Retirement Constants

Financial Symphony
Saturday, February 17th

Richard discusses financial constants in retirement and answers to listener questions.


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. Hello and welcome into the financial symphony thank you so much for tuning into the program today. I'm your host Mark Killian. Along side or Richard who'd derailing he's an investment advisor at Carolina retired air resources. Serving you here in the Charlotte metro area with offices in hunter's bill North Carolina. And Iraq kill South Carolina Richard can be reached at 806465996. As 806465996. That would get you on the calendar. Commander have a conversation with Richard about you were specific and unique financial situation. And that's what we do here on the financial symphony each week is talk about the world of finance and retirement. Well let's go ahead and dive into our mailbag this week Richard NC we've got on the the request line we've got a few questions and of command and see if we can. Help out Andrew in Charlotte and he writes any says that should I work with a younger financial advisor with less experience or maybe someone who's closer to my age but might retire at the same time I do. I hear this frequently because I'm an old advisor peso and the decision that I think to hire younger or more experience advisor. You know to help you financially it's not as simple black and white answer you know you should go. You know should he go with the industry veteran. Those individuals have been around and all long enough time to see the ups and downs in the market understand the dynamics of those ups and downs. They have a little bit more experience with respect to education. Possibly. Or do you go where they are advisor you know and again it really depends on your priorities. I know a lot of number advisories that are her excellent I don't see them as being a detriment one way or another and I know a lot of older advisors are as well. But if you're new retirement it might be better to have an advisory that has the experience. You know which retirement plan specifically. And so that might be a better situation on my opinion you know when issues of financial advisor one of the primary factors you need to consider is experience. You know not experience in the traditional sense of choose someone based simply because they've worked in the industry for decades but merely experience that comes from a person. Who has faced similar financial challenges and milestone I compared to. What you're currently facing an experience that I'm just can't be taught by webinars or continuing education courses you know. When you find enough financial advisor that is close in age and shares a similar financial perspective to your first. Who actually gets it in all financial planner your own age understands the issue. Your face and who knows that you need. A comprehensive plan of action to get your financial life in order so in my opinion. You know they can be a better guy done to help you through that planning process and prepare strategy. That address your specific needs you remember. Not all investment firms and financial professionals are created equal you know most individuals. Who call themselves financial advisors you know they oh. Their primary allegiance to the company they work for a product vendor they were present rather than the customers we serve you know legally. These are what we call sales professionals and a legal obligations these individuals have. Toward their customers are specific and limited. They are not required to disclose potential conflicts of venture at least not right now. Were to recommend the best product available for you only shoot one so on the other hand. Advisors. Of registered investment advisory firms you know they work directly for their clients. They have an open ended fiduciary responsibility toward those clients such investment advisor represented there's you know they need to disclose. Any potential conflicts of interest to other clients shall those clients have the ability to evaluate the context of the advice. The deer being given. So I recommend the product these advisors are required to recommend what they consider to be the best product and not merely a suitable were acceptable ones so. You know most investment advisors. There are her get an older. Have contingency plans in place where they have associate younger associated Marjorie in place so that if something more happened and then they're prepared to make sure their clients were taken care of so you don't I think it's a matter of perspective Andrew it's a matter of preference and convert and I don't think he advisors and age matters at all. All right and you were great question we certainly appreciate you sending many NN. Certainly give advice mostly some things to think about here firmer Richard who drilling. If you like talk and Richard Moore it's 80646599680646. 59. 96 another question here for you Richard from Lonnie in Morse bill. And money says I'd been planning to sell some investment property. To do some different investing for retirement but I just discovered how much I'm going to owe in taxes because of the increase. In the property's value since I purchased it. You think I should just hold on to it. When you know why I don't really know for sure that's in the best course of action for you I don't know your complete situation. We don't I think it depends on your whole world portfolio on how much income that portfolio can generate to replace income when you do retire. And of course so your retirement time horizon. Unfortunately when you do so on investment property has increased in value. You're gonna have capital gains which are going to be added to your adjusted gross income in the years to use cell. And the tax is often much larger than the stated federal and tax rate so be careful with that. But don't go there are ways to avoid those capital gains taxes you want option would be what they call a deferred sales trust. You know this could work if the situation meet two criteria you know one. You wish to dispose of an asset that is sufficiently valuable. That is worthwhile to incur that cost to avoid the adverse tax consequences. A windfall and to your prepared to hand or interested. In receiving the proceeds of announces sale over time. And do not need to cash for immediate needs another way of looking at it would be to say that if you're going to invest the money you got from selling that property. And you don't need to spend a greater way as deferred sales troops might work for you it might be good option because that's what essentially allow you to do. Another option would be eternal will remainder trust that charitable remainder trust or shear key for short is an irrevocable truck. That generates a potential income stream for you because you're the donor. True deterrent only her trust or to other beneficiaries. With the remainder of the donated NASA's going to your favorite charity or charities. You know what you do if you transfer. In appreciated asset in too deep irrevocable trust. This removes the assets from your state. So no state tax whom we do when you die you also receive immediate charitable income tax deductions. The trust deed and sell the asset and market value pain no capital gains taxes. And they reinvest the proceeds interest income producing assets. The result is that the trust pay human income for the rest of your life and then when you die to remain Entrust NASA's go to the charity you've chosen. And that's why it's called a charitable remainder trust. Remember that with either one of these strategies it's essential that you don't take a do it yourself approach you know you should seek the advice of a qualified attorney. It may cost you a little bit more than a turnkey approach but it. Always money there will be well again another great question this week here on the financial symphony thank you the most Lonnie for the question. A lot of moving parts in here so certainly. You wanna sit down with a qualified professional and discuss the different options that are available to you. And Richard can certainly help you with that and 806465996. 8064659. 96 our final question this week Richard here on the program is from Jay in mint hill. And I feel like this one chases that Richard I'm worried about a market meltdown but my Brothers on the charm drain and thinks he's got a few good years left what your opinion. The authoritative people have been not a concern about market meltdown for quite some time now. And whether or not trump has made a difference I'm not so sure. Asked for a bigger downturn you know like 2008 I'm a little less worried you know large declines like 2008 are few and far between. And it's unlikely wolf here collection like the one we saw in the dot com bubble and the financial crisis anytime soon and my reasons for saying that. Or that I'm not seeing signs of stress in the economy yet. And until I do I'm not worried about big downturn particularly regardless you should be prepared at all times. Four I'll pull back a correction or even a bear market you know but to completely dodge these inevitable corrections you'd have to time the market perfectly. And you're not likely to sell at the market's top and and certainly buy back at the market bottom on a regular basis you know no one does that consistently. You know we're prospective president trump the stock market began to rally long before trump was elected president. What's more the evidence shows that the rally would have liked it occurred even if another candidate who won you know it really boils down to the market's price parent. Unfortunately many in the world of finance believes the president and hence presidential elections also play a large role in determine a course for stock market. And I just don't agree with that. But here's what you do you need to know not even the president United States gives a stock market its marching orders. It's true that the market has mainly risen since trump was elected. But the bullish action was in the cars long before the world knew he would be president in my opinion the market will continue to rise for now. We likely have a correction in fact I would I would embrace a correction at this time. You don't corrections bring buying opportunities they bring those other opportunities. They allow you to to make some money. So correction isn't a bad thing and the definition of a correction does that tend to 90% drop no pullback would be like five to 9% drop. And then you know us traditionally a bear market is 20% or more. You know some corrections happen often they're inevitable you don't but they're not predictable. And typically corrections only matter to short term investors. But your focused on the long term corrections and marketing aren't an issue. But I think we will see a continued gains move forward in fact I believe there are still some big gains ahead. You know for most of those mark completely ignores the stock market is not an option especially if you're gonna keep pace with inflation. And retain an opportunity for growth going periods of good economic times. The solution. Is to use risk management strategies that allow you choose how exposure you our market volatility and limit losses. You know knowing your risk score and your potential maximum drawn down we'll help you decide if the risk you're taken today is appropriate for your not. You don't listen why I'm very passionate about my belief that you deserve a secure independent retirement. And that's why we offer a free consultation to our radio listeners to help keep them on that path. Will be calling the next fifteen minutes and have at least 200000 harshly for retirement. How often you just free consultation help you determine how prepared you are handled retirement pitfalls like inflation. Health emergencies. Taxation and of course stock market volatility. You know you've worked really really hard for the money that you save for retirement so I'll work just as hard to help you protect and grow it. You know there are a wide variety of tools and services available in the financial world. I'll show you how to harness 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 to go ahead and give us a cone next fifteen minutes. And I'll work together we huge issue on their root financial security in and. And that's OK and here's your number to call 80646. 59 and 96 that's 8064659. 96 if you're are running errands today riding around the car. Go ahead and get pen or pencil McRae on her eyeliner or whatever right now on the number and give Richard the caller please do so safely. 8064659. And 96 to talk with Richard culturally. At Carolina retirement resources here in the Charlotte metro area he's got an office of hunter's bill North Carolina and Rock Hill South Carolina. Great resource to turn to. For some retirement help 806465996. To take advantage of this offer. For merger would surely you're listening to the financial symphony much more to come after this. Much like the musicians 1980 its mistakes and their instruments were analyzing the acoustics of early in the forum performance. Your financial maestro fine tune 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 next to your financial plan. Come visit with your financial my strip. Richard Richard Alley and having the Charlotte metro area call 806 point 65996. 806465996. It's time for another musical connection. Where we blend the worlds of music and finance together. Here's a friend of the show called financial advisor and musician mark Lloyd yeah we're two bronze stuff. This is the musical connection here on this financial symphony and mark yeah let's talk about the British invasion. Royal British invasion had them incredible impact on my allies and when he's talking about two campaigns are about the British invasion you have to start with The Beatles and I mean there were so many other. Significant bands who were who came on during that time in and made an amazing impact on me and you in the music business in general. So I would tell me about so your favorite bands and the brown. I mean I'm an all time The Beatles I mean I have I have Beatles memorabilia early in my basement and I love The Beatles of course the stones came out about the same time as The Beatles they were the two bands that competed against each other media or you might go into that little bit more like the kinks in the yard birds and and then later on when I was in the seventies you know I followed Led Zeppelin and then and yet had a lot of bands like yes and blacks Abbott I mean are they if they came out in the seventies yeah that were I'd I can still considered at the British invasion. Only Eric Clapton stuff and in going back in the sixties one of my favorite bands was. Eric burden any animals coming all you have are fantastic and I love them than these sing with a war as well yes yes he got together with the war and they did some great songs like spilled the lion in the all that kind of thing. Let's talk about impact of forces outside of the US remain out of come necessarily from across the pond like the British invasion that. Outside the country on our stock markets and it MER I can give us some examples there. The elbow we have a global economy and we also have a global market today you know it it doesn't mean that when US stocks go up international stocks are gonna be bad but you'll see kind a look of all of a correlation there where. Or similarity that when you see overseas stocks drop and they usually drop the night before our markets. We kind of follow suit you'll see US stocks dropped the next day because something happened across the world that calls this. You know and there's a lot of big players out here runners China yet. You know the Chinese economy. Trickles down and affects us. But here's the thing at the U people some investors think I don't wanna be an international. Investments in stocks or funds because they have more risk and volatility than American funds but you know sometimes. I always say that it's Smart to have a little bit of all of its like pieces of pie. Leo that it might be 1718. Pieces of pie in the portfolio. But a lack of China for example an emerging market will you know that particular asset class. Emerging markets went up last year thirty cent over 37%. While. Over 37%. Which was 021%. With the S&P or or large cap international was up over 25%. So if you're missing out on having a little piece of that action in your portfolio. You're missing out all potential growth that you could be seen out here but here's the thing. It's important not to chase sectors like this though. Yet just because the emerging markets had 37%. The risk or the temptation in your 401K. Is the pro a lot more in there this year. I'm telling you the most efficient portfolios we've ever worked with were the ones that kept things constant and what I mean by that is we had faced particular percentage if we are an aggressive investor we didn't mind having 7% of the portfolio and emerging markets if we -- ready growth investor may be 5% of rural balanced where a moderate investor maybe 3% but every quarter we turn around we rebalance that so that we don't let the risk get out of whack see that's what it's all about folks it's about risk vs reward. Risk is not our enemy and risk is what grows the stock market but without the proper allocation. Without the proper diversification. It's hard to manage risk if you're a self investor it's hard to manage risk and we're even seeing in this robust US stock market trial bulk started to go backwards now and to give some of these games back for a lot of different reasons geopolitical reasons of memos and just people taking profits and and things going on globally. You know issues with the rush or -- -- within Israel or issues with north and South Korea there's always something on the horizon. That can affect our markets that is why it's critical. To have a stress tests performed on your portfolio. Does seem really what is your diversification. How much risk are you taking have you been doing any rebalancing have you done any risk management and all your portfolio orgies just riding this wave. Wolf folks in waves crash and you wanna make sure your portfolio doesn't crash behind it so Ron tell the folks how to get in touch with us to have this very very important stress tests performed on their portfolio. Up to speed up the phone and call 806465996. That's 806465996. Didn't get a complimentary review of your financial plan. Just call now to take advantage 806465996. It's time for fireside chats. As we get to know your local financial symphony maestro. Well it's getting to know you time here on the financial simply time to step away from the financial chatter for just a moment or two in. Ask Richard a random and off the wall question that we like to do just to get to know a little bit better. Outside the financial realm and Richard our question this week you say it's an interesting console strange element I'm curious to see what's your response is. What does a TV channel that does not exist that you think should exist that you might wanna watch. When I was a lot of TV channel vendors. You think I know we're all the TV channels our show. But I know this I don't believe there's a constitution educational channel. You know in my conversations with individuals. Socially it's shocking to me that they know very little about the basic elements of our government and constitution that formed it. And you know protecting their rights guaranteed by the constitution presupposes. There we know what they are and the fact that many don't it is a little bit worrisome to me because I'm well for a lot of different reasons but I would think do you have an education channel. Specifically. Geared towards educating the public on the constitution. We know we've got a lot of channels along those lines that you think you would see that information. But you're right I don't think we really do I imagine History Channel at one point started out that way but I don't believe that's the case any longer. Well that's are getting to know you for this week on the financial symphony make sure you give Richard or call 806465996. The talk more about your. Financial situation and we'll get back that talk. Your financial plan shouldn't be a one hit wonder a. Make sure it'll be considered part of the greatest gift I working with your local financial my stress. Think you're staying tuned into the financial symphony Mark Killian here alongside. Richard who'd you really he is an investment advisory Carolina retirement resources here in the Charlotte metro area. 806465996. Is the number call to talk with Richard. You yourself on the appointment calendar in command and have a conversation about your specific. Financial situation. 806461599. While they are so many factors that you are different for everyone in retirement planning variables if you will. There is also some constant that affect everyone no matter really the specifics of your situation. I know a lot of times on the program we talk about how everyone's unique situation is different and that is true. But there are some Constance that do affect it's also had a we playing around some of these for example inflation. Talk a little bit about that. Well you know just define inflation as you know on its defined as a sustained increase in the general level of prices for goods and services you know as as inflation rises. Every dollar you owned by a smaller person and so inflation is known as perch and power risk. And again it's the risk that the cash flows from your retirement savings. Won't be worked as much in the future because of changes in purchased power. You know inflation causes money to decrease in value if some great. And does so when the money's investors are not you know for a retiree. Inflation is a significant concern and one that requiring your attention. It also lets say you're planning to retire at age I'm 66 you know your current life expectancy figures. Give your retirement window of about 25 years maybe maybe a little longer but 25 years. So we use that 3% for an average annual inflation rate the future value of the Euro dollar. 25 years later he's only 48 cents put another way you can afford to buy less than half. Half as many good is 25 years into retirement as you could when you stories so. The impact of inflation on your costs to live in you know certainly has real consequences. And factoring that into your retirement plan is extremely important. In house Social Security has built in inflation protection. But don't we've seen that their cost living increase rescinded in the past whether or not or what happened again who knows but it can. But the balance. Your shaven certainly needs to be managed appropriately to ward off then the negative consequences associated with inflation. And even though inflation is low today. It could be much higher in the future you know in the last fifty years mark. Inflation United States went as high as 13%. But let's say it's only 9%. We get a bad streak two years three years and it's down 9%. Well nice percent inflation will cut the value of your dollar and half in just only eight years. So looking at the world today. Not one country is run and a surplus all of them are running deficits. That's OK if you have enough economic growth but we don't and a guy is going up after then growth can replace it. And the government's own money there will be inflation you know how much I don't think anybody really knows it's it's possible you can go as high. You know it's 1520%. Who knows it it could it might not but I wouldn't bet my dollar on that triggered the deal. If inflation does return suddenly you certainly need to be prepared to prepare for inflation. You know you want balanced portfolio to include. A growth portfolio where I mean but I don't portfolio you're retired as your retirement plan. Has growth portfolio and that includes hard assets in stocks you know after you've met your required income needs to the balance of those statements. Should be invested in allocated for growth. Stocks have historically been the best long term hedge against inflation and hard assets have done very well markers of high inflation as well. In a sense stocks and hard asses act as a super chart urged the cost of living adjustment for your retirement account so be prepared. When Richard you know you mentioned with the and all the countries. Running a deficit and you mentioned taxes so that's the other piece of this that is a constant rain is rising taxes. Who knows when that's gonna happen obviously they you know every administration says they're gonna try to cut taxes but. Believe in an hour currently living in some pretty historically low tax rates. Which means it's almost certain that at some point they do need to increase not to mention the debt that you mentioned as well so had a we've planned for that with all that uncertainty. Yeah you know when I talked to potential clients there under the impression no market taxes will be lower retirement because they've been cold. That bill penal tax Brian writes coach better pay taxes later in retirement and furthermore you're working. Unfortunately that concept is a myth frequently when I meet with these pre retirees are retirees are subject to taxes comes up. And I always Ashman. If they think taxes will be going up or down in the future and inevitably people are thinking that taxes will go up and I agree. I personally believe taxes will will be increases regardless of what we hear publicly I say that with confidence because the math never lie to your government will shouldn't need. More revenue to meet its commitments and those of you who have saved a tax deferred accounts may soon be surprised what the government share of that account may be. In a remember you have to pay taxes on your contributions. And you haven't paid taxes on the growth at some point those taxes will be due. Unfortunately. I think that there we don't think this much but unfortunately uncle flam. An increasing share if you want so you know the best plan preview is the one implemented by U. And that plan should include details on how you move some of your tax deferred savings accounts. That are forever being taxed to accounts that are never be in tax you know fortunately the tax code includes several tax provisions you can use to create tax free retirement. Income. But few if you take advantage of them you know for example if you can pay the taxes it's always a good time to do Roth conversion. But it's especially good time if you sustained portfolio losses and if you do Roth conversion today you'll get tax free republic rolls tomorrow later on down the road got Roth arteries don't have. Required minimum distributions during your lifetime and that's the case. Then you're not required to take money under the account so you have more money staying in the account and growing tax free compound in overtime so a Roth conversion today. Means leaving a tax free inherent issues errors tomorrow as well shall keep that in mind as you ponder whether or not are creating a tax free account is in your best interest. Another option out there is life insurance you know properly structured life insurance contract will provide tax deferred growth. Tax free distribution. Eliminate market volatility and provide tax free distribution in the event of a nursing homes day while creating a legacy for your beneficiaries through death benefit. The life insurance retirement plan you know it's an accumulation cool. Just like a Roth IRA or should face similar to a rough water you know properly structured life insurance contracts and raw retirees in my opinion are the accounts of choice. To create tax free withdrawals in retirement when your thinking ahead to retirement. Or even if you're already in a retirement you know tax plan and should be part of your decision making from the beginning. You can pretend that these things that are going on world. Don't exist you could pretend that everything is fine and there's no need to worry or you can implement some proven strategies to limit your tax exposure in the future. You know I think most of you will agree that the economic environment is unpredictable. And that's why we preach putting your money into many different bucket channel like a Ferris wheel if one bucket happens to turn upside down. All the other buckets you've invested in are still upright you know what kind of shape will you be in following your money's an attachment per bucket. And Uncle Sam raises taxes dramatically. So if you believe that taxes will be higher in the future you know to ask yourself does it make sense. Two deferred taxation on all your retirement savings to a higher tax rate in the future. So for the next ten people call us right now. With at least 200000 dollars in their retirement accounts. I'm gonna offer a free complimentary financial review of your entire financial retirement plan. There's no cost for this visit it's simply a chance for you to get an education about your money. So you can make the best decision for yourself moving forward you know we found that most people don't. Have a true understanding of three basic things they don't know how much you're paying in fees or commissions they don't know how much unnecessary risks are taken with her nest egg. And they don't understand the tax implications of their retirement savings. Many of our radio listeners who go through this process eventually become clients. But others don't in the process isn't designed to turn every listener into a client is just an extension of the education that we try to offer on the show. But we cannot give specific advice for your unique situation on the radio so this is an opportunity for you to get answers to some specific questions that you may have. Or maybe even answers to some questions that you didn't even know you needed to ask. So for the next ten collars with at least 200000 dollars saved for retirement I'll make some time on our calendar to visit with you again you just complimentary financial route. Map to get started today call 806465996. It's 8064659. 96 to sit down and talk with Richard which really about your situation he's an investment advisory Carolina retirement resources. Here in Charlotte metro area and you can reach him at 80646. 5996. To get himself on the appointment calendar command and have a chat 80646. 5996. You're listening to the financial symphony was Richard culturally we'll be right back. Stroud played. Well it's time to check it would Richards who drilling here on the financial symphony was in the news. This is a topic we've received recently here throughout the last couple weeks or so. In the headlines and news and Richard it's been reported that Warren Buffett you know the. Oracle of all lost control of L 449. Billion with a B. But also has about a hundred billion currently sitting. In cash. What if anything do you infer from that information failure of the purpose of this cash or what they called buffer assets is to support spending when the portfolio was down so. You know this is an old strategy to maintain. A separate cash reserves from the rest of the investment portfolio with the intent. To reposition Wendy opportunity arises argued I'm sure people do that as well. They always you're not doing that if you're in a position right now where everything you have is invested. Then it's possible that we should do review on your behalf. Give you an opportunity to understand the worst you've taken and maybe an additional opportunity to take care of some opportunities that. Look promise and honorary. If he calls that buying stocks on sale a lot of times right Asahi donors Syria. And so and you talked about that earlier in the program as well as that does sometimes I'll pull back or correction is a good time to make money by actually getting into some different investments depending on. The situation if it works well for you. So I listen that's the whole idea you just need to make sure that you have a plan and that you're talking with your financial advisor. Or your financial professional about your situation and making sure you're communicating that. That's in the news with Richard who drilling here on the financial symphony 8064659. You're listening to the financial symphony striking the right court. Your financial plan floor cruising down the homestretch here today on the financial symphony Mark Killian alongside Richard culturally investment. I Zurich Carolina retirement resources. Here in the Charlotte metro area Richard can be reached at 80646. 5996. That is 80646. 599. B six Richard we've been talking today about retirement Constance on the last a section of the show as well as this one. About there's things that affect all of this kind of generally across the board everyone's situation is different and specific but there were a few Constance that we. Kind of all share of course we touched on inflation. And rising taxes. And and when you were talking you also mentioned the market in there as well. And that's another constant market volatility is always going to be there and some former fashion correct and true. You know when you invest in the market you know it's all about risk and return no more tolerant. You are at risk of more rest that you can take which eventually hopefully translates. Into a larger profit on the other hand if your risk averse. You want to be placed in more conservative investments that are more secure. But less profitable. Hailed as a definite difference between being in risk averse and manager were as you know the reality is. That the closer you get to use your savings as a source of income and you know being enriched traverse makes sense it's everyone's. Natural inclination to want to avoid losses and I agree with that you know so when you invest in the market. You know remember risk is what you bought it and returned it what you hope for and there can be no expectation of return without risk. So you have control over what you bought and what you bought these risk you can't control for return but you can control full risk. Unfortunately the average investor tends to obsess about return. With very little focus on the risk of her taken. And the temptation to focus on return is extremely strong because that emotion known as Corey. You know but in the end success really comes from a focus on things that you can't control. Risk is the control factor in your portfolio not returned an excess return of Thatcher desire. Cannot be achieved without excess risk. You know volatility. Much be controlled and retirement. And you do this you know by and point and risk management strategies that minimize the effect of a significant drop in the market. On your income and your portfolio. Market volatility. Is much greater when you're taken income from your retirement say ms. Kennedy's when you were saving for retirement. You know when you were saving for retirement you know those market downturns they may have reduced her assets but they didn't affect your income and nobody retirement. All or portion of your income is generated through our process. And the impact of market volatility is much much greater. What you need to do usually need to have a plan for retirement plan and that plan should include a safe money strategies for required income. And a growth portfolio for your future income you know so that you can offset inflation. When you diversify our strategies in your retirement income plan. You create income to pay your monthly bills today. And you invest for additional growth and income in the future. All these pieces work together it is certainly is a puzzle and having all those facets of those puzzle parts working together certainly can make it a successful retirement plans that much more possible. We're talking about some of the Constance market volatility there being another one health care Richard obviously is going to be a constant as we age health issues are going to. A rise for most of us and everybody at least needs to have some form of a plane and and how they plan to cover this cost in the later years you can't just the go about it or input like an ostrich and put your head in the sand and say it won't happen to me. That's so true you know I've had been maybe 23 clients a year it and are often quite surprised. The rising cost of medical care to one sure events and so there are very happy that they had prepared in advance. It's something that you need to prepare for you know unfortunately many of you believe Medicare will cover everything or not done. Neither of which is true. Until you experience it yourself most of us make assumptions are based on misinformation which means there could be some uncomfortable. Surprises ahead. You know health care costs and longevity they go hand in hand. But stay healthy retirees that tend to end up with higher lifetime health care costs. Simply because they just live longer you know and the biggest cost of courses custodial care or long term care or nursing home care. You know some clients rate the ability to pay for long term care priority. Because they just finished taking care of parent and know all too well how much it cost. In fact my father in law who recently passed this year received long term care for for more than five years at a cost of about 6000 dollars per month. I mean that's 360000. Dollars over five year period. So you don't nursing home care is not cheap. And it will be more expensive for most of you twenty years down the road. So to be prepared for the financial impact that long term care. May impose you need to plan for today you know for many of my clients that requires investment portion of their statements and insurance products to help cover the cost. You know for example many of my clients have life insurance contracts to provide an accelerated death benefit. And accelerated death benefit is a benefit they can be attached to a life insurance policy that enables a policyholder Rasheed cash advances against the death benefit. In the event of nursing home stay work being diagnosed with a terminal illness. And in most cases accelerate get benefits are not subject to federal income taxes. And if you're never mean they care your errors receive an income tax free death benefit. And if you ever need access to your money you can make withdrawals tax free. It's what I call an all inclusive products are regardless don't believe it won't happen to you. Because it could and that's why you should be prepared rising health care costs are going to be a reality show plan according. Yet we have to make sure we address these things folks is so so important that we look at all these facets of retirement it's a different animal than just the accumulation phase. As we're working in growing our wealth than when we get to that preservation and distribution days. And now retirement and of course Richard can certainly help you out you're listening to the financial symphony with Richard who to really. 806465996. As the number to call a talk and Richard. 8064659. And 96. OK Richard our final piece here fees and commissions. Nobody works for free right there's no free lunch is out there and there's always going to be costs associated. With anything that you do in the financial world. Patty minimize these cost or maybe maximize which are actually getting in exchange for what your paying. I guess the value maybe is the better question as long as you feel you're getting good value for what you're paying. Yeah Gregory you know Galileo once said that all troops are you understand once they're discovered. The point is to discover them and one truce mutual fund investors have not come to easily understand is that there are hidden costs. Not reflected in your monthly statements when you invest fusion mutual funds you know when you hear people talk about mutual funds. He always you're talking about greater return but you don't you're talking about the costs associated with those mutual funds so if you ask your advisor what is his or her fee is. You'll likely get a response of 1% one point 2%. And that's likely true but that's not the only feet there are others and for example every mutual fund has a fund manager. So every mutual fund has a fund fee or expense ratio to compensate the fund manager and cover other expenses. Even if you're invested in bonds the advisor fee in the fund fees may be much much greater. And then there's also this notion of turnover rate you know what do how much of that mutual fund buying and so on Dorn a quarter of the year. And generating additional fees as well additional fees like trading fees and sales slowed her commissions all these fees combined. Are very likely to cost much much more than 1%. Listen you know feature par for the course in the financial world independent advisors give you advice and investment options they can build a full. Retirement plan in corporate and tax plan and legacy plan in. Income plan then. Investment and long term budget in they'll stay abreast of the worldwide economic environment and monitor your finances on a regular basis. And adjust them accordingly so so make sure that you receive in significant value for the fees which were pain if you're not sure you're on the right path. Over how you should be managing your retirement savings you gotta hinder me call the next fifteen minutes I'll custom design view and easy to understand financial review. And that review will indicate if you're in need of a full blown financial plan. There's no obligation or cost for this commission reviewed all callers who have at least 200000 dollars saved for retirement. So if you meet those qualifications here's where you can expect you know first Colorado Maurice. And that'll help you untangle what it's cost you work with your current planner advisor. As well as how your portfolio may perform dornin sugar market downturn. Also show you how to protect your investment should keep more money in your counts. So we'll also talk about your taxes maybe do a tax analysis to show you how we could possibly reduce your taxes and increase your cash flow. And finally will create a customized lifetime income plan usually proven strategies and techniques that could Turbo charger retirement income if one is needed. In short we'll pick guesswork out of financial plan for you felt for all the callers calling next fifteen minutes marked hum offer a comprehensive financial review. And this review being offered for no obligation on their part. And the number to make that happen is 8064659. 96 again no cost no obligation. To get on the calendar command and had that initial conversation with Richard he does have to take some action 8064659. 96. That is 806465996. To come in and sit down. With Richard which are really at Carolina retire resources either at his office and hunters on a Carolina or Rock Hill South Carolina. But he services the whole Charlotte metro areas to give him a call 80646. 59 and 96 take advantage of this great opportunity to make sure that you just headed in the right financial direction. As you head for retirement as you get into that our retirement red zone whether year. Five years out or so were already into retirement maybe even already had a plan in place will second opinion is always a good idea as well. 806465996. That's 80646599. Six you've been listening to the financial symphony today Richard thank you so much for being a guest on the show was always. We appreciate your time and you as the computer knowledge and know we'll do it all again next week so make sure you tune in for more of the financial symphony. With the Richard could derail. A registered investment advisor. BCM and Carolina retirement resources are independent of each other.