Financial Choices Matter

If you really took inventory of your financial situation, you might find that you’ve been taking for granted some assets that make up a huge piece of your puzzle. Is it possible you should be putting a little more thought into some of these assets? Show Notes: 1:56 - Are you paying attention to your biggest assets? 2:32 - Should we be putting more thought into these assets? 3:32 - Asset #1: 401(k) 5:45 - Asset #2: House 8:54 - Asset #3: Social Security 11:15 - Asset #4: Smaller Accounts 13:38 - Mailbag: I have a lot of money in savings earning very little interest. 16:53 - Getting To Know Charles: What item would you want to be buried with?  

Sometimes events happen in life that make it really important for you to carefully assess your financial situation. Let’s explain why each of these events is usually a good reason for a financial review. Show Notes: 2:32 - Will Rogers Quote 4:00 - Life Events Can Spark Major Changes 9:50 - Unplanned Events Of Jobs 7:31 - Serious Medical Issue 11:09 - Estate Planning 17:56 - Mailbag Rick Worries About Running Out Of Money With Recent Downturn In The Market

The Coronavirus (COVID-19) is having a dramatic impact on our daily lives and many people are taking a huge financial hit from lost wages, a volatile stock market, and general economic uncertainty. Charles will talk about his thoughts on this situation and we will briefly mention a couple elements of the new CARES Act. Show Notes: 1:18 - How Business Has Been For Charles 3:27 - Being Able To Help A Client With The New CARES Act 6:03 - RMDs Are Not Required For 2020 8:51 - Taxes Will Have To Go Up, Which Is Why A Roth Conversion Might Be A Good Idea Right 12:00 - Great TP Shortage 13:49 - April Fools Story 15:53 - Mailbag Lucile Wonders What The Best Way To Save For Retirement Since She Cannot Contribute To A Roth

There are many "it depends" situations in financial and retirement planning. On today's show we look at some truths we can state with confidence. Show Notes: 2:07 - Financial Truths 3:17 - TV Can Be A Big Enemy 5:49 - The Market Moves In Cycles 8:10 - There’s No Magic Bullet 9:30 - Why Diversification Is Important 13:04 Mailbag Tim asks “My advisor is retiring and passing on the business. Should I Find A New Advisor?"

On today's episode Charles explains why people who give investment advice without a securities license are bugging him. We also talk about how past epidemics have affected the stock market and we answer a couple email questions that have come in. Show Notes: 1:46 - What's Bugging Charles? 6:25 - How Past Epidemics Have Affected The Stock Market 7:46 - You Need A Plan To Help During These Pullbacks 9:35 - Mailbag Question from Conner: "How To Pay For College In Retirement?' 13:07 - Mailbag Question from Denver: "How Much Long Term Care Is Recommended?"

With the national elections in November, the parties have VERY different opinions regarding who should be paying their fair share of income taxes. But do we really know who pays what? You certainly can’t rely on either political party to give you the straight information. We also dive into a discussion on how to reasonably incorporate emotions into your financial plan. Show Notes: 1:32 - Who Pays Income Tax? 2:20 - Income Tax Statistics From 2016 5:12 - Top Wage Earners 7:01 - Emotions In Financial Planning 7:29 - Fear And Greed 9:59 - Invest For The Long Term 10:55 - Using Emotions For A Good Cause 12:23 - Taking Clients' Emotions Into Consideration 16:49 - Mailbag Question from Frank: "My 401 (k) got rolled over into American Funds, is this a good thing?"

After it simmered in Congress for a year, the SECURE Act is now law. If you have a retirement account of any kind, or will one day inherit a retirement account, this will affect you. Matt will hit the main points of this new bill and how it will change retirement planning. Show Notes: 0:58 - The SECURE Act 1:23 - Death Of The Stretch IRA 2:14 - Small Businesses And Retirement Plans 2:48 - Required Minimum Distribution Change 3:38 - 10 Year Window Eliminated 5:36 - Multiple Beneficiaries 6:41 - Trusts Cannot Be A Contingent Beneficiary For An IRA 8:49 - Life Insurance As An Alternative Solution 14:17 - Mailbag Question from Emily: "Did 401 (k) Contributions Go Up?"

Mutual funds have long been the most popular way for people to invest, but is that landscape changing? Show Notes: 1:45 - Financial Dictionary: Tax Loss Harvesting 5:06 - Ins And Outs Of Mutual Funds 5:19 - Point #1: What Percentage Of Clients Have Mutual Funds When They First Come To See You? 6:24 - Point #2: Expense Ratios 7:58 - Point #3: Front Load, Back Load, No Load 9:20 - Point #4: Tax Issues Mutual Funds Can Create 11:07 - Point #5: Should Mutual Funds Be Eliminated? 12:59 - Mailbag Question from Confused: "How to consolidate multiple investment accounts?"

Trustworthy. Likable. Problem-solving. Good listener. We should be describing your financial advisor or a potential advisor if you’re in the process of finding one. On today’s show, we’ll talk about why it’s so important for your advisor to embrace these kinds of characteristics. That’s the easy part. But we’ll also tackle the harder part and discuss some tangible ways how you can determine if an advisor has these characteristics or not. Show Notes: 1:38 - Headline: Rand Paul Bill 6:45 - Traits A Financial Advisor Must Have 7:12 - Trait #1: Trust 8:56 - Trait #2: Likability 10:03 - Trait #3: Area Of Expertise 11:17 - Trait #4: Listening Ability 13:00 - Trait #5: Problem Solver 14:58 - Mailbag Question from Norm: "How much risk to take now that I'm in retirement?"

Myths, rumors, and misunderstandings are pervasive in the world of Social Security. On this show, we’ll look to clear up the top 5 misunderstandings about Social Security. Show Notes: 1:33 - Mailbag Question from Randall: "Places to start investing in for retirement." 5:21 - Top 5 Social Security Misunderstandings 5:42 - Misunderstanding #1: Social Security Is Going Broke 6:43 - Misunderstanding #2: You Should Start Social Security As Early As Possible 7:31 - Misunderstanding #3: You Should Start Social Security As Late As Possible 9:25 - Misunderstanding #4: The SSA Can Help You Choose The Best Strategy When You Go And See Them 11:37 - Misunderstanding #5: You Don't Pay Taxes On Social Security Benefits 14:48 - Do You See People Often Overestimating Their Risk Tolerance?

There are some people who don’t care at all about leaving a financial legacy, but for those who do, it’s important to eliminate some of the common estate planning mistakes. Show Notes: 0:56 - In The News: How the stock market might react to the result of the upcoming election 5:27 - Avoiding Critical Estate Planning Mistakes 5:43 - Mistake #1: Not Planning Your Expenses In Retirement 7:17 - Mistake #2: Beneficiary Designations 10:01 - Mistake #3: Not Considering The Tax Implications Of Your Estate 13:25 - Mailbag Question from Helen: "Are there really no tax implications to rolling over the 401 (k)?"

Sometimes being a good financial advisor means having uncomfortable conversations. We’ll take a look at how advisors should help clients navigate various tricky situations. Show Notes: 0:48 - Story Time: Tax Planning 3:48 - It's Good To Have Awkward Conversations 4:30 - Conversation #1: Death Of A Spouse 6:11 - Conversation #2: Nursing Home Care 8:50 - Conversation #3: Working Longer Than Expected 12:01 - Conversation #4: Legacy Planning 15:21 - Mailbag Question from Kevin: "My employer plans to stop matching 401k contributions..." 18:02 - Mailbag Question from Annie: "Most of my 401k is invested in company stock..."

While there are some factors that are different for everyone in retirement planning (variables), there are also constants that affect everyone, no matter the specifics of your situation. How do we plan around these constants? Show Notes: 2:13 - Retirement Constants That Affect Everyone 2:34 - Retirement Constant #1: Inflation 4:45 - Retirement Constant #2: Rising Taxes 6:37 - Retirement Constant #3: Market Volatility 9:15 - Retirement Constant #4: Healthcare 11:54 - Mailbag Question from Sally: "Are fees and commissions the same thing?" 13:48 - Mailbag Question from Lucy: "How often should I meet with my advisor?" 15:59 - Getting To Know Charles: What is your favorite movie genre?

There are some important lessons that flying can teach us about retirement planning. So check your luggage, strap into your seat and let's take a trip with Charles. Show Notes: 0:56 - What Flying Teaches Us About Retirement 2:11 - Lesson #1: Flight Plan 4:26 - Lesson #2: Turbulence 7:31 - Lesson #3: Air Traffic Control 11:13 - Mailbag Question from Tom: Term vs. Whole Life Insurance 13:41 - Getting To Know Charles: What job would you be terrible at?

Even for people who have been very responsible with their money over the years, entering retirement can still be a challenge because it’s such a different stage of life. Let’s talk about some of the missteps that even responsible savers can make… Show Notes: 1:16 - In The News: Wedding Loans 3:53 - Even Responsible Savers Make Mistakes 4:24 - Mistake #1: Don't Get Too Enamored With Cash 5:57 - Mistake #2: Don't Take Too Much Risk 7:27 - Mistake #3: Don't Forget About The Tax Time Bomb 9:09 - Mistake #4: Live A Little 11:06 - Mailbag Question from Raymond: "I haven't paid much into Social Security..."      

Today’s episode is simple. We’ll look at some of the most widely believed financial myths and try to bust them wide open. The scary thing is that a lot of people base their financial plans on some of these myths. Show Notes: 2:17 Helping clients understand how their financial jigsaw puzzle fits together 5:58 Myth 1: Shifting from stocks to bonds removes the volatility from your portfolio 7:32 Myth 2: Once you've retired, life insurance is no longer necessary 9:12 Myth 3: You will need less income when you retire than you do when you're working 10: 26 Myth 4: You will probably be in a lower tax bracket when you retire 11:43 Myth 5: Financial planning is much easier to do without professional help because of all of the technology that is now available 13:40 Email Question: Investing in oil wells

Very often, we find that people wil stick with a broker or financial advisor who's doing a less than stellar job, and there's usually a handful of reasons why. Charles will poke some holes in those excuses, and give you a healthier picture of what your financial advisor should be doing for you if he or she is truly a good fit. We'll also take a look at some recent news items related to the student loan debt crisis. Show Notes: 1:45 - In The News: Proposed solutions to student loan debt crisis 5:41 - Why Are You Making Excuses For Sticking With The Wrong Advisor?  7:42 - Common Excuses: "I get confused when there's a meeting." 11:16 - Mailbag Question from Alex: Should I take risk off the table with my 401(k)?

Some people (in fact, probably most people) find it easy to procrastinate when it comes to financial planning issues. But let’s talk about some scenarios that might cause people to have a bit more sense of urgency. Show Notes: 1:43 - Mailbag Question from Blair: Why am I not in a lower tax bracket in retirement? 5:45 - Sense of Urgency: Scenario 1 - Loss of a job 7:09 - Sense of Urgency: Scenario 2 - Receiving a retirement buyout offer 8:39 - Sense of Urgency: Scenario 3 - Procrastination in planning for retirement 11:20 - Sense of Urgency: Scenario 4 - Death of a spouse 13:07 - Sense of Urgency: Scenario 5 - Market takes a dip 15:07 - Charles makes an important announcement about financial education 17:25 - Getting to know Charles - What area is Charles an expert in outside the financial world?  

Your 401k can be your most powerful retirement savings tool. But it’s not perfect. Let’s talk about some of the weaknesses that you should be aware of in your 401k (or 403b, or TSP, or 457 plan). Show Notes: 1:24 - News headline about the SECURE Act 4:33 - Exposing 401(k) weaknesses 7:43 - Charles shares a tip on moving 401(k) plans outside your company 10:36 - Mailbag Question from Angie: Are all long-term care policies this expensive?      

Of course, saving money on taxes is important. But when tax advantages are being pitched as the primary benefit of an investment, should we be concerned? Charles will help us tackle the pros and cons on this week's episode. We'll also answer a question from Roberta about investing a large amount of her 401k in company stock. Show Notes: 2:00 - Mailbag question from Roberta: Is it okay to have a majority of my 401k in company stock since I know the company well? 7:14 - Are tax advantages in investments overrated? 13:06 - Getting to know Charles: Did you ever get into any trouble when you were younger?