It’s easy to end up with a collection of investments that’s not going to get you to your goals. What that means is you don’t know what you own and you don’t know where it’s going. It’s a mess, and it’s important that you take a good look at your portfolio.
Today’s another day in quarantine. It’s the perfect time to think about simplifying your financial life. Bob and I give 3 practical strategies to do just that. We also talk about building a predictable income for retirement.
For our spotlight segment, Payne Capital Financial Advisor, Frankie Lagrotteria steps in and shares how she was able to help a couple with a large annuity understand it better and figure out what makes sense for them.
We got another great show for you today. So don’t wait any longer and tune in to the No Payne, No Gain podcast!
Financial Propaganda of the Week
You think you’ve seen it all but when you have a professional poker player giving good financial advice then there’s probably more surprising things to come. Here are the things we’ve heard:
04:16 – The market is like a casino but only in the short run. Don’t try to beat the market.
05:28 – It’s important to have an investment strategy that you keep in good times and bad times.
06:43 – Sitting on cash waiting doesn’t work. The media loves playing safe. When the news is reporting that things are getting better, you’ve already missed the right time to invest.
08:44 – When you have your own personal asset allocation, you know exactly how much risk you need to achieve your goals.
09:33 – Are you an investor or a speculator? If you’re an investor, your portfolio will generate returns every day.
Simplifying Your Financial Plan
One of our guiding principles is simplicity over complexity. Don’t make things way too difficult. So we’re sharing the 3 practical strategies that you can use right now.
14:08 – Aggregate your assets. Use a platform that gives you a bird’s eye view of everything and get an idea of your actual net worth.
14:49 – Look at the things that overlap and look at the concentration.
15:50 – Consolidate and weed out where you have too much risk in the same place.
16:36 – Whatever you’re doing in one account, balance that off with your other account so that they’re all working in concert.
17:11 – You want one person focused on everything and not a lot of people focused on a couple of things in your portfolio.
17:52 – Build a financial dream team where your financial planner, tax advisor, and estate planner talk with each other to come up with the best solution for you.
Building A Predictable Income
There are many investment vehicles that can generate income for you. The key is to choose the right ones which will allow you to live off during your retirement. Let’s take a look at the optimal way to choose where to invest.
23:47 – Rental income looks good on paper, but you end up saddled with a lot of responsibilities like managing the property and dealing with non-paying tenants.
24:49 – Pitches that promise a guaranteed income stream from an annuity usually mean that the guarantee only lasts as long as the company that issued it is in business.
25:38 – There’s two things you need to make sure when you get a high quality bond or fixed income investment. They are permanence and definition. You want to get interest and a return of your money. There should be a date when you get your capital back.
26:36 – Even with the market down, stocks are still paying dividends. But it’s important to have a whole portfolio of dividends and not just buying from one or two companies.
27:38 – When building an income stream for retirement, you need to understand where the money’s coming from and make sure the income increases over time.
28:09 – Sitting on your cash is the biggest mistake you can do. With inflation, taxes, and rising expenses, the 1-2% interest your cash is earning won’t be enough.
29:06 – The two things you should do right now. Figure out how much your investments pay today and do they match your expenses. Make sure the cash flow they’re generating is secure.
We love tackling anything about the market or the economy. Got any investment-related questions you want to ask? Send them over to us via email at firstname.lastname@example.org.
35:40 – Question #1: “I have two old 401Ks that I’ve been meaning to roll over for a while, but I never got around to dealing with it until this pandemic got me stuck at home and I could focus. So I’m ready to make this happen, but now I’m wondering if this is a bad time to do the roll over after these 401Ks have lost so much money in the last several weeks.”
38:32 – Question #2: “As we’re faced with the recession that was caused by something so unprecedented, how do we shift our investment strategy to make sure we’re still on track for our short-term and mid-term goals?”
Today, we have Financial Advisor, Frankie Lagrotteria. She tells us how she was able to help a couple with a very large annuity get a better understanding about it.
47:34 – A couple came in with a very large annuity, and they weren’t sure what they wanted to do with it. They actually pay $70,000 a year in fees. Frankie then asked them to answer 3 simple questions about the annuity.
48:54 – Annuities are insurance products. You may be paying for fees or you may be giving up something.
49:32 – They decided to get into a 40 minute call with the insurance company and found out how complex the annuity is.
51:46 – Some investments are bought and some investments are sold. Annuities are the things that are sold. Frankie was able to help the couple by breaking it down to allow them to make a decision.
Do you need a game plan for these volatile times? We’ll make sure you’re making the right decisions for your retirement plan. Schedule a call with one of us at https://paynecm.com/game-plan-call/
“The more money you have in one place, the more important you are, the more your advisor is going to pay attention to you.”
To download 5 Ways to Maximize Your Retirement Accounts and Save on Taxes in 2020 and the Highlights from the new SECURE Act, text BULLISH to 555888.
If you have saved over $500,000 for retirement and need a plan based on your retirement goals, Bob and Ryan will create a 360 Financial Portal just for you! Text or call 844-752-6692 to check out the 360 Financial Portal with no strings attached!
Contact us for a consultation with our financial advisors to start a personalized plan
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Payne Capital Management, LLC), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Payne Capital Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Payne Capital Management, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Payne Capital Management, LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request.