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6.30.23: 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 Take 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.

Erick Arnett:
So good morning, everybody. Good day. Whatever time it is, I'm not sure. We're broadcasting through several areas and several time frames, but just wanted to give a shout out to all my listeners and my retirement warriors. Thank you so much for listening to the show. Welcome to the show. This is tape point on retirement radio. This is your show purely for you education. And if you have questions or concerns or if you have your own, you know, ideas, you want to test them, you want to talk about them. We talk about a lot of different things on this show. So get your pen and paper out and write our number down. We're going to be shooting your information, how to get a hold of us throughout the show. You can certainly give us a call. I'm standing by today. You can call me right now if you'd like to. It's 352 616 0511. We also have a podcast website TakePointOnRetirement.com. Certainly welcome to go there, click there you can see all of our past shows. You can also get some valuable information there. You can also contact me there. You can go on the upper right hand corner. Just click right on my schedule and jump right in and schedule your 30 minute chat session, your own 30 minute personal chat with me, Erick Arnett. And we also have, I guess, Sam, our radio deejay extraordinaire, and my digital media marketing guru, my buddy.

Erick Arnett:
He's got a set up on our YouTube channel as well. If you want to go to YouTube, you can go to YouTube. We'd love to you for you to go there and subscribe to see Us Weekly, our video highlights and special content. It's take point on retirement radio YouTube channel. But more importantly, I would love for you just to give me a call. We stand by on the weekends to answer your questions. Do not hesitate. Get in touch with with us today. We can get you a free report on tax free investments for a better retirement. This report will help make legal strategic investments so you can build tax free wealth. I know that's pretty exciting because for sure in the headlines, Sam, all I've been reading lately is how Social Security might be in peril. They're going to cut benefits. They're going to they're going to push full retirement age out even longer. And so some concerns there long term with the Social Security system. So if you you know, how are they going to pay for that? Right. There's only two ways to pay for it. Someone's got to make a big change, folks. They're going to probably raise taxes on you and raise taxes on you considerably. So if you're in that retirement red zone, you know that 55 to 65 age time frame, it's really super important that you tune in to our show on a weekly basis.

Erick Arnett:
We give you great tips and great ideas on how to retire stress free and prepare for those big taxes coming. You know, it's definitely going to be increase in taxes, folks. They know that 75 million of you baby boomers are retiring here in the next few years. You've got nice 401 seconds. They're sitting there. And so they know that they can raise taxes. That's what our folks up in Washington want to do. They're not going to they're not going to cut spending, folks. It's just not going to happen. So we're going to have to raise taxes and they're going to come after you. So tax free investments, we're going to talk about that a little bit later on in the show. Stay tuned. There's only a couple of ways that you can design a tax free retirement. We're going to share some of that with you this on this show later on in segment two, but really need to be thinking about how do I set up my retirement that's going to be tax efficient, fee efficient. The silent killer is fees, folks. You got to know what you're paying and also making it making it market efficient and managing your risk. So those are the three key areas that we've got to dive into. We've got to get on top of today.

Erick Arnett:
And and more importantly, where is your income going to come from and is that income going to increase with inflation? Is it going to be a stable, secured, guaranteed income? We've got to get your income shirt up first. There can be no questions about income. And so that's one of the most important things. And biggest fear, Sam, is is folks hear this, you know, potential cut from Social Security by 25%. And they also fear inflation, the rising cost. So how are we going to pay for this? You know, we've got to get that guaranteed income in place. Most importantly, if you're taking risk, too much risk in the market, we need to talk about that. Let's think about what we're doing in retirement. Let's get a good, solid budget in place and let's let's talk about what our expenses are going to be. Two and three timing. How do we increase those and how do we build a plan that's going to strategically conquer all those goals and strategies? And we have the answers, folks. It's you know, we've been designing these plans for a long time. It's really about getting your planning right. Right now and starting with that budget and preparing for income. So that's my little rant here to open up the show. Sam, how are you doing today? It's great to have you with us. I'm doing.

Producer:
Very well. Happy to be here on the radio on take point on retirement broadcasting to all the retirement warriors out there who are hopefully enjoying their kind of extra long Independence Day weekend, maybe getting outside, maybe getting out on the water. And yeah, would definitely encourage all of you guys to if you're not going to do it this weekend, just take a note TakePointWealth.com or just jot down that number (352) 616-0511. I'm sure there's a question or two that you've had about your retirement, something that's concerning you, something that you just need cleared up. And go ahead and give Erick a call, get those questions answered. You can just go to his website, schedule a 15 minute chat, and you'll be well on your way to a solid, more secure, more efficient retirement plan. And Erick, you made some fantastic points in your opening comments there. I was just talking to a couple just the other day who was preparing for retirement and you definitely want to get those income sources planned out and in place. Social Security is just one piece of the picture, folks. You can go to tsa.gov and start to get an idea of what your benefits may look like.

Producer:
But you can also give Erick and the folks over at Take Point Wealth a call and they'll pull together a full Social Security maximization report for you to help you get the most out of that benefit. And you were also talking about taxes as well. Erick, you're absolutely right. 75 million people retiring between now and 2030. Unfortunately, what I think is happening, Erick, is the government knows all that money is sitting in tax deferred accounts. They know the money that they're going to get. And I feel like they've spent that money before the check has even arrived. And I think you're absolutely right. Government spending is going to continue. So we need to plan just to be safe. And we think that it's very likely that taxes will go up in the future. So you'll want to take advantage of some tax free income strategies during your retirement. We'll talk a little bit about that today. But let's go ahead and get things started, Erick, with a financial wisdom quote of the week.

Producer:
And now wholesome financial wisdom. It's time for the quote of the Week.

Producer:
This one comes to us from the Oracle of Omaha, Warren Buffett. And he said, rule number one, never lose money. Rule number two, never forget rule number one.

Erick Arnett:
Well, Mr. Buffett, straight to the point, black and white. And yeah, just I love his quotes. I love following Mr. Buffett, a big fan of him for a long time, but never lose money. Rule number one. And rule number two, don't forget rule number one, love. It's kind of like one of those Yogi Bear isms, you know, But it you know, it's true. And what he's trying to get you to focus on here. And what most all of your retirement experts and gurus out there. I was just listening to one. I'm not going to mention his name. He particularly he's well known person. He's on TV, written a bunch of books. But I love the fact that he came out and said, you know, basically based on forget listening to your brokers and your advisors about all their theories and their ideas, and if you went to 50 different investment advisors, they might give you 50 different plans, right? Because, you know, I mean, and so because there's so many things out there, it's so confusing for people. And that's what I feel feel bad about mostly is it's just so hard for people to understand this stuff and it's so confusing. They don't know who to trust. But, you know, going back to there's, you know, 50 different opinions. Right. Well, this gentleman really, you know, shared it up and summarize it quite nicely. He's done years and years of research. He said, forget about opinions. He goes, go with the basics, Go with. What really is true is the math and the science behind things, the true data and all kinds of studies by prize winners and stuff.

Erick Arnett:
He quotes in his books and it comes out to this basically is, is this right for our retirees? Exactly what Mr. Buffett is saying. The most important thing to get right in retirement in the beginning of retirement is not losing money. If you lose any money in the beginning of your retirement, the first two, three, 4 or 5 years, it's devastating. Folks don't even I don't even want to show you the chart on the difference between if you in the beginning of retirement, you get it right and you don't lose money versus if you do lose money. And in the beginning of the market, in the markets, in the beginning of retirement, it's devastating. So. Uh, it's almost scary. And I didn't even realize really, I guess, until I continued to dive into details how scary it really was. And it woke me up again to really, you know, to focus on this sequence of returns. If you don't know what sequence of returns is, folks, please reach out to me today. (352) 616-0511. I will share the sequence of returns with you and I'll show you in how it how it impacts your retirement plan and your portfolio. But it's super, super important, you know, do I put my money in stocks? Do I put my money in bonds? Do I put my money in annuities, real estate, commodities? Like where do I put my money? There's only really one place you can put your money to get a guaranteed income stream, and it's using annuities.

Erick Arnett:
Folks, I'm just going to tell you straight up, you got to use annuities to fill that income gap. It's going to give you a guaranteed income. And this this expert confirmed it after studies and years and years of studies and math and math. Is that because it's when you're going into retirement, folks, it's very different than what you've been doing currently and working up to retirement during the accumulation phase. You're going in the distribution phase. Now. Not only do you have to have a guaranteed income to cover those basic needs to supplement Social Security because guess what? Social Security might get cut and get cut very soon. And so we've got to supplement Social Security. We've got to supplement your pension if you're if you're lucky enough to have a pension. But a lot of folks out there don't have a pension. They're going to be relying on their 401. K or their IRAs to get them through retirement. And so we've got to get this right. You've got to give us a call. Take point. Wealth management, It's (352) 616-0511. We'll get started for you today. And there's no there's no obligation to work with us. Let's just build out the retirement plan first and show you how we can optimize your retirement, how we can give you a guaranteed income, how we can even increase that income with inflation if we have to over time.

Erick Arnett:
And guess what? Yes, we're going to still use stocks and bonds and those other things, too, to complement that plan. Okay. And to to to also get you some growth in the future and to help maybe I don't know if we can beat inflation, but at least keep up with inflation because that's the number one thing that folks don't do to if you think about retirement savings, it's it's ten, 15, 20, 30 year retirement. You know, cost of living is going up two, three, four, 5% every year. So how do you keep up with that, folks? You got to think about what it's going to look like for you ten years from now. You really do. And we're going to get into, I think later on in the show here. It talks about some statistics on retirees all of a sudden currently saying, you know what, I don't think I can retire right now. I'm going to have to stay on and keep working. And there's a lot of reasons behind that, folks. And one of the big biggest reasons I hate to say is, unfortunately, they did not have a plan. They did not have a good plan in place, a solid plan in place to prepare them for retirement. They might have still been riding the markets or they weren't, or maybe they weren't even positioned properly to get any return. Maybe they were just, you know, super scared and fearful and just had their money sitting in something that wasn't making anything. And so now we've seen where inflation has reared its ugly head and it's eating our retirements alive.

Erick Arnett:
So we have a great plan. We put everything together complementary, a solid portfolio, we optimize it for your specific needs. It's completely free and complimentary. It doesn't cost you anything and no one's going to hold a gun to your head and say, Hey, you know, we did all this work for you, now you have to work with us only. No, that's not that's not the case. You can take the plan for yourself. You can walk away and hopefully it just really benefits you. And you learn what it's like to design a total, comprehensive, truly stress free retirement plan. So we're super passionate about it and we want to share this knowledge and this information and get folks on the right track. If you're playing the stock market, you got a broker who says, Oh, hold on, Just, you know, hold on. Things are going to go up and down. You'll just be you'll be just fine. That's that's not true, folks. Especially if you're in retirement, you start having to draw money on on your portfolios. So anyways, super passionate about it and this is what Mr. Buffett is saying is like, you really you really can't make mistakes. You really can't lose money and focus on what he says. Let's put some let's put some practices in place. Let's put some strategies in place that are going to help protect our money and grow it and give us that guaranteed income we need.

Producer:
Yeah. And people are already thinking about the guaranteed income sources that they will receive during retirement. Erick When you talk to people about retirement, one of the first things you hear them talk about is Social Security. And we talked about the potential of benefits being cut. It's not just us saying it on the radio. I've got this pulled up from the Social Security Administration tsa.gov. And if you want to check out any videos from our show, you can go ahead and go over to our YouTube channel. But this comes from the Social Security Administration. It says, The future financial Status of the Social Security program. Currently, the Social Security Board of Trustees projects program costs to rise by 2035 so that taxes will be enough to pay for only 75% of scheduled benefits. And Erick, some are speculating that that trust fund could be depleted even earlier than 2035. So we've got maybe just a decade left before some serious changes would need to be made. And we're likely looking at a significant cut in benefits for all recipients out there. So you need to tighten up that income plan. You need to find a way to get those guaranteed sources of income so that you can fund not only the non-discretionary expenses, your bills, your cost of living, putting food on the table, but all the fun things you want to do in retirement as well, because you want to enjoy what you've worked so hard for all those years. Go ahead and get those guaranteed income sources lined up so you don't have to worry. You can sleep well at night and you can start planning more vacations rather than spending your retirement watching the stock ticker.

Erick Arnett:
Yeah.

Erick Arnett:
Boom. Thanks for bringing that up, Sam, and showing that real data. Actually, on the Social Security website. It's it's truly powerful and it's concerning. And, you know, we've been out doing live educational events, webinars, radio shows. Heck, we're even going on TV soon. We're trying to get the message out there. I've been saying this for probably the last ten years, the same exact rhetoric that we're talking about now, ten years later. And I just don't know if people are hearing it. I don't know if people are taking it seriously enough. But I just hope our listeners out there today, I know it's 4th of July weekend, but just mark a little note, you know, write a number down or just put take point wealth down on a piece of paper and then get back to us once the vacation and the fun and the enjoyment is over. And let's let's buckle down and talk about this stuff. It's super, super important, you know? Yeah, I believe that the inevitable is probably very close to happening. We don't have enough workers that are working and paying taxes to pay for the retirees. The equation is now truly imbalanced. Remember, you know, ten, 15 years ago we talked about there actually was one worker for every one retiree. But guess what? That's already dropped off. And sure enough, I didn't even think I believed it when I was talking about it ten years ago. But sure enough, here we are, ten years later. There's just this the statistics. We do not have enough workers now to pay for the retirees.

Erick Arnett:
We have less workers than we do retirees. And so super concerning. And guess what, Uncle Sam, our government, our wonderful politicians over the years have stole the money and have, you know, spent it unwisely and robbed the trust fund. So, you know, we got we got to be careful who we're electing folks. We got to buckle down on that, too. It's our own fault. So but anyways, not to go down that political soapbox, but let's get back to retirement planning. You know, I want to just continue with Mr. Buffett. You know, how do we apply what Mr. Buffett is talking about to our own life and retirement plan? And, you know, number one, just once again, let's not lose money, protect a sensible portion of your assets, even from bank failures and stock market volatility. You know, let's get some of that money out of the bank that's really not making a lot and also is subject to crazy, crazy risk. I mean, there's a lot of risk in banking. You know, the FDIC can't back up all the deposits, folks. And guess what? A bank only has to keep 10% in reserve of what they have taken in deposits. So they've got your stuff out there in the economy in risky investments. Okay. So let's talk about certain strategies and investments that you can place your money that you truly have the control. Okay. And you don't have to worry about these risks and it's protected. So rule number, rule number two, I love love.

Erick Arnett:
Love is rule 100. You know, I use this every day in my practice. People ask me, well, Erick, you know, how much should I have in the stock market or bond market or real estate or commodities or gold? I'm talking any investment that's not guaranteed, folks has risk. Okay. You know, you're guaranteed investments like CDs, some money markets. You know, your bank deposits, a fixed annuity, maybe, you know, there's there's not a lot of stuff out there. Us Treasury, short term, US Treasury, you know, has a guarantee where you would get your principal back. Okay. There's not a lot of them out there. So we've got to look at alternatives to those that give us the potential to beat inflation, to grow our assets and to provide us a good stable income. So but rule 100, you take your age, you subtract it from 100. So if you're 60 years old and you might even be thinking, you know, I still got six, seven, maybe ten years till retirement. I was talking to a guy the other day in my office. He's 60 and he's like, Erick, I'm going to work. I'm going to work ten more years. It's because and it's because things have gotten much tougher. And he was hoping to retire earlier, but he just can't. The cost of housing, the cost of medical care, the cost of food, the cost of cars. I remember ten years ago when I was working with retirees, Sam, they were moving down to Florida.

Erick Arnett:
They were able to buy their dream home to retire in for like 150 grand, you know? And now this guy had to pay close to $400,000 for just an average retirement home, quite frankly, in Florida. And so think about the cost. Think about what that did to his retirement. And so he actually had to go back to work. He's got two part time jobs now to make ends meet. And so this is this is, you know, concerning to me. But I even I told him I was like, look, he's very concerned about the markets and, you know, all the fear mongering that's out there. You know, people are bombarded. Unfortunately, our culture just loves negativity and the media is constantly nailing you with all this negativity. So drives fear and creates fear in everybody. And then they just kind of hole up and don't know what to do, right? And so he's like, Well, I just don't like the stock market. I don't want any risk. And I said, I understand that. But so let's let's use let's use the annuity strategy to protect your money. Okay? Let's provide some income for you. In ten years, we can defer this. I showed him exactly what his income would be in ten years. He's like, You got to be kidding me. I'm like, no, your principal is going to basically pretty much double in this scenario. And then basically we can draw an income off our lifetime. He's like, You're kidding. You're kidding me? I'm like, no.

Erick Arnett:
And then so but we still got to take some money, okay. And put it into some smart investing strategies, you know, still utilizing risk, good, solid risk management. But we've got to also try to beat inflation. You know, we've got to try to get some good returns and equities and whatnot. So let's let's use let's use rule 100. Let's let's only put about 40% of your money at risk in these in the other traditional conventional investments that everybody knows. And and so he we kind of went back and forth and he kind of said, you know what, I'll meet you halfway. I'm okay with doing 25% and then 75% safety. I said, okay. You know, because the end of day, it's your money. We'll make this work. Right? But, you know, it's but that's that's the another key point about what we do at take point wealth is we customize, we customize for every family, every individual, every business will customize your portfolio and your retirement plan. If you're with some other brokerage or investment model or you're still in your 401. K plan, you're just doing this. The old conventional, traditional model that 95% of America are. And it's not customized for you. You need that customization, you deserve that customization and you deserve that active wealth management where where we're constantly watching your investments and monitoring them. So, you know, but Rule 100 is a great place to start, folks. If if you're listening right now, take your age, subtract it from 100 and then think about how.

Erick Arnett:
How much you have at risk, How much do you have in stocks and bonds and real estate? Because I don't want and I don't want to hear the nonsense like, oh, stocks, stocks will eventually go up and, oh, real estate always just goes up. And it's all nonsense, folks. I don't want to hear that there's a lot of risk in those investments. And they go up and down and you know it and they potentially could go down and stay down. You know, we've had plenty of periods in my lifetime where we've we're investments, real estate, stocks, bonds have gone down drastically and stayed down for ten years. Okay. You're you know, you're not at that age anymore where you can handle that. Okay. So let's get serious about this. So think about it. Take your age, subtract it from 100, and then go look at your portfolio. If you don't know how to find that data, call me today. 35261605113526160511. I will help you extract that data and we will analyze it together and I'll show you exactly how you're allocated. I'm going to show you exactly what you're paying in fees and expenses because guess what? You probably don't know because they are there are hidden costs. So, you know, when you're in all equities and you've got a ten, 20, 30 year time horizon, the stocks are going up and down. The stocks are growing. You put money in there. Yeah. You know what? Fees aren't as concerning because, you know, you're kind of adding money and the stocks are going up and you got this long time horizon.

Erick Arnett:
But guess what? When you're in that retirement red zone, folks, if you're even thinking about retirement, if you're 50, if you're 55, you better start paying attention to what you're paying in fees and what your expenses are because those silent killers will eat you alive. Okay. So super, super important. You know, give me a call. I'll help you extract that data. So, you know, if you're 55 years old, folks, you're really shouldn't have more than 65% of your assets. Okay. At risk and I'm talking at risk is stocks and bonds don't fall for that old conventional wisdom that, oh well, my broker told me or my advisor told me that 40% that I have in bonds is safe and that hedge is the stock market. And that's, you know, that's going to protect me. Wrong. That's wrong. Bonds also go down. You can lose value in bonds. There's a lot of mark up in bonds. Okay. I'm not dead set. Dead set against bonds. I have bonds in my clients portfolios today. I'm not dead set against them. But the they've got to be managed properly and they've got to be a certain percentage of your overall portfolio. And they play a good part, but they're not going to hedge you against losses. Heck, last year alone, okay, the aggregate bond market was down, I think 15%, 14 point something percent or 15.6%. That's the bond market, by the way, folks. That was the part that was supposed to protect you.

Erick Arnett:
Okay. And now you're calling your broker, you're calling your advisor, and he's probably saying, oh, yeah, don't worry about it. The bonds will come back. Well, how long do we have to wait, folks? How long do we have to wait for those to come back? And do we want it to do we want our retirement to be just kind of up in the air? I mean, we have really no idea what our value is going to be in the future. We really have no idea what our income is going to be in the future. Guess what? Because, yeah, you might hit a home run and get lucky. Or we or you might not remember the lost decade. Do you remember the lost decade? I hope some of you do. Maybe some of you don't. But from 2000 to 2010, in the first three years, the stock market got hammered. Three years in a row where we were down double digit negative returns. And it took ten years to get that back to S&P levels back. So guess what? Folks easily could happen again? Easily. We're at all time highs in the stock market and pretty darn close to it. Despite even how the stocks got hammered last year. We're still market market levels and market prices and earnings ratios are still pretty darn high. And so you just can't you can't take that risk right now if you're in that retirement red zone. And so let's pay attention to that Rule 100. I love it.

Producer:
All right, Erick. And when we come back, we're going to get into some more of the rules that Warren Buffett lives by and how you can apply them to your own life and retirement plan. We'll be right back. You're listening to Take Point on Retirement.

Producer:
You're listening to Take Point on Retirement to schedule your free no obligation consultation visit. Take point on retirement.com.

Announcer:
I'm here with Erick Garnett of Take Point Wealth Management. Erick, these last few years have been a time of change for a lot of people. Some have left their old jobs and started new ones. What if they still have a 401. K or other retirement plan from their old employer?

Erick Arnett:
That's a great question. If that's you. You've got options. A lot of work based retirement plans come with high fees. We can show you options that are a lot more affordable and don't eat away at your retirement savings and investments.

Announcer:
What about if I'm getting close to retirement? Do I still have options?

Erick Arnett:
Yes. And this goes for anybody with an employer based retirement plan. You have more options than you think. Did you know you can roll over some of those funds into an IRA with more favorable investment options and lower fees?

Announcer:
I did not know that.

Erick Arnett:
Now you do. We can help you navigate it all. Just go to TakePointWealth.com and schedule a free no obligation consultation with me today.

Announcer:
That's right. You heard him folks head on over to TakePointWealth.com today.

Producer:
Welcome back to Take point on retirement. Schedule your free financial consultation now at take point on retirement.com.

Erick Arnett:
So hey everybody welcome back to segment two on Take point on retirement radio. I'm Erick Arnett. Also have mister Sam Davis with me here right now. Folks, if you caught the first half of the show and you've got some questions, you got some concerns and you wrote down our number. It's 352 616 0511. Please reach out. Give us a call. We're we're standing by to take your calls right now. But we were talking about in the first segment, you know, some rules to live by and and some wisdom. We're injecting some of Warren Buffett's wisdom into exactly what we do here at Take Point Wealth Management every day, the principle principles we've been living by for years now. Okay. And the big challenge is how do we get that information out and that education out to all of our retirees, our future retirees, and how do we get them to implement? You know, something just came to mind. It's a great point. I heard a gentleman recently tell me or say to me, he's like, you know, we can be on the radio, we can be on TV, we can be preaching all of these things. But folks, if you hear it and you don't absorb it and you don't take it with you and then you don't implement it, you've got to implement folks. You've got to take action. It just does no good, right? So it does none of us any good. So you've got to you've got to implement. So let's jump into segment two.

Erick Arnett:
We're still kind of talking about Mr. Buffett. We talked about rule number one in the first segment, never lose money. We gave some ideas that were kind of hammering away at that. How serious that is that you can't lose money if you're in that retirement red zone. We talked about Rule 100 and then incorporating smart risk strategies to your retirement plan. We talked about you've got to have income, you've got to have guaranteed income and we got to talk about inflation. So and then, you know, asking you. So I think it's important to sit there and say to yourself, you know what, Um, ask how much of my savings am I willing to lose? You know, how much am I savings? Am I willing to lose? I have to I have to tell a specific story. And of course, I'm not going to mention any names. We can't do that. But I have to tell this story because really, the reason that I that I do this show and the reason I think that we're pretty good at what we do is I've been doing this 25 years and I just have learned from everybody's mistakes, to be quite honest with you. I've seen them all. And so that's what's given me the knowledge and the power to help people. But I'm thinking of this one family. They came to me about a year and a half. Well, there's probably about two years ago retiring early, which was a big challenge because they were retiring in their 50s and had a nice nest egg, a substantial amount of money.

Erick Arnett:
It's not even important to really say the value. But so, you know, I sat with them for I think in 3 or 4 meetings and laid it all out for them. We talked about these strategies that I'm talking about on the show, and and they ultimately decided to go a different direction because they were pulled by a family member in some kind of religious affiliation to another system. And they went and put all their money in a mutual fund model because that was, you know, the that's the model that everybody uses. You know, let's just stick in a moderate portfolio, 60 over 40 mix, sizable amount of money. First they were in there. They were in their first year and first year and a half of retirement. Sam And lost 30% in their portfolio. Okay. 30% on $3 million. By the way, do the math. These folks lost $1 million out the gate because they weren't just I don't want to beat them up. They weren't it wasn't what they what they weren't they weren't listening. But they didn't believe what we were saying. And they were pulled in a different direction by the old traditional conventional wisdom of the stock and bond model and yada, yada, yada. And they and they did not follow what we were talking about, which is rule 100. They took too much risk with their money. They did not protect their income.

Erick Arnett:
They did not, you know, put some money in smart, smart, risk, smart, safe money where they could be lost. So so now they have $1 million hole. Plus they had to take income out. I think they're in the hole like 1.2, 1.3 million in the first year of retirement. Guess what? They're not. It's going to be very hard for them to make it. And in fact, I don't know, looking at the numbers, if it's possible, unless they make some drastic changes to their expenses and their in their in their living lifestyle. So that's just one example that comes to mind. We've got to get this right, folks, in the beginning stages. And if you're taking too much risk, you got to be super, super careful. And guess what? You don't have to take a lot of risk now because interest rates are in our favor. Interest rates have risen. Hallelujah. I mean, interest rates have gone. On up and it it's allowing us to get more creative and add some more safe money that has decent yields and can really kind of keep up with inflation or at least, you know, stay on pace with inflation. So but once again, Mr. Buffett's rule number two is never forget rule number one. You've got but you got to be informed, you know, do your homework, he says. Mr. Buffett says trust but verify, right? You can trust but verify and just don't take your broker's word or your investment advisors word because he's a nice guy and you like him.

Erick Arnett:
You know, I love my clients and I think they think I'm a pretty nice guy. Right? But they need to trust and verify everything I'm saying. They need to trust and verify. You need to trust and verify everything that your advisor is saying. So Buffett invests in all these strategies that he thoroughly researches and understands. He doesn't go into an investment prepared to lose, and neither should you. You can't let's not even talk about losses being a part of the equation, folks. So rule number three, if the business does well, the stock eventually follows. So when Mr. Buffett searches for stock to invest in, he seeks out businesses that exhibit favorable, long term prospects. He does. He does the does the you know, does the company have a consistent operating history? Does it have a dominant business franchise model? So you got to you got to be you got to be smart about the stocks that you're investing in. There's got to be some research behind it. There's got to be some some solid. They have to have a solid foundation. You know, is is the business generating high and sustainable profit margins? Is the share price trading below expectations for future growth? You know, these might be stocks he wants to own. So but we we can help educate you on the different smart risk strategies for growing your hard earned wealth. Do not please do not be an emotional investor. Don't try to time the markets.

Erick Arnett:
Don't jump in, don't jump out. You know, don't make any rational decisions. Do not be an emotional investor. That's one of the number reasons why it makes sense to work with an investment advisory firm, a fiduciary like take point wealth management, because we take all the emotion out of the equation for you. And so a lot of times that's really what we're doing. We're just protecting people from their emotions and making bad decisions with their money, to be quite honest. I mean, we've got to do that. And so don't be an emotional investor. Let let us help you plan your work and work your plan better. Okay. Let's work your plan and make it a better plan. We you might have a great plan in place. I don't know. Let's let's let's take a look at it. Let's test it. Let's optimize it. Let's see how it's going to hold up against. We have the tools in the software with our planning team to take what you're currently doing and just look at it and not make any changes and let's test it and see if it's going to work for you long term. Okay. Because our comprehensive retirement plan, folks, is going to take into account all your income sources. It's going to take into account inflation. It's going to take into account estate planning. If you're listening right now and you just heard the word estate planning, guess what? 95% of the people I sit in front of have no estate planning done or they just moved to Florida and they have the improper estate planning.

Erick Arnett:
And so give us a call. We can help design that estate plan for you and get it implemented as well. We're super excited about having that service now and other service added to take point. Well, where we can do all your estate planning in house, it's legal signed, notarized and attorney drafts it so we're super excited about having that in house attorneys with us now to to provide that estate planning that you all need do you need a will? Do you need a trust? Give us a call. We'll tell you if you do. And and you might have some questions about durable power of attorneys, how surrogates will do that whole package for you. And guess what? It's at a fraction of the cost of what you would do it outside on the street. So estate planning is super, super important. I know Mr. Buffett probably has a state plan in place, so it's it don't beat yourself up if you don't, because I do this educational seminar and it talks about all these super famous wealthy people that never did a will. But guess what? They're in probate forever. And and the attorneys ate. They stayed alive. And so here's another example that pops in my head. Sam, I just met with a lady the other day and her husband died two and a half years ago. He had two businesses that had a couple of properties.

Erick Arnett:
And guess what? It was all in his name. It took her two and a half years to get that stuff out of probate and into her name, so now she can liquidate it. And it's been very difficult on her because she's had no money to live on. She's had to pay attorneys for the probate. So, folks, if you don't know the rules in Florida, you don't understand what probate is. Please give me a call. (352) 616-0511. Or you go to my website and just click on the upper right hand corner and get on my calendar. Today, let's design and build an estate plan for you and let's get that implemented and get in place. I can't tell you all the horror stories that if you don't have that proper estate plan in place and you want to avoid probate, okay, we've got to avoid probate. That's key because one of the things about retirement planning is it's not just. Hiding for, you know what we're doing now while we're alive. But you got to plan properly for that transition of your assets and your retirement to your heirs, to your wife, to your to your spouse, to your partner, to your beneficiaries, whoever it may be. We've got to properly plan for that wealth transfer. And there's a lot of key strategies there that we need to implement to save on taxes and make it make it an efficient transfer of wealth. But what what's shocking to me is the folks that come to my webinars or even come to my estate planning seminars is about 95% of them do.

Erick Arnett:
And they're pushing 60. Some in their 67 don't have any documents in place. So they're completely susceptible and naked and vulnerable to probate. So let's avoid probate. We'll put together a state plan for you right here at Take Point Wealth Management. Give us a call today. (352) 616-0511. Super excited about that in-house service that we offer now at a fraction, a fraction of the cost that you would have to get to that you would have to pay if you got it done out on the street by one of the one of one of your attorneys. So super, super important, but. You know, I think I'm going to jump in and we're run out of some time. But, you know, rule number five, Mr. Buffett says our favorite holding period is forever. The reason why I like this is once again, Mr. Buffett says, We like to hold things forever. So he's when he buys a stock or he makes an investment, he's planning on keeping that forever. Okay, so how long should you hold a stock or an investment or an income plan or an annuity? You know. I've always said this. I've actually said, you know, don't ever buy anything unless you plan on holding it for five years. 5 to 10 years. But Mr. Buffett says ten. So let's go with what Mr. Buffett says. In owning a stock for ten years, you shouldn't own it for ten minutes.

Erick Arnett:
If you don't feel comfortable owning a stock for ten years, then you should not own it for ten minutes. 100% believe that I've been doing that for doing this for 25 years. I've been managing stocks for 25 years, and I firmly believe that if we're going to buy a stock or buy a portfolio strategy, we're going to hold it and we're going to manage it actively and make shifts if we need to tactically in different asset classes or industries. But bottom line is, if you make that commitment to utilize the stock market, then you need to you need to stay fully invested and stay in that for ten years. But, you know, Buffett has a loyalty has loyally held on to the bulk of his portfolio because he believes in the long term, the viability of his investment. So what this what this equates to us and our retirees and says, you know what, We've got to put that long term plan in place. If you don't have that plan or you think you have that plan, you want to test it out to see if it's really going to hold up long term and meet your goals and needs and factor in inflation, factor in long term health care. Are you factoring in the potential cuts in Social Security? Are you factoring in taxation? Are you factoring the risks of the investments? You know? Are you factoring in all these things? That's what we do with this comprehensive red zone retirement plan for you is completely free.

Erick Arnett:
You can also just go in that upper right hand corner of either take point wealth or our podcast site take point on retirement radio. Click on that little calendar button up there and boom, you're on my calendar and we're off and we're off and running. So again, do not don't be an emotional investor. I mean, Mr. Buffett says it. We say it all the time. It's common sense. Guess, you know, everybody talks about. But, you know, he hammers it home here pretty nicely. He says, do not be an emotional investor. And being overly fearful or too greedy can cause an investor to sell stocks at the bottom or buy at the peak and destroy their portfolio appreciation for the long run. And and this is the number one thing. I wrote a book about this and if you want to get my my book, it's a quick easy read. You can go to my website TakePointWealth.com and I believe you can get my book What is your financial speed and it kind of talks just about this unfortunately people the the the emotions of investing get in the way and cause a lot of trouble. Okay. And and really depletes your resources in retirement. So we've got to be super, super careful about that. It's important to keep in mind why you're investing to protect. So these are Mr. Buffett's words to protect and grow your wealth. So. That's exactly what we take to heart when we build a retirement plan.

Erick Arnett:
We have the protection part in place and we still have the growth part in place. So there's got to be a nice mix, a combination of those, and that is your financial speed. Some people need 100% on one side of the equation. Some people only need 20% on that side of the equation. We've got to get that night that that number right for you. If you're listening today, please. I know it's 4th of July weekend. Just write my number down and give me a call when you get back. We'll put all this in place for you. But it's super, super important to get this right in the beginning, folks. You cannot withstand any losses. You cannot withstand volatility. And please, the answer isn't okay, I've sold everything. And Erick, I'm in the bank. You know, I'm holding my money in the bank. And I just you know, I said enough is enough. I'm my answer to this because I don't know, like or trust anybody. And I'm confused and I don't know what's going on. My answer is I'm just putting the bank. That's the wrong answer to That's the wrong answer. You know, you might be lucky if you get a 4% yield. And if you're if you're in an IRA case, 4% tax free. But if you're in a taxable account, you're going to pay taxes on the 4%. Okay. So now you're at like 3% yield. And guess what? Our inflation is running 4 or 5, six, seven, 8%.

Erick Arnett:
So good luck with that. It's not going to work. That's not the strategy. So we've got to get you motivated. We've got to get that money out of the bank. And guess what? Folks don't really know how safe it is in the bank. You know, I'm tired of hearing, oh, my money's safe over there in the in the bank and FDIC insurance, yada, yada. I don't even know if that's true, folks. I don't think it is, to be quite frank with you, Um, FDIC doesn't have the insurance to cover all our deposits. And guess what? We had 3 or 4 banks that went went under this past year, and there was lines out the door. People couldn't get their money, couldn't get their deposits. So hope, you know, when you have all your money in the bank and you make those deposits, you have actually signed a contract. And when you've opened those accounts that those are now bank assets. So think about that for a minute. How safe really are those banks? We've got alternatives for you. And I think they're smart ones and and can really help you out. So it's important. Keep in mind why you're investing, protect and grow your wealth. We want to help preserve and increase the value of your assets. Remember, to preserve and increase the value of your assets so that you can thrive in retirement. Leave a legacy for your loved ones. So we got to get this right. Super, super important.

Producer:
Erick, I wanted to bring up this report that's new this week from unbiased.com. The report says that financial jargon has over a third 34% of Americans doubting their retirement plans. They say they don't know where to start. In fact, the analysis found that a majority of adults say that they have no confidence at all when it comes to dealing with the retirement planning options. But this is interesting, Erick. Here's what the survey found. The quarter of respondents who said they did feel confident. So the 25% who do feel confident about choosing retirement options said that their confidence was the result of working with a financial adviser. And Erick, this hits on what you do with folks every single day you were talking about earlier in this show. Let's get back to the basics. Let's talk about protecting our assets. Let's talk about smart risk. Let's talk about beating inflation and making sure that you're going to be able to cover those non-discretionary expenses. Health care was cited as a primary concern of the survey respondents, and they do have good reason to worry because this recent Fidelity study found that the average retired 65 year old couple this year may need approximately $315,000 saved just to cover their medical costs during retirement. So, Erick, what are you doing for the folks out there who are coming into your office? They're not so sure what's going on. Financial jargon can confuse people, but they want to make sure that they're going to have a safe and secure retirement.

Erick Arnett:
Oh, man. Yeah. This is one that hits is near and dear to me. And really why I jumped out and walked away from Wall Street years ago and started my own practice because that's exactly what Wall Street wants. You know, they Wall Street wants they love all this jargon and confusion out there because it allows them behind the scenes to be grabbing money and stealing from people's retirements. Okay. And so they want it to be confusing. And also, what I've been telling people for years and years and years, you might find out that working with an advisor is a wonderful experience and doesn't cost you a lot of money compared to what you're currently doing. I mean, often I actually show people how I can reduce their fees by it and still work with an advisor. And so you want to work with the right advisor, you want to work with somebody that's got some experience, some gray hair that's been around. Okay. You also want to work with an advisor that's a fiduciary, which means they have to put your best interests first and foremost. We don't you know, we don't make commissions as fiduciaries. If your account goes up, our, our, our, our, our income goes up. If your account goes down, our income goes down. So we have a quite a vested interest in being, you know, creating success and growing portfolios. Okay. So we treat the money like it's our own money and so we're in the game with you.

Erick Arnett:
So but yeah, you know, the financial jargon and that's the problem is I actually believe there's probably way higher than this. I think, you know, some Americans might even just be afraid to admit that they're not properly prepared because even if people think they are, I'm not sure they are. Folks, you can't you I'm going to tell you, you can't do this alone. I know a lot of you out there think you can and you want to do it on your own and you don't trust anybody and you think you can do it on your own. But I'm telling you, you can't. You just can't do it on your own. Um, I'm an investment advisor. I've been in this business for 25 years. And guess what? When I retire to, I'm not going to manage my own money. I'm not going to do it on my own. I'm going to have other advisors and experts and guys around me to help me because I'm not going to be a product specialist. I'm not going to be in the game every day learning and taking tests and going to different meetings and learning about new investments and strategies and following the market every day. I'm not going to be doing that anymore. I'm going to be out on the golf course and I'll be on the boat. I'm going to be traveling. I'm going to be having fun. And that's why you need an advisor is because you need a product specialist.

Erick Arnett:
You need somebody that can put the right pieces in place for you to build that successful retirement and continue to monitor it on a daily basis and continue to make changes when changes need to be made and continue to customize it for you and you only and your family only. Not just giving you some kind of blanket model portfolio that everybody is in across the board. Okay, You deserve customization. You deserve service communication. Okay. That's what I want. And I'm an investment advisor. So when I retire, I'm not going to try to go to go it alone. And so I don't care what you do out there. If you're the smartest guy in the world, you're a rocket engineer. You can't be managing your own retirement because. Yeah. The one thing that'll always nail you to is what we talked about on the show is this These emotions, a little bit of greed might get you a little bit of fear, might get you and boom, I don't want any of those emotions in my money or in my retirement plan. So even when I retire, folks, yes, I am not going to manage my own retirement. I'm going to go to the experts at that time to get the best and the brightest and the ones that can be a partner every day with me as a third party consultant that have my best interests in mind to help me manage my retirement. And so I just urge everybody out there, get some help and please, you know, I'd love to hear from you.

Erick Arnett:
Give me a call. (352) 616-0511. Get to work today with take point wealth. You can also go to our website TakePointWealth.com in the upper right hand corner just click there get on my calendar today. I know it's 4th of July weekend, but you know put it in the notes, put it on your iPhone like to remind you you know Wednesday, Thursday Friday jump on TakePointWealth.com and get on Erick's calendar and let's start today let's get you on track to building that solid successful. Retirement plan. Okay. Everybody needs to do it out there and you can do it. And you can have an advisor right by your side that's super affordable. So folks have an awesome fun. Safe 4th of July weekend. I know. I'm looking forward to hopefully we're going to have some good weather. I got my kids coming in town, super excited, going to jump on the boat, get out there and get some sunshine and maybe even catch a fish if I'm lucky. But folks, get out there, enjoy your independence, enjoy your 4th of July. Also, remember it. Remember those guys that gave us that independence and have a great 4th of July weekend, folks. And this is Erick Harnett and Sam Davis with Take Point on Retirement radio. It's been a blessed, blessed opportunity to speak with you today and and have a great one.

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.com or pick up the phone and call (352) 616-0511. That's (352) 616-0511.

Producer:
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:
Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer. 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 BWA. With soaring inflation continuing to wreak havoc on everyday budgets, there's never been a more important time to cut costs. But do you know where to begin? I'm Matt McClure with the Retirement.Radio Network. Powered by AmeriLife, there is no question costs have been soaring.

Sharon Epperson:
About one third, 34%, say they are worse off financially this year than a year ago. Almost half, 46%, say they've had to cut household spending due to inflation.

Producer:
Cnbc correspondent Sharon Epperson recently reported on a survey that sheds more light on how inflation has been impacting us all. Even those who earn six figures a year.

Sharon Epperson:
These high earners say the first expenses to go are dining out at restaurants, entertainment outside the home and travel and vacations. More than half also say they'll delay big household purchases.

Producer:
That high inflation has led the Federal Reserve to respond with interest rate hikes. The goal is to increase costs to tamp down demand. Esther George is president of the Kansas City Fed.

Esther George:
Already we've seen the committee's policy actions lead to a very sharp tightening of financial conditions.

Producer:
But it hasn't done enough yet and costs still keep rising. So what should you do? Well, we have a free resource called 23 retirement cost cutters for 2023. It's full of ideas to help you make the most of every penny. Things like take advantage of senior discounts, eliminate unnecessary subscriptions and cut back on clothing expenses.

Sharon Epperson:
Look at your needs and wants, Figure out what's optional and what you can cut out.

Producer:
The last one on the list of 23 retirement cost cutters for 2023 is perhaps the most important. Seek advice from a trusted financial professional. That's the best way to get in-depth financial advice in retirement planning that's customized to you and your goals. Just make sure whoever you consult for financial advice has years of experience and credibility you can verify. So do you know the best way to cut costs in 2023? That's a key question to consider as our budgets get stretched to the max with the Retirement.Radio Network powered by a mirror life. I'm Matt McClure.

Announcer:
I'm speaking with Erick Arnett of Take Point Wealth Management. Erick, this topic isn't always the easiest for people to talk about, but it's important. Estate and legacy planning.

Erick Arnett:
And it's hugely important. Here's the big question Is your legacy important to you?

Announcer:
Well, absolutely.

Erick Arnett:
Then the next question should be what kind of legacy do you want to leave behind? I bet it's not one where your spouse or your kids are going to be shouldering a huge tax burden.

Announcer:
Are there strategies to help with that?

Erick Arnett:
100%. A Roth IRA is one example, and we can help you make that part of your plan. Also, if you want your wishes carried out like you want and not like the state wants. Give me a call or go to TakePointWealth.com.

Announcer:
Erick Arnett with dig point wealth management thanks so much.

Erick Arnett:
Thank you.

Announcer:
You heard him folks head on over to TakePointWealth.com. Today.

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