TPOR #52 Transcript : Audio automatically transcribed by Sonix
TPOR #52 Transcript : this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.
Producer:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs, and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.
Producer:
Welcome to take point on retirement with your host, Erick Arnett. Erick is a fiduciary and licensed financial advisor who always places your needs first. The experienced team at Tech Point Wealth Management takes pride in knowing they've helped so many pursue the financial future of their dreams. And they can help you, too. And now let's start the show. Here's Erick Arnett.
Executive Producer Sam Davis:
And welcome to Take Point on retirement. I'm Sam Davis, joined by Erick Arnett and Randy Woodruff's over there in Tampa, Florida, as well. How are you gentlemen doing this morning?
Erick Arnett:
Hey, good morning, Sam.
Randy Woodruff:
Good morning.
Executive Producer Sam Davis:
Sam.
Randy Woodruff:
Happy weekend. Happy Memorial Day weekend.
Executive Producer Sam Davis:
Yeah, we got a long holiday weekend. Everybody out there on the nature coast and then in the Tampa Bay area, hopefully enjoying a holiday weekend with family and friends. We definitely want to acknowledge memorial day weekend off the jump here. Eric, we know that take point. Wealth management, it's veteran owned business. We know your background and we know how much you care about veterans and first responders. So your thoughts as we enter Memorial Day weekend 2022?
Erick Arnett:
Yeah, absolutely. I mean, it's great to get together with family and picnic and barbecue and have a good time. And and that's the reason that our military, our first responders have sacrificed so much over the years, some from the very beginning of our country. Right. So let's keep in mind why we're here and why we're able to enjoy this lovely weekend and take point. Wealth management is always near and has first responders and military near and dear to their heart. There's also six years active duty combat disabled veteran myself and so a lot of a lot of heroes that never came home. And so. My shout goes out to all of their families and loved ones. And let's just kind of pause and, and, and think about them a bit and remember exactly why we're here and and how we're here and, and be blessed that we're in such an awesome country. You know, we really are.
Executive Producer Sam Davis:
Absolutely. And that kind of whole feeling and that passion goes back to why you named your company Take Point Wealth Management, right?
Erick Arnett:
Yeah. So we struggled for a long time with naming the company or and I and you know, it's a local branding name and I wanted it to, you know, I mean, we came up with 100 different names and I was laying in bed and trying to think of something that I could tie my military service in and as well as speak to first responders and veterans through a marketing name. So I was sitting there and I was just it just kind of came to me as a financial advisor, as a retirement planner, as a financial planner for clients, no matter where they are in life, whether they're in the beginning, whether they're in the middle or even close to retirement and retirement more than ever today, it's so, so difficult and so confusing out there for folks. They don't know where to turn, don't know who to trust, and may or may not even have a plan in place. And so when we were in the military as a soldier, typically when you went out on a mission, had to stand up and and take the lead or take point. We called it, hey, man, you got to take point. And so or you got to get up there on the observation, we call it the the OP observation point.
Erick Arnett:
You get up there and sit up there and watch all night over us while we sleep. I remember this one time. It was kind of crazy. When I was in Bosnia we got this mission and it was kind of a late night mission and we were woke up and alerted and we had to jump on our Humvees and head out and we get there. And basically our mission was to sit up on a hill and watch over this village and watch over the Special Forces guys who are trying to get some sleep, the Delta Force guys in their apartments. So we were taking point, taking lead, observing, protecting them. And I just kind of thought it was a cool analogy. We need to step up as advisors today and take point and lead our retirees to and through retirement. That's kind of how it all came together. But I wanted to honor the military. I wanted to honor my service, as well as all my fellow comrades and soldier buddies out there and our first responders. So that's why that's why we named it Take Point.
Executive Producer Sam Davis:
Yeah, it's a fantastic name. You know, with all the important things in life, health, wealth, family matters, it's important to have somebody who can stand up and be that leader, whether it's your doctor or your financial advisor or, you know, the man of the house, that's that's making sure the family is taken care of and provided for or for those single moms out there where it's the woman of the house that's making all the decisions. You know, you need to have someone to take point. And we're going to talk about the importance of having a plan today. But we've also got a special treat on the show today. Nancy Lopez is going to join the show, the Hall of Famer. And we spoke to her for almost 15 minutes. And we're going to play that at the bottom of the hour, off the top of a segment to we talked to her just a few days ago. And Eric, you want to tease the folks a little bit and tell them what they're going to expect?
Erick Arnett:
Yeah, just super cool, super fun. We had an opportunity to to have Nancy on the show, and so we jumped on it. And she's just a legend. Just a super great, super wonderful woman still out there, active in her retirement, living an active retirement, but also had some really great financial advice and things that she adhered to throughout her career and even now into retirement. She has a very active working retirement and just truly still enjoying everything she is doing, still out there actively with the LPGA, promoting that and helping on that tour. And she's just a great, great lady, superwoman, and we're so blessed to have her on the show. And and I think it'll be exciting to to listen to her and kind of her her perspectives for sure.
Executive Producer Sam Davis:
Absolutely. And so stay tuned for Nancy Lopez and her interview with Erick Arnett at the bottom of the hour. But until then, Eric, I know that you and Randy have been getting a lot of calls regarding real estate. You know, Florida is up at the top of the list of really real estate values have been skyrocketing across the whole country. But Florida is one of those places so desirable to live because of the weather, all of the amenities, the nature, things to do, prices are going up. So what kind of questions are you getting, Eric, and what sort of guidance can you offer the listeners?
Erick Arnett:
Yeah. So we're getting a lot of calls, a lot of emails, a lot of inquiries, not only from our existing clients, but also from folks out there listening to the show and the podcast. And people are have the ability to go right to our website, take www.TakePointonRetirement.com, which is our podcast site or then go to our website, www.TakePointWealth.com. You can just sit there and Google it right on your phone. It'll pop up and you can click on a chat session there and request 2030 minute chat with us through our calendar. And we're happy to get on the phone with you and chit chat, but we're beginning a lot of that. And, you know, it's it's a very common question. It's coming to the table. I've got this massive amount of accumulation in my investment properties, not only my primary home, which we're not ever going to discuss here, but my investment properties, you know, have tripled, have doubled. I mean, I was talking to a guy the other day, he paid 55,000 for an investment condo and it's worth like 250 now. So that's four times, you know. So we've seen a massive amount of growth here in Florida and even probably outpacing the national averages. I'm not going to get into all the different dynamics as to why we think that the prices move so rapidly here. But the question that folks are are asking themselves and it's such a difficult one to answer, really, and is do I sell here and do I pay the capital gains and do I reinvest in something else? And, you know, I just there's every person and every individual is different.
Erick Arnett:
So let me stress that first and foremost. But I just want to try to hit this from a broad perspective, and we love to work through that with you. So give us a call or reach out to us and we'll actually devise a plan for you and see if it makes sense for you to take action at this point. But bottom line is, if you've had this incredible amount of appreciation in growth in any asset class, I don't care what it is. You know, you really got to start thinking to yourself, does it make sense to take profit here? And I think it does. I'm kind of making a market call here. You know, prices may continue to rise in real estate, but, you know, you can't look a gift horse in the mouth. You've had a massive appreciation, real estate, capital gains taxes at a historically all time low. And I'm going to let the tax man and real estate man chime in here in a second. But, you know, you can sell your property, pay taxes, and then you can reinvest that now in markets. When I say the stock market, equity markets, value markets, growth markets, commodity markets, you can build a diversified portfolio, a really good, sound diversified portfolio and take advantage of stock market prices that are that are really getting beat up here.
Erick Arnett:
The average stock, 60 to 70% of the stocks on the Nasdaq, over 60, 70% of stocks on the S&P 500 are down 20, 30% or more. So this is offering a great opportunity to what do we always talk about? I mean, it's just basic, you know, it's not rocket science. It's, you know, you want to sell high and buy low and you're never going to be able to time it perfectly. So, you know, even if you sold your real estate and, you know, it went up another 10% next year, well, don't kick yourself because think about what you just already you just made three or 400%. So, you know, let's not cry over spilled milk. But, you know, but we have to sit and you have to sit down with us. The experts. Randy Woodruff is a CPA. He's here with us now. He's a tax advisor. He's also a licensed real estate agent. He owns manages corporate properties, residential properties. He builds homes. So I'm going to let him chime in here and give his opinion. But, you know, I strongly feel that if you have purchased these properties as an investment property, you know, it's time, it's time to sell. And, you know, there's a lot of reasons why. And I don't want to go into all of the details, but there's some signs that are picking up.
Erick Arnett:
And I have some concerns, you know, about mass purchases by private equity companies, hedge funds and all these things. And they're starting to put their those properties on the market. So we might see that market starting to get flooded with inventory. I don't know. But, you know, I think it's a good time to sow and look at readjusting, rebalancing, because even if you had a regular portfolio with me in one part of the portfolio, just appreciated by two, three, 400, we're going to sell that and rebalance that and go into asset classes that aren't that appreciated. And so it's about rebalancing and it's about having a plan. The difference is if you have these properties and they're producing income for you and you need the income to live on, and that was kind of your plan from the beginning. You're an income shopper or you're building income for retirement with these properties. That's a little bit different question to answer, and we'd love to go into that with you as well. You know, you know, everybody has to have a plan. And if you don't have a plan, you just kind of winging it. Then let's get in and really put together a concrete plan. And with that being said, I just kind of want to. Randy, what are some of your opinions on this?
Randy Woodruff:
You said something about three or 4 minutes ago as you were speaking that every person situation is different and that is just so true. And to your point, we try to build a customized plan for your retirement plan, an investment plan for you that that fits where you're at in your life. And so with the real estate market right now, we've seen I must speak about the Greater Tampa Bay area of Florida. You know, we've seen a tremendous increase in value compared to most of the rest of the country, about a big influx of residents, in my opinion, just driving around, I think there's quite a few people living here that aren't really officially accounted for, meaning you're living with family, they're living with friends until they can find a place to buy. It's we've all heard stories of a family, a friend, a colleague. They put their house on the market and within 24 to 48 hours, they've got 20, 30, 40, 50 offers. A lot of these offers are great offers, you know, huge, huge down payments, all cash offers at or above asking price. And that's really had an impact on the overall market here. And it hasn't been just, you know, the last year or two. We really, you know, Tampa coming out of the Great Recession, probably starting in 14, 15, really, really started to take off in terms of real estate values and just economic growth here in the area. So and here again, economic growth has impacted the real estate market here for sure. We're we're you drive down in north Tampa, other areas of the Tampa Bay area, just construction going on.
Randy Woodruff:
Wesley Chapel area is just booming and and so all that's having an impact on real estate prices. So so the question is do I sell? Should I should I sell? Is now the time to get out? And and whether you're in the real estate market, whether you're in the financial markets and we all talk about don't try and time the market put a good plan together and execute that plan and don't try to sell it the super, super high or get in at the bottom. Just look at the trends, look at what's going on around you and not just going on around you today, but also think about what's happening in the future. What are the signs today? Indicate what we have, what may be happening in the future. And so what we're hearing is, is that over time here in Florida, real estate prices are going to begin to cool off. I mean, they're going to going to we're going to see a reduction in prices. But these these significant increases, year over year increases, are going to begin to taper off. We're seeing interest rates start to rise. I've talked to some of my builder friends that are in the construction industry and they are seeing a reduced amount of traffic in their model centers. Does it mean that here again, does it mean that things are falling off? We're also going into the summer season, which now kids are out of school and we're on vacation. So don't don't, don't just look at one factor of, hey, model traffic is going down. Things are going the wrong way. No, we're in in the summer vacation season.
Erick Arnett:
I saw a headline yesterday. It said, Home sales have retracted by 17%, but that doesn't necessarily mean that values have changed. But but the sales of homes has slowed down a bit.
Randy Woodruff:
I saw that article, too. And to your point, yes, it does that mean that values have gone now just means new home sales have decline. That's just for one month, as we all know. Whether it be in the real estate market or the financial markets, one month doesn't make a trend. But it's worth noting and here again, I think part of that has to do with the summer getting into summer, kids out of school, babies on vacation. I talked to a couple of builder friends and they mentioned over the last couple of years they've seen the same trend and we get into the fall and the center is full again. So but here, I think overall here in the Tampa Bay area, we have seen a huge increase in values over the last five or seven years, especially the last two years. And if you are overweighted in real estate in your overall portfolio, that may be a good time to think about selling off some of those assets, depending on what they are. I've talked to clients. Some clients are getting up there in years and no longer want to manage rental or real estate run or real estate. If you got a great tenant, it's great. If you get a bad tenant, it can be really expensive to get them out. The loss of income in and all the repairs you have to do so. So sometimes as we age, we need to be thinking about the kinds of assets that we have and are we able to manage them. And that's what we're talking to clients about quite a bit.
Erick Arnett:
When you're doing a lot of tax returns and you work with a lot of clients that own real estate as an investment and or sources of income for them in retirement. Not to put you on the spot and just in general numbers. But, you know, typically, what is what would you consider a good net net? You know, in other words, I have a 500,000 property that's valued at 500,000, you know, is 6% net net. After all expenses, you pay your taxes every year, your your you know, what do you what do you what do you see as some of the averages? Because you work with a lot of folks. You know, what's what's what's that sweet spot like? What are people really kind of netting after all of that?
Randy Woodruff:
Great question. Yeah, it's I see it kind of all over the board. Also, it depends upon the type of property that they have. You know, we've seen residential rents just climb rapidly over the last two or three years. And so the nets can be, you know, and say net net, triple net after after appreciate not depreciation, but after taxes, after insurance, you know, we're seeing in excess of 10% consistently and even sometimes greater than that depending upon the property. Sometimes properties are in a very desirable location. And so maybe someone bought that property 20 or 30 years ago and it's still in a zero location. And so their their, their cost and the property, their basis and the property is very, very low. So the amount of money they're making on their investment is significant. What we have seen over the last two or three years is with commercial properties, especially in high traffic areas, high retail areas, the cap rate or capitalization rates have gone down significantly. So not to get too deep in the weeds, but when cap rates go down, that means the cost of the property goes up. And so what's happening is the these big hedge funds, these big pension funds are looking for safety, meaning they're looking for some place to park their money. So they had good, consistent returns. As we've talked on this show time and time again, we've been talking about people talking to people about getting out of bond portfolio, some getting a shift there.
Randy Woodruff:
They're those they want that good, consistent, safe, guaranteed income into other asset classes. And some of these pension funds have done just that. They're looking into real estate, good pieces of commercial real estate with credit, national credit tenants that provide a good, steady source of cash that has driven down the cap rates, which is driven up the cost of commercial real estate. Now that we're seeing interest rates start to climb, where we're hearing the cap rates are going to start going up, which means the price of commercial real estate could be going down or should be going down. So all of these things, even though we think of real estate as a market or the or the S&P or the Nasdaq as a market, all these markets, different markets all still interact together. And that's why it's good to talk to professionals like Erick and I who understand these different markets and how they all interact together and how when something's happening in one market, what impact is it going to have in another market? And then we can help balance your portfolios so you can not experience these big ups and downs or whipsaw effects in your portfolio and your income streams.
Erick Arnett:
So am I right in saying that the listeners out there, if you're questioning what to do, you have to. This is how I think about it in my mind. I don't know. I don't know if it's right or not. But you're either an income real estate owner and your own net for income, or you're a investor who is looking to make profit or total return. Right. Is that are your investors or your clients? Do they approach it that way or. I kind of like to put things in a box. It's like you're either a flipper or you're buying stuff to produce income for you in retirement.
Randy Woodruff:
That's a great question. I think that would be two great categories to classify real estate investors or owners in, as some people are looking for, like you say, income that good, steady income stream that they can depend upon and live on a monthly basis. Other people have excess cash, excess capacity where they they don't need the capital they have to live on. So they may be buying raw land and basically sitting on it until the market comes to them or they have a developer comes along that wants to buy them out or they may develop it themselves and then sell it. So there's, there's, but those are two great categories that that you just defined. And I think most people do fall into one of those some folks fall into both. They do a little bit of both. But for the most part, people are typically in one or the other.
Erick Arnett:
And he talked to us a little bit about capital gains, because I think that has to be part of the discussion. We we don't have a crystal ball, but we have to do our best to try to look forward and do some forecasting. What are your thoughts and what are your hearing on the capital gains tax rates and how does that affect folks and how may it affect them in the future?
Randy Woodruff:
That's a good question. And as you mentioned, we have no crystal ball, but we can look back at history and not that history is an indicator where we're going to go in the future. But it could be a good give us some good lessons and some good indication. And so. Capital gains have been around since around 1940, the capital gains tax and we're at a point in time right now where this is the second lowest rate it's been in history. And so as I as I've talked to clients that are selling real estate, some of you may have heard the option to do a 1031 exchange or a tax free exchange into another piece of like kind real estate. I've had some of my clients ask me about should they do a 1031? And the question is, as we always say, it depends when you take a look at your particular situation and see if that's the right, say, strategy for you. But we've been with capital gains being so low. I'm not implying we're not recommending doing a tax free exchange or a 1031 exchange, but we are looking strongly as we talk to clients about a should just go ahead and pay the tax. Now, since it's at a really low rate historically, pay the tax now start out with a fresh, clean basis for the property that you're going to be buying.
Randy Woodruff:
And then that way don't have this kicking the can down the road problem of okay I was supposed to pay 50, 100, 200, 300,000 in capital gains taxes. I'm just kicking the can down the road. And then potentially as you're kicking the can down the road, interest capital gains rates could be much higher in the future. There are. This is just my opinion. But this opinion is shared by myself and a lot of other professionals out there that capital gains rates are going to go back up in the future. And so that does the if you did a 1031 exchange or a tax free exchange or like an exchange or all the same thing, you did that now you've kicked the can down the road into a period of time where tax rates are going to be much higher and that just cost you more money in taxes. So again, as Erick said, we have no crystal ball, but we can look at look at the future and look at the past. And that usually gives us a good idea where we could potentially be heading in the future.
Erick Arnett:
Yeah, I know there's just been some headlines in the past and President Biden proposed in the American Families Plan. It's buried in there. He has a proposal in there to increase long term capital gains tax rates for households with income exceeding 1 million to 39.6. So 40%. We've got to make sure you have the 0.6 in there so it doesn't seem as bad. It's 40%, folks, you know, from the current 20% tax rate. So that's a massive increase in capital gains. And I don't think that things change too drastically for folks making under a million, but that's still probably up for negotiation. So I think that there's definitely going to be a need to increase taxes across the board. We talk about it on the show all the time in the future.
Randy Woodruff:
And typically here again, you have politicians that that make these rules. So what makes sense isn't always what happens. But quite often if they get if they start out with, as Erick mentioned, you know, for households with income over $1,000,000, and once they've got that in place, the ability to to lower the levels down to households of lower income incomes, triggering that higher threshold could happen as well. So, you know, we said on the show time and time again, tax rates are on. And so whether it be ordinary income tax rates, capital gains tax rates, I think we all are tired of hearing about how much money we owe as a country or how high our our national debt is and continuing to rise all the time. So if you just take a step back and apply, you look at our own finances. If we continually borrow more money than we're taking in as individuals, eventually people are going to stop lending to us and we're not going to be able to pay our bills. And and so we seem to be on the same path as a country. So we've got to, one, reduce spending to probably have to raise taxes as well. And I know nobody wants to hear that, but that's probably the unfortunate end result, is that taxes are going to going to be going up. So if you're thinking about selling some real estate, we're getting back to the real estate type thing about selling some real estate, especially here in the Greater Tampa Bay area. As Erick mentioned, you've seen some significant perhaps multiple times in terms of the increase in your current value based on what you bought it at. Now may be a great time to sell, especially if you have several pieces of real estate diversify. We can talk to you about some other products that we have that definitely offer a great income stream, protect your principal, and can give you that safety that you've enjoyed in real estate as well.
Erick Arnett:
The way I look at it, correct me if I'm wrong, it's like, okay, if you bought something for 100 grand and now you can sell it for 400, that's 300,000 in profit. You pay your capital gains tax of 15, 20%. So, you know, you're going to bring home 250, 260 grand, whatever. After everything, you know, can you reinvest that money into something that is. Going to yield you the same net net or income on a monthly or annual basis. And so I know real estate can get complicated repairs. You know, tenants, bad tenants can cost you a lot of money. You know, increases in insurance. Insurance rates are going up, up, up in Florida. Real estate taxes are going going to be going way up as well. So you do have all those rising costs and yeah, you can move rents with that. But at some point you get rents to the point where it's difficult for to keep it occupied as well. So I think that's kind of the analysis that folks need to call in and sit down with us and we can go over it even to a zoom meeting over the phone or whatever. And let's start kind of working through that cost analysis for you.
Executive Producer Sam Davis:
All right. So if you want to reach out to Eric, Randy and the whole team over there at Take Point Wealth Management, you can give them a call. (352) 616-0511. Again, the phone number is (352) 616-0511. Or you can simply go online to www.TakePointWealth.com. That's www.TakePointWealth.com schedule a quick 15 minute chat with Erick and get started on your plan today. When we come back, Erick will be speaking with Nancy Lopez, the LPGA famous Hall of Famer, 48 wins on the LPGA Tour. Eric, I'll talk to her next.
Producer:
You're listening to Take Point on retirement. To schedule your free no obligation consultation visit take point on retirement. Welcome back to take point on retirement schedule your free financial consultation now at take point on retirement.
Erick Arnett:
Nancy. It's just fantastic that you were able to join us today on on take point on retirement radio. We're so happy to have you here. Thank you for your time today.
Nancy Lopez:
Sure. Thank you.
Erick Arnett:
And so we're broadcasting out to Tampa Bay in the Nature Coast area. And we just wanted to chat a little bit about a little bit with you about retirement. And and obviously, a lot of listeners out there are probably big fans of yours and we just kind of like to chat with you and see how things are going in your life and what you've been up to. And and kind of tell us a little bit about what's retirement look like to. Nancy Lopez.
Nancy Lopez:
I don't see retirement yet.
Erick Arnett:
Yeah. Yeah. You're still working a lot, right?
Nancy Lopez:
I do. I still stay very involved with the LPGA Tour. And I have my golf club company, my clothing company, and then I have a company called Nancy Lopez Golf Adventures. And we just got back from Spain about two weeks ago. We took 46 people. And I have two other ladies from the LPGA Teaching Division, Teresa Zamboni and Sue Powers at work for me. And we take people well overseas but also here in the States and we take them places. We play golf with them, we entertain them and we teach. So it's kind of my way of trying to give back to golf because I love the game still. And so if we can get other people to love it and get better, we want them to get better. And we teach a lot of my dad's philosophies and our mantra is Play Happy, which was something that my dad always taught me. So I'm busy with that. But I just was at the Founders and I did some stuff there for the LPGA, so I haven't really retired. I retired from swinging a golf club on the LPGA Tour, but not retired from anything else.
Erick Arnett:
Yeah, I mean, the first thing that comes to mind, obviously, when I think about your career and I've had I've had the I've had the blessing or the opportunity to speak with some other older legends in the game. And and it's it's it always I kind of always I'm a money guy, right? So I'm a financial advisor and work with clients and retirees. And I think about the money and I'm sure retirement for you and a lot of the legends versus, you know, like a Tiger Woods or some of these big stars that are making the money that they're making today is very different. I mean, you probably had to win 45 tournaments to win the same amount of money that he won and won or whatever. I don't know what the money was back then, but I mean, so one thing probably great for the game as much as it's grown and the money that's come into it. But I'm sure that that was a challenge for you just to pay your expenses and get around on tour. I mean, so, you know, how do you feel about that? I mean, the difference in earnings and things, I mean, obviously, like I mean, you won 45 I'm sorry, how many times on.
Nancy Lopez:
Tour of 48 times on the LP?
Erick Arnett:
48 times on tour. So, yeah, you know, I think the guys that have won 48 times on tour today are like billionaires, right? So yeah, not exactly fair, but that's why I'm assuming that you're still really out there getting it getting it done.
Nancy Lopez:
So. Yeah, well, I had I had a lot of good advice when I was younger, which was 19, when I came out on the tour, I had financial advisors that pretty much said, Let's just go ahead and start putting your money into retirement. And I'm like, Retirement, I'm only 19. And her name was Barbara Kerns, as a matter of fact. And she's not with us anymore. But I put as much as I could into my retirement from the very beginning. And a lot of athletes don't do that because you don't think about it. And retirement for the LPGA is nothing. So that's not where my retirement's coming from. It's coming from what I did as a young person and did all my career. Every year I put in as much as I could into my retirement. So I'm doing good. I'm I'm more of I want my money to last because I hope to live to be 95. And so I want to have enough money to to be able to take care of myself and not have to have my kids take care of me or my husband. So that has been my goal and I think I've reached that goal, but I still enjoy doing what I do and it's always fun to make money and have a little bit of extra where you can do stuff with your kids and take them on trips and things like that. So trying to trying to always do that and I'm still healthy and so it's fun to still work and do what I do.
Erick Arnett:
Yeah, we see that with even a lot of our retirees that we work with now. I mean, retirement's a lot different than it was for our grandparents. You know, they would work 30 to 40 years for one company and retire at 50. Get a nice pension. And but nowadays we're seeing a lot of our folks and our retirees are still actively working in a semi retirement mode or picking up a part time job to make ends meet. And. But you made a great point. Starting early and saving early and getting that compounding effect is so huge for our young listeners out there. That's great advice. I mean, and and you never it never it's never too late to start either. I tell people I have people call me all the time. I'm 55. Is it too late for me? And like, no, it's not. You know, it's better late than never. Right. So great advice there. And and so is there anything that is anything that you do or anything that you could tell our listeners? You know, I always look at it like golf requires so much preparation and even calm level emotions, something you may not know, but it's kind of cool. My son was actually a golfer as well. He played college golf and was an all-American. And then he also went and played a little bit of pro golf. But he he got tired of the travel and it was a grind being out there every day. And then the emotional upswings, you know, and our investors are feeling that right now with the markets. And I mean, I know I'm not putting this on your shoulders like you're marketing or market guru or investing guru and you may or may not be. I don't know. But what would you say to people about emotions and kind of let the emotions get the best of them? And did that play a big part in your career and your success on the golf course?
Nancy Lopez:
Well, you know, definitely when you're playing golf, your emotions, you have to have them under control so you can be successful because you can't let a bad shot make you crazy. I mean, you've got to still be consistent. And and I think when you work really hard in your golf game, that you build that confidence level up to where you're going to miss some shots because golf is definitely not a perfect game. You're not going to hit perfect shots all the time. I always had I always had that calmness because my dad always taught me to to accept what was happening. And if I if I lost it, I wasn't going to play better. And that was a big thing. And I think people that invest money now, I've learned a lot from my investment people. And, you know, when when the stock market looks like it's going to be crazy, they're like, hang on, just stay there. Don't be doing anything silly. And of course, I'm watching my money like, oh my gosh. And they're always like, no, just don't.
Erick Arnett:
Just went in the bunker on the 18th green and you're like, What do I do now?
Nancy Lopez:
And you can't panic because I mean, especially most people are, I would think, young investors. I hope that they don't need to touch that money anyway. And so they just need to keep it in there and let it grow back to wherever it might have started from. And just be patient and don't don't mess with it. Just keep it there. And and I've always I think why I still why I still work, Eric, is because I want to be able to always put money up every year. It's a yearly thing, you know, invest my money after I and then if I want to, I bite I'm a big budget or you know, if I sure I might have money, but if I can't pay cash for it, I'm not going to get it. I don't care how much money you have, you need to always do that. And then at the end of the year, you want to be able to put some money and save it and invest it. So I do budget. And if I don't have that money to to do what I want to, I never go into my savings. I don't go there and take money out to buy something that I can still work and pay for it and then invest money at the end of the year. So I try and do that and I think I've done pretty good at doing that.
Erick Arnett:
Oh man. Thanks for sharing that with us. I grew up in the game of golf. My dad was a big golfer. My son was a golfer. And you know what I'm hearing you say? And what I keep hearing is discipline, discipline, discipline. And that's probably why you're an LPGA legend, because you had discipline. I don't think there's too many successful players on tour in the game of golf or even in life if you're don't have some discipline. And that's one of the biggest things that I run into as an advisor. I sit down with folks and believe it or not, 95% of all people that I sit down with, they could be multimillionaires or just starting out. They don't have a budget. They've never even made a budget. And in fact and so it's got to start there with that discipline. And that's just just such awesome advice and for our listeners and you know, but enough about money, you know, I appreciate your time today being on the show with us. It's so fantastic. I had the opportunity to see you up in Black Diamond and I watched. You play and your swing is still sweet. I mean, it's amazing. I was sitting there watching these guys. You know, Fred Couples was out there. You were out there, all these legends, these amazing golfers, and their swings were just so smooth. And I'm 51 and I'm thinking to myself, I get out there and my swing hurts, I'm rickety. I'm like, Oh, I can't get through the left side. It's like, you know, all these problems. It's amazing that you guys still are at it and, and and staying smooth and your swing is so smooth and and you're smooth to it. Thank you so much for being here today. I really appreciate you being on the show. And, you know, we'll wrap it up there. And if there's anything else you'd like to share with our listeners, we're happy to hear it. But thank you so much for just joining us here. I really do appreciate it.
Nancy Lopez:
Yeah, thanks, Eric. I enjoyed it too. It's kind of nice to grow up and learn how to financially be more settled. I have three daughters that they all have a different mindset on money and I've always told them they need to budge and they get it. Now they're getting older. They're like, Oh, okay, I get it now, Mom. And I'm like, Yeah, you need to, you know, Mom's not going to be there to help you out. You need to do what you need to do. And then if you work hard, I might help you out once in a while, but they need to, to, to do their best. And I know there's a lot of people not working right now, and I just don't understand that why they don't want to better their lives. Work is good and in someone telling you you're doing a great job is a great motivator. And I think that's so important for people to have that self discipline and the accolades from someone telling them they're doing a great job. Because I've always told my daughters, you'll go far in life if you have good work ethic and they do, all three of them do great or what they're at anything that they do and they set their goals high. And it's always I think setting goals is a great thing to do. Eric, when you're out there, set them high. Don't don't just accept mediocre. I think it's so important that that to be successful in that way.
Erick Arnett:
Yeah great advice and I couldn't agree more. If you don't if you don't have goals, you're never going to get there. What what if you don't set goals and you don't measure them, then you'll never get there. And so that's just great advice. And I remember one more thing, because what you said sparked an old thought. My grandfather has been gone forever, but I remember you just remember a key things that they say. And my grandfather sat me down one time and he's like, he's like, Son, I don't care if you're a truck driver or an electrician, a doctor, an attorney, whatever it is, you can do whatever you want. But and it's just remember this one simple thing I'm going to tell you, and I still think about it every day and I still talk to about it in meetings all the time with clients. It's not what you make, it's what you spend. Right? And so I think, unfortunately, in today's environment and, you know, people are always wanting to kind of run ahead, keep up with the Joneses. And they want they want what they want now. And they don't they're financing it or whatever they're doing, but they're spending spending more than they should. And and you've got to you've got to you've got to it's simple math equation. And I wish this is actually going down the wormhole, but it's just even in government, it's like you can only take in so much, you know, and spend and spend this much. So if you're taking in more than you're spending, great. But if you're spending more than you're taking in, you've got a problem. So great, great advice.
Nancy Lopez:
Great advice. If you can't pay your credit card, you're spending too much. If you can't pay it off and it gets to you, you're spending too much money.
Erick Arnett:
Awesome advice. You know, it's been great having you. Hopefully maybe we can do this again some time. I know you're super busy, lady, and I wish you all the best.
Executive Producer Sam Davis:
All right. So that was Nancy Lopez on Take Point on retirement. Such a pleasure to have her on the show. Eric, my big my big takeaway from what we got to hear from Nancy is, you know, don't look at retirement as a finish line. Nancy is in her retirement years, but she even said she doesn't feel like she's she's reached retirement yet. You know, you can really look at retirement as the next starting line in your life. You know, you have more time to pursue your interests, spend time doing what you love. But the important thing is, you know, having a plan to make sure that you can take advantage of of those last golden years of your life, right?
Erick Arnett:
Yeah, absolutely. And, you know, everybody's retirement's going to be different. But, you know, and that's one of the things that take point is before we even talk about financials and numbers and all that stuff, you know, we actually sit down with our clients and the folks that we speak to across Tampa Bay and and ask them, hey, what does retirement look like to you guys? What's the plan? What are you doing in retirement? Envision it. What's it look like? You know, and that's kind of the emotional side of it, which is, I think is the most important side, really. And the cool thing about what we learn from Nancy is even though she probably doesn't need to work, she still finds a lot of passion and still loves to do it and loves to be out there in the game of golf. And and I think that's so important as to even though we're thinking about retirement and we're or if you're out there listening and you're in retirement, continue to find your passion. You know, do something, keep keep busy, keep active, volunteer or go back to work part time or whatever it is. You know, this today's retirement is going to be a lot different than the retirement that our grandparents enjoyed. You know, the days of you worked for one company for 30 years and you were retired at the at the age of 55 with a with a nice big pension and the watch, you know, it's not like that anymore. So you may find yourself where it makes sense to diversify with some part time work or or maybe some real estate or what we talked about earlier. But, you know, I loved Nancy, you know, when we talked about you have to have a plan.
Erick Arnett:
You have to have a budget. Because like we talked about, my grandfather once sat me down and said, Hey, son, it's not about what you make, it's about what you spend. And that thing always stuck with me. And I always knew, like, even when I was spending a little bit more than I should have, my grandfather was it was echoing in the back of my skull, you know. So I always knew he was still speaking to me when I was getting out of getting out of a line a little bit. And so that's the first thing is what are you doing retirement? How does it look to you? What are you guys doing? Are you traveling or are you gardening or are you playing golf or fishing or are you hanging out with the grandkids? You know, what are you guys doing? And sometimes we even find that folks aren't even on the same page. So it's good just to go through that exercise, you know, and, and then let's put a plan together to get you to and through that successful, stress free, potentially even tax sensitive or tax free retirement. And that to us is what we do every day and what we're passionate about and why I probably never will retire and we'll always work a semi-retirement because I find passion in what we do here. And I love doing I love helping people. So why sit at home in the rocking chair? You know, you can only play so much golf and fish so much and, you know, so continue to find your passion and and start writing out that bucket list, you know, and give us a call.
Executive Producer Sam Davis:
Absolutely. And you know, I like what you said, Eric. The retirement of today is is not the retirement of past generations. You know, it's a different retirement lifestyle. But the folks that are retiring today, whether they're currently retired or getting ready for it, you know, they're facing different headwinds. You know, we're living in an ever more expensive world. You know, we talk about inflation almost every week on take point on retirement. But one thing that's kind of at the top of the inflation headlines right now is gas prices and how that could affect shipping costs and really the cost of everything.
Erick Arnett:
We need some relief there. I think we'll get it. I think at some point in time we're in the summer months, which is high demand. I do think that there's a lot of signs that inflation has peaked here. And, you know, that's that's good news for us, even though I think we'll have high prices for a while. But I do think it's peaked here, which is a good sign. One of the things that we planned for are periods of inflation, periods of deflation, high interest rates, low interest rates, good markets, bad markets. So when we build out a plan for you, we test that plan ahead of time. We throw 1000 scenarios out. We call it a stress test. The clients here at take point, even though we're in one of the worst markets, top to bottom declines we've seen in a very long time are weathering the storm just nicely and the phones aren't ringing. And so because we plan for this ahead of time, so we've got a plan for it. The economy's changing, the markets are changing, interest rates are changing, everything's changing. So, you know, the market that we had over the last ten years is not going to be the same market that we have over the next ten years. So what what what was working for you in the past is not going to work for you going forward. I'm pretty confident that we've got to manage risk and we've got to create income. You can't run out of money in retirement. So, you know, and so there's we have solutions for that. Even through these periods of high volatility, we do have solutions and we have a game plan for you here at Tape Point Wealth Management. So give us a call. Reach out to us and let's get let's get it started.
Executive Producer Sam Davis:
Get in touch with the folks over there at take point wealth management, call them (352) 616-0511. That's (352) 616-0511. Or find them online at tick point wealth. You know, in segment one, we were talking with Randy about managing your your tax liability with regards to real estate, but managing your tax your tax risk with regards to your 401. K and your IRA is an important consideration as well. You know, it's not enough to be just a good earner or just a good saver anymore. You really do need to have an income plan like you're saying, Eric, because retirement's a lot more than building up that one big nest egg. You know, if you have half a million dollars in your 401. K, you haven't paid taxes on that yet. So you're one big nest egg isn't as big as you think. So I'm interested. We've got about 6 minutes left in this show. If you can just give folks a brief overview of what Roth conversion is and how that can help them reduce their tax risk. And really the total number of taxes that would be paying during retirement.
Erick Arnett:
Yeah, great. You know, one of the things that we do and part of the planning is our smart plan is going to focus on lower fees. How do we lower your fees and expenses? Because that's important. How do we lower your taxes? That's really important and how do we lower your risk? Those three things are the key things we focus. John. And we have tried and true strategies to get you there. We're partnered with Suncoast CPA Group, so we have a team of tax consultants and CPAs here as well that help us build our plans and make them tax sensitive. And yeah, you know what? If we can do it, we're going to do our darndest to get you to a tax free retirement. And so there's all kinds of tools that we can use. The Roth conversion, the Roth IRA, the Roth 41k, we can also use life insurance to create an amazing tax free life insurance retirement plan. So there are a lot of solutions. We just have to take the first step and that's to give us a call and and get together with us so we can start gathering that data and information and help you, the listener, make sure that your plan is solid and can weather all those storms and be sensitive, tax sensitive and risk sensitive.
Executive Producer Sam Davis:
And you can find them online at www.TakePointWealth.com. You can also check out the show if you miss part of take point on retirement today. The show is available wherever podcasts can be found. You can listen through all the past episodes and learn more about what we talk about here at Take Point on retirement. So if you visit Take Point Wealth, you'll find a set an appointment button in the upper right hand corner. If you click that, you can schedule a call with Erick and Erick at that point, what can people expect once they get in touch with you? They're interested in building a plan. Or maybe they have a plan in place already. Maybe they have an investment vehicle already, such as an annuity, or they've got an IRA, but they're confused about the fees that they're paying in there. What can you do for the folks after they give you a call?
Erick Arnett:
Yeah, so it's just a real laid back chat the first time just to kind of get to know you and kind of figure out what your questions are or your concerns. And then if you'd like us at that point, we'll take a look at what you're doing. What is your plan? Maybe you already have a plan in place and you just like someone to take a look at it and kind of stress test it and kind of give you a second opinion. The best and the brightest in the world. Pension fund managers, big pension funds, retirement planners and asset managers. They have third party consultants that come in and evaluate and kind of give them a second opinion and and and and look for other opinions to see if they're on track with what they're doing. So why wouldn't you do that? You know, it's completely free. I tell people all the time, all it's going to cost is your time. We do this all for free as a gift to you. It's going to it's going to cost your time, and that's it. And we'll just gather that data, information that we need. And you know what? You may or may not have a plan.
Erick Arnett:
Maybe you don't have a plan. Maybe you're at work and you're getting ready to retire and you get that for one K, you need to roll over and you're not sure what to do or you've already left work and you've left several jobs. You've got these orphaned four one ks all around and you just don't really know what's going on inside of them. Let's, let's take a look at all that and simplify things for you. It's a three step process, and then we'll build a plan for you and optimize it. And we'll put forward what we think is the very best tax sensitive plan, fee efficient plan and risk adverse plan. You know, it's all about managing risk now going forward. And so once we do that, we'll present it to you. And if it makes sense, we'll implement. And if it doesn't, you don't have to make big changes. You might not have to make any changes at all. Maybe a small little change. Heck, you might be right on track. So it does not hurt to get a second opinion. Get a third opinion.
Randy Woodruff:
Eric, I wanted to comment on something you just said that I think is so important. And you mentioned that the the markets going forward aren't going to be the same way they've been the last ten years. And that definitely applies to the real estate market as well. We were talking earlier in the show real estate prices have risen significantly, sometimes multiple times over the last five or ten years. So I think people definitely need to be thinking about that when it comes to real estate as well. And then you mentioned we need to be constantly rebalancing. And that's one of the reasons I think people should begin to think about exiting some of their real estate positions because the need to be nimble is going to become more and more important, especially as we age and especially as we experience potentially more and more volatility going forward. Real estate is not very liquid, especially if you have commercial real estate or raw land. Do you have a residential home right now? It's pretty liquid. If you want to sell that home, you can sell it pretty easy. If you have commercial real estate or if you have raw land, it takes sometimes 3 to 6 months or a year or more for you to get a buyer to the closing table. So at that point, that asset class is not nimble and not enough. I should say nimble. The asset class is not liquid or easy to exit out of, especially if you need to. So again, I think to Erick's point, the last ten years are different, what they're going to be from the next ten years. And they need to be diversified. They need to be nimble. It's going to become more and more. Orton going.
Erick Arnett:
Forward. That's how it works here. It's just real laid back. Just a simple phone call, chit chat. You can even, like you said, plug in on our calendar and and set up a time. Call us right after the show. If you like, I'm happy to pick up the phone and answer and chat with you today. So Saturday and Sunday, I might be hanging out by the pool, but I'm willing to chat with you. So give me a shout.
Executive Producer Sam Davis:
Give them a call. (352) 616-0511. That's (352) 616-0511. Or go online, book an appointment and learn more at take point wealth that's www.TakePointWealth.com. We'll folks have a good memorial day weekend. Eric, randy, I hope you both have a fantastic holiday weekend with your families.
Producer:
Thanks for listening to take point on retirement. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets, to schedule your free no obligation consultation visit, take point on retirement, or pick up the phone and call (352) 616-0511. That's (352) 616-0511. Investment Advisory Services offered through Brookstone Capital Management LLC. Bcm a registered investment advisor BCM and Take Point Wealth Management are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.
Producer:
Registered Investment Advisors and Investment Advisor Representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interests of our clients and to make full disclosures of any conflicts of interest. If any exist, refer to our firm brochure the ADV to a page four for additional information. Any comments regarding safe and secure products and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by BWR.
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