Jan 21, 2017|
Common Sense Retirement Planning
Automatically Generated Transcript (may not be 100% accurate)
Well good morning it is aid brand new morning in America if you didn't see. President. Donald. You don't even have to listen to the rest of this common since retirement planning show you European Commission go listen right now if you want to come and tell you something. Things have changed a man and and we as you know. Have been doing a show for almost eleven years and we used we've gone through. Eight years of very difficult times and our economy we talked about it a lot on this we have been. In all are and always have been year alternative to the mainstream financial press we feel we we serve the same sort of function is WR in the talk show host serve when they address all the falsehoods of the mainstream press. And so we how we approach our show today with more hope and excitement about the potential of the feature than we've had for a very very long time. And we're going to talk about some of these. These things that are going to face Donald Trump as he begins his office and I pray easier for eight years could frankly is contain came in our opinion. At least. A couple of years. To stop the negative momentum created by the Obama administration to begin to turn things around it took Ronald Reagan more than two years for things to begin to go in the right correction so we have to be patient. Having said all of these things what we. Ten you on the radio is for your edification. Your entertainment your information it is not designed as actionable information for you run out and do something because you heard Phil for myself for Rebecca who is with us today say something that you you think is advice to you that's why we have. A complimentary consultation fees to come in and visit with so weakened. Taylor something specific you were situation and needs. And we do what we do to capital investment group member of Finneran simply. And we also do we do. We've biblical stewardship. In mind. And I couldn't. Help myself yesterday that being so. Absolutely. Brought to tears by hearing God's name mentioned from the podium and so many tons and many times and the Bible and the Bible itself. Speaking of which we always started this program with. Something from the Bible. And today I'd like to rage universe. At a Daniel 221. It says. God changes times and seasons. He removed schemes. He sets up teens. He is whizzed into the whys and knowledge to those who have understanding. God losing control and I thank him for showing our country some mercy. And we have to be willing to to be patient and give this new president time for his things to work and proverbs thirteen eleven says dishonest money dwindles away. Whoever gathers money little by little makes it grow we have had more dishonesty and corruption in this country than I've seen in my lifetime. And I pray that now we begin to bit by bit. Reconstruct. And retake our country back. So I want to start with this one of the things that this I believe is going to happen and Donald Trump is going to get blamed for all of this. Is we are set out to have some massive correction in the market. We are set up because well. The market has been driven mostly by fed policy and buy stock buybacks by and large companies taking advantage of low interest rates. So I want to talk a little bit about why it is important not to take too much risk now remember we're looking at this from retirement planning standpoint. First of all. If you think about the price is what you pay for stocks the market. It's in essence it is similar to to just stretching rubber band because prices can can only deviate so far from what the long term trend line his. Before they revert to what is the normal the mean. In win that event. Actually takes place. Much like a rubber band it's snaps. He can only go so far and when he snaps his snacks quickly which leads to the losses. So the problem. That I see with most of them the analyses that are being done by the mainstream press. Is that they only talk about short term analysis not long trying frames in when you talk about retire playing what we're talking 2030 your time lines. So what what you have here's what I called. Duration mismatch. Very short minute hourly daily weekly. An outlook which really is not going to help you and here's why. When you talk about retirement planning you have to understand. The psychology of loss. There's this fallacy after the news we've been programmed to believe that all you gotta do is buy and hold. Total return investing well let me give an example why that won't work for you in retirement. Let's say. That you want a compounding your investment by 10% a year over five year period so that switcher in here expecting to do. Well the first 23 years everything goes just fine you get to 10% return menu every year were you having negative 10% return. So 5%. One year of lost destroys. All of the compounding rate. Now you actually have a 30%. Lost in and that's going to Rick par 30% returned recover from that 10% loss on the power of compounding only works. When you do not lose money. Three straight years or 10% return to drawdown of just 10% 'cause the average annual compound in growth rate by 50%. Passed the mathematics of it. So chasing returns is a very dangerous thing and even more so once you breach retirement age in your taking income because remember. In the early part of you're investing in life you are at accumulating assets are dollar cost averaging systematically saving for your retirement but when you begin to taking incoming it's going to completely turn around. And now. If you suffer losses not only are you going to suffer the loss itself but also the amount of money you're taking foreign calmly say 4% and the negative effect of that on compound in itself which are what I was talking about a minute ago. So one of things we know how to do and we will show you how to do is to take the loss part of it out of the equation. Give you an opportunity to do take advantage of period when the markets going up without having to suffer the periods when the market is going down. And locking your gain during those up periods block it and we annual reset investing we call it furthermore. The whole reason we save is of course that we're going to take income at some point. And we want you to know. It absolutely east without a doubt certainly. You will have income for yourself for your spouse for the risking your life no matter what's going on in the larger market and we have years when market's done well on going up you get raises based on whatever that return is and lastly. When you passed away you wanna be able to pastor assets on their data that big benefit to someone. And do it in the most tax official weigh in we can show you how to do all of that if if you take the initiative. Go to common sense retirement planning dot com or CS RP got inflow. And calm and make an appointment with us let me show you how to sleep well tonight quit worrying about your retirement. Its interest thing I'm not a psychologist but I have a lot of climb to war and we have a we have a lot of articles that talk about what Tony was talking about that losses hurt. More than gains police but that. That's one concept that's true that they can measure but the other is we have short memories and we forgot how much it hurt in 2001 and two and 2008. There's actually an archeology here talking about he said we humans are heart hard wired. To be more risk adverse than pleasure seeking as talking about you know if you're in. You know back BK man on the age of living you know you may ask Warren. Mean the loss of a day's food could amount to your day F. And that hurts a lot more than you storing up a little bit extra base that might tell me on this well. I don't want you go through the pain Nassau people go through in 2001 and two in 2000 NA. The article talks about in today's over inflated over leveraged over manipulated. Markets. While earth would a rational person not be product prioritizing. Protecting their financial wealth. Common sense retirement planning we priority task protecting your wealth. We won't cheat to avoid the losses that's their main thing and can achieve reasonable gains going down the road blatt. You have to understand. That most of the time the market gives a little bit of pleasure. But then. Suddenly. Eight years a tremendous amount of pain police at this point realize that the market is fixing to correct fixing is a good southern word. Our it was a funny to a term no fan thing. We are on the cusp of Tony says of a major downturn in the market. And if you're in retirement age close to retirement you don't need to participate in the next market correction. Give us a call 180687676. Say. 18067. Now confused and my 676180687. 676. Say you know when you're in the middle of giving the 800 number never start thinking about something else that doesn't turn out well. He's don't even tell me where you are I was nine and asked so it always sure hearing here is Rebecca Kincaid and Rebecca is is one of the we're fortunate we have a number of very Smart women at work with us and we and we in this nice to have them. Then this feminine. Worldview because women ceased to have that we miss and that's why god gave this mean wives and and mothers and so forth so they can help you the stats that will be with. So Rebecca and I were talking earlier about. And at some of the things that you have to think of and retirement and in you brought up one of the most common. If I the funny I was talking to Bob McLean about this is Bob is getting ready to have to go through the very process you talk about which of course. Are in decent. My. And well and have you ever had to tell a client for the first time they have to pay our MD yulia and and making it may I'm the one making you pay it. But a lot of people don't know what that entails. What's about to happen now in the marketplace so we have new president. I today's a good today but we also have boomers who are starting mated Torre for a one K exits and mandatory withdrawals from qualified play eons. So what this results in the largest generation in US history. Has Sattar start pulling money from retirement these qualifier playing ends. To kick off a main Tori may admin of cash. They hit total hundreds. Of billions. In the coming decades. It's a US law the requires anyone over the age and said Nina half. So they appear within the sound a novel ways in your seventy cents and really magical is gonna happen to you in six months magical. Oh yeah. At the government's agent at the stars liquidating and was throwing a certain percentage of your assets specifically. Three point 65%. From any qualified account in total. And here's even some better news if you are not working with a product. Financial professional he is well versed in this area. The government does it cared to who missed it sorry I didn't nano. As say you responsible and patriotic American you must pay taxes on the wealthy should be be have accumulated over a lifetime. And the penalty for not taking to the distributions on time. Is a 50%. Tax bill on signs their retirees. Failed to withdraw. So good job safe then but there has to be a time when you have to pay the piper mask for and later you need tee or not. One of the things yet remember to little things like that is. Some people think they need to take if they have three different IRAs they need to take something out of each IRA you don't have to do that. But if you take it all out of one IRA has got to cover all three. And aggregation mistakes they college is one of the biggest red flags and biggest penalty areas because people. Me and get that wrong. And so. Tony and I and comes in retirement planning with Rebecca. A lot of times one of the first things we do is refer you to a qualified CPA. And that's who he is well that you're qualified tax advice. If you need legal advice we get you to a qualified attorney. But you know making a mistake. Like not taking an. Because you see the IR AS. They're pretty persistent but they're kind of slow and sometimes you eat this don't show up till three years down the road and that's a big hit so. We knew coming in and we give you these this advice. We feel locked we're once again trying to eliminate some of the financial pain in retirement. We don't we have seen. An amazing run up in the market over the last few years and handled the there are a lot of people out there many many people looking at this and saying. Well we tricked traditionally get a bear market cycle about every. Five years show in fact this is a good number to your average retiree will live through. Three to five bear market cycles during their retirement years. Well we're already way too long in the tooth in his bull market and so we have to take a look at it what may be coming. And is going to happen on Donald Trump's watch unfortunately he'll get blamed for even though it is not his fault. And here's why. Windy price increases for these stocks. Which are tremendous. Art accompanied by earnings increases. What that tells us is it you are have even imbalance in other words. The big price to earnings ratio. Is expanding almost entirely just because of price increases in the stocks not the cause of anything to do with the actual underlying value or earnings of the company so. For example. The current. Isn't just above average I don't you know when you understand this it is 70%. Above average over the last 130 years. So. That suggests. If you extrapolate this out dad returns. Have been going up on on the value of the stocks. And yet the actual underlying earnings have fallen dramatically. So. So extrapolating a price for that considering future earnings trends that is a fool's game and if you they sure investment strategy on that kind of planned. It can have severe financial repercussions it's why we can view this is time to be safe when you money. We believe Donald Trump has a great idea it's a great plans. But this market has been taken into the stratosphere and I'll give you the numbers of just blows you away when you think of it. The historical normal price to earnings ratio that's just sort of the median line if you can imagine and is about sixteen dollars a share. Right now it's at 28. Dollars a share. And as mentioned earnings overall have not gone up but rather overall have gone down over the last few years so at some point. In this and probably very near future that correction is going to common balance will be achieved don't get caught and that's a little experience. Now is to tie him. Go to common sense retirement planning dot com or CS RP got in folk make an appointment. Comments he wanted to ask. And we will sit down and helped craft for you plan. There will be able to weather whatever storms are coming we don't know what they may be. But we want to put you in the safest position you can possibly be so go to CS RP dot info. And I'll tell recently and it's really eerie that our red and money investors got its feet January February edition Tony you are talking about price to earnings ratio. In January of 2007. As a financial crisis was unfolding the price to earnings ratio for US stocks stood. At 27. Point two. Are right says that's all one of only few towns and history. When the markets teeny exceeded 27 and her and he 28 right now. At that does indeed you have burn in your belly to amaze to action. I don't know what will and it's counter intuitive that they can. That. The price to earnings ratios could be what they are when there are no corporate earnings age just doesn't make sits today. And the title of this to take particular section is over staying is their risk or she's ever paying is there risk. So ever staying and ever paying Xen is not a good idea mate especially in the retirement or its own. Right now. You know we look at our phase as just big tax targets. And so making sure you take your are indeed that tablet thing it's very important that you do that because the government wants their taxes on this money. But it comes to retirement planning one of their big goals is for you cash your money on. As taxing efficiently as possible to your Ayers. And understanding the concept of an inherited our a is something that you need to understand and wanna fill Tony Rebecca is a lease understood the call so few people actually take advantage of inherited IRA is. You realize that if you. Passed away in new pressure IRA onto your children. They have to add that to their income. You know that year and Uncle Sam may take half of your money to recipe for does and SYN. You know Uncle Sam I'm Armando and that. But if you. Would just simply know what an inherited IRA doesn't have that money passed on your children like say your name is nobody else say. In years child's name is Susie if it's listed Assisi beneficiary. For bills irate deceased. And leave the current custodian of your RA in go to the new custodian registered correctly there's no taxes due on man. And they end your child has a special schedule for required minimum distributions even though they may be 36 years old. A special schedule for a beneficial IRA but understanding that they common sense retire playing one of the things we. Emphasize. Is that inherited IRAs are something that is part of our client. I've never seen a bank. Ever. Recommend that money go into an inherited IRA even though it's costing clients thousands. So when you come to us we will let you understand. All the ways that we can avoid taxes almost tax targets called individual retirement accounts. They Arab news or earlier Rebecca mentioned. That you don't want over steak. There's a good way to know which direction market to moving in and see what they they're Smart money is doing. Do do really well feet sophisticated investors will hold onto your hats for this one. Overall hundred billion dollars has been redeemed from hedge funds in 2016. And only 32%. Of them outperformed their benchmarks that was a that was a huge advance because of course hedge funds are only available to two. Qualified investors people with a lot of money JI JPMorgan knows that. Even though the market finished out. US equity funds saw a net fifty billion dollar outflows in Iraq or rotation from active to passive so when. So overall. Investors pulled 200. Billion from at. Active US stock fund that is the that is the single largest annual rotation out of active management. Ever. So if you think about that from an do you get that should. Do you warning flag few if investors. Ever deemed an estimated overall. 200 billion out of all of this. That it's those investors were talking about our people into our very sophisticated. Plugged into what's going on. It would behoove you to pay attention to them. Read it in your local investment advisor who's telling you oh stay the course the market's going up and we'll just we'll just read a rebalance some stuff and you we we got a totally turned things we did your risk analysis. Questionnaire and we know. That that he's been proven to be a disastrous thing. For older investors. When they retire because you take losses in the early years of your retirement why you're taking income and that is how people run out. Of income. Police told that this happened to you go to CS RP. Dot info or if you'd like to pack a little more common sense retirement planning dot com but either way please. Take the initiative and come see us. Tony. I got an article market watchers say is. They did January the sixteenth that investors are bracing for massive. Stock market sell off but I can't figure out which investors those are the calls. The ones that come in and talk to me are in the same 6040 portfolio that they ran in 2000 Juan. In 2008 because their ambassador just like hanging in there. I don't see investors bracing for that and we want to sound the alarm. This is you can protect your assets but I don't believe your advisors are going to be calling you. At a time he'll tell you afterwards well you don't wanna locking your losses but they never tell you when the locking your games. It comments as retirement planning will tell you when the locking your games will teach you what manual reset investing is all about but you have to be proactive. You have to he is serious enough to give us a call 180687676. Say. 180687676. Say. Or look us up on the way of common sense retirement planning dot com or CS RP dot info CN amended. Welcome back to concentrate karma planning this is Phillip island. With my good friend and co host Tony dale. We've had an interest in week this week we've done a lot of multimedia. The vans we've had surprise squad with channel when he won and I was putting on makeup at the office and I'm thinking my life with Tony dale has been. Very interest thing. I was we were again pitchers taken yet we had to have make up McCullough gets the cameras are so right. The I have to have make it because Tony uses his make up because he's you know he's got all this background ray in if I don't my face just looks like. So I just never thought I'd be putting on makeup. But. You know what is an interest in when Tony. And I got together. The oddly it's sort of a sheltered life and Tony had. Been everywhere and done everything and I have really enjoyed my interesting for intimate wedding Jamaica BS I had another way I get to play and make up and it's actually I'm supposed to know it is not the kind of perverted the. Paint your face I I just can't even describe it like it is about hop into a casket. I think that big we had to straighten him out and the day we have to practice. Well. Any. What we want you to do today when you're listening to the ship was be motivated to give us a call but we don't you do anything anti incumbency as we wanna. Craft a plan that specific for years. In everything we do this to come capital investment group member Cameron's epic. And the only thing we want you to do today feud is seen here anything you like is to give us a Colin let us look at your specific situation. And see if we can take out some of the fear that people have been retirement. We like having Rebecca with us and Laura you know they're the younger generation even though they've got a lot of experience in the business and even though their younger. The Tony and I are getting older Tony. Aren't. Little clip said last October The Rolling Stones Paul McCartney Bob Dylan and these other rock stars got together. For this desert trips festival. And this is their average age of 72 years old so that gives me a lot of hope that I still have. I still got some time in the business. But you know. Then those groups they have they still on the same thing with a sort name their sounds a little bit different The Rolling Stones at a new and out called give me sweater. And then Carly Simon Cowell announcing yourself feigning. And Led Zeppelin got stay airlift to Hammond. Utilities as I still haven't remembered what I'm looking forward. Willie Nelson got one come on the Johnny Guillen. The who's got bingo wizard and then of course Rod Stewart is do you think I'm sixty. Others say hey we can always bring in a better sales in the future and he hit. A lot of I might end and you start my interest in very he's my favorite also for years he should be doing standup comedy if you are now this guy you would die you so for them. Give make it to you could pay off the cuff he's he's excellent. He is. Okay many of you have to hear. Have a pension and you think well at least I have this tension between diet what a lease shall I will have this income for ever. Well maybe not. Because if you are paying attention and I hope you are to what's happening in the world pensions. It don't give you more than a couple of gray hairs the Dallas pinching fiasco is just the start had already been following that. But the Dallas police who fired pension system. Has been falling completely apart. And the simple method and you you you could've seen it and many did see it coming. But now they're having it cut back what the church pew charitable trust estimates that one and a half trillion dollars. In pension funding. Is in is is that's how much is underfunded. In just the states of Kentucky New Jersey Illinois Pennsylvania and California. And they're going backwards. So at some point you are going to see what has happened to Detroit. And was happening to Dallas is going to happen Chicago here very quickly there the next in line for all of this now here's the problem. So does the South Carolina pension system have a problem they are underfunded by. Millions of dollars in their down their Colombian outrun what are we gonna do about that so this next crisis is going to Trevor trigger an avalanche. Is going to be a wholesale reevaluation. Of the credit worthiness of states and taxing entities. You're going to see asset prices fall. Causing underfunded pensions to become even more. Insolvent. And those down terms in turn are going to cause a reassessment of all types of dead. With the highest risk. Type of dead unsustainable so. Here's the here's what you have to see in this is what's coming. And again it's gonna happen. More than likely is already beginning dampened but it could happen on much of an on Trump's watch and you'll get blamed for him Fareed. But you're going to see chronic budget deficits growing indebtedness excessive pension and return assumptions pension underfunding all of these things are going to happen. And it's going to take both the stock in the bond markets down with them self. The point of pension is what. A guaranteed income for life and what does everyone want a guaranteed income for life that's why you save and that's why people. Are counting on pensions social security and their own savings. What if I told you it. If we can chill you had to take your life savings and create your own pension. It is an underfunded. And this pinching and unlike the typical pension gives you raises which pensions normally don't do. Ended as they get benefit. Meaning that when you pass a way. You can pass whatever is left on the some one and furthermore. This pension payment isn't just for the pension or the and the new attempt. It's 42. People husband and wife. That is a real. Pension it's got a built in inflationary needed to to. That is the type of staying the unique to consider. When you're talking about retirement planning rather than just plain ol' investing. And that is what we can show you had to do. Well we can that is if you take the time to come and see this in the way you do that is very simple you simply go to comment since retirement planning dot com. Or CS RP dot info. Making employment Cummins cius cost you know I think. Ritual walk out of there and knowing more than you ever green about how retirement planning works. And we can show you plan that'll help you for the first time probably have peace of mind about your time. Think it's prudent to incline it's commend our office to see us that we showed and things that. Perhaps their financial advisor didn't know understand they're just chase just flat out not to tell them. Specifically how a spousal benefit works and howled dear Achilles heel inside their current retirement plan is in fact inflation. I think people really discount the effect that inflation is going to have on their plans long term. Specifically. Inflation is going to continue. Down the road. The cost of goods and services will continue to increase say the other problem with the pensions Tony you mentioned. They underfunded pension plans will there's going to be an inflation problem there as well. Because most of the pension plans that are out there today akin to Social Security. They're braces for inflation are driven by the Consumer Price Index these they have the most don't have them. Well I have people cut minutes say double sigh I don't know hump any get a raise this is tied to the Consumer Price Index well. Here's a news flash for those out there who may or may not know this. The Consumer Price Index does not account for. The cost. Of energy. And the cost of food. I have a family of I'm acutely aware of the cost as city am acutely aware of how much a gallon milk costs we can treat two gallons of milk a week. Assets will continue to have to corps boot. Are you gonna have that or you're gonna be forced. To reduce consumption depending on if you have a true retirement income play and or if you have an investment plan is being made it look like a retirement income plan. So when you take an investment play yen. And you reposition that in such a way that it looks and feels like a retirement income planes a couple of things happen to your psyche. Never one studies have shown a turnover and over again that retirees have more enjoyment. And have less fear in retirement when they have a dependable steady income. There's also an increase in happiness when they knows that better times are ahead in terms of there will be more money and retirement not less. And then black slate when retirees are looking at their ascent not in terms of net worth but in terms of monthly income. That does an amazing saying to people who are spending that money retirement in giving themselves personal permission to stand. Tony beauty emphasized no real well about the east. Problems that we have with pensions but a lot of people believe they can take risks. With fair RA minding your their 41 K money because they have this absolutely secure pension. And what we need to realize that we're not. We're not making this stuff those pensions are safe be you think they are they'll be safe ride up to the point they're not safe. Yeah. When you take a risk with your money. You've got to realize that maybe the money that she think that is safe is not as safe as you think it is assignment with bonds people think that the bonds they have in their 6040 portfolio will offset the risky in this of their stock in their portfolio but it interest rates being at record lows in Janet Yellen saint she's gonna raise interest rates. Almost guaranteed over the next few years. The end you have to look in silent maybe the bonds aren't even be safe against the stocks but going back to the pensions. I've got another article here that says underfunded. Government pages assists. Former Fannie advisor and this is out of zero Hays state pensions Tom mom spells disaster. For the United States underfunding government pensions to the tune of one point three trillion. With again they just can't be failed. Is that ticking time bomb facing the US economy which faces dramatic cuts in public services and potentially riots. Reminiscent of Athens six years ago according to former reserve advisor and president of money strong. Daniel boothe. With few people taking part in what little recover the US has had in given how ostrich pensions are checks are going to have to be written from Washington sooner or later than you think. She goes on the say a bulldozer couldn't feel the state pension yet. Pension funding is ground zero. Well we just got an article before the end of the year. From the pew charitable trust who said that North Carolina Spansion was a 100% founded in the top five in the nation men and south Carolina's. Public pension is 60% funded. In the worst five in the nation. So I'm talon news they just to say this. When you come in and talked to this a common sense retirement planning we wanna give you a reality chase. A reality check about the risk you're taking with your life savings. Things always change. Sometimes for the good we saw that this weekend I think OK but. Sometimes things changing you don't realize it. A Singapore people who invested the Carolina investors may thirty years they made a little bit more than the banks gay because we had a local run company that had a good business model. But things changed in the background you know it was sold to an Internet company the economy changed and people didn't realize things were changing and TOY. They got a notice one day this ended their money was gone too late then well things are changing in the pension areas also we want to show you the S and show you all the ways that you can protect yourself from this. And to do that you've got to give us a call 180687676. Say. 180687676. Say look this up on the way of its CS RP dot info. There are a lot of people after the of deceit on the mainstream press that the market has gone up although it went down all of this week. Expected Dallas still hadn't gotten over 20000 but. You are mutant setting yourself up for some potentially devastating. Experiences if you make future decisions. Based on what's been happening in the past. And so the first thing is. Well. They'll post there have been some increases in sales of some areas overall that hasn't been. The answer is they're three main things one is declining percentage of profits going to the government in net taxes. Minimal wage growth it's so and and holding the higher the delight on hiring new people that is companies have slashed. That you we did arm are employed there and 95 point one people now showing 95 point four people million people not working out. But the biggest thing has been the debt fuel stock buybacks and dividends at the expense of investment in mid and long term. Investment from companies companies borrowing money. And turning around buying our own stock. Back so. If the number one cost to businesses or labor the first thing they do. Is they find a way to cut back and boy I know many of you know have friends or maybe family members of suffer. So they throttle back the hiring over the last few years. And of what happened next when the Fed dropped interest rates to zero is they turnaround started buying their own stock back. And that was great for the stockholders they pay dividends and it was great for the company officers who got big raises. That means the money didn't go our indeed go to hiring and didn't go to setting a new plants. But all of these things can only war when the Fed. Is keeping interest rates at zero that can't happen forever. So I think Rick this is what Donald Trump is inheriting. Twenty trillion dollars in debt doubled and short a period when Obama was in office. The fifth printed more than four trillion dollars of paper much of it was blown down in hand and we used to buyer our own dad. All of these things are getting ready to culminate. In some sort of a reckoning and you don't want to be in front of that if and I continue. You don't have to be in front of that again in fact it's very simple. To take precautionary measures. It is a cycle of hurricane I I lost my house in a hurricane Texas when I was a weatherman animal thing that house of Corpus Christi beach and I had to go do the way there I now enables. To do anything in my house was literally washed away in this hurricane. Other people had time to prepare I had to go be aware demand and so therefore I I didn't have time to prepare. I don't want that to happen to your life savings and that is why I urge you to come and see when a mask. A common sense retirement planning dot com and or you do is just goes near or CS RP dot info then we'll take you did the same website. Check us out. Make an appointment common cius and let me show you ways to have a safe and secure and worry free retirement. Just the sound of your Floyd sound sane insecure. Yeah seen. Yeah its it has a ring to it. What is that things ended a segment of the population at that listens to our Shannon we have such a dedicated follower ship on our share on Saturday and Sunday mornings. Is something called to their retirement red zone and and for days if you don't know what that term means their retirement red zone is defined by the five years before retirement five to ten years before retirement. And a five to ten years after retirement. If that sounds like Q it's time to be made into the computer. Or made into your phone to make a call because here's a reality of those of you who were in that red zone who were listening to my voice right now. If you are heavily invested in the market. And we have another 2000 innate. You don't have time on a make up for it. And we don't wanna see any of our clients change their standard of living are hacked to continue working because they didn't make the move. To secure their life savings in great position in such a way to think it's bandit and enjoy it. Here's a flip side of that security in retirement. If you're already in retirement and you have an investment play in major look like retirement complained got even bigger problem. Tony and fill up we all we've all seen this. We say people come man with a letter. Their you know they have a sad and sad face and they say well I wasn't really ready to retire. But I'm content the end told GQ you retire deacons on some else to do without your severance and wasted a solid Tom BMW. Michelin. Lots of places all lever and people are afraid they don't know what to do. There's a big difference in retirement. From the going and putting lawnmowers together it blows because your wife's aggravate needed dad or your poll word. And haven't again find a job in making ends meet the PG maple or funny to decisions when you were in the retirement or its own. So now is it time now is a ton. To secure your life savings in position and it said that she can enjoy it and has some real financial peace in retirement. I. We're at their palatial broadcasting sweet owned Arlington road. And I think and air broadcasting studio we have a view of Garland and road where it meets Woodruff road and if you all are traveling around this weekend in your own Woodruff road. Best not a pleasant thing at times and I'm. You know Tony and I are always looking for good investment ideas on when you somebody out there he billion dollar idea and it just came to me. I just washed the ladies sit through a green line on Darlington. And just sit through it so here's your million dollar idea a mower or run with it. I want you to Indian A have this scene you it takes from the light turned hearing are you texting anyway so yeah. Yeah some video tape so it detects that in the south where impolite to haul her hold on I'm not you know I'll do it today so but. You know it was just. I think that was behind some of these people on the way to the show and I'm little sensitive about the sum I come up with that it apt. This Ngo text on the light turns grain and he just send me some of the royalties Philip Allen had common sense retirement planning dot com. Fiore ideas we're here here here's another thing and I don't I've mentioned this. Kinda alluded to is the beginning of the show. So your typical you've probably seen these you can go may have calculators it'll tell you okay here's how much income you can expect to receive. A lot of time you go to financial advisors they give you always pie charts and all these colorful things and they'll say here's how much income you can expect to receive well. All right what they're basing that on. Our averages. Something called the 4%. Withdrawal rate these become the industry standard so people are told commonly. Well when you retire. You ought to be able to safely take a 4% would draw arrayed in and 3% for inflation and not having any problem in running out of money. Because the market is averaged 7%. Over the last 120 years from first of all I'm only by Iceland 120 year veteran dies at ninety and I have recently. The problem with averages is this markets are cyclical. And they can go through cycles can last fifteen to thirty years called secular boulder secular bear cycles nastier and a secular bull cycle. For example if you retired in 1982. And you started taken income from 1982 to 2000. You would have to you could've taken of 4% withdrawal rate and ended up with way more money in the bank and you started with. If you are retired ten years later and you started taking a 4% would draw already in 2000 and this is a Mason TD Ameritrade study. Based on a 6040 stock bond portfolio if you started doing in 2000. By twenty. Ten you would be left at that point with age 29%. Chance of making it through three decades of retirement why. As you would have suffered the three years of losses during the tech stock crash. About two years of losses of seven and 08 wild taking income all of that period of time. That is how people who run out of money. In their rolled aged. We don't want this happened to use it doesn't happen have to happen to you and all you have to do to make it not happen he's. Be proactive. Go to the computer. Tiger and CS RP dot info. Or comment since retirement planning a come more fuel to 806876760. Goes all work. In getting you in forty. Common sense retirement review will look at what you're doing will give you an honest assessment of that and then we'll show you the holes in your retire or play an authority. And craft one that will do the following guaranteed income for you when your wife for the rest of your lives. With the opportunity get raises every time you big gain and Goodyear. Never lose money when markets go south. And if there's anything left to passing game that leave it to your beneficiaries bad is the way to do retirement planning and bad as what we do it common sense retirement plan. It's interesting that these big boxes outs on these Wall Street types firms are still promoting the 4% role. I did a workshop last night and I was talking about a 4% role and half the rain. Or nodding their heads. Because as we know 81% of funny to advisors out the year. Do you attend overturned approached so indignant they're still touting the 4% role even that note. It's been deep ball over and over again I'm mentioned this on the air before but Texas Tech did a study. But did you even look at the example that TD Ameritrade did and say well that was three market crashes that that's a little tough. Well let's look at the 4% role in today's industry environment. The 4% rolling today's intra trade buyer may your odds are slightly better so you had a 29% chance of success. A bigger chains for failure and success in that TD Ameritrade study. Texas Tech said 68%. To exit success rate. So if I'm going into retirement I don't land bank on or hang my hat on 29% success or 68%. Excess of 100% excessive. The other thing is when we talk about a 4% withdrawal rate even the slightest dep. First of all when you're taking money out of an account you're creating what's called a permanent loss the money's no longer in the count. We east Carolina permanent loss with some volatility you've got big problems he got big problems in a hurry. And absolutely. One of the things it is interest thing is we talk about your probability of running out of money. You don't have to run out of money forward to be a nightmare. Because if you see your account going down every month and you've got half the money used to have in their you think you're gonna run out of money any. Rouen spinning the money I run into so many people they can't spend a dime of their. Retirement because as I look that's all I have and I might run out. You say it's worse than that. The fact that you can set up any insurer you can't run out of money insurers. As Tony said earlier today in another interview. That we had. A swan. Sleep well at night. That's what we want having that income year NT that you came out Leo. Eleven guys. You don't have to run out of money for it to be a nightmare you just have to think you're going to run out of money and it eliminates all the joy were having fun on the cruise now when it. You know can we go visit the grand kids can we help them no I don't think we can. So it's a mental gymnastic nightmare if you have not. Have the proper retirement planning to do that you have to give us a call 180687676. Say. One of the things that we saw leading up the election was how completely out of touch with reality the mainstream press wars are they World Cup every poll. Hillary Clinton's gonna win Hillary Clinton's gonna win and we all know what happened. What if I told you that the mainstream financial press is every bit is biased. When it comes to telling you what's likely to happen in the market. They never going to tell you. It's the market's going to crash and they're never going to tell you dead dead the 4% rule won't work or any of these other things but we will. That is what we do we have the upstate regional retirement plans we've been doing the short going on eleven years. Please. Come to the people that know how to help you common sense retirement planning if you go to our website. Comments into retirement planning dot com. Or CS RP got info. Any of these please make an appointment incumbency esque. Help us help you craft a plan that would take the fear and worry out of it which should be happy just. The most exciting most fulfilling time of your life you've been saving your whole life to do do do this retirement thing. Well Mike I should at least do it in a way. That you can enjoy and not have fear in those in those latter times once again CS RP dot info were common sense retirement planning dot com. Rebecca thank you for being on the show with the issue and a wonderful touch. We hope to see here next week. God bless you see it.