Transcript
1
00:00:00,460 --> 00:00:03,080
Welcome to Something More with Chris Boyd.
2
00:00:03,320 --> 00:00:06,120
Chris Boyd is a certified financial planner, practitioner,
3
00:00:06,360 --> 00:00:08,880
and senior vice president and financial advisor at
4
00:00:08,880 --> 00:00:11,160
Wealth Enhancement Group, one of the nation's largest
5
00:00:11,160 --> 00:00:12,780
registered investment advisors.
6
00:00:13,320 --> 00:00:15,219
We call it Something More because we'd like
7
00:00:15,219 --> 00:00:17,340
to talk not only about those important dollar
8
00:00:17,340 --> 00:00:19,520
and cents issues, but also the quality of
9
00:00:19,520 --> 00:00:21,960
life issues that make the money matters matter.
10
00:00:22,480 --> 00:00:25,720
Here he is, your fulfillment facilitator, your partner
11
00:00:25,720 --> 00:00:28,860
in prosperity, advising clients on Cape Cod and
12
00:00:28,860 --> 00:00:29,920
across the country.
13
00:00:30,280 --> 00:00:32,740
Here's your host, Jay Christopher Boyd.
14
00:00:33,400 --> 00:00:34,440
Welcome, everybody.
15
00:00:34,640 --> 00:00:36,400
Thanks for being with us for another episode
16
00:00:36,400 --> 00:00:37,880
of Something More with Chris Boyd.
17
00:00:37,920 --> 00:00:39,200
I'm here with Jeff Perry.
18
00:00:39,560 --> 00:00:42,340
We are both of the AMR team at
19
00:00:42,340 --> 00:00:45,640
Wealth Enhancement Group and our show today.
20
00:00:46,260 --> 00:00:47,940
We're going to talk about a variety of
21
00:00:47,940 --> 00:00:50,380
things, but the first of them is about
22
00:00:50,380 --> 00:00:54,440
this 80% thought process.
23
00:00:54,520 --> 00:00:55,520
I'm going to call it the 80%
24
00:00:55,520 --> 00:00:59,000
rule, but that's exactly what we might call
25
00:00:59,000 --> 00:01:00,160
it, but we'll come back to that in
26
00:01:00,160 --> 00:01:00,480
a second.
27
00:01:00,920 --> 00:01:03,879
Before we get started, I wanted to ask
28
00:01:03,879 --> 00:01:07,160
you all to please share our show with
29
00:01:07,160 --> 00:01:07,860
someone else.
30
00:01:08,800 --> 00:01:12,060
We love doing the show and we'd love
31
00:01:12,060 --> 00:01:14,140
to help more people and reach more people.
32
00:01:14,680 --> 00:01:19,980
Your ratings and sharing of the show is
33
00:01:19,980 --> 00:01:21,960
really the best way for us to reach
34
00:01:21,960 --> 00:01:22,560
more people.
35
00:01:22,820 --> 00:01:25,440
If you find the show helpful and enjoyable,
36
00:01:26,080 --> 00:01:27,000
share it with someone else.
37
00:01:27,240 --> 00:01:29,560
Give us a rating on where you like
38
00:01:29,560 --> 00:01:30,040
to listen.
39
00:01:30,700 --> 00:01:33,620
If you're not, by the way, watching us
40
00:01:33,620 --> 00:01:36,380
from time to time, do you know that
41
00:01:36,380 --> 00:01:39,100
we are now posting our shows both on
42
00:01:39,100 --> 00:01:42,780
YouTube on the Wealth Enhancement Group page and
43
00:01:42,780 --> 00:01:45,720
on our webpage, which you can find at
44
00:01:45,720 --> 00:01:47,420
somethingmorewithchrisboy.com.
45
00:01:48,060 --> 00:01:50,760
From time to time, join us on video
46
00:01:50,760 --> 00:01:53,560
as well as the audio podcast.
47
00:01:54,180 --> 00:01:55,960
You can find the audio podcast wherever you
48
00:01:55,960 --> 00:01:57,040
like to listen to audios.
49
00:01:57,560 --> 00:01:59,620
Hopefully you have and that's how you're listening
50
00:01:59,620 --> 00:02:00,200
right now.
51
00:02:01,140 --> 00:02:03,040
Jeff, I wanted to at least mention that
52
00:02:03,040 --> 00:02:03,860
from time to time.
53
00:02:03,880 --> 00:02:04,500
No, it's good.
54
00:02:04,700 --> 00:02:05,900
I appreciate it.
55
00:02:06,140 --> 00:02:07,240
It definitely works.
56
00:02:07,320 --> 00:02:09,060
The more people share and like and rate
57
00:02:09,060 --> 00:02:11,160
our shows, the more it gets into the
58
00:02:11,160 --> 00:02:13,120
algorithms and so more people can see it.
59
00:02:15,620 --> 00:02:18,760
So, that being said, 80%.
60
00:02:18,760 --> 00:02:20,100
What the heck are we talking about?
61
00:02:20,120 --> 00:02:21,280
I thought it was a 4% rule.
62
00:02:21,380 --> 00:02:22,640
What's this 80% thing?
63
00:02:23,200 --> 00:02:24,580
80% is a B minus.
64
00:02:24,900 --> 00:02:25,720
Is that good enough?
65
00:02:26,000 --> 00:02:26,500
Yeah.
66
00:02:29,260 --> 00:02:33,720
Oftentimes when people think about retirement and what
67
00:02:33,720 --> 00:02:36,740
they're going to spend, there's this rule of
68
00:02:36,740 --> 00:02:41,060
thumb or perspective that you're not going to
69
00:02:41,060 --> 00:02:43,280
spend as much in retirement as you do
70
00:02:43,280 --> 00:02:44,360
while you're working.
71
00:02:44,440 --> 00:02:44,980
Why is that?
72
00:02:45,080 --> 00:02:48,400
Well, you might not be commuting.
73
00:02:49,360 --> 00:02:51,540
You'll spend less on your car and all
74
00:02:51,540 --> 00:02:54,600
that goes into the maintenance and the gasoline
75
00:02:54,600 --> 00:02:55,280
and so forth.
76
00:02:55,380 --> 00:02:56,420
Oh, your costs go down.
77
00:02:56,520 --> 00:02:57,240
That's one reason.
78
00:02:57,560 --> 00:02:58,920
I won't need to spend as much on
79
00:02:58,920 --> 00:02:59,740
my wardrobe.
80
00:03:00,220 --> 00:03:01,140
Yeah, dry cleaning, right?
81
00:03:01,720 --> 00:03:04,040
Dry cleaning or I got to get a
82
00:03:04,040 --> 00:03:05,680
new suit now and then or whatever it
83
00:03:05,680 --> 00:03:06,100
is, right?
84
00:03:06,100 --> 00:03:06,620
Yep.
85
00:03:09,300 --> 00:03:11,480
So, that's part of the rationale.
86
00:03:12,260 --> 00:03:15,420
No more business lunches if they weren't reimbursed
87
00:03:15,420 --> 00:03:17,080
or there's a lot of things that will
88
00:03:17,080 --> 00:03:17,400
come up.
89
00:03:17,420 --> 00:03:19,180
That you spend money going out to lunch
90
00:03:19,180 --> 00:03:20,140
more often or something.
91
00:03:20,560 --> 00:03:21,220
Yeah, good point.
92
00:03:21,700 --> 00:03:23,100
So, okay.
93
00:03:23,740 --> 00:03:25,420
Well, let's talk about that for a minute,
94
00:03:25,620 --> 00:03:25,860
Jeff.
95
00:03:26,320 --> 00:03:27,360
Is that true?
96
00:03:28,440 --> 00:03:30,320
Will my expenses go down?
97
00:03:30,660 --> 00:03:33,100
Absolutely true if you're just going to sit
98
00:03:33,100 --> 00:03:33,980
on the couch all day.
99
00:03:35,240 --> 00:03:36,980
And you're not driving anywhere.
100
00:03:37,100 --> 00:03:38,340
You're not going out to eat.
101
00:03:38,480 --> 00:03:40,560
You're not going to get any new clothes
102
00:03:40,560 --> 00:03:43,220
for your retirement life.
103
00:03:43,260 --> 00:03:44,320
You're not going to have any hobbies.
104
00:03:44,960 --> 00:03:46,300
You're not going to do anything at all.
105
00:03:46,780 --> 00:03:48,080
Yes, that is accurate.
106
00:03:49,600 --> 00:03:52,060
So, in other words, that's not really probably
107
00:03:52,060 --> 00:03:52,720
accurate.
108
00:03:53,700 --> 00:03:55,840
Because we do have other things we want
109
00:03:55,840 --> 00:03:57,660
to do with our time when we're not
110
00:03:57,660 --> 00:03:58,740
working.
111
00:03:59,480 --> 00:04:02,660
We do other things and those things can
112
00:04:02,660 --> 00:04:03,420
add costs.
113
00:04:03,700 --> 00:04:07,020
Now, sometimes it's just out and about and,
114
00:04:07,040 --> 00:04:08,960
oh, we go out to breakfast more.
115
00:04:09,040 --> 00:04:10,280
We go out to lunch more.
116
00:04:10,520 --> 00:04:13,460
We have more social engagements.
117
00:04:13,820 --> 00:04:15,899
Maybe we just go shopping more.
118
00:04:16,279 --> 00:04:18,420
I see and I live in Florida.
119
00:04:18,579 --> 00:04:19,220
I live in a...
120
00:04:19,880 --> 00:04:21,780
It's not a per se retirement community, but
121
00:04:21,780 --> 00:04:23,100
there's lots of retired people.
122
00:04:23,300 --> 00:04:25,620
And I see shopping as entertainment for people.
123
00:04:25,680 --> 00:04:26,240
That's right.
124
00:04:26,240 --> 00:04:28,580
Shopping, going out to eat is entertainment.
125
00:04:28,820 --> 00:04:30,920
That's what they do to break up the
126
00:04:30,920 --> 00:04:31,220
day.
127
00:04:31,240 --> 00:04:32,220
To pass the time.
128
00:04:32,440 --> 00:04:34,760
And so, is it true?
129
00:04:34,960 --> 00:04:36,340
I think we have to be a little
130
00:04:36,340 --> 00:04:38,340
bit skeptical of that notion.
131
00:04:38,500 --> 00:04:41,820
Now, if we want to get granular, because
132
00:04:41,820 --> 00:04:44,440
let's say we think in terms of our
133
00:04:44,440 --> 00:04:47,780
expenses and we say, well, I've got it
134
00:04:47,780 --> 00:04:50,380
almost set up that my mortgage is going
135
00:04:50,380 --> 00:04:53,840
to be paid off about the time I
136
00:04:53,840 --> 00:04:54,040
retire.
137
00:04:54,040 --> 00:04:55,360
Well, that's practical.
138
00:04:55,520 --> 00:04:56,240
That's relevant.
139
00:04:56,420 --> 00:04:56,600
Okay.
140
00:04:56,740 --> 00:04:59,840
Maybe that's a good example of an expense
141
00:04:59,840 --> 00:05:03,760
reduction because you've got that paid off.
142
00:05:04,720 --> 00:05:06,200
So, that's a possibility.
143
00:05:06,240 --> 00:05:07,520
That could be downsizing.
144
00:05:07,680 --> 00:05:11,940
Things like that that are really concrete.
145
00:05:12,200 --> 00:05:13,740
You can say, I'm not going to have
146
00:05:13,740 --> 00:05:17,620
this $2,000 mortgage or I'm moving to
147
00:05:17,620 --> 00:05:19,220
a less expensive home.
148
00:05:19,300 --> 00:05:20,980
My expenses on a home will be...
149
00:05:20,980 --> 00:05:24,320
Therefore, my energy costs, my upkeep costs, et
150
00:05:24,320 --> 00:05:27,600
cetera, plowing and so forth, whatever.
151
00:05:28,280 --> 00:05:31,960
The upkeep outside, inside might go down.
152
00:05:33,200 --> 00:05:34,340
That's a good point.
153
00:05:34,720 --> 00:05:37,860
So, I think we have to get specific
154
00:05:37,860 --> 00:05:40,680
as we think about some of these considerations
155
00:05:40,680 --> 00:05:42,800
when we put our numbers together.
156
00:05:43,320 --> 00:05:46,100
I was doing this financial plan as a
157
00:05:46,100 --> 00:05:49,460
project thing with a group of planners and
158
00:05:49,460 --> 00:05:55,520
the case scenario was assuming 75% expenses.
159
00:05:56,420 --> 00:05:57,400
I was like, well, wait a second.
160
00:05:57,500 --> 00:05:58,660
How are we coming up with that?
161
00:05:59,140 --> 00:06:03,420
Now, in this case study, the people stopped
162
00:06:03,420 --> 00:06:05,920
contributing to their work investment plan.
163
00:06:06,560 --> 00:06:07,080
Okay.
164
00:06:07,340 --> 00:06:07,640
All right.
165
00:06:07,740 --> 00:06:11,420
If you're considering that an expense, then yeah,
166
00:06:11,620 --> 00:06:14,160
you're not going to be investing the way
167
00:06:14,160 --> 00:06:15,960
you did pre-retirement.
168
00:06:16,700 --> 00:06:20,540
So, that's a reduction in expenses if we're
169
00:06:20,540 --> 00:06:21,620
calling that an expense.
170
00:06:22,260 --> 00:06:24,280
I think I'm air quotes, fingers moving.
171
00:06:24,620 --> 00:06:26,300
Cash flow, right?
172
00:06:26,780 --> 00:06:26,980
Yeah.
173
00:06:27,120 --> 00:06:28,060
Coming out of your cash flow.
174
00:06:28,240 --> 00:06:32,540
So, investment, there's a number of considerations of
175
00:06:32,540 --> 00:06:35,600
how people might have extra money going into
176
00:06:35,600 --> 00:06:36,220
investment.
177
00:06:36,220 --> 00:06:39,200
And if we're considering that as part of
178
00:06:39,200 --> 00:06:42,000
that reason, we're going to have reduction in
179
00:06:42,000 --> 00:06:42,420
expenses.
180
00:06:42,600 --> 00:06:42,860
Okay.
181
00:06:43,000 --> 00:06:43,980
I get that.
182
00:06:44,520 --> 00:06:46,860
If we're only looking at our expenses, what
183
00:06:46,860 --> 00:06:50,160
we're really spending, then it's a different story.
184
00:06:50,320 --> 00:06:52,040
I don't think you're really going to be
185
00:06:52,040 --> 00:06:57,260
spending 75, 80% of your expenses because
186
00:06:57,260 --> 00:06:59,700
you still have priorities.
187
00:06:59,820 --> 00:07:01,840
And then you may do new things.
188
00:07:01,840 --> 00:07:03,240
I want to travel.
189
00:07:03,620 --> 00:07:04,480
You said hobbies.
190
00:07:04,660 --> 00:07:07,640
I might take up golf or something else.
191
00:07:07,920 --> 00:07:10,860
Pickleball for Jeff here, right?
192
00:07:11,640 --> 00:07:13,160
At least I picked one that doesn't cost
193
00:07:13,160 --> 00:07:13,500
much money.
194
00:07:13,500 --> 00:07:15,140
It's not a big, expensive hobby though.
195
00:07:15,220 --> 00:07:16,340
After you get your paddle.
196
00:07:16,420 --> 00:07:17,700
You get a paddle and a couple of
197
00:07:17,700 --> 00:07:18,900
balls, you're good to go, right?
198
00:07:18,980 --> 00:07:19,560
Maybe sneakers.
199
00:07:19,640 --> 00:07:20,280
Some shoes.
200
00:07:20,600 --> 00:07:20,800
Yeah.
201
00:07:21,180 --> 00:07:21,820
Oh, and a shirt.
202
00:07:22,040 --> 00:07:22,460
Wait a minute.
203
00:07:23,840 --> 00:07:25,580
I got to pay the money to enter
204
00:07:25,580 --> 00:07:26,320
the tournaments.
205
00:07:26,700 --> 00:07:27,200
There you go.
206
00:07:27,340 --> 00:07:29,280
Campus bag maybe to carry your stuff.
207
00:07:30,680 --> 00:07:32,300
And drinks after, of course.
208
00:07:33,620 --> 00:07:35,520
So you get the point, right?
209
00:07:35,800 --> 00:07:38,580
Even an inexpensive hobby has a few costs.
210
00:07:40,620 --> 00:07:43,580
But look, I think the point is you're
211
00:07:43,580 --> 00:07:44,940
going to do stuff with your time.
212
00:07:45,820 --> 00:07:49,000
And some of those are expensive hobbies.
213
00:07:49,240 --> 00:07:51,260
I think of golf as being a little
214
00:07:51,260 --> 00:07:52,460
more pricey.
215
00:07:52,660 --> 00:07:54,070
You can do it in a way that's
216
00:07:54,070 --> 00:07:56,850
reasonable with where you go and how you
217
00:07:56,850 --> 00:07:57,750
do it.
218
00:07:58,010 --> 00:07:59,870
But yeah, let's face it.
219
00:07:59,930 --> 00:08:01,450
There's some expense in these things.
220
00:08:01,630 --> 00:08:05,210
And so whatever that may be for you.
221
00:08:05,310 --> 00:08:08,730
It's usually like pent up dreams or demand,
222
00:08:08,870 --> 00:08:09,370
we'll call it.
223
00:08:09,510 --> 00:08:12,030
Like when I retire, I'm going to travel,
224
00:08:12,370 --> 00:08:12,530
right?
225
00:08:13,470 --> 00:08:14,490
You'll see the world.
226
00:08:14,730 --> 00:08:15,170
That's right.
227
00:08:15,330 --> 00:08:17,550
And that can get, I mean, I hope
228
00:08:17,550 --> 00:08:17,890
you do.
229
00:08:18,090 --> 00:08:18,590
That's why.
230
00:08:18,730 --> 00:08:18,930
Yeah.
231
00:08:19,150 --> 00:08:22,110
Or even the, oh, I'm not going to
232
00:08:22,110 --> 00:08:22,350
go.
233
00:08:22,350 --> 00:08:23,770
I don't need to go to Europe.
234
00:08:24,410 --> 00:08:25,750
I'm going to see this country.
235
00:08:25,850 --> 00:08:26,790
There's plenty to see here.
236
00:08:27,110 --> 00:08:28,490
Well, you end up getting the RV or
237
00:08:28,490 --> 00:08:30,430
the trailer or something, right?
238
00:08:30,710 --> 00:08:31,330
Or renting.
239
00:08:33,650 --> 00:08:36,030
You end up doing things that have costs.
240
00:08:37,270 --> 00:08:44,270
So 80%, our thought process here is be
241
00:08:44,270 --> 00:08:47,670
very careful of making a general assumption like
242
00:08:47,670 --> 00:08:48,010
that.
243
00:08:48,070 --> 00:08:50,130
Unless you're getting into the weeds a little
244
00:08:50,130 --> 00:08:51,590
bit and saying, oh, well, the reason I
245
00:08:51,590 --> 00:08:55,570
say 80% is I'm not contributing 15
246
00:08:55,570 --> 00:08:58,470
% to my retirement plan, 5% to
247
00:08:59,190 --> 00:09:00,510
her retirement plan.
248
00:09:01,350 --> 00:09:05,730
And we're not saving for outside the retirement
249
00:09:05,730 --> 00:09:07,410
plan, et cetera, et cetera.
250
00:09:07,610 --> 00:09:07,790
Okay.
251
00:09:07,910 --> 00:09:09,330
That could really get that.
252
00:09:09,550 --> 00:09:11,790
Oh, our mortgage has gone away, et cetera.
253
00:09:12,290 --> 00:09:12,710
Okay.
254
00:09:12,810 --> 00:09:14,490
Now we're getting somewhere where I can see,
255
00:09:14,670 --> 00:09:18,190
oh, that's why we're saying there's a reduction.
256
00:09:19,270 --> 00:09:22,870
Outside of that, I would actually argue you're
257
00:09:22,870 --> 00:09:24,330
probably going to spend a little more.
258
00:09:25,010 --> 00:09:27,210
We talked about the retirement smile, Jeff.
259
00:09:27,450 --> 00:09:27,730
Right.
260
00:09:28,550 --> 00:09:29,030
Sure.
261
00:09:29,390 --> 00:09:31,490
So if you picture a smile, just draw
262
00:09:31,490 --> 00:09:33,570
an air smile, and you see the two
263
00:09:33,570 --> 00:09:37,210
highest points upward are at the beginning of
264
00:09:37,210 --> 00:09:38,850
the smile and the end of the smile.
265
00:09:38,930 --> 00:09:41,450
Meaning when you start your retirement, your spending
266
00:09:41,450 --> 00:09:43,570
is likely to be at a higher rate.
267
00:09:43,910 --> 00:09:44,530
Or elevated.
268
00:09:45,010 --> 00:09:45,650
A little elevated.
269
00:09:45,870 --> 00:09:48,010
Maybe these vacations are things you want to
270
00:09:48,010 --> 00:09:50,610
buy or hobbies or whatever it is.
271
00:09:51,030 --> 00:09:53,190
And as you are in your retirement, the
272
00:09:53,190 --> 00:09:55,190
cost goes down, down, down.
273
00:09:55,330 --> 00:09:56,890
With the theory near the bottom of your
274
00:09:56,890 --> 00:09:59,210
cost is you're still reasonably healthy, but you're
275
00:09:59,210 --> 00:10:00,210
not doing as much.
276
00:10:00,290 --> 00:10:01,630
You're into more routines.
277
00:10:01,850 --> 00:10:04,330
Maybe you've done it and now you're more
278
00:10:04,330 --> 00:10:05,790
content to just in your routine.
279
00:10:06,170 --> 00:10:06,310
Yeah.
280
00:10:06,430 --> 00:10:08,750
And then thinking the smile is going back
281
00:10:08,750 --> 00:10:09,870
up, you're getting older.
282
00:10:10,430 --> 00:10:12,950
Maybe you need some assistance with things you
283
00:10:12,950 --> 00:10:13,930
used to do yourself.
284
00:10:14,130 --> 00:10:15,370
Or maybe you need some help in the
285
00:10:15,370 --> 00:10:15,790
house.
286
00:10:16,150 --> 00:10:17,810
Or maybe you need a caregiver.
287
00:10:18,110 --> 00:10:19,350
Maybe you need assisted living.
288
00:10:19,870 --> 00:10:21,050
Whatever the situation is.
289
00:10:21,250 --> 00:10:23,950
So according to the retirement smile, at the
290
00:10:23,950 --> 00:10:25,510
end of your near the end of your
291
00:10:25,510 --> 00:10:27,670
life, your expenses are high.
292
00:10:27,750 --> 00:10:30,190
Not for the vacation reasons, but maybe for
293
00:10:30,190 --> 00:10:30,950
some extra help.
294
00:10:31,190 --> 00:10:33,070
Different costs that you might have related to
295
00:10:33,070 --> 00:10:33,550
health care.
296
00:10:33,690 --> 00:10:33,890
Yeah.
297
00:10:34,670 --> 00:10:35,150
Good point.
298
00:10:35,290 --> 00:10:40,450
So, you know, I think as you approach
299
00:10:40,450 --> 00:10:44,090
retirement, as you get into retirement, uh, going
300
00:10:44,090 --> 00:10:47,490
through retirement, it becomes important to not think
301
00:10:47,490 --> 00:10:49,110
of your plan as static.
302
00:10:50,050 --> 00:10:53,550
And, um, you know, I, I think when
303
00:10:53,550 --> 00:10:55,650
we start, it's one thing to start with
304
00:10:55,650 --> 00:10:59,210
a number and, uh, what can happen is
305
00:10:59,210 --> 00:11:02,350
over time we find what really happens.
306
00:11:02,970 --> 00:11:05,170
You know, we're making an assumption of what
307
00:11:05,170 --> 00:11:07,190
we're going to do, but then we need
308
00:11:07,190 --> 00:11:09,630
to keep updating the plan and revising it
309
00:11:09,630 --> 00:11:12,070
and reviewing it to say, does it work?
310
00:11:13,110 --> 00:11:14,530
Uh, is this, am I on a path
311
00:11:14,530 --> 00:11:15,630
that is sustainable?
312
00:11:16,510 --> 00:11:19,210
And, uh, if not, well, I might need
313
00:11:19,210 --> 00:11:20,150
to take some action.
314
00:11:20,530 --> 00:11:21,910
And if so, we're good.
315
00:11:22,030 --> 00:11:22,450
We're good.
316
00:11:22,550 --> 00:11:23,450
We're doing our thing.
317
00:11:23,710 --> 00:11:24,150
You know?
318
00:11:24,810 --> 00:11:28,150
Um, so that kind of brings us maybe
319
00:11:28,150 --> 00:11:32,350
Jeff to talking about, um, with clients, why
320
00:11:32,350 --> 00:11:33,530
do we do an annual review?
321
00:11:33,910 --> 00:11:34,710
Why is it important?
322
00:11:35,190 --> 00:11:35,670
Absolutely.
323
00:11:36,390 --> 00:11:38,070
You know, we, we, we have this plan
324
00:11:38,070 --> 00:11:40,250
throughout our accumulation phase.
325
00:11:40,350 --> 00:11:42,630
We're going to contribute so much to our
326
00:11:42,630 --> 00:11:44,950
retirement account, to this and that we're going
327
00:11:44,950 --> 00:11:46,470
to pay down our mortgage, all these things
328
00:11:46,470 --> 00:11:48,310
that we're trying to do to get ready
329
00:11:48,310 --> 00:11:50,630
to reach that land of critical mass or
330
00:11:50,630 --> 00:11:51,390
what's your number.
331
00:11:51,510 --> 00:11:54,250
And you get there and that's, that is
332
00:11:54,250 --> 00:11:56,570
definitely, and you meet with your advisor, see
333
00:11:56,570 --> 00:12:00,750
how you're doing tracking your debt reduction and
334
00:12:00,750 --> 00:12:01,590
your investments.
335
00:12:01,590 --> 00:12:02,270
Yeah.
336
00:12:02,430 --> 00:12:05,630
And then you feel comfortable, you retire, but
337
00:12:05,630 --> 00:12:07,330
that is certainly not the end of the
338
00:12:07,330 --> 00:12:09,090
story when you need to like be on
339
00:12:09,090 --> 00:12:11,510
top of your numbers and in top of
340
00:12:11,510 --> 00:12:15,910
your plan, because this next phase is somewhat,
341
00:12:16,430 --> 00:12:18,730
I can argue more critical to have these
342
00:12:18,730 --> 00:12:20,330
reviews and make sure you're on a plan
343
00:12:20,330 --> 00:12:23,610
because you don't have the ability to increase
344
00:12:23,610 --> 00:12:24,750
your income so much.
345
00:12:24,770 --> 00:12:25,010
Right.
346
00:12:25,570 --> 00:12:26,090
Yeah.
347
00:12:26,250 --> 00:12:28,790
I have to tell you, it's not uncommon
348
00:12:28,790 --> 00:12:31,410
for people to sort of set out their
349
00:12:31,410 --> 00:12:34,570
plan saying, I'm going to spend X and
350
00:12:34,570 --> 00:12:36,490
they start down the path to retirement.
351
00:12:37,690 --> 00:12:41,410
And as they get a little more granular,
352
00:12:42,730 --> 00:12:45,110
well, you know, that the house needs a
353
00:12:45,110 --> 00:12:46,210
little bit of this and that.
354
00:12:46,810 --> 00:12:48,430
Well, we did want to take that trip
355
00:12:48,430 --> 00:12:51,750
and it turns out maybe their expenses are
356
00:12:51,750 --> 00:12:54,210
materially different than they expected.
357
00:12:57,450 --> 00:12:57,930
Absolutely.
358
00:12:57,930 --> 00:13:00,270
And so as we look back over a
359
00:13:00,270 --> 00:13:03,310
few years and say, wait a second, you
360
00:13:03,310 --> 00:13:05,130
know, when you retired, you were thinking you're
361
00:13:05,130 --> 00:13:07,410
going to spend X, but now you're spending
362
00:13:07,410 --> 00:13:08,850
two X or whatever.
363
00:13:11,090 --> 00:13:12,490
That's a different plan.
364
00:13:13,030 --> 00:13:14,550
And how are we going to deal with
365
00:13:14,550 --> 00:13:14,790
that?
366
00:13:16,190 --> 00:13:16,670
Right.
367
00:13:16,770 --> 00:13:18,350
And that can be, that can be just
368
00:13:18,350 --> 00:13:21,830
your cashflow you projected wrong, or you've been
369
00:13:21,830 --> 00:13:24,410
too generous to yourself, perhaps.
370
00:13:25,490 --> 00:13:27,410
Or it can be that something's happened that,
371
00:13:27,710 --> 00:13:29,570
you know, maybe that we talk about when
372
00:13:29,570 --> 00:13:32,670
we do our financial planning, the what ifs
373
00:13:32,670 --> 00:13:35,210
of life, you know, what happens, you know,
374
00:13:35,230 --> 00:13:36,190
good or bad things.
375
00:13:36,410 --> 00:13:38,090
So one of these, what ifs may have
376
00:13:38,090 --> 00:13:38,550
happened.
377
00:13:39,010 --> 00:13:39,290
Yeah.
378
00:13:39,750 --> 00:13:40,230
Something.
379
00:13:40,830 --> 00:13:44,610
Good examples, like a divorced and now they're
380
00:13:44,610 --> 00:13:47,970
got a financial dependency on you for some
381
00:13:47,970 --> 00:13:50,390
help for a time, or I don't know,
382
00:13:50,510 --> 00:13:51,590
what's another common example?
383
00:13:51,590 --> 00:13:52,950
Well, you know, a lot of people go
384
00:13:52,950 --> 00:13:54,690
into, they leave their full-time job, but
385
00:13:54,690 --> 00:13:56,970
their plan is to work another 10 years,
386
00:13:57,510 --> 00:14:00,110
make half the amount of money.
387
00:14:00,230 --> 00:14:02,710
And maybe somebody's got a health issue or
388
00:14:02,710 --> 00:14:04,130
a disability that they didn't expect.
389
00:14:04,530 --> 00:14:06,090
For whatever reason, they're not working.
390
00:14:06,450 --> 00:14:09,570
So that extra income to support the plan
391
00:14:09,570 --> 00:14:13,290
or your investments, maybe you were too aggressive.
392
00:14:13,450 --> 00:14:15,290
Maybe you weren't working with somebody who was,
393
00:14:15,730 --> 00:14:17,530
you know, had your risk tolerance, right.
394
00:14:17,570 --> 00:14:19,030
And you were taking too much risk or
395
00:14:19,030 --> 00:14:19,870
even the opposite.
396
00:14:20,170 --> 00:14:22,730
Maybe you're doing your own DIY planning and
397
00:14:22,730 --> 00:14:24,190
you said, all right, I'm retired.
398
00:14:24,410 --> 00:14:26,530
I'm coming totally out of the markets.
399
00:14:26,750 --> 00:14:30,330
Now I'm putting it in to this money
400
00:14:30,330 --> 00:14:32,110
market fund that's getting 6%.
401
00:14:32,110 --> 00:14:34,090
And then all of a sudden interest rates
402
00:14:34,090 --> 00:14:34,630
go down.
403
00:14:34,630 --> 00:14:36,930
And that 6% return that you thought
404
00:14:36,930 --> 00:14:38,590
you could live on is 2%.
405
00:14:38,590 --> 00:14:39,290
Yeah.
406
00:14:39,570 --> 00:14:42,930
So a lot of things change every year.
407
00:14:43,010 --> 00:14:45,830
And, you know, I think the annual reviews
408
00:14:45,830 --> 00:14:49,190
are people, we tell our clients this and
409
00:14:49,190 --> 00:14:50,890
many of them participate.
410
00:14:51,150 --> 00:14:53,870
Some don't, they don't want to do it.
411
00:14:54,030 --> 00:14:56,550
Or they're just feeling like, oh, I'm happy
412
00:14:56,550 --> 00:14:57,790
with the way things are going.
413
00:14:57,990 --> 00:14:59,930
Not much has changed in my life, you
414
00:14:59,930 --> 00:15:01,010
know, that kind of thing.
415
00:15:01,430 --> 00:15:03,370
But we still would like to have that
416
00:15:03,370 --> 00:15:04,050
meeting anyway.
417
00:15:04,310 --> 00:15:04,730
We would.
418
00:15:04,830 --> 00:15:05,890
I am surprised.
419
00:15:06,330 --> 00:15:07,990
One of the things, I've been doing this
420
00:15:07,990 --> 00:15:11,090
four years with you, Chris, but in some
421
00:15:11,090 --> 00:15:12,950
things are surprising still.
422
00:15:13,370 --> 00:15:14,990
One of the things I'm surprised about is
423
00:15:14,990 --> 00:15:17,830
how we, you know, we get new clients
424
00:15:17,830 --> 00:15:20,150
and many of them are from other advisors.
425
00:15:20,530 --> 00:15:22,970
And I'm surprised that the number one reason
426
00:15:22,970 --> 00:15:25,790
is I haven't heard from my advisor in
427
00:15:25,790 --> 00:15:28,590
six years or, you know, pick a number,
428
00:15:28,710 --> 00:15:28,830
right.
429
00:15:29,770 --> 00:15:33,050
And they haven't had, they haven't been doing
430
00:15:33,050 --> 00:15:35,890
these annual reviews and the advisor hasn't asked
431
00:15:35,890 --> 00:15:38,270
or they missed the communication or whatever the
432
00:15:38,270 --> 00:15:38,750
case is.
433
00:15:38,870 --> 00:15:41,690
But these are really, the annual reviews are
434
00:15:41,690 --> 00:15:42,430
really critical.
435
00:15:42,610 --> 00:15:44,430
It's an opportunity to meet with your advisor,
436
00:15:44,430 --> 00:15:46,730
even if everything, even if the annual review
437
00:15:46,730 --> 00:15:49,570
is 45 minutes and everything's fine, that's a
438
00:15:49,570 --> 00:15:50,170
reassurance.
439
00:15:50,170 --> 00:15:53,390
That's a sense of peace to you, right.
440
00:15:53,490 --> 00:15:54,910
That it's okay.
441
00:15:56,010 --> 00:15:58,730
But sometimes life events come up or you've
442
00:15:58,730 --> 00:16:00,450
done something that you didn't think would impact
443
00:16:00,450 --> 00:16:00,970
your plan.
444
00:16:01,130 --> 00:16:02,590
You were, you know, you did a gift
445
00:16:02,590 --> 00:16:04,330
to the family member that wasn't in your
446
00:16:04,330 --> 00:16:06,350
plan, or you decided to buy that RV
447
00:16:06,350 --> 00:16:08,730
that you referenced that wasn't in your plan
448
00:16:08,730 --> 00:16:10,290
or on the good side.
449
00:16:10,490 --> 00:16:11,370
Well, not the good side.
450
00:16:11,490 --> 00:16:13,150
I'll say you won the lottery that I
451
00:16:13,150 --> 00:16:14,810
was going to say an inheritance, but that's
452
00:16:14,810 --> 00:16:16,130
questionable.
453
00:16:16,550 --> 00:16:18,230
You had money coming into your plan.
454
00:16:18,610 --> 00:16:20,250
Unexpected wealth arrives.
455
00:16:20,570 --> 00:16:21,050
That's right.
456
00:16:21,250 --> 00:16:23,410
So to update your advisor on the life
457
00:16:23,410 --> 00:16:26,170
changes, good or bad, and to just see
458
00:16:26,170 --> 00:16:28,490
if you're still on track, your cashflow is
459
00:16:28,490 --> 00:16:29,070
where it goes.
460
00:16:29,230 --> 00:16:31,230
Unfortunately, that doesn't happen as much as people
461
00:16:31,230 --> 00:16:31,730
would like.
462
00:16:32,030 --> 00:16:34,950
No, it's usually the challenges that present themselves,
463
00:16:35,290 --> 00:16:36,670
but not always.
464
00:16:37,430 --> 00:16:38,470
No, that's true.
465
00:16:38,610 --> 00:16:41,870
And I think, yeah, there's a variety of
466
00:16:41,870 --> 00:16:43,910
circumstances that can arise.
467
00:16:44,350 --> 00:16:46,110
One is, like you said, it could be
468
00:16:46,110 --> 00:16:47,830
new money.
469
00:16:49,690 --> 00:16:51,570
I'm not spending as much as I thought.
470
00:16:51,650 --> 00:16:52,510
I've got an accumulation.
471
00:16:52,730 --> 00:16:53,350
What should I do?
472
00:16:54,190 --> 00:16:54,630
Great.
473
00:16:54,750 --> 00:16:56,130
That's a great issue to discuss.
474
00:16:56,330 --> 00:16:58,070
Sometimes it's my health has changed.
475
00:16:59,330 --> 00:17:06,510
I may have materially different concerns because of
476
00:17:06,510 --> 00:17:06,849
that.
477
00:17:08,130 --> 00:17:09,450
How does this play out?
478
00:17:09,569 --> 00:17:10,329
What happens if?
479
00:17:11,510 --> 00:17:16,869
Maybe it's a little bit about we've had
480
00:17:16,869 --> 00:17:21,589
unexpected expenses that we need to deal with.
481
00:17:23,650 --> 00:17:25,089
Where should we take it from?
482
00:17:25,750 --> 00:17:25,850
Right.
483
00:17:26,050 --> 00:17:27,329
And that's an important question.
484
00:17:27,910 --> 00:17:30,090
Even if you're deciding to go outside of
485
00:17:30,090 --> 00:17:32,270
your cashflow plan and it's a what if,
486
00:17:32,530 --> 00:17:34,030
or it's a I didn't see this one
487
00:17:34,030 --> 00:17:37,150
coming, where you access those funds and how
488
00:17:37,150 --> 00:17:40,370
you access those funds can be a really
489
00:17:40,370 --> 00:17:43,530
key component to the overall success of your
490
00:17:43,530 --> 00:17:43,870
plan.
491
00:17:45,630 --> 00:17:48,550
Sometimes it's about tax planning.
492
00:17:49,130 --> 00:17:51,410
Hey, I'm not making as much.
493
00:17:51,610 --> 00:17:54,230
I'm not taxed as much.
494
00:17:54,330 --> 00:17:57,970
I've got this window where I haven't had
495
00:17:57,970 --> 00:18:00,330
to turn on my required minimum distributions.
496
00:18:01,970 --> 00:18:04,190
I may not yet have turned on social
497
00:18:04,190 --> 00:18:06,110
security or when should I turn on social
498
00:18:06,110 --> 00:18:06,310
security?
499
00:18:06,310 --> 00:18:07,510
I want to do it now.
500
00:18:07,630 --> 00:18:08,450
I can use the money.
501
00:18:08,770 --> 00:18:09,690
Should I do it now?
502
00:18:11,310 --> 00:18:14,270
Or I'm in this window where I don't
503
00:18:14,270 --> 00:18:19,710
have either social security or required distributions, but
504
00:18:19,710 --> 00:18:22,330
I'm drawing from my investments.
505
00:18:23,990 --> 00:18:27,310
Does that present any tax opportunities, tax strategies?
506
00:18:27,850 --> 00:18:29,810
The idea of a Roth conversion comes to
507
00:18:29,810 --> 00:18:30,010
mind.
508
00:18:31,710 --> 00:18:33,590
There can be a variety of things that
509
00:18:33,590 --> 00:18:35,290
we could look at and say, well, what
510
00:18:35,290 --> 00:18:38,230
are some of the windows of opportunities or
511
00:18:38,230 --> 00:18:41,270
risks that we need to be planning around
512
00:18:41,270 --> 00:18:42,670
and reviewing?
513
00:18:43,350 --> 00:18:46,250
And sometimes it's related to tax considerations.
514
00:18:46,610 --> 00:18:49,990
Sometimes it's, hey, I have this pension decision.
515
00:18:50,310 --> 00:18:51,610
We're turning on a pension.
516
00:18:52,370 --> 00:18:53,790
Should I include the spouse?
517
00:18:53,890 --> 00:18:55,310
Should I not include the spouse?
518
00:18:55,450 --> 00:18:56,950
Should I take a lump sum?
519
00:18:57,070 --> 00:18:58,250
Should I take an income stream?
520
00:18:59,890 --> 00:19:02,170
I'm just throwing out a whole range of
521
00:19:02,170 --> 00:19:03,870
things that have come up over the last
522
00:19:03,870 --> 00:19:04,610
six months.
523
00:19:05,510 --> 00:19:07,610
We've talked about all these things with clients.
524
00:19:09,330 --> 00:19:10,970
What comes to your mind, Jeff?
525
00:19:11,510 --> 00:19:14,030
Things, unexpected decisions.
526
00:19:14,470 --> 00:19:18,270
We're talking about your annual review with your
527
00:19:18,270 --> 00:19:18,690
advisor.
528
00:19:20,170 --> 00:19:21,970
I'd love to see, not just in the
529
00:19:21,970 --> 00:19:25,090
annual reviews, but I'd love to see before
530
00:19:25,090 --> 00:19:26,870
an annual review or anytime during the year,
531
00:19:26,930 --> 00:19:29,790
if a client has a thing they're thinking
532
00:19:29,790 --> 00:19:30,170
about.
533
00:19:30,470 --> 00:19:32,850
There's so many things that we don't expect
534
00:19:32,850 --> 00:19:34,150
we're going to do.
535
00:19:34,390 --> 00:19:37,270
But a little forethought is bubbling up of,
536
00:19:37,390 --> 00:19:38,590
I'd like to.
537
00:19:39,470 --> 00:19:44,550
It could be, we planned on keeping this
538
00:19:44,550 --> 00:19:47,130
house, but it's really too big.
539
00:19:47,710 --> 00:19:50,650
Or gee, our kids moved to Arizona and
540
00:19:50,650 --> 00:19:51,650
they just had babies.
541
00:19:52,670 --> 00:19:55,250
Maybe we should move to Arizona.
542
00:19:55,830 --> 00:19:58,030
Or let's travel the country.
543
00:19:58,090 --> 00:19:59,030
Let's buy that RV.
544
00:19:59,450 --> 00:20:00,550
You name it.
545
00:20:01,590 --> 00:20:04,430
If you have a good advisor that you're
546
00:20:04,430 --> 00:20:06,510
working with, you can reach out to them
547
00:20:06,510 --> 00:20:07,890
and say, this is what I'm thinking.
548
00:20:08,310 --> 00:20:09,390
Can we model this?
549
00:20:09,470 --> 00:20:12,530
Can we project, if we have this added
550
00:20:12,530 --> 00:20:14,690
expense, or if we have this reduced expense,
551
00:20:14,770 --> 00:20:17,850
or if we want to buy this thing,
552
00:20:18,030 --> 00:20:20,910
does it impact the likelihood of success of
553
00:20:20,910 --> 00:20:21,990
our financial plan?
554
00:20:21,990 --> 00:20:24,490
You can do it at an annual review,
555
00:20:24,610 --> 00:20:27,550
if it's just something that's not imminent.
556
00:20:28,070 --> 00:20:30,830
You're just thinking about something you might want
557
00:20:30,830 --> 00:20:32,430
to do in a few years and model
558
00:20:32,430 --> 00:20:33,590
it out and make adjustments.
559
00:20:34,490 --> 00:20:36,870
But even if it's just something that comes
560
00:20:36,870 --> 00:20:40,070
up and you want advice and you want
561
00:20:40,070 --> 00:20:41,950
model, how will this affect my plan?
562
00:20:42,030 --> 00:20:43,090
It could be a gift too.
563
00:20:43,870 --> 00:20:46,610
I'm thinking about helping my child buy their
564
00:20:46,610 --> 00:20:47,130
first house.
565
00:20:47,210 --> 00:20:49,890
If I give them $50,000, I'm not
566
00:20:49,890 --> 00:20:51,950
talking about gift taxes right now, but if
567
00:20:51,950 --> 00:20:54,430
I give them a sum of money, does
568
00:20:54,430 --> 00:20:57,170
it affect my plan?
569
00:20:57,650 --> 00:21:00,230
All these things, it's just critical.
570
00:21:00,390 --> 00:21:03,030
You pay your advisor to not only manage
571
00:21:03,030 --> 00:21:05,630
your portfolio, but you hopefully pay your advisor
572
00:21:05,630 --> 00:21:08,730
to get advice on these times and to
573
00:21:08,730 --> 00:21:09,590
keep you on track.
574
00:21:10,410 --> 00:21:12,670
I have to say, to echo your point,
575
00:21:12,770 --> 00:21:15,310
we love when people bring up that stuff
576
00:21:15,310 --> 00:21:17,310
with that planning kind of mindset.
577
00:21:17,890 --> 00:21:20,310
I'm contemplating, what do you think?
578
00:21:20,410 --> 00:21:21,210
How much?
579
00:21:21,530 --> 00:21:21,890
Absolutely.
580
00:21:22,570 --> 00:21:25,410
Is this a good move or what do
581
00:21:25,410 --> 00:21:25,830
you think?
582
00:21:27,050 --> 00:21:30,390
Sometimes it's about, I'm thinking about some real
583
00:21:30,390 --> 00:21:34,050
estate, either investment property or vacation home or
584
00:21:34,050 --> 00:21:34,310
something.
585
00:21:34,530 --> 00:21:34,710
Second home.
586
00:21:35,330 --> 00:21:36,730
Is that a good idea?
587
00:21:37,230 --> 00:21:37,870
Depends.
588
00:21:38,990 --> 00:21:40,210
Sometimes it is.
589
00:21:40,370 --> 00:21:42,210
It's diversification a little bit.
590
00:21:42,710 --> 00:21:46,250
Maybe there's some utility that's an attractive element
591
00:21:46,250 --> 00:21:48,790
to it, but how much will it add
592
00:21:48,790 --> 00:21:49,570
to your expenses?
593
00:21:49,790 --> 00:21:51,770
It's not only the outlay, it's the upkeep.
594
00:21:53,890 --> 00:21:54,810
What's that mean?
595
00:21:55,530 --> 00:21:57,490
How does that change the trajectory of your
596
00:21:57,490 --> 00:21:57,790
plan?
597
00:21:58,950 --> 00:22:01,050
Oh, but I plan on retiring to that
598
00:22:01,050 --> 00:22:02,110
house later on.
599
00:22:02,290 --> 00:22:02,810
Oh, okay.
600
00:22:02,830 --> 00:22:03,490
That's relevant.
601
00:22:03,770 --> 00:22:06,570
Then we're going to end this cost, maybe
602
00:22:06,570 --> 00:22:08,290
the cost associated with this house, and then
603
00:22:08,290 --> 00:22:10,110
we'll be able to free up that capital.
604
00:22:10,750 --> 00:22:11,870
All right, let's model this.
605
00:22:12,070 --> 00:22:13,470
Let me see how this plays out.
606
00:22:13,630 --> 00:22:14,630
That kind of thing.
607
00:22:16,110 --> 00:22:18,670
You can see some virtues to that.
608
00:22:19,090 --> 00:22:21,410
The idea of, I want to help the
609
00:22:21,410 --> 00:22:24,550
family member with a gift or something.
610
00:22:24,790 --> 00:22:26,750
It's an important time for them.
611
00:22:26,850 --> 00:22:28,690
They could really use it as a parent.
612
00:22:30,230 --> 00:22:32,750
Parents just want to help their kids.
613
00:22:33,110 --> 00:22:34,250
No matter how old they get.
614
00:22:34,850 --> 00:22:35,490
All right.
615
00:22:37,010 --> 00:22:38,250
Well, all right.
616
00:22:38,690 --> 00:22:39,610
That's a value.
617
00:22:39,850 --> 00:22:44,690
That's something we value to want to help
618
00:22:44,690 --> 00:22:45,290
our family.
619
00:22:46,650 --> 00:22:49,550
Let's make sure it doesn't adversely impact your
620
00:22:49,550 --> 00:22:50,030
outcome.
621
00:22:52,630 --> 00:22:54,910
You reminded me of something I want to
622
00:22:54,910 --> 00:22:56,570
add to this conversation.
623
00:22:56,810 --> 00:22:57,510
You said value.
624
00:22:57,670 --> 00:22:59,490
I know you were talking about value being
625
00:22:59,490 --> 00:23:02,390
added to the client, but values as well.
626
00:23:03,410 --> 00:23:08,570
A good financial advisor should not be giving
627
00:23:08,570 --> 00:23:09,910
you value judgments.
628
00:23:11,430 --> 00:23:13,790
Not what you want, not what they think
629
00:23:13,790 --> 00:23:15,110
is right for you.
630
00:23:15,430 --> 00:23:20,470
They should be informing you, giving you counsel.
631
00:23:22,130 --> 00:23:28,330
Not just saying, here's what you need to
632
00:23:28,330 --> 00:23:28,810
do.
633
00:23:29,050 --> 00:23:31,950
But give you information and help in the
634
00:23:31,950 --> 00:23:36,030
process so you can decide what's empowering you
635
00:23:36,030 --> 00:23:37,850
to make the decision you want to make.
636
00:23:38,190 --> 00:23:38,290
Yep.
637
00:23:38,430 --> 00:23:40,610
Just making sure that your eyes are wide
638
00:23:40,610 --> 00:23:42,190
open, you have all the information, you know
639
00:23:42,190 --> 00:23:42,870
the impacts.
640
00:23:43,590 --> 00:23:45,270
I can tell you times I've had this
641
00:23:45,270 --> 00:23:45,930
happen, Jim.
642
00:23:48,050 --> 00:23:52,630
Client is deceased now, but definitely wanted to
643
00:23:52,630 --> 00:23:53,270
make a move.
644
00:23:53,770 --> 00:23:56,070
The math was just like, that's not really
645
00:23:56,070 --> 00:23:56,910
a good idea.
646
00:23:57,830 --> 00:24:01,430
But it was something they felt was going
647
00:24:01,430 --> 00:24:03,030
to add to the quality of their life
648
00:24:03,030 --> 00:24:05,250
because it's a better location for where they'd
649
00:24:05,250 --> 00:24:07,290
be in the heart of the community they
650
00:24:07,290 --> 00:24:08,270
wanted to be in.
651
00:24:09,230 --> 00:24:10,930
So they found a way to do it
652
00:24:10,930 --> 00:24:13,430
with family, that kind of thing.
653
00:24:13,550 --> 00:24:17,010
But it's challenging because then things change.
654
00:24:17,670 --> 00:24:20,290
Family doesn't always have the resources that they
655
00:24:20,290 --> 00:24:21,150
thought they would have.
656
00:24:21,890 --> 00:24:25,430
So it's one of these challenges that you
657
00:24:25,430 --> 00:24:27,090
have to, but what's my role?
658
00:24:27,250 --> 00:24:28,490
My role is not to say, oh, I
659
00:24:28,490 --> 00:24:31,250
told you so, or you shouldn't have, and
660
00:24:31,250 --> 00:24:32,230
say, all right, what do we do now?
661
00:24:32,390 --> 00:24:33,630
How do we figure this out?
662
00:24:34,370 --> 00:24:35,950
How do you consider moving?
663
00:24:36,090 --> 00:24:37,930
How do you consider a reverse mortgage?
664
00:24:38,450 --> 00:24:41,790
Would these be tools that could resolve that
665
00:24:41,790 --> 00:24:44,890
shortfall that we might be then having?
666
00:24:46,170 --> 00:24:49,390
These are the things we run into, and
667
00:24:49,390 --> 00:24:53,890
ultimately, our role is just trying to help
668
00:24:53,890 --> 00:24:54,670
you figure it out.
669
00:24:54,790 --> 00:24:56,330
What's the best way to deal with it?
670
00:24:57,630 --> 00:25:00,670
And sometimes the best counsel we can give
671
00:25:00,670 --> 00:25:04,650
is, maybe you should consider downsizing.
672
00:25:04,930 --> 00:25:06,530
Maybe you should consider relocating.
673
00:25:07,550 --> 00:25:09,310
And it seems so obvious.
674
00:25:11,690 --> 00:25:13,650
I've been in many meetings with you that
675
00:25:13,650 --> 00:25:19,550
we get so constrained by our perceptions and
676
00:25:19,550 --> 00:25:21,730
our preconceived intentions.
677
00:25:22,210 --> 00:25:23,770
We don't consider all the options.
678
00:25:24,830 --> 00:25:26,530
Some of them you're mentioning now, and other
679
00:25:26,530 --> 00:25:29,270
ones, some of these things are available to
680
00:25:29,270 --> 00:25:29,530
you.
681
00:25:29,750 --> 00:25:30,770
Have you thought about them?
682
00:25:30,930 --> 00:25:32,190
It can't be that simple.
683
00:25:32,590 --> 00:25:34,250
And sometimes people say, no, I don't want
684
00:25:34,250 --> 00:25:34,550
that.
685
00:25:34,850 --> 00:25:35,890
It's a value.
686
00:25:36,230 --> 00:25:38,630
Okay, that makes sense.
687
00:25:38,830 --> 00:25:39,850
Okay, you thought of it.
688
00:25:40,050 --> 00:25:41,230
It's not something you want to do.
689
00:25:41,910 --> 00:25:45,490
But sometimes I've had clients, this was a
690
00:25:45,490 --> 00:25:48,190
long time ago now, 15 years ago, maybe,
691
00:25:48,590 --> 00:25:51,190
we did the financial plan and the projections,
692
00:25:51,610 --> 00:25:53,710
and they told me they wanted to move
693
00:25:53,710 --> 00:25:55,470
to Florida in a few years, maybe five
694
00:25:55,470 --> 00:25:56,030
years out.
695
00:25:57,010 --> 00:26:00,070
And I kept doing all these calculations and
696
00:26:00,070 --> 00:26:02,090
basically came down to, you know what?
697
00:26:02,590 --> 00:26:03,530
You should go now.
698
00:26:04,330 --> 00:26:08,930
The math was like, your numbers aren't going
699
00:26:08,930 --> 00:26:09,810
the right direction.
700
00:26:10,570 --> 00:26:12,070
Doing it sooner is better.
701
00:26:13,270 --> 00:26:14,350
Time for the move.
702
00:26:15,050 --> 00:26:16,310
And they did.
703
00:26:16,650 --> 00:26:17,730
And they've been happy.
704
00:26:18,070 --> 00:26:19,990
It was a good fit, good choice.
705
00:26:20,430 --> 00:26:22,270
But when you know that kind of stuff,
706
00:26:22,550 --> 00:26:25,390
I think a lot of times we get
707
00:26:25,390 --> 00:26:26,730
focused on the portfolio.
708
00:26:27,230 --> 00:26:27,790
Sure.
709
00:26:27,970 --> 00:26:29,230
And I think clients do too.
710
00:26:29,230 --> 00:26:29,770
Yeah.
711
00:26:29,850 --> 00:26:31,770
We talk about what's happening in the markets.
712
00:26:31,930 --> 00:26:34,250
We talk about, oh, these days it's all,
713
00:26:34,390 --> 00:26:36,010
you know, what are tariffs going to do
714
00:26:36,010 --> 00:26:37,550
and all that kind of stuff.
715
00:26:38,290 --> 00:26:41,490
Some of these variables that are in the
716
00:26:41,490 --> 00:26:43,070
news that we're all focused on.
717
00:26:43,590 --> 00:26:44,750
And those are relevant.
718
00:26:44,870 --> 00:26:46,850
We have to pay attention to those things.
719
00:26:47,850 --> 00:26:50,550
But sometimes it causes us to not put
720
00:26:50,550 --> 00:26:52,490
as much attention on to the other aspects
721
00:26:52,490 --> 00:26:55,170
of land, the financial planning considerations.
722
00:26:56,290 --> 00:27:00,710
And sometimes those can add even more value
723
00:27:00,710 --> 00:27:08,490
than the financial portfolio management decisions, which, you
724
00:27:08,490 --> 00:27:11,530
know, these are foundational, all of these, but
725
00:27:11,530 --> 00:27:13,050
they're all interrelated.
726
00:27:13,790 --> 00:27:17,210
And sometimes it's important to step back from
727
00:27:19,330 --> 00:27:22,010
the, the focus on the portfolio.
728
00:27:22,450 --> 00:27:22,550
Yeah.
729
00:27:22,550 --> 00:27:24,110
The review of the statements, right?
730
00:27:24,270 --> 00:27:24,550
Yeah.
731
00:27:24,750 --> 00:27:27,270
And, and, and all that's going on in
732
00:27:27,270 --> 00:27:30,430
the economy and the Fed and etc.
733
00:27:31,330 --> 00:27:33,270
And trying to think about that.
734
00:27:33,690 --> 00:27:35,490
And sometimes we need to step back and
735
00:27:35,490 --> 00:27:37,410
put it into context of what else is
736
00:27:37,410 --> 00:27:39,350
going on and all that that can add
737
00:27:39,350 --> 00:27:40,150
value with.
738
00:27:40,910 --> 00:27:45,030
That's maybe outside the scope of, should we
739
00:27:45,030 --> 00:27:47,450
have more equities or less equities or whatever,
740
00:27:48,230 --> 00:27:50,730
shorter term bonds or longer term bonds, you
741
00:27:50,730 --> 00:27:51,150
know, whatever.
742
00:27:51,690 --> 00:27:54,190
And that's why a financial review is so
743
00:27:54,190 --> 00:27:57,890
important because it's just a, it's just a
744
00:27:57,890 --> 00:27:59,970
point in time, at least once a year
745
00:27:59,970 --> 00:28:02,310
that you go in for your review and
746
00:28:02,310 --> 00:28:05,410
all these, the things you're focused on, the
747
00:28:05,410 --> 00:28:06,930
things you're not focused on, but we talk
748
00:28:06,930 --> 00:28:09,250
about them all, you know, we'll, we'll go
749
00:28:09,250 --> 00:28:11,650
through the portfolio certainly, but we'll talk about
750
00:28:11,650 --> 00:28:13,610
life changes and how you're tracking on your
751
00:28:13,610 --> 00:28:14,030
plan.
752
00:28:14,330 --> 00:28:17,590
We'll probably ask you if anything's changed in
753
00:28:17,590 --> 00:28:19,030
your estate planning, right?
754
00:28:19,390 --> 00:28:20,710
Anything's happening there.
755
00:28:21,450 --> 00:28:21,830
Any family.
756
00:28:21,830 --> 00:28:23,630
You have fisheries once in a while.
757
00:28:23,790 --> 00:28:24,270
That's right.
758
00:28:24,590 --> 00:28:24,750
I know.
759
00:28:25,210 --> 00:28:27,030
Can't tell you how often we find just
760
00:28:27,030 --> 00:28:30,270
something's not what it's intended to be.
761
00:28:30,430 --> 00:28:30,730
Right.
762
00:28:32,170 --> 00:28:34,770
Some of the mundane things are good to
763
00:28:34,770 --> 00:28:35,390
review too.
764
00:28:35,670 --> 00:28:36,070
That's right.
765
00:28:36,170 --> 00:28:37,890
And it's an opportunity for these things to
766
00:28:37,890 --> 00:28:41,150
come up because the conversation spurs these things
767
00:28:41,150 --> 00:28:44,510
and it's, you know, an hour or two
768
00:28:44,510 --> 00:28:46,430
of your time and it's very well spent.
769
00:28:46,610 --> 00:28:47,850
You know, we go to the doctors for
770
00:28:47,850 --> 00:28:48,670
checkups, right?
771
00:28:49,130 --> 00:28:49,230
Yeah.
772
00:28:49,450 --> 00:28:51,890
We get the oil changed in the car
773
00:28:51,890 --> 00:28:53,090
because we want it to keep running.
774
00:28:53,190 --> 00:28:53,370
Right.
775
00:28:53,430 --> 00:28:54,870
And all these, you know, we get the,
776
00:28:54,870 --> 00:28:58,170
the sidewalks power washed and we do all
777
00:28:58,170 --> 00:28:59,870
these home maintenance things.
778
00:29:03,430 --> 00:29:05,910
It's something as important as your financial plan
779
00:29:05,910 --> 00:29:09,090
and your financial security for the next year,
780
00:29:09,250 --> 00:29:11,110
five, 10, 30 years.
781
00:29:11,490 --> 00:29:12,870
It's definitely worth your time.
782
00:29:15,730 --> 00:29:17,610
If you're not, if you are doing it,
783
00:29:17,630 --> 00:29:19,690
you see the value of it and you're
784
00:29:19,690 --> 00:29:20,390
going to keep doing it.
785
00:29:20,430 --> 00:29:22,230
And I'm positive that if you're not doing
786
00:29:22,230 --> 00:29:24,050
it, I think you should be.
787
00:29:24,850 --> 00:29:25,290
Yeah.
788
00:29:25,290 --> 00:29:26,950
Give it a try for a little bit.
789
00:29:27,050 --> 00:29:28,470
I think you'll find value.
790
00:29:29,090 --> 00:29:30,970
And if you're not getting that kind of
791
00:29:30,970 --> 00:29:33,370
help from where you, you know, who you
792
00:29:33,370 --> 00:29:36,110
turn to for that kind of advice, consider
793
00:29:36,110 --> 00:29:36,910
talking to us.
794
00:29:36,990 --> 00:29:38,790
We'd be happy to talk to you in
795
00:29:38,790 --> 00:29:41,450
any case, Jeff, thanks for the topic.
796
00:29:41,570 --> 00:29:42,470
Good information.
797
00:29:43,370 --> 00:29:47,190
So two things we talked about today, reconsider
798
00:29:47,190 --> 00:29:51,330
that 80% question and don't overlook an
799
00:29:51,330 --> 00:29:53,210
annual review until next time.
800
00:29:53,270 --> 00:29:54,890
Everybody keeps trying for something.
801
00:29:56,030 --> 00:29:58,370
Thank you for listening to something more with
802
00:29:58,370 --> 00:29:59,130
Chris Boyd.
803
00:29:59,370 --> 00:30:01,530
Call us for help, whether it's for financial
804
00:30:01,530 --> 00:30:05,470
planning or portfolio management, insurance concerns, or those
805
00:30:05,470 --> 00:30:07,510
quality of life issues that make the money
806
00:30:07,510 --> 00:30:08,590
matters matter.
807
00:30:08,950 --> 00:30:12,230
Whatever's on your mind, visit us at somethingmorewithchrisboyd
808
00:30:12,230 --> 00:30:15,430
.com or call us toll free at 866
809
00:30:15,430 --> 00:30:20,970
-771-8901, or send us your questions to
810
00:30:20,970 --> 00:30:24,910
amr-info at wealthenhancement.com.
811
00:30:25,090 --> 00:30:27,030
You're listening to something more with Chris Boyd
812
00:30:27,030 --> 00:30:29,650
financial talk show wealth enhancement advisory services and
813
00:30:29,650 --> 00:30:31,790
Jay Christopher Boyd provide investment advice on an
814
00:30:31,790 --> 00:30:33,350
individual basis to clients only.
815
00:30:33,570 --> 00:30:35,510
Proper advice depends on a complete analysis of
816
00:30:35,510 --> 00:30:36,690
all facts and circumstances.
817
00:30:36,990 --> 00:30:38,790
The information given on this program is general
818
00:30:38,790 --> 00:30:40,810
financial comments and cannot be relied upon as
819
00:30:40,810 --> 00:30:42,390
pertaining to your specific situation.
820
00:30:42,630 --> 00:30:44,570
Wealth Enhancement Group cannot guarantee that using the
821
00:30:44,570 --> 00:30:46,590
information from this show will generate profits or
822
00:30:46,590 --> 00:30:47,690
ensure freedom from loss.
823
00:30:47,890 --> 00:30:50,050
Listeners should consult their own financial advisors or
824
00:30:50,050 --> 00:30:52,150
conduct their own due diligence before making any
825
00:30:52,150 --> 00:30:52,930
financial decisions.
