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August 20, 2022 9:00 am
Who is Peter Richon? What is Richon Planning? What is Planning Matters Radio? Watch as Peter Richon owner of Richon Planning and Planning Matters Radio discusses who he is and what he stands for. And along the way mention a few giggle worthy stories of his time as being a financial advisor fiduciary for many people and many places across the United States. This is Planning Matters Radio hope you enjoy!
You plan worse when you welcome to another edition of rents on with meters on owner of Rochon planning and fiduciary in the North Carolina wavering area so since your owner of Rochon planning on to explain that little bit of experience shorts so I am a full-service financial investment in retirement planner. I am an author my book.
Understanding your investment options is kind of an intro educational piece to help people understand all the different the different places that they can deploy their money. All the tools they can utilize in the specific purposes that each one of those tools serves I am a Dave Ramsey smart Mr. Pro a lot of people know the name Dave Ramsey. He's got a pretty good following, especially North Carolina, like God, Dave and your mom as far as the pecking order of who you follow and listen to and that has meant a lot to me. I actually in a past life.
Got to run the board one time for Dave Ramsey. He was sort of touring the country and I was at that time right out of college. Running several talk radio stations.
One of them syndicated Dave show he came to town to do the show out of that studio and that was my first exposure to Dave so we really try to help people get a better understanding of their money so they can be more confident with it. Our motto and mission statement is that everyone has the ability to feel confident with their money. Given proper information and education and is omniscient Rochon planning to provide that. Okay so besides you meeting Dave Ramsey what else may have led you towards this career in being a financial bus. Why think that a lot of lessons from my household growing up.
Kind of gave me of free quiddity to being good with money and understanding it. My mom was a single parent teacher so making ends meet at the end of the month not always an easy thing. In fact, quite a challenge. Now that I grew up in in in in poverty are struggling or anything. We did all right, but she used to sit down and balance her checkbook pretty pretty avidly and would have me along with her for that. That exercise my mom's always been good with money if she writes my son a check for his birthday and it gets lost in the shuffle of the birthday cards. She will know that that check has not been cashed and deposited two months later she she will come and say hey I noticed you never cashed at $25 check comes from her behaviors in tracking money she's to sit down with me balance the checkbook. Show me how to know if the bank maybe made a mistake or an air in their favor war in hers and how to double check all the map of the transactions and make sure that we weren't spending more money then than we had. Not that I haven't made my fair share of mistakes in life, especially in those college years where they hand out free credit cards and and a T-shirt.
If you sign up for a credit card around every corner on campus. I did come out of college with like five figure credit card debt and it took me a number of years to claw my way out of that even though I had been taught better about about the time that I learned by touching the stove rather than by being told by smarter people not to touch the stove. This guy Dave Ramsey came to town and if I was I was just get my head back above water. He's like that's not your friend. Don't get ended that don't use that cut up your credit cards and like this I smart disguise right on the start following Dave Ramsey and so really have been a fan ever since I was also hosting a number of these type of financial related kind of infomercials I was hosting account, probably 8 to 10 before I ever realize that not everybody was getting great kind of advice nor not everybody was was very confident about their money and that I actually really enjoyed it and also enjoyed helping other people get that confidence and became a financial advisor myself so the background and and I think what led me here to my current position in some of the things I really enjoy in value about this profession that's amazing. Very honorable, especially coming from your background in learning what you know but as I say, visit Rich on planning.com or give them a call at 919-300-5886 to come discuss with Peter Rochon and as we move along: I actually I will only give you a little bit of an intro to write this is Landon Holland Blandin works in the office at Rochon planning he actually is behind the scenes helping to produce these radio shows in the videos and the content that we put out into the public, so does a great job in an editing and putting together the music and the disclaimers that have to go on everything and and some of the commercials and then making sure that they all get delivered to their intended destinations. So he just graduated high school, a few wavering high school where I have actually gone in and had some opportunities to teach the Dave Ramsey kind of lessons on a one-off basis, but this semester at Fuquay high school. We are actually sponsoring the foundations in financial principles. Dave Ramsey course as a full semester long course at Fuquay Varina high school and hoping to be able to get that into a few other local area schools because the courses actually now available in 48% of high schools across the country, but none around here until we sponsor that at Fuquay Green high school, which is the first hopefully of several more but Landon does a great job easier on the program today to get a little in front of the camera and in front of the microphone experience itself.
Have you picked up a few values with your money in a and and 87 what you feel are good habits with your money. As a result of being around here and seeing the financial industry. I definitely understand a lot more now about what a Roth IRA can do what you're saving should do what your checking should do and all those vehicles of money because he has not everything, but it really does cut around the world. You can't do anything without it, and it helps me understand saving is just more than just saving her car houses saving for the rest of your life so good job. That was a department excellent, excellent, and the Roth. In particular, a fantastic vehicle especially for younger folks get that savings going. One of the things that I did at Fuquay Hyatt showed the effects of regular investment and compound interest. Over time, and if you can start putting money away into those retirement accounts around 2025. You are in great shape by around 60, 65, so just get that habit going because investing is habit behavior and routine, and is long as you make that kind of part of your lifestyle. You will do very well. Later in life when eventually we don't want to or can't go to work to earn our money hopefully don't want so obviously your financial advisor or fiduciary. And you're an owner of Rochon planning what is your favorite part about owning and working at Rochon planning. I think it is the confidence that we can help other people have with their money. And you know it's it's not always that they leave our office, feeling 100% confident there are times where I say we need to do some things better.
We need to control the budget spend less, maybe work on earning more. Certainly, investing and saving more, but I enjoy being able to help people get an understanding of that by working kind of backwards into their current situation. We talk about goals we talk about hopes and dreams and aspirations and what you envision retirement to be about when do you want to do it at the do you envision trying to maintain your current lifestyle. What about taxes. What about inflation and sort of working all those factors and variables back to where we are now and then mapping out how to get where we want to go to turn that question around one of the things that I've been thinking about recently is is kind of the hardest, most challenging part of this profession is trying to convince people and and and chase people and pester people to do things that are clearly in their best interest. Now that's not everybody by any means. Some people say.
Obviously this makes sense. Obviously this will work to help me further my progress toward my goals. But there are times where we can we can lay out the best laid intentions planned that the fiduciary your best interest plan and it still is.
There's hesitation. There's sometimes just and an unknown desire to do some of the simple steps to get into a better position later on down the road because it does take discipline. It does take some hard work and I just been thinking recently that is actually one of the hardest things about this job is like here are the step-by-step instructions. Here are the things that will clearly help you improve your progress out, let's get them done and then the disappointment in them not getting done is is really tough, but there's a lot about this job that I really love I really enjoy the educational piece. I really enjoy when people have a better understanding of their money and what it's doing for them and and I actually enjoy the trust and responsibility. The position of servitude that I have to my clients to be responsible and help them with their money achieve those goals. I can definitely vouch for the discipline part yet heavily discipline especially for 18-year-old just got out of high school and not really sure what to do with it.
You know you have been heavily discipline but another question so when someone comes in and they are ready to retire and you know you went over the statistics and everything.
How do you feel when you can tell someone, sir Mme. Sir or just Mme., you are ready to retire.
How you what I think we both all feel pretty good about that right there is always some wiggle room and room for doubt and assumptions that a plan is based off of, but controlling risk and minimizing risk is about identifying those variables that are outside of our control in addressing or eliminating them.
So ups and downs in the stock market tax rate increases inflation into the future healthcare events. Those are the things that can get in the way and I take the perspective of of being Murphy's Law or actually looking at Murphy's Law and what can go wrong will go wrong.
Usually at the worst time I take that perspective or I look at that as being optimistic when I'm in the planning process so if we can go through the planning process and we all still feel pretty confident that you are in good shape to retire probably addressed a whole lot of variables a whole lot of what if's and hopefully what assumptions the plan is based on if were wrong about those assumptions you're in better shape than you expected to be and that's kind of a difference in the plans that I think that you'll get at Rochon planning we call it the optimized retirement plan versus what I see people coming in with is that I see people with a lot of very optimistic projections and assumptions of the markets going to return eight or 10%. Oh taxes are going to stay low and back you pay lower taxes and retirement. Inflation is not even going to be a factor that that the amount of money you need on day one of retirement is going to be the same as it your expenses are 20 or 30 years down the road.
What if any of those assumptions are all right then you're not in as good a shape as you bought, whereas in reality the markets only returned about 5.78%. The S&P index since the start of the 2000 January 1, 2001 to the end of 2021. The compound annual return of the S&P was 5.78% take this little downturn in the beginning of 2022. It's below 5%. So why would you base your financial future on a plan that projects 8% study compound rates of linear return when the actual return has been significantly lower and has not been steady and we didn't even earn 5% every year, there were some years where we had a -30% rate of return that's going to impact your plan. So when I am putting a optimized plan together for our clients.
We look at that volatility we say, what if we only get a two or 3% rate of return over time as the plans to work.
What if taxes go up and and spoiler alert. They are already slated to go up in law on the books. Currently, taxes will be going up to now's the time with the tax planning and and how to be efficient.
What is inflation is more like what it has been over this past year rather than what it has been historically is a big difference between 3% and 8% inflation.
Let's put those things on paper in in writing in the written retirement income plan. Part of that optimized retirement plan and see if the plan survives and it does and we all looked at each other so you can retire you know what I've seen is people and not wanting to they they and actually enjoy work a little bit more knowing that they don't have to if they decided to walk off the job the next day, but enough people need some motivation to keep going to keep sharp. Keep active and I actually think retirement is not for everyone.
There are some people that just want to stay busy and find idle time to to be quite annoying so know if you got the ability financially. That's one thing but we got to look at mental, emotional, psychological well-being as well.
You mentioned in it briefly in passing that money was not the most important thing. It's not yet have quality of life to.
But money is a tool that provides for quality of life with. I use it effectively and so obviously you have been a financial advisor for the devil. Are you definitely have some experience under your belt and meeting clients isn't exactly nudity for being a financial advisor for this.
Do you have any interesting stories or anything while being a financial advisor first say that meeting with clients is not new, but every client meeting is every every person situation is a little different stories yeah got a few I used to travel a lot, actually.
I used to go out of the office and on the road and I remember a guy who actually ended up becoming one of my favorite clients. The first time I went to his door.
He answered the door with his 38 revolver in his hand, is that if were going to talk about my money I just want you to know that I have this bear not yet arrived by, I respect that.
Let's let's sit down and have a conversation can, if you don't mind keep that over that holiday would you be within reach. That was a pretty fun experience, but easily. A great guy, a great family that have become very near and dear clients, there was a time that I went out and I was trying to get to an appointment, but there was a cow blocking traffic only in North Carolina right old Betsy was walking down the middle-of-the-road ecstatic police escort and traffic was blocked on both sides. She'd gotten out somewhere that was pretty fun.
I think the one that I actually I share with clients that really has kind of an impactful meeting is that early on in my career I have a day where I had received calls from the radio program from two very different individuals.
One was a oncologist, a cancer doctor at a local university hospital and the other was a deli manager at a grocery store check and I had appointments with both of them in the same day and I was more excited about one of them than the other and by the end of the day.
I was much more excited about the other, and I really realized who my ideal client was it was, not necessarily the person with the most money, although that helps right that's always a a a good positive starting point, but it does not ultimately determine your financial success landed. If you had $10 million in the bank. You asked me am I ready to retire. So how much do you spend a year and he said well about $1 million a year.
Sorry, but you're not ready to retire right that it's it's just you can retire and enjoy yourself or maybe tenant the 12 years but there's going to be some tough times and then the reality is going to call into the future. At some point, whereas if you got 300,000. But your Social Security is going to essentially cover all of your living expenses. That money is not even necessary for you to live the lifestyle that you are accustomed to. That's a pretty confident, stable financial position to work from into retirement and I was. I may not like those numbers, but that was essentially the difference between those two situations and I really understood at that moment after that day that we got control expenses first and then figure out a way to fill the income gap and generate the rest of whatever income is necessary, and then be able to look out in the future and and make sure that that money lasts. And that's a bit of reverse engineering and and backwards of the way that most of the financial industry has worked they want to focus on this lump sum in your retirement number and what your rate of return. All that's important.
But it's not the most important factor is going to determine, are you ready to retire. Not like I'm so tired at work but ready to retire, as in financially feasible that you can remain confident and stable throughout 2025 30 years or more in retirement. Well, you heard it here first folks your local financial advisor Peter Rochon with Rochon planning to visit the website www.richenplanning.com or give them a call at 919-300-5886 semester shop.
Whenever beginning or potential client walks into Rochon planning right here in Fuquay Marina, North Carolina.
How does that relationship begin well. It is actually often begins a little bit before that with a phone call and you don't have to be in Fuquay. Either we do virtual meetings and zoom in the wonders of technology.
I actually have clients spanning the world of God's military families that I serve my I have enjoyed serving military families for since the beginning of of my career I got a few that are Germany and Italy and we still have no face-to-face air quotes there. If you're listening on the radio. Face-to-face meetings of resume with technology makes it easy. We can certainly do that. Across town, but if desired. We are also real human beings with a real real brick and mortar office building right behind the biscuit bills if you'd like to stop in and get a biscuit and a couple coffee. We can certainly do that shake hands with each other in the eyes and talk about money and that first conversation. A lot of times clients were not yet maybe soon to be your considering me as their advisor clients walk in with a stack of paperwork sometimes is an of folder with dividers neatly organized. Sometimes it it it's just kind of bundled together and I'm going to need that information.
Eventually, to make recommendations with the first conversation is really about the same questions you been asking me like what's what's your background what your perspective on money.
What are your strongly held beliefs about money what you want money to do for you. What does it mean to you what you envision retirement to be about when and what worries you about your money.
If there was a 50% market correction and in the coming year.
Would that be of high concern for you know those kind of questions are ones that I talk about that first meeting of really know what your your family influences who you want to take care of that means I think this is for everyone, but especially is is is guys like II's. I sorry gender bias here, but I feel like I could live a very very simple life. A lot of the decisions I actually make about money are not necessarily for me there to support my family. My wife, my son, I want to give them good life's lives and opportunities if need be.
One day down the road I need to provide support for more extended family. I want to be that fallback cushion so you know talking those those aspects over. Do you envision yourself becoming a caretaker. Are you currently providing support. What about college education weddings down the road trips that you've always wanted to take like those are the kind of conversations and get into the money right.
Do you have a 401(k) with an employer match rate taken advantage of you have any debts you legal documents handled.
I'm not an attorney but of hard times after the first meeting is the highest priority that I give clients on their checklist of items to attack on their agenda so you know that's that's kind of the conversation that we have. Those are those are the kind of get to know you and if we both believe that we connect and we like each other and there will be mutual benefit.
We will talk about a follow-up meeting.
By the way, there is no cost, no obligation thus far and for that next meeting. If we do want to pursue that and and set that up there wouldn't be any cost or obligation for that because that's when we will really get into the planning specifics.
I will at that point in time. Look through and comb over documents and statements come back with a report and analysis for you and then we can go over that together I would tell you directly. What I would want to know is I woke up and all of those statements were mine. Here's what I would do as far as my next steps based on the conversations that we had and and what does that look like if we work together to execute on those action items and at that point in time we can talk about entering into a more official advisor client relationship and everything that entails what costs or expenses or compensation looks like and by the way, I can do any of the compensation models available to financial professionals. There's three fee-only for advice based on assets under management or commissions commission is a product sales not something I have to manage but it actually is one of the things that in my mind I can justify being in somebody's best interest more than almost anything else, because typically that is putting proper life insurance in place and if it is your goal to protect your family to pay off debts to replace income to pay off the mortgage to get children raised or just to make a spouse feel confident in spending money and enjoying time together in retirement, life insurance can fill that role not necessary for everyone, but it is part of what we can offer to our clients and if they do believe that it would be beneficial in addressing any of those needs. Then we can shop around for that is a commission because I'm not actually backing life. I just shop around for it and in that company would compensate me but more of of my clients have investment accounts, retirement accounts, IRAs, rocks, brokerage accounts that we are actually helping manage on an ongoing basis. In some want to do the management themselves. They just want to double check with a qualified experienced professional that they are doing things right so visit the email@example.com Rich on planning.com or give a call 919-300-5886 919-300-5886 so Peter shop when you were beginning advisor.
Obviously, there are probably things you didn't know that you know now so if you could go back in time until your beginning advisor so what would you tell yourself I was kind of lucky I guess because when I got into the financial industry.
The first license I got kind of the easiest one to get is one where you don't put people's money at risk. So where I was bringing on clients.
They were getting in a guaranteed interest rate or rate of return or could not lose money.
And guess what than 2007, 2008 2009 so I was actually a lot of people's hero. During that time because the market was down 52% and they hadn't lost anything and then for the next six or seven years 66 years, the market came roaring back in those same people who were very happy not to have lost anything or not. As Ed is excited to not be making the gains of the market and so I really looked that learned that there is balance and that you need to have both you need to have some safe, protective money, you need to have growth as well. And that's really what understanding your investment options is all about is what is each good at and purposed for and where can you find that balance and downtimes in the market may be fantastic opportunities for somebody in the right position with their money positioned correctly so we try to maintain that balance on an ongoing basis and on within somebody's individual risk tolerance minimize potential losses capture as much of the gains as possible and continue to monitor the plan. Along the way. I think those are some of the most important lessons I've learned that if I go back and tell my younger self. Hey this is this is what years of experience are really gonna drive home for you and that his parish on financial advisor fiduciary visit the firstname.lastname@example.org or give a call 9193005886919300586 facet baseline is set up as 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, including the possible loss of principal binary services offered through virtual capital management is a registered investment advisor. Fiduciary duty extends only to investment advisory advice does not extend to other activities such as insurance or broker-dealer services advisory clients are charged a quarterly fever as a commandment belligerent product for a commission which may result in a conflict of interest regarding compensation