There are a number of tweaks you can make to your portfolio that will “turbocharge” your investments and your returns. Are you implementing these strategies in your portfolio?
[1:49] Make sure every asset is working together
- If you don’t have a portfolio but simply a handful of investments you might need more of a strategy.
- You might have multiple mutual funds and think you’re diversified, but there could be a lot of crossover between those funds and you could be diversified in the same stocks over and over.
- Placing the right investments in the right accounts allows you to better optimize for taxes.
- Ryan shares an example of a client who came into the office without tax efficient accounts.
[5:03] See the fees
- Hidden fees are often within the portfolio in a way that you don’t know you’re paying them.
- Some big firms sell products with a lot of fees and the advisors are more like a sales force.
- The biggest problem is that your statement doesn’t articulate the costs that you are paying.
[6:16] Optimize your portfolio with tax-efficient income
- Bob shares a story of a client who had annuities with additional taxes.
- By placing the right investment in your portfolio you can have investments that generate tax-advantaged income.
[11:11] Mailbag: Enough money for retirement
- Christine thinks she has enough money for retirement but is scared every time she makes a withdrawal and feels like she might run out of money.
- Bob sees this all the time–it’s one of the biggest fears in retirement.
- The older we get, the more insecure we get about our future.
- Peace of mind is worth so much.
[13:24] Purchasing an annuity
- Mary is considering the purchase of an annuity to help with retirement income needs. This purchase would represent about half of her assets, is that too much?
- You typically have to give up your principal for the annuity.
- That would be a red flag to have that much of your net worth illiquid.
- A positive: When you generate income from an annuity, it is very tax inefficient.
[16:24] Client spotlight
- Certified Financial Planner Michelle helped someone who is already retired but was frustrated with a past advisor.
- What immediately jumped out to Michelle was the fees since the advisor was charging well above the average but not giving good service.
- Michelle shares how their tax situation was a way she found an area to add value to the client’s portfolio.
“It’s not the return that you make, it’s what you keep–which is a really critical component to building the right portfolio.” – No Payne No Gain Podcast