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The path to financial freedom can be challenging. Along the way, what catastrophes and disasters should you expect and avoid to protect your retirement? Do you have the right financial advisor?

In this episode of the No Payne, No Gain Podcast, my father Bob Payne and I are going to discuss retirement catastrophes. We’ll be talking about some of the biggest financial disasters you need to watch out for and the important characteristics you ought to consider when choosing an advisor.

As usual, we also have this week’s financial propaganda, as well as our Spotlight segment with our trusted financial advisor, Emily Mulvany de Valente. 

We’ve got a great show ahead, so don’t miss out. Tune in to the No Payne, No Gain Podcast, and be well-equipped and well-informed about your financial decisions!

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Retirement Catastrophes

Retirement catastrophes⁠⁠—we’ve seen it before, and you probably know of a story, whether from a family, friend, or acquaintance. These problems occur because of poor assumptions, overall bad planning, and even worse, no planning at all. What possible problems should you look out for, and how can you possibly avoid them?


[02:22] – People are motivated by two strong emotions: fear and greed. Pessimism runs rampant at the beginning of every bull market, which brings about fear.

[03:33] – Bob had a client back in the 90s who had a magnificent portfolio. However, it ended poorly because they were greedy.

[04:44] – When building your portfolio, ask yourself if you’re protected in case the market crashes.

[05:26] – The importance of tax planning: A client should have been taking distributions for seven years and only recently found out that he wasn’t. This resulted in a massive tax penalty.

[06:22] – It’s important that you are getting sound tax advice. You can also save a lot by tweaking your portfolio the right way and being proactive.

[07:07] – Another retirement catastrophe is not having a realistic idea of how much you need to live without a regular paycheck.

[07:15] – Account for inflation and emergency costs. Moreover, despite having to help with some of your children’s finances, don’t abandon your retirement planning.


Finding the Right Advisor

Your road to financial freedom can be grueling without the right tools and help. When you evaluate working with a financial advisor for the first time, you need a guide to help you determine if you’re choosing the right person. That said, we’re here to share important characteristics you would want in an advisor.


[12:34] – Everything in this business is about trust.

[13:32] – Accountability is a great litmus test.

[14:03] – Check the track record of the firm or advisor you wish to evaluate through the FINRA BrokerCheck.

[14:40] – It’s vital to work with somebody you like. First impressions are important.

[15:28] – You will have a personal relationship with your advisor. If you like them, it will be easier to develop a rapport and have honest conversations.

[16:00] – Find someone who is not condescending and can explain things simply.

[16:51] – Do not work with an advisor who does not listen well.

[17:28] – You want an advisor who’s a problem solver. If you sit down with them and they start discussing products and investments instead of planning, then you’re talking to the wrong person.


Financial Propaganda

This segment is where Bob and I scour the financial news to call out the biggest offenders of offering obscene and profane financial guidance. The media may portray issues in a skewed manner. That’s why we want to help you protect yourself from making any ill-advised decisions.


[23:40] – Only 12% of the almost 2,000 actively managed mutual funds were able to beat their benchmark in 2019.

[24:24] – Only 29% were able to beat their benchmark over the last 15 years, which is a long time to underperform.

[25:16] – Owning a portfolio of actively managed bonds is the best and safest way to own bonds.

[26:32] – Stay away from actively traded mutual funds and embrace actively managed individual municipal bonds.

[26:59] – An “overbought” market means nothing. The decisions you make for your portfolio should be based on your goals, not market performance.


The Mailbag

Planning and building your portfolio may prove to be challenging. You may have a lot of questions in your mind, that’s why we accept your questions here at the No Payne, No Gain podcast. Like every week, we have Dan Irving to help us with your inquiries.


[34:38] – Question # 1: I’ve spent 40 years saving and investing. Now that I’m about to retire, I can’t even comprehend the notion of turning things in the other direction, taking money out of savings instead of putting money in. I know this is something that people do all the time. So why does it terrify me so much?

[37:43] – Question # 2: I’ve loved the growth of my 401(k) for the last several years, but I don’t know how long this ride can last. Quite frankly, I can’t believe it’s lasted this long. When should I walk away from this roulette wheel?


Spotlight Segment

For this week’s Spotlight Segment, we’re back with our star financial advisor at Payne Capital Management, Emily Mulvany de Valente. She’s here with us to dissect a real financial plan and uncover its flaws, or what we call Payne Points. Don’t skip out on this segment so you can avoid the same mistakes with your planning and investing.


[45:07] – An overview of the case: The couple that came in was working with a financial advisor who helped identify their problem. However, it seemed like he was not going to solve the issue.

[46:17] – Emily noticed their investments weren’t making much in terms of dividends. Moreover, they were also in really high-cost mutual funds.

[47:07] – It’s essential to know all the fees in your portfolio because they add up, and they can be hidden.

[48:49] – Emily recounted how they were able to take down their expenses, but also increase cash flow.

“When you’re sitting down with a new advisor that you may work with, and they start talking about products and investments first, they got the wrong idea. If it doesn’t start with planning, you don’t have the right person.”

—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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