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With the lackluster start to 2020, how can you ensure that your finances remain secure? People feel more uncertain due to the increasingly chaotic world. In turn, the lack of assurance leads to increased levels of fear and anxiety.

It doesn’t have to be this way. Understanding the problem is the single most effective step toward resolving your fears. Knowing more about what makes Americans fearful can help you become better prepared. Most financial concerns fall into one of several categories, all of which become less intimidating only if you equip yourself with knowledge.

For our spotlight segment today, we have Chris Payne, a financial adviser at Payne Capital Management. He’ll tell us about how getting a second opinion is essential in safeguarding your portfolio.

If you want to prepare for the top financial concerns of 2020, listen now to today’s podcast.

Financial Security in Retirement

All of us will retire someday. However, many people aren’t doing enough to develop their retirement portfolios. Others, meanwhile, fall prey to misconceptions that can cost them dearly. How can you adequately prepare for your retirement?

2:18 – Retirement is the number one fear that many Americans have when it comes to their finances.

2:41 – Even people who have multiple savings and investment accounts fear retirement. They don’t know how much they’ll get when they reach old age. They also fear ballooning medical costs. 

3:43 – The best way to resolve your fear of retirement is to get accurate projections of your finances.

4:44 – Make sure that your investments are generating the returns that you need. There are ways to manage risk while securing your investments and improving your income stream from them.

5:30 – People are also concerned about how market downturns can decimate their portfolio. Taking too much risk increases your exposure to adverse market conditions. Even a single significant decline can ruin your retirement portfolio.

6:39 – Many financial advisors don’t have firsthand experience in a bear market. They recommend junk bond funds that can suffer when the interest rate climbs.

7:26 – Bond funds don’t give out fixed income, which is something you need as you approach retirement. Don’t depend too much on bond funds, since their return can vary based on market conditions.

Controlling Spending

Another pain point for many Americans is spending. If you don’t control your spending, you risk endangering your funds for retirement. What can you do to minimize your expenses? 

7:53 – Large expenses are another big concern for Americans. No one wants to outlive their money.

8:06 – You need to start assessing your spending, especially when you’re close to retirement. Your spending rate now will be very close to your spending rate during retirement. Don’t increase your savings just because of bull runs, which won’t last forever.

8:55 – You’ll spend more than your parents since you’ll probably live longer than them.

9:06 – Take advantage of tax optimizations. Taxes slowly eat away from your earnings.

Emotions and Financial Decisions

Emotions and rational thinking don’t get along well. We see markets tumble with just about any newsworthy event. If you let emotions control your financial decisions, you’re exposing yourself to unnecessary stress. So how do you avoid that risk? 

14:03 – Many people aren’t aware of how much their emotions factor into their financial decisions. Most people think that they make rational decisions for the essential parts of their lives.

15:01 – External events, like elections, can distract people. Many investors pulled out of their portfolios even though the market continued to have a bull run.

16:49 – Having a plan should allow you to make more rational decisions, regardless of market conditions. It’s not about having a good or a bad portfolio, but how you react to events.

18:02 – Sometimes, it’s better to make suboptimal decisions if they help calm you down. A rule of thumb is to aim to make decisions that allow you to sleep peacefully at night.

19:08 – Write everything down. You can think more rationally if you give yourself clarity.

Financial Propaganda 

The world seems full of bad news. What most of these media outlets don’t tell you is how much things have improved financially for a lot of Americans.

25:09 – Most strategists fail at predicting how the market will be in the future. Many industries continue to grow, while many Americans continue to build their savings. We’re the wealthiest we’ve ever been.

26:58 – The country is reasonably shielded from global events since only 15% of the economy comes from international activities.

The Mailbag

For this week’s Mailbag, we have Dan Irving, who will answer all the questions our listeners have on managing their finances.

34:25 – Question #1: How can I make financial decisions when everything leads me in circles?

37:20 – Question #2: If Trump is removed from office, is it a good idea to sell all of my stocks?

Spotlight Segment

For this week’s Spotlight Segment, we have Chris Payne, a financial advisor at Payne Capital Management. He talks about how a couple almost got their portfolio wrecked by a careless advisor. We learn why it’s essential not to be blinded by the allure of high but unrealistic returns. Chris also shows us the importance of getting second opinions for the most critical financial decisions.

44:37 – Chris Payne gives a case overview of a couple whose advisor gave them unrealistically high projections.

50:08 – A good understanding of your portfolio is crucial to making sound financial decisions. Get a second opinion, especially if you suspect that something’s fishy.

“Know what you own.”

— Ryan Payne

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 to bulletproof your portfolio, then let Bob and Ryan create a total financial master plan just for you! Text or call 844-752-6692 to get your financial master plan with no cost or obligation!

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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.