WEBVTT 00:00:00.500 --> 00:00:02.890 you feel like somebody took 2020, put it in a blender. 00:00:02.890 --> 00:00:04.170 hit start, and just caused chaos. 00:00:04.170 --> 00:00:04.878 You're not alone. You've 00:00:04.878 --> 00:00:07.470 probably had to deal with canceled plans 00:00:07.470 --> 00:00:10.410 work adjustments, complicated family decisions, or 00:00:10.410 --> 00:00:12.460 tough family decisions to make. 00:00:12.460 --> 00:00:14.910 And even maybe some really tough financial decisions. 00:00:14.910 --> 00:00:17.490 So the question becomes, how do we 00:00:17.490 --> 00:00:20.238 start planning our retirement when, you know, all 00:00:20.238 --> 00:00:21.530 these other things are unknown. 00:00:21.530 --> 00:00:22.905 You don't know what the future is going to bring in 00:00:22.905 --> 00:00:25.715 regards to COVID, with the local economy. 00:00:25.715 --> 00:00:27.090 What the markets are going to be. 00:00:27.090 --> 00:00:30.360 How do we prepare for retirement when there's so much unknown. 00:00:30.360 --> 00:00:33.397 How can you look ahead to 2021 when you don't even 00:00:33.397 --> 00:00:34.980 know what next week is going to bring? 00:00:34.980 --> 00:00:36.605 This week I sat down with John Connolly to discuss 00:00:36.605 --> 00:00:38.130 those things and cover 00:00:38.130 --> 00:00:41.140 six tips that can make all the difference for your end 00:00:41.140 --> 00:00:51.020 of the year actions by 2020. 00:00:51.020 --> 00:00:52.520 Hey, welcome to after the Paycheck. 00:00:52.520 --> 00:00:54.200 The series dedicated to helping people 00:00:54.200 --> 00:00:56.900 to and through their retirement process I'm your host Adam Blye. 00:00:56.900 --> 00:00:59.030 This week I am here with John Conley. 00:00:59.030 --> 00:01:00.870 It's been awhile since we've been in the same room together, 00:01:00.870 --> 00:01:03.245 been a couple of weeks, we're doing the social distancing. So 00:01:03.245 --> 00:01:04.220 Yeah. 00:01:04.220 --> 00:01:05.690 People actually well, they like I 00:01:05.690 --> 00:01:09.203 notice you do it different like editing for the videos 00:01:09.203 --> 00:01:10.870 now. And I guess just so we're further apart. 00:01:10.870 --> 00:01:12.850 So we hope after just the way we like it. 00:01:12.850 --> 00:01:14.640 Yeah Yeah. 00:01:14.640 --> 00:01:16.478 I think I smell a little funny. 00:01:16.478 --> 00:01:18.270 So Yeah, they do things that are different. 00:01:18.270 --> 00:01:20.540 You know they actually kind of is 00:01:20.540 --> 00:01:24.140 the reason why we do that is because 2020 has been a year. 00:01:24.140 --> 00:01:26.060 Why as I saw a thing online. 00:01:26.060 --> 00:01:27.810 The other day I got to 2020 in a nutshell, 00:01:27.810 --> 00:01:31.462 it's like a precursor of it then March is like 90% of 00:01:31.462 --> 00:01:33.420 the year. And then it's like everything that's happening. 00:01:33.420 --> 00:01:34.610 I feel after the election. 00:01:34.610 --> 00:01:37.100 It's like just I saw one that said 2020 00:01:37.100 --> 00:01:39.930 and it showed like a slide at the playground 00:01:39.930 --> 00:01:42.950 and it was a cheese grinder. 00:01:42.950 --> 00:01:46.100 Probably more like, Yeah. 00:01:46.100 --> 00:01:48.860 And it's because this has kind of been like a year 00:01:48.860 --> 00:01:50.930 for a lot of people. 00:01:50.930 --> 00:01:53.520 We're going to talk about that kind of coming into the year. 00:01:53.520 --> 00:01:54.660 And now we're in November. 00:01:54.660 --> 00:01:56.690 Now You know we don't know what's 00:01:56.690 --> 00:01:59.090 going to happen next week let alone next year 00:01:59.090 --> 00:02:00.920 with everything going on between COVID 00:02:00.920 --> 00:02:05.060 the market economy, the election all of this stuff 00:02:05.060 --> 00:02:07.440 is still up in the air. 00:02:07.440 --> 00:02:11.700 So it becomes really hard to plan for your future, 00:02:11.700 --> 00:02:13.973 for retirement and financially when you don't really 00:02:13.973 --> 00:02:15.140 know what's going to happen. 00:02:15.140 --> 00:02:17.240 You know even tomorrow or even next week. 00:02:17.240 --> 00:02:21.410 So we thought we'd go over a couple of financial actions 00:02:21.410 --> 00:02:26.030 that you can take to still make a difference in your planning. 00:02:26.030 --> 00:02:28.680 Now let's take them now or make those actions. 00:02:28.680 --> 00:02:31.375 Now before the end of 2020 to set yourself up successfully 00:02:31.375 --> 00:02:32.000 for the future. 00:02:32.000 --> 00:02:33.110 Yeah, absolutely awesome. 00:02:33.110 --> 00:02:34.983 So you sent me over a couple of topics 00:02:34.983 --> 00:02:37.150 here that I'm just going to kind of ring off and let 00:02:37.150 --> 00:02:38.358 a little bit more about them. So 00:02:38.358 --> 00:02:40.580 again, six financial actions that 00:02:40.580 --> 00:02:43.490 could make all the difference as the year comes to an end 00:02:43.490 --> 00:02:44.300 here in 2020. 00:02:44.300 --> 00:02:48.960 The first one, you brought up here is reworking your budget. 00:02:48.960 --> 00:02:49.460 So what. 00:02:49.460 --> 00:02:50.030 Like what. 00:02:50.030 --> 00:02:51.490 What does that mean. 00:02:51.490 --> 00:02:52.710 OK such an action item. 00:02:52.710 --> 00:02:55.250 I can take right now is to rework my budget. 00:02:55.250 --> 00:02:59.130 Yeah take a look at what your spending is in 2020 and beyond. 00:02:59.130 --> 00:02:59.690 And so forth. 00:02:59.690 --> 00:03:03.050 So anytime we will start looking at retirement 00:03:03.050 --> 00:03:06.180 or entering retirement or you might even be retired, 00:03:06.180 --> 00:03:09.710 we want to look at what is our monthly in yearly spending. 00:03:09.710 --> 00:03:12.350 And if you're entering retirement. 00:03:12.350 --> 00:03:14.390 Let's let's see where we're spending money. 00:03:14.390 --> 00:03:16.570 How much are we spending on a monthly basis 00:03:16.570 --> 00:03:19.680 in where we're spending that obviously with 2020 20 00:03:19.680 --> 00:03:23.030 were covered the spending might have been shifted from one 00:03:23.030 --> 00:03:24.970 pocket to another pocket. 00:03:24.970 --> 00:03:27.260 You might not be going out to dinner as much. 00:03:27.260 --> 00:03:29.640 You might not be traveling obviously, 00:03:29.640 --> 00:03:31.670 but all of a sudden you're spending more money 00:03:31.670 --> 00:03:35.150 on the house fixing things up like most people there. 00:03:35.150 --> 00:03:39.350 They've done more house projects this year than before. 00:03:39.350 --> 00:03:41.060 So let's kind of look at those things 00:03:41.060 --> 00:03:43.100 and say where is the spending. 00:03:43.100 --> 00:03:45.970 How do we foresee a spending in the future. 00:03:45.970 --> 00:03:49.050 And let's make sure our budget is accurately set up. 00:03:49.050 --> 00:03:51.950 So that our future spending is accounted for. 00:03:51.950 --> 00:03:52.740 Is there anything. 00:03:52.740 --> 00:03:53.420 So you're talked up. 00:03:53.420 --> 00:03:55.170 You brought up like housing house projects or stuff 00:03:55.170 --> 00:03:56.480 like that. 00:03:56.480 --> 00:03:58.215 Again I am only a few years into my 00:03:58.215 --> 00:03:59.340 house in the mortgage everything. 00:03:59.340 --> 00:04:00.798 And I'm doing house projects myself if 00:04:00.798 --> 00:04:02.360 I'm almost in retirement. 00:04:02.360 --> 00:04:04.860 Are there things I should be looking in my house being like, you know what. 00:04:05.960 --> 00:04:08.870 Maybe am I going crazy and just doing house projects 00:04:08.870 --> 00:04:10.970 to do them or is it like, hey, this 00:04:10.970 --> 00:04:12.680 is something you should be doing to take care of your house 00:04:12.680 --> 00:04:14.222 because if you're going to live in it for the rest of your 00:04:14.222 --> 00:04:15.477 life. 00:04:15.477 --> 00:04:16.810 I don't know about house prices. 00:04:16.810 --> 00:04:18.260 Some of the worst at it. 00:04:18.260 --> 00:04:21.060 I did decide to paint a diner the other day, 00:04:21.060 --> 00:04:24.080 and I think we're going to have to hire her in the end. 00:04:24.080 --> 00:04:24.710 I gave it. 00:04:24.710 --> 00:04:26.540 And gave it a try right. 00:04:26.540 --> 00:04:28.080 But no if you're going to retire. 00:04:28.080 --> 00:04:29.545 And you close to return. 00:04:29.545 --> 00:04:31.670 I would always say, if you don't have a home equity 00:04:31.670 --> 00:04:33.878 line of credit that is something that you want to get set 00:04:33.878 --> 00:04:35.700 up prior to stop work. 00:04:35.700 --> 00:04:37.110 And it's just easier. 00:04:37.110 --> 00:04:38.670 You're able to show income. 00:04:38.670 --> 00:04:40.640 And so forth have that already kind 00:04:40.640 --> 00:04:43.080 of establish before you stop working 00:04:43.080 --> 00:04:44.340 because if you stop working. 00:04:44.340 --> 00:04:47.067 You have real no income, then it's a little bit tougher 00:04:47.067 --> 00:04:47.900 it's not impossible. 00:04:47.900 --> 00:04:51.348 They just make you do a couple more steps to prove income. 00:04:51.348 --> 00:04:51.890 And so forth. 00:04:51.890 --> 00:04:52.340 That's good. 00:04:52.340 --> 00:04:53.870 I didn't even think about that the home equity 00:04:53.870 --> 00:04:54.745 line of credit thing. Yeah before 00:04:54.745 --> 00:04:58.482 you retire going into financial tip number 00:04:58.482 --> 00:05:00.440 two, which is talking about goals and new ones. 00:05:00.440 --> 00:05:03.680 We just talked about always my goal to kind of redo the house. 00:05:03.680 --> 00:05:05.222 You talked about reviewing your goals 00:05:05.222 --> 00:05:07.097 and maybe setting new ones for the next year. So 00:05:07.097 --> 00:05:09.740 what would be something that I should be considering or not 00:05:09.740 --> 00:05:12.387 considering if I'm thinking of retiring in the next year 00:05:12.387 --> 00:05:13.720 or so or if I'm already retired. 00:05:13.720 --> 00:05:14.512 Yeah you know what. You 00:05:14.512 --> 00:05:17.180 want to look at what your review everything. 00:05:17.180 --> 00:05:20.210 Just take a look at where your portfolio is today. 00:05:20.210 --> 00:05:23.990 How did it perform versus the markets this year 00:05:23.990 --> 00:05:27.290 make any necessary adjustments to your portfolio that's 00:05:27.290 --> 00:05:28.460 needed. 00:05:28.460 --> 00:05:29.960 Review your goals. 00:05:29.960 --> 00:05:32.870 Lot of things that we're seeing people's vision 00:05:32.870 --> 00:05:35.390 of their retirement is different. 00:05:35.390 --> 00:05:37.310 It might be a different timeframe 00:05:37.310 --> 00:05:39.290 someone might have been thinking they're 00:05:39.290 --> 00:05:42.930 going to retire at 65 and all of a sudden, they're 62 today, 00:05:42.930 --> 00:05:44.810 and they're saying my company is not 00:05:44.810 --> 00:05:46.680 doing as strong as it once was. 00:05:46.680 --> 00:05:49.790 And I'm a little concerned about my job prospects moving 00:05:49.790 --> 00:05:53.360 forward can I retire today. 00:05:53.360 --> 00:05:55.692 If all of a sudden, I lost my job. 00:05:55.692 --> 00:05:56.900 Do I need to go back to work. 00:05:56.900 --> 00:05:58.790 So let's review your goals. 00:05:58.790 --> 00:06:00.990 Also how do you envision retirement. 00:06:00.990 --> 00:06:04.088 That's a big thing with most people is how they envision it. 00:06:04.088 --> 00:06:05.630 A lot of people used to say, hey, I'm 00:06:05.630 --> 00:06:08.740 going to go down to Florida for six months out of the year. 00:06:08.740 --> 00:06:10.370 I'm going to live in the villages 00:06:10.370 --> 00:06:12.440 or we're going to travel. 00:06:12.440 --> 00:06:14.510 Well COVID kind of changed a lot of that. 00:06:14.510 --> 00:06:17.030 People are looking at things differently maybe 00:06:17.030 --> 00:06:20.360 we should maybe buy that lake house and be a little bit more 00:06:20.360 --> 00:06:22.670 secluded on our own. 00:06:22.670 --> 00:06:26.100 So the goals might have shifted and change. 00:06:26.100 --> 00:06:29.210 But we want to make sure that your portfolio in your plan 00:06:29.210 --> 00:06:31.880 is reflective of what your current goals are. 00:06:31.880 --> 00:06:34.933 Right So let's say my plan in 00:06:34.933 --> 00:06:37.100 retirement does change and you're talking about all you've got to make sure 00:06:37.100 --> 00:06:39.620 your portfolio and all that matches 00:06:39.620 --> 00:06:42.483 what is a step I can take to start to figure that out. 00:06:42.483 --> 00:06:44.900 Like Oh, I've decided I'm not going to have two properties 00:06:44.900 --> 00:06:45.400 or whatever. I 00:06:45.400 --> 00:06:46.418 just want one. 00:06:46.418 --> 00:06:47.960 So all of a sudden, that's an expense 00:06:47.960 --> 00:06:49.160 that might have gone down. 00:06:49.160 --> 00:06:52.190 So your portfolio or plan that you currently have. 00:06:52.190 --> 00:06:56.690 Did you give an example, might have a budget of $10,000 00:06:56.690 --> 00:06:57.430 a month. 00:06:57.430 --> 00:06:59.510 And in that budget of $10,000 a month 00:06:59.510 --> 00:07:02.780 we've already budgeted for that second vacation home 00:07:02.780 --> 00:07:04.790 or something down in Florida. 00:07:04.790 --> 00:07:07.730 And if you're not going to spend that time in Florida 00:07:07.730 --> 00:07:10.910 and the cost has gone down because you built something 00:07:10.910 --> 00:07:13.290 in Massachusetts or New Hampshire. 00:07:13.290 --> 00:07:17.150 So then we have to make your portfolio reflect that less 00:07:17.150 --> 00:07:20.120 need for income because your expenses are down. 00:07:20.120 --> 00:07:22.070 So let's make sure that we change your budget 00:07:22.070 --> 00:07:24.020 to reflect what's actually going to happen 00:07:24.020 --> 00:07:26.300 versus what we were thinking it was going 00:07:26.300 --> 00:07:29.310 to happen if I am someone that's thinking, 00:07:29.310 --> 00:07:31.793 OK, I'm 62 I was thinking of going to 65 00:07:31.793 --> 00:07:33.710 and then retiring and doing the Florida thing. 00:07:33.710 --> 00:07:35.640 But now that I'm not going to do that. 00:07:35.640 --> 00:07:38.827 And I see that my budget is whatever this is how does that 00:07:38.827 --> 00:07:40.910 affect my probability of success that we've talked 00:07:40.910 --> 00:07:42.560 about in previous episodes. 00:07:42.560 --> 00:07:44.720 How I guess you kind of answered this question 00:07:44.720 --> 00:07:46.428 a little bit about how it just comes back to 00:07:46.428 --> 00:07:48.210 looking at your oil right. 00:07:48.210 --> 00:07:49.120 You haven't reviewed. 00:07:49.120 --> 00:07:51.470 Right So oftentimes in this business. 00:07:51.470 --> 00:07:54.940 We hear individuals say my financial advisor will 00:07:54.940 --> 00:07:56.950 meet with me once a year. 00:07:56.950 --> 00:07:59.590 Well I think you'd want to at least have a conversation 00:07:59.590 --> 00:08:02.430 or meet with the advisor at least every quarter. 00:08:02.430 --> 00:08:04.840 OK So we can make changes and adjust 00:08:04.840 --> 00:08:07.430 to what's happened just because you have a financial plan. 00:08:07.430 --> 00:08:10.430 It's not like you take it and just put it on the shelf, 00:08:10.430 --> 00:08:11.990 and it correct itself. 00:08:11.990 --> 00:08:13.930 And it solves its own problems. 00:08:13.930 --> 00:08:14.950 Things change. 00:08:14.950 --> 00:08:19.420 So we have to change the plan as your circumstances change 00:08:19.420 --> 00:08:20.770 in the economy in the world. 00:08:20.770 --> 00:08:25.070 So we have to make the necessary adjustments along the line. 00:08:25.070 --> 00:08:27.340 So that we don't get too far down the path 00:08:27.340 --> 00:08:28.615 and we're out of whack. 00:08:28.615 --> 00:08:30.490 Right we want to make sure that we constantly 00:08:30.490 --> 00:08:31.792 are in the right path. 00:08:31.792 --> 00:08:33.000 You made a great point there. 00:08:33.000 --> 00:08:36.710 Like that constant communication because retirement. 00:08:36.710 --> 00:08:38.570 The way that retirement planning, especially 00:08:38.570 --> 00:08:41.270 now that we're in 2020 and everything going on really 00:08:41.270 --> 00:08:44.330 seems to be you have to be able to make real time decisions 00:08:44.330 --> 00:08:47.240 like to bring up a Patriots example, like Bill Belichick. 00:08:47.240 --> 00:08:49.038 You know, he's making in-game adjustments 00:08:49.038 --> 00:08:51.080 to make sure that he's increasing his probability 00:08:51.080 --> 00:08:52.040 of winning the game. 00:08:52.040 --> 00:08:54.630 It's not that, hey, we're going in with this game plan. 00:08:54.630 --> 00:08:56.870 And if we throw six interceptions. 00:08:56.870 --> 00:08:58.380 That's the only route that we plan. 00:08:58.380 --> 00:08:58.880 This week. 00:08:58.880 --> 00:09:00.260 So we're going to throw it every play. 00:09:00.260 --> 00:09:01.640 Yeah you're making those adjustment 00:09:01.640 --> 00:09:02.870 you want to make adjustments. 00:09:02.870 --> 00:09:05.330 It's like kind of like turning the Queen Mary boat right. 00:09:05.330 --> 00:09:08.687 That would take quite some time to turn the ball around. 00:09:08.687 --> 00:09:09.770 We want to be a speedboat. 00:09:09.770 --> 00:09:12.530 We want to be able to change direction on the fly. 00:09:12.530 --> 00:09:17.550 In that moment to enhance or to maximize potential gains 00:09:17.550 --> 00:09:20.210 or limit any potential losses. 00:09:20.210 --> 00:09:21.440 So we want to be a speedboat. 00:09:21.440 --> 00:09:23.840 We don't want to be the Queen Mary Gotcha. 00:09:23.840 --> 00:09:26.990 So going into number three talking about 00:09:26.990 --> 00:09:28.640 like making real time adjustments 00:09:28.640 --> 00:09:30.650 you talk about amping up your savings. 00:09:30.650 --> 00:09:33.862 And I know that there's, of there's 00:09:33.862 --> 00:09:35.570 a lot of people that are having arguments 00:09:35.570 --> 00:09:37.945 like I'm better off just putting my money in the mattress rather than 00:09:37.945 --> 00:09:40.490 putting in a bank right now because savings 00:09:40.490 --> 00:09:43.760 interest is so so low in a lot of accounts 00:09:43.760 --> 00:09:45.650 and a lot of credit union stuff like that. 00:09:45.650 --> 00:09:48.500 Why why would we put emptying your savings up on something 00:09:48.500 --> 00:09:50.350 that we should review for 2020. 00:09:50.350 --> 00:09:51.550 But going into 2021. 00:09:51.550 --> 00:09:54.050 And savings could be the bank CD. 00:09:54.050 --> 00:09:56.180 But you know as you mentioned interest rates are 00:09:56.180 --> 00:09:58.910 so low that you're not really getting anything out of it. 00:09:58.910 --> 00:10:01.940 Some people are concerned of, hey, I get this extra money. 00:10:01.940 --> 00:10:02.755 The market's down. 00:10:02.755 --> 00:10:04.130 I think it's crazy that I'm going 00:10:04.130 --> 00:10:06.320 to put this into my brokerage account 00:10:06.320 --> 00:10:08.960 and just watch it dissipate over time. 00:10:08.960 --> 00:10:12.230 Well I look at it as is an opportunity as a buying 00:10:12.230 --> 00:10:14.750 opportunity if the markets are down 00:10:14.750 --> 00:10:18.930 buying things at a lower price, which is dollar cost averaging. 00:10:18.930 --> 00:10:22.400 So you you'll ride the crest up once there is a recovery 00:10:22.400 --> 00:10:24.950 listen, there's going to be a stimulus package that's 00:10:24.950 --> 00:10:28.210 going to happen soon there's going to be a vaccine 00:10:28.210 --> 00:10:30.260 a vaccination for COVID. 00:10:30.260 --> 00:10:33.270 So things are suppressed right now, 00:10:33.270 --> 00:10:35.060 but things will turn around. 00:10:35.060 --> 00:10:39.140 So if we're used to save and can continue to save 00:10:39.140 --> 00:10:40.790 and don't just put it in the mattress 00:10:40.790 --> 00:10:42.930 you're not earning anything there roaring 00:10:42.930 --> 00:10:44.877 and the bank is there. 00:10:44.877 --> 00:10:46.460 Is there a certain amount of liquidity 00:10:46.460 --> 00:10:47.300 they should have or is. 00:10:47.300 --> 00:10:47.630 I'm sorry. 00:10:47.630 --> 00:10:49.850 Does putting it in some of these other accounts that 00:10:49.850 --> 00:10:53.240 are a little bit more aggressive reduce my liquidity 00:10:53.240 --> 00:10:54.670 if I did need it for some reason. 00:10:54.670 --> 00:10:55.400 It depends. 00:10:55.400 --> 00:10:58.430 So when you put it buy stocks mutual funds 00:10:58.430 --> 00:10:59.630 that's a long term thing. 00:10:59.630 --> 00:11:01.910 So if we need liquidity you want to make sure 00:11:01.910 --> 00:11:05.970 that we have enough liquidity in the bank to meet our liquidity. 00:11:05.970 --> 00:11:09.080 OK So every person has a different zero. 00:11:09.080 --> 00:11:13.820 I say that they need in the bank whether it be 10,100 1,000. 00:11:13.820 --> 00:11:16.280 Everyone has a different number that they 00:11:16.280 --> 00:11:19.880 feel comfortable in having as liquid cash. 00:11:19.880 --> 00:11:21.770 It could be six months to a year's worth 00:11:21.770 --> 00:11:24.660 of expenses set aside. 00:11:24.660 --> 00:11:26.960 So that if there is a market downturn 00:11:26.960 --> 00:11:30.220 we don't have to sell anything to create the income they need. 00:11:30.220 --> 00:11:31.020 Got you. 00:11:31.020 --> 00:11:31.520 Is there. 00:11:31.520 --> 00:11:36.170 If I'm still working should I consider squirreling away 00:11:36.170 --> 00:11:38.000 more money, or should I consider I 00:11:38.000 --> 00:11:39.950 guess it like always it's me in question here. 00:11:39.950 --> 00:11:40.940 It depends on your situation. 00:11:40.940 --> 00:11:43.490 Absolutely I was going to say, well anything you can save 00:11:43.490 --> 00:11:44.810 more money, save more money. 00:11:44.810 --> 00:11:48.730 Right I remember Mike my grandfather saying years ago 00:11:48.730 --> 00:11:53.220 when I was younger, he says money is not meant to be spent. 00:11:53.220 --> 00:11:55.640 But money is meant to be saved. 00:11:55.640 --> 00:11:57.470 And he's kind of right. 00:11:57.470 --> 00:12:00.080 So we can save more. 00:12:00.080 --> 00:12:01.460 Save it. 00:12:01.460 --> 00:12:03.620 So that means looking at their budget. 00:12:03.620 --> 00:12:05.330 So all of a sudden, if our spending needs 00:12:05.330 --> 00:12:07.940 have decreased it means we can spend more. 00:12:07.940 --> 00:12:10.430 So let's make sure we put it in the right bucket 00:12:10.430 --> 00:12:12.770 to save in the appropriate place. 00:12:12.770 --> 00:12:14.390 Somebody gave me a tip one time. 00:12:14.390 --> 00:12:17.450 And it wasn't my grandfather, but it was like the Save 00:12:17.450 --> 00:12:18.880 aggressively where you can. 00:12:18.880 --> 00:12:21.300 So that way when you have something that you love to do. 00:12:21.300 --> 00:12:23.150 You can spend freely on it. 00:12:23.150 --> 00:12:24.610 And it kind of seems like the. 00:12:24.610 --> 00:12:25.768 Yes the same mindset. 00:12:25.768 --> 00:12:27.060 So Yeah, it's important to you. 00:12:27.290 --> 00:12:29.070 You can spend a few bucks more on that. 00:12:29.070 --> 00:12:30.680 But I'm thinking with the whole world 00:12:30.680 --> 00:12:32.030 kind of changing right now where I'm not 00:12:32.030 --> 00:12:33.360 spending as much in gas money. 00:12:33.360 --> 00:12:35.060 So I'm saving 40 bucks a week there. 00:12:35.060 --> 00:12:37.040 So instead of just spending it Willy nilly 00:12:37.040 --> 00:12:38.520 on whatever it's pocketed away. 00:12:38.520 --> 00:12:40.700 So that way, if some bigger expense comes 00:12:40.700 --> 00:12:42.300 I can't splurge a little bit on that. 00:12:42.300 --> 00:12:43.860 And you'd be surprised on the budget. 00:12:43.860 --> 00:12:46.640 Like you say like I didn't drive because we 00:12:46.640 --> 00:12:47.810 all were working from home. 00:12:47.810 --> 00:12:50.280 My kids weren't playing hockey sports were shut down. 00:12:50.280 --> 00:12:54.040 I literally, I think I got my gas tank up once 00:12:54.040 --> 00:12:55.790 and I have a small vehicle. 00:12:55.790 --> 00:12:59.390 Now and I was amazed at how little I will spend on gas. 00:12:59.390 --> 00:13:03.200 But I was spending it way more on groceries or things 00:13:03.200 --> 00:13:04.730 from around the house on that guy 00:13:04.730 --> 00:13:07.160 that if I don't have a hockey rink to go 00:13:07.160 --> 00:13:08.700 to or a sporting event. 00:13:08.700 --> 00:13:10.870 I sit-in the backyard instead of relax. 00:13:10.870 --> 00:13:14.060 And I just see 1,000 things that need to be done right. 00:13:14.060 --> 00:13:17.420 So I'm at ace I'm live in there buying different things. 00:13:17.420 --> 00:13:21.800 So the spending in my experience spending didn't go down. 00:13:21.800 --> 00:13:23.362 Spending was the same, but it just 00:13:23.362 --> 00:13:24.570 went into different location. 00:13:24.570 --> 00:13:28.070 Yeah your budget went from this line item that's line item. 00:13:28.070 --> 00:13:30.650 Well we want to make sure, for the retirement spending 00:13:30.650 --> 00:13:33.440 that we understand what is our income needs. 00:13:33.440 --> 00:13:35.180 Once we stop working. 00:13:35.180 --> 00:13:37.960 We always talk about the Three Legged stool 00:13:37.960 --> 00:13:41.580 that people have for income, pension, social security 00:13:41.580 --> 00:13:43.300 in your savings and your investment 00:13:43.300 --> 00:13:45.460 made up that third leg. 00:13:45.460 --> 00:13:47.800 So whatever we're short, we have to come up 00:13:47.800 --> 00:13:50.350 with a plan for that income gap to make sure 00:13:50.350 --> 00:13:51.580 that we plan for it. 00:13:51.580 --> 00:13:55.480 So having the idea of what we spend on a monthly basis 00:13:55.480 --> 00:13:57.548 where that income is coming from is crucial. 00:13:57.548 --> 00:13:59.590 It's almost like step one in retirement planning. 00:13:59.590 --> 00:14:01.382 Right it's actually brings us to tip number five, 00:14:01.382 --> 00:14:03.320 which you have to be proactive, 00:14:03.320 --> 00:14:06.120 which is, again, understanding what those line items are going 00:14:06.120 --> 00:14:07.550 to be what their budget is. 00:14:07.550 --> 00:14:09.550 And then being able to be proactive about making 00:14:09.550 --> 00:14:11.758 those adjustments either before you're in retirement. Exactly 00:14:11.758 --> 00:14:14.663 well we sit down with someone we always asked him, 00:14:14.663 --> 00:14:16.330 you know how do you envision retirement. 00:14:16.330 --> 00:14:18.820 What is your retirement picture look like. 00:14:18.820 --> 00:14:20.680 Some say it's going to be down in Florida 00:14:20.680 --> 00:14:22.095 for six months and a day. 00:14:22.095 --> 00:14:23.470 Some say, I'm going to be up here 00:14:23.470 --> 00:14:27.677 in the North go to floor for a couple of weeks at a time. 00:14:27.677 --> 00:14:28.760 I'm going to rent a place. 00:14:28.760 --> 00:14:29.890 I don't want to buy. 00:14:29.890 --> 00:14:31.970 Some might just be like, hey, I'm going to be around here. 00:14:31.970 --> 00:14:34.178 I'm going to go to all the grandkids sporting events. I want 00:14:34.178 --> 00:14:36.250 to be around the kids. 00:14:36.250 --> 00:14:40.550 So you want to know what you envision retirement looks like. 00:14:40.550 --> 00:14:42.160 And then plan around that. 00:14:42.160 --> 00:14:44.650 What is that going to cost us. 00:14:44.650 --> 00:14:45.640 What do we need. 00:14:45.640 --> 00:14:47.680 We going to travel a lot to see the grandkids 00:14:47.680 --> 00:14:50.590 are they spread out over the country. 00:14:50.590 --> 00:14:53.470 So what is the added expenses that we 00:14:53.470 --> 00:14:56.350 might have in retire and proactive 00:14:56.350 --> 00:15:00.580 also means we look at things and say, I want to travel. 00:15:00.580 --> 00:15:02.060 Sometimes when we build the plan. 00:15:02.060 --> 00:15:02.990 We build up. 00:15:02.990 --> 00:15:05.620 Hey let's spend a little bit more in the early years 00:15:05.620 --> 00:15:06.790 when we're healthier. 00:15:06.790 --> 00:15:11.590 We can do more things aren't as much of a hassle 00:15:11.590 --> 00:15:12.280 as it once were. 00:15:12.280 --> 00:15:16.300 So we kind of, let's say you need $50,000 a year 00:15:16.300 --> 00:15:17.560 to live your life. 00:15:17.560 --> 00:15:21.650 Well let's make it 60 65 for the first 10, 15 years. 00:15:21.650 --> 00:15:25.320 And then we reduce our spending in the later half 00:15:25.320 --> 00:15:26.820 or we keep that spending throughout. 00:15:26.820 --> 00:15:28.487 If we can look and see that you're still going to 00:15:28.487 --> 00:15:30.560 have nothing but success, 00:15:30.560 --> 00:15:31.960 then we keep that spending. 00:15:31.960 --> 00:15:34.770 But let's listen BJ Taylor BJ Taylor it 00:15:34.770 --> 00:15:37.000 to you in your situation actual situation. 00:15:37.000 --> 00:15:39.070 If I was a charitable person how would 00:15:39.070 --> 00:15:41.950 that come into play with all these things like it. 00:15:41.950 --> 00:15:42.788 Typically I would. 00:15:42.788 --> 00:15:43.580 Again, I'm working. 00:15:43.580 --> 00:15:44.872 So it's a little bit different. I would say, 00:15:44.872 --> 00:15:47.410 hey, here is Pine Street in 500 bucks a year 00:15:47.410 --> 00:15:50.200 because I love doing stuff to help the homeless. 00:15:50.200 --> 00:15:51.610 If I'm retired that. 00:15:51.610 --> 00:15:55.000 And I don't have an extra $500 to spend right or do 00:15:55.000 --> 00:15:57.190 I. Well it depends on everyone's situation. 00:15:57.190 --> 00:16:00.010 So if you're a charitable person let's 00:16:00.010 --> 00:16:02.860 say you need to take the required minimum distribution 00:16:02.860 --> 00:16:04.260 from your IRS. 00:16:04.260 --> 00:16:08.200 OK because you're 72 and the IRS requires it. 00:16:08.200 --> 00:16:10.660 Hey you got to take money out of your IRA. 00:16:10.660 --> 00:16:12.280 You got to pay the taxes. 00:16:12.280 --> 00:16:14.530 And then you can do what you want with the rest of it. 00:16:14.530 --> 00:16:17.980 You can either reinvest it you can spend it. 00:16:17.980 --> 00:16:19.540 Everyone's situation is different. 00:16:19.540 --> 00:16:23.620 But some people do not rely on their required minimum 00:16:23.620 --> 00:16:26.310 distribution to live their life. 00:16:26.310 --> 00:16:30.320 OK So they are forced to take it and pay the taxes, 00:16:30.320 --> 00:16:31.600 and they just hate that. 00:16:31.600 --> 00:16:33.010 I get to call all time John, what 00:16:33.010 --> 00:16:34.260 am I supposed to do with this. I got to take 00:16:34.260 --> 00:16:35.097 it. 00:16:35.097 --> 00:16:36.680 You know we put it back into the plan. 00:16:36.680 --> 00:16:38.140 We re reinvest it. 00:16:38.140 --> 00:16:39.950 But if you're fortunate enough. 00:16:39.950 --> 00:16:42.800 If you actually take a requirement of distribution. 00:16:42.800 --> 00:16:45.130 And it's properly structured that it 00:16:45.130 --> 00:16:47.140 goes to a charity right. 00:16:47.140 --> 00:16:49.810 You don't have to pay the taxes on that. 00:16:49.810 --> 00:16:51.940 The charity gets that money. 00:16:51.940 --> 00:16:53.740 They don't pay taxes on it. 00:16:53.740 --> 00:16:54.590 And you feel good. 00:16:54.590 --> 00:16:55.610 You did the good deed. 00:16:55.610 --> 00:16:59.190 If you're capable of doing that doesn't have to be large sums 00:16:59.190 --> 00:17:00.310 it could be any amount. 00:17:00.310 --> 00:17:02.256 So at this point in time of the year, 00:17:02.256 --> 00:17:04.089 you should be sitting down with your advisor 00:17:04.089 --> 00:17:07.180 and looking saying, are we going to liquidate anything. 00:17:07.180 --> 00:17:09.310 What's my tax situation look like this year 00:17:09.310 --> 00:17:10.480 versus maybe next year. 00:17:10.480 --> 00:17:14.300 Can we take advantage of maybe liquidate something this year. 00:17:14.300 --> 00:17:17.650 Pay lower taxes versus what they maybe 00:17:17.650 --> 00:17:21.079 might be next year based on which candidate wins the 00:17:21.079 --> 00:17:21.579 White House. 00:17:21.579 --> 00:17:24.835 That's a good point area that you're going into actually. 00:17:24.835 --> 00:17:26.960 Tip number six, which is find an advocate, but also 00:17:26.960 --> 00:17:29.542 like dealing with the advisor is making 00:17:29.542 --> 00:17:31.000 sure that you find somebody that's going 00:17:31.000 --> 00:17:34.300 to do what you want to be done for you for your retirement. 00:17:34.300 --> 00:17:35.410 Right it's not that again. 00:17:35.410 --> 00:17:37.953 We just have what charity like if I have a charity that's 00:17:37.953 --> 00:17:38.620 important to me. 00:17:38.620 --> 00:17:40.270 I would want to make sure I'm talking to somebody that's 00:17:40.270 --> 00:17:43.090 going to understand that in work my plan to be in a way 00:17:43.090 --> 00:17:45.970 that it's going to be conducive to what I really want 00:17:45.970 --> 00:17:47.200 envision for my retirement. 00:17:47.200 --> 00:17:49.450 And it could be something simple at the very beginning 00:17:49.450 --> 00:17:51.950 that, hey, I've been given this money to this charity for so many 00:17:51.950 --> 00:17:54.910 years, and I still want that to be part of my budget. 00:17:54.910 --> 00:17:57.100 So I want to make sure that we budget that as part 00:17:57.100 --> 00:17:57.900 of my expense. 00:17:57.900 --> 00:17:59.020 Moving forward. 00:17:59.020 --> 00:18:00.910 So your advisors are already well 00:18:00.910 --> 00:18:03.010 aware of what your situation is and what 00:18:03.010 --> 00:18:05.650 you're trying to accomplish let's say 00:18:05.650 --> 00:18:08.800 at the beginning of retirement and you weren't as charitable 00:18:08.800 --> 00:18:10.780 but you've been fortunate enough. 00:18:10.780 --> 00:18:14.640 Now you want to be the player can change to reflect that. 00:18:14.640 --> 00:18:17.620 Right we can make those necessary adjustments. 00:18:17.620 --> 00:18:19.870 You want to work with an advisor that you 00:18:19.870 --> 00:18:22.930 feel like you can count on that you understand 00:18:22.930 --> 00:18:26.260 what they're going to do to earn their fees for management. 00:18:26.260 --> 00:18:28.130 Have an idea of what is going to cost you. 00:18:28.130 --> 00:18:29.880 Make sure you know what it's going to cost to have 00:18:29.880 --> 00:18:31.480 my financial right. 00:18:31.480 --> 00:18:35.020 What can I expect from you on a yearly basis. 00:18:35.020 --> 00:18:37.950 And what were the parameters of this relationship. 00:18:37.950 --> 00:18:40.120 Listen it's a relationship. 00:18:40.120 --> 00:18:41.610 It's a two way street. 00:18:41.610 --> 00:18:44.600 I want to know what's happening in my client's life. 00:18:44.600 --> 00:18:48.840 What was changed so that we can make the changes 00:18:48.840 --> 00:18:50.910 it has to be a two way street. 00:18:50.910 --> 00:18:54.360 I think because of everything going on at 2020. 00:18:54.360 --> 00:18:57.900 There's got to be, I think, an emotional counterpart to a lot 00:18:57.900 --> 00:18:59.280 of what's going on too right. 00:18:59.280 --> 00:19:01.800 I feel like dealing with a financial advisor 00:19:01.800 --> 00:19:03.240 helps with that. 00:19:03.240 --> 00:19:04.980 When you have a financial advisor 00:19:04.980 --> 00:19:08.130 and you have a plan and we're in a year like 2020 00:19:08.130 --> 00:19:09.770 where there are so many lows. 00:19:09.770 --> 00:19:13.650 And then so many high very volatile and what happens 00:19:13.650 --> 00:19:17.670 is individuals who don't have a financial advisor or person 00:19:17.670 --> 00:19:21.210 to ask questions will be a sounding board too. 00:19:21.210 --> 00:19:23.250 They tend to overreact. 00:19:23.250 --> 00:19:25.680 They become emotional with their money 00:19:25.680 --> 00:19:27.240 and they make the wrong decisions. 00:19:27.240 --> 00:19:28.920 There's a study called the Dow Barr 00:19:28.920 --> 00:19:32.250 study that says the average investor gets only half 00:19:32.250 --> 00:19:34.560 of what the market actually gives 00:19:34.560 --> 00:19:36.090 because they're emotional. 00:19:36.090 --> 00:19:39.260 They buy high and sell low. 00:19:39.260 --> 00:19:42.420 They make the wrong decisions. 00:19:42.420 --> 00:19:46.500 So by having an advisor and also having a financial plan that's 00:19:46.500 --> 00:19:50.130 tailored to you the highs and lows already built into it. 00:19:50.130 --> 00:19:51.870 Right and then the individual who's 00:19:51.870 --> 00:19:55.830 your advisor he or she can say, hey, listen, we plan for this. 00:19:55.830 --> 00:19:57.180 This is what's happening. 00:19:57.180 --> 00:20:00.390 This is why your portfolio is behaving the way 00:20:00.390 --> 00:20:02.670 it is in this environment. 00:20:02.670 --> 00:20:03.950 But we've accounted for. 00:20:03.950 --> 00:20:05.160 And let me show you why. 00:20:05.160 --> 00:20:07.590 So basically talk show off the legitime little bit. 00:20:07.590 --> 00:20:09.090 You were telling me about the person 00:20:09.090 --> 00:20:12.055 that a few weeks leading up to the election, 00:20:12.055 --> 00:20:14.430 they got so scared about what the market was going to do. 00:20:14.430 --> 00:20:16.530 They just wanted to pull everything out and basically 00:20:16.530 --> 00:20:18.947 like I was saying, I put it in a mattress for a few weeks. Sure 00:20:18.947 --> 00:20:22.040 but there's pros and cons to that. 00:20:22.040 --> 00:20:24.105 And you're saying like you might not capture what 00:20:24.105 --> 00:20:25.230 some of the market's doing. 00:20:25.230 --> 00:20:27.330 And then you have to re-enter the market at a time 00:20:27.330 --> 00:20:27.870 that you don't know. 00:20:27.870 --> 00:20:29.100 So it's a perfect time right. 00:20:29.100 --> 00:20:32.500 So we have coming into the final part of the year. 00:20:32.500 --> 00:20:34.110 There's a lot of volatility, there's 00:20:34.110 --> 00:20:36.340 an election a lot of uncertainty. 00:20:36.340 --> 00:20:38.580 And this is a great time for you to take a look 00:20:38.580 --> 00:20:41.020 and see what is my risk tolerance. 00:20:41.020 --> 00:20:45.510 Right lot of people think they're an aggressive investor 00:20:45.510 --> 00:20:48.870 until they see what an aggressive portfolio projects 00:20:48.870 --> 00:20:50.760 to lose in any given year. 00:20:50.760 --> 00:20:51.560 Right right. 00:20:51.560 --> 00:20:52.260 Oh I'm not. 00:20:52.260 --> 00:20:56.430 I don't want to lose 30% or I can't afford to lose 30% Right 00:20:56.430 --> 00:21:00.000 but that's like the range of an aggressive investor. 00:21:00.000 --> 00:21:02.280 Take stock of what you have. 00:21:02.280 --> 00:21:04.080 Understand what your true risk tolerance 00:21:04.080 --> 00:21:07.980 is if you are really nervous about the volatility 00:21:07.980 --> 00:21:09.060 of the market. 00:21:09.060 --> 00:21:11.200 And we hear all time. 00:21:11.200 --> 00:21:13.260 I can't afford to lose money. 00:21:13.260 --> 00:21:15.678 Well you don't need all your money today right. 00:21:15.678 --> 00:21:17.220 Your retirement years are going to be 00:21:17.220 --> 00:21:20.490 almost as long as your living years and working years. 00:21:20.490 --> 00:21:23.070 So your working years you're working you're 00:21:23.070 --> 00:21:26.100 saving let's say you work for the same company for 30 years. 00:21:26.100 --> 00:21:28.530 You could potentially be retired for 30 years. 00:21:28.530 --> 00:21:31.140 Right with how long people live in tonight. 00:21:31.140 --> 00:21:34.170 So if you're overly nervous, maybe you're 00:21:34.170 --> 00:21:37.030 not in the right risk tolerance OK, 00:21:37.030 --> 00:21:39.450 maybe you need to readjust that maybe you 00:21:39.450 --> 00:21:43.830 need to be a little bit more conservative jumping into cash 00:21:43.830 --> 00:21:46.200 doesn't really overly protect you protect you 00:21:46.200 --> 00:21:48.550 for the short period time. 00:21:48.550 --> 00:21:50.230 But that individual. 00:21:50.230 --> 00:21:53.190 We talked about they went into cash 00:21:53.190 --> 00:21:56.050 and the market has done nothing but great since then. 00:21:56.050 --> 00:21:58.900 And I almost knew that was going to happen. 00:21:58.900 --> 00:22:00.870 But that individual's like a little bit 00:22:00.870 --> 00:22:02.530 of a different situation. 00:22:02.530 --> 00:22:04.950 But you want to take stock of what you have. 00:22:04.950 --> 00:22:07.860 But the risk tolerance is in readjusted 00:22:07.860 --> 00:22:10.830 to make sure that it's the right temperament for you. 00:22:10.830 --> 00:22:14.172 How do I figure out what my risk tolerance is. 00:22:14.172 --> 00:22:15.630 There's a process that you sit down 00:22:15.630 --> 00:22:19.170 with your financial advisor what your risk tolerance. 00:22:19.170 --> 00:22:21.210 You might say, I'm conservative. 00:22:21.210 --> 00:22:23.130 OK And that means we're not going to be 00:22:23.130 --> 00:22:25.540 overly aggressive in any way. 00:22:25.540 --> 00:22:28.980 But your situation might require you to be a little bit more 00:22:28.980 --> 00:22:32.040 than conservative because maybe you didn't save enough. 00:22:32.040 --> 00:22:34.410 Maybe you need a little bit more of a bigger 00:22:34.410 --> 00:22:38.450 return than what a conservative portfolio can give. 00:22:38.450 --> 00:22:41.070 OK a long extended period of time 00:22:41.070 --> 00:22:44.790 or if you're on the fortunate side, it might be you 00:22:44.790 --> 00:22:46.860 don't have to be a moderate investor. 00:22:46.860 --> 00:22:48.420 You saved enough. 00:22:48.420 --> 00:22:49.960 You've won the game. 00:22:49.960 --> 00:22:52.380 Why don't we become more conservative 00:22:52.380 --> 00:22:54.510 and not have such volatility. 00:22:54.510 --> 00:22:55.500 OK OK. 00:22:55.500 --> 00:22:57.605 So you sitting down with your advisor 00:22:57.605 --> 00:22:59.730 and going through the process of financial planning 00:22:59.730 --> 00:23:01.980 for you is going to pinpoint what's 00:23:01.980 --> 00:23:04.500 the right true right risk tolerance for you. 00:23:04.500 --> 00:23:05.340 That's a good point. 00:23:05.340 --> 00:23:05.850 There is. 00:23:05.850 --> 00:23:07.080 There's my personal like. 00:23:07.080 --> 00:23:10.290 What scares me about ups and Downs really risky markets 00:23:10.290 --> 00:23:11.730 and in conservative markets. 00:23:11.730 --> 00:23:13.800 And then there's what does my portfolio actually 00:23:13.800 --> 00:23:15.300 have to do in order to have a higher 00:23:15.300 --> 00:23:18.180 proportion of that probability of success in retirement. 00:23:18.180 --> 00:23:20.970 Yeah, I would say there's this risk tolerance 00:23:20.970 --> 00:23:22.570 and there's risk capacity right. 00:23:22.570 --> 00:23:25.860 Like what is my capacity to take on that risk. 00:23:25.860 --> 00:23:28.740 Well not everything goes up every single year. 00:23:28.740 --> 00:23:31.380 We can lower class ourselves into this. 00:23:31.380 --> 00:23:32.280 Believe in that. 00:23:32.280 --> 00:23:34.010 Well the markets always go up. 00:23:34.010 --> 00:23:35.770 And then all of a sudden, we see how quick 00:23:35.770 --> 00:23:37.450 the markets like in 2008. 00:23:37.450 --> 00:23:42.070 I think the markets dropped we'll say 45% in a one year 00:23:42.070 --> 00:23:46.190 period time or 13 months, whereas this situation, 00:23:46.190 --> 00:23:48.690 the market dropped rapidly in a short period. 00:23:48.690 --> 00:23:52.930 Right So in that quick drop makes your stomach drops 00:23:52.930 --> 00:23:54.960 like the roller coaster right now 00:23:54.960 --> 00:23:57.790 you've got to have the hospital to kind of write it out. 00:23:57.790 --> 00:24:00.550 But if you don't understand your financial plan 00:24:00.550 --> 00:24:05.540 or you don't understand it, you might overreact right. 00:24:05.540 --> 00:24:07.100 And say I'm getting out. 00:24:07.100 --> 00:24:09.880 And then you took all the loss you went to cash 00:24:09.880 --> 00:24:13.040 and then there's been a rally with the stimulus package. 00:24:13.040 --> 00:24:18.038 And so forth from we'll say April through August. 00:24:18.038 --> 00:24:19.830 Well if you didn't get in at the right time 00:24:19.830 --> 00:24:21.690 and you just kind of slowly got in. 00:24:21.690 --> 00:24:24.600 And also in August starts to drop again in September. 00:24:24.600 --> 00:24:26.220 Well you missed a rally and now you're 00:24:26.220 --> 00:24:29.730 taking part in the second look at the second wave. 00:24:29.730 --> 00:24:32.130 So be disciplined. 00:24:32.130 --> 00:24:34.640 Have there the appropriate approach 00:24:34.640 --> 00:24:37.710 and rely on your advisor or an advocate 00:24:37.710 --> 00:24:39.790 that you can turn to seek help. 00:24:39.790 --> 00:24:40.590 There is. 00:24:40.590 --> 00:24:42.590 I was saying I'm doing an episode on this later. 00:24:42.590 --> 00:24:46.885 Is the Charlie mongers book Warren Buffett's partner. 00:24:46.885 --> 00:24:48.510 I think its portrayal is almost like he 00:24:48.510 --> 00:24:50.260 talks of all these different biases people have 00:24:50.260 --> 00:24:51.420 in one of them. 00:24:51.420 --> 00:24:53.440 I think we were kind of skimming over it. 00:24:53.440 --> 00:24:55.815 But we didn't actually say it's called confirmation bias. So 00:24:55.815 --> 00:24:58.210 whatever you kind of believe in, 00:24:58.210 --> 00:25:00.450 you're going to look for other outlets or 00:25:00.450 --> 00:25:02.700 other news things that are going to confirm that thought process. 00:25:02.700 --> 00:25:04.310 So if you think the sky is falling 00:25:04.310 --> 00:25:06.662 you're going to trust those news sites or those websites 00:25:06.662 --> 00:25:08.370 or whoever those other people are they're 00:25:08.370 --> 00:25:09.800 going to say the sky is falling. 00:25:09.800 --> 00:25:11.127 You're going to be like CCC. 00:25:11.127 --> 00:25:12.960 But like you said, if you work with somebody 00:25:12.960 --> 00:25:15.910 that is emotionally independent of that. 00:25:15.910 --> 00:25:19.470 And can say, listen, I actually have this data that's 00:25:19.470 --> 00:25:22.770 telling me y, or z, or based on what your portfolio needs 00:25:22.770 --> 00:25:25.800 to do it has to do X, Y, or Z. I think 00:25:25.800 --> 00:25:28.500 you're not paying the financial advisor to tell you 00:25:28.500 --> 00:25:29.760 what you want to hear. 00:25:29.760 --> 00:25:30.450 Yes, thank you. 00:25:30.450 --> 00:25:32.970 Perfect the financial advisor is here to tell you 00:25:32.970 --> 00:25:34.440 what you need to hear right. 00:25:34.440 --> 00:25:37.410 OK And listen, we're a team. 00:25:37.410 --> 00:25:39.540 The client and the advisor we want 00:25:39.540 --> 00:25:42.240 to make sure that we achieve the goals together. 00:25:42.240 --> 00:25:44.610 But that doesn't always mean our views 00:25:44.610 --> 00:25:46.380 are going to be the same as well. 00:25:46.380 --> 00:25:48.960 So you have to make sure that you understand your advisor is 00:25:48.960 --> 00:25:52.270 not going to be a yes person. 00:25:52.270 --> 00:25:56.010 If you want to go to cash because you're too panicked. 00:25:56.010 --> 00:25:59.490 I have to as a producer explain to you that why this is maybe 00:25:59.490 --> 00:26:01.620 not the right decision. 00:26:01.620 --> 00:26:05.340 And we have to come to some type of an agreement together. 00:26:05.340 --> 00:26:08.760 But it's you have to be educated right to understand so that you 00:26:08.760 --> 00:26:10.440 don't become so emotional. 00:26:10.440 --> 00:26:14.280 Right So that's what a good advisor is having 00:26:14.280 --> 00:26:16.470 a good team like any good sports team 00:26:16.470 --> 00:26:20.430 has a great coach has a great team around there. 00:26:20.430 --> 00:26:21.510 Right right. 00:26:21.510 --> 00:26:23.400 No one does it on their own right. 00:26:23.400 --> 00:26:25.080 You need a great team around you. 00:26:25.080 --> 00:26:26.530 Good that's a good way to kind of someone's 00:26:26.530 --> 00:26:28.113 like you need a great team around you. So don't 00:26:28.113 --> 00:26:30.970 be afraid to ask the hard questions. 00:26:30.970 --> 00:26:32.497 The uncomfortable questions. 00:26:32.497 --> 00:26:34.080 Because in the long run, it's actually 00:26:34.080 --> 00:26:36.300 going to help you because you're going to learn more 00:26:36.300 --> 00:26:38.520 and you're going to be able to take that information 00:26:38.520 --> 00:26:40.812 and make better informed decisions with your retirement 00:26:40.812 --> 00:26:41.520 planning process. 00:26:41.520 --> 00:26:42.600 Absolutely I agree. 00:26:42.600 --> 00:26:45.090 Awesome John, thank you very much for taking the time. 00:26:45.090 --> 00:26:46.182 It's always my pleasure. 00:26:46.182 --> 00:26:47.640 Always remember last everything you 00:26:47.640 --> 00:26:50.520 said was your favorite thing I'm holding you to that. 00:26:50.520 --> 00:26:52.700 Did I say that I got I got it. 00:26:52.700 --> 00:26:55.470 I If you have any questions, feel 00:26:55.470 --> 00:26:57.358 free to head over to after the Paycheck 00:26:57.358 --> 00:26:59.400 if you're not already there and fill out the form 00:26:59.400 --> 00:27:02.010 or if you want to schedule a quick chat with one 00:27:02.010 --> 00:27:03.515 of the guys, there's also a calendar 00:27:03.515 --> 00:27:05.640 at the bottom of the website that you can book time 00:27:05.640 --> 00:27:06.807 to chat with you to see him. John 00:27:06.807 --> 00:27:07.710 Ryan. 00:27:07.710 --> 00:27:08.660 Until next time. 00:27:08.660 --> 00:27:09.910 Ticket