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Our economy is in a recession. But with stocks going up, you can be sure to hear from so-called financial “experts” plying their advice. The last thing you want is to make really bad financial decisions that could ruin your investment portfolio. So how do you recognize these “experts”?

Beware of these 4 financial scam artists that Bob and I expose today. It’s time to keep vigilant and make sure you’re making moves that will allow you to reach your financial goals.

For our spotlight segment, we have Certified Financial Planner™, Courtney Dominguez to give us a rundown of how she helped a couple retiring early to achieve a boost in their income.

Don’t miss out on making your money work for you. Make better decisions with us here on the No Payne, No Gain podcast!

 

Financial Propaganda of the Week

Just as we’ve predicted, the news has continued to get worse. Yet, the market keeps going higher. The media is in disbelief. We think it’s important that you listen to investors and not financial propaganda.

04:45 – When there isn’t clarity, there’s a huge opportunity. This is how investing works. 

05:45 – The market is forward looking. Don’t wait for the calamity that the media is predicting.

06:42 – Dividends on a diversified stock portfolio  have grown at an average annual rate of 5% per year. Considering that cost of living goes up by 3% yearly, the income in your portfolio has grown faster than what you’re going to need in the future.

07:31 – What’s happening is not like the last recession. We experienced a government-induced shut down. Jobs weren’t lost. They were furloughed.

08:51 – Your purchasing power in the next 20 years is going to be cut in half. Don’t wait on the sidelines hoping that things are going to get better. 

09:22 – You need to have an inflation hedge built in so that your money is growing net of inflation.

Avoid Mistakes From the Past

Many people are still making the same mistakes they made in past recessions and stock market downturns. The media back then talked about a double dip recession. But it didn’t happen. Are you going to make the same decisions you made back then?

11:36 – During the Great Recession, you may have kept your cash because the news was bad.

13:11 – The interest rates now are the lowest we’ve had. You’re losing cash sitting on your money. 

13:37 – The other mistake you may have made is taking more risk than you need. 

14:21 – Don’t have an investment forget strategy. While you shouldn’t panic when the markets go down, you have to rebalance as the market goes up. It’s a cycle of pain. 

15:42 – It’s critical to make an all-weather portfolio that makes sense with your goals.

16:21 – Have an income plan because your income comes in regardless of a recession or if the markets are up or down.

Financial Charlatans

Take care not to listen to what is preached to you by these “experts”. They could cost you your financial health. Only bad decisions come up from following the same message they’ve been broadcasting. Know who they are so you can avoid them.

17:48 – The perma bears are at it again. Always negative. Always seeing the glass half empty. They think they’re smarter than you. But here’s the thing, we’ve never met a rich pessimist.

19:19 ] – The negative naysayers are never called out for being wrong 9 out of 10 years. As they say, even a broken clock is right twice a day.

19:38 – Don’t take advice from a perma bear, especially one that’s an economist. They say their evidence is backed by data. But data is backwards looking, which the market is not.

19:57 – The opposite of the perma bear is the perma bull. For them, everything is going to be great forever. 

20:16 – Don’t believe that things will always be rosy. Make sure you have protection in your portfolio.

20:46 – Be wary of the dangerous annuity salesman. This product pusher will promise to protect your income, but it’s going to be a bad deal.

21:55 – If your financial advisor is getting compensated for selling you something, then that’s a conflict of interest.

22:36 – The biggest red flag is when the first thing someone does is recommend a product and not go over your financial goals. They’re not working in your best interest.

The Mailbag

Do you have a question related to your financial planning? The world might have been crazy, but Bob and I are still here to help. Send them over to us via email at questions@bebullish.com.

25:10 – Question #1: “I want to start building passive income primarily using dividend stocks. How would I go about doing this inside an IRA or Roth?”

27:50 – Question #2: “Is it time to move into cash to reposition for potential drop in the market? It seems crazy that it is back this high again this quick. Let me know.”

Spotlight Segment

When you’re getting close to retirement, you want to make sure your retirement plan is free of flaws or what we call Payne points. Today, we have Certified Financial Planner™, Courtney Dominguez, give us a rundown of how she helped them get on the path to financial freedom.

32:19 – An early 60s couple is looking to retire soon. Their main source of income would be social security.

33:30 – Not only will they be retiring before the retirement age for social security, they will also be retiring before Medicare age. So they’ll be paying for medical costs out of pocket.

34:11 – The couple needed enough interest and dividends to not worry or be forced to sell out of their investments when the market goes down.

34:29 – The couple was also more aggressive than they needed to be. But through simple repositioning, Courtney was able to boost their cash flow.

35:15 – At the same time, the couple was heavily invested in large company growth stocks that pay little dividends and had too much in cash.

36:30 – We’ve been in a low inflation environment. Cash is a negative return. So you’re guaranteed to lose money. 

37:50 – Through simple changes here and there, Courtney was able to boost their income from $40,000 a year to $100,000 a year.

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 point is you always have to be prepared for a downturn because when they happen, you can’t predict it.”

—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 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!

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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.