Dollars and Sense Radio Show - 12.3.17

Sunday, December 3rd

01:22:10

Another great show with Troy and Lauri! Enjoy!

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Listening to adopt a century ago. Didn't show its true. As a Richardson's from your digital management LLC and registered investment advisor in the state of Colorado insurance from. Products and services for your pitcher who. Incorporated actual management LLC and hit 200. And now the dollars and cents radio show and your favorite old joy and Lorraine and. Paintings and tuning into dollars. Your radio show like this morning. So try eating cats that song. I didn't know before nine I was like what is this a test until the HD Louisiana it's I guess as a as a man with all the toys. How does come I never really only right that can be your theme songs how old guy anyway yeah companies and slash. That wasn't a bad thing Troy that was Dave's kids play I definitely never heard it before is cute she anyways I got her loses Florian Charlie and Beach Boys. The idea here with us this morning. And it is us third of December. Has Erekat and on that notes. I I wanna put out a couple of happy birthdays into the two calf fees. We've got my mother Kathy who is born on this day. In 1948 happy birthday mom in my other Kathy Laurie your mom my mother in law who was born. Seeing year on December 5 this upcoming Tuesday so Kathy happy for Katie was well on the native. He can't it we got a third. Patty birthday on and it is set and Brian is not here today but December 7 1948. Why is mom was born. Here's all the morals born. And this week in 19480. Moments so oh hence back says back to its back in time segment is going to be 1948 self. Oregon and so happy birthday to all these three wonderful people. Can't get the end dining yep exactly so oh irate on station a while I gotta say first I. Before I forget. A lot of calls in over the past couple weeks. If you sins if you are tuning in before on receiver Eddie you're off last week for things like holiday but I it's and we had a destructive. Time I guess in that one of our friends we found out had a massive heart attack during the show so it can it not due to the show not he's he's not listening. Threat strap man from Phoenix to new finance he's a financial advisors well it he raised his cotton winds at about. Now almost 9 o'clock that he had at a mass protect so anyways he did pass. Night before Thanksgiving oddly announced his porn on the fourth of July and passed on his wife's birthday. Interesting ten to 56. So oh we literally just came in last night for miss fewer homes got back in about midnight last night says he see here's something we're not quite up yet and in our boys are that. We are up and excited Dennis 48 hours of all aware whirlwind it has a lot of travel. But we have a lot to discuss on the program today there's a lot that happened in the markets this week. Tax reform. The markets were way up and then what it down we're gonna talk about that break it down. What was driving these markets in both directions. We'll be talking about taxes were going to be talking about the for a one k.s were going to be talking about I've got a really in Christine studied to share with you today. That's. I think may surprise you. I'm gonna save that little teaser but very interesting study. About. How to increase. You returns over the long run. And I think it may surprise you. And yet the results of this study may surprise you. What else we got. We're is that about common for a one 401K and seeks to avoid prosecuting decent. Housecleaning some tips son savvy year and house cleaning tips Sammy Knight at army here he has that time of the year and the infineon sun otherwise. It actually know what's interesting. Is in over into the we are officially into the shopping season the holiday shopping season. I have been blessed enough to be able to avoid. These retail. Establishment malls etc. But be in the news over the past couple weeks they have been releasing data showing that more in more folks. Our shopping via their Smartphones. Were on line. I have is that what this is going to the brick and mortar stores. In hands. Numbers that are just staggering. Cyber Monday was the biggest. Online shopping day in history. And actually. I fed into that because I by its our family draws names each year you know out of a hat and so. I eat seemed to get my father in law every single year. And in the years that I don't get my father in law. Somebody you know pulls me around the corner like here behind you you take him and they you know they they switch me. So I actually have started in this is the earliest. For me denies ever stirred my Christmas shopping. I got him down on Cyber Monday. Online. So there might eat a really really lucky I did I'm not gonna lie and I have to give you the credit because you gave me via the idea and the coupon is OIR. And do a little Lokhmanian led to mom mom was on new NCAA to balance out there on the register she's made it really easy I mean it started. Even into it this year. The holidays yeah why not I'm not into the buying aspect to all if it's not about that would add is an item is. The weather's been so beautiful ice spends entire afternoon. I have the football game. On strike if spirits NIC I went to the lows in I purchased all new LED lights strung him out the backyard. I've got. Lights a grounder back patio. It's nice I mean ninety I'm I don't enjoy it yeah. OK I by hung out what did you say would be year Christmas gifts. If you didn't have to decorate my eating Dallas. I hope I got into it he's as I pass a test card can I just that'd be my gift is if I can just leave and and would have to decorate the house so. No no that was the inside right I'd hate carrying out boxes out rain and you know there for Dustin yo what's in this one and you know and but the tree up in the lights and all that and so I did. Was able to bypass that so thank you. It's not a stock but it was you know it was like almost seventy degrees outside now if they did it. And it was gorgeous skiing and I go I put upon my colored lights to match the neighbors and so. Yeah so and so I am in the spirit. In that department. So I I did get some holiday spending habits are not gonna go through will go really all look later that just speaking at a get a say this is funny because. This is. True average holiday expenditure expenditure on total gifts purchased what do you think goodness is this group like. I totally US or per person I would guess it's true like couple because lake. For a couple more yeah like you and I don't really count like I buy the gifts for the kids in the Stanley insanity right how much the average person. Spence it's got to be. Aaron outs an average holiday expenditure on total gifts purchased I would think it's her adult per mainly pair. Now Brit yes. OK 80 am that because. I'm gonna buy for you and your gonna buy for many so let's say it's per person so this is what is projected to bear this is what it actually is yes. Per person a thousand bucks yes. And 106 million dollars hunt. This amount is increased from two under served from 2016 which was 505 dollars is going final five last year. Projected to be 19167. This year well that's on the back of a good economy but so this is what I like the Iraqis get interest rates below. Did the unemployment rate is low people have more discretionary income and that's engine sugar. So anything the average amount spend. On ourselves. For the holidays free into my life cycle and for. You won for no railing to Heidi I actually I've been guilty of doing them before. I won't this year because I'll be shopping online rate. So there's there's stats of how much if a person spends on themselves during the holiday yet. I don't know. Half fat cap I could I had to buy that in 53 dollars from doing. So I am not gonna spend 553 dollars and myself. And my site I don't know I'm gonna try not to. Go strike me. I I nag nag that anybody goes 08 I look at it on this I don't wanna have to walk this one back in a few weeks so this aid in I'm gonna attack. To only spend on others. But there are a couple of things that of course if you're out and I I on well what you do you tell me. I do your previous 4 am I you just tell me you what you want to veiled doll too well because there's things that there are certain things that. Fall into that category of we and I Biden is sore replaced this I wanna pick it out myself yeah and get it and so. That's. I've got a couple things fall into that category that's and I can you share them with you can I just paper and I have to say I'm paints. Did you keep the receipt from. You know. I made so. It's not coming off bad. It's not nice looking suit it's not not in that spirit like an eye on the tiny pit stop and there's no nothing under the tree. It's unwrap is a thing under the cheering now there's not and I just I feel as were scared that the poppies will start raining into them and it might happen didn't see their gives them not go under that tree Intel that night for Christmas and the patsy is just didn't today yankees they can smell through the rap being the little box they can smell it to treat. If it's on the floor I mean they care they need to see if anything they just wanna eat through it. Taken away in some fashion access. Yes go. So over the iPhone lines are open. Way hideaway 3035395420. Here's what I'm curious about. Obviously the millennial generation you know that they're going to do the majority of their. Holiday shop shopping in gifting on line I mean are you guys gonna do years mainly online if you can yes. Yes so my question is is. For example the baby boomer generation are they doing more on my shopping or do they still preferred. All still preferred it to it you know go to the store go to go to the mall. And you know spend a couple hours browsing the store's window shopping in the CNET and in carrying out the big you know sacks and sacks full of or our attitude has even really I do we can take more more people even in the baby boomer generation. Are gravitating towards online shopping to skip the knock out when he ills of the working day Tre iron. Our neighbor is my mom home because she is going to put a credit on ice on lining you're right now so she works in the mall so. She is Saturday and exactly she I had everything already done and probably silently until I know tiny tire hers my shopper. To give her credit card and say what ever it. Is an old couple. I learned needs are able lessened because last year your mother said he Troy. Yeah that's happened this does not nobody has her eye on this re really cool set are pair of thugs boots you know it bugs are. There yeah. Now they're really in my opinion sorry. Ugly Sousa yeah of course. And so she does and I found the exact pair she wants this bidders bullying on them whatever rhinestones on the gutless ANC as. And them all. Of course she's working there. And she says if you'd like would you just like muted to grab them in the and I can bring him to you and you can I sit sure think he'll. And so that was the into the conversation he hadn't if you went up to deliver I had no idea that the pair of you know soft. It's not like they're free and see knee high leather boots thirds so I think is her life slippers is acting out their boots slippers. So my mother in law delivers them. Utley home. And she said here's the receipts I almost fell off my chair. Ice it RBC easily it caffeine you didn't either and Disco how much you know how much they were. I about fell off my chair I would not I would if I turned around and do what a that is if I would have went into a store. A boot store at 808 with her and her three or 400 dollars well then I was. In that because your 400 dollars. This and they hate you they're. I only. Eight king instead they ought to be a little hip massage your feet inside 400 yeah. May very engaged in a tale I. At least legally than those not. It's not make the mistake of giving somebody else the task of yeah you getting did not pay you back I've learned that valuable lesson or. So. These kind of upset about it it's the old boy how I'm stay old I'm still taken back that I would omelets. It is. Laying up but didn't is a vital eighty. She probably just don't know who. Now I don't know as I don't shopping girl ugly girls and two hours that's what I'd. Anyway that we digress I. That's why we're just gonna make this the at least you we don't have a lot of organization for today's show because we've been traveling from what's a 38 hours in attending. All. And if you have a holiday story. Like Matt or like Guinea and that you would like to share. It was a good all share with us. We have as a media and the technology in this gives you permission to share you were. Polity story with us in we would love to share it with the rest of our listener herself. You did ask earlier and they don't get 3035395420. We won't we can live on the air but you can. Sure with the real white person my lovely cohost. And then we would love to share your story with the rest of our listeners self. We've Oregon LA give a shout out to say I should. At daddy and gave weird sinking is viewed Denny's been in the hospital for a few months. Dave has been a long time listener and wonderful into my knowledge our longest list I think so from cruise in from prison term truce yes so anyways our thoughts and prayers are with you both especially his holiday season. So any view that's color viewing with health issues or. You know family. Word bitter to hospitalized. Or. You know facing those issues at this time of the year. Our thoughts and prayers are with you too this is a difficult time. It's tough to deal with those things anyway a bit especially this time of the year. It's it just seems to be. You know you even more so even more difficult so we're we're thinking of all of you month. So let's talk about us what happened this week in the markets. It's an interest in week because. The headlines. Were really driving the markets. In the optimism. Passing tax reform. Was really the catalyst this week. And we had mentioned. Previously. That the tax bill had passed the house. And faced the uphill battle in this and that but that was the first hurdle. And so on Tuesday head into Thursday. The markets rallied. Nearly a percent gain. Each of that was days. And us both the S&P in the Dow ended up. A much higher for the week the NASDAQ was down just slightly. Ever so. But the interesting thing was then on Friday at one point on Friday. The markets were down triple digits or 300 points liked. So. You probably are not aware of this so probably ABC news and so the rally was. There to. In large part. Optimism on the tax reform bill. Passing the senate the end Trippi was really pushing to have that senate vote this week. And the news outlets were reporting that they were getting closer closer to that so the markets were reacting accordingly and on Friday. We see the market's taking. So what happened well what happened was ABC news. Reported. On Michael Floyd and who is. What was being charged. With. Are conspiracy that was being charged with a perjury. In lying in to be investigate the brush investigation. We'll ABC news takes this story on Friday. In reports that Flynn. Was going to in fact. Turn on trump. And this was going to testify against trumpet that he included with the Russians. The entire story. So all of that news. On that news as a direct result the markets were down Dow was down over 300 pointedly one point during that day all all. As a direct result of this news. Fast forward to right now 48 hours later less than 48 hours later. The person from ABC news that reporter. Has been hired. For reporting fake can lose. About four and that. Dumped the markets. And he's been fired so this the story was false. And its truck since this has been tweeting go figure. That folks should hire a little later. In sue ABC news for the airport for oil losses on Friday. And two at fake news. I'd out of that's gonna happen but he does bring up a good point so. You know the markets are hypersensitive right now. We are in the midst of a phenomenal. Bull market in the end we think I believe that we've got plenty of room left to run. Either way a Friday night. DC and it did you vote. And passed. On that vote the tax reform bill what happens now is. The house has their version that they passed ended up to the senate. The senate passed their version which is not the same as the house version so now what happens is they create a joint committee. And they go through did the dams were upset because. He voted on the singers like 450 pages in this bill. Image ovals are the devil is always in the details and he's saying so there's a lot that we don't know but they vote on this thing what's. I just had to laugh so I did a lot of Reading over the weekend because we're traveling in airports hotels. And what's interesting is that the Democrats were upset because wind of vote came to the floor. The reps said because there was too much hand written. Amending to the bill so they work you know they show pictures in the paper of certain pages just being crossed out a line through this and your rewrite things in the margin. Big deal. At the end of the day they voted to pass it but they still have to create. Yet another committee. To work out the for us to even talk about what he is in that tax reform bill because really they're still two versions of it. You know one has. Four or different tax brackets vs seven. The senate passed a version with seven but they're different brackets so there's a lot to be worked out but the bottom line is is. I have been predicting for the last two months that we will pass tax reform. Before the end of the year. He and I said yes and when that happens and I believe that it would and it did. That it is going to be very Merry Christmas on Wall Street and I think we are seeing that and I think that that's going to continue the president. I'm confident we all. Receive that bill on his desk before Christmas and will sign it and I think overall. Just in my broad opinion it's going to be a good thing for the economy it's going to be good thing for business. Yeah I did see it's gonna be buried long term. IDA vis. A lot of these are reform amendments. In the reform bill. Are staggered so some will come into play let's say 2019. And to you know over the next decade. But. The things that are not. Going to hit in until 20192020. Etc. Are going to go into a place it into effect immediately. So. It's yet to be seen but fingers crossed. We're all going to be. Happy. We in the details emerge. And win we go into tax preparation season here after the first of the year so I think that that is going to be good. So let's talk about this. All market that we're in just a few statistics. On this ball market. Over the past ninety ace past three months. The days. In the market have outnumbered the down days. To one. To want. In that same ninety day period. Nine total days. With the increases greater than half a percent skinny single day. Of those nine days with half a percent movement seven have been positive only two. Native. In the past fifteen weeks twelve have been up more positive market movers over those. Twelve weeks. But twenty and a half percent. Overall year to date including dividends. Over the past twelve months. The largest pull back. It's been two point 8% over cal that's it exit. We had two drops greater than 2% over last year. In over the last five years get this. He 100. In 7%. Total return. Over the past five years. Total. Which is an average of fifteen point 6% return per year. Now. I say that. Because this study that I'm going to share with you after the break at the top of the hour. Is going to. You should give you some direction on how to manage this. Bull market. Now I know you're saying what do you mean manage the bull market. We just ride it out we ran with great happy Luntz lasting not so fast because remember. That elevator and eventually. Will come back down to a certain degree. That may be a pullback that may be correction. In more than likely when it happens it will be a geopolitical or some sort of a global event. Dat. Will cause all boats to rise and then fall. With that tied to thank all markets will be affected the same when we do have that next correction. It could eat North Korea. It could be something else that it's going to be something that. Neither use nor your financial professional have any control over. In ice that. Because this studying this black rock steady then I'm going to share with you after that that top the hour. Is really going to put in perspective the importance. Effectively managing. It bull market. I mean again I know you're thinking. Courageous round with a full strength. There's a lot of people miserable people in 2008. I mean it's a lot of. Well don't have to go back FRE. Eight and 2015. If we major it on a calendar year in the markets from January 1. Through December 31. The markets were down the entire year. OK but not as much as to who I mean when did shoes that is what I wish I had earlier it was not a. Session it was not a market crash that was a market crash it just about ended every universally speaking it was a down. Toys out is do we it was a bad here. I'll keep it in perspective. Average. Financial professional. War I'm I've got my air quotes. Expert. Talking Heads. In the news outlets. They interpret predicting in 2007. At 2008. Was going to be yet again a another great year. We were running for steam ahead in that war was charging in 2007 praying that. So old folks did not see coming. Things like the average drop in share price on the New York Stock Exchange. In 2008. Was 43%. So just think about that as that boy is charging. It's got momentum. That momentum can reverse. Very quickly so I'm gonna talk about how to properly manage a market. After the commercial break. All right so he had to get quick commercial break thanks so much listing says the dollars and cents radio show each and give us a call now or anytime at 303539. I fortune is your that's your 3539 fast forward to easier seeking to be right back. That I was since radio show that he can say men and that is why it happens they say during the commercial breaks my mom's sky cover. CC is already doric she works running to the show you're exercise and seasonal help forever and a house burned in park meadows there's a shout out to it. Says she's on her way to you that from the mall for a hopefully busy day ended tech she says. HI like there's anything I can pick up for area let me know who know him. Aides met offered Kathy a diet eat it is a M Intel to have you do you see mom he added an. I am so that no effect you know I tasted it does get I don't pay any thing I. Yeah. Urge my it and I learned my lesson it's. It's nor did back in time again it. You are listen. Because it is toys mom's birthday today. Born in 1948 it is my mom's birthday. Tuesday born 1948 everything they exe like that to be known that they anyways thank you create and then also Diane so Ryan's mom. Is December 7 in 1940. It did not mean I get it right to sorry. EA's Alex fantastic it's a day. It is I'm 1948 and get this thing is is out of the way cost of new homes 7700 bucks to be 700 dollars. You know it's too easy and Mickey and casting gas sixteen cents per gallon. Six teens teens and that's yet. And yet average income per year it was two when he now hired Terry two dozen 950 bucks per year while right. 200 bucks a month in. Our other people who shared birthday is in this year it was and Prince Charles. Oil figured yeah I study was older now. And Samuel L. Jackson. Because Logan loves him brilliant pay him out there and hung wow I thought he was younger. I would say an older. Really seventies. Yeah I would say like 7273. Ruling I was idea. Ozzy Osbourne. It's kind of working you say I don't on when she says John Ritter. Poor boy should be still lies I really liked him one of my favorite. Series but this series one of my favorite. Show TV shows growing up was three's company immune. Of course there. Of course these so three's company. Who was your favorite. Landlord. Because it was eight are fairly fresher mr. Farley mr. turley mr. Farley. The earlier Farley. It's fairly Niedermayer the other one mr. Rupert yep mister roper yeah I like him not like the other one mr. Don Knotts I'm not that. That I figured out and gave it back out here they've made a guy who's your favorite and blow girl Janis Ian Chrissie. Eve the original one. It's the original one. Suzanne Somers yes. Yeah highlights Joyce DeWitt Alex let her hair yeah that's too I'd Janet. Ya what Janet was permanent fixture just like no I know I'm just saying one of that are you like here that I did haren liked her yes. I like that like cares what his time here black eyes had to Christine hairstyle is on at the black hair and digress tell us. Seems since we're going through this. What was the name of Jack's best friend the ourselves me as. The black appeared to be always we're sure it was. And what was his knee you know ages oh I don't I aimed at a loss rate now they've really got to know that I. I can't believe they don't they used car salesman. And real. OK if you it gives a cost of thief 395420. Jack I can do that big exhorted CIA need for end. Kimberly so. Like to name it are they always went to so variously their eagle and seeing and Katie I'm not angry to be hey what. As I guys was an irony Larry Larry Larry is a Slaney. McCain and none other in his death or an all right died in 1948. Okay and when I guess winning kitty how hot 1813. Tag on gas. Move our TV. One million households owned TV in 1948. To steers earlier it was only 5000 households rent held booming if I between 1945 in 1948. Babe Ruth had his final fair rallying to the Angel Stadium in past weeks or months later when he Diana's. Babe Ruth yeah. Her entire from giving us the game. Now now. Yeah gas smoke and I think it is yeah his team is. Is lifestyle was not conducive to longevity in his stinging you obviously didn't see the show that John Goodman I think no identity. Yeah boy X I. Had no idea oh he just fell off ask Jerry quit aired no there's no he literally while he was playing he's. He lived that lifestyle. Who oh I know how I set show that sounds like a good show I you know use of paper yeah seeing a lot of minds themselves self induced health issues you cannot put babe. Interesting irate and so also velcro is invented. Where would be we we'd be without it or eight who did that I'd like to know it's like the post it notes they're trying very very rich now yes. Course was founded in the popular game which I love scrabble was released releasing 481948. Yep Newton. Some irate. Died that it was that takes too long so there's a lot of other RA that forget it and in it we were an industries company that was just fine by me yeah okay. Do you have your he's a black cracks anything. Yes so we've been talking about this this. Bull market in the balls are running. We think there's room left to run. But how do we properly manage how do you properly manage that bull market when I say manage. How we prepare for a win net. It takes a turn. Or win that. I'm for seeing. Beyond your control beyond your advisors control you vent. Happens. And affects the markets so this study really puts it in perspective. In you really he could you know I've been a part of it. Is the greed factor the greed factor. We watched the news we read you know we read the papers. And you know they they lead you to believe that everybody should be up 20% year to date up 25%. Here today. We want. We won it and we won it now right now we want these big fat returns. But black rock. At least a study. And it's amply titled. Impact of being the long term returns. So improving. Long term returns. By losing less. Tanked so there's data was compiled. Via black rock BN Morningstar. We ands. I do have to put out their disclaimer that says performance data quoted represents how. Course my. Pulling anti gang. He got right yeah. So the purpose of this study. Was to determine OK. So what ES. We did not. Capture. All of the S&P 500 gains. And at the same time we also did not capture. All of the S&P losses. So they did the same steady. Over that from 1926. Through 2016. Has major by the S&P 500. At an 88%. Capture rate so what that means is the years at the S&P whip up. You all lane. Received 80% of that gain pace of the S&P went up by 10% one year you were only going to receive eight point 8%. Conversely. The FBS and by 10%. Your portfolio would not go down by 10% only eight point eight so how does that seem 101000 dollar investment. Major out how does it finish over that same time period if we do not get all of the games. And we also minimize our losses that same 101000 dollar investment. At an 88% capturing. Produced better results. At seventy point six million so. M I easing our losses. It that we did not need to. All of the gains to outperform. Over that time period to the tune of an additional ten million dollars. In long term returns. So get in capturing 80% of the born bear markets over that long term produced batteries colts. It's less volatility. And the 100% capture. So let me just. It's it's died down as you always tell me I against a hurry and following I totally into and it. Took this is saying is. Optimal. Capture ratio. Will improve your overall returns. By way of losing less it's more important. As measured by your long term total return it is more important. Ten manage your losses. Then to receive every single penny of Viet site. So all of us to take away from this well it's real simple take away is. Tim big eight risk properly in your portfolio. And that will allow you to have maximize. Your long term return do not let the greed of the and finish your long term returns. How we mitigate risk. Well within your portfolio. It's pretty simple. It comes to investing. What it's in your risk tolerance. Allows you to get. Those nice gains it during a bull market. The understanding that we don't need to. After 20% growth. The same time we also don't need to participate. In ride at elevator down 20% when the market corrects. By 10% or 20%. You're going to have better success. Better when he's Waltz. By properly. Mitigating your downside risk. The biggest risk that I see folks are facing right now. Is not properly mitigating risk or what are you talking about I mean we pay attention you know my. Larry if things start to get wobbly hike I guess we'll make some changes that's not what I'm talking about. That's re active. Investing. Vs proactive investing proactive investing means you're prepared. Before. The storm before. The bear shows up in the market how we prepare. Understand what your risk tolerance is. Invest within that risks tolerance. Another risk that has. Seeped. Into what I call it the the bull market creep. Without proper rebalancing in your portfolio. Let's say that you started the year. With a 6040. But we would call a balanced portfolio 60% equities 40% sixteen comer bonds he think you know what that's a pretty healthy mix for me right. What what in the markets have. Our she did as they have all year long. What has happened in many portfolios is now that 6040. Because of the appreciation in the equity markets. Your portfolio could very well be 7030. Now. It very well be 8020 right now. What does that mean that simply means that your downside exposure. It isn't much greater today. With the same there. Investments that you loaned twelve months ago because you have it properly. Managed. In rebalance. Your portfolio. To stay within your risk tolerance very very important I cannot stress enough. The importance. Of that regular review. Good reasons not just this. The other reasons set jazz. Asset classes. Rise and fall in and out of favor so you know what may have to end the right investment for you. 1824. Months ago. What was a tail wind in your portfolio eighteen months ago could very well now BA head wind. Maybe that can be the types of bonds are fixed income that you're holding so. My point is is. B eight pro active. Investor. Not a real active investor. In the long term results you'll be glad you did. So here's the thing tune number one and it as it had to such bull market run up if you aren't seeing good returns. Boo well I mean or are fewer and just status quo maintaining you probably want to. See now he is changing up the gas. I here ask question exactly can I use my portfolio behaving the way it should why is it not why am I not seeing great great returns a number to look if you're just happy is clay and just because you don't you've got do you are seeing these good gains. Don't be surprised if when that ball hits along. Quickly. Some of those view a full robust gains can be quickly washed away. So it when no when not if what and then we have that. By prolonged pullback or correction because it's not a matter of this. It is a matter of when in I'm not saying that as a doomsday year I'm not it's a that's not the message. Just talking reality the reality is the markets do not move any straight line and if you are. Act near or in retirement your time horizon is not that every forty year old that plans on working for the next 25 or thirty years. You may be any different stage of the game so to speak. Being in the distribution phase of your life. Vs the accumulation stage and you were portfolios. Your investments your financial. Landscape. Needs to be managed accordingly. All right he gets you quick commercial break OK and if you oil would like review adds your portfolio and where your assets are and what you're actually doing teeth like that. Uncovered he denies he was caught 303. By denying site for 20633539. Ky 420 important note to you can always find us on the prison website. TV to say just out or you get onto our web stated each well stocked war that is teach. Well done OR GI RA to get it quick commercial breaks AT and you'll be right. Now we're back with the dollars and cents radio show with your favorite. Couple Troy and Lori from Hampshire will management and our next segment. Family matters. And here's Troy and Lauren. So that was Christopher ever. It's really matters that I am going to preface it this is money and money wise. We talk about this so what every two years associates products. I don't know what it is okay well it's gonna go go on just bear with me because there is a family matters to them but so couple weeks ago. One of our clients teary. Called and she had gotten he added letter from me basically an investigation company saying that she had her own money. And in different states its debts. That the CE treasurer was holding a Hamas are unclaimed money unclaimed money right so. And she is she. What's she's like is this a scam or whatever hand Trey said no let Lori handle this one so I went onto one of my favorite web sites which is Debbie Debbie job W dot miss seeing money dot com easy missing money dot com. You plugging your name you plug in your zip code tire iron that sorry now as it goes state to that you have lived in or that you do live in now. And it big ad pops into the state treasury like wherever that Indiana our word Colorado and what I've met web site is not a not a slow I made the it's not a scam. So easy to write a shirt for these people are not gamers these people it is their business to locate money good for them they take it kind of it they take 20% they said. It's she would never know such as into these investigators a private investigators it is there on low canning their. Dislocated. Well and they can help you file the paperwork and process to claim and then they keep me. Percentage and his so you know if they say hey. ID they Cingular the says according to it state records there's 80000 dollars unclaimed. Attached to your name would you like this to help with that. And if their cut his 20% once. They received them and receive the money they're kept would be 200 dollars you get your 800 dollars it's like found money yes you can also rate yourself without. These yes right and so are you facilitators Austin and we've done we've found a thousands of dollars her client I actually. Found what 3500. Almost 4003 you try one year or so and they was easy to collect. I eight win as a polite I aides think of Jenna come because right before working with you landed business. And so I ate. But in matters sure enough I hit 750 dollars back from the insurance company that we used to I used to write through and something else but anyway so it is a great. It's a great survey worth checking out called again missing at money dot com. Is it dot com or dot org he's dot com missing many Defcon. And here's what's funny this is the Stanley matters part of it so I'm walking with my neighbor love my neighbor attacked a better often and I said. Hey by the way you guys should get on and I can say I I do search other people and get our clients instead to silly Leno hey he could have money out there. And and so she she and I think you've got some money. Any out there and seen sick oh OK I'll go I'll go check it out well Ryan. Food Troy you're great friends less than he does T have to put in any seeing dance but he says security and Citi acted claim it so Ronald letter. It's a kid I took Cassie who actually talked Iran because he will believe Troy it's not you is it to truth if they get. Told you something he'd like yeah whatever but every until they do you he's got so much more clout I pulled these lesson. Ron is simply doing his due diligence because in today's day and age where you've got. These security breaches and identity theft and you know pawn lying. Stuff that is it and it is dangerous I mean you know they had that it was at the Experian. It was it was that they got to reach. And then you know a couple years ago targets. System was breached and they you know got all these people's you know charge card information. It is so that is prevalent and it puts us on high alert. But let me just say that not everything. Is. Working against you this is a government race sponsored. Run. Program and site that by the way. Just eight governments are required. They are required. To hold this found missing turned in money. For a certain period of tying. And once that tying pure I believe once that time period lapses the and it goes into the state general fund yeah okay. So it you know in an. They're required to hold and maintain these funds. Fruit. A certain number of years I don't know what that number is and it may vary from state to state I do not know them. But these are good this is a government obligation. For example let's say that you forget. That's if you had this old savings accounts in this old. You know you thought it was you know clothes or whatever and eventually after new activity debate is required to for example turn that money over in your name to this eight. Let's say they sing you something and you'd moved in it comes back we gonna return to sender. They're required to give that money to the state back you'd maybe be something eight. Let's say you changed insurance plans K. And there is a refund a premium that was owed TU and they could not locate you there in on the Miller's return you to move whatever. That is an example of monies that could be at the state guaranty fund Darrow millions and millions as ill as he signed but the the fund that this state has. And you know they had got to cut commercials on television walker Stapleton hey go to missing money. And help us return. What is your worst to you. So. It's a great it's great program it's not easy means you're in what he had to wait likes 46 weeks Steiner 35 under my caddie just add to true WR and it is just not a scam so I would suggest and when you're in it it's I mean it's it's a cool web site that it would add Denver might mine mother sounds. I'm missing money from her father and mean there is it is out there it's it's it's is that they're so look for your your friends and neighbors and stuff they're gonna have to do that be don't want to claim. There is a very solid cross there's a specific form. That. Comes from the states. And I can't remember. Everything that's on it but yeah it is the State's way of verifying your identity. Once they verify your identity. Then he goes through their processing system and the sin do you year. Your running yet save lives like give is your parents and they've passed to songs you can curb her right proof that year their heiress. Then that's what they need some Arab tell you it's accused submit that the claim online and then face the milieu document of what they're gonna need. So they try and make it easy easy as possible but obviously they're the it's protected or kissing me back. Safe. Sites and it is a safe processed by the end of the day it's now there's there is money that. Is unclaimed. May be from another family member or you know an insurance company or something. You know and say on that first set when you pay your name in there your for sale last name and dead. The state. They will tell you that site under a hundred or over a hundred so when I it was doing this. Cup after Terry's slip let me know that's all it tells you is that you bring in our heads then it once you would do that used to hit those this is the person that I am. And you go through the process then it and covers it tells you after she'd just submitted online how much it is. Seen a manager sit soaked I had to that we're over a 101 that was under a hundred might too there are overcame that has like 750 but my one that was under I entered was. One dollar and 48 cents from one in my old card that company does that you say yes. So it was so what happens is these these institutions these companies these banks these insurance companies etc. Eight. Are required in all wanna hold on to this I don't anymore and they're required. To return. What's rightfully you worst TU if they cannot locate you. There in next course of action. To. To cover their own selves is they're going to send it off to the state treasury. In you or name. For the benefit view in facts then that goes into that database in it's there until it's cleaned. And if the statue limitations expires then that money goes into the general and. So. Merry Christmas happy new. I prefer traffic if you find missing money and it's a good substantial amount I wanna I wanna know how to find missing money's coming adding on at who our trousers and there's a twenty dollar bill nary you know it's to. Whatever group trousers. Browsers sign yelled bogey what ever appropriate partner you made planning he key I'll give it a break. You're trousers trousers before they hope it's trousers were yeah yeah maybe campaign ants. There are big Bebo go a jazz name iron. Mary QD a hater so that was tired PSA group. Public service announced yet so PSE that was or PSA for today so and I its money to get on that Google search get on the Google. Missing money dot com it let us know if you end up with a cool story I found a thousand bucks act on 101000 dollar write down whatever do you find a 100000 or more are we would like in a divot or you don't. A please car on the says 3035395. Parties. Right so let's talk about him. My only intact we only have 25 minutes. OK reside in hasn't housekeeping things to do by. Now financially yes OK yes accidents and safe and a double somebody simple. And some of them. You know not so much what kind of housekeeping like a bunch just let let me where you're in LA where when he three here so. Yes year Ender yes ear and their egos aims to do it now. Okay yes things he should do now. Number one Denton talent and this happens people have you taking your R&D this year. Just talk about that two weeks ago you half to take you were required minimum distribution. By December 31. You are required that's why it's called a required. Minimum distribution. If you turned seventy and a half. This year. So if you turned age seventy. In the first half of the year. We're in the last half of 2016. In you have a retirement account take pretax account. I ENI RAE 401K it's after you get the picture not a rock. You are required to take eight. That's in the distribution if you miss it it is a massive penalty it's a fifty still have to pay tax you still have to take it out. And yet to pay 50% penalty so don't miss them men and if you are wondering. Yeah I am seventeen have or haven't received a notice in the mail let me tell you what. Uncles AM does not care that you did not received that notification from. The institution that is the custodians. Your retirement account don't care that's an excuse. Tell you and your tax repair will also tell you is you responsibility. To figure out how much. And then request it in take it. It's your responsibility. So what do not miss that distribution. If you are wondering. You do need to sit down with tier financial professional make the call and say hey give advice satisfied my required distribution. Have I not. Maybe you've taken some out this year. But it fell short of that required minimum. You have to take the difference. Before December 31 you can't realize it on January 3 and send it to me now. Too late well not really you cannot take the first time you cannot take it between April 1 of the following year how ever you still gonna have to test. If he's your first one okay you can not to take it on as it refers to started to take some of his first year in which you are required to take the. First time in your life required minimum distribution. The government will they'll allow you. To not take it that first year. Here's the gotcha. You will have to take it so for example if 2017. Is the year in which you turn sending half and you know what you're required distributions. You can defer it until 2018. But beware here's the catch. You do have to take it in 2018. For this year 2000 seventeens in 2018. Owing guess what you also have to take next year's next year or so. In essence you will be taking. The equivalent of two required distributions in the same taxi because next year. You cannot defer it for the following year from only one time so you may as well take it. Again to talk your tax repair. If they think that there are some good reason that you should defer maybe do that the deer due diligence and don't miss taking. Yeah I would suggest you I would say it's set it up on an adamant on a manic or systematic. On the flip side. And I knew that one of our clients longtime client choice he came long before I did bad. He. Did all the finances. Eight and then he is kind of. Lowell who lost the is that's a memory loss of heat it all ended at dot and spilling over onto his wife. Wonderful life she never had to take care of anything like this so I didn't trying to add. I was trying to and get a hold of her. To letter no again annually it was coming out the beginning of black like will November so last month. And done what are. Connections as crass we'd never spoke and and finally did get older it was a it was a good amount of money and then she said I am so glad you called I held on to the check for a few days didn't know what it was for. Her husband didn't notice for. She hadn't got an A Nina had gone into I wanted to talk torched. And that she said I I'd been holding onto it I just finally this I didn't into the bank because it you know and us to do with it it's so but at least she got it. At least she aged she received did a good thing she putted into the pain because there wasn't a taxable. But problem so that was because it that was an out and demand that was all fine. Item number one housekeeping item number 126. Yes so in which we should wrap this list does actually boring rates okay. It's going to be 2018 by the time we get through this list we never make it to the list number two a Troy you talk about the sob but I did Tebow does don't give it some people do. Manager with jobs from your taxable tax deferred. Or non taxable accounts so figure out where you're taking money from so. Other words. We knew our. Reach in retirement in you are. Taking it. Income from your investments. That needs to be properly managed. Because not all income. Not all of. You were income. Is taxed the same rock fire rays are different from our traditional IRAs and 41 case it's set track. So now really is the time of the year. That you really need. To have your income plan for 2018. In place so you transitioned smoothly into 2018. And you create. The income necessary. In the most tax efficient way. Why pay extra. In taxation. If they can be avoided. If you were strategy. Can be implemented that is tax friendly air. It can make your nest egg lasts longer. It can. Prevent you from having to write big checks to Uncle Sam come tax time so. You really do need to manager income plan as it relates to taxes that are going now's the time of the year he should be having these conversations. What if you work. Financial professional in your tax professional. And you do settle lots and you do that so that's it we shudder I'm going in this time of the year is being pro active. And what he did in that that ripple effect to that that domino effect of Troy. 100000 dollars of your IRA. Ted pay for something and it's not a 100000 dollars next Yee it was a 25000 dollar. Taxed on the 100000 dollars CJ get another train 5000 and then the following ye dedicated taxes on the 25 doesn't it just goes down some quality fast so exe process. Early manage end and not just. That it taking income from the right places. But properly managing your with holding throughout the year. So appeared you know really if you got Social Security may be pension. And that you know. Beyond that feeling the income GAAP requires 2000 dollars a month from your investments premier nest egg. How much should you be withholding. From that income. So there's no surprise come tax time next year so it's not just about taking the most tax sufficient income. We're taking incoming the most tax efficient way but it's also properly managing the withholding along the way. Okay UNC quick commercial break yeah. OK I eight he was caught three your 35395420. That through 353954. To zero in China and making quick commercial break and he grants to states. Little or no cost steel even if you've already been to treatment give us a call there's no need to lead drugs and alcohol ruin your life take the first step now called the addiction rehab specialist at 180417774. All that's 18041777401804177740. Okay I ain't poor in that last when he caught the leg. The final stretch to stretch it over in the final stretch. The show so. And talking about the house cleaning to do by the end of the year to you don't have enough on your to do list with all that buying instead of holiday buying plan is just pile more on frighten me here welcomed. Ask jeeves and missing money dot com then he can work on these housecleaning tossing until okay this one year big on joy. At the end of the year review it review your retirement income plan in investment strategies. Again I go back to I don't wanna sound like a broken record it by its. As it. I am gonna sound like a broken with the child it's about in pro active verses reactive in your investment strategy so this really is the time of the year. That's. The preparation that you and your advisor. Put in now. Is going to. You want and keep you on the right track for the upcoming. Year. And things change from year to year. Are your income needs. Going to be the Seaman 2018 is they were now you know a big change that many folks is a transition into retirement. Is their sources of income change. Maybe now you really do need to sit down and put your budget tip paper how much do you really need each and every month in the end. Implement that strategy. To properly field add income gap but it's not always the same from year to year. Cost of living. Changes. Did you lose a spouse this year. Well if you did then maybe you're going from two Social Security checks to want Social Security detector all of these different there's many many factors that come into play. That as white working with the right investment advisor. IE a fiduciary. That it is held to the standard of keeping in putting your best interests before their own net. You should not accept anything less than that but this is the time of the year. Where you really should carve out piece single hour of your time. And make the appointment can sit down and if you don't have an investment advisor I can promise you this. You wanna give you and your family in your future the best Christmas gift. Connect with the right investment. Advisor. Let me debunk a very popular myth well that's their only for the rich. They're for the high net worth individuals that have a million dollars or ten million dollars. That is not the case you worked very hard for whatever your next stage is. Would ever represents there's always gonna keep the folks that have me larger portfolio in folks that have a smaller portfolio. That doesn't matter. It doesn't matter what matters is you worked very hard for what ever. You have in your nest egg right now in you should manage it accordingly. You should hire an investment advisor. To work well with you. To do the ongoing planning. That's required that's necessary quite changes. Your plan needs to be fluid in nature. To facilitate those changes in life when you lose he spouse. Wind. You transition friend you're accumulation years into your distribution. Phase where years. That takes a strategy change within your overall financial plan. Hope this is not a planned remember that hope is not a plan so when you connect with gay and investment advisor. Not a stockbroker for exam in investment advisory fiduciary. You will receive the advice. You need when you need it. That will get you on the right track of being. Be proactive. Investor a proactive retiree. Vs a re active it's no fun react Rick reactive investing is very dangerous and cost. And so again this is the time of the year if you wanna give you and your loved ones and your family the best gift. Sit down and invest in power of your time with an investment advisor. Because that advice is going to look. Quite possibly much different. In the advice that you received media can now. Take a breath. Good job irate I didn't know which number are we were on that point and shoot. You know. I go out. And out reviewing your retirement income planning your belt my rash that was all we got different break. As we started just came at a break two minutes ago and three minutes ago that. At least some slack 335 date and fast forward to 0335295420. Candidate decide when he near that is not in here but not like you're talking and it took a bird rock and thought this because again we just went to funeral her fingernails. Don't want it not at all. And this is something we don't talk about often here. Like insurance. You know let me tell yet it was this that our friends you casts. Over Thanksgiving. And 56 years old and expect 56 years old had a massive heart attack in nicely. Thank god. And yeah way. Staying guide is something that we don't talk about often that thank god for life insurance and I want say it's something that you have considered or maybe your children have considered you probably consider for d.s different reasons number one. It's it's taxed text the text free at death. But if he if he needed to PF what what your RI RA we might have to pay in taxes it's a good. Good tax solution for some people it's also great and a termite Poland's universal if there's so much. But it's not that expensive it's it is something if you have a loved one. I am imploring you to consider this I know that our friend Carol would not be doing. Well. And had her husband not I had like insurance and we've seen it so many times and is something that we talk about and that's not a lot because you think about that we year. Alike you think about investing this is what I need from my retirement nest egg we'll probably be retiring for forever. That he had that life insurer and T it's not like you're kicking the bucket if you get right into your parents he's doing it are usually. It's not for you here is did dangerous components. And about life insurance. It's one of those things it's easy to put off its really easy to you don't need it until you need it right up. And many times when you realize. You needed it's. You may not qualify for you don't give it life insurance after you get sick. After you're diagnosed with cancer after you have. I get a massive heart attack were are diagnosed with. Heart disease. You get it wind. You're thinking about it. You know you can qualify for it but here's the thing. I go back to the investment advisor getting receiving asking for and receiving fiduciary advice. Life insurance is part of that advice moon. It tight do you need. I'd sit down and I've I've done analysis with families and said. Life insurance is not a need it's not something that you need to explore. And I've also said Diana had conversations with folks with with individuals with families it said it really. Is the missing link in your overall plan itself. It again it's not a one size fits all everybody knees around today and buy a million dollars worth of life insurance that is not the message the messages is to know. That you have what you need for your situation for your family. We make it easy and mean EE can go on with number I wanna know how much in beating get a million Dow life insurance policy for a fight and I kind of life insurance should I be considering right or I only have this much expendable cash to pay each year. So I mean we can ride it bits of bison so many different it you don't have to ask the questions we know the questions to ask. To get kind of the ball rolling I'm just saying maybe you don't even do anything with Intel that next year. But it's. I am sure you keep this time it is imperative that nobody that have a diet over Thanksgiving but he did so 303539. 542 easier that through 3539 but for 20 that was totally not. In here but you know white guy that's also. I had mentioned that if you wanna do something. Give a nice and very important gift to your family. May wind up an investment advisor IC the same thing when it comes to this. You really do need to explore. In understand what you were needs are. As it pertains to life insurance and if your current plan meets those specific needs. I've met with so many families and individuals. That have responded with I didn't really think about. That can win because there are specific questions that I will ask. In order to determine. What those specific needs are for that person or or that family. What's important to them. What are your thoughts on leaving a legacy is that. Maybe a priority to you or not. What are your health concerns. Oh there's a big age gap between you and your spouse all of these factors come into place so it's a very customized approach it's not a one size fits all. But the real gift. Is letting me. Your loved ones know how much you care. By exploring. That these financial needs are being met. Because if you don't happen. You don't have it. And you don't need it to you need it. And by the time you needed it's too late to get it so. It do it for your loved ones. Yes good time to do it never you never like to think of you about dying that. But you know he may as well access. What else did intend ripoff that Dan didn't pen and think about it may be life insurance he Dari had it irate I'm gonna give up that phone number 03. 5395420. Industry is 353954. 20 Tulsa and accommodates you Friday as well you can also again if you can't find just anywhere we are on the cruise and web site. And our number our our website address and such like that so if all is lost go there. Okay. I well one or two left meeting at a trade wanna talk about reducing taxes on in deafening gain. If so this really is the time of the year there are certain things that there really is not a true deadline for. But there are others that there are. Very specific deadlines. I eight. Required minimum distributions. Contributions things like that. This is the time of the year. In which you should be having that review portfolio review with your investment advisor. The end. You were tax advisor. And of course. We do it. Together in tandem our tax advisor what if myself the investment advisor. But this is the time of the year when you really should review. Your investments. Your portfolio. To see if there are. Tax opportunities. Debt need to be harvested and taken advantage of before the end of the year. Once the calendar turns it is too late. And this is a win really that tax re view needs to be done. Yeah this investment is you know has performed this just because the overall market it is a doing well that doesn't mean that every single one of your investments. On its own is doing well. In this may be the time of the year to take advantage. Yeah maybe now it's time to rebalance oh and in doing so. Let's. Harvested. Some of these tax opportunities. By a potentially. A moving out of certain securities or investments and and others but. Because tax your seventeen is behind us at that point so this really. Important. This time of the year to sit down have that. All important review and see if there are. Opportunities with in your portfolio. Tax wise that need to be taken advantage of before the end of the year. Very very important. Irate as well I don't even know we have time for another one I. Keep looking at the time OK I you know I'm not even you can't comment on this but if you're considering. Roll over error a Roth conversion I know that some of them are a lot of our clients are thinking of that. The only got a few weeks to do it. So but I know that's on a lot of people's minds you if you haven't any questions on that I'm just gonna say give tripod because of this year and that's kinda have to get on the horn who ran mr. talk note you don't have time. We might continue to sit there's a lot more but that's fine we may continue this over the next couple weeks. As we approach the holiday season. We you know we also talked I guess we do have time for this let me just throw this in we talked about. You know rebalancing mitigating risk. I'd during this bull markets mitigating risk so that financial. Elevator that you have. Happily gleefully ridden up. Over the course of the year you don't take it all the way back down to the lobby by not mitigating your risk properly. And win that as that relates to your 401K. Plans. That is probably. The most over looked. Type of investment. That there is out there because most folks. Bart having their 401K plans while they're working actively improperly managed that's one of the things that we'd do very regularly and it's very important. To rebalance that for a one K to properly manage the risk in your 401K it's easy to do is say yeah well it's going in the right direction and you know I'm contributing and getting some matching bet. I urge you. To sit down with in investment advisor showed them your 401K. And maybe you should you now make some adjustments. Before the end of the year to take advantage of both the upside and conversely tend manage your risk on the downside. I even listen to the dollars and cents radio show hey thanks so much for tuning in this Sunday morning have a CN classic week have fantastic weekend to enjoy this. Wonder from Colorado sunshine you can give us a call at any time 303539. 5420. That through 35395420. Have a great week.
READ MOREREAD LESS