Episode 168 – Automated Investing vs Retirement Planners

On this week’s episode of On the Money with Secure Money, Brian Quaranta discusses the pros and cons of automated investing and why it’s important to have a financial planner to help you achieve your retirement goals.

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Radio Show Transcript

Announcer 00:00

These investment advisory services are offered through foundation investment advisors, LLC. an SEC registered investment advisor Brian Quaranta and his guests provide general information not individually targeted, personalized advice and are not liable for the usage of information discussed. Exposure to ideas and financial vehicles should not be considered investment advice or recommendation to buy or sell any of these financial vehicles. This information should also not be considered tax or legal advice. As performance is not a guarantee of future results. investments will fluctuate and when redeemed may be worth more or less than when originally invested. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products, they do not refer in any way to securities or investment advisory products, fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company.

Steve 00:39

Hey, welcome, everybody. This is On the Money with Secure Money. I’m consumer advocate Steve Brian Quaranta. Here and today we’re going to dig into a JD Power study on retirement planning and found that over half of those planning for retirement are classified as financially unhealthy, with over 60% of respondents saying that they have challenges managing their accounts, what we’re going to do today, we’re gonna call on Brian to help break down some of this as well confusion and create some easy ways to stay on top of things financially. What do you think, Brian?

Brian Quaranta 01:12

That’s right, Steve, and a matter of fact, 85% of people retiring today are not retired with pensions. And we’re going to talk about a chapter in my book by recently written book right track your retirement called how to think like a pensioner and not a gambler. You’re not gonna want to miss this, folks, when we come right back with on the money with secure money.

Announcer 01:30

And now on the money, any good retirement plans starts with the foundation, asset protection, tax reduction, listed planning, these are the things that start to move you towards having a retirement plan. Retirement doesn’t have to be complicated. You think that’s the difficult part. That’s just getting started. And now on the money with secure money.

Steve 01:58

Hey, welcome, everybody on the money with secure money. That’s the show, Brian Quaranta is here. Brian, of course President CEO of secure money advisors, he is a fiduciary independent, He is an author of the book called right track your retirement a simple planning strategy to help you reduce risk, build income and provide peace of mind. We’re going to talk about that, and so much more. But first, I’ll just say Hey, Brian, what’s going on?

Brian Quaranta 02:19

Steve, how are you, man?

Steve 02:20

I’m very well, thank you. And yeah, this is gonna be fun. I like the, uh, yeah, I like statistics. I like these surveys, I do think it gives us a chance to really get a feel for what people are experiencing. And certainly, JD Power is a great, great source for that kind of information.

Brian Quaranta 02:37

Hmm, yeah, they really are. They’re good. They’re good group.

Steve 02:40

And so, I mean, I thought it interesting that people 37% of the people said they didn’t want to any help in planning for retirement. It’s Is that true? I think people need help. Desperately.

Brian Quaranta 02:54

I mean, look, there is a group of do it yourselfers out there. And matter of fact, I was just watching a incredible documentary, over the weekend on Netflix, and but it’s a documentary about Game Stop. Oh, which was, which was, which was, you know, the stock that was being shorted by all the major firms put Melvin capital, literally out of bag out of business. But also, there was a lot of conspiracy there, too. And what’s happened is that, you know, more people are, especially the younger generation, are being enticed with these gamified apps like Robin Hood, you know, when you Yeah, when you buy liquor when you buy a stock, and then there’s, you know, you know, graphics of confetti, you know, like all over your phone and, you know, coins dropping into it. And it’s like, you know, it’s the same, you know, strategies, psychological strategies that social media is using, it’s the same strategies that the casinos have used. And it’s basically gamified. Investing today. And so, a lot of people are taking more of a shot of trying to do it on their own. But I will tell you, with the recent market downturn, you’re seeing a lot of people, and there’s people out there that are humble enough to say, Listen, I thought I had this thing figured out and I don’t. And, you know, there’s a lot of folks that I’ve met, you know, that have used stock services like Motley Fool, you know, some of these people’s portfolios are down 70, 80% Palm Beach research is another company that gives a lot of stock tips. But I think people just were overconfident in the fact that the market was up for so long that there was a higher percentage. I think if we were to redo this study after 2022, I think you’ll see those numbers change because we’ve never been busier. I mean, you know, I’ve been talking about protecting your retirement, you know, for the last, you know, 20 plus years. And, you know, I’ve always felt that once you’ve won the game, there’s no reason to keep playing it. I mean, people don’t realize, you know, you only have to roll the dice for a certain period of time until you accumulate the wealth, once you’ve accumulated your wealth, really, it’s about protecting that money, and making sure that it’s going to last the rest of your retirement because the biggest fear for everyone, whether you’re a do it yourselfer, or you’re using a financial advisor, is the fear of running out of money. And, you know, one of the things that we do really well at secure money advisors is we help people build real strategies, real written plans, and they’re simple planning strategies that literally are going to help you mitigate and reduce risk. And it really is about reducing risk. And there’s many risks in retirement, just not market risk. But the goal of any good portfolio is to build income. But most importantly, what you’re really trying to get from it psychologically, is peace of mind. Because we all want peace of mind going into retirement and people, you know, are choosing to use strategies that are more geared towards growth and not income. And people don’t really understand the difference between the two, and they get themselves in trouble. And so, but I think what we’re seeing today is that more and more people are starting, in my opinion, to lean on good fiduciary firms to help build a real written retirement plan. And you know, people really just don’t want the stockbroker anymore, that’s going to help them buy mutual funds, or stocks or bonds, they really want someone that’s going to help them think through a thorough retirement strategy. And that’s one of the things we do really great here at Secure Money Advisors.

Steve 06:38

Folks, if you’d like to get a head start, here’s the number 800-656-8616 800-656-8616, talking a little bit about this JD Power, a survey that was done. And I think what one of the takeaways was that people are tired of the electronic, you know, trying to do things all electronically and AI and, you know, robo advisors and all that realize that, you know, there’s no person here, there’s no, there’s no interaction here.

Brian Quaranta 07:08

Yeah, there’s not and, you know, that’s, that’s not a good thing. Look, I just, you know, to add to that, over the, over the weekend, I got a- and I’m sure you might have gotten it, too. But Amazon sent out a physical magazine.

Steve 07:23

Oh, I got it. Yes. Right.

Brian Quaranta 07:24

I mean, think about what’s going on here. I mean, a catalog, a Christmas catalog, resurfacing. I mean, think about the catalogs, we used to get back in the day from JC Penney, Montgomery, Ward’s.

Steve 07:35

It’s always Sears for me. That’s Sears Christmas books, amazing.

Brian Quaranta 07:39

Sears Christmas book. I mean, you know, my dad had a Montgomery Ward’s catalog store. So, like, I mean, whenever you got a lot of stacks, just stacks and stacks. But it was so great. As a kid, you know, you’d go through you’d circle you know, but people are tired of not being able to talk to people anymore. It went too far into the automation, right? There’s a balance between, you know, actually being able to, like physically touch something, make contact with an individual versus all this automation on your own, right. I mean, gosh, I mean, to do something as simple as, you know, printing a 401k statement, it’s like, you know, rather than just picking up the phone saying, hey, can you send me a copy, it’s like log into your cow, go to this module, go to that module, print this, print that. And then also, what happens with digital is that we don’t pay attention to things as much Dave, the best thing to do when the markets are down is to reevaluate where your asset classes are being positioned, how you’re being invested, because making a few changes can make all the world of a difference when the market starts to recover. So, for the next 10 callers, we will perform a complimentary easy to understand financial review of your portfolio. That review will indicate if you’re in need of a comprehensive financial plan, we’ll look at a few analyses for you a risk assessment, a tax analysis, and we’ll also show you how to build a customized income plan, utilizing proven strategies, which could strengthen your retirement income and take the worry out of living too long in retirement. So, give us a call right now and schedule that appointment with us today.

Steve 09:04

That sounds fantastic, Brian. Do take advantage folks, it’s a great way to be able to just get a handle on where things are today. It’s really important, especially with the volatility that’s going on, we don’t know what’s going to happen. And that’s where Brian can come in and just sort of be that voice of calm for you. 800-656-8616 is the number you’re gonna get the comprehensive financial review, there’s no cost, there’s no obligation. It’s just an opportunity to sit down and have that discussion. 800-656-8616 again, 800-656-8616 a quick break. Let’s come back and pick up the conversation right here on the money with secure money and Brian Quaranta,

Brian Quaranta 09:42

one of the toughest things about planning for retirement is to anticipate the unexpected. When we come back we’ll go over some of the unexpected things you should include in your plan. We come right back with on the money with secure money

Announcer 09:58

are you fighting for fun antral knowledge don’t let that advice be a punch in the gut to your retirement. Take advantage of a complimentary no cost, no obligation consultation with a local trusted financial coach. Call Brian Quaranta and his team as secure money advisors 800-656-8616 800-656-8616.

Steve 10:30

They were back on the money was secure money. Brian Quaranta here, Brian is an author. And in fact, the book is called right track your retirement? Well, there’s another bit of the title up beyond that, but we’ll talk about that in a minute. He’s also president, CEO of secure money, advisors, fiduciary, independent, and all of that stuff that we want in an advisor, secure money. advisors.com is the website, I would really suggest you pick that up, check that out, also, right track your retirement.com, another website that you should check out. So, you know, expect the unexpected. That’s what this segment is all about prime. And boy, there are some unexpected things that can jump up and really hurt you when it comes to retirement.

Brian Quaranta 11:09

Yeah, so let’s talk about those. So, some of the commonly forgotten expenses in retirement is you got to be ready. I mean, your emergency fund has to be ready for what I would consider retirement curveballs. One simple one is just unexpected home repairs and maintenance. No matter how well maintained your home is, something’s always needed to be fixed or replaced. As you know, if you’re a homeowner, you know, you could have a roof that needs to be fixed, broken water heater, and that stuff adds up, it adds up very quickly. And if you’re on a fixed income, it can be tough to cover them without dipping into your savings. So, you’ve got to prepare for the fact that your might have to take more money out of your accounts than you anticipated. And this is why a really good written retirement plan is going to look at a number of scenarios to determine what the probability of success of your plan will be. If these unexpected things pop up in your retirement, some ways that you can minimize these finances. I mean, one way you can offset these expenses by making any repairs or improvements before retirement so that you don’t have to come as a shock. So, if you’re getting ready to retire in the next five years, maybe it’s a good time to look at the roof water heater or the air conditioning unit. If that stuff needs replaced, you might want to do it before you retire and go on to a fixed income. Well, I know I would. Yeah, right. It’s always easier. And it gives you a little bit more peace of mind when you’ve got you know, higher cash flow, from your day-to-day work efforts to get larger expenses out of the way. So, what I’m basically saying is don’t kick the can down the road on things that probably need to be done. Get to get that stuff taken care of before you get into retirement. You know, I see a lot of our clients, you know, they’ll even, you know, get certain surgeries done, maybe they’ve been kicking the can down the road on a knee surgery or a back surgery. And those are all things to consider getting done too, because one of the other unforeseen things is unexpected healthcare.

Steve 13:19

Oh, my gosh, that can just- and again, I think we’ve all kind of experienced some of that over the last couple of years with COVID. I mean, you know, suddenly somebody in the family is sick and in the hospital. And, boy, that’s, that’s a slap in the face.

Brian Quaranta 13:31

Yeah, I mean, health care costs are made up of insurance premiums, and out of pocket expenses. And, you know, while your monthly premiums are fixed, you know, your out-of-pocket expenses, depending on how you’re structured with your health insurance policy, can be highly variable, especially depending on if you’re on Medicare. I mean, you really want to make sure you’re on the right Medicare plan. That’s why it’s secure money advisors. You know, we give you access to other professionals, we have an in-house Medicare specialist here, who works with our clients directly to make sure that they have the right plan. And we review those plans with them every year, because formularies change, things change with the plan, better plans come out. So, these are all things that need to be looked at. And I’ll tell you one of the most overlooked area is getting your Medicare insurance, right, and whether you’re going into a supplement or an advantage plan or something along those lines. Well, and

Steve 14:29

again, we are right in at the very beginning of open enrollment for Medicare. So, if you’re already on Medicare, it is important to do that review every year, give Brian a call and sit down and really get it done the right way.

Brian Quaranta 14:42

Yeah, and matter of fact, you know, our clients get a complimentary view every single year. Matter of fact, okay. You know, if you decide that you want to come in and take advantage of one of our complimentary meetings that we give out each week on the radio. All you got to do is let us know that you want your Medicare reviewed at the same time or maybe you’re approaching Medicare Your age and you have to sign up and we actually help you sign up. We do it for you. So, it’s a real turnkey system that we’ve built here at secure money advisors. Sure. Yeah, the other thing is just unplanned relocation costs. I mean, for most people in retirement, it’s time to relax, take it easy, but for some, it’s time to relocate it, they want to get closer to family, they, you know, they might have a, you know, the birth of their new grandkids, and they want to get to wherever the kids are, so they can play grandma and grandpa and watch the kids. So, you just never know when that’s going to come up. But there’s costs with relocating, you know, cost is not, the relocation costs is not cheap. You know, we help clients every year, we’re helping clients, no matter of fact, my favorite story was a client of ours, that moved to Wyoming. And, you know, boy, did he pick a beautiful place at the right time, because this is, before Yellowstone became all the rage that it is. But you know, if these are the things that you want to do, this is why it’s important to have a plan. And when you have a plan, when these things pop up, whether they’re it’s unexpected expenses, unexpected health care cost or unplanned relocation, we plug that right into the plan. And we can see how the plan will recalculate itself to determine if there’s any unforeseen roadblocks that might pop up. And this gives you the peace of mind to be able to move forward with what you want to do. But you know, folks, what we’re talking about, if it struck a chord with you, and you want to be certain that you’re on the right track, give us a call. We keep a few openings on our calendar each week, just for our listeners. So, for the next 10 People call us right now, we’re gonna give you a complimentary right track retirement review, it’s an opportunity for you to sit down with a fiduciary advisor, and make sure you understand where you are and where you need to potentially go. You know, and throughout the years of serving our community, you know, we found a lot of folks don’t have a true understanding of how they’re going to generate income retirement, how much risk they’re actually taking whether or not their money is going to last the rest of their life. I’ll hear from a lot of people, I don’t have a pension, you know, how am I going to you know, but I need my 401k to become a pension. So, for the next 10 callers, we’re going to sit down to help you understand how each of those issues is impacting you. We may even answer the questions that you didn’t even know you had. So, give us a call right now, folks, this is not the time to kick the can down the road, call and schedule with us today.

Steve 17:18

You got it. 800-656-8616. That’s how you get the ball rolling. And give us a call. It’s a comprehensive financial review with no cost, no obligation, a chance to see where you are today. But more importantly, a chance to really get a roadmap and help get you to where you need to be 800-656-8616, 800-656-8616. A quick break. Let’s come back and continue right here On the Money with Secure Money and Brian Quaranta

Brian Quaranta 17:45

The year 2022 is now being compared to 2008. And that’s not pretty. From rising interest rates or runaway inflation. There’s no question it’s a tricky time to retire. The good news is we’ve got some strategies for pre retirees and retirees to stay on track in this bear market, we come right back with on the money with secure money.

Announcer 18:07

He’s letting the clock run out on his social security at age 70 For maximum benefits. And here comes the Roth conversion. He’s got some outstanding coaching with that lifetime income plan. He’s created his own pension as well. And it looks like he’s going to go all! the! way!

Play your best retirement game call BrianQ 800-656-8616 or text BrianQ to 800-656-8616 Call or text BrianQ to 800-656-8616

Steve 18:40

We are back on the money with secure money and Brian Quaranta Secure Money Advisors is the company securemoneyadvisors.com Is the website I encourage you to check that out see the scene behind the scenes, so to speak. But also, you get updated on a whole lot of great information that you guys do. Uh, you just you just do a good job of keeping that website fresh.

Brian Quaranta 19:02

Yeah, not only but not only that, they can listen to the radio shows there. So, we’ve got the radio shows that have been archived for your listening. So, there’s a lot of information in depth information that, you know, if you’re trying to find answers to certain questions, whether it be about income taxes, investments, health care strategies, estate planning strategies, there’s probably some shows on there that will help answer those additional questions you have. We also have all the TV shows uploaded on there. So, for those of you that don’t know, but we do a TV show every single week on KTK. Right now, we’re on Saturday nights. I believe we come on at 1130. You can check your guide. It’s on the money with secure money. And then we’ll be coming on April 10 on Katie K on Sundays, and that will be airing I believe around 12 or 1230 on Sundays and then you can also find us on a few Fox channels. The 22 to the point it’s all on our website. All the different showtimes So, but yeah, listen to them and then also go to our website and find out where our upcoming educational events are gonna be. You know, we try to teach some educational events at least four to five times a month. Most of the times we’re at universities, libraries, but with COVID restrictions, that’s been a little bit tough. So, right now we’ve been using narcissi winery, Jackson’s restaurant, cranberry library, LaRoche College, Slippery Rock, so check us out. And there’s a lot of places for you to find us. But our job we feel it secure money advisors is to be an asset to the community. And truly give people the advice that they deserve. And what we do so differently here at secure money advisor, Steve, is that we provide people with the black and white information that they need to make an informed decision, we’re not here to give them our opinion, the world we live in today allows us through technology, to very easily show people where they currently are at with their current portfolio by looking at a few data points. And where they could go by making a few changes. The importance of that is that we keep our opinions out of it, and you’re truly making decision based on numbers. And that puts you the client in a position of strength because you don’t have to worry about being sold anything here at secure money advisors, we truly are problem solvers. We identify the problems, and then we help you solve the problem. Should you want to hire us to help implement and solve those problems for you? We’re more than happy for you to hire us. If you take advantage of one of our complimentary Right Track Retirement reviews. And you didn’t want to hire us. That’s fine, too. We shake hands we part as friends.

Steve 21:39

All right, I got one. I’m gonna pose this to you, Brian. The so I know you get a lot of questions. And let me how often do you get this one? After you’ve explained things after you’ve helped them put together a plan? I can do that.

Brian Quaranta 21:55

Well, how about this one? This is the one we get a lot. I wish I would have met you 10 years ago. Ah, all right. Even better. Yeah, I wish I would have met you 10 years ago. And that speaks volumes. And usually, you know, we’re competing. Typically, between, you know, the client typically is you know, going out and maybe seeing two or three different advisors who are typically competing with quite a lot of different firms. And we win, we win about 98% of that business. So you know, and that’s and the feedback that I get when I ask people, why did you choose us over you know, the other company is they’ll say, you know, you guys are the ones that really took the time to understand our situation, you took the time to really explain where we were at you gave us the data and the metrics to look at to to make an informed decision. And then not only did you show us a way to solve the problem, but you showed us in black and white numbers, how our retirement would actually look. And we’re not doing that through fancy charts and graphs, and you know, retirement planning software, we have a very simple approach through what we call our bucketing strategy, where we bring people through our blue, green, red bucketing strategy. And so, all of our clients start to think about their money in buckets. So, but yeah, that’s what we typically hear Steve

Steve 23:06

800-656-8616. Let’s see, we have time for one. Well, yeah, one question probably is only good. Let me go to Pamela. She says, I’m a physician with my own practice and for employees. Right now, I have a set plan that I’m contributing to, but I’ve been told that a defined benefit plan would be better. Can you explain to me how these work and whether or not you recommend them for someone like me?

Brian Quaranta 23:28

Yeah, so having your own practice would be like me having my own financial practice with employees. So when I first started, I had a set plan to which is a self-employment retirement plan. And it allows for higher contribution amounts, you could contribute up to about $50,000 A year into a SEP, but the defined benefit plan would be better solely for the fact that you would now be providing a really nice benefits package to your employees make yourself a more attractive employer to be able to attract a better and more talent. But this is why we keep the openings on our calendar, Steve each week, I mean, for our listeners, and you know, these are the things that we exactly the types of things that we help people solve. I mean, if you bring a problem to our table, we will have a solution because we’ve connected and have a network of probably 50 to 60 professionals in all different industries that we lean on, to really help give you the best advice at all times. I think most people have an investment strategy, but they don’t have a real retirement plan. Because a real retirement plan has to deal with five key areas your income, taxes, investments, health care and legacy planning. You have an opportunity right now to sit down and have a conversation with a fiduciary advisor who can guide you and possibly help you improve your situation at no cost also for the next 10 callers who call in right now and schedule an appointment with us to take advantage of this complimentary financial assessment which we call our right track retirement review. I’m also going to give Do a copy of my book complimentary, where I lay out all the strategies from start to finish of how to build a retirement plan that will allow you to still grow your money, mitigate your risk and get the income that you deserve. So again, for the next 10 callers who call in right now, that’s a complimentary right track analysis along with a complimentary copy of my book.

Steve 25:21

Sounds fantastic, Brian, folks take advantage of it. Here’s a great way for you to get your own financial roadmap put together. It’s a practical financial review. And if you’ve never done it before, no time like the present 800-656-8616 That’s the first step you got to take 10 callers right now gets the comprehensive financial review, you’ll see where you are now. But more importantly, you’ll have a roadmap that can help get you to where you need to be. And along with that when you make your appointment you will get a copy of right track your retirement a simple planning strategy to help you reduce risk, build income and provide peace of mind and if you ask Brian nicely, I’m guessing he’ll sign it for you. Alright, 800-656-8616 Brian, as always, a pleasure. These shows go by so quickly, but the information is so important. That’s right,

Brian Quaranta 26:05

Steve, we’ll be back again next week with more on the money with secure money have a great week folks.

Announcer 26:17

Investment Advisory services are offered through foundation investment advisors, LLC, an SEC registered investment advisor Brian Quaranta and his guests provide general information not individually targeted, personalized advice and are not liable for the use of drip information. Discuss exposure to ideas and financial vehicles should not be considered investment advice or recommendations, buy or sell any of these financial vehicles. This information should also not be considered tax or legal advice. Past performance is not a guarantee of future results. investments will fluctuate and when redeemed may be worth more or less than when originally invested. Any comments regarding safe and secure investments and guaranteed income stream for only two fixed insurance products did not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company.

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