus is somewhat intimidating go ahead and give me a call and I can only make sense of euphoria and the members 8064659. 96 it's 806465996. Yelled to a lot of us I'm looking at those things is probably like reading a foreign language they can. Probably be a little confusing two different people. Certainly nothing wrong with asking for you know if someone does help you kind of walk through it as as Richard said he'll be happy to give him with that. But you do you got to reach out 806465996. This is the financial simply having a great conversation today and informative one as well with Richard through drilling. On a variable annuities I think we got time for maybe one more question before we wrap up for the week Richard so if we have one of these variable annuities. And we'd like to escape from it can we do that or are we stuck. None none you can do that. You know it depends obviously you wanna make sure that any anything that you do is suitable to your specific needs right but you do have several choices you know which one usual it will depend on the exact terms of the contract how long you've purchased a very long thirty the amount of of the surrender charges any. And the tax consequences if you should decide to cash out you know if you still have several years ago before destroying render period expires. You know it might be best to sit tight if you lost principle if you're lost value which have a large death benefit and that's important to you. You might wanna sit tight in most cases. You know if there are surrender charges it's not worth paying shall render feed just to make a change but. You know you don't have to sit in the very own Newt even under those circumstances he's our communities provide a template and freeware brawl. And so what you can do is on an annual basis you can withdraw that free would crawl. And you can dollar cost average back in the market that your desire if you have a variable on duty there is owned inside an IRA account you can simply transfer funds. At the very bone duty into another higher rate at the bank that the brokerage firm or an investment advisory firm. It's the phones are still inside the higher rate rapper he's considered transferring no taxes are doing such a transaction. And if there's no surrender chargers this would qualify as a suitable transaction if you own an annuity outside of the retirement account and cash it out. You know remember that there's going to be gains. Likely and those gains will be taxed. At your regular income tax rate not the lower capital gains rate reserves were most other investments so. The part of a pay out that represents a return of your initial investment would be tax free but again those games would be taxable now. What you can do is you can use that tactic known as attend certified exchange. If you wanna swap one type of the new before another type of a new that you can do that 1035 exchange with your variable annuity even if it's inside and higher rate. And move it to a fixed were fixed index annuity you're grown tired of market volatility in the hi fi so you have options to make a change but that change should only be made. After conducting a thorough review of your financial situation. And your existence variable annuity contract if you decide it would be best either shall render your contract and use other investments as alternatives to your variable annuity. Works danger very own duty for another annuity that has much lower expenses and better income guarantee. You can do so if the transaction is deemed suitable you can make that change you know when it comes to financial products mark. All products have their pros and cons so it's more important. To have that plan in place a plan for income a plan for growth it's important to go through the planning process identify your financial goals. And then develop recommendations to address those goals. And one common financial goal is should be addressed his how to create income from your retirement savings in such a way. As to ensure that your money lasts as long as you do you. The question is is how do you do that and so I'm really passionate about our community being well prepared for retirement. And I want to extend an opportunity if you right now to help be sure that your well prepared. I'm offer McConnell Mary financial review Qiyue. If you call in the next fifteen minutes and have at least 200000 dollars saved for retirement I'll talk about your retirement income needs. Where that income is going to 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 have to Cohen next fifteen minutes and yes it's true he could probably take care of it next week or next month. But here's the deal could be coaching people on retirement plan for a long time. And I've learned that it's really easy to procrastinators 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 we're gonna give used to encourage you take that first step right now for almost everybody that's the hardest core from there it's really not a painful process so you're ready to get a plan in place give us a call right now eight. 1064659. And 96. Take that first step as Richard just said go ahead and don't procrastinate 80646. 5996. It's a great offer great opportunity to get on the counter to command and talk about. Your retirement situation 80646. 59. And 96. As 806465996. You've been listening to the financial symphony with the investment advisor representative Richard coach are really. At Carolina retirement resources serving us here in the Charlotte metro area so again as we wrap up today. Go ahead and take an action call Richard right now is take that twenty seconds and dial 80646. 5996. That's 806 or six. 5996. Richard as always thanks for being on the program always enjoy my time with it and learn something and then thank you mark we'll do it all again next week right here on the financial symphony with Richard Richard round. Information is for administrative purposes only. And does not constitute tax investment or legal advice. Always consult a qualified investment legal or tax professional before taking any action investment advisory services offered through Brookstone capital management LL CBC him. A registered investment advisor. BCM and Carolina retirement resources are independent of each other.
READ MOREREAD LESS