This broadcaster has 96 podcast archives available on-demand.
Keep up-to-date with this broadcaster on social media and their website.
October 30, 2021 9:00 am
On this edition of the program, Peter Richon discusses some scary financial topics and how to address or avoid them. If you need help in planning call Peter and Richon Planning at (919) 300-5886
We want you to plan for success planning matters radio and welcome into the program. This is planning matters radio. I am a Sean founder's minute for Sean Lanning and you can find us online. If you visit Rich on planning.com's what it looks like Rich on planning.com is my last name Rochon planning.com and you can download a copy of my book.
Understanding your investment options absolutely free. If you do visit and will even contact if you leave that contact information and asked if you'd like us to send you out a physical copy so get go online now.
Visit Rich on planning.com work.
If you would like to sit down and review your current plan and financial outlook.
We do offer the opportunity to put together that optimize retirement plan for you as well just give call 919-300-5886 919-300-5886 and we had him on a few weeks back on the program while people enjoyed that program. As we talked about a number of different topics.
Johnny Mayfield is with us once again Johnny welcome back good morning good afternoon and good evening, hello, hello to you one Lord, that's right folks, we've got a deal for you better turn off my announcer voice I should you. You have a great radio voice will actually tell people I have the face made for radio. We talked last time on the program about dialect and trying not to have what people could determined to be a regional dialect and you know where that is most commonly useful and utilized is in news media, news anchors, try not to have any kind of regional dialect you can't really do that because in most cases, a regional dialect or ethnic dialect gets in the way of proper enunciation of anything to do with this and you case in point. How would you like to go to New York City turn in the local local broadcast say WABC in the WABC announcer says it was a muddy use case got a problem the day of the trip except check it. Things are going right down the minute take take the subway's doesn't work. It would certainly limit your career mobility.
Really, there are many other areas where you can't say certain phrases or certain words because they have a totally different meaning just by going several hundred miles in any one direction. You can go from totally understandable to not understandable at all, but if you listen to most of your broadcasters, you find that there is no ethnic, racial or regional inflections at all in their speech and that's necessary because for everyone to understand you. You can't have any localism's included all on today's program will will talk a little bit more about that. Maybe we'll talk about some stories some tidbits some food for thought from a financial perspective, of course.
And as always we talk about what is important in your planning and will Johnny. The theme for today. Scary financial topics are be skating into the guest used to glue these disparities in the specters and know that things without buddies that the go and bump in the night that they make in your pocket. Now they are high. It is October the leaves.
The seasons are beginning to change. And of course Halloween right around the corner store see in those ghouls and goblins, the specters and scary is that which is what were also dealing with Johnny a lot of scary financial topics right now extremely and there is air there is scary is your local grocery store.
There is scary is your local gas station. You don't have to really look for them. In many cases they find you. And therein lies the problem because people learn. Caught off guard because they've been taught not to be concerned because these things are beyond their control. They just happen.
There's nothing you can do about it. When in reality there's a lot you can do about it.
You don't have to go with the flow. You have a lot of control over much of this quantities of These occurrences and happenings simply because you don't have to buy these things.
You don't have to go to these places. You don't have to do these things and once you exercise your control as a group is a population, then you have the control, and those around you. Do not why would say there are a few things that we do have to do one of them that is scary. A lot of people right now is taxes and any any of us as individuals, have very little control over what tax rates are what tax brackets are what tax laws are Johnny, as you alluded to.
We do have some level of control just have to recognize where that is. We have choices and decisions and options for how to save and invest and classify our dollars and right now I believe to be really a window of opportunity that could be use it or lose it for better controlling and minimizing the tax burden that people have. But right now if we are not having those conversations is just something that was scared, scared, well, fear is the controller of government of the people. If you can generate fear, then they can get you to go where they want you to go. Do you remember as you can ask a question, do you remember the theme song for Alfred Hitchcock on television. I remember Alfred Hitchcock. I don't remember the theme song for will the theme song was March of the marionettes to do do do do do do do do doubt the name exactly the name of that was March the marionettes and if you can imagine marionettes the strings are being pulled as they march along. That's the way governments want people to function. They want to pull the strings and you march to their tent. We have the ability to cut our own strings and march to our own tents and those of us that do. We can be successful both in work and life and in retirement because no one controls us.
No one pulls her strings.
We can set our own course. I think there has been a lot of that fear and a lot of that string pulling here as a highly and in what we are seeing in society, and what were going through and a lot of it. By design, but we want to be more of our own captain of the ship and determine our own outcome, and I always stress and emphasize that your outcome is only as good as the assumptions that your plan makes and the variables that you leave your self exposed to. There are hardly going to be variables, but in many times we can take steps to better protect ourselves against them or isolate ourselves from them that people simply don't take those steps, they are not being proactive in being prepared and planning ahead enough to to address things like taxes like inflation like market corrections, long-term care expenses in and running out of income in retirement. All of these I think are the least scary financial issues that we taken ostrich approach to bury our heads in the sand, but I always remind folks that the head that maybe in the sand, but the backside is still exposed Johnny very, very much so.
And therein lies the ostriches weakness because he doesn't realize that the backside is exposed and people have the habit of not wanting to rock the boat as it where if Charlie and George down the street are doing this and it's okay for me because they're getting along just fine, but you have to look in the mirror and look around you at your own personal situation and where you want to be if you're, say, 35, or do you want to be in 35 years. The wife and I were looking at that at 35 and we knew where we wanted to be at 35 years down the road and it's not an easy thing to do because once again the choices you make will go against the stream you're going to be swimming against the current. Quite often, but you have to set the money aside. You have to decide what's necessary and what's not, what is now and what is later. You must make your own decisions and not rely on others to do this for you because if you rely on others you become a marionette and others will pull your strengths. However, I think that in today's day and age where there's so much information there. There so many AI and Robo do-it-yourself services. Yes, absolutely. We got the ability to do things ourselves, but it's also what we don't know that can hurt us and there are limitations there so the experience of a qualified professional. In looking at your situation and helping you to identify those stones that have been on turn in the holes in the plan of the things that have been undressed can be helpful. Can can provide many benefits. In fact Dave Ramsey if you're familiar with that name. Yes, he conducted what is today the largest survey and study of millionaires that has ever been done and 7/10 of those that had in the survey did in fact trust and rely on the help of a qualified financial advisory a professional in managing their wealth and in building two to reach that status and then in making decisions about about what to do moving forward. So I think that that speaks to the benefits of trusting advisor, but that alone could be said to be Johnny one of our scary financial topics of how do you find the right person and how do you how do you trust somebody at that level with your money in your life savings will therein lies the question because I remember my father many times he would say that if ignorance were in fact bliss there's a lot of very happy people out there because it's not that they are stupid is not that they are is the fact that the ignorant. They simply don't know. No one is bothered to put a bunch bothered to inform them of the options available. The things that they have have available and because of this they just leave it alone. They just don't worry about it. They just stay away from it because they simply haven't been informed as to what is available for them and what they can do for themselves, to help them compel their condition so therefore they're just totally in the dark put themselves there.
And that's not the place to be. I like my grandfather saying it's better to have it and not needed to be in need of it and not have it. But in order to have it. You have to make decisions to make sure it's going to be there in the first place and that is where trust and knowledge, if you don't look into the possibilities of what's available and have knowledge of the people you're dealing with and what they do and what in fact they can do for you is to paint then you're going to be in the dark and you're gonna have those strings being pulled in your be marching with the marionettes like everyone else. I think that's a good day indeed know that that's the value of having a relationship with and advisors to exactly those areas. But how can we find one that we connect with well there certain questions. I think that you need to ask in going back again to Dave Ramsey. He's got a list right on his website of questions that you should ask a financial professional, good, good questions number one what you love about your job Johnny. The thing that I think I most appreciate is that I can help illuminate those subjects in and bring light to them and help people be more informed about them. Not everybody has a fantastic handle of money and finances. Let's just be Franken and Riaz honest but being able to give somebody the confidence that I am doing good things with my money to build for a better future is one of the most satisfying things to do have that evolution and that metamorphosis from from somebody having questions having concerns having doubts and worries of do I have enough can I ever afford to retire. Am I going to to be okay. Once I do retire. Am I going to meet my financial goals to putting a plan in place to examining those the scary variables that sometimes can seem overwhelming and outside of our control and formulating a plan for how to address them and then watching the evolution as somebody's shoulders Rison and they they build more confidence with their money either of their more informed and educated and they can make those decisions. That's one of the things that I think I love most about this job in this profession that is most rewarding the success is in success and defense, and success breeds success. The last thing you want is to be taking advice from a failure if you just don't want that because obviously the person that's giving you the advice as the saying goes, why do you want to listen to advice from a prisoner if you're in prison yourself and the other doesn't. It doesn't work that way. Will there.
There's a couple other old sayings about that as I don't think that this is necessarily the case but those who can do those who can't teach that and that I think is is a very big disservice to the job. The teachers do. I think that many teachers themselves are masters of their subject in their craft and that seeking that advice and not only that but once we have mastered something real laying that information to others. Often times reinforces what we do know helps us learn as well and through the experience of dealing with many many different situations.
I have the benefit of seeing what has worked and what has not worked in other situations. I know I only want to retire once. I don't want them have a do over. I don't want to be a mistake. I don't want to look back and say whoops that didn't work out better luck next time. Having the benefit of somebody who is seen this multiple times over really cannot be under emphasized or understated. It could never be under a precise and understated because if you practice what you preach, you can always preach the success that you have. And therein lies the difference. Too many people will listen to somebody say well you get that don't work. How does he know it does work. Have you tried it is a saying goes, it's better to have tried and failed in the never tried it all. But what if you never tried you failed exactly. I think a lot of the regrets that we have in life. Looking back saying why I really regret not doing that not taking advantage of that.
Not taking that opportunity. It's the things that we have the ability to do that. We love you as you try that are often times the regrets world peace. A lot of people they will say what I can't do that because they, whoever they are wont let me.
I can't do that because no one else I know has done that or of they keep telling me that it won't work. Your hearing is negatives. I was always taught that positive people should never shake hands with negative people because negative thoughts.
If you shake hands with a negative person from an electrical point of view you have a short-circuit you trip the breakers to blow the fuses and everything goes dark. So if you're a positive person you should be where negativity because it'll turn your lights out, and that's the last thing you want to do is put yourself in the dark and never turn your own lights out.
If you are the product of the closest people that you hang around and become things and if if you are hanging around naysayers and then folks that are condescending or that doubt your ability. Successful people don't have to ask you when even when somebody tells them that they can't are they not allowed to. They take that as a challenge. It is a positive motivation and they seek to prove them wrong.
I think that's the attitude that we may need to have when looking at the difference between success or failure is the mindset is the most important thing that the mind of a is the most powerful tool put in in our financial lives. It's also the knowledge and the mastery of the other tools that we have available to face these unknowns in these scary factors like taxation and inflation yes and market corrections.
None of those Johnny with in our individual control. We need to have an attitude that we can take steps to better control our exposure to them exactly because I can remember my grandfather back in the 1880s and well into the night double in the 1990s and even today in many cases they would spend an entire year growing an entire crop to make sure that they could pay the taxes on the land once you paid the property tax that ensured that you can maintain your lifestyle and any leftovers were then yours and I can remember. He said you only had one pair of shoes a year after you got your crop in and you only wore though she was in church and in the school. You didn't wear them to scourge or to school because you wear them out. So I said what did you do in the meantime, he said while you're at your feet and flour sacks or whatever you had available and then you were you shoes when you do, but that what you did not wear them out and I said okay but we're looking at myself as a young boy in the 1950s talking to my grandfather who was born in 1880, so we're looking at a totally different century, but the knowledge in the practice. That is the same. If you don't want to be without you. Don't waste what you have and is a case in point, my, my mother had a data story. She used to tell us you said by a lot of people are talking about being in the ghetto will people or if your you're always born in the ghetto. If you're not born Woodbridge parents year in the ghetto. Why because you're always talking about what you're going to get if you make it successfully so you're standing there in the street corner here in the corner bar and make that hit on the lottery, I'm going to get me a big house on the lake I'm going to get me a boat I'm gonna get me a car for me and the wife was just say that they do things right and everything works well in their favor. That's when they graduate to the from the ghetto to the got. Oh, that's when they're talking about what they've got got me a house on the lake.
I got me a boat. I've got me… Me and my wife knew Cox but if they are not careful. If they listen to the wrong advice from people that are unsuccessful and they lose that what they have acquired, then they are in the third level and that's the shadow they go from what to get to what they got. And now they can only talk about what they had see that Mercedes I had one just like it.
The wife did to see that boat down there. I had one just like it on the lake they can only talk about what they had, because they took the wrong advice in the classes that I teach, and in some of the financial conversations that I have. I talk about how reaching retirement is a very high level of financial success. Being able to confidently say I'm going to walk away from a secure paycheck that I can depend on and not look back, and then moving through what we hope to be 25, 30 years of unemployment with with confidence that takes a high level of financial success.
Unfortunately, not everyone maintains that level of success and often times it's because they don't have a great understanding of the tools that they have available and the risks that they will face and so part of our planning process is to really examine the assumptions that we are making as we as we have that transition area. Maybe 5 to 10 years before retirement.
5 to 10 years after retirement. That's really the red zone. If you will love.
When examining those assumptions and learning and understanding the tools becomes important. Your outcome is only as good as the assumptions your plan is based on if you're if your plan projects out that we will make a steady, consistent 8% rate of return and then we have a couple years where it's like the.com bubble and the market loses 50% or a couple years where it's the great recession and the market loses 40% and are taking out income because it's retirement. After all, you're taking out income at the same time in your burning the candle from both ends your plan and your outcome will not end up where you assumed where it was projected and I would rather plan and prepare for that ahead of time. In fact, I sort of take the Murphy's Law approach to planning what can go wrong will. Let's will absolutely absolutely pessimistic in the planning process and have each.
I don't know if you've ever heard of O'Toole were are familiar with O'Toole but O'Toole said Murphy was an optimist and that her legs were were looking at the plan and making the bad things happen on paper as if Murphy's law is the rule in the set of circumstances will face in the future. Taxes will probably go up.
Inflation will probably be higher than we seen the market will probably correct. Three or four times in her 30 year retirement we may encounter long-term care needs and therefore expenses does the plans to work under those conditions, you know, every plan with rosy optimistic assumptions is going to look fantastic.
It's gonna work were going to have income for our entire life and pass away with millions of dollars to hands to our children but then real life is what happens to plans and and the outcome is nothing like that. That's why we gotta take that proactive look from from 88 conservative or even a pessimistic standpoint or from the conservative point of view and from a historical point of view that saying is very simple. No battle plan survives first contact with the enemy as soon as the battle begins. You can throw the plan out the window because because what the enemy does determines what your functions will be to stay ahead or Mike Tyson, as you said it very eloquently.
Everybody's got a plan till I punch him in the nose, exactly, or is I believe it was all back in the 1930s.
It was another heavyweight boxer by the name of that he was fighting Billy, and that he was known as the high-speed punch or renter you know you get around and the saying was what you intend to do to combat his rain style and it says the answer was very simple he could run but he can't hide. You have to stay within the ring and therein lies the difference because you can't leave the rent. Once the bell rings is just the two of you, and you have to look at planning for yourself in the life you're planning for the future is just the two of the you can't rely on your children because they have their own families. They have their own lives you're planning for your life, your family, what you intend to do and you can't control taxes you don't know what the taxes will be other than the fact the taxes always go up.
They never go down. And if you look at historically. All taxes are temporary.
They just simply forget to remove the in the well I I always give the analogy and a lot of people I talked to want to help their children there. There, in a position where they're accumulating wealth. There, planning and building toward their own retirement, but they're making a priority to help the kids with things like college education, which you know very very selfless and and very worthy effort.
However, I I remind them that if you are not putting yourself in the most stable position possible you're not serving to stabilize those around you. Just like in an airplane when you take off the St. the standard safety speech to the stewardess air aircrew always give is that if there's turbulence in the air and the masks fall from the ceiling.
If you're traveling with small children. Be sure to secure your own mask before helping those children that you're traveling with, and the same thing for our financial life, because we don't want to become dependent on our children later in life. During their peak earning years taking them away from their own financial reparations, nor do they want to take an unpaid three or four month vacation to come and take care of mom and dad there to.
There's a lot that goes into that but there are ways to to plan and prepare and protect ourselves against those those costs and expenses will my wife is in home healthcare. She's a nurse and we see this on a daily basis in fact quite often will spend weekends going to yard sales and things of this nature and will buy items that our patients need that they simply can't afford things like walkers and wheelchairs, shower chairs and all these odds and ends in bits and pieces that no one really thinks about but if you don't have the 40, 50, $7550 to purchase these things. It's very difficult to do without them when you need them. So we will spend a weekend and that's what we do for fun, literally is shopping for items for people to simply can't afford them. And in most cases we just give them away or will just save if we spend five or $10 for them. That's what they pay for it less is something that fills an empty spot. But once again it's one of those things that was not covered by planning because he never assumed that they would need these items in the future so there was no pistol, no point." Looking into providing it because once again, the assumption may have been well Medicaid will get it for me. Your Scott I can get it through another service in that's nobody's ideal plan. By the way it really is really not a plan that's more like a fallback excuse and you don't want to live in up in the position where are you depending on something being there.
That may not be there knows nothing like a safety net.
With a hole in it. There's a lot of that going on. There is indeed well we've talked about a number of different topics on today's program and with Johnny Mayfield. As always a very entertaining conversation on today's show as we have talked about some of the scary financial issues in the theme of the holiday here coming up October Halloween right around the corner.
The goals the goblins of the financial world, trusting an advisor taxes, inflation, market corrections, long-term care, outliving our assets. These are the things that have people scared that have savers and investors, even those proactive and in a good position are really had the unhurried and and concerned absolutely may have your parrot for a minute be make you are on the making for the voyage of your life be make in your mark here that made their name being a pay but you be getting your fair share of the loot boutique and plunder. BDE survived FOIA HR will you survive the voyage. The Darrell clinician that is the question we have to be better prepared and we have to take the steps. That's one of the reasons why Rochon planning. We offer the opportunity to have those conversations. Ladies and gentlemen pick up the phone. Give a call if you like to sit down and review your current plan. The assumptions that it's based on some of the scary factors that will face into her future. How to prepare proactively for them and if you would like, we will run you through that optimize retirement plan. Looking at your income, your investments, taxes, healthcare, legacy, all you need to do pick up the phone.
Give a call cost not a scary factor here free of charge. No cost or obligation for that conversation. 919-300-5886 919-300-5886 and if you'd like to get a better understanding of your investment options and choices that you have go to Rich on the planning.com that's my last name Rochon planning.com but it looks like Rich on planning.com download a copy of the book understanding your investment options if you leave your contact information there in the form we will be in touch and asked if you'd like a physical copy of the book mailed out to you Johnny again always a pleasure very entertaining time with you on today's program.
Thanks for being here, and I thank you sir. And like the Terminator says I'll be back. We does not help. So that's not a threat that's a promise I will looking forward to hearing from you. Call 919-300-5886 will talk you soon. Take care since been planning matters radio the content of this radio show is provided for informational is not a solicitation or recommendation of any investment strategy you are encouraged to think investment tax or legal advice from an independent professional advisor in any investment and/or investment strategies mentioned involve risk and possible loss of principal binary services offered through virtual capital management. The registered investment advisor. Fiduciary duty extends only to investment advisory advice but does not extend to other activities such as insurance or broker-dealer services advisory clients are charged a quarterly fever as a product commission which may result in a conflict of interest regarding compensation since been planning matters radio the content of this radio show is provided for informational is not a solicitation or recommendation of any investment strategy you are encouraged to think investment tax or legal advice from an independent professional advisor in any investment and/or investment strategies mentioned involve risk and possible loss of principal binary services offered through virtual capital management. The registered investment advisor. Fiduciary duty extends only to investment advisory advice but does not extend to other activities such as insurance or broker-dealer services advisory clients are charged a quarterly fever as a product commission which may result in a conflict of interest regarding compensation